Ex-Post Monitoring of Japanese ODA Loan Projects in FY 2012 Report JUNE 2013 JAPAN INTERNATIONAL COOPERATION AGENCY NAKAMOTO & ASSOCIATES CO.LTD. EV JR 13-09 Preface Ex-post evaluation of ODA projects has been in place since 1975, and since then its coverage has gradually expanded. Japan’s ODA charter revised in 2003 clearly states under the section “Enhancement of Evaluation” that in order to measure, analyze and objectively evaluate the outcome of ODA, third-party evaluations by experts shall be enhanced. Ex-post monitoring is usually conducted seven years after the completion of ODA Loan projects and five years after Ex-post Evaluation if there is any concern in project effectiveness and sustainability based on the results of the ex-post evaluation. The aim of this exercise is to re-verify the project’s effectiveness, impact, and sustainability, to monitor the extent to which recommendations drawn from the ex-post evaluation are being applied, and to obtain recommendations and lessons learned for the future projects to sustain their impact and to improve themselves as a whole. This time, 9 projects in different countries were monitored by external consultants, and this report is a compilation of all the results obtained. Now that this report is completed, we are determined to share the lessons and recommendations drawn with those who are concerned in and out of JICA, and utilize them to improve the management of ODA projects in the future. Finally, I wish to express my sincere appreciation to all the people who kindly cooperated with us to implement this exercise. June 2013 Masato Watanabe Vice President Japan International Cooperation Agency (JICA) Disclaimer This report is an English translation of the original report in Japanese, which is a compilation of the results from Ex-post monitoring in Japanese fiscal year 2012. Monitoring was implemented by external consultants entrusted by JICA, in order to improve the neutrality of the results. The views and recommendations expressed in this report do not necessarily reflect the official view and opinion of JICA. Minor amendments to the original report may be added when it is posted on the official website of JICA. The Japanese version shall prevail in the event of any inconsistency with the English translation. No part of this report may be copied or reprinted without the consent of JICA. Table of Contents Preface Disclaimer Table of Contents Thailand “Regional Development Project (II)” 1. Project Description ................................................................................................................... 1-1 1.1 Project Objective ................................................................................................................. 1-1 1.2 Outline of the Loan Agreement ........................................................................................... 1-1 1.3 Background of Ex-post Monitoring .................................................................................... 1-2 2. Outline of the Monitoring Study ............................................................................................... 1-3 2.1 External Monitoring Consultant .......................................................................................... 1-3 2.2 Duration of Monitoring Study ............................................................................................. 1-3 3. Monitoring Results ................................................................................................................... 1-3 3.1 Effectiveness ....................................................................................................................... 1-3 3.1.1 Quantitative Effects...................................................................................................... 1-3 3.1.1.1 Results from Operation and Effect Indicators ....................................................... 1-3 3.1.1.2 Internal Rates of Return (IRR) .............................................................................. 1-7 3.1.2 Qualitative Effects........................................................................................................ 1-7 3.2 Impact ............................................................................................................................... 1-10 3.2.1 Intended Impacts ........................................................................................................ 1-10 3.2.1.1 Foreign Currency Reserve .................................................................................. 1-10 3.2.1.2 Reduction of Regional Disparities through Employment Creation in Rural Areas ........................................................................................................................................ 1-11 3.2.1.3 Tourism Data of Chiang Rai................................................................................ 1-11 3.2.2 Other Impacts ............................................................................................................. 1-12 3.2.2.1 Improvement in the Lives of Farmers ................................................................. 1-12 3.2.2.2. Contribution to the Development of the Region and the Tourism Industry ....... 1-12 3.3 Sustainability .................................................................................................................... 1-13 3.3.1 Structural Aspects of Operation and Maintenance ..................................................... 1-13 3.3.2 Technical Aspects of Operation and Maintenance ..................................................... 1-13 3.3.3 Financial Aspects of Operation and Maintenance ...................................................... 1-13 3.3.4 Current Status of Operation and Maintenance ........................................................... 1-13 3.4 Others ................................................................................................................................ 1-14 4. Conclusion, Lessons Learned and Recommendations ............................................................ 1-14 4.1 Conclusion ........................................................................................................................ 1-14 4.2 Recommendations ............................................................................................................. 1-15 4.3 Lessons Learned................................................................................................................ 1-15 Comparison of the Original and Actual Scope of the Project ..................................................... 1-16 Philippines "Special Economic Zones Environment Management Project" 1. Project Description ................................................................................................................... 2-1 1.1 Project Objective ................................................................................................................. 2-1 1.2 Outline of the Loan Agreement ........................................................................................... 2-1 1.3 Background of Ex-post Monitoring .................................................................................... 2-2 2. Outline of the Monitoring Study ............................................................................................... 2-2 2.1 Duration of Monitoring Study ............................................................................................. 2-2 3. Monitoring Results ................................................................................................................... 2-3 3.1 Effectiveness ....................................................................................................................... 2-3 3.1.1 Quantitative Effects...................................................................................................... 2-3 3.1.1.1 Results from Operation and Effect Indicators ....................................................... 2-3 3.1.1.2 Results of Calculations of Internal Rates of Return (IRR) .................................... 2-7 3.1.2 Qualitative Effects........................................................................................................ 2-7 3.2 Impact ................................................................................................................................. 2-7 3.2.1 Intended Impacts .......................................................................................................... 2-7 3.2.1.1 Number of locators................................................................................................ 2-7 3.2.1.2 Investments from Locators .................................................................................... 2-8 3.2.1.3 Employment in the ECOZONEs ........................................................................... 2-9 3.2.2. Other Impacts .............................................................................................................. 2-9 3.2.2.1 Social and Environmental Impact ......................................................................... 2-9 3.2.2.2 Land Acquisition, Relocation .............................................................................. 2-10 3.3 Sustainability .................................................................................................................... 2-10 3.3.1 Structural Aspects of Operation and Maintenance ..................................................... 2-10