Search

Displaying 1 - 15 of 18

Lesson
Carefully assess effective demand for new instruments. For projects where similar models do not exist in the local market, more exhaustive studies and analyses of the demand and willingness to pay for guarantees covering SME exposure should take place.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
Better due diligence of financial intermediaries is required. ADB did not adequately assess the risk rating process of SBC or do enough work to understand its processes and procedures. A better understanding of SBC would have enabled ADB to assume more decision-making responsibility on the implementation of the facility. In addition, ADB should have undertaken due diligence of other potential PFIs at appraisal.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
Underestimating the impact of staff changes. PSOD preferred to assume financial intermediary risk rather than risk associated with SMEs, which contributed to the delay in raising the credit limit to URC and the selection of new PFIs. ADB staff changes at the project officer level confused SBC and contributed to the lack of continuity and consistency of efforts by ADB.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
There has neither been a follow-up project in the Philippines, nor has ADB financed a similar project elsewhere in the Asia Pacific region. The issue of taking on SME risk against that of the financial intermediary needs resolution before its further application. The PCG facility could potentially be adopted in a number of ADB’s developing member countries, but further work is required to adequately measure and assess the risk-return benefits of the instrument for stakeholders.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
Pricing needs to reflect market demand. The formal price change from ADB came too late to make a difference, since by then the price waivers had been granted. Likewise the first loss provision outlined in the RRP was dropped from the guarantee agreement between ADB and SBC.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
An adequate pipeline is needed. More care is needed in establishing a pipeline of PFIs. Due diligence was weak, preventing the participation of more banks before approval or immediately afterwards. Given more participants, the volume of guarantees would have increased and a wider variety of SMEs could have taken part. More exhaustive due diligence is needed in the future, especially in identifying and assessing PFIs. Poor monitoring and supervision of the project by ADB contributed to the low utilization of the facility.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
Need to proactively monitor facility utilization. The need for effective monitoring was stressed in the RRP, but it was not carried our satisfactorily. Monitoring facility utilization was necessary to guide restructuring, realignment, and modifications, and, where required, to cancel allocations so ADB capital could be deployed more efficiently. ADB originally expected that over time, the PCG facility would allow PFIs to become familiar with SME risks and provide guarantees for a wider range of instruments, which would have prompted more PFIs to participate.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
No additional lessons

Project Number: 34113
Project Name: Small and Medium Enterprise Export Development Project
Report Date:
Lesson
No new lessons

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
The project implementation schedule was amended early in the project to comply with the government's request for immediate action and results via the two- pronged approach. Unless there are clear deficiencies in project design, ADB should resist requests to change the design or implementation arrangements early in implementation, because the original project design should be given a chance to succeed. Corrective action can be taken later as problems become apparent.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
It would have been appropriate if management of the project had been transferred to PRM. This would have facilitated communication, supervision, and resolution of issues as they emerged.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
The project had a high weighting of consultant inputs in the first 6 months. It is unrealistic to expect that international consultant teams can be on the ground and achieving outputs within such a short time frame in countries such as Pakistan, given the difficulties in recruitment. An alternative may be to phase in international consultant inputs later in the project to allow for a more realistic recruitment process. However, application of the streamlined business arrangement principles should provide greater project preparedness for accelerated consultant recruitment.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
The concept of a sustainable self-funding Rural Enterprise Modernization Company (REMC) providing BDS in markets with limited ability to pay was an inappropriate design. The services provided are public benefits, which are traditionally the role of government rather than private companies. The lack of private entities currently providing these services in Pakistan reinforces this point.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
The security situation in Pakistan was a major factor in the failure to recruit international consultants. In countries where security concerns prevail, project design needs to account for the difficulty in recruiting and retaining suitable international consultants. Limiting the role of international consultants to a few key positions and to supervision of national consultant inputs may contribute to greater project success.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
ADB should monitor the Planning Commission (PC-1) approval process for Pakistan projects so as to be aware of potential problems and ensure that appropriate levels of counterpart funds are guaranteed at the time of loan negotiations.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date: