Program-for-Results (PforR) is a new financing instrument offered
by the World Bank that aims to strengthen government programs
by working with a program’s own systems and linking the
disbursement of funds directly to the delivery of results.
With the addition of PforR, the newest financing instrument in
over 30 years, the Bank now has three complementary financing
options to offer client countries: Investment Project Financing
supports specific projects and disburses against specific
expenditures and transactions; Development Policy Lending
supports policy and institutional reforms and provides general
budget support; and Program-for-Results Financing supports
government programs and disburses against results.
FOCUS ON RESULTS
Results are at the center of all that the World Bank does, but with PforR this focus on results is taken to a new
level because disbursements are directly linked to the achievement of tangible and verifiable results.
Disbursement-Linked Indicators, or DLIs, are used to provide governments with incentives to achieve critical
program milestones and improve program performance. DLIs can be outcomes, outputs, intermediate outcomes,
or process indicators that are key actions needed to address specific risks or constraints to achieving development
objectives.
The focus is on results as well as how the results are achieved. PforR provides assurance that Bank financing is
used appropriately and that the environmental and social impacts of the program are adequately addressed. To
accomplish this, the Bank assesses the program’s technical, fiduciary, and environmental and social systems
upfront and then monitors their performance over time.
FOCUS ON STRENGTHENING INSTITUTIONS
By using a government’s own program systems, PforR enhances the focus on institutional strengthening. Using
the program’s systems also enhances development impact and sustainability, and creates an enabling
environment for partnerships. The upfront assessments of the program systems are used to identify key
improvements and actions that will help the program achieve its objectives. If deemed sufficiently critical, these
actions can also be used as DLIs. Development partners can play an important role in the system-strengthening
and capacity-building aspects of a PforR supported program through technical support and pooling of resources.
There are no a priori restrictions on the use of the instrument in terms of income categories or sectors. Instead,
decisions on the feasibility and scope of PforR operations take into account a number of considerations, such as
the priority and definition of the program and the outcome of an integrated risk assessment. PforR cannot
support programs with activities that pose a risk of potentially significant and irreversible adverse impacts on the
environment and/or affected people or investments requiring high-value or complex procurement packages.
www.worldbank.org/ProgramforResults
PROGRAM-FOR-RESULTS OPERATIONS
PforR supports government programs in a diverse range of countries and sectors. Since approval of the
instrument in January 2012, a broad variety of operations has been approved, representing different sectors and
regions. Below are a few examples:
MOROCCO
National Initiative for Human Development (INDH) Phase II
INDH2 finances income-generating activities, improved access to basic
services, and key infrastructure in the poorest regions of Morocco. Taking
lessons from INDH1, launched in 2005, the government nearly doubled the
geographic scope and increased the budget from $1.7 billion to $2.1 billion
for phase 2.
NEPAL
Results-Based Bridges Improvement & Maintenance Project
Supporting the vision behind Nepal’s Bridge Policy and Strategy of 2004 to
provide “safe, reliable and cost effective” bridges, the program will maintain
89 bridges, many over 35 years old, complete major and minor maintenance
on over 300 bridges, and construct 121 new bridges.
TANZANIA
Urban Local Government Strengthening Program
The program aims to improve institutional performance for urban service
delivery in 18 urban local government authorities by strengthening an
existing performance based grant system. Local governments will use grant
proceeds to improve roads, public spaces for market and trade, and solid
waste management, among other small scale infrastructure.
URUGUAY
Road Infrastructure Program for Results
The program will improve transport efficiency through rehabilitation and
maintenance of the national road infrastructure and enhanced public sector
capacity to plan, regulate and monitor transport and logistics services.
VIETNAM
Results-Based Rural Water and Sanitation Under The National Target
Program Project
The program will provide safe clean water for 1.7 million people and
improved sanitation for 650,000 people living in 8 provinces in the Red River
Delta. The program will strengthen governance systems for results-based
service delivery as well as gender-based monitoring and reporting.
www.worldbank.org/ProgramforResults