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Sri Lanka: Second Community Water Supply and Sanitation Project (PPAR)

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This Project Performance Assessment Report (PPAR) assesses the development effectiveness of the Second Community Water Supply and Sanitation Project in Sri Lanka. The objective of the project was to increase service coverage and achieve effective and sustained use of water and sanitation services in rural communities in Sri Lanka. Project ratings were as follows: outcome was moderately Show MoreThis Project Performance Assessment Report (PPAR) assesses the development effectiveness of the Second Community Water Supply and Sanitation Project in Sri Lanka. The objective of the project was to increase service coverage and achieve effective and sustained use of water and sanitation services in rural communities in Sri Lanka. Project ratings were as follows: outcome was moderately satisfactory, risk to development outcome was substantial, Bank performance was moderately satisfactory, and Borrower performance was moderately satisfactory. Lessons from this report include: (i) Lack of continuity in M&E and its utilization by an implementing agency beyond project completion undermines sustainability of development outcomes. (ii) Technical soundness of initial design and quality of construction affect performance of CBOs. (iii) Strong a115781nd consistent institutional and technical support is needed to achieve sustainable service delivery in CBO schemes. (iv) Proactive and adaptive project supervision in response to exogenous events can help safeguard project efficacy.

Colombia: Business Productivity and Efficiency Development Policy Loans I-III (PPAR)

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This Project Performance Assessment Report (PPAR) evaluates the Colombia Business Productivity and Efficiency Loans, a programmatic series of development policy loans (DPLs) to Colombia implemented in FY06–11. The DPL series had two development objectives: (i) facilitating the operation of businesses and promoting investments to boost productivity and employment levels and (ii) consolidating the Show MoreThis Project Performance Assessment Report (PPAR) evaluates the Colombia Business Productivity and Efficiency Loans, a programmatic series of development policy loans (DPLs) to Colombia implemented in FY06–11. The DPL series had two development objectives: (i) facilitating the operation of businesses and promoting investments to boost productivity and employment levels and (ii) consolidating the financial sector and capital markets as pillars of economic growth to address the needs of individuals and the productive sector. The objectives were highly relevant to country conditions both at the time of entry and closing, and well aligned to government and World Bank Group strategies. Ratings for Business Productivity and Efficiency Development Policy Loans I-III were as follows: outcome was moderately satisfactory, risk to development outcome was moderate, Bank performance was moderately satisfactory, and Borrower performance was satisfactory. Lessons include (i) The experience of this DPL program suggests that in-depth knowledge and government buy-in are essential in Colombia for designing reform programs with substance. (ii) Staggering interventions by policy areas presented trade-offs between the breadth and depth of the program.

Cambodia: Demand for Good Governance Project (PPAR)

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This Project Performance Assessment Report (PPAR) assesses the Demand for Good Governance (DFGG) Project, which was approved by the Board on December 2, 2008, became effective on June 24, 2009, and closed on September 30, 2014, for a total project cost of $21.42 million. The project development objective (PDO) was to enhance DFGG in priority reform areas by strengthening institutions, supporting Show MoreThis Project Performance Assessment Report (PPAR) assesses the Demand for Good Governance (DFGG) Project, which was approved by the Board on December 2, 2008, became effective on June 24, 2009, and closed on September 30, 2014, for a total project cost of $21.42 million. The project development objective (PDO) was to enhance DFGG in priority reform areas by strengthening institutions, supporting partnerships, and sharing lessons. Enhancing the DFGG Project was further unpacked in the project results framework into four specific objectives: (i) promote, (ii) mediate, (iii) respond to, or (iv) monitor to inform DFGG. Ratings for Demand for Good Governance Project were as follows: outcome was moderately satisfactory, risk to development outcome was moderate, Bank performance was moderately satisfactory, and Borrower performance was moderately satisfactory. The review finds three key lessons: (i) Timely identification of key changes in policy during project implementation can substantially impact project results. (ii) The additional resources and time needed for the direct support to non-state actors to be effective should not be underestimated. (iii) Projects aiming at strengthening accountability should pay more attention to the political economy.

"Cool Markets" for GHG Emission Reduction in a Warming World: Evaluation of World Bank Group’s Support to Carbon Finance (Approach Paper)

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Carbon finance (CF) has been one of the Bank Group’s first and longest engagements for mitigating climate change. Carbon finance as a subcomponent of climate finance is a generic term used for the revenue streams that can be generated by sale of project-based GHG emission reductions or from payments involving carbon sequestration and storage from forests. The World Bank Group launched CF with Show MoreCarbon finance (CF) has been one of the Bank Group’s first and longest engagements for mitigating climate change. Carbon finance as a subcomponent of climate finance is a generic term used for the revenue streams that can be generated by sale of project-based GHG emission reductions or from payments involving carbon sequestration and storage from forests. The World Bank Group launched CF with interest to support development of a global carbon market that will reduce the cost of achieving GHG emission reductions and facilitate sustainable development. The purpose of this evaluation is to assess the role and contributions of the WBG in CF in relation to the needs and priorities of its clients and its potential comparative advantages and draw lessons to inform the WBG’s strategic direction in CF. The evaluation will look at the four dimensions to assess the potential comparative advantages of the WBG in CF. On the WBG portfolio, the focus will only be on the CF portfolio and will not include the broad scope of climate finance. The primary audience for this evaluation is the WBG’s Board of Directors, senior management and staff involved in carbon finance, climate mitigation policy and related operations. Other stakeholders include the donor sponsors providing trust funds to the WBG. These stakeholders will have an incentive to know about the performance and effectiveness of the carbon finance activities, the key drivers of success, how those drivers changed over time, and how future operations can be improved. The evaluation will also be of interest to climate policy evaluation specialists and researchers as well as policymakers and regulatory agencies who want to understand the impact of WBG operations on international carbon finance and how carbon finance operations or similar GHG mitigation policies could be made more effective. Bilateral and multilateral institutions may also be interested to know about what works in carbon finance. Host country governments, civil society and NGOs will also have an interest in this evaluation, especially in terms of how such interventions contribute to reducing GHG emissions and create opportunities for sustainable social and economic development at different levels.

Brazil: Pernambuco Education Results and Accountability Project (PPAR)

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The request for this project was initiated in 2008 by the State Government of Pernambuco and the government of Brazil. At the time, improving education quality, efficiency, equity and sector management were priorities for the State Government of Pernambuco. Challenges at the time of project preparation were the flow of students and the quality of education in fundamental and secondary education, Show MoreThe request for this project was initiated in 2008 by the State Government of Pernambuco and the government of Brazil. At the time, improving education quality, efficiency, equity and sector management were priorities for the State Government of Pernambuco. Challenges at the time of project preparation were the flow of students and the quality of education in fundamental and secondary education, as Pernambuco’s Basic Education Development Index (IDEB) for fundamental and secondary education scores were lower than the Brazil’s overall score according to the Instituto Nacional de Estudos e Pesquisas Educacionais Anísio Teixeira (INEP). The objectives of the operation were to (a) improve the quality, efficiency, and equity of public education; and (b) introduce management reforms that will lead to greater efficiency in the use of the Borrower’s public resources in the education sector. Ratings for the Pernambuco Education Results and Accountability Project were as follows: outcome was satisfactory, risk to development outcome was moderate, Bank performance was moderately satisfactory, and Borrower performance was satisfactory. Lessons include (i) Formidable results (dropout, distortion, student learning) can be achieved, but these results take time and may not be evident within the typical implementation period of a World Bank operation. (ii) The success and sustainability of this operation depends largely on the government’s commitment to (and ownership of) its comprehensive sector program, sector policies, and sector management system. (iii) Assessment data were used for multiple purposes (including pedagogical purposes) and among multiple stakeholders. (iv) Equity objectives require clear definition and measurement and may need additional efforts. (v) Although the reform began before the World Bank was involved, the World Bank added value through transmission of knowledge from experiences and lessons in Brazil and Pernambuco.

IEG Review of Results and Performance of the World Bank Group 2017 With a Special Focus on Environmental Sustainability (Concept Note)

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Results and Performance of the World Bank Group (RAP) is the annual review of what IEG evaluations reveal about the effectiveness of the World Bank Group (WBG), which includes IBRD/IDA, IFC, and MIGA, in addressing development challenges. The report synthesizes evidence from IEG evaluations and learning products complemented by relevant information from other sources (e.g., WBG corporate Show MoreResults and Performance of the World Bank Group (RAP) is the annual review of what IEG evaluations reveal about the effectiveness of the World Bank Group (WBG), which includes IBRD/IDA, IFC, and MIGA, in addressing development challenges. The report synthesizes evidence from IEG evaluations and learning products complemented by relevant information from other sources (e.g., WBG corporate documents). RAP 2017 will be the eighth in a series that began in 2010, and it is the fifth one since IEG adopted the approach of focusing on a specific theme, “Environmental sustainability”. In this report, IEG will draw on both this work and its body of project level evaluative evidence with additional desk-based analyses to provide an overarching picture of how the WBG is addressing environmental sustainability.

Nigeria: National Water Sector Reform Project (PPAR)

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This Project Performance Assessment Report (PPAR) assesses the development effectiveness of the First Nigeria National Urban Sector Reform Project. The project development objectives (PDO) were to increase access to piped water networks in selected urban areas, and improve reliability and financial viability of selected urban water utilities, in Kaduna, Kano, and Ogun States (Development Credit Show MoreThis Project Performance Assessment Report (PPAR) assesses the development effectiveness of the First Nigeria National Urban Sector Reform Project. The project development objectives (PDO) were to increase access to piped water networks in selected urban areas, and improve reliability and financial viability of selected urban water utilities, in Kaduna, Kano, and Ogun States (Development Credit Agreement dated September 2004). The overall development outcome is rated moderately unsatisfactory. Lessons from the project include: (i) In implementing reforms among multiple state and national stakeholders, necessary institutional restructuring and incentive mechanisms should be addressed upfront. (ii) In a federal system, greater and sustained engagement at State executive levels is needed to advance reforms. (iii) Incentives and accountability can help underpin performance improvements. (iv) Reliable and valid monitoring is crucial to improve utility performance and accountability to customers. (v) Prior analytical work helps to formulate a feasible mix of reform and infrastructure investment cycles.

Brazil CLR Review FY12-15

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Brazil is an upper middle-income with a GNI per capita income of $9,990 in 2015. During the review period, Brazil’s annual economic growth declined from 4.1 percent prior to the CPS (2008- 2011) to 0.3 percent during the CPS period (2012-15). This deterioration followed tighter fiscal and monetary conditions during 2010-11 and adverse external trade and financing environments, an unsustainable Show MoreBrazil is an upper middle-income with a GNI per capita income of $9,990 in 2015. During the review period, Brazil’s annual economic growth declined from 4.1 percent prior to the CPS (2008- 2011) to 0.3 percent during the CPS period (2012-15). This deterioration followed tighter fiscal and monetary conditions during 2010-11 and adverse external trade and financing environments, an unsustainable fiscal stance after 2011, and political instability that undermined investors’ confidence. Reduced growth impacted poverty. Brazil achieved an impressive reduction of extreme poverty rates, from 9.9 percent in 2001 to 2.8 percent in 2014. This reduction was associated with a decline in inequality, from a Gini index of 59.3 in 2001 to 51.4 in 2014. However, as a result of lower growth, poverty increased again in 2015 to about 3.4 percent. The extreme poverty rate in rural areas (9.1 percent in 2013) is higher than in urban areas (3.1 percent in 2013). Brazil’s Human Development Index improved from 0.740 in 2011 to 0.754 in 2014, ranking 79th among 188 countries. Government strategies, most importantly the Growth Acceleration and “Brazil Without Poverty” programs sought to address Brazil’s three key development challenges at the time of CPS preparation. These challenges included the need to accelerate economic growth and strengthen resilience to international shocks; to reduce inequality and offer human development opportunities to all, especially women; and to enhance environmental sustainability and resilience. The CPS was aligned with those strategies and focused on providing support to sub-national governments to help enhance implementation of national policies, while also providing knowledge intensive services at the federal level.

