ICRR 10038 Report Number : ICRR10038 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: C2371 Project ID : P001752 Project Name : Public Works and Capacity Building Project Country : Mali Sector : Employment L/C Number : C2371 Partners involved : KfW (originally) and CIDA (subsequently) Prepared by : Robert van der Lugt, OEDST Reviewed by : Patrick Grasso, OEDPK Group Manager : Roger Slade, OEDST Date Posted : 08/12/1998 2. Project Objectives, Financing, Costs and Components : To create temporary employment by means of a program of urgently needed small -scale, labor intensive public works; to increase the capacity of the public and private sectors and to improve public procurement . These objectives were to be achieved through a program of labor intensive urban sub -projects (about three quarters of project costs); technical and managerial assistance to small contractors; an information and training program for all beneficiaries and stakeholders; a program to increase grassroots participation in identification and operation and maintenance of sub-projects; and project monitoring and procurement reform . The project was carried out by an autonomous executing agency called AGETIPE (Agence d'Execution de Traveaux d'Interet Public pour l'Emploi [Malian Public Works Agency]). 3. Achievement of Relevant Objectives : Substantial short-term employment was generated and substantial urban infrastructure created in and around Bamako and the 8 regional capitals. The impact on public and private sector development has been substantial . Procurement improvement has been partial and grassroots participation efforts have only had limited success . 4. Significant Achievements : The project was successfully modeled on earlier experiences with public works projects in West Africa . Project implementation was highly successful and introduced a new model for implementing public works through delegated contract management. The model was so successful that other donors, the government and the Bank have entrusted AGETIPE with the management of many other construction programs (the overall AGETIPE program is much larger than the specific IDA /KfW supported project). Technical assistance and training have been successful and the number of construction and engineering enterprises qualified to receive contracts from AGETIPE has risen considerably. Procurement improvement in the public sector has been partial and it will take time for changes to be incorporated into actual practice . On the basis of a sample of sub -projects, their average rate of return is estimated at 17%. 5. Significant Shortcomings : The success of AGETIPE creates the potential for overload and the possibility that more attention will be focused on construction management rather than labor -intensive methods (while the project reached the minimum level of direct employment content, namely 20%, for the overall activities by the agency this was only 16%). The major problem is that operations and maintenance of works completed has been poor sofar . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Highly Satisfactory Satisfactory Achievements have been substantial . But, there are some shortcomings with regard to development results (the actual investments made). Institutional Dev .: Not Applicable Substantial The capacity of Mali to manage human and financial resources improved considerably. Institutional development impact is therefore rated as substantial . Sustainability : Likely Uncertain Sustainability of the institutional process is likely, but largely dependent on continued donor and governmental funding of public works programs . The sustainability of the created infrastructure, as indicated in the ICR and AGETIPE documents, is affected sofar by lack of operation and maintenance. Steps are being taken under the follow-up projects to improve this situation. Bank Performance : Highly Satisfactory Satisfactory The Bank successfully replicated the delegated contract management model . During project implementation it focused on efficiency but in retrospect the project could have given more attention to the grassroots component and operation and maintenance of sub-projects. Borrower Perf .: Highly Satisfactory Satisfactory Similar, the project could have given more attention to grassroots participation and operation and maintenance of sub-projects. Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : The system of delegated contract management works; developing capacity for operation and maintenance of sub-projects is essential; with the growth of the agency there might be need for decentralization and /or replication; speedy payments are essential to build -up the small scale construction industry; and technical assistance is essential to improve the quality of works done by small contractors . 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : The ICR provides good coverage of all the necessary topics, but it could have been strengthened by a more in -depth coverage of the wider activities supported by AGETIPE . More attention could have been given to development results (for example the impact of the sub -projects on the beneficiaries and the impact of the project on the overall employment situation in the country ). A beneficiary assessment was done (Annex C of ICR), and reportedly many of its recommendations have been implemented . However it would have been helpful if the ICR had elaborated in more detail on the outcome and methodology of the beneficiary assessment .