Economic & Financial Management
   Report No: ; Type: Report/Evaluation Memorandum ; Country: Chad; Region: Africa; Sector: Economic Management; Major Sector: Multisector;
                                                            ProjectID: P000510


        The Chad Economic and Financial Management Project, supported by Credit 1872-CD for US
US$12.8 million equivalent, was approved in FY88 and disbursed US$14.50 million equivalent against a
revised plan of US$15.8 million equivalent. The Government of Switzerland provided additional
financing of US$3.4 million. The project was closed in FY96 two and a half years late. The
Implementation Completion Report (ICR) was prepared by the Africa Regional Office. The Borrower’s
evaluation is not available.

         The overriding objective of the credit was to strengthen the administrative capacity of the
Government of Chad to define and implement development programs and to carry out effective financial
and economic management. Specific objectives supported by the credit were to: (i) implement policies
and action programs outlined in the 1987 Policy Framework Paper; (ii) improve revenue collection; (iii)
supplement the work on economic and financial management being supported by other donors; (iv)
support training in areas that constrain the management of economic development and government
operations; (v) re-establish the statistical data base; and, (vi) provide physical facilities and equipment so
as to permit the resumption of normal government operations. The project financed studies, training, a
population census, and the construction and furnishing of office buildings and equipment.

         The project met its objectives in revenue collection, improved financial management, training,
population census, the upgrading of physical facilities and acquisition of equipment with substantial
delays. The studies on public enterprises and public administration were completed and resulted in the
satisfactory implementation of the divestiture program and the undertaking of a civil service census. The
public sector debt study was completed but its recommendations were not implemented. The studies on
the fiscal system and feasibility of investments were canceled and those on the legal and institutional
framework and trade regimes were suspended mid-stream. Other cancellations included construction of
new buildings for the ministries, the civil service census and the use of a private contractor for petroleum
tax collection.

         The ICR rates the project outcome as satisfactory, sustainability as uncertain and institutional
development impact as substantial. The Operations Evaluation Department (OED) agrees with the ICR
rating on sustainability. However, the OED rates project outcome as marginally satisfactory as the project
achieved its objectives only partially and with substantial delays. Moreover, the project design was not
consistent with the achievement of its global goals. Most project resources were directed to studies and
civil works and very little attention was paid to institutional reform and the building of institutional
capacity for improved public sector management. OED rates institutional development impact as modest
as the project had a minor focus on institutional reforms or the development of sustainable institutions.
OED rates Bank performance unsatisfactory (ICR rated it as satisfactory) as project preparation and
supervision were both deficient. Frequent changes in task management, six in the initial six years,
contributed to high supervision costs and delays in project implementation.

      The main lesson derived by OED from this project experience is that, above all, a successful
outcome requires complete consistency between project objectives and design.

 The ICR is of satisfactory quality although the borrower’s contribution is not available. No audit is
planned.