The World Bank aims to further reduce project approval time for countries
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Dubai: The World Bank plans to shorten project approval times from 19 months to 12 by the end of this year, bank president Ajay Banga told an audience at the World Government Summit on Monday.
The bank takes 17 months to approve projects, from initial discussions with countries to board approval. Before that, the World Bank had a 19-month approval process. “It takes another nine or ten months before the first dollar comes out. This has a lot to do with the ability of countries to absorb projects and obtain their approval. But the first 19 months are ours. While there are good reasons for some of that time to be spent, it can be reduced,” Banga said. “I don’t know if I will reach 12, but I will reach 13 or 14. But I will reach a number much lower than 19. A delay in development is a denied development, and that has to change. ,” he said.
Banga revealed these plans when asked how the World Bank is adapting internally to global geopolitical challenges.
“The second task is to invest in the capacity of those countries so that they can reduce the nine months it takes successively to obtain approvals and sometimes the years it takes to complete a project,” Banga said.
“We have incredible subject matter experts at the bank to discuss different topics. Making those experts available to spend their time building capacity in the host country is the second part of what I am trying to do,” he added.
One stop shop system
Banga also revealed that the World Bank is actively addressing internal collaboration, emphasizing the need to improve cooperation between different segments within the institution.
Starting in July 2024, the bank plans to establish a unified system that serves as a one-stop shop for services offered by the entire World Bank Group. This group includes the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Financial Cooperation (IFC) and the Multilateral Guarantee Agency (MIGA). These entities represent the lending arms of the World Bank for developing countries and the agency responsible for guarantees against political risks.
Banga expressed the intention to expand this initiative if successful, with the goal of reshaping incentive systems within the bank to encourage collaboration across silos.
Objectives for the region
The challenges of instability across the region (MENA) and Europe, including the Gaza-Israel war, the Russia-Ukraine war and the Red Sea crisis, have resulted in the lowest growth rate in the last 35 years. 40 years. Banga said: “That is something we need to keep a close eye on. “We cannot have economic growth without peace and prosperity.”
The president of the multilateral bank said the institution had changed its vision from dedicating itself solely to eradicating poverty to saying: “We will help eradicate poverty, but we will ensure that it is a liveable planet.”
“We cannot imagine eradicating poverty without addressing these intertwined challenges, including climate change, pandemic concerns, fragility, conflict, land degradation, forest loss and biodiversity loss,” he added.
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