The Road to the SDGs

PURPOSE X IsDB has long focused on meeting MCs expectations to help drive improvement on commonly tracked project execution metrics, including: – Quality at entry (from the date of project approval to the date of first disbursement) – Quality of implementation (avoiding delays during the disbursement phase). X The identified issues carried significant implicit financial costs (opportunity costs) for IsDB. It was decided that a decentralised approach would be the most effective way to address these issues. X One aim of decentralising is to reduce the length of the project lifecycle, which was on average 21 months. Expediting the project lifecycle to international standards is expected to accrue an annual financial benefit of US$ 57 million. In addition, it enables IsDB to finance more developmental projects resulting from the faster asset turnover. X By empowering RHs, the intention is to enable the independent execution of projects targeted specifically at meeting the needs identified in particular regions. X Empowerment will bring such benefits as greater proactivity in project identification and preparation as RHs go through their project selection processes. X Decentralisation initiatives are expected to improve the visibility of IsDB and significantly enhance the implementation of operations. METHOD X As part of the P5P, IsDB is implementing a decentralised operating model by enhancing local presence in MCs with the establishment of 10 RHs and two Centres of Excellence. X The decentralisation of portfolio management from the Headquarters to RHs is changing the way IsDB does business, along with other structural changes, including: – Reduction in delays at various stages of the project cycle – Review and closure of inactive and nonperforming projects – Reduction in the amount of CUC. X In encouraging a decentralised approach, IsDB is not forfeiting any of its traditional strengths or turning its back on established relationships with the governments of its MCs at Headquarters level. It will increasingly work with governments to jointly identify priority needs and opportunities in individual MCs and to leverage the resources required to produce much-needed changes. Decentralisation: RHs bring IsDB Group closer to the field B y taking a more decentralised approach to its work, IsDB is helping its MCs to build their industrial capacity in a variety of ways that are appropriate to them Through decentralisation, IsDB is committed to moving away from top-down actions in favour of interventions that address the root causes impeding sustainable growth in MCs [ 186 ] SDGs