**PHN 1992 Sector Review**

**7**

_Table 5: Cofinancing from Official Sources in P:'HN Projects, FY91 and FY92_ foi the private sector and non-governmental organizations (NGOs).

_Figure 3: Breakdown of Total Project Costs by Erpendizture Category_

|3at. Cofinarnce<br>_.............._|d Projects<br>_................_|_................_|_..............._|_........................._|<br>_............_<br>_Erpendizture Category_|
|---|---|---|---|---|---|
||FY91|-------------------|FY<br>-|92<br>I-------------------||
|Region|........................<br>No. of<br>Coftmnancd<br>Projects|....<br>Total No.<br>of PHN<br>**Projects**|..<br>.........<br>No. of<br>**Coflnance**<br>**Projecs**|..<br>**Tbtal**No.<br>**d**<br>ofPHN<br>Projects|Project<br>Cost Categories<br>(In U5 $mllions)|
|**Africa**|8|12|3|6||
|E.**Asia**|1|2|0|1||
|**S. Asia**|**3**|**4**|**2**|**3**|Vhce|
|**ECA**|**0**|**0**|**1**|**2Te**|Ast|
|_LAC_<br>MENA<br>AU Regions<br>3b. Additionali|3<br>2<br>....<br>17<br>ty(9b)R.cr|5<br>5<br>....<br>28|**3**<br>1<br>....<br>10<br>Det|3<br>1<br>....<br>16|_T-o3iSWdY_<br>_<br>fZM<br>/////<br>DIurgs4<br>**Iniest Costs**WK<br>Ewip!Furn<br>**91t**25<br>**404.9/5**<br>232.14<br>Pr~~~~~~~~~~~~~~~~~~4as<br>~e|
||**Oveall**<br>Addition|ality|Addition<br>Coftnance|ality in<br>a<br>d<br>Projects|<br> <br><br>14<br>Cm_ Wor|
|Region|FY91|FY92|FY91|FY92|76|
|.....................<br>Africa|......................<br>26.2|.....................<br>30.2|.....................<br>41.4|..............<br>57.8||
|E. Asia|12.9|n.a.|35.3|0.0||
|**S. Asia**|69.5|18.4|95.6|23.2||
|ECA|n.a.|10.0|n.a.|19.2||
|LAC|13.6|40.6|79.9|40.6|<br> <br> <br>|
|MENA|105.0|38.8|148.6|38.8|2.15<br>Project costs<br>allocated<br>to<br>drugs|
|**AU Regions**|**56.0**|**19.3**|**110.2**<br>.|**9.4**|(including<br>contraceptives<br>and<br>nutrition|

2.15 Project costs allocated to drugs (including contraceptives and nutrition supplements) increased significantly from 6 percent in FY91 to 26 percent in FY92. The "drugs" cost category is shown separately in the figure, since it has been categorized both as an investment and as a recurrent cost by different projects within and across regions. While drug costs are recurrent in nature, in that supplies need to be replenished on an ongoing basis, the purchase of an initial stock of drugs through a project, which will be replenished ultimately through cost recovery and/or by other means, is sometimes categorized by task managers as an investment cost.

2.14 Investment costs represented a smaller share of project costs in FY92 than in FY91--59 percent versus 70 percent (Figure 3). The greatest share of investment costs financed in FY92 projects was for equipment, furniture, supplies and civil works--70 percent. Recurrent costs, including drugs, contraceptives and nutrition supplements, accounted on average for 41 percent of total project cost, an increase over the 30 percent share in FY91. This increase in recurrent costs may reflect a growing appreciation of the high ratio of recurrent to investment costs characteristic of the human resources sectors and an increasing willingness to finance assistance of this type. Financial sustanability of FY92 operations is addressed through a combination of the following: Bank financing of recurrent costs on a gradually declining basis; and financial reforms to mobilize additional resources for PHN, including increased allocation of public funds for PHN, cost recovery schemes, and increased role

# B. Sector **Work**

2.16 TWenty-five sector reports were completed in the PHN sector during FY92, a decline from the 33 reports produced in FY91 (see Annex 1, Thbles 6 and 7). Of these, five reports were published in grey cover, eleven in green cover, and nine in yellow cover. Three reports focused mainly on population, 10 on health, and three on nutrition. One report covered