In 2012, the World Bank introduced a new lending instrument, Program-for Results (PforR). PforR supports government programs and links the disbursement of funds directly to the delivery of defined results with a special focus on strengthening institutions. With PforR, disbursements are linked to the achievement of tangible and verifiable results. The focus is on results as well as on how the results are achieved. PforR provides assurance that Bank financing is used appropriately and that the environmental and social impacts of the program are adequately addressed.
World Bank's Project Cycle
The project cycle is the framework used by the World Bank to design, prepare, implement, and supervise projects. In practice, the World Bank and the borrowing country work closely throughout the project cycle, although they have different roles and responsibilities. Generally, the duration of the project cycle is long by commercial standards. It is not uncommon for a project to last more than four years, from the time it is identified until the time it is completed. The World Bank project cycle includes six stages: identification, preparation, appraisal, negotiation/approval, implementation, and evaluation.
IFC's Project Cycle
The project cycle illustrates the stages a business investment goes through as it becomes an IFC-financed project. There is no standard application form for IFC financing. A company or entrepreneur, foreign or domestic, seeking to establish a new venture or expand an existing enterprise can approach IFC directly. This is best done by reading how to apply for financing and by submitting an investment proposal. Stages of the IFC project cycle include business development, early review, appraisal (due diligence), investment review, negotiations, public notification, board review and approval, commitment, disbursement of funds, project supervision and development outcome tracking, evaluation, and closing.
MIGA's Project Cycle
MIGAs underwriting process begins when a client submits a preliminary application. The application is free, confidential, and short, and can be done online. On receipt of an application, MIGA will assign an underwriter to review it to determine whether the project meets eligibility criteria. MIGA will then contact the client to discuss the project.
At this point, the underwriter discusses preliminary pricing with the client, the potential size of the guarantee, and the MIGA covers that are most appropriate for the investment. MIGA also works with the client to identify environmental and social impact assessments that must be undertaken.