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CSV
Lesson
The need to be aware, during program design, of present or future laws that could impede reform. In this case, the passage of the Decentralization Law (2001) appears to have delayed the enactment of the investment law and to have led to the cancellation of the final loan tranche.

Project Number: 31644-013
Project Name: Industrial Competitiveness and Small and Medium Enterprise Development Program [Loan 1738-INO]
Report Date:
Lesson
One of these pertains to the linking of loan tranche releases with conditions for the passage of new laws. The passage of laws by the Parliament is normally not within the control of ADB or the government. Therefore, the question arises whether such conditions should continue to be imposed by ADB or, if such links are made, whether more time should be allowed for the laws to be passed. In this case, the delay in the passage of the investment law led to the cancellation of the final loan tranche, and thus to diminished efficiency in resource use.

Project Number: 31644-013
Project Name: Industrial Competitiveness and Small and Medium Enterprise Development Program [Loan 1738-INO]
Report Date:
Lesson
Crisis response operations can be more successful if the government has well- defined implementation arrangements and monitoring mechanisms to be successful, as was the case with the KCSL.

Project Number: 43300-013
Project Name: Countercyclical Support Loan
Report Date:
Lesson
The success of a financial crisis response is highly contingent on the government's ability to quickly put together its own anti-crisis plan. ADB intervention can be in the form of financing for the anti-crisis plan. In the case of the KCSL, the government already had its employment-generation program (EGP) in place, and was able to use the KCSL funds immediately to finance the EGP. However, since the KCSL is a budget support instrument, it is difficult to track and link the financing with specific development results (e.g., which public works project it funded).

Project Number: 43300-013
Project Name: Countercyclical Support Loan
Report Date:
Lesson
By not having any policy conditions other than the government's countercyclical expenditure programs, the Kazakhstan Countercyclical Support Loan (KCSL) was an effective and efficient instrument to respond to the financial crisis. While reforms to correct policy inconsistencies during crisis situations might be desirable, countries that are in the middle of financial crises would find it difficult to simultaneously undertake both crisis mitigation and reforms.

Project Number: 43300-013
Project Name: Countercyclical Support Loan
Report Date:
Lesson
ADB's business procedures for processing crisis response programs should be streamlined and abbreviated, as in the case of the Countercyclical Support Facility (CSF). This allows for crisis responses to be timely and prevent further deterioration of the economy.

Project Number: 43300-013
Project Name: Countercyclical Support Loan
Report Date:
Lesson
Delayed payments to contractors adversely affect implementation. ADB and the government should work together to ensure timely disbursements.

Project Number: 34234-013
Project Name: Rural Area Water Supply and Sanitation Sector Project
Report Date:
Lesson
Detailed design engineers and supervision and implementation consultants should be recruited in advance of project approval, to increase project readiness. The project implementation schedule should be realistic.

Project Number: 34234-013
Project Name: Rural Area Water Supply and Sanitation Sector Project
Report Date:
Lesson
Measures ensuring government commitment to implement institutional development and provide counterpart funds should be carefully reviewed and tied to the release of funds.

Project Number: 34234-013
Project Name: Rural Area Water Supply and Sanitation Sector Project
Report Date:
Lesson
Project targets should be achievable. Cost estimates should be based on thorough and professional assessments as part of a feasibility study, instead of aspirational or subjective considerations alone.

Project Number: 34234-013
Project Name: Rural Area Water Supply and Sanitation Sector Project
Report Date:
Lesson
No new lessons

Project Number: 33062-013
Project Name: Road Rehabilitation (Sector) Project (Loan 1798-INO)
Report Date:
Lesson
The other lesson learned was that this sort of vital reform measure, i.e., reorganizing the BPKP, should not have been pushed back as a condition for release of the second tranche. This appears to be a flaw in the program design. ADB should have insisted on reforming the BPKP step by step, making the government's agreement to reorganize the BPKP a condition for submitting the program for Board approval. Then government agreement to come up with a firm plan to reorganize the BPKP should have been made a condition for the release of the first tranche.

Project Number: 35144-013
Project Name: State Audit Reform Sector Development Program
Report Date:
Lesson
Implementing a reform program that involved cross-agency coordination and cooperation needed the country's highest political support, while this program was supported mainly by the Ministry of Finance (MOF) as part of its public financial management reform program. The MOF by itself appeared to lack support to push for downsizing the BPKP as contemplated under the program. In the end, the government appeared willing to sacrifice the second tranche in the interests of political expediency.

Project Number: 35144-013
Project Name: State Audit Reform Sector Development Program
Report Date:
Lesson
The major lesson learned from implementing the program is that it is generally difficult to implement reform measures that involve institutional shrinking and downsizing staff as in the case of the Badan Pengawasan Keuangan dan Pembangunan or Financial Supervisory and Development Board, now the government internal auditors (BPKP). The BPKP was a well-entrenched auditing institution with about 6,500 staff, about 5,000 of whom were spread in about 30 regional offices.

Project Number: 35144-013
Project Name: State Audit Reform Sector Development Program
Report Date:
Lesson
Poor design of and quality of completed civil works are linked with inadequate and unqualified supervision at the local project level. To eliminate these potential problems, the main implementing agency for a project should have overall responsibility for the engagement and monitoring of implementation of the services.

Project Number: 22045-013
Project Name: Six Universities Development and Rehabilitation in Indonesia
Report Date:
CSV