IDA18 Mid-Term Review and Launch of IDA19 Meeting Livingstone, Zambia November 13-15, 2018 Co-Chairs’ Summary 1. IDA Deputies and Borrower Representatives (Participants) met on November 13-14, 2018 in Livingstone, Zambia for the IDA18 Mid-Term Review (MTR). The launch of the IDA19 Replenishment was held on November 15. The two days related to the IDA18 MTR were chaired by Ms. Kristalina Georgieva, Chief Executive Officer of the World Bank. Participants warmly welcomed Ms. Kristalina Georgieva and Ms. Antoinette Sayeh – Distinguished Visiting Fellow at the Center for Global Development – as the Management and independent co-chairs for the IDA19 Replenishment, respectively. Reflecting IDA’s efforts to strengthen the voice of clients, Participants included fourteen borrower representatives. Observers from other multilateral development institutions also joined the meeting (African Development Bank (AfDB), Asian Development Bank, and the International Fund for Agricultural Development). 2. Participants greatly appreciated the hospitality of the host government of Zambia for the meetings, including the participation of the President of Zambia and the widely enjoyed cultural event. Four field trips allowed Participants to gain a sense of what IDA and MIGA support is achieving in Zambia: Zimba and Kansensa school visits explored education and social protection; the Kazungula Climate Resilience Farm showcased promoting local adaptive capacity to climate change; and the Silverland Ranch highlighted how MIGA is supporting commercial farming and small farmers in surrounding communities. 3. Opening remarks from leaders helped guide and shape the discussions. Via video-tape, World Bank Group (WBG) President Jim Yong Kim appreciated partners’ strong support in shaping an innovative and action-oriented IDA18 agenda in support of the SDGs. He highlighted the strong operational delivery in early IDA18, reaching $30 billion by end-October, as well as IDA’s partnerships with bilateral and multilateral agencies, the private sector and CSOs. For IDA19, he urged continued innovation, by integrating emerging topics such as human capital, technology and debt sustainability. Building upon his remarks, CEO Kristalina Georgieva described IDA itself as a very special partnership, with IDA graduates becoming IDA donors. She welcomed global progress in poverty reduction yet noted that IDA will be a critical tool to fight the war on poverty, which is increasingly concentrated in Sub-Saharan Africa and fragile countries around the world. IDA19 Co-chair Antoinette Sayeh encouraged Participants to consider how to build on IDA18 to deepen and innovate further in IDA19. The President of the Republic of Zambia, His Excellency Edgar Lungu, underlined the impact of WBG support on the people of Zambia since the 1950s. Two hundred and fifty projects ($4.6 billion) have supported important initiatives in energy, agriculture, tourism, transport, health, education, and water, including WBG support for the Kariba Dam providing an essential source of hydropower for Zambia and Zimbabwe. The President outlined measures being rolled out to strengthen public financial management and tighten controls to ensure donor financing will be used as intended. He further spoke about the importance of prudent debt management, ensuring sustainability and borrowing for growth. -2- 4. Discussions over the three days were organized around the following issues: (i) IDA18 Delivery, including a dedicated session on IFC-MIGA Private Sector Window; (ii) Review of Graduation and Transition; (iii) IDA18 themes and policy commitments; (iv) proposed IDA19 Strategic Directions; and (v) IDA long term financial sustainability and options for further refinements of IDA’s Financial Model. A follow-up session to the discussion in Bali on IDA Voting Rights was also held. 5. Overall, Participants broadly appreciated solid progress in early IDA18 delivery and policy commitments, while calling for greater attention and focus toward impact and results on the ground. They noted how IDA is increasingly drawing upon WBG synergies and called for continued progress in this regard. While there was general endorsement for most proposed IDA18 mid-course corrections, more work is needed regarding the Small Island Economy Exception and potential support for Syrian refugees located in Jordan and Lebanon. Looking to IDA19, there was support for retaining the current special themes, while also integrating emerging challenges and opportunities, such as debt, disruptive technologies, human capital, and disability. In addition, there was support for continuing to explore the potential for balance sheet optimization, while recognizing the importance of prudent long-term planning for IDA finances, as the SDG agenda is likely to continue beyond 2030. Key points and conclusions are summarized below. IDA18 Delivery and Proposed Mid-Course Corrections 6. Participants took note of the strong start of IDA18 and welcomed the strong delivery in early IDA18, particularly for Africa and countries facing fragility, conflict and violence (FCV). They encouraged Management to go beyond reporting on inputs and outputs to focus more on outcomes and impact, especially going into IDA19. They also urged prioritizing work to help countries manage and monitor the growing debt risks, and paying close attention to disbursements and undisbursed balances. The critical need to work in partnership with the UN and MDBs – particularly the AfDB - was underscored by many Participants. The unique challenges faced by Small Island economies was also underscored. 7. Participants underscored the central importance and value of protecting IDA’s unearmarked core performance based allocations (PBA). They recognized the important purposes and complementary role served by IDA’s windows, such as the Refugee Sub-Window and the Private Sector Window. At the same time, they agreed that the number of IDA windows and set asides has likely reached its limit and that it will be important to avoid further fragmentation and enhance simplicity going forward. 8. With regard to specific IDA18 mid-course corrections, Participants endorsed several proposals for the remainder of IDA18, which Management will put forward for Board approval soon after the MTR (currently scheduled for January 15, 2019). a. Many Participants acknowledged the importance of using IDA resources to the fullest while maintaining a high level of development effectiveness, the strategic directions of IDA18, and its policy commitments. In this context, while there was a broad sense that greater flexibility to manage reallocations between IDA windows could be helpful, concerns were raised about the extent of this flexibility and the process involved. The importance of ongoing -3- engagement with IDA Participants in this process has been underscored. After consideration, Participants were more comfortable with a phased approach: first endorsing a number of specific reallocation amounts to be put to the Board (see first attachment); and second, consultations with IDA Participants for endorsements on further reallocations at the Spring and Annual Meetings, followed by Board approvals, as necessary. b. In the context of specific allocations, Participants endorsed a $400 million exceptional allocation for Yemen to support the cost of maintaining the social safety net program for the next two years, which would provide critical income support and vital service delivery, including health and nutrition for Yemenis. c. In terms of operational adjustments for the remainder of IDA18, they endorsed recommending that the Board: i. allow graduates to recommit their undisbursed balances of concessional financing on IDA Blend terms; ii. raise the Refugee Sub-Window’s (RSW) country cap to $500 million; and iii. reframe the grant exception under the RSW for the remainder of IDA18 to provide 100 percent grants to countries that experience a sudden, massive influx of refugees (defined as receiving at least 250,000 new refugees or at least 1 percent of its population within the last 12 months) for projects that support both refugee and host communities to help the host government adopt a development approach from the outset of the crisis. In addition, the Bank will issue a guidance note for staff on dealing with protection issues and coordinating with the UNHCR in RSW countries. Project documentation for all future RSW projects will provide an update on the policy framework for refugees, including an update on implementation since the eligibility note of the concrete steps undertaken by the Government towards long-term solutions that benefit refugees and host communities. 9. While there was wide acknowledgement of the magnitude of the crisis facing Syrian refugees being hosted by Jordan and Lebanon, Participants underscored the importance of preserving IDA resources for IDA countries. To pursue an exceptional $200 million for these refugees, Participants emphasized the need for a clear line of sight so that IDA support was targeted to Syrian refugees, and asked to clarify linkages with the Global Concessional Financing Facility. Management will continue to consult with partners to find an acceptable approach as soon as possible. Management reiterated that IDA remains ready to re-engage and support Syria’s reconstruction, once the enabling environment can be re-established. 10. Looking to IDA19, Participants had helpful guidance with regard to windows. For the Regional Program, while most supported greater policy work and use of new instruments, Participants asked for greater analysis of the gap being filled. Participants encouraged Management to provide more granularity with regard to financing for Regional Institutions, and underscored the importance of such financing being limited – and only for credit-worthy institutions– in order to preserve IDA’s preferred creditor status. Finally, Participants urged some caution in exploring use of the Crisis Response Window (CRW) for earlier response, as it was seen as critical to retain incentives for governments to strengthen preparedness policies. In this -4- regard, a request was put forward to review IDA’s suite of products for crisis preparedness for the next IDA19 Replenishment meeting. In addition, some Participants expressed interest in exploring a flexible/contingent approach to CRW financing for IDA19. IFC-MIGA IDA18 Private Sector Window 11. Participants acknowledged that the creation of IDA-IFC-MIGA Private Sector Window has been a key innovation of IDA18 bringing together the best of what the three institutions can do for their clients and agreed that the window should be retained in IDA19. 12. Participants acknowledged the initial lessons learned from implementing PSW, particularly regarding minimum concessionality, additionality, governance, and risk. They encouraged Management to pay closer attention to evaluating PSW projects’ impact, as well as the window’s overall medium-term financial sustainability. Management agreed to an evaluation of the PSW at an appropriate time in future. They also called upon Management to increase efforts to develop local markets, monitor subsidies closely, and continue reporting on expected development impact. Lessons learned on the Local Currency Facility are particularly important, linking to the broad WBG efforts to develop local capital markets. Management also needs to continue promoting partnerships with existing players in the local currency financing field, such as TCX and local financial institutions. 13. Recognizing the PSW as a new endeavor, Participants expressed concerns about allocating resources away from PSW too early and asked Management to make all necessary efforts to deploy the available financing, while not compromising on projects’ quality. Reallocation of resources could be contemplated at the Spring Meetings or later to maximize IDA resources utilization, based on pipeline development. Participants recognized that the pipeline is gaining momentum. Going forward, expectations are that PSW will continue delivering high quality projects and creating markets, without pressure to sacrifice quality for quantity. Also, further integration of IDA-IFC- MIGA activities was called for. 14. Most Participants expressed concerns about expanding PSW eligibility to IDA Gap and Blend countries, although some noted that further analysis may be needed to consider such expansion. Management was asked to be cautious about introducing further complexities or shifting resources away from the poorest countries. 15. Overall, Participants endorsed proposal for the Board to provide authority to IDA Management to process sub-projects under a programmatic approach in using the PSW. Management will carefully define the programmatic approach to the Board in each case where such authority is sought and updates will be provided at IDA Days during Spring and Annual Meetings. Review of Graduation and Transition 16. Participants agreed that effective flexible use of the Blend period to prepare for successful graduation from IDA requires country-specific approaches, complemented by assisting Blend countries in addressing risks of debt distress and strengthening knowledge available to countries -5- in transition to graduation. They encouraged Management to further tailor their proposals to support transition during the Blend period. Some suggested further attention to ensure the Blend period provides incentives for countries to graduate and to ensure smoother transition. 17. Regarding proposals for Board approval, they endorsed: reducing IDA18 transitional support by about one-third (with intention to discontinue entirely in IDA19 in present form and the understanding that the IBRD will aim to fully replace IDA lending to recent IDA graduates); retaining a cap on allocations to Blend countries with large cumulative World Bank commitments at 7 percent of country-allocable IDA resources; and continuing the suspension of the contractual acceleration clause for Bolivia, Sri Lanka, and Vietnam for the rest of IDA18. 18. Participants advised that revisions to the Small Island Economy Exception policy should include a framework to articulate both access to and exit from the exception, as well as a discussion of the path toward graduation of Small Island Economies from IDA. They encouraged Management to consult further with IDA Partners and work toward a framework that could then be presented to the Board as soon as possible. In the event that the Board approves a revised policy, Fiji could become IDA eligible if it is deemed to meet the revised policy. 