The project monitoring system in Pakistan: an evaluation.
Sahibzada, Shamim A. ; Mahmood, Mir Annice
The primary function of this paper is to analyse and assess the
functioning of the monitoring and ongoing evaluation system during
project implementation in Pakistan. In other words, it is the appraisal
of the effectiveness of the system which is aimed at. However, it should
be mentioned here that the system of monitoring and ongoing evaluation
which is examined in the paper is related to projects in the agriculture
and rural development fields. This is because of lack of data in other
areas.
Initially we shall examine some of the terminological concepts in
monitoring and evaluation. This is followed by a description of the
system as it exists in Pakistan at the national, provincial and project
levels. The system's functioning at the project level is
illustrated briefly with a number of case studies. The paper concludes
with suggestions for policy-makers to improve the operational
effectiveness of the monitoring system in Pakistan.
DEFINITION OF MONITORING AND (ONGOING) EVALUATION
Monitoring can be defined as "a process of measuring,
recording, collecting, processing and communicating information to
assist project management decision making" [4, p. 2]. "Ongoing
evaluation is the analysis, by project management, of monitored
information on a continuing basis, with a view to enabling it where
necessary to adjust or redefine policies, objectives, institutional
arrangements and resources affecting the project during
implementation" [4, p.3]. Monitoring as seen by the World Bank
"assesses whether project inputs are being delivered, are being
used as intended and are having the initial effects as planned.
Monitoring is an internal project activity, an essential part of good
management practice and therefore an integral part of day-to-day
management" [12, p.4].
Guido Deboeck states that "monitoring can be defined as the
timely gathering of information on project inputs, outputs and
complementary activities that are critical to the attainment of the
objectives of the project. It utilizes baseline information collected
during the design and preparation phase, and continues throughout the
project's life-time when it compares actual inputs and outputs and
activities with the expected or planned levels. It alerts project
management and policy-makers to potential implementation problems
requiring corrective action. It my also provide the necessary
information for the instigation and preparation of ongoing
evaluation" [3, p.2].
Monitoring and ongoing evaluation are interlinked. The latter
refers to the process whereby project management continually examines
the data flowing from a project's inputs and outputs making
necessary adjustments to meet any deviations from the planned schedule.
Concurrent evaluation is another term which can be used interchangeably
with ongoing evaluation. Impact evaluation, or ex-post evaluation (which
is not included in the scope of this paper) refers to the effects of the
project after completion, that is after a time lapse of one to five
years. Some other terms used in project monitoring--for example, inputs
and outputs, effects and impact--are discussed below.
PROJECT MONITORING TERMINOLOGY
As projects involve the use of inputs, in monetary and non-monetary
forms, to generate output, these have an effect and an impact on the
target group. A monitoring system therefore keeps a record of project
inputs, outputs, effects and impact on project beneficiaries [11]. These
four objectives of a project are briefly described below.
Project inputs, which are the immediate object of a monitoring
system, can be differentiated into three categories: (i) physical
facilities, e.g. a health unit or an irrigation system; (ii) advice to
project beneficiaries; and (iii) supply of goods and services, such as
seed, fertilizer, and credit. The various types of inputs provided by a
project give rise to output by those who benefit from the project. Such
benefits, for example, are increased yields of crops due to greater
availability of fertilizer, or increased school attendance or a more
extensive use of health facilities, if a health unit has been provided,
and so on.
Once outputs have been generated from a project, their effect on
the target group can be seen in such form as, for example, increased
crop production as a consequence of greater availability of fertilizer,
an improvement in general health conditions as a result of the provision
of basic health facilities, and so on. Not all project effects emerge in
a short time. Some effects take longer to emerge because of the poor
state of education of the target group and the low level of the
peoples' awareness. Also, cultural factors may inhibit the adoption
of new techniques and new ideas.
Project impact is the fourth concern of a monitoring system. The
effects generated by project activities have an impact on the target
population. Higher incomes may give rise to greater employment
opportunities. Better health and education facilities lead to an
improvement in the quality of life through improved nutrition, higher
literacy rates, wider participation in community life, etc. Therefore,
it can be seen that impact is a project's longer-term development
objective as distinct from inputs and outputs which are of immediate
concern.
