Why Is the Number of IDB Projects with Extensions beyond 24 Months Increasing?: Should We Be Concerned?
Peer Reviewed
Date issued
August 2018
Subject
Investment Project;
Project Cost Estimation;
Project Cost Overrun
JEL code
C20 - Single Equation Models • Single Variables: General;
C50 - Econometric Modeling: General;
O22 - Project Analysis
Country
Brazil;
Colombia;
Dominican Republic;
Mexico;
Peru;
Argentina;
Uruguay;
Trinidad and Tobago;
Chile;
Jamaica;
Bolivia;
Guatemala;
El Salvador;
Guyana;
Ecuador;
Bahamas;
Paraguay;
Barbados;
Suriname;
Honduras;
Nicaragua;
Costa Rica;
Venezuela;
Panama;
Belize;
Haiti
Category
Technical Notes
The stock of IDB-supported projects with extensions longer than 24 months is increasing. This is creating concerns about mounting costs for both the Bank and the borrower country as well as unnecessary risks to achievement of the project objectives. The model was able to correctly classify 67 percent of a sample of 418 completed investment projects between 2010 and 2017 as being with or without extensions.
