Proposed Adoption and Application of the World Bank Performance Standards for Private 

Sector Project Supported by IBRD/IDA

June 2012

The U.S. welcomes discussion of the Bank Group’s support for private sector operations and can 

agree to support the adoption and application of the proposed World Bank Performance 

Standards, given Management’s commitment to issue an operational procedure for staff about 

how to process projects that apply the Bank Performance Standards. Effective World Bank 

Group engagement with the private sector to mobilize financing for infrastructure is an important 

challenge for the World Bank and its ability to support clients. The proposed Performance 

Standards, which have the potential to reduce transaction costs and processing times, are a 

concrete way in which the Bank Group can strengthen this engagement.

Bank management advises that this approach would provide the same degree of protection as 

currently applied under the World Bank safeguard policies. This assurance has been an 

important factor in the U.S. consideration of this proposal, especially with respect to protections 

for biodiversity and critical habitat. The U.S. welcomes Management’s commitment to report 

back to the Board on implementation of the proposed approach in the context of the Safeguard 

Policies review. The U.S. asks that Management assess the actual equivalence achieved, and 

provide a review of the challenges and successes of this approach.

The U.S. also believes that successful implementation of these Performance Standards will 

depend on ensuring that IBRD staff have sufficient training and resources to provide adequate 

supervision and monitoring of these projects and to achieve as good or better protection as 

currently applied under World Bank safeguards. The U.S. welcomes Management’s plans to 

provide a dedicated training program for relevant staff, including on supervision of projects, but 

would invite Management’s comment on the need for additional supervision resources to manage 

these projects. The U.S. understands that the IFC increased the amount of resources and staff 

devoted to environmental and social risks as part of the process of revising the Performance 

Standards. Is Management considering similarly increasing resources and staff?

The U.S. welcomes Management’s agreement that Project Appraisal Documents for private 

sector projects supported by IBRD/IDA will include the rationale for the Bank’s decision to 

employ the Performance Standards (or Bank Safeguard Policies in those cases where the Bank 

elects to employ the Safeguard Policies) as well as a clear division of responsibilities between 

the different entities of the World Bank Group. The U.S. also understands that decisions on the 

use of country systems will be subject to the requirements in OP4.00. 

The U.S. believes that the Inspection Panel should have jurisdiction over projects processed 

under the World Bank Performance Standards, with the Inspection Panel and IFC CAO carrying 

out their responsibilities as they do currently in joint projects. The U.S. also believes that the 

new operational procedure should be considered within the Bank’s operational policies and 

procedures for purposes of the Panel resolution. 
The U.S. welcomes the growing emphasis on supporting private sector development and 

modernizing World Bank Group approaches to better meet client needs and achieve development 

impact.