About 10 percent of the portfolio, some 40 projects, were experiencing more serious implementation difficulties and an action plan to resolve the problems has been worked out with the borrower and the executing agency. A focused staff assessment of the prospects for development results from a sample of 147 projects in seven sectors in the portfolio concluded that it was probable that 90 percent of projects in the sample would achieve their intended development objectives. While these figures represent modest improvements over the recent past, the Bank continues to intensify its portfolio management efforts. 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.