A careful institutional assessment and well-targeted capacity development program would help strengthen institutional capacity and promote sustainable management of urban services. There were discrepancies between the actual institutional arrangements and those stipulated in the loan and project agreements concerning responsibilities for investment and operations and maintenance in wastewater services and inland creek rehabilitation. These discrepancies made some of the loan covenants inoperable and caused the project's capacity building program to be mistargeted. Although institutional arrangements were realigned through a change in scope and implementation arrangements and subsequent amendments to the loan and project agreements, institutional strengthening objectives of the project were achieved to a lesser extent.
Fuzhou Environmental Improvement Project