Project Delivery Competencies

Module 7: Project Completion and Evaluation

Project Completion Phase

As implementation draws to a close, the project enters its final phase – completion and evaluation. This phase is critical for ensuring that project achievements are sustained, lessons are captured, and accountability is maintained. For sovereign operations, this involves formal closure procedures and transition to regular operations. For non-sovereign operations, it may involve exit strategies from investments and assessment of development outcomes.

Key Activities in Project Completion

Physical Completion and Handover

For infrastructure projects, physical completion involves finalizing construction, conducting technical inspections, and formally handing over assets to the operating entity. This typically includes:

• Final inspections and acceptance of works
• Testing and commissioning of equipment
• Training of operations and maintenance staff
• Preparation of operation and maintenance manuals
• Formal handover ceremonies or documentation

For non-physical projects (e.g., policy reforms, capacity building), completion involves verifying that all planned activities have been implemented and outputs delivered.

Financial Closure

Financial closure involves finalizing all financial transactions, including:

• Processing final disbursements
• Reconciling project accounts
• Conducting final audits
• Returning any unused funds
• Closing designated accounts

For sovereign projects, the borrower typically prepares a final financial statement, which is audited and submitted to the IFI. For non-sovereign operations, financial closure may involve final repayments, exit from equity investments, or transition to regular portfolio monitoring.

Implementation Completion Reporting

A formal completion report documents the project's achievements, challenges, and lessons. In the World Bank, this is called an Implementation Completion and Results Report (ICR); other IFIs have similar instruments.

The completion report typically includes:

• Assessment of achievement of development objectives
• Comparison of planned versus actual outputs and outcomes
• Analysis of factors affecting implementation
• Evaluation of borrower and IFI performance
• Assessment of sustainability of project benefits
• Lessons learned for future operations

For sovereign projects, the completion report is often prepared jointly by the IFI and the borrower, or with substantial borrower input. For non-sovereign operations, the IFI typically prepares an expanded supervision report or similar document at exit.

Post-Project Evaluation

Independent Evaluation

Beyond the self-evaluation in completion reports, many IFIs have independent evaluation departments that conduct more rigorous assessments of selected projects. For example:

• The World Bank's Independent Evaluation Group (IEG)
• ADB's Independent Evaluation Department (IED)
• IFC's Development Outcome Tracking System (DOTS) and subsequent evaluations

These independent evaluations typically occur several years after project completion to assess longer-term outcomes and sustainability. They often use more rigorous methodologies, including comparison groups where possible, and may involve field visits and stakeholder interviews.

Independent evaluations serve several purposes:

• Providing accountability to shareholders and stakeholders
• Generating lessons for future operations
• Informing institutional policies and strategies
• Building an evidence base on what works in development

Impact Evaluation

For selected projects, IFIs may conduct or support impact evaluations – rigorous studies that attempt to establish causal links between project interventions and outcomes. These typically use experimental or quasi-experimental methods to isolate project effects from other factors.

Impact evaluations are resource-intensive and not conducted for all projects, but they provide valuable evidence on the effectiveness of different development approaches. They are particularly common in sectors like education, health, and social protection where randomized controlled trials or similar methods can be applied.

Sustainability Assessment

A critical aspect of post-project evaluation is assessing the sustainability of project benefits – whether the positive outcomes will continue after IFI support ends. This involves examining:

• Financial sustainability: Are there adequate resources for ongoing operations and maintenance?
• Institutional sustainability: Do the relevant institutions have the capacity and commitment to continue activities?
• Technical sustainability: Is the technology appropriate and can it be maintained locally?
• Environmental sustainability: Are environmental benefits durable and are any negative impacts adequately mitigated?
• Social sustainability: Is there continued community support and benefit-sharing?

Sustainability planning should begin during project design and be reinforced throughout implementation, not treated as an afterthought at completion.

Independent Accountability Mechanisms

How Accountability Mechanisms Work

While specific procedures vary, most IAMs follow a similar process:

1. Complaint Receipt: Affected communities or their representatives submit a complaint alleging harm from an IFI-financed project.
2. Eligibility Assessment: The IAM determines if the complaint meets basic criteria (e.g., related to an active project, alleges policy non-compliance or harm).
3. Problem-Solving or Compliance Review: Depending on the mechanism and complainants' preferences, the case may proceed to:
   • Problem-solving: Facilitated dialogue between complainants and project implementers to resolve issues
   • Compliance review: Investigation of whether the IFI complied with its policies
4. Recommendations and Monitoring: The IAM issues findings and recommendations, which may be followed by a monitoring period.

IAMs have handled hundreds of cases globally, addressing issues ranging from inadequate consultation and resettlement to environmental damage and labor rights. While they cannot directly compel action, their findings often lead to management responses and remedial measures.

Lessons from Accountability Cases

IAM cases have generated important lessons for IFIs and project implementers:

• The importance of meaningful stakeholder engagement throughout the project cycle
• The need for robust environmental and social risk assessment and management
• The value of accessible grievance mechanisms at the project level
• The importance of adaptive management when issues arise

Many IFIs have strengthened their environmental and social policies and implementation practices in response to IAM findings. For example, the World Bank's 2016 Environmental and Social Framework incorporated lessons from Inspection Panel cases.

Knowledge Management and Learning

Capturing and Sharing Lessons

A critical function of project completion and evaluation is knowledge management – capturing and sharing lessons to improve future operations. This involves:

• Documenting lessons in completion reports and evaluations
• Conducting learning events and workshops
• Developing knowledge products (case studies, good practice notes)
• Incorporating lessons into training programs
• Updating operational policies and guidelines

Effective knowledge management requires both systems (databases, knowledge platforms) and culture (incentives for learning, openness to feedback).

Institutional Learning

Beyond project-level learning, IFIs engage in institutional learning through:

• Thematic evaluations that look across multiple projects
• Portfolio reviews that identify patterns and trends
• Research on development effectiveness
• Peer learning with other development institutions

This institutional learning informs strategic decisions, resource allocation, and policy development.

Tools and Templates for Completion and Evaluation

Key tools for the completion and evaluation phase include:

• Implementation Completion Report templates
• Evaluation frameworks and methodologies
• Sustainability assessment checklists
• Lessons learned templates and databases
• Project closure checklists

These tools help ensure a systematic approach to project completion and learning.

Assessment