Evaluation of the ORET/MILIEV programme

The ORET/MILIEV Grant Programme of the Ministry of Foreign Affairs supports companies that want to be active in developing countries. In the context of this programme, the Dutch government supplies grants for the export of capital goods, services or works to developing countries. The objective of the MILIEV component of the programme is to ensure that projects have a positive impact on the environment.

The objectives for the programme are as follows: to promote Dutch exports; to promote employment in developing countries by facilitating investments in socio-economic infrastructure; and to improve the entrepreneurial climate in developing countries by facilitating investments in the socio-economic infrastructure. The contract consisted of an elaborate evaluation of completed and prematurely terminated ORET/MILIEV projects in the period 1999-2004. The Consortium was asked to provide an independent assessment of the extent to which the ORET/MILIEV projects achieved the programme's objectives. 22 projects in 10 countries were visited for this purpose (Ghana, Ethiopia, Tanzania, Colombia, Bolivia, El Salvador, Yemen, the Philippines, Vietnam, Sri Lanka). Three areas for analysis were formulated to assess the realisation of objectives. The first area was concerned with the effectiveness of the investments made under the programme. The second area addressed the effectiveness of the programme in terms of immediate improvements to the physical and social infrastructure and employment in the recipient developing countries and the direct increase in Dutch exports. The last area focused on the relevance of the programme in terms of the sustainable impact on employment and the entrepreneurial climate in recipient countries and the sustainable trade relations that emerged between the Netherlands and the recipient countries. The evaluation consisted of an analysis phase (desk study and interviews), a field study phase (ten missions) and a reporting phase. The contract was awarded in mid-January 2006. The inception report was delivered in mid-March 2006. The field missions took place from April to August 2006.

Evaluation report

The final evaluation report was subsequently submitted to the customer in mid-November. The final report was presented to the Lower House of Parliament in early 2007. In 2006/2007, the consortium Berenschot, SEOR and Ecolas evaluated the ORET/MILIEV grant programme for the Ministry of Foreign Affairs. The ORET/MILIEV program had three objectives: 1. to promote the export of Dutch capital goods, services or works to developing countries; 2. to promote employment in developing countries by facilitating investments in the economic and social infrastructure; 3. to improve the business climate in developing countries by facilitating investments in the economic and social infrastructure. Projects eligible for funding under the MILIEV component were required to have a positive impact on the environment. The consortium was asked to give an independent opinion on the efficiency, effectiveness, sustainability and relevance of the programme. The consortium collaborated with local consultants. The research methodology comprised the following elements: 1. Policy reconstruction; 2. Desk study of the appraisal and administration of 22 projects that were initiated in the period 1999-2004 and completed before the start of the evaluation, plus suppliers' perspective; 3. Study of the implementation of 22 projects and the recipients' perspective: field study in 10 countries - Ghana, Ethiopia, Tanzania, Colombia, Bolivia, El Salvador, Yemen, Philippines, Vietnam and Sri Lanka; 4. Analysis of scores; 5. Synthesis and reporting.

ORIO

The evaluation concluded that out of the 22 sampled ORET/MILIEV projects: - 90% had been efficient in producing the envisaged output - 86% were found to be development relevant - 73% were found to be relevant to the policies of the recipient government - 73% were perceived to be competitive - 50% were found to be effective (expected results were achieved, particularly relating to direct and indirect job creation) - 63% were found to be sustainable on technical, financial and institutional grounds combined. For all projects, technical and institutional sustainability was higher than the financial sustainability - 79% had a positive impact on the business climate in the recipient country - 27% resulted in a repeat order, maintenance contract or spin-off. Recommendations were made in the following regards: more strategic use of the instrument; refinement of appraisal procedures; more attention to financing efficiency; flexibility in financing modalities; reinforcement of monitoring and evaluation system The report was presented to parliament in January 2007. The evaluation results were used for the reformulation of the programme (now called ORIO). More on ORIO is on the website of NL Agency.

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