Project Monitoring and Evaluation System of World Bank

Policy Action Matrix Modality is used to for project monitoring and evaluation of World Bank which involves:

• 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.

New M & E system of World Bank
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.

Monitoring and Evaluation under LACI (Loan Administration Change Initiative)

1. The project task team conducts periodic progress reviews of the action plans through country missions.
2. The task team leader is responsible for monitoring issues and needed actions.
3. Project management report serves as the key document for monitoring purposes.

Logical Framework for M & E

A logical framework is generally used for monitoring evaluation. It evaluates cause and effect relationships as well as assumptions and risks of the project. The logical framework evaluates three sequential relationships:

1. Inputs to Outputs: Outputs resulting from inputs, for example grain storage godown facility for a grain storage project.
2. Outputs to Effects: Effects resulting from project outputs. For example reduction in grain losses as an effect of grain storage godown facility.
3. Effects to Impacts: Impacts resulting from project effects. For example higher income to farmers as an impact of reduction in grain losses.

• The assumptions and risks are evaluated as to their validity. These cannot be controlled by the project.
• Performance benchmarks serve as the standards for monitoring and evaluation purposes.
• A logical framework matrix for each project is prepared for planning, monitoring and evaluation purposes as shown in box:



Logical Framework Matrix

Key Concepts in the Logical Framework

• Objective: This is the desired outcome of the project.
• Purpose: This is the effect or impact of the project.
• Outputs: These are the deliverable of the project as specified in the Terms of Reference.
• Activities: These are the tasks that must be undertaken to accomplish outputs. They involve inputs in terms of money, human resources, equipment, materials etc.
• OVIs: Objectively Verifiable Indicators are targets in  terms of quantity, quality, time to measure actual performance.
• MOV: Means of Verification describe sources of information that provide the basis for monitoring and evaluation of the project. They are reports and publications related to project accomplished.
• Assumptions and Risks: They are important external factors beyond the control of the project. Their validity is important for achieving project objective, purpose, outputs and activities.

M & E: Monitoring and Evaluation

Project Monitoring and Evaluation System of Asian Development Bank

1. Monitoring: The monitoring system of progress of projects which is sponsored by Asian Development Bank is based on the Project Management Information System (PMIS). Periodic reports, accounting statements, statistical analysis and other related reports are produced through Project Management Information System (PMIS). It also specify the arrangements for provision of such reports and statements to Asian Development Bank (ADB) for monitoring project progress. The another way of monitoring done by the ADB through telephone contacts, correspondence and other methods as and when needed.
2. Evaluation: The Appraisal Report and Loan Agreement specify arrangements for evaluation of project. The ADB uses field missions to evaluate the progress of the project. The various types of evaluation can be:

• Appraisal: The mission evaluates the project's ability to succeed. An Appraisal Report is prepared which guides the project activities for implementation.
• On-going Evaluation: The mission evaluates progress of the project during implementation phase. Corrective actions are recommended in the aide memoir prepared after evaluation. The timing of evaluation is as specified in the Loan Agreement or Appraisal Report. Generally, it is annual or half yearly.
• Project Completion Evaluation: The mission evaluates the project after completion and prepares the "Project Completion Report". Lessons learned are presented which serve as guidelines for improvements of future projects.
• Benefit Monitoring and Evaluation: ADB Loan Agreement also provides for benefit monitoring and evaluation.
• Benefit monitoring provides information needed to ensure that services are delivered to and result in benefits to those whom the project is intended to benefit. The delivery, use and immediate effects of services provided are monitored.
• Evaluation of benefits of completed projects provides information to improve the design and implementation arrangements for future projects.
• Highly skilled, professional and independent consultants are hired to monitor and evaluate benefits.

Note:
ADB = Asian Development Bank
PMIS = Project Management Information System

Participatory Monitoring and Evaluation (M & E)

Monitoring and evaluation can be participatory where the progress, problems and prospects of the project are analyzed collaboratively by all project stakeholders. In donor funded development projects, active participation of beneficiaries is emphasized to assess effects and impacts of the project on them. Participatory monitoring and evaluation (M&E) is action oriented and cyclical in nature.

The key requirements of participatory evaluation are:

1. Beneficiaries should be active participants, not just information providers.
2. Stakeholders should actively  participate in carrying out monitoring and evaluation.
3. Focus should be on building stakeholder capacity and commitment.
4. The process should lead to improved implementation through corrective actions.

Stages in Participatory Monitoring and Evaluation (M&E)
Key stages in participatory M&E are:

• Preparation: This involves:
• Defining terms of reference for M&E
• Identifying the stakeholders and a lead facilitator
• Training to stakeholders.
• Action planning: A time schedule is worked out.
• Implementation of M&E: The cycle consists of :
•  Self evaluation -->  Analysis --> Plan --> Act
• Dissemination of M&E results:
• PRA (Participatory Rural Appraisal), testimonials by beneficiaries and workshops can be used as methods for participatory M & E.