World Bank to Expedite Fund Release Process for Member State Projects
Monday, October 16, 2023
The World Bank has pledged to streamline the time-consuming process of disbursing funds for its projects in all member states. Addressing the annual meetings of the World Bank/International Monetary Fund, World Bank Group President Ajay Banga revealed that the current average duration for a World Bank project to receive its initial funding is 27 months, followed by lengthy implementation and construction phases.
Mr. Banga expressed the need for expeditious progress, as the time frame often extends beyond a decade before the first benefits of a project are realized. The World Bank aims to significantly reduce project review and approval time by one-third, with further ambitious plans in development.
During a plenary meeting, Mr. Banga highlighted the importance of not only streamlining their approach but also integrating technical assistance and capacity development into their projects from the outset. These steps will facilitate quicker project execution. The World Bank is also exploring ways to incentivize speed and collaboration within the organization.
The World Bank Group comprises organizations owned by member nation governments, granting them ultimate decision-making power on various matters, including policy, financial concerns, and membership issues.
Currently, 189 countries are World Bank members, with 75 eligible to receive resources from the International Development Association (IDA), a World Bank window offering interest-free loans with repayment terms of up to 40 years. The World Bank is investigating extending maturities to 35-40 years to support long-term investments in social and human capital.
