caribbean development bank development effectiveness review

caribbean development bank development effectiveness review

PUBLIC DISCLOSURE AUTHORISED
CARIBBEAN DEVELOPMENT BANK
DEVELOPMENT EFFECTIVENESS REVIEW - 2011
This is a redacted version of the document approved by the Bank’s
Board of Directors that excludes information that is subject to
exceptions to disclosure set forth in the Bank’s Information
Disclosure Policy.
Any designation or demarcation of, or reference to, a particular territory or geographic area in this
Document is not intended to imply any opinion or judgment on the part of the Bank as to the legal or other
status of any territory or area or as to the delimitation of frontiers or boundaries .
1.
INTRODUCTION
1.01
The Development Effectiveness Review 2011 is the first annual comprehensive report on the
corporate performance of the Caribbean Development Bank (CDB) as a whole. The report comprises
data drawn primarily from its Results Monitoring Framework approved in May 2011 and the Annual
Review of Project Portfolio Performance 20101 and assesses the progress made in 2010 and 2011 towards
the implementation of the Strategic Plan 2010-2014.
1.02
It also covers much of the results information required for monitoring progress made towards the
implementation of the Seventh Cycle of the Special Development Fund (Unified) [SDF 7] as it includes
the full range of Bank-assisted activities which are funded both through the Ordinary Capital Resources
(OCR) and SDF (U) resources. This approach also recognises the challenge presented by attempts to
attribute the outcomes of the Bank’s initiatives to the respective sources of funds as most of these
activities are financed through a blend of OCR and Special Fund Resources with the notable exceptions of
activities in Guyana and Haiti.
1.03
The review includes an assessment of the progress made in Borrowing Member Countries
(BMCs) towards key development objectives. Against that backdrop, the review examines CDB’s
performance in delivering key sector outputs and their contribution to country and regional outcomes,
improving operational and organisational effectiveness, and in promoting partnership, harmonisation and
alignment.
1.04
The review also reflects progress against the baselines and targets established in the results
framework and it forms an important part of the Bank’s performance management tool-kit and its
decision-making process. It will also facilitate dialogue between Management and the Board on
performance and the need for strategic adjustments.
2.
PROGRESS TOWARDS DEVELOPMENT OUTCOMES
LEVEL 1: REGIONAL PROGRESS TOWARDS SELECTED CARIBBEAN-SPECIFIC MDG
TARGETS AND DEVELOPMENT OUTCOMES
2.01
CDB’s primary development focus is to assist BMCs to achieve sustainable results in reducing
poverty and building resilience to external shocks. Monitoring progress on these development outcomes
is critical to ensuring the Bank’s strategies and policies continue to be relevant. Level 1 indicators
measure BMCs’ performance in achieving development outcomes related to poverty reduction and human
development, economic growth, environmental sustainability and climate change, and regional
cooperation and integration (RCI). The performance in relation to these indicators and targets will also
inform CDB’s future operational strategy in BMCs.
Poverty and Human Development
2.02
Indicators of income poverty (Indicators #1 and #2) reflect the position based on data compiled
from the Country Poverty Assessments (CPAs) conducted in BMCs up to 2009 and therefore show no
change between 2010 and 2011 although the situation has worsened slightly compared with the baseline
year 2006. Appendix 1 shows the Poverty Indicators for BMCs based on CPAs conducted over the
period 1996 to 2009.
1
Some of the data being used in this Review is sourced from theAnnual Review of Project Portfolio Performance
2011.
-22.03
Over the past two years, 2010 and 2011, growth in most BMCs has been negatively impacted by
external economic shocks and natural disaster events. The effects of the global financial crisis and
recession which started in 2008 has been protracted in most Caribbean economies largely as a result of
weak external demand and high public debt levels. The recession has slowed already sluggish growth,
increased unemployment and made poverty reduction and human development much more difficult.
2.04
Table 1 sets out the outturns for Level 1 indicators and in the case of indicators #1 and #2 reflect
the pre-crisis situation. Available data for most BMCs are not current and were not available for some
indicators in 2011. However, it is clear that BMCs will require significantly higher economic growth
rates if the Millennium Development Goals (MDGs) of halving the proportion of the population living
below the poverty line, and halving the proportion of the population living below the indigence line are to
be achieved by 2015.
2.05
The non-income poverty and human development indicators which are monitored relate to
education, and water and sanitation. The performance in respect of primary and secondary school
enrollment for both boys and girls (Indicators #3 and #4) continue to improve and reflect the high priority
given to educational access by BMCs authorities. The MDG of achieving universal primary and
secondary school by 2015 is likely to be met in most BMCs but much work remains to be done
particularly in Haiti. CDB has already made a significant contribution to the sector in Haiti through its
joint efforts with the Inter-American Development Bank (IDB) and the World Bank on the Education for
All Programme, and expect to continue to be part of these efforts should resources become available.
Refer to Appendix 2 which outlines some output results from CDB’s efforts in the education sector in
Haiti to date.
2.06
Access to improved water sources and improved sanitation gets better for both urban and rural
citizens but there appears to be a continuing challenge in rural areas for the period under review. The
Caribbean is rated as one of the most water-stressed areas of the world, hence progress with improving
access to water and sanitation for under-served rural populations remain a major focus of the Bank’s
direct poverty reduction programme. Further details on CDB’s output performance in this sector are
provided in the Level 2 assessment of this review.
Other Development Indicators
2.07
Table 2 outlines indicators and targets for economic growth, environment and regional
cooperation and integration. The Gross Domestic Product (GDP) per capita indicator registered marginal
improvement in 2011 for Groups 1, 3 and 4 but shows a decline in the average performance of Group 2
countries . The BMCs in Group 2 have averaged GDP growth rates of between negative and less than one
percent for the period 2007 to 2011. Again these results reflect the impact of the economic recession and
the difficulties confronting BMCs in identifying new growth sectors to replace and/or complement the
tourism and off-shore financial sectors which have been the principal drivers of economic growth in many
BMCs during the pre-crisis period. CDB together with the World Bank and IDB has agreed to establish a
Caribbean Growth Forum whose objective is to identify policies and initiatives aimed at inducing and
creating jobs in the Caribbean region through analytical work, knowledge exchange and inclusive
dialogue.
-3-
TABLE 1: POVERTY AND HUMAN DEVELOPMENT IN CDB’s BMCs
Indicators
1. Proportion of population below the poverty line (%):
- including Haiti
- excluding Haiti
2. Proportion of population below the indigence line (%):
- including Haiti
- excluding Haiti
3. Net enrolment in primary education2:
- Female
- Male
4. Net enrolment in secondary education (%):
- Female
- Male
5. Proportion of population with access to an improved water
source (%):
- Urban
- Rural
6. Proportion of population with access to improved
sanitation (%):
- Urban
- Rural
Baseline
Year
Baseline
Value
Target
(2015)
Status As At
December
2010
Status As At
December 2011
2006
2006
54.0
na
27.0
na
55.0
21.3
55.0
21.3
2006
2006
35.0
na
17.5
na
34.0
3.5
34.0
3.5
2006
2006
94.0
94.0
95.0
95.0
89.0
89.0
90
90
2006
2006
73.0
68.0
80.0
77.0
80.7
80.6
83
84
2007
85.0
88.0
94.0
92.5
95.8
/88.7
95.9
91.4
76.0
73.0
88.0
86.5
85.5
80.0
87.8
85.9
2007
2.08
Support for environment sustainability, climate change and disaster risk management
(DRM) is one of the principal objectives of the Bank. Furthermore, the impact of natural disaster events
and climate change on the costs of social and economic infrastructure development make it imperative to
also monitor the results of efforts by BMCs and other development partners to build resilience to natural
hazards, through actions such as increase re-forestation. The importance of maintaining and increasing
the forest cover for the overall environmental and economic well-being of CDB’s BMCs cannot be overestimated given their vulnerability to natural hazard events and need to protect water resources and
natural tourism sites. While the 2011 performance under indicators #9 and #10 have already exceeded the
baseline, the effective monitoring and management of the Bank’s initiatives would be better facilitated by
the establishment of appropriate targets before the next annual review.
2
For the 2010 targets the primary education NER for Haiti is estimated at 48% and 52 % for males and females respectively. For
secondary education the NER is estimated at 18% and 21% for males and females respectively. As an outlier, these rates, with
lower than expected rates reported by Grenada (77.2% and 75% for males and females respectively in primary education and
63% and 59.6% for males and females respectively in secondary education), have accounted for the regional average rates under
90% for both sexes in primary education. The same applies for secondary education.
-4-
TABLE 2: GROWTH, ENVIRONMENT AND REGIONAL COOPERATION
AND INTEGRATION
Indicators
GDP per Capita
7. GDP per capita (constant 2005
prices, $)
Group 1 BMCs
Group 2 BMCs
Group 3 BMCs
Group 4 BMCs
Environmental Sustainability and
Climate Change
8. Reported economic losses and
social dislocation resulting from
natural disasters and climate
variability (% of GDP)3
9. Proportion of land area protected
to total land area (%)
10. Proportion of land area covered by
forest to total land area (%)
Regional Cooperation Integration
11. Intra-regional trade as a
percentage of total regional trade
12. Direct Investment of MDCs in
LDCs ($ mn)
Baseline
Year
2009
2009
2009
2009
Baseline
Value
Target
(2015)
Status As At
December 2010
Status As At
December 2011
27,384
13,890
4,295
540
32,698
16,585
5,128
645
27,029
14,117
4,245
519
27,161
13,890
4,278
552
Baseline
Year
2005 -2007
Baseline
Value
20.5
Target
(2015)
na
Status As At
December 2010
35.42
Status As At
December 2011
9.2
2008
8.2
na
15.7
13.9
2008
29.0
na
36.0
46.6
2006
14.0
20.0
13.0
15.0
Avg. 19992003
20.0
30.0
21.04
Na
2.09
The drop in the proportion of reported economic losses resulting from natural disasters and
climate variability is a positive development but is derived more from reduced weather activity than from
measures related to climate-proofing and mitigation and adaptation. The Bank is introducing additional
initiatives focused on assisting BMCs to improve their protection and resilience to natural hazards.
2.10
Growth in intra-regional trade is considered a key indicator of progress towards strengthening
the RCI movement. The target set for this indicator has already been met and surpassed. Importantly, the
Bank has played a major role in maintaining connectivity among the islands through its consistent support
for regional air transport.
2.11
There are less than four years remaining to achieve the MDGs and the related Caribbean-specific
targets and indicators. The challenge for BMCs, their leaders, regional institutions and international
partners is to jointly formulate and implement programmes and projects which would improve and
accelerate progress towards these targets in the remaining period.
LEVEL 2: CDB’s CONTRIBUTION TO COUNTRY AND REGIONAL OUTCOMES
THROUGH OUTPUTS
2.12
The indicators at Level 2 are critical to measuring the achievement of CDB’s strategic agenda and
contributions to country and regional outcomes. The contributions which the Bank makes to country and
regional level outcomes are in the form of activities that lead to outputs, which in turn contribute to
3
4
Data does not include Anguilla, British Virgin Islands, Montserrat and Turks and Caicos Islands.
Average for 2004-2008.
-5development outcomes. Output reporting in the results framework focuses on nine operational priority
areas of the Strategic Plan, i.e. education and training, agriculture and rural development, social and
economic infrastructure, private sector development, water and sanitation, DRM, climate change
response, RCI and capacity development. To compute these, the Bank has aggregated the outputs
achieved and reported in project supervision reports (PSRs) for the two years under review. This section
of the review focuses on the achievement of the sector outputs targeted in the results framework for the
period 2010-2014.
2.13
The review also monitors the number and value of projects under implementation as at
December 31, 2011 and whose contribution to outcomes will be measured in subsequent annual reviews.
It should be noted that most of the operations being reported on in this review were approved and began
to be disbursed prior to the adoption of the Strategic Plan 2010-2014.
2.14
Assessments of CDB’s outcome performance at Level 2 rely primarily on the evaluation of
completed operations. There were no evaluations of operations completed in 2010 as there were no
project completion reports (PCRs) for that year. This situation is expected to improve for the 2012 review
as a significant number of PCRs are in an advanced stage of preparation and the outcomes will be
included in the next annual report.
2.15
CDB’s objective of broad-based economic growth and inclusive social development is advanced
by supporting investments in education and training, agriculture and rural development, social and
economic infrastructure, private sector development, water and sanitation, and social protection. During
2010 and 2011 twenty projects5 were completed in support of these development outcomes with
expenditure amounting to $325.8 million (mn) in twelve BMCs. Included in these were five fastdisbursing Policy Based Loans (PBLs) which were completed in 2011 and accounted for $162 mn or
70.5% of the costs of projects completed for that year.
Education and Training
2.16
The efforts of the Bank in this sector are broadly targeted at improving access to and quality of
education and training. The education sector continues to benefit from a significant proportion of the
Bank’s resource commitments to BMCs6 and accounts for approximately twenty percent (20%) of the
projects currently under implementation in ten BMCs. Over the two-year period, more than 55,000
students have benefitted from new and improved educational facilities and the quality of educational
delivery is likely to improve with the training of 1,300 additional teachers (Refer to Table 3). A
comprehensive review of the performance of the sector for 2011 has been limited by the lack of timely
access to data from some BMCs. Achievement of the targets would continue to require sustained
investments in improving the quality of inputs and processes in the education system.
5
Twelve of these projects were completed in 2011 and other eight in 2010.
6
Between 2004 and 2011 education sector projects accounted $152 mn or 11.8% of total loans approved for that period.
-6-
TABLE 3: OUTPUTS WHICH CONTRIBUTE TO EDUCATION AND TRAINING OUTCOMES
Indicators
Education and Training (at all levels)
1. Primary and secondary class-rooms built or
upgraded according to minimum standards
(number)
2. Teachers trained /certified in primary and
secondary education (number)
3. Students benefiting from improved physical
classroom conditions, enhanced teacher
competence, and access to student loan financing
(number).
4. % of secondary school graduates achieving five
CXC General Proficiency passes including
Mathematics and English by sex
- Male
- Female
5. Proportion of students starting from Form 1 who
reach Form 5 (Survival Rate) by sex:
- Male
- Female
6. % of students completing at least one Level 1
course in Technical and Vocational Education
and Training by sex:
- Male
- Female
Outputs
2005-2009
Programmed
Outputs
2010-2014
Outputs 2010
Outputs 2011
1,264
700
215
255
2,427
6,010
4
1,335
79,759
171,725
15,444
40,211
na
na
28.47
30.58
na
na
na
na
76.59
80.410
na
na
na
na
na
45.311
40.012
na
na
Agriculture and Rural Development
2.17
This sector continues to drive direct and indirect employment and income generation
opportunities in a number of BMCs and particularly in the LDCs. More recently, events surrounding the
global food crisis have highlighted the contribution which the sector must continue to make in meeting
the region’s dietary and food security needs and in stemming food inflation. There is evidence to suggest
that domestic food supply responses have reduced food price inflation in several BMCs over the past two
years. These combined attributes have put the development of the agricultural sector on the forefront of
efforts by regional governments to combat the incidence of poverty, improve social resilience, and
address economic stagnation and inflationary pressures associated with the global economic slowdown
and the continuing fallout of the global food crisis.
7
Does not include data from The Commonwealth of Bahamas, Barbados and Haiti.
Same as for footnote #7 above.
Does not include data from The Commonwealth of Dominica, Guyana, Haiti, British Virgin Islands and the Turks and Caicos Islands.
10
Same as for footnote #9 above.
11
Does not include data from The Commonwealth of Bahamas, and Haiti.
12
Same as for footnote #11 above.
8
9
-7-
TABLE 4: OUTPUTS WHICH CONTRIBUTE TO AGRICULTURE AND RURAL
DEVELOPMENT
Indicators
Agriculture and Rural Development
7. Land irrigated or improved through drainage,
flood and irrigation works (hectares)
8. Stakeholders trained in improved production
technology (number)
9. Beneficiaries of rural enterprise credit
programmes (number)
Outputs
2005-2009
Programmed
Outputs
2010-2014
Outputs 2010
Outputs 2011
5,435
6,935
4,010
250
250
3,400
300
300
3,700
5,400
780
1,500
2.18
Progress on achieving the outputs set for the 2010-2014 is essentially on target in two of the three
indicators used for monitoring progress in the sector. (Refer to Table 4). The Bank proposes to increase
its assistance to the sector particularly through support for the training, research and use of appropriate
technologies for enhancing agricultural productivity.
Economic and Social Infrastructure
2.19
The target for the amount of primary, secondary and other roads built or upgraded has
already been surpassed and progress towards achieving the number of beneficiaries is on target (Refer to
Table 5). The upgrade and building of these roads will assist in opening new economic opportunities and
access to social services for over 80,000 persons. However, for the other three indicators significant work
remains to be done by BMCs if the output targets are to be achieved. Within the list of projects under
implementation there are thirty-four projects in this category for an estimated total cost of $361.1 mn. The
completion and evaluation of these projects should permit increasingly better assessment of the
contribution to outcomes of this category.
TABLE 5: OUTPUTS WHICH CONTRIBUTE TO ECONOMIC AND SOCIAL
INFRASTRUCTURE OUTCOMES
Indicators
Social and Economic Infrastructure
10. Primary, secondary and other roads built or
upgraded (km)
11. Beneficiaries of road projects (number) ‡
12. Sea Defenses/Landslip Protection/Urban Drainage
(km)
13. Community infrastructure built/upgraded
(number)
14. Beneficiaries of community infrastructure
interventions (number)
15. Installed energy generation capacity(megawatts)
Outputs
2005-2009
Programmed
Outputs
2010-2014
Outputs 2010
Outputs 2011
1,565
96,998
245
234,000
1578.8
16,369
318.4
72,295
10.2
49.0
0.0
1.1
152
679
24
27
133,282
19.2
342,000
n.y.a.
30,828
na
48,049
na
-8Private Sector Development
2.20
The performance of the private sector development category is shown in Table 6. There will be a
need for sustain efforts by both the Bank and BMCs authorities if the programmed outputs are to be
achieved. There are seven operations currently under implementation whose objective is to strengthen and
facilitate private sector development. The overall value of these operations amount to $82.2 mn and their
successful implementation should contribute significantly to private sector development outcomes for the
remaining period of the strategic plan.
TABLE 6: OUTPUTS WHICH CONTRIBUTE TO PRIVATE SECTOR DEVELOPMENT
OUTCOMES
Indicators
Private Sector Development
16. Value of credit made available to the private
sector ($ mn)
17. MSMEs benefiting from credit (number)
18. Beneficiaries of mortgage programmes by sex
(number):
- Male
- Female
19. Number of CTCS and other TA interventions
20. Number of beneficiaries of CTCS and other TA
interventions by sex:
- Male
- Female
Outputs
2005 - 2009
Programmed
Outputs
2010 - 2014
Outputs 2010
Outputs 2011
42
53
13.9
9.5
283
151
325
200
42
42
29
39
429
550
18
24
56
20
19
44
3,605
3,000
826
828
346
480
365
463
2.21
In an effort to improve the performance of its private sector initiatives, the Bank commissioned a
consultancy to evaluate its indirect lending activities and to recommend and develop a clear time-bound
action plan in relation to future financial intermediation. In summary the key findings were as follows:
(a)
Financial Intermediary (FI) lending remains an important source of long-term
development funding for Micro, Small and Medium Enterprises (MSMEs), mortgages
and student loans.
(b)
Development Financial Institutions (DFIs) continue to focus on high risk sectors such as
agriculture and fisheries, industry and tourism, and are more targeted to lending to the
poor and vulnerable.
(c)
The combined impact of risky sectors and risky borrowers has resulted in weak financial
performance of some DFIs.
(d)
There is still a degree of market failure in the provision of developmental finance and
should CDB withdraw funding from DFIs, there would be an immediate gap in BMCs
financial markets.
(e)
CDB needs to broaden its range of FIs.
Proposed actions to address these issues including the revision of the Bank’s private sector policy should
lead to further improvements in the future development outcomes of the sector.
-9Water and Sanitation
2.22
Most of CDB’s efforts in this sector are carried out through the activities of the Basic Needs Trust
Fund (BNTF) programmes. These initiatives are aimed at improving poor households’ access to water
and sanitation services. Additionally, the projects are focused on improving public health by providing
potable water and better sewerage disposal facilities. The programmed target for the number of
households with access to sanitation and water supply appear achievable within the timeframe
although there is a significant lag in performance on the other indicator. (Refer to Table 7).
TABLE 7: OUTPUTS WHICH CONTRIBUTE TO WATER AND SANITATION
OUTCOMES
Indicators
Water and Sanitation
21. Water supply lines installed or upgraded (km)
22. Households with access to sanitation and water
supply (number)
Outputs
2005- 009
Programmed
Outputs
2010-2014
Outputs 2010
Outputs 2011
2,932
2,387
111
57.7
33,002
25,900
5,682
10,829
2.23
There are four water and sanitation capital projects under implementation costing $28.9 mn in
three countries. By way of stimulating further activity in this sector, the Bank has commissioned a study
of the water sector in its BMCs. The study will evaluate the major development challenges currently
facing the Water Sector in the Caribbean, in the context of the potential future role of CDB. It is expected
to provide critical information which will aid in the decision-making process when developing and/or
updating relevant CDB policies and strategies for the enhancement of water and sanitation within its
BMCs and regionally. This study is expected to be completed by the third quarter of 2012.
Environmental Sustainability, DRM and Climate Change
2.24
Environmental sustainability, DRM and climate change are critical variables in the economic and
social development of the Caribbean. Initiatives contributing to adaptation, mitigation and improved
community resilience are important for ensuring the possibility of increasing economic growth rates. The
performance of the Bank to date has been encouraging (see Table 8) as it has surpassed two of the three
output targets and likely to achieve the third by the end of the programmed period.
TABLE 8: OUTPUTS WHICH CONTRIBUTE TO ENVIRONMENTAL SUSTAINABILITY,
DRM AND CLIMATE CHANGE OUTCOMES
Indicators
Environmental Sustainability, DRM and Climate
Change
23.Climate Change and DRM projects contributing to
adaptation, mitigation and improved community
resilience (number)
24. Projects with components contributing to
improved environmental management (number)
25. Projects with components supporting renewable
energy (number)
Outputs
2005-2009
Programmed
Outputs
2010-2014
Outputs 2010
Outputs 2011
8
6
13
20
7
5
0
1
1
2
4
0
- 10 2.25
Seven projects in this category are still under implementation in five BMCs at an estimated cost
of $75.3 mn. CDB has recently negotiated a $60 mn line of credit from the European Investment Bank
for financing climate action projects in BMCs. Funding from this line of credit will be available with an
interest subsidy. The Bank expects that further activities in the climate action area will be facilitated
through these resources.
Regional Public Goods
2.26
The results for the regional public goods indicators have been mixed with strong outturns for
interventions supporting regional policy development but weaker than expected performance in
relation to interventions supporting regional institutions. (Refer to Table 9). The recent establishment
of a focal point within the Bank for regional cooperation and integration should facilitate greater support
for regional institutions.
TABLE 9: OUTPUTS WHICH CONTRIBUTE TO REGIONAL PUBLIC GOODS
Indicators
Regional Public Goods
26. Interventions supporting regional institutions
(number)
27. Interventions supporting regional policy
development (number)
Outputs
2005-2009
Programmed
Outputs
2010-2014
Outputs 2010
Outputs 2011
25
25
3
4
18
20
15
16
Capacity Development
2.27
Capacity development activities during the period under review were designed to support the
implementation of Policy-Based Loans, improve economic and social policy-making, improvement of
regulatory frameworks, and enhance managerial and operational competence through training and
strengthening tax administration and revenue collection. The achievement of the targeted outputs is
highly likely given the performance to date. (Refer to Table 10).
TABLE 10: OUTPUTS WHICH CONTRIBUTE TO CAPACITY DEVELOPMENT
Indicators
Capacity Development
28. Public Financial Systems Upgraded and Public
Sector Investment Programme supported
(Budget, Treasury, Accounting, Debt and
Revenue)
Outputs
2005-2009
Programmed
Outputs
2010-2014
Outputs 2010
Outputs 2011
18
22
4
13
LEVEL 3: OPERATIONAL AND ORGANISATIONAL EFFECTIVENESS
2.28
CDB recognises that it can only increase its contribution to country and regional outcomes and
overall development effectiveness by continuing to improve its operational and organisational efficiency
and effectiveness. In order to achieve this, the Bank monitors performance on operational quality and
portfolio performance, resource allocation and utilisation, strategic focus, capacity utilisation and gender
equality, use of administrative budget resources and business processes and practices.
- 11 Operational Quality and Portfolio Performance
2.29
The data contained in this category (refer to Table 11) relies on the Annual Review of the
Performance of Projects under Implementation for 2010. The report for 2011 is still under preparation
and only limited data for that year is available for this review. In 2010 the percentage of projects under
implementation rated satisfactory to excellent was 97% or marginally below the target set for 2014 of
98%. Projects under implementation which were rated marginally satisfactory and unsatisfactory
accounted for 3% of the portfolio.
2.30
CDB has committed to a target of completing PCRs for 100% of the projects exiting the portfolio
as of 2009. The target date set for achieving this commitment is 2012. The performance in this regard of
25% as at the end of 2011 is unsatisfactory and contributes to the Bank’s inability to effectively track its
outcome performance. Every effort will be made to improve this performance and to achieve the target.
In this regard the Project Portfolio Management System is being reviewed in order to enhance the quality
and timeliness of the data related to project supervision and implementation.
TABLE 11: OUTPUTS WHICH CONTRIBUTE TO OPERATIONAL QUALITY AND
PORTFOLIO PERFORMANCE
Indicators
Operational Quality and Portfolio
Performance
1. Portfolio performance rating for
implementation (% satisfactory)
2. Percentage of projects completed in past
two years with PCRs
3. Percentage of projects with supervision
reports on Project Portfolio Management
System
Baseline
Year
Baseline
Value
Target
(2014)
Status As At
2010
Status As At
2011
2007
96
98
97
na
2006 – 2007
0
100
9
25
2007
61
100
100
na
Resource Allocation and Utilisation
2.31
The indicators in this category (refer to Table 12) show some decline in relation to the baseline
and target. Improvement can be expected to percentage of concessional resources allocated according to
the performance-based system after BNTF 7 resources are allocated in the last quarter of 2012. The
under-performance on the disbursement efficiency ratio13 in 2010 is due to a significant amount of
unplanned disbursements which could not be included in the calculation.
13
The disbursement efficiency ratio represents disbursements for the year expressed as a percentage of planned
disbursements for the year for projects under implementation.
- 12 -
TABLE 12: OUTPUTS WHICH CONTRIBUTE TO RESOURCE ALLOCATION
AND UTILISATION
Resource Allocation and Utilisation
Indicators
4. Percentage of concessional resources allocated
according to performance-based allocation
system
5. Disbursement rate
6. Disbursement efficiency ratio
Baseline
Year
Baseline
Value
Target
(2014)
Status As
At 2010
Status As
At 2011
2005
61
70
40
41.1
2007
2007
28
93
35
98
20
69
24
na
Strategic Focus
2.32
The Bank’s Charter requires that special attention be given to the economic and social
development of its LDCs. The results in this regard have exceeded both the baseline and the target set for
2010 and 2011. The Strategic Plan also calls for the development of results-based Country Strategy
Papers (CSPs) and National Poverty Reduction Strategies (NPRSs), as well as a strong focus on
environmental sustainability, climate change and regional cooperation and development. The targets set
for these indicators are attainable in the light of the performance to date. (Refer to Table 13).
TABLE 13: OUTPUTS WHICH CONTRIBUTE TO STRATEGIC FOCUS
Strategic Focus
Indicators
7. Proportion of financing directed to less
developed BMCs (%)
8. Number of approved country strategies in use
with results framework
9. Number of new or updated NPRSs for BMCs in
past five years
10. Proportion of financing supporting
environmental sustainability and climate change
(%)
11. Proportion of financing supporting regional
cooperation and development.
Baseline
Year
Baseline
Value
Target
(2014)
Status As
At 2010
2008
38
51
61.3
Status As
At 2011
74.9
2008
2
18
8
10
2004-2008
8
10
3
6
2007
10
10-15
2.0
10.0
2007
4
6-8
1
1.4
Capacity Utilisation
2.33
The Bank’s performance in human resource management is measured through four indicators
covering the levels of staff resources in the operations departments, distribution of staff resources
between professional and support personnel, and gender equality at the Bank. (Refer to Table 14).The low
percentage of budgeted professional staff is due to the number of vacancies in the professional ranks
during 2011, which also impacted on the overall ratio of professional to support staff. The outturns in
respect of the indicators of gender equality are consistent with the established targets. The Bank will
conduct a client satisfaction survey at the mid-term of the strategic plan which will also include a staff
engagement
survey.
