project preparation facility - world bank · the ppa complements other bank methods of assisting...
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OP 8.10
July 2008
Page 1 of 3
(Revised November 2011)
These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
Note: OP and BP 8.10 replace the version dated February 2002. They were updated in November 2011 to reflect the
provisions of Review of Operational Policy Waivers (R2011-0184), July 26, 2011. They apply to all PPA Agreements
that were signed after July 10, 2008. For guidance on, and answers to, specific questions about the Project
Preparation Facility, staff should contact [email protected].
Project Preparation Facility
1. The Bank1 may make a Project/Program Preparation Advance (PPA) from the Project
Preparation Facility (PPF) to a prospective borrower to finance:
(a) preparatory activities for investment operations, including preliminary and detailed
designs and limited initial implementation activities; and
(b) preparation of programs to be supported by development policy lending operations.
2. The following can be recipients of a PPA:
(a) in the case of PPAs made by IDA, a member country or regional organization2; and
(b) in the case of PPAs made by IBRD, any IBRD-eligible borrower.3 If the IBRD
borrower is not a member country, the member country’s guarantee of the repayment
of the PPA is required.
The PPA complements other Bank methods of assisting project or program preparation, such as
trust fund grants for project/program preparation and retroactive financing.4
3. A PPA is made only when there is a strong probability that a Bank loan will be made to
the PPA recipient for the operation under preparation. However, granting the PPA does not
commit the Bank to finance any portion of the operation. The PPA is designed to be refinanced
out of the proceeds of the loan for whose preparation the PPA is granted or, if the loan does not
materialize, to be refinanced or repaid as provided in paragraph 8. The PPA is made in US
dollars and carries interest on IBRD fixed spread terms or charges on IDA credit or IDA grant
terms, depending on the country’s borrowing status.5 Payment of interest or service charges,
1 “Bank” includes IBRD and IDA, “loans” includes IDA credits and IDA grants, and “borrower” includes recipient of an IDA
credit or grant. 2 A regional organization may receive a PPA if the project will be financed through an IDA grant to such regional
organization. 3 See OP 7.00, Lending Operations: Choice of Borrower and Contractual Agreements. 4 For grants, see OP/BP 8.45, Grants; and for retroactive financing, see BP 6.00, Bank Financing. 5 When the operation is likely to be financed with a blend of IBRD and IDA funds, the PPA is normally granted on IDA terms
and refinanced out of the proceeds of the IDA credit or grant, in accordance with the policy that IDA funds are normally
disbursed first. See OP 3.10, Annex D, IBRD/IDA and Blend Countries: Per Capita Incomes, Lending Eligibility and
Repayment Terms.
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OP 8.10
July 2008
Page 2 of 3
(Revised November 2011)
These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
where applicable,6 is deferred until the PPA is refinanced out of the proceeds of the loan or other
repayment terms take effect.
4. The Bank determines the PPF's total commitment authority and the ceiling on individual
advances. One or more PPAs may be made for the operation at any stage before the Bank
approves the loan, up to an aggregate maximum amount of (a) US$5 million for operations made
under OP 8.00, Rapid Response to Crises and Emergencies; or (b) US$3 million for all other
operations or for each loan in a regional operation.
Refinancing/Repayment
5. The PPA Agreement between the PPA recipient and the Bank spells out the purposes,
terms, and conditions of the PPA and specifies a date by which the advance is to be refinanced or
the repayment process initiated.7 The refinancing date is the expected date of effectiveness of the
Loan Agreement to be made for the operation under preparation. After this date, no withdrawals
of the advance are made, and any unwithdrawn amount of the advance is canceled. If the Loan
Agreement has not become effective within two years following the date of PPA approval,8 a
later refinancing date may be agreed between the PPA recipient and the Bank. Extension of the
refinancing date beyond four years following PPA approval requires RVP approval. If the loan
for which the PPA was made is unlikely to materialize by the refinancing date, the PPA may be
refinanced out of the proceeds of any other loan to or guaranteed by the PPA recipient for which
the Loan Agreement becomes effective by the refinancing date.
6. To refinance the PPA, an amount sufficient to cover the principal amount of the advance
plus any applicable estimated accrued interest or service charges is allocated in a separate
disbursement category in the Loan Agreement providing for the Bank loan. Any excess amount
remaining in this category after refinancing the PPA may be reallocated to other disbursement
categories in the disbursement schedule of the Loan Agreement.
7. Further disbursements for continuing PPA activities that have been included as eligible
for financing under the loan are made against the appropriate disbursement categories in the
Loan Agreement.
8. If no Loan Agreement providing for the refinancing of the PPA has become effective by
the refinancing date (including any extensions), the following apply:
(a) If the PPA recipient was an IBRD borrower or an IDA country eligible to receive
IDA credits9 on the PPA approval date, it is required to repay the PPA (together with
6 If, on the date of approval of the PPA, the PPA recipient is eligible only to receive IDA Grants, the PPA does not carry
service charges. See OP 3.10, Annex D, IBRD/IDA and Blend Countries: Per Capita Incomes, Lending Eligibility and
Repayment Terms. 7 A Guarantee Agreement is also concluded between the Bank and the member country when the PPA is extended to an IBRD
borrower that is not a member country. 8 Approval is determined as the date of signature by the Country Director of the PPA Agreement. 9 ACTCF sends the notice of how the PPA will be repaid.
OP 8.10
July 2008
Page 3 of 3
(Revised November 2011)
These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
any applicable accrued interest or service charges) upon notice by the Bank in 10
approximately equal semiannual installments over a five-year period after the
refinancing date. However, if the disbursed amount of the PPA is US$50,000 or less,
the PPA recipient is required to repay it within 60 days after the Bank's notice to
repay.10
(b) If the PPA recipient was an IDA country or a regional organization eligible only to
receive IDA grants on the PPA approval date, the advance becomes a grant and is not
repaid by the recipient.
Suspension of Disbursements and Cancellation
9. The Bank may suspend disbursements11
of the PPA upon the occurrence of any of the
events of suspension specified or referred to in the PPA Agreement.12
The Bank may also request
a refund of any amount of the advance that has not been used in accordance with the provisions
of the PPA Agreement.
10. At any time after disbursements of the PPA have been suspended or an amount of the
advance has been refunded, the Bank may cancel any remaining unwithdrawn amount of the
PPA.
10 See OP 3.10, Annex D, IBRD/IDA and Blend Countries: Per Capita Incomes, Lending Eligibility, and Repayment Terms. 11 See OP/BP 13.40, Suspension of Disbursements. 12 See the Standard Conditions for Project Preparation Facility Advances, incorporated by reference in the PPA agreement.
BP 8.10
July 2008
Page 1 of 3
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
Note: OP and BP 8.10 replace the version dated February 2002. They were updated in November 2011 to reflect the
provisions of Review of Operational Policy Waivers (R2011-0184), July 26, 2011. They apply to all PPA Agreements
that were signed after July 10, 2008. For guidance on, and answers to, specific questions about the Project
Preparation Facility, staff should contact [email protected].
Project Preparation Facility
1. Project/Program Preparation Advances (PPAs) are made by Bank1
management from the
Project Preparation Facility (PPF) under a special authority granted by the Executive Directors,
who determine, from time to time, the ceiling on the commitment authority of the PPF and on the
size of individual PPAs. The Managing Directors responsible for Operations make indicative
allocations to the Regions within the limits of the commitment authority and adjust them
periodically, as necessary. The Regions monitor their commitments against the indicative
allocations to ensure that the limits are observed. Since PPAs are normally refinanced out of
loans, they are carried on the books of the Bank as receivables on account of project preparation,
rather than as loans, until they are refinanced or repaid.
2. The processing of a PPA begins when the Bank receives a letter from the PPA recipient
requesting the advance and containing the following information:
(a) brief statement of the purposes of the PPA, and the expenditures it would finance;
(b) the expected period of project preparation; and
(c) a table showing local currency and U.S. dollar estimates for the items to be financed
under the PPA.
3. The country unit and the task team leader (TTL) review the recipient's proposal for a PPA
to determine:2
(a) whether the proposal is sound;
(b) whether the proposed activities are appropriate;
(c) what amount of advance would be needed, given the estimated cost of the activities;
(d) how the activities would be carried out (including procedures for procurement of
goods and services);
1 "Bank" includes IBRD and IDA, "loans" includes IDA credits and IDA grants, and "borrower" includes recipient of an IDA
credit or grant. 2 For PPAs made under OP 8.00, Rapid Response to Crises and Emergencies, staff should follow BP 8.00.
BP 8.10
July 2008
Page 2 of 3
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
(e) whether the PPA should be made by IBRD or IDA (including country debt-risk
classification— green, yellow, red); and
(f) a suitable deadline for refinancing/repaying the PPA.
4. If the proposal meets the criteria set out in OP 8.10, paras. 1-3, the TTL prepares a brief
memorandum to the country director requesting approval of the PPA. The memorandum covers
the following points:
(a) a brief description of the project, its objectives, and its economic justification, and
whether it is likely to be financed by IBRD or IDA (including country debt-risk
classification—green, yellow, red);
(b) the recipient's commitment and readiness to undertake project preparation;
(c) the activities to be financed by the PPA, and their appropriateness;
(d) the refinancing date; and
(e) the procurement methods and disbursement arrangements, including the terms and
conditions of any designated account.3
5. The draft memorandum, together with a copy of the PPA recipient’s letter of request, is
sent to the finance officer, the procurement specialist, and the lawyer for their review. The
lawyer prepares the PPA Agreement, which is cleared by the TTL, the finance officer, and the
procurement specialist. The finance officer and the accounting officer/portfolio officer in the
Loan Services Group ensure that the proposed advance falls within the Regional commitment
level and assign the PPF number that is shown in the PPA Agreement.
