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Lesson
Provision of optimal environment for change: The project design included community and private sector participation in the delivery of urban services, supported by some concrete small-scale activities. However, the project did not provide clear direction and adequate resources to deliver these activities (para. 46). Flexibility is important in the design of complex loans, but for this flexibility to be used effectively, additional capacity, a guiding framework, and resources should be included in the sector loan, with supporting technical assistance to guide the use of the resources.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Addressing the fundamentals reforms upfront: Major governance issues of autonomy and incentives to perform, which plagued the key implementing agencies that were the urban service providers, were only captured piecemeal in the policy framework. This allowed these issues that were fundamental for the success of the project to be addressed (or not be addressed) during project implementation. The design also allowed major investment subprojects to be implemented without addressing these fundamental issues.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
The sequence of reforms in the policy matrix was such that all substantial results could be achieved only after the completion of second tranche actions. In addition, liberal assessment of compliance allowed the release of the first tranche without achieving much toward sustainable outputs. More result-oriented sequencing of policy actions for the first tranche could have achieved some sustainable improvements in social service delivery.

Project Number: 37218-013
Project Name: Balochistan Devolved Social Services Program
Report Date:
Lesson
Inclusive implementation arrangements: The PPTA also identified and consulted key stakeholders, including private sector developers, DHA, and the Cantonment Board�accepting their role in influencing project scope and cost. However, no formal agreement was signed with these stakeholders (para. 54). Formal arrangements with key stakeholders on the scope and cost- sharing arrangement should be part of the design and planning stage, to avoid delays and confusion at the project implementation stage.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Given provincial and district capacity limitations, a Program focusing on a single sector would have had a better chance of success. Sustained support in one sector can be less demanding for both the government and ADB. Multi-sector policy reform interventions involving governance reform are difficult to manage, and a new system of local political governance imposed by the federal government added further complications.

Project Number: 37218-013
Project Name: Balochistan Devolved Social Services Program
Report Date:
Lesson
Clarity of roles and responsibilities: The PPTA and the RRP identified overlap in administrative and geographic alignments of agencies such as WASA, town administrations, RDA, the Cantonment Board, and the CDG responsible for municipal and other urban functions (para. 55). The policy actions, PSC and PIRC established for the project were unable to address these gaps. Clarity of roles, and geographic, administrative, and sector alignment are prerequisites for effective urban governance and need to be addressed at the planning stage or should be part of project readiness checklist.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Capacity in the executing and implementing agencies was expected to be built through the accompanying TA loan. Program outputs like developing sector strategies, implementing expenditure tracking and service delivery surveys, training communities to manage and monitor social service delivery, and other outputs critical to achieving Program outcome depended on effective technical assistance (TA) loan administration. However, executing agency capacity to administer the TA loan was inadequate.

Project Number: 37218-013
Project Name: Balochistan Devolved Social Services Program
Report Date:
Lesson
Alignment with overall reforms: The project only supported implementation of reforms in the participating towns and WASA in line with PLGO 2001 and urban policy actions agreed with the government for the project (para. 53). Ownership and commitment to reforms deteriorated in general and project implementation was adversely affected. Although these risks were identified in the project design, no flexibility was built into the design to respond to these external factors.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Ensuring quality in complex reform oriented projects: The consultants under the loan were hired through QCBS. The staff costs in the bids were inadequate for quality staff. This hiring process allowed weak firms to bid low and win the bids, without fully appreciating the tasks ahead. The request for proposal for complex sector loans should either be quality-based or include a bid rejection option in case of underbidding in QCBS.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date: