China - Second Technical Cooperation Project

 Second technical cooperation project Report No: ; Type: Report/Evaluation Memorandum ; Country: China; Region: East Asia And Pacific; Sector: Pre-Investment / Portfolio Development; Major Sector: Multisector; ProjectID: P003496 June 16, 1995 China: Second Technical Cooperation Project (Credit 1664- CHA) The Implementation Completion Report (ICR) for the China Second Technical Cooperation project (Credit 1664- CHA) was prepared by the East Asia and Pacific Regional Office, with an excellent evaluation by the Borrower comprising Appendix B. The main objectives of this US$20 million project (approved in FY86 and closed in FY94 after two years of extension) were: (i) to assist the Government in preparing projects expected to be financed by the Bank or IDA; and (ii) to develop capacity for preparing and implementing investment projects and administering technical assistance. The project also aimed at reinforcing the local consulting industry. Notwithstanding some delays in implementation, the project's objectives were achieved satisfactorily. This was especially the case with regard to the primary objective of project preparation. The project resulted in the preparation of 26 Bank/IDA investment projects totaling US$5 billion. The ICR rates the project's institutional development (ID) impact as substantial and its sustainability as likely. Both Bank and Borrower performance are rated as satisfactory. These ratings appear to be appropriate. The justification for the ID rating is, however, not fully developed in the absence of either clearly stated M objectives or monitorable ID performance indicators. But considering that over 30 subproject implementing agencies were involved, most of which were new to Bank procedures in managing technical assistance, the fact that implementation proceeded with only minor problems itself suggests that considerable capacity building must have taken place. The ICR is of acceptable quality, but does not include an operational plan discussing follow-up actions needed. The Ministry of Finance proposed several measures to improve its own as well as the implementing agencies' capacities to manage technical assistance and other technology transfer instruments (such as study tours) more effectively in future. One of these measures would be a seminar on technical assistance management, but no follow-up action on this has yet been taken. It is, however, auspicious that the design of a follow-up project (Reform, Institutional Support and Preinvestment project, Credit 2447) incorporated some of the lessons identified in the ICR. The main lessons identified include the needs for (i) detailed preparation of individual subprojects, especially those with substantial ID objectives, at the appraisal stage; (ii) appropriate mechanisms and processes for coordination and periodic monitoring of subproject implementation; and (iii) training requirement assessments and careful design of training programs. No audit is planned.