FIRST EVALUATION OF TECHNICAL ASSISTANCE FUND

This special evaluation, attached to PES (PD-AAG-336-B1), covers the period 4/1/78-8/31/80 and is based on interviews with CDB staff and document reviews. The Technical Assistance Fund (TAF) was created primarily to aid the less developed Caribbean nations (e.g., Antigua and Belize) by providing advisory and managerial services in development, project preparation, and implementation. TAF also funds upgrading and expansion of CDB"s staff. TAF has had a slow start; as of 9/31/80, only $687,000 was approved for TAF projects, and only $247,000 had actually been disbursed, out of contributions totalling $3.5 million. The highly centralized procedural and administrative system for funding approval is a primary cause of the delay. Another is the relative lack of effort to market the resources available through TAF, whose potential has barely been tapped. TAF has, however, succeeded in allocating 70% of the approved funds to the poorer nations and has achieved a broad sectoral mix among the approved projects, most of which have been quite small. Assistance has been provided in agriculture, industry, infrastructure, finance, and transportation/communication. Funding constraints have not limited TAF"s use to date but could become a serious problem as demand continues to grow. CDB should take a more active role in marketing TAF, especially in the poorer nations. The funds approval process should be formalized and streamlined and a sound data base should be developed to improve reporting. Equally important is the need to decentralize management in terms of both responsibility and accountability. A TA unit, with technical, marketing, and administrative roles, should be established to coordinate all of CDB"s TA activities. Other recommendations are to carry out a comprehensive revision of administrative practices. The process for selecting consultants should be shortened and simplified; and a system established to spot potential implementation constraints and recommend alternative action.