An Independent Review of World Bank Support to ... - DAG Ethiopia

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after redesign and a five year extension period which included abandoning severalcapacity related components. Disbursement under the health and education SDPs hasbeen faster, though still subject to delays. However, this SDP expenditure concerns notonly capacity building. A measure for capacity building expenditure is impossible sincethe Bank did not earmark any funds for such activities.4.48 Management Arrangements: Project management has been well integrated intostructures of the government since the mid-1990s. Project implementation units havebeen virtually absent (except in emergency recovery projects where capacity building andsustainability have not been important objectives). The large sector developmentprograms in roads, education, and health, supported by the Bank, have all relied heavilyon ordinary (though sometimes enhanced) government structures. TA inputs tomanagement of these programs have been extremely limited. Though this is good forgovernment ownership and experience gained from learning-by-doing, the downside hasbeen low implementation capacity, which has led to delays in overall programimplementation by 1-2 years (20-40 percent). In public sector management operations,the lack of management capacity at entry and the lack of upfront mitigating provisionshave led to even longer than expected implementation delays (of the ongoing CBDSD) oronly partial implementation (of the closed CSRCB).4.49 Commitments for Capacity Building Components: Another way to measuredelivery of support is to estimate the cost of capacity building components (equipment,training, technical assistance and activities that directly strengthen public sector capacity)in individual investment and adjustment loans, as shown in Table 4.5. 1919 Project documents do not provide a routine breakdown of the costs of capacity building activitiessupported as parts of project components. Therefore, two methods were developed and used to a make atrial estimate of aggregate costs of investment and adjustment loans. For investment loans, capacitybuilding support was estimated by summing the costs of activities—such as TA, training, consultancies,studies, and equipment and materials—designed to strengthen government functions (not including costsfor direct frontline service delivery, such as construction of schools and clinics). For adjustmentoperations, the estimate is based on calculating the number of conditions or actions directed to achievingspecified capacity building objectives (such as strengthening policy and budget formulation, administrativesystems, or legislation, as distinct from quantitative targets for revenue generation and expenditure) as apercent of the total number of actions and equivalent total amount of lending.26
YearTable 4.5: Commitments for Capacity Building Components (US$ million)ProjectTotalCommitmentInvestment LoansCapacity BuildingCost (%commitment)Roads1992 Emergency Recovery 49.4 4.2 (9%)Credit (total 150 m)1993 ER Road Rehabilitation 96 4 (4%)1998 Ethiopia Road Sector 309.2 2.8 (1%)Dev. Program Support2001 Emergency Recovery 86 0 (0%)Project (total 230 m)2003 Road Sector Dev. APL 2 126.8 5.2 (4%)Health & Education1996 Social Rehab. (ESRDF) 84 3.9 (5%)(total 120 m): H&Ecomponent1998 Education Sector Dev. 100 17.6 (18%)Program Support1999 Health Sector Dev.100 4.1 (4%)Program Support1993 ESRDF Supplemental 19.8 0 (0%)(total 28.3 mill): H&EcomponentPSM/PEM2001 Global Distance Learning 4.9 4.9 (100%)TotalCommitmentAdjustment LoansCapacity BuildingCost (%commitment)2002 Capacity Building for 26.2 26.2 (100%)Decentralized ServiceDelivery2003 Public Sector Capacity 100 100 (100%)BuildingMacroeconomic Support1993 SAC – I 250.7 62.7 (25%)2001 Eco. Rehab. Support Cr. 150 64.5 (43%)2002 Ethiopia SAC 120 49.2 (41%)2004 PRSC I 120 77.1 (64%)TOTAL 1102.3 172.9 (16%) 640.7 253.5 (43%)4.50 Usefulness of Various Capacity Building Tools: Table 4.6 shows the use ofvarious capacity building tools. The tools have not been used evenly in the selectedsectors, except for ESW, which has been applied in all sectors to a significant extent. Inthe roads sector, all tools have been applied, whereas PFM has been supported almost27
Page 1 and 2: An Independent Review of World Bank
Page 3 and 4: Annex D: Capacity Building Objectiv
Page 5 and 6: PEMPERPFPPIUPPDPRSPPRSCPSCAPPSMPSRR
Page 9 and 10: 1. IntroductionObjectives1.1 This s
Page 11 and 12: 2. Country ContextPolitical Develop
Page 13 and 14: complete state transformation (incl
Page 15 and 16: provide policy direction, coordinat
Page 17 and 18: 3. Bank Assistance Strategy and Cap
Page 19 and 20: 3.7 The program of lending operatio
Page 21 and 22: 4. Assessment of Bank Support to Ca
Page 23 and 24: organizational aspects of capacity.
Page 25 and 26: esource strong and flexible financi
Page 27 and 28: identification of capacity constrai
Page 29 and 30: government procurement systems unde
Page 31 and 32: Table 4.4: Service Improvements in
Page 33: Delivery of Support4.43 Value for M
Page 37 and 38: instruments themselves. However, TA
Page 39 and 40: and its reluctance to accept TA inp
Page 41 and 42: 6. Conclusions6.1 The Bank’s cont
Page 43 and 44: late. TA staff can perform several
Page 45 and 46: Annex A: List of IntervieweesGovern
Page 47 and 48: Annex B: Documents and Projects Rev
Page 49 and 50: ProjectRSDP SupportProjectEconomicR
Page 51 and 52: ProjectEDUCATIONSeventhEducationPro
Page 53 and 54: ProjectESDP IICapacityBuildingCateg
Page 55 and 56: ProjectCapacityBuildingCategoryInst
Page 57 and 58: ProjectCapacityBuildingCategoryObje
Page 59 and 60: ProjectCapacity BuildingCategoryObj
Page 61 and 62: Project Details Timing Institutions
Page 63: Annex E: OED Ratings on Completed P

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