Results measurement and impact assessment of blended
finance
Georg Weiers and Nina Fenton
Thursday, February 2, 2017
Outline
1.
End of the day, it is all about results
Some results at the EIB
Results reporting
Why the focus on results
2. Measuring results together
The general concept
The EIB results measurement framework
Harmonizing approaches and indicators
3. Moving towards impact
Measuring Impact
Impact investmentImpact evaluation
Impact investment
2
Outline
1.
End of the day, it is all about results
Some results at the EIB
Results reporting
Why the focus on results
2. Measuring the results together
The general concept
The EIB results measurement framework
Harmonizing approaches and indicators
3. Moving towards impact
Measuring Impact
Impact investmentImpact evaluation
Impact investment
3
Some results at the EIB
Some numbers for EIB results outside the EU.
SME
URBAN
DIGITAL
WATER
22 000 SMEs and
mid-cap companies
gain access to
finance, supporting
532 000 jobs
540 000
passengers
benefiting daily
from improved
urban and rail
transport
120 000
households
connected to
broadband
1.35 million
households with
improved water
supply or sanitation
TRANSPORT
ENERGY
WASTE
2.9 million hours a
year travel time
saved from new and
improved roads
7.2 million
households supplied
by energy
generated
492 000 people
benefiting from
improved waste
management
MICROFINANCE
EIB support will help
microfinance
institutions make 3
million loans to
microenterprises
Expected results based on EIB operations with first signatures in 2015
4
Some results at the EIB
Some stories for EIB results outside the EU.
5
Results reporting
All have some form of results reporting.
6
Why the focus on results
Results keep us accountable and ensure effectiveness.
Accountability: Are we contributing? How? How much? And in line with what we set
out to achieve?
–
–
Improved accountability: Align resource allocation with external results rather than with internal
inputs and activities. What did we achieve with our lending and investments ?
Increased transparency: outline connections between desired results and resources
Effectiveness: Are we focusing on the right areas? Are we addressing the right needs
and priorities?
–
–
Improved effectiveness: Direct organizational focus towards achievement of actual results,
beyond inputs and outputs.
Continuous learning: are we achieving expected results? If not; why not? How can we improve
our projects in the future?
7
Outline
1.
End of the day, it is all about results
Some results at the EIB
Results reporting
Why the focus on results
2. Measuring the results together
The general concept
The EIB results measurement framework
Harmonizing approaches and indicators
3.
Moving towards impact
Measuring Impact
Impact investmentImpact evaluation
Impact investment
8
The general concept
The results chain.
Impact
IMPACT - Longer-Term Effect
Positive and negative long-term effects produced by the project directly or
indirectly. Not necessarily attributable to the project outcomes (e.g.
Decreased incidence of water-borne diseases in the community)
OUTCOME - Medium-Term Effect of the Output
Outcome
Output
Input
Short term and medium term effects of the project. Uptake or use of the
project after completion by beneficiaries (e.g. More households have
access to tap water )
OUTPUT - Physical Result of Project Execution
Specific, direct deliverables of the project. These will provide the conditions
necessary to achieve the outcome (e.g. Potable water)
INPUT
Financial, human, material resources used for the project (e.g. EIB loan to a
water utility)
9
The general concept
Managing and measuring for results.
Why this operation?
At the outset, consistency with
objectives and clear contribution
to development priorities needs
to be demonstrated .
Review results
If possible measure
results again some
time after to assess if
it is sustained and
used as intended.
What will it deliver?
Clear, sector-specific,
standardised and objectively
measurable indicators are
identified. Baselines and
expected expected outputs and
outcomes of the project are
identified.1
Has it delivered?
At project completion,
what outputs and
outcomes has it delivered
and how do they
compare to expectations?
10
The EIB results measurement framework
The three pillars of the EIB ReM.
Impact
Pillar 1 – Contribution to EU policy
Outcome
Pillar 2 – Development outcomes
Output
Input
- Market alternative
Pillar 3 – Technical and Financial
contribution
11
The EIB results measurement framework
The three pillars of the ReM.
Pillar 1 – Contribution to EU policy
Impact
• Consistency with EIB mandate
objectives
• Contribution to EU and country
development priorities (logical
results chain)
Outcome
Output
Input
- Market alternative
12
The EIB results measurement framework
The three pillars of the ReM.
Impact
Pillar 2 – Development outcomes
•
Results (outputs, outcomes)
• Soundness of project or
intermediary and operating
environment
• Environmental and social
sustainability
• Financial and economic
sustainability
Outcome
Output
Input
- Market alternative
13
The EIB results measurement framework
The three pillars of the ReM.
Impact
Pillar 3 - Technical and Financial
contribution
•
Outcome
Output
Input
- Market alternative
Financial Contribution (e.g.
Extension of tenor, Match with
Economic Life, Local currency
funding)
• Financial Facilitation (e.g. Innovative
Financing, Attracting other private
sector financiers, Raising standards)
• Advice (Financial Advice &
Structuring, Technical contribution &
advice)
14
Harmonizing approaches and indicators
Reducing the burden on our counterparts, and making aggregate reporting possible.
Harmonizing approaches and indicators
Reducing the burden on our counterparts, and making aggregate reporting possible.
https://indicators.ifipartnership.org/
Outline
1.
End of the day, it is all about results
Some results at the EIB
Results reporting
Why the focus on results
2. Measuring the results together
The general concept
The EIB results measurement framework
Harmonizing approaches and indicators
3. Moving towards impact
Measuring Impact
Impact investmentImpact evaluation
Impact investment
17
Moving towards impact
Measuring indirect effects.
Moving towards impact
Measuring indirect effects.
Moving towards impact
Impact evaluation
•
A range of techniques are available to address the challenge of attribution –
not just randomized control trials
Source: World Bank (2011); “Impact evaluation in practice”
•
These can supplement results measurement: often costly, require advance
planning, not suitable for all projects or questions, hard to generalize findings
Moving towards impact
Impact investment
•
Enhance results frameworks to capture the superior development impacts
that impact investments aim to achieve
EIB uses a ReM+ framework to go “further and deeper”
•
Further down the results chain
Deeper into the profile of final beneficiaries