Niger - Public Enterprise Development Project

 Public enterprise development project Report No: ; Type: Report/Evaluation Memorandum ; Country: Niger; Region: Africa; Sector: Public Sector Management Adjustment; Major Sector: Public Sector Management; ProjectID: P001983 Niger: Public Enterprise Institutional Development (Credit 1838-NIR) The Implementation Completion Report (ICR) for the Niger Public Enterprise Institutional Development Project (PEIDP, Credit 1838-NIR, US$5.5 million equivalent approved in FY87 and closed in FY95, three years later than originally planned), was prepared by the Africa Regional Office, with Appendix 2 contributed by the Borrower. The objective of the PEIDP was to strengthen the Government's ability to devise and implement public enterprise reforms_ including privatization, monitoring the sector progress, and managing its development. The project financed office equipment, vehicles and operating costs of a Project Unit, consultants, studies, drafting of legislation and training to provide institutional support for the implementation of the First Structural Adjustment Credit (SAL I, Credit 1660_NIR, SDR 18.3 million, approved in FY86) and the Public Enterprise Sector Adjustment Program (PESAP, Credit 1833_NIR, SDR 46 million, approved in FY87). These last two projects were audited by OED on June 29, 1993. The Operations Evaluation Department (OED) concluded that the outcome of both projects was unsatisfactory, institutional development was rated as negligible and sustainability as unlikely. Although PEIDP met most credit conditions and all legal covenants, the project did not achieve its development objectives. Most of the studies, review of legislation, restructuring plans and training courses financed with this credit were completed to prepare in advance for the implementation of reforms that eventually did not occur. The Bank did not anticipate the ensuing lack of Government commitment to reform. Also, the ICR concluded that the project was poorly designed, hastily prepared, incorporated too many components and failed to include safeguards to deal with pre-identified risks. Project implementation problems resulted from weak Government commitment to public enterprise reform and limited private sector response to the privatization program. Also, the project design did not include qualitative or quantitative indicators to measure progress toward the objectives or to measure the impact of the project. The ICR rates the project outcome as unsatisfactory, sustainability as uncertain, institutional development as partial and Bank performance as deficient. OED agrees with these ratings, except for institutional development and sustainability, which OED rates as negligible and unlikely respectively. The ICR is of satisfactory quality, candid and transparent. On lessons learned, the ICR emphasizes the importance of executing the project within a proper macro- and socio-economic environment, the need for Government commitment, proper dialogue, monitoring and evaluation mechanisms and technical expertise. The ICR also emphasizes that the closing date of a project should not be extended when realization of the objectives is unlikely. OED agrees with this assessment. No audit is planned.