Urban Services Improvement Investment Program - Tranche 1

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. Specifically, an in-depth assessment of cost recovery options and/or measures to secure funds for O&M, for debt servicing, and meeting covenanted performance targets, can help ensure a project's sustainability.