IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Working Paper 186 - Balancing Development Returns and Credit Risks: Evidence from the AfDB’s Experience

Recent debates amongst civil society organizations focusing on the governance of multilateral development banks have expressed some concerns regarding institutional capacities to ensure project quality-at-entry in line with key developmental issues. The present paper delves upon the African Development Bank’s (AfDB) “Additionality and Development Outcomes” framework practice in that respect. By reviewing the concepts that underpin the AfDB’s project quality-at-entry framework, the paper brings out the importance of well-aligned appraisal criteria with institutional priorities. The paper’s main contribution is to provide empirical regarding the extent to which key components of project quality-at-entry criteria interrelate and how they balance against credit concerns. Results suggest that at appraisal the AfDB has played an active role in achieving development outcomes, increasing the development focus of portfolio decisions. Also, results highlight that the variables taken into account during appraisal – whether they pertain to development or risk concerns - are rather independent from each other and that no assumption should be made on one variable given information on the others. Finally, findings suggest that both development outcomes and additionality considerations are important for project approval at board level. More specifically, considerations regarding financial additionality matter when it comes to AfDB value-added in a project, and concerns over household benefits, gender & social effects, government revenues and private sector development matter most when it comes to overall development outcomes. While some caveats remain to be addressed, the overall conceptual and institutional framework now in place has laid strong foundations that will help measure how these projects have performed in practice.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Working_Paper_186_-_Balancing_Development_Returns_and_Credit_Risks-_Evidence_from_the_AfDB%E2%80%99s_Experience.pdf
Download Restriction: no

Paper provided by African Development Bank in its series Working Paper Series with number 990.

as
in new window

Length:
Date of creation: 23 Dec 2013
Date of revision:
Handle: RePEc:adb:adbwps:990
Contact details of provider: Postal: 15 Avenue du Ghana P.O.Box 323-1002 Tunis-Belvedère, Tunisia
Phone: (+216) 71 10 39 00
Fax: (225) 21.77.53
Web page: http://www.afdb.org/en/knowledge/publications/
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:adb:adbwps:990. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adeleke Oluwole Salami)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.