The need to take immediate action to scale down project costs, and/or cancel part of the corresponding loan, when it becomes apparent that the government is unable or unwilling to put up the necessary counterpart funds. While it is important to correctly and objectively assess implementation constraints and implementation capacity, countries with serious development needs and weak institutional capacity should be assisted with building up this capacity as part of project design. This refers to short-term project implementation capacity as well as to longer-term program administration capacity. The project starting date should be set after start-up TA has been successfully completed, and countries with weak institutional capacity should be given time to comply with the covenants and requirements for loan effectiveness through a mentoring process that the start-up TA should provide.
Reproductive Health Project [Loan 1900(SF)-PAK]