Institutional Capacity Assessment

The institutional capacity assessment is an activity carried out during the preparation of a sovereign guaranteed operation. The purpose of the assessment is to determine if the Executing Agency has the necessary capacity to manage the project. The output of this assessment is a diagnosis of the weaknesses and the strengths of the Executing Agency, which in turn informs key decisions during the design phase. Among these, perhaps the most relevant decision is the one that corresponds to the governance of the project, which should be designed to take advantage of the Executing Agency's strengths and to compensate for its weaknesses. 

In order to ensure that the capacity assessment provides quality inputs for the design phase, the IDB has designed a tool, the Institutional Capacity Assessment Platform (PACI for its acronym in Spanish), which organizes, systematizes and simplifies the process of analyzing the capacities of the Executing Agencies.