Full pre-feasibility and feasibility studies should be finalized before initiating the design and intervention of large infrastructure asset investments. It is essential that interventions and designs are based on a comprehensive understanding of the institutional and economic context in which these assets are operated. Without this understanding, MCC cannot assess how its support will affect the assets’ design, operation and contribution to economic growth: i. Control: It is especially important that MCC assesses critically whether the partner country entities that will control the investment and operational decisions have both the capacity and the motivation to make economically efficient management decisions ii. Incentives: A critical component to ensuring good management decisions is to ensure that both strict accountability and positive incentives act as guard-rails against profligate investment decisions. (In this case, project preparation was outsourced to consultants, leaving minimal culpability within G0CV or MCC.)
Lesson Learned