6. The TTL sends the memorandum and two originals of the cleared PPA agreement
(including a Guarantee Agreement with the member country when the PPA is extended to an
IBRD borrower that is not a member), together with a copy of the PPA recipient’s letter of
request, to the country director for approval. The originals of the PPA Agreement(s) are signed
by the country director or other designated person4 and are sent to the recipient (and guarantor,
where applicable) for countersignature by an authorized representative of the recipient (and
guarantor, where applicable). One original fully signed version of the PPA Agreement(s) is
returned to the Bank. Upon receipt by the Bank of the countersigned original, the PPA
Agreement(s) become(s) effective in accordance with its (their) terms.5 This original is sent to
the lawyer, and a copy is sent to LOA, the Loan Services Group, and OPCS.
3 When relatively few payments are anticipated, the establishment of a designated account may not be warranted. 4 Staff should see Administrative Manual Statement 1.30, Annex C, Designation of Authorized Signatories for Instruments
Relating to Lending, Technical Assistance, and Cofinancing Operations. 5 Usually, the Letter Agreement becomes effective as of the date of countersignature.
BP 8.10
July 2008
Page 3 of 3
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
Extension of Refinancing Date
7. Requests for approval of an extension of the refinancing date are made in a memorandum
that explains the rationale for the extension. The memorandum is prepared by the TTL, cleared
by the finance officer and the lawyer, and sent to the country director for approval. Extensions of
the refinancing date beyond four years following PPA approval require RVP approval.
Reporting Arrangements
8. After signing, the Region reports the agreement for a PPA in the Report to the Executive
Directors on Bank and IDA Operations and in the Monthly Operational Summary of Bank and
IDA Proposed Projects.
OP 13.00
February 2002
Page 1 of 3
(Revised November 2011)
These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
OP and BP 13.00 replace the versions dated July 1994 and para. 2(a) of the Operational Memorandum
Responsibilities of the Managing Directors, Operations, and Regional Vice Presidents, March 11, 1996. They have been
updated in November 2011 to reflect the provisions of Review of Operational Policy Waivers (R2011-0184), July 26,
2011. They are complemented by OPCS Guidelines and OPCS Templates, available online to staff. Questions may be
addressed to [email protected].
Note: This OP applies to loans, credits, and grants of more than US$1 million under the Global Environment Facility
(GEF). It does not apply to GEF grants for projects executed by organizations identified by the GEF Council as
eligible to work with the GEF through expanded opportunities for project preparation and implementation (such
organizations include, inter alia, regional development banks and UN agencies such as FAO and UNIDO); for such
operations and for GEF grants of US$1 million or less, staff should consult the GEF Executive Coordinator,
ENVGM, or refer to the GEF Operations website. For operations financed by the Multilateral Fund for the
Implementation of the Montreal Protocol (MP), see OP/BP 10.21, Investment Operations Financed by the Multilateral
Fund for the Implementation of the Montreal Protocol. For policies on the signing and effectiveness of legal agreements
for Project Preparation Facility advances, see OP/BP 8.10, Project Preparation Facility; for guarantees,
see OP/BP 14.25, Guarantees, or consult the Director, Project Finance and Guarantees Department, PSI; for World
Bank grants, including grants under the Development Grant Facility, see OP/BP 8.45, Grants, or consult the
Manager, Development Grant Facility, TFO; and for grants under trust funds, see OP/BP 14.40, Trust Funds, or
consult the Head, Trust Funds Oversight Team, TFO.
Signing of Legal Documents and Effectiveness of Loans and Credits
Signing
1. Once the Bank1approves a loan, authorized representatives of the borrower and the Bank
sign the legal agreements for the loan, subject to the following two requirements:
(a) the Bank has received from all the other signing parties satisfactory evidence of
authorizations for signature of the legal agreements; and
(b) no payments to the Bankon loans to the borrower, or on loans to or guaranteed by
the countryare overdue beyond the number of days specified in OP 13.40,
Suspension of Disbursements.
1 "Bank" includes IBRD and IDA; "loans" includes IDA credits, IDA grants, and GEF grants to which OP 13.00 applies; and
"borrower" includes recipient of IDA and GEF grants to which OP 13.00 applies. "Legal agreements" includes, as
applicable, the Loan Agreement, Financing Agreement, Guarantee Agreement, Project Agreement, GEF Grant Agreement
for GEF grants to which OP 13.00 applies, and, in the context of signing, any other agreement to which the Bank is a party,
including the Letter on Financial and Economic Data and any other supplemental letters.
OP 13.00
February 2002
Page 2 of 3
(Revised November 2011)
These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
Effectiveness
2. After signing, the legal agreements become effective only after the borrower furnishes to
the Bank satisfactory evidence that the borrower has met standard and special conditions of
effectiveness.2
(a) Standard conditions of effectiveness apply to all loans; they require the borrower to
show that the execution and delivery of the legal agreements on behalf of the
borrower and the guarantor, if applicable, have been duly authorized or ratified by all
necessary governmental and corporate actions.3 For a borrower that is not a member
of the Bank, the Bank may require evidence that the condition of the borrower, as
represented to the Bank at the date of signing, has undergone no material adverse
change since that date.
(b) Special conditions of effectiveness are specific to a particular loan; they pertain only
to actions that are essential for initiating the implementation of the project, or that
need to be taken early on to ensure project success.4
(c) As part of the evidence of compliance with the conditions, the Bank requires legal
opinions by counsel acceptable to the Bank (or a certificate from a competent official
of the borrower or guarantor or, where applicable, project implementing or other
entities with which the Bank has entered into a legal agreement) that the legal
agreements have been duly authorized or ratified by, and are legally binding upon, the
non-Bank parties involved. The legal opinions may also cover the legal aspects of
compliance with special conditions of effectiveness.
3. If, before the effectiveness date, any event occurs that would have entitled the Bank to
suspend the borrower's right to make withdrawals from the loan account had the Loan
Agreement been effective, the Bank may withhold the notice of effectiveness until the event
ceases to exist.5
2 Staff should refer to Sections 9.01 and 9.02 of the IBRD General Conditions for Loans and Sections 8.01 and 8.02 of the
IDA General Conditions for Credits and Grants. For GEF grants to which OP 13.00 applies, staff should refer to the
applicable provisions of the GEF Grant Agreement. 3 See OP 7.00, Lending Operations: Choice of Borrower, and Contractual Agreements, for an explanation of when the Bank
may want to enter into a legal agreement with project implementing entities or other entities that have a direct interest either
in the project or in the achievement of its objectives. For loans that involve the Bank's entering into legal agreements with
entities other than the borrower or the guarantor, additional standard conditions of effectiveness require such entities to show
that the execution and delivery of the legal agreements on behalf of each such entity have been duly authorized or ratified by
all necessary governmental and corporate actions. 4 In general, such actions should be taken before the project is presented to the Bank's Executive Directors for approval. See
also OP 7.00, Lending Operations: Choice of Borrower, and Contractual Agreements, for special conditions of effectiveness
that may involve legislative action. 5 Staff should see the IBRD General Conditions for Loans, Section 9.03 (b), and the IDA General Conditions for Credits and
Grants, Section 8.03 (b). For GEF grants to which OP 13.00 applies, staff should see the applicable provisions of the GEF
Grant Agreement.
OP 13.00
February 2002
Page 3 of 3
(Revised November 2011)
These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
Deadlines and Extension
4. No deadline for signing is specified; however, the Bank expects signing to take place as
soon as possible after loan approval.6 If the legal agreements are not signed 18 months after
approval, the Bank normally withdraws the loan.7
5. The legal agreements terminate if the conditions established for effectiveness are not met
by the date specified in the legal agreements, normally 90 days after signing, but this date does
not normally exceed 18 months after loan approval.8 However, if the borrower shows
satisfactory reasons for the delay, the Bank may set a later date on the basis of the time required
to fulfill the remaining conditions of effectiveness.9 Any action by the Bank to declare the legal
agreement(s) effective or to extend the effectiveness deadline must be taken before the expiration
of the effectiveness deadline. If the legal agreement(s) have terminated for failure to become
effective by the effectiveness deadline, the Bank may, in exceptional circumstances, agree to
reinstate the terminated legal agreement(s).
6 Commitment charges begin accruing 60 days after the date on which the Loan or Financing Agreement is signed
(see OP/BP 3.10, Loan Charges, Currencies, and Payment Terms of IBRD Loans and IDA Credits). No commitment
charges accrue on GEF grants. 7 For exceptional extensions of the signing deadline beyond the 18-month period, see BP 13.00, para.19. 8 Although commitment charges begin to accrue 60 days after signing, the Bank does not charge commitment charges for
loans that fail to become effective (see OP/BP 3.10, Loan Charges, Currencies, and Payment Terms of IBRD Loans and
IDA Credits). 9 Staff should see the IBRD General Conditions for Loans, Section 9.04, and the IDA General Conditions for Credits and
Grants, Section 8.04. For GEF grants to which OP 13.00 applies, staff should see the applicable provisions of the GEF
Grant Agreement.
BP 13.00
February 2002
Page 1 of 6
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
OP and BP 13.00 replace the versions dated July 1994 and para. 2(a) of the Operational Memorandum
Responsibilities of the Managing Directors, Operations, and Regional Vice Presidents, March 11, 1996. They have been
updated in November 2011 to reflect the provisions of Review of Operational Policy Waivers (R2011-0184), July 26,
2011. They are complemented by OPCS Guidelines and OPCS Templates, available online to staff. Questions may
be addressed to [email protected].
Note: This BP applies to loans, credits, and grants of more than US$1 million under the Global Environment Facility
(GEF). It does not apply to GEF grants for projects executed by organizations identified by the GEF Council as
eligible to work with the GEF through expanded opportunities for project preparation and implementation (such
organizations include, inter alia, regional development banks and UN agencies such as FAO and UNIDO); for such
operations and for GEF grants of US$1 million or less, staff should consult the GEF Executive Coordinator,
ENVGM, or refer to the GEF Operations website. For operations financed by the Multilateral Fund for the
Implementation of the Montreal Protocol (MP), see OP/BP 10.21, Investment Operations Financed by the Multilateral
Fund for the Implementation of the Montreal Protocol. For policies on the signing and effectiveness of legal agreements
for Project Preparation Facility advances, see OP/BP 8.10, Project Preparation Facility; for guarantees,
see OP/BP 14.25, Guarantees, or consult the Director, Project Finance and Guarantees Department, PSI; for World
Bank grants, including grants under the Development Grant Facility, see OP/BP 8.45, Grants, or consult the
Manager, Development Grant Facility, TFO; and for grants under trust funds, see OP/BP 14.40, Trust Funds, or
consult the Head, Trust Funds Oversight Team, TFO.
