The world bank monthly operational summary

Water, Sanitation and Flood Protection

(R) Fourth OSE Modernization and Systems Rehabilitation

Adaptable Program Loan: The objective is to finance the construc-

tion of wastewater treatment plants in Salto and Paysandu, two cities

located on the cross-border Rio Uruguay. Project Concept Review

Meeting scheduled for 1 February 2011. Environmental Assessment

Category A. US$ 20.0 (IBRD). Consultants will be required. Imple-

menting agency(ies) to be determined.

PAGE 80

Monthly Operational Summary

NOVEMBER 2010

Guarantee Operations 

In September 1994, the Bank’s Executive Directors approved a proposal

to make guarantees a mainstream instrument of Bank operations.

These guarantees are most likely to be used for infrastructure fi-

nancing, where the demands for funding are large, political and sov-

ereign risks are significant, and the need for long-maturity financing

is often critical to a project’s viability.

By covering some of the risks that the market is not able to bear or

adequately evaluate, the Bank’s guarantee can attract new sources of

finance, reduce financing costs, and extend maturities. The guarantee

can be especially valuable where activities traditionally undertaken

and financed by the government are being shifted to the private sec-

tor but where the government remains as a regulator or provider of

inputs and a buyer of outputs. The Bank’s participation as guarantor

can also facilitate the transparency of these transactions.

Since the guarantee is intended to be a catalytic instrument, the Bank

offers only partial guarantees, and risks are clearly shared between the

Bank and private lenders. The Bank’s objective is to cover risks that

it is well-positioned to bear given its credit, its experience with devel-

oping countries, and its special relationships with governments. The

risk-sharing may be for specific risks (the partial risk guarantee) or

for part of the financing (the partial credit guarantee).

A partial risk guarantee covers risks arising from nonperformance of

sovereign contractual obligations or from force majeure aspects in a

project. A partial credit guarantee typically extends maturities beyond

what private creditors could otherwise provide, for example, by guar-

anteeing late-dated repayments or by providing incentives for lenders

to roll over medium-term loans.

For more information on the Bank’s guarantee program and to obtain

a copy of the pamphlet “The World Bank Guarantees: Leveraging Pri-

vate Finance for Emerging Markets” (available in English, French, Por-

tuguese and Spanish), please contact the Finance Economics and

Urban Department (FEU) Tel: [phone]; Fax: [phone], or

visit www.worldbank.org/guarantees.

Cameroon

Energy and Mining

Kribi Gas Power IPP: (Private Sector) The objective is the devel-

opment and implementation of a216 MW gas-fired power plant located

in the Mbolongwe village, 9 km north of the coastal city of Kribi in the

southern province of Cameroon. The primary objective is to increase

the capacity and reliability electricity supply in Cameroon through the

implementation of the 216 MW Kribi gas power generation project to

create a solid base for growth and poverty reduction in Cameroon. An

IDA PRG of about US$ 80 million is being considered in support of the

project. Board presentation is tentatively scheduled for mid-FY11.

Kenya

Transport

Nairobi Urban Toll Road: (Private Sector) The objective is to im-

prove traffic efficiency along the Northern Corridor in Kenya by en-

abling private investment within a toll road concession along the most

congested urban sections of the Uhuru Highway. Up to US$ 320.0 in

guarantees from IDA (PRG) and MIGA (PRI) is currently being con-

sidered in support of the concession. Board presentation tentatively

scheduled for mid-FY11.

KPLC IPP Program: (Private Sector) The objective is to facilitate the

construction of generation capacity in Kenya via private investment in

IPPs. IDA PRGs in amounts up to US$200 million are being consid-

ered in support of one or more IPPs currently in development. Board

presentation tentatively scheduled for mid-FY11.

