Evaluation of Japan’s Grant Aid to the Democratic Socialist Republic of Sri Lanka (Economic and Social Development Programme) in FY2017

Chief Evaluator	Dr. INADA Juichi Professor, Department of Economics, Senshu University
Consultant	KPMG AZSA LCC.
Period of the Evaluation Study	October 2021 to March 2022
Field Survey Country	Sri Lanka (online survey)

Background, Objectives, and Scope of the Evaluation

This evaluation was conducted for “Evaluation of Japan’s Grant Aid (Economic and Social Development Programme) for Sri Lanka in JFY2017” (Exchange of Notes (E/N) signed in JFY2017 grant amount: 1 billion JPY) in order to conduct a project-level evaluation and derive recommendations and lessons learned for future ODA planning and implementation from the evaluation results, and to ensure accountability to the public. The main objective of this Project was to strengthen port functions by providing mooring buoys and other equipment manufactured in Japan for port development, thereby contributing to the economic and social development of Sri Lanka and supporting the activities of Japanese companies.

Summary of Evaluation Results

(1) Relevance of the Plan

Strong linkages were found between the Project and key Japanese policies such as the Country Development Cooperation Policy for Sri Lanka, the “Free and Open Indo-Pacific” strategy, and the “Expanded Partnership for Quality Infrastructure Initiative.” The Project was also consistent with key policies in Sri Lanka and development needs, such as the Trincomalee Provincial Master Plan and the National Ports Master Plan. The implementation arrangements for the Project were appropriate, as evidenced by the timely convening of the committee (intergovernmental council) and fair selection of suppliers. The relevant agencies in Sri Lanka, such as the Sri Lanka Ports Authority (SLPA), had the necessary capacity to implement the Project. The planning process of the Project was appropriate, and the work of the related agencies in Japan such as Japan International Cooperation System (JICS) was highly evaluated by related agencies in Sri Lanka and supplier companies.
(Evaluation Result: Highly Satisfactory)

(2) Effectiveness of Results

The port equipment was appropriately provided as planned, and the port functions were improved by enhancing the safety of nighttime navigation and the 24-hour operation system at the Port of Trincomalee. The Government of Sri Lanka is highly satisfied with the procured port equipment. However, the vessel that included in the procured facilities was damaged due to an accident, and the necessary work on generators by SLPA had not been completed due to delays caused by the restrictions to prevent the spread of COVID-19 infection. Therefore, the vessel and one of the two generators were not in use at the time of this evaluation survey. Clear data on the status of achievement has not been obtained in the short-term because time is required for the manifestation of development and diplomatic effects at the outcome level, such as local socioeconomic development and support for Japanese companies, which are the objectives of the Project. The process at each stage was appropriate, and the agencies involved played their roles appropriately. Note that the project monitoring process was affected by the COVID-19 pandemic.
(Evaluation Result: Partially Satisfactory)

* Ratings: Highly Satisfactory; Satisfactory; Partially Satisfactory; Unsatisfactory

Recommendations Based on Evaluation Results

(1) Recommendations for the Project

＞ Early implementation of on-site monitoring by the Embassy of Japan in Sri Lanka

Local monitoring should be conducted as soon as possible. Compliance with infection prevention measures in accordance with local regulations in Sri Lanka with due consideration of the situation of COVID-19 pandemic is a requirement.

＞ Study of strategies to support development around the Port of Trincomalee area

It is difficult to realize the development effects on the local economy through a single project such as port development. To stimulate logistics, attract investment, and lead to economic and social development in the region, a comprehensive approach that combines development of the surrounding infrastructure is necessary. Based on the above, it is recommended that the Government of Japan considers a strategy to support economic development in the area surrounding the Port of Trincomalee to make use of the results of this Project in the future. In considering the strategy, it is desirable to consider collaboration with the “Japan-ASEAN Connectivity Initiative” and other initiatives being promoted by Japan in neighboring countries.

(2) Recommendations and Lessons Learned for the Grant Aid (Economic and Social Development Programme) by MOFA

<Recommendations>
＞ More proactive dissemination of information on projects

It is recommended that information about projects is more actively disseminated to ensure transparency and promote public understanding of ODA.

＞ Clarification of project objectives and the logic model for achieving effectiveness

If the project objectives and the logic model for achieving the effects are unclear at the planning stage, there is a concern that differences of opinion may arise among the relevant parties regarding the objectives redefined after the fact, making it difficult to derive convincing evaluation results. In particular, there are many cases where diplomatic effects are difficult to redefine, and the timing of evaluations may not be appropriate (a longer period of time is needed for the effects to manifest), which may also be controversial. Regarding the above issues, it is recommended that efforts should be made to clarify the objectives and logic when planning the “Grant Aid (Economic and Social Development Programme)” scheme projects, and that the process of consideration is recorded and preserved.

<Lessons Learned>
＞ Grant Aid by MOFA (Economic and Social Development Programme) as a tool to support overseas business development of Japanese companies

The Grant Aid (Economic and Social Development Programme) implemented by MOFA is characterized by its ability to proceed consistently from the preparation of bidding documents to the conclusion of contracts solely through procedures by the procuring agency, which leads to project speed and simplicity. In addition, the fact that performance bonds are not required and that the projects are mainly for Japanese products have been favorably received by Japanese companies. In conclusion, the “Grant Aid (Economic and Social Development Programme)” scheme can be a useful tool to support the overseas business development of Japanese companies. To this end, it is important to strategically consider how to support the overseas business development of Japanese companies through projects, the content of products, and the purpose of the procured equipment.

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