World Bank approves new innovative financing instrument for countries

The World Bank Board of Executive Directors on January 24, 2012 approved the Program-for-Results (PforR), an innovative new financing instrument for countries. It  links the disbursement of funds directly to the delivery of defined results.

Money will flow once the results have been delivered and verified, according to the Washington-based lender.

“Key assessments – fiduciary, environmental & social – of program systems are an important feature of this new instrument and will help provide assurance that Bank financing is used appropriately and that the environmental and social impacts of the program are adequately addressed. These assessments will all be publicly disclosed,” it said in a statement.

“Enhancing development effectiveness by helping developing countries achieve results is central to the mission of World Bank.Program-for-Results financing demands greater accountability from partner countries and in turn will help these countries continue to deliver sustainable results long after the Bank’s involvement has ended. The time is right for this innovative development approach,” said Robert B. Zoellick, President of the World Bank Group.

By Ekow Quandzie