The Bank's borrowers own and must manage their projects to ensure that intended development results are realized. The implementation environment is complicated, however, especially in the social development and poverty reduction areas where the Bank is increasing its portfolio investments. Some institutions are weak and lack project management experience. The need to mesh Bank and borrower procurement rules, designed to ensure transparency and fairness, can complicate the acquisition of project goods and services. Structural changes to respond to beneficiary needs can slow project start-up.
Many borrowers face fiscal constraints that hinder the provision of counterpart funds.
While these and other problems may cause project delays, systematic monitoring and follow-up can reduce the risk of failure to meet development objectives. Annual portfolio review missions to each country are designed to resolve serious implementation problems. Country Papers explicitly take account of portfolio implementation experience and systemic constraints as factors influencing new programming. Improved information on portfolio performance from Country Offices helps focus management attention on key project issues. The 1995 portfolio assessment illustrated the beneficial effects of active monitoring and timely management intervention in improving project performance.