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Lesson
The two-part approach of the TA project implementation was effective to flexibly accommodate changes in project environment and the government’s needs,and define the project scope for due diligence. Since CHP 5 construction was outside of direct control of the TA project, there were several occasions to change the technical specifications and subcomponent scope to accommodate the request from the CHP 5 concessionaire and the government.

Project Number: 46343-002
Project Name: Preparing the Energy Efficiency and Urban Environment Improvement Project
Report Date:
Lesson
Frequent change in the government remains a major risk to build up the energy sector pipeline in Mongolia. It was also a cause of delayed investment in baseload generation capacity development for power and heat supply in Ulaanbaatar and of much delayed response to improve air quality in the city. All requested projects in Mongolia would need to carefully factor in changes in government that directly impacts project processing especially for a project involving multiple domestic stakeholders and requiring lengthy preparation and processing time.

Project Number: 46343-002
Project Name: Preparing the Energy Efficiency and Urban Environment Improvement Project
Report Date:
Lesson
The presence of a champion in managing cross-departmental transaction is essential. The CHP 5 transaction was the first cross-departmental collaboration across the East Asia Department (EARD) (upstream development and associated facility), Private Sector Operations Department (finance to CHP 5 plant), and the Office of Public–Private Partnership and Office of the General Counsel (transaction advisory), which jointly provided assistance to facilitate the deal. Director General, EARD was the anchor for coordination across the teams and the government.

Project Number: 46343-002
Project Name: Preparing the Energy Efficiency and Urban Environment Improvement Project
Report Date:
Lesson
No additional lessons

Project Number: 29629
Project Name: Ulaanbaatar Heat Efficiency Project
Report Date:
Lesson
Thorough analysis of beneficiary preference, demand, and willingness to pay has to be conducted to ensure that preconceived notions of demand are verified, validated, and confirmed on the ground from the beneficiaries themselves. Very often project proponents from central government agencies have a different concept of needs and priorities from those at the field or local level. Local involvement in project conceptualization ensures greater project success, as there would be better ownership of project components and more accurate identification of needs of intended beneficiaries.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
The project had only limited, uneven success in raising tariffs, resulting in underfunding of operation and maintenance (O&M). This raises the need for wider institutional and policy reform. The support of ADB and other development partners has focused on helping the government to rebuild assets but has placed less emphasis on building the institutions and systems required to ensure these assets are maintained and used efficiently.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
Institutional weakness has been a key constraint to timely and efficient project execution and to long-term sustainability of newly created assets. Local capacity constraints were exacerbated by a centralized system of governance, management and decision making. Local infrastructure investments remain largely at the discretion of the central government and local officials lack the budgetary and human resources or skills to maintain assets and to effectively respond to the constituents' needs. The incentives and resources for local governments to strengthen services are limited.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
Certain lessons have already been incorporated in The Southeast Gobi project, which was approved in April 2010. In contrast with L1907, aimags have primary responsibility for the design and construction of infrastructure, including procurement and oversight of construction supervision. Design and build contracts aim to avoid technical problems at the design stage and shorten the period required for completion of works.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
Measurement of sector performance and progress in achieving urban economic development and improved service provision, including in those areas specifically related to the Millennium Development Goals and the National Development Strategy, is compromised by an absence of disaggregated data and a lack of clear and measurable indicators. The project did not include monitoring of a set of clear indicators for which data is available or can be readily obtained.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
Lessons learned indicate the need for (i) detailed project formulation during the project preparatory stage, (ii) adoption of simple and affordable technologies in construction and facility improvements, and (iii) parallel provision of institutional development and training during project implementation. It is vital that relevant institutions and beneficiaries at the local level are fully involved in all stages of project preparation, design and construction.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
The issue of tariffs is complicated by (i) the high cost of servicing in some areas, particularly the ger area settlements; and (ii) the government's willingness to subsidize service tariffs. The project supported a dialogue between ADB and the government around urban service reform, tariff issues, the application and targeting of government subsidies, and the development of more transparent, efficient and equitable mechanisms for directing such subsidies in public services.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date: