Strategy
Number of Active Projects | 12 |
IBRD Lending | $2.9 Billion |
Through the Country Partnership Framework (CPF) for FY19-23, the World Bank supports Romania’s efforts to accelerate structural reforms and convergence with the EU through robust, sustainable, and equitable growth and enhanced competitiveness.
Engagement over FY19–23 has an overarching goal of strengthening Romania’s institutions and aims to advance poverty reduction and promote shared prosperity through three pillars: (i) Equal opportunities for all; (ii) Private sector growth and competitiveness; and (iii) Resilience to shocks.
The Performance and Learning Review provided small adjustments to the CPF to reflect the challenges of the COVID-19 outbreak and reconfirmed the strategic framework for engagement. A Systematic Country Diagnostic has been prepared and finalized in March 2023 to inform the future CPF beyond FY23.
The Bank engages in Romania through the full range of its instruments: investment lending, development policy lending, Advisory Services and Analytics (ASA), Trust fund related work and Reimbursable Advisory Services (RAS).
Key Engagement
IBRD
The Romania program utilizes the full array of Bank instruments and consists of 12 projects (US$2.9 billion) and 49 Advisory Services and Analytics (ASA), out of which 7 are EU-funded trust funds (US$5.67 million), 36 Reimbursable Advisory Services (RAS) agreements in implementation (US$132.08 million), 2 RAS activities under preparation, and 4 Bank-financed ASA.
The RAS program complements the overall country program in Romania and supports enhancing institutional capacity in the areas of governance, evidence-based policy making, public procurement, strengthened capacity for monitoring and evaluation, protection of the vulnerable, disaster risk management, urban regeneration, justice reform, and an increasing set of activities supporting the capacity strengthening of the Government in implementing the National Resilience and Recovery Plan for reforms (improved strategic planning and budgeting, pensions, public wage, social assistance, education, water, central government functions, digitalization). The technical assistance financed by the European Commission through Trust Funds covers early school leaving, civil service reform, flood risk management, energy sector regulatory framework, access to education for Ukrainian displaced children and access to assistance services for Ukrainian refugees.
A Romania Country Climate and Development Report (CCDR) is being drafted and is scheduled to be delivered by June 2023.
International Finance Corporation
Since 1991, IFC has supported private sector development in Romania with approximately US$4.6 billion. IFC has accelerated the delivery of its program in the last five years registering a total of US$1.9 billion with a record year in FY22 of US$458 million. As of March 2023, IFC’s program in FY23 stood at US$217.9 million and total committed exposure reached US$1.5 billion (64% in FIG, 35% in MAS and 1% in CDF).
Under the ongoing FY19-23 CPF, IFC will continue to support private sector development in Romania applying strong selectivity by prioritizing interventions that catalyze private investments or mobilize other funding and contribute to regional or global public goods to increase development impact on the poor and most vulnerable.
A New CPF preparation was initiated in December 2022 with Board approval anticipated in December 2023. Ahead of the new CPF, IFC will prepare an IFC 3.0 Country Strategy for Romania. IFC’s new strategy will reflect the outcomes of the recent SCD and CPSD analytics, while aiming to respond to the implications of the ongoing war in Ukraine and the post-COVID19 global dynamics.
Last Updated: Apr 11, 2023