Interview with Roland Michelitsch, Manager and Chief Evaluation Officer.
DOTS for Investment
For investment projects, the overall development outcome rating is a synthesis of four performance categories that are informed by the indicators agreed with the client—financial performance, economic performance, environmental and social performance and private sector development impact.
Development Outcome: Investments
General Indicators and Benchmarks
Examples of Specific Indicators Assessed Against Targets
Returns to financiers, e.g., financial returns at or above weighted-average cost of capital
Return on invested capital, return on equity, project implemented on time and on budget
Returns to society, e.g., economic returns at or above 10 percent
Economic return on invested capital, number of connections to basic services, loans to small enterprises, people employed, tax payments
Environmental and Social Performance
Project meets IFC’s Performance Standards
Improvements in Environmental and social management systems, effluent or emission levels, community development programs
Private Sector Development Impact
Project contributes to improvement for the private sector beyond the project company
Demonstration effects (other firms replicating a new approach, product, or service), linkages to other private companies, improvements in legal/regulatory framework.