World Bank Project Cycle

graphic of World Bank project cycle

The project cycle is the framework used by the World Bank (‘the Bank’) to design, prepare, implement,
and supervise projects. In practice, the Bank and the Borrower work closely throughout the project
cycle, although they have different roles and responsibilities.

The World Bank project cycle includes six-stages:

Identification

Preparation

Appraisal

Negotiation/approval

Implementation

Completion/validation and evaluation

Below is an outline of the six stages, the key documents produced during the various stages, and links to
access them.

1. Identification

The task of identifying and proposing projects for World Bank financing lies mainly with the Borrower.
The Borrower and the World Bank Group (WBG) produce a Country Partnership Framework (CPF) to
identify the country’s main priorities for ending extreme poverty and promoting shared prosperity. Used
in conjunction with a Systematic Country Diagnostic (SCD), the CPF is a key tool that guides the WBG’s
partnership and support for a Borrower’s development program. For further information, click on the
WBG Directive and Guidance.

Once a project is identified, the Borrower and the Bank agree on an initial project concept and its
beneficiaries, and the Bank's project team outlines the basic elements in a Project Concept Note. This
document identifies proposed objectives, risks to these objectives’ achievement, alternative scenarios,
and a likely timetable for the project preparation process. Two Bank documents are prepared and
disclosed to the public during this phase. The Project Information Document which outlines the scope of
the intended project and the Environmental and Social Review Summary (ESRS) for investment projects
starting in October 2018 that apply the Environmental and Social Framework (ESF). For investment
projects under the previous Safeguard Policies, an Integrated Safeguards Data Sheet is made available to
the public. The transition from the Safeguard Policies to the ESF will take several years, as projects
approved under the Safeguard Policies continue to apply those policies through the end of the Project
cycle.
Project Information Document

Environmental and Social Review Summary

Integrated Safeguards Data Sheet

2. Preparation

The borrower is responsible for the project preparation phase, which includes conducting technical,
economic, social and environmental assessments and preparing feasibility studies, engineering and
technical designs, among others. Most Borrowers typically contract with consultants and private sector
firms for goods, works and services, as needed, during this phase and later during the project's
implementation phase. During preparation, the Borrower and the Bank team also give attention to other
important concerns including citizen engagement, gender, climate change, fraud and corruption, and
grievance redress mechanisms. Beneficiaries and stakeholders are also consulted during this phase to
ensure the project considers their needs.

In addition to providing financing, the World Bank serves as a vehicle for global knowledge transfer and
technical assistance and generally takes an advisory role and offers analysis and advice during this
phase. The Bank team supports the Borrower in developing the project design, identifying
implementation arrangements, and conducting various reviews and studies. The Bank assesses the
relevant capacity of the implementing agencies at this point to reach agreement with the Borrower on
arrangements for overall project management, such as the systems required for financial management,
procurement, environmental and social risk management, reporting, and monitoring and evaluation.

Earlier screening by Bank staff may have determined that a proposed project could have potential
adverse environmental or social impacts. For new IPF projects, the Bank currently applies the
Environmental and Social Framework (ESF). The ESF sets out the World Bank’s commitment to
sustainable development through a Bank Policy and a set of Environmental and Social Standards that are
designed to support Borrowers’ to better manage environmental and social (E&S) risks. It uses an up-to-
date and risk-based approach, addresses a wider range of environmental and social risks and potential
impacts and better integrates the Bank’s Environmental and Social policies. The ESF clearly defines the
role of the World Bank versus the Borrower, whereby the Bank applies due diligence to the project
under the Environmental and Social Policy (ESP) and the Borrower follows the requirements of the ten
Environmental and Social Standards (ESS1-10). Development Policy and Program-for-Results financing
do not apply the ESF and have their own provisions for environmental and social risk management.

Environmental Assessment

Environmental Action Plan

Indigenous Peoples Plan

Procurement Plan

3. Appraisal

Appraisal gives the Borrower an opportunity to review the project design in detail and resolve any
outstanding questions. The Borrower and the Bank review the work done during the identification and
preparation phases and confirm the expected project outcomes, intended beneficiaries, application of
ESF requirements (for IPF) and evaluation tools for monitoring progress. Agreement is reached on the
viability of all aspects of the project at this time. The Bank team confirms that all aspects of the project
are consistent with all World Bank operations requirements, assesses the project’s readiness for
implementation, and that the Borrower has institutional arrangements in place to implement the
project efficiently. All parties agree on a project timetable and on public disclosure of key documents
and identify any unfinished business required for final Bank approval. The Project Information Document
and Environmental and Social Review Summary (for IPF) are updated and disclosed during this phase.

4. Negotiation/Approval

Once all project details are negotiated and accepted by the Borrower and the Bank, the Bank team
finalizes the Project Appraisal Document (for IPF), the Program Appraisal Document (for PforR) or the
Program Document (for DPF), along with other financial and legal documents, for submission to the
Bank's Board of Executive Directors for consideration and approval.

Project Appraisal Document

Program Document

Loan Agreements

5. Implementation

Project implementation is the responsibility of the Borrower, while the Bank’s role is to provide effective
implementation support to improve results, help manage risks, and increase institutional development.
With technical assistance and support from the Bank, the Borrower prepares the specifications for the
project and carries out all procurement of goods, works and services needed, as well as any
environmental and social impact mitigation set out in agreed plans, including those described in the
Environmental and Social Commitment Plan (ESCP). Financial management and procurement specialists
on the Bank's project team ensure that adequate fiduciary controls on the use of project funds are in
place. Changing circumstances, project delays and unexpected events can sometimes require
adjustments to the project design, such as implementation arrangements or even objectives, resulting in
a restructuring.
The implementing agency reports regularly on project progress and results. The Borrower and the Bank
also join forces at least twice a year to prepare a review of project progress. Based on this review, the
Bank team prepares an Implementation Status and Results Report.

Implementation Status and Results Report

6. Completion/Validation & Evaluation

When a project is completed and closed at the end of the loan disbursement period, the World Bank,
with input from the Borrower and other stakeholders, compiles an Implementation Completion and
Results Report, which evaluates the project’s outcomes; challenges, and lessons learned to determine
what additional measures are needed to sustain the benefits derived from the project. In addition, the
evaluation team assesses how well the entire operation complied with the Bank's operations policies
and accounts for the use of Bank resources.

Implementation Completion and Results Report

Validation and Evaluation

The Independent Evaluation Group (IEG) evaluates the development effectiveness of the World Bank
Group. IEG is independent of the Management of the World Bank Group and reports directly to the
Executive Board. IEG conducts different types of evaluation, validation, and synthesis exercises. At the
project cycle level, IEG validates 100% of the self-evaluations that WB operational teams conduct upon
project completion. In addition, IEG conducts strategically selected project-level evaluations through
Project Performance Assessment Reports. Learn more about how evaluation is conducted at the World
Bank by reviewing the World Bank Group Evaluation Principles.

Some project and bidding documents are made available to public.

Project Performance Assessment Reports

Projects and Operations

Documents and Reports