- 13 -
TABLE 14: OUTPUTS WHICH CONTRIBUTE TO CAPACITY UTILISATION
AND GENDER EQUALITY
Capacity Utilisation and Gender Equality
Indicators
12. Percentage of budgeted Bank professional staff
in operations departments.
13. Ratio of professional staff to support staff.
14. Representation of women in professional staff
15. Representation of women in middle and senior
management positions
16. Client Satisfaction Survey Index
Baseline
Year
2008
Baseline
Value
50.5
Target
(2014)
58
Status As
At 2010
50
Status As At
2011
47
2008
2008
2008
1.02:1
37.1
38.9
1.3:1
40
45
1.23:1
41.2
44.4
1.17:1
41.0
44.4
n.y.a.
n.y.a.
n.y.a.
n.y.a
n.y.a
Use of Administrative Budget Resources
2.34
CDB’s budget adequacy is measured through two internal administrative expense ratios relative
to project approval and disbursements. The results for these indicators continue to be lower than the
target. (Refer to Table 15). This trend is due to the steady increase in operations since the baseline period
without a relative increase in administrative expenses. The trend is indicative of CDB’s continued strong
performance in the efficient management of its budget. However, these ratios should be closely monitored
for any negative impact on the quality of the expanding project portfolio as a result of over-stretched
resources.
TABLE 15: OUTPUTS WHICH CONTRIBUTE TO THE USE OF ADMINISTRATIVE
BUDGET RESOURCES
Use of Administrative Budget Resources
17. Administrative expenses per $mn as a percentage
of loan project approvals (three-year average).
2005-2007
Baseline
Value
13
18. Administrative expenses per $mn as a percentage
of loan project disbursements (three-year average).
2005-2007
15
Indicators
Baseline
Year
Target
(2014)
Maintain
Status As
At 2010
9.8
Status As
At 2011
12.3
Maintain
11.5
11.8
Business Processes and Practices
2.35
These indicators measure CDB’s responsiveness to its clients by tracking the progress of
processing time from loan approval to first disbursement for sovereign operations and loan processing
time (months from appraisal mission to project approval) for public sector operations. (Refer to Table 16).
The Bank is continuing to shorten the time for both indicators and is already ahead of the target set for the
loan processing time in public sector operations.
- 14 TABLE 16: OUTPUTS WHICH CONTRIBUTE TO BUSINESS PROCESSES AND PRACTICES
Business Processes and Practices
Indicators
19. Average time from loan approval to first
disbursement in public sector operations (months).
20. Average loan processing time (months from
appraisal mission to project approval) in public
sector operations.
Baseline
Year
2007
Baseline
Value
18
Target
(2014)
12
Status As
At 2010
17.1
Status As
At 2011
15.6
2007
6.7
5.0
4.9
4.0
LEVEL 4: OWNERSHIP, ALIGNMENT AND PARTNERSHIPS
2.36
CDB has made good progress on these Paris Declaration indicators but still needs to improve on
the alignment of its capacity development support with other partners’ programmes, use of country
systems i.e procurement systems, and joint country analytical work with other BMCs. (Refer to
Table 17).
TABLE 17: OUTPUTS WHICH CONTRIBUTE TO OWNERSHIP, ALIGNMENT
AND PARTNERSHIPS
Ownership
Indicators
1. Number of BMCs with national development
strategies, PRSs and CPAs
Harmonisation
2. Percentage of CDB country strategies with explicit
consideration of other agencies’ programming
3. Percentage of interventions using common
arrangements or procedures
Alignment
4. Percentage of capacity development support provided
through coordinated programmes
5. Percentage of financial support using BMC
procurement systems that either (a) adhere to broadly
accepted good practices, or (b) have a reform
programme in place to achieve these
Partnerships
6. Proportion of CSPs, other DP missions, project
financings conducted jointly with at least one other
DP (% annually)
Baseline
Year
2007
Baseline
Value
8
Target
(2014)
18
Status As
At 2010
8
Status As
At 2011
10
2007
100
100
100
100
2007
21
35
19
19
2005-2008
35
45
21
25
2008
25
35
25
25
2008
14
25
21
23
2.37
Effective partnerships are important for maximising the impact of CDB operations in BMCs as
well as reducing/containing administrative costs. The Bank actively participates in the international
arrangements for monitoring, reporting on and evaluating progress in implementing the Paris Declaration
including the provision of data to the OECD for its monitoring surveys as well as participation in the
Third and Fourth High Level Fora on Development Effectiveness.
3.
CONCLUSIONS
3.01
In this the first annual review of its Development Effectiveness it is found that CDB is making
satisfactory progress towards achieving many of its Level 2 and Level 3 targets. However, there are some
important issues which must be urgently addressed if the review is to serve its intended purpose of
- 15 evaluating CDB’s progress in implementing the Strategic Plan 2010-2014 against its results framework,
to highlight performance trends and to assist management’s decision-making. These issues include the
following:
Level 1 – Given the limited availability of current annual data on income poverty and human
development the review has only been able to assess performance in relation to 2010 and could
not provide any significant insights on the impact of the economic recession on outcomes in this
area. The data challenge also makes it difficult to assess the likelihood of BMCs achieving some
of the CMDG targets by 2015.
Level 2 – CDB is generally on track to achieve many of the output targets set out in the results
monitoring framework. Satisfactory levels of output are recorded for the period in five of the
eight categories being monitored i.e. agriculture and rural development, private sector
development, environmental sustainability, DRM and climate change, regional public goods and
capacity development. The data challenge identified at Level 1 is also evident in the education
and training sector where it is also important to urgently establish the targets for a number of the
indicators in order to facilitate effective monitoring. It is expected that for future reviews
adequate information will also be available to assess the extent to which completed projects and
programmes meet their objectives and the possible
reasons for any shortfalls.
Level 3 – CDB is making satisfactory progress in four of the six categories which are being
monitored i.e. strategic focus, capacity utilisation and gender equality, use of administrative
budget resources, and business processes and practices. The proportion of committed resources
directed to the LDCs remains high and financing support for environmental sustainability and
climate change is already within the set target range. In addition, progress towards improving the
Bank’s results focus is demonstrated by the increasing number of CSPs in use which contain
results frameworks.
The performance of the indicators of operational quality and portfolio performance in 2010 were
satisfactory except for the proportion of projects completed in the past two years with PCRs. The
performance of this indicator improves in 2011 but is still substantially below the level to which
the Bank had committed itself. Information for 2011 is not yet available for the other indicators.
Level 4 - Good progress was made in 2010 on these Paris Declaration indicators but much work
remains to be done. The assessment is incomplete because of the lack of data for 2011.
3.02
While encouraged by the progress made towards meeting the RMF targets, management is
concerned about the areas of unsatisfactory performance and propose among other measures to review the
country and sector policy and strategies where appropriate in order to improve their results orientation;
strengthen project supervision; facilitate the timely completion of PCRs and continue to review the
deployment and use of staff resources. In addition the Bank will continue to support initiatives to assist
BMCs to enhance their data collection, analysis and dissemination capabilities.
APPENDIX 1
Caribbean Countries Poverty Indicators – 1996-2009
Country/Years*
Anguilla/2002; 2009
Period 1
Period 2
% Poor
Population
% Indigent
Population
Gini
Coeficient
% Poor
Population
% Indigent
Population
Gini
Coeficient
23.0
2.0
0.31
5.8
0.0
0.39
18.0
3.7
0.48
9.3
na
Na
Antigua & Barbuda/2006
Bahamas/2001
Barbados/1997; 2009
13.9
na
0.39
19.3
9.1
0.47
Belize/2002; 2009
33.5
10.8
0.40
41.3
15.8
0.42
22.0
0.5
0.23
1.9
0.0
0.4
BVI/2002
Cayman Islands/2008
Dominica/2002; 2009
39.0
15.0
0.35
28.8
3.1
0.44
Grenada/1999; 2008
32.1
12.9
0.45
37.7
2.4
0.37
Guyana/1997; 2006
43.0
29.0
na
36.1
18.6
na
76.0
56.0
Na
16.5
na
Na
36.0
3.0
Na
Haiti/2001
Jamaica/2002; 2009
19.7
na
0.4
Montserrat/2009
St. Kitts/2000; 2008
30.5
11.0
0.39
23.7
1.4
0.38
Nevis/2000; 2008
32.0
17.0
0.37
15.9
0.0
0.38
St. Lucia/1996; 2005
25.1
7.1
0.50
29.0
1.6
0.42
St. Vincent/1996; 2009
37.5
25.7
0.56
30.2
2.9
0.40
Trinidad & Tobago/1997; 2007
24.0
8.3
0.39
17.0
na
Na
26.0
3.2
0.37
Turks & Caicos Islands/1999
.
*The first year mention relates to Period 1 and the second Period 2. When only one year’s data is available it is shown
in Period 2.
APPENDIX 2
Caribbean Development Bank’s Support to the Education Sector in Haiti: Results to-date
The impact of the CDB-funded projects in the education sector in Haiti has, in some cases,
exceeded results planned at appraisal, and complements the support provided by other
multilaterals which all work synergistically to address the significant quantitative and qualitative
deficits in the sector. The following summarises some key outputs of CDB’s projects at the end
of 2011:
(a)
175,000 students supported with tuition waivers, in 1,121 participating schools;
(b)
73,000 students benefitting from school lunches;
(c)
3,054 teachers pursuing teacher-training in 12 colleges;
(d)
4,000 students in 100 schools participating in literacy programme; 216 teachers
trained and 198 school libraries supplied;
(e)
100 motorcycles supplied to Ministry of Education officers to support supervision
work in the decentralised offices;
(f)
National School Census (2010) completed providing up-to-date data on the
education sector – the first of its kind in Haiti;
(g)
School Management Committees established and functioning in 80% of EFA
project schools; and
(h)
30 students completed undergraduate degree programmes at the UWI, Mona,
Jamaica.