sector: Finance, Public Sector Management | country: Bhutan
The program completion report (PCR) listed a number of lessons most of which reiterate accepted principles and practices in program loan formulation and implementation. Of these, it is worthwhile to emphasize the link between program lending and capacity or institution building technical assistance (TA). Quite simply, technical assistance is usually expected in order to assist the borrower and the executing agency to achieve the program’s policy requirements. On the other hand, having the leverage of a relatively large amount of grant or loan funding can often provide an incentive for governments to institute policy measures on a timely basis when they might otherwise be delayed or avoided due to internal resistance or inertia. As shown by this program, the TA does not necessarily need to be technically or formally directly tied with the loan/grant but the conditions of the program need to be made consistent with the TA.