A Proposed New Lending Instrument
Washington, March 2, 2011 – The World Bank is launching global public consultations (March-May 2011) on a proposed new lending instrument – Program-for-Results (P4R) – that would support government programs and link disbursements to the achievement of results.
The guiding principles and key elements of this proposed new instrument are discussed in the Concept Note – A New Instrument to Advance Development Effectiveness: Program-for-Results Lending. The Bank is seeking feedback on this concept note.
The Program-for-Results or “P4R” instrument responds to demands from the Bank’s client governments, who are implementing their own development programs and increasingly want partners for finance and expertise to improve the effectiveness and efficiency of those programs in achieving results.
P4R would focus Bank support directly on improvements in sectoral or other development programs and would place more direct emphasis on results by making them the basis for disbursement. With its program-level orientation, the new instrument would complement the Bank’s two existing lending instruments—investment lending (IL), which supports specific projects, and development policy lending (DPL), which supports policy and institutional reforms.
The Bank will be consulting a wide range of shareholders and stakeholders – including member country authorities, development partner organizations, representatives of civil society, academics, think-tanks, media, the private sector, and others.
The guiding principles and key elements of this proposed new instrument are discussed in the Concept Note – A New Instrument to Advance Development Effectiveness: Program-for-Results Lending. The Bank is seeking feedback on this concept note.
The Program-for-Results or “P4R” instrument responds to demands from the Bank’s client governments, who are implementing their own development programs and increasingly want partners for finance and expertise to improve the effectiveness and efficiency of those programs in achieving results.
P4R would focus Bank support directly on improvements in sectoral or other development programs and would place more direct emphasis on results by making them the basis for disbursement. With its program-level orientation, the new instrument would complement the Bank’s two existing lending instruments—investment lending (IL), which supports specific projects, and development policy lending (DPL), which supports policy and institutional reforms.
The Bank will be consulting a wide range of shareholders and stakeholders – including member country authorities, development partner organizations, representatives of civil society, academics, think-tanks, media, the private sector, and others.
At the conclusion of the external consultations, the Bank will synthesize the inputs received and post a summary of how Management proposes to address the key issues raised.
Feedback from the consultations will inform the final design of the instrument and the policy statement that will guide P4R operations. It is expected that the details of the new instrument will be brought to the Board for discussion and approval by the end of FY11.
