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    Independent Evaluation at Asian Development Bank
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    The Japan Special Fund was set up in 1988 to provide untied grants to support ADB's developing member countries in restructuring their economies. Between 1988-2006, it financed 1,578 technical assistance projects totaling $974.8 million. An evaluation found the Fund was generally relevant, effective, and successful, though some areas could be improved. It recommended strategies to enhance the Fund's impact through larger, longer-term projects, closer involvement from Japan in design, and better assessing risks and resource needs upfront. While advisory projects had significant impacts, client satisfaction was low and sustainability could be strengthened by longer engagement in some areas like capacity building.

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    The Japan Special Fund was set up in 1988 to provide untied grants to support ADB's developing member countries in restructuring their economies. Between 1988-2006, it financed 1,578 technical assistance projects totaling $974.8 million. An evaluation found the Fund was generally relevant, effective, and successful, though some areas could be improved. It recommended strategies to enhance the Fund's impact through larger, longer-term projects, closer involvement from Japan in design, and better assessing risks and resource needs upfront. While advisory projects had significant impacts, client satisfaction was low and sustainability could be strengthened by longer engagement in some areas like capacity building.

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    6 views2 pages

    Japan Special Fund

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    Independent Evaluation at Asian Development Bank
    The Japan Special Fund was set up in 1988 to provide untied grants to support ADB's developing member countries in restructuring their economies. Between 1988-2006, it financed 1,578 technical assistance projects totaling $974.8 million. An evaluation found the Fund was generally relevant, effective, and successful, though some areas could be improved. It recommended strategies to enhance the Fund's impact through larger, longer-term projects, closer involvement from Japan in design, and better assessing risks and resource needs upfront. While advisory projects had significant impacts, client satisfaction was low and sustainability could be strengthened by longer engagement in some areas like capacity building.

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    Learning Curves

    OED
    September 2007

    TheJapanSpecialFund

    TheJapanSpecialFundcomplementsADBstechnicalassistanceprogramwithuntied grants,withADBasadministrator.ItwassetupinMarch1988tohelpADBsdeveloping membercountriesrestructuretheireconomiesinlightofthechangingglobalenvironment, broadenopportunitiesfornewinvestment,andprepareloanprojects.Inparticular,it supportstheireffortstowardsindustrialization,naturalresourcedevelopment,human resourcedevelopment,andtechnologytransfer.ItalsosupportsADBseffortstopromote regionalcooperationandintegrationandcapacitydevelopment. Between1988to2006,theJapanSpecialFundfinanced1,578technicalassistanceprojectsfor $974.8million.InwhatareasdidtheFundperformwell?Whatareasneedimprovement? Howshouldriskbemanagedmoreeffectively?HowshouldtheFundbeadministeredbetter sothatdevelopmentobjectivesareachieved?
    Background ThroughtheJapanSpecialFund,Japanhasoffered tofinanceorcofinancetechnicalassistanceinthe publicandprivatesectors;technicalassistance componentsofpublicsectordevelopmentprojectsor programsfinancedbytheAsianDevelopmentBank (ADB);andprivatesectordevelopmentprojectsor programsthroughequityinvestmentsinprivateentities. Theguidelinesspecifynolimitsbutgrantshave averaged$600,000.Sofar,theFundhasreceivedalmost $1billionofwhich45%,42%,and13%foradvisory, projectpreparatory,andregionaltechnicalassistance, respectively.Operationalhighlightsareannualreports. In2007,theOperationsEvaluationDepartmentof ADBconductedaSpecialEvaluationStudyonJapans Funds:JapanSpecialFund. 1 Concurrently,the departmentassessedthetwootherJapanesegrant fundsadministeredbyADBthroughitsOfficeof CofinancingOperations,namelytheJapanFundfor PovertyReductionandtheJapanScholarshipProgram. ThestudyinvolvedadeskreviewoftheFund withcrosschecksontheTechnicalAssistanceSpecial FundandfieldworkinIndonesia,LaoPeoples DemocraticRepublic,Mongolia,andNepal.These countriesprovidedarangeofgeopoliticalsystemsand supplementedpriorcountryevaluations.Intotal,the studyevaluated174technicalassistanceprojects,99of themadvisoryand75projectpreparatory,representing 14%and11%ofallFundprojectsapprovedtodate.
    Operations Evaluation Department Asian Development Bank

