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Lesson
Inaccurate projections can reduce the financial viability of projects and lead to unoptimal use of resources. At project appraisal, populations in Anaklia and Mestia were forecast to grow significantly with Anaklia’s planned port construction and tourism development of Mestia as an international ski resort and historic heritage site. As it turned out, towns in Georgia, including the three towns, witnessed out-migration and reduction in population in the last decade.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
The financial health of key project agencies needs to be thoroughly assessed at project preparation to determine their viability and identify the proper risk mitigation measures. Although a financial management assessment was conducted for the implementing agency, the United Water Supply Company of Georgia Limited Liability Company (UWSCG) during project preparation, the assessment only pointed to a need for training in accounting and reporting, preparing business plans, determining tariffs and procurement.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Lack of project readiness can seriously deter project implementation. The project completion review of tranche 1 indicates that the project was not ready for financing. During preparation of the project, the towns of Marneuli and Zugdidi were replaced by Kutaisi, Poti, and Ureki because of changing government priorities and the planned development of a seaside resort at Ureki. This necessitated a major change in scope that delayed project startup. Additional time was also needed for capacity building and to increase awareness of the project among the IA staff.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Considering there were some shortfalls in the road subproject detailed design work (such as drainage and ditch cover, sidewalk, and traffic safety provision), Municipal Development Fund (MDF) technical staff, local consultants and contractors need training on technology and workmanship in order to reach international standards. MDF and ADB need to ensure timely recruitment of construction supervision.

Project Number: 43171-013
Project Name: Municipal Services Development Project - Phase 2
Report Date:
Lesson
Proactive consultation with municipal governments by the Municipal Development Fund to ensure prompt selection of subprojects created a momentum that was maintained during project implementation and contributed to completion of physical works ahead of schedule.

Project Number: 43171-013
Project Name: Municipal Services Development Project - Phase 2
Report Date:
Lesson
The management information system proved to be an efficient means to provide all project information and data and helped Municipal Development Fund monitor implementation of the project in a timely manner. The same system should be used other projects.

Project Number: 43171-013
Project Name: Municipal Services Development Project - Phase 2
Report Date:
Lesson
Issues regarding legal and/or technical aspects of operation and maintenance (O&M) planning and funding, measures for cost recovery, tariff collection, and the metering system should be properly studied by consultants to mitigate the risk associated with inadequate O&M of project water supply system facilities.

Project Number: 43171-013
Project Name: Municipal Services Development Project - Phase 2
Report Date:
Lesson
On-the-job training activities alone are less effective than actual training courses in terms of capacity development. The capacity of the municipal governments remains weak; all lack a filing and database system to store their asset inventories, which will be essential for planning, improvement and operation and maintenance of municipal infrastructure and services.

Project Number: 43171-013
Project Name: Municipal Services Development Project - Phase 2
Report Date: