project management in wb_nov30

8/3/2019 Project Management in WB_Nov30

1/25

Nov 30, 2009

Project Management ofWorld Bank Projects


2/25

1

CONTENTS

The Banks Overview

The Project Cycle The Challenges


3/25

World Banks Overview

The World Bank Group, among the world s largest developmentinstitutions, is a major source of financial and technicalassistance to developing countries around the world.

Finances international projects on trade, finance, health, poverty,education, infrastructure, governance, climate change etc

In fiscal 2009, the World Bank Group sponsored 767 projectswith a total commitment of $58.8 billion, distributed in financialassistance.


4/25

The Banks Objectives

Reduce poverty, and Stimulate economic growthProvide Capital and Knowledge ServicesManage resources (trust funds)Invest in peopleBuild client capacityPromote economic reformStimulate private sector growthProtect the environment

Fight corruption


5/25

Lending by SectorFY70 and FY09

Agriculture 20%

HumanDevelopment

4%

Multisector 3%

Infrastructure 58%

Finance/PSD 15%

FY70 FY09


6/25

International capitalmarkets

Todays Lending Context

Domestic private sector& capital markets

Country

Financial instruments Loans

Guarantees

Knowledge instruments Analytic/ESW Advisory/TA

IMF

BilateralsMultilaterals

Bank

Civil Society

Organizations


7/25

The Banks Current Business Approach

Client in driver s seat

Partnerships

Comprehensive diagnosis, strategic selectivity

Concentration on poverty

Accountability and focus on outcomes/results


8/25

The Banks Business Products

Lending ProductsManage financial resources (trust funds)and provide grantsDonor CoordinationKnowledge Products & Services

Research products

Technical assistance


9/25

Functions of Knowledge Services

Analytical/strategic basis for Bank/country dialogue &lendingTechnical advice

Knowledge disseminationLending Project preparationCountry capacity building


10/259

CONCEPTUAL

Banks projects follow a predefined life cycle

Board

EvaluationIdentificationandPreparation

AppraisalandNegotiation

SupervisionC A S


11/2510

REAL EXAMPLE

The Country Assistance Strategy spans a period of 3 4 yearswith defined goals and means

Starts from a country-owned development vision and strategy

Includes a diagnosis of the country s development situation,carried out in consultation with the Government and other partners,and drawing on their work

Sets out a selective Bank Group program, reflecting the role thatthe Government requests the Bank to take with respect to its otherpartners

Provides a monitoring and evaluation framework to assess results


12/2511

REAL EXAMPLE

Functions of the CAS

A business plan

A summary assessment and diagnostic of the country

A precise internal covenant to manage creditworthiness andexposure

A memorandum of understanding on the Bank s work between theBank and the government

An accountability tool to measure whether results have beenachieved

An instrument for disseminating and advertising the Bank s role


13/2512

During the Identification and Preparation phase, CAS goals aretranslated into a Project Concept Note

Board



Implementationand SupervisionC A S

Translation of the Country Assistance Strategy intoactionable projects

Intensive discussions with the Countrys Governmentofficials to define projects scope, length, and specificcomponents

Initial preparation of a Project Concept Note (PCN),Concept-stage PID with the participation of internal peerreviewers (3 to 5 per project) and circulated within theBank


14/25

13

The Appraisal and Negotiation phase further details the projectin order to go to the Board

Board



Implementationand SupervisionC A S

Components of the PCN are further decomposed into activities,each activity is scheduled for its length and its cost appraised

The project is evaluated by the Quality Assurance Team, andenvironmental, social protection and indigenous peoplesafeguards are applied

The overall project is detailed in a Project Appraisal Document(PAD) of 100+ pages, the base of the project from now on

The Loan Agreement is negotiated with the Countrys

Government


15/25

14

In the Bank, the Board is the key decision instance

Board



Implementationand Supervision

C A S

The Board represents the Governments of the countriesthat are members of the Bank (~150) through the differentChairs

All projects go through the Board, some on fast-track andsome require intensive discussion A typical Board session will take 1 hour where the Chairs

make questions that are answered by the Task Manager ofthe project


16/25

15

After Board and Government Approval, the project becomeseffective and it is actively supervised by the Bank

Board



ImplementationandSupervision

C A S

After Board Approval, the project is signed by theCountrys high authorities and then locally approved,typically by the Congress, a process that takes 6 to 12months

When all conditions in the PAD are satisfied, the projectbecomes effective and begins to disburse

The Task Manager supervises the project making sure thatBank policies are fulfilled, particularly in procurement ofgoods and consulting services

During the life of the project, it is periodically evaluatedthrough the Implementation Status Reports (ISR)


17/25

16

After closing of the project, it is independently evaluated and theresults are included in the ICR

Board



ImplementationandSupervision

C A S

When project closes, it is independently evaluated toassess at which degree the goals have been attained

The independent evaluation is consolidated into anImplementation Completion Report (ICR)


18/25

17

In summary, the Project Cycle in the Bank has some distinctivecharacteristics

Lengthy preparation involving the Government as well asmany internal areas of the Bank

The Board is actively involved in project decisions Projects are actually carried out by the Countries, the

World Bank supervises compliance with its rules

Major effort is underway to reform the Banks investmentlending model so that it responds better to borrowersneeds and the changing global environment (e.g. single,flexible instrument that can encompass rapid responseand emergency operations)


19/25

18

CONTENTS

The Region

The Project Cycle

The Challenges

I l i f B k P j h ll d


20/25

19

Implementation of Bank Projects poses challenges compared totypical private sector projects

Poverty reductionand development,difficulty in

measurement

The clientGovernment and

its internalinstitutions,Developedcountries, NGOs,several internalbodies

The Bank

Partners

Clearly defined:Client satisfactionfor generation of

income

The client

Private Sector

Goals

I l t ti f B k P j t h ll d t


21/25

20

Implementation of Bank Projects poses challenges compared totypical private sector projects (Cont.)

10,000+ people,matrix structurewith multiple

internal bodies

Multiple internalprocesses

The Bank

Processes

Streamlinedtowardsachievement of

the goal

Streamlinedtowards

achievement ofthe goal

Private Sector

Organization

Lessons Learned


22/25

21

Clear identification of the problem

Project concept and objectives are based on stakeholder

consensus and Borrower priorities obtained through stakeholderassessments and national working groups

Complexity of clients institutional structure (# of players,organizational structure)

Identify the roles of the various players in the clientsintergovernmental framework

Serious consideration of/and planning for the coordinationnecessary for successful implementation.

Incentives

Incentives (rewards) more important than punishments for non-compliance

Lessons Learned


23/25

22

Pilot interventions

Implementation procedures are tested under pilot interventions

with limited scope prior to expansion of the program to nationwideimplementation

Absorptive capacity of client

Implementation of socio-economic reforms requires large range ofgovernment institutions, and are highly technical (requiring specializedinformation)

Overall governmental institutions skills set & ability to implementpolicies is essential for understanding and implementation

Dedicated funding for capacity-building , or follow-on activities.

Linguistic Distance (from English)

There are cases where language differences do not matter as much

This emphasizes the prevailing English-based global cultures,especially in technical domains

Lessons Learned


24/25

23

Resource capacity, cost of implementation

Project should be built on a realistic assessment of implementation

capacity is essential

One TTL described the difficulty in aligning the necessary parts:the right resources, the right project timing, the right team.

Political considerations

Political change can slow down and even paralyze projectimplementation

Continuous and wide public dissemination of project objectivesand gains might provide a partial insulation from political andbudgetary fluctuations.

Actionable Information

Actionable information (or guides) refers to knowing how to dosomething through description of a task or procedures steps.


25/25

Main Lending Instruments: Investment andDevelopment Policy

Investment LendingProvides financing for specific expenditures, activities,or outputsFinances capital investment, institutional development,sectoral and local capacity buildingAppropriate when achieving objectives requires inputs tobe linked to outputs

Development Policy LendingProvides quick disbursing policy-based financing insupport of a borrower

s program of policy andinstitutional actionsProvides funding directly into the country s overallbudget

project management in wb_nov30

Documents