work in progress – evaluation of the oret programme – investing in public infrastructure in...


2/274

IOB Evaluation

Work in ProgressEvaluaion of he ORET Programme:

Invesing in Public Infrasrucure in Developing Counries

July 2015


3/274


4/274

| 3 |

Preace

Preface

I you live long enough, you may have he good orune o being around o see yourgrandchildren grow up. While his is considered a normal siuaion or human beings,i rarely happens o developmen cooperaion programmes. An excepion is heDevelopmen-Relaed Expor Transacions programme (ORET, he Duch acronym orOntwikkelingsrelevante Export Transacties). Aer is closure or new applicaions in Augus 2007,he child ORIO appeared in 2009 and hen closed or new applicaions in April 2014.Grandchild DRIVE has become operaional by mid June 2015, bu some ORET ransacionsare sill acive. The las one is expeced o be compleed in 2017, a good reminder o he

long-lasing consequences ha poliical decisions o erminae inrasrucure programmescan have.

Having exised in various configuraions since 1979, ORET has been he longes survivingprivae secor developmen programme o he Neherlands. As a resul, in he capials odeveloping counries and in he execuive boards o applican companies he acronym issill recognised and has brand value. ORET has seen is official goals evolve and adap o hechanging views o successive governmens abou developmen cooperaion and privaesecor developmen. During is lieime ORET was also evaluaed several imes by IOB andexernal consulans, mos recenly in 2005-2006. Their recommendaions were no always

ully implemened. This final evaluaion assesses he achievemens o ORET and accounsor he resources used (financial and oherwise), paricularly in he period 2007-2012. Againi aims o learn lessons or public inrasrucure invesmen programmes and privae secordevelopmen policies. Wih he emergence o DRIVE, an excepional opporuniy arises opass on some valuable lessons o he nex generaion o inrasrucure programmes.

Public inrasrucure is a he core o srucural ransormaion o economies. Demand ori even seems o be acceleraing as developing counries economies grow. There is broadinernaional consensus ha a counrys inrasrucure is a criical acor o atrac oreigndirec invesmen (FDI), promoe rade and susain growh. Inrasrucure is also crucial o

suppor social progress and o achieve he Millennium Developmen Goals. For many poorpeople in low-income counries and in many middle-income counries, however, access obasic inrasrucure services is sill a major obsacle. Hence inrasrucure ocused onpovery reducion can be an imporan ool or combaing povery.

Ideally, public inrasrucure developmen in developing counries would bes be served bysronger domesic resource mobilisaion in he developing counries hemselves. Theinernaional communiy should suppor effecive public finance managemen sysems andefficien governmen procuremen capaciy ha offer value or money and are accounableo domesic consiuencies. Mos o he finance or inrasrucure in mos developing

counries no mater how poor already comes rom domesic resources, in he orm oaxes, user ees or public-privae parnerships. Donors sill have a relevan role o play inpromoing susainable developmen and povery reducion in poorer developing counries


5/274

| 4 |

Work in Progress

hrough improving and building public inrasrucure. Preerably such programmes have a

srong povery ocus, are addiional and avoid disoring he marke.

In mos developing counries, neiher he marke and privae invesors nor governmenseem o develop and mobilise sufficien finance or socio-economic inrasrucure ocusedon povery reducion. Ye he needs or such inrasrucure and he developmen pay-off arehuge. From a recipien perspecive, well-unded mulilaeral invesmen programmes,no driven by commercial consideraions o naional companies, are mos suiable orcomplemening effors o developing counries. From a donors perspecive, a second-besapproach is o supplemen such inrasrucure programmes by decenralised bilaeralprogrammes in niches, which are aligned wih he recipien counrys policy, inegraed

in a bilaeral aid programme (i any) and do no disor he marke wih aid unds.

In he real world, we assume ha he Neherlands wishes o mainain a bilaeral andcenrally-managed inrasrucure subsidy programme or developing counries, similaro ha o oher donor counries. Almos 40 years o experience wih ORET confirms hecommon desire o coninue such a programme in some orm in order o mobilise heinrasrucure developmen poenial o he Duch business secor in cerain niches ando mainain broad-based poliical domesic suppor or developmen cooperaion.Recognising his poliical realiy and based on he findings o his evaluaion, IOB offerssome suggesions or improving a successor programme. In essence hey enail mainaining

he basic srucure o ORET bu wih more checks and balances and wih ailor-mademodaliies (relaing o financing and echnical assisance) geared owards povery-ocusedinrasrucure. This may enhance he developmen relevance and achieve more value ormoney.

Responsibiliy or his evaluaion resed wih IOB evaluaor Oto Genee and his researchassisan Bar van Rijsbergen. The consulans eam or he evaluaion comprised Nico vander Wind (eam leader rom Erasmus Universiy), Hans Slegenhors (Carnegie Consul),Elena Gross (Universiy o Bayreuh), Niek de Jong (Erasmus Universiy), Alexander Ogaar(Erasmus Universiy) and Jan-Jelle Wite (Erasmus Universiy). The ollowing evaluaors also

conribued o he underlying case sudies and he porolio review o his evaluaion:

Ghana buses: Mawunyo Agradi Ghana drinking waer supply: Bernardin Senadze and Louis Sisoe Hodey Sudan drinking waer supply: Salma Abdalla Tanzania medical diagnosic services: Hans Severens and Dereck Chiama Tanzania airpor rehabiliaion: Adalberus Kamanzi and Vicor George Guaemala Champerico fishery por: Jos Raael del Cid and Vivian Guzmn Bangladesh railway signalling equipmen: Badrun Nessa Ahmed Indonesia rehabiliaion power generaors: Thia Jasmina and Widyani Soejipo

Indonesia ender and buoy vessels: Thia Jasmina and Widyani Soejipo Sri Lanka disaser response nework: Upali M. Sedere Sri Lanka echnical educaion: Upali M. Sedere ORET porolio review: Esra Yavuz and Nicole Dijk


6/274

| 5 |

A reerence group commened and advised he ormer direcor o IOB Ruerd Ruben on

his repor. The group consised o Jan-Willem Gunning (Proessor Emerius a heVU Universiy Amserdam), Eva Ter Berger (KW Developmen Bank, Frankur), Andri vanMens (Deparmen o Susainable Economic Developmen), Lennar Konijnenberg (PwC),Ber Vermaa (he Financial and Economic Affairs Deparmen) and Ruger Schouwink(Direcorae-General Foreign Economic Relaions). Anonie de Kemp, Peer Henk Eshuisand Willem Cornelissen (IOB) were peer reviewers o he evaluaion. Joy Burrough-Boenischand IOB desk edior Jochem Hemink provided valuable inpu regarding language andediing.

IOB would sincerely like o hank all companies, end users, policy officers and sakeholders

involved or he inormaion hey provided and heir consrucive eedback o dra versionso he repors.

Responsibiliy or he conen o his repor ress wih IOB.

Drs. Geer GeuDeputy Director Policy and Operations Evaluation Department (IOB)

Ministry o Foreign Affairs, the Netherlands

Preace


7/274

| 6 |

Work in Progress


8/274

| 7 |

Table o conens

Table of conens

Preface 3

Table of conens 7

Lis of ables, figures and ex boxes 10

Lis of acronyms and abbreviaions 12

Highlighs 16

Summary and Findings 18

1 Inroducion 36

1.1 Purpose and Scope o he ORET Evaluaion 371.2 Main Research Quesions and Evaluaion Crieria 381.3 A General Resul Chain or ORET 391.4 Evaluaion Mehodology 411.5 Limiaions o he Evaluaion 47

2 Policy Reconsrucion and Programme Implemenaion 50

2.1 Policy Developmens wihin ORET 512.2 Procuremen Pracices 532.3 Appraisal Procedures and Screening Crieria 55

2.4 Financing o ORET 582.4.1 Financing Modaliies a Transacion Level 582.4.2 Disbursemens a Programme Level 59

2.5 Insiuional and Adminisraive Aspecs o ORET 592.5.1 Implemenaion o ORET 592.5.2 Supervision o ORET by he Minisry 65

2.6 Driving rom ORET o ORIO and Back 66


9/274

Work in Progress

| 8 |

3 Overview and Analysis of he ORET Porfolio 70

3.1 Inroducion 713.2 An Overview o All ORET Transacions 71

3.2.1 Beneficiary Counries 713.2.2 The Shares o LDCs and non-LDCs 723.2.3 Beneficiary Secors 763.2.4 Preparing Applicaions and Implemening ORET Transacions 793.2.5 Tender Procedures and Price Checks 80

3.2.6 Minimum Duch Conen 813.2.7 The Non-Gran Funding and Insurance o ORET Transacions 833.2.8 Enhancing he Susainabiliy o ORET Transacions 90

3.3 Applicaions Rejeced or No Considered 913.4 ORET Applicans 943.5 ORET in Conex 97

3.5.1 ORETs Place wihin he PSD Policy o he Neherlands 973.5.2 Comparison wih Similar Donor Programmes 983.5.3 Inrasrucure Needs and Finance Flows 100

4 Resuls of he Case Sudies 1044.1 Approach and Overview 1054.1.1 Inroducion 1054.1.2 Overview o he 13 Case Sudies 105

4.2 Efficiency 1084.2.2 Assessing he Implemenaion Phase 110

4.4 Impac 1184.5 Susainabiliy 1194.6 Relevance 1224.7 Addiionaliy and Caalyic Effec 124

4.8 Policy Coherence 1264.9 Summing Up he Case Sudies 128


10/274

| 9 |

5 Conclusions 132

5.1 Inroducion 1335.2 Policy Reconsrucion 1335.3 Efficiency 1365.4 Effeciveness, including Impac 1395.5 Susainabiliy 1415.6 Relevance 1435.7 Addiionaliy and Caalyic Effec 144

5.8 Policy Coherence 146

Annexes 148

Annex 1 Abou IOB 149Annex 2 Bibliography 151Annex 3 Comparing ORET and ORIO 154Annex 4 A Scorecard or he Case Sudies 157Annex 5 Compleed Scorecard or he 13 Case Sudies 169Annex 6 Key Daa on he Transacions in he Case Sudies 172Annex 7 Expor Promoion Programmes o Oher Donors 176

Annex 8 Case Sudies 1838.1 Public Transpor: Buses or Ghana 1838.2 Drinking Waer Transacions in Ghana 1908.3 Drinking Waer in Sudan 2028.4 Medical Diagnosic Services in Tanzania 2108.5 Tanzania Airpor Rehabiliaion 2158.6 Guaemala Champerico Fishery Por 2178.7 Bangladesh Railway Signalling Equipmen 2238.8 Indonesia Rehabiliaion o Power Generaors 2278.9 Indonesia Tender and Buoy Vessels 231

8.10 Sri Lanka Srenghening he Emergency Response Nework 2348.11 Sri Lanka Upgrading Vocaional Training Insiues 239Annex 9 Lis o Inerviewees 243Annex 10 Nederlandse samenvating 245

Evaluaion and sudy repors of he Policy and Operaions Evaluaion

Deparmen (IOB) published 2011-2015 264

Table o conens


11/274

| 10 |

Work in Progress

Lis of ables, figures and ex boxes

Tables

Table 1 Scoring o he 13 Case Sudies 46Table 2 Disribuion o Allocaed Grans over Secors and Regions 77Table 3 Procuremen Regime o ORET Transacions 80Table 4 Non-Gran Funds and Insurance 85Table 5 Reasons or Rejecing Applicaions 92Table 6 Toal Scores per Indicaor or he Case Sudies 129

FiguresFigure 1 A General Resul Chain or ORET 40Figure 2 Coverage o he 86 Compleed + 2 Acive (Compleed in 2013) Transacions 44Figure 3 Coverage o he 67 Compleed Transacions (excluding China) 45Figure 4 Coverage o he 24 Transacions in he Sample 45Figure 5 Adminisraive Organisaion o ORET.nl 61Figure 6 Workload o ORET (I) 62Figure 7 ORET Workload (II) 63Figure 8 Programme Disbursemens and Managemen Fees 65Figure 9 Grans Allocaed per Recipien Counry 73

Figure 10 ORET Beneficiary Counries 74Figure 11 The Division o Annual Disbursemens beween LDCs and non-LDCs 74Figure 12 Transacion and Gran Amouns per Counry 76Figure 13 Drinking Waer Applicaions 78Figure 14 Drinking Waer Transacions 78Figure 15 Duch Conen o All ORET Transacions 82Figure 16 Duch Conen per Caegory and Procuremen 83Figure 17 Shares o Sources o Non-Gran Funding 84Figure 18 The Average One-off Finance Coss o Non-gran Funding per

Recipien Counry 88

Figure 19 Number o Transacions wih and wihou Technical Assisance (TA),per year o submission 91Figure 20 All ORET Applicans 96Figure 21 ORETs Share in he PSD Policies o he Neherlands 98Figure 22 Assessmen o he Applicaions and Appraisal Process 110Figure 23 Indicaor 5: One-off Finance Coss 112Figure 24 Assessmen o Implemenaion 113Figure 25 Indicaor 7: Use o Inrasrucure by Beneficiaries 114Figure 26 Assessmen o Effeciveness 117Figure 27 Assessmen o Impac 119

Figure 28 Assessmen o Susainabiliy 122Figure 29 Assessmen o Relevance 124Figure 30 Assessmen o Addiionaliy and Caalyic Effec 126Figure 31 Assessmen o Policy Coherence 128Figure 32 Weighed Scores or he Evaluaion Crieria or All 13 Case Sudies 131


12/274

| 11 |

Tex boxes

Tex Box 1 Serving Two Objecives wih One Insrumen 20

Tex Box 2 Screening Crieria or ORET Transacions 57

Tex Box 3 A Mach Made in Heaven 75

Lis o ables, figures and ex boxes


13/274

| 12 |

Work in Progress

Lis of acronyms and abbreviaions

ADB Asian Developmen BankAFD French Developmen Agency (lAgence Franaise de Dveloppement)AIT Advanced Insiues o Technology, Sri LankaAMWC Al Manara Waer Company (Sudan)Aradius DSB Aradius Duch Sae BusinessBMZ German Federal Minisry or Economic Co-operaion and Developmen

(BundesMinisterium r Wirtschaliche Zusammenarbeit und Entwicklung)

BOOT Build, Operae, Own and Transer

BR Bangladesh RailwayBRT Bus Rapid TransiCABRI Collaboraive Arica Budge Reorm IniiaiveCBI Cenre or he Promoion o Impors rom developing counries

(Centrum tot Bevordering van Import uit ontwikkelingslanden, he Neherlands)CIRR Commercial Ineres Reerence RaeDAC Developmen Assisance CommiteeDDE Susainable Economic Developmen Deparmen

(Minisry o Foreign Affairs, he Neherlands)DDE/OB The Enrepreneurship and Business Developmen Division

o he Susainable Economic Developmen Deparmen(Minisry o Foreign Affairs, he Neherlands)DID Deparmen or Inernaional Developmen (Unied Kingdom)DGBEB Direcorae-General or Foreign Economic Relaions

(Minisry o Foreign Affairs, he Neherlands)DGGF Duch Good Growh FundDGIS Direcorae-General or Inernaional Cooperaion

(Minisry o Foreign Affairs, he Neherlands)DREE Deparmen o Exernal Economic Relaions a he French Minisry o

Economic Affairs (Direction des Relations Economiques Extrieures)

DRIVE Developmen Relaed Invesmen VEhicleEBRD European Bank or Reconsrucion and DevelopmenECA Europe and Cenral AsiaECA Expor Credi AgencyECI Expor Credi InsuranceECNEC Execuive Commitee o Naional Economic Council (Bangladesh)EIA Environmenal Impac AssessmenEKF Danish Expor Credi Agency (Eksport Kredit Fonden)EPNAC Guaemalan por auhoriy (Empresa Portuaria Nacional de Champerico)ERTC Emergency Response Training Cenre, Sri Lanka

FC Finance CossFDI Foreign Direc InvesmenFINEXPO Belgian Commitee providing aid or Belgian expors responsible o

he Miniser or Foreign Trade


14/274

| 13 |

FMO Neherlands Developmen Finance Company(Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV)

FMO/CD FMOs Capaciy Developmen FaciliyFPS Belgian Federal Public Service (Federale Overheidsdienst)GHS Ghanaian cedi; uni o currency o GhanaGOM Duch Emerging Markes Guaranee Faciliy

(Garantieaciliteit Opkomende Markten)GPRS Ghana Povery Reducion Sraegy

GTLP Global Trade Liquidiy ProgramGVB Public ranspor company Amserdam (Gemeentelijk VervoersBedrij)GWCL Ghana Waer Company LimiedHGIS Homogenous Budge or Inernaional Cooperaion

(Homogene Groep Internationale Samenwerking)HIPC Heavily Indebed Poor CounriesHNDE Higher Naional Diplomas in Engineering (Sri Lanka)ICAO Inernaional Civil Aviaion OrganizaionICB Inernaional Compeiive BiddingICT Inormaion and Communicaion Technology

IDC Indusrial Developmen Cooperaion (Souh Arica)IDF Inrasrucure Developmen FundIDH The Susainable Trade Iniiaive (Initiatie Duurzame Handel, he Neherlands)ILO Inernaional Labour OrganizaionIMED Implemening Monioring and Evaluaion Deparmen (Bangladesh)IMF Inernaional Moneary FundIOB Policy and Operaions Evaluaion Deparmen

(Minisry o Foreign Affairs, he Neherlands)IOM Inernaional Organizaion or MigraionJBIC Japan Bank or Inernaional Cooperaion

JNIA Julius Nyerere Inernaional Airpor (Tanzania)KW German Developmen Bank (Kreditanstalt r Wiederaufau)KSWC Kharoum Sae Waer CorporaionLAC Lain America and he CarribeanLCL Less Concessional LoansLDC Leas Developed CounryLIC Low Income CounryLMIC Lower Middle-Income CounryM&E Monioring and EvaluaionMASSIF Micro & Small Enerprise Fund

MDGs Millennium Developmen GoalsMEXIM Expor-Impor Bank (Malaysia)MILIEV Environmen and Economic Sel Reliance (Milieu en Economische Verzelstandiging)MMT Mero Mass Transi (Ghana)

Lis o acronyms and abbreviaions


15/274

Work in Progress

| 14 |

MOFEP Minisry o Finance and Economic Planning (Ghana)MoHSW Minisry o Healh and Social Welare (Tanzania)MOL onds See IDF (Minst Ontwikkelde Landen onds)NABU Neherlands Associaion o Inernaional Conracors

(vereniging van Nederlandse Aannemers met belangen in het BUitenland)NCSTE Naional Cenre or Science and Technology Evaluaion (China)NIO Neherlands Invesmen Bank or Developing Counries (Nederlandse Investeringsbank voor Ontwikkelingslanden)

NIPP Neherlands-IFC Parnership ProgramNRW Non-Revenue WaerODA Official Developmen AssisanceODI Overseas Developmen Insiue (UK)OECD Organisaion or Economic Co-operaion and DevelopmenOEM Original Equipmen ManuacurersKB Ausrias expor credi agency (stereichische KontrollBank)ORET Developmen-Relaed Expor Transacions Programme

(Ontwikkelings-Relevante Export Transacties)ORET.nl Organisaion mandaed o implemen ORET. A consorium comprising PwC

and ECORYSORIO The Faciliy or Inrasrucure Developmen (OntwikkelingsRelevanteInrastructuurOntwikkeling)

OSA Omnibus Service Auhoriy (Ghana)PEFA PErormance measuremen FrAmeworkPESP Fund or easibiliy sudies (Programma Economische Samenwerking Projecten,

he Neherlands)PIDG Privae Inrasrucure Developmen GroupPMS Philips Medical SysemsPPP Public Privae Parnership

PSD Privae Secor DevelopmenPSOM/PSI Privae Secor Invesmen programme(Programma Samenwerking Opkomende Markten)

PT PLN Sae Elecriciy Company Indonesia (Perusahaan Listrik Negara)PUM Duch Manager Deploymen Programme (Programma Uitzending Managers)PwC PricewaerhouseCoopersRPE French Reserve or Emerging Economies (Rserve Pays Emergents)RVO Neherlands Enerprise Agency (Rijksdienst Voor Ondernemend nederland)SDR Special Drawing Righs. Currency value, based on baske o major currenciesSENO Duch aciliy o insure expors (Stichting Economische samenwerking Nederland

Oost-Europa)SGS Soci Gnrale de SurveillanceSLIATE Sri Lanka Insiue o Advanced Technical EducaionSME Small and Medium Enerprises


16/274

| 15 |

STC Sae Transpor Company, GhanaTA Technical AssisanceTAA Tanzanian Airpors AuhoriyTCX The Currency Exchange Fund (he Neherlands)ToR Terms o ReerenceTVET Technical Vocaional Educaion and Training (Sri Lanka)UNCTAD Unied Naions Conerence on Trade And DevelopmenUSAID Unied Saes Agency or Inernaional Developmen

USTDA Unied Saes Trade and Developmen AgencyVNO-NCW Duch employers organisaionWAM Waer Asse Managemen (Sudan)WB/IFC World Bank / Inernaional Finance CorporaionWB-UPT World Bank Urban Passenger Transpor ProjecWHO World Healh OrganizaionZSP Prioriy Zone o Solidariy (Zone de Solidarit Prioritaire, France)

Lis o acronyms and abbreviaions


17/274

Highlights


18/274

| 17 |

Main Findings

1. ORET has addressed imporan obsacles or developmen by co-financing heconsrucion and rehabiliaion o public inrasrucure in developing counries.Over ime ORET evolved rom a programme o mere delivery o capial goods romhe Neherlands o a programme offering comprehensive inrasrucure servicepackages ha were also financially atracive or recipien governmens.

2. As a resul o he 2005 policy shi in which he ORET objecives shied owardssrenghening susainable economic developmen, he effec o he programme as a

whole on povery reducion was reduced even hough his shi was mosly in line wihhe prioriies recipien governmens expressed in he applicaions.

3. Alhough he increasing inclusion o echnical assisance, mainenance and capaciybuilding or cliens aer 2005 clearly improved, he susainabiliy o ORET ransacions,paricularly financial susainabiliy, remains a challenge.

4. Alhough combining ORET grans wih non-gran financing had a posiive leveragingeffec, recipiens aced high one-off finance coss o secure and insure commercialloans. By and large ORET unding was addiional bu had only a modes caalyic effecon ollow-up invesmens.

5. ORET remained a somewha isolaed programme ha was hardly complemenary ooher Duch aid and privae secor developmen aciviies. This was primarily because ois applican-driven and cenrally-managed characer and he long lis o eligible

counries.6. ORET ransacions played a limied role in aciliaing marke access or Duch exporersand complemening Duch economic diplomacy effors o srenghen bilaeraleconomic ies.

7. The official procuremen regime o ORET was no he decisive acor or wha happenedin pracice in erms o he conesabiliy o he endering procedures, he Duch conenrealised and he price/qualiy raio o he ransacions.

Lessons or Fuure Inrasrucure Insrumens

1. I he goal is o enhance he effeciveness o he inrasrucure programme, hensrenghen he ocus on public inrasrucure where he Duch unding is addiional andsupporive o povery reducion. This could be expressed in he goals, he selecion andappraisal crieria o applicaions and he lis o eligible developing counries.

2. Enhance he successor programmes efficiency and he effeciveness o ransacionsby insering beter checks and balances in he selecion process, he managemen andhe implemenaion o he programme, and by dropping cerain condiions whilesrenghening ohers.

3. Boos he value or money in he financing modaliies and reinorce he financial

susainabiliy o ransacions by allowing more bespoke soluions wihin a ransparenpolicy ramework.

Highlighs


19/274

Summary and Findings


20/274

| 19 |

Summary

ORET in a NushellThe Developmen Relaed Expor Transacions program (ORET, he Duch acronym orOntwikkelings-Relevante Export Transacties) is a subsidy aciliy unded by he Minisry o Foreign

Affairs since 1979. The ORET program saw is official goals evolve and adap o he changingviews and poliical preerences o subsequen governmens on developmen cooperaionand privae secor developmen. Policy changes in he period 1999-2007 inroducedadjusmens o he programmes objecives, he lis o eligible counries, he screeningcrieria or applicaions, he procuremen procedures, subsidy percenages, minimum

conen o Duch goods and services and opions o enhance susainabiliy. Aer 2005,he main objecive o ORET shied rom he promoion o developmen and employmencreaion o he promoion o susainable economic developmen and improvemen o hebusiness climae in developing counries.

ORET suppored commercially non-viable invesmens (ransacions) in public inrasrucurein developing counries in diverse areas such as roads, harbours, bridges, drinking waerplans, public ranspor, hospials and educaion insiues. ORET co-financed 35% (ornon-LDCs) o 50% (or LDCs) o he coss o a ransacion, up o a ceiling o EUR 45 millionper ransacion. I combined ORET grans wih non-gran unds in a mixed credi programme.

Recipien governmens had o arrange he non-gran unding hemselves rom commercialloans, heir own budge resources or oher donors. This orma leveraged he ORET grans.ORET aciliaed his co-financing by paying rom he gran a par o he one-off financecoss o acquire and insure he commercial loan. For a brie period in he 80s, ORET becamea concessional loan programme in which he Neherlands Invesmen Bank (NIO) providedrecipiens wih long-erm so loans or he ull amoun o he ransacion. This madecommercial expor credis and credi insurance agains he risk o non-paymen redundan.I saved recipiens bank ees and credi insurance premiums bu los he leveraging effec ohe ODA grans. However, ORET became oversubscribed quickly, so in 1990 i revered backo being a mixed credi programme.

The procuremen regime o ORET was always a conenious issue. The Duch business secorinsised on ying, expecing maximum reurn in expor orders whereas he developmencommuniy emphasised unying and maximising developmen impac (see Tex Box 1).ORET sared as a ully ied-aid program, accessible exclusively o Duch applicans, andremained hus or a long ime. Laer recipien counries could choose a ender procedure inaccordance wih heir own procuremen legislaion. The pracice or ORET in non-LDCsremained direc award o he Duch company ha submited he applicaion. ORET wasclosed or LDCs in Ocober 2001 ollowing he OECD recommendaion o unie aid or hiscaegory. In 2005 he programme was reopened or LDCs as an unied insrumen, bu

inernaional compeiive bidding (ICB) was no prescribed or LDCs unil May 2006.



21/274

| 20 |

Work in Progress

Tex box 1 Serving Two Objectives with One Instrument

Throughout its existence ORET always had two objectives: i. enhancing developmentin recipien developing counries; ii. promoing Duch expors. Developmen and

expor promoion o Duch companies are wo separae policy objecives ha willno necessarily coincide, may conflic and may require heir own dedicaedapproach. For poliical reasons and o involve he Duch business secor moreclosely in developmen cooperaion, he wo objecives were merged in he

implemenaion o ORET. The Minisry sough o realise he dual objecive viaeligibiliy crieria or applicans companies and binding he procuremen hroughminimum Duch conen rules or ransacions in non-LDCs. Usually a Duch

company was he iniiaor, even in unied ransacions or LDCs. Aciviies wereunded rom he developmen cooperaion budge because he grans wereconsidered o be ODA. Alhough Duch expor promoion was abolished as an

official goal in 2005, ORET implicily reained he wo objecives. The Neherlandswas no unique in is approach as can be seen when comparing he divergencebeween official policy and pracice o oher donors. From he economic lieraure

i is known ha ying aid can have negaive effecs or recipien counries as i maylead o higher prices and sub-opimal allocaion o resources. The effeciveness oying aid or expor promoion rom donor counries has also been quesioned.This repor assesses he resuls o ORET in relaion o boh objecives.

ORET was managed by several implemening agencies, i.e. he Minisries o Foreign andEconomic Affairs ogeher, FMO and ORET.nl. They all employed a pipe-line approach oassess applicaions rom companies and allocaed unding on a firs-come, firs-servedbasis. ORET was closed or new applicaions in Augus 2007. I was succeeded in 2009 by anew (unied) financing aciliy named ORIO, which in urn was closed in April 2014. In June2015 is successor DRIVE was opened. A he sar o 2014, 46 ORET ransacions were sillacive. The las ORET ransacion is expeced o be compleed in 2017.

Purpose and Scope of he EvaluaionThis evaluaion assesses he resuls achieved by ORET and he exen o which he programmehas reached is saed objecives. In paricular i accouns or ORETs uncioning in heperiod 2007-2012 and he resources (financial and oherwise) used. I also aims o learnlessons ha could be applied o oher Duch public inrasrucure invesmen programs andprivae secor developmen policies in developing counries, such as he ORIO projecs sillin he pipeline, is successor programme DRIVE and he Duch Good Growh Fund (DGGF).

In he evaluaion period 2007-2012, 86 ORET ransacions were compleed. Mos o hemwere iniiaed aer 2000 when FMO was managing he programme. The compleed

ransacions covered en LDCs and 16 non-LDCs and represened a value o EUR 1183 million.In oal hey received a gran amoun o EUR 528 million and were implemened by38 companies. The 53 acive ransacions (sill ongoing on 1 January 2013) are being

implemened by 31 companies, cover 15 LDCs and 12 non-LDCs and add up o a oal


22/274

| 21 |


ransacion amoun o EUR 968 million. Togeher he acive ransacions are expeced o

receive a oal gran amoun o EUR 409 million over heir lieime. Combining hecompleed and acive porolio, we are dealing wih 139 ransacions. Due o a cerainoverlap in coverage, hey are implemened in 20 LDCs and 20 non-LDCs by 56 companies.The oal gran amoun ha will have been spen on all 139 ransacions on compleion ohe las one around 2017 is expeced o be approximaely EUR 936 million and may resul ininvesmens in public inrasrucure worh EUR 2090 million.

The combined ORET porolio was concenraed in cerain counries and companies. Fouro he 40 recipiens received in oal more han EUR 50 million each (Ghana, Tanzania,China and Sri Lanka) while 13 obained more han EUR 20 million. A similar concenraion

occured on he par o he predominanly Duch applicans: 24 o he 56 companies werere-users o ORET, someimes in he same counry (Ghana, Tanzania and China). The secorswih major re-users were drinking waer and saniaion, healh care, ranspor, shipbuilding,and we and dry inrasrucure, he mainsay o ORET. The drinking waer secor becameeven more popular aer inroducion o he Waer Faciliy in ORET in 2005. Mos re-users oORET were relaively large Duch mulinaional companies, oen already acive in hedeveloping counry markes.

The main research quesions o his evaluaion are ocused on:i. he relevance and effeciveness o ORET in enhancing susainable economic

developmen in recipien counries and he success and ailure acors o he publicinrasrucure invesmens;ii. ORETs uncion in mobilising finance or socio-economic inrasrucure and

complemening oher Duch oreign policy insrumens;iii. is role in aciliaing marke access or Duch companies and promoing durable rade

and/or invesmen relaions; andiv. he efficiency o he programmes managemen and he supervision by he Minisry.

To answer hese and more specific quesions, he evaluaion combined qualiaive researchbased on he sudy o relevan documens o he programme and is ransacions plus

inerviews wih sakeholders, wih a quaniaive analysis o he ransacions in he researchperiod. The quanaive analysis was based on a porolio review o all ransacions includingrejeced applicaions, a survey o successul and rejeced applicans, and 13 case sudies inseven recipien counries. A case sudy could consis o more relaed ORET ransacions suchas he our bus ransacions o Ghana. The 13 case sudies covered 24 compleed ransacions.This sample o ransacions offers a good cross-secion o beneficary counries, secors andapplicans. Four o he 13 case sudies included surveys o end users and beneficiaries. Thecase sudies were visied on sie, researched and scored on various dimensions o heregular DAC evaluaion crieria (Efficiency, Effeciveness, Impac, Relevance, Susainabiliy).This was supplemened by an assessmen o he crieria Addiionaliy and Policy Coherence.

Given he daa limiaions and he relaively large number o ORET-ransacions, hisevaluaion assesses he overall developmen conribuion o ORET and answers he firs andhird main research quesions primarily on he basis o he resuls o he 13 case sudies.


23/274


24/274

| 23 |


rickle-down effecs on povery reducion. Oher ransacions in areas such as healh,

educaion and drinking waer had a sronger direc effec on povery reducion. The effeco mos o he sampled ORET ransacions on he poor and women was neural. Someransacions did have benefis or he poor and women, eiher as he resul o explicidesign or by serendipiy. Because alernaive, less-concessional financing sources wereavailable or some ransacions in he group o ransacions aiming a susainable economicdevelopmen, he crierion o commercial non-viabiliy was no applied rigorously. Mos ohe sampled ransacions conribued moderaely o employmen creaion in he recipiencounries.

Imporan reasons or a reduced ocus on povery reducion lie in he changes in he

assessmen crieria aer 2005 and because o he lack o compeiion beween applicaionsin erms o developmen relevance. Grans were allocaed o applicaions had had me heminimum crieria on a firs-come, firs-served basis. This combinaion o acors resuledin a concenraion o unds in a limied number o counries ha were no always he poores

o he ORET-eligible counries, and also included China. The ensuing spending resuls nevergave he supervising Minisry reason or a course correcion. Deermined effors o enhancehe share o LDCs in ORET aer is reopening or his group in 2005 did pay off, in boh henumber o applicaions and he size o commimens and disbursemens. A limied numbero large ransacions in Tanzania, Mozambique, Bangladesh, Angola, Sudan, Ehiopia andhe Gambia which mainly ocused on susainable economic developmen, were responsible

or he larger LDC share in he oal gran sum.

3. Although the increasing inclusion o technical assistance, maintenance and capacity buildingor clients ater 2005 clearly improved the sustainability o ORET transactions, particularlyinancial sustainability remains a challenge.

Two disinguishing eaures o ORET ha were enhanced over ime were he srengheningo he echnical susainabiliy o ransacions and he insiuional susainabiliy o heircliens. The inroducion o a provision in 2005 ha offered more gran unds or a longererm or hese purposes increased he number o applicaions ha included addiionalechnical assisance and mainenance. O all 139 ransacions, 107 ransacions included

some orm o echnical assisance and mainenance. The use o his new provision was,however, direced more owards ransacions in non-LDCs han o ransacions in LDCs evenhough here prima acie a higher need would be expeced. The effecs o he echnical andinsiuional suppor o end users in he sampled ransacions were sufficien o reasonablyposiive. A ew ransacions such as he navigaion vessels Damen supplied o Indonesia andhe buses VDL supplied o Ghana, excelled in erms o local assembly and echnologyranser, and had broader effecs on he indusrial secors in he recipien counries.

Srenghening he insiuional capaciy o he clien as par o he ORET ransacion hassuppored a smooher implemenaion o he ransacions. This is illusraed by he bus

projec in Ghana, which even included financing o hire a Duch direcor or he newlycreaed public ranspor company or six years and or srenghening he managemen ohe company. All he case sudies emphasise he coninuous challenge or he cliens andhe recipien governmens o insil a culure o mainenance and susain he ransacions.


25/274

Work in Progress

| 24 |

The case sudies confirm he imporance o he ype o conrac beween he supplying

company and he clien or he success o he underlying ransacion. Turnkey conracs, whichimply ha he conracor has an obligaion o hand over a ully uncioning inrasrucural

service and o rain is saff in is operaion and mainenance, have worked bes.

The financial susainabiliy o mos ORET ransacions remains doubul. I is refleced inhe limied abiliy o generae revenue or lack o hard governmen commimens o allocaebudges o finance he recurren coss o operaion, mainenance and repairs. All dependson he poliical seting. Does i allow he clien o charge and acually collec user ees inorder or he operaion o be profiable and o finance a leas he coss o operaion andmainenance, or no? The alernaive mehod is ha line minisries give prioriy o he

ransacion in budge allocaions o finance he recurren cos and replacemen o worn-ouequipmen. In only a ew ransacions was par o he capial coss (ineres and amorisaiono he oreign loan) recovered rom user ees raher han rom he general governmenbudge. This makes i difficul o break he dependency o public inrasrucure financingon donor unding. I is somewha ironic ha various ORET ransacions rehabiliaed andexpanded earlier invesmens in public uiliies unded by oher donors in he pas.

Mobilising Finance for Socio-Economic Infrasrucure and Coherence wih Oher

Duch Policies

4. Although combining ORET grants with non-grant inancing had a positive leveraging eect,recipients aced high one-o inance costs to secure and insure commercial loans. By and largeORET unding was additional but had only a modest catalytic eect on ollow-up investments.

The unding package o mos sampled ORET ransacions was atracive or recipiens. By and

large he unding was addiional, implying ha mos ransacions as such would no have

been financed and realised in he absence o he ORET gran. Recipien counries coninously

scoured he donor und marke or he mos atracive packages on offer o finance heir

socio-economic inrasrucure needs. Their emphasis was usually on he lowes iniial

invesmen cos raher han on he opimal cos or providing he inrasrucural service

hroughou he lieime o he capial good or inrasrucure works. Alhough alernaive

unding was available or mos ORET ransacions, i is uncerain wheher such unds wouldhave been provided a similar concessional erms o hose offered by ORET. A number oprojecs would also have been implemened wihou he ORET suppor bu probably a aslower pace or a a smaller scale as was he case, or example or he drinking waer plans.The gran condiion o 50% or drinking waer projecs in non-LDCs was generous. In erms o

allocaed unds, i resuled in he inended secor preerence or one secor, especially in Ghana.

ORET grans have been leveraged by a acor 1:2 or 1:3 hrough he combinaion wihcommercial expor credis, oher donor unds or he recipiens own budge unds. This hasexended he reach o he programme, alhough his should no be overraed when aking

he modes size o mos ransacions ino accoun. The median ransacion amoun is EUR11.8 million whereas he ransacion amouns o more han 25% o he ransacions in heporolio are below EUR 4.5 million. Though long-erm expor credis were he dominanorm o non-gran unding, hey were no he only source. LDCs in paricular drew on oher


26/274

| 25 |

sources, including heir own budge, which could someimes resul in delays in paymen

and implemenaion. In he case o long-erm bank loans, insurance agains he credi risko non-paymen was oen a prerequisie or recipiens o secure access o hese unds. Thisunding came a he price o considerable one-off finance coss (bank ees and he insurance premiums o Aradius DSB, no including ineres and amorisaion paymens). The evaluaorsare unable o say wheher he insurance coverage resuled in lower ineres raes on heinsured loans compared o he ineres raes on non-insured loans, or provided access ocapial ha would have oherwise been unavailable. This is due o a lack o inormaionon he conrac deails o hese loans and because i is impossible o check agains anon-exising couneracual or he ransacions. The evaluaors did find some variance inhe one-off finance coss o hese ransacions ha is no easily explained by differences in

risk acors associaed wih he ORET-relaed loans.

For all 139 ransacions (88 were insured by Aradius DSB) an amoun o EUR 92 millionwas spen on one-off finance coss (oal insurance coss plus bank ees). These cos werefinanced rom he oal available gran amoun o EUR 936 million. In oal, EUR 1154 milliono non-gran unding rom various sources was arranged, resuling in a oal ransacionamoun o EUR 2090 million. The credi insurance coss, which ormed he bulk o boh heinsurance and he one-off finance coss, seem relaively high. This impression is reinorced

when considering ha over a period o 23 years Aradius DSB had o make only one damagepaymen arising rom he non-paymen o he deb service (ineres and amorisaion

paymens) on a loan or an ORET ransacion in Ghana. This paymen o 9,956,862 and he sillousanding deb were cancelled in a mulilaeral deb resrucuring in 2004, bu subsequenlyully charged agains he budge or developmen cooperaion. Only in a negligible number oransacions, did consrucion projec or capial goods insurance policies resul in nedamages or a oal amoun o EUR 243,982 charged o ECI. In cerain sampled ransacions,he high one-off finance coss divered gran unds rom developmen goals such as hemainenance or purchase o spare pars or long periods. Wih hindsigh, providing ORETrelaed expor credis and insuring hem agains he risk o non-paymen in his period wereatracive and almos risk-ree proposiions or he financing banks and or he sae insuranceagency acing on behal o he Minisry o Finance. In addiion, he evaluaors do no

undersand why Aradius DSB, acing on behal o he Sae, even aer ORET approved heransacions, would sill charge he exporers a risk premium on he gran amoun againshe risk ha ORET would no disburse he gran. On op o ha, ORET used he same gran opay 75% o his risk premium.

The caalyic effec o ransacions in simulaing ollow-up invesmens in oher secors or heregion varied rom sufficien o modes. This concurs wih he modes scores or heconribuion o ORET ransacions o susainable economic developmen and o he enablingenvironmen or privae secor developmen. ORET ransacions usually addressed onelimiing consrain or companies or invesors, such as drinking waer, public ranspor,

power generaion or logisics, and hereore did no direcly rigger oher invesmens buhey did play heir (modes) posiive role in he larger picure.



27/274

Work in Progress

| 26 |

5. ORET remained a somewhat isolated programme that was hardly complementary to other

Dutch aid and private sector development activities. This was primarily because o itsapplicant-driven and centrally-managed character and the long list o eligible countries.In general ORET showed limied synergy wih he Duch aid programme in parner counries,

wheher wih eiher he chosen prioriy secors in he bilaeral aid programme or wih ohercenrally-managed privae secor developmen insrumens, also available o a broadercaegory o recipiens. The coherence and effeciveness o ransacions were enhanced whenhe Duch embassy in a developing counry played a pro-acive role in he acquisiion oORET applicaions as was he case in Ghana, even i he ransacions did no fi in hebilaeral secor programme.

ORET had wo supporive insrumens o aciliae is ransacions: a he ron o hepipeline he PESP programme o he Minisry o Economic Affairs o co-finance he cos o aeasibiliy sudy and a he back Aradius DSBs insurance coverage o expor credis againshe risk o non-paymen o enable hese commercial loans o be secured. Based on hesampled ransacions, he evaluaors conclude ha he combinaion o supporiveinsrumens was helpul in enabling ORET ransacions bu was no always necessary oreiher he exporer or he recipien.

Faciliaing Marke Access for Duch Companies

6. ORET transactions played a limited role in acilitating market access or Dutch exporters andcomplementing Dutch economic diplomacy eorts to strengthen bilateral economic ties.The majoriy o ORET ransacions were execued by a limied group o Duch companies(primarily large ones) ha did no need ORET suppor o ener he marke bu where heconcessional unds were necessary o enable he specific ORET ransacions. Having a localpresence or knowledge o he counry was acually a bonus in implemening complicaedinrasrucure ransacions, especially in difficul circumsances wih poorly uncioninggovernmens.

ORET ransacions also played a limied role in complemening Duch economic

diplomacy effors o srenghen bilaeral economic ies. Reason or his was he limiedoverlap beween he much smaller group o rade prioriy counries o he Minisry oEconomic Affairs and he much larger group o ORET-eligible counries. In addiion, he ORETamouns were very modes in relaion o he regular bilaeral rade and invesmen flows. Thepossibiliy o dispersing he relaively modes gran amouns over so many eligible counries(66) and he lack o crieria or he allocaion o unds over counries or secors, made i animpossible ask o seer he ransacions owards prioriies rom he ouse.

7. The oicial procurement regime o ORET was not the decisive actor or what happened inpractice in terms o the contestability o the tendering procedures, the Dutch content realised

and the price/quality ratio o the transactions.The overview o he procuremen regimes in all 139 ransacions is no clear-cu wihinernaional compeiive bidding (ICB) in LDCs and direc award o Duch companies innon-LDCs. Over ime, he ying rules also changed. The ormal unying o ORET or LDCs led


28/274

| 27 |

o more oreign companies winning he inernaional enders (ICB) ha LDCs organised or

ORET ransacions, i.e. o he 43 ransacions nine were won by oreign companies and oneby a special purpose company (solely incorporaed in he Neherlands o become eligibleor ORET). Overall, he number o winning oreign companies remains quie modes inboh groups o beneficiary counries (LDCs and non-LDCs). O he oal o 139 ransacions,only nine were won by oreign companies (in nine LDCs) and six by special purposecompanies (one in a LDC and six in non-LDCs).

O he 43 ransacions in LDCs, 18 were endered by ICB and 25 by direc award. In hose

18 ICB ransacions, Duch companies won 11 enders. In 69 o he 96 applicaions in

non-LDCs, he ransacion was direcly awarded o a Duch company including hree special

purpose companies. Cliens in non-LDCs organised an ICB in 27 ransacions, which ORETpermited i naional procuremen legislaion insised. The ac ha Duch companies won

26 o he 27 ICBs is noable. I says somehing abou he conesabiliy o he ICB-procedure

in pracice hough ORET does no seem o deviae very much rom he pracices o he

compeing programmes o oher donors (see paragraph 3.5.2 and annex 7). Those

ICB-procedures ended up wih a higher Duch conen han was he case wih he direc

award ransacions. The ORET 2006 Regulaion prescribed a screening o he ICB-process by

he endering auhoriy o he recipien. I did no insruc ORET.nl o provide assisance in

he managemen o he ICB process and he prequalificaion o bidders. Litle inormaion

was ound on where and how ORET.nl provided acual assisance in his regard. The

prescribed subsequen screening o he qualiy o an ICB seems o have been done purelyas a ormaliy. In very ew ICBs did he screening process resul in a rejecion o he oucome.

Only a ew well-organised counries (such as Ghana) were able o ake ownership o heendering process and he negoiaions wih conracors, someimes by recruiing heir owninernaional price consulan. In mos sampled ransacions he price consulan hired byORET considered he charged prices o be marke compaible. In several ransacions, heprices o cerain goods or works were adjused aer he mandaory price check or scruiny byhe advisory commitee o ORET.nl. In he majoriy o he case sudies, recipiens regarded hesupplied works, equipmen and services as relaively expensive bu o beter qualiy han hose

rom alernaive suppliers. In some cases, meeing he required minimum Duch conen wasa real challenge or applicans, especially when here were only a ew Duch subconracors orcerain inputs. In a ew applicaions, ORET-eligibiliy condiions or ied ransacions werecircumvened by special purpose companies.In he case o some ied ransacions boh acors riggered creaive accouning on he origino cerain cos iems and componens so ha he minimum Duch conen rule could be me.

The evaluaors have been unable o esablish ha he ICB-procedures applied auomaically

delivered he bes developmen oucome or he bes price. When also aking ino accoun he

bilaeral pracices o oher donors, he evaluaors conclude ha donors do no compee in a ree

marke wih undisored compeiion o develop and finance socio-economic inrasrucure indeveloping counries. Recipien governmens recognise his and exploi i. Wha ulimaely

couns are he checks and balances ha programmes have in place and acually apply. They

deermine he mos avourable developmen oucome a he bes price wih he opimal finance



29/274

Work in Progress

| 28 |

offer maching he needs o recipiens, and no he official rehoric o he (un)ying regime (see

our suggesions in he nex secion).

Programme Managemen and Supervision

8. Programme management and institutional arrangements were adequately implemented orthe ORET acility. The implementing agencies were well-organised in the assessment oapplications but less so in monitoring transactions and evaluating results and were notencouraged by the Ministry to improve their activities either.

Wihin he agreed parameers o he managemen conracs, he programme was well managed,

firs by FMO rom 2002-2006 and aer 2007 by he ORET.nl consorium. ORET had a good

repuaion among he applicans and he cliens/recipien governmens. ORET procedures inhe applicaion and appraisal phases were generally considered o be sound and reasonable by

boh applicans and recipiens. Mos ransacions were realised wihin he agreed period and

he agreed budge. The flexibiliy in he riangle beween he applican company as he driving

orce, he recipien governmen and he adminisraor o ORET was one o he key success

acors in boh he assessmen and implemenaion o mos ORET ransacions.

ORET.nl showed a more hands-off approach in preparing ransacions as insruced by he

Minisry early 2007. According o he Minisry, his was done o avoid a conflic o ineres in he

laer appraisal o applicaions and in he decision making process and parly or he pragmaic

reason o ORET.nl being swamped by he exising workload and new applicaions. Is approacho adminisering a subsidy aciliy was differen rom FMOs which was o develop ransacions

ogeher wih he applican and he clien. In some gran agreemens, he FMO approach,

however, resuled in oo deailed policy condiions. Though he condiionaliy in he gran

agreemens was well-inenioned, i overesimaed he influence o ORET in influencing

poliically sensiive issues. This concerned, or example, he level o user charges and he

willingness or he abiliy o line minisries o finance he recurren cos and make parallel

invesmens in he saff required by he clien organisaions or in inrasrucure such as

dedicaed bus lanes.

