information and guidance they can from the World Bank.
9. The appraisal or review of development banks and their performance should
not of course be a once and for all operation. The banks should be examined
at intervals, preferably by visits to them whenever convenient by ODA staff
(ie members of Geographical Departments and EPS when visiting the recipient
countries).
Project Appraisal
10. The ODA will always need to be knowledgeable about the project appraisal
methods of a development bank before providing aid funds. If these methods
are considered acceptable, aid funds can be allocated to the bank, subject to
submission to the Projects Committee where the allocation to the bank is to
exceed £400,000, but with the choice of projects left entirely in the bank's
hands. There would of course need to be a review before any additional
funds were allocated.
Generally,
11. If a bank's project appraisal methods are entirely unacceptable, aid should
be provided only in the most exceptional circumstances and on the condition that
the ODA would make its own appraisals of any proposed projects.
however, it would defeat one of the main advantages of lending through development
banks if such lending were regularly made subject to the condition that the ODA
should be given the opportunity to appraise all projects before disbursements
are made. Where we are not wholly satisfied with a bank's appraisal methods
therefore one or more of the following courses should be followed:-
}
i. rejection of the development bank as a suitable channel for British
aid, subject perhaps to a review of the position at a later date;
ii.
the allocation of a relatively small loan, with further tranches to be
subject to an evaluation of the manner in which the first projects were
chosen;
4
No comments yet.
Private notes are available after approval.