Strengthening Institutional Capacity during Project Implementation
Introduction
This note is intended to help shift the implementation paradigm for Bank-financed operations toward organizational structures that systematically foster more sustainable capacity development through greater use of and support for country systems and institutions, while ensuring timely project implementation and disbursement. The Bank has long recommended that stand-alone project implementation units (PIUs) be mainstreamed into existing ministry structures, because they are inconsistent with the Bank’s mission of capacity development and institutional strengthening in developing countries.1 However, many projects continue to rely on PIUs because external and internal incentives work toward organizational arrangements that favor the short-term goal of safeguarding project fiduciary and performance objectives.
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