However, given the complexity of these measures, development impact can take time to
… independent evaluation of NSO p rojects aims to strengthen accountability and identify lessons that can be used to inform the Bank’s p rivate sector development strategy and improve future operations.
and identify lessons that can be used to inform the private sector development strategy and improve future operations. Evaluation is a key part of the Bank’s project cycle. It helps ensure the continuous improvement of future projects based on lessons learned from past operations. In fact, evaluation of private sector operations is crucial for determining the real effects of such investments on people’s lives and for improving the Bank’s development effectiveness. NSO performance evaluations assess projects on the basis of: (i) Development Outcomes (DO): This focuses on projects’ contribution to private sector development in the country or the region, their business success or financial performance, their economic development and their positive social and environmental impact.
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deliver results. Consequently, appropriate timing and regular project monitoring are essential for successful NSO evaluations to provide meaningful feedback that strengthens the results focus to shareholders. (ii) The Bank’s investment profitability: This dimension assesses the borrower’s debt service capacity. It indicates the borrower’s ability to repay the loan and to stay current on its payments until the end of the project cycle. A few financial ratios are calculated to determine the Bank’s investment returns: internal rate of return (IRR) or return on invested capital (ROIC). Investment profitability is as