Kenya - Parastatal Reform Technical Assistance Project
Besley, Timothy | Powell, Andrew
The project outcome is unsatisfactory, sustainability is unlikely, and institutional development impacts are negligible. Overall, the bank performance is rated unsatisfactory, because, despite completion of narrowly defined project outputs, it failed to achieve the complex privatization program as prescribed by strategic infrastructure parastatals. Likewise, failure to implement the parastatal reform program in the context of the Enhanced Structural Adjustment Facility, and the Structural Adjustment Credit Project, rates the borrower's performance as unsatisfactory. Lessons address: 1) The Parastatal Reform and Privatization Program illustrates the value of project quality at entry, where in fact, had key activities been undertaken as prescribed, such as a participatory approach, the foundation for project success could have been laid. 2) The absence of political commitment, hampered efforts to build consensus for reform, and privatization, but the focus should have shifted instead, to building consensus among stakeholders, and interest groups to prod privatization. Additionally, the absence of institutional capacity aggravated the potential infrastructure sector privatization. 3) Effective communication, dialogue, and consensus building, should be driven by the pace dictated, and owned by the Government, not by conditionality. 4) Infrastructure privatization, requires a transparent process, reflecting an expanded number of citizens benefiting from it; a more solid safety net; and, realistic expectations.
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