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CSV
Lesson
Insufficient technical support was provided to the Government of Palau by ADB at program commencement to assist with the initial work on alternative policy and legal frameworks, including merger and privatization options. Greater use of specialist water utility engineers and water company contractors with wide Pacific experience could have benefited the program.

Project Number: 44031-013
Project Name: Water Sector Improvement Program
Report Date:
Lesson
The RRP outlined that one of the program outputs was the establishment of the policy and legal framework to enable the provision of sustainable and efficient water and sewerage services, including allowing for outsourcing of the management function to a private company. Examples of merged power and water utilities and private sector-run water utilities include the UNELCO Engie in Vanuatu and the American Samoa Power Authority (footnote 9). These types of viable utility options need to be considered during the appraisal of similar programs.

Project Number: 44031-013
Project Name: Water Sector Improvement Program
Report Date:
Lesson
Consultation was undertaken at appraisal and fact-finding was done by ADB on alternatives to the establishment of the PWSC. However, the change in the government resulted in changes in the sector reform choices undertaken and resulted in less commitment to the program. For similar policy-based loans, the lesson is to develop ownership indicators for programs ex-ante, which are sufficiently robust to ensure that government commitment is maintained irrespective of sector reform pathways.

Project Number: 44031-013
Project Name: Water Sector Improvement Program
Report Date:
Lesson
Policy-based loans should ensure adequate support for reform implementation. Accompanying TA would help clients meet key program targets, such as implementation of the IGF and medium-term budgeting. Policy-based loan design should ensure that TA findings are translated into actions. With the MFEM’s preference for policy-based lending, loan design should ensure strong links between TA and the program being supported.

Project Number: 42503-013, 42503-023
Project Name: Economic Recovery Support Program - Subprograms 1 and 2
Report Date:
Lesson
Policy-based loans are useful instruments for aligning donor activities and securing donor participation. As noted above, donors provide a significant amount of resources, including for capacity building. Various modalities of donor participation and coordination could be explored in the design of policy-based loans, such as inclusion of donor commitment and funding of specific programs and projects (especially in the social sectors, where donors are active) and TA (notably in PFM).

Project Number: 42503-013, 42503-023
Project Name: Economic Recovery Support Program - Subprograms 1 and 2
Report Date:
Lesson
Addressing multiple development challenges in a single operation results in complex program design that is not appropriate where capacity is a key constraint. Narrowing the thematic focus (e.g., infrastructure governance reform) could result in a more coherent program.

Project Number: 42503-013, 42503-023
Project Name: Economic Recovery Support Program - Subprograms 1 and 2
Report Date:
Lesson
Institutional reform requires well-defined and attributable outcomes. Many of the milestones for institutional reform are process related, e.g., cabinet endorsement of the IGF. The outcomes from the institutional reforms are not well-defined, e.g., higher economic and social rates of return. There is a need for closer monitoring and evaluation to determine whether the reforms achieved their objectives. The theory of change and intended results should be well articulated at the outset.

Project Number: 42503-013, 42503-023
Project Name: Economic Recovery Support Program - Subprograms 1 and 2
Report Date:
Lesson
Incorporating in the design mechanisms to ensure the implementation of agreed reforms in a changing political environment enables the successful completion of reform programs.

Project Number: 44031-013
Project Name: Water Sector Improvement Program
Report Date:
Lesson
Delays in the implementation of policy−based loans require greater attention to identifying potential risks and building measures to mitigate such risks.

Project Number: 44031-013
Project Name: Water Sector Improvement Program
Report Date:
Lesson
No new lessons

Project Number: 42503-013, 42503-023
Project Name: Economic Recovery Support Program—Subprograms 1 and 2
Report Date:
CSV