ICRR 10684 Report Number : ICRR10684 ICR Review Operations Evaluation Department 1. Project Data : Date Posted : 08/10/2000 PROJ ID : OEDID : C2393 P009559 OEDID: Appraisal Actual Project Name : Technical Assistance US$M ) Project Costs (US$M) 35 37.45 Country : Bangladesh Loan /Credit (US$M) Loan/ US$M ) 25 25.52 Sector, Major Sect .: Economic US$M ) Cofinancing (US$M) 5 7.45 Management, Multisector L/C Number : C2393 FY ) Board Approval (FY) 92 Partners involved : Closing Date 06/30/1998 06/30/1999 Prepared by : Reviewed by : Group Manager : Group : Gita Gopal Laurie Effron Ruben Lamdany OEDCR 2. Project Objectives and Components a. Objectives (a) provide GOB with continuing and flexible funding for the preparation of investment projects in general and more specifically for projects related to the IDA lending program; (b) strengthen key GOB agencies responsible for project implementation; and (c) contribute to the attainment of a sound investment program through financing of training and undertaking other related TA activities; b. Components Original component : (a) Project Preparation and Related Technical Assistance Activities : Thirteen sub-projects totaling US$4.9 million from the Fifth Technical Assistance (TA-V); (b) Institutional Development: four new institutional development sub -projects totaling US$5.3 million were identified under TA-VI; 13 sub-projects proposals totaling US$ 14.9 million were under consideration; and (d) other sub-projects were to be identified during project preparation; (c) Civil Works: Carrying out of civil works in relation to the above components . Revised Components : (a) Preparation of Investment Projects : Feasibility studies, preparation of investment projects and TA required prior to project implementation (US$6.85m). (b) Strengthening the Government's Project Administration Capacity : Enhancement of the Govt.'s Technical Assistance Cell at the Economic Relations Division in the areas of coordination and monitoring of implementation (US$0.08m) (c) Development of Local Consulting Profession : Development of policies, drafting standards, providing training and establishing a computerized data base of consultants at ERD (US$ 0.01m) (d) Improvement of Government Audit of Externally Funded Projects : Institutional strengthening, development of audit manuals, development of computerized systems and training (US$0.23m); (e) Institutional Strengthening of the Public Service Reform Commission : Examination reforms, training, research work on changing job requirements and administering strengthening (US$0.81m); (f) Strengthening the Public Investment Program : Consulting services and studies for the Ministry of Communications and other ministries (US$15.11m); and a (g) Safety net: Jute Sector Retraining for Workers in Affected Mills (US$.79m) c. Comments on Project Cost, Financing and Dates This project was expected to finance a number of sub -projects. The sub-projects changed considerably and even in those sub-projects that remained, the financing estimates in the MOP were wrong, and in the case of the larger ones, all revised upwards. The closing date had to be postponed by a year . 3. Achievement of Relevant Objectives : Overall: The project aimed to prepare several Bank -financed projects and to build capacity of implementing units . The TA helped to conduct and prepare feasibility and other plans, based on which a number of large and complex Bank-financed projects were approved and financed . Nevertheless, the review finds that the achievement of objectives was only marginally satisfactory, because the project ultimately financed disparate types of sub -projects (some with questionable quality at entry ), without an overall or cohesive framework for institutional development, decreasing the relevance of the objectives for the country . The status of the only monitorable indicator (limiting the sub-project processing to three months ) is not reported by the ICR. (a) Preparation of Investment Projects : About 50% of the credit (US$11m) went to the preparation of investment projects to be financed by IDA (amounting to about US$800m). This included a number of feasibility studies and other outputs that provided significant input into preparation of some highly complex Bank -financed projects. If Board approval of these projects was a sound development outcome, the objectives have been achieved satisfactorily. (b) Provision of Related Technical Assistance for Institutional Development : Many of the sub-projects met recurrent costs. For example, US$1.18m was spent to facilitate and supervise the construction of a pump station and a road culvert. Provision of about US$1.3m for the institutional development of Tariff Commission was unsatisfactory and built no permanent capacity. Another US$1.5m to the Government Privatization Board for strengthening was considered unsatisfactory by the ICR itself . About US$1m was provided to the Port System Master Plan to prepare a feasibility plan for improving activities . The plan was prepared but the institutional reforms were delayed . There were only few satisfactory sub -projects. Some of the other sub-projects such as the Public Service Commission (US$0.8m) and the computerization of NBR (US$3.6m) were satisfactory in achieving their objectives . (c) Training and other related activities : It is not clear what the objectives were . Procurement training was provided to staff of many ministries, but the most recent upstream document for Bangladesh suggests that procurement continues to be a major problem. While admittedly, the procurement issues can not be solved through this initiative, the TA project was itself beset by procurement issues . One sub-project that worked was the retraining of jute sector employees, 72% of whom found re-employment and increased incomes according to the ICR . (d) Safety Net: One component, costing about 7.5% of the total project costs, trained 22,000 people in the jute industry, which according to the ICR is in bad shape . Although the component met its short term goals, the impact of such training in a sick industry is not clear or discussed . 4. Significant Outcomes /Impacts : A number of IDA-financed projects were financed as a result of the TA . The TA strengthened the Government's Audit Capacity and improved efficiency of the Public Service Commission. It improved the efficiency of the National Board of Revenue through computerization . The development of a Government sponsored Hortex foundation to promote exports of horticultural products in collaboration with NGOs seems to have been successful . 5. Significant Shortcomings (including non -compliance with safeguard policies ): The failure to prepare and establish clear operational guidelines (mentioned in the DCA) in a timely manner was a significant shortcoming. The ICR provides no clear evidence or indicators that many of these sub -projects have actually had a sustainable institutional development impact (in many cases, they financed recurrent costs ) or will be sustainable. For example, the sustainability of ERD TA cell is unclear, and capacity built during the life of the project could be lost. The project was not ready for implementation; all the components had to be revised, shortly after effectiveness. This reflects flexibility, but in revising the component, there is no indication that the project established any targets or monitoring and evaluation benchmarks /indicators, and therefore measurement of outcomes is very difficult, despite the Annex 12 that the ICR team has prepared. 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Marginally Satisfactory Reasons have been given above . Institutional Dev .: Substantial Modest The larger percentage of the credit was for recurrent costs or for preparation of investment projects and did not contribute to any sustainable institutional development impact. Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory Until the project was moved to the Resident Mission in mid-1995, supervision was weak. The satisfactory rating indicates recognition of the Bank efforts after MTR to bring back on track a project that had been ineffectively managed by the Bank. It is also noted that quality at entry was poor. Credit is also given to the Bank for having supported the preparation of other IDA projects, which are mostly satisfactory . Borrower Perf .: Satisfactory Unsatisfactory Although the Government also improved its performance after MTR, as the borrower, they failed to take some key steps and failed to provide the strong management that a project of this nature required: (i) Lack of Government ownership; (ii) Delays in project processing and approval; (iii) Inflexible procedures that were not revised until 1997; (iv) frequent transfer of project managers; (v) inadequate staffing of project offices (a full time project director was appointed only after mid-term; (vi) MIS staff were appointed only after mid-term review. Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : 1. The idea of a 'one-stop' approach to providing PPF may have had value. However, an adequate and comprehensive framework for identification, appraisal, and implementation of sub-projects including an assessment of the capacity of implementing agencies would have considerably enhanced final outcomes. 2. Quality at entry is of critical importance for process projects, and the operational guidelines should be finalized before credit effectiveness. 3. In such projects, which aim to finance a variety of specialized and complex sub-projects, the TTL cannot provide adequate support and must be supported by specialists in the area. Adequate supervision budgets must be provided. 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : The ICR discusses the problems of the project quite candidly . Key Annexes 1 and IV are left incomplete. However, it is noted that due to transfer of responsibilities, many project files were lost and that still the team has spent considerable efforts to put together Annex XII which provides some of the information on outcomes .