Organization
IFC
Report Year
2015
1st MAR Year
2016
Accepted
Yes
Status
Active
Recommendation

Improve the evidence-base related to electricity access and its alignment with the corporate goals of promoting shared prosperity and ending extreme poverty.
(A) At the project level, (i) design results frameworks for electricity sector projects that go beyond simple headcount measures of accessgrid, off-grid, SHS, end-uses servedto include attributes such as quality, reliability, affordability of service; and (ii) where joint Bank Group projects are undertaken, assess value-added of such joint projects to the private sector and country clients. (B) At sector and country level, help country clients to appropriately enhance their M&E systems, household surveys, census and
similar undertakings to measure and monitor the economic, welfare, and gender-related outcomes from increased electricity access. (C) Across country clients, promote uniformity and comparability in indicators, and help improve country capacity for designing, implementing, and utilizing the
M&E frameworks.

Recommenation Adoption
IEG Level of Adoption by Year: mar-rating-popup SNTNTNT Management Adoption by Year: mar-rating-mng-popup SNTNTNT
CComplete
HHigh
SSubstantial
MModerate
NNegligible
NANot Accepted
NRNot Rated
Findings Conclusions

Monitoring and evaluation show weaknesses in all elements of design and implementation. This weakness is more marked in low- and medium-access countries, largely due lack of indicators, weak baseline data, and inadequate capacity for monitoring. The shortcomings are highest regarding the tracking of economic and welfare outcomes, including gender considerations, but there has been greater recognition of this matter in the World Bank and recent improvements in M&E frameworks in this regard. However, IFC and MIGA do not have any significant provision for tracking the welfare and gender outcomes related to their operations.
Collaboration among World Bank, IFC, and MIGA through joint projects has grown over the years, albeit in an ad hoc manner. Feedback from both internal and external stakeholderspoint to a number of areas for improvement. In order to take effective action in this area, more and solid evidence is needed on the value added as well as on costs and benefits to private sector clients from such joint projects.

Original Management Response

IFC: Partially Agree. Management is committed to advance the evidence on results and impacts of electricity access, including its contributions to the WBG goals of ending extreme poverty and promoting shared prosperity. To this end:
(i) The Bank will apply the SE4ALL Multi-Tier Framework for measuring electricity access. The framework will be used to: (a) measure country progress towards universal access under SE4ALL; and (b) track project contributions, starting with a pilot group of energy operations to be implemented in FY16, and expanded afterwards. In addition, efforts will be made to facilitate the adoption of the framework by other parties to ensure consistency of reporting under SE4ALL and to assist clients to adopt a simplified version for their own tracking.
(ii) The Bank will continue mainstreaming impact evaluations in the selected energy access operations.
The specific recommendation to assess "value-added" of WBG joint projects to the private sector clients and the countries would not be feasible in the absence of counterfactuals and the absence of a WBG-wide methodology for such an assessment.
IFC will continue to implement across sectors its eight-point action plan that resulted from IEG's evaluation on IFC's Poverty Focus, over a three-year timeframe. IFC will carefully take stock on its evidence-base in relation to the corporate goals across sectors and examine and discuss the next steps for improvement.

Action Plans
Action 1
Action 1 Number:
0354-01
Action 1 Title:
Action 5: IFC to conduct evaluations of select power sector interventions with the objective of upgrading knowledge of electrici
Action 1 Plan:

Action 5: IFC to conduct evaluations of select power sector interventions with the objective of upgrading knowledge of electricity sector contribution to economic growth and job creation
Indicator 3: Number of evaluations related to electricity access and economic growth / job creation.

Baseline: 2 evaluations

Target: 4 evaluations

Timeline: FY 19

Action 2
Action 3
Action 4
Action 5
Action 6
Action 7
Action 8
2019
IEG Update:
No Updates
Management Update:
No Updates
2018
IEG Update:
No Updates
Management Update:
No Updates
2017
IEG Update:
No Updates
Management Update:
No Updates
2016
IEG Update:

IEG notes IFC's efforts that have been underway for some years, to better understand the economic impacts of its interventions in the power sector. IEG also notes the launch of an impact evaluation for Turkey, a high/universal access country. However, given the focus of the WBG's efforts in electricity access, it would useful to know IFC's plans and progress in similar exercises in low access countries and a timeline for these efforts.

Management Update:

IFC is committed to working on innovative approaches to better understand the economic impacts of its interventions in the power sector. As part of this effort, we have undertaken two broad streams of work over the past few years. First, a practical, input-output tool has been developed to quantify ex-ante economic growth and job creation effects of power projects for 20 selected countries. The country selection was based on: (a) number of current and historical IFC investment projects into the power sector of a specific country, (b) number of upcoming power projects in a specific country (based on the information from the pipeline), and (c) availability of recent Input-Output tables in the GTAP database for a specific country. We are now using this tool to estimate economic multipliers of IFC investments in the power sector and the estimates have been presented in Board Papers to illustrate the expected economic growth and employment impacts. Secondly, in depth ex-post evaluations of IFC in the power sector usually in cases where IFC has engagements at the sector level in a country. In FY16, IFC launched an economic impact evaluation on its investments in the power sector in Turkey where IFC made investments on both generation and distribution sides. IFC investments into the generation capacity represents about 5 percent of the country's installed capacity. The main objective of the study is estimate the direct, indirect and induced effects of increase in power capacity on employment and GDP and this study is expected to be completed by the end of September 2016. In addition, IFC has undertaken a literature review of about 82 evaluations of major power sector projects to assess how power sector projects can potentially contribute to growth and job creation. Based on this, we have successfully reached three out of four evaluation targets.