Methodology
Three key criteria and a rating scale with six levels
The final step in the cycle of every project supported by KfW is the final evaluation. A uniform, basic methodological approach is applied in every final evaluation: the actual project impacts are systematically compared with the target impacts expected at the time of the project appraisal. In many cases, however, the technical and development-policy discussion has gone on even further. This is why, in addition to the targets stated in the appraisal report, requirements and benchmarks are included that are derived from the current sector and cross-sector cooperation strategies of the BMZ, the partner country and from general development-policy criteria and standards. The performance rating given to a project is always based on the 'state of the art.'
In order to be able to evaluate a project's developmental efficacy, the project is analysed against three main criteria:
- its effectiveness,
- its relevance/significance, and
- its efficiency.
Collateral effects are also identified. For the overall evaluation, the extent of the collateral effects must be estimated as well, and whether they are acceptable.
Sustainability is a primary goal of the work of KfW Entwicklungsbank. Each of the three key criteria of effectiveness, relevance/significance and efficiency portrays different facets of sustainability.
Each key criterion is initially assessed separately against a rating scale of six levels. The three sub-ratings that result are then combined into a final rating according to a weighting defined individually for each project. This overall rating quickly indicates whether a project was successful or not, and measures its performance.
