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this type of initiative could best be managed by financial intermediaryinstitutions(see section 4. 1). This
was not a major restructuringsince the funds could be easily allocatedto other FID programs through a
demand-drivenprocess.
3.5 Quality at Entry.
The rapid implementationand disbursementof FID II from effectivenessis an indicationof its readiness
and quality at entry (27% of credit disbursed in first year). Under the SECALINEProject, FID had an
ongoing successfulprogram in two provincesprior to the initiationof the FID II Project. By the time of its
completion in 1998,the FID componentof the SECALINEProject had implemented348 infrastructure
sub-projects,36 income generating activitiesand 10 training sub-projects. The SECALINEproject
therefore provided a foundation for program expansion under FID II.
FID is a non-profit organizationoperating under a Convention between FID and the Governmentand a
Manual of Procedurescovering lending criteria,model agreementsand contracts,procurement procedures,
financial managementprocedures,and administrativeprocedures. Broad participationin FID management
and membershipinvolved interestedparties at all levels. The Board of Directors includedone
representativeof the Prime Minister (President of the Board), the donor community,NGOs, civic
organizationsand two electedby members. Members compriseda broad spectrumof government,NGO,
private sector and communitygroups. There were also regional advisorycommittees. The Project
Agreement stipulatedthat FID would revise the Manual of Proceduresnot later than June 30, 1996 based
on the results of the studies listedabove (section 3.3). In the end, three separate manuals were produced.
The issue of previous poor quality rural road works was identifiedand later addressed in the revisions of
proceduresmanuals and through improvedtraining of engineeringfrms and contractors.
As a demand driven project, FID I did not have fixed implementationtargets, but indicativeprogram
monitoringindicatorswere agreed to (see Annex 1). A set of agreementsand operating procedureswas
put in place to ensurethat this programmaticapproach would function smoothly. Regional Directorswere
given the authorityto approve sub-projectsrequiring less than US$5,000 from FID, the FID Executive
Director could approve projects requiring less than US$25,000, and larger sub-projectshad to be approved
by FID's Board of Directors. IDA's approval was required for project grants in excess of $50,000
(US$100,000for rural roads). It was agreed that annual work programs and budgets would be prepared
for reviewwith IDA and that annual technicalaudits would be carried out. The articlesof agreement,
By-laws and Manual of Proceduresof FID, and the frameworkagreementbetween the Governmentand
FID were required to remain acceptableto IDA. The Executive Director,Deputy ExecutiveDirector, and
RegionalDirectors of FID, were at all times to have qualificationsand experience acceptable to IDA.
The FID II project design incorporatedsuccessfulfeatures of the SECALINEProject, including: (a)
involvementof beneficiariesat all stages; (b) regionallaunch workshops involvingall stakeholders;(c) a
decisive Director Generalwho recruitedcompetentstaff and let them work independentlywhile monitoring
performance in relation to agreed outcomes; and (d) the organizationof FID along private sector lines,
staffedwith competentmanagers. Additionallessonsof the SECALINEProject which were taken into
account in designingFID II included:
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Projects executed outsideof traditional govemmentstructurestend to be more efficient and flexible
in getting quick results in the field and servingthe communities;relianceon NGOs and community
groups contributes to success.
Communitiesshould participate in projectdesign and implementation.
The delegated contract managementsystem for the constructionor rehabilitation of infrastructure
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