Signing of Legal Documents and Effectiveness of Loans and Credits
Signing
1. The task team leader (TTL) consults with the country director and lawyer and the
representatives of other signing parties to arrange for signing to take place as soon as the
requirements for signing are met.1 The lawyer clears, and the TTL sends to the Corporate
Secretariat (SECPO), one initialed copy of the notice of signing that indicates the time and place
of signing.2 SECPO issues the notice of signing to all parties concerned within the Bank.
3
Preparation for Signing
2. Supplemental Letters. In preparation for signing, the lawyer finalizes the legal
agreements for signing by the representatives of the borrowing/guaranteeing member country,
borrower other than a member country, or project implementing entities. Supplemental
letters4 prepared for signing include the following: (a) for all loans, a Letter on Financial and
1 See OP 13.00, para. 1. 2 The notice is prepared electronically and available at OPCS Templates. 3 "Bank" includes both IBRD and IDA; "loan" includes IDA credit, IDA grant, and GEF grant to which BP 13.00 applies; and
"borrower" includes recipient of IDA and GEF grants to which BP 13.00 applies. "Legal agreements" includes, as
applicable, the Loan Agreement, the Financing Agreement, Guarantee Agreement, Project Agreement, and GEF Grant
Agreement for GEF grants to which BP 13.00 applies, and, in the context of signing, any other agreement to which the Bank
is a party; it also includes the Letter on Financial and Economic Data and any other supplemental letters. 4 See OP 7.00, Lending Operations: Choice of Borrower, and Contractual Agreements for additional information on
supplemental letters.
BP 13.00
February 2002
Page 2 of 6
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
Economic Data5 to be signed by the representative of the borrowing/guaranteeing member
country;6 (b) for loans for which the financial condition of a borrower (other than a member
country) or party to Project Agreement or other agreement with the Bank is a material factor in
the Bank's decision to make the loan, a Letter of Representations, to be signed by a
representative of such borrower or other party;7 and (c) any special supplemental letters that are
specific to the particular loan, to be signed by the borrower, guarantor, or project implementing
entities, as appropriate.
3. Requirements for Signing. Close to the scheduled day of signing, the Loan Accounting
and Borrower Services Division (LOALA) of the Loan Department reconfirms that neither the
borrower nor the country is in default on any other Bank loan.8
Document Handling
4. The lawyer prepares the number of copies of the legal agreements needed for signing and
sends them to SECPO. SECPO certifies the copies9 and returns them to the lawyer.
5. Once the legal agreements are ready for signing, the TTL invites the borrower and other
parties to the legal agreements to the signing. If signing is to be held in the country office and
the lawyer is unable to attend, the country director, in consultation with the lawyer and TTL,
arranges for a Regional staff member to attend and obtain the required signatures. The lawyer
arranges for the legal agreements to be sent to the designated staff with instructions on the
procedures to be followed for signing.
6. At the signing, the lawyer or designated Regional staff member delivers the signed legal
agreements and the appropriate number of copies to the representatives of the borrower, the
guarantor, and any other parties to the legal agreements. The RVP, the country director, or any
other person designated by the RVP10
signs the legal agreements for the Bank. For country-
based signings not attended by the lawyer, the designated Regional staff member arranges to
return the originals of the Bank's documents to the lawyer after they have been signed.
5 See OP/BP 14.10, External Debt Reporting and Financial Statements, and OP 7.00, Lending Operations: Choice of
Borrower, and Contractual Agreements, for additional information on the Letter of Financial and Economic Data. For
samples of a Letter on Financial and Economic Data, see BP 14.10, Annexes A and B. 6 This requirement pertaining to the preparation and signature of a Letter on Financial and Economic Data does not apply to
GEF grants. 7 See OP/BP 14.10, External Debt Reporting and Financial Statements, and OP 7.00, Lending Operations, Choice of
Borrower, and Contractual Agreements for additional information on the Letter of Representations. For samples of a Letter
of Representations regarding a Borrower’s/Project Entity’s Financial Condition, see BP 14.10, Annex C. 8 See OP 13.00, para. 1(b), and BP 13.00, para. 1. 9 A certified copy of a document has the official seal of the Bank. The Corporate Secretary certifies that this document is a
true copy of the original. 10 Staff should refer to the Administrative Manual Statement 1.30, Annex C, Designation of Authorized Signatories for
Instruments Relating to Lending, Technical Assistance, and Cofinancing Operations.
BP 13.00
February 2002
Page 3 of 6
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
7. After the signing, the lawyer sends the originals of the Bank's legal agreements to the
Official Documents Files, conformed copies11
to the country director and the TTL, and the
certified conformed copies to LOALA, the finance officer, and SECPO.12
The country director
sends written notification to officials in the country that signing has taken place.13
8. The lawyer sends conformed copies of the legal agreements for printing, and the TTL
sends the printed copies to all the parties concerned.
9. The Board is informed through the Monthly Operational Summary that the legal
agreements have been signed.
Effectiveness
10. Early in project preparation, Bank staff address any special country requirements
pertaining to effectiveness. Proposed conditions of effectiveness are discussed during project
appraisal and described in the Project Appraisal Document or Program Document. The
conditions are agreed during negotiations.
11. The borrower and the Bank reach agreement on the nature and content of the necessary
legal opinions14
in advance of the date set for effectiveness, and preferably during negotiations.
12. Following loan approval, the TTL monitors the borrower's progress toward compliance
with the conditions of effectiveness to ensure that the legal agreements become effective as early
as possible, and not later than the specified date, usually 90 days after the signing of the legal
agreements.
13. When the country director is satisfied that the conditions have been met, the lawyer
verifies the legal aspects of compliance with the conditions of effectiveness, including the legal
opinions confirming that all the legal agreements have been duly authorized or ratified. In a note
prepared by the TTL and cleared by the lawyer, the country director informs the borrower and all
the other parties to the legal agreements that the Bank (a) accepts the required evidence of
compliance with the conditions of effectiveness, and (b) declares the legal agreements
effective.15
The notice is copied to the finance officer.16
11 Conformed copies of the documents indicate the date of signing and the signatories. 12 For GEF grants to which BP 13.00 applies, copies are also sent to the Regional GEF Coordinator and the Trust Funds
Division of the Accounting Department (ACTTF). 13 See OPCS Templates for a sample notification. 14 See OP 13.00, para. 2(c). 15 See OPCS Templates. 16 For GEF grants to which BP 13.00 applies, the notice is copied to the Regional GEF Coordinator and to ACTTF.
BP 13.00
February 2002
Page 4 of 6
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
Delays in Signing and Effectiveness
Signing
14. The TTL monitors delays in signing and takes appropriate action to prevent delays. The
status of the loan is reported in the Monthly Operational Summary. If the legal agreements are
not signed six months after loan approval, the Region includes the loan in its Table on Signing
Date Delays17
in the Report to the Executive Directors on Bank and IDA Operations. The loan
remains in this table until it is signed or withdrawn. If the borrower does not meet the
requirements for signing before the 18-month deadline from the date of loan approval, the RVP
decides whether to (a) give the borrower additional time to sign (see para. 19), or (b) withdraw
the loan (see OP 13.00, para. 4). If the loan is withdrawn, the Board is informed through the
Monthly Operational Summary.
Effectiveness
15. If the conditions of effectiveness are not likely to be met by the original date specified in
the legal agreement, the TTL reminds the borrower that the legal agreements will terminate on
that date unless the borrower requests an extension of the deadline. If the borrower makes such a
request, the Bank considers the reasons for the delay and may establish a later effectiveness
deadline within the overall 18-month deadline. In exceptional circumstances, the country
director may, without a formal request from the borrower, authorize an extension within the
overall 18-month deadline.
16. The TTL prepares, clears with the lawyer, and submits to the country director for
signature a notice of extension of the deadline for effectiveness, together with a memorandum
describing the status of compliance and the reasons for the extension. These documents are
cleared by the lawyer and copied to the finance officer.18, 19
17. Dated Covenants. When the effectiveness deadline is extended, the Bank requires the
borrower, guarantor, and other project implementation entities to fulfill dated covenants whose
dates fall before the new effectiveness deadline. These covenants thus become conditions of
effectiveness, and the Bank may delay the issuance of the notice of effectiveness until these
covenants are complied with.20, 21
17 The table provides the name of the country, name of the project, Bank approval date, expected date of signing, and
comments. 18 See OPCS Templates. 19 For GEF grants to which BP 13.00 applies, the memorandum is copied to the Regional GEF Coordinator and ACTTF. 20 See Section 12.03 (b) of the relevant General Conditions. 21 See BP 13.05, Project Supervision, for rationale and procedures for amendments and waivers.
BP 13.00
February 2002
Page 5 of 6
(Revised November 2011)
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subject.
Board Notification
18. The Region reports extensions of the effectiveness deadline, including any exceptional
extensions or reinstatement of the agreement(s) as provided in paras.19 and 20, in the Report to
the Executive Directors on Bank and IDA Operations. If the legal agreement does not become
effective within nine months after Board approval, the Region includes the loan in its Table on
Effectiveness Date Delays in the Report to the Executive Directors on Bank and IDA
Operations. For legal agreements that terminate for failure to become effective, the table
indicates the date on which the legal agreements terminated.
Exceptional Extensions of the Signing and/or Effectiveness Deadline
19. In exceptional circumstances, a country department may wish to extend the deadline for
signing or effectiveness beyond the 18-month deadline. Before the end of the overall 18-month
period, the country director submits to the RVP for approval a memorandum, cleared with the
lawyer, proposing a final deadline for signing and/or effectiveness.22
The memorandum
(a) indicates that the borrower is still interested in proceeding with the project; (b) reviews
whether the underlying assumptions under which the loan was approved have changed
materially; and (c) details any changes that will be required to ensure the project's viability and
states when these changes will be made.
20. Exceptional Reinstatement of Terminated Agreements. Since the legal agreement(s)
terminate if no legal action is taken by the effectiveness deadline specified in them, any action by
the Bank to extend the effectiveness deadline or to declare the legal agreement(s) effective must
be taken no later than the close of business on the last business day before the deadline expires.
If the legal agreement(s) have terminated for failure to become effective by the effectiveness
deadline, the Bank may, in exceptional circumstances and in keeping with the overall 18-month
deadline (except as provided in paragraph 19), agree to reinstate the terminated legal
agreement(s). The exception is approved by the VP, OPCS, in consultation with the VP and
General Counsel, LEGVP, upon a memorandum from the RVP, cleared with the lawyer,
explaining the reasons for the delay in declaring effectiveness or extending the effectiveness
deadline before its expiration, and justifying an exceptional reinstatement of the terminated
agreement(s). The lawyer advises on the documentation and procedure for reinstating the
terminated legal agreement(s).
Changes in Conditions Prior to Signing or Effectiveness
21. If an extension of time for signing or effectiveness involves a substantial departure from
the conditions under which the loan was originally approved, the legal agreement is not signed or
declared effective until Bank approval of the new conditions is obtained.23
Following approval,
22 For GEF grants to which BP 13.00 applies, the memorandum is cleared by the Regional GEF Coordinator. 23 See BP 13.05, Project Supervision, when changes to a project require Board approval.
BP 13.00
February 2002
Page 6 of 6
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
the legal agreements are amended, as necessary, to reflect the new agreement with the borrower,
guarantor, and other parties involved.
OP 13.55
July 1999
Page 1 of 1
(Revised November 2011)
These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
OP and BP 13.55 replace the OP and BP 13.55 dated April 1994, They were revised in August 2005 to limit their
application to investment lending, updated in March 2007 to reflect issuance of OP/BP 8.00, Rapid Response to
Crises and Emergencies, and updated in November 2011 to reflect the provisions of Review of Operational Policy
Waivers (R-2011-0184), July 26, 2011. They apply to all investment loans that have a closing date after June 30,
1999. Questions may be addressed to [email protected].
Implementation Completion Reporting
1. The Bank1 evaluates completed lending operations, and it encourages cofinanciers and other
partners to participate in the process. The General Conditions provide that the borrower also evaluates
completed lending operations and reports its findings to the Bank.2
2. The Bank prepares an Implementation Completion Report (ICR) for each lending operation it
finances. The ICR, an integral part of the Bank's knowledge management systems, is a milestone in the
project cycle. It is prepared at the time of project completion, normally within 6 months after the loan
closing date unless this deadline is extended in accordance with Bank procedures.3 The ICR assesses
(a) the degree to which the project achieved its development objective and outputs as set out in the project
documents; (b) other significant outcomes and impacts; (c) prospects for the project's sustainability; and
(d) Bank and borrower performance, including compliance with relevant Bank safeguard and business
policies. It also provides the data and analysis to substantiate these assessments, and it identifies the
lessons learned from implementation.
3. The borrower prepares and provides to the Bank its own evaluation report on the project's
execution and initial operation, its cost, the benefits to be derived from the operation, the Bank's and
borrower's performance of their obligations under the Loan Agreement, and the extent to which the
purposes of the loan were achieved.4 The borrower's summary of this report (or the full report, if it is 10
pages or less) is attached unedited to the ICR. The borrower also assists the Bank in the preparation of
the ICR.5
4. An ICR is not prepared for a loan that fails to become effective or is canceled before significant
implementation is initiated. Instead, a Project Completion Note to the Board summarizes the project and
explains why it was not implemented.
1 "Bank" includes IBRD and IDA; "loans" includes IDA credits and IDA grants; "borrowers" includes guarantors and public
or private subborrowers; and "project" refers to activities supported by investment loans processed under OP/BP 10.00 or
emergency operations processed under OP/BP 8.00. This OP does not apply to programs supported by development policy
loans, for which implementation completion reporting requirements are set out in OP/BP 8.60. 2 See Section 5.08 (c), IBRD General Conditions for Loans, and Section 4.08 (c), IDA General Conditions for Credits and
Grants. 3 See BP 13.55. 4 The report is normally due within 6 months after the loan closing date, as provided in the General Conditions, unless the
deadline is extended in accordance with BP 13.55. 5 If the borrower does not provide its evaluation report or summary to the Bank within six months after a written request, the
ICR may be distributed to the Executive Directors without it.
BP 13.55
July 1999
Page 1 of 3
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
OP and BP 13.55 replace the OP and BP 13.55 dated April 1994. They were revised in August 2005 to limit their
application to investment lending, updated in March 2007 to reflect issuance of OP/BP 8.00, Rapid Response to Crises
and Emergencies, and updated in November 2011 to reflect the provisions of Review of Operational Policy Waivers
(R2011-0184), July 26, 2011. They apply to all investment loans that have a closing date after June 30,
1999. Questions may be addressed to [email protected].
Implementation Completion Reporting
Planning
1. Each Region develops an annual schedule of project1 completions and Implementation
Completion Reports (ICRs). By the end of each fiscal year, it informs the Independent
Evaluation Group (IEG) of intended ICR delivery dates for the coming year.
2. For all projects the Region plans a core accountability ICR. In addition, after consulting
with Network anchors, IEG, and borrowers, the Region selects about 30 percent of its projects
for which the analysis and processing of the core accountability ICR are to be enhanced. This
enhanced ICR is called an intensive learning ICR.2 Projects selected for an intensive learning
ICR are those that have the greatest learning potential when viewed from a wider institutional
perspective. Intensive learning ICRs cover the same areas as core accountability ICRs, but they
involve more extensive analysis and text, focusing especially on lessons learned, and substantial
consultation with stakeholders and beneficiaries. Thus intensive learning ICRs also help
disseminate project results for application to new operations.
3. The ICR is prepared at the time of project completion and is normally completed within six
months after the loan closing date.3 Extensions to this period may be exceptionally granted by
the RVP upon a written request from the country director justifying the extension. The RVP can
formally assign the approval of ICR extensions to the Operations Services Director or Strategy
Director by explicit written delegation of authority. OPCS informs the Executive Directors of
any extensions granted that are longer than six months from the original due date.
1 "Bank" includes IBRD and IDA; "loans" includes IDA credits and IDA grants; "borrowers" includes guarantors and public
or private subborrowers; and "project" refers to activities supported by investment loans processed under OP/BP 10.00 or
emergency operations or under OP/BP 8.00, Rapid Response to Crises and Emergencies. This BP 13.55 does not apply
to programs supported by development policy loans, for which implementation completion reporting requirements are set
out in OP/BP 8.60. 2 Guidance on preparing ICRs is available at ICR Guidelines. Staff preparing an ICR use the ICR database in the SAP
system. 3 For adaptable program lending (adaptable program loans and learning and innovation loans), in particular, it is important to
complete the ICR as rapidly as possible to identify lessons of experience that should be incorporated in later activities under
the program. In general, the ICR is prepared six months before the final disbursement.
BP 13.55
July 1999
Page 2 of 3
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
ICR Preparation
4. The sector manager or team leader (TTL) selects the ICR task team (TT). For an intensive
learning ICR, the TT includes a member of the relevant thematic group from another Region. In
addition, a representative from IEG may carry out a parallel audit to validate the process and
findings.
5. The TTL prepares the ICR terms of reference (TOR), which include, inter alia, provision of
advice and support to the borrower in preparing its own contribution to the ICR.
6. The TT advises the borrower and the implementing agency about completion reporting,
requesting the borrower's contribution in writing, and about any ICR data requirements. The TT
provides a copy of the TOR to the borrower, the implementing agency, and any cofinanciers, and
invites the cofinanciers to participate in the ICR.4
7. The TT holds discussions with the borrower, the implementing agency, and beneficiaries,
and consults broadly with other stakeholders, as needed. For an intensive learning ICR, the TT
and borrower staff make arrangements, as appropriate, for a beneficiary survey and participate in
the stakeholder workshop.
8. In preparing the ICR, the TT records the views of the Bank, borrower, implementing
agency, and cofinanciers on project implementation and confirms that it has provided advice and
support to the borrower in preparing its own contribution to the ICR. For an intensive learning
ICR, the ICR incorporates the results of any beneficiary survey and the discussion at the
workshop, including the views of NGOs and other stakeholders.
ICR Clearance and Distribution
9. The TTL transmits the draft ICR to the borrower and cofinanciers for comment. The TT
incorporates these comments, as appropriate, in the ICR.
10. Once the borrower's evaluation of project implementation is received, the TTL attaches
the borrower's summary (or the full text if it is 10 pages or less) to the ICR5 and seeks Regional
comments and clearance according to Regional procedures. The project lawyer reviews any
references to (a) compliance with legal covenants and the exercise of legal remedies; (b) the
performance of specific consultants, suppliers, contractors, or individual Bank staff; and (c) other
legal issues.
4 If a cofinancier does not provide its views within six months following a written request, the ICR may be distributed to the
Executive Directors without those views. 5 In exceptional circumstances, if the borrower's report is longer than 10 pages and the borrower does not provide a summary,
the TT prepares one. If the borrower does not provide its evaluation report or summary to the Bank within six months after
a written request, the ICR may be distributed to the Executive Directors without it.
BP 13.55
July 1999
Page 3 of 3
(Revised November 2011)
These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the
subject.
11. Promptly upon completion of the ICR as provided in para. 3 above, the TT arranges for
printing and distribution of the ICR to the Executive Directors for information. The TT transmits
a copy of the ICR to the borrower, implementing agency, and cofinanciers.
Evaluative Note
12. For each ICR, IEG prepares an evaluative note and circulates it to Regional management
for comment.