Catalog

	Table of Contents
p. 22 of 53 BACK | NEXT Executive Summary Summary of Conclusions and Recommendations by ADF Donors ADF VIII: Requests for Midterm Policy Reviews and Reports I. Introduction II. The International Development Goals III. Poverty in Developing Asia IV. ADB and ADF: Vision and Role V. ADB’S Framework for Poverty Reduction VI. Development through Partnership VII. ADF Resources: Portfolio Management and Performance A. Portfolio Management B. Performance VIII. The Strategy for Implementing ADF VIII IX. Planned Lending in ADF VIII X. Financing Framework for ADF VIII XI. Issues for Policy Review XII. Midterm Review of ADF VIII

ADF VIII Donor's Report: Fighting Poverty in Asia : VII. ADF Resources: Portfolio Management and Performance

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A. Portfolio Management

43. Donors emphasized the importance of project design and portfolio management. They urged ADB to take decisive steps to improve these. In this regard, Donors noted that ADB recently introduced a project performance management system (PPMS) to assess progress and impact during the whole of the project cycle. Donors endorsed PPMS progressively replacing the former benefit monitoring and evaluation system in ADB projects. The new system includes monitoring and management focusing on a limited number of performance indicators that are used throughout the project cycle. This notwithstanding, Donors also concluded that some projects had inadequately defined performance indicators and targets.

44. Given that portfolio management is properly concerned with the entire project cycle, Donors concluded that an assessment of ADB’s country-focused strategic planning documents showed that these documents are often not consistent and have a tendency to be needs-oriented rather than acting as an instrument for change. Donors agreed that these shortcomings should be addressed as part of ADB’s Review of Business Processes (Section VIII.N.1).

45. Donors took into consideration an ADB working group review of ADB’s experience in portfolio restructuring during FY 1998/99 and concluded that ADB should move more resolutely toward comprehensive portfolio management, in particular to adopt and use the “project at risk” concept as the basic measure of portfolio performance. Performance-based lending indicators should be introduced in consultation with DMCs to enhance the development impact of its operations. Portfolio management should be at the forefront of ADB’s dialogue with DMCs in planning future operations, and in the assessment of internal efficiency and external effectiveness (Section VIII.N.2).

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