Romania: Development Policy Loan with a Deferred Drawdown Option (PPAR)

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This PPAR evaluates the Romania development policy loan with a deferred drawdown option (DPL-DDO). In the fragile postcrisis global economic context, the government requested the €1 billion loan to consolidate fiscal gains, build fiscal buffers, and accelerate structural reforms to boost a sustainable economic recovery. The loan was approved by the World Bank Board of Executive Directors in June Show MoreThis PPAR evaluates the Romania development policy loan with a deferred drawdown option (DPL-DDO). In the fragile postcrisis global economic context, the government requested the €1 billion loan to consolidate fiscal gains, build fiscal buffers, and accelerate structural reforms to boost a sustainable economic recovery. The loan was approved by the World Bank Board of Executive Directors in June 2012 and closed in October 2014 after full disbursement in two tranches: €700 million in mid-October 2013 and of €300 million at the end of June 2014. The objective of the DPL-DDO was to assist the government in meeting the fiscal sustainability goals defined by the European Union (EU) Fiscal Compact. The reform program aimed to (i) improve tax compliance, revenue collection and fiscal discipline, and reduce administrative costs; (ii) improve governance of energy state-owned enterprises (SOEs) and strengthen their fiscal sustainability; and (iii) improve fiscal sustainability of the health sector. An additional objective of the DPL-DDO, which was not explicitly stated as such in the program document or the loan agreement, was to help augment the government’s fiscal buffer as the undisbursed funds of the loan could count toward it. Ratings for the Development Policy Loan with a Deferred Drawdown Option project are as follows: outcome was moderately satisfactory, risk to development outcome was moderate, World Bank performance was moderately satisfactory, and Borrower performance was moderately satisfactory. Lessons from this project include: (i) The success of difficult institutional reforms in the energy sector underscored strong government commitment, which was strengthened by the liberalization roadmap agreed with the European Commission. (ii) More specifically, tax reforms are key to improving tax collection and reducing the compliance burden for taxpayers and businesses, but are potentially threatening to the status quo, which provides wide discretionary powers and rent-seeking opportunities. (iii) DPL-DDOs can be used as an effective mechanism for crisis support, and for supporting a borrower’s medium-term debt management strategy.

Using Evaluation Evidence to Improve the Effectiveness of World Bank Group Involvement in Middle-Income Countries Dealing with Fragility, Conflict, and Violence

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The Independent Evaluation Group (IEG), in partnership with the Fragility, Conflict, and Violence Cross-Cutting Solutions Area (FCV CCSA) organized a regional learning event on March 28, 2017, in Manila, the Philippines, to discuss the implications of IEG’s evaluative findings for enhancing the effectiveness of World Bank Group engagement with middle-income countries dealing with situations of Show MoreThe Independent Evaluation Group (IEG), in partnership with the Fragility, Conflict, and Violence Cross-Cutting Solutions Area (FCV CCSA) organized a regional learning event on March 28, 2017, in Manila, the Philippines, to discuss the implications of IEG’s evaluative findings for enhancing the effectiveness of World Bank Group engagement with middle-income countries dealing with situations of fragility, conflict, and violence (FCV). The event was jointly hosted by the World Bank Group Philippines Country Management Unit and the Asian Development Bank (ADB). Close to 80 participants from across the development spectrum attended the workshop (including World Bank Group and ADB staff, government officials, academics, civil society members, and staff from multilateral and bilateral development partners). This note summarizes the discussions and key takeaways from the workshop for the benefit of the broader development community and other stakeholders. It is intended as a starting point for further discussions related to improving the design and implementation of development programs in FCV situations. It concludes with some learning implications to move this agenda forward.