The International Development Asso- ciation (IDA) is the part of the World Bank that helps the

world’s poorest countries. Established in 1960, IDA aims to reduce poverty by providing
interest-free credits and grants for programs that boost economic growth, reduce inequalities and
improve people’s living conditions.

IDA complements the World Bank’s other lending arm–the International Bank for
Reconstruction and Development (IBRD)–which serves middle-income countries with capital
investment and advisory services. IBRD and IDA share the same staff and headquarters and
evaluate projects with the same rigorous standards.
IDA is one of the largest sources of assistance for the world’s 79 poorest countries, 39 of which
are in Africa. It is the single largest source of donor funds for basic social services in the poorest
countries.
IDA lends money (known as credits) on concessional terms. This means that IDA credits have no
interest charge and repayments are stretched over 35 to 40 years, including a 10-year grace
period. IDA also provides grants to countries at risk of debt distress.
Since its inception, IDA credits and grants have totaled US$222 billion, averaging US$13 billion
a year in recent years and directing the largest share, about 50 percent, to Africa.

IDA borrowers
Eligibility for IDA support depends first and foremost on a country’s relative poverty, defined as
GNI per capita below an established threshold and updated annually (in fiscal year 2011:
US$1,165).

IDA also supports some countries, including several small island economies, which are above
the operational cutoff but lack the creditworthiness needed to borrow from IBRD.
Some countries, such as India and Pakistan, are IDA-eligible based on per capita income levels,
but are also creditworthy for some IBRD borrowing. They are referred to as “blend” countries.
Seventy-nine countries are currently eligible to receive IDA resources. Together, these countries
are home to 2.5 billion people, half of the total population of the developing world. An estimated
1.5 billion people there survive on incomes of US$2 or less a day.
FY10 Top
Ten IDA
Borrowers
($million, includes
regional projects)
India 2,578
Vietnam 1,429
Tanzania 943
Ethiopia 890
Nigeria 890
Bangladesh 828
Kenya 614
Uganda 480
Dem. Rep. Congo 460
Ghana 433

New IDA Lending by Region:

Sub-Saharan Africa...........49%
South Asia...........................32%
East Asia/Pacific..................11%
Europe/Central Asia...............4%
Latin America/Caribbean........2%
Middle East/North Africa.........1%

IDA Lending by Sector:

Infrastructure ......................37% Public Admin and Law..........18%

Social sector.......................29% Agriculture ............................8%
Industry ................................2% Finance...................................5%
 .

IDA credits have maturities of 20, 35 or 40 years with a 10-year grace period before repayments
of principal begins. IDA funds are allocated to the borrowing countries in relation to their
income levels and record of success in managing their economies and their ongoing IDA
projects. Nearly all IDA credits have no interest charge, but credits do carry a small service
charge, currently 0.75 percent on funds paid out. IDA also provides grants, which are allocated
to the countries that are at risk of debt distress. Terms of IDA Lending

In fiscal year 2010 (which ended June 30, 2010), IDA commitments totaled US$14.5 billion, of
which 18 percent was provided on grant terms. New commitments in FY10 comprised 190 new
operations. Since 1960, IDA has provided US$222 billion to 108 countries. Annual
commitments have increased steadily and averaged about US$13 billion over the last three years.
IDA-financed operations address primary education, basic health services, clean water and
sanitation, environmental safeguards, business climate improvements, infrastructure and
institutional reforms. These projects pave the way toward economic growth, job creation, higher
incomes and better living conditions. Explore IDA Projects
IDA emphasizes broad-based growth, including:
- Sound economic policies, rural development, private business and sustainable environmental
practices
- Investment in people, in education and health, especially in the struggle against HIV/AIDS,
malaria and TB
- Expansion of borrower capacity to provide basic services and ensure accountability for public
resources
- Recovery from civil strife, armed conflict and natural disaster
- Promotion of trade and regional integration
IDA carries out analytical studies to build the knowledge base that allows intelligent design of
policies to reduce poverty. IDA advises governments on ways to broaden the base of economic
growth and protect the poor from economic shocks.
IDA also coordinates donor assistance to provide relief for poor countries that cannot manage
their debt-service burden. IDA has developed a system for allocating grants based on countries’
risk of debt distress, designed to help countries ensure debt sustainability.

IDA funding
While the IBRD raises most of its funds on the world's financial markets, IDA is funded largely
by contributions from the governments of its richer member countries. Additional funds come
from IBRD's income and from borrowers' repayments of earlier IDA credits.
IDA Replenishments
Donors get together every three years to replenish IDA funds. 51 countries contributed to the
16th replenishment of IDA, which totaled US$ 49.3 billion.

The IDA16 replenishment raised funds for poor countries for the three-year period between July
2011 and June 2014. These are critical years for countries trying to achieve the UN Millennium
Development Goals since it takes time for projects to be completed and yield measurable results.

IDA Subscriptions and Contributions [to be updated]

Donor Contributions to IDA16 Replenishment [to be updated]
.

The International Bank for Reconstruction and Development (IBRD), better known as the World
Bank, was established in 1944 to help Europe recover from the devastation of World War II. The
success of that enterprise led the Bank, within a few years, to turn its attention to developing
countries. By the 1950s, it became clear that the poorest developing countries needed softer
terms than those that could be offered by the Bank, so they could afford to borrow the capital
they needed to grow.
With the United States taking the initiative, a group of the Bank’s member countries decided to
set up an agency that could lend to the poorest countries on the most favorable terms possible.
They called the agency the "International Development Association." Its founders saw IDA as a
way for the "haves" of the world to help the "have-nots." But they also wanted IDA to be run
with the discipline of a bank. For this reason, US President Dwight D. Eisenhower proposed, and
other countries agreed, that IDA should be part of the World Bank.
IDA's Articles of Agreement became effective in 1960. The first IDA loans, known as credits,
were approved in 1961 to Chile, Honduras, India and Sudan.

IDA currently has 170 member countries. Members subscribe to IDA’s initial subscriptions and
subsequent replenishments by submitting the necessary documentation and making the required
payments under the replenishment arrangements.
Thirty-five countries have graduated from IDA throughout its history, ceasing to borrow from
the Association. Some of these countries have since "reverse graduated," or reentered IDA. List
of IDA Graduates

where does Ida work?

Africa
• - Angola4 • - Lesotho
• - Benin • - Liberia
• - Burkina Faso • -
• - Burundi Madagascar

• - Cape Verde2 3 • - Malawi

• - Cameroon • - Mali

• - C.A.R. • - Mauritania

• - Chad • -
Mozambiqu
• - Comoros e
• - Congo, • - Niger
Democratic
Republic of • - Nigeria
(formerly • - Rwanda
Zaire) • - Sao Tome
• - Congo, and Pr.
Republic of4 • - Senegal
• - Cote D'Ivoire • - Sierra
• - Ethiopia Leone
• - Eritrea • - Somalia1
• - Gambia • - Sudan1
 • - Tanzania
• - Ghana • - Togo
• - Guinea • - Uganda
• - Guinea-Bissau • - Zambia
• - Kenya • -
Zimbabwe1,
2

East Asia
• - Samoa3
• - Cambodia
• - Solomon
• - Kiribati3
Islands
• - Laos, PDR
• - Timor-
• - Mongolia Leste
• - Myanmar1 • - Tonga3
• - Papua New • - Vanuatu3
Guinea2
• - Vietnam2

Europe and Central Asia

• - Armenia2, 4
• - Kyrgyz
• - Azerbaijan2,4 Republic
• - Bosnia- • - Moldova4
Herzegovina2, 4
• - Tajikistan
• - Georgia2, 4

• - Uzbekistan2
• _
Kosovo

Latin America and Caribbean

• -
• - Bolivia2,4 Dominica2,
3
• - Guyana4 -
Grenada2, 3
• - Haiti - St Lucia2,
3
• - Honduras4
• - Nicaragua • - St
Vincent2, 3
Middle East and North Africa
• - Yemen,
• - Djibouti
Republic of

South Asia
• - Maldives3
• - Afghanistan
• - Nepal
• - Bangladesh
• - Pakistan2
• - Bhutan4
• - Sri
• - India2
Lanka4

• 1 - Inactive countries
• 2 - Blend countries
• 3 - Small island economy
exception
• 4 - Hardened borrowing terms

Donors and partners:

While the International Bank for Reconstruction and Development (IBRD) raises most of its
funds on the world's financial markets, IDA is funded largely by contributions from the
governments of its richer member countries. Additional funds come from IBRD's income and
from borrowers' repayments of earlier IDA credits.
Donors get together every three years to replenish IDA funds. Donor contributions account for
about [--% ]of the ]SDR ----- billion] (USD 49.3 billion) in the IDA16 Replenishment, which
finances projects over the three-year period ending June 30, 2014.
A total of 51 countries made pledges to IDA16, the highest number of donors in IDA's
history. Six countries -- Argentina, Chile, Iran, Kazakhstan, Peru, Philippines are becoming new
IDA donors.

Cumulative IDA Subscriptions and Contributions [to be updated]

Donor Contributions to IDA16 Replenishment [to be updated)

The top 10
largest
pledges to
IDA16:
US 15.7%
UK 15.6%
Japan 14.1%
Germany 8.4%
France 6.5%
Canada 5.2%
Spain 4.0%
Netherlands 3.9%
Sweden 3.8%
Italy 3.1%

IDA helps to reduce poverty by working with other development partners, as well as through its
own programs. Development programs are most successful when the borrower country acquires
a sense of ownership of the programs through deep involvement in their design and execution.
IDA borrower countries now lead in preparing poverty reduction strategies that establish
priorities for IDA support. In each country, IDA works with local development partners to ensure
that the strategy is carried out in a coherent way and that IDA focuses on areas where it has
comparative advantage.
Partners for Change. Together We Can Do More. This 3-mn
video was shown in March 2007 to a large group of
parliamentarians gathered in Cape Town. It shows direct and indirect
results of recent IDA-supported programs: girls have tripled in
Bangladesh's secondary schools; reforms in Mozambique saw
cellphone users grow from 51,000 to 1.3 million, etc. Behind
each headline is a successful partnership with other
donors, governments, NGOs and local communities.
Real Media video- Windows video. >>Read results in context.

The World Bank (including IDA) is a signatory of the Paris Declaration, a practical, action-
orientated roadmap to improve the quality of aid and its impact on development through
simplifying and harmonizing donor procedures. Over one hundred Ministers, Heads of Agencies
and other Senior Officials endorsed this agreement on 2 March 2005.
Paris Declaration (OECD Website)

Where We Stand Now: Harmonization and Alignment for Greater Aid Effectiveness: An
Update on Global Implementation and the Bank’s Commitments (PDF, October 2006)
 Post-Conflict: Progress on Strengthening Collaboration With United Nations Partners in Post-
Conflict Countries (PDF, October 2006)

the Ida agreement:

