Reconnaissance of AID"s experience with capital projects

This report examines seven hypotheses used to justify individual capital projects, with an emphasis on the linkage between capital projects and development. These hypotheses are that capital development projects can: (1) significantly help overcome important sectoral bottlenecks; (2) effectively support or help leverage policy reform, especially at the sector and subsector levels; (3) leverage financial resources, including funds from host governments, other donors, other U.S. government agencies, and the private sector; (4) promote U.S. exports directly and also generate follow-on U.S. exports; (5) leverage non-U.S. financial resources for U.S. procurements; (6) help alleviate unemployment and/or improve the quality of life; and (7) help strengthen developing country private sectors. The report then identifies 50 projects that reflect the identified hypotheses. The final section of the report presents recommendations for further research on capital development projects.