AZERBAIJAN Internally Displaced Persons Economic Development Project Report No. 128682 JULY 24, 2018 © 2018 International Bank for Reconstruction This work is a product of the staff of The World RIGHTS AND PERMISSIONS and Development / The World Bank Bank with external contributions. The findings, The material in this work is subject to copyright. 1818 H Street NW interpretations, and conclusions expressed in Because The World Bank encourages Washington DC 20433 this work do not necessarily reflect the views of dissemination of its knowledge, this work may be Telephone: 202-473-1000 The World Bank, its Board of Executive reproduced, in whole or in part, for Internet: www.worldbank.org Directors, or the governments they represent. noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: The World Bank does not guarantee the World Bank. 2018. Azerbaijan— Internally accuracy of the data included in this work. 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Report No.: 128682 PROJECT PERFORMANCE ASSESSMENT REPORT REPUBLIC OF AZERBAIJAN INTERNALLY DISPLACED PERSONS ECONOMIC DEVELOPMENT PROJECT (30874-AZ) July 24, 2018 Financial, Private Sector, and Sustainable Development Independent Evaluation Group ii Currency Equivalents (annual average) Currency Unit = Manat US$1.00 = Manat 0.785300 Abbreviations and Acronyms ARRA Azerbaijan Agency for Rehabilitation and Reconciliation AzRIP Azerbaijan Rural Infrastructure Development Project CAS Country Assistance Strategy CPS Country Partnership Strategy ICR Implementation, Completion, and Results ICRR Implementation, Completion, and Results Review IDA International Development Association IDP internally displaced person IDP-EDS Internally Displaced Persons Economic Development Support Project IDP-LSLP IDP Living Standards and Livelihoods Project JSDF Japanese Social Development Fund PAD Project Appraisal Document PLI Partner Lending Institution PDO Project Development Objective PRP Pilot Reconstruction Project SFDI Social Fund for Development of IDPs UNDP United Nations Development Programme UNHCR United Nations High Commissioner for Refugees USAID United States Agency for International Development Director-General, Independent Evaluation : Ms. Caroline Heider Director, IEG Financial, Private Sector Sustainable Development : Mr. José Carbajo Martínez Manager, IEG Sustainable Development : Midori Makino Task Manager : Susan Caceres iii Contents Principal Ratings ....................................................................................................................... v Key Staff Responsible ............................................................................................................... v Preface ..................................................................................................................................... vii Summary ................................................................................................................................ viii 1. Background and Context....................................................................................................... 1 2. Objective, Design, and their Relevance ................................................................................ 4 Objective ............................................................................................................................... 4 Relevance of Objective ......................................................................................................... 5 Relevance of Design ............................................................................................................. 7 3. Implementation ..................................................................................................................... 9 Planned versus Actual Expenditure, by Component ........................................................... 10 4. Achievement of the Objectives ........................................................................................... 11 5. Efficiency ............................................................................................................................ 15 6. Ratings ................................................................................................................................ 16 Outcome .............................................................................................................................. 16 Risk to Development Outcome ........................................................................................... 17 World Bank Performance ................................................................................................... 18 Borrower Performance ........................................................................................................ 20 Monitoring and Evaluation ................................................................................................. 21 7. Lessons ................................................................................................................................ 22 Bibliography ........................................................................................................................... 23 Tables Table 1.1. World Bank Group IDP Projects in Azerbaijan ................................................. 3 Table 3.1. Planned versus Actual Expenditures (by component) ..................................... 10 Table 4.1. Project Results under IDP-EDS (2006-8) and Additional Financing (2008-11)13 Appendixes Appendix A. Basic Data Sheet ................................................................................................ 26 This report was prepared by Hjalte Sederlof (Consultant), who assessed the project in January to February 2018. The Consultant was supervised by Susan Caceres (TTL). The report was peer reviewed by Caroline Mascarell and panel reviewed by Christopher Nelson. Richard Kraus provided administrative support. iv Appendix B. List of Persons Met during IEG Mission ........................................................... 29 Appendix C. Field Work Methodology, Field Questions, and Selected Site Visits ............... 30 Appendix D. Borrower Comments ......................................................................................... 36 v Principal Ratings ICR* ICR Review* PPAR Outcome Satisfactory Moderately Satisfactory Moderately Satisfactory Risk to Low or Negligible Moderate Low Development Outcome World Bank Satisfactory Moderately Satisfactory Moderately Satisfactory Performance Borrower Satisfactory Moderately Satisfactory Moderately Satisfactory Performance * The Implementation Completion and Results (ICR) report is a self-evaluation by the responsible World Bank department. The ICR Review is an intermediate Independent Evaluation Group product that seeks to independently verify the findings of the ICR. Key Staff Responsible Project Task Manager/Leader Practice Director Country Director Appraisal Ellen Hamilton Sumter Lee Travers D-M Dowsett-Coirolo Completion Joanna Peace De Berry Carolyn Turk Asad Alam vi IEG Mission: Improving World Bank Group development results through excellence in independent evaluation. About this Report The Independent Evaluation Group (IEG) assesses the programs and activities of the World Bank for two purposes: first, to ensure the integrity of the World Bank’s self-evaluation process and to verify that the World Bank’s work is producing the expected results, and second, to help develop improved directions, policies, and procedures through the dissemination of lessons drawn from experience. As part of this work, IEG annually assesses 20-25 percent of the World Bank’s lending operations through field work. In selecting operations for assessment, preference is given to those that are innovative, large, or complex; those that are relevant to upcoming studies or country evaluations; those for which Executive Directors or World Bank management have requested assessments; and those that are likely to generate important lessons. To prepare a Project Performance Assessment Report (PPAR), IEG staff examine project files and other documents, visit the borrowing country to discuss the operation with the government, and other in-country stakeholders, and interview World Bank staff and other donor agency staff both at headquarters and in local offices as appropriate. Each PPAR is subject to internal IEG peer review, Panel review, and management approval. Once cleared internally, the PPAR is commented on by the responsible World Bank department. The PPAR is also sent to the borrower for review. IEG incorporates both World Bank and borrower comments as appropriate, and the borrowers' comments are attached to the document that is sent to the World Bank's Board of Executive Directors. After an assessment report has been sent to the Board, it is disclosed to the public. About the IEG Rating System for Public