19

# **Ongoing MGF Projects**

5.20 Table 3B shows a sixth completed project (Argentina)<sup>and the four ongoing projects. The</sup> ongoing projects have moved away from export<sup>advisory services to general business support services,</sup> which is characteristic of other more recent projects.<sup>Not much can be said prior to project completion</sup> data. But one issue is that the designs are widely<sup>divergent; e.g. the expected management-intensity of</sup> each project differs greatly. Planned operating costs<sup>as a percentage of the expected value of grants</sup> ranged from only 6.2% in the case of South<sup>Africa, to nearly 50% in the case of Uganda. Since</sup> management quality is so critical to the success of<sup>these projects, while at the same time the operating</sup> cost of grant funds has to be kept in check, this suggests<sup>that good practice models for management and</sup> governance of the MGFs have not been followed.

**Table 3B Comparative Cost-effectiveness of MGF Proiects**

|**Project name**|ARGENTINE<br>**Export**<br>**Development**<br>_________poject**195**|**UGANDA**<br>**Private Sector**<br>**Competitivenes**<br>**Project196**|**SOUTH AFRICA**<br>**lwrbl**<br>**s coe**<br>**project**<br>**1997**|**MEXICO**<br>**Klowledge/**<br>**Innovation**<br>**rect 19-f**|BANGLAIDESH<br>**Export diversifi-**<br>**ation project 1"9**|
|---|---|---|---|---|---|
|**Project cost****_(S_**<br>**mlllion)**|**_MOF_**<br>_32D_<br>Total Bank 38.5<br>Toad**proi**74.2|MOf<br>3.0<br>Total Bank 14.5<br>Tot. Proict 20.9|MGF<br>24.4<br>Tot Bank<br>46.0<br>Total Proi<br>88.6|MOP<br>30.0<br>Tot**Bank**300.0<br>TotProf 663.0|MGF<br>15.8<br>Tot Bank 32.0<br>Tot project 48.0|
|**Cost of project**<br>**_prop/_supo($mu)**|Tol project 0.5<br>**(1I9.8**SW)|Project not|Proe not complete|Project not<br>**conlet**|Project not<br>complete<br>|
|<br>**Grants disbursed**<br>(Sn<br>.<br>.|<br>17.8<br>(26.6 approved).|1.5<br>(at331/)|N/a|N/a|N/a|
|<br>Number of<br>subprojeets|<br>1060|570 (at 12/99 -<br>after tee**Years**||||
|<br>**MGF operating cost**<br>**over project life ($**<br>millon)|Appraised cos=<br>**5.80**<br>Actual=6.41|**Appraised**<br>**cost**<br>-t<br>1.3**(approx)**|**Appraised**<br>proj<br>**admin**oost 1.5|n/a. (fund<br>mnaged by Nat<br>Sci**Foundation)**|Appraised cost<br>4.46|
|<br>Avg**annual actual/**<br>appraied<br>**disbursement**%|N/a<br>Cum. Disbursed<br>at closure 66%|N/a<br>_|N/a|**N/a**|N/a<br>|
|**MGFappralsed**<br>**operating costf**<br>**erantvalue %**|18.1%|40°/e to**SO%O**<br>expected<br>**(midterm**<br>**est)**|Totproject op_oost/_<br>grant**value -** 6.2e/%|N/a<br>|_18.5%/_|
|**MGF actual**<br>**operating costl grant**<br>**value% **|**36%**(higberif<br>**partial programs**<br>**aoted)**|N/a.<br>|Not conplete<br>._.|Not complete|Not conplete|
|**Actual oper.**CostJ<br>**No of subprojects**|$6,047<br>|**N/a.**<br>|**N/a.**<br>|**N/a.**|N/a|
|<br>**Actual Grant value**<br>**/no of subprojects**|$16,792|$2,631**(interim.**<br>**apovals**only).|**-**|||
|<br>Salesexport<br>**multiple**<br>____**_**____<br>_____|N/a (Beneficiary<br>**finns**increased<br>exports relative to<br>control group}|N/a. Significant<br>increase in sales<br>(mid-term)<br>_<br>_<br>_<br>_<br>_<br>_<br>_|_N/a_<br> <br>_<br>_<br>_<br>_<br>_<br>_<br>_<br>_|N/a|N/a|
|**Bank Performance**<br>Rating|<br> Outcome S<br>Institutional<br>M<br>Sustainabi<br>L|PSR ratings<br>satisfactory<br>lity|Project not yet<br>completed|Project not yet<br>completed|Project not yet<br>completed|

5.21 As stated in section 4, the benefits of the Mauritius project (table<sup>3a) have been reevaluated 37;the</sup> efficiency of the enterprises selected was in doubt since only<sup>10% of initial proposals were rejected and</sup> because, to speed up disbursement, 80% of subprojects<sup>were approved after they were already under way.</sup> 3 Tyler Biggs; op cit