The World Bank differs from the World Bank Group, in that the World Bank comprises only two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), whereas the latter incorporates these two in addition to three more: International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID).
The World Bank is like a cooperative, where its 187 member countries. They meet once a year at the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund. Because the governors only meet annually, they delegate specific duties to 25 Executive Directors, who work on-site at the Bank.
Relationship between Bulgaria and World Bank
History of relationship [2]
Since 1990 the World Bank actively supports developing of Bulgarian economy. During the nineties the Bank's support focused mainly on Bulgaria's transition from a highly centralized socialist economy to build the foundations of market economy and a stable macroeconomic framework. Since 1998, the Bank's support is associated with structural and institutional reforms undertaken by the government came after the crisis. These reforms laid the foundation of strong economic growth. The Bank initially focused on restructuring the financial and real sector, agriculture, social security and environmental footprint through a series of loans for sectoral restructuring, accompanied by investment loans. Partnership Strategy with Bulgaria, which covered the period from 2003 to 2005 financial years, extended using the Bank's reforms and the process of accession to the EU through a series of three multi-Programmatic Adjustment Loan (PAL) [3] , accompanied by investment projects and analytical - consultancy activities. Total amount of money provide to Bulgaria through loans and funding is 2.1 $ billions, 64% of this money are in form of loans for restructuring and modernization. Three Programmatic Adjustment Loan, amounting to a total of 425 $ million during the period between 2003 and 2005 financial years, were submitted in support of the vast program of the government and are based on five complementary and mutually reinforcing pillars: (1) continuation of structural reforms in real sector with particular udarenievarhu infrastructure, (2 ) create an enabling market development environment, (3) improving the financial system, (4) improving public sector governance, and (5) investing in human capital and strengthening social protection. At the end of the program two or three out larger-scale targets were exceeded, and 28 of the original 31 program indicators were met.
In the same time many other smaller project were moved forward with accordance to Partnership Strategy with Bulgaria(PSB). PSB included a package of seven investment loans totaling 300 million USD, of which only three were approved with a total value of 118.4 million USD (For activities related to district heating, social investment and employment and reform of revenue administration). In addition, they were approved four investment projects for grant funding from Global Environment Fund and the Prototype Carbon Fund (GEF / PCF) totaling 17.0 million USD Reasons for Failure to other World Bank projects include: (1) conservative management of public debt, which limited foreign borrowing for all investment projects, although it was given some fiscal room for several projects with political significance - for example, "Belene" ( 2) the complexity of the proposed sectoral reforms (forestry), and (3) the failure of previous projects (the program loan for the modernization of education (APL2). The actual debt financing under the CAS Bulgaria amounted to 543.4 million USD (73% of the 750 million USD to finance the Strategy), of which 78% were for the PAL with a rapid drawdown.
International Finance Corporation (IFC) which active work in corporate and financial sectors in March 2006 active project in Bulgaria portfolio had 15 active projects and institution provided a total of 267 million USD and additional U.S. $ 75 million in form of bank grants. Projects in the manufacturing sector and service sector represents about 80% of the portfolio of the IFC, the investment in several key areas such as assembly of electronic products, manufacture of wood panel and paper, post-privatization restructuring of the company for steel, the financing of two major factory for the production of glassware, project retail and investment in first class hotel. IFC provided help in financial sector to two Bulgarian Banks that’s working with small and medium enterprises, established the first bank for microcredit in Bulgaria, assisted the largest bank in the country and invest in a venture capital fund aimed to provide loans to small and also medium enterprises. Supporting the development of a strategy for a competitive market in the country in the wholesale energy, IFC provided technical assistance to the Ministry of Economy and Energy and the National Electricity Company (NEC).
Active projects in Bulgaria
Project name
Country
IBRD / IDA
Condition
Approval Date
ROAD INFRASTRUCTURE REHABILITATION PROJECT
Bulgaria
122.5
Active
26-JUN-2007
Municipal Infrastructure Development
Bulgaria
118.7
Active
24-NOV-2009
Social Inclusion Project
Bulgaria
59
Active
26-JUN-2007
Second Trade and Transport Facilitation Project
Bulgaria
52.8
Active
21-MAR-2007
WOOD RESIDUE TO ENERGY
Bulgaria
0
Active
08-JUL-2004
DISTRICT HEAT (PCF)
Bulgaria
0
Active
24-SEP-2003
