country assistance program evaluation for bhutan
TRANSCRIPT
8/2/2019 Country Assistance Program Evaluation for Bhutan
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Country Assistance Program
Evaluation for BhutanThis country assistance program
evaluation (CAPE) assesses the
perormance o ADB’s assistance
to Bhutan rom 2001 to 2009.
It updates the 2005 evaluation
and assesses the extent to which
the 2005 CAPE lessons and
recommendations were reected
in ADB’s subsequent country
strategy and programs.
Despite steady economic growth and tremendous progress made towardachieving the Millennium Development Goals, Bhutan continues to be adeveloping country with high levels o rural poverty, widening income
inequality, and a narrow economic base that is dependent on hydropower exportsto India. ADB has provided nancial and technical assistance to Bhutan amountingto about $317 million rom 2001-2009. Development assistance was providedto the energy sector, transport, nance and private sector development, urbandevelopment, scal and debt management, health sector reorms, and internationacommunications. ADB support or inclusive development has sought to (i) extendeconomic growth and social development to rural areas through rural connectivityprojects; (ii) acilitate the absorption o rural migrants through the provision o basic inrastructure in major urban centers; and (iii) create conditions or economicgrowth through assistance or strengthening nancial resource mobilization andintermediation, the development o micro, small and medium enterprises, economimanagement, and public-private partnerships in hydropower.
This Learning Curves summarizes the evaluation study which assesses ADB’sassistance to Bhutan, updates the 2005 Country Assistance Program Evaluation (CAPand assesses the extent to which the 2005 CAPE lessons and recommendations werreected in ADB’s subsequent country strategy and programs.
Overall Assessment and Key Findings The overall rating or ADB country operations and
programs in Bhutan is successul , which is based on thecomposite ratings o satisactory or strategic positioning,relevant, eective, efcient, less likely sustainable, andmodest to substantial impact. The perormance o ADBassistance or the energy sector, urban development, andpublic sector management has been successul , whileassistance or the transport sector, nance and privatesector development has been partly successul .
ADB has made major contributions to ruralelectrication; the commercialization o the powersector; the preparation and application o a public–private partnership model or hydropower projects; the
development o basic inrastructure in two major centers;the establishment o a legal, regulatory and institutionalramework or the nancial sector; and the developmento capacity or debt management, road planning,road saety, and construction management. Ongoingassistance will likely result in urther outcomes includinga nancial regulatory ramework based on best practices,the new Southern East–West Highway that will acilitatetrade and development o southern Bhutan, and theexpansion o urban inrastructure or 60,000 people.
Rural connectivity projects have helped increase income levels in rural areas,mainly due to improved prices or agricultural products and/or increased
Bhutan has been a successful c
development partnership betw
ADB and a member country. A
assistance in Bhutan was well
with country development ne
government development pri
and Strategy 2020.
Learning CurvesDecember 2010
EvaluationIndependent
8/2/2019 Country Assistance Program Evaluation for Bhutan
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opportunities or non-arm income. The eects were larger in areas that werecomparatively better o prior to the inrastructure project in question because o other economic actors such as tourism-related income, the availability o extensionservices, and closer proximity to economic centers.
The sustainability o inrastructure projects has been aected by a lack o adequate resources and systems or maintaining assets, including those nancedby ADB. Resource efciencies need to be careully assessed or rural connectivityprojects, considering their comparatively high cost nature and limited number o beneciaries in a sparsely populated country.
Implementation efciency, although still above the ADB average, has beendeclining in recent years, possibly due to the increasing size o projects andcomplexity o project designs, requent project design changes, and increasingwork volumes coupled with limited capacity o domestic contractors. Givenrapidly growing volume o nancial assistance, these issues need to be addressed.
Lessonsn Long-term commitment, continuity, adequate resource levels, and a
comprehensive and strategic approach to addressing binding sector constraintshave been most eective in delivering satisactory development results.
n Programs with high levels o government ownership have had better outcomes.
n Country conditions need to be adequately reected in project design. At the
same time, it is important not to lose sight o established best practices. Whilethere is a need or adaptation o these practices to suit local circumstances,there appear to be little grounds or exceptionalism.
n The review o experiences rom other sparsely populated countries or countrieswith similar topography might have beneted project selection and design orrural connectivity projects.
n Rural connectivity projects need to be accompanied by programs in othersectors that help maximize their socioeconomic benets. Such programs neednot be nanced by ADB, but require integrated planning and a certain level o coordination o implementation activities.
n Policy dialogue needs to be based on adequate analysis, a good understandingo various policy options, and mutual agreement on the nature and underlying
principles and objectives o individual policy actions to be eective.
n Capacity development can be eectively delivered through sector-basedinstitutional development strategies that take a comprehensive view o required policy and governance reorms to ensure that adequate incentives arein place or skills acquisition and the application o new systems and processes.
n Particularly in a low-capacity environment, the selection and supervision o project preparatory consultants must ensure quality outputs.
n ADB can add considerable value through support or project design andimplementation and the introduction o best practices or project management,procurement, and nancial management.
n It is difcult to achieve 100% concurrence or land pooling among hundreds
o landowners. There is a need to design practical, easible alternativearrangements in line with country conditions and the underlying principles o ADB saeguard requirements.
Feedback ADB Management appreciates the overall assessment o ADB’s assistance to Bhutanduring 2001-2009. Management agreed with six out o seven recommendationso the study. The Chair’s Summary o the Development Eectiveness Committee(DEC) highlighted that Bhutan has been a successul case o developmentpartnership between ADB and a member country. DEC members encouragedsta to improve development partner coordination, improve quality o technicalassistance through better monitoring o consultants and close coordination bysta, and aligning saeguard policies to national laws and practices.
Team Leader: Henrike Feig
Tel +63 2 632 5694
Email: [email protected]
Contact Us
Independent Evaluation Department
Asian Development Bank 6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines Tel +63 2 632 4100
Fax + 63 2 636 2161Email: [email protected]
www.adb.org/evaluation
Learning Curves are handy, two-pagequick reerence designed to eed
ndings and recommendations romevaluations to a broader range o clients.
Recommendations
n Improve results orientation o
ADB strategies and programs
n Enhance the eectiveness
o support or capacity
development
n Improve mainstreaming o
thematic concerns in ADB
operations
n Enhance the economic
efciency o uture rural
connectivity projects
n Improve the sustainability o
ADB operations
n Improve implementation
efciency o ADB operations