5.5 Project Operation

There is a continuing relationship between the Bank and the Provider once the project has passed into the operational phase. The job of managing this relationship lies with RM, which is responsible for monitoring the transaction's credit risks, using the independent Technical Assistance (TA) available to all senior lenders. The long-term nature of the relationship with the Provider was not always recognised by PJ, with the exception of a particular education project. Other PJ appraisals did not take into account the fact that the project included long-term maintenance risks. PJ engineers agreed that this had been a problem in the past, but said the issue was considered more carefully now. This obviously becomes a more important issue where the Bank releases some or all of its guarantees once the project is operating, and is therefore taking long-term maintenance risks.