IDA18

IDA18 Deputies’ Report

Additions to IDA Resources:
Eighteenth Replenishment

Towards 2030: Investing in Growth, Resilience and
Opportunity

December 19, 2016
(modified on January 10, 2017)

ACRONYMS AND ABBREVIATIONS
Fiscal year (FY) = July 1 to June 30
AAAA
ADF
ASA
BFF
CAT-DDO
CCSA
CPF
CPI
CPIA
CPL
CPR
CRI
CRW
CSC
CSO
DaLA
DFi
DPO
DRM
EFI
EITI
ESF
FCS
FCV
FY
GBV
GDP
GHG
GNI
GP
GRM
GW
HD
HIPC
IBRD
ICT
IDA
IDPs
IEG
IFC

Addis Ababa Action Agenda
African Development Fund
Advisory Services and Analytics
Blended Finance Facility
Catastrophe Deferred DrawDown Option
Cross-cutting Solutions Area
Country Partnership Framework
Consumer Price Index
Country Policy and Institutional
Assessment
Concessional Partner Loan
Country Performance Rating
Corporate Results Indicator
Crisis Response Window
Corporate Scorecard
Civil Society Organization
Damage and Loss Assessment
Development Finance VicePresidency
Development Policy Operation
Domestic Resource Mobilization
Equitable Growth, Finance and
Institutions
Extractive Industries
Transparency Initiative
Environmental and Social
Framework
Fragile and Conflict-affected
Situations
Fragility, Conflict and Violence
Fiscal Year
Gender-based Violence
Gross Domestic Product
Greenhouse Gas
Gross National Income
Global Practice
Grievance Redress Mechanism
Gigawatt
Human Development
Heavily Indebted Poor Countries
International Bank for
Reconstruction and Development
Information and
Communications Technology
International Development
Association
Internally Displaced Persons
Independent Evaluation Group
International Finance
Corporation

IFFs
ILO
IMF
LICs
M&E
MAPS2
MDB
MDRI
MIGA
MTR
NCBP
(I)NDCs
ODA
OECD
OGP
OP
PBA
PCPI
PEFA
PPF
PPP
PPR
PSW
RMS
RPBA
RRA
SAP
SCD
SD
SDGs
SDR
SME
SOE
SUF
TA
TAR
UN
WBG
WHO
WDR

Illicit Financial Flows
International Labor Organization
International Monetary Fund
Low-income Countries
Monitoring and Evaluation
Methodology for Assessing
Procurement Systems 2
Multilateral Development Bank
Multilateral Debt Relief
Initiative
Multilateral Investment
Guarantee Agency
Mid-Term Review
Non-Concessional Borrowing
Policy
(Intended) Nationally
Determined Contributions
Official Development Assistance
Organisation for Economic Cooperation and Development
Open Government Partnership
Operational Policy
Performance-Based Allocation
Post-Conflict Performance
Indicators
Public Expenditure and Financial
Accountability
Project Preparation Facility
Public-Private Partnerships
Portfolio Performance Rating
Private Sector Window
Results Measurement System
Recovery and Peacebuilding
Assessments
Risk and Resilience Assessment
Systems, Applications and
Products in Data Processing
Systematic Country Diagnostic
Sustainable Development
Sustainable Development Goals
Special Drawing Right
Small and Medium Enterprise
State-Owned Enterprise
Scale-up Facility
Technical Assistance
Turn-around Regime
United Nations
World Bank Group
World Health Organization
World Development Report

TABLE OF CONTENTS
EXECUTIVE SUMMARY ......................................................................................................................... i
SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS ..................................................... vii
INTRODUCTION....................................................................................................................................... 1
SECTION I:

IDA’S ROLE IN A CHANGING GLOBAL ENVIRONMENT ................................... 4

A. KEY TRENDS IN THE GLOBAL ECONOMY AND AID LANDSCAPE ..................................................... 4
B. ALIGNING THE WORLD BANK GROUP’S ROLE WITHIN THE 2030 AGENDA: THE “FORWARD
LOOK” ...................................................................................................................................... 8
C. WBG’S COMPARATIVE ADVANTAGE TO SUPPORT IDA COUNTRIES .............................................. 9
IDA’s Value for Money .............................................................................................................................. 10
IDA Country-level Engagement ............................................................................................................... 12
IDA Sectoral and Thematic Engagement ................................................................................................ 13
IDA’s Engagements at the Regional Level ............................................................................................. 14
SECTION II: TOWARDS 2030: INVESTING IN GROWTH, RESILIENCE AND
OPPORTUNITY IN IDA18 ........................................................................................... 14
A.
B.
C.
D.

LINKAGES TO SDGS ....................................................................................................................... 15
IDA’S GLOBAL AND REGIONAL PARTNERSHIPS ............................................................................ 16
BUILDING RESILIENCE AND RESPONDING TO CRISES .................................................................... 19
IDA’S RESULTS MEASUREMENT ................................................................................................... 20

SECTION III: SPECIAL THEMES ....................................................................................................... 22
A. SPECIAL THEME 1: JOBS AND ECONOMIC TRANSFORMATION ...................................................... 22
Creating Opportunities for the Private Sector – IDA18 Private Sector Window ............................. 29
B. SPECIAL THEME 2: GENDER AND DEVELOPMENT ......................................................................... 31
C. SPECIAL THEME 3: CLIMATE CHANGE .......................................................................................... 37
D. SPECIAL THEME 4: FRAGILITY, CONFLICT AND VIOLENCE .......................................................... 41
E. SPECIAL THEME 5: GOVERNANCE AND INSTITUTIONS.................................................................. 44
SECTION IV: IDA18 OPERATIONAL AND FINANCING FRAMEWORK .................................. 49
A. ENHANCING VOLUMES AND TERMS OF IDA ASSISTANCE ............................................................ 49
Concessional IDA Financing .................................................................................................................... 51
Non-concessional IDA Financing ............................................................................................................ 53
Lending Terms ............................................................................................................................................ 55
B. TRANSFORMING THE MANAGEMENT OF IDA’S FINANCIAL RESOURCES ...................................... 56
A New Integrated Finance Model to Leverage and Scale-Up IDA Resources .................................. 56
Commitment Authority in the New Financing Framework................................................................... 59
Replenishment Effectiveness ..................................................................................................................... 64
Contribution Procedures ........................................................................................................................... 65
C. FINANCING DEBT RELIEF AND ARREARS CLEARANCE .................................................................. 66
The HIPC Initiative .................................................................................................................................... 67
The MDRI .................................................................................................................................................... 67
Financing of Arrears Clearance Operations.......................................................................................... 69
SECTION V: ENSURING EFFECTIVE IMPLEMENTATION ...................................................... 69
SECTION VI: RECOMMENDATION .................................................................................................. 72

LIST OF ANNEXES
Annex 1: Results Measurement System for IDA18 .................................................................................... 73
Annex 2: IDA’s Performance-Based Allocation System for IDA18 ........................................................ 105
Annex 3: Implementation Arrangements: Exceptional Regime for Countries Facing Turn-Around
Situations .................................................................................................................................................. 109
Annex 4: Implementation Arrangements for the Exceptional FCV Risk Mitigation Regime .................. 113
Annex 5: Implementation Arrangements: Regional Sub-Window for Refugees and Host Communities 115
Annex 6: Implementation Arrangements: Scale-up Facility..................................................................... 117
Annex 7: Implementation Arrangements: the Crisis Response Window.................................................. 120
Annex 8: Implementation of IDA CAT-DDOs......................................................................................... 125
Annex 9: Implementation of the Concessional Partner Loan Framework ................................................ 127
Annex 10: Documents Provided for the IDA18 Replenishment ............................................................... 133
Annex 11: Draft IDA18 Resolution .......................................................................................................... 134

LIST OF BOXES, FIGURES AND TABLES
Boxes
Box 1. Examples of WBG Partnerships in the IDA18 Special Themes ..................................................... 18
Box 2. Migration and Development in IDA Countries ............................................................................... 26
Box 3. Key Findings from Jobs Diagnostics in IDA17 .............................................................................. 27
Box 4. Exploiting Gender Interlinkages with the Other Special Themes ................................................... 36
Box 5. State of Tax in IDA Countries ......................................................................................................... 46
Box 6. IDA’s Triple-A Credit Ratings ........................................................................................................ 57
Figures
Figure 1. Increased Efficiency in Use of Partner Contributions ................................................................... 3
Figure 2. Poverty Trends 1981-2015 ............................................................................................................ 5
Figure 3. Towards 2030: Investing in Growth, Resilience and Opportunity .............................................. 15
Figure 4. IDA Partnerships ......................................................................................................................... 16
Figure 5. Formality and Informality in Jobs – Wage Versus Self-Employment Share of Jobs .................. 23
Figure 6. Economic Transformation and Jobs – Distribution of Employment by Sector ........................... 23
Figure 7. Jobs and Economic Transformation – Approach......................................................................... 24
Figure 8. IDA-IFC-MIGA Support for Private Sector Development in IDA-eligible Countries ............... 25
Figure 9. IFC-MIGA Private Sector Window Overview ............................................................................ 30
Figure 10. Impact of Climate and Natural Disasters on IDA Countries ..................................................... 37
Figure 11. IDA17-18 Resource Mobilization – Partner Contributions and Other Resources..................... 60
Tables
Table 1. IDA18 Preferred Scenario............................................................................................................. 50
Table 2. IDA18 Financing Framework Summary....................................................................................... 59

EXECUTIVE SUMMARY
i.
Responding to heightened global ambitions and escalating risks, IDA18 presents a
bold paradigm shift in how it mobilizes finance to support a significant policy package to
help IDA clients achieve their development goals. The Eighteenth Replenishment of IDA
(IDA18) is the largest replenishment in IDA’s 56-year history and heralds a significant step change
in its policy and financing framework. Building on its global leadership and proven partnership
with the poorest countries, IDA will enable countries to implement the ambitious development
agenda agreed in 20151 that calls for a world free of poverty and hunger; a world that is peaceful
and equitable; a world that promotes gender equality; and a world that cares for its natural
resources and environment. Backed by a groundbreaking and transformational financing model, a
new and improved IDA will build on its track record of results to deliver tailored solutions that
spur growth, promote resilience and create opportunities in the world’s poorest countries.
ii.
IDA clients face a myriad of complex and interrelated challenges in the new global
economy, calling for innovative approaches to development. There is significant heterogeneity
among developing countries, with uneven development gains across countries. While poverty rates
have declined, extreme poverty remains concentrated in challenging environments. Climate
change and fragility, conflict and violence (FCV) threaten progress towards the Sustainable
Development Goals (SDGs) and, if unchecked, could push more people into extreme poverty:
a. Climate change related shocks could result in more than 100 million additional people
living in poverty by 2030.
b. The number of extreme poor living in Fragile and Conflict-affected Situations (FCS) –
currently accounting for around 20 percent of the world’s extreme poor and 50 percent of
the population in IDA FCSs – is projected to double by 2030.
c. In the absence of job opportunities, demographic pressures – particularly in countries
facing significant youth bulges – over the next decade will amplify the number of
unemployed in IDA countries.
d. In addition to the geopolitical pressures leading to the current refugee crisis and wave of
forced displacement, persistent income gaps, demographic imbalances, environmental
changes, social persecution, corruption and lack of services are forcing people to migrate
in search of better opportunities.
e. Gender disparities remain stubborn, including high adult lifetime risks of maternal
mortality in sub-Saharan Africa, high prevalence of gender-based violence (GBV) in all
IDA countries, large inequalities in IDA countries in paid and unpaid work, women’s
disproportionate lack of access to assets and limited voice and agency.
f. Compounding the longer-term challenges are the global economic headwinds that threaten
to reverse years of progress on poverty reduction. Particularly at risk are the extreme poor
and near poor living in the IDA countries that have experienced a recent growth slowdown.

1

In 2015, the international community achieved consensus on the SDGs, the Addis Ababa Action Agenda, and the Paris COP21
and Sendai Frameworks.

- ii -

iii.
These challenges – particularly in light of the 2030 ambitions – call for a new IDA,
underpinned by a transformational, ambitious policy and financial package. The IDA18
package responds to the calls from the G20 and international community for the World Bank
Group (WBG) to innovate and do everything it can to be a critical implementation agent for
achieving the 2030 Agenda. It also responds to the unprecedented demand expressed for resources
from the six IDA regions who have sound strategies to use these IDA18 resources effectively. This
package will support countries in making progress towards the SDGs, which closely align with the
WBG twin goals of eradicating extreme poverty and boosting shared prosperity in a sustainable
manner. IDA’s comparative advantage is rooted in a strong, effective and efficient business model
that delivers value for money and emphasizes long-term growth to ensure that results are sustained.
In the context of the WBG “Forward Look” exercise to better align the institution with the 2030
Agenda, IDA, together with International Bank for Reconstruction and Development (IBRD),
International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA),
will use the full range of WBG instruments and expertise, to deliver solutions that are tested and
tailored to the needs of its clients.
iv.
While progress in job creation and poverty reduction cannot be attributed to it alone,
IDA has been – and with sufficient support will continue to be – at the forefront of supporting
progress through financing, policy dialogue, and transfer of knowledge. Job creation depends
on Gross Domestic Product (GDP) growth and transformation toward more diversified and
competitive economies. IDA countries are expected to grow at 4.5-5 percent on average over the
IDA18 period.2 This level of growth is estimated to result in 31 million new jobs, based on the
historical relationship between output and jobs.3 Labor income growth is strongly related with
reduction in poverty. Assuming no population growth, poverty would decline by 134 million (from
454 million in 2013 to 320 million in 2020). 4 However, if population continues to grow as
projected, poverty is expected to decline by only 18 million (from 454 million in 2013 to 436
million in 2020). The difference in these two scenarios underscores how population growth in IDA
countries largely offsets the expected gains in poverty reduction.
v.
The WBG’s emphasis on value for money is reflected in the development impact it
delivers, increasing the effectiveness of every aid dollar. More specifically, IDA offers
evidence-based design and implementation of its operations, high quality standards and policies,
its financial scale and efficiency, and the synergies of the different WBG institutions. IDA’s value
proposition is inherent in its approach to addressing complex challenges that hinder sustainable
development. IDA delivers customized solutions backed by financial resources and unparalleled
global knowledge and experience, global leadership, and significant partnerships. IDA plays a
2

3

4

Based on the World Bank Global Economic Prospects, June 2016, which forecasts real GDP growth in emerging and
developing markets at 4.4 percent in 2016 and 4.7 percent in 2018.
Around two thirds of the jobs are estimated to be created in the informal sector (including in small-scale agriculture), with
another third coming from jobs in the formal sector. However, the scale of both overall job creation and formal wage
employment can rise further with a declining dependency on natural resources and successful economic transformation of
IDA economies. The strong rise in jobs should be seen against the backdrop of 36 million people (based on historical
relationship rather than demographic projections) estimated to enter the labor force during the IDA18 period. See also footnote
44.
These simulated poverty figures are rough estimates only, as they are based on several simplifying assumptions that allow
past consumption and income to be updated to future levels. Where data are missing, values are imputed. It is also assumed
that the gains of growth are proportionately distributed across population groups in each country, for example, among poor
and non-poor households.

- iii -

critical role as an integrator across the international system, bringing global partnerships with other
organizations and countries at all levels of development to its work in the poorest countries.
Leveraging IDA’s financial capacity through capital markets marks a historical step that further
strengthens IDA’s value proposition. This groundbreaking proposal represents a paradigm shift in
development finance to deliver on the international community’s Billions to Trillions ambitions
and calls for the Multilateral Development Banks (MDBs) to optimize their balance sheets.
vi.
IDA Deputies and Borrower Representatives (Participants) chose “Toward 2030:
Investing in Growth, Resilience and Opportunity” as the overarching theme for IDA18. The
overarching theme captures both the urgency and the need for a comprehensive large-scale
approach to mitigate the adverse impacts of climate change and fragility on development and
encourages actions to foster growth, equality and better governance so that poverty can be reduced
and prosperity shared by all. In addition, Participants selected five “Special Themes,” which serve
to deepen focus and results in critical areas across the IDA clientele. They retained three of the
themes from IDA17 – gender and development, climate change, and FCV – and introduced two
new themes to provide additional focus to tackle critical current challenges – Jobs and Economic
Transformation, and Governance and Institutions.
vii.
Among the many SDGs, the IDA18 Special Themes are strongly inter-linked and will
supplement the country engagement framework by spotlighting several of the most relevant
challenges facing IDA countries. The targeted focus on these themes will help support
development in FCV situations, address climate change, promote gender equality and
development, and strengthen governance and institutions by implementing important
commitments that enhance resilience of IDA countries and spur growth. The themes will promote
competitiveness and jobs – particularly for women and youth – strengthen governance and
institutions, strengthen domestic resource mobilization (DRM), build more inclusive societies,
close remaining human development gaps, and develop sustainable infrastructure. IDA18 provides
an opportunity to strengthen links among the Special Themes. For example, WBG efforts to
promote job creation in fragile environments are targeted to both men and women. These fragile
environments are further undermined by climate change, and while governance is critical in all
countries, it is particularly so in fragile countries.
viii. Participants strongly welcomed the most innovative and ambitious IDA financing
package ever proposed. They particularly welcomed the first ever public credit rating of IDA, a
triple-A rating announced by two rating agencies in September 2016. In addition to supporting the
escalating demand for IDA resources, the groundbreaking IDA18 financing package – introducing
market leverage and new financing instruments – represents a paradigm shift and a new level in
IDA’s efficient use of partner resources. Participants agreed that optimizing the use of IDA’s
balance sheet – by introducing the hybrid financing model that blends Partners’ grant contributions
with capital market debt – provides great value for money to IDA partners and clients and increases
IDA’s leverage. Participants endorsed Management’s intention to prepare IDA for issuing bonds
in capital markets.
ix.
As one of the most concrete and significant responses to date on the Addis Ababa
Action Agenda (AAAA) to scale up the financing needed to achieve the SDGs, market
leverage will enable IDA to provide the poorest countries with billions of dollars in additional

- iv -

resources, and offers donors an exceptional value proposition. With the innovations put
forward, IDA18 dramatically increases the impact of partner contributions, generating about three
dollars of financing commitments for every one dollar from Partners, an increase from the 2:1 ratio
in IDA17. Participants view the new hybrid financing model as a major and decisive step towards
IDA balance sheet optimization.
x.
Implementation of this new integrated financing model will be carefully introduced
and monitored as the policies supporting the transformational IDA18 proposal evolve and
as lessons emerge. Participants acknowledged that the framework is prudent and sustainable into
the future, and appreciated that it allows maintaining IDA’s mandate to provide concessional
financing on terms that respond to clients’ needs. They also underlined that strong partner
contributions remain the key element of the hybrid framework to ensure for the long-term financial
sustainability of IDA. Participants noted that IDA18 choices do not prejudge decision-making for
future replenishments. They also discussed the possibility of leveraging IDA’s assets on IBRD’s
balance sheet and agreed that such approach would not be implemented in IDA18, but could be
discussed in the future.
xi.
Underpinned by this transformative financing package and continued partner
support, Participants agreed to an array of measures to help clients achieve their amplified
ambitions:


Double financial support in aggregate for countries facing current or rising risks of
fragility, by: (i) increasing the poverty orientation of the regular Performance-Based
Allocation (PBA) system by reducing the Country Performance Rating (CPR) exponent
from 4 to 3; (ii) increasing the annual minimum base allocation from SDR4 million to
SDR15 million; (iii) eliminating the Multilateral Debt Relief Initiative (MDRI) netting out;
(iv) eliminating the grant discount; (v) continuing the implementation of the exceptional
Turn-around Regime (TAR); and (vi) providing exceptional Risk Mitigation support to
Guinea, Nepal, Niger, and Tajikistan for the IDA18 period;



Increase support to strong performing countries and non-FCS, who would continue to
receive the bulk of IDA financing (nearly 65 percent of core IDA);



Significantly increase financing for the Regional Program, where demand for resources to
expand regional integration and infrastructure has consistently outstripped supply;



Establish a regional sub-window for refugees within the Regional Program to provide a
dedicated source of funding for host governments struggling to meet the needs of both
refugees and their host communities;



Expand financing to promote resilience through crisis preparedness and response, through
an enhanced Crisis Response Window (CRW), including aligning governance
arrangements for responding to economic shocks with the two-step process in place for
natural disasters and health emergencies. For countries exposed to severe natural disasters
leading to significant damage and losses of over one-third of GDP, Participants supported
the adjustment of IDA financing terms in the current fiscal year, if warranted, based on an
updated Debt Sustainability Analysis (DSA) in the aftermath of the natural disaster;

-v-



Expand instruments available for crisis preparedness and response, by introducing the
Catastrophe Deferred Draw-Down Option (CAT-DDO) for IDA countries in response to
the demand for contingent financing mechanisms;



Introduce an IFC-MIGA Private Sector Window (PSW) to mobilize increased private sector
investment in IDA countries, especially FCS, through unprecedented collaboration among
IDA, IFC and MIGA to scale up their work in the most challenging markets;



Increase non-concessional financing available for transformational projects, through the
IDA18 Scale-up Facility (SUF), to meet the very strong client demand; and



Provide transitional support for IDA18 graduates, which still have significant poverty and
lingering vulnerabilities, while facing a drop in World Bank financing.

xii. Recognizing the unique challenges faced by small states, Participants endorsed a
package of adjustments in IDA18 that will greatly enhance IDA’s engagement. First, as noted
above, the annual base allocation will be nearly quadrupled from SDR4 million to SDR15 million.
Second, the favorable lending terms for small island economies will be extended to all small states
– i.e., countries with a population of 1.5 million or less. And third, eligibility for the 20 percent
cap under the Regional IDA program will now be linked to country size rather than the size of a
country’s annual allocation.
xiii. Participants welcomed the extension of the range of IDA’s terms, as well as the suite
of financing products, offered to IDA clients. Terms would take into account the increasing
variation in countries’ development, and smooth the transition to IBRD lending terms. They
supported extending the most concessional IDA lending terms for small-island states to all IDAeligible small states. They also noted that grant financing and regular terms remain unchanged.
Blend terms will be revised (extending the maturity from 25 to 30 years) in order to meet the
Bank/Fund minimum concessionality requirement of 35 percent. Participants appreciated that the
grant/credit distribution of Regional Program financing will be harmonized with that of
concessional Core Financing for all beneficiary countries. Resources for transitional support to
IDA18 graduating countries and also for the IDA18 SUF would be provided on IBRD lending
terms. And as noted above, Participants welcomed the CAT-DDO for IDA countries.
xiv. Participants supported the proposals to provide additional non-concessional
financing to IDA clients – in a position to take on such terms based on debt sustainability
considerations. In this context, they agreed that financing at IBRD lending terms will be offered
to eligible countries through the IDA18 SUF.5
xv. Participants congratulated Bolivia, Sri Lanka and Vietnam on their recent
development gains and on the achievement of graduating from IDA at the end of IDA17 and
called for steps to strengthen the transition out of IDA. Non-concessional financing will be
offered to the IDA18 graduates – Bolivia, Sri Lanka and Vietnam – to ensure that their transition
from IDA to IBRD is smooth and successful. Participants asked Management to put in place
5

As part of the outreach on the new IDA lending term options, IDA borrowers would be provided with information on the risks
of floating rates compared to fixed rates, and compared with IDA concessional rates. In the context of the dialog on a country’s
DSA and the IDA Non-Concessional Borrowing Policy (NCBP)/IMF Debt Limits Policy, the advantages of fixing rates would
also be discussed with the IDA borrowers, as needed.

- vi -

measures to ensure that this transition assistance is not front-loaded unless there is a compelling
reason to do so, so that a review of the level of transition support at the IDA18 Mid-Term Review
(MTR) is most meaningful. This review at the MTR will consider a holistic and longer term
approach to transition. The options presented will be informed by further analysis to support a
smooth transition for graduating countries and will take into account the outcome of the IBRD
capital discussion. It will also consider how to better utilize the blend period to ensure graduation
readiness for future IDA graduates.
xvi. Participants also supported a temporary suspension of the acceleration clause.
Participants also noted that the implementation of the acceleration clause could place too much
burden on the proposed IDA18 graduates and supported the temporary suspension of the decision
to exercise the acceleration clause for Bolivia, Sri Lanka and Vietnam until the MTR discussions.
In the context of the transition analysis described above, Management will also make a proposal
regarding acceleration.
xvii. IDA’s results focus makes it uniquely well placed to maximize development impact
and help clients reach the SDGs by 2030. Participants noted that the IDA Results Measurement
System (RMS) has evolved into a robust accountability and management framework that has
contributed significantly to results monitoring and learning at country, program and project levels.
Participants appreciated the higher level of ambition built into the IDA18 RMS targets and
endorsed revisions to the RMS to align it with the SDGs, reflect the IDA18 Special Themes, and
ensure data quality, efficiency, selectivity and harmonization with the WBG Corporate Scorecard
(CSC). Participants welcomed Management’s commitment to strengthen data collection and
statistical capacity at the country level. Participants endorsed a strong package of policy measures
and performance targets to support IDA countries towards the 2030 agenda (Annex 1). The
package encompasses policy commitments and a set of indicators under IDA’s RMS.
xviii. Participants highlighted the importance of partnerships for results, which is central
to promoting aid effectiveness. IDA’s partnerships and coordination with a multitude of the UN
agencies, the IMF and other MDBs, a myriad of dedicated vertical funds, and hundreds of Civil
Society Organizations (CSOs) – including advocacy and operational CSOs, private foundations,
faith-based organizations, and think tanks – are absolutely critical to maximize impact for IDA’s
clients and mobilize domestic, private and development partner resources.
xix. Recognizing the significant scale up in ambition of IDA18, Participants emphasized
the need for robust implementation planning to ensure effective impact and results. They
called for substantial Management attention to budgetary and staffing requirements on preparation,
pipeline development, supervision, and monitoring, learning and evaluation to ensure IDA is doing
all it can to deliver for its clients and help build their absorptive capacity. They also underscored
the importance of strong and substantial project preparation and implementation support to its
clients, particularly in FCV situations and the resources to do this work effectively. In this regard,
Participants welcomed the draft proposal to enhance the effectiveness of the Project Preparation
Facility (PPF). Given the significant implementation issues, Participants called for opportunities
to remaining informed prior to the MTR. In this regard, they welcomed Management’s plans to
provide updates on implementation progress/issues and pipeline development at the time of the
Spring and Annual Meetings of the WBG.

- vii -

SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS
Participants agreed on a set of policy and financial recommendations towards achieving the WBG
goals to end extreme poverty and promote shared prosperity in a sustainable manner in IDA
countries. They noted that the policy and financial package will support IDA countries in making
progress towards the 2030 targets and increase the effectiveness and impact of IDA support in
IDA18. Annex 1 presents the full set of policy commitments and indicators for IDA18. The key
conclusions and recommendations are summarized below.
A.
Jobs and Economic Transformation: Commitments aim to: support job creation through
sustainable economic transformation; raise job quality and ensure inclusion of youth and women;
target support for the private sector and workers in high-risk contexts, including fragility and
migration; and improve the knowledge base to inform operations supporting jobs and sustainable
economic transformation.


Participants requested deployment of tools and resources from IDA and IFC to undertake
10 inclusive global value chain analyses in IDA countries to understand how they can
contribute to economic transformation and job creation, including through growth in agribusinesses, manufacturing, and services, and will use this analysis to inform activities
within the IDA portfolio.



Participants recommended use of Global Infrastructure Connectivity Alliance to make
available to IDA countries knowledge on lessons and approaches related to cross-border
investments and economic corridor development, and will use this analysis to inform
activities within the IDA portfolio.



Participants urged WBG to systematically carry out impact analyses of Small and Medium
Enterprise (SME) and entrepreneurship programs across IDA countries to assess their
overall impacts and differentiated outcomes for women and youth, and will develop
operational guidelines to inform future operations.



Participants recommended preparation of operational guidelines for integrated youth
employment programs with a focus on connecting to demand-side interventions and
supporting labor market integration, and will inform the design of the new generation of
youth employment programs in IDA countries.



Participants recommended enhancing existing, and introducing new operational
instruments to improve risk sharing in projects and to crowd-in private capital in high risk
investment environments, including through the introduction of the IFC-MIGA PSW.



Participants recommended adopting a ‘migration lens’ in IDA countries where migration
has a significant economic and social impact (including home, host, and transit countries):
this will include analytics that close critical knowledge gaps and, where there is explicit
country demand, support for operations that focus on job creation, managing legal
economic migration, and integrating young people and economic migrants.



Participants recommended WBG to develop and make available for use in IDA countries
a set of ex ante measurement tools and systems to assess the impacts of large-scale public

- viii -

and Public-Private Partnerships (PPP) investments targeting infrastructure and economic
transformation on jobs, including pilot assessments on gender outcomes.


Participants urged cataloguing of learnings from the Jobs Diagnostics, assessing how Jobs
Diagnostics are informing the design and implementation of operations in IDA countries
targeting job creation and economic transformation, and recommending any changes
necessary to improve the impact of the tool.



Participants requested WBG to develop and integrate spatial perspectives into analysis of
migration and urbanization trends, and the impacts of infrastructure on jobs and economic
transformation, this will include piloting of: spatial inventory of infrastructure in five IDA
countries; urban jobs accessibility assessments of 10 cities in IDA countries; and spatial
assessment of trends in job creation and destruction in five countries.

B.
Gender and Development: Commitments aim to sharpen the focus on closing gaps
between women and men, girls and boys in country strategies and operations, and strengthen the
data and evidence base to enhance impact towards gender equality.


Participants requested that all applicable IDA18 financing operations in primary and
secondary education address gender-based disparities, for instance, by incentivizing
enrollment, attendance and retention for girls.



Participants requested that all IDA18 financing operations for maternal and reproductive
health target the improvement of the availability and affordability of reproductive health
services, including for survivors of gender-based violence.



Participants requested that at least 75 percent of IDA18 financing operations for skills
development consider how to support women’s participation in and improvement in the
productivity of their economic activity, and/or consider how to reduce occupational
segregation.



Participants requested that at least two-thirds of all IDA18 financing operations in urban
passenger transport address the different mobility and personal security needs of women
and men.



Participants requested that at least 10 IDA18 financing operations and Advisory Services
and Analytics (ASA) for financial inclusion address gaps in men’s and women’s access to
and use of financial services and at least 10 Financial Inclusion strategies in IDA countries
provide sex-disaggregate reporting and put in place actions to target specifically women's
financial inclusion.



Participants requested that at least half of all IDA18 financing operations in the Information
and Communications Technology (ICT) portfolio support better access to the Internet and
better access to ICT services for women.



Participants recommended that pilot data collections be launched in at least six IDA
countries to gather direct respondent, intra-household level information on employment
and assets.



Participants urged an increase in the number of operations in fragile contexts which prevent
or respond to gender-based violence, including through access to essential services and
livelihood support activities for women (baseline: IDA16; see FCV).

- ix -



Participants requested that the recommendations of the WBG Global Task Force on
Gender-Based Violence be implemented, as applicable, within operations in IDA-eligible
countries.

C.
Climate Change: Commitments aim to: deepen the mainstreaming of climate change and
disaster risk management into Systematic Country Diagnostics (SCDs), Country Partnership
Frameworks (CPFs), and lending, and support development of planning and investment capacity;
support efforts to achieve the Sustainable Energy for All objectives; and monitor and report on
IDA resources used for climate change.


Participants requested that all IDA SCDs and CPFs incorporate climate and disaster risk
considerations and opportunities and reflect (Intended) Nationally Determined
Contributions ((I)NDCs), based on a review of experience before the start of IDA18, and
to be reported at MTR.



Participants requested that all IDA operations continue to be screened for climate change
and disaster risks and integrate resilience measures, based on review of experience before
the start of IDA18, and to be reported at MTR.



Participants requested WBG to support at least 10 countries (on demand) to translate their
(I)NDCs into specific policies and investment plans with a view to starting their integration
into national budget and planning processes.



Participants urged WBG to develop at least 10 climate-smart agriculture investment plans
and 10 programmatic forest policy notes.



Participants recommended increased use of Development Policy Operations (DPOs) that
support climate co-benefits.



Participants recommended applying greenhouse gas (GHG) accounting and shadow carbon
price for all operations in significant sectors, and preparing a revised guidance note on
discount rates.



Participants urged WBG to support the addition of five gigawatts (GW) in renewable
energy generation.



Participants requested WBG to develop Investment Prospectuses in seven additional
countries with low electricity access.



Participants requested annual reporting on private finance mobilized for climate and
continue to report on overall climate finance together with other MDBs.6

D.
Fragility, Conflict and Violence: Commitments aim to: deepen IDA’s knowledge on FCV
and learning from operational experience; design integrated WBG strategies addressing FCV
drivers and building institutional resilience; improve staffing, operational effectiveness and
flexibility; promote partnerships for a more effective response; and enhance financing to support
FCS/FCV.

6

Climate finance reporting will continue to follow the methodology and procedures agreed upon with other MDBs and will
report on the WBG numbers.

-x-



Participants requested WBG to adopt a risk-based approach for identifying fragility beyond
those countries on the FCS harmonized list.



Participants recommended deepening WBG’s knowledge on the mitigation/prevention of
FCV risks through a flagship report drawing on lessons from operational experience and
impact evaluations.



Participants recommended that Risk and Resilience Assessments (RRA) inform all CPFs
in FCS and countries with significant risks of FCV.7



Participants requested an increase in the number of operations targeting refugees and their
host communities (baseline: IDA17).



Participants urged an increase in the number of operations in fragile contexts which prevent
or respond to gender-based violence, including through access to essential services and
livelihood supported activities for women (baseline: IDA16).



Participants recommended increasing staff “facetime” in IDA FCS with a focus on staff
based in-country and monitoring progress through the “Facetime index”. 8



Participants recommended undertaking joint Recovery and Peacebuilding Assessments
(RPBA) as openings arise for engagement in the aftermath of conflict in IDA countries.



Participants recommended that Management implement the revised IDA resource
allocation framework for FCS/FCV (Section F below: Adjustments to Volumes and Terms
of IDA Assistance).

E.
Governance and Institutions: Commitments aim to: strengthen DRM; improve public
expenditure, financial management and procurement; strengthen active ownership of State-Owned
Enterprises (SOEs); support public administration performance for service delivery; support
institutional capacity to respond to pandemics; integrate citizen engagement and beneficiary
feedback into service delivery operations; strengthen open, transparent and inclusive governance
through Open Government Partnership (OGP) commitments; mitigate illicit financial flows (IFFs);
enhance understanding of governance and institutions in situations of FCV; and operationalize the
World Development Report (WDR) 2017.

7

8



Participants recommend supporting at least a third of IDA countries targeted at increasing
their Tax/Gross Domestic Product ratio through lending operations, ASA and technical
assistance (TA) including tax diagnostic assessments.



Participants requested IDA to support at least 10 IDA countries in performing 2nd or
subsequent Public Expenditure and Financial Accountability (PEFA) assessments to
inform preparation of their SCDs.



Participants recommended WBG to deliver Methodology for Assessing Procurement
Systems 2 (MAPS2) in five IDA countries to accelerate the development of modern,

Countries eligible for exceptional IDA allocations to mitigate FCV risks are identified on the basis of a cross-country risk scan
combining quantitative and qualitative assessments. Also see Annex 4 of “Update IDA18 Operational and Financing
Framework” (September 2016).
The proposed “Facetime” indicator will reflect World Bank staff time in-country, missions as well as international and local
staff and consultants based in the country.

- xi -

efficient, sustainable and more inclusive public procurement systems that take into account
national development objectives.


Participants requested that at least 10 IDA countries be supported on enhancing SOEs
performance through: (i) Performance Agreements and/or (ii) increased transparency
through published reports on their SOE portfolio.



Participants recommended IDA to perform joint operations, TA, and/or ASA on sectorfocused governance in 10 IDA countries to identify and address institutional bottlenecks
to service delivery with the health, water, and/or education sectors.



Participants urged IDA to support at least 25 IDA countries in developing pandemic
preparedness plans.



Participants requested IDA to support 25 countries in developing frameworks for
governance and institutional arrangements for multi-sectoral health emergency
preparedness, response and recovery.



Participants requested IDA to support projects in at least 10 IDA countries in the
development and implementation of user feedback and/or enhanced Grievance Redress
Mechanisms (GRMs)9 for service delivery that ensure participation by women in these
processes.



Participants urged IDA to support at least one-third of IDA countries to operationalize
reform commitments towards the Open Government Partnership agenda to strengthen
transparent, accountable, participatory, and inclusive governments.10



Participants requested WBG to perform Illicit Financial Flows (IFFs) assessments in at
least 10 IDA countries to support the identification and monitoring of IFFs.



Participants recommended strengthening and systematizing of Governance & Institutional
analysis in half of RRAs and at least three-quarters of RPBAs in IDA countries.



Participants requested IDA to plan for the operationalization of WDR 2017 focused on
reducing implementation gaps and enabling adaptive approaches.

F. Adjustments to Volumes and Terms of IDA Assistance


Participants agreed to the following changes to IDA’s PBA system: (i) increasing the
poverty orientation of the regular PBA system by reducing the CPR exponent from 4 to 3;
(ii) increasing the annual minimum base allocation from SDR4 million to SDR15 million;
(iii) eliminating the MDRI netting out; (iv) eliminating the grant discount, (v) continuing
the implementation of the exceptional TAR; and (vi) providing exceptional Risk Mitigation
support to Guinea, Nepal, Niger, and Tajikistan for the IDA18 period.



Participants agreed to: (i) increase the Regional Program to SDR5 billion; 11 (ii) fully
harmonize the terms of Regional Program financing with that of concessional Core

9

Enhanced GRMs include minimum standards on uptake, responsiveness, disclosure, and/or gender inclusion.

10

Open government activities include access to information, asset disclosure, citizen engagement, fiscal transparency, open
contracting, open data, participatory budgeting, service delivery, and social accountability.
This includes an SDR 1.4 billion sub-window for refugees.

11

- xii -

Financing; and (iii) adjust the eligibility criteria for the 20 percent cap on national
contributions under the Regional Program.12

12

13



Participants agreed to establish a SDR1.4 billion sub-window within the Regional Program
to provide financing for projects targeting refugees and their host communities. It was also
agreed that financing from the refugee sub-window would be provided as follows: (i) for
high risk of debt distress countries, additional funding will be on grant terms only; and (ii)
for moderate and low risk of debt distress countries, additional funding will be 50 percent
in grants and 50 percent in applicable credit terms of the beneficiary country. 13 In addition,
irrespective of the risk of debt distress, national contributions would be half those required
under the IDA Regional Program.



Participants agreed to the continuation of a dedicated Crisis Response Window (CRW) in
IDA18 and agreed to scale it up to SDR2.1 billion, to assist IDA countries to respond to
severe natural disasters, economic crises, and public health emergencies and epidemics, in
a timely manner. In exceptional circumstances this amount could be exceeded, subject to
approval by IDA’s Executive Directors. They also agreed to align the governance
arrangements for accessing the CRW for economic shocks with those for natural disasters
and health emergencies. For countries exposed to a severe natural disaster that results in
damages and losses in excess of one-third of GDP, Participants agreed to allow for the
adjustment of IDA financing terms, if warranted based on an updated debt sustainability
analysis shortly after the crisis. To strengthen preparedness and promote resilience against
disasters, Participants also endorsed the introduction of CAT-DDOs for IDA countries.



Participants agreed to establish an IDA18 Scale-up Facility in the amount of SDR4.4
billion to provide financing to blend and IDA-only countries on IBRD lending terms to
support high-quality, transformational single country and regional projects or programs
with strong development impact and focus on interventions that would help clients remove
critical constraints to development and mobilize private financing. They agreed that due
consideration will be paid to individual countries’ debt situation and implementation will
be consistent with the Non-Concessional Borrowing Policy (NCBP) and the IMF Debt
Limit Policy. Management will report on implementation experience under the IDA18 SUF
at the MTR.



Participants agreed that Bolivia, Sri Lanka and Vietnam would graduate from IDA at the
end of IDA17 and would receive exceptional transitional support during IDA18 on IBRD
lending terms in the amount of 2/3 of the resources that these countries received in IDA17.
They agreed this would be an IDA18 solution only, that front-loading of transition
assistance would be avoided unless there is a compelling reason to do so, and that the level
of transition would be reviewed at the MTR to take into account IBRD capital discussion.
In an effort to avoid a large drop-off in financing and ease changes in financing terms,
Management will undertake further analysis and will present options for better managing
the transition out of IDA at the MTR, including consideration of the role of the blend period

Beginning in IDA18, rather than being linked to the size of a country’s annual allocation, eligibility for the 20 percent cap is
extended to all small states – i.e., countries with populations of 1.5 million or less.
Where projects will only benefit refugees and not host communities (e.g., economic integration of refugees in local labor
market), on a case by case basis, funding from the refugee sub-window for moderate and low risk of debt distress countries
could be considered in 100 percent grant terms.

- xiii -

in ensuring graduation readiness, with a focus on future IDA graduates. At the MTR, the
cap on blends will also be discussed.


Participants agreed to temporarily suspend the decision to exercise the acceleration clause
for the IDA18 graduates Bolivia, Sri Lanka and Vietnam until the MTR discussions. At the
MTR, in the context of the transition review noted above, Management will make a
proposal regarding acceleration. If a decision is taken at the MTR to reintroduce the
acceleration clause, Participants agreed that FY20 would be the earliest point at which
acceleration could take effect given the need for affected countries to incorporate the
impact in their budget planning.



Participants agreed to allow IDA graduates to recommit amounts freed up from
restructuring their ongoing IDA-financed operations. Recommitments of cancelled
amounts for IDA graduates would be on IBRD lending terms.



Participants agreed to the establishment of a PSW in the amount of SDR1.8 billion to
further unlock synergies between IDA, IFC and MIGA and promote sustainable and
innovative private investments in non-gap IDA countries, with a focus on FCS, that are
clearly additional to existing activities and solutions.



Participants agreed that the IDA regular lending terms applicable to non-small IDA
countries would remain unchanged. They agreed that the lending terms applicable to small
island states would be extended to all IDA-eligible small states. Participants noted that
IDA’s blend terms do not meet the Bank/Fund minimum concessionality requirement of
35 percent. In order to meet the minimum requirement, blend terms (maturity of 25 years
with a grace period of five years) will be revised to a maturity of 30 years with a grace
period of five years resulting in a grant element of 35 percent, with all the other components
of blend financing terms to remain the same.

G. Replenishment of IDA Resources


Deputies supported the introduction of the new integrated IDA18 financing framework – a
hybrid model where traditional sources of financing are blended with debt in the form of
capital market borrowing and Concessional Partner Loans (CPLs).



Deputies supported implementation of the proposed framework in IDA18 where IDA will
blend partner contributions with market debt to leverage its balance sheet and significantly
scale up available replenishment resources, and welcomed exploration of further options
to optimize the use of IDA’s balance sheet in future replenishments. They also discussed
the possibility of leveraging IDA’s assets on IBRD’s balance sheet and agreed that such
approach would not be implemented in IDA18, but could be discussed in the future.
Deputies acknowledged that the proposed model – while supporting the ambitions of
IDA18 and the 2030 agenda – is robust and sustainable into the future and that the specific
level of debt financing will be guided by the prudent financial and risk management policy
framework.



Deputies recommended that contributions of SDR16.5 billion (equivalent to US$23.1
billion) be provided so as to achieve a total replenishment of SDR53.5 billion (equivalent
to US$75.0 billion) during the IDA18 period.

- xiv -



Deputies emphasized that grant contributions will continue to remain a key element of
IDA’s financial framework and leveraging success. With concessionality remaining at the
center of IDA finance, they noted the significant increase in IDA grant financing in IDA18.
They also agreed that changes in the IDA18 financing framework should ensure that grant
financing is compensated through the overall basic grant contribution from Partners, rather
than having a separate compensation for grant principal foregone. Deputies also recognized
that while the changes introduced in the IDA18 Financing Framework offer a historic
opportunity, they also require a joint commitment to address substitution risks in order for
the integrated business model to be successful and sustainable over the long run.



Deputies noted the importance of providing their Instruments of Commitment, as early as
possible, to enable IDA to extend grants during the early part of the IDA18 period.



Deputies recommended that IDA’s cost of debt relief under the Heavily Indebted Poor
Country (HIPC) Initiative and arrears clearance operations during the IDA18 period be
covered under the IDA18 Replenishment, with the former funded by partner contributions
and the latter by carrying over the unused arrears clearance resources from IDA17.



Deputies agreed to treat resources carried over from IDA17 for financing of arrears
clearance operations as a set-aside and requested Management to provide an update on
utilization and plans for reallocation of such resources at the time of the MTR.



Deputies recognized the importance for Partners to continue firming up their financing
commitments to the separate MDRI replenishment in order to support the total volume of
IDA18 commitment authority.



Deputies endorsed the continuation of CPLs in IDA18. They also endorsed the principles
of ensuring transparency, equal treatment, additionality (i.e., avoiding substitution), and
protecting IDA’s long-term financial sustainability. They recognized that concessional
loan contributors would receive burden sharing recognition and allocation of voting rights
based on the ‘grant element’ of the loan, as per the agreed CPL Framework (Annex 9).



Deputies emphasized the importance of transfers from IBRD and IFC to IDA to signify
solidarity among the WBG institutions. In this context, Deputies welcomed the formulabased approach for IBRD transfers, which is dynamic in nature and gives due consideration
to IBRD financial sustainability and capital adequacy. Such transfers would be subject to
annual approvals by their respective Boards after considering reserve retention needs.

INTRODUCTION
1.
As the World’s Premier Fund for the poorest, IDA is uniquely positioned to help
countries realize the international community’s far-reaching and ambitious development
agenda set for 2030. This agenda, agreed in 2015 – including agreement on the 17 comprehensive
and inter-connected Sustainable Development Goals (SDGs), the large-scale and universal COP21
agreement on climate mitigation, adaptation and finance, the Addis Ababa Action Agenda
(AAAA), and the Sendai Framework for disaster risk management – represents a trajectory shift
in the development dialogue. It signifies the desire of the global community to usher in a world
free of poverty and hunger; a world that is peaceful and equitable; a world that promotes gender
equality; and a world that cares for its natural resources and environment. The financing needs to
promote global public goods and tackle the new commitments under the SDGs, COP21 and the
Sendai framework are immense and will require private financing, domestic resources, as well as
official development assistance (ODA).
2.
To respond to the challenging global context and the international community’s call
for a step change in Financing for Development, the World Bank Group (WBG) will innovate
and do everything in its power to be a critical implementation agent. The WBG’s Forward
Look exercise responds to this call by taking a long-term perspective to ensure that the WBG is
“fit for purpose” to advance both its own twin goals of reducing poverty and boosting shared
prosperity in a sustainable manner as well as this ambitious 2030 Agenda. In the context of the
Forward Look, IDA is critical for the WBG’s capacity to support the world’s poorest and most
fragile countries in pursuing this Agenda. Implementing COP21, like the SDGs, requires strong
support for country-driven strategies and priorities as well as the additional financing needed to
implement the (Intended) Nationally Determined Contributions ((I)NDCs).
3.
Against this background of heightened ambitions, IDA’s Partners have worked
toward a transformational IDA18 package, anchored in a paradigm shift in its financing
framework and major innovations in its policy package. This package will allow IDA to be at
the forefront in financing to advance the 2030 Agenda, while further strengthening its results
orientation for maximum development impact. Moreover, it reflects crucial innovations to ensure
IDA can respond to the evolving needs and ambitions of its different clients facing complex and
interrelated challenges of fragility and conflict, climate change, increasingly frequent natural
disasters, the refugee crisis, pandemics, rising inequality, uncertain private capital flows, and
slowing global economic growth. Given projections that, by 2030, an estimated 50 percent of the
global poor will live in IDA fragile and conflict-affected situations (FCS), the massive human and
economic costs of fragility, and the strong negative spillovers for neighboring countries and the
rest of the world, IDA is responding by doubling its support for countries facing significant threats
of fragility. Importantly, this enhanced support does not come at the expense of well-performing
IDA countries still in need of assistance on their path toward resilience.
4.
Reflecting the trajectory shift in vision, scale and purpose in IDA18, Participants
selected “Toward 2030: Investing in Growth, Resilience and Opportunity” as the overarching
theme. This theme underscores both the urgency and the need for a comprehensive approach to
mitigate the adverse impacts of climate change and fragility on development and encourages
actions to foster sustainable growth, equality and better governance so that poverty can be reduced

-2-

and prosperity shared by all. It calls for a credible implementation plan to undertake large
investments that can shift the development trajectory to deliver results by 2030. And it reinforces
IDA’s long-standing value for money to strike the best balance among economy, efficiency, and
effectiveness to achieve the desired sustainable outcomes.
5.
The IDA18 Special Themes are designed to spotlight and help address persistent
challenges inhibiting development. The Special Themes aim to enhance IDA’s work on frontier
issues confronting IDA countries and will be implemented in line with country contexts. The
policy package accompanying the IDA18 Special Themes is a major scale-up over IDA17.
Participants agreed on five Special Themes for IDA18: Climate Change; Gender and
Development; Fragility, Conflict and Violence (FCV); Jobs and Economic Transformation; and
Governance and Institutions. The Special Themes on Climate Change, Gender and Development
and FCV are carried forward from IDA17 in view of the persistent challenges that these issues
pose. The new special theme on Jobs and Economic Transformation in IDA18 replaces IDA17’s
special theme on Inclusive Growth. It emphasizes infrastructure, private sector development, job
creation, and regional economic integration. A fifth special theme on Governance and Institutions
was added to focus on domestic resource mobilization (DRM), public financial management,
public administration reform, citizen engagement and Illicit Financial Flows (IFFs). The IDA18
Special Themes are interlinked and aim to tackle challenges that could undermine progress or
reverse development gains.
6.
To finance this paradigm shift of ambitions, the IDA18 financing framework presents
a historic step – introducing an integrated, flexible and transformative new approach to how
IDA will mobilize and manage its finances going forward. Deepening its access to debt
introduced in IDA17 in the form of Concessional Partner Loans (CPLs), IDA is introducing
arguably the most noteworthy innovation in its financial model since its creation: to dramatically
increase replenishment resources and the value of partner contributions by leveraging its equity
through access to capital markets. This will allow significant expansion of IDA’s financial capacity
to match and support the ambition of the 2030 Agenda, building on the strength of development
partners’ support. This paradigm shift will allow every dollar of IDA18 partner contributions to
mobilize three dollars in IDA commitment authority, up from a ratio of 1:2 in IDA17 (Figure 1).
It will ensure the most efficient use of IDA equity and partner contributions, targeting
concessionality where most needed. The paradigm shift is also designed in a way that is
sustainable, enabling further adaptation in future replenishments. The transformational policy
package and financial proposals for IDA18 will permit IDA to move forward with a
comprehensive approach that will evolve and adapt as lessons emerge and as IDA fully
understands the opportunities presented by the new model. In September 2016, two rating agencies
announced a Triple-A credit rating for IDA – the first ever public ratings in the history of IDA,
emphasizing the strength of IDA’s unique business model, Partners’ support, and its balance sheet
as key elements of their assessment, and a strong foundation to leverage IDA finances through
access to capital markets.

-3-

Figure 1. Increased Efficiency in Use of Partner Contributions

80

US$ Billions

75
60

x2

52

x3

40

20

26

23

IDA17
Partner grant contributions (Excl. MDRI)

IDA18
Total Replenishment

7.
The IDA replenishment negotiations have been central to IDA’s relevance and
institutional learning over time. They provide a context for substantive dialogue on development
priorities, emerging themes and results, and the introduction of a range of thematic, policy and
financial innovations. Representatives of IDA’s contributing partners, known as “the IDA
Deputies,” and representatives of borrower countries (“Borrower Representatives”), collectively
referred to in this report as the “Participants,” negotiated IDA18 over a series of four meetings
held in 2016. The IDA18 process was enhanced from prior replenishments by increasing the
Borrower Representatives from 9 to 14 and introducing an independent co-chair. As per the
governance arrangements agreed for IDA18, the first two meetings were co-chaired by Ms.
Sri Mulyani Indrawati, Chief Operating Officer and Managing Director of the World Bank and
Ms. Dédé Ekoué, International Expert in Development and former Minister of Planning and
Development of Togo and the latter two meetings were co-chaired by Kyle Peters, Interim Chief
Operating Officer and Managing Director and Senior Vice President Operations of the World Bank
and Ms. Ekoué. The meetings benefited from the presence of observers from other Multilateral
Development Institutions.
8.
To ensure transparency and open exchange of ideas related to the replenishment
process, policy papers discussed at the IDA18 Replenishment meetings and meeting
summaries were made available to the public (Annex 10).14 In addition, Participants sought
public comments on the draft IDA Deputies’ Report, resulting in submissions from nine
14

This excludes documents on the IDA18 Financing Framework as IDA’s Access to Information Policy excludes disclosure of
papers that contain confidential financial projections.

-4-

organizations/individuals. The IDA Forum15 provides a venue for exchanging views on IDA’s role
and complements regular engagement with civil society organizations (CSOs) by the Bank staff
on IDA. Progress on the implementation of the IDA18 Replenishment arrangements will be
reviewed by the IDA Deputies and Borrower Representatives at the Mid-Term Review (MTR),
which would take place in the second quarter of FY19. Deliverables for the MTR are specified in
Tables 1 and 2 of Annex 1.
9.
Organization of the Report. This report contains the Participants’ guidance on the policy
and financial framework that underpins IDA’s enhanced value proposition towards transformative
development in IDA18. The report comprises six sections. Section I discusses IDA’s role in a
changing global environment and IDA’s comparative advantage in supporting countries to work
towards growth, resilience and opportunities, including in the context of the WBG’s “Forward
Look” exercise. Section II focuses on the overarching theme of “Towards 2030: Investing in
Growth, Resilience and Opportunity” and how this aligns with the SDGs. Section III discusses the
five Special Themes of IDA18. Section IV provides the components of the IDA18 Operational and
Financial Framework, with subsections on enhancing the volumes and terms of IDA assistance,
transforming the management of IDA’s financial resources, and financing debt relief and arrears
clearance. Section V discusses how IDA will ensure implementation of the significant scale up for
IDA18. Finally, Section VI sets forth the Participants’ request to the Executive Directors to
recommend to the Board of Governors the adoption of the draft IDA18 Resolution (Annex 11).

SECTION I:
A.

IDA’S ROLE IN A CHANGING GLOBAL ENVIRONMENT
KEY TRENDS IN THE GLOBAL ECONOMY AND AID LANDSCAPE

10.
Developing countries have made significant progress in the past decade, but gains
across and within countries have been uneven. Strong growth in developing countries in the
past decade has increased the economic might of the developing world – it now contributes close
to half the world’s Gross Domestic Product (GDP). This has also translated into major gains in
poverty alleviation in the last decade – the global rate of extreme poverty in IDA countries has
nearly halved since 1990 even as positive developments have taken place in promoting shared
prosperity. Yet, these achievements have not been uniform. Extreme poverty is increasingly
concentrated in challenging environments and a large number of those who escaped extreme
poverty still live on the margin and are vulnerable to relapse. Financing flows have become more
diverse but there are significant changes in their composition. Moreover, concerns emerged
relating to sustainability, selectivity and coordination among the sources of financing while the
debt outlook in a number of IDA countries remains somber.16
11.
Economic headwinds last year have made the growth outlook uncertain. Global
growth decelerated in 2015, with a slowdown across IDA countries from 5.9 percent in 2014 to
15

16

The IDA Forum brings together Bank staff, IDA Deputies, and leaders from civil society, foundations, think tanks, faith-based
organizations and borrower countries to exchange views on IDA’s role in implementing the SDGs, scaling up resources in
fragile situations, and the role of partnerships. It is held during the WBG Spring and Annual meetings.
See Public Debt Vulnerabilities in Low-Income Countries: The Evolving Landscape. World Bank/International Monetary
Fund, December 2015.

-5-

5.0 percent in 2015. This mainly reflects sharp declines in commodity prices, weaker capital flows
and subdued global trade. In an unprecedented development since the 1980s, many of the largest
emerging economies in each region have been slowing simultaneously for three consecutive years.
While near-term forecasts indicate a modest pickup in aggregate growth, it is subject to significant
downside risks.17 In an environment where the room for policy makers in IDA countries to respond
has narrowed, the risk of reversal of hard-won achievements in poverty reduction is significant. In
IDA countries, the approximately 50 percent of extreme poor and near poor live in countries where
growth slowed in 2015. This is compounded by more frequent and severe adverse events – climaterelated disasters, pandemics, conflict and violence – to which IDA countries, especially the poorest
and small islands, are most exposed.
12.
The number of extreme poor remains significant despite the major reduction over the
last two decades. Globally, the number of extreme poor decreased from 37 percent of the world
population in 1990 to 10 percent in 2015.18 Over the same period, the extreme poverty rate in IDA
countries fell from 55 percent to about 30 percent. This significant achievement in poverty
reduction at the global level was led by progress in a small number of countries (mainly China and
India). However, about 766 million people are still living in extreme poverty, of which about 454
million live in IDA countries (close to the entire population of North America).19 Regionally, the
extreme poor are located mainly in sub-Saharan-Africa and South Asia. Figure 2 shows poverty
headcount trends for the world and how IDA countries, particularly IDA FCS, lag significantly.
Figure 2. Poverty Trends 1981-2015

17
18
19

See Global Economic Prospects, World Bank (2016) and World Economic Outlook Update, IMF (2016).
See Ending Extreme Poverty and Sharing Prosperity: Progress and Policies. Policy Research Note, World Bank (2015).
Defined as the number of people with a daily consumption/income below US$1.90 in 2011 Purchasing Power Parity terms.

-6-

13.
The poverty scenario in FCS is particularly challenging. IDA countries are home to 70
percent of the world’s extreme poor. Of these, the majority lives in FCS and/or resource-rich
countries where demographic dynamics and weak links between the natural resource sector and
the rest of the economy have resulted in a slower pace of poverty reduction compared to other IDA
countries. 20 Notably, the number of extreme poor in IDA FCS has increased over time,
representing more than half the population of this group of countries. Furthermore, more than 50
percent of the population in IDA countries lives on less than US$6 a day and are considered at
high or moderate risk of relapsing into poverty. Meanwhile, the FCS account for around 20 percent
of the world’s extreme poor – a figure that is expected to double by 2030.21 Finally, inequality in
about half of IDA countries has increased over time.
14.
The agenda to end extreme poverty is complicated by additional factors such as
climate change, FCV and demographic pressures. Climate change and FCV, if unchecked,
could push more people into extreme poverty. Climate change related shocks on poverty reduction
alone could result in more than 100 million additional people living in poverty by 2030. 22
Additionally, a major episode of violence could wipe out an entire generation of economic progress
and poverty reduction, and lead to mass displacements. 23 , 24 Furthermore, the situation is
aggravated by demographic pressures with an estimated 600 million new entrants into the labor
market over the next decade in IDA countries. Gender disparities remain stubborn, including high
adult lifetime risks of maternal mortality in sub-Saharan Africa, large inequalities in IDA countries
in paid and unpaid work, disproportionate lack of access to assets such as housing and deprivations
of voice and agency. In addition, there is an especially high incidence of gender-based violence
(GBV) in FCS. Compounding these longer-term challenges are the global economic headwinds
that threaten to reverse years of progress on poverty reduction. For instance, in pursuing climate
resilience, concessional finance can precipitate partnerships and collaborations for low-carbon
development by leveraging the private sector and resources from the Green Climate Fund.
15.
Even as the financial needs of IDA countries remain substantial, they have received
only a small portion of the total financial flows to developing countries in the past decade.25
A more differentiated and complex financing architecture has emerged among developing
countries, with significant opportunities and major challenges, including the ability of countries to
manage and combine different flows. The poorest IDA countries (i.e., IDA-only non-gap
countries) rely mainly on external official financing – mostly provided in the form of grants and
concessional loans. For IDA gap26 and IDA/IBRD blend countries, remittances constitute a key
source of external financing. While private financing to these countries represents a larger share
of their external flows than for IDA-only non-gap countries, external official financing still
20

21
22
23
24
25
26

In FY16, FCS represent 38 percent of IDA countries. Resource-rich countries represent about 1/3 of IDA countries. Together,
these two categories represent close to 60 percent of IDA countries.
See World Bank (2011) World Development Report 2011: Conflict, Security, and Development.
See Shock Waves: Managing the Impacts of Climate Change on Poverty. Washington, D.C.: World Bank Group (2016).
See World Bank (2011) World Development Report 2011: Conflict, Security and Development.
See Office of the United Nations High Commissioner for Refugees, http://www.unhcr.org.
See Setting the Agenda for IDA18: Strategic Directions (March 2016).
Gap countries are IDA-eligible countries with per capita incomes above IDA’s operational cutoff for more than two
consecutive years and, at the same time, these countries have not yet been assessed as creditworthy for IBRD lending.

-7-

represents about 15 percent of external flows to gap and blend countries. On the other hand, while
non-IDA countries benefit from a sizeable share of official financing, they have become primarily
reliant on private flows. Non-IDA countries have also received a growing share of concessional
flows,27, 28 even as private financing has mostly bypassed the vast majority of IDA countries.29
After peaking at about 80 percent in 2006, the share of official concessional financing to IDA
countries has declined to less than 70 percent in 2014. This decrease is broadly explained by the
recent shift in official grant financing towards non-IDA countries.30
16.
Several IDA countries have accessed international capital markets to meet their
financing needs which exposes them to debt vulnerabilities should global conditions shift.
The use of international capital markets by some countries – particularly the so-called “frontier”
markets – has increased in recent years.31 Evidence suggests that this increased access was driven
by global factors (heightened appetite for yields in an environment of easy liquidity conditions) as
well as country-level factors (development progress and improved perception of political and
economic stability). With the notable exception of small states, the debt buildup in IDA countries
has remained manageable for most countries. Yet, a greater reliance on market financing will
increase and change the nature of risks faced by these countries – in particular a greater rollover
risk. In 2016, only a few lower income countries have issued bonds in the international market –
largely owing due to weak investor demand. And with a subdued growth outlook and heightened
political uncertainty in many parts of both the developed and developing world, bond financing
may not be available to low-income countries (LICs) on favorable terms for some time. In this
context, prudent fiscal and financing decisions will be critical for preserving public debt
sustainability.
17.
Development finance will need to be used strategically to unlock, leverage, and
catalyze private flows and domestic resources. Concessional financing will remain a key source
of external public financing in most IDA countries. Scarce concessional financing should be
increased, and then be used as efficiently and effectively as possible – focusing on the poorest
countries and those with limited access to alternative sources of financing. Compounding the issue
of weak financial flows to LICs is that global financial market uncertainty has significantly
reduced investment into developing economies. These developments reinforce the need for
targeting concessional financing to crowd in other financing sources, public and private, external
and domestic.

27

28

29

30

31

Concessional financing as per the current Organisation for Economic Co-operation and Development (OECD) definition (i.e.,
loans with an original grant element of 25 percent or more based on a 10 percent discount rate).
The survey of aid donor countries’ spending plans indicates that, after several years of declines, country-level aid to the poorest
countries should recover over the next few years. See OECD, “2015 Global Aid Prospects and Projections”.
Out of the 48 IDA-only non-gap countries, the top 5 countries account for 54 percent of the net foreign direct investment
inflows and close to one-third of other private flows.
Between 2011 and 2014, official grant flows to developing countries remained largely stable, but the share to non-IDA
countries increased from 26 to 36 percent.
For a definition of “frontier” countries see World Bank and IMF (2015). Fourteen IDA countries are in this group: Bangladesh,
Bolivia, Côte d’Ivoire, Ghana, Kenya, Mongolia, Mozambique, Nigeria, Papua New Guinea, Senegal, Tanzania, Uganda,
Vietnam, and Zambia. External borrowing by these countries in the form of sovereign bonds and commercial loans has
amounted to US$34 billion during the period 2010-14, with a shift in recent years from commercial loans to bond issuances.

-8-

18.
With just 14 years to achieve the SDGs, every year counts. The ambitious development
agenda requires a strong policy and financial package to undertake catalytic investments that can
steadily elevate the development trajectory to deliver results by 2030. The implementation plan
must be able to deal with challenges associated with: (i) demographic and growth transitions, such
as the shrinking of working-age population and slower productivity gains; (ii) a renewed
globalization, with increasingly globalized and coordinated economic, political and social actions;
(iii) rapid urbanization, with increased demand for and stress on services; and (iv) pressures on the
world’s resources, including through climate change. Shocks and disruptions, such as financial
and humanitarian crises, pandemics, natural disasters, and social instability, have increased in
frequency as well as in range and speed of propagation. In some cases (e.g., fragility), problems
have gone from being acute to chronic. IDA’s effectiveness will depend on its capacity to adapt to
these challenges. Efforts in that direction will be both informed by and aligned with the WBG’s
“Forward Look” exercise.
B.

ALIGNING THE WORLD BANK GROUP’S ROLE WITHIN THE 2030 AGENDA:
THE “FORWARD LOOK”

19.
At the WBG’s 2016 Annual Meetings, the Board of Governors welcomed “The Report
to Governors on the Forward Look: A Vision for the World Bank Group in 2030.”32 IDA will
work closely with IBRD, IFC and MIGA to implement investments needed to reach the twin goals
of eradicating extreme poverty and promoting shared prosperity. Moreover, it will deploy
resources strategically to meet global and client needs, targeted to areas needing most funding,
with a tailored value proposition to the full range of clients.33
20.
Over the next 15 years, the world will face increasingly complex global challenges
requiring innovative solutions. In addition to long term trends in demography, urbanization, and
globalization, the world faces heightened volatility, crises and shocks. As noted above, global
challenges like climate change, pandemics, forced displacements, and economic downturns
increasingly impact all countries, developing and developed alike, in a way never seen before.
Accordingly there is urgency in addressing global public goods and the challenges of global threats
that cross boundaries and regions in an interconnected world. Achieving the SDGs and meeting
global commitments like COP21 will require expanded global cooperation; and meeting the WBG
Goals will require more intensive effort by the WBG including collaboration with partners, both
public and private. As laid out in this report, an ambitious IDA18 Replenishment can help IDA
clients better meet these challenges and goals.
21.
To respond effectively to the growing global challenges, the WBG plans to further
improve its business model to reach an appropriate balance between individual country
assistance, which remains at the core of the WBG approach, and addressing the global public
goods agenda. Since 2012, the WBG has introduced a well-articulated corporate strategy
characterized by its twin goals to eradicate extreme poverty and promote shared prosperity with a
focus on economic, environmental and social sustainability. It carried out internal reforms in 2014
designed to assure a balanced approach to global and national development priorities through the
32

33

See "Forward Look: a Vision for the World Bank Group in 2030 Main Messages", DC2016-0009 and “Forward Look: A
Vision for the World Bank Group in 2030," DC2016-0008, both dated September 20, 2016.
See 2016 Development Committee Communique, October 8, 2016.

-9-

creation of its Global Practices (GPs) and a new country engagement framework, intended to
improve the WBG’s ability to deliver integrated solutions to public and private clients by
leveraging the combined capabilities of the WBG. The “Forward Look” exercise intends to carry
this process forward by strengthening the focus on WBG transformational solutions for each client,
stepped up financial innovation, reinforcing WBG’s financial foundations and deepening internal
reforms to make the WBG faster, more agile and effective.
22.
Participants welcomed the proposal to better position the WBG in the context of the
2030 Agenda. They felt that the need to deliver on the key aspects of global agenda by 2030 is
greatest in the IDA countries where special attention is called for. Within the new framework, they
encouraged the Bank to take a more comprehensive approach in advancing development which
would involve greater emphasis on IDA and areas of the world that most need funding and have
least access to capital. Participants also encouraged the World Bank to ensure that its sister
institutions work in tandem while providing support to IDA countries that are moving to IBRD,
including a greater emphasis on graduation readiness.
C.

WBG’S COMPARATIVE ADVANTAGE TO SUPPORT IDA COUNTRIES

23. The WBG has a unique ability to help the world address complex problems at the
global, regional and country level, and to do so at a meaningful scale. This capacity is rooted
in a number of important and inter-connected attributes:


Country presence: With offices in over 100 countries, and long-term relationships in many
more, the WBG’s global presence helps to customize global knowledge to local conditions
and facilitate knowledge sharing among countries and across regions.



Multi-sectoral expertise: The WBG’s new structure has strengthened its ability to bring its
global knowledge more effectively and efficiently to its country engagements, including
South-South learning. Its ability to integrate its multi-sector expertise provides an
important platform for setting the global agenda and working with partners to tackle both
country and global challenges. Also, the synergies of the WBG bring together tools and
partnerships of both the public and private sectors to find development solutions in a way
that few other organizations can match.



Efficiency: As part of the WBG’s ongoing efforts to do more with less, the Expenditure
Review and Strategic Planning and Budgetary Process is on track to achieve savings of
US$400 million by the end of FY18, having identified the specific measures needed to
achieve this target. In addition, the WBG’s new country engagement model strengthens the
line of sight from WBG interventions to the WBG twin goals of reducing poverty and
boosting shared prosperity in a sustainable manner. It also helps the WBG work with other
development partners to maximize the effectiveness of ODA resources and enhance
coherence across institutions.

24. IDA is an essential part of the strategic value of the WBG. IDA will intensify, build on
and adapt the WBG’s comparative advantage, maximizing the synergies between different parts
of the Bank Group for the benefit of its clients. This will require helping IDA countries achieve
development goals despite high poverty, fragility, capacity constraints, and vulnerability. The
WBG’s new country engagement model is comprised of the Systematic Country Diagnostic

- 10 -

(SCD), Country Partnership Framework (CPF) and Performance and Learning Reviews, and the
Completion and Learning Reviews. At the sector level, IDA will deliver customized solutions to
clients, by using knowledge more effectively to achieve results and more informed risk-taking. At
the institution level, IDA will focus on optimizing synergies and developing joint approaches with
IFC, MIGA and IBRD to leverage the strengths of each agency for transformative impact,
including special focus on FCS, private sector through the setting up of a Private Sector Window
(PSW), Public-Private Partnerships (PPP) and guarantees. IDA will also enhance and scale-up
partnerships, notably with the United Nations (UN) and Multilateral Development Banks (MDBs),
while crowding in public and private resources, expertise and ideas.
IDA’s Value for Money
25. IDA’s value proposition fully aligns with that of the WBG and is focused on addressing
complex development challenges by delivering solutions tailored to each of its clients; providing
financial resources in the most effective operational instruments; and capitalizing on unparalleled
knowledge assets of country experience, global leadership, and convening activities. The WBG
strives to strike the best balance among economy, efficiency, and effectiveness to achieve the
desired sustainable outcomes, and is committed to maximize development effectiveness of its
operations, without compromising their quality.
26. At a time of limited resources, IDA is a sound investment, with a track record of
achieving results, and increasingly leveraging others to help deliver them. Results are at the
core of IDA’s business model and are an area of continued management attention to ensure that
the results culture is mainstreamed throughout IDA’s work. Results are also at the core of
communicating IDA’s value, demonstrating how IDA works with countries to make a difference
on the ground. And increasingly, IDA is leveraging other players and resources to help deliver
development results (see also Section II D below on IDA Results Measurement).
27. IDA’s clients benefit from high environmental and social standards, strong
accountability and oversight, and the high fiduciary standards of the WBG. These standards
include the New Procurement Framework which became effective on July 1, 2016, under which
the WBG committed to support borrowers to achieve value for money with integrity in sustainable
procurement. In particular, the New Procurement Framework requires procurement processes to
be tailored to the specific operating environments, project needs and existing risks, thus allowing
the World Bank to provide customized, hands-on implementation support; promote further
partnerships with UN agencies and other MDBs; and put in place risk-based supervision
arrangements. The new Environmental and Social Framework (ESF), which reflects the most
extensive consultations ever conducted by the WBG, is another critical component of the WBG’s
value proposition. The ESF will go into effect in early 2018 and will contribute to achieving lasting
development impact in IDA countries. It includes an adaptive risk management approach that will
allow the World Bank to focus resources more effectively in order to maximize development
impact, in line with the Environmental and Social Standards contained in the ESF that are designed
to identify, avoid, and mitigate environmental and social risks in IDA-financed projects.
28. The organizational and operational reforms during IDA17 aimed at improving
WBG’s effectiveness and efficiency. These reforms include: (i) organizing teams according to
GPs and Cross-cutting Solutions Areas (CCSAs) (as noted above, many of these teams overlap

- 11 -

with the IDA18 Special Themes); (ii) introducing the new WBG country engagement model; (iii)
strengthening links among IDA, IBRD, IFC, and MIGA as One WBG, with a unified vision,
strategy and joint actions; (iv) strengthening knowledge management across the institution; (v)
strengthening safeguards; and (vi) reinforcing operational efficiency (via simplified portfolio
monitoring and reporting through new Standard Reports and Dashboard, improved operations
portal for simpler and faster project preparation and reporting, procurement reforms to reduce
processing times, simplified risk rating tools and streamlined documentation of investment
projects); (vii) strengthening the management of Advisory Services and Analytics (ASA); (viii)
Core Sector Indicator reform; improvements to implementation completion reporting; and (ix)
integration of trust funds in the operations management portal. During IDA17, IDA initiated pilots
in three GPs to explore methodologies for measuring unit costs. From those efforts, the GPs gained
many insights into those methodologies, including the challenges of making them comparable
across country contexts. To share those insights, HNP and OPCS will coordinate a workshop
during the next Spring Meetings on lessons learned in the health sector unit cost pilot and
challenges moving forward. These reforms and initiatives have been accompanied by an
expenditure review aimed at reducing expenditures by US$400 million (about 8 percent in nominal
terms of the baseline) for the WBG by the end of FY17.
29. As the WBG’s fund for the poorest, IDA is widely recognized as an effective source of
development finance and expertise. External assessments see IDA as one of the international
community’s top performing donors, citing high confidence that funding will deliver results,
policy influence, more predictable flows, low administrative costs and value for money. For
example, the 2016 Aid Transparency Index placed IDA in the highest category for the second
consecutive year and rated it as the highest performing MDB. A 2014 assessment by the Center
for Global Development and the Brookings Institution named IDA as one of the international
community’s top performing donors. And finally, in a 2015 AidData survey of policy makers from
126 countries, the World Bank was ranked first out of 56 donors on agenda-setting influence in
developing countries.34
30. IDA18’s transformational financing model further enhances IDA’s value for money to
both IDA partners and clients. IDA market leverage will enable IDA to provide the poorest
countries with billions of additional resources to achieve the SDGs. At the same time, the impact
of partner contributions will dramatically increase, generating three dollars in additional
commitments for clients from every on dollar from partners, up from 2:1 in IDA17. IDA18 will
provide further catalytic impact through the IFC-MIGA PSW, which will seek to mobilize private
investments that generate positive externalities and create markets in the most challenging markets,
particularly those in fragile situations.
31. The WBG is fully committed to reaching the most vulnerable people. However, it
recognizes that reaching the extremely poor and the populations in FCS states will require greater
attention to the connection between risk and Value for Money to minimize the temptation to focus
on the outcomes that are easiest to achieve. The WBG remains actively engaged in refining the
indicators used in its results measurement framework and is coordinating with other MDBs to
reflect key value for money principles.
34

For further information on these independent reviews, see “Setting the Agenda for IDA18: Strategic Directions,” March 1,
2016.

- 12 -

32. The WBG’s operational framework strives for sustainable outcomes, and is committed
to maximizing the development effectiveness of its assistance. Its approach to achieve value for
money incorporates a multipronged decision-making and accountability framework that centers
around (i) allocating resources to priorities informed by demand and evidence; (ii) maximizing
program effectiveness through a focus on results; (iii) applying new risk management techniques
at the organizational, country, and project levels; and (iv) simplifying the Bank’s institutional
processes and introducing new tools and approaches to project design and implementation. The
Agile Pilots Initiative targeting selected projects in Africa, Europe and Central Asia, and South
Asia demonstrates these principles of flexibility and responsiveness (adaptive programming). This
effort, building upon the simplification agenda goes further to address some of the core behavior
and incentive issues, as part of the WBG’s ongoing effort to signal greater institutional
responsiveness, flexibility and efficiency. Innovations introduced under this initiative allow,
among other things: (i) creating one simple track for the processing of operations; (ii) setting
umbrella assessments for safeguards, fiduciary and legal arrangement; and (iii) offering flexibility
in committing project funding in tranches.
33.
Concurrently there are several other Bank-wide reform initiatives underway which
will further enhance IDA’s Value for Money by amplifying operational learning feedback
loops: (i) restructuring the project Implementation Completion and Results Report (ICR) to make
this critical operational evaluation process simpler, with a stronger focus on results and learning;
(ii) improving the quality of project Results Framework and Monitoring and Evaluation (M&E)
design; (iii) professionalization of M&E specialists, strengthening M&E skills, M&E tools and
guidance for operational staff; and (iv) more systematic use learning generated from of Impact
Evaluations to guide operational design and implementation. Work is already underway to review
the efficacy of SCD and CPF processes. The SCD guidance is being revised based on experiences
to date and will soon be issued. Participants encouraged Management to use the insights from the
ongoing SCD/CPF process evaluation by Independent Evaluation Group (IEG) as well as its own
internal stocktaking of the new country engagement model to inform future improvements and
guidelines. Further, IDA is currently implementing a comprehensive Action Plan focused on the
institutional approach to learning, informed by the findings of the IEG report on Learning and
Results.
IDA Country-level Engagement
34. IDA’s country-based unearmarked model, results culture, and multi-sector approach
position it ideally to deliver on the SDGs. IDA’s country-owned model supports IDA countries’
efforts to build resilient, inclusive economies, which in turn become new markets for the global
economy. IDA’s multi-sectoral reach and long-term engagement helps IDA countries build
institutions and foster capacity to grow domestic and external resources, and ensure that resources
are well spent. In addition, IDA’s policy advice, standards, and tools help IDA countries make
sound investments that are financially, socially and environmentally sustainable. Moreover, IDA
helps improve country statistical systems which are critical for producing quality data for domestic
policy formulation, as well as monitoring and measuring results. These systems also support the
broader global need for data to measure progress towards the 2030 goals. As the WBG positions
itself for 2030, IDA will continue to:

- 13 -



Improve its ability to meet the needs of its clients, including FCS, and innovate to deliver
better country solutions, drawing on its ability to integrate across sectors;



Reinforce its leadership on global and regional issues and fulfill its potential for reducing
the impact and cost of such crises as pandemics, natural disasters, and forced displacement,
and bring new instruments to bear to mitigate or shorten protracted crises;



Expand customized knowledge services;



Renew efforts to become more efficient and flexible to address client interest as a faster
and more agile development partner;



Make the ‘billions-to-trillions’ 35 agenda a reality through significantly increasing
mobilization for clients, including from the private sector, while also maintaining global
leadership in mobilizing concessional finance and ensuring that it goes to those who need
it most;



While working across the continuum of country and subnational clients, IDA will
increasingly engage with both public and private sector clients, including through publicprivate partnerships; and



Make best use of donor resources to serve clients.

IDA Sectoral and Thematic Engagement
35. IDA’s sectoral and thematic engagements are driven by the WBG’s GPs model. While
the choice of sectors/thematic areas continues to be determined at the country level, the GPs/
CCSAs help shape the sectoral and thematic focus at the country, regional and global levels.
Supported by over 6,800 full-time WBG staff assigned to country offices, 36 Country Directors
engage directly with clients to examine country-driven priorities and to help identify constraints
to poverty reduction and shared prosperity. The three GP Groups: Equitable Growth, Finance and
Institutions (EFI), Sustainable Development (SD) and Human Development (HD) help IDA
countries implement these reforms by drawing upon their extensive global experience to support
timely analytic work, technical assistance (TA), south-south exchanges, and portfolio
management. The GPs are reinforced by the intellectual leadership provided by the CCSAs, which
are very closely linked to IDA18 Special Themes.
36. Equitable Growth, Finance and Institutions. EFI will support IDA countries as they make
the adjustments needed to sustain sound macroeconomic foundations and protect recent gains in
poverty reduction and equity. Strengthening productivity and public sector efficiency is also
critical. Demand for EFI’s services is strong, on both near-term issues and long-term transitions.
EFI will deliver solutions through a cross-practice approach to provide tangible, positive results.
EFI’s five strategic priorities are: (i) equity and inclusion; (ii) public sector efficiency; (iii)
sustainable macroeconomic foundations; (iv) productivity; and (v) financial stability and
deepening.

35

See “From Billions to Trillions: Transforming Development Finance”, World Bank, March 2015.

36

Data as of April 30, 2016.

- 14 -

37.
Human Development is central to the achievement of WBG’s twin goals and in the
achievement of the SDGs. Relying on strong analytics and focus on results, the HD Practice
Group will assist IDA countries to create equal opportunities for people to live healthy, prosperous,
and longer lives; secure productive and inclusive jobs; and be resilient in the face of crises. HD
will support IDA countries in eradicating poverty by helping them make growth more inclusive,
invest in strengthened service delivery systems, and build resilience.
38.
Sustainable Development. The lack of quality infrastructure in IDA countries affects
growth, equity and sustainability. Globally, 1.1 billion people live without access to electricity, 2.6
billion lack basic access to sanitation and 900 million people do not have safe, clean drinking
water. The SD Practice Group will help IDA countries account for and manage their natural,
physical and social capital to deliver green, inclusive and resilient growth. The GPs of the SD
Group will also provide support to IDA countries to implement their (I)NDCs under COP21.
IDA’s Engagements at the Regional Level
39. The strategies of the each of the Bank’s six Operational Regions, supported by the
expertise of the GPs and the CCSAs, set out IDA’s comparative advantage and define areas
of focus. IDA’s Operational Regions have identified priority activities for the IDA18 period. The
combination of heightened development ambitions and the significant challenges facing IDA
countries has led each region to express their largest ever demand for IDA resources – nearly
double their allocations of IDA17 core resources. Regions have developed sound strategies to put
IDA resources to effective use, building on strong foundations already in place. In addition, IDA’s
cross-cutting Special Themes are increasingly integrated into each region’s analytic work and
dialogue with its clients. Each region is also drawing upon the synergies of all arms of the WBG
to achieve their development objectives, as well as other partners such as the International
Monetary Fund (IMF), the UN, and many others.

SECTION II:

TOWARDS 2030: INVESTING IN GROWTH, RESILIENCE AND
OPPORTUNITY IN IDA18

40. Recognizing the significantly higher ambitions agreed in 2015, Participants called for
similarly high ambitions for IDA18. The AAAA on Financing for Development recognized that
achieving the SDGs would require “an equally ambitious, comprehensive, holistic and
transformative approach with respect to the means of implementation.” Participants agreed on the
importance of contributing to the implementation of the ambitious 2015 goals and that IDA was
uniquely placed to serve as an implementation agent.
41. Responding to evolving global ambition and challenges, Participants selected
“Towards 2030: Investing in Growth, Resilience and Opportunity” as the overarching theme
for the IDA18 Replenishment. This theme underscores both the urgency and the need for a
comprehensive approach to mitigate the adverse impacts of climate change and fragility on
development and encourages actions to foster growth, equality and better governance so that
poverty can be reduced and prosperity shared by all. Participants called for a strong policy and
financial package to undertake catalytic investments that can shift the development trajectory to
deliver results by 2030. IDA will deploy the WBG’s new country engagement model, its

- 15 -

convening power, global partnerships, and a new approach to mobilize resources to help IDA
countries make a strong start towards the SDGs in IDA18. It will use the full range of instruments,
expertise and results focus, to deliver solutions that are tested and tailored to the needs of its client
countries.
Figure 3. Towards 2030: Investing in Growth, Resilience and Opportunity

A.

LINKAGES TO SDGS

42. Participants underscored the importance of ensuring that IDA is well positioned to
support the poorest countries achieve the SDGs. Participants noted the direct linkages between
SDGs and IDA18’s overarching and special themes (Figure 3). The selection of five Special
Themes in IDA18 involves continuity and innovation. The Special Themes support growth,
resilience and opportunity and are fully aligned with the SDGs. The 2030 Agenda emphasizes that
the agreed development goals are not a menu of independent objectives. Instead, the framing of
the SDGs emphasizes the interconnections between development goals and the need to pursue
their implementation in an integrated manner. Through its global breadth, country depth, analytical
capacity, financial strength and collaboration with IBRD, IFC and MIGA, IDA is uniquely placed
to respond to this call. IDA’s holistic approach to development and synergies among IDA18

- 16 -

Special Themes will ensure that efforts under one special theme are leveraged for advances in
others and support the SDGs.
B.

IDA’S GLOBAL AND REGIONAL PARTNERSHIPS

43. IDA is considered the definitive expression of partnership for achieving development
results. At the client level, IDA fosters deep and ongoing partnerships in country – with various
line ministries, local think tanks, private sector and civil society – to foster capacity development
and alignment of priorities. With other donors, IDA maintains similar ongoing collaboration
through multiple access points and at various levels – embassies and aid agencies in the field,
bilateral discussions in a myriad of venues, consultations at the multilateral level, etc. – to ensure
that coordination supports effective and efficient delivery of results. IDA’s partnerships with a
multitude of the UN agencies, the IMF and other MDBs, a myriad of dedicated vertical funds, and
hundreds of CSOs – including advocacy and operational CSOs, private foundations, faith-based
organizations, and think tanks – are absolutely critical to maximize impact for IDA’s clients and
mobilize domestic, private and development partner resources (Figure 4).
Figure 4. IDA Partnerships

44. IDA plays a critical role as an integrator across the international system, bringing
global partnerships with other organizations and countries at all levels of development to its

- 17 -

work in the poorest countries. As evidence of its central convening role, the WBG serves as
Secretariat for many key global financial and knowledge partnerships, including the Global
Environment Facility, the Global Infrastructure Connectivity Alliance, the Global Infrastructure
Facility, the Global Partnership for Education, the CGIAR, and the Consultative Group to Assist
the Poor. Participants noted IDA’s collaboration with development partners and encouraged it to
further strengthen and deepen partnerships, including with the regional MDBs, the UN, other
regional institutions, private sector and with national and local partners.
45. IDA has cooperated with the African Development Fund (ADF) and Asian
Development Bank over the years on many matters of common concern by collaborating on
loans, technical assistance (TA), policy advice, as well as knowledge generation and various
international initiatives. Participants asked that the ADF and IDA deepen this cooperation in
ways that serve the interest of their common clients and shareholders since the two institutions
account for such a significant portion of Africa’s development assistance. 37 In particular, they
noted the commitment made by the Presidents of both institutions to scale up collaboration in the
energy and agricultural sectors, as well as undertakings related to policy dialogue and global.
46. IDA will strengthen its collaboration with other development partners so that progress
is made towards global objectives relating to the SDGs, the AAAA, COP21 and the Sendai
framework. In IDA17, IDA worked closely with partners in supporting countries to integrate and
mainstream global and regional public goods into national development strategies in many areas,
including fragility, climate change, addressing communicable diseases, gender equality, labor
standards, trade systems and disaster risks. Furthermore, extensive collaboration is undertaken
with the UN, for example, with World Health Organization (WHO), the UN Children’s Fund
(UNICEF), the UN Population Fund (UNFPA) on health-related issues. The World Bank also
collaborates with the International Labor Organization (ILO) on the creation of inclusive jobs and
ensuring improved quality of jobs. Going forward, IDA’s collaboration with partners will be
informed by a wide range of activities across regions and sectors, such as: (i) IDA’s enhanced
collaboration with UN agencies and MDBs to strengthen humanitarian-development coherence,
tackle forced displacement, and mitigate FCV risks (Box 1); (ii) jointly reporting climate finance
with other MDBs and international development finance agencies, which promotes greater
harmonization and exchange of information; (iii) the PPP Knowledge Lab, where MDBs and
others come together to pool the knowledge and experience of industry leaders in PPP; (iv) the
Global Infrastructure Facility, a global platform that facilitates the preparation and structuring of
complex infrastructure PPPs, to help mobilize private capital; and (v) the Global Infrastructure
Forum, a collaborative effort with MDBs and development partners to enhance multilateral
collaborative mechanisms to improve infrastructure delivery globally.

37

Background Note on ADF and IDA Collaboration, March 2016.

- 18 -

Box 1. Examples of WBG Partnerships in the IDA18 Special Themes
Jobs and Economic Transformation: The WBG has engaged in a close partnership with the ILO to support a
range of country-specific and global initiatives to support the creation of inclusive and higher quality jobs, including
the highly successful Better Work program, run jointly by the ILO and IFC. In addition, working with the Clinton
Health Access Initiative and private investors in Rwanda, the IFC is supporting private sector-led strengthening of
the maize value chain and the production of nutrient rich fortified food for young children, delivering both improved
food security and higher, more stable earnings for smallholder farmers.
Gender: In 2014, the WBG and UN Women signed a memorandum of understanding (MOU) for collaboration to
support women’s empowerment in the SDGs, raise awareness of the costs of underinvesting in women, mobilize
actors to close financing gaps, help make ministries more effective in supporting gender equality results, and to
expand knowledge about good practices and lessons learned on women’s economic empowerment and poverty
reduction interventions. At the request of finance ministers, mostly in IDA countries, the WBG and UN Women
also launched a new Gender Equality Community of Practice for Finance Ministers in April 2014 to share
innovative approaches that promote women’s and girls’ opportunities, and to provide rigorous technical evidence
to ministries. The group is co-chaired by the WBG President and the Executive Director of UN Women.
Climate: The WBG will work closely with the NDC partnership launched at COP22 in Marrakesh which will help
IDA countries translate their (I)NDCs into specific policies and investment plans. This will be a critical avenue for
assistance for IDA countries to achieve long-term climate-resilient, low-emission development as NDCs become
mandatory by 2020. Participants also acknowledged the importance of certain sectors where we already have
strategic partnerships including forests, agriculture, and energy.
FCV: IDA will deepen its partnerships both at the global and country levels, with emphasis on increasing
cooperation with the MDBs and the UN. Taking into account the respective mandates of each institution, the MDBs
will form a joint secretariat to operationalize their new strategy for tackling forced displacement. IDA will deepen
its partnerships with the UN, notably in situations of protracted crisis, by rolling out a new country-level initiative
dedicated to strengthening collective outcomes across the Humanitarian-Development-Peace Nexus. A second
priority will be to further progress in improving the ‘inter-operability’ of Bank and UN policies and fiduciary
systems, to facilitate partnership with UN agencies in IDA-funded projects. Finally, the WBG will continue to play
a key role in the International Dialogue on Peace-building and State-building and work bilaterally with g7+ and
other relevant associations of clients.
Governance: The Platform for Collaboration on Tax (PCT) provides a strong example of how new global
partnerships will transform the way IDA18 is delivered. During the 2016 Spring Meetings, the World Bank, IMF,
OECD, and UN launched the Platform as a central vehicle for their enhanced cooperation, enabling the International
Organizations (IOs) to develop a common approach, deliver joint outputs, and respond to IDA countries requests
for a global dialogue on tax matters. This global partnership enables the WBG to work with IOs to respond to
IDA18’s increased emphasis on taxation, recognizing the deepened collaboration and cooperation as an essential
component of strengthening tax systems.

47. Participants highlighted the importance of partnerships for results, which is central to
promoting aid effectiveness. They highlighted the need to continue efforts to deepen and broaden
IDA’s collaboration and coordination with other development partners to improve their internal
effectiveness to managing for development results in IDA countries. In this regard, they welcomed
IDA’s roles in coordinating and representing the MDBs at the Steering Committee for the Global
Partnership for Effective Development Cooperation, as well as coordinating with the MDB
network on Managing for Development Results, which works with country-level practitioners to
improve the results focus of each country’s development agenda. Participants also welcomed
IDA’s intention to strengthen coordination with other bilateral and multilateral donors on
graduation. Finally, they noted that IDA also plays an important role in aid coordination at the

- 19 -

country and regional level and in helping shape the international effectiveness agenda to address
regional and global development challenges.
C.

BUILDING RESILIENCE AND RESPONDING TO CRISES

48. IDA is one of the principle vehicles for responding to and preparing for crises in LICs.
The Global Crisis Response Platform will provide scaled-up, systematic and better coordinated
support to address crises, including those arising from forced displacement, natural disasters and
pandemics.38 Participants agreed that IDA’s Crisis Response Window (CRW) will be an important
component of the Platform. Noting the critical role the CRW played in response to the Ebola
outbreak and many other crises in IDA17, they agreed that it has proven to be an effective, flexible
instrument to respond to crises and emergencies in a timely, transparent and predictable manner.
49. Given the threats emanating from a wide range of factors, Participants endorsed a
significant scale up for the CRW in IDA18. They underscored the importance of scaling-up
support for CRW to support IDA countries’ response and preparedness against increasingly
frequent and severe natural disasters, economic crises, and health emergencies. They also
supported the alignment of the governance arrangements for responding to economic shocks with
the two-step process in place for natural disasters and health emergencies. They recognized that
small states can be disproportionately affected by national disasters, including riding sea levels
and extreme weather events. For countries exposed to severe natural disasters leading to significant
damage and losses of over a third of GDP, Participants supported the adjustment of IDA financing
terms, if warranted, based on an updated debt sustainability analysis in the aftermath of the crisis.
50. Participants also emphasized the importance for IDA to engage directly with IDA
countries at risk to develop crisis preparedness plans and advise on appropriate instruments
to mitigate these risks. They noted that the use of Contingent Emergency Response Components
such as the Immediate Response Mechanism (IRM) continue to be an important part of the overall
risk financing strategy in IDA countries, providing immediate response to an eligible crisis or
emergency as needed in highly exposed countries. In addition, they welcomed the technical
support provided by IDA to assist countries with developing adequate crisis response management
capabilities. This can entail several complementary aspects such as designing an integrated risk
financing strategy for clients, strengthening capacity building, and providing finance. Participants
urged IDA to scale up engagements on financial protection (including adaptable safety nets and
insurance) and disaster risk management. They noted that the new instrument – the Catastrophe
Deferred Draw-Down Option (CAT-DDO) – and increased focus in recent years on climate
adaptation, would help in this regard. The criteria IDA uses to determine the countries with which
it prioritizes its engagements are: (i) countries with high exposure and vulnerability to disaster and
climate hazards at the national, sub-national and local level; (ii) potential to enable large-scale,
country-led investment programs for resilience; and (iii) opportunities to coordinate activities that
enable investments and programs supported by other development partners on the ground (Annex
7).

38

See “World Bank Group Global Crisis Response Platform,” August 24, 2016.

- 20 -

51. Furthermore, to promote countries’ resilience to disasters and expand the range of
IDA’s crisis instruments, Participants endorsed the introduction of the CAT-DDO. The CATDDO is a contingent credit line that provides immediate liquidity to countries in the aftermath of
a catastrophe39 and serves as early financing while funds from other sources such as bilateral aid
or reconstruction loans are being mobilized. CAT-DDOs will enhance IDA countries’ capacity to
plan for and manage crises. The CAT-DDO is envisaged to close the gap in IDA’s crisis
architecture – in particular through its focus on ex-ante disaster preparedness – and complement
existing crisis mechanisms such as the CRW. Participants also agreed on the eligibility criteria
similar to IBRD CAT-DDOs, which will include: (i) an appropriate macroeconomic policy
framework; and (ii) preparation for or existence of a satisfactory disaster risk management
program. IDA clients will have the option to access the CAT-DDO via their core IDA allocations
(i.e., their Performance Based Allocations (PBA)), Undisbursed Balances, and the Scale-up
Facility (SUF) (for IDA countries eligible for SUF access) (Annex 6). Regarding pricing,40 a 0.50
percent front-end fee and 0.25 percent renewal fee would be charged for the SUF option, as is the
case in IBRD. Both fees would be set at zero percent for the PBA and Undisbursed Balances
options (see Annex 8 for IDA’s CAT-DDO policy framework). Upon drawdown, IDA
concessional rates would apply if the client elects the PBA or Undisbursed Balances options, and
non-concessional (IBRD) rates would apply if it elects the SUF option.
D.

IDA’S RESULTS MEASUREMENT

52. IDA has been in the forefront among development partners in holding itself
accountable for the aid effectiveness of its operations. With the strong support of IDA’s
shareholders, the IDA Results Measurement System (RMS) has evolved into a robust
accountability and management framework and has strengthened results measurement at country,
program and project levels. It has contributed to promoting a results culture across the Bank,
including inspiring the WBG’s Corporate Scorecard (CSC). The IDA RMS and the CSC are
helping to strengthen incentives and accountability in the WBG.
53. Participants welcomed organizational and operational reforms during IDA17 aimed
at improving WBG’s effectiveness and efficiency. As noted above in paragraph 28, these
reforms include: (i) organizing teams according to GPs and CCSAs; (ii) introducing the new WBG
country engagement model; (iii) strengthening links among IDA, IBRD, IFC, and MIGA; (iv)
strengthening knowledge management across the institution; (v) strengthening safeguards; and (vi)
reinforcing operational efficiency; (vii) strengthening the management of ASA; (viii) Core Sector
Indicator reform; improvements to implementation completion reporting; and (ix) integration of
trust funds in the operations management portal. As noted earlier, these reforms have been
accompanied by an expenditure review aimed at reducing expenditures by US$400 million (about
8 percent in nominal terms of the baseline) for the WBG by the end of FY17.
54. Participants endorsed further refinements in the IDA RMS based on the following five
guiding principles:
39

40

IDA clients would be able to use the CAT-DDO to address shocks related to natural disasters and/or health-related
emergencies.
The front-end fee and renewal fee are subject to periodic review. Similar to the IBRD counterpart, there would not be a
commitment charge levied on the IDA CAT-DDO.

- 21 -



Focus on SDG indicators and targets in line with key IDA engagement areas and
comparative advantage, WBG Twin Goals, recent external and internal commitments
including COP21, the AAAA and the new WBG Gender Strategy;



Maintaining continuity while addressing key emerging issues, including those under the
IDA18 Special Themes;



To ensure data quality, reduce the number of indicators that are difficult to measure and to
use common (improved and refined) definitions and methodologies for corporate reporting
based on the recent assessment of indicators (quantifiability, measurability and marginal
effort to report on an indicator) and the Corporate Results Indicators (CRIs);41



In the interest of maintaining strategic focus of the RMS, reduce the number of indicators
to balance monitoring needs with efficiency and selectivity and avoid increasing the
reporting load and time; and



Harmonize the IDA RMS with the WBG’s CSC to the extent possible, to allow for
consistent Management oversight all across the WBG.42

55. Participants urged Management to continue strengthening data collection and
statistical capacity of IDA client countries. They supported the Strategic Action Program for
Addressing Development Data Gaps including its priority areas, i.e., (i) household surveys; (ii)
price statistics; and (iii) Civil Registration and Vital Statistics including infant and maternal
mortality data.
56. Participants agreed to adjust the period of reference for reporting aggregated results
achieved by IDA-financed operations in Tier II. Cumulative totals of outputs and results
achieved during a specific fixed period, will be added from period to period.43 This will replace
the current method, which is based on a three-year rolling approach.
57. Participants endorsed the proposed IDA18 RMS indicators that reflect the priorities
in the Special Themes, taking into account the guiding principles described above. These not
only highlight IDA’s strong focus on results for the Special Themes, but also clarify the synergies
between the Themes towards advancing the WBG strategic goals. Participants also emphasized
the importance of disaggregation by sex and FCS wherever feasible when reporting on these
indicators. They noted that the changes resulted in 84 indicators (excluding disaggregation by sex
or for FCS). Changes in indicators are summarized and presented in Annex 1.
58. Participants welcomed the inclusion of performance standards and targets for Tier II
and III indicators. The figures for Tier II indicators tracking IDA-supported projects reflect
projections based on the latest performance shown in IDA17 RMS as well as ongoing/pipeline
IDA portfolio. An ambitious replenishment and the scaling up of the IDA development agenda for
the IDA18 period are expected to significant increase IDA results. However, Participants noted
41

42

43

Previously, the Core Sector Indicators aimed at designating a limited number of indicators for aggregated monitoring and
reporting achievements across WBG activities and countries.
This included adopting the same number of tiers (three tiers instead of four) and adjusting indicator details such as names,
definitions, and units of measure.
The proposed approach would also be applied and implemented for Tier II indicators of the WBG Scorecard.

- 22 -

that concrete results stemming from the ambitious IDA18 package will take time to be realized in
client countries and thus will not fully materialize during the IDA18 cycle, considering the time
lag between the approval of IDA18 projects and their actual implementation and subsequent
delivery and measurement of results. Participants noted that Management will report on the status
of the RMS indicators on an annual basis at the time of Annual Meetings.

SECTION III: SPECIAL THEMES
59. The Special Themes for an IDA replenishment serve to deepen and catalyze focus and
results in critical areas across the IDA clientele. They help highlight areas that need extra
attention – these have included: a strong focus in the 1980s on social sectors; a focus on debt
sustainability in the 1990s to the present, which resulted in the approval of the Heavily Indebted
Poor Countries (HIPC) initiative, the development of the Debt Sustainability Framework and
IDA’s grant allocation framework; and the focus on results in the 2000s with IDA’s pioneering
work on results measurement, the focus on managing crisis and building resilience at the time of
the financial crisis, and the strong emphasis on gender, climate change and FCV in several recent
replenishments. While Special Themes can push the envelope in key areas, the IDA client remains
in the driver’s seat in setting country priorities in the use of its IDA resources.
60. Participants asked that the IDA18 Special Themes be kept selective, simple and
compelling. They encouraged a sense of continuity across the themes from previous
replenishments to IDA18, while emphasizing continued adaptation to evolving circumstances and
the 2030 Agenda. They agreed to continue three Special Themes: Gender and Development;
Climate Change; and FCV. They added Jobs and Economic Transformation and Governance and
Institutions as two new themes.
61. IDA18 provides an opportunity to explore and strengthen links among the Special
Themes. For example, WBG efforts to promote job creation in fragile environments are targeted
to both men and women. These fragile environments are further undermined by climate change.
Governance and Institutions are critical for all Special Themes, but especially in fragile
environments. Meanwhile, female labor force participation and prevention of GBV is important
not only in fragile environments, but also in all IDA countries to allow them to reach their full
potential. Moreover, displacement of people can be exacerbated both by fragility and conflict as
well as by climate change. Additionally, more and better jobs, made possible by a vibrant private
sector and sizeable infrastructure investments, are important for stabilizing fragile states but also
for ensuring that women participate in economic activity. Developing climate resilient growth
strategies requires special attention to gender issues as women, children and the elderly are most
affected. Given the integrated nature of the Special Themes, IDA is well positioned to respond to
this call because its holistic approach to development will ensure that efforts under one Special
Theme are leveraged for advances in others.
A.

SPECIAL THEME 1: JOBS AND ECONOMIC TRANSFORMATION

62. Participants strongly supported the selection of Jobs and Economic Transformation
as a new Special Theme for IDA18, highlighting the substantial developmental payoff that is
possible from comprehensive and effective efforts targeted at these issues. Indeed, based on

- 23 -

trends over the past decade, it is estimated that 31 million jobs will be created in IDA countries
over the IDA18 period.44 Given the strong link between labor incomes and poverty reduction, a
focus on this theme would, therefore, have a particularly strong development impact. With a large
majority of jobs in informal self-employment in IDA countries, it is unlikely that formal wage
employment will account for a majority of jobs in the near future (Figure 5). Therefore,
Participants noted that beyond expanding the quantity of jobs, IDA countries need better and more
inclusive jobs to deliver poverty reduction, female empowerment, and social cohesion, as well as
to moderate displacement and migration from fragility- and conflict-affected states and countries
facing youth bulges (Figure 6). Integrating women more effectively into labor markets, decreasing
occupational sex-segregation, and closing gender wage gaps, as well as improving working
conditions will support these transitions and contribute to rising productivity at both the micro and
aggregate levels.
Figure 5. Formality and Informality in Jobs –
Wage Versus Self-Employment Share of Jobs
(in percent)

Figure 6. Economic Transformation and Jobs –
Distribution of Employment by Sector
(in percent)

Source: Figure 5 – World Bank Jobs Data (based on ILO KILM database); Figure 6 – World Bank WDI.
Note: Figures for IDA exclude small island states; latest data available by country (2010-15).

63. Participants noted that delivering sustainable, higher earning jobs in IDA countries
requires the process of economic transformation – moving workers from lower to higher
productivity activities. While this process of transformation must be led by the private sector to
be sustainable, governments and development partners also play an important role by creating an
enabling environment. Economic transformation often starts with increased productivity in
agriculture, which requires, among other things, equitable access to secure land tenure for men and
women, credit and insurance, extension services, and electricity and irrigation. Rising productivity
in agriculture allows workers to move into higher value adding sectors, and is typically
accompanied by a spatial transformation and urbanization (Figure 7). Crucially, economic
44

Based on estimated job creation over the decade from 2006 to 2015 using data from WDI on demographics and the ILO
estimated employment to population ratio; assumes GDP growth and jobs elasticity to growth continues at the same trend as
over last decade in IDA countries. Note that data excludes India and IDA graduates over the past decade as well as countries
with missing data (Djibouti, Dominica, Grenada, Kiribati, Kosovo, Marshall Islands, Micronesia, Myanmar, Samoa, Sao Tome
and Principe, Somalia, South Sudan, St Lucia, St. Vincent, Tonga, Tuvalu, and Vanuatu).

- 24 -

transformation also requires growth in manufacturing and other non-agricultural sectors to absorb
labor being under-utilised in agriculture. Participants agreed that developing a private sector
requires facilitating connectivity to market opportunities and building the capabilities of firms and
people to take advantage of these opportunities. Encouraging private investment is reinforced by
an economy-wide incentive framework. Underpinning this all is investment in quality
infrastructure, which not only provides short-term jobs stimulus, but supports job creation over
the long term. Sustainable, private sector-led job creation is also buoyed by robust social protection
programs, which can offer a bridge toward productive employment and investment, and are
particularly critical in FCS environments.
Figure 7. Jobs and Economic Transformation – Approach

64. Participants noted that support for job creation through private sector-led economic
transformation has long been at the forefront of the WBG’s activities. The WBG has delivered
over US$100 billion over the last decade to support private sector investment (Figure 8). Since
IDA14, IDA has invested US$71 billion in lending in infrastructure, skills development,
agribusiness, Small and Medium Enterprise (SME), financial inclusion, competitive industries,
and financial systems. Of this, US$9 billion was in FCS countries. In the same period, IFC financed
US$25 billion from its own account in IDA countries – of which US$3 billion was in FCS while
MIGA has issued guarantees for US$9 billion of investments in IDA countries, of which close to
US$3 billion was in FCS. These have all recognized the importance of strengthening the business
enabling environment in IDA countries. The WBG has leveraged the synergies of IDA, IFC, and
MIGA in IDA countries, with strong results in delivering critical infrastructure, particularly in
FCSs. This has been achieved through joint CPFs, joint advisory services, and an increasing
number of joint investment projects. IDA itself has a successful track record and a comparative
advantage in addressing the jobs and economic transformation challenge, with evaluations
pointing to a long and relatively effective track-record in supporting some vital aspects of this

- 25 -

agenda. Moreover, the cross-cutting nature of the jobs challenge underscores IDA’s comparative
advantage in coordinating broad and deep sectoral expertise and convening across the public and
private sector.
Figure 8. IDA-IFC-MIGA Support for Private Sector Development in IDA-eligible
Countries

65. Participants recognized that the WBG is uniquely positioned to support this agenda in
IDA countries, leveraging its partnerships with a broad range of development partners to
provide integrated solutions. IDA works with a range of partners, most importantly, with the
client governments to strengthen the enabling environment. IDA also works with a number of local
and international partners. For example, at a global level, the WBG has engaged in a close
partnership with the ILO to support a range of country-specific and global initiatives to support
the creation of inclusive and higher quality jobs. This includes the highly successful Better Work
program, run jointly by the ILO and IFC. The WBG also works closely with bilateral partners –
for example with the governments of China, Japan, and the United Kingdom, as well as the
European Union and the Organisation for Economic Co-operation Development (OECD), to
advance knowledge and tools to help harness the potential global value chains for economic
transformation, trade integration, and job creation in LICs.
66. Participants stressed the importance of ensuring that strategies for job creation are
matched with efforts to raise the quality of jobs for workers, and to ensure that all parts of
society have equal opportunities to access employment. In particular, Participants urged the
WBG to address the challenges of youth employment and women’s participation in the labor force,
and called for continued close interaction with global partners, including the ILO, to deliver on
this agenda, and strengthen social dialogue. In addition, Participants encouraged particular
attention and action to address the challenge of economic migration (Box 2), building on the recent

- 26 -

Board Paper45 which highlights the WBG’s significant ongoing activities and proposed approaches
to address the challenges and opportunities posed by migration. Participants also highlighted the
importance of supporting economic transformation in IDA countries that are heavily dependent on
the agricultural sector. Raising productivity in agriculture and strengthening agricultural value
chains remains critical for these economies in the near-term, even as governments need also to
stimulate sectoral transformation and the accompanying rural-urban shift, which are preconditions
for the creation of large numbers of high quality jobs. These concerns apply equally to countries
that have relied on exploitation of natural resource endowments. In supporting the focus on private
sector-led job creation that is the heart of this Special Theme, Participants highlighted the
disincentives faced by the private sector to invest in job-creating activities given the high risk
environment in many IDA countries, particularly the FCS, and expressed support for ambitious
efforts to leverage IDA resources to catalyze job-creating private investment (see discussion below
on the IFC-MIGA PSW).
Box 2. Migration and Development in IDA Countries
In the coming years, demographic imbalances, climate change, persistent income disparities, along with declining
communication and transportation costs, will contribute to rising international migration. But migration is already
an integral aspect of IDA countries. In 2015, IDA countries (including IBRD-IDA blend countries)* were home to
over 25 million migrants, out of a global international migrant stock of 250 million (see Table below). Outward
migration from IDA countries numbered just over 64 million, of which 26 percent went to other IDA countries, 30
percent to IBRD countries, and 44 percent to high-income countries. Globally, South-South migration is larger than
South-North migration.
IDA countries are large sources as well as destinations for migrants – Number of international migrants
(millions)
Destination region
IDA

IBRD

High-income
countries

Others

Total

IDA

16.4

19.5

28.1

0.1

64.1

IBRD

6.1

34.1

93.6

0.1

133.9

High-income countries

1.1

6.8

33.1

0.2

41.2

Others

1.5

5.4

3.9

0.0

10.8

Total

25.1

65.8

158.7

0.4

250.0

Source region

Source: World Bank

* Data predates Syria’s reclassification to IDA-only status.

67. IDA18 policy commitments build on IDA’s existing support for private sector
development. Recognizing the complex and cross-cutting nature of the jobs and economic
45

Migration and Development Report: A Role for the World Bank Group. September 2016.

- 27 -

transformation agenda, Participants welcomed IDA’s substantial strategy to support jobs and
economic transformation through a comprehensive and ambitious package of policy commitments,
including new approaches to operations, new financial instruments, enhanced analytics, and new
tools for the evaluation and measurement of jobs impact. They noted that the policy commitments
under Jobs and Economic Transformation are integrated with the other IDA18 Special Themes
and, therefore, are reinforced by complementary commitments, including on women’s labor force
participation, regional trade and integration, climate-smart urbanization and infrastructure, and
enhanced governance, as well as primacy of job creation in addressing the challenge of fragility.
Participants also appreciated that the IDA18 commitments build on relevant IDA17 commitments
and optimize existing tools and operational approaches to deliver more, better, and inclusive jobs.
This includes efforts to ensure the learnings from Jobs Diagnostics translate into operational
impact and that ongoing programs to support SMEs and entrepreneurship are designed to address
the different needs of women and youth (Box 3).
Box 3. Key Findings from Jobs Diagnostics in IDA17
Creating better jobs is central to achieving transformations, although the need for more jobs rises with youth
bulges and downturns in growth:
 Employment and labor force participation are high in most low-income countries, because most people
cannot afford not to work. Underemployment is the main challenge, underscoring the need to raise
productivity and encourage labor mobility across products and potential locations.



With the recent easing in commodity prices and tighter capital markets, many IDA countries are facing
slower growth prospects, which will necessitate diversified, export-led job creation as Governments cut back
on ambitious spending programs that have buoyed consumption.

Limited economic transformation: Jobless growth, or jobs limited to certain sectors/locations:
 A group of IDA countries dependent upon extractive industries have seen relatively jobless growth, with
growth driven by capital-intensive extractives, and limited backward linkages to the economy. While these
countries have seen rapid productivity growth in enclave industries and some have seen short-term jobcreating public investment-financed construction and urban retail booms, most failed to capitalize on past
commodity price windfalls to diversity their economies and achieve sustained, broad-based job creation. In
FCS, this is a potential missed opportunity to advance stability.



In most IDA countries, most new jobs have come in services in urban centers and in small, informal firms;
few manufacturing jobs have been created.

Limited formalization and low productivity: More but not better jobs:
 Informality is high in IDA countries outside of ECA and LCR, and in most African IDA countries with large
youth populations, rural and informal economies are absorbing much of the youth population in low
productivity work in agriculture or in micro firms in rural services. These informal firms are seldom
connected in the value chain of larger formal firms.



The shift of labor into retail services from agriculture creates one-off “static gains” in productivity from the
inter-sectoral shift; however, these jobs are lower in productivity compared to those in the existing services
sector, thus dragging down overall services sector productivity.



Expanding access to value chains, including linking smaller and informal enterprises to larger, formal ones,
has shown potential to raise productivity and encourage formalization.



Low-income FCSs share these characteristics of service-driven informal growth, often supported by high
levels of aid inflows.

Inclusive urbanization, including secondary towns, can expand better jobs:
 Added to the limited formalization, several IDA countries are lagging in urbanization compared to LMICs
and MICs. Contrary to common wisdom, in several of the urbanizing African countries, the share of the

- 28 urban population in the primary city is not increasing, with secondary towns expanding rapidly, and
representing the largest source of non-agricultural jobs.
Migration and jobless growth:
 Finally, a number of IDA countries, in the face of jobless growth and youth bulges, have started to export
labor, with remittances driving the path of consumption-led, service-driven growth. Several need to expand
job creation as more migrants return because of declining opportunities abroad.

68.

In this context, Participants welcomed the following policy commitments for IDA18:


Supporting job creation through economic transformation:
o WBG will deploy tools and resources from IDA and IFC to undertake 10 inclusive
global value chain analyses 46 in IDA countries to understand how they can
contribute to economic transformation and job creation, including through growth
in agri-businesses, manufacturing, and services, and will use this analysis to inform
activities within the IDA portfolio;
o WBG will use the Global Infrastructure Connectivity Alliance to make available to
IDA countries knowledge on lessons and approaches related to cross-border
investments and economic corridor development, and will use this analysis to
inform activities within the IDA portfolio.



Raising job quality and ensuring the inclusion of youth and women:
o WBG will systematically carry out impact analyses of SME and entrepreneurship
programs across IDA countries to assess their overall impacts and differentiated
outcomes for women and youth, and will develop operational guidelines to inform
future operations;
o WBG will prepare operational guidelines for integrated youth employment
programs with a focus on connecting to demand-side interventions and supporting
labor market integration, and will inform the design of the new generation of youth
employment programs in IDA countries.



Targeting support for the private sector and workers in high-risk contexts, including
fragility and migration:
o WBG will enhance existing and introduce new operational instruments to improve
risk sharing in projects and crowd-in private capital in high risk investment
environments, including through the introduction of the IFC-MIGA PSW;
o WBG will adopt a ‘migration lens’ in IDA countries where migration has a
significant economic and social impact (including home, host, and transit
countries): this will include analytics that close critical knowledge gaps and, where
there is explicit country demand, support for operations that focus on job creation,
managing legal economic migration, and integrating young people and economic
migrants.

46

The comprehensive GVC analytical tool is newly developed and has not yet been deployed across IDA countries. Pilots will
begin at the end of IDA17.

- 29 -



Improving the knowledge base to inform operations supporting jobs and economic
transformation:
o WBG will develop and make available for use in IDA countries a set of ex ante
measurement tools and systems to assess the impacts of large-scale public and PPP
investments targeting infrastructure and economic transformation on jobs,
including pilot assessments on gender outcomes;
o WBG will catalogue learnings from the Jobs Diagnostics, assess how Jobs
Diagnostics are informing the design and implementation of operations in IDA
countries targeting job creation and economic transformation, and recommend any
changes necessary to improve the impact of the tool;
o WBG will develop and integrate spatial perspectives into analysis of migration and
urbanization trends, and the impacts of infrastructure on jobs and economic
transformation, this will include piloting of: spatial inventory of infrastructure in
five IDA countries; urban jobs accessibility assessments of 10 cities in IDA
countries; and spatial assessment of trends in job creation and destruction in five
countries.

Creating Opportunities for the Private Sector – IDA18 Private Sector Window
69. The private sector plays an important role in supporting sustainable development and
accounts for 90 percent of jobs in IDA countries. In line with the recommendation of the AAAA,
Participants reiterated the need to mobilize private finance as one of the key elements to achieve
the global development agenda and scale-up resources. To achieve the SDGs in the poorest
developing countries, it will be necessary both to continue strengthening the public sector and to
expand support to the private sector so it can play its part in meeting development challenges
directly. In this regard, IDA support for private sector development in IDA-eligible countries has
amounted to US$70 billion just in the past four replenishments. Of this, US$9.2 billion was for
supporting private sector development in FCS. This support remains critical to partner with
countries to help them improve the business environment for the private sector. However, IDA
countries, especially FCS, continue to face challenges in attracting successful pioneering and
“responsible” investments that, in turn, help reduce investor risk perceptions and open up the
countries to domestic and foreign capital in a wide range of sectors.
70. Participants endorsed the creation of a SDR1.8 billion IFC-MIGA PSW pilot in IDA18
to support direct private investment in IDA-only, non-gap countries, with a focus on FCS.47
In line with one of the strategic objectives of the “Forward Look,” the Financing for Development
agenda, and in support of all the IDA18 Special Themes, funding from the PSW will be additional
to existing WBG programs and will focus on the mobilization of private investments that generate
positive externalities and create markets in the most challenging environments. Therefore, projects
supported by the PSW will seek to have broad demonstration effects. Participants also emphasized
the importance of minimizing market distortions, by providing PSW support only when necessary,
with minimum concessionality and transparency. They stressed that consideration of long-term
fiscal implications of public-private investments and alignment of these investments with a
47

Implementation arrangements will be developed and presented to IDA/IFC/MIGA Boards of Executive Directors for
approval. Also See “Further Details on Proposed IFC-MIGA Private Sector Window in IDA18” (September 2016).

- 30 -

country’s sector strategy are crucial. Furthermore, Participants called for a results framework that
demonstrates the clear additionality of the PSW to IFC’s and MIGA’s activities, in terms of scale,
scope (new sectors, new countries, and new approaches) and development impact of the PSW,
including linkages to the IDA18 Special Themes (Figure 9).
Figure 9. IFC-MIGA Private Sector Window Overview

71. Participants endorsed the creation of four facilities within the PSW: (i) a Risk
Mitigation Facility to provide project-based guarantees without sovereign indemnity to crowd-in
private investment in large infrastructure projects; (ii) a MIGA Guarantee Facility to expand
coverage through shared first-loss and risk participation via MIGA reinsurance; (iii) a Local
Currency Facility to provide long-term local currency IFC investments in IDA countries where
capital markets are not developed and market solutions are not sufficiently available; and (iv) a
Blended Finance Facility (BFF) to blend PSW funds with IFC investments to support SMEs –
which are critical to job creation and women’s empowerment through female ownership of small
businesses, agribusiness and other pioneering investments, including energy access. This BFF will
build on IFC’s experience with its blended financing programs, including the Global Agriculture
and Food Security Program (GAFSP)’s private sector window.48 Envisioned to be deployed in
coordination with other WBG regional and sector programs, these facilities will be complementary
to existing WBG instruments and provide additionality, with the option to use, in some cases, PSW
resources to provide financing through equity investments in eligible recipients.

48

All PSW-supported activities need to be aligned with WBG country diagnostics and strategies. In FCS, the PSW-supported
activities will be informed by the Risks and Resilience Assessments and by other relevant fragility analyses as part of the
CPFs.

- 31 -

72. Participants called for five organizing principles to guide the governance structure for
the PSW to ensure robust and efficient processes: (i) Accountability through independent
decision-making by each institution; (ii) Oversight through clear reporting and review; (iii)
Conflict of interest management through each institution vetting cross-institutional transactions
independently and arms-length arrangements; (iv) Transparent risk-return sharing to ensure that
IDA can establish appropriate pricing principles in light of the risks assumed under the PSW; and
(v) Operational efficiency through leveraging existing processes to the maximum extent possible
without compromising other governance principles.
73. Participants welcome IDA, IFC and MIGA Management’s strong commitment to the
PSW and encouraged Management to pursue a flexible, “learning by doing” approach,
recognizing that the PSW will require engaging in difficult markets with a high degree of
uncertainty. They particularly welcomed the opportunity for the PSW to bring collaboration across
the three institutions to a new level. Participants acknowledged and accepted the proposed
financially prudent approach and asked that Management adjusts it based on how the risk of the
actual portfolio evolves. They further welcomed Management’s commitment to further enhance
indicators capturing the sectoral focus and IDA priorities. Participants called on Management to
ensure that the PSW contributes to transformative development through economically and socially
responsible investments. They supported an approach that balances financial risks with the
potential development impact of PSW and stressed the importance of a framework that assesses
the risk of loss and the minimum concessionality needed to enable a transaction.
74. The PSW proposal will be presented to the Executive Directors of IDA for approval,
including a results measurement framework, together with IFC and MIGA Boards’
approval of each institution’s participation. Management will report on progress on PSW at the
Spring and Annual Meetings as well as at the IDA18 MTR, and commission an independent
evaluation when appropriate.
B.

SPECIAL THEME 2: GENDER AND DEVELOPMENT

75. Recognizing that closing gender gaps can help set countries on a sustainable path
toward more diversified economies, higher levels of productivity and better prospects for the
next generation, Participants called for continuation of gender as a Special Theme in IDA18.
There is growing recognition by the private sector that closing gender gaps in employment and
leadership can mean better talent, more productivity, innovation, a wider customer pool and
ultimately a stronger bottom line. Not only is gender equality a desirable objective, it is also
achievable. Evidence shows that public policies and business practices can close gender gaps and
create a better environment for tackling adverse norms and expectations about female and male
roles and ending discrimination against women and girls, especially the poorest.
76. IDA countries have made progress in closing gaps between men and women, girls and
boys – particularly in health and education – but progress has been elusive in essential areas
that are core to the WBG goals to reduce poverty and boost shared prosperity in a
sustainable manner:


First, serious first generation issues remain in closing gender gaps in human endowments,
including in access to available services. Maternal mortality rates remain unacceptably

- 32 -

high in many IDA countries. 49 And in education, remaining gaps in enrollment and
completion – both in primary and secondary school – tend to be concentrated in LICs or in
conflict-affected areas. To close these remaining gaps, efforts must be ramped up through
proven interventions, such as conditional cash transfers and stipends, and through taking
steps to guarantee girls’ and boys’ safety and security in schools.


Second, women also lag men in most measures of economic opportunity, such as in rates
of paid employment, productivity and entrepreneurship. Women in IDA countries are more
likely than men to engage in low-productivity activities, be unpaid family workers, work
in informal employment, and transition more frequently between informal employment and
being out of the labor force. An important step to close these gaps is to recognize that
existing skills development efforts – for both employment and entrepreneurship – need to
be made more effective. Doing so will require more skills development projects to diagnose
gaps between men and women in productivity and occupational segregation, to design and
implement appropriate interventions to improve women’s productivity, and to track the
results of those interventions.



Third, women’s ownership of and secure access to physical/financial assets lag that of
men’s in IDA countries. Women-owned firms tend to be smaller than men’s, employ fewer
people, and are more likely to be home-based. Studies often find that female-owned
businesses are less productive than male-owned ones because of differences in sector,
enterprise size, and capital intensity. Women’s relative lack of access to credit is an
important driver of this gap, but non-financial barriers, such as inadequate physical
infrastructure and restrictive legal and regulatory frameworks, also pose challenges.



Fourth, gender gaps persist in limited access to and use of technology and this could limit
economic opportunity across several dimensions.



Finally, women and girls in IDA countries are often deprived of voice and agency, with
the risk of gender-based violence especially high in FCV contexts.

77. Participants agreed that the greater ambitions enshrined in the SDGs cannot be
realized unless IDA countries and their partners make significant and sustained efforts in
these areas. They emphasized that IDA is particularly well suited to provide strategic support for
work to close gaps between men and women, which is a complex task spanning multiple sectors
and requiring sustained effort over long periods. Because changing attitudes and behaviors related
to gender takes time, IDA’s long-standing dialogue with clients is invaluable. Also, by its nature,
closing gaps between men and women requires organized assistance across many sectors, for
which IDA is well positioned. IDA is able to draw on gender analysis and projects in all regions
as well as the analytical resources available in the WBG, helping push the knowledge frontier in
areas such as identifying what works to close economic gaps between men and women.
78. Participants welcomed Management’s strong commitment to full implementation of
the 2015 WBG Gender Strategy. They agreed that the Strategy, with appropriate budget and
49

The adult lifetime risk of maternal mortality in Sub-Saharan Africa remains 1 in 38 (1 in 15 in Chad and 1 in 18 in Somalia),
and in five countries (Burundi, Chad, Liberia, Niger, and Somalia) more than one-quarter of all deaths among women of
reproductive age are due to maternal causes. Fifteen countries, all in Africa, still experience more than 500 maternal deaths
per 100,000 births.

- 33 -

staffing, will help make IDA more effective in closing gaps between women and men, boys and
girls, realizing poverty reduction and shared prosperity, and promoting women’s voice and
agency.50 Furthermore, they agreed it will help make IDA a more effective partner in tackling
gender gaps. The Strategy reflects changes in the global landscape and in the accumulation of
evidence of what works to close gender gaps. It is intended to be operational, achieve measurable
results, and align relevant operations to the most binding constraints in IDA countries. This
requires better country and sector-level diagnostics, policy dialogue, and sex-disaggregated data;
developing a better understanding of what works through impact evaluations and other analyses,
and bringing the evidence to task teams and clients; rolling out and using a more robust monitoring
system; and leveraging partnerships for effective outcomes, particularly with the private sector and
key UN agencies.
79. To improve the effectiveness of operations under the new Gender Strategy, the WBG
will increase investment to understand what works and what does not to close economic
gender gaps. In particular, further efforts will be made to build the knowledge base on frontier
issues, including on jobs and assets, but also, for instance on multi-sectoral responses to GBV in
FCS contexts. The WBG Regional Gender Innovation Labs have already invested in launching a
large number of impact evaluations. These rigorous, multiyear evaluations test initiatives to close
specific gaps between men and women. Over 75 impact evaluations are now underway or
completed, with the large majority carried out in IDA countries. Efforts will be made to enable
operations financed under IDA18 to be designed with this stronger knowledge of what works, and
what does not, in closing gaps between men and women.
80. Participants urged IDA to continue its partnerships with multilateral and bilateral
entities, nongovernmental organizations, and the private sector, to address gender gaps,
particularly in health and education, economic opportunity, access to justice, and GBV, or
on specific cross-cutting issues. At the country level, IDA forges partnerships with key
stakeholders to inform the policy dialogue. For example, for the Adolescent Girls Initiative to
promote the economic empowerment of young women in seven IDA countries, IDA teamed up
with country-level partners to offer innovations in skills training and complementary services
around village-level girls’ clubs to facilitate women’s transition to productive work. Participants
also took note of the WBG’s Advisory Council on Gender and Development which engages key
global figures, such as Ministers of Trade, Planning, and other sectors, internationally recognized
private sector leaders, and civil society leaders from both IDA and non-IDA countries. This diverse
group of leaders convenes twice annually under the stewardships of the WBG’s Managing
Director, to consider ways to accelerate progress in closing gaps between men and women. IDA’s
global partners also include organizations such as Breakthrough, CARE International, Cornell
University, Ogilvy, Promundo, Show of Force, and UN Women.
81. Participants emphasized the potential to speed up development by sharpening the
focus on women’s economic empowerment, particularly through access to jobs and assets
under IDA18. They called for enhanced efforts to remove constraints for more, better and
inclusive jobs, through a number of actions: involving/consulting employers in the design of skills
development programs, to providing incentives to training providers to enroll women in training
50

World Bank Group (2015), “Gender Equality, Poverty Reduction and Inclusive Growth.”

- 34 -

programs in which women do not traditionally enroll, to offering care services and other measures
that shape their participation.51 Given the importance of private sector development, Participants
emphasized the importance of removing legal and regulatory barriers to enable women to engage
in paid employment and start and grow businesses. Participants welcomed IFC’s emphasis on
promoting women’s economic empowerment and encouraged further progress. They also
emphasized the importance of financial inclusion for women’s economic empowerment.
Participants noted that both IDA and the IFC can play important roles in extending a range of
infrastructure services to enable women’s economic participation and higher productivity. Given
the fundamental role played by access to quality, affordable, reliable, and safe transportation in
both freeing women’s time for productive activities and to enable better access to services,
markets, and jobs in many IDA countries, Participants welcomed the specific commitment under
IDA18 to address these issues, while acknowledging the importance of investments in other
infrastructure areas.
82. Participants acknowledged the many inter-linkages between gender and other IDA18
Special Themes, and called for further strengthening of these interlinkages – particularly
with respect to women in the labor force and women in FCV. In addition to the actions
identified in the Gender Strategy, Participants encouraged exploiting the links between gender and
other Special Themes (Box 4). In this broader context, Participants noted the need for IDA to
support women’s opportunities to exercise agency, leadership and voice, and emphasized the role
IDA can play in removing constraints for women to be agents of change. Participants also
expressed significant concern about GBV and other vulnerabilities facing women in the current
migration crisis, particularly those who are forcibly displaced and in post-conflict situations, where
they lack services, job opportunities and/or other support. In this regard, they looked forward to
the recommendations of the WBG’s Global Task Force on GBV and to IDA’s support in
implementing these recommendations.
83. IDA18 Policy Commitments. Participants and Management agreed to intensify
investments to improve women’s access to jobs and assets and to shift the focus to measurable
results in IDA18. As such, IDA’s more ambitious efforts to promote change will be grounded in
the WBG Gender Strategy, with all related commitments made on the basis of our experience
during IDA17 implementation and in full alignment with the results outlined in the Strategy. The
Strategy commits the WBG to more specificity about which gender gaps in each country IDA can
help close, to expand take-up of interventions that work, to sharpen focus on measurable results,
and to fill key gender data gaps. They welcomed specific actions to scale up efforts in five areas
over IDA18 at both the operational and country level, including a specific focus on gender-related
commitments in FCV, as well as piloting an ambitious effort to approach the very complex task of
collecting key economic information from individuals within households:


Closing first generation gaps in human endowments:
o All applicable IDA18 financing operations in primary and secondary education will
address gender-based disparities, for instance, by incentivizing enrollment,
attendance and retention for girls;

51

See “Special Theme: Gender and Development,” May 27, 2016.

- 35 -

o All IDA18 financing operations for maternal and reproductive health will target the
improvement of the availability and affordability of reproductive health services,
including for survivors of gender-based violence.


Removing constraints for more and better jobs:
o At least 75 percent of IDA18 financing operations for skills development will
consider how to support women’s participation in and improvement in the
productivity of their economic activity, and/or consider how to reduce occupational
segregation;
o At least two-thirds of all IDA18 financing operations in urban passenger transport
will address the different mobility and personal security needs of women and men.



Increasing financial inclusion and entrepreneurship:
o At least 10 IDA18 financing operations and ASA for financial inclusion will
address gaps in men’s and women’s access to and use of financial services and at
least 10 Financial Inclusion strategies in IDA countries will provide sexdisaggregated reporting and put in place actions to target specifically women's
financial inclusion;
o At least half of all IDA18 financing operations in the ICT portfolio will support
better access to the Internet and better access to ICT services for women.



Enabling country-level action:
o Pilot data collections will be launched in at least six IDA countries to gather direct
respondent, intra-household level information on employment and assets.



Enhancing women’s voice and agency and engaging men:
o Increase the number of operations in fragile contexts which prevent or respond to
gender-based violence, including through access to essential services and
livelihood support activities for women (baseline: IDA16; see FCV);
o Implement the recommendations of the WBG Global Task Force on Gender-Based
Violence, as applicable, within operations in IDA-eligible countries.

- 36 Box 4. Exploiting Gender Interlinkages with the Other Special Themes
Jobs and Economic Transformation: Jobs is a cornerstone in the new gender strategy and a Special Theme of
IDA18. As countries diversify and jobs move out of agriculture into other sub-sectors and value-chains, IDAfunded initiatives can help them break occupational segregation in the labor market, and help women access paid
employment and move from low to higher quality jobs (productivity, earnings, working conditions, access to social
insurance). There is also an important agenda to improve the quality of the mainly informal jobs they currently
have. The types of interventions that are needed can be informed by ongoing Jobs Diagnostics – all 15 produced to
date, including five in FCV-affected countries, draw on sex-disaggregated data as a step towards identifying actions
that can bring about more, better and inclusive jobs and collect information on gender norms/occupational
segregation. A next step should be to deepen the analysis in the new cohort of Jobs Diagnostics and to strengthen
the linkages to policy dialogue in countries, with CPFs increasingly reflecting jobs challenges.
Climate Change: For the climate change Special Theme, women’s responsibilities in households and communities,
and as stewards of natural and household resources, position them well to contribute to livelihood and risk reduction
strategies adapted to changing environmental realities. Adaptation efforts should include work to empower women,
especially in the area of energy, forests and climate-smart agriculture, help communities actively prepare for
potential climate shocks, and ensure that productivity gaps with men continue to close. Finally, some work suggests
that males and females have different resilience strategies to cope with the effects of climate change. The effects
on their lives, livelihoods and assets can be mitigated by having social safety nets, expanded participation in
adaptation planning processes, and secure asset rights as part of resilience and disaster response. Commitments
under the new WBG Climate Change Action Plan include planned efforts in integrating gender into climate
screening tools, and undertaking analytical work around gender inequality, climate and poverty, including linkages
with migration and fragility.
Fragility, Conflict and Violence: In situations marred by FCV, IDA’s ongoing work, including in the Great Lakes
region in Africa, seeks to prevent and mitigate the effects of sexual and GBV. Under IDA18, an urgent agenda will
be to build a larger knowledge base to understand the norms of masculinity and violence against women, with a
particular focus on what can work for normative change. IDA can also do more to make the linkages between
responses to GBV and women’s economic activities in project design. To strengthen the effectiveness of IDA, it
will be important to include women fully in post-conflict transition operations, whether in the demilitarization and
demobilization agenda or in fast-disbursing community-driven development projects. IFC is developing a gender
framework for all projects in its conflict affected Africa states program in IDA countries that will allow operations
to more fully take into account and reduce gender gaps. Finally, several ongoing crises highlight the challenge of
large scale displacement, whether forced or voluntary, internal or cross-border. Displacement leads to distinctive
risks and opportunities for males and females – such as increased risk of rape, violence, and forced conscription,
or better opportunities for employment, education and voice. Data is scarce about most displaced populations, with
the exception of refugees. That data indicate that the proportion of female refugees has gradually increased from
48 percent in 2011 to 50 percent in 2014 (UNHCR, 2014). In refugee camps today in central Africa, women
represent over half of refugees. In these places, men tend to find jobs outside the camps, with women remaining to
take care of children and other family members (UNHCR, 2011). IDA will need to be mindful of the important
differences in how males and females are exposed to both risks and new opportunities when projects are designed
to benefit refugees, internally displaced persons (IDPs), and migrants, as well as host communities in FCS.
Governance and Institutions: The WBG’s Women, Business, and the Law database collects unique data on laws
and regulations on barriers to women’s entrepreneurship and employment in 189 countries, helping identify the
necessary entry points for legal reform. There are a total of 376 legal gender differences in the 63 IDA countries
covered by the Women, Business and the Law database (excluding India). In 45 IDA countries, women are restricted
from doing the same jobs as men. Meanwhile, gains in voice and agency remain uneven, especially in practice.
IDA is removing barriers to women’s ownership and control of economic assets by addressing legal inequities and
increasing access to justice service delivery. IDA is also embedding important dimensions for women and girls in
support to improve service delivery performance through SOEs and in strengthening health institutions’ capacity
to address pandemics, which can often have disproportionate effects for women, the primary caregivers in many
IDA countries.

- 37 -

C.

SPECIAL THEME 3: CLIMATE CHANGE

84. Participants expressed concern that climate-related disasters are eroding development
gains. During the last decade, IDA countries were affected by almost eight times as many natural
disasters relative to the 1980s, and their economic damage (US$ terms) has increased three fold
(Figure 10). The Intergovernmental Panel on Climate Change’s IPCC Fifth Assessment Report
finds that unabated climate change will lead to intense and more frequent heat waves, extreme
precipitation, coastal flooding, and other extreme events. While repercussions from these events
will be felt all across the globe, the poorest regions of the world (i.e., Sub-Saharan Africa and
South Asia) will bear the brunt. The WBG’s Shock Waves Report52 notes that the impact of climate
change related shocks on poverty reduction alone could result in more than 100 million additional
people living in poverty by 2030. This rise in poverty could exacerbate social instability and
fragility with negative spillover effects.
Figure 10. Impact of Climate and Natural Disasters on IDA Countries
Number of Events

Economic Damage
20.0

180

18.0

160

16.0

140

14.0
(US$ billion)

200

120
100
80

12.0
10.0
8.0

60

6.0

40

4.0

20

2.0

0

1980

1985 1990
Events

1995 2000 2005 2010
10-year moving average

2015

1980 1985 1990
Economic Damage

1995 2000 2005 2010
10-year moving average

2015

Source: The International Disaster Database (EM-DAT).

85. Participants noted that IDA countries are particularly vulnerable, and enhancing
resilience is a key priority. IDA countries tend to have high exposure and sensitivity to climate
shocks, while also exhibiting low adaptive capacity to buffer their economies and communities
from climate and disaster risks. IDA has been one of the largest sources of climate related finance
for LICs. IDA commitments with climate change co-benefits over FY13-15 averaged US$3.86
billion, with the majority of the associated investments occurring in the following sectors: energy
and mining; water, sanitation and flood protection; and agriculture, fishing, and forestry. In FY15
alone, IDA delivered US$2.08 billion in adaptation co-benefits. Through IDA18 these numbers
are expected to increase substantially.
86. Participants acknowledged that it is essential that climate and development is tackled
in an integrated manner. In IDA countries alone, about 300 million people are undernourished.
In addition, IDA countries are seeking to provide electricity to nearly 800 million people without
access, while keeping emissions to a minimum and managing the transition away from fossil
fuels.53 Water stress will increase in many parts of the world. In many circumstances, women are
52

Shock Waves: Managing the Impacts of Climate Change on Poverty. Washington, D.C.: World Bank Group (2016).

53

Preceding two sentences refer to data from World Bank Databank, excluding India.

- 38 -

particularly vulnerable during conditions of scarcity brought by climate shifts. That said,
enhancing women’s roles as agents of change and as stewards of natural and household resources
can position them well to contribute to livelihood and risk reduction strategies adapted to changing
environmental realities. In any case, developmental needs will have to be addressed in a climate
smart way to ensure sustainability over the long run. While IDA has to prioritize enhancing the
resilience of vulnerable communities and the resources they depend on, it also needs to ensure that
IDA countries are able to adapt to climate change and have the resources to pursue low-carbon
infrastructure while satisfying all WBG safeguards (Paragraph 27).
87. Participants noted that actions under COP21 on climate change and the Sendai
agreements require a significant increase in resources to deepen resilience. Taking the
expected increase in climate and disaster risks into account, IDA requires a substantial increase in
resources to address the upfront costs of actions to reduce these risks and maintain development
gains. 54 Furthermore, an analysis of the (I)NDCs of 71 IDA countries shows that a vast majority
are intending to improve renewable energy as well as energy efficiency and access. Increased
emissions because of deforestation and degradation was also highlighted as a problem in 90
percent of the (I)NDCs, and efforts need to be increased to protect forests as a source of people’s
livelihoods, as a critical sink to remove carbon dioxide from the atmosphere, and as an ecological
buffer from climate shifts. The World Bank estimates the costs for implementing IDA (I)NDCs’
actions are at least US$800-900 billion by 2030, or up to US$60 billion per year through 2030.55
88. Participants noted that addressing climate change requires tackling interlinked policy,
technology and finance challenges. It also requires policies and programs that provide incentives
for engagement of, and synergies between, the public and private sector to address climate change.
They agreed with Management that intensified ambition is needed to tackle climate change, which
involves a significant scale-up in innovative and transformative activities towards climate resilient
development in line with the WBG’s Climate Change Action Plan. They appreciated the range of
interventions to address climate change – including the focus on climate-smart agriculture, forests,
deforestation, and land restoration – and recognized the inter-dependence of these critical issues
with integrated urban and transportation development, protected areas, secure land tenure, and
protection of indigenous people’s rights. Participants also stressed the critical need to promote
energy access in IDA countries, and urged continued attention to investments in renewable energy,
as well as energy transmission, distribution, and efficiency. Empowerment of women can increase
the effectiveness of interventions to address climate change and increase resilience, such as by
accelerating the replacement of inefficient indoor cook stoves with cleaner alternatives that reduce
chronic health impacts and have co-benefits for regional and global climate. 56 Participants
emphasized the WBG focus on assisting IDA countries, including small island states, in
maximizing climate co-benefits through greater support in relevant areas and in supporting
countries, when requested, in implementing their (I)NDCs.
89. Participants welcomed the enhanced ambition in IDA18’s commitments to foster
climate and disaster resilient development. They recognized that the collective IDA18 climate
commitments build on IDA17, and drive the WBG’s ambition to deepen and mainstream climate
54
55
56

See “ Building Resilience Integrating Climate Disaster Risk Development.” World Bank Group (2013).
Estimates based on an analysis of countries’ self-reported cost estimates from the World Bank's (I)NDC Platform, July 2016.
See “Gender, Climate Change and Health”. World Health Organization (2014).

- 39 -

considerations. Together, the commitments aim to create the enabling policy and planning
frameworks to ensure that IDA resources are deployed to incentivize and crowd in additional
public and private resources to address climate. IDA18 will strengthen the integration of climate
change and disaster risk management considerations into SCD and CPF processes, which will help
shape development programs going forward with a climate and resilience lens. A review of the
WBG experience to-date and the countries’ NDCs will be integral to identifying climate change
risks and opportunities. IDA18 will also strengthen the screening of projects for climate change
and disaster risks to inform and ensure all of IDA’s lending operations maximize climate change
considerations in these projects.
90. Participants acknowledged the importance of supporting IDA countries to integrate
(I)NDCs into national budget and planning processes to achieve their climate objectives.
They urged Management to consider ways to support a diverse group of countries and share the
experiences broadly. Participants recognized that policy reform is one of the key ways to increase
impact on the ground, to crowd in climate smart funding and to increase the value for money for
all climate related funding. As an important instrument for achieving this and helping IDA
countries get their policy and regulatory frameworks right, IDA18 will increase the use of
Development Policy Operations (DPOs) that support climate co-benefits. These could encompass
energy policy and subsidy reform, public investment planning, natural resource protection and
financial sector reform, amongst other policy reforms. Participants acknowledged the need to
increase private sector financing for climate activities and welcomed IDA18’s annual reporting on
private finance mobilized for climate, in addition to continuing to report on overall climate finance
together with other MDBs.57
91. Participants also noted the sectoral nature of climate actions in IDA18, with specific
commitments in the highest priority areas like energy. IDA18 will support efforts in IDA
countries to provide access to energy for the 1.1 billion people who are currently without access,
in ways that have the lowest carbon footprint, are climate resilient, and avoid lock-in of carbon
intensive infrastructure. Participants supported the aim of adding five gigawatts (GW) of
renewable energy generation, which is a doubling over the most recent three-year period of FY1416, and represents at least 20 percent of the total renewable energy expected to be added in IDA
countries by 2020. As larger countries such as India and Vietnam would have graduated IDA, this
capacity will be added through a number of smaller projects in very complex environments and
will be selected with a view to catalyzing broader low-carbon development. Participants welcomed
IDA18’s emphasis on developing renewable energy investment prospectuses in seven additional
IDA countries with low electricity access, providing the strategic investment framework for IDA
and other donors, and the private sector to support access and renewable energy investment.
92. Participants agreed that focus on climate-smart agriculture and forestry in IDA18 is
critical to deliver increased production, increased resilience, and lower emissions. To shape
agriculture in a climate-smart way, and to provide a framework for investments for both IDA and
other financiers, IDA18 will support the development of 10 country level climate smart agriculture
strategies and investment plans. Participants also recognized that forests need to become an
integral part of national development agendas and recognized for the many opportunities they
57

Climate finance reporting will continue to follow the methodology and procedures agreed upon with the other MDBs and will
report on the WBG numbers.

- 40 -

offer. Forests are uniquely placed in the climate change agenda as they can deliver both emissions
reductions and adaptation co-benefits: they have the capacity to store and sequester carbon as well
as to provide ecosystem services that enhance the resilience of natural systems. Participants further
appreciated that in many IDA countries, land use changes and deforestation are large sources of
emissions, but that forest pressures are frequently connected directly and indirectly to other
development activities. At the same time forests are a key source of livelihoods for poor people.
Through a combination with IFC and the climate change trust funds – the Forest Carbon
Partnership Facility, the Forest Investment Program, and the BioCarbon Fund – IDA18 will
continue working on innovative solutions for forest-based low-carbon development. Participants
further appreciated that the WBG Forest Action Plan and IDA18 will be aligned through the
development of 10 country forest policy notes, which are expected to lead to large-scale,
multisector programs promoting “forest-smart” development.
93. Participants welcomed the scale of climate-related commitments over IDA18 as
follows:


Deepening the mainstreaming of climate change and DRM into SCDs, CPFs, and
lending, and support development of planning and investment capacity:
o All IDA SCDs and CPFs to incorporate climate and disaster risk considerations and
opportunities and reflect (I)NDCs, based on a review of experience before the start
of IDA18, and to be reported at MTR;
o All IDA operations continue to be screened for climate change and disaster risks
and integrate resilience measures, based on review of experience before the start of
IDA18, and to be reported at MTR;
o Support at least 10 countries (on demand) to translate their (I)NDCs into specific
policies and investment plans with a view to start their integration into national
budget and planning processes;
o Develop at least 10 climate-smart agriculture investment plans and 10
programmatic forest policy notes;
o Increase the use of DPOs that support climate co-benefits;
o Apply GHG accounting and shadow carbon price for all operations in significant
sectors, and prepare a revised guidance note on discount rates.



Supporting efforts to achieve the Sustainable Energy for All objectives:
o Support the addition of five GW in renewable energy generation;
o Develop Investment Prospectuses in seven additional countries with low electricity
access.



Monitoring and reporting of IDA resources used for climate change:
o Report annually on private finance mobilized for climate and continue to report on
overall climate finance together with other MDBs.58

58

Climate finance reporting will continue to follow the methodology and procedures agreed upon with the other MDBs and will
report on the WBG numbers.

- 41 -

D.

SPECIAL THEME 4: FRAGILITY, CONFLICT AND VIOLENCE

94. Participants noted that FCV constitutes one of the most pressing challenges for
achieving the SDGs. Compared to a quarter century ago, the number of people living in extreme
poverty59 in the world has dropped by almost one billion. However, in FCS, extreme poverty is
rising – with an estimated 50 percent of the global poor expected to live in IDA FCS by 2030.
FCV also makes growth and human development more difficult and can lead to reversal of
development gains. In this context, Participants noted that violence is becoming more complex
with a growing number of local conflicts supported by external actors with political violence and
acts of terrorism causing increased instability. Not all fragile situations are violent, but the threat
of violence and conflict is present in many fragile situations.
95. Participants noted that FCV risks affect countries beyond the list of FCS 60 and can
have regional and/or global dimensions. Fragility can also be found in higher-capacity countries,
and at sub-national levels. The causes and consequences of fragility are often not confined within
borders and this always carries the potential of negative spill-overs into other countries through
violent extremism and/or forced displacement. Violence and conflict are estimated to have
displaced about 65 million people, including 24 million refugees.61 Fragility can also emanate from
other factors such as demographic pressures, illicit flows of drugs and arms, and climatic and
environmental stresses. GBV is a prevalent feature of many environments before the onset of
conflict, but fragility and conflict often exacerbate it.62
96. Participants noted that the WBG is very well placed to support development in
difficult environments and to help address global challenges associated with FCV. The WDR
2011 on Conflict, Security and Development has highlighted the significant time it takes to address
underlying causes of fragility and conflict and to put in place the institutional arrangements
required for governments to effectively mitigate and manage associated risks. The WBG’s strong
client focus, its long-term perspective and commitment, its technical expertise and deep crosscountry experiences represent important benefits for governments at risk of conflict, violence and
instability. Participants also recognized that WBG can play an important convening role and
provide a platform for evidence-based policy dialogue between international partners and
government.
97. Participants strongly welcomed IDA18’s ambitious and comprehensive proposal for
enhanced engagement on FCV. They appreciated the new strategic, more differentiated approach
to tackle the full spectrum of fragility and the cross-border dimension of FCV. In particular, the
increased focus on addressing root causes of fragility and displacement and mitigating FCV risks
was welcomed. Participants highlighted the unprecedented financing package for FCS/FCV and
the establishment of new innovative financing mechanisms for tackling fragility problems and
helping refugees and host communities. They underscored the importance of a heavy emphasis on
operational effectiveness and strengthening implementation to ensure a successful scale up of IDA
59
60
61
62

Living on less than US$1.90 per day.
Harmonized list of countries with CPIA ratings 3.2 or below.
Global Trends: Forced Displacement in 2015 (UNHCR, June 20, 2016).
Recent prevalence estimates suggest that 21.4 percent of refugee and displaced women have experienced sexual violence and
up to 57 percent of women screened in refugee camps in Kenya (IRD, 2015) reported GBV.

- 42 -

resources for FCS/FCV (see paragraph 103 and Section V). Finally, they underscored the strong
synergies and linkages on FCV across all of IDA’s Special Themes, to ensure IDA18 promotes
employment and private sector development, builds legitimate institutions and stronger statesociety relations, and addresses the severe challenges specific to women in FCV situations,
including, but not limited to, the serious threat of GBV.
98. Participants expressed support for the differentiated approach to FCV. Sustained
engagement in FCS and adapting responses to different situations of fragility – like active crisis or
conflict, fragility traps or emerging stability – remains critical. They noted that 30 FCS are IDAeligible63 and suggested that IDA should broaden its engagement by identifying and supporting
opportunities to mitigate fragility risks. This will require programs that directly address underlying
causes of FCV and deal with the consequences of violent conflict. They also encouraged IDA to
support country-level engagements within a regional framework to tackle fragility arising from
regional factors and to deal with the impact of refugees on host countries.
99. Participants endorsed the proposal for significantly scaled-up IDA18 financing to FCS
and also exceptional IDA support to a limited number of non-FCS countries which face FCV
risks. They noted that the proposal preserves incentives for performance; does not create an
additional set-aside; builds on IDA’s implementation experience, including the need for striking a
balance between rules and flexibility; and reflects the purpose of responding to FCS/FCV across
the entire spectrum of fragility. Participants endorsed the following changes to the PBA system:
(i) increasing the poverty orientation of the regular PBA system by reducing the Country
Performance Rating (CPR) exponent from 4 to 3; (ii) increasing the annual minimum base
allocation from SDR4 million to SDR15 million; (iii) eliminating the Multilateral Debt Relief
Initiative (MDRI) netting out; (iv) eliminating the grant discount; (v) continuing the
implementation of the exceptional Turn-around Regime (TAR) (Annex 3), including for Syria
when conditions are appropriate; 64 and (vi) providing exceptional Risk Mitigation support to
Guinea, Nepal, Niger, and Tajikistan for the IDA18 period (Annex 4).
100. Exceptional regimes. Participants acknowledged that within Core IDA Financing, TAR
will continue to support IDA countries taking advantage of a significant opportunity to build
stability and resilience following the cessation of a conflict or the commitment to a major change
in the policy environment. In addition, Participants endorsed the introduction of a new exceptional
regime to mitigate FCV risks. Under the FCV Risk Mitigation Regime, additional Core IDA
resources will be allocated to selected IDA countries that present increased risks of fragility and
where governments are committed to addressing them. Additional resources will target drivers of
FCV and mitigate fragility risks and build institutional resilience. Participants also endorsed the
implementation arrangements and systematic approach to determine country eligibility and make
mid-course corrections at the MTR as per the eligibility criteria presented in Annex 4. For IDA18,

63
64

Based on the latest available harmonized list.
Syria was recently reclassified as an IDA-only country (IDA/SecM2016-0149), November 17, 2016. Reclassification of Syria
as IDA eligible does not mean that the World Bank intends to resume engagement in the country at this stage. Commitment
of IDA funds in Syria will require the following: (i) arrangements for the clearance of IDA arrears; and (ii) the Bank’s ability
to engage with an appropriate government counterpart and to effectively appraise and supervise projects in the country
(whether through staff presence or the use of third-party monitoring agents). If Syria were to qualify for TAR assistance, then
it could receive up to US$1 billion subject to performance.

- 43 -

four countries (Guinea, Nepal, Niger, and Tajikistan) meet the eligibility criteria and will be
eligible for an additional allocation of up to one-third of the country’s indicative IDA18 allocation.
101. Regional Sub-window for refugees. In order to focus particular efforts and resources on
the challenge of refugees, Participants welcomed and endorsed the creation of a SDR1.4 billion
sub-window within the Regional Program to finance projects benefiting refugees and their host
communities. Supported projects in host IDA countries will focus on the medium to longer term
development needs of refugees and host communities. Participants supported the stated objective
of the refugee sub-window. They noted that it could provide support for projects benefitting a
single host country. The proposed sub-window will put in place necessary incentives for
addressing the refugee challenge and accessing funds. Country eligibility will include quantitative
criteria and existence of a government action plan, strategy or similar document that describes the
country’s response to address the refugee situation in the country. Robust governance procedures
with strong Board oversight will be used for the refugee sub-window, similar to what is already in
place for projects under the Regional Program (Annex 5).
102. Participants highlighted the importance of continued support to address internal
displacement. Internally displaced persons (IDPs) are amongst the most vulnerable of the poor.
Participants welcomed IDA’s increased engagement on the challenge of forced displacement
which has primarily been focused on IDPs and refugee host communities through both analytical
and operational work. An analysis of forced displacement dynamics, including internal
displacement, is part of Risk and Resilience Assessments (RRAs) which underpin CPFs in all
relevant IDA countries. Examples of IDA operations targeting IDPs and host communities include
regional initiatives in the Great Lakes and Horn of Africa, the local governance and service
delivery project in South Sudan, as well as emergency projects in Pakistan and in the Central
African Republic. Participants welcomed the greater scope for IDA countries facing these IDP
challenges to tap into greater core country allocations, as well as the larger Regional Program, as
described below in Section IV.
103. Ensuring effective implementation in FCV. Participants recognized that the substantial
increase in resources for FCV provides great opportunities for the WBG but also comes with
significant reputational, fiduciary and programmatic risks. They acknowledged that successful
implementation of a more ambitious program on FCV requires adequate staffing, operational
flexibility and sufficient budgetary resources for strategic engagement and portfolio support. The
success of IDA’s increased engagement will also depend on security, organizational effectiveness,
the WBG’s ability to promote the design of projects that address FCV drivers, as well as greater
FCV-sensitivity across the portfolio. Further details on strengthening implementation in FCV
situations are provided in Section V.
104. IDA18 Policy Commitments. Building on the progress achieved, Participants welcomed
the substantial set of new policy commitments for IDA18 and the strong ambition to further
strengthen delivery of assistance to FCV. They highlighted the need for attention to gender issues
throughout all of the policy commitments and to ensure a gender perspective is integrated into
assessment and planning processes such as RRAs and Recovery and Peacebuilding Assessments
(RPBAs). This recognized that women and men experience fragility and conflict differently and
therefore have different needs, capacity and opportunities. They noted the comprehensive and

- 44 -

mutually reinforcing nature of policy commitments spanning the areas of: (i) knowledge and
analytics; (ii) country strategies and programs; (iii) operational effectiveness; and (iv) partnerships.
Participants agreed to the following policy commitments:


Deepening IDA’s knowledge on FCV and learning from operational experience:
o Adopt a risk-based approach for identifying fragility beyond those countries on the
FCS harmonized list;
o Deepen the Bank’s knowledge on the mitigation/prevention of FCV risks through
a flagship report drawing on lessons from operational experience and impact
evaluations.



