As GEF projects expanded in scale and complexity, the 2004 Annual Performance Report initiated systematic, independent tracking of portfolio quality and monitoring practices.

The 2004 Annual Performance Report (APR), the first produced by the GEF Evaluation Office, marks the start of independent annual reviews of portfolio performance. It focuses on elapsed project preparation times, the quality of terminal evaluations, and the strength of project monitoring and evaluation (M&E) systems. Average preparation times for both full- and medium-sized projects exceed the 24-month benchmark, reflecting GEF’s complex approval procedures, cofinancing requirements, and national review processes.

Terminal evaluation quality differs across agencies: World Bank reports are generally satisfactory, UNEP shows modest improvement, and UNDP reports are uneven, with gaps in evidence, cost data, and sustainability assessments. The evaluation also notes gradual improvements in project-level M&E systems since 1995, though reporting remains inconsistent and incomplete.

Recommendations emphasize greater transparency in the project approval process, stronger review systems for terminal evaluations, and continued upgrading of M&E practices.

This report was presented during: GEF Council Meeting 25