The IDA Articles of Agreement are also available in PDF format:ida-articlesofagreement.pdf
(80k)
The Governments on whose behalf this Agreement is signed,
Considering:
That mutual cooperation for constructive economic purposes, healthy development of the world
economy and balanced growth of international trade foster international relationships conducive
to the maintenance of peace and world prosperity;
That an acceleration of economic development which will promote higher standards of living
and economic and social progress in the less-developed countries is desirable not only in the
interests of those countries but also in the interests of the international community as a whole;
That achievement of these objectives would be facilitated by an increase in the international flow
of capital, public and private, to assist in the development of the resources of the less-developed
countries, do hereby agree as follows:
INTRODUCTORY ARTICLE
ARTICLE I: PURPOSES
ARTICLE II: MEMBERSHIP, INITIAL SUBSCRIPTIONS
- SECTION 1. Membership
- SECTION 2. Initial Subscriptions.
- SECTION 3. Limitation on Liability
ARTICLE III: ADDITIONS TO RESOURCES
- SECTION 1. Additional Subscriptions
- SECTION 2. Supplementary Resources Provided by a Member in the Currency of Another
Member
ARTICLE IV: CURRENCIES
- SECTION 1. Use of Currencies
- SECTION 2. Maintenance of Value of Currency Holdings
ARTICLE V: OPERATIONS
- SECTION 1. Use of Resources and Conditions of Financing
- SECTION 2. Form and Terms of Financing
- SECTION 3. Modifications of Terms of Financing
- SECTION 4. Cooperation with Other International Organizations and Members Providing
Development Assistance
- SECTION 5. Miscellaneous Operations
- SECTION 6. Political Activity Prohibited
ARTICLE VI: ORGANIZATION AND MANAGEMENT
- SECTION 1. Structure of the Association
- SECTION 2. Board of Governors
- SECTION 3. Voting
- SECTION 4. Executive Directors
- SECTION 5. President and Staff
- SECTION 6. Relationship to the Bank
- SECTION 7. Relations with Other International Organizations
- SECTION 8. Location of Offices
- SECTION 9. Depositories
- SECTION 10. Channel of Communication
- SECTION 11. Publication of Reports and Provision of Information
- SECTION 12. Disposition of Net Income
ARTICLE VII: WITHDRAWAL; SUSPENSION OF MEMBERSHIP; SUSPENSION OF
OPERATIONS
- SECTION 1. Withdrawal by Members
- SECTION 2. Suspension of Membership
- SECTION 3. Suspension or Cessation of Membership in the Bank
- SECTION 4. Rights and Duties of Governments Ceasing to be Members
- SECTION 5. Suspension of Operations and Settlement of Obligations
ARTICLE VIII: STATUS, IMMUNITIES AND PRIVILEGES
- SECTION 1. Purposes of Article
- SECTION 2. Status of the Association
- SECTION 3. Position of the Association with Regard to Judicial Process
- SECTION 4. Immunity of Assets from Seizure
- SECTION 5. Immunity of Archives
- SECTION 6. Freedom of Assets from Restrictions
- SECTION 7. Privilege for Communications
- SECTION 8. Immunities and Privileges of Officers and Employees
- SECTION 9. Immunities from Taxation
- SECTION 10. Application of Article
ARTICLE IX: AMENDMENTS
ARTICLE X: INTERPRETATION AND ARBITRATION
ARTICLE XI: FINAL PROVISIONS
- SECTION 1. Entry into Force
- SECTION 2. Signature
- SECTION 3. Territorial Application
- SECTION 4. Inauguration of the Association
- SECTION 5. Registration
SCHEDULE A- INITIAL SUBSCRIPTIONS
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• •Français
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• What is IDA?
Last Updated: September 2009
• IDA at Work
○ Project Profiles

• IDA@50 Agriculture
HIV/AIDS

• IDA Replenishments
• Resource Management
Climate Change
Information and Communication
Community Driven Development
Technology
Debt
Institutional Reform and Economic Policy

Disaster Risk Management

Land Policy
• Measuring Results
Education
Microfinance and Private Sector

Energy
Development

Environment
Post-Conflict and Fragile States

Financial and Private Sector

Social Development

Development
Trade

Food Prices
Transport

Gender
Urban Development

Health
Water

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how resources are allocated?

IDA's 79 eligible recipients have very significant needs for concessional funds. But the amount
of funds available, which is fixed once contributions are pledged by donor governments, tends to
be well below the countries' needs. IDA, therefore, must allocate scarce resources among
eligible countries. This is done on the basis of recipients' policy performance and institutional
capacity in order to concentrate resources where they are likely to be most helpful in reducing
poverty.

