Ensuring that an acceptable cost-sharing arrangement is in place at the outset, prior to project launch, can help minimize project risks. The rural infrastructure component comprising 80% of total actual project cost was not achieved largely as the LGUs were unable to raise the required counterpart contributions. Moreover, it is essential that appropriate due diligence and risk assessment are undertaken and that risk mitigation measures concerning the financial capability of participating local governments are identified at the outset. The midterm review should be used to make course corrections.
Agrarian Reform Communities Project II