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Lesson
Lessons from previous projects. Lessons from two older ADB urban sector loan projects to Karachi in 1986 and 1991, respectively, which were rated unsuccessful and partly successful, include the need for (i) greater attention to sustainability, (ii) enhanced project design based on sound assessments, (iii) careful consideration for institutional shortcomings of executing and implementing agencies, and (iv) greater efforts to address the financial insolvency problems of the Karachi local government bodies.

Project Number: 38405-013
Project Name: Mega City Development Project
Report Date:
Lesson
There was a 3-year gap between the project preparatory technical assistance (PPTA) evaluations (in the last quarter of 1999) and the start (effectiveness) of the project (in the last quarter of 2002). Most structural and financial management plans, base maps, and priority subprojects therefore had to be reappraised at the start of the project, further delaying the project and straining limited capacity. To keep evaluations and project designs relevant, the time between project preparation and start up should not exceed 1 year.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
Feeder roads, large drinking water supply, and surface water diversion schemes cannot be classified under the umbrella of participatory small-scale infrastructure, as these schemes require specialized technical skills and high operation and maintenance costs. In the future, these should be classified as government-managed medium-scale infrastructure subprojects.

Project Number: 29586-013
Project Name: North-West Frontier Province Barani Area Development Project
Report Date:
Lesson
Before a complex and innovative project is designed, particularly in a relatively less- developed region such as the Khyber Pakhtunkhwa (KPK) province, it is necessary to have thorough consultation with stakeholders directly involved with the technical education and vocational training (TEVT) system to develop realistic activities.

Project Number: 38178-013
Project Name: Restructuring of the Technical Education and Vocational Training System Project (North-West Frontier Province)
Report Date:
Lesson
The risk assessment of political resistance to devolution was not sufficiently robust, and mitigating measures were not realistic. The design should have been revised to address political resistance to implementation of the Punjab Local Government Ordinance 2001 (PLGO). Failure to do so undermined program implementation. Another significant design flaw was the multi-sector and ambitious scope of the program. This observation was also raised by the executing agency (EA) during the program completion review mission.

Project Number: 32264-013
Project Name: Punjab Devolved Social Services Program
Report Date:
Lesson
During the inception mission, the KPK government requested a reallocation of loan proceeds in line with what was agreed to during loan negotiations. The requested reallocation required a major change in scope, which was proposed to take place during the midterm review mission, scheduled for the third year of project implementation. The midterm review mission does not necessarily need to come in the middle of the project period; it can be scheduled early on, for instance in the first year of project implementation, if it would help to get the project going after a slow start.

Project Number: 38178-013
Project Name: Restructuring of the Technical Education and Vocational Training System Project (North-West Frontier Province)
Report Date:
Lesson
Counterpart funding and incentive issues in TA loans. Despite the challenges in project implementation, the project support unit (PSU) and local support unit (LSU) had utilized close to $4 million in counterpart funding, while ADB disbursed only 15% of the TA loan. As a result, the actual split between ADB and the government was 15:85, when the agreement was 70:30. Thus, a key lesson is that there should have been far greater oversight on the utilization of counterpart funds, as the ADB-financed expenditures and activities and overall progress of the TA loan lagged far behind.

Project Number: 38405-013
Project Name: Mega City Development Project
Report Date:
Lesson
The project design was based on the assessment of seven sample TMAs and assumptions related to support for LGO 2001 from other sources to address capacity issues. The basis of the capacity assessment was seriously compromised during implementation. The project design did not have enough flexibility and depth to fill these capacity gaps, which would have required major changes in institutional arrangements and additional funding, a possibility that was avoided during implementation.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
Selection of nongovernment agencies (NGOs) at appraisal would have ensured timely implementation of the project. Given the community mobilization as a prerequisite for all interventions, and the problem of political interference in selection of NGOs through competitive bidding, single-source selection at appraisal should be preferred.

Project Number: 29586-013
Project Name: North-West Frontier Province Barani Area Development Project
Report Date:
Lesson
A major reason for the delay in project start-up was the variance between the report and recomendations of the president (RRP) and the government's PC-1 planning document. Draft RRPs and PC-1s for a project should be shared between ADB and the borrower well before loan approval.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
The focus of the EA and PSU was on implementation of the policy matrix. Considerably less importance was given to the loan covenants. The PSU indicated that it would have recruited local support groups if it had been a condition in the policy matrix; however, since it was not a tranche condition, the PSU did not feel compelled to comply. This was also the case with covenants related to social sector expenditures and conditional grants, which were key covenants for ensuring improved social sector performance.

Project Number: 32264-013
Project Name: Punjab Devolved Social Services Program
Report Date:
Lesson
The frequent change in administration also affected the filing of the key project documentation, resulting in some of the files remaining in headquarters and others in the resident mission.

Project Number: 38178-013
Project Name: Restructuring of the Technical Education and Vocational Training System Project (North-West Frontier Province)
Report Date:
Lesson
The policy reforms agreed on at appraisal were overshadowed by the broader reform agenda introduced under local government ordinance (LGO) 2001 before project approval. Where major changes occur in the external environment of projects before ADB approval, it is more efficient to revise the project design up front rather than postpone the major adjustments.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
A poverty reduction, multisector area development project covering very large isolated areas cannot be efficiently implemented in Khyber Pakhtunkhwa without (i) the Planning and Development Department as the executing agency, which has the essential mandate and institutional capacity for multisector interventions; (ii) a decentralized project management model; (iii) components fully designed with dedicated staff resources, operational costs for implementing agencies, and market-based reasonable salaries and benefits; (iv) flexible, demand-driven design of interventions; (v) minimum benefici

Project Number: 29586-013
Project Name: North-West Frontier Province Barani Area Development Project
Report Date:
Lesson
The project schedule was unrealistic for a complex project that relied heavily on existing capacity and several up-front conditions before the subproject investments. The scheduling of complex sector and policy loan projects has to be improved and streamlined on the basis of actual implementation experience.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date: