PHN 1991 Sector Review 6 2.6 The proportion of PHN projects that receive IDA funds is larger than the Bank-wide average. Overall, 59 percent of the total amount of Bank lending to PHN operations in FY91 was comprised of IDA funds, compared with 28 percent for all<sup>Bank</sup> projects. The proportion was greater for<sup>social</sup> development projects (73 percent) thdn for "pure' PHN projects (53 percent), as befits the former projects' important role in poverty reduction. (Annex 1, Ibble 1 itemizes the IBRD/IDA allocations.)

# _3. Coflnanc_

2.7 In FY91 the number of cofinanced projects increased with the overall growth in the number<sup>of</sup> PHN sector projects, though the proportions remained the same as in FY90. The regional distribution of cofinanced projects ums, however, more balanced in FY91. Every region had some cofinanced projects in FY91, whereas in FY90, Asia<sup>and</sup> EMENA had no cofinanced projects (Text Tble 3). The Bank's leveraging of additional funds for its PHN and social development projects was significantly higher in FY91 than in FY90 according to both measures of additionality--the amount donor cofinancing (not recipient governments) adds to the Bank's lending .'or all PHN projects (overali additionality) and the amount cofinancing adds<sup>only</sup> to the projects that are cofinanced. In FY91 cofinancing more than doubled the resources available to the cofinanced projects. The proportion of PHN sector projects receiving cofinancing from official sources (61 percent) was higher than the overall Bank share (53 percent); in FY90 the shares were equal (56 percent).

2.8 Other donors contribute more to the financing of social development projects than to 'pure' PHN projects: overall additionality is 113 percent in social development projects and 33 percent in PHN-only projects. IX the cofinanced social development projects, additionality is 153 percent; in the PHNonly projects it is 83 percent. The social development projects, supporting a broad range of social investments, appear to offer an attractive means of combining assistance. Official cofinancing of Bankassisted PHN and social development projects reveals only part of the growing collaboration between the Bank and other agencies in the official donor community, however. The social development project appraisal reports, in particular, refer to coordination in support of larger country social programs, of which the Bank project often constitutes only a part.

Tible 3: Cofinancing from Official Sources in PHN Projects, FY90 and FY91

|3s. Cotfirn|ed<br>Projects<br>FY|FY91|
|---|---|---|
||90||
||_................_<br> f<br>Total<br>N0|_........._<br>Nof<br>Total<br>LO|
||go.o<br> <br>.|o. <br> <br>.<br> <br>|
||Coflraced<br>of PHU|Cofinared<br>of P,Ig|
|Region|Projects<br>Projects|Projects<br>Projecto|
||8FRICA<br>7<br>a|<br>9<br>12|
|ENEA|0<br>2|**3**<br>**6**|
|**LAC**|**3**<br>6|**3**<br>5|
||..<br>....<br> <br> <br>|...<br>....<br> <br>|
|AllR8gior|<br>10<br>18|17<br>28<br>|
|..........|...........|28|
|3b.Addition|<br>ity<br>Ovrall;|Additionetity<br>In Cofmr4oed<br> <br>|
||Additloo<br>lity|Projects<br>**18)**|
|Regio|F90<br>FY91|F;90<br>FY91|
|<br>.-.-.-.-.<br>AFRICA|-.-.-.<br>42?<br>393|<br>l<br>603<br>S91|
|<br>ASIA|..<br>.<br>07<br>S|.<br>.<br>0.0<br>112.0<br>|
|EIEUA|0.0<br>1380|040<br>1<br>89<br>1|
||<br>4||
||.<br>..<br> <br>|.........|
||<br>|<br>|
|Allee|o1S.4<br>**36.0**|**S6.?**<br>**110.2**|

2.9 An interesting feature of the FY91 lending program is the involvement of in-countrycofinanciers in addition to central government or, in one or two cases, in place of central government. In three of the Africa projects and in one Asia project, state governments and public agencies are cofinancders. In many projects the beneficiaries are also contributing: this is occurring in six Africa projects, two LAC projects and one Asia project In the Korea Health Technology I project, the private hospitals that are the project beneficiaries are financing 26 percent of total project costs while the government is making no financial contribution. In all other projects the amounts committed by the beneficiaries are quite small, since they are, in most cases, the municipalities, NGOs,