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Lesson
Revenue-earning subprojects were favored. Many of the implemented subprojects e.g. public markets, public transport terminals, and water supply schemes are good revenue earners or have the potential to be good revenue earners. These subprojects provide essential economic and environmental benefits that will have long-lasting positive impacts. It is expected that most of these investments will be sustainable and will lead to further related investments to expand infrastructure networks.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
The value of capacity development. Although not easily measurable in terms of monetary impacts and outcomes, capacity development support made an important contribution to the project. The investment of $6 million through an Nordic Development Fund (NDF) loan to the DILG was an unprecedented engagement in favor of LGUs; this amount was augmented with a substantial in-kind operational counterpart contribution by the DILG.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Participating local government units (LGUs) obtained several benefits. The project generated strong interest among LGUs. Most LGUs appreciated the loan terms (particularly the fixed long-term nature of ADB funds) and the assistance and services provided by the Land Bank of the Philippines (LBP) and the Department of Interior and Local Government (DILG). LGUs also appreciated receiving assistance in modernized governance systems, including assistance in rationalized planning (comprehensive development plans), property tax administration, and revenue enhancement.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
LGUs see banking requirements as too tedious. Despite various introductory workshops, some LGUs kept complaining about the documentation requirements. The assistance of DILG and its consultants has helped ease their concerns, but LGUs reported that at times they felt like they were being forced into compliance with procedures that other official development assistance (ODA) providers (like Japan Bank for International Cooperation) had already relaxed. Both ADB and LBP procedures could have been simplified to better bond LGU customers with the project.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Capital grants are attractive, but should only be given as a reward for good performance. In the first years of the project the DILG offered capital grants for eligible subprojects. These were discontinued in 2005 after the cancellation of the DILG's grant source. After that, many LGUs stopped subproject preparation work because of the (perceived high) costs of ADB loans. The commitment and buy-in of LGUs was weak at times. Many LGUs were more oriented toward grants than the lending facility.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
A credit line operation can be efficiently conducted through a sound operating financial institution focused on sector development. Small Business Guarantee and Finance Corporation's (SB Corporation) healthy institutional and operational structure (supported by the associated technical assistance or TA), coupled with clear, effective laws , have helped it conduct lending operations efficiently and effectively. In other words, vibrant small and medium-sized enterprise (SME) lending operations must be supported by effective policy and institutional arrangements.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
The design of the Power Sector Development Program (PSDP) took into account the lessons learned from previous ADB operations in the power sector. In particular, the preparation of the PSDP benefited from the sector assistance program evaluation of ADB's assistance to the Philippine power sector. On this basis, the PSDP envisaged two subprograms with 2-year time horizons, covering 2007- 2008 and tentatively 2009-2010. Target dates were set only for subprogram 1 to allow flexibility in the overall implementation schedule.

Project Number: 30207-023
Project Name: Power Sector Development Program
Report Date:
Lesson
Greater attention should have been given to the impact of the project on the budget resources of the province.

Project Number: 24076-013
Project Name: Bukidnon Integrated Area Development Project
Report Date:
Lesson
More resources should have been allocated prior to appraisal for the preparation of the feasibility study to verify that the project was both technically and economically viable. The small-scale feasibility study did not provide sufficient time or resources to collect important design data such as rainfall records, land tenure status, crop budgets (including realistic figures on crop inputs), yields, and prices for the with- and without-project situations. This additional information would have enabled the appraisal report to provide a more informed assessment of major project risks.

Project Number: 24076-013
Project Name: Bukidnon Integrated Area Development Project
Report Date:
Lesson
Procedures for project implementation at the local level need to be established at an early stage. More attention needs to be given to establishing an ongoing dialogue among ADB, national-level government agencies, and the provincial- level executing agency (EA) and implementing agencies (IAs) on the documentation required for the smooth flow of funds. More attention should have been given to capacity building of the EA and IAs in the early stages of project implementation.

Project Number: 24076-013
Project Name: Bukidnon Integrated Area Development Project
Report Date:
Lesson
Greater care should be taken when recommending the introduction of new technology such as drip irrigation, which had not been practiced on a large scale in the Philippines.

Project Number: 24076-013
Project Name: Bukidnon Integrated Area Development Project
Report Date:
Lesson
The water availability for the irrigation schemes appears to have been underestimated at the design stage. In particular, it was found that the Sagayon communal irrigation system or CIS (if implemented) would have been able to provide irrigation water to less than 35% of the area planned.

Project Number: 24076-013
Project Name: Bukidnon Integrated Area Development Project
Report Date:
Lesson
The high cost of providing water to crops, such as tomatoes, using drip irrigation can only be justified in situations where there is assurance of high yields and prices for farm produce. In the project design, insufficient attention was paid to ensuring that the farmers would be able to secure the resources to fund the purchase of high levels of farm inputs or that the marketing arrangements would remain in place for them to obtain high prices.

Project Number: 24076-013
Project Name: Bukidnon Integrated Area Development Project
Report Date:
Lesson
The project should have supported a detailed market study to identify the demand for various high-value crops in different markets at various times of the year. This information could have been made available to farmers to guide them in their timing and choice of planting different crops. A market information system, linking farmers with major buyers for their commodities, could also have been provided to ensure that farmers receive the best prices for their crops.

Project Number: 24076-013
Project Name: Bukidnon Integrated Area Development Project
Report Date:
Lesson
The feasibility study should have included a detailed value-chain analysis to trace the flow of produce from the farm to its final use and to identify all risks involved at different stages. Effective, feasible remedies should be recommended at each stage. A critical oversight in assessing risks was linking the investment project to the purchase of tomatoes by the tomato-processing factory.

Project Number: 24076-013
Project Name: Bukidnon Integrated Area Development Project
Report Date: