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World Bank to cut lengthy process of releasing funds for projects in member states
World Bank President Ajay Banga. PHOTO/FILE/AFP
What you need to know:
- Mr Banga explained to a fully packed plenary meeting that this is important progress but there’s more the World Bank can do and are developing a plan to better support governments with implementation.
The World Bank has pledged that it will be cutting the current lengthy process of accessing funds for projects it funds in all its member states to meet the needs of citizens.
Addressing the annual meetings of the World Bank/International Monetary Fund on October 13 at Marrakech Morocco, the World Bank Group President Ajay Banga said currently, a World Bank project takes 27 months – on average – before a single dollar gets out of the door. This is followed by a lengthy implementation process and project construction.
“Too often it’s longer than 10 years before the first benefits are felt. That is a lifetime. We must do better. And there is precious time we can save. We have the entire process in our crosshairs, initially working to dramatically reduce the project review and approval time by a third. But with ambition to do more,” he said.
Mr Banga explained to a fully packed plenary meeting that this is important progress but there’s more the World Bank can do and are developing a plan to better support governments with implementation.
“If we can build technical assistance into our projects from the start and help countries develop capacity – we can give time back. Not only are we streamlining our approach and encouraging our teams to work faster – we are exploring ways to incentivize speed and collaboration throughout the World Bank,” he said.
The organizations that make up the World Bank Group are owned by the governments of member nations, which have the ultimate decision-making power within the organizations on all matters, including policy, financial or membership issues.
Currently, there are 189 countries who are members of the World Bank and a total of 75 countries inclusive of Uganda are currently eligible to receive International Development Association (IDA) resources, a window of the World Bank that provides interest free loans with repayment lasting up to 40 years.
“We’re exploring maturities of 35 to 40 years to help countries navigate longer term horizons for social and human capital investments,” Mr Banga said.
