On Wednesday 26th September 2018, a Capitalization Workshop was held at the African Development Bank (AfDB) in Abidjan, to share the results of the two project cluster evaluations with Bank staff who design and implement Program Based Operations (PBOs). The aim of the workshop was to give staff the opportunity to discuss the results of the evaluations, focusing on the lessons learned and, in addition, agree on the key actions for the Bank going forward.
PBOs, formerly known as “policy based operations” and popularly known as budget support, are financing instruments used by the AfDB to provide funds directly to a country’s treasury to support the national budget. The PBO modalities that are used by the Bank include General Budget Support, Sector Budget Support, and Crisis Response Budget Support. From 2012, when the Bank’s PBO Policy was approved, to 2017, it has deployed PBOs worth UA 7.2 billion (USD 10.2 billion). This large portfolio yields ample opportunities for drawing lessons from experience.
Independent Development Evaluation (IDEV) has conducted an evaluation of the Bank’s use of PBOs for the period 2012-2017. Two PBO project cluster evaluations - one with a focus on energy, and the other on the private sector environment – complemented a broader thematic evaluation. The two cluster evaluations generated lessons that can inform the future programming, design and implementation of PBOs.
The workshop was opened by Mr. Abdoulaye Coulibaly, Director of the Governance and Public Financial Management Coordination Office. He acknowledged and welcomed the results of the evaluation, noting that the evaluation confirms the utility of the PBO instrument and that the staff has a good understanding of it. He observed that the Bank could do more in terms of its engagement in policy dialogue. Mr. Kambanda Callixte, who represented the Energy Complex, commended the timeliness of the evaluation. IDEV then made a presentation of the evaluation results, which addressed the programming, strategic focus, performance, and the capacity surrounding PBOs, among others. After the presentation, an earnest discourse ensued.
Overall, participants agreed with the lessons from the IDEV evaluation. They underscored the need to promote a multi-year approach in designing PBOs. They also highlighted the need for coordination of PBOs with same-sector operations in a country, staff capacity building, greater teamwork among sector and field staff and timely engagements (advice, policy dialogue, technical assistance) with governments implementing the PBOs.
Participants expressed the need for the Bank to view PBOs as part of a powerful package of interventions by the Bank in African countries. This package would have to include the required expertise, analytical work, coordination and technical assistance.
The half-day workshop was jointly organized by IDEV, as well as the Governance and Public Financial Management Coordination Office, the Energy Policy & Regulation and Grid Base Power System Divisions of the Bank. It was attended by 25 Bank staff members, including staff from regional and country offices who participated in the workshop via video conference.
IDEV will present the PBO Evaluation to the AfDB Board of Directors in October 2018. Thereafter, the report will be made available on its website.