On he one hand he design process o applicaions a he ime o ORET.nl could havebenefited rom a more collaboraive developmen o applicaions wih he applican andhe end-user or clien. In some ransacions he due diligenceo he end user/clien and heapplican ailed and led o laer problems in implemenaion. The policy o ORET.nl onindependen supervision o consrucion works lacked clariy and consisency. I wasunclear when i was decided o hire a supervisor, separae he supervision conrac rom hemain works conrac or combine i wih echnical assisance and raining. Neiher hecomplexiy o he ransacion, he experience o he applican nor he knowledge o he enduser and he recipien counry give consisen indicaions. On he oher hand, having anindependen advisory commitee o recognised expers rom various consiuencies was very

helpul in srenghening he qualiy o he decision-making process o ORET.nl.

ORET had insufficien capaciy o collec monioring and evaluaion (M&E) daa onoucomes and was oo dependen on daa provided by he applicans. In general here was


30/274

| 29 |

litle ransparancy on how ORET applicaions were seleced and unds allocaed and

disbursed since he annual repors and oher overviews o boh FMO and ORET.nl were nopublicly available. Inormaion was only provided when Parliamen expressely asked or i.The lack o verifiable daa on oucomes and he lack o elecronically accessible dossiers didno suppor he learning cycle wihin ORET. This was parly he resul o a lack o supervisionby he Minisry, alhough a he ime he M&E policy a he Minisry or privae secordevelopmen a large was sill underdeveloped. The recommendaion rom he previousORET evaluaion in his area was primarily implemened by making he M&E insrucionsor ORIO sricer. The problem was raised several imes in he regular policy dialoguebeween ORET.nl and he Minisry bu never addressed by he Minisry, nowihsandinghe subsanial disbursemens made aer 2007 and ORET remaining by ar he larges

programme wihin he Duch privae secor developmen policies.

Lessons or Fuure Inrasrucure Insrumens

Following hese general findings and oher conclusions in he evaluaion repor, IOB would

like o offer some suggesions o consider in he design o he successor programme DRIVE and

oher PSD programmes relaed o public inrasrucure in developing counries.

IOB bases hese suggesions on he assumpion ha he Neherlands wishes o mainain a

bilaeral and cenrally-managed public inrasrucure programme in developing counries or

he purpose o mobilising he inrasrucure developmen poenial o is own business secorin cerain niches in order o keep broad-based poliical suppor or developmen cooperaion

domesically.

Our suggesions come down o mainaining he basic srucure o ORET bu IOB sees scope orurher improvemens in a successor programme. While acknowledging all curren ineressand capabiliies, IOB proposes o make hem ully ransparen. IOB recommends inroducingsome new checks and balances o achieve more value or money and more bespoke financingand echnical assisance modaliies geared owards he long-erm requiremens o inrasruc-ure ocused on povery reducion. These policy suggesions are made wih a view o urher

srenghening he developmen objecive and enhancing he povery reducion relevance o asuccessor programme. In addiion, he suggesed checks and balances would improve heprice/qualiy raio o individual ransacions and reinorce he programmes accounabiliy osakeholders and is abiliy o learn and apply lessons o evaluaions in he whole projec cycle.

Wih hese consideraions in mind, IOB recommends he ollowing changes and addiionsor he successor aciliy:

1. I the goal is to enhance the eectiveness o the inrastructure programme, then strengthen theocus on public inrastructure where the Dutch unding is additional and supportive o poverty

reduction. This could be expressed in the goals, the selection and appraisal criteria oapplications and the list o eligible developing countries. One overarching goal.The Neherlands could disinguish isel rom oher donors by

offering a comprehensive approach o developing and co-financing public inrastructure



31/274

Work in Progress

| 30 |

where he Duch unding is addiional o oher available financial sources and srucured

on a needs basis. This would be especially he case or: i. poorer developing counries inwhich governmens have less revenue and less access o commercial sources; ii. he ypeo public inrasrucure ha generaes less or no own revenue hrough user ees bu does have a srong direc effec on povery reducion. To achieve his, insead o implicilyhaving wo objecives, a bilaeral inrasrucure programme should have a singleoverarching goal: he developmen o public inrasrucure ha has a srong poveryreducion ocus and ha is ully owned by he recipien governmen. New Duch aidinsrumens (such as he Duch Good Growh Fund), inroduced aer he closure oORET in oher clusers o he broader PSD policy o he Neherlands, are now availableor ha purpose. They are beter equipped o enable privae secor developmen and he

more implici objecive o maximising he reurns or he Duch business secor (includingSMEs). Though one has o recognise ha some ension may arise in pracice beweenhe ownership o he recipien governmen and he effec on povery reducion o anapplicaion, his could be accommodaed in he selecion crieria o he programme.In essence, his implies a more rigorous applicaion in he selecion process o he woOECD Consensus crieria on commercial non-viabiliy o he applicaion: long paybackperiods beyond en years and (no or) he recipien governmen being unable o atraclong-erm commercial unding or no having access o domesic financial sources.

A compeiive selecion model.Consider re-inroducing he beauy cones selecion

model o he earlier ORIO version (hough less complicaed) o simulae compeiionamong applicaions based on heir addiionaliy and effeciveness in povery reducion.Perorming he selecion process in a more ransparen and public manner wouldincrease ransparency and also give guidance o prospecive applicans and recipiengovernmens. A minimum alernaive could be he inroducion o indicaive ceilingsor eligible counries hroughou he enire programming period o a successorprogramme combined wih he projec idenificaion mechanisms elaboraed below.

Fewer eligible counries. The addiionaliy, povery ocus and effeciveness o asuccessor could be urher enhanced by reducing he lis o eligible counries. In doing

so, he programme could ake ino accoun he developmen level o recipien counries,he commercial non-viabiliy o an applicaion, he risk o disoring compeiion wihODA-unds and he need or applicans, implemening agency and Duch embassies ohave in-deph knowledge o he local conex so ha he ransacion will be effecive.

Focus on poorer counries and larger ransacions.In order o enhance hedevelopmen impac, hese consideraions would ranslae in:i. An emphasis on poorer counries (LDCs and a group o LICs and LMICs o be defined

bu ha will be more limied and include he curren aid parner counries). Evenamong he group o LDCs a urher selecion could be considered, since being an

LDC does no auomaically qualiy a counry o be a parner counry o heNeherlands;ii. Prioriy or public inrasrucure ha is addiional, has a greaer direc effec on

povery reducion and avoids marke disorion wih ODA-unds; and


32/274

| 31 |

iii. Inroducion o a minimum ransacion amoun, in addiion o he curren ceiling.

Larger ransacion amouns could increase he leverage wih recipien governmenson sensiive policy maters, such as user ees, ransparen billing and revenuecollecion. Larger ransacions would also jusiy he higher cos o inroducing abeter M&E sysem.

2. Enhance the successor programmes efficiency and the effectiveness of transactions by insertingbetter checks and balances in the selection process, the management and the implementationo the programme, and by dropping certain conditions while strengthening others.

Improve he ICB process. Respecing earlier commimens o he Neherlands in heOECD/DAC, IOB suggess mainaining he ully unied naure o a successor programme

o ORET or eligible LDCs bu o improve he oversigh o he inernaional enderingprocess by he implemening agency. In addiion, echnical assisance could beprovided o endering adminisraions where needed. This would enhance he airness,compeiion and ransparency o he inernaional procuremen procedures.

Checks and balances for more value for money.A he same ime one should recognisehe value o having a driving orce behind an applicaion rom he supplying companyha has a commercial ineres and a repuaion a sake in delivering longer-lasingresuls. For eligible non-LDCs, we hereore sugges keeping heir naional procuremenrules as paramoun and, i allowed wihin hose rules, o mainain he ied saus or

non-LDCs by sipulaing ha applicans mus be Duch companies. This would enailscruinising special-purpose companies on heir domesic subsance and presence inhe Neherlands beore hey can be considered eligible applicans. Raher han making asuccessor programme ully unied by inroducing a superficial ICB procedure in nameonly, we propose enhancing is value or money by inroducing new checks andbalances in case o non-LDCs and beter monioring and evaluaion procedures. From adedicaed budge, he programme could offer LDCs echnical suppor in he ICBprocess. Eligible non-LDCs could be offered co-unding o hire heir own priceconsulan o suppor conrac negoiaions on price/qualiy wih he applican.

Address procuremen-relaed risks.IOB recommends ha a successor programmereduce procuremen-relaed risks by having a prior review o he conracs wih hehighes risk o poenial abuse and random independen pos procuremen reviews.In addiion, a regular review could be held o he efficiency o he procuremen processand risk-miigaing procedures o simulae compeiion, efficiency, ransparency,equiy and domesic marke developmen hrough local subconracing. More use onaional procuremen sysems o recipiens and allowance or domesic preerence ordeveloping domesic supply capabiliy could be made, depending on how much hesesysems diverge rom he World Bank guidelines on inernaional procuremen.

Drop he minimum conen rules in non-LDCs.The minimum Duch conen rule osourcing a leas 50% o he inputsrom he Neherlands or ransacions in non-LDCscan be dropped. This rule has become superfluous, has riggered creaive accouning,may have increased cos in secors where only a ew Duch suppliers o required inputs



33/274

Work in Progress

| 32 |

were presen and has hampered cheaper local subconracing. More local subconracing

in he recipien counry would enlarge he direc and indirec employmen effecs. Theprogramme could go a sep urher and consider ways o rewarding local subconracing, e.g. by a preerenial pricing, provided ha minimum sandards or ransparenprocuremen are me.

Sricer due diligenceof applicans and cliens.IOB suggess a sricer due diligenceesing o applican companies and bidders in boh he ICB procedure and he iedprocedure. The success o a complex inrasrucure ransacion oen depends on hepresence o adequae capaciy and experience in he implemening company. Applicans

will preerably be amiliar wih he local conex or, even beter, have a local presence.

This will also enhance he likelihood o he invesmen being susainable or longer.The implemening company should be made he primary responsible or spare parsdelivery, echnical assisance and raining o saff (see below).

Joint development.IOB advises developing more ransacions joinly wih he applican,he clien and he implemening agency as was done by FMO. For he appraisal oapplicaions, IOB recommends ha he implemening agency always makes a prior field

visi in order o ge a good idea o he local conex and o check he insiuionalcapaciy o he clien/end user. More downsream involvemen o he implemeningagency in he ype o commercial conracs (preerably o a urnkey naure) in boh LDCs

and non-LDCs would also conribue o more effecive ransacions.

Sricer separaion of roles in implemenaion and supervision. IOB recommends asricer separaion o roles and responsibiliies, especially in he case o supervisionconracs o complex inrasrucural works. A successor programme could develop aclear policy ramework or he supervision o he implemenaion o ransacions, basedon a risk assessmen o he complexiy o a ransacion. A recruied supervisor should

work solely or he clien organisaion and preerably have a local counerpar a heclien or line minisry. Conracs or supervision work should always be separae romhe conrac or he works and no be mixed wih echnical assisance and capaciy

building aciviies wihin he ransacion.

Enhance susainabiliy.Technical assisance, delivery o spare pars and capaciybuilding o he clien should become a mandaory par o any ransacion, wih heopion or he clien o have hese a heir disposal or a longer erm aer compleion ohe ransacion. I should be he responsibiliy o he applican company o enhancesusainabiliy and insil a culure o proper mainenance wihin he clien organisaion.

3. Boost the value for money in the financing modalities and reinforce the financial sustainabilityo transactions by allowing more bespoke solutions within a transparent policy ramework.

Modaliies for non-gran financing and expor credi insurance. The Neherlandscould consider reviving he previous uncion o he Neherlands Invesmen Bank (NIO)o providing long-erm concessional loans o eligible developing counries or his ypeo public inrasrucure. Doing so would in-source he non-gran unding jus as he


34/274

| 33 |

managemen o ORIO and now DRIVE has been in-sourced a RVO. A revived NIO could

work in andem wih RVO as he in-house financier. The NIO, wih he backing o heDuch Sae, could atrac he required long-erm finance a very avourable condiionsor he oreseeable uure, or on-ward lending o eligible developing counries. In achis would imply a reurn o he LCL-unding arrangemen or ORET a he end o he1980s and provide a much beter mach wih he unding needs o poor counries orpublic inrasrucure, especially in case o inrasrucure wih a srong povery reducionocus. I he NIO were o exend concessional loans or he ull amouns o ransacions,he relaively expensive one-off finance coss would become redundan. The leveragingeffec o ORET grans in a mixed credi orma would be los in his opion. This losscould be accommodaed by a larger loan budge where he ne presen value o hese

loans could be equaed o he inended gran amoun or DRIVE (in line wih he newODA reporing rules).

Tailor-made financial soluions. In-sourcing he long-erm finance would creae moreopporuniies or bespoke financing soluions. The concessionaliy o such loans(expressed as he capialised oucome o he grace period, he lengh o he disbursemenperiod, he repaymen period and he charged ineres rae) could be atuned o heincome classificaion o he recipien, he povery ocus o he ransacion, and herequired pay-back period. These aspecs could also be linked o he abiliy o he inendedinrasrucure o produce a cash flow o user ees or o he recipien governmens

capaciy o allocae is own budge resources or operaion and mainenance. In hisrespec he Minisry should ake accoun o recen changes in he reporing rules o heDAC or concessional ODA-loans. Under he new rules, soer concessional loans opoorer counries are rewarded wih larger ODA-credis han less concessional loans oricher counries.

Make i cheaper and keep i simple.I in-sourcing o he lending is poliicallyuneasible, hen a all-back would be o keep he curren mixed credi orma wih isleveraging effec o ORET grans bu enhance is cos-effeciveness. The evaluaionshows ha he insured commercial expor credis relaed o ORET ransacions and

guaraneed by recipien governmens have behaved as a special risk caegory. Thealmos negligible deaul risk is good grounds or having a conversaion wih heMinisry o Finance on he curren risk classificaion o ORET-relaed loans and he levelo he premiums now charged or heir credi insurance. One opion could be propo-sing a differen reamen by he OECD Consensus o hese mixed credis o sovereignborrowers. Anoher could be he above-menioned insourcing. In addiion, o avoidenabling commercial loans as par o a mixed credis programme o recipien counries

which are oally uncrediworhy, IOB advises keeping he financing modaliies assimple as possible and no engaging in oo much financial engineering and accumula-ion o various financial insrumens. Deb susainabiliy o he recipien should remain

a prerequisie o any inrasrucure programme. I he mixed credi orma is main-ained, he ORET gran can sill be repored o he DAC as ODA or he ull amoun. Iwould no affec he ODA perormance o he programme. The excepions ha areembodied in he commercial loans or he ull ransacion amoun o wo ORET



35/274

Work in Progress

| 34 |

ransacions in Sri Lanka ha were soened by paying he ineres rom he ORET gran,

should no be imiaed as he unding sandard in a successor programme. The mosimporan reason or no doing so is he much higher one-off finance coss orrecipiens, especially or he credi insurance premium.


36/274

| 35 |



37/274

Introduction


38/274

| 37 |

1.1 Purpose and Scope o he ORET Evaluaion

During is lieime he ORET aciliy was evaluaed several imes, he mos recen beingin 2006 and covering he period 1999-2004 (Berenscho, SEOR, Ecolas, 2006). Almosconcomianly, a join evaluaion (NCSTE and IOB, 2006) was underaken by he ChineseCenre or Science and Technology Evaluaion (NCSTE) and he Policy and OperaionsEvaluaion Deparmen (IOB) o all 84 ORET/MILIEV ransacions compleed beween 1991and 2003 in China. The 2006 Order o Periodic Evaluaions o he Neherlands prescribesha all governmen policies be evaluaed periodically and a leas once every seven years(Minisry o Finance, 2012). The presen evaluaion was planned as par o his muli-annualevaluaion programming o he Minisry. I assesses he resuls achieved by he

ORET-programme in he period 2007-2012 and he exen o which he programme achievedis objecives. The Terms o Reerence (IOB, 2013) menion wo specific purposes or heevaluaion:

i. Accountor he uncioning o he ORET-programme in he period 2007-2012 and heresources (financial and oherwise) used or he implemenaion o he programme.

ii. Learnlessons rom he uncioning and effecs o ORET ha could be used o improvepolicy implemenaion or he remainder o ORET, and oher public inrasrucureinvesmen programmes and privae secor developmen policies in developing

counries such as ORIO and he Duch Good Growh Fund.

In addiion, his evaluaion aims o assess he effecs o he changes inroduced in he 2006ORET Regulaion, he learning effec o earlier evaluaions and wheher he inroducion ohe successor programme ORIO in 2009 affeced he implemenaion o ORET. Alhough heORET programme has been closed or new applicaions since 1 Augus 2007, an independenevaluaion is sill warraned in order o evaluae he subsanial resources used and he resuls

achieved. The evaluaion inends o generae lessons or he remaining implemenaionperiod o ORET, is successor programme ORIO (which closed or new applicaions in April2014), and oher programmes in he area o public inrasrucure invesmens and privae

secor developmen in developing counries, such as he Duch Good Growh Fund and heinended successor programme o ORIO: DRIVE.

The evaluaion addresses key issues a wo levels: A programme level: he developmen relevance and effeciveness o he ORET programme

regarding he policies, needs and prioriies o he recipien counries and o heNeherlands, and he efficiency o he programmes managemen and procedures.

A projec/ransacion level: he effeciveness o ORET ransacions in meeing heir ownormulaed objecives and heir oucomes. The findings on effeciveness will enableconclusions o be drawn abou wheher he programme as a whole has been meeing

is objecives and precondiions.

Inroducion


39/274

Work in Progress

| 38 |

1.2 Main Research Quesions and Evaluaion Crieria

Tex Box 1 reers o he double objecives o ORET o promoing developmen in developingcounries and promoion o Duch expors. In his evaluaion we have atemped odisenangle he wo objecives hrough our research quesions, he evaluaion crieria andhe indicaors in he score card or our case sudies (see paragraph 1.4.3).

The cenral research quesions o he evaluaion a programme level are:

1. Has he ORET programme been relevan and effecive in enhancing susainableeconomic developmen and he enabling environmen or he privae secor in

recipien counries? Can key success or ailure acors or he programme as a whole beidenified and, i so, which o hese acors have played an imporan role in enhancinghe susainabiliy o he invesmens?

2. Has ORET ulfilled a caalyic role in mobilising addiional finance or socio-economicinrasrucure invesmens and has i complemened oher insrumens o Duchdevelopmen cooperaion or oreign economic policy?

3. How imporan has ORET been or Duch companies involved in ORET ransacions inerms o aciliaing heir access o he markes o recipien developing counries and in

promoing durable rade and/or direc invesmen relaions in recipien counries, evenhough his was no longer an explici objecive o he 2006 ORET Regulaion?

4. How efficienly has he ORET programme been managed a programme level, how havehe acceped recommendaions o earlier evaluaions been ranslaed ino he ORETprogramme and wha effec has his had in pracice (i.e. wha has been he learningeffec)?

These main quesions have been broken down ino sub-quesions ha are classified underhe headings o he regular DAC/OECD evaluaion crieria: Efficiency, Effeciveness, Impac,

Relevance and Susainabiliy, supplemened by Addiionaliy and Coherence. Whererelevan and opporune, quesions have been combined. The research quesions arelised in greaer deail in he Terms o Reerence (IOB, 2013), boh a he programme andransacion/projec level.

The evaluaion has atemped o make an independen assessmen o he ORET programmea he wo levels (programme and projec/ransacion), by applying he ollowing definiionso he evaluaion crieria menioned above:

Efficiencyreers o he realisaion o ransacion aciviies in relaion o ime and

budge, he appraisal and monioring and evaluaion o he ransacion, and hecos-effeciveness o he financing package.


