Terms of reference must be adjusted in case of change in policy direction. The change in policy direction under the renewed political leadership resulted in some adjustments of priorities on the activities and outputs under the project. However, the terms of reference of the concerned TA grant (component 1) were not adjusted accordingly. By formally adjusting the terms of reference, the consulting team may have caught up in a better manner with the clients’ changing needs, and perhaps clarified some of the issues causing the subsequent pretermination. This experience suggests the importance of a basic rule—any adjustment in scope of activities and outputs during the course of project implementation should be reflected in the terms of reference as early as possible.
Restructuring of Specialized Financial Institutions