Description

Background

This country assistance program evaluation report assesses ADB's country strategies, programs, projects, and technical assistance activities in the Republic of Maldives from 1978, when it became an ADB developing member country, to 2010. It aims to (i) review ADB's country program and provide a credible assessment; (ii) identify factors that affected implementation of ADB assistance; and (iii) draw key lessons, and identify key issues and recommendations to serve as inputs for the preparation of the next country partnership strategy  in particular.

Overall assessment

The overall rating of ADB support to the Maldives from 1978 to 2010 is partly successful. ADB support was assessed to be satisfactory in terms of strategic positioning, and relevant, less efficient, effective, less likely sustainable, and partly satisfactory in terms of development impact. The performance in education, energy, and transport and information and communication technology has been successful, while public sector management, the tsunami emergency, and multisector support has been partly successful. Support for industry and trade is given a preliminary rating of likely partly successful, which is subject to review upon completion of ongoing sector activities.

Key issues

Small resource envelope. Due to the limited resource envelope, delivery of support and interventions has been intermittent. More efforts are needed to collaborate with other development partners to position and leverage its support and decide where to develop complementary reforms in related sectors.

Delays in project implementation. Reasons for delays have included insufficient project preparatory work, unfamiliarity of implementing agencies with ADB policy and procedures, lack of in-country presence, and weak capacity of the government's Office of Programs and Projects, which was created in 2008 to expedite project startups and ensure timely implementation.

Limited effectiveness of past capacity development efforts. Earlier capacity development efforts focused on the provision of technical assistance rather than comprehensive approaches including policy dialogue on required institutional powers, changes and incentives. The absence of benchmarks and performance indicators has made assessments of the effectiveness of interventions difficult.

Recent government reforms need to be fully implemented. The new government has shown greater commitment to undertaking macroeconomic reforms under the 2009 Economic Recovery Program, although there have been delays with the implementation of the redundancy programs for civil servants.

Future strategies and programs need to be informed by implications of the recent decentralization efforts. Related regulations and modalities for management of the local councils, under the three-tier structure of the 2010 Decentralization Act, are still at the preparatory stages. Such changes will carry increased challenges for project design, implementation and sustainability. Greater attention needs to be paid to obtaining buy-in of all relevant stakeholders during the formulation of strategies and preparation of programs.

Lessons

• Continued engagement within a sector and a long-term focus will enable better policy dialogue, improved sector outcomes, and increased development impact.
• Dependence on consultants to support project implementation has mainly resulted in capacity substitution.
• An incremental approach for capacity development through advisory technical assistance is likely to be more effective, although demonstrable results take time.

Recommendations

The study puts forward the following recommendations for the consideration of ADB Management in formulating the next country partnership strategy and in ongoing assistance.

Improve effectiveness of country strategy and program by

1. maintaining sector selectivity while ensuring development effectiveness through coordination with development partners on complementary support in related sectors,
2. preparing long-term sector support strategies, including for capacity development, as a basis for new infrastructure operations, and
3. widening consultative efforts during the formulation and implementation of sector strategies and sector programs.

Enhance project delivery by

1. using phased approaches, providing adequate project preparation support, and allocating sufficient time for implementation of investment projects, and
2. exploring the option of assigning a dedicated focal point in ADB's Sri Lanka Resident Mission; or setting up a liaison office in Malé to increase interaction with government counterparts.

Contents

• Executive Summary
• Introduction
• Background Information
• Evaluation Methodology
• Evaluation Findings and Performance Ratings by Evaluation Criterion
• Overall Performance Rating and Addressing the Questions
• Conclusions
• Appendixes