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Lesson
Sound identification and valuation of costs and benefits in the economic analysis can provide more realistic economic internal rates of return (EIRRs) to indicate a more accurate state of project viability. The economic analysis in the RRP and PCR underestimated the value of the project outputs, particularly the economic benefits of the solid waste management component, which led to a low EIRR. Willingness-to-pay $2 per month for solid waste removal seems too low and unreasonable considering the substantial health and environmental benefits that such removal likely provides.

Project Number: 45507-003
Project Name: Yunnan Chuxiong Urban Environment Improvement Project
Report Date:
Lesson
Not considering adequate funding options and provisions for operations and maintenance (O&M) during the design phase can lead to sustainability issues after project completion. It is critical that a systematic plan for O&M design and measures are developed at the outset, considering the agencies' financial capabilities and attendant risks such as low levels of tariff rates.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Assessment of potential political risks such as a change in government and identifying mitigation measures could help ensure the continuity of planned project activities, specifically when there is strong support, ownership, and commitment of an agency. In particular, it is important to consider the speed and direction of change in the policy regime. For example, a shift in the government priorities could trigger resource allocation that could potentially affect how a project could deliver its intended development results.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Allowances for possible cost increases in civil works can mitigate the effects of unforeseen geological conditions.

Project Number: 41627-023, 41627-033
Project Name: Himachal Pradesh Clean Energy Development Investment Program (Tranches 1 and 2)
Report Date:
Lesson
Early preparation and set up of funding design and mechanisms to meet the financial requirements of facilities and equipment's operation and maintenance after project completion can mitigate sustainability risks of project investments. In this project, there was no clarity on how maintenance of project infrastructure and equipment were to be funded after project completion. Thus, it reduces the project's sustainability.

Project Number: 48236-001
Project Name: Strengthening Community Resilience to Dzud and Forest and Steppe Fires Project 
Report Date:
Lesson
Potential problems with funding the maintenance of completed subprojects and/or facilities arise when they highly rely on government budgetary allocations that may or may not materialize in the short- and medium-terms. This can lead to poor periodic maintenance, especially for road routine maintenance. In future projects, consideration could be given to performance-based road maintenance contracts where a period of maintenance is included (e.g., 5 years after completion) in the contracts.

Project Number: 43319-022
Project Name: Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Report Date:
Lesson
With the project's investment in improving wastewater treatment, solid waste management and recycling, an opportunity arose to establish and impose full cost recovery tariffs and charges for these activities. Appropriate tariff studies could have been undertaken and with recommendations for replication in other towns.

Project Number: 43319-022
Project Name: Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Report Date:
Lesson
Estimation of the project cost requires a greater anticipation of potential cost overrun/underrun that may arise during implementation. During appraisal, a more in-depth examination and consideration of factors related to currency depreciation permits a more robust and realistic cost estimates. Under this project, a substantial loan amount was cancelled due to the rupee depreciation. A careful financial planning and cost projections coupled with risk mitigation measures and monitoring allows for better utilization of loan proceeds.

Project Number: 46417-001
Project Name: Jaipur Metro Rail Line 1-Phase B Project
Report Date:
Lesson
State-owned banks are often used for policy lending that target specific sectors offering low interest rates and preferential terms. It is important that during project preparation, financial intermediaries selected are aligned with the market-based approach of FIL projects to avoid crowding out subloans and nonparticipation of selected intermediaries in lending to the target sector.

Project Number: 47046-002
Project Name: Gansu Featured Agriculture and Financial Services System Development Project
Report Date:
Lesson
Structural and nonstructural interventions require cohesive and integrated approaches, necessitating long-term planning and consultative processes. For example under this project, safeguard readiness including securing design approval from pertinent agencies should have been pursued more effectively. Project readiness for physical works should be adequately considered in drawing up implementation schedules. Accurate and realistic cost estimates based on detailed technical design can reduce the risk of loan cancellations.

Project Number: 44037-014
Project Name: Shaanxi Weinan Luyang Integrated Saline Land Management Project
Report Date:
Lesson
Decisions to invest further in concentrated solar thermal power projects, which are capital intensive, critically depends on the feasibility of the location and assessment of environmental risks, as well as the comprehensive and well-justified identification, quantification, and valuation of economic benefits.

Project Number: 46058-002
Project Name: Qinghai Delingha Concentrated Solar Thermal Power Project
Report Date:
Lesson
A rational tariff policy is essential for improving the financial viability of a distribution utility. Two tariff revisions (in 2016 and 2021) helped improve the financial viability of Azerishiq's distribution-strengthening projects. Although the upgrade of distribution systems is still not fully financially viable, an improving financial internal rate of return (into positive territory) illustrates the benefits of lifting tariffs toward full cost recovery.

Project Number: 42401-014
Project Name: Power Distribution Enhancement Investment Program (Multitranche Financing Facility)
Report Date:
Lesson
The cost categories required to be reported in the audited program financial statements (APFS) need to align with the categorization at appraisal so as not to cause problems in reporting. PLN faced difficulty in estimating the financing charges during implementation at appraisal stage. In addition, PLN raised a concern on the disclosure provision regarding APFS due to confidentiality requirements. The cost categories reported in the APFS were not aligned with the categorization used at appraisal, due to which changes to reporting formats were needed.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
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Lesson
Shifts in the types of projects can affect the financing products that may be supported under the clean energy financing (CEFP) platform. At project design, the CEFP was planned to provide three types of financing products: entrusted loans, guarantee funds, and lease financing facilities. During implementation, only entrusted loans were utilized. The other two financing products were not used because of shifts in the types of projects which did not require guarantees and lease financing.

Project Number: 48452-004
Project Name: Shaanxi Accelerated Energy Efficiency and Environment Improvement Financing Project
Report Date:
Lesson
The mobilization of students has been a major factor that contributed to effective capacity utilization and to the success of the program. Mobilization is usually hindered by (i) the perception that skills training is inferior to general upper secondary and tertiary education, and (ii) the view that skills development is a pathway for the academically less-performing students. SImilarly, there is a huge need for training of trainers, and qualified trainers must be recruited to ensure the quality of training and to maintain the supply of competent technical trainers.

Project Number: 47334-002
Project Name: Supporting Kerala's Additional Skill Acquisition Program in Post-Basic Education
Report Date: