Caribbean institutional development

PES covers the period 1980-4/84 and summarizes an attached special evaluation (XD-AAP-961-A) based on document review, site visits, and interviews with staff of the CDB Technical Assistance Unit (TAU). The objectives of the CDB Technical Assistance Fund (TAF) - established to support the provision of TA - have generally been achieved. Despite some operating problems (inadequate subproject (SP) monitoring and a resultant lagging draw-down of funds by beneficiaries) the TAF is recognized by users as an established institution playing an essential economic development role in the region. Some $4.3 million of TAF resources have provided management, administrative, and technical advisors through 98 SP"s. The distribution of funds has been balanced satisfactorily over countries, project types, and sectors, and 80% of TAF resources have been funneled to LDC"s (exceeding the target of 70%). Funds have been allocated primarily to SP"s in agriculture (21%); power, water, and energy (21%); transportation and communication (17%); and multisector activities (14%). TAF activities have resulted in a number of capital SP"s with positive employment effects. There has been a recent shift to pre-investment SP"s, and employment creation is expected from these studies as well. CDB management training has upgraded the TAU"s competence in understanding and using the TAF, providing a vital management base within the Caribbean community. The CDB has also established a Unified Special Development Fund to support continued TA. Project experience has demonstrated the need for: TAU field officers to facilitate early SP implementation, ensure that contractor evaluations are performed, and collect data for the TAF; close SP monitoring; and decentralization of the approval process to increase the TAF"s responsiveness to clients" needs. Action decisions call for a review of project status, including the SP pipeline, to detemine if a project extension to allow for disbursement of remaining funds is justified.