IDA COUNTRY ALLOCATIONS FOR FY18 Development Finance Corporate IDA and IBRD (DFCII) December 20, 2018 IDA Country Allocations for FY18 1. The IDA181 replenishment arrangements provide that IDA country allocations be made available for information to IDA’s Executive Directors and disclosed on IDA’s external website at the end of each fiscal year of the IDA18 implementation period.2 This note responds to these disclosure commitments by providing: (i) FY18 core IDA country allocations (Table 1) with key input data on which the FY18 country allocations were based (Table 2); (ii) non-core IDA allocations under the Regional Program (Table 3), the Refugee Sub-Window (RSW) (Table 4), the Crisis Response Window (CRW) (Table 5) and the Scale-up facility (SUF) (Table 6).3 2. FY18 Country Allocations of Core IDA Resources. Table 1 shows: (i) the country allocations for FY18, as determined under the Performance Based Allocation (PBA) system.4 In FY18, a total of SDR12.3 billion was allocated to 71 countries.5 This included SDR2.9 billion (23 percent) on grant terms 6 and SDR9.4 billion (77 percent) on regular, small economy or blend terms. The largest shares of FY18 core IDA resources were allocated to Africa (SDR8.0 billion of which SDR2.3 billion on grant terms), accounting for two-thirds of total country allocations in FY18, followed by South Asia (SDR2.6 billion) and East Asia and Pacific (SDR0.8 billion). Two countries, Madagascar and Central African Republic, received an exceptional IDA support under the “Turn- Around” Regime (TAR);7 and four countries, Guinea, Nepal, Niger and Tajikistan, received enhanced support through a new exceptional Risk Mitigation Regime (RMR)8 in addition to their regular PBA allocations in the amount of one third of the regular PBA. 3. Key Input Data for FY18 Allocations. Table 2 presents the key data underpinning the FY18 country allocations. The fourth column of the table shows country performance ratings (CPRs) with the initial three columns reflecting the input variable upon which the CPRs were calculated. The first column shows the average rating for the Country Policy and Institutional Assessment (CPIA) clusters A through C (“Economic Management,” “Structural Policies,” and “Policies for Social Inclusion,” respectively); the second column shows the rating for the CPIA cluster D (“Public Sector Management and Institutions”); and the third column shows the portfolio performance rating. The final two columns of the table show the country population and GNI per capita, respectively. 1 The IDA18 implementation period covers three fiscal years 2018-2020 (FY18-FY20). 2 See IDA18 Deputies Report “Additions to IDA Resources: Eighteenth Replenishment. Towards 2030: Investing in Growth, Resilience and Opportunity” (page 108). 3 IDA18 transitional support to Bolivia, Sri Lanka and Vietnam (total of US$2.8 billion), IDA18 Private Sector Window (total of US$2.5 billion) and set-aside resources for potential arrears clearance during IDA18 (SDR800 million) are excluded. 4 For details on the PBA system, see Annex 2 of IDA18 Deputies Report “Additions to IDA Resources: Eighteenth Replenishment. Towards 2030: Investing in Growth, Resilience and Opportunity”. 5 Of 75 IDA-eligible countries as of July 1, 2017, four inactive IDA countries with credits in non-accrual status were not allocated IDA resources (Somalia, Sudan, Syrian Arab Republic and Zimbabwe). 6 The allocation of SDR29.2 million for Eritrea is reflected as having been allocated on grant terms; however, a final determination of terms applicable to the allocation were subject to confirmation at the time of the country’s re -engagement with IDA if/as relevant. 7 For details on the TAR, see Annex 3 of IDA18 Deputies Report “Additions to IDA Resources: Eighteenth Replenishment. Towards 2030: Investing in Growth, Resilience and Opportunity”. 8 For details on the RMR, see Annex 4 of IDA18 Deputies Report “Additions to IDA Resources: Eighteenth Replenishment. Towards 2030: Investing in Growth, Resilience and Opportunity”. -2- Table 1. IDA Country Allocations in FY18 FY18 Allocations (SDR million) Region/Country a/ Grants Credits Total Africa (AFR) Benin 61.0 61.0 121.9 Burkina Faso 120.1 120.1 240.1 Burundi 75.5 0.0 75.5 Cameroon 0.0 177.3 177.3 Cape Verde 0.0 21.4 21.4 Central African Republic b/ 63.7 0.0 63.7 Chad 90.9 0.0 90.9 Comoros 9.8 9.8 19.6 Congo, Democratic Republic of 222.8 222.8 445.6 Congo, Republic of 0.0 39.0 39.0 Cote d'Ivoire 0.0 224.8 224.8 Eritrea d/ 29.2 0.0 29.2 Ethiopia 596.0 596.0 1,192.0 Gambia, The 30.6 0.0 30.6 Ghana 0.0 319.8 319.8 Guinea h/ 74.4 74.4 148.9 Guinea-Bissau 10.7 10.7 21.4 Kenya 0.0 522.3 522.3 Lesotho 0.0 34.0 34.0 Liberia 26.5 26.5 53.0 Madagascar b/ 142.5 142.5 285.1 Malawi 96.6 96.6 193.2 Mali 79.9 79.9 159.8 Mauritania 55.5 0.0 55.5 Mozambique e/ 260.7 0.0 260.7 Niger h/ 142.9 142.9 285.7 Nigeria 0.0 1,134.4 1,134.4 Rwanda 0.0 195.3 195.3 Sao Tome and Principe 16.6 0.0 16.6 Senegal 0.0 208.4 208.4 Sierra Leone 39.6 39.6 79.2 Somalia c/ 0.0 0.0 0.0 Sudan c/ 0.0 0.0 0.0 South Sudan 66.1 0.0 66.1 Tanzania 0.0 597.1 597.1 Togo 32.4 32.4 64.8 Uganda 0.0 369.1 369.1 Zambia 0.0 146.8 146.8 Zimbabwe c/ 0.0 0.0 0.0 Subtotal AFR 2,344.0 5,645.0 7,989.0 -3- Table 1. IDA Country Allocations in FY18 (continued) FY18 Allocations (SDR million) Region/Country a/ Grants Credits Total East Asia and the Pacific (EAP) Cambodia 0.0 121.3 121.3 Kiribati 15.9 0.0 15.9 Lao People's Democratic Republic 0.0 65.1 65.1 Marshall Islands 15.3 0.0 15.3 Micronesia, Federated States of 15.6 0.0 15.6 Mongolia 0.0 37.7 37.7 Myanmar 0.0 395.7 395.7 Papua New Guinea 0.0 62.6 62.6 Samoa 17.8 0.0 17.8 Solomon Islands 9.0 9.0 18.1 Timor-Leste 0.0 21.9 21.9 Tuvalu 15.1 0.0 15.1 Tonga g/ 8.1 8.1 16.1 Vanuatu 8.7 8.7 17.3 Subtotal EAP 105.5 730.0 835.5 Europe and Central Asia (ECA) Kosovo 0.0 30.0 30.0 Kyrgyz Republic 35.2 35.2 70.4 Moldova 0.0 50.8 50.8 Tajikistan h/ 43.5 43.5 86.9 Uzbekistan 0.0 264.9 264.9 Subtotal ECA 78.7 424.4 503.0 Latin America and the Caribbean (LCR) Dominica 0.0 15.8 15.8 Grenada 0.0 15.9 15.9 Guyana 0.0 20.7 20.7 Haiti 65.5 0.0 65.5 Honduras 0.0 85.9 85.9 Nicaragua 0.0 72.7 72.7 St. Lucia 0.0 16.8 16.8 St. Vincent and the Grenadines 0.0 16.1 16.1 Subtotal LCR 65.5 243.9 309.5 Middle East and North Africa (MNA) Djibouti 0.0 20.3 20.3 Syrian Arab Republic c/ 0.0 0.0 0.0 Yemen, Republic of 94.5 0.0 94.5 Subtotal MNA 94.5 20.3 114.8 -4- Table 1. IDA Country Allocations in FY18 (continued) FY18 Allocations (SDR million) Region/Country a/ Grants Credits Total South Asia (SAR) Afghanistan 196.2 0.0 196.2 Bangladesh 0.0 1,116.9 1,116.9 Bhutan 0.0 24.6 24.6 Maldives f/ 8.9 8.9 17.7 Nepal h/ 0.0 327.5 327.5 Pakistan 0.0 907.0 907.0 Subtotal SAR 205.1 2,384.9 2,589.9 Total Country Allocations 2,893.3 9,448.5 12,341.8 Notes: a/ The terms of IDA credits vary by country (regular, small economy or blend terms), based on each country's IDA classification in FY18 (see Annex 2 of Bank Directive "Financial Terms and Conditions of Bank Financing" for FY18). b/ Two countries received exceptional IDA allocations under the “Turn-Around” Regime: Madagascar (effective February 2016) and Central African Republic (effective October 2016). c/ Inactive IDA countries with credits in non-accrual status. d/ Eritrea was classified as a country with credits in non-accrual status effective March 15, 2012. The applicable financing terms of its allocation will be determined at the time of its re-engagement with IDA. e/ Financing volumes of Mozambique were reduced by 10 percent in FY18 based on measures applied under the Non-Concessional Borrowing Policy. f/ Financing terms of Maldives were changed to 50 percent grant/ 50 percent credit basis from 100 percent grant basis normally applicable to a country at high risk of debt distress based on measures applied under the Non-Concessional Borrowing Policy. g/ The grant eligibility of Tonga changed from 50 percent to 100 percent grants as of May 3, 2018 given that (i) the damages and losses from Tropical Cyclone Gita were in excess of 1/3 of Tonga’s GDP, and (ii) Tonga’s risk of debt distress rating in the latest DSA shifted from moderate to high (DSA as of December 2017). h/ Under the exceptional Risk Mitigation Regime, Guinea, Nepal, Niger and Tajikistan received resources of up to one-third of their regular allocations under the PBA system, in addition to their regular country allocations under the PBA system. -5- Table 2. Key Input Data for FY18 Allocations 2016 Country Average of Portfolio Country GNI per CPIA Population CPIA Clusters Performance Performance Capita Cluster D (million) b/ A, B & C Rating (PPR) Rating (CPR) a/ (US$) b/ Africa Benin 3.41 3.30 3.50 3.34 10.9 820 Burkina Faso 3.68 3.50 3.50 3.54 18.6 640 Burundi 3.17 2.40 3.50 2.67 10.5 280 Cameroon 3.26 3.00 2.50 3.02 23.4 1,200 Cape Verde 3.71 3.80 3.50 3.75 0.5 2,970 Central African Republic 2.49 2.20 3.50 2.37 4.6 380 Chad 2.76 2.70 2.50 2.70 14.5 720 Comoros 2.91 2.70 3.00 2.77 0.8 760 Congo, Democratic Republic of 3.06 2.50 3.00 2.67 78.7 420 Congo, Republic of 2.97 2.50 3.50 2.69 5.1 1,710 Cote d'Ivoire 3.40 3.20 4.00 3.31 23.7 1,520 Eritrea 1.63 2.50 2.22 5.0 NA Ethiopia 3.46 3.50 3.50 3.49 102.4 660 Gambia, The 2.93 2.90 4.00 3.00 2.0 440 Ghana 3.49 3.60 3.00 3.53 28.2 1,380 Guinea 3.23 2.90 3.50 3.03 12.4 490 Guinea-Bissau 2.54 2.20 3.00 2.35 1.8 620 Kenya 3.90 3.40 3.00 3.49 48.5 1,380 Lesotho 3.36 3.30 2.50 3.25 2.2 1,190 Liberia 3.17 2.90 4.00 3.05 4.6 380 Madagascar 3.38 2.80 3.50 2.99 24.9 400 Malawi 3.17 3.20 3.50 3.22 18.1 320 Mali 3.48 3.00 3.00 3.11 18.0 750 Mauritania 3.39 3.30 3.50 3.34 4.3 1,120 Mozambique 3.24 3.20 3.50 3.23 28.8 470 Niger 3.43 3.10 3.50 3.21 20.7 370 Nigeria 3.44 2.80 3.00 2.97 186.0 2,450 Rwanda 4.16 3.70 4.00 3.83 11.9 700 Sao Tome and Principe 3.09 3.20 3.50 3.20 0.2 1,730 Senegal 3.83 3.60 3.50 3.65 15.4 950 Sierra Leone 3.29 3.10 3.00 3.14 7.4 490 Somalia NA 1.00 14.3 NA Sudan 2.56 2.20 2.31 39.6 2,140 South Sudan 1.60 1.50 3.00 1.64 12.2 NA Tanzania 3.79 3.40 3.00 3.46 53.9 900 Togo 3.13 2.70 3.50 2.87 7.6 540 Uganda 3.83 3.00 2.50 3.16 41.5 660 Zambia 3.32 3.20 2.50 3.17 16.6 1,300 Zimbabwe 2.69 2.80 2.76 16.2 940 East Asia and the Pacific Cambodia 3.63 2.70 3.50 2.99 15.8 1,140 Kiribati 2.87 3.20 4.50 3.22 0.1 2,380 -6- Table 2. Key Input Data for FY18 Allocations (continued) 2016 Average of Portfolio Country GNI per Country CPIA Population CPIA Clusters Performance Performance Capita Cluster D (million) b/ A, B & C Rating (PPR) Rating (CPR) a/ (US$) b/ Lao People's Democratic Republic 3.24 3.10 3.50 3.17 6.8 2,150 Marshall Islands 2.53 2.80 3.50 2.79 0.1 4,450 Micronesia, Federated States of 2.70 2.90 3.50 2.90 0.1 3,680 Mongolia 3.18 3.30 3.00 3.25 3.0 3,550 Myanmar 3.10 3.00 3.50 3.06 52.9 NA Papua New Guinea 3.03 2.90 3.00 2.94 8.1 NA Samoa 3.97 4.10 4.00 4.06 0.2 4,100 Solomon Islands 3.07 2.70 2.50 2.77 0.6 1,880 Timor-Leste 3.13 2.50 4.50 2.81 1.3 NA Tonga 3.49 3.70 3.00 3.59 0.1 4,020 Tuvalu 2.74 3.20 3.50 3.11 0.0 5,090 Vanuatu 3.40 3.30 3.50 3.34 0.3 NA Europe and Central Asia Kosovo 3.66 3.40 3.00 3.36 1.8 3,850 Kyrgyz Republic 3.84 3.20 2.50 3.30 6.1 1,100 Moldova 3.80 3.40 3.50 3.50 3.6 2,120 Tajikistan 3.02 2.80 2.50 2.83 8.7 1,110 Uzbekistan 3.57 3.20 2.50 3.23 31.8 2,220 Latin America and the Caribbean Dominica 3.58 3.70 4.00 3.69 0.1 6,750 GreNAda 3.57 3.50 3.50 3.52 0.1 8,830 GuyaNA 3.37 3.10 4.00 3.24 0.8 4,250 Haiti 3.03 2.40 3.00 2.60 10.8 780 Honduras 3.62 3.10 3.00 3.22 9.1 2,150 Nicaragua 3.84 3.20 4.00 3.42 6.1 2,050 St. Lucia 3.51 3.80 3.71 0.2 7,670 St. Vincent and the GreNAdines 3.53 3.70 3.65 0.1 6,790 Middle East and North Africa Djibouti 3.06 2.70 3.50 2.85 0.9 NA Syrian Arab Republic NA 1.00 NA Yemen, Republic of 2.44 2.20 2.00 2.24 27.6 1,040 South Asia Afghanistan 2.76 2.60 3.00 2.67 34.7 580 Bangladesh 3.44 2.80 3.50 3.01 163.0 1,330 Bhutan 3.72 3.90 2.50 3.75 0.8 2,510 Maldives 3.20 3.10 4.00 3.20 0.4 7,430 Nepal 3.49 3.10 2.50 3.15 29.0 730 Pakistan 3.40 3.10 3.50 3.20 193.2 1,510 Notes: a/ The CPR is calculated as 0.24 x CPIAA,B&C + 0.68 x CPIAD + 0.08 x PPR. For details on the CPR formula, see Annex 2 of IDA18 Deputies Report “Additions to IDA Resources: Eighteenth Replenishment. Towards 2030: Investing in Growth, Resilience and Opportunity”. b/ The source for the population and GNI per capita data is the Development Economics Data Group (DECDG). Per capita data shown for 2016 are either actual figures or, when actual figures were not available, estimates as of June 2017, when IDA country allocations for FY18 were determined. “NA” signifies countries for which data estimates were available in ranges only per earlier disclosure under Annex 2 of Bank Directive "Financial Terms and Conditions of Bank Financing" for FY18. Memo item: Eritrea, Somalia, Sudan, Syria and Zimbabwe are classified as inactive IDA countries with credits in non-accrual status. -7- 4. Regional Program (RP) Allocations: Table 3 shows funds allocated for regional projects in FY18, broken down by region. Total amount allocated in FY18 was SDR1,200 million of which Africa region received the largest share of 75 percent (SDR900 million). Table 3. FY18 IDA Allocations under the IDA18 Regional Program a/, b/ RP Allocations Region (SDR million) Africa 900.0 East Asia and the Pacific 57.8 Europe and Central Asia 35.5 Latin America and the Caribbean 22.2 Middle East and North Africa 8.2 South Asia 176.4 Total RP 1,200.0 Notes: a/ The breakdown of funding for regional program into grants and credits is not available at the time of allocations and is determined at the time of regional projects preparation and also depend on whether there are any regional institutions that receive IDA financing on grant terms through these projects. The grant eligibility of each participating country in a regional project is based on that country’s risk of debt distress: for high and moderate risk of debt distress countries, top-up funding from the Regional Program is provided on 100 percent or 50 percent grant terms, respectively. b/ The terms of IDA credits vary by country (regular, small economy or blend terms), based on each participating in a regional operation country's IDA classification in FY18 (see Annex 2 of Bank Directive "Financial Terms and Conditions of Bank Financing" for FY18. 5. Refugee Sub-Window (RSW) Allocations. At the beginning of IDA18, the World Bank established a new SDR1.4 billion Refugee Sub-Window to provide financing for projects targeting refugees and their host communities during IDA18 period.9 The notional regional allocation (Table 4) was determined based on the number of refugees in IDA countries eligible for support under this sub- window at the beginning of IDA18 replenishment cycle. Table 4. FY18 IDA Allocations under the IDA18 RSW a/, b/ RSW Allocations Region (SDR million) Africa 331.8 East Asia and the Pacific 0.8 Europe and Central Asia 0.0 Latin America and the Caribbean 0.0 Middle East and North Africa 20.4 South Asia 113.7 Total RSW 466.7 Notes: a/ The breakdown of funding for RSW into credits and grants is not available at the time when allocations are determined. The grant eligibility of RSW-eligible countries is based their risk of debt distress at the beginning of FY18: for high risk of debt distress 9 For details on the RSW, see Annex 5 of IDA18 Deputies Report “Additions to IDA Resources: Eighteenth Replenishment. Towards 2030: Investing in Growth, Resilience and Opportunity”. -8- countries, top-up funding from the RSW is provided on grant terms while for moderate and low risk of debt distress countries top- up funding is provided on 50 percent grant and 50 percent in applicable credit terms. Blend and IDA-only Gap countries are eligible to receive grants under the RSW (subject to Board approval). b/ The terms of IDA credits vary by country (regular, small economy or blend terms), based on a country's IDA classification in FY18 (see Annex 2 of Bank Directive "Financial Terms and Conditions of Bank Financing" for FY18. 6. Crisis Response Window (CRW) Allocations. Table 4 provides the FY18 country allocations funded through CRW.10 As shown in the table, CRW resources of approximately SDR251 million (equivalent to US$350 million) were made available to Dominica, Mongolia, Tonga, and Yemen in the context of the Bank’s response to four separate crises in FY18. Table 5. FY18 IDA Allocations under the IDA18 Crisis Response Window CRW Allocations Country Region (SDR million) Dominica LCR a/ 35.0 Mongolia EAP b/ 58.0 Tonga EAP c/ 13.8 Yemen, Republic of MNA d/ 144.0 Total CRW 250.8 Notes: a/ Dominica: CRW resources in the amount of US$50 million (about SDR35 million) were allocated to support emergency recovery and reconstruction from the impact of hurricane Maria, which struck the country on September 18, 2017. b/ Mongolia: CRW resources in the amount of US$80 million (about SDR58 million) were allocated to provide emergency support as the country was experiencing the adverse effects of the commodity price shock. c/ Tonga: CRW resources in the amount of SDR13.8 million (about US$20 million) were allocated to support the response to tropical cyclone Gita, which struck the country on February 12, 2018. d/ Yemen, Republic of: CRW resources in the amount of SDR144 million (about US$200 million) were allocated to support cholera response in Yemen through the second Additional Financing to the Yemen Emergency Health and Nutrition Project (EHNP). 7. Scale-up Facility (SUF) Allocations. The World Bank established an IDA18 Scale-up Facility, or SUF, of US$6.2 billion (about SDR4.4 billion) to finance additional high quality, transformational operations to be delivered during IDA18.11 Table 5 shows that regional allocations available for commitment under the facility in FY18 stood at US$2.1 billion. 10 For details on the CRW, see Annex 7 of IDA18 Deputies Report “Additions to IDA Resources: Eighteenth Replenishment. Towards 2030: Investing in Growth, Resilience and Opportunity”. 11 For details on the SUF, see Annex 6 of IDA18 Deputies Report “Additions to IDA Resources: Eighteenth Replenishment. Towards 2030: Investing in Growth, Resilience and Opportunity”. -9- Table 6. FY18 Regional Allocations under the IDA18 Scale-up Facility a/ SUF Allocations Region (US$ million) Africa 1,349.6 East Asia and the Pacific 131.3 Europe and Central Asia 73.3 Latin America and the Caribbean 36.3 Middle East and North Africa 0.0 South Asia 476.3 Total SUF 2,066.7 Notes: a/ Commitment authority under the IDA18 SUF was approved by Executive Directors in US dollar terms.