Implementation
1. Experienced management: A capable, experienced project management team, which is held to arms-length accountability and well incentivated, is critical for effective project implementation.
2. Lenders' supervisor: Lenders' supervisors combined with close supervision by IFC staff, can play a critical role in project implementation, via verifying costs and resolving conflicts.
3. Agency lines: The implementation work associated with agency lines is significant. Secondment of IFC staff or technical assistance is often required, at least during the project's initial period. IFC should consider its ability to provide staff and other necessary resources.
4. Land acquisition: Implementation schedules should be conservative when land acquisition is involved, particularly if the projects are pioneers in the region.
5. Sponsor experience: IFC should carefully assess the nature of the sponsor's experience, i.e. operation or implementation. Technical assistance and use of outside contractors cannot completely overcome a sponsor's lack of experience in an industry or in the implementation of large projects.
6. Government support: Political risk can affect project implementation, especially for large infrastructure projects. Changes in government administrations often bring close re-examination of large projects, particularly those that involve government support.
7. Other implementation risks and mitigating actions by IFC:
| Risk | Mitigating action |
| Foreign sponsor | - use local contractors
- develop relationship with local government |
| Greenfield site | conservative implementation plan |
| New technology | longer implementation schedule |
| New type of operation | - use outside contractors
- emphasize training |
| Inadequately prepared financial intermediary | technical assistance and training |
The above lessons are based on 27 lessons from past IFC investments.
Last updated January 5, 1999.
