Early PforR experience –
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Exchanging views and emerging lessons
CGD, Washington DC, November 27, 2012

• Development Effectiveness and Client Demand – PforR responds to client demand that could not be fully met through existing instruments; it enhances development effectiveness of client programs and of development assistance
• Focus on Results – PforR places attention on results through more direct linkage of funding to the achievement of verifiable results and performance actions
• Institutional and Capacity Building – By using program institutions and systems, PforR will strengthen institutions/capacity of the whole program
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• Enhanced Partnerships – PforR provides an opportunity to improve coordination among development partners in government programs
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Project Lending
(IL)
Implementation Mechanism
Bank IL rules and procedures
Funds for specific expenditures
Policy Lending
(DPL)
Country policy processes
Funds for nonearmarked general budget support
Program Lending
(PforR)
Program systems expenditure program

• The five first operations were approved by the Board totaling $881 million of Bank financing supporting a total of
$2,28 billion of government programs
• An additional 15 operations are in the pipeline for approval by July, 2013
• Operations approved to date are in five different regions in a range of country typologies (from fragile states to MICs)
• The sectoral breakdown is also diverse with operations in transport, human /social development, urban and so forth.
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Pakistan
Nepal
Morocco
Mauritania
Ethiopia
Uganda
Brazil
Kenya
Tanzania
Uruguay
India
Mozambique
Bangladesh
Vietnam
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Operation
Morocco – National
Initiative for Human
Development (Phase II)
Nepal – Results-Based
Bridges Improvement and Maintenance
Tanzania – Urban Local
Government
Strengthening Program
Uruguay – Road
Infrastructure Program for Results
Sector
Social
Development
Transport
Urban
Examples of selected DLIs
• % girls who reside in the educational dormitories graduating to the next grade
• % population provided with access to improved water supply in targeted rural communes by the Program
Completion of major maintenance of bridges and of building/improvements to new bridges on national network
Local govts. with strengthened institutional performance achieving: (i) Program minimum conditions; and (ii) performance score (annual assessment)
Vietnam – Results-Based
Rural Water and
Sanitation
Water and
Sanitation
Transport connections from systems that are sustainable: and (ii) benefiting from commune-wide sanitation in new communes
Number of km of the National Road Network: (i) rehabilitated with minimum quality level; and (ii) maintained through performance-based contracts

‘ shift in the dialogue with government counterparts ’
‘extremely welcome’
‘game changer’
‘PforR proves to be
‘we appreciate the reduced transaction processes’ useful in different countries and sectors’
‘ more interagency
‘deeper focus on results’ dialogue between government agencies ’
…but, risk of falling short of potential?
• Concerns about the exclusions
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• Clients voice concerns about intrusive nature of some aspects especially on right to investigate
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• DLIs range from outcomes to outputs, processes, and actions depending on the specific nature of the program e.g. Morocco Communities: percentage of girls who reside in the educational dormitories graduating to the next grade
Uruguay Transport: cumulative number of kilometers of the Uruguay
National Road Network rehabilitated at a minimum quality level
Vietnam Water and Sanitation: disclosed provincial annual plan and progress report for each province
• Verification arrangements haven been agreed that are acceptable to the Bank and ensure credible verification
Tanzania Local Govt.: government-contracted reputable firm with TORs satisfactory to the Bank
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• In general, the assessments have allowed to open good dialogue about systems, their performance and how best to improve that e.g. Tanzania Local Govt.: in the expenditures area, the technical assessment identified partial budget transfers from central to local governments as a cause for under-performance, and made full transfer a condition of DLI disbursement
Uruguay Transport: in the fiduciary area, quantitative indicators were defined to measure the performance of the Uruguay's Road Administration procurement system, and a study to be undertaken to identify the key obstacles to shorter bids evaluation periods, and propose related measures
• Grievance/complaint mechanisms have been identified or developed, taking into account the specific nature of the program
Acronyms e.g. Tanzania Local Govt.: mechanism to be put in place by local governments as a Minimum Access Condition to access infrastructure financing
Morocco Communities: existing government program mechanisms with specific improvement
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• Environmental and social impacts are limited
• Category A type activities are not part of the Program scope e.g. Nepal Bridges: 2% of the bridges were excluded given their potential effects on environmentally sensitive areas
• PforR Programs are also expected to have positive effects e.g. reduce risk of flooding and soil erosion (e.g. Tanzania Local Govt.), reduced transportation cost (e.g. Uruguay Transport) increased percentage of the population provided with access to improved water supply in targeted rural communes (e.g. Morocco Communities)
• Priority Capacity building measures have been included in
Programs, linked to specific DLIs and/or included in the PforR operation’s Program Action Plan
Acronyms e.g. Nepal Bridges: DLI #4 Strengthened performance management in bridge sector (percent works complete on schedule)
Morocco INDH2: DLI #7 Percentage of provinces and prefectorates in the
Program Area which have put in place a plan of action to address audit recommendations
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• The PforR instrument has been adapted to varying country and sector contexts
• Each operation reflects the nature of the individual Programs in which they operate
• Program systems have been assessed as respecting policy requirements, and as being supportive of Program results with improvements as necessary
• Overall, risks to results have been assessed to be manageable
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• Overall engagement and discussions on results and DLIs have fundamentally changed the dialogue between Clients and the Bank
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• Want to continue the conversations
• Keep the spirit of a learning approach to the instrument
• Events include
• Internal/external peer learning events (e.g. on results)
• 2013 Spring/Annual Meetings events
• Exchange of views and lessons by email to OPCSPforR@worldbank.org
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http://www.worldbank.org/ProgramforResults
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