IDA18 Overview

Responding to heightened global ambitions and escalating risks, IDA18 presents a paradigm shift in how it mobilizes finance to help IDA clients achieve their development goals. The IDA18 replenishment is the largest in IDA’s 56-year history and heralds a significant step change in its policy and financing framework. IDA18 was finalized in December 2016 and will finance projects over the three-year period from July 1, 2017 to June 30, 2020.

IDA clients face a myriad of complex and interrelated challenges in the new global economy, calling for innovative approaches to development. These challenges call for a new IDA, underpinned by a transformational, ambitious policy and financial package. The IDA18 package responds to the calls from the G20 and international community for the World Bank Group to innovate and do everything it can to be a critical implementation agent for achieving the 2030 Agenda.

IDA18 participants agreed to an array of measures to help IDA clients achieve their ambitions, including:

  • Double financial support in aggregate for countries facing current or rising risks of fragility;
  • Increase support to strong performing countries and non-fragile or conflict states, who would continue to receive the bulk of IDA financing (nearly 65% of core IDA);
  • Significantly increase financing for the regional program, where demand for resources to expand regional integration and infrastructure has consistently outstripped supply;
  • Establish a sub-window for refugees and host communities, within a regional program, to provide a dedicated source of funding for host governments struggling to meet the needs of both refugees and their host communities;
  • Expand financing to promote resilience through crisis preparedness and response, through an enhanced Crisis Response Window, including aligning governance arrangements for responding to economic shocks with the process in place for natural disasters and health emergencies.
  • Expand instruments available for crisis preparedness and response, by introducing the Catastrophe Deferred Draw-Down Option (Cat DDO) for IDA countries in response to the demand for contingent financing mechanisms;
  • Introduce an IFC-MIGA Private Sector Window (see implementation Board paper) to mobilize increased private sector investment in IDA countries, especially in fragile and conflict states, through unprecedented collaboration among IDA, IFC and MIGA to scale up their work in the most challenging markets;
  • Increase non-concessional financing available for transformational projects, through the IDA18 Scale-up Facility (SUF), to meet the very strong client demand; and
  • Provide transitional support for IDA18 graduates (Bolivia, Sri Lanka and Vietnam), which still have significant poverty and lingering vulnerabilities, while facing a drop in World Bank financing.