It can be seen, therefore, that a monitoring and ongoing evaluation
system has two major objectives. The first relates to the physical and
financial progress of projects, indicating the degree of physical work
completed and the amount of finances disbursed. The second relates to
inputs and their utilization by those who benefit from the project.
Thus, through a constant monitoring of inputs and outputs, it is
possible to compare the actual position with the expected one.
For effective monitoring, however, there are three basic
prerequisites [13]. The first is the responsiveness of management to the
various flows of information from the field. The manager has to be
competent to analyse the data and to take corrective action where
necessary. The second prerequisite is a technical one which involves
data collection, data processing, data analysis, and presentation of the
results. Time is of importance here if the project manager is to take
the requisite action to meet shortcomings in the implementation
schedule. The third prerequisite is institutional and administrative
arrangements within the country without which its effectiveness would be
blunted.
MONITORING ARRANGEMENTS AND TECHNIQUES IN PAKISTAN
At the National Level
In this section we examine arrangements and techniques for project
monitoring and evaluation at the national level. The second part of this
section reviews the monitoring system at the provincial level, followed
by a discussion of monitoring techniques and arrangements at the project
level as adopted and established by autonomous organizations such as the
Water and Power Development Authority (WAPDA), the Agricultural
Development Bank of Pakistan (ADBP), etc., for their projects.
There is an Implementation and Progress Section in the Planning and
Development Division. This section was created in the Project Wing in
1966 but has been in active operation since 1978, though with very
inadequate staff. Two techniques are adopted for progress monitoring by
this section. The first includes the filling up of special forms by the
Project Directors. The data on these forms include the degree of
progress in physical and financial terms, the difficulties being faced
at the implementation stage and any deviations from the original plan
along with any changes in the costing of the changed plans. These forms
are known as PM-I, PM-II, and PM-III.
The second technique of progress monitoring is that of on-site
visits by the relevant officials. Their reports are then circulated to
various ministries and departments. The section also prepares special
review reports for major development projects and in the last five years
approximately 160 projects have been the subject of such reports. This
is an annual average of 32. [2]. This small coverage is stated to have
been due to the shortage of trained staff in the section [2]. Also,
quarterly summaries of the rate of progress of various projects are
presented in the meetings of the Executive Committee of the National
Economic Council (ECNEC) along with the problem areas that have been
identified. Directives are issued by ECNEC to the executing Ministries
and Divisions to take remedial action, where necessary.
At the Provincial Level
At the provincial level, the Planning and Development Department of
the Government of Baluchistan is in the process of developing an
effective project monitoring system. The system is expected to operate
for all sectors of the provincial economy: the industrial, agricultural,
power and social sectors. Currently, monitoring work is primarily
carried out by filling out the relevent forms every quarter or on a
half-yearly basis.
The forms are of the standard type, indicating name of the project,
the executing agency, the area to be served by the project, total cost,
the year of commencement, annual financial phasing, benefits of the
scheme, physical targets of the scheme, i.e. what has to be accomplished
in physical terms (e.g. number of houses built or of canals constructed,
or of health centres established, etc.), the expenditure actually
incurred and the physical targets actually achieved. In some instances
the expected date of completion is also mentioned. An important feature
of these forms is that they also identify bottlenecks, if any, during
implementation. For example, a scheme may be particularly well planned
but when it comes to be executed, it is discovered that the relevant and
qualified manpower is not available. Consequently, the scheme fails.
Apart from reporting, concerned officials often undertake
unscheduled visits to inspect the pace of the development work. The data
collected on the official forms relate to the physical and financial
aspects of the project: how much work has been completed in physical
terms (usually expressed in percentages) and how much money has been
utilized in the project. For federally funded projects a similar system
is also functioning with a Federal Inspector-General (only in
Baluchistan) whose sole duty is to monitor the pace of development work
of the federal projects, usually through on-site inspections which are
followed by a written report.
The other three provinces also have arrangements for monitoring the
progress of projects. In the Punjab there is a progress-monitoring
section which has been functioning since 1974-75. The section is located
in the Planning and Development Department. The responsibility of this
section is to undertake monthly, quarterly, half-yearly and annual
reviews of all the projects which are being executed within the
framework of the Annual Development Programme (ADP). Regular monthly
review meetings take place with the various administrative departments
so that bottlenecks, if any, are identified and corrective action is
taken [5].
In Sind also an institution has been in existence for monitoring
progress since 1974-75. The Provincial Planning and Development
Department is responsible for holding review meetings on a half-yearly
basis whereas the Administrative Departments hold such meetings on a
quarterly basis. These quarterly, half-yearly, and annual reviews are
concerned mainly with the financial and physical progress of projects.
However, there is no monitoring of each and every project as the staff
that would be required for such purposes is not available [5].
In the NWFP, progress monitoring of projects in different sectors
is done on a quarterly basis, where officials such as the Divisional
Commissioner and Assistant Commissioner are required to monitor the
progress of the development work. Their reports are submitted to the
Planning and Development Department of the Provincial Government. In
addition, officers of that department also visit important selected
projects to review the pace of the development work [5].
Other forms of monitoring include the filling up of quarterly
reports, spot inspections of selected projects by officers of the
Planning and Development Department and visits of Inspection Teams, e.g.
the Governor's Inspection Team, the Departmental Inspection Team,
etc. There are also District Technical Review Committees which are
headed by the respective Deputy Commissioners and whose responsibility
it is to review the progress of projects in the Annual Development
Programme [7]. Finally, there are review meetings held in the Planning
and Development Department which consider the monthly review reports
sent by the various administrative departments. Of particular importance
is the mid-year review of all the projects included in the Annual
Development Programme.
At the Project Level
At this level, monitoring arrangements exist only for foreign-aided
projects. One such project is that of On-Farm Water Management, the
monitoring arrangements for which are being made by the Water and Power
Development Authority (WAPDA) whereas the sponsoring agency is the
Ministry of Food, Agriculture and Cooperatives, Government of Pakistan.
The project like other WAPDA projects has a very effective monitoring
system.
The assignment to monitor and evaluate the project was given by the
Ministry of Food, Agriculture and Cooperatives to WAPDA's
Monitoring and Evaluation Directorate which has the relevant experience
in this field. The Chief Engineer, Survey and Research Organization,
Planning Division, WAPDA, has the overall administrative control of the
project. The project itself is headed by a project director who
supervises all the activities of the project. Three deputy directors
also assist him at his headquarters. These deputy directors are
specialists in the field of agricultural economics, agricultural
engineering and statistics. Initially, two regional offices were
established. These were located at Faisalabad and Hyderabad. A third
regional office has just been established at Multan. The offices are
headed by a Senior Research Officer. The area under the Faisalabad
regional office covers the sample water courses which are situated in
the NWFP and the Punjab whereas the Hyderabad office covers the sample
sites which are located in the provinces of Sind and Baluchistan [8].
The project has been monitored through three stages; the
pre-improvement stage, the ongoing stage and the post-improvement stage
[8;9;10]. Data have been collected for all the three stages through
administered questionnaire interviews and the recording of actual
observations by officers in the field. Strict quality control of the
data is ensured at the time of their collection. This is done by the
Senior Research Officer in charge of the regional office who carries out
field checks in areas under his jurisdiction. If there are any
divergences or misunderstandings, the officer is expected to clear them
up with his subordinates. Deputy Directors at the Head Office also
undertake field trips and the Project Director also visits field areas
to monitor the work and resolve any technical and administrative
problems.
The second case study is the Fourth Agricultural Development Bank
Project in Pakistan which is being monitored and evaluated by a
Monitoring and Evaluation Cell of the Agricultural Development Bank of
Pakistan (ADBP) [1]. This cell has been established because foreign
agencies, such as the World Bank and International Fund for Agricultural
Development, insist that the loans they give be monitored. In a way this
ensures that credit is spent for the purpose it was given for. Also, the
data received from monitoring the utilization of the loan helps in the
efficient management of the projects. The monitoring cell is situated at
the headquarters of the ADBP which is in Islamabad. Apart from baseline
surveys which the cell conducts a system of regular reporting has also
been instituted. Quarterly reports of physical and financial
implementation are submitted to the relevant officials. The quarterly
reports show Lending Operations, Recoveries, Status of Loan
Applications, and Disbursements of IDA and IFAD Loans. The members of
the cell will also conduct spot checks by visiting branches/regional
offices.
Programme Monitoring and Evaluation Systems exist for Integrated
Rural Development Projects. Daudzai, the third case study, is one such
project run by the Pakistan Academy for Rural Development, Peshawar.
Monitoring and evaluation of the activities of this integrated rural
development project are done at the Academy, the markaz (project) level,
and the village levels [6].
At the Academy level, where the Director is the administrative
head, monitoring, which basically involves a comparison of project
achievements with project targets, is carried out through regularly held
monthly meetings, a system of quarterly reporting, annual reviews and
monthly training conferences [6].
At the markaz (project) level also, similar monthly and annual
meetings are held to review the progress of various activities, identify
problems and provide guidelines for future course of action. At this
level, extension education training sessions are also held, the major
aim being to bring rural people into contact with extension workers [6].
At the village level, elders and other responsible workers meet
regularly to discuss the implementation of production plans and
development schemes [6].
CONCLUSIONS AND POLICY RECOMMENDATIONS
It will be premature to make general recommendations on
Pakistan's project-monitoring system, especially in the agriculture
and rural development sector, since experience is still limited, and to
generalize from the three case studies used in this paper will be
further disturbing because all the three are pilot projects and
foreign-funded, and thus have reasonably effective monitoring systems.
However, our examination of the arrangements for project-monitoring
systems at the federal, provincial and project levels enables us to
reach a few conclusions and to make certain recommendations.
At the national level, the prominent shortcomings are as under:-
1. Some special review-reports for major development projects have
been undertaken by the Implementation and Progress Section of the
Planning and Development Division, but owing to very insufficient staff
with the Section, a comprehensive coverage has not been possible.
2. The Project Monitoring Forms are biased towards financial
monitoring and there is no standard criterion to be used for measuring
physical progress, which is done in percentage term and can be
misleading. No scheduling and controlling techniques like Programme
Evaluation Review Techniques, Critical Path Method, and Bar Charts are
used on a systematic basis while planning for implementation. This can
be seen from the PM-I form which makes only an enquiry under Section 23
about the use of such techniques but does not make it a compulsory
requirement.
At the provincial level, the arrangements are also extremely
deficient. The weak points are as follows:
1. The provincial Planning and Development Departments lack trained
staff for monitoring.
2. Monitoring arrangements for individual projects at the
provincial level (as done by the Implementation and Progress Section of
the Planning and Development Division) exist in theory but in actual
practice these are almost non-existent.
3. At best, reviews are prepared on monthly, quarterly,
half-yearly, or an annual basis. These reviews generally contain
information by sectors which is collected from periodic review-reports
or through monthly or quarterly review-meetings generally held at the
provincial headquarters but without any visit to the project
areas/sites.
4. The provincial governments (the NWFP for example) have assigned
the task of monitoring the implementation of development projects to
civil servants who lack the necessary expertise for monitoring and
evaluation functions in a satisfactory manner.
At the project level, monitoring and evaluation systems exist for
the implementation of foreign-aided development projects. Monitoring and
evaluation cells/sections for such projects have been set up under
pressures from International Financing Agencies. The system being
adopted in the case-study projects mentioned above and discussed in this
paper reflect such pressures.
We have also discussed very briefly the prerequisites of an
effective monitoring system at the project level, but the Pakistani
experience shows that this newly developed system of input and output
monitoring is not being followed closely except in a few cases.
Whatever monitoring and evaluation (M&E) arrangements exist at
the project level, these were constrained by late establishment which
consequently affected the operation of M&E cells/units. They should
have been considered at an earlier stage in the project cycle. A delay
in establishing such units has been due to the lack of funds with
Project Management for recruiting and training appropriate staff for the
job.
There are institutional and financial constraints, too.
Institutional constraints are reflected in the shortage of qualified
staff to operate a monitoring and evaluation system. However, this does
not hold true for all organizations. For example, WAPDA stated that
their major problem was financial rather than of shortage of trained
staff.
Four major recommendations can be made:
1. Since the organizational and institutional arrangements for many
projects are very weak because they are considered very late in the
project cycle, attention should be paid to assessing various
organizational and institutional alternatives for project implementation
at the appraisal stage.
2. It is observed that project monitoring and evaluation in
Pakistan are carried out through a multiplicity of monthly, quarterly,
half-yearly and annual reports which produce information in excess of
requirements. This results in an unnecessary wastage of time, energy,
and money in sorting out the relevant data for decision making. This is
a design defect in the monitoring and evaluation system. Therefore,
attention should be paid to this problem at the appraisal stage by
limiting the number of reports and making them more objective in terms
of input-and-output monitoring. The frequency of monitoring should also
be decided at this time and a balance should be maintained between too
many and two few reports, and the time interval between reports should
be of reasonable duration.
3. Generally, no regular financial provisions are made in project
budgets for monitoring and evaluation. It is recommended that a certain
percentage of project costs should be allocated for this purpose,
because experience in other countries shows that investment in
monitoring and evaluation has proved to be highly profitable in terms of
improved project performance.
4. Finally, the system can not be effectively operated if the
requisite staff is not in position at the commencement of project
implementation. Given the complexities of agricultural and rural
development projects, there is need for a multidisciplinary team in the
M&D cells/sections. Furthermore, it is essential that field staff be
conversant with the latest techniques involved in the collection,
processing and analysis of data. This requires training of personnel in
the field of data handling.
Last but not the least, for effective monitoring, the project
manager should be a highly competent person with sufficient authority
and power to take timely action on the basis of the monitored data.
Comments on "The Project Monitoring System in Pakistan: An
Evaluation"
I must compliment the authors on dealing with a relatively
unresearched field in an imaginative manner. Despite the many obvious
advantages of an effective monitoring system, the most interesting
result of the paper that I found was that the monitoring system is
almost non-existent at the Federal and Provincial levels, while at the
project level it exists only for foreign-aided projects, probably under
pressures from the donor agencies.
To begin with, it should be fruitful to identify the factors that
may explain why effective monitoring systems have not become an integral
part of development administration in Pakistan. Insufficient
understanding by the policy-makers of the usefulness of monitoring as a
management tool may partly explain their reluctance to build monitoring
components into any development project. The policy-makers may resist
the introduction because of the fears that the weaknesses of the
programmes pointed out during monitoring and ongoing evaluation may have
adverse implications for their professional careers which are probably a
direct function of smooth running of the administrative machine under
their command. Some programme managers oppose monitoring and evaluation
as they fear that the weaknesses of the programmes highlighted by the
monitoring exercise may provide gun power to the critics to effectively
shoot down the programmes that they do not like. Effective monitoring
and evaluation systems are very costly. In developing countries, where
there is scarcity of technical skills and financial resources, whenever
the choice is between allocating scarce resources between monitoring
systems for development projects and programmes and new development
projects, the choice is often made to fund the additional projects.
Another reason for the lack, or rather slow development, of the
effective monitoring system stems from the fact that each new system has
to replace some existing set-up. Monitoring in Pakistan at present is
being done in an informal manner through personal discussions, meetings
at different levels, direct observation and evaluation of programme
results obtained through informal channels of communication. Some
resistance in replacing the existing informal monitoring system with
formal, scientifically designed monitoring system is but natural. A
twofold strategy may be helpful in overcoming this conflict. Studies
should be carried out on the benefits gained from effective monitoring
systems leading to appropriate management action. The costs of
monitoring systems appear to be prohibitive while the benefits of such
systems are not easily seen in an improved implementation of the
development projects. The calculation of cost-benefit ratios for the
monitoring system should provide useful pieces of information. The
formal monitoring system may be introduced in stages; for some time,
both the old informal system and the new monitoring system should run
concurrently. The old system may be phased out when clear-cut, positive
results emerge from the new monitoring set-up. The important point to
note in this regard is that the superiority of the new system should be
proved to the policy-makers, programme managers and the representatives
of the intended beneficiaries of development projects and programmes. A
consensus among the three actors should help in the installation of an
effective monitoring system.
The decision to put in place a formal monitoring system presumes an
agreement on the most suitable form of the organizational structure. The
authors have not discussed this aspect, presumably because it is a vast
area of study by itself. A number of pertinent questions, however, need
to be raised and answered before some decision on the appropriate form
of the monitoring set-up is taken. Should the monitoring set-up be an
independent one or should it be a part of the project organization?
Should the monitoring and evaluation set-ups be merged into one agency
or should they be kept separate from each other and entrusted to two
agencies? Should the monitoring set-up be centralized or decentralized to a project organization level? All these questions need a detailed
empirical examination in the context of Pakistan before actual choices
are made. Brief comments on each of the issues are given only to show
the complex nature of the choices and pertinent considerations.
The creation of a separate organization for monitoring and ongoing
evaluation may be justified as the staff implementing a project or a
programme may hide the shortcomings and inflate the achievements of the
programme being implemented by them. The programme staff, on the other
hand, have abundant and easy access to data concerning both inputs and
outputs of the programme and may be reluctant to pass on this
information to another organization. This problem may be tackled if the
separate organization is placed under the control of the head of the
department implementing a project or a programme.
The issue concerning the relationship between the monitoring and
evaluation agencies also needs a careful balancing of pros and cons of
entrusting these functions to one agency or to two different agencies.
Monitoring and ongoing evaluation overlap considerably. The information
from monitoring exercise could easily be used by an evaluator when both
functions are combined in one organization. On the other hand, combining
the two agencies may mean some compromises regarding sound and impartial judgement of the evaluation staff.
The issue relating to the level at which monitoring needs to be
carried out is also a complex one as a decision is required whether
monitoring should be specific to each project or to major development
programmes. Furthermore, it needs to be decided at what levels of
implementation the monitoring set-ups need to be established.
Project-specific monitoring can bring out specific difficulties
requiring a corrective action on the part of the management. However,
monitoring each and every project may be very expensive. Should we
monitor all major projects and some selected small projects?
Programme-level monitoring has its own uses but many require a large
organization with usual defects associated with large bureaucracies.
Moreover, a monitoring set-up needs to be established at each level of
implementation. Each level has to have information which may enable it
to take corrective action within its own area of competence. In the case
of Pakistan, it means that effective monitoring set-ups should be
established at the federal, provincial and local levels.
An identification of the factors inhibiting the use of an effective
monitoring system and the specification of the organizational
requirements for the monitoring set-up are useful pieces of information.
Equally important issues are the identification of programme objectives,
choice of critical variables requiring monitoring, and establishment of
an appropriate reporting system. Programme objectives in official
documents are often vague and do not clearly bring out the relationship
between activities and goals. An agreement on the goals and the logical
relationship these goals have with activities needs to be .ascertained through a careful scrutiny of all the project documents and a discussion
with the concerned policy-makers. Various techniques, like project
performance network chart, programme evaluation review techniques and
critical path method, have been in use for a long time and have aided in
the identification of the information needs for effective monitoring.
For local-level projects, in which rural folks are involved, such
techniques need to be somewhat amended. The problems in the application
of such techniques to different projects and programmes in the context
of Pakistan can only be identified after practical experience. It is my
impression that such tools in Pakistan have been taught in project
planning training courses but have not been widely used in practice. The
authors confirm this when they say that the project documents do not
contain the requisite information to enable a Project Manager to monitor
the project.
The general conclusion that I reach is that the limitations of our
knowledge in the area of project monitoring in Pakistan are immense. The
fact that recommendations to install effective monitoring systems have
been consistently ignored by intelligent and well-intentioned government
officials confirms that there is far more ignorance than ill-will behind
the undesirable policy actually chosen. There is thus an urgent need for
more research in this area. Since development projects cannot, and
should not, be frozen, general conclusions, even if they are only
interim ones, have immense usefulness. From this point of view, the
authors have done an immense service in drawing obvious but pertinent
policy conclusions.
Sarfraz K. Qureshi
Chief of Research (Economics), Pakistan Institute of Development
Economics, Islamabad
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SHAMIM A. SAHIBZADA and MIR ANNICE MAHMOOD *
* Respectively Chief, Project Evaluation Section, and Research
Economist, Pakistan Institute of Development Economics, Islamabad
(Pakistan).