Financing for Development Geneva, Switzerland February 2016

1. FROM
COMMITMENT
TO DELIVERY
Catalyzing Resources for
Development

2. FROM COMMITMENT TO DELIVERY
PRESENTATION OUTLINE
 Overview of global context, including 2030 Agenda
 Note global trends affecting implementation of the 2030 Agenda
 Financing for Development
 Discuss how WBG can maintain institutional focus and action for 2030
commitments
1

3. 2
LOOKING BACK: THE MDG ERA
71
35
40
67
38
34
15
67
36
11
8
12
10
18
4
3
5
7
7
4
11
7
16
18
11
2
7
2
13
17
11
37
33
20
12
14
27
52
40
28
34
54
88
40
58
27
33
25
22
2
2
8
19
23
MDG Progress, by number of countries
Target Met Sufficient Progress (by 2015) Insufficient Progress (2015-2020)
Moderately off target (2020-2030) Seriously Off Target (after 2030) Insufficient Data
MDG 1.1: Poverty
MDG 1.9: Malnourishment
MDG 2.2: Primary Completion
MDG 3.1: Gender Parity
MDG 4.1: Under-5 Mortality
MDG 4.2: Infant Mortality
MDG 5.1: Maternal Mortality
MDG 7.8: Water
MDG 7.9: Sanitation

4. 3
GLOBAL FRAMEWORKS FOR
DEVELOPMENT: FROM MDGS TO SDGS
The global development agendas serve as a compass and guide for
countries to determine their national development path
MDGs (2000-2015) SDGs (2016-2030)
Goals 8 17
Targets 21 169
Indicators 60 ~231
Priority Areas Human Development
Holistic: Economic, Social,
Environmental
Scope Developing Countries Universal

6. 5
BUILDING ON THE MDGs FOR THE 2030 AGENDA
Experience with the MDGs highlighted the importance of three critical pillars*:
IMPLEMENTATIONDATA FINANCING
Ref: WBG/UN report to the
UN CEB on the Lessons
Learned from the MDGs;
Development Committee
Lima paper on WBG’s role
on SDGs
Ref: Spring Meetings 2015
Development Committee
paper on Financing; Addis
2015 outcome document
Ref: UN report on “A World
that Counts”; WBG/MDBs/UN
MoU on Data
WBG action on the SDGs has been articulated along these three focus areas
* Joint Letter from MDB Heads, 2013

7. 6
GLOBAL CONTEXT
Unprecedented
challenges
•Slowdown in global
growth
•Climate change
•Crises and pandemics
•Infrastructure finance
gap
•End of super cycle on
commodities
Heightened global
ambitions
•Sustainable
Development Goals
•COP21 Agreement
•Sendai Framework
Commitments to
scale up
•Addis Ababa Action
Agenda/Financing for
Development –
“Billions to Trillions”
•MIGA/IFC/IBRD-IDA
integrated approaches
in country and sector
strategies, especially
infrastructure
WBG Forward
Look
•A better and stronger
Bank able to respond
to challenges at the
country and regional
levels, by:
•Providing crisis
response mechanisms
•Delivering global
public goods
•Mobilizing additional
resources

8. 7
GDP Growth
(Percent)
Source: World Bank, June 2016.
GLOBAL ECONOMY:
MUDDLING THROUGH…
-4
0
4
8
12
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
World Advanced Economies Emerging and Developing Economies

9. Current forecast
Change from
January 2016
2014 2015 2016 2017 2016 2017
World 2.6 2.4 2.5 2.9 -0.4 -0.2
Advanced economies 1.7 1.8 1.9 2.0 -0.3 -0.1
Emerging and developing economies 4.2 3.4 3.5 4.4 -0.6 -0.3
East Asia and Pacific 6.8 6.5 6.3 6.2 0.0 0.0
Europe and Central Asia 1.8 -0.1 0.8 2.4 -0.8 -0.2
Latin America and Caribbean 1.0 -0.8 -1.3 1.3 -1.3 -0.8
Middle East and North Africa 2.3 2.5 3.1 3.9 -0.7 -0.5
South Asia 6.8 7.0 7.1 7.3 -0.2 -0.2
Sub-Saharan Africa 4.5 3.0 3.3 4.3 -0.9 -0.3
GDP Growth
(Percent)
Source: World Bank, June 2016.
Global and Regional Forecasts:
Revised Down
8

10. 9
Conflicts
Lack of
financing
Lack of
capacity
Clim.
change
Lack
data
Enviro
nment
Viol-
ence
Climate
change
Lack
of fin
Lack
data
Lack
capa
-city
Lack of
capacity
Climate
change
Lack of
financing
Conflicts
Violence/
extremism
Environ-
ment Lack of
capacity
Climate
change
Lack
of
data
Conf-
licts
CC
Lack
capa
-city
Climate
change
Trade
restric-
tions
Pop.
displa-
cement
Conflicts
violence
Lack
data
Lack
fin.
FINANCING, CONFLICTS, CLIMATE CHANGE, DATA ARE
THE MOST FREQUENTLY IDENTIFIED CHALLENGES

11. CRITICAL COMPONENTS OF
FINANCING FOR DEVELOPMENT
1. National public resources:
Improving domestic resource
mobilization (DRM)
2. Global public resources: Better and smarter aid
3. National and global
private resources:
Unlocking private investment for
development, Attracting FDI,
Remittances, Philanthropic finance
• The World Economic Forum estimated that annual demand for infrastructure finance
alone is $3.7 trillion. With annual investment currently around $2.7 trillion, this leaves a
gap of $1 trillion per year.
• According to the Global Commission on the Economy and Climate, incorporating climate
considerations raises the financing gap even further, to $2-3 trillion per year.

12. 11
1. DOMESTIC RESOURCES ARE THE LARGEST
RESOURCE AVAILABLE FOR DEVELOPMENT
• A country’s ability to mobilize domestic
resources (DRM) and spend them
effectively – at the national, sub-
national and municipal levels –lies at
the crux of financing for development.
• Strengthening the capacity of local
governments, including to raise their
own revenues, to manage expenditures
and service delivery, and to borrow and
manage debt prudently is critical;
• Developing inter-government fiscal
transfer arrangements that consider
the needs of sub-national governments
and equalize fiscal capacity and
expenditure is also critical
0
0.05
0.1
0.15
0.2
0.25
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Median tax revenue as a percent of GDP by
Income grouping, 1990-2014 (Tax/ GDP Ratio)
High income Upper middle income
Lower middle income Low income

13. 12
2. OFFICIAL DEVELOPMENT ASSISTANCE
0
200000
400000
600000
800000
1000000
1200000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Developing countries' total resource receipts
ODA Non-ODA Personal remittances
ODA: Official Development Assistance. ODA in the chart includes bilateral ODA and multilateral concessional flows.
Non-ODA flows include: other official developmental flows, officially-supported export credits, FDI, other private flows at market terms
and private grants.
Adjusted gross disbursements, three-year moving average, USD million, 2012 constant prices.
Sources. Remittances, World Bank. Other resource flows, DAC statistics. NB: Data on flows to MADCTs are only available up to 2010.
As development challenges at the global and national levels increase, so too should the resource envelope
available to meet these needs….ODA flows are simply not enough.

14. 13
3. MOBILIZING PRIVATE RESOURCES FOR
DEVELOPMENT
As development challenges at the global and national levels increase, so too should
the resource envelope available to meet these needs….
• Aggregate assets held by ten largest MDBs: $1.3 trillion
• Making the “Billions to Trillions” pledge a reality requires expanding the pool of
development capital beyond the multilateral development banks (MDBs) and official
agencies.
• Private funds:
o $2 trillion of assets held by the world’s ten largest pension funds
o $4.5 trillion of assets held by the world’s ten largest insurance companies
o $5 trillion in assets held by the world’s ten largest sovereign wealth funds
o $100 trillion global bond market
• The global community looks to the World Bank Group to lead on the “Billions to
Trillions” initiative - a call to greatly increase the financial capacity that can be
deployed to meet the Sustainable Development Goals.

15. 14
1,2
Data as of June 30’ 2014
THE FINANCING FOR DEVELOPMENT AGENDA
The need to mobilize new resources is further emphasized by the Financing for Development (FFD)
agenda, as part of the joint UN-MDB “Billions to Trillions (B2T)” effort.
• The IMF and MDBs (AfDB, AsDB, EBRD, EIB, IaDB and
WBG) presented a joint vision, “Billions to Trillions
(B2T)”, at the Third international Conference on
Financing for Development held in Addis Ababa on
July 13-16, 2015.
• Emphasized the need to use the billions of dollars
generated in ODA to unleash trillions in private, public,
international and domestic finance to fund the 2030
Development Agenda.
• The MDBs reaffirmed their role as the main engines of
development finance— “we not only provide direct
financial assistance, but also mobilize, catalyze, and
crowd-in public and private sources of development
finance”.

16. 15
1,2
Data as of June 30’ 2014
MDB LEVERAGING AND MOBILIZING MODEL

17. 16
THE WORLD BANK GROUP

18. 17
WBG INSTRUMENTS
The WBG has a spectrum of instruments spanning the public-private sectors to help mobilize capital.
IBRD/IDA
IFC
MIGA
Public Projects PPP/Private Sector
Projects
Private
Projects*
• Loans, Credits, Grants
• Loan Guarantees
• Payment Guarantees for
Cross-Border Projects
• Loan to sub-sovereign,
public, creditworthy entities
• Non Honoring of Sovereign
Financial Obligation
(NHSFO)
• Non Honoring of Sub-
Sovereign Financial
Obligations
• Non Honoring of SOE
Obligations
• Advisory Services:
Investment Environment
• Advisory Services:
• Investment
Environment
• Project Structuring
• Political Risk Insurance
• Transfer restriction and
inconvertibility
• Expropriation
• Breach of Contract
• War and Civil Disturbance
• Loan Guarantees
• Payment Guarantees
• Loans/Credits for Govt.
Contributions to a PPP
project
• IFC A and B Loans
• Equity
• Credit Guarantee for Private
Sponsors
• MCPP
• IFC A Loan
• Equity
• Credit Guarantee for Private
Sponsors
• Political Risk Insurance (PRI)
* No government contribution or intervention

19. 18
WBG RESOURCES FOR DEVELOPMENT
…And the World Bank Group has continually adapted its product portfolio to meet global challenges.
1980s 1990s 2000s 2010s
GTLP &
crisis
Initiatives
Trade
finance
Green bonds
Financing Structural
Adjustment: First
Generation Reforms
Development
Policy
Financing: 1st
& 2nd Gen
Reforms
Deferred
Drawdown
Option
Guarantees
Debt Relief
Program for Results Financing
Investment Project Financing (IPF) :
Responding to Fragile Situations
Guarantees: Integrated with IPF and
DPF; greater access for IDA clients
Disaster risk management products
(Meteorological & geological events)
Pandemic Emergency Facility
First local
currency
bond
Parallel loan
syndication
Board
endorsement
blended
finance
principles
AMC
Focused Industry
knowledge/finance
MSME support
MCPPFirst global
Investment
Vehicle for
emerging
markets
Swaps
against
macro shock
(housing)
Single Currency
Loans (SCL) –
variable spread
Single Currency
Pool Loans (SCP)
Hedging
products
Local currency
financing
Derivatives/
risk
management
instruments
(2009)
Deferred Draw
Down Option
for Catastrophe
Risk (CAT DDO)
MIGA is first MDB
created to issue
guarantees to
leverage private
investors and
reinsurers
‘Small Investment
Program’
Non-honoring
of Sovereign
Financial
Obligations
CAFEF
established
Non-honoring of Financial
Obligations by a State-
Owned Enterprise
Innovation in product
applications, e.g. capital
market support
Coverage
to stand-
alone debt
approved
Trust Funds for
FCS added for
Bosnia-
Herzegovina,
Afghanistan, and
West Bank & Gaza

20. 19
WBG MOBILIZING AGENDA –AREAS OF FOCUS
Increased Financial
Leverage
IBRDs increase in
financial leverage
through expenditure
review
MDB exposure exchange
swaps
IDA's recent triple-A
credit ratings is a first
step to enable capital
market access,
enabling it to provide
clients with billions of
dollars in additional
resources
Innovative
Approaches to
Support Public Goods
Creation of a Pandemic
Emergency Facility (PEF)
Enhanced role in climate
finance
Mobilization of Private
Capital to invest in
developing countries
IFCs Asset Management
Company (AMC) and
Managed Co-lending
Portfolio Program
(MCPP)
Global Infrastructure
Facility
Convening platform
for public and private
sectors, at global,
regional and national
level
Innovative partnerships
for leverage – MENA
Concessional Facility,
Global Crisis Response
Platform
Development Finance
Forum – annual
gathering of influencers
in private and public
sectors, incubating
approaches to scale up
Increased Domestic
Resource
Mobilization
Joint IMF-WBG Tax
Initiative to build in-
country domestic
resource mobilization
capacity (led by GGODR
and launched during the
Lima Annual Meetings)
Intensified Knowledge
work (e.g. Colombia’s
Building Local Currency
Bond Markets to Finance
Infrastructure; )
Intensified work on Illicit
Financial Flows

21. 20
IDA: WORLD BANK GROUP FUND FOR THE
POOREST
• IDA is one of the largest sources of assistance for the world’s
77 poorest countries, 39 of which are in Africa, and is the single
largest source of donor funds for basic social services in these
countries.
• IDA lends money on concessional terms.
• This means that IDA credits have a zero or very low interest charge
and repayments are stretched over 25 to 40 years, including a 5- to
10-year grace period.
• IDA also provides grants to countries at risk of debt distress.

22. 21
1,2
Data as of June 30’ 2014
IDA MARKET ACCESS AND LEVERAGING
Recent innovations in WBG instruments will further enhance the capacity of the institution to mobilize
funds for development…
IDA18 is leveraging its equity by accessing the market to scale-up lending
operations to IDA countries
• Through the leveraged IDA model, the WBG aims to provide financing most suited to
client needs in a financially efficient and prudent manner, by blending donor
contributions with funds raised through debt markets.
• We aim to dramatically increase the efficiency of donor contributions: for every dollar
raised from donors, we plan to generate 3 dollars of commitment authority for IDA18
and beyond, relative to 2 dollars in IDA17.

23. 22
1,2
IDA’S PRIVATE SECTOR WINDOW
Objective: Unlock significant opportunities to mobilize private capital, and help
scale up the growth of a sustainable and responsible private sector in IDA
countries.
• Set aside US$2.5 billion ($2bn for IFC and $500mn for MIGA)
• Aims to leverage the strengths and expertise of each of these entities of
the WBG to deliver higher development impact in IDA (and especially FCS
countries)
• Builds on the scope and impact of IFC and MIGA’s opportunity-driven
business models and networks of private sector clients, partners and
reinsurers
• Potential instruments are designed to target significant barriers to private
sector development.

24. 23
IFC: PRIVATE SECTOR ARM OF THE WORLD
BANK GROUP
• IFC was founded on the idea that the private sector is
essential to development. It reaches millions of people
in more than 100 countries in support of the World
Bank Group's two goals: ending extreme poverty and
boosting shared prosperity.
• Clients view IFC as a provider and mobilizer of private
capital, knowledge, and long-term partnerships that can
help address critical constraints in areas such as finance,
infrastructure, employee skills, and the regulatory
environment.

25. 24
1,2
Data as of June 30’ 2014
IFC’S ASSET MANAGEMENT COMPANY
Formed in 2009, AMC is IFC’s fund management business, managing third-party capital across eleven
funds that invest in IFC transactions in developing countries. US$6.7 billion has been raised from 42
investors since its inception.
$2,000mn $2,855mn $2,945mn $3,338mn $4,603mn $5,824mn $6,700mn

26. 25
CREATING MARKETS IS A WBG AGENDA:
EACH STEPPING UP, ALL CREATING IMPACT TOGETHER
• “IFC 3.0”: A change in business model: from leveraging markets to
creating markets
• Going upstream and working to create bankable projects
• Clear asks of Bank: specific areas where de-risking needed
• New mobilization mechanisms, broader institutional and other investor
networks
• Institutional enablers
• Aligned incentives: To focus on enabling private solutions to public issues
• Budget allocation: To support Bank de-risking activities
• Engagement mechanisms: To process sourcing, analytics, ex ante
development impact assessment, implementation
• New capabilities: Financial and technical

27. THE NEXT TWO SLIDES ARE
EXAMPLES OF HOW TO CREATE
A MARKET BUT WE THINK THEY
ARE TOO DETAILED – CONSIDER
THEM OPTIONAL

28. EXAMPLE OF CREATING MARKETS:
Market Making Structure for Electricity Provision in IDA / FCS: Nigeria
27
Key Features
1
▪ Institutional reform – stronger independent regulator, gas aggregation company, single buyer
▪ Asset privatization – 5 Generation Companies and 10 Distribution Companies have been privatized
▪ Increased private sector participation – 14 IPPs vetted by FGN and nominated for WBG PRG
program; Transmission Company of Nigeria under private Management Contract (Manitoba Hydro)
▪ Gas sector Master Plan –pricing policy for the domestic market to incentivize private investments &
development of a gas infrastructure blueprint
▪ Cost-reflective electricity retail tariffs – ensures sustainability of entire value chain (gas supply,
generation, transmission and distribution)
Very Ambitious
Objectives
2 ▪ Gas – enhance gas processing and transmission infrastructure key for gas-to-power IPPs
▪ Generation – target installed capacity of 40,000 MW by 2020 vs. c.4,000 MW at present -> 10x
increase in power supply
▪ Transmission and Distribution – strengthening of transmission backbone and distribution networks
▪ Access – long term target of 75% electrification by 2025
Good momentum
though challenges
remain
3
▪ Sustained FGN momentum & a round of privatization completed
▪ Clear FGN financial commitment (US$ 9 billion pledged including proceeds from asset privatizations)
▪ Market perception of irreversibility of reforms; however, periodic hiccups (e.g. tariff re-set for
privatized distribution companies post hand-over delayed now for several months; interim stop-gap
measures in place).
▪ Greater institutional leadership (NERC, single buyer) though track record yet to be established
▪ Private sector interest increasing, but mostly local vs. established developers
▪ Transmission constraints and gas supply & infrastructure remain major challenges to sector
sustainability
Nigeria launched a Roadmap for Power Sector Reform in 2010:

29. 2
8
Azura-Edo Nigeria IPP; Total project cost: ~US$880 million, financed with 72.5% senior debt,
7.5% mezzanine debt and 20% equity. 459 MW, open-cycle gas-fired power generation plant.
The Project is the first phase of a 1000MW open-cycle plant.
WBGSupport
• A partial risk guarantee
backing NBET’s payment
obligations under the PPA –
i.e. the PPA PRG (up to
US$120 million)
• A commercial debt
mobilization guarantee for a
group of international
commercial lenders – i.e. the
Debt PRG (up to US$125
million).
Ultimate risk taken: Federal
Government of Nigeria risk
• IFC co-arranging DFI tranche of
up to US$250 million
• IFC ‘A’ Loan of up to US$125
million
• IFC ‘C’ Loan of up to US$30
million
• IFC hedge instruments
representing a loan equivalent
exposure of up to US$10 million
Ultimate risk taken: The
Project (Commercial risk)
• MIGA Guarantee to Azura-Edo
Limited (shareholders)
• MIGA Guarantee to a group of
commercial lenders and hedge
providers (combined total of up
to $660 million)
Ultimate risk taken: The
Project’s shareholders and
lenders (Non Commercial risk)
16
Result:
Nigeria’s first Independent Power Producer, opening a crucial market for others

30. 29
MIGA: POLITICAL RISK INSURANCE
• MIGA provides political risk insurance guarantees to
private sector investors and lenders. MIGA’s
guarantees protect investments against-non-
commercial risks and can help investors obtain
access to funding sources with improved financial
terms and conditions.
• Since it’s inception in 1988, MIGA has issued more
than $28 billion in political risk insurance for project
in a wide variety of sectors, covering all regions of
the world.

31. 30
OVERVIEW OF WBG GUARANTEE PRODUCTS
Mobilizes private sector
financing in situations
where obligations
typically fall under the
control of government
Mobilizes private sector
(investors, lenders,
reinsurers) by providing
guarantees for
noncommercial risks.
IFC provides credit
guarantees for
private sector
participants as their
primary clients.
WB
G

32. EXAMPLE OF WORLD BANK GUARANTEE:
SANKOFA GAS PROJECT
• Transformational project : First deep-water
natural gas project to address THE country’s
energy shortages for domestic power generation
in Sub-Saharan Africa and largest foreign direct
investment for Ghana ever: $7.9bn investment
for domestic market.
• Exploration and commercialization of the gas will
be carried out by two private investors, in close
partnership with Ghana’s National Petroleum
Corporation, (GNPC).
• Unique combination of IBRD and IDA guarantees.
This innovative mix for a total of $700 million will
help mobilize $7.9 billion by the private sector.
• IFC and MIGA also support the project. IFC is
expected to mobilize more than $1 billion ($300
million from IFC) for the project.
• MIGA is expected to provide a $350 million
Political Risk Insurance to Vitol.
IDA payment guarantee ($500 million)
Guarantee covering the risks of non-
payment by GNPC of its payment
obligations under the Gas Sales
Agreement.
IBRD enclave loan guarantee ($200 million)
Supporting project financing for the private
sector by covering debt service defaults,
as a result of breach of specified
contractual obligations by GNPC and the
Government of Ghana.
Ghana P152670

33. 32
WBG INVESTMENTS IN GLOBAL PUBLIC GOODS
The WBG is embracing innovative financing structures to tackle new gLobal challenges.
Pandemic Emergency
Financing Facility (PEF)
Global Concessional
Financing Facility
Climate Finance
Will leverage $500m from the insurance and capital markets to
finance response efforts to address health outbreaks before they
take on pandemic potential
The GCFF provides development support on concessional terms to
middle-income countries impacted by refugee crises across the world.
Each $1 in grant contributions leverages about $4 in concessional
financing for middle income countries
Through the Climate Change Action Plan cross-WBG "deal teams" are
focusing on delivering bankable/investable projects in clean energy,
including through blended concessional finance, with the aim to mobilize
$25 billion dollars of commercial funding for clean energy over the next
five years.

34. 33
THE GLOBAL INFRASTRUCTURE FACILITY
Facility Objectives
These potential facilities and mechanisms will require further due diligence and evaluation.
GIF
Counterparty Risk Cover for SOEs Facility (w/o counter indemnity) to cover payment risk of non-
credit worthy sub sovereign entities.
Capital Market Catalytic Fund to improve the rating of project bonds so as to mobilize broader
institutional investors.
Regulatory Risk Cover Facility to provide liquidity support to cover payment shortfall due to
adverse regulatory changes, primarily for renewable energy projects.
Contingent Refinancing Facility to enable commercial banks (local and International) to extend the
tenor of their loans thereby expanding the banking market for infrastructure finance.
Project Credit
Enhancement
Private Sector
Co-Financing
Short-Term
Financing
Mobilization fund designed to crowd-in financing from multiple sources (equity, debt, grants,
guarantees, etc.) by addressing the risk constraints and investment objectives of various
counterparties (borrowers, donors, investors), leveraging resources and filling WBG product gaps.
Construction Loan Facility to provide financing for the construction phase of infrastructure projects
that have strong revenue-generating potential, and which can be refinanced through long-term
investors, helping recycle capital at a faster rate than through traditional IBRD loans.

35. THANK YOU
Last updated:
December 2, 2016