fbpx 52346-001: Strengthening Conduct of Economic Appraisal of Project and Program Invesments in Developing Member Countries | Asian Development Bank

Regional: Strengthening Conduct of Economic Appraisal of Project and Program Invesments in Developing Member Countries

Sovereign (Public) Project | 52346-001 Status: Approved

The proposed TA is designed to strengthen the capacity of DMC officials/technical staff to carry out economic analysis to support their investment design and selection. The Cluster KSTA will include two subprojects and the main outputs include: (1) conduct of economic analysis training workshops for investment projects; (ii) conduct of economic analysis training workshop for Policy Reforms and (iii) support preparation of methodological notes or guidebooks on selected economic analysis methodologies The outputs of the TA aim to promote allocative efficiency, equity considerations and project sustainability of programs and projects being implemented by DMCs. It will also complement the Guidelines on Economic Analysis of Investment Projects 2017.

Project Details

Project Officer
Maria Rowena M. Cham Economic Research and Regional Cooperation Department Request for information
Country
  • Regional
Sector
  • Public sector management
 
Project Name Strengthening Conduct of Economic Appraisal of Project and Program Invesments in Developing Member Countries
Project Number 52346-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 0037-REG: Strengthening Conduct of Economic Appraisal of Project and Program Invesments in Developing Member Countries
Technical Assistance Special Fund US$ 3.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Public sector management / Economic affairs management

Gender Equity and Mainstreaming Some gender elements
Description The proposed TA is designed to strengthen the capacity of DMC officials/technical staff to carry out economic analysis to support their investment design and selection. The Cluster KSTA will include two subprojects and the main outputs include: (1) conduct of economic analysis training workshops for investment projects; (ii) conduct of economic analysis training workshop for Policy Reforms and (iii) support preparation of methodological notes or guidebooks on selected economic analysis methodologies The outputs of the TA aim to promote allocative efficiency, equity considerations and project sustainability of programs and projects being implemented by DMCs. It will also complement the Guidelines on Economic Analysis of Investment Projects 2017.
Project Rationale and Linkage to Country/Regional Strategy

Asia continues to face large infrastructure investment gaps. Although alternative financing schemes have been emerging to help ease the fiscal burden, reforms in other areas such as in governance, legal and regulatory framework to enhance investment climates would have to be undertaken. In some cases, the lack of well prepared financially and economically viable projects have hindered the DMCs to implement these programs and projects to support their quest for growth.

DMCs' capacities for the conduct of adequate due diligence, particularly for economic and financial due diligence, greatly vary. Only selected DMCs have established processes and capacities for conduct of economic due diligence in line with ADB s requirements as outlined in ADB Charter and policies. Even in case of majority of these DMCs, methodologies and viability criteria need to be revisited and updated. This weak capacity often leads to allocation of unviable projects especially for private sector financing and PPPs and have caused major delay in their implementation. Weak capacity in project economic analysis also causes misallocation of scarce fiscal resources to project with suboptimal development impacts. This also affects the selection of infrastructure projects to be financed by ADB and other development partners. On the other hand, weak capacity in assessing the impact of structural reforms required in creating enabling

environment for increased public and private sector investment in infrastructure and even in other sectors hampers policy dialogue and the preparation of progressive policy reforms. Weak preparation can result in poor design and slow the pace of reforms

Given these, there is pressing need for the development partners to assist the DMCs in building their capacities and processes for conduct of adequate levels of due diligence in key areas including economic due diligence. In case of DMCs with limited capacity and with no-defined processes for conduct of economic due diligence, the focus will need to be in developing their own processes and guidelines and train the DMC officials in conduct of economic due diligence. In case of DMCs with existing capacity and processes for economic due diligence, the focus needs to be on assistance for reviewing and updating the current methodologies and processes, and familiarizing the staff in applying the updated methodologies and processes.

Impact Achievement of more efficient resource allocation by DMC governments
Project Outcome
Description of Outcome Use of economic analysis or assessment in project or program selection and design increased.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Capacity of DMC officials on conduct of economic analysis or assessment improved

Guidance materials for improved economic analysis published and disseminated.

Capacity of DMC Officials on conduct of Economic Analysis of Policy Reforms improved.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Maria Rowena M. Cham
Responsible ADB Department Economic Research and Regional Cooperation Department
Responsible ADB Division Economic Analysis and Operations Support Division
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 09 Oct 2020
Fact Finding 20 Nov 2018 to 20 Nov 2018
MRM -
Approval 06 Dec 2018
Last Review Mission -
Last PDS Update 07 Dec 2018

TA 0037-REG

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
3,000,000.00 0.00 0.00 0.00 0.00 0.00 3,000,000.00 - 0.00

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