Designing integrated WBG strategies addressing FCV drivers and building
institutional resilience:
o Risks and Resilience Assessments inform all CPFs in FCS and countries with
significant risks of FCV; 65
o Increase the number of operations targeting refugees and their host communities
(baseline: IDA17);
o Increase the number of operations in fragile contexts which prevent or respond to
gender-based violence, including through access to essential services and
livelihood supported activities for women (baseline: IDA16).



Improving staffing, operational effectiveness and flexibility:
o Increase staff “facetime” in IDA FCS with a focus on staff based in-country and
monitor progress through the “Facetime index.” 66



Promoting partnerships for a more effective response:
o Undertake joint RPBA as openings arise for engagement in the aftermath of conflict
in IDA countries.



Enhancing Financing for FCS/FCV:
o Implement the revised IDA resource allocation framework for FCS/FCV to
enhance targeting of IDA’s exceptional support and financial engagement in these
countries (Section IV.A below).
E.

SPECIAL THEME 5: GOVERNANCE AND INSTITUTIONS

105. Participants noted that good governance and strong and accountable institutions are
crucial for poverty reduction, fighting corruption, and development effectiveness in IDA
countries. Weak, non-transparent institutions are at the heart of the challenges many IDA clients
65

66

Countries eligible for exceptional IDA allocations to mitigate FCV risks identified on the basis of a cross-country risk scan
combining quantitative and qualitative assessments.
The proposed “Facetime” indicator will reflect World Bank staff time in-country, missions as well as international and local
staff and consultants based in the country.

- 45 -

face in achieving the twin goals of ending extreme poverty and boosting shared prosperity in a
sustainable manner. The inextricable link between poor governance and persistent poverty is
difficult to break as building and operating successful public institutions is a long-term challenge
for governments, even in ideal circumstances. Corruption undermines growth and prosperity by
not only siphoning away resources from their intended purposes, but also by preventing delivery
of critical services such as vaccines, school supplies and roads. The complexity of this challenge
is compounded by volatile conditions found in many IDA countries (particularly FCS), where
human security, social cohesion, political stability, and economic activity can be uncertain and
volatile.
106. While Governance and Institutions has been a long-standing core component of IDA,
Participants welcomed the ambition and intensified focus brought by introducing it as a new
Special Theme in IDA18. Since 1996, the World Bank has launched over 400 lending projects
focused on public sector governance issues in IDA countries with commitment amounts of over
US$14 billion. The complexity and depth of institutional reform affects components of each of the
Special Themes. A coordinated reform dialogue on Governance and Institutions under IDA18,
therefore, will highlight the priority and innovative areas with the potential for maximum impact
in IDA countries, while also ensuring institutional advances are leveraged in the other four Special
Themes and all other areas in which IDA works.
107. Participants highlighted that governance and institutional capacity touch the World
Bank’s work in all sectors – serving as a foundation for IDA’s effective investment in growth,
resilience, and opportunities. IDA supports client countries to build open, effective, and
accountable institutions for inclusive development. This involves a focus on both: (i) strengthening
of core systems at the center of government necessary for channeling resources to the bottom 40
percent; and (ii) development of a public sector grounded in transparency, which combines fiscal
transparency, technological innovation and citizen participation to increase trust between
governments and citizens. As a Special Theme, Governance and Institutions will facilitate an
integrated, multi-sectoral approach to public sector reform that builds on lessons learned and
promotes a results-driven delivery of IDA. Participants also noted that progress in governance and
institutional capacity often requires longer-term investments spanning more than a three-year IDA
cycle.
108. Participants welcomed IDA18’s focus on DRM, noting its importance for providing
governments with essential financing for development. A sound revenue base is a fundamental
underpinning for countries to deliver the services required to sustain the social contract between
citizens and the state. It can also help countries avoid dependence on development assistance and
foreign borrowing, while also serving as a catalyst for broader improvements in government
accountability, responsiveness, and institutional capacity. DRM must also focus on the quality,
fairness, and equity of domestic tax collection with an emphasis that revenues raised will not end
up taxing the poor more heavily. IDA18 will focus on increasing operations and TA to help IDA
countries achieve a share of revenue of least 15 percent of GDP – considered a threshold for a state
to function effectively – while minimizing market distortions and ensuring income growth for the
bottom 40 percent (Box 5).

- 46 Box 5. State of Tax in IDA Countries
Tax revenues of the general government
average about 16½ percent of GDP in IDA
countries (including blend), against 18½
percent in IBRD countries. Taxes in over onethird of IDA countries (36 percent) are below 15
percent of GDP, and fall short of what is needed
to fund basic state functions. A much larger
share (70 percent) of FCVs do not meet this
threshold for tax revenues.

IDA countries have raised tax receipts over the
last 15 years from an average of just under 14
percent of GDP at the start of the millennium to
16 percent in recent years. Taxes on goods and
services account for much of this increase, but
often affect the poor more than income taxes.
Source: IMF World Economic Outlook, April 2016

109. Participants highlighted that IFFs continue to be a core issue for IDA countries. IFFs
and recovery of stolen assets have significant developmental consequences in the context of the
Twin Goals, and are a focus of SDG 16, making it a critical area for IDA policy action. IFFs
impede efforts to strengthen revenue collection, constrain the ability to provide basic social
services and, more importantly, undermine the social contract between governments and citizens.
Participants urged IDA to employ IFFs assessments which will help them assess their exposure to
IFF outflows and inflows, and enable them to identify levels of risk, the nature and the challenges.
The Rapid Assessment Tool will inform SCDs and thus allow IDA countries to obtain a more
detail and action oriented profile of IFF risks, and their developmental impact.
110. Participants welcomed the inclusion of policy commitments fostering demand-side
governance including those on citizen engagement and open government. They noted that for
interventions supported by IDA to be successful and sustained, governments must develop
institutions that are capable, efficient, inclusive, and accountable to citizen needs. They
emphasized that IDA18’s focus on governance also equips client countries to create avenues and
opportunities for citizen engagement, and help build and maintain trust between the state and
citizens. Participants also emphasized the links between governance and gender equality,
highlighting the legal and regulatory inequities cited in the Women, Business, and the Law report
that hinder gains in women’s voice and agency. Reducing poverty and promoting shared prosperity

- 47 -

in a sustainable manner is predicated on institutions that are effective in not only solving the
problems of the past but responding to the changing needs of the citizens they serve.
111. The Governance and Institutions Special Theme is a core element for enhancing the
Value for Money proposition of IDA18. Participants emphasized that the policy commitments
of the Special Theme strengthen the core systems at the center of government necessary for
maximizing results for the bottom 40 percent while enhancing the efficient use of resources
without compromising quality. Commitments dedicated to public financial and expenditure
management contribute to the wider state-building goals needed for poverty reduction and
development effectiveness including ensuring transparent management of public finances,
enabling fund flows to finance public services, and a better allocation of resources in support of
investment priorities and implementation. The new World Bank procurement framework,
meanwhile, will help IDA countries to achieve better value for money as it gives the WBG the
space and capacity to significantly increase its support to IDA countries to develop their own
procurement systems.
112. Participants also noted that Special Theme’s focus on reforms promoting
transparency has the potential to be transformative. Open government reforms such as
deliberative transparency, citizen engagement, and freedom of information laws facilitate inclusive
decision making processes, strengthen accountability, and build citizen stakeholders’ capacity to
engage in development dialogue. Participants also welcomed the focus on IFFs and “radical”
transparency67 in the World Bank’s anti-corruption agenda. They also noted Governance and
Institutions’ ability to leverage key partnerships such as the Open Government Partnership (OGP),
and Global Partnership for Social Accountability to meet policy commitments dedicated to
transparency. It was recognized these policy commitments are just one part of an ambitious
transparency agenda which includes work around beneficial ownership, the Stolen Asset Recovery
Initiative, and Extractive Industries Transparency Initiative (EITI).
113. Governance and Institutions was strongly endorsed as a Special Theme in IDA18.
Participants supported the increased emphasis on DRM. They supported policy commitments
focused on strengthening the core of government operations around Public Financial Management,
procurement, public administration, and State-Owned Enterprise (SOE) performance with a focus
on improving downstream service delivery. They also strongly supported the commitment to
inclusive government around open government reforms and citizen engagement. Participants also
encouraged commitments around transparency and IFFs, a focus on governance in situations of
FCV, and the operationalization of the 2017 World Development Report (WDR) on Governance
and the Law. They also noted the importance of governance and institutions for the PSW. Finally,
they also appreciated the focus on data and analysis, continued emphasis on impact and results,
and the strengthened links between proposed commitments and WBG operations.
114. IDA18 Policy Commitments. Participants welcomed the IDA18 commitment to
significantly strengthen Governance and Institutions and agreed to the following policy
commitments:
67

Remarks by Jim Kim. “Tackling Corruption to Create a More Just and Prosperous World”. See
http://www.worldbank.org/en/news/speech/2016/05/12/remarks-by-world-bank-group-president-jim-yong-kim-at-anticorruption-summit-2016.

- 48 -



Strengthening DRM:
o Provide support to at least a third of IDA countries targeted at increasing their
Tax/Gross Domestic Product ratio through lending operations, ASA and technical
assistance including tax diagnostic assessments.



Improving public expenditure, financial management and procurement:
o Support at least 10 IDA countries in performing second or subsequent PEFA
assessments to inform preparation of their SCDs;
o Deliver MAPS2 in five IDA countries to accelerate the development of modern,
efficient, sustainable and more inclusive public procurement systems that take into
account national development objectives.



Strengthening active ownership of SOEs:
o Support at least 10 IDA countries on enhancing SOE performance through: (i)
Performance Agreements and/or (ii) increased transparency through published
reports on their SOE portfolio.



Supporting public administration performance for service delivery:
o Perform joint operations, TA, and/or ASA on sector-focused governance in 10 IDA
countries to identify and address institutional bottlenecks to service delivery with
the health, water, and/or education sectors.



Supporting institutional capacity to respond to pandemics:
o Support at least 25 IDA countries in developing pandemic preparedness plans;
o Support 25 countries in developing frameworks for governance and institutional
arrangements for multi-sectoral health emergency preparedness, response and
recovery.



Integrating citizen engagement and beneficiary feedback into service delivery
operations:
o Support projects in at least 10 IDA countries in the development and
implementation of user feedback and/or enhanced GRMs68 for service delivery that
ensure participation by women in these processes.



68

Strengthening open, transparent and inclusive governance through Open
Government commitments:

Enhanced GRMs include minimum standards on uptake, responsiveness, disclosure, and/or gender inclusion.

- 49 -

o Support at least one-third of IDA countries to operationalize reform commitments
towards the OGP agenda to strengthen transparent, accountable, participatory, and
inclusive governments.69


Mitigating IFFs:
o Perform IFFs assessments in at least 10 IDA countries to support the identification
and monitoring of IFFs.



Enhancing understanding of governance and institutions in situations of FCV:
o Strengthen and systematize Governance & Institutional analysis in half of RRAs
and at least three-quarters of RPBAs in IDA countries.



Operationalizing 2017 WDR:
o Plan for operationalization of 2017 WDR focused on reducing implementation gaps
and enabling adaptive approaches.

SECTION IV: IDA18 OPERATIONAL AND FINANCING FRAMEWORK
A.

ENHANCING VOLUMES AND TERMS OF IDA ASSISTANCE

115. Participants warmly welcomed the most innovative and ambitious IDA financing
package ever proposed. In addition to supporting the escalating demand for IDA resources, the
groundbreaking IDA18 innovative financing package – pioneering IDA market leverage and new
instruments by blending Partners’ grant contributions with capital market debt – represents a
paradigm shift and a significant improvement in IDA’s use of partner resources.
116. Participants called for a step change in IDA18 to help IDA countries’ meet financing
needs for achieving the 2030 goals – both in terms of Core and non-Core IDA financing,
emphasizing continued focus on IDA’s mandate to provide concessional financing to the
poorest countries. They acknowledged the unprecedented demand expressed for IDA18 resources
and agreed to an ambitious scale up in support as compared to IDA17, summarized in Table 1
below.

69

Open government activities include access to information, asset disclosure, citizen engagement, fiscal transparency, open
contracting, open data, participatory budgeting, service delivery, and social accountability.

- 50 -

Table 1. IDA18 Use of Resources (in SDR billion)
in SDR billion
1. Concessional
I. Core IDA
FCS/FCV2
o/w risk mitigation
3
Syria
Non-FCS
o/w IDA18 graduates4
II. Non-core IDA
CRW 5
Regional program
o/w Refugees6
Arrears clearance

IDA171
32.1
27.9
5.1
0.0
0.0
22.8
3.0
4.2
1.2
2.2
0.1
0.8

IDA18
45.3
37.4
10.3
0.4
0.7
27.1
0.0
7.9
2.1
5.0
1.4
0.8

2. Non-concessional
Transitional support7
Scale-up Facility8

5.1
2.3
2.8

6.4
2.0
4.4

3. Private Sector Window

0.0

1.8

Total
Total (in US$ billion)

37.2
52.1

53.5
75.0

Total estimated resources to FCS9

7.9

14.9

Grant element: concessional core IDA
Grant element: overall Replenishment

52%
48%

58%
49%

1 Reflects the commitment authority as of May 31, 2015, being the latest update available prior to the release of the FY16

allocations (SDR33.7 billion) plus US$5 billion resulting from changes to IDA's liquidity policy in FY16 . The change in the
liquidity policy channeled resources in the following way: i. CRW replenishment US$0.9 billion, ii. Refugee support for
Lebanon and Jordan US$0.2 billion, and iii. Scale-up Facility US$3.9 billion (see Board paper "Enhancing IDA’s Financial
Support in IDA17", February 27, 2016, IDA/R2016-0019/1).
2 FCS as per FY16 FCS list. In IDA18, the figure includes the IDA's overall support to countries eligible under the proposed

Risk Mitigation regime (Guinea, Nepal, Niger and Tajikistan). This regime did not exist in IDA17 (see special theme paper
"Fragility, Conflict and Violence").
3Assumed to be granted under appropriate conditions.
4 Bolivia, Sri Lanka, Vietnam.
5 Replenished amount in FY16 compared to SDR0.6 billion (US$0.8 equivalent) in IDA17 Deputies' Report.
6 In IDA17 refers to support for refugees in Jordan and Lebanon.
7 In IDA17 represents transitional support to India.
8 As approved by the Board of Executive Directors in IDA17.
9 Includes estimated allocations of non-core IDA to FCS. Final amounts would depend on actual allocations of non-core

resources across countries dependent on needs determined during the replenishment period.

- 51 -

Concessional IDA Financing
Core Financing70
117. At a time of increased ambitions, challenges and risks, Participants agreed that a
significant scaling-up of Core funding is needed in IDA18 to match the global community’s
ambitions for achieving the SDGs. IDA18 Core funding will provide unearmarked support to all
IDA-eligible countries for priority interventions that have a strong and direct impact on promoting
sustainable growth and poverty reduction. The opportunities and challenges in these areas are
outlined below.
118. To tackle urgent needs, Participants agreed to revise IDA’s resource allocation
framework which – when taken together with the higher level of overall financing – would
enable a doubling of concessional Core support to FCS/FCV relative to IDA17. Participants
agreed that the PBA formula should remain the main vehicle for allocating core concessional
resources at the country level and that set-asides should remain limited. They endorsed adjustments
to the framework for allocating core concessional resources that would allow for a significant scale
up in IDA’s support to FCS/FCV (including potential TAR support to Syria under appropriate
conditions) and to small states. At the same time, because of the increased core envelope,
Participants noted that the enhancements for FCS/FCV will not come at the expense of better
performing countries facing their own significant development challenges. In endorsing the
adjustments, Participants noted that the resulting allocation system would: (i) preserve its
performance orientation; (ii) build on IDA’s implementation experience, including the need for
striking a balance between rules and judgment; and (iii) help target resources to countries facing
fragility and conflict, beyond the harmonized lists of FCS. The IDA18 allocation framework
incorporates the following revisions relative to IDA17:

70

71



An increase in the annual minimum base allocation (from SDR4 million to SDR15
million), which would enhance support to small states, many of which are vulnerable and
fragile. A similar increase was also agreed for the exceptional TAR;71



An increase in the poverty orientation of the PBA formula: Building on the changes already
introduced in IDA17, the CPR exponent in the PBA formula will be reduced from 4 to 3
to enhance its poverty orientation. This adjustment will particularly benefit FCS as they
are generally at the low end of the CPR spectrum;



Removal of the 20 percent grant discount and MDRI netting out: These adjustments would
primarily benefit FCS – most of which are MDRI beneficiaries and/or receive all or part of
their IDA assistance on grant terms. In addition, given their low CPR, these countries
currently do not significantly benefit from the redistribution of resources from the grant

Core Financing is the basis for IDA’s financial support for the implementation of the Bank’s CPFs and Country Engagement
Notes. IDA Core Financing supports national development priorities, as per IDA’s country-based development model.
During IDA18, TAR will follow the implementation arrangements detailed in Annex 3. As in IDA17, TAR will continue to
support countries taking advantage of opportunities to build stability and resilience following the cessation of a conflict or the
commitment to a major change in the policy environment.

- 52 -

discount and MDRI netting out.72 These adjustments have the added benefit of simplifying
the PBA framework, and enhancing its transparency; and


Establishment of the Risk Mitigation Regime: Support under this regime would be
exceptional and it would allow additional resources to target specific drivers of FCV,
mitigate identified fragility risks, and support four pre-identified countries (Guinea, Nepal,
Niger, and Tajikistan) that present increased risks of fragility.73

119. These adjustments in the allocation framework build on the progress IDA has made
in recent years to better respond to the challenges and opportunities of its diverse client base,
while preserving strong incentives for performance and avoiding the proliferation of new setasides. In addition, as a result of the increased core envelope for IDA18, implementing the
proposed adjustments will not come at the expense of better performing countries facing their own
significant development challenges.
Non-Core Financing74
120. Strengthening support for regional projects. Participants supported scaling up of
financing for IDA’s Regional Program to SDR5 billion.75 They also agreed that the financing terms
– including grant/credit distribution – of Regional Program financing be fully harmonized with
those of concessional Core financing. 76 In particular, eligibility for grant support under the
Regional Program would be expanded to IDA-only non-gap countries at moderate risk of debt
distress.77 Furthermore, Participants agreed to adjust the eligibility criteria for the 20 percent cap
under the Regional Program.78 Beginning IDA18, rather than being linked to the size of a country’s
annual allocation, eligibility for the 20 percent cap will be extended to small states – i.e., countries
with populations of 1.5 million or less. 79
121. Refugee Sub-Window under the Regional Program. Participants agreed to establish a
refugee sub-window in the amount of SDR1.4 billion within the Regional Program to help IDA
countries that host refugees. Support from the sub-window will target both refugees and host
communities in order to promote more effective, equitable and sustainable solutions to this
development challenge. Financing from the sub-window will be provided on more favorable
financing terms and volumes relative to concessional core and Regional Program financing to
72

73
74
75

76

77

78

79

While the grant discount provided a mechanism to address the moral hazard related to the link between IDA terms and debt
sustainability, mechanisms in the recently updated NCBP help mitigate this concern.
Details on the implementation and governance arrangements are in Annex 4 of this report.
Non-core Financing includes resources that would allow IDA to respond to key specific needs of its clients in IDA18.
This includes a SDR1.4 billion sub-window for refugees. The allocation for regional projects increases from SDR2.1 billion
in IDA17 to SDR3.6 billion in IDA18.
Grant-eligibility under the Regional Program in IDA17 was limited to IDA-only non-gap countries at high risk of debt distress.
For these countries, resources leveraged under the program were provided in grant terms. Financing to other IDA countries,
including IDA-only non-gap countries at moderate risk of debt distress, was provided on applicable IDA credit terms.
Similar to concessional Core Financing, Regional Program financing for these countries would be provided as a mix of grants
and credits.
Through IDA17, national contributions to qualified regional projects in countries with annual IDA allocations of SDR13
million or below were capped at 20 percent of their annual allocation.
This will apply to activities that qualify for regional IDA leveraging; other activities would be fully financed from national
IDA, or from other resources.

- 53 -

motivate governments of host countries to address the development needs of refugees. Governance
procedures, eligibility and allocation criteria and the proposed financing terms are in Annex 5.
122. Enhancing IDA’s capacity to respond to crises. Participants agreed to a CRW allocation
of SDR2.1 billion to support IDA countries’ response and preparedness against severe natural
disasters, economic crises, and health emergencies. They also agreed that if warranted by
exceptional circumstances this amount could be exceeded, subject to approval by IDA’s Executive
Directors as in IDA17. They also agreed to align the governance arrangements for accessing the
CRW for economic shocks with those for natural disasters and health emergencies. Management
will continue to follow the two-stage process in all CRW cases, and will ensure Board involvement
and oversight through consultation in the first stage, and approval of resources and specific
operations simultaneously in the second stage, i.e., at the time of Board approval of CRW-financed
operations. For countries exposed to a severe natural disaster that results in damages and losses in
excess of one-third of GDP, they agreed to allow for the adjustment of IDA financing terms based
on an updated debt sustainability analysis shortly after the crisis. In addition, to further enhance
IDA’s capacity to respond to crises, Participants endorsed the introduction of CAT-DDOs for IDA
countries (Paragraph 51).
123. Arrears clearance. Participants supported IDA retaining its capacity to support countries
that may re-engage with IDA during the IDA18 period, including through exceptional support
under IDA’s systematic approach to arrears clearance as warranted by the country context.80 They
agreed to allocate SDR0.8 billion for this purpose in IDA18.
Non-concessional IDA Financing
124. IDA18 Scale-up Facility. Participants supported SUF in IDA18 to provide financing to
blend and IDA-only countries on IBRD lending terms to enhance support for high-quality,
transformational single country and regional operations with strong development impact. The SUF
will focus on interventions that would help clients remove critical constraints to development.
Implementation arrangements under the facility should also reflect due consideration of a
country’s capacity to absorb the resources and a proposed operation’s consistency with IDA18
policy priorities and the WBG goals. Participants agreed that the design of the facility would build
upon early experience gained during implementation of the IDA17 SUF. They also agreed that
SUF resources should be allocated to Regions in line with the PBA regional shares, excluding
countries at a high risk of debt distress while avoiding concentration of SUF resources in a few
countries only. During implementation, they further recommended that due consideration be paid
to individual countries’ debt situation, while ensuring consistency with IDA’s Non-Concessional
Borrowing Policy and the IMF Debt Limit Policy. Participants further advised that the allocation
of SUF resources should be appropriately balanced between IDA-only and blend countries. In this
regard, they asked that Management should attempt to achieve a distribution of SUF resources to
groups of eligible IDA-only countries and blend countries that broadly conforms to those groups
of countries’ overall shares of the PBA. As a soft filter, particular attention will be given to the
ability of an operation to crowd in resources – including from the private sector, support resilience
building (e.g., investments related to climate change, disaster risk reduction or pandemic
preparedness), deliver benefits beyond or across borders, and/or drive economic transformation,
80

See “Further Elaboration on a Systematic Approach to Arrears Clearance,” (June 2007).

- 54 -

including through support of countries’ NDCs agreed as part of COP21. Priority will be given to
promoting integration within a regional grouping by supporting modern economic infrastructure
in line with low carbon development (Annex 6). Implementation experience will be reviewed at
the MTR and adjusted, if necessary.
125. Graduation and Transitional Support. Participants agreed to maintain IDA’s current
flexible and holistic graduation process, which has helped countries make a successful and lasting
exit from IDA. They agreed that, at present, there is no pressing case to modify IDA’s operational
Gross National Income (GNI) per capita cutoff. They noted that while graduation from IDA is a
positive milestone, transitional support may help in ensuring a smooth and successful graduation,
particularly in cases where graduation could adversely impact a country’s capacity to maintain
development momentum if it leads to a significant drop in available financing, increasing the risk
of reverse graduation. In this context, Participants underscored the importance of utilizing the
period when clients are in IDA/IBRD Blend status to prepare for a smooth and successful IDA
graduation. They looked forward to discussing a longer term approach to transition at the MTR,
which would be informed by further holistic analysis and options from Management, taking into
account the outcome of IBRD capital discussions. The analysis will include consideration of the
role of the blend period to ensure graduation readiness, with a focus on future IDA graduates. At
the MTR, the cap on blends will also be discussed.
126. Participants congratulated Bolivia, Sri Lanka and Vietnam on their recent
development gains and on the achievement of graduating from IDA at the end of IDA17 and
endorsed the provision of exceptional IDA transitional support to them in IDA18 only, on
IBRD lending terms. In the absence of transitional support, WBG net transfers to these countries
will fall. Participants acknowledged that these countries are facing increasingly complex
challenges and global economic headwinds. Exceptional IDA transitional support to Bolivia, Sri
Lanka and Vietnam will be provided in IDA18 in the amount of 2/3 of the resources that these
countries received in IDA17 on IBRD lending terms.81 Front-loading of transition assistance will
be avoided unless there is a compelling reason to do so. The level of transitional support to these
countries could be revised at the MTR, depending on the outcome of the IBRD capital discussions.
In order to help ensure a smooth and permanent transition and support the countries in building
sustainable market access, Management agreed that, within the constraints allowed by IBRD’s
current capital position, it will make best efforts to stretch IBRD lending to the three transition
countries levels currently planned for IDA18, subject to creditworthiness considerations.
127. Participants supported the temporary suspension of the decision to exercise the
acceleration clause for Bolivia, Sri Lanka and Vietnam until the IDA18 MTR discussions.
They noted that the implementation of the acceleration clause could place too much burden on the
IDA18 graduates and hinder the desired support for a smooth transition. In the context of the
broader graduation analysis described above, Management will then make a proposal regarding
acceleration. If a decision is taken at the MTR to resume the acceleration clause, Participants
agreed that FY20 would be the earliest point at which acceleration could take effect given the need
for affected countries to incorporate the impact in their budget planning.

81

SDR99 million, SDR303 million and SDR1.593 billion for Bolivia, Sri Lanka, and Vietnam, respectively.

- 55 -

128. Private Sector Window. To support private sector development in IDA countries,
Participants endorsed the creation of a SDR1.8 billion IFC-MIGA PSW in IDA18. The PSW will
draw on IFC’s and MIGA’s long-standing experience in emerging markets, and further step up
their support to IDA-only countries while also providing greater attention to FCS (Section III.A.
“Creating Opportunities for the Private Sector”).
Lending Terms
129. Concessional IDA financing. Participants agreed to retain IDA17’s lending terms into
IDA18 for financing from the concessional windows, subject to exceptions listed in the next
paragraph. For IDA-only non-gap countries, grant eligibility will continue to be based on risk of
debt distress ratings: countries at high risk of debt distress will receive their IDA allocations fully
on grant terms; countries at moderate risk of debt distress will receive IDA concessional financing
in a mix of 50 percent credit and 50 percent grant terms; and countries at low risk of debt distress
will receive their concessional IDA resources on credit terms.
130. Participants also agreed to the following: (i) the grant/credit composition and terms of
credit financing for small island states in IDA17 will be continued and extended to all IDA-eligible
small states in IDA18 (four countries will benefit from this extension during IDA18: Bhutan,
Djibouti, Guyana, and Timor-Leste); (ii) the lending terms of the Refugee sub-window under the
Regional Program are described in Annex 5; and (iii) in order to meet the Bank/Fund minimum
concessionality requirement of 35 percent, blend terms will be revised from 5/25 years
(grace/maturity period) to 5/30 years.
131. Non-concessional IDA financing. Participants agreed to the expansion of nonconcessional financing, introduced in IDA17 through the SUF endorsed at the IDA17 MTR. They
also agreed that such non-concessional financing be offered at IBRD lending terms. Participants
also agreed to offer non-concessional financing on IBRD lending terms to Bolivia, Sri Lanka, and
Vietnam during IDA18 as transitional support to help better address the need for a smooth
transition from IDA to IBRD.
132. Accelerated repayments. The terms of IDA credits provide for accelerated repayments of
credits for countries that have a per capita GNI level that exceeds a specific threshold and are
IBRD creditworthy. IDA has included an accelerated repayment clause in legal agreements of
regular and blend credits approved since 1987. This allows it to double the principal repayments
of the credit or increase the interest rate, subject to the approval of IDA’s Executive Directors,
after considering the borrower’s economic development. The GNI per capita threshold was
originally set as exceeding the historic cut-off for five consecutive years. However, for agreements
after 1996 it was lowered to exceed the operational cut-off for three consecutive years. As stated
in paragraph 127, Participants noted that the implementation of the acceleration clause could place
too much burden on the IDA18 graduates and hinder the desired support for a smooth transition
and supported the temporary suspension of the decision to exercise the acceleration clause for
Bolivia, Sri Lanka and Vietnam until the IDA18 MTR discussions.
133. Recommitment of resources from canceled projects by IDA graduates. Participants
agreed that it was important to provide the flexibility and incentives to restructure ongoing IDAfinanced operations, including those in IDA graduates. As such, Participants supported the

- 56 -

proposal to allow IDA graduates to recommit resources from canceled projects on IBRD lending
terms. The cancelled funds will be used for recommitments within the same FY, and in all cases
before June 30 of the last year of the IDA replenishment cycle within which the cancellation
occurs.
B.

TRANSFORMING THE MANAGEMENT OF IDA’S FINANCIAL RESOURCES

A New Integrated Finance Model to Leverage and Scale-Up IDA Resources
134. Participants welcomed IDA’s largest and most innovative financing package ever.
They agreed that in addition to supporting escalating demand for IDA resources, this financing
package maximizes the efficient use of partner resources by IDA, utilizing the institution’s
leveraging capacity and significantly enhancing IDA’s value for money. They endorsed a total
replenishment of SDR53.5 billion (equivalent to US$75.0 billion) 82 for IDA18 which would
constitute the IDA18 commitment authority envelope.
135. Deputies supported the introduction of a new, integrated financing framework for
IDA18 that includes issuance of market debt by IDA as a means to significantly scale up
replenishment resources. This new hybrid model combines partner contributions – in the form
of IDA18 contributions and reflows from earlier contributions – with external debt funding,
complementing the existing CPL program with access to capital markets (see Table 2 for an
illustration of all resources under the new framework). The transformative package will greatly
increase efficiency in the use of shareholder contributions and capital, significantly enhancing
IDA’s Value for Money proposition. Specifically, the new model enables IDA to:


Scale-up IDA’s capacity to support the 2030 ambitions without an increase in aggregate
partner contributions, bringing the ratio of every dollar of partner contributions to
replenishment commitment authority from 1-to-2 in IDA17 to about 1-to-3 in IDA18;



Retain the focus on concessional financing in the mix of IDA’s terms, and maintain strong
emphasis on IDA’s core mandate to support the poorest countries and to ensure debt
sustainability for IDA’s borrowers; and



Ensure long-term financial sustainability of the hybrid model through a prudent risk
management framework that balances leverage with robust capital adequacy and liquidity
positions consistent with prudential standards.

136. Participants warmly welcomed the triple-A rating announced by two rating agencies
in September 2016 – IDA’s first ever public rating. Recognizing the exceptional value and
leveraging power of the new hybrid financing framework, Participants applauded the credit rating
as historic and an important step towards IDA accessing capital debt markets – noting IDA’s
unique policy mandate, the important role of partner contributions, the solid track record of
repayment, sound financial management (IDA’s as well as IBRD’s), and the strength of IDA’s
balance sheet as being among the key factors underpinning this evaluation (Box 6).

82

At the IDA18 foreign exchange reference rate of US$/SDR1.40207.

- 57 -

137. Participants welcomed the benefits of existing capital market capabilities in the
World Bank and Management’s focus on establishing a sound leveraging framework to
ensure successful execution of the new financing model. IDA will build on IBRD’s expertise,
experience and governance to set up the functions necessary for IDA bond issuance. Moreover,
establishing the appropriate prudential standards necessary for this hybrid financing framework
will secure IDA’s long-term financial sustainability, based on key leveraging principles:


IDA’s ability to continue fulfilling its mission in the future, as well as predictability and
stability of financing for clients;



IDA’s ability to service debt without restricting future lending capacity, without negatively
affecting its leveraging potential at future replenishments, and without creating hidden
liabilities for Partners; and



IDA’s ability to adjust its policies at future replenishments, ensuring that decisions for
IDA18 do not pre-commit future funding levels, lending volumes, and allocation
principles.
Box 6. IDA’s Triple-A Credit Ratings

In preparation for IDA issuing bonds in the capital markets, agreed with Partners for the IDA18 financing
framework, IDA obtained two triple-A credit ratings from S&P and Moody’s in September 2016.
IDA’s first ever public ratings are not only historic for IDA, they also help pioneer a new model to scale up
financing for sustainable development in the poorest countries. As one of the most concrete and significant
proposals to date on the AAAA, the transformation of IDA’s financing framework through capital market access
will help deliver on the Billions to Trillions agenda necessary to achieve the SDGs and match the ambitions, and
challenges, of the 2030 agenda. In this context, IDA’s triple-A ratings – the highest credit rating possible – represent
a landmark in private sector capital mobilization for development finance, allowing IDA to leverage its significant
capital base. Augmenting IDA finances through capital markets represents one of the most radical transformations
in IDA’s 55-year history. The innovation offers donors significant additional value for money, with every dollar
contributed being matched about one-for-one with both debt and internal resources to generate about US$3 in
finance to IDA clients in IDA18 compared to US$2 in IDA17.
The triple-A credit ratings – the foundation for the leveraging paradigm and market access to be implemented
successfully and sustainably – are a testament to IDA’s exceptionally strong equity and financial position,
membership and shareholder support, management and governance structure, and its critical role in the global
development agenda.
Key factors specifically underpinning IDA’s triple-A credit rating encompass IDA’s institutional strength and solid
performance track record, evidenced (i) in S&P’s assessment of a very strong business profile (supported by IDA’s
public policy mandate, track record of shareholder support, and high quality of governance) and an extremely strong
financial profile (reflecting IDA's very significant equity and ample, well-managed liquidity); and (ii) in Moody’s
very high assessments of IDA's capital adequacy as well as liquidity, and consideration of members’ strong
willingness to support IDA. S&P also noted that “non-borrowing members generally view IDA as one of the most
efficient institutions of its kind; although IDA is not the only concessional window in the Multilateral Institution
asset class, it exceeds the next-sized windows by a considerable multiple.”
Both credit ratings were issued with a stable outlook, with rating agencies noting their expectations for continued
strong IDA membership support and replenishments in parallel with increased leverage. Both S&P and Moody’s
evaluations noted that downward pressure on IDA’s triple-A rating could emerge in case of material default by
borrowers/increase in liabilities (sufficient to lead to a considerable deterioration in capital adequacy ratios) and/or
markedly lower than expected replenishments (with key development partners forgoing or significantly
downsizing/delaying their participation).

- 58 -

138. Participants welcomed that central to a prudent financial platform for IDA’s
leveraging will be a robust capital adequacy framework, including an overall lending limit
commensurate with IDA’s risk-bearing capacity. A credible capital adequacy policy entails
readiness to take corrective measures to protect the triple-A rating of the leveraged model, e.g., by
adjusting the commitment authority in future replenishments to align lending levels with IDA’s
capital. Participants noted IDA’s financial management track record, as well as its ability to build
on the experience, policies and skills of IBRD. They welcomed the assessment that the policies in
the IDA18 replenishment are, from a financial sustainability point of view, ambitious and prudent.
139. Participants recognized the flexibility offered by the new integrated framework,
including the potential to scale up financing in response to a situation of severe and large scale
global crisis where it was judged critical to draw forward financing capacity. Participants noted
that it is necessary to leverage with prudence in non-crisis times to allow stability in future
financing to clients and increase its capacity to respond to major crises, if they occur.
140. Participants noted that IDA18 choices do not prejudge decision-making for future
replenishments. Policies on the scale, funding and allocation of IDA resources, reflecting the
three main financial policy levers – replenishment size, partner contributions, and concessionality
– can be adjusted over time according to evolving circumstances and will be decided in the context
of future replenishments. Choices would be made within the limits of appropriate credit risk,
capital adequacy and exposure management frameworks, including overall lending limits and
financial ratios commensurate with IDA’s risk-bearing capacity. Participants also discussed the
possibility of leveraging IDA’s assets on IBRD’s balance sheet and agreed that such approach
would not be implemented in IDA18, but could be discussed in the future.
141. Participants affirmed their strong support for IDA, and confirmed the importance
and continued role of partner contributions in the integrated financing framework. While
the changes introduced in the IDA18 financing framework offer a historic opportunity, Participants
recognize they also require commensurate joint commitment to address substitution risks – the
risks that access to capital markets leads to a reduction in partner contributions. Grant contributions
and strong shareholder support will continue to remain a key element of IDA’s financial
framework, for the proposed integrated business model to successfully leverage funds and be
financially sustainable over the long term. In the context of significant 2030 demands and agreed
ambitions, donors and clients emphasized the importance and principle of additionality as central
to the new model. Deputies also reiterated that the commitment made under MDRI should fully
finance the costs to IDA of providing MDRI debt relief, and that the financing of these costs would
be additional to regular IDA contributions.

- 59 -

Table 2. IDA18 Financing Framework Summary
(SDR Billions)

TOTAL PARTNER RESOURCES
Total New Partner Contributions
Partner Compensation for MDRI Debt Forgiveness

IDA17
AGREED 1/
SDR bil
20.3
17.3
3.0

Change
over IDA17

IDA18
SDR bil
19.4
16.5
2.9

-4%
-5%
-3%
3/

29%

TOTAL INTERNAL RESOURCES

11.9

15.5

DEBT FINANCING

2.3

18.6

713%

Concessional partner loan (net of grant element)

2.3

2.8

21%

Market debt

15.9

TOTAL

34.6

Total (in US$ billion)

52.1

55%

53.5
2/

75.0

4/

44%

IDA17 Replenishment figures are as agreed. IDA17 Scale-up Facility approved by IDA’s Executive Directors in 2016 is not
included.
2/
Valued at IDA17 reference exchange rates.
3/
Internal Resources include:
- Reflows: SDR 14.2b (US$19.9b)
- Carryforward of Arrears clearance: SDR 0.8b (US$1.1b)
- IBRD transfers expected: SDR 0.3b (US$0.43b)*
- IFC transfers expected: SDR 0.1b (US$0.2b)*
* IBRD and IFC transfers include additional investment income that IDA can potentially generate from a three-year
encashment schedule
4/
Valued at IDA18 reference exchange rates.
1/

Commitment Authority in the New Financing Framework
142. Sources of IDA18 commitment authority. IDA18 commitment authority will be backed
by partner grant contributions, internal resources of IDA, including transfers83 from the IBRD and
the IFC, by debt resources, including concessional loans from Partners and market borrowings,
and by other resources, as available (Figure 11). Partner contributions supporting IDA18
commitment authority are provided as part of the IDA18 replenishment itself as well as under the
MDRI replenishment. Deputies noted that Management will review IDA's commitment authority
and report to IDA’s Executive Directors on a regular basis. This review will take into account the
status of partner financing commitments to the IDA18 replenishment and the MDRI
replenishment. In the event of a shortfall of partner commitments, the level of IDA18 commitment
authority could be adjusted over the course of the IDA18 period. Management will consult with
the Board and, as necessary, make adjustments to the level of IDA18 commitment authority. Such
83

The IBRD transfers are made out of its net income and are subject to annual approvals by the IBRD’s Board of Governors
after considering IBRD’s reserve retention needs as required by IBRD’s Articles. The IFC designated grants to IDA are
provided from its retained earnings and are subject to annual approvals by IFC’s Board of Executive Directors, which are then
“noted with approval” by the IFC Board of Governors.

- 60 -

adjustment will be guided by the financial and risk management framework and principles of
IDA’s long-term financial sustainability.
Figure 11. IDA17-18 Resource Mobilization – Partner Contributions and Other Resources
(US$ billions)
IDA17

IDA18

Debt
financing
3.5

MDRI
4.1

Partner
contributions
(excl MDRI)
23.1

MDRI
4.5

Internal resources
(including
transfers)
18.0

143.

84

Partner
contributions
(excl MDRI)
26.1

Debt
financing
26.1

Internal
resources
(including
transfers)
21.7

Deputies endorsed funding volumes from each source as follows:



Deputies endorsed SDR16.5 billion (equivalent to US$23.1 billion) of total partner grant
contributions for IDA18 Replenishment. IDA18 partner grant contributions comprise:
(i) regular contributions of SDR13.9 billion (equivalent to US$19.5 billion), including
contributions to cover foregone principal on grants; (ii) grant element of SDR0.9 billion
(equivalent to US$1.3 billion) from CPL contributions; and (iii) contributions to cover
IDA’s debt relief costs under the HIPC Initiative in IDA18 (FY18-20) amounting to
SDR1.5 billion (equivalent to US$2.1 billion).84



Deputies reaffirmed the need to provide additional partner contributions for the MDRI
replenishment of SDR2.9 billion (equivalent to US$4.1 billion), to cover IDA’s debt relief
costs due to the MDRI during IDA18 as agreed under the MDRI.



Deputies agreed to the proposed use of IDA’s internal resources in the amount of
SDR15.5 billion (equivalent to US$21.7 billion), including SDR14.2 billion (equivalent to
US$19.9 billion) of internal reflows and SDR0.8 billion (equivalent to US$1.1 billion)

Deputies noted the additional amount in the range of SDR0.1 billion (equivalent to US$0.2 billion) to SDR0.3 billion
(equivalent to US$0.4 billion) of pledges expected from contributors whose internal authorizations/budget processes are not
sufficiently advanced to allow complete pledging at the final replenishment meeting, but where pledges are expected by the
Spring Meetings, 2017. The lower end of the range (SDR0.1 billion) is included in the total partner grant contribution amount.
Any additional pledges above SDR0.1 billion would be used to augment total IDA18 financing. IDA18 Commitment Authority
will be based on pledges confirmed by Unqualified Instruments of Commitments.

- 61 -

resources set aside for arrears clearance carried over from IDA17, subject to approval by
IDA’s Executive Directors.85


Deputies noted that a formula will provide guidance as to the replenishment funding from
expected transfers from IBRD net income. The current estimate is of approximately
SDR0.3 billion (equivalent to US$0.443 billion). Deputies also noted grants from IFC
amounting to SDR0.1 billion (equivalent to US$0.2 billion). 86 These transfers will be
subject to approvals by IBRD’s Board of Governors and IFC’s Board of Executive
Directors after considering reserve retention needs.



Deputies supported implementation of the integrated financial framework, including
necessary actions to enable IDA to issue market debt in IDA18, upon approval by IDA’s
Executive Directors. They also noted that assessments show that the proposed financial
model is robust and sustainable into the future, and welcomed further exploration and
enhancement of IDA leverage and balance sheet optimization in upcoming years as lessons
learned are obtained with implementation of the new model. Deputies acknowledged that
market debt issued by IDA would significantly increase IDA’s commitment authority in
IDA18 by SDR15.9 billion (equivalent to US$22.3 billion).



Deputies agreed with Management’s proposal to continue using CPLs in IDA18 upon
approval by IDA’s Executive Directors. They acknowledged that CPLs would increase the
resources available for commitment authority in IDA18 by SDR3.7 billion (equivalent to
US$5.2 billion). They further acknowledged that SDR0.9 billion (equivalent to US$1.3
billion) of this amount would be recognized as grant equivalent contributions, as shown in
Table 1a and Table 1b of Annex 11.

144. Partner grant contributions (subscriptions and contributions) of SDR16.5 billion, as
shown in Table 1a of Annex 11, accounting for 31 percent of the total resources, continue to be
the key source of IDA18’s commitment authority and reflect the agreement reached among
Partners. Partner contributions to the MDRI replenishment of SDR2.9 billion are governed by the
MDRI Resolution. 87 Under the terms of the MDRI Resolution, IDA has undertaken to reflect
changes in actual and estimated costs of MDRI debt forgiveness by making adjustments to partner
contributions to MDRI every three years – normally in conjunction with regular replenishments.88
Revised Compensation Schedule and Partner Contribution tables to the MDRI Resolution,
reflecting the updated cost estimates for the MDRI as of June 30, 2016, have been provided to
members. Corresponding adjustments to reflect these updated amounts are also required in the
payment schedule attached to each member’s Instrument of Commitment for its MDRI
subscription and contribution.89 Section C below provides further information regarding partners’

85

86

87

88
89

Internal reflows include credit repayments received from both current and past IDA borrowers, as well as resources from
IDA’s liquid assets including investment income.
These amounts include the additional investment income of US$10 million for IBRD and US$4 million for IFC, which IDA
can potentially generate from a three year encashment schedule.
IDA (2006). Additions to IDA’s Resources: Financing the Multilateral Debt Relief Initiative: IDA Resolution No. 211 adopted
by IDA’s Board of Governors on April 21, 2006 (the “MDRI Resolution”).
Paragraphs 1(f), 2(c) and 2(d) of the MDRI Resolution.
Members will be notified of the necessary amendments to their MDRI Instruments of Commitment and the payment schedule
following adoption of the IDA18 Resolution by the Board of Governors.

- 62 -

contributions to finance debt relief costs under the HIPC Initiative, the MDRI and arrears clearance
operations.
 New and prospective Partners. Algeria and Pakistan have pledged to become new IDA
contributing Partners and the Islamic Republic of Iran and Greece have pledged to
reengage. Participants noted that, in their view, there are still a number of countries that
have the economic capability to contribute to IDA but have not yet done so. They
welcomed Management’s efforts to reach out to these countries and agreed that efforts
should continue to encourage them to become IDA Partners.


Additional grant contributions. Partners may, at any time, make additional grant
contributions to the amounts shown in Table 1a of Annex 11.



Voting rights. Deputies agreed to the continuance of the existing IDA voting rights system
for the IDA18 period and that the grant element of CPLs be recognized in the voting rights
allocation. Deputies requested a review of the IDA voting rights arrangements for further
discussion at the MTR.

145. Internal resources. Participants endorsed IDA’s existing practice of using internal
resources to complement partner resources. Upon reviewing IDA’s long-term financial capacity
and the supported analysis presented during the replenishment discussions on IDA’s financial
capacity, they agreed that IDA would have adequate financial capacity to continue to support
future replenishments. They noted that credit repayments constitute an important component of
internal resources and recognized the impact of the MDRI, the HIPC Initiative and IDA grants on
credit reflows. Deputies confirmed their commitment to compensate IDA for forgone reflows due
to the MDRI and the HIPC Initiative on a “dollar-for-dollar” basis. They agreed to integrate the
compensation for grant principal forgone with the regular contribution in line with overall changes
in the IDA18 financing framework.
146. IBRD and IFC contributions. Participants noted the undertaking for an estimated
contribution of US$0.63 billion 90 from IBRD and IFC resources in support of the IDA18
replenishment and signifying solidarity among the WBG sister organizations. Such transfers are
approved annually by the IBRD’s Board of Governors and the IFC’s Board of Directors based
upon evaluations of these institutions’ annual results and considering reserve retention needs.91
147. Debt Financing. Participants endorsed the expansion of debt-funded leverage and the
introduction of market debt in the IDA18 financing framework. As noted above, they emphasized
the principles of financial sustainability that would guide the level of debt financing.
148. Concessional Partner Loans (Annex 9). Participants acknowledged that CPLs
complement market debt in enhancing the size of IDA18’s commitment authority. They noted that
concessional loan contributors would receive burden sharing recognition through voting rights
based on the ‘grant element’ of the loan. Participants also noted that loan funding will not be
earmarked for any purpose and will be used as part of IDA’s overall pool of funding. They
90

91

This amount includes the additional investment income of US$14 million, which IDA can potentially generate from a three
year encashment schedule.
In IFC’s case, the transfer takes place after the designation approved by the Board of Directors is “noted with approval” by
the Board of Governors at the Annual Meetings.

- 63 -

endorsed the principles of ensuring transparency, equal treatment, additionality (i.e., no
substitution) and expressed their commitment to protect IDA’s long-term financial sustainability.
In this context, they agreed that Partners who are providing concessional loans to IDA18 should
provide at least 80 percent of their benchmark Minimum Grant Equivalent Contribution (as defined
below) in the form of a basic grant contribution, and at least 100 percent of the benchmark
Minimum Grant Equivalent Contribution in the form of a basic grant equivalent contribution
(grant contribution plus the grant element of the CPL), where the benchmark Minimum Grant
Contribution will be defined flexibly as follows:


The benchmark Minimum Grant Contribution will be defined as 100 percent of their
previous basic grant equivalent contributions (which would include basic contributions
from grants and grant element from a CPL) based on the lower of IDA16, IDA17, or a
combination of previous replenishments (2 x IDA16 – IDA17 = IDA18), as the Partner
prefers.



The Minimum Grant Contribution benchmark could be based on the Currency of Pledge,
National Currency or SDR amounts, as the Partner prefers.

149.

Participants noted Management’s proposed terms for the CPLs in IDA18 as follows:



Maturity: Maturities would be either 25 or 40 years in line with the terms of IDA’s credits.



Grace period: The grace period would be five years for a 25-year loan or ten years for a
40-year loan.



Principal repayment: Principal repayments of concessional loans would begin after the
grace period. At that point, a straight-line amortizing repayment schedule would be applied,
minimizing debt servicing costs to IDA and closely matching the repayment terms of the
underlying IDA credits. For 25-year credits, principal would amortize at a rate of 5 percent
per annum while for 40-year credits, principal would amortize at a rate of 3.3 percent per
annum.



Coupon/Interest: IDA concessional loans would have an all-in SDR equivalent coupon of
up to 1 percent.92 Partners have the option to provide additional grant resources to bridge
the difference between the coupon rate on the CPL and their targeted coupon rate if
higher.93 For CPLs denominated in currencies with negative interest rates corresponding
to the maximum SDR 1 percent interest rate allowed by the framework, Partners have the
additional option to provide a CPL with coupon rate equivalent to 0 percent in the CPL
currency and to meet the remaining grant element requirement of the framework by
providing a larger volume of CPLs. 94 A standard approach will be applied under the

92
93

94

The all-in cost may also be achieved by providing additional grants to ensure coupon equalization.
The “targeted rate” is the desired coupon rate selected by Partners. This rate should be between 0 percent and 1 percent in
SDR terms, or between 0 percent in SDR terms and 0 percent in CPL currency terms, when the 0 percent CPL currency rate
is higher than 1 percent in SDR terms. The target coupon rate will be used to calculate the grant element of the CPL.
This implies a higher coupon rate than the maximum SDR 1 percent coupon rate and is a result of the interest floor. Fair
treatment across Partners will be ensured by using the actual coupon rate of the CPL to calculate the loan’s grant element to
determine voting rights and compliance with the minimum grant contribution benchmark.

- 64 -

framework to estimate the additional grant required, as well as to calculate the grant
element of CPLs in currencies with a negative interest rate corresponding to the SDR rate.


Discount rate for calculating grant element: the discount rate equivalent to 2.35 percent in
SDR terms for a 25-year maturity/5-year grace loan and 2.70 percent in SDR terms for a
40-year maturity/10-year grace loan will be used to calculate the grant element (the portion
of the loan that is considered a grant for burden sharing and voting rights purposes).



Prepayment: In order to ensure IDA’s financial sustainability, IDA may prepay the
outstanding balance of the CPL, in whole or in part, without penalty.



Effectiveness: The loan shall become effective upon signature of a loan agreement by the
parties and upon the provision of the full unqualified amount of a coupon equalization
grant, as applicable.



Currencies: IDA would accept concessional loans in SDR, any one of the SDR basket
currencies, namely the US Dollar, Euro, Japanese Yen, British Pound, and Chinese
Renminbi.



Drawdown: The concessional loans would be drawn-down in three equal installments over
a maximum 3-year period to provide additional flexibility to IDA to manage liquidity. At
its discretion and with the agreement of the loan provider, Management may draw down
over shorter periods as it deems necessary.

150. Participants noted that voting rights associated with the grant element of CPLs will
be allocated from time to time following loan drawdown by IDA and that Partners may, at any
time, make additional concessional loan contributions to the amounts shown in Table 1a and Table
1b of Annex 11, according to the principles and terms described above.
Replenishment Effectiveness
151. Deputies recommended that financing for IDA18 be made subject to an effectiveness
condition similar to that used under previous IDA replenishments. The purpose of such a
condition is to ensure that most Partner financing, including contributions by major Partners, is in
place on time. Deputies recommended that IDA18 become effective when Instruments or Qualified
Instruments of Commitment and concessional loan agreements accounting in the aggregate for 60
percent of the total of Partner grant and concessional loan contributions as per Table 1a and Table
1b of Annex 11 have been received by IDA. They recommended a target effectiveness date for the
replenishment of December 15, 2017.
152. Deputies noted the expected limited availability of commitment authority for making
grants at the start of the IDA18 period, before the replenishment becomes effective. Principal
reflows derived from credits extended in replenishments prior to IDA11 cannot be used for the
financing of grants as the associated replenishment resolutions did not authorize the making of
grants. Therefore, IDA would need to rely on partner contributions to back new grant commitments
during IDA18. Since many IDA recipients receive their entire assistance in the form of grants, the
timely availability of partner contributions to support commitment authority for grants is of
particular importance.

- 65 -

153. Deputies noted the importance of providing their Instruments of Commitment and
signing their concessional loan agreements as early as possible, so as to advance the date of
reaching the threshold for replenishment effectiveness.95
154. Advance Contribution Scheme. In recent past IDA replenishments, some Partners agreed
that a share of their contributions could be used before the replenishment becomes effective. Under
this Advance Contribution Scheme, one-third of the amount specified in a contributing member’s
Instrument of Commitment would be released for commitment authority purposes. Consequently,
unless stated otherwise by a Partner, one third of that Partner’s grant contributions will be released
for commitment immediately upon receipt of the Partner’s Instrument of Commitment by IDA.
The second and third tranches of Partners’ grant contributions will be released at the beginning of
each FY, on July 1, 2018 and July 1, 2019, respectively.
Contribution Procedures
155. Payments. Deputies recommended that the contribution and payment arrangements for
grant contributors continue as in previous replenishments. Partners will provide their grant
contributions in the form of cash or notes in three equal annual installments. The first installment
will be due 31 days after the replenishment becomes effective, which is expected by December 15,
2017, except for advance contributions which will be paid as specified by IDA. The second
installment will be paid no later than January 15, 2019, and the third installment no later than
January 15, 2020. IDA may agree to postpone any payment under the terms of the IDA18
Resolution. Partners will provide their concessional loans in the form of cash in up to three annual
installments. The first installment will be due 31 days after the replenishment becomes effective,
which is expected by December 15, 2017, except for advance contributions which will be paid as
specified by IDA. The second installment will be paid no later than January 15, 2019, and the third
installment no later than January 15, 2020. At its discretion and with the agreement of the loan
provider, Management may draw down on different dates and over shorter periods as it deems
necessary. IDA may agree to postpone or cancel any payment under the terms of the Loan
Agreement.
156. Deputies recommended that subscription and payment arrangements for noncontributing members continue as in previous replenishments. Subscription payments of noncontributing members will be fully paid in one installment and in national currency or, with the
approval of IDA, in any convertible currency of another member country, either in cash or notes.
157. Encashment. Partner grant contributions will be encashed on an approximately pro rata
basis among Partners following the agreed regular encashment schedule (Attachment II of the
IDA18 Resolution). Partners may, with the agreement of Management, adjust their grant
encashments to reflect their legal and budgetary requirements. Deputies agreed to indicate any
special preferences in this regard to Management when Partners deposit their Instruments of
Commitment. Deputies recognized that the timing of encashments affects IDA’s resource base.
They agreed that in exceptional cases, should unavoidable delays occur, IDA’s grant encashment
requests to the relevant Partner may be adjusted to take into account any past payment delays by
95

Some Partners’ budgetary and legislative timetables permit them to make their contributions at an early stage in the fiscal
year.

- 66 -

that Partner and any related lost income to IDA. IDA may also agree with any Partner on a revised
grant encashment schedule that yields at least an equivalent value to IDA. A Partner’s voting rights
will be affected if the net present value is not maintained. Deputies agreed that the present value
of Partners’ grant encashment schedules will be based on a 0.6 percent per annum discount rate.
Partners that accelerate their grant encashments can use the additional resources as a credit item,
either to increase their own regular burden share, to cover a share of their costs under the MDRI
replenishment, or to cover a portion of payment arrears from previous replenishments. In each
case, Partners would receive additional subscription votes on account of the additional resources
provided to IDA from accelerated grant encashment. Partners that use accelerated grant
encashment can also benefit from a discount on the amounts encashed.
158. Valuation of contributions. Deputies agreed to denominate their grant contributions in
their respective national currencies if freely convertible, in SDRs, or, with the approval of IDA, in
any convertible currency of another member country. They also agreed to determine the currency
of denomination for each Partner’s grant contribution as of the date of conclusion of the IDA18
replenishment discussions. For the purpose of establishing equivalence of value among different
currencies and the SDR for grant contributions, Partners agreed to use the average daily exchange
rate for the period between March 1, 2016 and August 31, 2016. To help maintain the value of
contributions from Partners with high inflation rates, grant contributions from Partners with
domestic annual inflation of 10 percent or higher in 2013-2015 will be denominated in SDRs or in
any currency used for valuation of the SDR and agreed with IDA. 96 Deputies noted that
concessional loans would be denominated in SDRs, or any one of the SDR basket currencies,
namely the US Dollar, Euro, Japanese Yen, British Pound and Chinese Renminbi. They also
agreed to determine the currency of denomination for each Partner’s concessional loan as of the
date of conclusion of the IDA17 replenishment discussions. Currencies of denomination shall not
be changed after the approval of the Deputies’ Report by IDA’s Executive Directors.
159. IDA17 funds carried into the IDA18 replenishment. Deputies agreed that the IDA17
funds carried over into the IDA18 period will be administered under the terms of the IDA17
replenishment with respect to financial management matters such as payment, encashment, and
allocation of voting rights. For ongoing operational matters, such as commitment authority, IDA18
terms, conditions, and procedures will apply.
160. Reporting of contributions. Deputies requested Management to report regularly to the
Executive Directors on the status of each partner’s commitment and actual contributions to IDA
and to include this information in the Annual Report of the World Bank and other publications as
appropriate. This would include reporting regularly on the status of concessional loan
contributions.
C.

FINANCING DEBT RELIEF AND ARREARS CLEARANCE

161. Participants reiterated their strong support for the HIPC Initiative and MDRI, which
provide debt relief to the world’s poorest and most indebted countries. They reviewed updated
cost estimates for IDA’s lost credit reflows and the status of partner financing for the MDRI.
96

Inflation is measured by the rate of change of the national Consumer Price Index (CPI), or the GDP deflator in case of
contributing partner countries for which the CPI is not available.

- 67 -

The HIPC Initiative
162. Impact on IDA finances. Deputies reviewed the impact of HIPC debt relief on IDA’s
finances. They reaffirmed the basic HIPC principle that debt relief should not reduce IDA’s
capacity to support poverty reduction and development and should be additional to other IDA
assistance. They noted that current resources available to finance IDA’s HIPC debt relief costs will
be fully utilized by the beginning of the IDA18 period. Therefore, IDA will need additional
financing of about SDR1.6 billion during the IDA18 period to finance forgone credit reflows due
to the HIPC Initiative.
163. Deputies supported the continued use of the two mechanisms used in IDA17 for
Partners’ HIPC-related contributions: (i) contributing to IDA directly; or (ii) channeling
contributions through the Debt Relief Trust Fund. 97 The HIPC-related contributions will be
recorded separately from regular IDA contributions in order to ensure that HIPC debt relief is
additional to other IDA assistance and shown as a separate column in Table 1a of the IDA18
Resolution (Annex 11).
164. Partner funds provided directly to IDA will be treated in the same manner as regular
contributions, becoming part of IDA’s general resources. Partners can choose to submit one
Instrument of Commitment that would include the amount of the HIPC-related contribution, or
separate Instruments of Commitment for regular IDA contributions and HIPC-related
contributions. Partners can pay their HIPC contributions in cash or promissory notes. Since these
additional contributions will reimburse IDA for its forgone reflows during FY18-20, they will be
drawn down over this three-year period. Partners will receive voting rights for contributions upon
payment to IDA18.
165. Partners can also make HIPC contributions directly to the Debt Relief Trust Fund.
Partners would sign contribution agreements with IDA, as administrator of the Debt Relief Trust
Fund, specifying the contribution amount and payment modalities – in cash or in promissory notes
to be drawn down over a three-year period. Partners will deposit their contributions in the World
Bank component of the Debt Relief Trust Fund, and contributions will be transferred to IDA to
reimburse IDA for its forgone credit reflows. Since these funds become part of IDA’s general
resources at the time of transfer from the Debt Relief Trust Fund to IDA’s cash accounts, Partners
will receive additional voting rights in IDA following such transfers. Management will report
periodically to Partners on the status of their contributions to the Debt Relief Trust Fund.
The MDRI
166. Replacement of lost credit reflows. In the spring of 2006, Partners and shareholders
approved IDA’s participation in MDRI, which provides 100 percent cancellation of eligible debt
owed to IDA by countries reaching the HIPC completion point. Starting on July 1, 2006 and over
the next four decades of MDRI implementation, IDA is projected to cancel an estimated total
amount of SDR23.4 billion (equivalent to US$33.3 billion) of credit reflows from eligible HIPC
countries. Under the MDRI replenishment arrangements, Partners have committed to compensate
IDA’s MDRI costs on a ‘dollar-for-dollar’ basis, over the duration of the cancelled credits.
97

As amended by Partners and the Executive Directors.

- 68 -

Deputies reiterated the need for full replacement of the lost credit reflows due to the MDRI so as
to ensure that the debt relief granted by IDA will be additional for recipient countries, providing
further resources for their development efforts.
167. MDRI replenishment. Partner contributions for IDA’s MDRI costs are recorded under a
separate replenishment and added to IDA’s general resources following established IDA
procedures. Deputies reaffirmed the need for full replacement of lost credit reflows due to debt
relief and their commitment “to fully finance the costs to IDA of providing MDRI debt relief over
the 40-year time span of the MDRI”.98 To preserve IDA’s advance commitment capacity – under
which IDA uses its stream of available future credit reflows to back future disbursements on
approved credits and grants – Deputies acknowledged the need to provide unqualified, firm MDRI
financing commitments over the disbursement period of each future IDA replenishment. However,
they also recognized that the ability to provide binding financial commitments for the entire
duration of MDRI varies from partner to partner and committed themselves to make every effort
possible to translate their full political commitment for outer as well as earlier years into as firm
and far reaching financial pledges as allowed for by their legislative processes. In order to avoid a
financing shortfall, the MDRI replenishment resolution was amended in 2010 to allow a portion
of qualified commitments to be counted towards IDA's commitment authority. This portion was
set by IDA's Executive Directors at 85 percent of qualified commitments during IDA15, IDA16,
and IDA17, and the Executive Directors will set the level for IDA18 under the IDA18 commitment
authority framework. Nevertheless, Participants stressed the need for Partners to make every effort
to provide firm, unqualified commitments up to FY28.
168. To back IDA18 commitment authority, Deputies reaffirmed the urgent need to
provide additional partner contributions for the MDRI replenishment of SDR2.9 billion, so
as to cover IDA’s debt relief costs due to the MDRI during the IDA18 disbursement period (FY1828) as agreed under the MDRI. The MDRI financing gap of SDR0.3 billion for FY26-28 is
excluded from IDA18 commitment authority until IDA receives this amount from Partners either
through the scaling up of their burden shares or the contribution to MDRI by new Partners.
169. Deputies noted that the value of IDA’s lost credit reflows under the MDRI will
continue to fluctuate over the 40-year period, and that the MDRI financing arrangements
include a mechanism to adjust the compensatory amounts payable by Partners in conjunction with
every regular IDA replenishment. They reviewed the updated cost estimates for the MDRI under
IDA18 replenishment that provide the basis for updates to the MDRI cost tables and partner
payment schedule. Revised tables to the MDRI Resolution, reflecting the updated cost estimates,
have been provided to members. Corresponding adjustments to reflect these updated amounts are
also required in the payment schedule attached to each member’s Instrument of Commitment for
its MDRI subscription and contribution. Partners noted that each member had agreed to amend its
Instrument of Commitment to reflect any such adjustment.
170. Monitoring partner contributions. Deputies reaffirmed that there should be continued
monitoring of partner contributions to the MDRI. For transparency, partner contributions to the
MDRI will continue to be recorded separately from regular IDA replenishment contributions as
98

IDA (2006). Additions to IDA Resources: Financing the Multilateral Debt Relief Initiative, approved by IDA’s Executive
Directors on March 28, 2006. Paragraph 5.

- 69 -

additional to Partners’ regular financial support to IDA. They noted that partner contributions to
the MDRI have been reported in the annual report to IDA’s Executive Directors and will continue
to be reported annually during the IDA18 period. Such reporting will contain information on the
volume of debt relief delivered by IDA under the MDRI and the amount of compensatory partner
resources received.
Financing of Arrears Clearance Operations
171. Set aside of resources. During IDA15, partners agreed to establish a systematic approach
to arrears clearance. Participants agreed to roll-over the arrears clearance resources set aside in
IDA17 to IDA18.99 They agreed that the resources provided to finance arrears clearance operations
would be allocated only when such arrears clearance actually takes place. They also agreed that if
the resources requested for IDA18 are insufficient to cover the full cost of the arrears clearance
support, the shortfall would be made up in IDA19 in the same manner that HIPC costs are updated
at each replenishment based on the use and availability of resources. Participants requested
Management to provide an update on the utilization of resources for arrears clearance operations
at the MTR and to indicate plans for the reallocation of any unused resources during the last year
of the IDA18 period.
172. IBRD debt. In respect of IDA countries with debt to the IBRD, Participants agreed that
IDA provide debt relief grants or credits, where necessary, for the World Bank to deliver its share
of debt relief under the HIPC Initiative. Such debt relief grants from IDA (for interim HIPC relief
on IBRD debt service payments) and prepayment by IDA of remaining IBRD claims at the HIPC
completion point are part of the implementation modalities for IDA’s delivery of debt relief under
the HIPC process.100 These debt relief grants and prepayments are to be funded by resources other
than IBRD net income transfers.

SECTION V:

ENSURING EFFECTIVE IMPLEMENTATION

173. Given the significant scale up in ambition of IDA18, Participants underscored the
importance of robust implementation planning to ensure effective impact and results. They
called for substantial Management attention to budgetary and staffing requirements on preparation,
pipeline development, supervision, and M&E to ensure IDA is doing all it can to deliver for its
clients and help build their absorptive capacity. They recognized the critical role of staff in the
speed, cost and quality of WBG interventions, and encouraged Management attention to ensure
that staff skills and deployment can support the delivery of impact, even in the most challenging
environments. The new Global Mobility Support Framework will be an important element of this
effort, with a redoubled focus on careers in operations more broadly, and careers in fragile and
conflict settings more specifically.
99

100

IDA (2008). Additions to IDA Resources: Fifteenth Replenishment – IDA: The Platform for Achieving Results at the Country
Level, See section IV.C, page 31. http://siteresources.worldbank.org/IDA/Resources/Seminar%20PDFs/734491172525976405/FinalreportMarch2008.pdf. Also see “The Demand for IDA18 Resources and the Strategy for their Effective
Use” (May 2016) for a full discussion of the arrears clearance needs of countries eligible for the exceptional arrears clearance
approach.
IDA (2000), Heavily Indebted Poor Countries (HIPC) Initiative: Note on Modalities for Implementing HIPC Debt Relief
under the Enhanced Framework, IDA/R 2000-4, approved by the Executive Directors on January 25, 2000.

- 70 -

174. Participants welcomed Management’s update on efforts to ensure early
implementation planning for the proposed scaled-up IDA18 program. There has been close
collaboration among Bank staff across the Regions, GPs and CCSAs on development of the IDA18
special themes and policy commitments. IDA Management outreach on planning for
implementation is well underway, targeted to regional management team meetings, GPs and
CCSAs. Additional outreach is planned with individual country teams, tailored to reach staff in
the Regions responsible for supporting client countries in designing and implementing the IDA18
framework in partnership with other development partners.
175. In particular, Participants emphasized the need for very strong and substantial
project preparation and implementation support to its clients, particularly in FCV
situations. In this regard, Participants welcomed the draft proposal to enhance the effectiveness
of the Project Preparation Facility (PPF) which (i) aims to increase the PPF commitment authority
commensurate with the expected increase in IDA funding; and (ii) expands the scope of the PPF
to finance preparation activities not linked to a specific project, but to preparation of a broader
project pipeline. They requested this to be fast-tracked to support the pipeline preparation for FCV
in IDA18. Participants also welcomed Management’s plans to monitor IDA18 allocations more
frequently, proactively, and flexibly so as to ensure that resources are being used effectively.
Finally, they recognized that continued due diligence and monitoring of debt sustainability would
need to remain paramount.
176. Ensuring effective implementation in FCS/FCV situations. As noted in Section III D,
Participants recognized that the substantial increase in resources for FCS/FCV provides great
opportunities, but also comes with significant risks. They acknowledged that successful
implementation of a more ambitious program on FCV requires adequate staffing, operational
flexibility and sufficient budgetary resources for strategic engagement and portfolio support. The
success of IDA’s increased engagement will also depend on security, organizational incentives,
the WBG’s ability to promote the design of projects that address FCV drivers, as well as greater
FCV-sensitivity across the portfolio.
177. Participants welcomed the progress made by cross-sectoral WBG working groups to
enhance staffing, budgetary resources and operational flexibility in FCV contexts. They
welcomed the draft recommendations on budget and staffing, which would provide for increases
in Bank administrative budgets to support a stronger staffing profile in the field, including agreed
minimum levels and the appropriate seniority for FCV Country Office staffing. 101 The also
welcomed proposals to strengthen career and professional development for FCV staff, and other
aspects of the Employment Value Proposition. They requested WBG Management to update the
Board by end FY17 on progress in enhancing staffing, professional and career development for
WBG staff working in FCV situations, as well as initial findings of a review of Bank policies and
procedures, to determine whether these provide adequate flexibility in FCV settings.

101

The objective is to recruit 150 staff for FCV countries over the IDA18 period, and as a first step, the World Bank aims to
deploy 50 professional staff by FY18:Q1, subject to budget considerations.

- 71 -

178. Participants recognized that WBG engagement in FCV situations is a long-term
agenda with several challenges and constraints yet to be overcome.102 Investments in FCS are
on average riskier than investments in other IDA countries. Given that much of IDA’s engagement
in FCS is likely to be in the form of slower disbursing Investment Project Financing, which can
take up to a decade to disburse fully, Participants acknowledged that disbursements ratios can be
expected to be weaken initially. Commitments and disbursements could also lag due to lower
absorptive capacity, crises, or other emerging circumstances. This could in turn lead to delayed,
uneven or weaker results. In addition, there may be possible implications for portfolio performance
for FCS.
179. Participants also called for careful attention to PSW implementation. Acknowledging
the challenges in mobilizing private sector investment in difficult markets and the need to take
informed risks, Participants supported a “learning by doing approach.” They also stressed
adherence to a minimum concessionality approach and consideration of long term fiscal
implications of public-private investments. Participants urged Management to foster the success
of the PSW by leveraging the unique collaboration among IDA, IFC and MIGA; in particular, they
asked Management to ensure that IFC and MIGA step-up their origination efforts, provide
sufficient TA to their clients, and work with IDA as it continues to improve macroeconomic policy
and the regulatory environment in challenging markets. Further, it was emphasized that IFC and
MIGA should focus on the elements needed – including staff incentives, support and outreach –
to ensure effective deployment.
180. To implement the new financing model for IDA18, Management is also putting the
ground work in place for IDA to issue debt in the capital markets. As a first notable step
towards operationalizing IDA leverage and ensuring capital market readiness, the institution
obtained triple-A credit ratings in September 2016. Further implementation steps have been
defined and are being coordinated over the coming year to ensure a solid foundation for efficient
and long-term market engagement, including:


Detailed review and update of IDA’s financial framework, accounting policies, and risk
management parameters – to ensure robust sustainability rules, commensurate with capital
market and triple-A rating requirements, for a successful and sustainable investment of
IDA resources; and



Preparations for IDA bond issuance and investor engagement – to launch IDA’s first debt
issuance by obtaining all required regulatory approvals, establishing a global debt issue
program, designing and implementing a funding strategy, and performing dealer and
investor outreach, and establishing needed operational protocols and systems.

181. Given the significant implementation issues, Participants called for opportunities to
remain informed prior to the IDA18 MTR. They welcomed Management’s plans to provide
updates on implementation issues and pipeline development, including for the PSW, at the time of
the Spring and Annual Meetings of the WBG.

102

World Bank Group Assistance to Low-Income Fragile and Conflict Affected States, Independent Evaluation Group, December
2013.

- 72 -

SECTION VI:

RECOMMENDATION

182. Deputies propose that the Executive Directors recommend to the Board of Governors the
adoption of the draft IDA18 Resolution attached in Annex 11.

- 73 -

ANNEX 1: RESULTS MEASUREMENT SYSTEM FOR IDA18
Tier I – IDA Countries’ Progress
1.
Tier I monitors long-term development outcomes that depend on collective efforts by
countries and their development partners including IDA. It also measures key drivers of efforts
aimed at poverty reduction and shared prosperity. Participants endorsed changes to Tier 1
indicators to align with the SDGs, the WB CSCs and integrate the IDA18 Special Themes. Tier I
indicators are grouped into four categories: WBG goals; growth; inclusiveness; and sustainability
and resilience – consistent with the WBG Strategy and the CSC. All Tier I indicators will be
disaggregated for FCS where feasible and relevant.
2.
Tier I categories and the changes endorsed by the Participants in each of these are as
follows:


WBG goals. The two indicators in this category measure the WBG twin goals of
eradicating extreme poverty and boosting shared prosperity in a sustainable manner. One
is aligned with SDG 1.1.1, “Population living on less than US$1.90 a day (2011 PPP)”,
and another with SDG 10.1.1, “Growth rates of household expenditure or income per
capita among the bottom 40 per cent of the population and the total population”.



Growth. This category includes indicators tracking macroeconomic measures and the
overall business environment in IDA countries. One indicator, “Annual growth rate of real
GDP per capita” is the same as SDG 8.1.1. One indicator has been changed to “GDP per
person employed (constant 2011 PPP $)” as a measure for productivity change at the
aggregate level. This will be used as a proxy to capture economic transformation, together
with another indicator added: “Non-agriculture sectors value added (as % of GDP). The
indicator, “Youth employment to population ratio (age 15-24)” has been moved from
Inclusiveness category to Growth category. Two indicators have been added to the RMS
to track progress on governance and institutions: “Number of IDA countries that have
raised Taxes/GDP above 15%”; and “Number of IDA countries that have an improved
composite PEFA score in dimensions across the pillars of budget reliability, transparency
of public finances, and control in budget execution.”



Inclusiveness. Indicators in this category track progress in health, education, access to safe
water and improved sanitation, among others. Some indicators have been directly adopted
from the SDG indicators, while others were harmonized with the CSC or remained
unchanged. Two new indicators have been introduced to support the IDA18 Special
Themes on FCV (“Number of refugees by country or territory of asylum (millions)” and
Number of internally displaced people),” and one on gender (“Ratio of female to male
labor force participation rate”) to reflect the emphasis on closing the gender gap in
employment.



Sustainability and Resilience. Some indicators adopted the equivalent CSC indicators and
one indicator, “Carbon dioxide emissions” remained unchanged (the CSC will adopt the
same indicator accordingly). The indicator “Annual freshwater withdrawals, total (% of
internal resources)” was added.

- 74 -

Tier II – IDA-supported Results
3.
Tier II of the IDA18 RMS tracks development results in countries supported by IDA
operations across different sectors. Tier II comprises twenty-two indicators: with some
indicators harmonized with the WB CSC by adopting the new CRIs.103 Indicators in Tier II are
grouped into three categories – growth, inclusiveness, and sustainability and resilience – to reflect
the linkage to WBG Strategy Indicators and will be disaggregated by sex and FCS when feasible
and applicable. Specifically:


Growth – includes indicators tracking key infrastructure and financial services to support
productive sectors such as agriculture, microfinance, energy generation and transport. A
new indicator, “Private investments catalyzed by WB in IDA countries” will monitor the
private sector’s role in economic transformation and job creation. The indicator, “Roads
constructed or rehabilitated” remained unchanged. Other indicators were changed/
harmonized with indicators in the CSC and the new CRIs.



Inclusiveness – comprises indicators on IDA-supported results in health, education, access
to basic services (electricity, water, sanitation, and urban services) and social safety nets.
Many indicators were changed to reflect the new CRIs and were fully harmonized with the
CSC. In addition, to reflect the IDA18 theme of jobs and economic transformation, the
indicator, “Beneficiaries in IDA countries of job-focused interventions” was added and will
be disaggregated by sex.



Sustainability and Resilience – includes indicators supporting statistical capacity
building, governance, and energy efficiency. Several new indicators were introduced: “Net
GHG emissions” – on climate change mitigation in the energy, transport, forestry, urban,
water, and agriculture sectors; “Number of lending operations with civil registration and
vital statistics” – tracking IDA support for statistical capacity building; and an indicator
on governance, “Number of countries with an increase in the number of registered
taxpayers among IDA countries with substantial WB tax engagement”, – a key indicator
of DRM. The indicator tracking energy savings has been adjusted according to the new
CRI and harmonized with the CSC. One indicator, “Countries supported towards
institutionalizing disaster risk reduction as a national priority with IDA support” was
retained. Another indicator has been added to the RMS to track progress on governance
and institutions, “Number of IDA countries that operationalize Open Government
Partnership agenda commitments.”

Tier III – IDA Organizational and Operational Effectiveness
4.
Tier III of the IDA18 RMS includes measures of IDA’s operational and organizational
effectiveness – notably measures on the performance of its portfolio, the quality and timeliness of
projects delivered to clients, the results orientation of the operations, client and beneficiary
feedback, financial sustainability, and the implementation of the IDA Special Themes. To further
harmonize the World Bank CSC and the IDA RMS, Participants endorsed the consolidation of
Tiers III and IV of IDA RMS, which allowed for simplification of the IDA RMS. Tier III will
comprise twenty-nine indicators and will disaggregate and report all indicators for FCS (when
103

The formulation of CRIs is in the final stage; they have not been formally adopted.

- 75 -

feasible and applicable). Participants endorsed the six new categories under which Tier III
indicators are grouped: development outcomes ratings, client feedback, beneficiary feedback,
portfolio performance, financial sustainability, and implementation of IDA Special Themes.
Changes for each category are highlighted below:


Development Outcome Ratings. The two IDA17 RMS indicators tracking achievement
of development outcomes under Tier II “Satisfactory achievement of outcomes in Country
Assistance Strategy Completion Reports”, and “Satisfactory achievement of outcomes:
IDA operations (as share of commitments)” were changed and moved to Tier III. These
two indicators are related to the outcomes of IDA’s portfolio at the project and country
levels and are complemented by indicators that also track IDA’s performance. The
satisfactory outcomes of IDA-financed operations will be reported both as share of
operations and share of commitments.



Client feedback. Client feedback indicators (derived from country opinion surveys) were
moved from Tier II to Tier III. The indicator “Client feedback in IDA countries on WBG
effectiveness: financial instruments meet the needs of a client”, was dropped.



Integration of beneficiary feedback in projects. The measure on use of planned
beneficiary feedback during implementation has been refined to take account of the threeyear measurement lag needed before implementation can be tracked. Second, a new
indicator, “Projects with beneficiary feedback indicator at design” was introduced to track
the share of new projects that include a beneficiary feedback indicator in their results
framework. The indicator will demonstrate current institutional progress, tracking early
progress in implementing the citizen engagement initiative, and giving task teams an
incentive to integrate beneficiary feedback into the design of and monitoring plan for new
projects.



IDA portfolio performance. This group of indicators measure the quality of IDA’s
portfolio, its effectiveness, and the value for money in achieving development results.
Indicators in the RMS that are similar to those in Tier III (Performance) of the CSC were
changed to harmonize the two reporting tools. The new indicator “Proactivity Index” was
added as a key measure for IDA’s agility and responsiveness. Unique IDA indicators,
“Quality of M&E in IDA-financed operations” and “Average project implementation
support costs” have been retained. The former is based on IEG ratings for closed
operations, and thus might be replaced with an indicator to measure M&E quality at the
entry stage.



Financial Sustainability. Two indicators were retained as key measures of IDA’s financial
sustainability, namely, “IDA Budget Anchor” and “Support Cost Ratio”. 104 Two
indicators, “Gross expenditure reduction” and “Expense to business ratio”, were dropped.

 IDA Special Themes. Indicators under climate change and gender were revised to enhance
the monitoring of IDA18 Special Themes. For gender, two new indicators, “Percentage of
IDA-supported projects that demonstrate a results chain by linking gender gaps identified
in analysis to specific actions that are tracked in the results framework” and “Number of
IDA Projects that address and respond to gender-based violence”, were introduced. Under
104

The definition for the “Budget Sustainability Anchor” and “Support Cost ratio” will be adjusted to reflect changes in the IDA
financing framework to ensure matching lending related expenses of the integrated model with the corresponding revenues.

- 76 -

climate change, three indicators were changed and one remained unchanged. On FCV and
jobs and economic transformation, the indicators, “Facetime index in FCS” and “Private
financing of WBG-supported operations/transactions in IDA countries” have been
introduced. On Governance, “Number of Illicit Financial Flows Assessments performed in
IDA countries” has been added.

Table 1. Monitorable Actions for IDA18 (page 77)
Table 2a. Tier 1: IDA Countries Progress (page 85)
Table 2b. Tier 2: IDA-Supported Results (page 89)
Table 2c. Tier 3: IDA Operational and Organizational Effectiveness (page 91)
Annotated Indicators by Tier (page 94)

- 77 -

Table 1. Monitorable Actions for IDA18
OBJECTIVES

RECOMMENDATIONS/PROPOSED ACTIONS

PRODUCT/TARGET DATE

RMS INDICATORS

JOBS AND ECONOMIC TRANSFORMATION
Supporting job
creation through
economic
transformation

-

-

WBG will deploy tools and resources from IDA and
IFC to undertake 10 inclusive global value chain
analyses in IDA countries to understand how they can
contribute to economic transformation and job
creation, including through growth in agri-businesses,
manufacturing, and services and will use this analysis
to inform activities within the IDA portfolio.
WBG will use the Global Infrastructure Connectivity
Alliance to make available to IDA countries
knowledge on lessons and approaches related to crossborder investments and economic corridor
development and will use this analysis to inform
activities within the IDA portfolio.

Progress Report on Jobs
and Economic
Transformation for IDA18
MTR

Progress Report on Jobs
and Economic
Transformation for IDA18
MTR

Tier 1







GDP per person employed (constant 2011
PPP $)
Non-agriculture sectors, value added (as %
of GDP)
Trade logistics performance index
Proportion of the population with access to
electricity
Ratio of female to male labor force
participation rate
Youth employment to population ratio (age
15-24)

Tier 2
Raising job quality
and ensuring
inclusion of youth
and women

-

-

Targeting support
for jobs and private
sector development
in high-risk
contexts, including

-

WBG will systematically carry out impact analyses of
SME and entrepreneurship programs across IDA
countries to assess their overall impacts and
differentiated outcomes for women and youth, and
will develop operational guidelines to inform future
operations.
WBG will prepare operational guidelines for
integrated youth employment programs with a focus
on connecting to demand-side interventions and
supporting labor market integration to inform the
design of a new generation of youth employment
programs in IDA countries.
WBG will enhance existing and introduce new
operational instruments to improve risk sharing in
projects and crowd-in private capital in high risk
investment environments, including through the
introduction of the IFC-MIGA PSW.

Progress Report on Jobs
and Economic
Transformation for IDA18
MTR
Progress Report on Jobs
and Economic
Transformation for IDA18
MTR









Progress report on PSW
for IDA18 MTR




Farmers adopting improved agricultural
technology (millions)
Roads constructed or rehabilitated (km)
People provided with new or improved
electricity service (millions)
Generation capacity of renewable energy
(GW)
Area provided with new/improved irrigation
or drainage services (ha)
Beneficiaries in IDA countries of jobfocused interventions (millions)
Beneficiaries of social safety nets programs
(million)
People reached with financial services
(millions)
Private investments catalyzed by WB in IDA
countries

- 78 OBJECTIVES
fragility and
migration

Improving the
knowledge base to
inform operations
supporting jobs and
economic
transformation

RECOMMENDATIONS/PROPOSED ACTIONS
-

-

PRODUCT/TARGET DATE

WBG will adopt a ‘migration lens’ in IDA countries
where migration has a significant economic and social
impact (including home, host, and transit countries):
this will include analytics that close critical
knowledge gaps and, where there is explicit country
demand, support for operations that focus on job
creation, managing legal economic migration, and
integrating young people and economic migrants.

Progress Report on Jobs
and Economic
Transformation for IDA18
MTR

WBG will develop and make available for use in IDA
countries a set of ex ante measurement tools and
systems to assess the impacts of large-scale public and
PPP investments targeting infrastructure and
economic transformation on jobs, including pilot
assessments on gender outcomes.

IDA18 MTR

-

WBG will catalogue learnings from the Jobs
Diagnostics, assess how Jobs Diagnostics are
informing the design and implementation of
operations in IDA countries targeting job creation and
economic transformation, and recommend any
changes necessary to improve the impact of the tool.

-

WBG will develop and integrate spatial perspectives
into analysis of migration and urbanization trends, and
the impacts of infrastructure on jobs and economic
transformation, this will include piloting of: spatial
inventory of infrastructure in five IDA countries;
urban jobs accessibility assessments of 10 cities in
IDA countries; and spatial assessment of trends in job
creation and destruction in five countries.

RMS INDICATORS


People provided with improved urban living
conditions (millions)

Tier 3




Private capital directly mobilized by WBG
operations/transactions in IDA countries
Private financing (private co-financing) of
WBG-supported operations/transactions in
IDA countries
Indicator on economic transformation
(indicator name and methodology TBD)

* See also indicators in Gender and Development,
and FCV
Paper for IDA18 MTR

Progress Report on Jobs
and Economic
Transformation for IDA18
MTR

GENDER AND DEVELOPMENT
Sharpen focus on
closing gaps
between women,
men, girls and boys
in country
strategies and

Human endowments/first generation gaps:
-

All applicable IDA18 financing operations in primary
and secondary education will address gender-based
disparities, for instance, by incentivizing enrollment,
attendance and retention for girls.

Target reached at the end
of IDA18, with report at
MTR.

Tier 1



Ratio of female to male labor force
participation rate
Legal changes that increase gender parity
over the past two years

- 79 OBJECTIVES
operations, and
strengthen the data
and evidence base
to enhance impact
towards gender
equality

RECOMMENDATIONS/PROPOSED ACTIONS
-

All IDA18 financing operations for maternal and
reproductive health will target the improvement of the
availability and affordability of reproductive health
services, including for survivors of gender-based
violence.

Removing constraints for more and better jobs:
-

-

At least 75 percent of IDA18 financing operations for
skills development will consider how to support
women’s participation in and improvement in the
productivity of their economic activity, and/or
consider how to reduce occupational segregation.

PRODUCT/TARGET DATE

RMS INDICATORS





Tier 3


At least two-thirds of all IDA18 financing operations
in urban passenger transport will address the different
mobility and personal security needs of women and
men.



Control over assets with a focus on financial inclusion:



-

-

At least ten IDA18 financing operations and ASA for
financial inclusion will address gaps in men’s and
women’s access to and use of financial services, and
at least ten Financial Inclusion strategies in IDA
countries will provide sex-disaggregate reporting and
put in place actions to target specifically women's
financial inclusion.
At least half of all IDA18 financing operations in the
ICT portfolio will support better access to the Internet
and better access to ICT services for women.

Enabling country-level action:
-

Pilot data collections will be launched in at least six
IDA countries to gather direct respondent, intrahousehold level information on employment and
assets.

Lower secondary gross completion rate (%)
-Ratio of girls’ to boys’ completion rate (%)
Lower secondary enrollment rate (%)
-Ratio of girls’ to boys’ enrollment rate (%)
Maternal mortality ratio [SDG 3.1.1]
Adolescent fertility rate (births per 1,000
women ages 15-19)
Contraceptive prevalence by modern
methods (% of women ages 15-49)

Percentage of IDA-supported projects that
demonstrate a results chain by linking gender
gaps identified in analysis to specific actions
that are tracked in the results framework
Percentage of IDA-supported operations
reporting gender results at completion (%)
Number of IDA-supported operations that
address and respond to GBV

Note: Indicators in all three tiers will be
disaggregated by sex when feasible and applicable
(refer to Table 2 below for details).

- 80 OBJECTIVES

RECOMMENDATIONS/PROPOSED ACTIONS
Voice and agency:
-

Increase the number of operations in fragile contexts
which prevent or respond to gender-based violence,
including through access to essential services and
livelihood support activities for women (baseline:
IDA16; see FCV).

-

Implement the recommendations of the WBG Global
Task Force on Gender-Based Violence, as applicable,
within operations in IDA-eligible countries.

PRODUCT/TARGET DATE

RMS INDICATORS

Target reached at the end
of IDA18, with report at
MTR.

CLIMATE CHANGE
Deepen the
mainstreaming of
climate change and
disaster risk
management into
SCDs, CPFs, and
lending, and
support
development of
planning and
investment
capacity

-

-

All IDA operations continue to be screened for
climate change and disaster risks and integrate
resilience measures, based on review of experience
before the start of IDA18, and to be reported at MTR.

-

Support at least 10 countries (on demand) to translate
their (I)NDCs into specific policies and investment
plans and start to integrate these into national budget
and planning processes.

-

Supporting efforts
to achieve the

All IDA SCDs and CPFs to incorporate climate and
disaster risk considerations and opportunities and
reflect (I)NDCs, based on a review of experience
before the start of IDA18, and to be reported at MTR.

Develop at least 10 climate-smart agriculture
investment plans and 10 programmatic forest policy
notes.

Tier 1




Tier 2

IDA18 MTR



Increase the use of DPOs that support climate cobenefits.



-

Apply GHG accounting and shadow carbon price for
all operations in significant sectors, and prepare a
revised guidance note on discount rates.



Support the addition of five GW in renewable energy
generation.

Countries supported towards
institutionalizing disaster risk reduction as a
national priority with IDA support
Generation capacity of renewable energy
(GW)
Net GHG emissions

Tier 3

-

-

Population exposed to harmful air pollution
(PM2.5) (%)
Average annual deforestation change (%)
CO2 emissions (metric tons per capita)
Annual freshwater withdrawals, total (% of
internal resources)



IDA-supported operations with climate
change co-benefits
Completed ASA products that address
climate change issues
IDA $ commitments with disaster risk
management co-benefits

- 81 OBJECTIVES
Sustainable Energy
for All objectives
Monitoring and
reporting of IDA
resources used for
climate change

RECOMMENDATIONS/PROPOSED ACTIONS
-

Develop Investment Prospectuses in seven additional
countries with low electricity access.

-

Report annually on private finance mobilized for
climate105 and continue to report on overall climate
finance together with other MDBs.

PRODUCT/TARGET DATE

RMS INDICATORS

FRAGILITY, CONFLICT AND VIOLENCE
Deepening IDA’s
knowledge on FCV
and learning from
operational
experience

-

Adopt a risk-based approach for identifying fragility
beyond those countries on the FCS harmonized list.

-

Deepen the WBG’s knowledge on the
mitigation/prevention of FCV risks through a flagship
report drawing on lessons from operational experience
and impact evaluations.

Designing
integrated WBG
strategies
addressing FCV
drivers and
building
institutional
resilience

-

RRAs inform all CPFs in FCS and countries with
significant risks of FCV. 106

-

Increase the number of operations targeting refugees
and their host communities (baseline: IDA17).

-

Increase the number of operations in fragile contexts
which prevent or respond to gender-based violence,
including through access to essential services and
livelihood supported activities for women (baseline:
IDA16).

Improving staffing,
operational
effectiveness and
flexibility

-

Increase staff “facetime” in IDA FCS with focus on
staff based in-country and monitor progress through
the “Facetime index”. 107

105
106

107

Target reached at the end
of IDA18, with report at
MTR.

Tier 1


Number of refugees by country or territory of
asylum (millions)

Tier 3

Target reached at the end
of IDA18, with report at
MTR.



Number of IDA projects that address and
respond to GBV
Facetime index in FCS.

Note: Indicators in all three tiers will be
disaggregated for FCS when feasible and applicable
(refer to Table 2 below for details).

Target reached at the end
of IDA18, with report at
MTR.

Climate finance reporting will continue to follow the methodology and procedures agreed upon with other MDBs and will report on the WBG numbers.
Countries eligible for exceptional IDA allocations to mitigate FCV risks identified on the basis of a cross-country risk scan combining quantitative and qualitative assessments.
See Annex 4.
The proposed “Facetime” indicator will be calculated on the basis of World Bank staff in-country missions as well as international and local staff and consultants posted in the
country.

- 82 OBJECTIVES
Promoting
partnerships for a
more effective
response
Enhancing
financing to
support FCS/FCV

RECOMMENDATIONS/PROPOSED ACTIONS

PRODUCT/TARGET DATE

-

Undertake joint RPBA as openings arise for
engagement in the aftermath of conflict in IDA
countries.

Target reached at the end
of IDA18, with report at
MTR.

-

Implement the revised IDA resource allocation
framework for FCS/FCV to enhance targeting of
IDA’s exceptional support and financial engagement
in these countries.

Review implementation
experience of financing
framework for FCV at
IDA18 MTR and propose
adjustments if necessary.

RMS INDICATORS

GOVERNANCE AND INSTITUTIONS
Strengthen DRM

Improve public
expenditure,
financial
management and
procurement

-

Provide support to at least a third of IDA countries
targeted at increasing their Tax/Gross Domestic
Product ratio through lending operations, ASA and
technical assistance including tax diagnostic
assessments.

-

Support at least 10 IDA countries in performing 2nd
or subsequent PEFA assessments to inform
preparation of their SCDs.

-

Deliver MAPS2 in five IDA countries to accelerate
the development of modern, efficient, sustainable and
more inclusive public procurement systems that take
into account national development objectives.

Strengthen active
ownership of SOEs

-

Support at least 10 IDA countries on enhancing SOE
performance through: (i) Performance Agreements
and/or (ii) increased transparency through published
reports on their SOE portfolio.

Support public
administration
performance for
service delivery

-

Perform joint operations, TA, and/or ASA on sectorfocused governance in 10 IDA countries to identify
and address institutional bottlenecks to service
delivery with the health, water, and/or education
sectors.

Target reached at the end
of IDA18, with report at
MTR.

Tier 1



Number of countries that raise Taxes/GDP
ratio above 15 percent
No. of IDA countries that have an
improved composite PEFA score across in
dimensions across the pillars of budget
reliability, transparency of public finances,
and control in budget execution: 1.1)
Difference between planned and actual
budget expenditure; 9.2) Public access to
fiscal information; 24.2) Competitive
procurement methods

Tier 2


Target reached at the end
of IDA18, with report at
MTR.



No. of countries with an increase in the
number of registered taxpayers among IDA
countries with substantial WB tax
engagement.
No. of IDA countries that operationalize the
OGP agenda commitments

Tier 3


No. of IFFs assessments performed in IDA
countries.

- 83 OBJECTIVES

RECOMMENDATIONS/PROPOSED ACTIONS

Support
institutional
capacity to respond
to pandemics

-

Support at least 25 IDA countries in developing
pandemic preparedness plans.

-

Support 25 countries in developing frameworks for
governance and institutional arrangements for multisectoral health emergency preparedness, response and
recovery.

Integrate citizen
engagement and
beneficiary
feedback into
service delivery
operations

-

Support projects in at least 10 IDA countries in the
development and implementation of user feedback
and/or enhanced GRMs108 for service delivery that
ensure participation by women in these processes

Strengthen open,
transparent and
inclusive
governance
through Open
Government
commitments

-

Support at least one-third of IDA countries to
operationalize reform commitments towards the OGP
agenda to strengthen transparent, accountable,
participatory, and inclusive governments

Mitigate IFFs

-

Perform IFFs assessments in at least 10 IDA countries
to support the identification and monitoring of IFFs;

Enhance
understanding of
governance and
institutions in
situations of FCV

-

Strengthen and systematize Governance &
Institutional analysis in half of Risk and Resilience
Assessments and at least three-quarters of Recovery &
Peace Building Assessments in IDA countries

-

Plan for operationalization of 2017 WDR focused on
reducing implementation gaps and enabling adaptive
approaches.

Operationalize
2017 WDR

108

PRODUCT/TARGET DATE

Target reached at the end
of IDA18, with report at
MTR.

Plan by MTR

Enhanced GRMs include minimum standards on uptake, responsiveness, disclosure, and/or gender inclusion.

RMS INDICATORS

- 84 OBJECTIVES

RECOMMENDATIONS/PROPOSED ACTIONS

PRODUCT/TARGET DATE

RMS INDICATORS

ADDITIONAL REPORTS/REVIEWS FOR IDA18 MID-TERM REVIEW
Holistic Review of the transition from IDA to IBRD, taking into account the IBRD financial capacity at that time (Section IV A, Nonconcessional Financing), which will include analysis on: the role of the blend period to ensure graduation readiness, covering financing for blends,
including the current cap on large blend borrowers and measures to prepare countries for graduation; and the contractual acceleration clause.
Scale-up Facility, Focusing on IDA18 Implementation (Section IV A: Non-concessional Financing)
-

Private Sector Window (Section IV A, Non-concessional Financing)

-

Arrangements related to IDA voting rights (Section IV B: Partner Grant Contributions)

- 85 -

Table 2a. Tier 1: IDA Countries Progress
IDA17 RMS

IDA18 RMS

Revision

Disaggregation
Sex

Disaggregation
FCS

WBG Goals
1

Population below US$ 1.90 a day

Population living on less than US$1.90 a day [SDG
1.1.1]

Changed



2

Median income growth rate of bottom 40% of
population

Growth rates of household expenditure or income per
capita among the bottom 40 per cent of the population
and the total population [SDG 10.1.1]

Changed



Growth
3

GDP per capita (constant in 2005 US$)

Annual growth rate of real GDP per capita [SDG
8.1.1]

Changed



4

Gross capital formation (% of GDP)

GDP per person employed (constant 2011 PPP $)

Changed



Non-agriculture sectors, value added ( as % of GDP)

New



Unchanged



5

6

Level of statistical capacity (scale from 0 to
100)

7

Quality of budgetary and financial
management

Level of statistical capacity (scale from 0 to 100)

Dropped

- in Extractive Industries Transparency
Initiative (EITI) implementing IDA countries
8

Extractive industries tax revenues in EITI
implementing IDA countries as a percentage of
GDP (%)

9

Trade Logistics Performance Index (Average
rating 1=low to 5=high)

10

Dropped

Trade Logistics Performance Index (Average rating
1=low to 5=high)

Unchanged



Number of IDA countries that have raised taxes/GDP
above 15%

New



- 86 IDA17 RMS
11

12

Youth employment to population ratio (age 1524)
- Women
- Men

IDA18 RMS

Revision

No. of IDA countries that have an improved composite
PEFA score across in dimensions across the pillars of
budget reliability, transparency of public finances, and
control in budget execution: 1.1) Difference between
planned and actual budget expenditure; 9.2) Public
access to fiscal information; 24.2) Competitive
procurement methods
Youth employment to population ratio (age 15-24)
- Women
- Men

New

Unchanged

Disaggregation
Sex

Disaggregation
FCS







Sustainability and Resilience
13

Change in wealth, including physical, human
and natural capital (US$ per capita)

14

IDA countries that have reported progress
towards mainstreaming disaster risk
management in their development policies and
programs (No.)
Exposure to PM2.5 concentrations (population
weighted average (micrograms per cubic
meter)

15

Changed



Dropped



Population exposed to harmful air pollution (PM2.5)
(%)

Changed



Countries without wealth depletion

16

Deforestation rate (%)

Average annual deforestation change (%)

Changed



17

CO2 emissions (metric tons per capita)

CO2 emissions (metric tons per capita)

Unchanged



18

Share of population living in areas under water
stress

Annual freshwater withdrawals, total (% of internal
resources)

Changed



Countries with growth concentrated in the bottom 40%
(%)

Changed



Proportion of population with access to electricity
[SDG 7.1.1]

Changed



Inclusiveness
19

20

21

Percentage of IDA countries where growth in
average income of the bottom 40% is positive
and greater than growth in average income of
the population
Electrification rate (% population)

Employment to population ratio
- Women
- Men

Dropped

- 87 IDA17 RMS
22

23

Employment to population ratio in FCS
- Women
- Men
Bank accounts (age 15+) (%)
- Men
- Women

24

IDA18 RMS

Revision

Disaggregation
Sex

Disaggregation
FCS

Dropped

Proportion of adults (15 years and older) with an
account at a bank or other financial institution or with
a mobile money service provided [SDG 8.10.2]
Ratio of female to male labor force participation rate

Changed





New






25

IDA countries without any discriminatory
laws against women (No.)

Legal changes that increase gender parity over the past
two years

Changed

26

Secondary gross completion rate

Lower secondary gross completion rate (%)
- Ratio of girls’ to boys’ completion rate (%)

Changed





27

- Girls completion rate (%)
Ratio of girls to boys in secondary education
(%)

Lower secondary enrollment rate (%)
-Ratio of girls’ to boys’ enrollment rate (%)

Changed





28

Under 5 mortality rate (per 1,000 live births)

Under-5 mortality rate (deaths per 1,000 live births)
[SDG 3.2.1]

Changed

29

Malnutrition prevalence, height for age (%,
children under 5)

Prevalence of stunting among children under 5 years of
age % [SDG 2.2.1]

Changed

32

Births attended by skilled health staff (% of
total births)

Proportion of births attended by skilled health
personnel % [SDG 3.1.2]

Changed

33

Prevalence of HIV/AIDS (% population ages
15-49)

Incidence of HIV (% of uninfected population ages 1549)

Changed

34

Maternal mortality ratio (per 100,000 live
births)

Maternal mortality ratio (per 100,000 live births) [SDG
3.1.1]

Unchanged



35

Adolescent fertility rate (births per 1,000
women ages 15-19)

Adolescent fertility rate (births per 1,000 women ages
15-19)

Unchanged



36

Contraceptive prevalence (% of women ages
15-49)

Contraceptive prevalence by modern methods (% of
women ages 15-49)

Changed



37

Access to improved sanitation (% of
population)

Access to improved sanitation (% of population)

Unchanged



38

Access to an improved water source (%
population)

Access to an improved water source (% population)

Unchanged



39

Mobile cellular telephone subscriptions (per
100 people)

Dropped



New



40

Number of refugees by country or territory of asylum
(millions)











- 88 IDA17 RMS
41

IDA18 RMS
Number of IDPs

Revision
New

Disaggregation
Sex

Disaggregation
FCS



- 89 -

Table 2b. Tier 2: IDA-Supported Results
IDA17 RMS

IDA18 RMS

Revision

Disaggregation
Sex

Disaggregation
FCS

Growth
Beneficiaries of agriculture and rural
development projects (millions)

Farmers adopting improved agricultural technology
(millions)

Changed





2

- Female beneficiaries of rural and agricultural
project (million)
Active microfinance loan accounts (millions)

Beneficiaries reached with financial services (millions)

Changed





3

- Active microfinance loan accounts by
women (millions)
Roads constructed or rehabilitated (km)

Roads constructed or rehabilitated (km)

Unchanged



4

Area provided with irrigation and drainage
services (ha)

Area provided with new/improved irrigation or drainage
services (ha)

Changed



5

Generation capacity of renewable energy
constructed and rehabilitated (MW)

Generation capacity of renewable (GW)

Changed



New



1

6

Private investments catalyzed by WB in IDA countries

Inclusiveness
7

Teachers recruited and/or trained (millions)

Teachers recruited or trained (millions)

Changed





8

People with access to a basic package of
health, nutrition or population services

People who have received essential health, nutrition and
population services (millions)
(i) Number of children immunized
(ii) Women and children who have received basic
nutrition services
(iii) Number of deliveries attended by skilled health
personnel

Changed





9

Female beneficiaries covered by social safety
net programs (millions)

Beneficiaries of social safety net programs (millions)

Changed





10

People with access to improved water sources
(millions)

People provided with access to improved water sources
(millions)

Changed





11

People with access to improved sanitation
facilities (millions)

People provided with access to improved sanitation
services (millions)

Changed





12

People in urban areas provided with access to
improved urban services (millions)

People provided with improved urban living conditions
(millions)

Changed





- 90 IDA17 RMS
13

People with access to electricity (millions)

14

IDA18 RMS

Revision

Disaggregation
Sex

Disaggregation
FCS

Changed





Beneficiaries in IDA countries of job-focused
interventions (m)

New





People provided with new or improved electricity
service (millions)

Sustainability and Resilience
15

Projected lifetime energy savings (MW/h)

Projected energy or fuel savings (Mega joules)

Changed

16

Countries supported towards institutionalizing
disaster risk reduction as a national priority
with IDA support

Countries supported towards institutionalizing disaster
risk reduction as a national priority with IDA support

Unchanged



New



Changed



New



17

18

Net GHG emissions

Countries supported on strengthening national
statistical systems (number), in FCS

19

Number of IDA countries that were provided statistical
capacity building support by the WBG for the
implementation of household surveys
Number of lending operations with civil registration and
vital statistics

20

Countries that strengthened tax policy and
administration with IDA support (number)

Dropped

21

Countries that strengthened public financial
management with IDA support (number)

Dropped

22

23
24

Number of countries with an increase in the number of
registered taxpayers among IDA countries with
substantial WB tax engagement
Number of IDA countries that adopt or introduce
improved functionality of e-procurement
No. of IDA countries that operationalize the OGP
agenda commitments

New



Dropped
New



- 91 -

Table 2c. Tier 3: IDA Operational and Organizational Effectiveness
IDA17 RMS

IDA18 RMS

Revision

Disaggregation
Sex

Disaggregation
FCS

Development Outcome Ratings
1

2

Satisfactory Achievement of Development
Outcomes – in Country Assistance Strategies
Completion Reports (%, IEG ratings)
Satisfactory Achievement of Development
Outcomes – in IDA operations (%, IEG
ratings) (as a share of commitments)

Satisfactory outcomes of IDA country strategies
(%, IEG rating)

Changed



Satisfactory outcomes of IDA operations:

Changed



Changed



Changed



– as a share of commitments
(%, IEG ratings)
– as share of operations
(%, IEG ratings)

Client Feedback
3
4

5

6
7

Client feedback in IDA countries on WBG
effectiveness – WBG effectiveness (overall)
Client feedback in IDA countries on WBG
effectiveness – Contribution of the WBG
knowledge work and activities to development
results
Client feedback in IDA countries on WBG
effectiveness – Financial instruments meet the
needs of a client
Client feedback on WBG on responsiveness
and staff accessibility
Client feedback on WBG on collaboration with
other donors

Client feedback in IDA countries on WBG effectiveness
and impact on results
Client feedback in IDA countries on WBG knowledge

Dropped

Client feedback on WBG on responsiveness and staff
accessibility
Client feedback on WBG on collaboration with other
donors

Unchanged



Unchanged



Projects with beneficiary feedback indicator at design
(%)

Changed



Satisfactory Bank performance in IDAfinanced operations

Satisfactory Bank performance in IDA-financed
operations

Unchanged



-overall
-at entry
-during supervision
Satisfactory implementation of active
operations
Satisfactory performance of joint and
complementary IDA/IFC projects in IDA
countries
Alignment with the Strategy
– Stock of CS underpinned by a SCD (%)

-overall
-at entry
-during supervision
Satisfactory implementation progress of active
operations
Share of CPFs in IDA countries that have at least one
joint objectives in the results matrix (%)

Beneficiary Feedback
8

Projects using beneficiary feedback (%)

Portfolio Performance
9

10
11

12

Alignment with the Strategy
– Stock of CS underpinned by a SCD (%)

Dropped
Changed

Unchanged





- 92 IDA17 RMS

13
14

15

Disbursement ratio for project financing
projects (%)
Operations that draw lessons for design from
impact or other evaluations (%)
Quality of M&E in IDA-financed operations
(% IDA commit, IEG ratings)

16

Time from Project Concept Note to the first
disbursement project financing (months)

17

Average project implementation support costs
(US$)

18

Use of country public financial management
and procurement systems (%)

19

IDA $ commitments dedicated to impact
evaluation, other evidence-based approaches
and statistical capacity (US$)

20

IDA18 RMS

Revision

Disaggregation
Sex

Disaggregation
FCS

New



Changed



Operations design drawing lessons from evaluative
approaches (%)

Changed



Quality of M&E in IDA-financed operations (% IDA
commit, IEG ratings)

Unchanged



Time from Project Concept Note to the first
disbursement project financing (months)
(i) Time from Concept Note approval to Board
Approval;
(ii) Time from Board Approval to Project
Effectiveness.
(iii) Time from Project Effectiveness to First
Disbursement.

Unchanged



Unchanged



Alignment with the Strategy
- Qualitative assessment of alignment of the country
engagement with the corporate goals
Disbursement ratio (%)

Average project implementation support costs (US$)
Dropped
Number of impact evaluations supported by the World
Bank in IDA countries
Proactivity Index

Changed



New

Financial Sustainability
21

IDA Budget Sustainability Anchor (%)

Unchanged
IDA Budget Anchor (%)

22

Gross expenditure reduction (US$ millions)

Dropped

23

Expense to business revenue ratio (%)

Dropped

24

Support cost ratio (%)

Support cost ratio (%)

Unchanged



- 93 IDA17 RMS

IDA18 RMS

Revision

Disaggregation
Sex

Disaggregation
FCS

Implementation of Special Themes
25
26

27

IDA operations that integrate gender into
analysis, design and monitoring
For projects with gender monitoring in project
design, the percentage of which report on such
indicators during implementation

Percentage of IDA-supported projects that demonstrate
a results chain by linking gender gaps identified in
analysis to specific actions that are tracked in the results
framework

IDA operations with Core Sector Indicators
that can be gender-disaggregated that report
such data (% of IDA)

Dropped



Changed



Dropped

28

Percentage of IDA-supported operations reporting
gender results at completion (%)

New



29

Number of IDA-supported operations that address and
respond to GBV

New



30

Facetime Index in FCS

New



31

IDA operations with climate change cobenefits implementing agreed climate actions
(US$ billions)

IDA-supported operations with climate change cobenefits
- number of projects
- commitments in US$ billions

Changed



32

Completed ESW and non-lending TA that
address climate change issues (number)

Completed ASA products that address climate change
issues (number)

Changed



IDA $ commitments with disaster risk management cobenefits (US$ billions)

Unchanged



Private capital directly mobilized by WBG
operations/transactions in IDA countries

Changed



33
IDA $ commitments with disaster risk
management co-benefits (US$ billions)
34

Private Capital Mobilized by WBG in IDA
countries (US$ million)

35

Private financing (private co-financing) of WBGsupported operations/transactions in IDA countries

New



36

Number of IFFs Assessments performed in IDA
countries

New



37

Indicator on economic transformation (to be defined and
developed)

New



- 94 -

Annotated Indicators by Tier
Indicator

Unit of
Measure

Data Source

Date of
Latest
Results

Staff estimates
calculated using
data from
PovcalNet
Global database
of Shared
Prosperity,
calculated from
the Global
Poverty
Working Group
dataset

2012

WDI
WDI

2015
2014

WDI
WDI

N/A
2015

WDI

2014

IMF Fiscal
Monitor
PEFA

N/A

Tier 1: IDA Countries Progress
WBG goals
Population living on less than US$1.90 a day [SDG 1.1.1]

Growth rates of household expenditure or income per capita among the
bottom 40 per cent of the population and the total population [SDG
10.1.1]

Growth
Annual growth rate of real GDP per capita [SDG 8.1.1]
GDP per person employed
Non-agriculture sectors, value added ( as % of GDP)
Level of statistical capacity
Trade Logistics Performance Index

Number of IDA countries that have raised taxes/GDP above 15%
No. of IDA countries that have an improved composite PEFA score
across in dimensions across the pillars of budget reliability, transparency

% of population

%

%
constant 2011
PPP $
%
scale from 0 to
100
Average rating
1=low to
5=high
Number
Number

N/A

2011

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)

- 95 Indicator

of public finances, and control in budget execution: (1.1) Difference
between planned and actual budget expenditure; (9.2) Public access to
fiscal information; (24.2) Competitive procurement methods
Youth employment to population ratio (age 15-24) (Women, Men)
Sustainability and Resilience
Countries without wealth depletion

Population exposed to harmful air pollution (PM2.5)
Average annual deforestation change
CO2 emissions
Annual freshwater withdrawals, total
Inclusiveness
Countries with growth concentrated in the bottom 40%

Proportion of population with access to electricity [SDG 7.1.1]
Proportion of adults (15 years and older) with an account at a bank or
other financial institution or with a mobile money service provided
[SDG 8.10.2]
Ratio of female to male labor force participation rate
Legal changes that increase gender parity over the past two years

Unit of
Measure

Data Source

Date of
Latest
Results

%

WDI

2014

% of countries

Staff estimates
based on WB
data
WDI
WDI
WDI

2014

WDI

2014

2013

% of population
%

Global database
of Shared
Prosperity circa
2007-2012,
calculated from
PovcalNet.
WDI
WDI

%
Number of legal
gender
differences

WDI
Women,
Business and
the Law

2014
2015

% of population
%
Metric tons per
capita
% of internal
resources
%

2013
2015
2011

2012
N/A

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)

- 96 Indicator

Unit of
Measure

Data Source

Date of
Latest
Results

Lower secondary gross completion rate

%

WDI

2013

- Ratio of girls’ to boys’ completion rate
Lower secondary enrollment rate

%

WDI

2013

Number of
under-five
deaths per
1,000 live births
%
%
% of uninfected
population ages
15-49
Number of
maternal deaths
per 100,000 live
births
Number of
births per 1,000
women ages 1519
% of married
women ages 1549
% of population
% of population

WDI

2015

WDI
WDI
WDI

2014
2012
2015

WDI

2014

WDI

2014

WDI

2011

WDI
WDI

2015
N/A

Number

WDI

N/A

-Ratio of girls’ to boys’ enrollment rate
Under-5 mortality rate [SDG 3.2.1]

Prevalence of stunting among children under 5 years of age [SDG 2.2.1]
Proportion of births attended by skilled health personnel [SDG 3.1.2]
Incidence of HIV

Maternal mortality ratio [SDG 3.1.1]

Adolescent fertility rate

Contraceptive prevalence by modern methods

Access to improved sanitation
Access to improved water source (% population)
Number of refugees by country or territory of asylum (millions)

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)

- 97 Indicator

Number of IDPs

Unit of
Measure

Data Source

Date of
Latest
Results

Number (high
estimate)

WDI

N/A

Millions

Staff estimates

Number of
people
(millions)

Staff estimates

3-year
rolling
incremental
value
FY14FY16
3-year
rolling
incremental
value
FY14FY16
3-year
rolling
incremental
value
FY14FY16

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)

Tier 2: IDA-Supported Development Results
Growth
Farmers adopting improved agricultural technology

Beneficiaries reached with financial services

Roads constructed or rehabilitated

Staff estimates

Km

Area provided with new/improved irrigation or drainage services

ha

Staff estimates

3-year
rolling
incremental
value
FY14FY16

4-5

4-6

80 K – 100 K

1.3-2.3 million
ha

- 98 Indicator

Generation capacity of renewable energy

Private investments catalyzed by WB in IDA countries
Inclusiveness
Teachers recruited or trained

People who have received essential health, nutrition and population
services:
(i) Children immunized (m)
(ii) Women and children who have received basic
nutrition services (m)
(iii) Number of deliveries attended by skilled health
personnel
Beneficiaries of social safety net programs

Unit of
Measure

Data Source

Date of
Latest
Results

GW

Staff estimates

3-year
rolling
incremental
value
FY14FY16

US$ millions

Staff estimates

N/A

N/A

Number of
teachers
(millions)

Staff estimates

9 -10

Number of
people
(millions)

Staff estimates

3-year
rolling
incremental
value
FY14FY16
3-year
rolling
incremental
value
FY14FY16

Number of
people
(millions)

Staff estimates

3-year
rolling
incremental
value
FY14FY16

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)
5 GW

316-400
(i) 120-180
(ii)180-200
(iii) 16-20

25-30

- 99 Indicator

Unit of
Measure

Data Source

Date of
Latest
Results

People provided with access to improved water sources

Number of
people
(millions)

Staff estimates

People provided with access to improved sanitation services

Number of
people
(millions)

Staff estimates

People provided with improved urban living conditions

Number of
people
(millions)

Staff estimates

People provided with new or improved electricity service

Number of
people
(millions)

Staff estimates

Beneficiaries in IDA countries of job-focused interventions

Number of
people
(millions)

Staff estimates

3-year
rolling
incremental
value
FY14FY16
3-year
rolling
incremental
value
FY14FY16
3-year
rolling
incremental
value
FY14FY16
3-year
rolling
incremental
value
FY14FY16
N/A

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)
35-45

12-18

13-18

25-35

N/A

- 100 Indicator

Unit of
Measure

Data Source

Date of
Latest
Results

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)

Sustainability
Projected energy or fuel savings

Mega joules

Staff estimates

3-year
rolling
incremental
value
FY14FY16

1.51x107 MWh

Countries supported towards institutionalizing disaster risk reduction as
a national priority with IDA support
Net GHG emissions

Number of
countries
tCO2eq / year

Staff estimates
Staff estimates

N/A

N/A

Number of IDA countries that were provided statistical capacity
building support by the WBG for the implementation of household
surveys
Number of lending operations with civil registration and vital statistics

Number of
countries

Staff estimates

N/A

30

Number of
operations
Number of
countries
Number

Staff estimates

N/A

20

Staff estimates

N/A

8-12

OGP

2015

20-30

Four-year
rolling
basis FY1316
Three -year
rolling
basis FY1214

70 (Annual,
four year
rolling)

Number of countries with an increase in the number of registered
taxpayers among IDA countries with substantial WB tax engagement
No. of IDA countries that operationalize the OGP agenda commitments

25-30

Tier 3: IDA Operational & Organizational Effectiveness
Development Outcome Ratings
Satisfactory outcomes of IDA country strategies

%, IEG rating

IEG

Satisfactory outcomes of IDA operations:

%, IEG ratings

IEG

– as a share of commitments
– as share of operations

80 (Annual,
three year
rolling)

- 101 Indicator

Client Feedback
Client feedback in IDA countries on WBG effectiveness and impact on
results
Client feedback in IDA countries on WBG knowledge

Client feedback on WBG on responsiveness and staff accessibility
Client feedback on WBG on collaboration with other donors
Beneficiary Feedback
Projects with beneficiary feedback indicator at design
Portfolio Performance
Satisfactory Bank performance in IDA-financed operations

Unit of
Measure

Data Source

Date of
Latest
Results

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)
75 (Annual,
three year
rolling)

Average rating
scale: 1-10

WBG COS
Program.

FY16

7 (Annual)

Average rating
scale: 1-10

WBG COS
Program.

FY16

7 (Annual)

Average rating
scale: 1-10
Average rating
scale: 1-10

WBG COS
Program.
WBG COS
Program.

FY16

7 (Annual)

FY16

8 (Annual)

%

World Bank
PADs

FY16

100 (Annual)

%, IEG Ratings

IEG

3-year
rolling
basis FY1416

80 (Annual,
based on
projects exiting
IEG review in 3
previous FYs)

%

WBG CPF
reviews
WBG Country
Assistance

FY16

100

-overall
-at entry
-during supervision

Share of CPFs in IDA countries that have at least one joint objectives in
the results matrix
Alignment with the Strategy

%

(i)FY16
(ii) N/A

100 (Annual)

- 102 Indicator

Unit of
Measure

(i) Stock of CS underpinned by a SCD (%)
(ii) Qualitative assessment of alignment of the country engagement with
the corporate goals
Disbursement ratio

%

Operations design drawing lessons from evaluative approaches

%

Data Source

World Bank
SAP
World Bank
SAP, PADs
and/or
supporting
documents.
IEG

Number of impact evaluations supported by the World Bank in IDA
countries

109

This indicator might be replaced by “Quality of M&E at project entry”.

FY16

20 (Annual)

FY16

100 (Annual)

3-year
rolling
FY14FY16

Number of
months

World Bank
SAP

FY16

80 (Annual,
closed IDA
projects
reviewed by
IEG in a threeyear rolling
basis)
TBD

US$ ’000

World Bank
SAP
World Bank
SAP

FY16

Monitored

Quality of M&E in IDA-financed operations109

Average project implementation support costs

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)

Strategy/CPF
reviews

% IDA
commitments,
IEG ratings

Time from Project Concept Note to the first disbursement project
financing
i) Time from Concept Note approval to Board Approval;
ii) Time from Board Approval to Project Effectiveness.
iii) Time from Project Effectiveness to First Disbursement.

Date of
Latest
Results

Number

N/A

Monitored

- 103 Indicator

Proactivity Index

Financial Sustainability
IDA Budget Anchor
Support cost ratio
Implementation of Special Themes
Percentage of IDA-supported projects that demonstrate a results chain
by linking gender gaps identified in analysis to specific actions that are
tracked in the results framework

Percentage of IDA-supported operations reporting gender results at
completion

Unit of
Measure

Data Source

Index

Staff estimates
based on World
Bank systems

US$ millions
%

%

%

Number of IDA-supported operations that address and respond to GBV

Number

Facetime Index in FCS

Index

IDA-supported operations with climate change co-benefits
-

number of projects

Number,
US$ billions

World Bank
SAP
World Bank
SAP
World Bank
SAP, PADs
and/or
supporting
documents.
World Bank
SAP, PADs
and/or
supporting
documents.
World Bank
SAP, PADs
and/or
supporting
documents.
Staff estimates
based on World
Bank systems
World Bank
SAP, PADs
and/or

Date of
Latest
Results

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)
75

N/A

FY16
FY16

<=100
Monitored

55
N/A

N/A

Monitored

N/A

Monitored

N/A

Monitored

FY14FY16

3-4 (US$
billion)

- 104 Indicator

-

Unit of
Measure

in US$ millions

Completed ASA products that address climate change issues

Number of
ASA products

IDA $ commitments with disaster risk management co-benefits

US$ billions

Private capital directly mobilized by WBG operations/transactions in
IDA countries

US$ millions

Private financing of WBG-supported operations/transactions in IDA
countries

US$ millions

Number of IFFs Assessments performed in IDA countries

Number of IFFs
Assessments

Indicator on economic transformation (indicator name TBD)110

110

TBD

Indicator will be agreed by June 2017 and will start being reported for the Annual Meetings in 2018.

Data Source

supporting
documents.
World Bank
SAP, PADs
and/or
supporting
documents.
Staff estimates
based on World
Bank systems
Staff estimates
based on World
Bank systems
Staff estimates
based on World
Bank systems
Staff estimates
based on World
Bank systems
TBD

Date of
Latest
Results

Proposed
Performance
Standard /
Target for
IDA18
(FY18-FY20)

100-200
FY16

FY14FY16

3-5

Monitored
FY16
Monitored
N/A
10-15
N/A
N/A

TBD

- 105 -

ANNEX 2: IDA’S PERFORMANCE-BASED ALLOCATION SYSTEM FOR IDA18
I.

Introduction

1.
IDA’s PBA system will continue to be the basis for the allocation of IDA resources during
the IDA18 period. This annex provides an updated overview of the PBA system and highlights
enhancements agreed during the IDA18 deliberations.
II.

The PBA System for IDA18

2.
The CPR of IDA countries are determined annually, largely based on Country Policy and
Institutional Assessment (CPIA) ratings. The CPIA assesses each country’s policy and institutional
framework and consists of 16 criteria grouped into four equally weighted clusters: (i) economic
management; (ii) structural policies; (iii) policies for social inclusion and equity; and (iv) public
sector management and institutions (Box 1). 111 To ensure that the ratings are consistent with
performance within and across regions, detailed questions and definitions are provided to country
teams for each of the rating levels for each of the 16 criteria. This is followed by a process of
institutional review of all country ratings before they are finalized.
Box 1. CPIA Criteria
A. Economic Management
1. Monetary and Exchange Rate Policies
2. Fiscal Policy
3. Debt Policy and Management
B. Structural Policies
4. Trade
5. Financial Sector
6. Business Regulatory Environment
C. Policies for Social Inclusion
7. Gender Equality
8. Equity of Public Resource Use
9. Building Human Resources
10. Social Protection and Labor
11. Policies and Institutions for Environmental Sustainability
D. Public Sector Management and Institutions
12. Property Rights and Rule-based Governance
13. Quality of Budgetary and Financial Management
14. Efficiency of Revenue Mobilization
15. Quality of Public Administration
16. Transparency, Accountability and Corruption in the Public Sector

111

For details on the CPIA Questionnaire, see: http://pubdocs.worldbank.org/en/203511467141304327/CPIA-Criteria-2015.pdf.

- 106 -

3.
The CPIA underpins IDA’s CPR but is not its only determinant. In addition to the CPIA,
the IDA Portfolio Performance Rating (PPR), 112 which captures the quality of management of
IDA’s projects and programs, enters the calculation of the CPR. As in IDA17, the CPR in IDA18
will be calculated as:
Country Performance Rating = (0.24 * CPIAA-C + 0.68 * CPIAD + 0.08* PPR)
where CPIAA-C is the average of the ratings of CPIA clusters A to C, and CPIAD is the rating of
CPIA cluster D.
4.
The formula underpinning the PBA system is presented below. Country performance (with
an exponent of 3 in the allocation formula)113 is the main determinant of IDA country allocations.
Country needs are also taken into account through population size and GNI per capita. Population
affects allocations positively (with an exponent of 1) while the level of GNI per capita is negatively
related to allocations (with an exponent of -0.125). Specifically,
IDA country allocation = f(Country Performance Rating3, Population, GNI per capita-0.125)
5.
Starting in IDA18, the base allocation will be increased from SDR4 million per year
(SDR12 million per replenishment) to SDR15 million per year (SDR45 million per replenishment)
in order to better meet the fixed costs of country engagement and maintain an effective country
program. This will benefit small states – several of which are FCS.
6.
Country allocations will be determined annually with changes reflecting, inter alia, the
country’s own performance and its performance relative to other countries, IDA eligibility and
availability of IDA resources.
III. Exceptional Regime for Countries Facing “Turn-around” Situations
7.
Post-conflict regime. Only South Sudan will continue to benefit from exceptional support
under the Post-conflict regime during IDA18. South Sudan gained eligibility for exceptional postconflict support in FY13. As per the implementation arrangements under this regime, South Sudan
will benefit from full support under this regime until FY17 and the exceptional support will be
phased out to the regular PBA formula levels by FY23 (as per the original phase out period
established under the Post-conflict regime). In IDA18, all other countries eligible for post-conflict
support in IDA17 will return to the regular PBA system as – following the extension agreed in the
context of the IDA17 discussions – the phasing out period will end in FY17.114, 115

112
113

114

115

The PPR reflects the health of the IDA projects portfolio, as measured by the percentage of problem projects in each country.
The CPR exponent will be reduced from 4 in IDA17 to 3 in IDA18 to increase the poverty-orientation of the regular PBA
system. This will allow an increased IDA engagement in the poorest countries, notably the broader group of FCS, most of
which have low per-capita GNI levels, while preserving the principle of performance orientation in the allocation system.
Countries eligible for exceptional support under the Post-conflict regime in IDA17 are: Afghanistan, Burundi, DRC, Côte
d'Ivoire, Liberia, and South Sudan.
The four countries (Central African Republic, Haiti, Myanmar, and Togo) that benefitted from exceptional support under the
re-engaging regime would also reach the end of the phasing out period in FY17 and revert to the regular PBA system in FY18
unless otherwise deemed eligible for support under the TAR.

- 107 -

8.
Turn-around Regime. A new exceptional regime for countries facing “turn-around”
situations was adopted in IDA17 and will continue in IDA18. All future cases warranting the
delivery of exceptional IDA support will be addressed within this regime, including future postconflict and re-engaging countries as well as countries that have not experienced significant levels
of conflict or accumulated arrears but face a “turn-around” situation. This aims at enhancing
targeting of IDA’s exceptional support in a way that promotes improved policies and institutional
reform and portfolio implementation (see Annex 3 for implementation arrangements).
9.
FCV Risk mitigation. IDA18 establishes a new exceptional risk mitigation regime to
provide a vehicle for enhanced support during IDA18 to countries with increasing risks of FCV
and with governments that are committed to addressing them. This exceptional support would be
additional to their regular PBA allocations and would amount to up to 1/3 of the regular PBA. In
IDA18, Guinea, Nepal, Niger, and Tajikistan will benefit from such support (see Annex 4 for
implementation arrangements).
IV. Other Exceptions
10.
The following specific exceptions to the PBA formula will be in place during the IDA18
period:

116
117



First, the allocation to Pakistan, a country with potential access to IBRD, will be “capped”
and it will receive less than the allocation norms, due to its broader financing options.



Second, IDA may provide exceptional allocations in the aftermath of severe natural
disasters, economic crises and public health emergencies and epidemics from the CRW
(Annex 7).



Third, transitional support will be provided to Bolivia, Sri Lanka and Vietnam during
IDA18. Bolivia will receive transitional support in the amount of SDR99 million; Sri Lanka
will receive transitional support in the amount of SDR303 million; and Vietnam will
receive transitional support in the amount of SDR1.593 billion.



Fourth, there is a special provision for selected regional integration projects. The IDA18
period envisages up to SDR1.2 billion per year for such projects in topping up resources.
These resources would be used to finance up to two-thirds of a country’s share of the costs
of a regional project, with the remaining one-third contribution from the country’s IDA
allocation.116 This co-financing ratio, however, depends on project design and resource
availability. There is a three-country requirement for accessing financing for regional
projects, which is relaxed to two countries when at least one is an FCS.117 In addition,
IDA18 introduces the following enhancements to the Regional Program: (i) the credit/grant
distribution of Regional IDA financing will match that of concessional Core Financing for
all beneficiary countries; (ii) the threshold for triggering the 20 percent cap under the
Regional Program will now be based on the definition of small states – i.e., countries with
a population of 1.5 million or less; and (iii) the establishment of a refugee sub-window

For IDA-eligible small states, their contribution to a regional project is capped at 20 percent of their annual allocation.
Refer to IDA (2010), IDA’s Performance-Based Allocation System: Review of the Current System and Key Issues for IDA16,
http://siteresources.worldbank.org/IDA/Resources/Seminar%20PDFs/73449-1271341193277/PBAIDA16.pdf.

- 108 -

under the regional program to finance projects benefitting refugees and their host
communities. The adjustments to the regional program in IDA17 will remain, including
the ability to finance with resources from the IDA regional program – on a case-by-case
basis and subject to a two-step process of early consultation with and approval by IDA’s
Executive Directors – projects that require financial participation of only one IDA country.
In the latter case, resources from the regional program may be utilized where it can be
clearly demonstrated that the project would have a transformational impact on the region
and that three or more countries (two, if one is an FCS) would receive substantial benefits
from the project. In addition, there will be a cap, on a case-by-case basis and subject to
approval by IDA’s Executive Directors, on the amount that comes from a country’s regular
IDA allocation of 20 percent of a country’s IDA18 allocation in the case of such
transformational regional projects where project costs are very large relative to the
country’s available IDA resources. Financing to support such exceptions would be limited
to 20 percent of the overall IDA18 envelope for regional projects. Access to grants under
the IDA Regional Program will be continued.

V.



Fifth, the IDA18 SUF which provides non-concessional financing and is described in detail
in Annex 6.



Sixth, the PSW, described in “Further Details on the Proposed IFC-MIGA Private Sector
Window in IDA18” (September, 2016).



Finally, eligible countries can qualify for exceptional allocations to help finance the cost
associated with the clearance of arrears to IBRD and/or IDA.118
Disclosure

11.
IDA countries are informed of the performance assessment process, which is increasingly
integrated into the country dialogue. Starting in IDA14, the numerical ratings for each of the CPIA
and CPR criteria have been fully disclosed on IDA’s external website. Starting in IDA15, the
country allocations and commitments have been disclosed annually to the Executive Directors of
IDA on an ex post basis (i.e., at the end of each FY) to increase transparency. Starting in IDA16,
the country allocations and commitments have been disclosed on IDA’s external website.

118

IDA (2007), Further Elaboration of a Systematic Approach to Arrears Clearance,
http://siteresources.worldbank.org/IDA/Resources/Seminar%20PDFs/73449-1172525976405/34928661172526109259/ArrearsClearanceMZ.pdf.

- 109 -

ANNEX 3: IMPLEMENTATION ARRANGEMENTS: EXCEPTIONAL REGIME FOR COUNTRIES
FACING TURN-AROUND SITUATIONS
Implementation Arrangements
1.
This annex sets out the implementation arrangements for the exceptional TAR including
the definition of a turn-around situation, the application process and guidance on the level and
duration of exceptional support.119
Definition of a “Turn-around” Situation
2.
A “turn-around” situation is a critical juncture in a country’s development trajectory
providing a significant opportunity for building stability and resilience to accelerate its transition
out of fragility marked by:


the cessation of an ongoing conflict (e.g., interstate warfare, civil war or other cycles of
violence and/or partial state collapse that significantly disrupt a country's development
prospects); or



the commitment to a major change in the policy environment following:
o a prolonged period of disengagement from IDA lending; or
o a major shift in a country’s policy priorities addressing critical elements of fragility.

Application Process
3.
When Management determines that a country is facing a turn-around situation, it will
inform the Executive Directors of its intention to provide exceptional support. The decision on a
country’s eligibility and the level and duration of support will be informed by: (i) a country
eligibility note; (ii) the potential beneficiary country agreeing to and commencing implementation
of a reform program endorsed by the Bank; and (iii) the feedback received during consultations
with Executive Directors.120
4.

119

120

The country eligibility note will apply a two-filter approach and will at a minimum:


Address the relevant aspects of country eligibility, including the drivers of fragility and
conflict, the nature of the turn-around situation and related challenges and opportunities.



Propose the framework for monitoring the country’s progress towards resilience.

For details on the country eligibility and application process see Implementation Arrangements for Allocating IDA Resources
to Countries Facing “Turn-around” Situations – Background note, September 2013.
This process is similar to the one that Deputies specified for the allocation of resources from IDA’s CRW. For additional
details, see Annex 7.

- 110 -



Indicate the level and duration of the exceptional support to the country, including the
amount of the exceptional allocation for the first year of eligibility.121

Level and Duration of Support
5.
Support under the exceptional TAR will be based on country performance and be informed
by country-specific factors detailed in the country-eligibility note. Country performance will be
measured by the following performance index:122
𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝐼𝑛𝑑𝑒𝑥 = (0.8)𝑃𝐶𝑃𝐼 + (0.2)𝑃𝑃𝑅
6.
The notional maximum level of per-capita support to a given country is detailed in Table
1 below. In general, it will be expected that – subject to absorption capacity– only countries in a
Post-conflict situation would have per-capita allocations close to the notional maximum levels.
Per-capita allocations for other eligible countries would be expected to be lower (around half the
levels in Table 1 below). This guidance will be implemented through the application of a countryspecific scale factor “α”.123 For a country to benefit from the Post-conflict consideration above,
evidence of conflict intensity will be used as per the current exceptional Post-conflict regime.124
Table 1. Exceptional Turn-around Situation Regime – Notional Maximum Per-capita
Allocations
Performance Index

121

122
123

124

2.0 to 2.5

Notional Maximum Per-capita Allocation
(US$ per annum)
7.2

2.5 to 3.0

12.9

3.0 to 3.5

18.2

3.5 to 4.0

25.5

4.0 to 4.5

30.8

Above 4.5

36.5

There will be flexibility on the level of allocations for the first year of eligibility (i.e., allocations higher than the notional
maximum per-capita allocations could be possible). Such flexibility would only be warranted in very special circumstances
(e.g., in cases where the conflict has been extremely destructive, but where the government’s capacity to implement a
comprehensive recovery program has remained strong) and with due regard for absorption capacity considerations.
Where PCPI and PPR are the Post-Conflict Performance Indicator and the Portfolio Performance Rating.
For details see Implementation Arrangements for Allocating IDA Resources to Countries Facing “Turn-around” Situations –
Background note, September 2013.
Candidates for post-conflict considerations will have to fall into one of the following categories: (i) a country that has suffered
from a severe and longstanding conflict which has led to extended inactivity as a borrower, or at least a substantial decline in
the level of external assistance, including from IDA; (ii) a country that has experienced a short but highly intensive conflict,
leading to a disruption of IDA involvement; or (iii) a newly sovereign state that has emerged through the violent break‐up of
a former entity. Furthermore, and as per the past practice under the existing Post-conflict regime, evidence of conflict intensity
will be used to assess the level of support, with at least one of the following assessed as high: (a) extent of human casualties;
(b) proportion of population that is internally displaced; and (c) extent of physical destruction.

- 111 -

7.
Key considerations. Country allocations will be determined as the sum of (i) the SDR15
million minimum base allocation; and (ii) the allocation based on the formula and matrix set out
in paragraphs 5-6 and in Table 1 above. Adjustments may be made in cases where:


The PPR limits the level of exceptional support (e.g., to Post-Conflict countries, inactive
countries, or countries with poor portfolio implementation but where reforms undertaken
as part of the turn-around situation would lead to a qualitative change in project
implementation).



Countries have already benefitted from exceptional IDA support. The level and duration
of the exceptional support already provided by IDA will be factored in when deciding on
the level of per-capita allocations under the exceptional turn-around situation regime.



There are changes in a country’s absorptive capacity. Absorption capacity will be a key
consideration when determining the support level under the exceptional TAR. In some
cases, severe absorption capacity issues could limit the level of exceptional turn-around
support. If warranted by context, consideration could be given to adjust the level of percapita support to respond to a sharp change in a country’s absorption capacity.

8.
The exceptional TAR would not involve a pre-established eligibility period but in most
cases would be expected to last around two to three years. The eligibility for this support would
be linked to the eligible country’s national plan associated with the turn-around situation.
Other Implementation Aspects
9.
Exit mechanism. A country’s eligibility for exceptional turn-around support will be
discontinued (i.e., the country will return to the regular PBA system) under three circumstances.
First, at the end of the eligibility period if the country is no longer in a turn-around situation.125
Second, at the end of the eligibility period if the country’s performance is not satisfactory as per
the monitoring framework set out in the eligibility note. Third, during the eligibility period, if the
country fails to implement the specific measures or reforms considered as critical by the timeline
specified in the eligibility note. In the last circumstance, the return to the regular PBA system will
take place at the beginning of the FY immediately following the date set out in the eligibility note
for the implementation of such critical measures or reforms.126
10.
Re-application. At the end of the eligibility period, and if the “turn-around” process is
successful (as demonstrated by the country’s progress under the monitoring framework set out in
the eligibility note), the country could reapply for continued support under the exceptional TAR.
The decision on renewing a country’s eligibility for exceptional turn-around support will be on a
case-by-case basis and it will involve the same decision process and use the same criteria and
principles as for countries newly applying for eligibility.

125

126

Note that the definition of a turn-around situation entails not only the notion of an opportunity for change but also evidence
of commitment by the country and satisfactory early performance.
At the same time, it is important to avoid on and off interventions –particularly in the FCS context. In that regard, consideration
could be given to continue providing exceptional turn-around support depending on the degree of reversal in a country’s
progress under its turn-around process. If deemed appropriate, the enhanced support could be continued with due consideration
of the country implementing remedial actions and the recalibration of the level of exceptional support.

- 112 -

11.
Phasing out from the exceptional TAR. Unlike the current exceptional post-conflict and
re-engaging regimes, the exceptional TAR does not entail a pre-established phasing out period.
Instead, the return to the regular PBA system will be flexibly determined and the path for the
allocation levels will be modulated as part of the re-application process. In this regard, as part of
the re-application process for continuation of turn-around support both the level and duration of
exceptional support already provided by IDA will be taken into account (this would also apply to
current Post-conflict and re-engaging countries – if and when they apply for the exceptional turnaround support).
12.
Other. The level of exceptional turn-around support provided to any given country has a
notional cap of 7 percent of IDA’s total country-allocable envelope. Also, an indicative cap of 15
percent of the overall IDA Core Financing has been set for support through the exceptional TAR.
Resources allocated under the exceptional TAR but not committed will be re-allocated as part of
the re-allocation exercise undertaken in the last year of a replenishment period.

- 113 -

ANNEX 4: IMPLEMENTATION ARRANGEMENTS FOR THE EXCEPTIONAL FCV RISK MITIGATION
REGIME
1.
Purpose: This regime is intended to provide enhanced support to countries that present
increasing risks of FCV and where governments are committed to addressing them. These could
include risks resulting from internal or external stresses (e.g., as a result of spill-overs, economic
marginalization, lagging regions, political uncertainty or insecurity). The special allocation helps
countries address identified FCV risks or stresses (long-term and/or short-term) and build
institutional resilience to manage them. Eligibility for and implementation of this regime will be
grounded in a recent RRA and/or additional sector analysis, as necessary and will be consistent
with IDA’s development mandate under its Articles of Agreement and related legal and policy
framework.
2.
Activities: The exceptional support will help countries in their efforts to reduce FCVrelated risks, by addressing the underlying causes or drivers of FCV and by building state or
societal institutions that can withstand and manage stress, in line with IDA’s mandate and the
WBG strategic framework for engagement in these countries. Funded operations will be highly
context specific but could include tackling grievances surrounding economic marginalization and
uneven development; reducing conflicts surrounding land use; reducing regional imbalances by
investing in excluded regions; creating meaningful livelihood sources for youth at risk; increasing
transparency in natural resource governance; and improving the quality of justice and conflict
resolution services at the local level.
3.
Eligibility Criteria: Countries eligible for risk mitigation support are identified on the
basis of a two-step selection process. In a first step countries with high risks of FCV are identified
based on a cross-country risk scan that combines quantitative and qualitative assessments. In a
second step, countries are further prioritized on the basis of the following criteria: (i) opportunities
for FCV risk mitigation; (ii) stable macroeconomic framework; and (iii) availability of financial
resources to the country. Any mid-course corrections to the list of eligible countries can be made
at the IDA18 MTR.
4.
As background, for IDA18, the quantitative assessment of the risk scan was run on all 48
non-FCS IDA eligible countries. 24 countries with at least two fragility flags were identified out
of this group.127 The qualitative assessment identified seven countries with “high” FCV risks. An
assessment against the identified eligibility criteria was carried out by the Bank. On the basis of
this assessment, one country was excluded due to limited opportunities to address identified FCV
risks. Two more countries were excluded on the basis of access to other financing (one due to
blend status, the other due to blend status and having a large IDA allocation). On the basis of this
methodology, Guinea, Nepal, Niger and Tajikistan were identified as potential beneficiaries of
exceptional support under the Risk Mitigation regime.
5.
Financing: The risk mitigation regime will provide countries with additional financing
during the IDA18 period on top of their regular PBA allocations for up to three years:

127

One country, Niger, was added due to the very high risks that were identified through a fragility assessment due to the presence
of internal and external stresses to stability in the country.

- 114 -



Volume: Support for an eligible country would amount to up to 1/3 of the country’s
indicative IDA18 allocations with a cap of US$300 million per country per replenishment.



Financing terms: The financing terms will follow the terms of concessional core IDA
financing for the eligible countries.

6.
Governance: Operations or additional financing funded wholly or partially with
exceptional risk mitigation support will be approved by the Board according to established
procedures. In future replenishments, Management will present the cases for eligibility to IDA
Deputies, based on the eligibility criteria, at the time of the first meeting of an IDA Replenishment
and would be discussed in subsequent meetings, similar to the process followed for countries
graduating from IDA.
7.

128

Implementation:


Implementation note. Country teams will prepare a short implementation note for Senior
Management’s endorsement which will be shared for information with the Board. The note
would include: (i) an overview of the critical FCV risks the country faces informed by a
recent RRA;128 (ii) opportunities for risk mitigation (informed by dialogue with the client);
(iii) indicative activities that would be financed and FCV risks that would be addressed
with the additional allocation; (iv) alignment with WBG strategy for engagement in the
country and IDA’s mandate and policies, procedures and other requirements; (iv)
arrangements for monitoring progress; and (v) coordination and/or partnerships with other
development partners and relevant actors and linkages and/or synergies with the proposed
WBG engagement on risk mitigation.



Reporting: Implementation of the risk mitigation allocation will be monitored by
Management on a regular basis. Management will report the implementation experience at
the IDA18 MTR and propose adjustments, if any.



Phase out: In cases where countries no longer meet eligibility criteria (e.g., change in
government commitment, deterioration of the macroeconomic outlook, sustained
improvement in the relevant CPIA subcomponents), Management can decide to phase out
a country from the special allocation and re-allocate uncommitted resources to other IDA
countries under the normal reallocation process. In this case, Management will inform the
Board of the decision which will take effect starting the following FY. At the IDA18 MTR,
Management will report on any decisions taken to phase out eligible countries before the
conclusion of the IDA18 replenishment period.

RRAs are carried out to provide an in-depth understanding of the underlying drivers and proximate causes of fragility and
conflict. They are also used to inform an approach to manage and mitigate identified risks. Under IDA18, a policy commitment
has been made that CPFs in countries “at risk” will be informed by an RRA. This requirement would therefore not impose
additional burden on country teams.

- 115 -

ANNEX 5: IMPLEMENTATION ARRANGEMENTS: REGIONAL SUB-WINDOW FOR REFUGEES AND
HOST COMMUNITIES
1.
Purpose: the overall purpose of the IDA regional sub-window on refugees is to help
refugee host countries to (i) mitigate the shocks caused by an influx of refugees and create social
and economic development opportunities for refugees and host communities; (ii) facilitate
sustainable solutions to protracted refugee situations including through the sustainable socioeconomic inclusion of refugees in the host country and/or their return to the country of origin; and
(iii) strengthen preparedness for increased or potential new refugee flows.
2.
Activities: In line with the overall purpose outlined above, the sub-window would support
projects in host countries that focus on the medium to longer term development needs of refugees
and host communities, not humanitarian needs, which are the mandate of other organizations.
Priority initiatives would include projects that: (i) promote refugees’ welfare and inclusion in the
host country’s socio-economic structures; (ii) support legal solutions and/or policy reforms with
regard to refugees, e.g., freedom of movement, formal labor force participation, identification
documents and residency permits; (iii) help ensure access and quality of services and basic
infrastructure to refugees and host communities; (iv) support livelihoods in host community areas,
tailored to the needs and constraints of refugees and host community members; (v) support policy
dialogue and activities to facilitate and ensure the sustainability of return where refugees go back
to their country of origin; and (vi) strengthen government finances where these have been strained
by expenditures related to their hosting responsibilities.
3.
Eligibility Criteria: A country would be eligible if the number of UNHCR-registered
refugees, including persons in refugee-like situations, it hosts is at least 25,000 or it is at least 0.1
percent of the country’s population. In addition, the country would need to adhere to an adequate
framework for the protection of refugees.129 It would also need to have in place an action plan,
strategy or similar document that describes concrete steps, including possible policy reforms that
the country will undertake towards long-term solutions that benefit refugees and host communities,
consistent with the overall purpose of the sub-window. Country eligibility will also be informed
by quantitative and qualitative analyses on the impact of refugee flows at the country or regional
level. For example, fiscal burden on host governments and/or potential for increased instability
could be considered. The refugee sub-window could provide support for projects benefitting a
single host country because refugees flow from another, often fragile, country.
4.
Financing Incentives for the Refugee Sub-window: Experience with current projects
under preparation suggests that countries already have incentives to access funds from the IDA
Regional Program to support host communities. To motivate governments to also address the
development needs of refugees (i.e., non-nationals), it is proposed that financing incentives in the
form of additional volumes and more favorable terms be provided as discussed below:

129

The World Bank in consultation with UNHCR will determine the adequacy of a country’s refugee protection framework based
on adherence to international or regional instruments such as the 1951 Refugee Convention or its 1967 Protocol, or the
adoption of national policies and/or practices consistent with international refugee protection standards.

- 116 -



Terms of financing: For high risk of debt distress countries, top up funding from the subwindow will be provided on grant terms only. For moderate and low risk of debt distress
countries, top up funding will be provided 50 percent in grants and 50 percent in applicable
credit terms of the beneficiary country. 130



Requirements for national IDA contributions: Regardless of the risk of debt distress,
national contributions would be half those required under the IDA Regional Program.

5.
Governance: This sub-window will follow the same governance structure as in IDA17 for
case-by-case exceptions for regional transformational projects.131


Oversight: A 2-step process (similar to the CRW) of early consultation with and subsequent
approval by the Executive Directors will be followed.
o A short note outlining the rationale for the proposed support will be sent to the
Board for consultation prior to the development of a full project concept note. The
note would include: (i) evidence that the country eligibility criteria are met,
including evidence that a government action plan or strategy to address the refugee
situation exists or is under development; (ii) an analysis of the needs of refugees,
impact on the host communities targeted by the project(s) and related constraints to
enabling refugees’ self-reliance in the given context; (iii) description of proposed
project development objectives, activities and beneficiaries; (iv) the financing
terms for the project and national contribution; and (v) evidence of coordination
and/or joint planning or analysis with other development partners and relevant
humanitarian agencies, in particular UN agencies. Given the particularly difficult
environment in which some of these projects will be implemented, it will be
important that the projects put extra emphasis on risks to achieving project
objectives, and to ensure that all projects are gender-informed.
o Project Approval: Following the Board consultation, projects under the refugee
sub-window would be processed following the same procedures established for the
Regional Program.

6.

Other implementation issues:


130

131

Notional regional allocations: At the beginning of a Replenishment period, notional
regional allocations would be determined based on the number of refugees in IDA countries
eligible for support under this sub-window at the beginning of an IDA cycle. Allocations
per country in a Replenishment under the special sub-window will be capped at US$400
million. This threshold would help assist more countries to benefit from the sub-window.

Where projects will only benefit refugees and not host communities (e.g., economic integration of refugees in local labor
market), on a case by case basis, funding from the refugee sub-window for moderate and low risk of debt distress countries
could be considered in 100 percent grant terms.
“IDA17 Deputies Report: Maximizing Development Impact.” IDA (2014).

- 117 -

ANNEX 6: IMPLEMENTATION ARRANGEMENTS: SCALE-UP FACILITY
1.
In view of very strong client demand for non-concessional resources, IDA will extend use
of the IDA17 SUF arrangements to IDA18, as many IDA clients can absorb additional financing
– even if at non-concessional terms – to meet their increasingly ambitious development agendas.
As detailed below, and as emphasized under implementation arrangements for the IDA17 SUF,
the IDA18 Facility will take into account individual countries’ debt situation, while ensuring
consistency with IDA’s Non-Concessional Borrowing Policy (NCBP) and the IMF’s Policy on
Public Debt Limits in Fund-Supported Programs (Debt Limits Policy), and avoiding concentration
of SUF resources in a few countries only.
2.
This annex presents detailed implementation arrangements for the SUF in IDA18. These
correspond largely to those of the IDA17 SUF but have been enhanced to better reflect the possible
use of resources for regional programs and promote the targeting of resources to IDA-only
countries.132
Implementation Arrangements for the IDA18 SUF
3.
Purpose: The IDA18 SUF is designed to scale up IDA financing for country specific
and/or regional operations during the IDA18 period. The SUF makes available up to US$6.2
billion to IDA countries on non-concessional (IBRD) lending terms.133,134 These resources are in
addition to the regular concessional resources that countries will receive in IDA18, making them
especially useful where PBA allocations are insufficient to support transformational initiatives.
4.
Eligibility criteria: Given IDA’s strong emphasis on country debt sustainability, only
IDA-eligible countries at low or moderate risk of debt distress will be eligible to utilize IDA18
SUF financing.
5.

Operations financed under the IDA18 SUF may include:


Investment Project Financing in any sector, including use of guarantees;



Development Policy Financing, including CAT-DDOs; and



Program for Results financing.

6.
Allocation framework: The broad principles underlying the IDA18 SUF allocation
framework are grounded in a focus on regional equity, performance and poverty. The Bank’s
Development Finance Vice-Presidency (DFi) will initially provide each Region with an indicative
allocation of SUF resources based on the PBA shares. To ensure equity in the allocation of
132

133

134

For example, projects currently prioritized to receive resources available through the IDA17 SUF include regional transport
and railway projects benefitting Rwanda, Uganda, Mali and Senegal.
Lending terms include currency choice, tenor, grace period and amortization profile, interest rate and other fees. IBRD loan
pricing is subject to annual and periodic reviews. Current pricing and lending terms are available on World Bank Treasury
website: http://treasury.worldbank.org/bdm/htm/ibrd.html.
Additional donor contributions in the form of grants or CPLs could also be used to buy down the cost of financing to provide
funding for climate change and/or other IDA18 policy priorities.

- 118 -

resources, the notional regional allocation will be set equivalent to each Region’s share of core
concessional IDA.135 However, the corporate review process described below, a desire to support
operations with strong poverty orientation (for instance, projects in IDA-only countries), or lack
of eligible projects in a particular Region could result in deviations from the initial allocation.
7.
Prioritization: The primary goal of the prioritization process is to channel additional
resources to IDA projects – single country or regional – with potential for strong returns on
investment, development impact and growth dividends.136 Regions will prioritize operations with
expected high returns and impact that advance the objectives of the WBG strategy for the country
(e.g., the CPF), are aligned with the WBG goals, and best promote the IDA18 policy priorities.
Participants advised that the allocation of SUF resources should be appropriately balanced between
IDA-only and blend countries. In this regard, they asked that Management should attempt to
achieve a distribution of SUF resources to groups of eligible IDA-only countries and blend
countries that broadly conforms to those groups of countries’ overall shares of the PBA.137 In the
case of blend countries, SUF resources will first be considered as additional resources for IDA
operations that cannot be financed in the absence of SUF resources. In addition, in blend countries
where SUF financing may be viewed as a substitute for available IBRD resources, Bank Regions
will consider whether IBRD headroom thus preserved will be utilized to advance the WBG goals
and IDA18 priorities. The following additional elements will help prioritize the operations
proposed for the facility:


Debt sustainability: The first prioritization criterion will ensure that low risk countries are
the highest priority followed by moderate risk countries.



Capacity: Among countries prioritized under the debt sustainability criterion above,
countries with the capacity to absorb the resources well (assessed by considering both a
country’s CPIA score along with its portfolio performance) will be further prioritized.



SUF soft prioritization filters: As a soft filter, particular attention will be given to the ability
of an operation to crowd in resources – including from the private sector, support resilience
building (e.g., investments related to climate change, disaster risk reduction or pandemic
preparedness), deliver benefits beyond or across borders, and/or drive economic
transformation, including through support of countries’ Nationally Determined
Contributions (NDCs) agreed as part of COP21. Priority will be given to promoting
integration within a regional grouping by supporting modern economic infrastructure in
line with low carbon development.

8.
Review process: The above prioritization process will first be conducted at the regional
level in order to identify projects or programs within each region. A corporate vetting process will
be established to ensure that the quality of projects or programs proposed to be financed by each
region is consistent on a Bank-wide basis.
135

136

137

Additional links to the principles underpinning the PBA are embodied in individual country caps linked to each country’s
allocation of core IDA, with greater flexibility considered for small countries given their relatively small core IDA allocations.
For further elaboration, see OP 10.00, Investment Project Financing, paragraphs 1-10, OP 8.60, Development Policy
Financing, paragraphs 2-3, and Bank Policy, Program-for-Results Financing | Catalogue Number OPCS5.04-POL.01, pp. 57.
The share of SUF resources utilized to support IDA-only countries will be monitored on a continuing basis, with
implementation progress reported to Deputies at the IDA18 MTR.

- 119 -

9.
Role of Executive Directors: Following corporate vetting, projects or programs endorsed
to be financed under the Facility will be subject to regular Bank project or program preparation
and review processes The list of operations planned to be financed under the IDA18 SUF will be
shared with the Board for information and each operation financed with the Facility’s resources
will be sent to the Executive Directors for their approval. In addition, Management will report on
implementation experience under the IDA18 SUF at the IDA18 MTR and shortly after the
conclusion of the IDA18 period.

- 120 -

ANNEX 7: IMPLEMENTATION ARRANGEMENTS: THE CRISIS RESPONSE WINDOW
1.
This Annex sets out the implementation arrangements that Management would follow in
order to access CRW resources in case IDA countries were affected by severe economic crises,
natural disasters, and health emergencies during the IDA18 period.
A. CRW Support in Case of Economic Crisis
2.
In the immediate aftermath of a severe economic crisis, Management will inform the Board
of its intention to access CRW resources. To trigger access to CRW resources, Management would
present its analysis of the nature of the shock and the severity of the impact on IDA countries and
its recommendation to Executive Directors. Management’s analysis would: (i) demonstrate that
responding to the crisis is in line with CRW objectives and guiding principles and that the shock
has been caused by exogenous factors and has a severe impact on a significant number of countries;
(ii) propose the overall volume of CRW resources to be allocated in response to the event and
present its rationale (factoring in the nature and scope of the crisis as well as the resources available
in the CRW and highlighting if additional donor contributions are warranted); and (iii) propose the
framework for allocating the approved resources across countries and present its rationale. Board
approval for the provision of CRW support as well as the proposed amount will be sought as part
of the documents for the projects financed by the CRW.
3.
Where an economic crisis is caused by external terms of trade shocks or financial market
disruptions, Management would also reflect the views of IMF staff on the overall extent and nature
of the shock and, to the extent possible, the impact on the individual countries and relevant
information regarding their macroeconomic policy framework drawing primarily on existing
publicly available IMF report(s). Individual operations would be submitted subsequently for Board
approval on an accelerated basis and in accordance with existing World Bank policies and
procedures. As is current practice, the staffs of the Bank and IMF would collaborate closely on
individual country cases.
4.
Trigger: CRW support would be triggered by evidence of a crisis that is caused by an
exogenous shock which affects a significant number of IDA countries. Specifically, the crisis
should be expected to result in a widespread or a regional year-on-year GDP growth decline of 3
percentage points or more in a significant number of IDA countries. The projected year-on-year
GDP growth decline will be assessed using data from the IMF’s World Economic Outlook (WEO)
database. Support from the CRW could also be considered in the event of a severe price shock that
did not result in a GDP growth decline in line with this trigger if: (i) the shock is broad based and
deemed severe in terms of fiscal impact (i.e., additional spending for targeted interventions to
protect vulnerable groups); (ii) there is consensus that a concerted international response is needed;
and (iii) the existing IDA country allocations are deemed insufficient to provide an adequate
response.
5.
Country eligibility: All IDA countries are in principle eligible for CRW support. The
eligibility of specific countries would be determined primarily by the expected impact of the crisis
on GDP. A year-on-year decline of GDP growth of 3 percentage points or more would be the
threshold to identify countries that could be eligible for CRW support. This preliminary ring-

- 121 -

fencing would be vetted by an analysis of available fiscal data and other relevant data in line with
the CRW objective to protect or mitigate the impact on core spending in the short-term and avoid
derailing long-term development objectives (e.g., the magnitude of the impact of the crisis, access
to alternative sources of financing, and ability to finance recovery using the country’s own
resources). As a result of such analysis, countries where the crisis did not have a significant fiscal
impact could be excluded from CRW support eligibility, even if they did experience the 3
percentage point decline in GDP growth.
6.
Fiscal analysis: The fiscal analysis required to support assessments of country eligibility
and the allocation framework would cover government revenues, spending and financing plans to
estimate the core development spending at risk. Core development spending at risk is defined as
the amount needed to maintain the pre-existing path of spending on education, health and
operations and maintenance of existing infrastructure, and to maintain, or potentially increase
depending on the nature of the crisis, spending on safety nets.
7.
Allocation of resources among eligible countries: The allocation framework would
follow a two-stage approach based primarily on the fiscal analysis above. Countries with the
greatest impact would receive proportionately more resources than those with a lower impact.


In the first stage, the bulk (at least 75 percent) of the resources would be allocated. In the
second stage, allocations would be adjusted (using the share of resources not allocated in
the first round) in light of additional country specific information related to crisis impact,
resource requirements and capacity to mobilize an effective response through the use of
additional resources. The allocation framework would calculate allocations on a per capita
basis (to take account of country-size).



While designing the allocation framework, consideration would be given to include: (i) a
base allocation to ensure a meaningful response, particularly for small states; and (ii) a cap
to the resources allocated to any one country or group of countries (originally the cap was
set at 5 percent of total resources); such a cap could be particularly relevant in cases where
the same event affects countries or groups of countries with different lags to avoid the risk
of a first-come first-served approach that could lead to depletion of finite resources.



Finally, in the second stage, a country’s allocation could be increased by up to 33 percent
above the Stage 1 allocation by the region. Allocations under Stage 2 would be based on
the following criteria: country impact, resource needs and availability, and ability to
effectively use resources. To ensure transparency in the use of Stage 2 allocations, country
teams would use a standard template to request CRW resources under Stage 2.

8.
Use of funds: Allocated CRW resources are expected to be rapidly processed using
accelerated procedures. Teams would be encouraged to utilize instruments which result in projects
being rapidly implemented. Consequently, the bulk of the projects are expected to be provided
through Additional Financing for investment credits or grants, supplemental DPOs or grants and/or
Emergency credits or grants. In line with existing IDA policies, there will be no sectoral or
thematic earmarking under the CRW, though project selection would be expected to reflect the
findings of the fiscal analysis undertaken at the trigger/allocation stages. Countries would be
encouraged to give priority to use the resources to protect core spending on health, education,
social safety nets, infrastructure, and agriculture.

- 122 -

9.
Terms: The terms of assistance are identical to those under which IDA assistance is
provided to a particular country.
B. CRW Support in Case of Natural Disasters
10.
In the immediate aftermath of a severe disaster Management will inform the Board of its
intention to access CRW resources. Management would demonstrate that CRW support would be
an appropriate part of the Bank’s overall response, complementary to that of the UN, and provide
an early estimate of the support to be provided under the CRW with a clearly spelled out rationale.
This estimate will be conservative and subject to adjustment as better information becomes
available. Board approval for the provision of CRW support as well as the proposed amount will
be sought as part of the documents for the projects financed by the CRW.
11.
Trigger: The CRW would be triggered only in case of natural disasters that are
exceptionally severe and intense. Parametric data on disaster frequency and impact would be used
to corroborate the extent to which an event would qualify for CRW resources, but would not be
the only basis of eligibility.138
12.
Allocation of resources: IDA Management would follow a two stage process that takes
account of the need to provide an early signal regarding the potential availability and quantum of
resources, while also reserving the flexibility to adjust decisions as more information becomes
available.
13.
In the first stage, in the immediate aftermath of catastrophic natural disasters Management
would review available impact data to form an early assessment regarding the need to access CRW
resources. As immediate post-disaster impact data will tend to be limited and evolving, this
assessment may also take account of whether the affected country has: (a) issued a declaration of
emergency; (b) requested CRW resources; and (c) requested a PDNA or a Damage and Loss
Assessment (DaLA).139 Lastly, it would take account of the WBG’s capacity to respond without
accessing the CRW. It should also outline cooperation with the UN, in particular with Office for
the Coordination of Humanitarian Affairs (OCHA).
14.
In the second stage, the initial impact data would be validated with the outcomes of
PDNA/DaLA and other information, in order to calculate a final allocation. The final decision on
the size of the CRW allocation will be informed by IDA’s past practice and would take account of
the following factors: (i) information on the severity of the crises and cost of recovery from
PDNA/DaLAs; (ii) number of affected persons (defined as persons rendered homeless and/or
incurred loss of income or livelihood); (iii) estimates of impact on GDP; (iv) availability of
resources to respond to the crisis from: (a) the IDA portfolio; (b) domestic sources; and (c) other
external financing (including IBRD); and (d) the amount of resources left in the CRW; (v)
138

139

Parametric data such as the magnitude of an earthquake on the Richter’s Scale do not accurately reflect the impact of a disaster,
since the severity of impact also depends on for example, disaster preparedness and proximity to human settlements.
PDNAs/DaLAs provide a reliable, internationally recognized and government-owned mechanism to verify the impacts
(damage and losses) of a disaster. They would also: (a) provide a comprehensive estimate of overall and multi-sectoral disaster
recovery needs; (b) incorporate disaster risk reduction as an agreed element of the disaster recovery framework; and (c) reflect
multi-stakeholder consensus over sectoral recovery strategies.

- 123 -

absorptive capacity; (vi) issuance of UN Flash Appeal; and (vii) country size (e.g., small states
status).
15.
Terms: The terms of assistance are identical to those under which IDA assistance is
provided to a particular country. For countries exposed to severe natural disasters leading to
significant damage and losses of over a third of GDP, IDA’s financing terms can be adjusted, if
warranted, based on an updated debt sustainability analysis in the aftermath of the crisis.
C. CRW Support in Case of Public Health Emergencies
16.
In the immediate aftermath of a public health emergency Management will inform the
Board of its intention to access CRW resources. Management would demonstrate that CRW
support would be an appropriate part of the Bank’s overall response, complementary to that of the
UN and other development partners, and provide an early estimate of the support to be provided
under the CRW with a clearly spelled out rationale. This estimate will be conservative and subject
to adjustment as better information becomes available. Board approval for the provision of CRW
support as well as the proposed amount will be sought as part of the documents for the projects
financed by the CRW.
17.
Trigger: The CRW would be triggered only in case of a public health emergency when:
(i) a country affected by a public health emergency or epidemic has declared a national public
health emergency; and (ii) The WHO has declared that the outbreak is of potential international
importance, under WHO’s Global Alert and Response system in accordance with the International
Health Regulations, 2005.
18.
Allocation of resources: IDA management would follow a two stage process that takes
account of the need to provide an early signal regarding the potential availability and quantum of
resources, while also reserving the flexibility to adjust decisions as more information becomes
available.
19.
In the first stage, upon the declaration of in a public health emergency, Management would
review available impact data to form an early assessment regarding the need to access CRW
resources. This assessment may also take account support from the PEF when operational, and
whether the affected country and WHO has: (a) issued a declaration of public health emergency;
(b) requested CRW resources; and (c) requested a Needs Assessment. 140 Lastly, it would take
account of the WBG’s capacity to respond without accessing the CRW.141 The assessment would
also take into consideration cooperation with the UN, in particular with WHO, and other
development partners.
20.
In the second stage, the initial impact data would be validated with the outcomes of the
needs assessment and other information, in order to determine a final allocation. The final decision
on the size of the CRW allocation will be informed by IDA’s past practice and would take account
140

141

This would: (a) provide a comprehensive estimate of overall needs done in collaboration with other partners including the
WHO; (b) incorporate impact on countries’ economies and public finances; and (c) reflect on the impact of the public health
emergency on the countries’ medium/long-term development goals.
This would include assistance from the proposed Pandemic Emergency Facility.

- 124 -

of the following factors: (i) information on the severity of the emergency and cost of response; (ii)
number of affected persons (defined as persons affected and/or incurred loss of income or
livelihood); (iii) estimates of impact on GDP; (iv) availability of resources to respond to the crisis
from: (a) the IDA portfolio; (b) domestic sources; and (c) other external financing (including IBRD
and PEF); and (d) the amount of resources left in the CRW; (v) absorptive capacity; (vi) issuance
of UN Flash Appeal; and (vii) country size (e.g., small states status).
21.
Terms: The terms of assistance are identical to those under which IDA assistance is
provided to a particular country, unless other provisions are made.

- 125 -

ANNEX 8: IMPLEMENTATION OF IDA CAT-DDOS
1.
Scope: The scope of the CAT-DDO for IDA clients would be the same as that for IBRD
countries, covering shocks related to natural disasters and/or health-related emergencies.
2.
Eligibility and Pre-approval Criteria: Pre-conditions would be the same as those of the
IBRD instrument. The CAT-DDO would be offered to all IDA-eligible clients – including blend
countries – which have: (i) an appropriate macroeconomic policy framework; and (ii) preparation
for or existence of a satisfactory disaster risk management program that addresses natural disasters
and/or health-related shocks. Countries that receive CAT-DDO financing could still tap the CRW
for additional resources, should the CAT-DDO prove insufficient amid larger-than-expected crisis
needs.
3.
Drawdown Trigger: Same as IBRD. Drawdown is available only if a pre-specified trigger
linked to a catastrophe – typically the member country’s declaration of a state of emergency – has
been met.
4.
Drawdown: Clients may draw up to the full CAT-DDO amount at any time within three
years from signing, with option to renew the instrument and drawdown period.
5.

Renewal: The CAT-DDO may be renewed once, for a total drawdown period of six years.

6.
Country Limit: The country limit will be set at a maximum of US$250 million or 0.5
percent of GDP, whichever is lower. To permit an adequate level of crisis financing, IDA clients
with limits (as calculated above) below US$20 million would be accorded the flexibility to request
a CAT-DDO up to a maximum of US$20 million.
7.
Overall Portfolio Limit: The size of IDA’s overall CAT-DDO portfolio will be capped at
US$3 billion. This allows IDA the space to accumulate experience with the new instrument in a
financially prudent manner. The overall portfolio cap could be reviewed at the IDA18 MTR.
8.
Allocation:142 Clients would have the option to access the CAT-DDO via their core IDA
allocations (PBA), Undisbursed Balances, and the SUF (for countries eligible for SUF access).143


142

143

PBA: A 50-50 co-payment rule will be applied to the portion of the CAT-DDO that is
funded by a country’s PBA. That is, IDA would match the country’s PBA contribution
with a notional equal amount. This co-payment rule strikes a balance between not unduly
discouraging usage and ensuring that there is client ownership. The 50 percent coverage
from the country’s PBA is also informed by IBRD’s historical drawdown on CAT-DDOs.
However, two caveats remain. First, the likelihood of drawdown by IDA countries could
be higher than the IBRD clientele given their more limited capacity in crisis management.

Consideration could be given to allowing countries to utilize the Regional Program for an eligible regional CAT-DDO. This
would be explored at the IDA18 MTR.
For credit risk management purposes, the IBRD CAT-DDO is treated as exposure – with implications for loan loss
provisioning, capital charge and exposure limits – at the time of effectiveness, rather than at the time of drawdown. Similar
treatment would be applied to IDA CAT-DDOs.

- 126 -

Second, a corollary of the co-payment rule is that IDA could potentially require additional
resources to fund its copayment share if drawdown rates are higher than expected. While
this risk is limited by the overall portfolio cap on CAT-DDOs, the funding of such higherthan-expected drawdowns could require adjustments to the IDA program that would be
reviewed at the IDA18 MTR.


Undisbursed Balances: Alternatively, a CAT-DOO can be funded from the country’s
undisbursed balances, in which case it would be fully funded. This would be permitted for
an amount up to five percent of the client’s aggregate undisbursed balances, with the
understanding that this should avoid or minimize disruption to ongoing programs.
Exceptions to the ceiling could be considered at corporate review meetings.



SUF: A CAT-DDO can also be fully funded through the SUF.

9.
Pricing:144 A front-end fee and renewal fee would apply to the IDA CAT-DDO. These
fees will be set at 0.50 percent and 0.25 percent respectively for CAT-DDOs under the SUF option,
similar to IBRD. Both fees will initially be set at 0 percent for CAT-DDOs under the PBA and
Undisbursed Balances options (for which countries would use their scarce concessional envelope).
Upon drawdown, IDA concessional rates would apply if the client elects the PBA or Undisbursed
Balances options, and non-concessional (IBRD) rates would apply if it elects the SUF option.
10.
Currency: SDR and currencies of the SDR basket, subject to IDA’s single currency
lending policies.
11.
Repayment: Repayment terms would follow that of (i) standard IDA concessional loans
applicable to the country, if the PBA option or Undisbursed Balances option is elected, or (ii) SUF
loans, if the SUF option is elected.
12.
Recommitment of Undisbursed Balances: The client would be allowed to recommit the
PBA portion of undisbursed CAT-DDO balances upon expiry.

144

The front-end fee and renewal fee are subject to periodic review. Similar to the IBRD counterpart, there would not be a
commitment charge levied on the IDA CAT-DDO.

- 127 -

ANNEX 9: IMPLEMENTATION OF THE CONCESSIONAL PARTNER LOAN FRAMEWORK
1.

This Annex summarizes the IDA18 CPL framework, which includes the final updates.

2.
In order for debt funding to be sustainably incorporated into IDA18’s financing framework,
the borrowing terms of the concessional loans should have features similar to IDA credits.
Furthermore, to ensure equity of treatment and transparency, a limited number of loan options
should be offered from which Partners could select. As such, under the IDA18 CPL framework, it
is proposed that concessional loans have terms as follows:

145
146

147



Maturity: Maturities would be either 25 or 40 years in line with the terms of IDA’s credits.



Grace period: The grace period would be 5 years for a 25-year loan or 10 years for a 40
year loan.



Principal repayment: Principal repayments of concessional loans would begin after the
grace period. At that point, a straight-line amortizing repayment schedule would be applied,
minimizing debt servicing costs to IDA and closely matching the repayment terms of the
underlying IDA credits. For 25 year credits, principal would amortize at a rate of 5 percent
per annum while for 40 year credits, principal would amortize at a rate of 3.3 percent per
annum.



Coupon/Interest: IDA concessional loans would have an all-in SDR equivalent coupon of
up to 1 percent.145 Partners have the option to provide additional grant resources to bridge
the difference between the coupon rate on the CPL and their targeted coupon rate if
higher.146 For CPLs denominated in currencies with negative interest rates corresponding
to the maximum SDR 1 percent interest rate allowed by the framework, Partners have the
additional option to provide a CPL with coupon rate equivalent to 0 percent in the CPL
currency and to meet the remaining grant element requirement of the framework by
providing a larger volume of CPLs.147



Prepayment: In order to ensure IDA’s financial sustainability, IDA may prepay the
outstanding balance of the CPL, in whole or in part, without penalty.



Effectiveness: The loan shall become effective upon signature of a loan agreement by the
parties.



Currencies: IDA would accept concessional loans in SDRs, any one of the SDR basket
currencies, namely the US Dollar, Euro, Japanese Yen, British Pound and Chinese
Renminbi.



Drawdown: The concessional loans would be drawn-down in three equal installments over
a maximum 3-year period. At its discretion and with the agreement of the loan provider,
Management may draw down over shorter periods as it deems necessary.

The all-in cost may also be achieved by providing additional grants to ensure coupon equalization.
The “targeted rate” is the desired coupon rate selected by Partners. This rate should be between 0 percent and 1 percent in
SDR terms, or between 0 percent in SDR terms and 0 percent in CPL currency terms, when the 0 percent CPL currency rate
is higher than 1 percent in SDR terms. The target coupon rate will be used to calculate the grant element of the CPL.
This implies a higher coupon rate than the maximum SDR 1 percent coupon rate and is a result of the interest floor. Fair
treatment across Partners will be ensured by using the actual coupon rate of the CPL to calculate the loan’s grant element to
determine voting rights and compliance with the minimum grant contribution benchmark.

- 128 -

3.
Grant Contribution: Partners providing concessional loans in IDA18 are expected to
provide basic grant contributions equal to at least 80 percent of the Minimum Grant Contribution
Benchmark and target the total Grant Equivalent Contribution (which include basic contribution
from grant and grant element of CPLs) to at least their Minimum Grant Contribution Benchmark.
Partners could select their preferred Minimum Grant Contribution Benchmark as 100 percent of
their total Grant Equivalent Contribution based on IDA16, IDA17 or a combination of previous
replenishment using IDA16 as a starting point (2 x IDA16 – IDA17), as the Partner prefers. The
Minimum Grant Contribution Benchmark could also be based on the Currency of Pledge, National
Currency or SDR amounts, as the Partner prefers.
4.
Grant Element: As agreed under the IDA17 CPL framework, upon receipt of the
concessional funding from IDA partners, the grant element of the CPLs (which reflect the financial
benefits to IDA from the CPLs) will be recognized for voting rights and burden share purposes.
The grant element is a function of the terms of a loan. The terms of the loan determine the cash
inflows and outflows related to the loan and the grant element is effectively the ratio of the present
value of the debt service to the present value of the loan disbursements, which can be expressed
with the formula below:

Where:
DFi = Discount factor at period i, calculated using the discount rate of CPL framework
CFSi = Cash flow from debt service at period i
DFj = Discount factor at period j, calculated using the discount rate of CPL framework
CFDj = Cash flow from loan disbursement at period j
5.
Discount rate to calculate grant element: As agreed during the second IDA18
Replenishment meeting in Myanmar, the discount rate used to calculate the grant element will be
based on IDA’s projected funding cost in the market. Table 1 below lists the discount rates by
currency and by loan terms.

- 129 -

Table 1. IDA18 CPL Discount Rates
Currency

Projected funding cost/Discount rate
25-year CPL

40-year CPL

USD

2.93%

3.27%

JPY

0.47%

0.87%

GBP

2.35%

2.52%

EUR

1.50%

1.78%

CNY

4.08%

4.63%

SDR

2.35%

2.70%

6.
The currency-specific discount rates under the IDA18 framework allow Partners to
calculate the grant element in each individual currency. In addition, the conversion of CPL coupon
rates between SDR currencies will be based on the principle that the grant element generated on
CPLs in different currencies will be equivalent. For example, a 1 percent SDR 25-year maturity
loan will have the same grant element of 15.8 percent as a USD CPL with a coupon of 1.51 percent;
a EUR CPL with a coupon of 0.24 percent; a JPY CPL with a coupon of -0.68 percent; a GBP CPL
with a coupon of 1 percent; or a CNY CPL with a coupon of 2.52 percent. Under this approach,
Table 2 provides the corresponding coupon rates between SDR and SDR currencies and Table 3
provides the grant element generated from CPLs with different coupon rates.
Table 2. Corresponding Coupon Rates between SDR and the Currencies of the SDR
Basket148
25-year CPL with 3-year disbursement schedule
Corresponding coupon rates:
SDR

0.00%

0.50%

1.00%

1.50%

2.00%

USD

0.47%

0.99%

1.51%

2.04%

2.56%

JPY

-1.54%

-1.11%

-0.68%

-0.25%

0.18%

GBP

0.00%

0.50%

1.00%

1.50%

2.00%

EUR

-0.69%

-0.22%

0.24%

0.71%

1.18%

RMB

1.39%

1.95%

2.52%

3.09%

3.66%

148

The corresponding coupon rate and grant element of the SDR basket currencies for a specific SDR rate will be slightly different
if the disbursement schedule is changed (i.e., for a 1-year disbursement schedule).

- 130 -

40-year CPL with 3 year disbursement schedule
Corresponding coupon rates:
SDR

0.00%

0.50%

1.00%

1.50%

2.00%

USD

0.38%

0.92%

1.45%

1.98%

2.52%

JPY149

-1.27%

-0.87%

-0.48%

-0.08%

0.32%

GBP

-0.12%

0.37%

0.86%

1.35%

1.84%

EUR

-0.63%

-0.18%

0.26%

0.71%

1.16%

RMB

1.28%

1.89%

2.51%

3.12%

3.74%

Table 3. Illustrative Grant Elements from CPLs at Different Coupon Rates

25-year CPL with 3-year disbursement schedule
SDR coupon rate

0.00%

0.50%

1.00%

USD coupon rate

0.47%

0.99%

1.51%

JPY coupon rate

-1.54%

-1.11%

-0.68%

GBP coupon rate

0.00%

0.50%

1.00%

EUR coupon rate

-0.69%

-0.22%

0.24%

RMB coupon rate

1.39%

1.95%

2.52%

Grant element

27.55%

21.65%

15.76%

40-year CPL with 3-year disbursement schedule
SDR coupon rate

0.00%

0.50%

1.00%

USD coupon rate

0.38%

0.92%

1.45%

JPY coupon rate

-1.27%

-0.87%

-0.48%

GBP coupon rate

-0.12%

0.37%

0.86%

EUR coupon rate

-0.63%

-0.18%

0.26%

RMB coupon rate

1.28%

1.89%

2.51%

Grant element

46.20%

37.58%

28.97%

- 131 -

7.
Option of an interest rate floor for Partners who contribute in currencies where the
equivalent of one percent SDR (maximum interest rate of the CPL framework) is a negative
rate. With this option, Partners can provide a loan at 0 percent in the CPL currency.150 The zero
percent floor means that the loan coupon rate will be higher than the maximum 1 percent SDR
rate. Fair treatment across Partners will be ensured by using the 0 percent coupon rate of the CPL
to calculate the loan’s grant element to determine voting rights and compliance with the minimum
grant contribution benchmark (aka, “80/20 rule”). Using the 0 percent CPL currency rate will result
in a lower grant element, which implies that the loan provider needs a larger loan to meet the
minimum grant contribution requirement.
Figure 1. Illustration of Interest Rate Floor for 40 year CPLs with Negative Rates

8.
As part of the IDA18 CPL framework, IDA will require that Partners provide their
Instruments of Commitment before IDA can sign a CPL agreement with the partner
country. This requirement is to enhance the fairness between CPL providers grant providers,
where Instruments of Commitment are required before the grant payment can be received. In
addition, in case a Partner plans to provide additional grant resources to lower the coupon rate on
the CPL, IDA would require the payment of the additional grant by the Partner as a prerequisite
for IDA to accept the disbursement from the CPL. This is to protect IDA from paying a high
borrowing cost on CPL without receiving the related grant payment that ensures the required
concessionality.
9.
If a Partner elects to make this additional grant payment up front, the required payment
amount will be calculated based on the present value of the difference in future cash flows between
the original coupon payments and the targeted coupon payments. The same discount rate in the
CPL framework will be used as well in the present value calculation. The Partner can make the
additional grant payment over several installments only if the CPL has the same disbursement
schedule (which has a maximum period of 3-year) and if the present value of the additional grant
payments is maintained. Table 4 illustrates the additional grant payments required at different
original and targeted coupon rates.
149
150

0 percent coupon rate in JPY would equal to 1.6 percent rate in SDR.
This 0 percent coupon rate could also be achieved through a combination of a higher coupon rate loan with a supplemental
grant.

- 132 -

Table 4. Illustration of Additional Grant Payments Required to Bridge the Original and
Target Coupon Rates
1,000 million, 25-year CPL with 3-year disbursement schedule

151

Currency

Original
Coupon

Targeted
Coupon

Difference
(Original
vs. Target
Coupon)

Discount
Rate

Additional
Grant (up
front) in
currency

USD

2.51%

1.51%

1.00%

2.93%

109 million

JPY

0.32%

-0.68% 151

1.00%

0.47%

136 million

GBP

2.00%

1.00%

1.00%

2.35%

115 million

EUR

1.24%

0.24%

1.00%

1.50%

124 million

RMB

3.52%

2.52%

1.00%

4.08%

100 million

SDR

2.00%

1.00%

1.00%

2.35%

115 million

Partners would have flexibility to buy down to 0 percent interest rate floor. Such buy-down would require lower additional
grant contribution, but would result in lower CPL grant equivalent.

- 133 -

ANNEX 10: DOCUMENTS PROVIDED FOR THE IDA18 REPLENISHMENT
March 14 to 15, 2016 in Paris, France
Discussion Papers:
-

Setting the Agenda for IDA18: Strategic Directions (March 2016)
Review of IDA’s Graduation Policy (March 2016)
Effective Foreign Exchange Rates for Use in the IDA18 Replenishment (March 2016)
Integration of IDA Special Themes in Country Partnership Frameworks – Background
Note (March 2016)
Factors Affecting Data Quality for Collecting, Aggregating, and Reporting Tier I and II
Indicators of the IDA Results Measurement System – Background Note (March 2016)
Background Note on ADF and IDA Collaboration (March 2016)
IDA’s Long Term Financial Capacity and Leveraging Options (March 2016)
(Confidential)*

June 21 to 24, 2016 in Nay Pyi Taw, Myanmar
Discussion Papers:
-

IDA18 Overarching Theme: Towards 2030: Investing in Growth, Resilience and
Opportunity (June 2016)
IDA18 Special Theme: Jobs and Economic Transformation (May 2016)
WBG Collaboration: Proposal for an IFC-MIGA Private Sector Window in IDA18 (June
2016)
IDA18 Special Theme: Governance and Institutions (May 2016)
IDA18 Special Theme: Gender and Development (May 2016)
IDA18 Special Theme: Climate Change (May 2016)
IDA18 Special Theme: Fragility, Conflict and Violence (May 2016)
The Way Forward for IDA18: The IDA18 Results Measurement System (May 2016)
The Demand for IDA18 Resources and the Strategy for their Effective Use (May 2016)
IDA18 Financing and Leveraging Framework (May 2016) (Confidential)*

October 10-11, 2016 in Washington D.C., USA
-

Updated IDA18 Operational and Financing Framework (September 2016) (Confidential)*
Further Details on the Proposed IFC-MIGA Private Sector Window in IDA18 (September
2016)
Draft of IDA18 Deputies’ Report (September 2016)

December 14-15, 2016 in Yogyakarta, Indonesia
*

Draft of IDA18 Deputies’ Report

These papers were not publicly disclosed as per the World Bank’s Access to Information Policy which excludes disclosure of
papers that contain confidential financial projections.

- 134 -

ANNEX 11: DRAFT IDA18 RESOLUTION
Board of Governors
Additions to Resources: Eighteenth Replenishment
WHEREAS:
(A)
The Executive Directors of the International Development Association (the “Association”)
have considered the prospective financial requirements of the Association and have concluded that
it is desirable to authorize a replenishment of the resources of the Association for new financing
commitments for the period from July 1, 2017 to June 30, 2020 (the “Eighteenth Replenishment”)
in the amounts and on the basis set out in the report of the IDA Deputies, “Additions to Resources:
Eighteenth Replenishment,” (the “Report”), approved by the Executive Directors on [_____]
[(modified on [_____]], and submitted to the Board of Governors;
(B)
The members of the Association consider that an increase in the resources of the
Association is required and intend to take all necessary governmental and legislative action to
authorize and approve the allocation of additional resources to the Association in the amounts and
on the conditions set out in this Resolution;
(C)
Members of the Association that contribute resources to the Association in addition to their
subscriptions as part of the Eighteenth Replenishment (“Contributing Members”) are to make
available their contributions pursuant to the Articles of Agreement of the Association (the
“Articles”) partly in the form of subscriptions carrying voting rights and partly as supplementary
resources in the form of contributions not carrying voting rights;
(D)
Additional subscriptions are to be authorized for Contributing Members in this Resolution
on the basis of their agreement with respect to their preemptive rights under Article III, Section
1(c) of the Articles, and provision is made for the other members of the Association (“Subscribing
Members”) intending to exercise their rights pursuant to that provision to do so;
(E)
It is desirable to provide for a portion of resources to be contributed by members to be
paid to the Association as advance contributions;
(F)
Additional subscriptions and contributions are to be authorized for Contributing Members
to provide compensation for the Association’s debt forgiveness commitments under the HIPC Debt
Initiative; and to reflect the grant element of concessional loans made by Contributing Members
to the Association;
(G)
The Executive Directors of the Association [will be requested to authorize] the borrowing
of concessional loans from Contributing Members (each a “Contributing Member Loan”) in the
currencies and on the terms and conditions as [may be] approved by the Executive Directors and
it is intended that the grant element of the Contributing Member Loans will [upon such approval]
form part of the Contributing Member’s subscriptions and contributions hereunder;
(H)
It is desirable to authorize the Association to provide financing in the form of grants,
guarantees, equity investments, and the intermediation of risk management products in addition to
loans; and

- 135 -

(I)
It is desirable to administer any remaining funds from the replenishment authorized by
Resolution No. [•] of the Board of Governors of the Association (the “Seventeenth
Replenishment”) as part of the Eighteenth Replenishment.
NOW THEREFORE THE BOARD OF GOVERNORS HEREBY ACCEPTS the Report as
approved by the Executive Directors, NOTES its conclusions and recommendations AND
RESOLVES THAT a general increase in subscriptions of the Association is authorized on the
following terms and conditions:
1.

Authorization of Subscriptions and Contributions.
(a)

The Association is authorized to accept additional resources from each
Contributing Member in the amounts and in the currencies specified for each such
member in Columns 7, 8, 10, and 12 of Table 1a attached to this Resolution, and
each such amount will be divided into a subscription carrying voting rights and a
contribution not carrying voting rights as specified in Table 2 attached to this
Resolution.
(i)

As part of the resources described in paragraph 1(a) above, the Association
is authorized to accept additional subscriptions and contributions from
Contributing Members to compensate the Association for the Association’s
debt forgiveness commitments under the HIPC Debt Initiative in the
amounts and as specified in Column 12 of Table 1a attached to this
Resolution.

(ii)

As part of the resources described in paragraph 1(a) above, the Association
is authorized to accept additional subscriptions and contributions from
Contributing Members reflecting the grant element of a Contributing
Member Loan in the amounts and currencies specified in Columns 8 and 10
of Table 1a attached to this Resolution.

(b)

The Association is authorized to accept additional resources from any member for
which no contribution is specified in Table 2 and additional subscriptions and
contributions from Contributing Members incremental to the amounts specified for
each such member in Tables 1a and 1b.

(c)

The Association is authorized to accept additional subscriptions from each
Subscribing Member in the amount specified for each such member in Table 2.

(d)

The rights and obligations of the Association and the Contributing Members in
respect of the authorized subscriptions and contributions in paragraphs (a) and (b)
above will be the same (except as otherwise provided in this Resolution) as those
applicable to the ninety per cent portion of the initial subscriptions of original
members payable under Article II, Section 2(d) of the Articles of Agreement (the
“Articles”) by members listed in Part I of Schedule A of the Articles.

- 136 -

2.

Agreement to Pay.
(a)

(b)

3.

When a Contributing Member agrees to pay its subscription and contribution, or a
Subscribing Member agrees to pay its subscription, it will deposit with the
Association an Instrument of Commitment substantially in the form set out in
Attachment I to this Resolution (“Instrument of Commitment”) and with respect to:
(i)

its contribution for debt forgiveness under the HIPC Debt Initiative, a
Contributing Member will either include such contribution in an Instrument
of Commitment or make a Debt Relief Transfer Contribution, as defined
and specified in paragraph 9(a) of this Resolution; and

(ii)

a Contributing Member Loan, a Contributing Member will enter into
written agreement(s) in such form as may be acceptable to the Association.

When a Contributing Member agrees to pay a part of its subscription and
contribution without qualification and the remainder is subject to enactment by its
legislature of the necessary appropriation legislation, it will deposit (other than in
respect of the grant element of a Contributing Member Loan) a qualified Instrument
of Commitment in a form acceptable to the Association (“Qualified Instrument of
Commitment”) and such member:
(i)

undertakes to exercise its best efforts to obtain legislative approval for the
full amount of its subscription and contribution by the payment dates set out
in paragraph 3(b) of this Resolution; and

(ii)

agrees that, upon obtaining such approvals, it will notify the Association
that any parts of its Qualified Instrument of Commitment have become
unqualified.

Payment.
(a)

Each Subscribing Member will pay to the Association the amount of its
subscription in full within 31 days after the date of deposit of its Instrument of
Commitment; provided that if the Eighteenth Replenishment shall not have become
effective by December 15, 2017, payment may be postponed by the member for not
more than 31 days after the Effective Date as defined in paragraph 6(a) of this
Resolution.

(b)

Each Contributing Member that deposits an Instrument of Commitment that is not
a Qualified Instrument of Commitment will pay to the Association the amount of
its subscription and contribution in three equal annual installments no later than 31
days after the Effective Date or as agreed with the Association, January 15, 2019,
and January 15, 2020; provided that:
(i)

the Association and each Contributing Member may agree to earlier
payment;

- 137 -

4.

(ii)

if the Eighteenth Replenishment shall not have become effective by
December 15, 2017, payment of the first such installment may be postponed
by the member for not more than 31 days after the date on which the
Eighteenth Replenishment becomes effective;

(iii)

the Association may agree to the postponement of any installment, or part
thereof, if the amount paid, together with any unused balance of previous
payments by the Contributing Member concerned, is at least equal to the
amount estimated by the Association to be required from that member up to
the due date of the next installment for purposes of disbursements for
financing committed under the Eighteenth Replenishment; and

(iv)

if any Contributing Member deposits an Instrument of Commitment with
the Association after the date when the first installment of the subscription
and contribution is due, payment of any installment, or part thereof, will be
made to the Association within 31 days after the date of such deposit.

(c)

If a Contributing Member has deposited a Qualified Instrument of Commitment
and, upon enactment of appropriation legislation, notifies the Association that an
installment, or part thereof, is unqualified after the date when it was due, then
payment of such installment, or part thereof, will be made within 31 days after the
date of such notification.

(d)

Each Contributing Member that makes a contribution through the grant element of
a Contributing Member Loan will pay to the Association the amount of the Loan in
three equal annual installments no later than 31 days after the Effective Date,
January 15, 2019, and January 15, 2020 or as agreed with the Association.

Mode of Payment.
(a)

Payments pursuant to this Resolution will be made, at the option of the member:
(i)

in cash, on terms agreed between the member and the Association; or

(ii)

by the deposit of notes or similar obligations issued by the government of
the member or the depository designated by such member, which shall be
nonnegotiable, non-interest bearing and payable at their par value on
demand to the account of the Association.

(b)

The Association will encash notes or similar obligations of Contributing Members,
on an approximately pro rata basis among donors, in accordance with the
encashment schedule set out in Attachment II to this Resolution, or as agreed
between a Contributing Member and the Association. With respect to a
Contributing Member that is unable to comply with one or more encashment
requests, the Association may agree with the member on a revised encashment
schedule that yields at least an equivalent value to the Association.

(c)

The provisions of Article IV, Section 1(a) of the Articles will apply to the use of a
Subscribing Member's currency paid to the Association pursuant to this Resolution.

- 138 -

5.

6.

Currency of Denomination and Payment.
(a)

Contributing Members will denominate the resources to be made available pursuant
to this Resolution in SDRs, the currency of the member if freely convertible, or,
with the agreement of the Association, in a freely convertible currency of another
member, except that if a Contributing Member's economy experienced a rate of
inflation in excess of ten percent per annum on average in the period 2013-2015, as
determined by the Association, its subscription and contribution will be
denominated in SDRs or in any currency used for the valuation of the SDR and
agreed with the Association. Subscribing Members will denominate the resources
to be made available pursuant to this Resolution in the currency of the member or
in a freely convertible currency with the agreement of the Association.

(b)

Contributing Members will make payments pursuant to this Resolution in SDRs, a
currency used for the valuation of the SDR, or, with the agreement of the
Association, in another freely convertible currency, and the Association may freely
exchange the amounts received as required for its operations. Subscribing Members
will make payments in the currency of the member or in a freely convertible
currency with the agreement of the Association.

(c)

Each member will maintain, in respect of its currency paid by it under this
Resolution, and the currency of such member derived therefrom as principal,
interest or other charges, the same convertibility as existed on the effective date of
this Resolution.

(d)

The provisions of Article IV, Section 2 of the Articles with respect to maintenance
of value will not be applicable.

(e)

Notwithstanding the foregoing provisions of this paragraph, a Contributing
Member that makes a contribution through the grant element of a Contributing
Member Loan will denominate and make payment of such Contributing Member
Loan in SDRs or any other currencies approved by the Executive Directors and as
defined in their respective loan agreements.

Effective Date.
(a)

The Eighteenth Replenishment will become effective and the resources to be
contributed pursuant to this Resolution will become payable to the Association on
the date (the "Effective Date") when Contributing Members whose subscriptions
and contributions aggregate not less than SDR11,526 million shall have deposited
with the Association Instruments of Commitment, Qualified Instruments of
Commitment, Debt Relief Transfer Notifications (as defined in paragraph 9(b) of
this Resolution) or duly executed concessional loan agreements to provide the
Contributing Member Loans, provided that this date shall be not later than
December 15, 2017, or such later date as the Executive Directors of the Association
may determine.

(b)

If the Association determines that the availability of additional resources pursuant
to this Resolution is likely to be unduly delayed, it shall convene promptly a

- 139 -

meeting of the Contributing Members to review the situation and to consider the
steps to be taken to prevent a suspension of financing to eligible recipients by the
Association.
7.

Advance Contributions.
(a)

In order to avoid an interruption in the Association's ability to commit financing to
eligible recipients pending the effectiveness of the Eighteenth Replenishment, the
Association may deem, prior to the Effective Date, one third of the total amount of
each subscription and contribution for which
(i)

an Instrument of Commitment has been deposited with the Association;

(ii)

a Debt Relief Transfer Notification (as defined in paragraph 9(b) of this
Resolution) has been received by the Association; or

(iii)

a duly executed concessional loan agreement for a Contributing Member
Loan has been received by the Association;

as an “Advance Contribution”, unless the Contributing Member specifies otherwise
in its Instrument of Commitment, Debt Relief Transfer Notification or concessional
loan agreement for a Contributing Member Loan.

8.

(b)

The Association shall specify when Advance Contributions pursuant to paragraph
7(a) are to be paid to the Association.

(c)

The terms and conditions applicable to contributions to the Eighteenth
Replenishment shall apply also to Advance Contributions until the Effective Date,
when such contributions shall be deemed to constitute payment towards the amount
due from each Contributing Member for its subscription and contribution.

(d)

In the event that the Eighteenth Replenishment shall not become effective pursuant
to paragraph 6(a) of this Resolution, (i) voting rights will be allocated to each
member for the Advance Contribution as if it had been made as a subscription and
contribution under this Resolution, and (ii) each member not making an Advance
Contribution will have the opportunity to exercise its preemptive rights under
Article III, Section 1(c) of the Articles with respect to such subscription as the
Association shall specify.

Commitment Authority.
(a)

Subscriptions and contributions will become available for commitment by the
Association for financing to eligible recipients in three equal annual installments:
(i) the first installment will become available to the Association for commitment
from the Effective Date, provided that Advance Contributions may become
available earlier under paragraph 7(a) of this Resolution; (ii) the second installment
will become available from July 1, 2018; and (iii) the third installment will become
available from July 1, 2019.

- 140 -

9.

(b)

Any qualified part of a subscription and contribution notified under a Qualified
Instrument of Commitment will become available for commitment by the
Association for financing when the Association has been notified, pursuant to
paragraph 2(b) (ii) of this Resolution, that such parts have become unqualified.

(c)

The Association may enter into financing commitments with eligible recipients
conditional on such commitments becoming effective and binding on the
Association when resources under the Eighteenth Replenishment become available
for commitment by the Association.

HIPC Contributions.
(a)

Contributing Members making an additional subscription and contribution to
compensate the Association for forgiveness of debt under the HIPC Debt Relief
Initiative, will do so either: (i) through an additional subscription and contribution
to the Association’s regular resources (a “Debt Relief Additional Contribution”) or
(ii) through a creditor-specific contribution for the benefit of the Association to the
HIPC window of the Debt Relief Trust Fund (“Debt Relief Transfer Contribution”).

(b)

Contributing Members making a Debt Relief Transfer Contribution will either (i)
enter into a Contribution Agreement with the Association as administrator of the
Debt Relief Trust Fund; or (ii) for Contributing Members that are already current
contributors to the Debt Relief Trust Fund, send to the Association a notice of
additional contribution or allocation to the appropriate window of the Debt Relief
Trust Fund (each a “Debt Relief Transfer Notification”). Such Debt Relief Transfer
Notification will provide for a contribution to be made to the appropriate window
of the Debt Relief Trust Fund in the amount set forth in Columns 7 and 12 of Table
1a to this Resolution, to be payable in three equal annual installments no later than
31 days after the Effective Date, January 15, 2019, and January 15, 2020; provided
that the Association and each Contributing Member may agree to earlier payment.

(c)

When any amount of a Debt Relief Transfer Contribution is paid to compensate the
Association for forgiveness of debt under the HIPC Debt Initiative, such amount of
the Debt Relief Transfer Contribution will be treated as a subscription and
contribution under the Eighteenth Replenishment.

10.

Authorization of Grants, Guarantees, Equity Investments and Risk Intermediation.
The Association is hereby authorized to provide financing under the Eighteenth
Replenishment in the form of grants and guarantees, equity investments and through the
intermediation of risk management products.

11.

Administration of IDA17 Funds under the Eighteenth Replenishment.
(a)

On the Effective Date, any funds, receipts, assets and liabilities held by the
Association under the Seventeenth Replenishment will be administered under the
Eighteenth Replenishment, subject, as appropriate, to the terms and conditions
applicable to the Seventeenth Replenishment.

- 141 -

(b)

12.

Pursuant to Article V, Section 2(a) (i) of the Articles of Agreement of the
Association, the Association is authorized to use the funds referred to in paragraph
11(a) above, and funds derived therefrom as principal, interest or other charges, to
provide financing in the forms of grants, guarantees and equity investments under
the terms, conditions and policies applicable under the Eighteenth Replenishment.

Allocation of Voting Rights under Eighteenth Replenishment. Voting rights calculated
on the basis of the current voting rights system will be allocated to members for
subscriptions under the Eighteenth Replenishment as follows:
(a)

Each Subscribing Member that has deposited with the Association an Instrument
of Commitment will be allocated the subscription votes specified for each such
member in Table 2 on the effective payment date pursuant to paragraph 3(a) of this
Resolution. Each Subscribing Member will be allocated the additional membership
votes specified in Column c-3 of Table 2 on the date such member is allocated its
subscription votes.

(b)

Each Contributing Member that has deposited with the Association an Instrument
of Commitment (other than in respect of the grant element of a Concessional
Member Loan) will be allocated one third of the subscription votes specified for
each such member in Table 2 on each effective payment date pursuant to paragraph
3(b) of this Resolution. Each Contributing Member will be allocated the additional
membership votes specified in Column b-3 of Table 2 for its subscription on the
date such member is allocated the first one third of its subscription votes.

(c)

Each Contributing Member that has made a Debt Relief Transfer Contribution will
be allocated a proportionate share of the subscription votes specified for such
member in Column b-2 of Table 2 from time to time and at least semi-annually
following payment of any amount of its Debt Relief Transfer Contribution to
compensate the Association for forgiveness of debt under the HIPC Debt Initiative
or to finance arrears clearance operations.

(d)

Each Contributing Member that has provided a Contributing Member Loan in the
amount provided in Table 1b will be notified by the Association of the grant
element determined by the Association with respect to the Contributing Member
Loan and will be allocated, in respect of such grant element, a proportionate share
of the subscription votes specified for such member in Column b-2 of Table 2 from
time to time following payment to the Association of the Contributing Member
Loan.

(e)

Each member that has deposited with the Association a Qualified Instrument of
Commitment will be allocated subscription votes at the time and to the extent of
payments made in respect of its subscription and contribution.

(f)

Any member that deposits its Instrument of Commitment after any of these dates
will be allocated, within 31 days of the date of such deposit, the subscription votes
to which such member is entitled on account of such deposit.

- 142 -

(g)

If a member fails to pay any amount of its subscription or subscription and
contribution when due, or fails to pay when due any amount of (or due in connection
with) a CPL, the number of subscription votes allocated from time to time to such
member under this Resolution in respect of the Eighteenth Replenishment will be
reduced in proportion to the shortfall in the net present value of such payments, but
any such votes will be reallocated when the shortfall in the net present value of such
payments causing such adjustment is subsequently made up.

