Country context

Unforeseeable changes in the regulatory framework introduced after project approval can result in changes in project design and scope. In this case, it prompted lengthy discussions that ended up with the cancellation of one output. The experience needs to be considered for projects that plan to address complex issues with multisectoral involvement in countries like Mongolia that are still transitioning and frequently introduce changes in the existing regulations.

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.

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.

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.

The program has helped strengthen ADB’s role as a trusted partner and created a positive experience for the government to strengthen its relations with development partners. The loan provided international funds that have helped address the government’s objective to reduce borrowing in the domestic market and have helped ensure liquidity in Thailand’s private sector. The program’s accompanying technical assistance provided the government with value-added policy dialogue and technical assistance to help address the government’s knowledge needs as they evolved through the crisis.

The crisis amplified the adverse, preexisting, and self-reinforcing relationship between public health and economic outcomes. This relationship should remain at the forefront of ADB’s engagement with Indonesia. COVID-19 takes a higher toll on individuals who suffer from stunting—a disease that is prevalent in Indonesia and closely associated with poverty.

Indonesia needs better interoperability among the tiers of its government. In relation to public health, the effectiveness of the government’s initial response to the pandemic was limited by conflicting approaches. The lack of coordination within government; as evidenced particularly by conflicting public messages around social distancing especially in the early stages of the pandemic. These coordination issues were more apparent in the vertical relations between tiers of government than at inter-ministerial levels.

Avoid assuming policy changes when setting targets in a crisis. The program design assumed that coordination of all government-subsidized employment would be transferred to the employment service centers established in each local government under the Prime Minister Employment Program (PMEP). Because of the impact of the crisis, this transfer did not happen and the PMEP was unable to achieve the target. A target set during a crisis should not assume a policy change.

Quick and flexible budget support is essential during times of crisis. The timely availability of the ADB CPRO support greatly contributed to mitigating the impact of the pandemic, particularly for low-income countries and countries in vulnerable situations. Availability of such an instrument is highly relevant for a country in times of crisis.

ADB's long standing engagement in the country, especially in the health and public finance sectors and in fiscal and macroeconomic policy developed its readiness to respond effectively and quickly. The One ADB approach and the application of the streamlined business processes under the CPRO policy also worked well for Mongolia, as it clearly demonstrated that cutting several bureaucratic layers in the approval process does not necessarily compromise the quality of the end product.