Project Cycle: Implementation and Follow-up

The main stage in the life of a project is its actual implementation over the period of construction and subsequent operation. Implementation of the project is the responsibility of the beneficiary. The Bank' s role is to follow-up the implementation and procurement processes. Follow-up is primarily concerned with that period in the project’s life when physical components are being constructed, equipment purchased and installed, services rendered and new institutions, programs, and policies put in place.


The main purpose of follow-up is to help ensure that a project achieves its development objectives and, in particular, to work with the beneficiary in identifying and dealing with problems that arise during implementation. Follow-up, therefore, is primarily an exercise in collective problem solving.


Follow-up takes place in a variety of ways. During appraisal, agreement will have been reached on a schedule of progress reports to be submitted by the beneficiary. Based on this, the beneficiary provides progress reports periodically covering the physical execution of the project.


The progress reports are reviewed at the Bank. Problems that surface are dealt with through correspondence or in the course of project follow-up missions undertaken by the Bank staff. The frequency of these missions is tailored to suit the complexity of the project, the status of its implementation, and the number and nature of problems encountered. Missions are also mounted on selective basis to undertake portfolio review exercise in member countries where all approved projects are closely scrutinized and followed up.


Supervision: Supervision by the Bank, as a financing institution, is a continuous set of project activities that start after the Board approval and ends up with the preparation of Project Completion Report. The supervision is carried out both within the Headquarters and with the beneficiary during the Bank's field visits.


In the Headquarters, supervision encompasses such activities as: ensuring timely declaration of effectiveness of the financing agreement, review of Progress Reports received from the executing agency, handling procurement and disbursement, monitoring implementation problems faced by project and taking appropriate action, and preparing Project Completion Report.

The Bank mounts field missions periodically to assess project progress, identify issues and bottlenecks and take corrective action, monitor actual compliance to the Bank's policies and procedures, etc.


Procurement: An important element of project follow-up concerns with procurement of goods and services financed under the project agreement. Procurement is carried out in accordance with IDB guidelines, incorporated in the project agreement that are designed to ensure that the requisite goods and services are procured in the most efficient and economical manner.


Completion: Upon physical completion of the project, the beneficiary submits a Project Completion Report (PCR) to the Bank. Subsequently, the concerned Country Operations Department prepares the Bank’s Project Completion Report. If a part of IDB approved financing remains unutilized at project completion, it is normally cancelled; its utilization will be considered only on exceptional basis, and in any case, strictly for improving the efficiency of the project.