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p. 15 of 30 BACK | NEXT Executive Summary I. The Setting II. Key Variables Affecting Project Quality A. The Approval Culture B. Ownership C. Quality of Macro and Sectoral Analyses D. Portfolio Management E. Institutional Capacity Assessment F. Beneficiary Involvement in Preparation and Implementation G. Evaluation of Risks/Sensitivity Analysis H. Clarity and Implementability of Project Design I. Role of the Bank in Project Administration J. Responsibility for Project Quality K. Major Themes in Project Quality Analysis III. Assessment of Current Bank Practices and Areas for Improvement IV. Findings, Recommendations and Action Plan V. Implications and Monitoring Arrangements

Report of the Task Force on Improving Project Quality : II. Key Variables Affecting Project Quality

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I. Role of the Bank in Project Administration

39. In-house views on the degree of the Bank's responsibility for project implementation are not unanimous. The Bank's role in project preparation is perhaps clearer, and in fact the Bank may be taking too much accountability for preparation — at the expense of greater government and beneficiary involvement. In implementation, views range from an attitude that considers the project the complete responsibility of the government, with the Bank's role restricted to simply monitoring progress, to a strong interventionist and/or supporting role that actively involves the Bank in guiding project implementation. The Task Force considers that, where the local institutions lack capacity, the Bank should take a more proactive role in implementation. Such a role, however, should take account of the need to use each project to strengthen government agency capacity and ownership, so that as the project progresses, Bank involvement can be appropriately scaled down.

40. The Task Force has also noted that the Bank's corporate culture gives higher priority to project preparation and related loan approvals than to project administration activities. This preference is reflected in the extent of resources made available for one activity as against the other, the relative recognition given to staff involved in these separate activities, and the degree of Management time devoted to monitoring and guiding portfolio management.

41. The Task Force considers that Management will need urgently to signal its recognition of the importance of project implementation and to redefine the Bank's role therein. This will need to be followed by a full review of the roles of the Projects and Programs Departments in project implementation, the role of the CPSO and that of the Regional/Resident Offices (ROs). Further, action will be required to strengthen resources and incentive systems for project administration, and creative options may need to be considered to enhance implementation effectiveness — such as in-country project advisors, simplification of project administration procedures and greater delegation to government agencies -albeit with stronger advisory support from the Bank where necessary.

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