The grant money would help the impoverished Caribbean nation recover from a massive 7.0-magnitude quake on Tuesday that caused extensive damage and casualties, the bank said in a statement.

"This is a shocking event and it is crucial that the international community supports the Haitian people at this critical time," Robert Zoellick, president of the multilateral development lender, said in a statement.

"The World Bank is mobilising significant financial assistance and sending a team to help assess damage and reconstruction needs. Our thoughts are with the people of Haiti, our staff, and our UN colleagues."

The funding is subject to approval by the institution's board of directors, said the 186-nation bank, headquartered in Washington. The statement did not provide a date for the board decision.

The World Bank noted that its International Development Association had extended USD 308 million in interest-free loans to Haiti since 2005. The bank currently has 14 main projects there, including disaster risk management.

Zoellick said the bank would use its existing projects in Haiti, including those that focus on education and community-driven development, "to provide assistance quickly and effectively."