Performance-Based Agreements : Incorporating Performance-Based Elements into Standard Loan and Grant Agreements, A Technical Guide
All donors and investors use contracts to establish legal relationships with the partners they fund. Typically, these contracts define the permitted use of the funds and include general suspension or termination clauses. Unfortunately, many agreeme...
| Main Authors: | , , |
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| Format: | Pre-2003 Economic or Sector Report |
| Language: | English en_US |
| Published: |
Consultative Group to Assist the Poor/The World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2010/01/16426360/performance-based-agreements-incorporating-performance-based-elements-standard-loan-grant-agreements-technical-guide http://hdl.handle.net/10986/12805 |
| Summary: | All donors and investors use contracts
to establish legal relationships with the partners they
fund. Typically, these contracts define the permitted use of
the funds and include general suspension or termination
clauses. Unfortunately, many agreements do not include
project-specific performance targets and do not define
sanctions for failure to deliver minimum performance against
those targets. This technical guide presents the rationale
for the use of performance based agreements (PBAs) and
suggests ways to incorporate performance based targets and
incentives into existing loan and grant agreements. The
focus of this guide is PBAs for retail financial service
providers, but some of the advice can be applied to other
nonretail projects as well. |
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