Program For Results Financing
OP/BP 9.00
Agi Kiss
WB Safeguards Training Workshop
Almaty, December 2012
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Principles and Core Elements of PforR
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Help governments improve the design and
implementation of their programs using program systems
WB works with Borrower institutions to strengthen
capacity and improve performance of systems over time
Directly link achievement of results to disbursement of
WB funds
Promote transparency and accountability in Government
programs
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How it Works
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Define the PforR Program:
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Define the PforRProgram’s development objectives
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Tied to a Government program (new or ongoing)
sector-wide , sub-sector or multi-sectoral; national, subnational or location-specific; new or ongoing; entire or
“time slice”
boundaries of the PforR Program establish the scope of WB
assessments
Develop PforR Program “Results Framework” with clear
linkage to objectives of Gov’t program
Identify activities included within PforR Program
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PforR operation might not include all activities in the Govt’s
program
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How it Works (cont.)
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WB Task Team assesses:
(i) the Government program and proposed
PforR Program and
(ii) its management systems as they exist and operate
within the boundaries of PforR Program
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WB Team prepares 3 Assessment reports:
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Technical assessment: strategic relevance, technical
soundness, institutional quality, implementation capacity,
expenditure framework/effectiveness of expenditures
Fiduciary systems assessment: (procurement, financial
management/accounting
Environmental and social systems assessment
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How it Works (cont.)
Assessment Reports cover:
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Key risks (within the respective areas) for Program not
achieving desired results
Recommended actions for managing risks, strengthening
institutions, improving systems performance
Assessment of “complaints mechanism” for each system
The 3 Reports feed into 1 “Integrated Risk Assessment “
Tool for WB Management to:
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accept, modify or reject the proposed PforR Program
operation;
monitor evolution of Program’s risks during implementation
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How it Works (cont.)
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WB and Borrower agree on a Program Action Plan
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based on outcome of the 3 Assessments
actions for improving technical aspects, strengthening
institutions, improving systems
selective (limited number), feasible, realistic in timeframe
Implementation may be financed as integral part of the
PforR Program or separate Technical Assistance project
Progress is tracked by WB and Borrower based on
specific “Disbursement Linked Indicators”
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WB Task Team also monitors performance of systems,
implementation of Program, Action Plan, evolution of risks,
status/functioning of “complaints mechanisms,” all based
on the initial Assessment Reports
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Basic Principle: Exclusion and Screening
for Environmental and Social Risks
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PforR financial instrument does not support programs or
activities that could cause significant harm to the
environment or which could have significant adverse
social consequences (e.g. power plants, major transport
infrastructure, investments in extractive industries, commercial
logging).
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All PforR operation proposals should be screened for
such adverse impacts at an early stage
If such activities are likely to occur within the program as
defined, they should be excluded from PforR support or,
if included be subjected to investment lending (i.e.,
Safeguard Policies).
For the remaining PforR Program activities which are
not excluded as above…
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Environmental and Social Systems
Assessment
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Safeguard Policies per se do not apply to PforR Program
operations
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OP/BP 9.00 (Program for Results Financing) sets out core
principles similar in substance to those set out in the SG
policies for standard investment lending
Follows a risk management approach (matching process
requirements to Program context; assessing adequacy of
Borrower systems in relation to nature/significance of Program
risks
Interim Guidance Note for E & S Systems Assessment
provides details on the core principles and “key planning
elements”
which echo the substance of the Safeguard Policies but without
the specific process requirements – what to achieve, not how to
do it
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From Interim Guidance Note –
Example 1
Core Principle
Key Planning Elements
Env. & Social management
procedures designed to
promote sustainability in
project design,
avoid/minimize/mitigate
adverse impacts, promote
informed decision-making
relating to the program’s
environmental and social
effects
Program procedures:
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Operate within an adequate
legal and regulatory framework;
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Incorporate environmental and
social assessment good
practice (e.g. early screening of
potential impacts, consideration
of alternatives, assessment of
cumulative and trans-boundary
effects, clear articulation of
institutional responsibilities,
responsiveness and
accountability through
stakeholder consultation, etc.)
Absent: specific requirements for preparation of EIA/EMP;
classification into Category A/B/C
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Example 2
Core Principle
Key Planning Elements
Land acquisition and loss of
access to natural resources
are managed in a way that
avoids or minimizes
displacement, and affected
people are assisted in
improving, or at least
restoring, their livelihoods
and living standards
The Program to be supported:
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Avoids or minimizes land
acquisition and related adverse
impacts;
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Identifies and addresses impacts
due to land acquisition or loss of
access to natural resources,
including those affecting people
who lack legal rights to the
land/resources;
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Provides compensation sufficient to
purchase replacement assets of
equal value, prior to taking of land
or restriction of access;
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Provides supplementary livelihood
restoration measures …. Etc.
Absent:
requirement for a
Resettlement Policy Plan or
Resettlement Actio n Plan
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Example 3
Core Principle
Key Planning Elements
Env. & Social Management
procedures designed to protect
public and worker safety
associated with: (a)
construction and/or operation
of facilities; (b) exposure to
toxic chemicals, hazardous
wastes, other dangerous
materials; (c) reconstruction or
rehabilitation of infrastructure
located in hazard prone areas
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Promotes community , individual,
worker safety through safe design,
construction, operation &
maintenance of physical
infrastructure…;
Promotes the use of recognized
good practice in production,
management, transport & disposal
of hazardous materials…;
Promotes the use of Integrated Pest
Management practices… etc.
Combines and expands principles of several Safeguard
Policies
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Example 4
Core Principles
Key Planning Elements
Avoid exacerbating social
conflict, especially in fragile
states, post-conflict areas,
or areas subject to territorial
disputes
Considers conflict risks,
including distributional
inequity and cultural
sensitivities
Greatly broadens scope of attention on
social protection and well-being,
beyond Safeguard Policies on
involuntary resettlement and indigenous
peoples
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