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Lesson
The political economy of the country as well as of the local areas where projects are to be sited needs to be thoroughly understood and considered in the design of projects. The project assumptions that institutional and financial reforms would be adopted within a reasonable time frame and that demand for the improved water supply services could be established in Kosrae state proved false. Project preparation could have supported a more thorough understanding of the political economy, and the scope based on a stronger rationale and expressed demand.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
A well-thought-out project communications plan, backed by local capacity building, is needed for the successful implementation of projects in FSM. Information is often not widely shared in the FSM, and securing support for reforms can be particularly complex in this context. The Chuuk Public Utilities Corporation was able to effectively carry out its communications and outreach activities and secure support for reforms with the help of a well-defined operation, maintenance, and management contract. Project delays affected the momentum of activities in the other three states.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The ability of all participating utilities to successfully adopt and implement organizational changes to meet the project requirements should be assessed, with specialized external support in utility management provided as necessary.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The risks posed by conditions for loan effectiveness and disbursements should be carefully assessed and considered in the project timeline. Project implementation was delayed by about 18 months as the conditions for loan effectiveness required the passage of appropriation bills in the National Congress and at least three of four state legislatures. Such projects can provide the required pressure for positive legal changes but can lead to startup delays.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
A narrow sector and geographic focus is more suitable for projects in the Federated States of Micronesia (FSM). In FSM, multistate and multisector projects bring added complexity and interdependence between institutions that do not otherwise have incentives to support each other. Future projects should consider a narrower focus in terms of sector and geographic scope, allowing for less dispersed efforts on physical and nonphysical project targets. This approach has been adopted for the ongoing Chuuk Water Supply and Sanitation Project.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
Timelines for policy changes and major reforms should also be realistic, knowing that building understanding and ownership can take time and the passage of legislation can be a lengthy process. Two municipalities declined to participate in the project because of their objection to the transfer of ownership and management of assets to a state government agency.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
Lack of tariffs and insufficient operation and maintenance (O&M) budgets threaten the sustainability of water supply and sanitation facilities in FSM. The water supply and wastewater components are unlikely to be sustainable because of the unwillingness to charge for services, and the insufficiency of annual O&M budgets.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
It is important to properly sequence the implementation of technical assistance so it could provide its inputs to the project in a timely manner. According to the project completion report, the delay in the development of the National Transport Plan supported by the project preparatory TA affected project implementation as projects sites were required to be included in the plan prior to implementation.

Project Number: 40263-022
Project Name: Domestic Maritime Support (Sector) Project
Report Date:
Lesson
Ensuring adequate project performance monitorng system (PPMS) design—along with collection of baseline data at project preparation phase—supports effective monitoring of a project’s performance. Although establishing a PPMS was covenanted in the grant agreement, the PPMS was ineffective in providing the data required for calculation of economic internal rate of return. The lack of data indicates that the PPMS was inappropriately designed and that a greater focus on the PPMS design at project preparation is needed. For

Project Number: 40263-022
Project Name: Domestic Maritime Support (Sector) Project
Report Date:
Lesson
a detailed design and implementation assessment enhances the project’s success, especially for projects that help provide shipping services to outlying and remote island communities. ADB has experience in this with two projects in the Pacific region that were to provide shipping services to outlying and remote island communities—this one that is under validation while the other is the Community Water Transport Project in Papua New Guinea.16 However, both projects were rated less than successful, which indicate endemic issues with their design and implementation.

Project Number: 40263-022
Project Name: Domestic Maritime Support (Sector) Project
Report Date:
Lesson
The program design and implementation benefited greatly from advisory support provided to the Department of Finance and Administration by the regional social protection TA funded by ADB in calibrating Social Protection Program measures. Financial and economic management, however, were hampered by gaps in statistics, notably on tax data.

Project Number: 54309-001
Project Name: Health Expenditure and Livelihoods Support Program
Report Date:
Lesson
The One ADB review mechanism that supported program and/or project processing under the COVID-19 Pandemic Response Option (CPRO) was effective in facilitating quick access by DMCs to emergency support from ADB. The CPRO policy and guidelines were still being developed while the program was under preparation, and managing changing internal guidance and expectations added significant pressure. Neverthelesss, program preparation efficiency gains from the One ADB review mechanism were widely experienced.

Project Number: 54309-001
Project Name: Health Expenditure and Livelihoods Support Program
Report Date:
Lesson
More targeted capacity development could lead to better results.

Project Number: 40263-022
Project Name: Domestic Maritime Support (Sector) Project
Report Date:
Lesson
Adequate budgetary and institutional support is crucial to ensuring that data collection and analysis is undertaken throughout the project cycle.

Project Number: 40263-022
Project Name: Domestic Maritime Support (Sector) Project
Report Date:
Lesson
Factors outside the control of projects can affect the growth of maritime Transport; in turn affecting the viability of a franchise sharing scheme (FSS).

Project Number: 40263-022
Project Name: Domestic Maritime Support (Sector) Project
Report Date: