Independent Evaluation

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Special Evaluation Study on Project Performance Management System in the Asian Development Bank and its Projects in Developing Member Countries
Completed 2003

This study was prepared in response to a request from some Asian Development Bank (ADB) donors to review the implementation of ADB's project performance management system (PPMS).

PPMS is ADB's term for a project management process that puts greater emphasis on the achievement of development results. It comprises five elements:

• Project (logical) framework, now known as design and monitoring framework
  
• Project performance report (PPR)
  
• Project completion report
  
• Project performance evaluation report
  
• Borrower monitoring and evaluation

PPMS was conceptualized in the late 1990s although most its elements had been in use for some time. The main changes were:

• Introduction of the PPR
  
• Adoption of a more consistent evaluative framework for assessing project performance at different stages of the project cycle.

The study involved field investigations in Bangladesh, People's Republic of China, Papua New Guinea, Philippines, and Viet Nam. Detailed quantitative analysis was carried out on elements of the PPMS. A staff perceptions survey provided valuable input.

   Summary of Findings

ADB has made substantial progress towards more results-based project management. The PPMS is generating information on project performance, and this information is being used to improve the success of projects.

However, the study findings also indicate that there is a series of process issues that, when addressed, will improve PPMS effectiveness. These issues can be divided into two groups:

• Those that should be addressed immediately (e.g., terminology, earlier circulation of a preliminary project framework, and ensuring executing agency progress reports follow current guidelines)



• Those that should also be resolved expeditiously but require further consultation before decisions are made (e.g., the need for independent quality control of project frameworks and PPR monitoring data, a significant increase in PPMS training, creation of a permanent group responsible for the PPMS, and extension of the PPMS to cover private sector operations).

   Recommendations

The study recommended that the President of ADB reconvene and reconstitute the interdepartmental working group on PPMS to consider the findings of the study, consult concerned departments/offices, and produce a time-bound action plan that identified resource requirements for its implementation. The study further suggested that the Working Group submit the action plan on October 2003.

   Summary of Findings

The interdepartmental working group was formed as recommended. At the request of the President, the findings of the study and the working group recommendations were presented to a Management Committee meeting also attended by the Directors General. At this meeting, the President requested that the Vice Presidents produce their own action plan (page 13, para. 61 of the Annual Progress Report on the Implementation of ADB's Reform Agenda) for implementing the study's recommendations. The action plan has largely been implemented.