19. Looking to IDA19, Participants recognized that current Blend countries face headwinds that could delay their graduation from IDA. They noted that the cases of Moldova and Mongolia will be further considered for graduation and called for attention to debt issues and economic vulnerabilities. Beyond IDA19, countries accounting for over 20 percent of the current IDA population are likely to graduate by 2030. However, projected 25 percent population growth in remaining IDA countries is likely to more than offset this. Many Participants expressed reservations about granting recent graduates access to IDA’s Crisis Response Window and Regional Program, noting the importance for IDA to focus on the poorest countries. Several Participants favored exploring under which exceptional circumstances it would make sense for IBRD-only small economies to be able to access CRW resources. There was support for further exploring a framework under which Small States - once they reach a certain level of development - would access IDA resources on IDA-blend terms. Finally, Participants emphasized the need to assess the impact of these measures on IDA’s equity. IDA18 Special Themes: Progress on Commitments and Looking Ahead 20. Participants welcomed the report that more than three-quarters of IDA18 policy commitments are solidly on track, with many close to being achieved and several already exceeding targets. The value of an over-arching paper (akin to the “chapeau” paper) was noted. Participants also appreciated the analytical quality and openness characterizing the progress reports. They emphasized several cross-cutting issues which applied across the themes and encouraged Management attention to: showing clearer pathways to results and impact with indicators to serve as a feedback loop; the critical need to fill data and analytical gaps; working in partnerships across the WBG, but also with other partners, especially within FCV contexts; ensuring the right staff skills mix and placement in the field; and strengthening the interlinkages across the themes, such as addressing gender gaps in the context of fragility, climate, and labor force participation by women. -6- • On Fragility, Conflict and Violence, Participants welcomed the significant progress that has been made, particularly regarding the scale-up of financial and human resources, the adoption of a differentiated approach to various FCV contexts –with greater attention to prevention and addressing the drivers of fragility - and the operation of the relevant windows and regimes. Participants noted that the Risk Mitigation Regime (RMR) will be a key tool for supporting resilience and conflict prevention in IDA19. Participants welcomed the Pathways for Peace Report and encouraged its operationalization where appropriate. Regarding refugees, there was broad support for increasing the RSW country cap to $500 million, and there was recognition that the situation of countries facing sudden massive influxes of refugees needs to be dealt with differently. Some Participants emphasized the importance of helping refugees prepare for sustainable return when the conditions are right. Participants acknowledged the important linkages between this theme and others, particularly relating to governance and the strengthening of institutions to foster resilience, and regarding gender and the need to do more on gender-based violence and gender empowerment more broadly. The importance of working on a regional level to prevent and tackle some aspects of fragility – such as in the Sahel – was emphasized. Participants stressed the importance of the Bank having adequate resources and enough staff with the right skills in FCS. Some Participants requested that the Bank be clear about how IDA adds value in situations of active conflict, including by identifying lessons from its engagement in Yemen and similar contexts. • On Gender, Participants welcomed progress in closing gender gaps, which is still a large unfinished agenda. Participants called for deeper work in health, education and women leadership. They also urged the Bank to fully implement and translate the Gender Strategy into impact. Participants underscored the need to strengthen women’s role in the economy and the critical importance of educating girls in this respect, as well as the attention to financial inclusion for women’s access to financial market services. They noted an opportunity for gender targeting in the PSW, welcomed IFC’s integration of gender in its portfolio, and urged a stronger role for IFC. Participants emphasized the role of technology in employment, financial inclusion and women’s empowerment. Participants welcomed implementation of the taskforce recommendations on gender-based violence (GBV) and encouraged a holistic approach to GBV. They urged collaboration with other MDBs, the UN and other partners on the action plan to prevent sexual exploitation, abuse and harassment. They supported continuation of the gender theme in IDA19, while calling for even greater ambition, as well as strengthened Bank staff capabilities. • On Climate Change, Participants welcomed the Bank’s leadership on climate change and concurred with the urgency of tackling the issue. They also welcomed that the IDA18 climate- related policy commitments are on track. On the 5GW renewable energy generation target, some Participants noted that this mainly stemmed from indirect financing and urged IDA to do more on direct financing, and to scale up its support to other forms of renewable energy besides hydropower. Looking ahead, Participants agreed with the need for increased ambition and welcomed the future directions laid out by Management. Participants welcomed the focus on adaptation and resilience, including promotion of investment in infrastructure with disaster resilient quality, and also appreciated funding for mitigation. Some emphasized taking advantage of opportunities in the green economy, strengthening the linkages between analytics and policy actions, promoting the use of financial instruments, scaling up support to NDCs, -7- and embedding relevant indicators and monitoring mechanisms in IDA projects. Others advocated scaling up support to small states and deepening cooperation with other climate funds. • About Jobs and Economic Transformation (JET), Participants welcomed the progress made to date, while calling for more ambitious and targeted efforts to create more and better jobs and facilitate economic transformation, particularly in the poorest and most fragile states. The path to growth with jobs and rising productivity was now less certain because of disruptive technology, and the Bank was seen as a central source of advice and knowledge on the viability of alternatives. Participants called for continued attention to the informal sector, small business and agriculture productivity, while noting that urban transformation is crucial as most formal jobs will be created in cities. In response to some Participants’ request for a JET implementation strategy, Management emphasized the importance of incorporating JET at the country strategy level and will further consider the focus of the Special Theme in the IDA19 process. Participants encouraged continued efforts by the entire WBG to combine their forces in IDA countries to improve the business climate, help mobilize finance and support investment transactions, including through the PSW, in alignment with IFC’s capital increase commitment and MIGA’s 2020 strategy. Creating local markets will require extra efforts. Contributing to the Compact with Africa initiative, in collaboration with other MDBs was also emphasized. Participants also urged that IDA’s analytical work effectively inform the design and delivery of IDA operations, particularly around job diagnostics and global value chain analysis including the next World Development Report, migration analysis, SME and entrepreneurship, labor market productivity, and focus on youth and women. Looking forward, they welcomed attention to disruptive technology and human capital through investment in health and education. Some Participants highlighted the critical role which investment in quality infrastructure and its operation and maintenance plays in skills transfer, job creation, and economic transformation. Participants welcomed initiatives that will already be underway in IDA18, e.g. the Digital Economy for Africa Initiative (“Moonshot”) and requested that these efforts inform IDA19. Finally, Participants appreciated the perspectives shared in the non- paper circulated by African Representatives for 41 countries. • Regarding Governance and Institutions, Participants recognized that significant progress is being made and encouraged its continuation. There was satisfaction that many of the commitments are being met or exceeded. Participants underlined the importance of domestic resource mobilization, noting encouraging progress, but also urging the Bank to do more, particularly with countries whose tax-to-GDP ratio is below 15 percent as well as look more closely at how to address fairness and equity in taxation. Participants also welcomed the progress being made on corruption and illicit financial flows and urged the Bank to strengthen its efforts in this challenging area, including by revising the model for IFF assessments. There was a strong emphasis on debt management, as well as related topics of debt transparency, strengthening public financial management, public investment management and the management of State Owned Enterprises. It was also recognized that debt, if used properly, could become a source of growth. Participants also acknowledged the importance of demand for robust governance and the need to build social accountability mechanisms. Some Participants stressed the importance of robust institutions for health service delivery to build human capital and resilience. Looking to IDA19, Participants signaled a desire for this theme -8- to contain ambitious and integrated commitments that support governments to build core institutions and capacity to deliver results for citizens. Proposed IDA19 Strategic Directions 21. Participants expressed strong support for the proposed strategic directions of IDA19 and deemed them adequate to intensify progress toward the 2030 Development Agenda. They agreed to retain the special themes of IDA18, while underscoring the importance of adapting the existing policy framework to emerging challenges and key opportunities. Participants noted the persistence of extreme poverty, especially in FCV. Underscoring that economic growth remains key to eradicating poverty on a sustainable basis, Participants called for a sharper focus on inclusive growth in IDA19. In this context, they noted the importance of scaling up the private sector and mobilizing private investment, promoting quality of infrastructure investment strengthening health and education systems, improving livelihoods in agriculture and the rural economy, and more dynamism of the informal sector. 22. Participants emphasized that debt vulnerabilities in IDA client countries present a critical challenge to sustainable growth of low income countries which needs to be addressed through several avenues, with attention required to enhance both debt sustainability and debt transparency. These include strengthening and targeting growth-enhancing policies, capacity building for better fiscal and debt management, enhancing domestic resource mobilization, strengthening transparency and reporting to help debtors and creditors make informed decisions, improving the quality of investments, and supporting the WBG-IMF multi-pronged approach to address debt vulnerabilities, including a thorough review of IDA’s own policies (NCBP). 23. In addition, they emphasized the need to assist countries make informed choices to leverage the opportunities and avoid the pitfalls associated with disruptive technologies and building on the momentum created by the Human Capital project, stressing the cross-cutting aspect of these issues. They also noted the importance of strengthening resilience and preparedness, including in the context of countries in fragile and conflict-affected situations, refugees and their physical and mental health emergencies, for better development outcomes. Addressing disability was viewed as being important for inclusion and achieving the Sustainable Development Goals and it was agreed to integrate disability further as a cross-cutting issue for IDA19. Blue Economy and addressing the issues facing small island economies were also emphasized, as well as an IDA program on solid waste management to prevent marine litter within the Regional Window. 24. Within the special themes, they recognized the need to explore trade-offs to avoid fragmentation and proliferating policy commitments. Focus in IDA19 should be on deepening and enhancing, not increasing, the number of windows or number of commitments. Participants suggested incorporating greater flexibility across the windows from the outset. Participants also suggested strengthening interlinkages across themes, paying attention to challenges of migration and issues of demographics. Participants emphasized the need for working across the entire WBG and for partnerships. They recommended enhanced coordination and joint work with the IMF, AfDB and other IFIs, as well as UN agencies, building on the comparative advantage of each institution. They also encouraged partnering with local actors. -9- 25. On the overarching theme of IDA19, Participants suggested formulations that focused more on goals than on means, such as investing in people, resilience, economic growth, and sustainable inclusive development. On the basis of suggestions/guidance received, Management will continue to consult with IDA Partners on arriving at a consensus view for the overarching theme for IDA19. 26. Participants broadly supported the proposed process and timetable for the IDA19 replenishment, including to retain the current three-year Replenishment cycle, after noting Management’s description of the risks associated with a four-year cycle: namely, less timely adaptation to emerging circumstances and potentially reduced financing for IDA clients. To maintain close engagement, the group called for a formal engagement with IDA Deputies and Borrower Representatives after the Spring Meetings, to allow for most Partners to support their visiting delegations before the Meetings. IDA Long Term Financial Sustainability and Options for Further Refinements of IDA’s Financial Model 27. Participants welcomed Management’s update on IDA’s financial medium-term outlook. They also reaffirmed their support for the principles of sustainable leveraging in the new IDA Hybrid Financial Model and look forward to the discussion of the IDA19 financing scenarios in June 2019. Scenarios presented in June should be presented in a way that would allow donors to reflect on the policy choices and trade-offs as well as the outlook beyond 2030. 28. Some Participants also noted that debt sustainability should be considered in IDA’s financial model and in the scenarios presented. They also requested Management to explore how operational policies and financial instruments could create the right incentives to promote debt sustainability and transparency. 29. Participants appreciated the continued work on refinements of IDA’s financial model and supported further analysis and development of a proposal to moderate sensitivity of the present value of IDA’s equity to changes in market interest rates, including an analysis of how the proposals compare with continuing with the current risk management approach. Participants noted that further refinement of interest rate management for IDA presents an opportunity for further optimization of the balance sheet. Management will work on further analysis to be presented at the Spring Meetings. 30. Looking ahead, Participants supported further exploration of innovative financing and risk management products to IDA client countries. They also supported the adoption of a six- month averaging period from March 1, 2019 through August 31, 2019 for setting the IDA19 reference exchange rates and use of an average annual inflation rate threshold of 10 percent over the three-year period of 2016-2018 calendar years to determine partner countries with high domestic inflation rates. IDA Voting Rights: follow-up session to the discussion in Bali - 10 - 31. Participants reaffirmed the need for a review and fully appreciated Management’s support to the review process. There was a strong support for de-linking discussions on voting rights from the IDA19 replenishment process. Participants also noted that the IDA voting rights review should not interfere with the IBRD shareholding review. There was a general support for the principles of fairness, inclusiveness and simplicity. In addition, there was general support for a hybrid process that would involve both IDA Participants and the Board. The Committee on Governance and Executive Directors’ Administrative Matters (COGAM) was referenced as an option, given its experience in IBRD’s shareholding formula review. But it was deemed too early to conclude on the exact form of the review process. Management will consult with partners and develop a roadmap for the Spring Meetings, possibly including an endorsement by IDA Governors. Next Steps 32. The next meeting with IDA Partners is tentatively scheduled for April 14-15, 2019 in Washington, DC, on the margins of the Spring Meetings. Attachments: 1. Revised Table 4 of MTR Chapeau Paper 2. List of Issues to be put to IDA Board - 11 - Attachment 1 Revised Table 4 of IDA18 MTR Chapeau Paper of Proposed Reallocations (US$ billions) Proposed Reductions Original Allocation (per MTR) Concessional TAR (notional allocation for 0.4 1.0 Syria) Crisis Response Window 3.0 0.75 Private Sector Window 2.5 0 Non-concessional Transitional Support 2.8 0.85 TOTAL 9.3 2.0 Proposed Additions Original Allocation (per MTR) Concessional PBA 51.8 0.7 Refugee Sub-window 2.0 0.2 Regional Program 5.0 0.2 Syrian Refugees 0 -- (in Jordan and Lebanon) Yemen Special Allocation -- 0.4 Non-concessional Scale-Up Facility 6.2 0.5 TOTAL 65 2.0 Attachment 2 IDA18 MID-TERM REVIEW ISSUES FOR CONSIDERATION IDA18 Endorsements Endorsed Postponed Not requested* Supported Allocation management Only point estimates for Board approval. Check Further reallocation at • Flexibility to include non-core back SMs/AMs Spring and/or Annual resources Meetings. Consider ranges in IDA19. Yemen - Special allocation ($400 Support million) Syria - Re-allocate $400 million (See below) Support away of the US$1 billion notional allocation under TAR Syria – within the above remaining Management will $600 million, Re-allocate $200 continue to consult with million to Jordan and Lebanon for partners to find an support Syrian refugees acceptable approach as soon as possible Graduation / Transition support • Phase out transition support Support SIEE: Management to • Retain cap on large Blend Support consult further with IDA countries Support Partners and work • Continue suspension of toward a framework that acceleration clause could then be presented to the Board • Revise Small Island exception Refugee Sub-Window Support - the Bank to issue staff guidance note on • Update 100 percent Grant protection issues, including monitoring the context exemption and coordination with UNHCR. PADs for all RSW projects to provide a section on refugee policy - 13 - environment, including an update on what host government is doing to implement its action plan or strategy to undertake long-term solutions that benefit • Increase the maximum country refugees and host communities. allocation from US$400 to Support US$500 million PSW Yes, if carefully defined • Provide approval authority to Management for programmatic approach Portfolio efficiency Support • IDA Graduates to recommit undisbursed balances (on blend terms) IDA19 Feedback requested Regional Integration Mixed views, but need • Expand instruments for more Regional Program: information/analytics on DPOs/PforRs Regional DPOs • Clarify support to regional Regional entities possible entities through Regional to consider following Program and SUF additional analysis, but within strictly defined parameters CRW Interest, but 1) better • Earlier response capacity articular crisis preparedness/response toolkit and 2) ensure CRW doesn’t dis- incentivize preparedness Graduation • Prospects for Graduation in Look at Moldova & IDA19 Mongolia - 14 - • Access to Regional Program for No for recent Graduates regional • Access CRW for recent CRW possibly for small window or Graduates and Small States states CRW to all under certain limited conditions graduates • Shift lending terms for Small Terms: part of exit States with higher level of criteria for exception (see development above)