40/274

| 39 |

Effectivenessrelaes oupus o oucomes: he exen o which he ORET programme

achieved is objecives o simulaing he socio-economic inrasrucure in he recipiendeveloping counry and has i conribued o increasing Duch expors? Impactrelaes o effeciveness and he exen o which he long-erm effecs o he

ransacions conribue o achieving he ulimae objecives o ORET and o heindividual ransacions?

Sustainabilityrelaes o long-erm resuls: he exen o which he ransacion/projec isfinancially, echnically and insiuionally viable in he long run and wha was isenvironmenal impac?

Relevancereers o he exen o which he ransacion/projec is in line wih he policiesand sraegies o he recipien counry?

Additionalityreers o wheher or no he ransacion/projec would have been financedin he absence o he ORET gran. In addiion, he catalyticroleo he ORET gran isconsidered by examining he exen o which ORET mobilised addiional finance orsocio-economic inrasrucure ha would oherwise no have been creaed and wheheror no ORET disored domesic markes by displacing oher enrepreneurs?

Policycoherencereers o he exen ORET complemened or conradiced oher insrumenso Duch developmen cooperaion and oreign policy (paricularly oreign economicpolicy) o he Neherlands?

1.3 A General Resul Chain or ORETThe saring poin or he evaluaion ramework is he (re)consrucion o he resul chainha srucures he expeced ORET processes and heir achieved resuls in a logical rame-

work. This includes an elaboraion o he heory o change a ransacion level ha connecshe various componens o he resul chain, including he underlying key assumpions andconexual acors. To ake accoun o he diversiy o all 139 ransacions in he ORETporolio o be evaluaed, a sandard resul chain or ORET was developed (see Figure 1.

A General Resul Chain or ORET). More deailed resul chains were elaboraed or heindividual case sudies.

Figure 1 idenifies he specific relaions beween is componens inpus, aciviies,oupus, oucomes and impac where: The inpus o ORET are he financial, maerial and human resources employed o

produce he inended oupus; The oupus are he deliverables o he aciviies underaken and he direc resuls o he

compleed ORET ransacion (or o he larger projec i he ransacion ormed a par oha), which was under he direc conrol o he implemening agency and he supplier;

The oucomes o he ransacions are he shor-erm and inermediae effecs ha heoupus have had on he end users (cliens) and inended beneficiaries, e.g. in erms o

changes in heir behaviour and/or increased use o he realised public inrasrucureand services; and

Inroducion


41/274

Work in Progress

| 40 |

The impac reers o he longer-erm effecs ha can be atribued o he inervenion or

o which i has conribued such as increases in employmen, economic growh andhealh, and less povery in recipien counries.

In view o he large number o ORET ransacions, assessing he developmen conribuiono he ORET-programme was based on a selecion o cases sudies ha mosly compromisedrelaed ORET ransacions in a selecion o recipien counries (see Annex 6). Whilerecognising he limiaions o sampling, we have seleced a sample in erms o he breadho he porolio (regions, recipiens and secors) in order o be able o draw meaningulconclusions or he programme as a whole.

Figure 1 A General Result Chain or ORET

Inputs Activities Outputs OutcomesImpact/

Long-term Results

ORET grans. Human

resources oFMO/ORET.nl.

Experiseapplicancompanies.

Commercial

expor crediloans and/ oroherfinances/loans.

Expor crediinsurance(ECI).

Funds oreasibiliysudies(PESP).

Co-financingo publicinvesmensin socio-economicinrasruc-ure.

Delivery o

capial goods,echnologyandinrasrucureworks.

Technicalassisance ormainenance,raining andinsiuionbuilding.

Spare-parsdelivery.

Roads. Bridges. Harbours. Dredging. Power plans. Airpors. Waer supply

and waer

reamenplans. Hospials and

medicalequipmen.

Transpor &vehicles.

Parol andresearchvessels.

Educaionsysems.

Engineeringservices.

Eceera.

Increased use o herealised inrasruc-ure, supplied capialgoods and enhancedpublic services orinended beneficia-ries (companies, endusers, paiens,

sudens, raders orconsumers). Enhanced mobiliy

due o improvedlogisics.

Increase in economicand enrepreneurialaciviy.

Increase in produciveinvesmens (local,FDI and joinvenures).

Qualiy improve-mens in exisingproducion processesand public services.

Eceera.

Sronger and moresusainable publicservices.

Increase in ormalemploymen (men/women).

Lower ransacion cossor local companies

and end users (imesavings, mobiliy). Increase in commerci-

ally viable companies. Increase in Duch

expors. Durable rading

relaions wih NL. Susainable economic

growh. Less povery. Enhanced healh. Higher lie expecancy. Eceera.

Susainable develop-men and enhancedenabling environmenor privae secordevelopmen


42/274

| 41 |

1.4 Evaluaion Mehodology

1.4.1 Main Research Aciviies

The evaluaion combines qualiaive research based on he sudy o relevan documens ohe programme and ransacions and inerviews wih sakeholders, wih quaniaiveanalysis based on a porolio review, a survey o applican companies, and 13 case sudiesconsising o 24 ransacions in nine counries (our case sudies involved in-deph surveysamong end users and beneficiaries).

The main aciviies o he evaluaion can be summarised as ollows:

1. Policy Reconstruction o the ORET Programme.The policy developmens o he ORET programme were reconsruced, ocusing on he periodaer 2002. For his purpose relevan policy documens were sudied and key sakeholders inhe Neherlands inerviewed, among hem he saff o ORET.nl, relevan saff o heMinisries o Foreign Affairs and o Economic Affairs, and many ohers (see annex 9 or acomplee lis o inerviewees). Also used as inpus were he previous evaluaion o he ORETprogramme (Berenscho, SEOR, Ecolas, 2006) and he ORET China evaluaion (NCSTE andIOB, 2006).

2. Desk study and ield visits o nine ORET transactions selected or the our in-depth case studies

in Ghana (seven transactions), Sudan (one transaction) and Tanzania (one transaction) thatincluded surveys o end users and beneiciaries.This included assessmens o he views o he suppliers and recipiens on he perormanceo he ORET programme in general and o he ransacions in paricular (see he separaecounry repors and summaries in annex 8). Suppliers o hese ORET ransacions andsakeholders in he recipien counries were inerviewed using a srucured inerview design(see he ToR, annex 5).

3. Desk study and ield visits o the other 15 ORET transactions in the sample in Tanzania(ive transactions), Indonesia (three transactions), Sri Lanka (two transactions), Bangladesh

(one transaction), Ghana (two transactions) and Guatemala (two transactions).These case sudies did no involve surveys o end users bu did include an assessmen o heviews o he recipiens and suppliers on he perormance o he ORET programme and heransacions. The resuls o all case sudies have been incorporaed in chaper 4 and are alsosummarised in annex 8. For ull ransparency individual case sudy repors will be publishedseparaely on he IOB websie.

4. Aggregating the results o the 24 case studies.Using a scorecard, he 24 ransacions rom he 13 case sudies were scored independenly bywo or hree evaluaors (see paragraph 1.4.3 and annex 4 or an explanaion o he scoring

mehodology used). Aer grading he 26 indicaors o he evaluaion crieria, resuls wereaggregaed per evaluaion crierion or each o he 13 case sudies (see chaper 4 or hesynhesis).

Inroducion


43/274

Work in Progress

| 42 |

5. A company survey o all ORET applicants.

Applican companies o ORET ransacions, boh in he Neherlands and abroad, werequeried in an elecronic survey o elici heir views on he ORET programme in general andheir ransacions in paricular. A selecion o hem was hen subjeced o ollow-upinerview using a srucured inerview design (see he ToR, annex 5). Resuls rom his surveyare incorporaed in paragraph 3.4.

6. Desk study o the remaining 115 transactions in a portolio review.A porolio review was done o all ransacion documens available in he ORET.nl andMinisry archives. Given he limiaions o his analysis and he ac ha he companiessel-assessmen o he resuls o heir own ransacions was no validaed independenly,

his aciviy mainly ocused on financial and procuremen characerisics and efficiencyaspecs o he reamen by ORET.

7. Analysis o a selection o rejected applications.A number o non-approved ransacions were seleced and he rejeced applicans wereinerviewed o elici heir views on ORET and heir applicaions. Some applicans wereinerviewed ace-o-ace abou heir experiences wih he ORET programme and ohers wereasked abou heir views via he e-survey (see paragraphs 3.1.3 and 3.3).

8. Study o the context o the ORET programme in the Netherlands.

In addiion o he sudy o relevan policy documens o he ORET programme, inerviewswere conduced wih sakeholders such as financial insiuions involved in financing andinsuring he non-gran par o he ORET ransacions and represenaives o he Duchbusiness communiy (see paragraph 3.2.7).

The resuls o all research aciviies described above were used as building blocks or he

evaluaion wih a view o drawing well-ounded conclusions abou he ORET programme as a

whole. Findings and conclusions and issues or uure consideraion are described in he

concluding chaper 5 and he inroducory par o his repor. Inormaion rom he surveys,

he desk research and he inerviews wih sakeholders may show differen resuls and/or

opposing views on he ORET programme in general and various aspecs o he programme inparicular. Where possible, daa and views have been riangulaed and, i warraned because o

opposing views or conflicing daa, repored separaely in his repor. The ORET ransacions

in his evaluaion have been evaluaed in accordance wih he ORET regulaions valid in he year

heir applicaions were submited, i.e. 1992, 1999, 2000, 2002, 2005, 2006, 2007, or 2008.

1.4.2 Selecion of he 13 Case Sudies

In he evaluaion period 2007-2012, 86 ORET ransacions were compleed. A he beginningo 2013, 53 approved ransacions were sill acive in 20 counries covering 11 secors.The las ORET ransacions are expeced o be compleed by 2017. The 86 ORET ransacions

compleed in he period 2007-2011 covered 26 counries (en LDCs and 16 non-LDC

work in progress – evaluation of the oret programme – investing in public infrastructure in...

Documents