Due diligence should be exercised not only in terms of technical factors but institutional, social, financial, and even political factors. While most if not all projects have excellent and even noble intentions and objectives and are extremely relevant to existing problems in the countries they are proposed for, these projects have to be realistic and must be designed considering the inherent problems and issues pertaining to the sector, country, or areas where they will be implemented. Due prudence must be exercised in expecting institutions to perform beyond what they are capable of and have proven capable of. Projects that require continuing operation and maintenance must have a stable cost recovery mechanism to ensure sustainability. There are two elements to this: beneficiaries’ willingness and ability to pay, and the institutions’ capability to impose and collect tariff.
Provincial Towns Water Supply and Sanitation Project