Project Cycle Basics Introduction to the World Bank Operations

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Project Cycle Basics - Introduction to the
World Bank Operations

• December 25, 2007
• for Intl Org Studies at Tokyo Univ. of Foreign
  StudiesYasuo IZUMI

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Agenda

• Project Cycle at a Glance
• Project Cycle Key Steps
• Key Dates
• Key Documents

• Project Cycle Key Steps
• PRSP / CAS
• Identification
• Preparation
• Appraisal
• Nego / Board Approval
• Implementation
• Completion
• Evaluation

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Project Cycle at a Glance
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Step 1 PRSP / CAS

• Poverty Reduction Strategy Paper (PRSP) at Low
  Income Countries ( IDA Countries)
• Prepared by Countries
• Covering 3-5 year period
• Shared among Donor Agencies
• Country Assistance Strategy (CAS)
• Blue Print for the Bank Operations
• Covering 2-3 year period
• Extensive Consultations with Stakeholders

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Step 2 Identification

• Bank Team Identifies Projects Indicated in CAS
  with Governments
• Bank Team Prepares a Project Concept Note (PCN)
  
• Outlines the Basic Concepts of the Project
  including Objectives, Risks, Team, Budget,
  Timeline
• Presented to and Cleared by Country Director
• 4-5 Page Internal Document
• Project Information Document, andIntegrated
  Safeguards Data Sheetare also Produced

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Step 3 Preparation

• Country Side Process to Prepare Projects
• Policy Orientation, and Institutional, Technical,
  Financial, and Environmental Issues are Examined
• With Assistance from the Bank Team
• Environmental Assessment Report and Indigenous
  Peoples Development Plan are Drafted if Necessary

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Step 4-1 Appraisal

• Quality Enhancement Review
• After PCN Clearance, Bank Team Receives
  Assistance from Quality Assurance Group (QAG) to
  Enhance Quality
• QAG is an Independent Group of the Bank
  Consisting of Senior and Seasoned Specialists to
  Assist Bank Teams.
• Quality at Entry, Quality of Supervision are
  also Offered to Bank Teams

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Step 4-2 Appraisal

• Bank Team Reviews and Prepares Project Documents
• Project Appraisal Document (PAD) for Investment
  Lendings
• Program Document (PD) for Policy Lendings
• 40-60 Pages of Main Text with Annexes
• Regional Operations Committee (ROC) or
  Operations Committee (OC) Reviews and Clears
  Project Proposals

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Step 5-1 Negotiation

• Government Representatives are Invited to
  Finalize the Loan Documentation
• Takes Place in Washington DC, in General
• Lasts for about a Week
• Legal Documents are Prepared and Finalized
• Upon Successful Negotiation, a Package ofProject
  Documents are Sent to the Board of Directors

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Step 5-2 Board Approval

• Executive Directors Reviews and Approves the
  Proposed Loan / Credit at the Board Meeting
• Government Representatives are also Invited
• Relevant VP, CD and Senior Staff Members Attend
• EDs are Invited to Make Comments and Cast their
  Vote
• Upon Board Approval the Loan / Credit
  Agreement is Signed
• After Conditions Precedents areFulfilled, it
  Becomes Effective

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Step 6 Implementation

• Implementation of the Project
• Borrowing Government to Prepare and Execute
  Project
• Proceeds Procurement, Set up Financial Management
  System
• Bank Team Supervises the Project and Assist the
  Borrower
• Bank Team Conducts Supervision Missions at least
  Twice a Year
• Prepares Project Status Report (PSR), with
  Aide Memoire

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Step 7 Completion

• Project Period varies by Type of Lending
• 1-3 Years for Policy Lending
• Up to 10 Years for Investment Lending
• Completion means the End of Disbursement of
  Loans / Credits
• An Implementation Completion Report (ICR)is
  Prepared by the Bank Team and Presented to the
  Board

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Step 8 Evaluation

• Integrated Evaluation Group (IEG) Conducts an
  Audit to Measure Projects Outcome against the
  Original Objectives
• IEG Publishes
• Annual Review of Development Effectiveness
• Project Evaluation
• Country Evaluation
• Sector Evaluation .

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Key Dates

• PCN Review
• ROC / OC Review
• Negotiation
• Board Approval
• Loan Agreement Signing
• Loan Effectiveness
• Implementation Completion / Closing
• ICR Submission

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Key Documents

• Project Concept Note (PCN) - Internal
• Project Information Document (PID)
• Project Appraisal Document (PAD)
• Program Document (PD)
• Loan Agreement (LA) Confidential
• Project Status Report (PSR) Internal
• Implementation Completion Report (ICR)

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End of Presentation

• Yasuo IZUMI
• Yasuo_Izumi_at_hotmail.com
• Deputy Team Leader, UGM Hi-Link Project, JICA
  Expert Team
• Advisor, Sr. Consultant, PSD/FSD Human Capital
  Devt IC Net
• Visiting Professor, Kobe University, GSICS
• Former Sector Manager, The World Bank, PSD/FSD,
  ECA