World Bank introduces new disbursement instrument
The World Bank (WB) Group on Monday proposed to introduce a new financial instrument called “Programme- for-Results or PforR,” which seeks to link the disbursement of funds directly to the delivery of defined, verifiable results.
“The objective of this new financing instrument is to link World Bank financing directly to the achievement of development results, outputs, or outcomes.
Mr Joachim von Amsberg, Vice President of the WB Group, made this known in a document made available to the Ghana News Agency.
“We believe that, with this new instrument, WB will be a better partner focused on results, institution building, and better partnerships.
“We have listened to a wide range of voices and we have built them into the new proposal that we are now keen to take forward,” he said.
According to the bank, a number of factors that would determine whether a programme is suitable for PforR include the country’s assistance strategy and the bank’s overall assessment of its policies and programmes.
It explained that PforR were designed to be programme specific, adding: “Results can also be key actions that seek to address specific risks or constraints to achieving goals.
“Countries may be able to access some advance funds, if needed, to help get a programme started.”
The bank said PforR aimed to strengthen the WB’s ability to partner with other development institutions, explaining that in some cases, only a small portion of a country’s overall budget for a development programme may be allocated through PforR.
The bank will be able to help that country to build its capacity to manage its programme, in collaboration with other partners when needed.
The measuring and verifying of results will be defined around the specifics of each programme that utilises PforR, depending on the country’s circumstances, the programme’s details, and other factors.
The verification network may include government agencies, statistical or audit entities, and third-party groups like non-governmental organisations and representatives of civil society.
World Bank principles and standards will be upheld throughout PforR while up-front assessments will be made on the environmental and social impact of any programme considered under PforR.
Projects considered as high risk in terms of their impact on the environment or people would not be financed under the PforR – like large dams, ports or power plants.
In addition, contracts above specific monetary thresholds will be excluded from the new instrument,
The bank said it would submit PforR to the Bank’s Board of Executive Directors for approval on January 24.
Source: GNA