Memorandum to Executive Directors - Eligibility Criteria for Transfer-Out from World Bank Trust Funds - June 4, 2024

Jul 19, 2026

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Memorandum to Executive Directors covering the revised eligibility criteria governing which entities may receive Transfer-Out (TO) from World Bank Trust Funds. The paper explains the policy update context, noting the World Bank TF Policy principles and criteria were last updated in January 2021, and seeks Executive Directors’ approval for changes described in paragraph 15. It outlines rationale for expanding eligible entities, while addressing associated risks through mitigating controls, supporting partnership impact and reducing aid fragmentation.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages13

Reading Time33 min

Table of Contents

I. Background and Rationale

II. Introduction

III. Change to the Eligibility Criteria for TO

IV. Recommendation

Public Disclosure Authorized Public Disclosure Authorized Ajay Banga June 4, 2024 President MEMORANDUM TO EXECUTIVE DIRECTORS Eligibility Criteria for Transfer-Out from World Bank Trust Funds The World Bank’s TF Policy setting out high-level principles and criteria for trust funds including the selection criteria for entities to receive Transfer-Out (TO) was last updated in January 2021. The attached proposal seeks the approval of the Executive Directors to the revised eligibility criteria for selecting the entities that may receive TOs from World Bank Trust Funds. Recommendation. I recommend that the Executive Directors approve the revised criteria for managing TOs outlined in paragraph 15 as described in this Board paper. Ajay Banga President by Anshula Kant Managing Director and Chief Financial Officer Document of The World Bank FOR OFFICIAL USE ONLY Eligibility Criteria for Transfer-Out from World Bank Trust Funds June 4, 2024 Development Finance Vice Presidency, Trust Funds and Partner Relations Department (DFTPR) This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Acronyms and Abbreviations AA Administration Agreement DPs Development Partners FCV Fragility, Conflict & Violence FIF Financial Intermediary Fund IBRD International Bank for Reconstruction and Development IDA International Development Association IE Implementing Entity IFC International Finance Corporation IFI International Financial Institution MDB Multilateral Development Bank MDTFs Multi-Donor Trust Funds TFs Trust Funds MIGA Multilateral Investment Guarantee Agency TO Transfer-Out UN United Nations World Bank IBRD and IDA WBG World Bank Group WB TF World Bank Trust Fund TABLE OF CONTENTS I. Background and Rationale ................................................................................................... 1 II. Introduction ........................................................................................................................... 1 III. Change to the Eligibility Criteria for TO............................................................................ 3 IV. Recommendation ................................................................................................................... 5 I. BACKGROUND AND RATIONALE 1. The World Bank is strengthening its collaboration and partnerships with the rest of the international development community as part ofits efforts to become a better and bigger bank and recognizes that no one country or institution alone can address today’s formidable development challenges. The World Bank aims therefore to leverage the comparative advantages of its partners for the greatest impact while respecting the diverse roles of these development institutions. Multilateral Development Banks (MDBs) and UN Agencies are important partners for the World Bank, and together, these entities have the potential for higher volumes of financing and stronger impact. Through TransferOut or TO, World Bank Trust Funds (TFs) transfer funds to a select few MDBs and UN Agencies toward the achievement ofthe TF objective. As part of the efforts to strengthen partnerships, Management sees a need – and an opportunity – to expand the list of entities that are eligible for TO. This paper proposes to broaden the eligibility criteria for selecting the entities that may receive TOs from WB TFs, taking into account the associated risks and mitigating controls. In line with the simplification agenda and responding to concerns on the fragmentation of the aid architecture, this will also broaden the scope for limiting the establishment of Financial Intermediary Funds (FIFs), a more complex and costly mechanism. II. INTRODUCTION 2. Trust funds (TFs) are an important source of development finance that helps

FAQs

What is the purpose of the memorandum to the Executive Directors?

To request approval of revised eligibility criteria for selecting entities that may receive Transfer-Out (TO) from World Bank Trust Funds.

Why are the eligibility criteria being revised?

Management seeks to expand the list of eligible entities to strengthen partnerships and address concerns about aid fragmentation, while considering risks and mitigation controls.

How do Trust Funds Transfer-Out activities work in this context?

Transfer-Out transfers trust funds to a select few Multilateral Development Banks (MDBs) and UN Agencies toward the Trust Funds’ objective.

Jul 19, 2026

Upload by Liam