RFQ Attachment J3 Roles and Responsibilities of EA.pdf

Roles and Responsibilities of Economic Analysis Throughout the MCC Compact/Threshold Program Process

Proposal Development Due Diligence Compact Negotiation Implementation Post Implementation

Economic Analysis

• Undertake in-house Growth Diagnostic (CA)

• Facilitate in-country CA exercise

• Provide preliminary feedback during consultative process and proposal development

• Assess program logic and prioritization of components in draft proposal

• Provide initial feedback to the country team (CT) regarding the economic rationale of projects and activities described in the draft proposal, including those elements that appear to present significant risk of generating low or inadequate returns

• Assure that program beneficiaries are identified

• Oversee the planning and conduct of cost-benefit analysis (CBA) of proposed projects, ensuring that technically accurate economic rates of return (ERRs) are calculated for each activity.

• Initial due diligence analysis will be conducted in one of three ways: 1) as part of Integrated Due Diligence (IDD) contracts with the Lead Economist as Project Monitor;

2) by PSCs hired directly and supervised by the Lead Economist; or 3) directly by the Lead Economist.

• In all cases, Lead Economists will work closely with M&E colleagues on CTs, as well as the Economic Analysis team, to ensure quality and consistency across programs.

• Where preliminary due diligence work is conducted by external contractors, Lead Economists will review their reports provided to MCC and revise, as necessary, to produce final assessment.

• Work with MCC sector staff

• Provide input into the drafting of the IM, including explanations of dissenting views, if any.

• Participate in negotiations to explain the economic rationale for CT positions that include redesign or elimination of projects or activities.

• Cooperate with MCC sector staff and MCA counterparts to refine project and activity design consistent with Investment Management Committee recommendations and provide input into the elaboration of any side agreements to the actual Compact.

• Review Implementation Agreements to ensure consistency with Work Plan and that they are economically sound and to verify EA-relevant Conditions Precedent are included.

• Review workplans to confirm that they are consistent with Compact objectives and economic logic.

• Review disbursement requests to confirm that relevant EA-related CPs have been met, funds requested are consistent with the objectives and activities described in the workplans.

• Review M&E plan for consistency with Guidelines for Economic Analysis and longer-term plans to undertake Impact and Performance Evaluation.

• Review proposals to substantially revise or eliminate any activities to

• Lead Economist will update the CBA and generate revised ERR estimates incorporating information available at program closeout.

• Lead Economist will work with M&E colleagues to ensure that Evaluation is conducted either in-house or by external consultants.

• After final evaluation results are available.

Lead Economist will support development of evaluation-based

CBA.

Program Development

Investment Memorandum

Program Signed

Compact Implementation Completed

Validation and Accountability and MCA counterparts to redesign, as necessary and appropriate, to enhance returns to projects.

• Work with M&E colleagues to identify opportunities for Impact Evaluation and to ensure that activity designs adequately reflect the institutional priorities related to this work.

ensure that new plans are consistent with overall objectives of the program logic and are economically justified.

Where substantial revision is proposed, the Lead Economist will revise the CBA to determine the impact of the changes on the economic viability of the new design.

Evaluation Plan

• Identify basis for evaluability of proposal

• Assess program logic.

• Identify/refine program objectives.

• Identify/refine economic impact indicators.

• Agree on methodology for impact and performance evaluation

• Advise on additional indicators if needed.

• Identify implications of any program re-scoping for evaluation design.

• Review completed evaluations and results published by the independent evaluator.

• “Lessons learned” incorporated into future MCC programs.

Monitoring Plan

• Confirm monitoring plan in proposal.

• Identify/refine monitoring indicators.

• Advise on development of monitoring plan.

• Agree upon method and schedule for performance reporting.

• Agree on baselines and targets.

• Agree on how monitoring will be used to make program adjustments,

• Finalize baselines and targets as needed.

• Advise on revisions to the M&E plan.

• Analyze performance.

reporting and implications for the economic performance of investments.