Water Sector Investment Program - Tranche 3

Strong project design, including carefully thought-out subproject selection criteria and adequate financial assessments can help reduce the need for scope changes and mitigate the risk of implementation delays. At approval, this project included seven subprojects in five provinces. Four of the seven subprojects were dropped in 2016 and 2017 because of changes in the companies’ investment priorities, changes in management due to the equitization process, and/or insufficient financial capacity. These scope changes led to the cancellation of 56% of the ADB loan.The scope changes and subsequent loan cancellation may have been prevented through stronger subproject selection criteria and financial assessments.