Posted by Oluyinka Akintunde, Abuja on
The World Bank Group has raised its financial support for 279 projects in developing countries to $22.3 billion (about N2.965trillion) for its financial year ended June 30, 2005.
The World Bank Group has raised its financial support for 279 projects in developing countries to $22.3 billion (about N2.965trillion) for its financial year ended June 30, 2005.
In the bank's report, which was obtained by our correspondent on Friday in Abuja, the figure represents an increase of $2.2billion (about N292.6billion) over the previous year's figure of $20.1billion (about N2.673trillion).
Of the $22.3billion financial support, the bank disclosed that $13.6billion was in financing to mostly middle-income countries, from the International Bank for Reconstruction and Development, (the World Bank), for 118 projects .
The sum of $8.7 billion was in form of non-interest loans or grants to the poorest countries from the International Development Association for 161 projects. The World Bank Group comprises the IBRD, the IDA, in the International Finance Corporation.
The report said: 'By comparison, the total IBRD and IDA lending commitments were $20.1 billion in fiscal year 2004, including $11billion from the IBRD and $9billion from the IDA. While the volume of new lending was on the increase, overall lending quality also rose.
'Steady improvements in the quality of ongoing projects through better preparation, greater selectivity and more effective supervision has resulted in the more effective utilisation of IBRD and IDA assistance."
The bank's primary mission of poverty reduction is conducted by directing financial resources and technical expertise to the benefit of poor people in its member countries.
It said that financial support is provided through loans and guarantees by the IBRD; and grants, credits and guarantees from IDA. While the IBRD raises its funds through the international capital markets, the IDA is funded by direct contributions by wealthier nations.
On disbursement, the bank disclosed that these rose from $17billion in the previous year to $18.7billion in year 2005, adding that the its lending continued to reflect the varying demands and needs of borrowing countries in different regions.
Latin American countries, with a total of $5.2billion, accounted for the largest share of loans, grants and guarantees during the financial year ended June 2005, followed closely by South Asia with $5billion.
Europe and Central Asia received $4.1billion; Africa, $3.9billion; East Asia/Pacific, $2.9billion, and Middle East and North Africa, $1.3 billion.
'The limits on IDA resources had an impact, in particular, on Africa's figures. It is noteworthy, however, that Africa's disbursements increased from $3.3billion in 2004 to $4billion in 2005," it added.
Of the total loans, grants and guarantees, the bank explained that $15.7 billion was for investment operations while the balance of $6.6billion was for policy based/development policy operations.
The World Bank report further stated that the investment lending was more than 50 per cent higher that what it was in the year 2000.
'We are particularly encouraged by the turnaround of two declining trends: the bank's financial assistance to middle-income countries, and the volume of investment lending.
'These increases were attained without apparent trade-off in quality, indicating that the Middle Income Country Action Plan and the simplification and modernization agenda are making a difference," said the World Bank's Vice President of Operational Policy and Country Services, Mr. James Adams.
The Punch, Monday, July 18, 2005