    SummaryofFindings Followingthecriteriausedtoevaluatepublicsector operations,theFundasawholewasjudgedrelevant, effective,partlyefficient,andlikelytobesustainable.Its overallperformancewasdeemedsuccessfulbasedona fourpointscale(highlysuccessful,successful,partly successful,andunsuccessful),with65%ofadvisoryand 67%ofprojectpreparatorytechnicalassistancerated successful.Advisorytechnicalassistancehasoften addressedverycomplexissuesinareaswithahigh degreeofdifficultyafactorthatshouldalsobetaken intoaccountwhenassessingthedegreeofsuccess. Increasingrelevancefurthersuggeststheneedfora morestrategicapproachtoresourceallocation. Achievingevenhigherlevelsofsustainabilitymay requirelongertermengagementandlargertechnical assistanceprojects,possiblyinclusters.Individual projectshaveoutperformedchallengingbenchmarks foreffectivenessandefficiency.Althoughasignificant minorityofadvisorytechnicalassistanceprojectsis ratedpartlysuccessful,thisdoesnotmeantheyfailed. Reasonsforpartialsuccessvary.Sometimesobjectives areoverambitiousinrelationtotheresourcesprovided andtheimplementationperiodset. Therewasconsiderablediversityinsectorratings andacrosscountries.Ingeneral,technicalassistanceto IndiaandVietNamhasbeenparticularlysuccessful, butithasperformedlesswellinIndonesia.Advisory

    6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444; evaluation@adb.org; www.adb.org/evaluation/

    technicalassistancehasbeenmostsuccessfulin education,health,andfinance,andleastsuccessfulin energyandwatersupply,sanitation,andwaste management.Yet,projectpreparatorytechnical assistanceinenergyandwatersupply,sanitation,and wastemanagementwasamongthemostsuccessful. Partofthesolutiontovariationsinperformanceby countryandsectorisfortheassumptionsandrisk columninadesignandmonitoringframeworkto betterassessrisk(takingaccountofpastperformance), andforconsiderationtobeexplicitlygiventohowit willbemanaged. Thestudyidentifiedsixfactorsofsuccess:
    Clarityof Objectives

    thoughtheyarelikelytofacethesamelevelsofrisk. Fourth,clientsatisfactionisdisappointinglylow.Thisis sofortechnicalassistanceprojectsingeneral,notjust thosefinancedbytheFund.(Thereasonsmaybethat (a)advisorytechnicalassistanceprojectspromisemore thantheydeliver,(b)exitstrategiesarelacking, (c)clientsarenotsufficientlyinvolvedindesign,and (d)inadequateattentionisgiventoproblemresolution duringimplementation.)Fifth,theoneoffnatureof manyinterventionsisnotconducivetoenhancing awarenessofJapansrole. Recommendations ADBshoulddevelopstrategiesfortheuseofthe Fund,andprovideclearguidelinestostaff. Thetimeandresourcesrequiredforanytechnical assistanceprojecttoachieveresultsshouldbe assessedmorerealisticallyparticularlyinareas suchascapacitydevelopment,wherealongerterm commitmentisneededthroughlarger,longer durationtechnicalassistanceandclustertechnical assistanceprojects. TheGovernmentofJapanshouldbeclosely involvedattheconceptanddesignstages,with concomitantgreaterpredictabilityofapprovalanda moreefficientfinalapprovalstep. Thebulkoffundingshouldcontinuetobegivento projectpreparatorytechnicalassistanceand piggybackedadvisorytechnicalassistance (includingcapacitybuilding),butwithnospecified targetpercentage. Studytoursshouldbepermittedaseligible expenditures,butonaselectivebasis. Feedback AtthetimeofpreparationoftheseLearningCurves, ADBManagementsResponseandtheChairs SummaryoftheDevelopmentEffectiveness CommitteeDiscussionswerenotavailablefor disclosuretothepublic.Thestudywascompletedin September2007. 1 ADB.2007.SpecialEvaluationStudyonJapansFunds: JapanSpecialFund.Manila.Available: http://www.adb.org/Documents/SES/REG/SESREG 200712/SESREG200712.pdf.

    Client Management &Client Satisfaction Success Factors

    Need& Ownership

    Continuous Alignmentof Objectives withClient Priorities Qualityof Consultants

    Adequacyof Time& Resources

    Nomatterwhat,theimpactoftheFundhasbeen significantinthefollowingrespects:(i)advisory technicalassistanceforpolicydevelopmenthashad profoundbeneficialimpactsonthelegislative environmentsgoverningseveralsectors;(ii)advisory technicalassistanceforcapacitydevelopmenthas improvedtheperformanceofsectorandsubnational agenciesinthedeliveryofservices,especiallytothe poor;and(iii)about75%ofADBsprojectpreparatory technicalassistancearefundedfromtheFundand thereforedesignthreequartersofADBsloanprogram. ThestudyconcludedthattheFundsmanagement mightbeimprovedinseveralrespects.First,itisnot clearwhatvalueisaddedbytherequirementtohave eachtechnicalassistanceapprovedbyJapan.Second, only40%oftechnicalassistanceprojectsseemtobe adequatelyresourced.(Yet,processingtimesarelongin relationtoexpectedimplementationperiods.)Third,all advisorytechnicalassistanceprojectsaretreatedas
    Learning Curves available @ www.adb.org/evaluation/

    Team Leader: Keith Leonard; Tel +63 2 632 4119; rkleonard@adb.org

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