Nigeria

Energy and Mining

Energy and Gas Infrastructure: (Private Sector) The objective is

to strengthen the value chain for power generation by ending the bot-

tlenecks in the supply chain for power generation-previously a funda-

mental constraint to economic growth in the country. The guarantees

will support the Power Holding Company of Nigeria's gas supply pay-

ment obligations to international and domestic oil companies which

will help mobilize gas supplies for power generation. The PRGs would

help to assist the Government in putting in place an appropriate frame-

work for IPPs as well as the extent of Government support to be pro-

vided through the PRGs. IDA PRGs of US$ 400.0 were approved for

the first phase of the project . Approved by the Executive Directors on

16 June 2009. Signing to be scheduled.

Worldwide

Regional

Agriculture, Fishing, and Forestry

Development Marketplace 2009-GEF: The objective is to help

identify and provide grant funding to support innovative projects. GEF

CEO Endorsement was completed on 22 December 2009. Environ-

mental Assessment Category U. US$ 1.0/2.0/2.7/1.1 (GDEN/GEFU/

GFDR/IFAD). No consultants are required. Various Organizations, Con-

tact: Maurice Bouesso, Coordinator

Threatened Species Partnership - Save Your Logo-GEF: The ob-

jective is to provide grant funding through IUCN for projects associ-

ated with conservation of globally threatened species. It is expected

that cofunding will be leveraged from the Bank and from private sec-

tor partners, through the Save Your Logo campaign, to replenish the

funding mechanism. GEF CEO Endorsement scheduled for mid-Sep-

tember 2010. Environmental Assessment Category B. Project: P115564.

US$ 4.9 (GEFU). No consultants are required. Contact: Elvin Rusta-

mov, PIU Director

Transportation

Second Strategic Action Plan for Red Sea and Gulf of Aden: The

objective is to conserve and promote the sustainable exploitation of the

marine resources of the Red Sea and Gulf of Aden and improve the

socio-economic benefits to the 50 million people of the region. Project

Concept Review Meeting scheduled for 15 December 2011. Environ-

mental Assessment Category C. US$ 3.0/2.0 (GEFU/ZPCI). Consul-

tants will be required. PERSGA, The Regional Organization for the

Conservation of Environment of the, PO Box 53662, Jeddah 21583, Saudi

Arabia, Tel: [phone], Fax: [phone], Contact: Mo-

hammed Badran

Water, Sanitation and Flood Protection

(R) Sustainable Governance and Knowledge Generation: The ob-

jective is to secure and enhance the delivery and impacts of the new

MNA/GEF Mediterranean Partnership Initiative "Sustainable MED"

and to put in place "sustainability elements" for an improved governance

of freshwater, coastal and marine resources at the regional Mediter-

ranean level and at the country level. Decision Meeting scheduled for 1

February 2011. Environmental Assessment Categor y C. US$ 3.0

(GEFU). Consulting services and implementing agency(ies) to be de-

termined.

NOVEMBER 2010 

Monthly Operational Summary  

PAGE 81

LIST OF ACRONYMS

AUSAID 

Australian Agency for International 

Development

ADB 

Asian Development Bank

ADF 

African Development Fund

AfDB 

African Development Bank

APL 

Adaptable Program Loan

BADEA 

Banque Arabe de Développement Économique 

en Afrique

BOAD 

Banque Ouest Africaine de Développement

CDB 

Caribbean Development Bank

CFD 

Caisse Française de Développement

CIDA 

Canadian International Development Agency

DANIDA 

Danish International Development Agency

DFID 

Department for International Development 

(UK)

EBRD 

European Bank for Reconstruction and Devel-

opment

EDF 

European Development Fund

EIB 

European Investment Bank

EU European 

Union

FAC 

Fonds d’Aide et de Coopération (France)

FAO 

Food and Agricultural Organization of the 

United Nations

FAO/CP 

FAO Cooperative Program (with the World 

Bank)

FINNIDA  Finland International Development Agency

GEF 

Global Environment Facility

GTZ 

Deutsche Gesellschaft für Technische Zusam-

menarbeit

IAPSO 

Inter-Agency Procurement ServiceOffi ce

IBRD 

International Bank for Reconstruction and 

Development

ICB 

International Competitive Bidding

IDA International 

Development 

Association

IDB 

Inter-American Development Bank

IFAD 

International Fund for Agricultural 

Development

IsDB 

Islamic Development Bank

JBIC 

Japan Bank for International Cooperation

ITF Interim 

Trust 

Fund

KfW 

Kreditanstalt für Wiederaufbau (Germany)

LIL 

Learning and Innovation Loan

NCB 

National Competitive Bidding

NGO Nongovernmental 

Organization

NORAD 

Norwegian Agency for Development 

Cooperation

OECF 

Overseas Economic Cooperation Fund (Japan)

OPEC 

Organization of Petroleum Exporting Countries

PAD Project 

Appraisal 

Document 

PCD 

Project Concept Document 

PCF 

Prototype Carbon Fund 

PCN 

Project Concept Note 

PHRD 

Policy and Human Resources Development 

(Japan)

PID Project 

Identifi cation (Number)

PPF 

Project Preparation Facility

QCBS 

Quality and Cost-Based Selection 

SDC 

Swiss Agency for Development Cooperation

SIDA 

Swedish International Development Authority

UNDP 

United Nations Development Programme

UNFPA 

United Nations Population Fund

UNICEF 

United Nations Children’s Fund

USAID 

United States Agency for International 

Development

WHO 

World Health Organization