USAID/Mexico municipal development through infrastructure financing activity : a performance evaluation
2019EnglishTask order number REQ-EGEE-13-000174 | Evaluated task order title: Municipal development through infrastructure financing | Project title: E3 analytics and evaluation Development financeCODE: 523; Mexico Latin America
Metadata
- Authors
- Lorenzo Alonso, Santiago | Quezada, Geraldina Villalobos | Prichard, Nicholas | Kerley, Janet E.
- Contract/Code
- AID-OAA-M-13-00017 | GS-23F-8012H | 523-A-00-05-00039-00 | AID-523-A-15-00001
- Institution
- 11492 - Development & Training Services, Inc. (dTS) | 41179 Palladium Group, 13896 USAID. Bur. for Economic Growth, Education and Environment. Ofc. of Energy Infrastructure
- Keywords
- Architecture | Banks | Capital markets | Crime prevention | Economic development | Financing | Public administration | Trusts DE00 Top/Economics/Economic administration/Economic development (479.0) | Top/Management/Management operations/Accounting/Financing (309.0) | Top/Management/Organizations/Trusts (282.0)
- ID
- PA00TXRR
- File size
- 1286 KB
- Source
- Open PDF
The United States Agency for International Development (USAID) commissioned this evaluation to assess the
effectiveness of Evensen Dodge International Inc.?s (EDII) Municipal Development through Infrastructure
Financing Activity. The report examines EDII?s contributions in: i) increasing funding for public works projects
at the subnational level using good financial practices with appropriate legal structures to facilitate access to
private capital at market rates; and ii) testing the development of bond banks as a method to achieve these
goals. The report chronicles the five phases of the activity, discusses conclusions about the creation of new
laws to govern financing and bond banks to promote infrastructure and in the last three years, to facilitate clean
energy and crime prevention projects, and provides recommendations for decision-makers replicating the
activity.
The data to answer eight evaluation questions came from activity documents and interviews with key stakeholders, including USAID and Evensen Dodge staff, Mexican government officials and activity beneficiaries.
The evaluation found that the 16-year USAID-EDII activity contributed significantly to the creation of a national
legal framework to create bond banks and financial vehicles to respond to the needs of local governments. This
framework became self-sustaining and can be replicated in other countries. The original goal of creating an
institution that would become a single national bond bank was set aside. Instead, the activity supported the
creation of the legal framework for a mechanism?the bond bank/Special Purpose Vehicle (BB/SPV) tool?that
can be used at a national, state, or municipal level. Two state bond banks were created, in Hidalgo and Quintana
Roo. The capacity building goal was partially completed. High personnel turnover at the local government level,
when national government administrations change, is a constraint for creating a sustained workforce of staff
trained in the use of the tool. The work of the last years of the activity restructured the debt for the state of
Veracruz and introduced a new special purpose financing vehicle, the Accredited Trust. The Accredited Trust
functions like a bond bank. EDII missed the mark in achieving stated objectives in the final agreement of the
GDA to generate projects focused on clean energy and crime prevention.
The authors offer eight recommendations to USAID applicable to similar activities. Some support adjusting
these activities to new global realities, others relate to macroeconomic conditions. One recommendation
relates to management improvement opportunities.