1. Eligibility
Two criteria are used to determine which countries can access IDA resources:
• Relative poverty defined as GNI per capita below an established threshold and updated
annually (in fiscal year 2010: $1,135).
• Lack of creditworthiness to borrow on market terms and therefore a need for
concessional resources to finance the country's development program.
2. Allocation Criteria
The main factor that determines the allocation of IDA resources among eligible countries is each
country's performance in implementing policies that promote economic growth and poverty
reduction. This is assessed by the Country Policy and Institutional Assessment (CPIA), which for
the purposes of resource allocation is referred to as the IDA Resource Allocation Index (IRAI).
The IRAI and portfolio performance together constitute the IDA Country Performance Rating
(CPR). In addition to the CPR, population and per capita income also determine IDA
allocations. Beginning 2005, the numerical IRAI as well as the CPR are disclosed.
For your reference, see below relevant links:
• CPIA see: CPIA Questionnaire - 2009
• Disclosure see: Disclosing IDA Country Performance Ratings
• IRAI scores: see IDA Resource Allocation Index 2009
• CPR ratings: see IDA Country Performance Ratings 2009
3. Allocation Process
The allocation of IDA's resources is determined primarily by each recipeint's rating in the annual
CPIA. In addition, the IDA15 Agreement recommends that because the acceleration of economic
and social development in Sub-Saharan Africa remains foremost among IDA's priorities, these
countries should receive priority in the allocation process, provided their policy performance
warrants it. In the case of countries that are eligible for both IDA and IBRD funds ("Blend
countries"), IDA allocations must also take into account those countries' creditworthiness for and
access to other sources of funds. Individual country performance-based allocations serve as an
anchor for the formulation of Country Assistance Strategy (CAS) lending programs. For a more
detailed overview of the IDA's Country Assessment and Allocations process, see Annex 1of the
IDA15 Replenishment Report.
Last Updated: June 2010

IDA Resource Allocation Index (IRAI) - 2009

Available in: ‫العربية‬

The World Bank’s IDA Resource Allocation Index (IRAI) is based on the results of the annual CPIA
exercise that covers the IDA eligible countries. The CPIA rates countries against a set of 16 criteria
grouped in four clusters: (a) economic management; (b) structural policies; (c) policies for social inclusion
and equity; and (d) public sector management and institutions. The criteria are focused on balancing the
capture of the key factors that foster growth and poverty reduction, with the need to avoid undue burden
on the assessment process. To fully underscore the importance of the CPIA in the IDA Performance
Based Allocations, the overall country score is referred to as the IRAI.

The 2009 results

The IRAI and its sixteen component scores are presented in two tables:

(i)Table 1 (Countries listed alphabetically) [PDF version] - [Excel version]

(ii) Table 2 (Countries ranked by IRAI score) [PDF version] - [Excel version]

For comparison purposes, detailed country scores along with the IDA averages are provided in country
sheets for each IDA eligible country:
2009 IDA Resource Allocation Index
(IRAI)

2009 IDA Resource Allocation Index (IRAI)

INDIA

INDIA Cluster A: Economic

Management
1. Macroeconomic Management 4.5 3.7
2. Fiscal Policy 3.5 3.5
3. Debt Policy 4.0 3.5
Average a/ 4.0 3.5
Cluster B: Structural Policies
4. Trade 3.5 3.9
5. Financial Sector 4.0 3.1
6. Business Regulatory 3.5 3.3
Environment
Average a/ 3.7 3.4
Cluster C: Policies for Social Inclusion/Equity
7. Gender Equality 3.5 3.4
8. Equity of Public Resource Use 4.0 3.4
9. Building Human Resources 4.0 3.4
10. Social Protection and Labor 3.5 3.1
11. Policies and Institutions for 3.5 3.1
Environmental Sustainability
Average a/ 3.7 3.3
Cluster D: Public Sector Management and Institutions
12. Property Rights and Rule- 3.5 2.9
based Governance
13. Quality of Budgetary and 4.0 3.3
Financial Management
14. Efficiency of Revenue 4.0 3.5
Mobilization
15. Quality of Public 3.5 3.0
Administration
16. Transparency, Accountability 3.5 2.9
and Corruption in the Public
Sector
Average a/ 3.7 3.1
Overall IRAI b/ 3.8 3.3
Average (Clusters A, B, C) 3.8 3.4
Average Cluster D 3.7 3.1
Portfolio Rating c/ 3.5 3.3
IDA Country Performance 3.7 3.2
Rating c/ d/
a/ For calculation of the cluster averages, all criteria are equally weighted within
a cluster.
b/ Overall rating is calculated as the mean of the score of four clusters.
c/ For more information, see Annex 1 in "Additions to IDA Resources: Fifteenth
Replenishment", IDA, February 28,2008.
d/ Calculated as follows: (24% Clusters A,B,C average) + (68% Cluster D average) +
(8% Portfolio Rating). If portfolio rating is not available, then: (32% Clusters A,B,C
average) + (68% Cluster D average).
* Ratings on each axis on a 1.0 to 6.0 scale (except Portfolio Ratings which
range from 2.0 to 4.5).
0.0
1.0
2.0
3.0
4.0
5.0
6.0
IRAI (Overall Rating)
A. Economic Mgt.
B. Structural Policies
C. Policies for Social Inclusion/Equity
D. Public Sector Mgt.
IRAI 2009: Overall and Clusters Averages *
INDIA
IDA Countries
0.0
1.0
2.0
3.0
4.0
5.0
6.0
IDA Country Performance Rating
Ave. (Clusters A,B,C)
Ave. (Cluster D)
Portfolio Rating
2009 IDA Country Performance Ratings *
INDIA
IDA Countries

