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Lesson
Not considering adequate funding options and provisions for operations and maintenance (O&M) during the design phase can lead to sustainability issues after project completion. It is critical that a systematic plan for O&M design and measures are developed at the outset, considering the agencies' financial capabilities and attendant risks such as low levels of tariff rates.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Assessment of potential political risks such as a change in government and identifying mitigation measures could help ensure the continuity of planned project activities, specifically when there is strong support, ownership, and commitment of an agency. In particular, it is important to consider the speed and direction of change in the policy regime. For example, a shift in the government priorities could trigger resource allocation that could potentially affect how a project could deliver its intended development results.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Inaccurate projections can reduce the financial viability of projects and lead to unoptimal use of resources. At project appraisal, populations in Anaklia and Mestia were forecast to grow significantly with Anaklia’s planned port construction and tourism development of Mestia as an international ski resort and historic heritage site. As it turned out, towns in Georgia, including the three towns, witnessed out-migration and reduction in population in the last decade.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
The financial health of key project agencies needs to be thoroughly assessed at project preparation to determine their viability and identify the proper risk mitigation measures. Although a financial management assessment was conducted for the implementing agency, the United Water Supply Company of Georgia Limited Liability Company (UWSCG) during project preparation, the assessment only pointed to a need for training in accounting and reporting, preparing business plans, determining tariffs and procurement.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Lack of project readiness can seriously deter project implementation. The project completion review of tranche 1 indicates that the project was not ready for financing. During preparation of the project, the towns of Marneuli and Zugdidi were replaced by Kutaisi, Poti, and Ureki because of changing government priorities and the planned development of a seaside resort at Ureki. This necessitated a major change in scope that delayed project startup. Additional time was also needed for capacity building and to increase awareness of the project among the IA staff.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Get the institutional framework right before scaling up.

Project Number: 37220-013, 37220-023, 37220-033
Project Name: Sindh Cities Improvement Investment Program (Tranche 2 and the Multitranche Financing Facility)
Report Date:
Lesson
It is important for succeeding tranche loans to have clear provisions of clear conditionality in the program design and lending agreements.

Project Number: 37220-013, 37220-023, 37220-033
Project Name: Sindh Cities Improvement Investment Program (Tranche 2 and the Multitranche Financing Facility)
Report Date:
Lesson
Benchmarks and indicators are needed to improve urban services delivery and utility performance.

Project Number: 37220-013, 37220-023, 37220-033
Project Name: Sindh Cities Improvement Investment Program
Report Date:
Lesson
Ambitious program designs, usually underpinned by inadequate assessment of the program context and the institutional dynamics and capacities of relevant government agencies, are likely to encounter significant implementation difficulties.

Project Number: 37220-013, 37220-023, 37220-033
Project Name: Sindh Cities Improvement Investment Program
Report Date:
Lesson
Changing performance targets and due dates midstream is not warranted.

Project Number: 37220-023
Project Name: Sindh Cities Improvement Investment Program (Tranche 1)
Report Date:
Lesson
ADB had gained experience in Pakistan’s municipal services sector and these were recorded in past PCRs and country assistance program evaluations. Except for the successful Punjab Community Water Supply and Sanitation Project, available PCRs rated ADB’s interventions less than successful, including the recent experience with the Megacity Development Project in the Sindh province (footnote 28). Lessons from these experiences could have been applied to the design of this MFF.

Project Number: 37220-023
Project Name: Sindh Cities Improvement Investment Program (Tranche 1)
Report Date:
Lesson
ADB needs to invest in a good PPMS. The evaluation mission’s difficulty in measuring the efficiency of water supply and road subprojects financed under MSDP and MSDP Phase 2 was the result of an inadequate PPMS that focused mainly on monitoring disbursements and outputs. Baseline data were not collected on the market served by water supply subprojects, such as the number of households, persons per household, water sources, amounts of water produced and consumed, and water loss rates.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
Allocations for capacity building components need to be maintained. Discussions and interviews with MDF staff and municipal governments during the evaluation mission pointed to the need for further capacity building of MDF and municipal governments. This was one of the objectives of the projects.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
ADB project documents need to be clear on how projects are to lead to sustainable results. The absence of consultants to address issues regarding the legal and technical aspects of O&M planning and funding, measures for cost recovery, tariff collection, and the metering system posed a risk to the sustainability of the water supply and sanitation subprojects. Future projects should include technical assistance that would implemented concurrently with the project.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
Loans for the Municipal Development Funds should be implemented as proper financial intermediary loans. The projects were designed as financial intermediation loans largely because the government wanted to disburse funds and execute subprojects quickly. MDF had the capacity and had prior experience of implementing such loans through an earlier World Bank project.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date: