73218
             Ethiopia: Promotion of Basic Services Phase III (PBS 3) Project


                               SUMMARY OF DISCUSSION∗

                              Meeting of the Executive Directors

                                      September 25, 2012


            Executive Directors approved the Promoting Basic Services (PBS) Phase III Project
in the amount of US$600 million on the payment terms and conditions set out in the President's
Memorandum. The minutes will reflect that Mr. Solomon, Mr. Studart and Mr. Treffers wished
to be recorded as abstaining (IDA/R2012-0219).

        Directors noted the successes of the earlier phases of the PBS program in providing
resources for local recurrent expenditures for basic services and promoting local transparency
and social accountability. Directors urged further consideration to ensure that the Bank is
contributing to socially and environmentally sustainable development; and to ensure the
application of a socially and environmentally sustainable development framework during
implementation and hence strengthened monitoring and reporting. Directors noted that a
complaint has been received by the Inspection Panel. Directors underscored the importance of
working with development partners on addressing fiduciary and safeguard risks and urged
continued strengthening of financial, procurement, safeguards and monitoring and evaluation
capacity as well as grievance mechanisms. Directors welcomed the innovation in the program to
support results-based approaches in Ethiopia and the important development results that this
project aims to achieve.




∗
This summary is not an approved record.