debt sustainability and grants:

The objective of grants in IDA15 is to help low-income countries to restore or maintain their
external debt sustainability. The grant allocation framework first introduced in IDA14 has only
one criterion for grant eligibility: countries' risk of debt distress. The risk ratings emerge
from country-specific forward-looking debt sustainability analyses based on the joint IMF-World
Bank debt sustainability framework (DSF) for low-income countries. The IDA grant framework
then translate these debt distress risk ratings into "traffic lights", which in turn determine
the share of IDA grants and highly concessional IDA credits for each country: high risk or in
debt distress ("red" light) is associated with 100 percent grants, medium risk ("yellow" light)
with 50 percent grants and 50 percent credits, while low risk ("green" light) is associated with
100 percent credits and zero grants.
The framework limits the scope of grant eligibility only to IDA-only countries, i.e., excludes
IBRD/IDA blend countries or hardened-term countries regardless of their external debt situation.
The exclusion derives from the fact that these countries have greater access to capital markets
and, as a result, their debt compositions can differ from IDA-only countries. Therefore, it is
inappropriate to apply this framework to blend countries or hardened-term countries, as the
framework is designed to address the specific characteristics of low-income countries' debt
profile.
The determination of the terms of IDA's assistance, is done as a second step in the IDA
allocation process. The first step is to allocate resources according to IDA's Performance-Based
Allocations (PBA) system, where the volumes of IDA assistance are determined based on the
country's performance and needs.

non concessional borrowings:

Managing Risks Associated with Nonconcessional Borrowing in IDA14 Grant-Recipient
and Post-MDRI Countries
The provision of grants and debt relief creates significant benefits for recipient countries in the
form of strengthened debt sustainability prospects and increased resources for development,
including MDGs. However, grants and debt relief have also considerably increased borrowing
space in low-income countries, and increase the risk that IDA’s debt relief or grants could
potentially cross-subsidize lenders that offer non-concessional loans to recipient countries. If
borrowing and lending do not take place at a pace consistent with countries’ debt-carrying
capacity, it would contribute to the risk of unsustainable debt burdens in the beneficiary
countries within a few years.
This risk is created by a collective action problem vis-à-vis creditors, and a moral hazard
problem vis-à-vis borrowers. From a creditor standpoint, there are key differences between
collective and individual interests: IDA and its donors aim to lower the risk of debt distress in
low-income countries by providing new financial assistance on appropriately concessional terms;
in contrast, other creditors may gain from non-concessional lending following large-scale debt
relief or in conjunction with grants provided by IDA (also known as a potential cross-
subsidization problem). From a borrower standpoint, IDA grants and debt relief may introduce
an incentive for countries to over-borrow from other creditors, which would force IDA to
continue to increase the grant share of its assistance and/or defeat the original purpose of the
MDRI.
IDA’s policy on nonconcessional borrowingoutlines IDA’s proposed response to the risks
associated with nonconcessional borrowing after grants and debt relief. The two-pronged
strategy on nonconcessional borrowing contemplates both the collective action and the moral
hazard facets of the problem.
In order to identify instances of non-concessional borrowing, IDA is using a definition of
minimum concessionality that is based on a minimum grant element of at least 35 percent or
higher if a higher minimum concessionality level is required as part of a country’s ongoing IMF
arrangement. The paper stresses the importance of annual and quarterly debt reporting as well as
a new IDA advance-reporting requirement of intentions to contract non-concessional debt. A
grant element calculatoris provided that can facilitate the assessment of whether an individual
loan meets the minimum concessionality threshold. The list of countries to which the non-
concessional borrowing policy would apply is updated regularly.

