Assessing infrastructure projects funded by World Bank and Chinese financial institutions: A case study of Sri Lanka

Abstract

Purpose: This study uses Sri Lanka as a case study to explore and compare the outcomes of projects funded by both the World Bank and Chinese financial institutions. Approach and Methods: By constructing a distinctive metric and rubric-based framework for data analysis and empirical evaluation, the research employs statistical tools such as the two-sample t-test, Mann–Whitney U test, and probit regression to examine the effectiveness of these projects. This innovative approach enables a comprehensive assessment of project performance, offering critical insights into overall impact and efficiency. Findings: The findings suggest that World Bank-funded projects, especially loans, are more effective than those financed by Chinese institutions, probably due to the latter's higher levels of opacity. Adherence to the original budget and timeframe of projects also contributes significantly to project effectiveness. Policy Implications: The results of this analysis offer insights into key factors relating to the effectiveness of infrastructure projects. This study also underlines the importance of the project implementation process, which has valuable implications for other nations and international development institutions in terms of improving project outcomes.