Brazil - Cosipa Steel Expansion Project - Stage Three
Barba Navaretti, Giorgio | Soloaga, Isidro
The outcome of the Karnali Preparation (Phase I) Project for Nepal was satisfactory. The project achieved its specific objectives, its impact has been significant, sustainability is uncertain at this time, and both the Bank and Borrower acted satisfactorily. Several lessons can be learned from this project. First, for a bi-national project, more binding bi-national arrangements, in which both countries borrow and are obligated to IDA, should be considered. Second, the complex institutional, financial, and macroeconomic aspects of the KMP development should have been part of the feasibility study. Third, a contracting philosophy of a client/consultant relationship, as opposed to an owner/contractor relationship, should be adopted for studies where terms of reference and scope may change during contract execution. Fourth, to facilitate good working relationships, the compensation package for counterpart personnel provided to the consultant should not be too different from that of the local labor market from which the consultant may hire local consultants. Lastly, when IDA supports preparation of a bi-national project, arrangements need to be made to insure that IDA has an effective dialogue with both countries.
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