definition:

"Concessionality"
"A net present value calculation, measured at the time the loan is extended, that compares the
outstanding nominal value of a debt and the future debt-service payments discounted at an
interest rate applicable to the currency of the transaction, expressed as a percentage of the
nominal value of the debt. The concessionality level of bilateral debt (or tied aid) is calculated in
a similar manner, but instead of using the nominal value of the debt, the face value of the loan is
used–that is, including both the disbursed and undisbursed amounts, and the difference is called
the grant element." (IMF (2003), External Debt Statistics: Guide for Compilers and Users, p.250,
June 25) (http://www.imf.org/external/pubs/ft/eds/Eng/Guide/file6.pdf)
"Grace period"
It is defined as an interval between the commitment date and the date of the first payment of
principal (DAC, OECD).
"Interval"
It is defined as an "interval between the commitment date and the first repayment date minus the
interval between two successive repayment" (DAC, OECD).

Discount rate, depending on the maturity of the debt

The discount rate is the CIRR rate plus the margin, when calculating the grant element of a loan
so as to identify a non-concessional loan under the IDA Free Rider Policy.
i. if the maturity is less than 15 years, six-month average CIRR plus 0.75%;
ii. if the maturity is 15 years or more, but less than 20 years, ten-year average CIRR plus
1%;
iii. if the maturity is 20 years or more, but less than 30 years, ten-year average CIRR plus
1.15%; or
iv. if the maturity is 30 years or more, ten-year average CIRR plus 1.25%;
v. For those currencies whose CIRRs are unavailable but are pegged to a hard currency, the
CIRR for the relevant hard currency is used. Otherwise, the SDR rate is applied.
where:
A. “six-month average CIRR” means the average of the Commercial Interest Reference
Rates for the currency of the debt to be incurred by the Recipient over the most recently
published six month period ; and
B. “ten-year average CIRR” means the average of the CIRRs for the currency of the debt to
be incurred by the Recipient over the most recently published ten year period.
C. “Commercial Interest Reference Rates” means the monthly CIRRS for debt denominated
in the relevant currency with a maturity exceeding 8.5 years in, published by the
Organization for Economic Cooperation and Development (OECD).
D. Margines vayring by loan maturity are those employed in the context of IMF PRGF
arrangements or PSIs.

Results Measurement System

Last Updated: February 2007
 Track progress in key areas, from
IDA seeks to improve the lives of the people living in the aggregate country outcomes down to IDA
world’s poorest countries. To measure the degree to which project ratings. Enter Here
IDA is helping countries grow and reduce poverty and
inform donors about the effectiveness of their contributions,
IDA introduced a system for measuring results in 2002. (An
enhanced system took effect in July 2005.) An interactive
website facilitates the tracking of key indicators and provides
links to other relevant sources.

The Results Measurement System is designed to show aggregated results across IDA countries.
It reflects the priorities and processes of national poverty-reduction strategies, assesses IDA's
contribution to development results and is linked to the Millennium Development Goal
framework. It measures results on two levels:
1. Aggregate country outcomes
The first tier of the system includes indicators grouped in four categories:
- Growth and poverty reduction,
- Governance and investment climate,
- Infrastructure for development,
- Human development.
2. IDA’s contribution to country outcomes
The second tier of the system draws on World Bank self-assessments, analysis of the IDA
portfolio, and data from the Independent Evaluation Group (IEG, formerly the Operations
Evaluation Department) and the Quality Assurance Group (QAG). Indicators include: the
number of country teams that use a results-based Country Assistance Strategy, CAS final
outcome ratings as validated by IEG, project-outcome ratings as validated by IEG, and quality-
at-entry indicators for IDA projects as assessed by QAG.