- 143 -

Table 1a. Grant and Grant Equivalent Contributions to the Eighteenth Replenishment
Total Donor Contributions

Acceleration Credit

Currency

and Grant Element

of Grant

of Concessional Loan
Share

SDR Million

NC Million 6/

NC Million

Contributing Members

(1)

(2)

(3)

(4)

Algeria
Argentina
3/
Australia
Austria
3/
Bahamas, The
3/
Belgium
Brazil
Canada
3/
China
Cyprus
Czech Republic
5/
Denmark
3/
Egypt
3/
Estonia
3/
Finland
3/
France
3/
Germany
3/4/
Greece
3/
Hungary
3/
Iceland
India
Indonesia
3/
Iran, Islamic Republic of
Ireland
Israel
3/
Italy
Japan
3/7/
Korea
Kuwait
3/
Latvia
3/
Lithuania
3/4/
Luxembourg
3/
Malaysia
3/
Netherlands
New Zealand
Norway
3/12/
Pakistan
Philippines
3/
Poland
3/
Portugal
3/
Russia
3/
Saudi Arabia
Singapore
Slovak Republic
Slovenia
South Africa
Sweden
3/
Switzerland
3/
Thailand
3/
Turkey
United Kingdom
3/
United States
3/

0.08%
0.03%
1.55%
1.45%
0.01%
1.51%
0.08%
3.36%
1.94%
0.02%
0.05%
1.05%
0.02%
0.01%
0.38%
4.86%
5.83%
0.05%
0.06%
0.03%
0.59%
0.27%
0.10%
0.33%
0.08%
2.06%
10.31%
1.30%
0.19%
0.01%
0.01%
0.20%
0.09%
2.71%
0.12%
1.06%
0.08%
0.02%
0.06%
0.04%
0.43%
0.38%
0.15%
0.01%
0.02%
0.04%
3.08%
2.14%
0.01%
0.08%
12.97%
12.51%

17.83
5.71
342.34
320.60
2.90
332.72
16.74
741.10
427.94
4.25
11.15
232.58
3.74
3.08
83.27
1,071.87
1,287.11
11.51
13.25
7.35
130.49
59.29
21.40
71.96
17.37
455.74
2,276.14
287.00
41.50
2.13
2.45
45.13
19.26
597.74
25.78
235.03
17.83
3.61
13.83
8.80
95.25
83.40
32.81
2.13
4.00
7.91
679.90
472.00
3.05
18.58
2,863.10
2,761.49

Sub-total
Other

73.80%
0.00%

16,293.11
-

25.00
8.00
639.81
400.98
4.07
331.27
81.00
1,349.55
3,943.27
5.32
13.69
2,165.00
5.25
3.85
105.00
1,059.00
1,607.92
14.40
5,180.00
1,267.26
12,250.00
1,100,000.00
30.00
90.00
93.20
570.00
308,840.90
464,572.95
17.55
2.66
3.00
56.45
27.00
747.59
51.88
2,748.00
25.00
5.06
17.30
11.00
95.25
82.86
46.00
2.66
5.00
163.80
7,950.00
472.00
150.00
76.00
2,516.00
3,871.80

84.86
0.26
281.59
1.87
32,668.08
0.06
34.07
372.35
-

Denomination

Basic Contribution 8/9/
Grant
1/

Grant Element of

Sub-total

Supplemental
Contribution

HIPC Costs

Concessional loan
Share

SDR Million

SDR Million

SDR Million

SDR Million

Share

SDR Million

(NC/SDR)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

USD
USD
AUD
EUR
USD
EUR
BRL
CAD
CNY
EUR
EUR
DKK
USD
EUR
EUR
EUR
EUR
EUR
HUF
ISK
INR
IDR
USD
EUR
ILS
EUR
JPY
KRW
KWD
EUR
EUR
EUR
USD
EUR
NZD
NOK
USD
USD
EUR
EUR
SDR
USD
USD
EUR
EUR
ZAR
SEK
SDR
THB
TRY
GBP
USD

0.09%
0.01%
1.55%
1.50%
0.01%
1.49%
0.03%
3.30%
2.08%
0.02%
0.05%
1.04%
0.02%
0.01%
0.36%
4.72%
5.40%
0.05%
0.06%
0.03%
0.61%
0.29%
0.10%
0.34%
0.08%
1.93%
9.87%
1.30%
0.19%
0.01%
0.01%
0.21%
0.09%
2.69%
0.12%
1.15%
0.09%
0.02%
0.07%
0.04%
0.44%
0.26%
0.15%
0.01%
0.02%
0.03%
3.09%
2.13%
0.01%
0.09%
13.11%
11.92%

17.83
2.51
316.64
306.88
2.72
237.56
6.04
675.00
426.34
3.93
9.99
213.26
3.59
2.92
72.73
741.03
1,105.57
10.68
12.29
6.88
125.05
58.45
21.40
68.77
15.61
395.07
1,802.94
266.24
39.11
1.97
2.30
42.10
18.02
551.91
23.70
235.03
17.83
3.07
13.35
8.20
89.66
52.23
30.50
1.97
3.52
6.47
633.76
435.28
2.82
18.58
2,315.34
2,440.24

67.85
225.15
217.73
369.09
-

17.83
2.51
316.64
306.88
2.72
305.41
6.04
675.00
426.34
3.93
9.99
213.26
3.59
2.92
72.73
966.17
1,105.57
10.68
12.29
6.88
125.05
58.45
21.40
68.77
15.61
395.07
2,020.67
266.24
39.11
1.97
2.30
42.10
18.02
551.91
23.70
235.03
17.83
3.07
13.35
8.20
89.66
52.23
30.50
1.97
3.52
6.47
633.76
435.28
2.82
18.58
2,684.43
2,440.24

0.21
24.30
-

0.00%
0.20%
1.61%
0.86%
0.01%
1.71%
0.67%
4.14%
0.10%
0.02%
0.06%
1.21%
0.01%
0.01%
0.66%
6.62%
11.37%
0.05%
0.06%
0.03%
0.34%
0.05%
0.00%
0.20%
0.11%
3.80%
16.00%
1.30%
0.15%
0.01%
0.01%
0.19%
0.08%
2.87%
0.13%
0.00%
0.00%
0.03%
0.03%
0.04%
0.35%
0.43%
0.14%
0.01%
0.03%
0.09%
2.89%
2.30%
0.01%
0.00%
11.19%
20.12%

3.20
25.70
13.73
0.19
27.30
10.70
66.10
1.60
0.32
0.96
19.32
0.16
0.16
10.54
105.70
181.54
0.83
0.96
0.48
5.43
0.84
3.19
1.76
60.67
255.46
20.76
2.39
0.16
0.14
3.03
1.24
45.82
2.08
0.53
0.48
0.60
5.59
6.87
2.31
0.16
0.48
1.44
46.14
36.72
0.23
178.66
321.25

1.40207
1.40207
1.86892
1.25070
1.40207
1.25070
4.83872
1.82102
9.21457
1.25070
1.25070
9.30853
1.40207
1.25070
1.25070
1.25070
1.25070
1.25070
391.06044
172.31928
93.87998
18,553.23884
1.40207
1.25070
5.36633
1.25070
150.03878
1,618.74478
0.42289
1.25070
1.25070
1.25070
1.40207
1.25070
2.01242
11.69192
1.40207
1.40207
1.25070
1.25070
1.00000
1.40207
1.40207
1.25070
1.25070
20.71582
11.69288
1.00000
49.25066
4.09092
1.00882
1.40207

72.24%

13,914.88

879.82

14,794.70

24.51

92.31%

1,473.90

2/

0.28%

61.35

Expected Pledges 10/

0.63%

140.09

Total

74.72%

16,494.55

Structural financing gap

25.28%

5,582.05

27.76%

5,685.25

7.69%

122.75

100.00%

22,076.60

100.00%

20,479.95

100.00%

1,596.65

Additional financing

Total including financing gap

1/

FX Rates

11/

Contributions of countries with an average inflation rate exceeding 10% over the 2013-2015 period would be denominated
in SDRs or in any currency used for the valuation of the SDR and agreed with the association.
2/
Represents the investment income generated by using a regular encashment profile of 9 years.
3/
Indicative contribution, subject to government and/or parliamentary approval.
4/
Includes an increase in basic share achieved through accelerated encashments.
5/
Includes supplemental contributions provided through accelerated encashments.
6/
The amounts in national currency ('NC') exclude individual acceleration credits (when applicable) and grant elements of
concessional loan (when applicable), both of which are included in the SDR amounts. The equivalent NC amount of any
individual acceleration credit or grant element of concessional loan is shown separately in column 4.
7/
Part of the grant contribution will be used to meet the concessional loan framework.
8/
Basic grant contribution includes compensation for grant principal forgone.

- 144 9/

IDA18 allocation for arrears clearance will be financed by the amount of unused arrears clearance in IDA17 carried over to
IDA18. No separate partner contribution is required.
10/
Pledges expected from contributors whose internal authorizations/budget processes are not sufficiently advanced to allow
complete pledging at the final replenishment meeting but where pledges are expected by the Spring Meetings, 2017. IDA18
Commitment Authority will be based on pledges confirmed by Unqualified Instruments of Commitments.
11/
This is equivalent to US$23.1 billion using IDA18 reference exchange rates.
12/
HIPC contribution subject to budgetary process and pending parliamentary approval.

- 145 -

Table 1b. Concessional Loan Contributions to the Eighteenth Replenishment

- 146 -

Table 2. Subscriptions, Contributions, and Votes
(amounts in US$ Equivalents)
Part I

Additional Votes Stemming from
IDA18

Current Status (before IDA18)

Member
AUSTRALIA
AUSTRIA
BELGIUM
CANADA
DENMARK
ESTONIA
FINLAND
FRANCE
GERMANY
GREECE

Subscriptions
Carrying Votes
($)
(a-1)

Contributions
($)
(a-2)

Total
Cumulative
Resources ($)
(a-3)

32,233,152

4,899,863,407

4,932,096,559

298,736

11,150,238

3,243,407,924

3,254,558,162

17,028,332

4,387,997,553

64,769,241
16,408,039

Status Including IDA18

Total
Voting
Power %
(a-6)

Total
Resources ($)
(b-1)

Total
Subscription
Votes
(b-2)

54,200

1.14%

481,871,396

19,602

3,300

196,741

54,200

0.81%

451,274,088

21,159

4,405,025,885

266,962

54,200

1.04%

467,950,962

11,600,105,703

11,664,874,944

706,676

54,200

2.46%

3,616,631,191

3,633,039,230

220,815

54,200

0.89%

Subscription Membership
Votes
Votes
(a-4)
(a-5)

Adjusted Voting Power

as % of
Part I
(d-2)

Subscription
Carrying
Votes ($)
(d-3)

Contributions
($)

5,413,967,955

2.08%

32,723,202

3,300

3,705,832,250

1.42%

19,566

3,300

4,872,976,847

1,043,071,337

40,543

3,300

327,376,599

12,055

3,300

Membership Total Cumulative
Votes
Resources ($)
(b-3)
(d-1)

as % of
Part I.
(f-2)

5,381,244,753

318,338

2.08%

57,500

375,838

1.14%

11,679,213

3,694,153,037

217,900

1.42%

57,500

275,400

0.84%

1.87%

17,517,482

4,855,459,365

286,528

1.87%

57,500

344,028

1.05%

12,707,946,281

4.88%

65,782,816

12,642,163,465

747,219

4.88%

57,500

804,719

2.45%

3,960,415,829

1.52%

16,709,414

3,943,706,415

232,870

1.52%

57,500

290,370

0.88%

(d-4)

Membership
Votes
(f-3)

Total
Votes
(f-4)

Total
Voting
Power %
(f-5)

Subscription
Votes
(f-1)

268,002

13,334,523

13,602,525

818

47,500

0.16%

4,332,590

237

3,300

17,935,115

0.01%

273,927

17,661,188

1,055

0.01%

50,800

51,855

0.16%

7,904,801

2,103,917,642

2,111,822,443

127,795

54,200

0.59%

117,205,847

3,270

3,300

2,229,028,290

0.86%

7,986,551

2,221,041,739

131,065

0.86%

57,500

188,565

0.57%

91,783,028

17,268,162,148

17,359,945,176

1,052,179

54,200

3.57%

1,507,413,195

57,209

3,300

18,867,358,371

7.24%

93,213,253

18,774,145,118

1,109,388

7.24%

57,500

1,166,888

3.55%

104,802,880

25,280,947,863

25,385,750,743

1,539,822

54,200

5.14%

1,811,694,385

59,369

3,300

27,197,445,128

10.44%

106,287,105

27,091,158,023

1,599,191

10.44%

57,500

1,656,691

5.04%

4,008,015

205,170,733

209,178,748

12,757

42,600

0.18%

16,206,162

495

3,300

225,384,910

0.09%

4,020,390

221,364,520

13,252

0.09%

45,900

59,152

0.18%

265,550

93,829,231

94,094,781

5,714

54,200

0.19%

10,350,745

427

3,300

104,445,526

0.04%

276,225

104,169,301

6,141

0.04%

57,500

63,641

0.19%

4,872,225

721,738,217

726,610,442

43,962

54,200

0.32%

101,288,513

4,718

3,300

827,898,955

0.32%

4,990,175

822,908,780

48,680

0.32%

57,500

106,180

0.32%

38,743,748

10,378,407,694

10,417,151,442

631,733

54,200

2.21%

641,493,915

18,508

3,300

11,058,645,357

4.25%

39,206,448

11,019,438,909

650,241

4.24%

57,500

707,741

2.15%

101,436,333

39,187,358,822

39,288,795,155

2,380,184

54,200

7.86%

3,202,631,710

118,283

3,300

42,491,426,865

16.32%

104,393,408

42,387,033,457

2,498,467

16.31%

57,500

2,555,967

7.78%

5,676,565

1,002,429,705

1,008,106,270

60,814

53,300

0.37%

58,414,483

1,897

3,300

1,066,520,753

0.41%

5,723,990

1,060,796,763

62,711

0.41%

56,600

119,311

0.36%

240,694

13,852,235

14,092,929

867

54,200

0.18%

2,993,638

138

3,300

17,086,567

0.01%

244,144

16,842,423

1,005

0.01%

57,500

58,505

0.18%

535,248

11,191,427

11,726,675

705

53,300

0.17%

3,443,545

187

3,300

15,170,220

0.01%

539,923

14,630,297

892

0.01%

56,600

57,492

0.18%

977,355

341,542,231

342,519,586

20,743

54,200

0.24%

63,530,406

3,132

3,300

406,049,992

0.16%

1,055,655

404,994,337

23,875

0.16%

57,500

81,375

0.25%

46,848,852

8,471,475,055

8,518,323,907

516,077

54,200

1.84%

841,358,659

34,266

3,300

9,359,682,566

3.59%

47,705,502

9,311,977,064

550,343

3.59%

57,500

607,843

1.85%

538,077

354,439,075

354,977,152

21,523

54,200

0.24%

36,287,093

1,483

3,300

391,264,245

0.15%

575,152

390,689,093

23,006

0.15%

57,500

80,506

0.25%

NORWAY
PORTUGAL
RUSSIA
SLOVENIA
SOUTH AFRICA

14,646,512

4,146,922,539

4,161,569,051

252,512

54,200

0.99%

330,827,596

11,638

3,300

4,492,396,647

1.72%

14,937,462

4,477,459,185

264,150

1.72%

57,500

321,650

0.98%

4,771,403

318,241,004

323,012,407

19,721

54,200

0.24%

12,379,707

-

3,300

335,392,114

0.13%

4,771,403

330,620,711

19,721

0.13%

57,500

77,221

0.24%

2,992,616

758,500,853

761,493,469

45,907

54,200

0.32%

134,071,300

6,752

3,300

895,564,769

0.34%

3,161,416

892,403,353

52,659

0.34%

57,500

110,159

0.34%

13,047,837

38,387,544

51,435,381

3,134

54,200

0.19%

5,627,140

221

3,300

57,062,521

0.02%

13,053,362

44,009,159

3,355

0.02%

57,500

60,855

0.19%

12,539,872

263,213,673

275,753,545

16,704

54,200

0.23%

11,128,881

164

3,300

286,882,426

0.11%

12,543,972

274,338,454

16,868

0.11%

57,500

74,368

0.23%

SPAIN
SWEDEN
SWITZERLAND
UNITED ARAB EMIRATES
UNITED KINGDOM

21,731,748

4,492,160,543

4,513,892,291

273,355

54,200

1.06%

-

-

-

4,513,892,291

1.73%

21,731,748

4,492,160,543

273,355

1.78%

54,200

327,555

1.00%

26,585,585

8,637,573,336

8,664,158,921

524,870

54,200

1.87%

957,009,990

40,848

3,300

9,621,168,911

3.69%

27,606,785

9,593,562,126

565,718

3.69%

57,500

623,218

1.90%

17,317,289

5,276,804,167

5,294,121,456

321,625

54,200

1.21%

664,374,315

28,730

3,300

5,958,495,771

2.29%

18,035,539

5,940,460,232

350,355

2.29%

57,500

407,855

1.24%

10,729

5,189,119

5,199,848

619

748

0.00%

-

-

-

5,199,848

0.00%

10,729

5,189,119

619

0.00%

748

207,711,591

30,766,019,991

30,973,731,582

1,881,163

54,200

6.25%

4,027,986,835

176,914

3,300

35,001,718,417

13.44%

212,134,441

34,789,583,976

2,058,077

13.43%

57,500

2,115,577

6.44%

UNITED STATES

471,674,687

49,977,116,918

50,448,791,605

3,060,684

53,300

10.05%

3,886,995,643

134,223

3,300

54,335,787,248

20.86%

475,030,262

53,860,756,986

3,194,907

20.85%

56,600

3,251,507

9.90%

Subtotal Part I

1,343,520,244

237,875,932,066

239,219,452,310

14,505,917

1,605,748

52.00%

21,220,590,675

816,034

95,700

260,440,042,985

100.00% 1,363,921,094 259,076,121,891

15,321,951

100%

1,701,448

17,023,399

51.83%

Subtotal Part II

652,833,879

7,880,991,889

8,533,825,768

7,183,876

7,688,300

48.00%

7,666,589

100%

8,156,900

15,823,489

48.17%

Grand Total

1,996,354,123

245,756,923,955

247,753,278,078

21,689,793

9,294,048

100.00%

22,988,540

100%

9,858,348

32,846,888

100.00%

ICELAND
IRELAND
ITALY
JAPAN
KUWAIT
LATVIA
LITHUANIA
LUXEMBOURG
NETHERLANDS
NEW ZEALAND

Notes:

1,367 0.0042%

Current Status (a-1) to (a-6): It is assumed that the members that have outstanding commitments to subscribe or contribute to any previous Replenishment will fulfill their obligations. Amounts have been calculated,
for purposes of the voting rights adjustment, by multiplying the subscriptions and contributions up to and including the Third Replenishment (which were expressed in terms of U.S. dollars of the weight and fineness
in effect on January 1, 1960) by 1.20635 and adding thereto the dollar equivalents of the subscriptions and contributions under the Fourth through Seventeenth Replenishments at the agreed exchange rates.
Allocation of Additional Votes with respect to Encashment: Subscription votes have been allocated on the imputed value of these contributions based on the related encashment schedule rather than the nominal
amounts shown in contribution tables. For the Eighteenth Replenishment, this is included in column (b-1) for Part I countries, and for Part II contributing countries in column (e-4).

- 147 -

Table 2. Subscriptions, Contributions, and Votes
(amounts in US$ Equivalents)
Part II

Allocation for Exercise of Preemptive Rights
to Maintain Part II Voting Power

Current Status (before IDA18)

Member
AFGHANISTAN
ALBANIA
ALGERIA
ANGOLA
ARGENTINA
ARMENIA
AZERBAIJAN
BAHAMAS, THE
BANGLADESH
BARBADOS

706,931
1,204,999
640,442
8,927,675
502,393

0
0
8,003,489
0
1,892,596

706,931
1,204,999
8,643,931
8,927,675
2,394,989

7,510
12,600
6,828
91,088
5,262

54,200
54,200
53,300
54,200
54,200

0.20%
0.22%
0.19%
0.47%
0.19%

10,000
16,775
9,100
121,300
7,000

400
671
364
4,852
280

3,300
3,300
3,300
3,300
3,300

0.20%
0.22%
0.20%
0.47%
0.19%

0
0
6,000
0
0

0
0
240
0
0

0
0
4,070,874
0
0

0
0
4,085,974
0
0

7,910
13,271
7,432
95,940
5,542

0.10%
0.17%
0.10%
1.25%
0.07%

57,500
57,500
56,600
57,500
57,500

65,410
70,771
64,032
153,440
63,042

0.20%
0.22%
0.19%
0.47%
0.19%

BELIZE
BENIN
BHUTAN
BOLIVIA
BOSNIA & HERZEGOVINA

340,396
838,276
92,029
1,764,076
10,229,464

0
0
0
0
0

340,396
838,276
92,029
1,764,076
10,229,464

3,727
8,809
1,210
18,164
13,113

54,200
54,200
54,200
54,200
54,200

0.19%
0.20%
0.18%
0.23%
0.22%

4,975
11,725
1,600
24,200
17,475

199
469
64
968
699

3,300
3,300
3,300
3,300
3,300

0.19%
0.20%
0.18%
0.23%
0.22%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

3,926
9,278
1,274
19,132
13,812

0.05%
0.12%
0.02%
0.25%
0.18%

57,500
57,500
57,500
57,500
57,500

61,426
66,778
58,774
76,632
71,312

0.19%
0.20%
0.18%
0.23%
0.22%

BOTSWANA
BRAZIL
BURKINA FASO
BURUNDI
CABO VERDE

280,796
34,232,176
838,252
1,268,910
142,153

1,515,927
937,404,333
0
0
0

1,796,723
971,636,509
838,252
1,268,910
142,153

3,322
438,226
8,808
13,174
1,730

54,200
54,200
54,200
54,200
54,200

0.19%
1.59%
0.20%
0.22%
0.18%

4,425
583,600
11,725
17,550
2,300

177
23,344
469
702
92

3,300
3,300
3,300
3,300
3,300

0.19%
1.58%
0.20%
0.22%
0.18%

0
33,775
0
0
0

0
1,351
0
0
0

0
22,945,342
0
0
0

0
23,562,717
0
0
0

3,499
462,921
9,277
13,876
1,822

0.05%
6.04%
0.12%
0.18%
0.02%

57,500
57,500
57,500
57,500
57,500

60,999
520,421
66,777
71,376
59,322

0.19%
1.58%
0.20%
0.22%
0.18%

CAMBODIA
CAMEROON
CENTRAL AFRICAN REP.
CHAD
CHILE

1,702,338
1,680,096
838,252
838,252
5,920,500

0
0
0
0
34,746,972

1,702,338
1,680,096
838,252
838,252
40,667,472

17,654
17,282
8,808
8,808
62,292

54,200
54,200
54,200
54,200
54,200

0.23%
0.23%
0.20%
0.20%
0.38%

23,500
23,025
11,725
11,725
82,950

940
921
469
469
3,318

3,300
3,300
3,300
3,300
3,300

0.23%
0.23%
0.20%
0.20%
0.38%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

18,594
18,203
9,277
9,277
65,610

0.24%
0.24%
0.12%
0.12%
0.86%

57,500
57,500
57,500
57,500
57,500

76,094
75,703
66,777
66,777
123,110

0.23%
0.23%
0.20%
0.20%
0.37%

CHINA
COLOMBIA
COMOROS
CONGO, DEM. REP. OF
CONGO, REP. OF

51,326,204
6,100,781
142,153
5,017,186
838,252

490,532,543
26,659,256
0
0
0

541,858,747
32,760,037
142,153
5,017,186
838,252

556,884
69,489
1,730
51,363
8,808

54,200
54,200
54,200
54,200
54,200

1.97%
0.40%
0.18%
0.34%
0.20%

741,600
92,550
2,300
68,400
11,725

29,664
3,702
92
2,736
469

3,300
3,300
3,300
3,300
3,300

1.97%
0.40%
0.18%
0.34%
0.20%

884,350
0
0
0
0

35,374
0
0
0
0

600,728,712
0
0
0
0

602,354,662
0
0
0
0

621,922
73,191
1,822
54,099
9,277

8.11%
0.95%
0.02%
0.71%
0.12%

57,500
57,500
57,500
57,500
57,500

679,422
130,691
59,322
111,599
66,777

2.07%
0.40%
0.18%
0.34%
0.20%

COSTA RICA
COTE D'IVOIRE
CROATIA
CYPRUS
CZECH REPUBLIC

339,656
1,680,096
24,046,763
1,302,473
6,233,881

0
0
0
26,384,905
118,633,490

339,656
1,680,096
24,046,763
27,687,378
124,867,371

3,684
17,282
30,324
14,517
71,257

54,200
54,200
54,200
54,200
54,200

0.19%
0.23%
0.27%
0.22%
0.40%

4,900
23,025
40,375
19,325
94,900

196
921
1,615
773
3,796

3,300
3,300
3,300
3,300
3,300

0.19%
0.23%
0.27%
0.22%
0.40%

0
0
0
8,775
22,925

0
0
0
351
917

0
0
0
5,959,177
15,580,751

0
0
0
5,987,277
15,698,576

3,880
18,203
31,939
15,641
75,970

0.05%
0.24%
0.42%
0.20%
0.99%

57,500
57,500
57,500
57,500
57,500

61,380
75,703
89,439
73,141
133,470

0.19%
0.23%
0.27%
0.22%
0.41%

DJIBOUTI
DOMINICA
DOMINICAN REPUBLIC
ECUADOR
EGYPT, ARAB REP. OF

275,030
142,153
674,813
1,087,467
8,489,833

0
0
68,614
0
6,274,406

275,030
142,153
743,427
1,087,467
14,764,239

3,092
1,730
7,216
11,348
88,429

54,200
54,200
54,200
54,200
54,200

0.18%
0.18%
0.20%
0.21%
0.46%

4,125
2,300
9,600
15,100
117,750

165
92
384
604
4,710

3,300
3,300
3,300
3,300
3,300

0.19%
0.18%
0.20%
0.21%
0.46%

0
0
0
0
7,575

0
0
0
0
303

0
0
0
0
5,145,280

0
0
0
0
5,270,605

3,257
1,822
7,600
11,952
93,442

0.04%
0.02%
0.10%
0.16%
1.22%

57,500
57,500
57,500
57,500
57,500

60,757
59,322
65,100
69,452
150,942

0.18%
0.18%
0.20%
0.21%
0.46%

EL SALVADOR
EQUATORIAL GUINEA
ERITREA
ETHIOPIA
FIJI

505,489
540,333
159,018
838,823
938,502

23,707
0
0
23,707
0

529,196
540,333
159,018
862,530
938,502

5,394
5,798
1,910
8,825
9,863

54,200
54,200
54,200
54,200
54,200

0.19%
0.19%
0.18%
0.20%
0.21%

7,175
7,725
2,550
11,750
13,125

287
309
102
470
525

3,300
3,300
3,300
3,300
3,300

0.19%
0.19%
0.18%
0.20%
0.21%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

5,681
6,107
2,012
9,295
10,388

0.07%
0.08%
0.03%
0.12%
0.14%

57,500
57,500
57,500
57,500
57,500

63,181
63,607
59,512
66,795
67,888

0.19%
0.19%
0.18%
0.20%
0.21%

GABON
GAMBIA, THE
GEORGIA
GHANA
GRENADA

838,252
452,347
1,155,062
3,920,167
156,667

0
0
0
0
0

838,252
452,347
1,155,062
3,920,167
156,667

8,808
4,897
12,087
40,110
1,816

54,200
54,200
54,200
54,200
54,200

0.20%
0.19%
0.21%
0.30%
0.18%

11,725
6,525
16,100
53,425
2,425

469
261
644
2,137
97

3,300
3,300
3,300
3,300
3,300

0.20%
0.19%
0.21%
0.30%
0.18%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

9,277
5,158
12,731
42,247
1,913

0.12%
0.07%
0.17%
0.55%
0.02%

57,500
57,500
57,500
57,500
57,500

66,777
62,658
70,231
99,747
59,413

0.20%
0.19%
0.21%
0.30%
0.18%

GUATEMALA
GUINEA
GUINEA-BISSAU
GUYANA
HAITI

673,207
1,680,096
239,036
1,352,925
1,268,910

0
0
0
0
0

673,207
1,680,096
239,036
1,352,925
1,268,910

7,157
17,282
2,651
14,061
13,174

54,200
54,200
54,200
54,200
54,200

0.20%
0.23%
0.18%
0.22%
0.22%

9,525
23,025
3,525
18,725
17,550

381
921
141
749
702

3,300
3,300
3,300
3,300
3,300

0.20%
0.23%
0.18%
0.22%
0.22%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

7,538
18,203
2,792
14,810
13,876

0.10%
0.24%
0.04%
0.19%
0.18%

57,500
57,500
57,500
57,500
57,500

65,038
75,703
60,292
72,310
71,376

0.20%
0.23%
0.18%
0.22%
0.22%

0
0
0
0
116,965,305

Total
Voting
Power %
(a-6)
0.23%
0.19%
0.40%
0.52%
1.30%

Subscription
Carrying Votes Subscription Membership
($)
Votes
Votes
(c-1)
(c-2)
(c-3)
23,025
921
3,300
5,700
228
3,300
90,900
3,636
3,300
142,125
5,685
3,300
463,475
18,539
3,300

Adjusted Voting power

Subscriptions
Carrying Votes
($)
(a-1)
1,680,146
391,346
6,687,835
10,467,956
31,977,106

Contributions
($)
(a-2)

Total
Cumulative
Subscription Membership
Resources ($)
Votes
Votes
(a-3)
(a-4)
(a-5)
1,680,146
17,283
54,200
391,346
4,281
54,200
6,687,835
68,267
54,200
10,467,956
106,731
54,200
148,942,411
348,024
54,200

Additional Resources Provided under IDA18 in
SDRs or Freely Convertible Currencies

Total Voting
Power %
(c-4)
0.23%
0.19%
0.40%
0.52%
1.29%

Subscription
Total
Total
Carrying Votes Subscriptio Contributions
Additional
Subscription as % of Membership
($)
n Votes
($)
Resources ($)
Votes
part II
Votes
(e-1)
(e-2)
(e-3)
(e-4)
(f-1)
(f-2)
(f-3)
0
0
0
0
18,204
0.24%
57,500
0
0
0
0
4,509
0.06%
57,500
36,750
1,470
24,970,467
25,098,117
73,373
0.96%
57,500
0
0
0
0
112,416
1.47%
57,500
11,125
445
7,556,798
8,031,398
367,008
4.79%
57,500

Total
Total
Voting
Votes
Power %
(f-4)
(f-5)
75,704 0.23%
62,009 0.19%
130,873 0.40%
169,916 0.52%
424,508 1.29%

- 148 -

Table 2. Subscriptions, Contributions, and Votes
(amounts in US$ Equivalents)
Part II

Allocation for Exercise of Preemptive Rights
to Maintain Part II Voting Power

Current Status (before IDA18)
Subscriptions
Carrying Votes
($)
(a-1)

Contributions
($)
(a-2)

Total
Cumulative
Resources ($)
(a-3)

Total
Voting
Power %
(a-6)

Subscription
Carrying Votes Subscription
($)
Votes
(c-1)
(c-2)

HONDURAS
HUNGARY
INDIA
INDONESIA
IRAN, ISLAMIC REP. OF

505,100
12,882,759
68,697,420
18,436,421
7,566,336

0
153,735,807
199,774,851
17,871,419
18,134,199

505,100
166,618,566
268,472,271
36,307,840
25,700,535

5,384
145,219
752,838
188,640
78,167

54,200
54,200
54,200
54,200
54,200

0.19%
0.64%
2.60%
0.78%
0.43%

7,175
193,400
1,002,575
251,225
104,100

IRAQ
ISRAEL
JORDAN
KAZAKHSTAN
KENYA

1,268,910
3,034,528
505,100
2,558,421
2,793,624

0
92,554,803
0
6,571,277
0

1,268,910
95,589,331
505,100
9,129,698
2,793,624

13,174
38,233
5,384
26,689
28,674

54,200
54,200
54,200
54,200
54,200

0.22%
0.30%
0.19%
0.26%
0.27%

KIRIBATI
KOREA
KOSOVO
KYRGYZ REPUBLIC
LAO PEOPLE'S DEM. REP.

108,779
6,834,349
924,531
672,988
838,252

0
1,965,738,072
0
0
0

108,779
1,972,572,421
924,531
672,988
838,252

1,385
212,984
9,293
7,143
8,808

54,200
54,200
53,300
54,200
54,200

LEBANON
LESOTHO
LIBERIA
LIBYA
MACEDONIA, FYR

757,214
275,030
1,268,910
1,680,096
4,506,252

0
0
0
0
0

757,214
275,030
1,268,910
1,680,096
4,506,252

8,044
3,092
13,174
17,282
5,980

MADAGASCAR
MALAWI
MALAYSIA
MALDIVES
MALI

1,680,096
1,268,910
4,230,112
58,976
1,450,280

0
0
29,194,196
0
0

1,680,096
1,268,910
33,424,308
58,976
1,450,280

MARSHALL ISLANDS
MAURITANIA
MAURITIUS
MEXICO
MICRONESIA, FED. ST. OF

26,122
838,252
1,437,651
15,642,733
42,842

0
0
35,560
380,043,877
0

MOLDOVA
MONGOLIA
MONTENEGRO
MOROCCO
MOZAMBIQUE

939,406
391,345
766,864
5,862,250
2,278,645

MYANMAR
NEPAL
NICARAGUA
NIGER
NIGERIA

Adjusted Voting power

Subscription
Total
Total
Carrying Votes Subscriptio Contributions
Additional
($)
n Votes
($)
Resources ($)
(e-1)
(e-2)
(e-3)
(e-4)

Total
Votes
(f-4)

Total
Voting
Power %
(f-5)

57,500
57,500
57,500
57,500
57,500

63,171
211,540
861,182
261,081
141,596

0.19%
0.64%
2.62%
0.79%
0.43%

0.18%
0.54%
0.07%
0.37%
0.39%

57,500
57,500
57,500
57,500
57,500

71,376
99,204
63,171
85,611
87,701

0.22%
0.30%
0.19%
0.26%
0.27%

1,459
248,065
9,788
7,523
9,277

0.02%
3.24%
0.13%
0.10%
0.12%

57,500
57,500
56,600
57,500
57,500

58,959
305,565
66,388
65,023
66,777

0.18%
0.93%
0.20%
0.20%
0.20%

0
0
0
0
0

8,472
3,257
13,876
18,203
6,299

0.11%
0.04%
0.18%
0.24%
0.08%

57,500
57,500
57,500
57,500
57,500

65,972
60,757
71,376
75,703
63,799

0.20%
0.18%
0.22%
0.23%
0.19%

0
0
27,006,817
0
0

0
0
27,105,967
0
0

18,203
13,876
48,568
924
15,796

0.24%
0.18%
0.63%
0.01%
0.21%

57,500
57,500
57,500
57,500
57,500

75,703
71,376
106,068
58,424
73,296

0.23%
0.22%
0.32%
0.18%
0.22%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

579
9,277
15,761
210,861
763

0.01%
0.12%
0.21%
2.75%
0.01%

57,500
57,500
57,500
57,500
57,500

58,079
66,777
73,261
268,361
58,263

0.18%
0.20%
0.22%
0.82%
0.18%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

10,415
4,509
7,833
63,156
24,654

0.14%
0.06%
0.10%
0.82%
0.32%

57,500
57,500
56,600
57,500
57,500

67,915
62,009
64,433
120,656
82,154

0.21%
0.19%
0.20%
0.37%
0.25%

0.29%
0.20%
0.19%
0.20%
0.36%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

36,350
9,277
5,671
9,277
59,997

0.47%
0.12%
0.07%
0.12%
0.78%

57,500
57,500
57,500
57,500
57,500

93,850
66,777
63,171
66,777
117,497

0.29%
0.20%
0.19%
0.20%
0.36%

3,300
3,300
3,300
3,300
3,300

0.19%
0.74%
0.18%
0.18%
0.22%

0
36,550
0
0
0

0
1,462
0
0
0

0
24,826,317
0
0
0

0
25,098,117
0
0
0

5,851
187,533
610
843
15,739

0.08%
2.45%
0.01%
0.01%
0.21%

57,500
57,500
57,500
57,500
57,500

63,351
245,033
58,110
58,343
73,239

0.19%
0.75%
0.18%
0.18%
0.22%

287
1,671
4,618
28,172
2,996

3,300
3,300
3,300
3,300
3,300

0.19%
0.28%
0.45%
1.88%
0.36%

0
0
7,300
27,575
0

0
0
292
1,103
0

0
0
4,957,109
18,738,028
0

0
0
5,079,859
19,469,903
0

5,671
33,037
91,601
558,139
59,234

0.07%
0.43%
1.19%
7.28%
0.77%

57,500
57,500
57,500
57,500
56,600

63,171
90,537
149,101
615,639
115,834

0.19%
0.28%
0.45%
1.87%
0.35%

702
97
83
48,511
1,527

3,300
3,300
3,300
3,300
3,300

0.22%
0.18%
0.18%
3.10%
0.27%

0
0
0
170,575
0

0
0
0
6,823
0

0
0
0
115,871,850
0

0
0
0
117,255,200
0

13,876
1,913
1,645
966,031
30,201

0.18%
0.02%
0.02%
12.60%
0.39%

57,500
57,500
57,500
57,500
57,500

71,376
59,413
59,145
1,023,531
87,701

0.22%
0.18%
0.18%
3.12%
0.27%

Membership
Votes
(c-3)

Total Voting
Power %
(c-4)

287
7,736
40,103
10,049
4,164

3,300
3,300
3,300
3,300
3,300

0.19%
0.64%
2.60%
0.78%
0.43%

0
27,125
268,525
122,300
44,125

0
1,085
10,741
4,892
1,765

0
18,424,231
182,397,085
83,079,827
29,969,516

17,550
50,925
7,175
35,550
38,175

702
2,037
287
1,422
1,527

3,300
3,300
3,300
3,300
3,300

0.22%
0.30%
0.19%
0.26%
0.27%

0
35,850
0
0
0

0
1,434
0
0
0

0.18%
0.86%
0.20%
0.20%
0.20%

1,850
283,625
12,375
9,500
11,725

74
11,345
495
380
469

3,300
3,300
3,300
3,300
3,300

0.18%
0.86%
0.21%
0.20%
0.20%

0
593,400
0
0
0

54,200
54,200
54,200
54,200
54,200

0.20%
0.18%
0.22%
0.23%
0.19%

10,700
4,125
17,550
23,025
7,975

428
165
702
921
319

3,300
3,300
3,300
3,300
3,300

0.20%
0.19%
0.22%
0.23%
0.19%

17,282
13,174
44,602
877
14,997

54,200
54,200
54,200
54,200
54,200

0.23%
0.22%
0.32%
0.18%
0.22%

23,025
17,550
59,400
1,175
19,975

921
702
2,376
47
799

3,300
3,300
3,300
3,300
3,300

26,122
838,252
1,473,211
395,686,610
42,842

550
8,808
14,964
200,197
724

54,200
54,200
54,200
54,200
54,200

0.18%
0.20%
0.22%
0.82%
0.18%

725
11,725
19,925
266,600
975

29
469
797
10,664
39

0
0
0
0
0

939,406
391,345
766,864
5,862,250
2,278,645

9,888
4,281
7,437
59,962
23,407

54,200
54,200
53,300
54,200
54,200

0.21%
0.19%
0.20%
0.37%
0.25%

13,175
5,700
9,900
79,850
31,175

3,359,892
838,252
505,100
838,252
5,577,519

0
0
0
0
0

3,359,892
838,252
505,100
838,252
5,577,519

34,512
8,808
5,384
8,808
56,963

54,200
54,200
54,200
54,200
54,200

0.29%
0.20%
0.19%
0.20%
0.36%

OMAN
PAKISTAN
PALAU
PANAMA
PAPUA NEW GUINEA

509,502
16,889,603
39,225
44,962
1,436,903

1,031,875
11,428,581
0
0
0

1,541,377
28,318,184
39,225
44,962
1,436,903

5,555
176,661
579
800
14,943

54,200
54,200
54,200
54,200
54,200

PARAGUAY
PERU
PHILIPPINES
POLAND
ROMANIA

505,100
2,971,752
8,397,932
50,853,466
5,596,301

0
15,602,676
16,253,002
74,389,617
0

505,100
18,574,428
24,650,934
125,243,083
5,596,301

5,384
31,366
86,691
528,864
56,238

RWANDA
SAMOA
SAO TOME & PRINCIPE
SAUDI ARABIA
SENEGAL

1,268,910
156,667
125,586
26,482,699
2,793,624

0
0
0
2,678,742,933
0

1,268,910
156,667
125,586
2,705,225,632
2,793,624

13,174
1,816
1,562
910,697
28,674

Member

Subscription Membership
Votes
Votes
(a-4)
(a-5)

Additional Resources Provided under IDA18 in
SDRs or Freely Convertible Currencies

Subscription
Votes
(f-1)

as % of
part II
(f-2)

Membership
Votes
(f-3)

0
18,644,756
183,668,185
83,453,352
30,117,741

5,671
154,040
803,682
203,581
84,096

0.07%
2.01%
10.48%
2.66%
1.10%

0
24,359,313
0
0
0

0
24,446,088
0
0
0

13,876
41,704
5,671
28,111
30,201

0
23,736
0
0
0

0
403,090,425
0
0
0

0
403,967,450
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0.23%
0.22%
0.32%
0.18%
0.22%

0
0
39,750
0
0

0
0
1,590
0
0

3,300
3,300
3,300
3,300
3,300

0.18%
0.20%
0.22%
0.82%
0.18%

0
0
0
0
0

527
228
396
3,194
1,247

3,300
3,300
3,300
3,300
3,300

0.21%
0.19%
0.20%
0.37%
0.25%

45,950
11,725
7,175
11,725
75,850

1,838
469
287
469
3,034

3,300
3,300
3,300
3,300
3,300

0.19%
0.75%
0.18%
0.18%
0.22%

7,400
235,250
775
1,075
19,900

296
9,410
31
43
796

54,200
54,200
54,200
54,200
53,300

0.19%
0.28%
0.45%
1.88%
0.35%

7,175
41,775
115,450
704,300
74,900

54,200
54,200
54,200
54,200
54,200

0.22%
0.18%
0.18%
3.11%
0.27%

17,550
2,425
2,075
1,212,775
38,175

- 149 -

Table 2. Subscriptions, Contributions, and Votes
(amounts in US$ Equivalents)
Part II

Allocation for Exercise of Preemptive Rights
to Maintain Part II Voting Power

Current Status (before IDA18)
Subscriptions
Carrying Votes
($)
(a-1)

Contributions
($)
(a-2)

Total
Cumulative
Resources ($)
(a-3)

Total
Voting
Power %
(a-6)

Subscription
Carrying Votes Subscription
($)
Votes
(c-1)
(c-2)

SERBIA
SIERRA LEONE
SINGAPORE
SLOVAK REPUBLIC
SOLOMON ISLANDS

29,851,743
1,268,910
995,408
3,119,341
156,667

0
0
210,083,201
27,639,647
0

29,851,743
1,268,910
211,078,609
30,758,988
156,667

37,557
13,174
23,006
34,677
1,816

54,200
54,200
53,300
54,200
54,200

0.30%
0.22%
0.25%
0.29%
0.18%

50,025
17,550
30,625
46,175
2,425

SOMALIA
SOUTH SUDAN
SRI LANKA
ST. KITTS & NEVIS
ST. LUCIA

1,268,910
594,475
5,030,482
224,871
257,844

0
0
0
0
0

1,268,910
594,475
5,030,482
224,871
257,844

13,174
5,979
51,414
2,568
2,897

54,200
53,300
54,200
54,200
54,200

0.22%
0.19%
0.34%
0.18%
0.18%

ST. VINCENT & GRENADINES
SUDAN
SWAZILAND
SYRIAN ARAB REP.
TAJIKISTAN

125,404
1,680,096
540,536
1,582,518
624,071

0
0
0
0
0

125,404
1,680,096
540,536
1,582,518
624,071

1,555
17,282
5,803
16,334
6,668

54,200
54,200
54,200
54,200
54,200

TANZANIA
THAILAND
TIMOR-LESTE
TOGO
TONGA

2,793,624
5,037,782
477,900
1,268,910
125,404

0
4,857,412
0
0
0

2,793,624
9,895,194
477,900
1,268,910
125,404

28,674
51,706
4,777
13,174
1,555

TRINIDAD & TOBAGO
TUNISIA
TURKEY
TUVALU
UGANDA

2,247,414
2,514,955
10,209,305
33,117
2,793,624

0
0
208,179,634
0
0

2,247,414
2,514,955
218,388,939
33,117
2,793,624

UKRAINE
UZBEKISTAN
VANUATU
VIETNAM
YEMEN, REPUBLIC OF

10,377,341
2,051,073
323,881
2,514,955
2,611,567

0
0
0
0
0

ZAMBIA
ZIMBABWE

4,470,312
6,832,318

Subtotal Part II

652,833,879

Total Voting
Power %
(c-4)

2,001
702
1,225
1,847
97

3,300
3,300
3,300
3,300
3,300

0.30%
0.22%
0.25%
0.29%
0.18%

0
0
67,825
4,325
0

0
0
2,713
173
0

0
0
46,078,240
2,942,874
0

17,550
7,950
68,475
3,425
3,850

702
318
2,739
137
154

3,300
3,300
3,300
3,300
3,300

0.22%
0.19%
0.34%
0.18%
0.18%

0
0
0
0
0

0
0
0
0
0

0.18%
0.23%
0.19%
0.23%
0.20%

2,075
23,025
7,725
21,750
8,875

83
921
309
870
355

3,300
3,300
3,300
3,300
3,300

0.18%
0.23%
0.19%
0.23%
0.20%

0
0
0
0
0

54,200
54,200
53,300
54,200
54,200

0.27%
0.34%
0.19%
0.22%
0.18%

38,175
68,850
6,350
17,550
2,075

1,527
2,754
254
702
83

3,300
3,300
3,300
3,300
3,300

0.27%
0.34%
0.19%
0.22%
0.18%

23,147
25,917
125,726
335
28,674

54,200
54,200
54,200
53,300
54,200

0.25%
0.26%
0.58%
0.17%
0.27%

30,825
34,525
167,425
450
38,175

1,233
1,381
6,697
18
1,527

3,300
3,300
3,300
3,300
3,300

10,377,341
2,051,073
323,881
2,514,955
2,611,567

103,106
21,226
3,562
25,917
24,866

53,300
54,200
54,200
54,200
54,200

0.50%
0.24%
0.19%
0.26%
0.26%

137,300
28,275
4,750
34,525
33,125

5,492
1,131
190
1,381
1,325

0
0

4,470,312
6,832,318

45,820
69,587

54,200
54,200

0.32%
0.40%

61,025
92,675

7,880,991,889

8,533,825,768

7,183,876

7,688,300

48.00%

9,566,925

Subtotal Part I

1,343,520,244 237,875,932,066 239,219,452,310

14,505,917

1,605,748

Grand Total

1,996,354,123 245,756,923,955 247,753,278,078

21,689,793

9,294,048

Notes:

Adjusted Voting power

Subscription
Total
Total
Carrying Votes Subscriptio Contributions
Additional
($)
n Votes
($)
Resources ($)
(e-1)
(e-2)
(e-3)
(e-4)

Membership
Votes
(c-3)

Member

Subscription Membership
Votes
Votes
(a-4)
(a-5)

Additional Resources Provided under IDA18 in
SDRs or Freely Convertible Currencies

Membership
Votes
(f-3)

Total
Votes
(f-4)

Total
Voting
Power %
(f-5)

Subscription
Votes
(f-1)

as % of
part II
(f-2)

0
0
46,176,690
2,993,374
0

39,558
13,876
26,944
36,697
1,913

0.52%
0.18%
0.35%
0.48%
0.02%

57,500
57,500
56,600
57,500
57,500

97,058
71,376
83,544
94,197
59,413

0.30%
0.22%
0.25%
0.29%
0.18%

0
0
0
0
0

0
0
0
0
0

13,876
6,297
54,153
2,705
3,051

0.18%
0.08%
0.71%
0.04%
0.04%

57,500
56,600
57,500
57,500
57,500

71,376
62,897
111,653
60,205
60,551

0.22%
0.19%
0.34%
0.18%
0.18%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

1,638
18,203
6,112
17,204
7,023

0.02%
0.24%
0.08%
0.22%
0.09%

57,500
57,500
57,500
57,500
57,500

59,138
75,703
63,612
74,704
64,523

0.18%
0.23%
0.19%
0.23%
0.20%

0
6,200
0
0
0

0
248
0
0
0

0
4,211,916
0
0
0

0
4,286,966
0
0
0

30,201
54,708
5,031
13,876
1,638

0.39%
0.71%
0.07%
0.18%
0.02%

57,500
57,500
56,600
57,500
57,500

87,701
112,208
61,631
71,376
59,138

0.27%
0.34%
0.19%
0.22%
0.18%

0.25%
0.26%
0.58%
0.18%
0.27%

0
0
38,200
0
0

0
0
1,528
0
0

0
0
25,943,878
0
0

0
0
26,149,503
0
0

24,380
27,298
133,951
353
30,201

0.32%
0.36%
1.75%
0.00%
0.39%

57,500
57,500
57,500
56,600
57,500

81,880
84,798
191,451
56,953
87,701

0.25%
0.26%
0.58%
0.17%
0.27%

3,300
3,300
3,300
3,300
3,300

0.51%
0.24%
0.19%
0.26%
0.26%

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

108,598
22,357
3,752
27,298
26,191

1.42%
0.29%
0.05%
0.36%
0.34%

56,600
57,500
57,500
57,500
57,500

165,198
79,857
61,252
84,798
83,691

0.50%
0.24%
0.19%
0.26%
0.25%

2,441
3,707

3,300
3,300

0.32%
0.40%

0
0

0
0

0
0

0
0

48,261
73,294

0.63%
0.96%

57,500
57,500

105,761
130,794

0.32%
0.40%

382,677

468,600

48.03%

2,500,900

100,036

1,698,854,827

1,708,002,477

7,666,589

100%

8,156,900

15,823,489

48.17%

52.00%

15,321,951

100%

1,701,448

17,023,399

51.83%

100.00%

22,988,540

100%

9,858,348

32,846,888

100.00%

Current Status (a-1) to (a-6): It is assumed that the members that have outstanding commitments to subscribe or contribute to any previous Replenishment will fulfill their obligations. Amounts have
been calculated, for purposes of the voting rights adjustment, by multiplying the subscriptions and contributions up to and including the Third Replenishment (which were expressed in terms of U.S. dollars
of the weight and fineness in effect on January 1, 1960) by 1.20635 and adding thereto the dollar equivalents of the subscriptions and contributions under the Fourth through Seventeenth Replenishments
at the agreed exchange rates.
Allocation of Additional Votes with respect to Encashment: Subscription votes have been allocated on the imputed value of these contributions based on the related encashment schedule rather than
the nominal amounts shown in contribution tables. For the Eighteenth Replenishment, this is included in column (b-1) for Part I countries, and for Part II contributing countries in column (e-4).
Additional Resources Provided under IDA18 in SDRs or Freely Convertible Currencies: The amounts shown in column (e-4) represent the additional resources provided under IDA18 by Part II
members in SDRs or freely convertible currencies, as set out in Table 1A. The U.S. Dollar equivalent has been obtained by converting the SDR amount using the average exchange rates for the U.S. Dollar
against the SDR over the period March 1 to August 31, 2016 (SDR1=USD1.40207). These amounts are divided into subscriptions carrying votes (columns (c-1) and (e-1)) and contributions (column (e3)).
Update of Part II members: The table has been updated to reflect the expected membership status of Part II members.

- 150 -

Attachment I
INTERNATIONAL DEVELOPMENT ASSOCIATION
Addition to Resources: Eighteenth Replenishment
Instrument of Commitment

Reference is made to Resolution No. ____ of the Board of Governors of the International
Development Association entitled “Additions to Resources: Eighteenth Replenishment”, which
was adopted on __________, 2017 (“the Resolution”).
The Government of _________________________ HEREBY NOTIFIES the
Association pursuant to paragraph 2 of the Resolution that it will make the _______________152
authorized for it in accordance with the terms of the Resolution in the amount of
______________ [of which______________________ amount represents the grant element of a
Concessional Member Loan].153
____________________ __________________________________
(Date) (Name and Office) 154

152

153

154

This form of Instrument of Commitment may be used for a Contributing Member’s regular contribution, any Debt Relief
Additional Contribution, and any Grant Compensation Additional Contribution either under separate instruments or combined.
Contributing Members fill in the words “subscription and contribution” for both regular contributions and Debt Relief
Additional Contributions; and Subscribing Members fill in the word “subscription” only.
Pursuant to paragraph 5(a) of the Eighteenth Replenishment Resolution, members are required to denominate their
subscription and contribution, or subscription only, as the case may be, in SDRs, in the currency of the member if freely
convertible, or with the agreement of the Association in a freely convertible currency of another member. Payment will be
made as provided in paragraph 5(b) of the Resolution.
The instrument is to be signed on behalf of the Government by a duly authorized representative.

- 151 -

Attachment II
Encashment Schedule for IDA18 Contributions
(Percent of Total Contributions)
Fiscal Year

Standard Schedule

2018

5.8

2019

10.3

2020

14.5

2021

12.6

2022

12.2

2023

12.3

2024

12.2

2025

11.0

2026

9.1
__________
100.0