Improving Institutional Capability and Financial Viability to Sustain Transport
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Improving Institutional Capability and Financial Viability to Sustain Transport

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Over the past decade, the World Bank, International Finance Corporation and Multilateral Investment Guarantees Agency have committed about $50 billion for operations or guarantees in the transport ...

Over the past decade, the World Bank, International Finance Corporation and Multilateral Investment Guarantees Agency have committed about $50 billion for operations or guarantees in the transport sector; yet inadequate operations and maintenance has remained a concern. This is a presentation of main findings from the evaluation of the effectiveness of World Bank Group support to countries in sustaining the provision of transport infrastructure and services and distills lessons on the factors contributing to sustained transport.

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    Improving Institutional Capability and Financial Viability to Sustain TransportImproving Institutional Capability and Financial Viability to Sustain Transport Presentation Transcript

    • Improving Institutional Capability andFinancial Viability to Sustain Transport- An Evaluation of World Bank Group Support since 2002 Presentation at Civil Society Policy Forum April 17, 2013 Midori Makino Independent Evaluation Group
    • Objective and Definition of Sustained Transport ► Objective of the evaluation is to assess the effectiveness of the World Bank Group (WB, IFC, and MIGA) support to countries to sustain transport ► Transport is sustained when key outcome indicators either achieved or almost achieved by the end of the project were sustained or improved beyond project closure ► Examples of Indicators include accessibility, travel time and costs (intercity highways, rural roads), congestion (urban and air transport, ports), rail traffic (railways) etc.2
    • Evaluation Questions 1. To what extent have World Bank Group strategies and operations aimed to ensure sustained transport? 2. To what extent have countries implemented; (i) policies and regulatory framework, (ii) institutional framework, (iii) financial arrangements, and (iv) sector management and capacity building activities supported by the World Bank Group to sustain transport? 3. How effective have these measures been? 4. What factors have determined success?3
    • Evaluation Framework Country Priorities and Political Economy Factors Intermediate Development Inputs Outputs Outcomes Outcomes Impact Physical Financial Poverty infrastructure Viability Alleviation World Bank, IFC, and Sustained MIGA Transport Transport Support Economic Sustaining Institutional Measures Capability Growth Economy of the Country, Demographic Changes, Natural Disasters, and Other External Factors4
    • Evaluation Methodology/Building Blocks 1. Review of World Bank Group sector and country strategies 2. Portfolio review of World Bank Group operations approved from FY 2002-11 (573 lending , over 1,000 non-lending) 3. Nine field- and eleven desk-based country focused project assessments covering 68 projects 4. IEG’s 30 project performance assessment reports carried out during the past five years5
    • Key Evaluation Findings6
    • Sustained Transport of World Bank Projects Varies by Country Income and Sub-sector % of Projects with Sustainable Transport Outcomes, Based on Field and Desk Based Assessment of Project Results (n=number of projects, c=number of countries) 100% 78% 80% 67% 52% 57% 57% 60% 46% 40% 33% 33% 20% 0% 0% Low and Upper Intercity Ports Urban Aviation Rural Railways All Lower middle highways (n=7; c=7) Transport (n=6; c=5) Roads (n=15; Projects middle and High (n=36; (n=13; (n=15; c=11) (n=68; Income Income c=14) c=11) c=13) c=20) (n=54; (n=14; c=15) c=5)7
    • Projects that Planned and Implemented Measures were more likely to achieve Sustained Transport Outcomes % of World Bank Transport Projects that achieved Sustained Transport Outcomes by Implementation Status of Measures 100% 75% 50% 25% 0% Sector policy and Institutional Sector Management Financial regulatory framework framework and Capacity building arrangements activities Planned and implemented measure Planned but not implemented measure8
    • Sustained Transport is emphasized in Sector and Country Strategies, but it is not well reflected in Projects % of World Bank Transport Projects that Included Measures to Sustain Transport by Fiscal Year of Approval 100 90 80 70 60 50 40 30 20 10 0 Sector policy and Institutional Sector management Financial regulatory framework and capacity arrangements framework building FY02-06 FY07-119
    • The Share of Projects with Sustained Transport in Objectives and Projects that Identified Risks have declined % of World Bank Transport Projects that included Sustained Transport in their Objectives and that identified maintenance risks at appraisal by Fiscal Year of Approval 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Percentage of Projects with Sustainability as Percentage of Projects that identified part of their Objectives maintenance risks at appraisal FY02-06 FY07-1110
    • Determinants for Success11
    • Determinant 1: Focus in Project Design ► Transport is more likely to be sustained when such emphasis is reflected in project preparation and design:  Sustained transport in objectives  Measures to sustain transport in components  Identification of maintenance shortfall risks12
    • Determinant 2: Accountability and Incentive Structure ► Transport is more likely to be sustained when a clear accountability framework and incentive structures for operations and maintenance are in place, in cases such as:  Contractual arrangements and user-pay principles, often featured in public-private partnerships such as operations supported by IFC  Output- and performance based road contracts  Microenterprise/community participatory models in rural roads13
    • Determinant 3: Policy Level Interventions ► Transport is more likely to be sustained with broad based policy level interventions supporting investments operations:  Development policy operations, public expenditure reviews, and other analytic and advisory activities and policy dialogue complementing specific investment loans  Multi-modal planning and coordination at the country’s sector level, especially in planning railways  Road network models under budget constraints in highways14
    • Determinant 4: Client Ownership ► Transport is more likely to be sustained with continued WBG support to ensure strong Government ownership:  Continuous and sequential engagement taking into account sector capacity  Attention to political economy by identification of stakeholder concerns, communication, and consultation  Mainstreaming of project activities in government systems15
    • Other Evaluation Findings ► World Bank, IFC, and MIGA approaches to sustaining transport are different ► World Bank, IFC, and MIGA play complementary roles but there are missed opportunities for synergies ► Transport is more likely to be sustained when managed by the transport sector ► There is no systematic assessment of sustained transport outcomes beyond project closure16
    • Recommendations for World Bank Group Management17
    • 1: Increase Focus in Project Preparation and Design ► Increase the focus on sustained transport in projects with sector reform objectives and components ► Systematically carry out ex-ante risk analysis and mitigation for operations and maintenance ► Link investment operations with sector-wide reforms through complementary activities ► Transport components managed by other sectors should be integrated into transport sector plans and strategies18
    • 2: Improve Long-Run Financial Viability ► Engage policy makers for maintenance funding at high level ► Critically assess the viability of investments especially for railways ► Support to urban transport should include financial analysis of overall system and pay attention to affordability concerns.19
    • 3: Strengthen Institutional Capability ► Mainstream proven accountability and incentive frameworks ► Encourage continuous and sequential engagement and support government-led reforms ► Support governments to put in place a process for systematically monitoring and evaluating sustained transport outcomes20
    • Thank You for Your Attention The complete evaluation is available on IEG’s website: http://ieg.worldbankgroup.org/publications21