Project assistance completion report (PACR) : production credit project (263-0147)

Results were mixed. The short-term credit component used almost all of its funds, approving over 350 transactions with an average value of $100,000; the number of participating banks increased from 5 to 9. Progress in the Bankers' Training Institute (BTI) component, on the other hand, was slow; three project extensions were needed to give BTI sufficient time to become organized before start-up of its activities. Ultimately, however, thanks in part to the appointment of a new Director, the component moved forward, and BTI now serves as a major educational body to the business sector, offering bankers training in finance, banking, and economics, and providing the general business community with conferences on various topics as well as networking opportunities. The World Bank plans to provide the Institute with further assistance in its upcoming Banking Sector Reform Program. Implementation schedules were overly ambitious; overall, the PACD had to be extended five times. The project also failed to facilitate policy reforms -- concerning the exchange rate at which project transactions were to be repaid and the interest rate to be charged to borrowers of project funds -- that were prerequisites for project success. Due to its relatively modest funding level, the project lacked the leverage needed to increase private sector production. The project goal and purpose were neither established on the basis of detailed economic analysis of private sector needs, nor linked to specific constraints. Economic/financial analysis should have included a full examination of project costs and benefits. In addition, the Project Paper should have defined objectives, performance indicators, alternative means of accomplishing objectives, and mechanisms for evaluation.