- The Appraisal report and loan document specify the performance benchmarks for the project. They are stated in the form of a policy action matrix or logical framework.
- Monitoring of project progress is based on the trimester progress report and financial statements provided by the project management information system (PMIS). The local office of the World Bank also monitors the project as and when needed. Informal monitoring is done by telephone conversation and correspondence through mail, fax and E-mail.
- The World Bank evaluates the project by collaborating with external consultants and its staffs. Missions are fielded for on-going evaluation every six month or annually. Project completion evaluation is also done.
- The evaluation mission leaves behind an aide memoir which serves as the blueprint for corrective actions and future activities of the project.
Loan Administration Change Initiative (LACI)
The World Bank had introduced LACI (Loan Administration Change Initiative) for loan administration in July 1st 1998. Sound financial management is a prime factors of project success.
- LACI (Loan Administration Change Initiative) integrates project accounting, procurement, contract management, disbursement and audit with physical progress through the Project Management Report (PMR).
- There is the provision of quarterly payment to the special project based on Project Management Report (PMR) which replaces voucher-by-voucher payment method.
- Loan Administration Change Initiative (LACI) applies to new projects. The implementation is on a project-by-project basis.
- The project task team conducts periodic progress reviews of the action plans through country missions.
- The task team leader is responsible for monitoring issues and needed actions.
- Project management report serves as the key document for monitoring purposes.