IDA20 - Allowing the Use of Program-for-Results Financing by IDA’s Regional Window - Policy framework revision starting in IDA20

Jul 19, 2026

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Management requests revising the IDA’s Regional Window (RW) policy framework to allow the use of Program-for-Results (PforR) financing starting in IDA20. The note explains why the RW framework should align with other IDA windows through neutral treatment of eligible financing instruments. It provides background on RW’s role in accelerating regional integration, summarizes demand and portfolio patterns, and argues that current ineligibility of PforR discourages task teams from using the most suitable instrument. The proposal is supported by discussions with IDA Participants and Board decisions on related cases.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages6

Reading Time15 min

AccessFree to download

Introduction

Background

Rationale

Proposal for Approval

Public Disclosure Authorized Public Disclosure Authorized IDA20 ALLOWING THE USE OF PROGRAM-FOR-RESULTS FINANCING BY IDA’S REGIONAL WINDOW Development Finance, Corporate IDA & IBRD (DFCII) December 22, 2022 ACRONYMS AND ABBREVIATIONS Fiscal Year (FY) = July 1 to June 30 All dollar amounts are US dollars DPF Development Policy Financing IDA International Development Association IPF Investment Project Financing PBA Performance-Based Allocation PforR Program for Results RW Regional Window TABLE OF CONTENTS I. INTRODUCTION................................................................................................................ 1 II. BACKGROUND .................................................................................................................. 1 III. RATIONALE ....................................................................................................................... 2 IV. PROPOSAL FOR APPROVAL ......................................................................................... 3 TABLE OF FIGURES Figure 1. Share of Regional IDA Commitment for RW Projects with GPG Focus from FY16 to FY21 ......................................................................................................... 1 I. INTRODUCTION 1. Management requests a revision of the policy framework for IDA’s Regional Window (RW) to allow for the use of the Program-for-Results (PforR) financing instrument starting in IDA20. The proposed revision will align the policy framework of the RW with those of the other IDA windows in their neutral treatment of financing instruments. Currently, the RW policy framework defines Investment Project Financing (IPF) and Development Policy Financing (DPF) as eligible for RW financing, while the PforR instrument is ineligible. This note presents the background, rationale, and proposed revision. This proposed revision was discussed and endorsed by IDA Participants at the October 2022 IDA Day. II. BACKGROUND 2. The RW was introduced in IDA13 to accelerate regional integration by letting countries leverage Performance-Based Allocations (PBA) for activities expected to generate positive outcomes with impacts across national borders. Since then, the RW has grown faster than the overall IDA envelope, illustrating consistent and high demand from IDA countries for regional integration investments, as well as sustained donor interest. In IDA19, the RW amounted to $7.6 billion and in IDA20 to $7.9 billion, making up between eight and nine percent of the full IDA envelope. 3. At its IDA13 launch, the RW financed investment lending largely for regional infrastructure and connectivity. During subsequent IDA cycles, operations that supported regional or global public goods, by for instance protecting or developing shared natural resources, environmental commons, and public health with cross-border impacts, while addressing regional and global issues such as climate change and communicable disease, grew steadily as a share of the RW portfolio. (See Figure 1) . Of RW-financed commitments for public goods, 37 percent contributed to regional knowledge and research capacities, 32 percent to regional public health, 18 percent to climate change and environmental preservation, 12 percent to regional financial architecture, and two percent to regional trade. Figure 1. Share of Regional IDA Commitment for RW Projects with GPG Focus from FY16 to FY21 +33% FY16 FY17 FY18 FY19 FY20 FY21 Source: World Bank staff calculations 4. Some of these interventions are better suited for financing by instruments other than IPFs. The preparation of a regional DPF in West Africa (the West Africa Regional Energy Trade Program, $300 million IDA of which $150 million from the RW) prompted the approval by IDA Executive Directors, following the endorsement by IDA Deputies, of a revision to the RW’s policy framework to make DPFs eligible for financing under the RW starting in IDA19 . T

FAQs

How has the RW performed since its introduction, and what kinds of projects does it finance?

Introduced in IDA13 to accelerate regional integration, the RW has grown faster than the overall IDA envelope due to consistent demand and donor interest. It initially focused on regional infrastructure and connectivity, and later increased support for regional or global public goods with cross-border impacts, including public health, climate-related work, and shared resources.

Jul 19, 2026

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