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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
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 marginal financial viability of the project suggests the need for improved direct cost recovery over time. Tariffs under the project were estimated to average less than 1% of household incomes compared to an estimated 3%–5% in other regional countries, indicating the potential for affordable adjustments. Higher tariffs would not only improve the financial viability of such investments but also encourage private sector participation in the sector.

Project Number: 42011-013
Project Name: Wuhan Urban Environmental Improvement Project
Report Date:
Lesson
Ensuring the timely provision of counterpart funds reduces unnecessary implementation delays that could potentially lead to changes in project scope. Securing the financing and arrangements of counterpart funds at the outset avoids prolonged implementation of project activities. Specifically, adequate risk assessment of financing constraints and commitment of borrowers is essential for a more effective and smooth implementation.

Project Number: 42011-013
Project Name: Wuhan Urban Environmental Improvement Project
Report Date:
Lesson
Adjustment in the project design and design and monitoring framework (DMF) during the early stages of implementation strengthens project performance. For instance, a midterm review provides an opportune time to carefully examine a project and track its progress on outputs and deliverables. Also, this allows restructuring and adjustment of DMF targets and indicators at appraisal, with the approval of the ADB. This would lead to a more realistic project results and outcome at completion.

Project Number: 38272-013, 38272-033
Project Name: Uttarakhand Urban Sector Development Investment Program (Tranche 2 and Multitranche Financing Facility)
Report Date:
Lesson
The quality of project implementation relies on the capacity of borrowers and agencies. It is crucial that executing and implementing agencies are familiar with ADB procedures and requirements, specifically in the procurement process, safeguards’ policies, and financial management. This will enable the agencies to better manage project-related activities and avoid unnecessary start-up delays during implementation.

Project Number: 38272-013, 38272-033
Project Name: Uttarakhand Urban Sector Development Investment Program (Tranche 2 and Multitranche Financing Facility)
Report Date:
Lesson
Extending physical completion of works beyond the financial closing of the loan, diminishes ADB’s ability to rigorously monitor and track project progress, safeguards, and technical due diligence.

Project Number: 38254-043
Project Name: MFF - North Karnataka Urban Sector Investment Program - Tranche 2
Report Date:
Lesson
Use of two sample subprojects at the appraisal stage is insufficient to make a reasoned assessment of the economic viability of a project of this size. A broader range of ULBs would have indicated the economic viability, sustainability, and the reform measure needed to ensure the success of the project.

Project Number: 38254-043
Project Name: MFF - North Karnataka Urban Sector Investment Program - Tranche 2
Report Date:
Lesson
Midterm review is a key opportunity for course correction and review of the project design. This opportunity was not fully exploited and design flaws in the DMF remained until the project completion. T

Project Number: 38254-043
Project Name: MFF - North Karnataka Urban Sector Investment Program - Tranche 2
Report Date:
Lesson
The report and recommendation of the President (RRP) had indicated that 13 of the 25 urban local bodies (ULBs) demonstrated that their municipal cash flows would be sufficient to meet the additional expenditures resulting from the investment program and that the other 12 should propose a financial improvement action plan for sustaining the subprojects. No such action plans were developed. Had these actions plans been developed before subproject approvals, the sustainability of the subprojects would likely have improve

Project Number: 38254-043
Project Name: MFF - North Karnataka Urban Sector Investment Program - Tranche 2
Report Date: