Countries and Regions

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p. 7 of 7 BACK | NEXT Executive Summary I. Development Agenda II. ADB's Development Experience III. ADB's Strategy IV. Operational Approach V. Three-Year Assistance Program VI. Performance Monitoring and Evaluation

Country Strategy and Program 2002-2004: Lao People’s Democratic Republic

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VI. Performance Monitoring and Evaluation

A. Agreed Upon Performance Indicators

86. The CSP will have sustainable impact if the poverty reduction partnership agreement between the Government and ADB makes tangible progress. Detailed monitoring indicators have been developed in the partnership agreement. Key triggers for the performance-based resource allocation have been selected from the monitoring indicators in the partnership agreement.

87. A base case scenario would be triggered by (i) a stable macroeconomic outlook; (ii) formulation of and commitment to a SOCB restructuring plan and implementation of agreed upon interim measures; (iii) enactment and implementation of the prime minister’s decree on social and environmental impact assessment; and (iv) implementation of monitoring systems for contract award, submission of audited financial reports, and compliance with loan covenants. The high case scenario would be triggered by (i) significant improvement in macroeconomic management; (ii) implementation of restructuring plan of the banking sector and rural finance; (iii) significant improvement in the balance between capital and recurrent expenditures in social development; and (iv) significant improvement in contract award, submission of audited financial reports and compliance with loan covenants. The proposed lending scenarios and triggers are in Appendix 5.

B. Monitoring Process and Plan

88. The CSP’s progress will be reviewed annually by the Government and ADB through a country confirmation mission, based on the triggers and detailed monitoring indicators listed in the poverty reduction partnership agreement. Analysis and findings of the annual monitoring review will be jointly prepared by the Government and ADB. ADB’s project review missions will regularly assess the development impact of individual investments through consultations with the agencies concerned and intended beneficiaries. LRM will facilitate the collection of data and information for the monitoring process. The annual programming exercise will explicitly address the need to update the CSP to reflect any major changes in the development environment. In particular, progress in key sector-level policy and institutional development will be reviewed. Adequate resources are needed to strengthen ADB monitoring of the CSP and individual investments.

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