Fourth Independent Evaluation of SCF's Expanded Project Supervision Report Exercise

Jul 2012
This report presents OVE's independent validation of the Expanded Project Supervision Reports fourth exercise (XPSRs), prepared by the Structured and Corporate Finance Department (SCF). The Evaluation Cooperation Group (ECG)'s guidelines require the preparation of the XPSR in the same year they reached Early Operating Maturity (EOM). SCF is still in noncompliance with this requirement since the current exercise validated the XPSRs of projects that reached EOM in 2010. These 15 projects represent US$1.37 billion among Loans and Guarantees, supporting total project costs of about US$4.65 billion. Most of the self-evaluated projects (67%) are from nonfinancial markets. Five self-evaluated projects are from financial markets. Four projects were prepaid.Each project is evaluated on four dimensions: Development Outcome, Profitability, Additionality and Work Quality. The Development Outcome dimension assesses project performance in four areas: Business Performance, Economic Development, Environmental and Social Effects and Private Sector Development. The Profitability dimension measures the project's gross profit contribution to IDB. The Additionality dimension assesses whether the project adds value regarding financial, Environmental, corporate governance and regulatory issues. Finally, the Work Quality dimension assesses the Bank's work performance in three areas: Screening, Appraisal and Structuring; Monitoring and Supervision Quality and Role and Contribution to IDB.
This report presents the main findings and conclusions from the evaluation exercise. Some specific financial, business or proprietary information has been edited, in compliance with the Bank's Access to Information Policy.