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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
Changing performance targets and due dates midstream is not warranted.

Project Number: 37220-023
Project Name: Sindh Cities Improvement Investment Program (Tranche 1)
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Lesson
Make sure that the risk is mitigated and mitigation measures are implemented effectively, most especially when the lack of commitment is a high risk.

Project Number: 38405-013
Project Name: Mega City Development Project
Report Date:
Lesson
Project monitoring and evaluation systems require sets of measurable indicators and associated targets so that corrective measures can be implemented in time to achieve the project’s outcome.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
Supervision missions must flag projects that are in danger of slippage before it is too late to modify the project;

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
Previous project and/or sector experience in Pakistan was not internalized and reflected in the design—the risk of underestimating capacity constraints could have been mitigated with a risk management strategy;

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
The project design did not have an adequate analytic base that should have included an assessment of stakeholders and their capacities, and provisions for alignment due to changes introduced by the LGO 2001;

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
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
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:
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
The project supported reforms only in the 24 participating tehsil municipal administrations (TMAs). The provincial government was expected to undertake reforms and address capacity gaps in all the other TMAs (52 in all). This arrangement seriously isolated the reform process. Sector loan projects should assess the political will, capacity, and incentives related to policy actions at all levels before building the support and incentives mechanism for reforms.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
The project design offered flexibility in developing models for community and private sector participation in the delivery of urban services, without providing a clear framework or adequate resources for these activities. Flexibility is important in the design of sector loans, but for this flexibility to be effectively used, additional capacity, a guiding framework, and resources should be included in the sector loan, with supporting technical assistance for project administration to guide the use of the resources.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
Weak government commitment. Given the political environment and the likelihood that a significant lack of consensus might be a daily reality on this project, the design should never have been so complex, with four different subcomponents, leading to a much larger MFF expectation. Perhaps a lesson here is that to achieve early and committed buy-in to required reforms and institutional shake-up, smaller and simpler components could be tested through a small scale or project preparatory TAs, which may lead to visible and larger MFF commitments.

Project Number: 38405-013
Project Name: Mega City Development Project
Report Date:
Lesson
The project did not provide market-based salaries. Good staff was therefore hard to retain and turnover was high. This was a major reason for project failure. The overall cost implications of paying professional managers market-based salaries are marginal, especially when the substantial impact of weak capacities on project output and outcomes is considered, as this project demonstrated.

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