Early-Stage Evaluation of the Multiphase Programmatic Approach
Chapter 1 | Background and Evaluation Portfolio
The World Bank introduced the multiphase programmatic approach (MPA) in 2017 as a means of structuring a long, large, or complex engagement as a set of shorter linked projects or phases using either investment project financing (IPF) or Program-for-Results (PforR) financing.1 The MPA was intended to take either a vertical form within a single country, typically over 8–10 years, or a horizontal form across several countries at the same time (figure 1.1). It could also support activities that were either scalable or modular (for example, upgrading a road network in stages) or that followed a predictable course (for example, combining phased investments in clean water and sanitation with those in hygiene and nutrition education), provided that in each case those activities were consistent with the program development objective (PrDO). Another expectation was that the approach would combine complementary financing instruments (for example, an energy transition program might first finance investments in transmission and storage and then provide guarantees to stimulate private investment in generation).
The motivation behind the MPA, outlined in a 2017 paper from the Board of Executive Directors (henceforth referred to as the “2017 Board paper”), was to provide continuity of engagement, allow more flexibility in responses to changed circumstances, encourage adaptive learning, and support stepwise progress toward a long-term development objective (World Bank 2017). First, by signaling a willingness to pursue a long-term development objective, the MPA would strengthen the coherence of World Bank–financed interventions, contribute to building consensus on the client side, and diminish the likelihood of interruptions in support between phases. Second, compared with a single large operation, the MPA would enable more adaptation to circumstances by incorporating multiple opportunities for reflection and course correction. Third, the MPA would encourage structured learning and adaptation by requiring teams to articulate a forward-looking knowledge agenda.
The 2017 Board paper also expected benefits to accrue operationally. The MPA was intended to reduce processing costs and allow the World Bank to better manage its capital. By committing financing in smaller phases, rather than committing the total cost of the larger program up front, the World Bank could reduce undisbursed balances and allow borrowers to save on commitment fees, as well as reduce the processing costs of follow-up phases relative to stand-alone operations. The 2017 Board paper also noted that the MPA might provide a framework for engagement by other lenders, even beyond the duration of the World Bank financing. For instance, the World Bank could mobilize commercial financing for the first phase of an infrastructure program or partner with other multilateral development banks, commercial lenders, private investors, or private companies to finance or implement subsequent phases.
Figure 1.1. Types of Multiphase Programmatic Approaches
Figure 1.1. Types of Multiphase Programmatic Approaches
Source: World Bank 2017.
Note: PrDO = program development objective; WURI = West Africa Unique Identification for Regional Integration and Inclusion.
Since the introduction of the MPA, there has been a steady increase in its use (figure 1.2). The World Bank has approved $18 billion to MPAs under its COVID-19 response and a further $28.8 billion under nonemergency MPAs. At the end of December 2023, the portfolio comprised 11 horizontal and 29 vertical MPAs. Most nonemergency MPA financing is in International Development Association (IDA)–eligible countries and targets infrastructure and sustainable development, with energy, agriculture, water, and transport the most important users (figure 1.3). MPAs have been used in all World Bank Regions. Of the $28.8 billion in nonemergency MPA financing, 75 percent has been for the Africa Region, 85 percent has been for IDA-eligible countries, and 20 percent has been for countries experiencing fragile and conflict-affected situations (FCS). Just a quarter of approved MPAs are horizontal, but they account for 55 percent of MPA financing, nearly 90 percent of which has gone to the Africa Region.
Figure 1.2. The Multiphase Programmatic Approach Portfolio, Fiscal Years 2018–24
Figure 1.2. The Multiphase Programmatic Approach Portfolio, Fiscal Years 2018–24
Source: Independent Evaluation Group calculations.
Note: MPA = multiphase programmatic approach. * Data as of December 31, 2023.
This evaluation is timely given the growth in the use of the MPA and the approach’s potential role in supporting the eight Global Challenge Programs outlined in “Evolving the World Bank Group’s Mission, Operations, and Resources: A Roadmap” (World Bank 2022a). These programs are to be supported through scalable solutions underpinned by knowledge, partnerships, and improvements in operational efficiency (for example, see World Bank 2024). According to the World Bank’s Operations Policy and Country Services (OPCS), the 24-month lending pipeline included 31 MPAs with potential financing of $5.7 billion, of which 87 percent is expected to support Global Challenge Program objectives.2 Most of these MPAs are in digital development, energy and extractives, agriculture, and water.
Figure 1.3. Multiphase Programmatic Approach Portfolio by Global Practice
Figure 1.3. Multiphase Programmatic Approach Portfolio by Global Practice
Source: Independent Evaluation Group calculations.
Note: AGR = Agriculture; DD = Digital Development; EAE = Energy and Extractives; EDU = Education; FCI = Finance, Competitiveness, and Innovation; HNP = Health, Nutrition, and Population; MPA = multiphase programmatic approach; SPJ = Social Protection and Jobs; SSI = Social Sustainability and Inclusion; TR = Transport; URL = Urban, Disaster Risk Management, Resilience, and Land; WAT = Water.
The evaluation has been requested by the Committee on Development Effectiveness to inform the Board of Executive Directors’ ongoing discussion with management on the MPA. The evaluation’s audience is the World Bank’s Board of Executive Directors, the Committee on Development Effectiveness, and World Bank Group management and staff working on MPAs.
- Each phase in a multiphase programmatic approach follows the policies and procedures for the lending instrument it uses, including those for restructuring, though approval of additional financing within the program envelope is delegated to management.
- Probability A or B only, as of December 31, 2023. See appendix B for definitions of probabilities.