The World Bank has defended its $75 million loan to Edo State Government,
saying it grants significant funding only to governments it trusts will
use the funds judiciously to achieve its development results.
Speaking yesterday at a 3-day retreat for members of the State Executive
Council and Permanent Secretaries holding at the Transcorp Hilton Hotel,
Abuja to brainstorm and re-strategise on raising the bar on governance in
the state, with the theme, “Finishing Well”, two top executives of the
World Bank, Mrs Gloria Joseph Raji and Dr Khwima Nthara said the Bank
trusts Edo State Government to use the fund properly as it only provides
support to governments the Bank trusts to use its funds for development
results.
The Bank executives said “Each time we came to Edo, we were quite
impressed that we were taken around to see the results of these reforms
and that is why it was easy for us at the world Bank to sell the reforms
programmes in Edo to our Board in Washington.”
Mrs. Gloria Joseph Raji, Senior Economist, Macro-Economic and Fiscal
Management, World Bank, Nigeria said, “through programmes for result
financing, the World Bank provides finance for governments with a focus on
result and capacity building. So disbursement of funds is based on
specific program results that have been pre-agreed on between the bank and
respective governments.
“For example, we could say, if you achieve this level of vaccination with
your own resources, then we will disburse some money to you”.
Mrs. Joseph-Raji continued, “When we disbursed $75 million under the First
Developmental Policy Operation to Edo State, we did not say to Edo State,
you must use it to build this hospital, or this school or all of that, it
was on the basis of your completion of critical policies and institutional
actions which we call ‘prior actions’.
“So, the focus of Developmental Policy Financing is policy and
institutional reforms. We work with you to implement certain policies and
institutional reforms and on the basics of implementation of certain
critical reforms and actions that we agreed on, we will disburse the
entire trunk of the funds.”
She emphasised the need for institutional reforms as this she says, ensure
continuity of government developmental programs even after their tenure.
She said, “Institutional reforms are very important because they outlived
government regimes so, it is important for governments to undertake
reforms of their systems and processes, institutionalized them and that is
what the focus of DPO are, to support policies and institutional reform
efforts and the bank is usually on hand to provide Policy and strategic
advice, so we work with the governments in designing, in thinking through
your policy and institutional reforms actions and then we provide advice
as necessary.
“On the basis of the completion of certain critical policies and
institutional reforms actions which has been agreed between you and the
Bank, the loan is approved by the bank and so, funds are being
transferred. The entire trunk of funds is transferred into the government
bank account and they are co-mingled with your other funds. The funds are
not tied to specific projects, you co-mingled them into your funds and you
spend them on your needs.”
She stressed, “The Bank provides significant funding to only governments
it trusts will use the funds properly to achieve its development results
because if we do not trust that you will use this fund judiciously, it
would be a risk of the fund. So DPO’s are provided basically to those
governments that the Bank trusts to use the funds for development
results”.
Also speaking, the Programme Leader, Equitable Growth, Finance and
Institution, World Bank, Nigeria, Dr Khwima Nthara said, “reforms have to
be institutionalized. Edo is very lucky today to have a very reform minded
Governor, next year, he leaves office. We pray that a like-minded Governor
takes over from him but circumstances change, you don’t know who else is
going to come with the Governor and that is why it is important to
institutionalize reforms so that they should transcend individual
personality.
“Even when Comrade Adams Oshiomhole is not here, his legacy should remain,
not just what he has achieved, but the building blocks of the reform
programs must remain so that even when the regime changes, the reforms
might stay. That is why institutionalizing those reforms are important.
“Each time we came to Edo, we were quite impressed that we were taken
around to see the results of these reforms and that is why it was easy for
us at the world Bank to sell the reforms programmes in Edo to our Board in
Washington.
The World Bank team noted that of the 36 states of the federation, only
Lagos and Edo State Governments as well as the Federal Government have
been able to access this developmental funds and therefore called on other
state governments to embark on critical, efficient and Developmental
reforms project to enable them quality for the World Bank Developmental
funds