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Lesson
Carefully assess effective demand for new instruments. For projects where similar models do not exist in the local market, more exhaustive studies and analyses of the demand and willingness to pay for guarantees covering SME exposure should take place.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
Better due diligence of financial intermediaries is required. ADB did not adequately assess the risk rating process of SBC or do enough work to understand its processes and procedures. A better understanding of SBC would have enabled ADB to assume more decision-making responsibility on the implementation of the facility. In addition, ADB should have undertaken due diligence of other potential PFIs at appraisal.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
Underestimating the impact of staff changes. PSOD preferred to assume financial intermediary risk rather than risk associated with SMEs, which contributed to the delay in raising the credit limit to URC and the selection of new PFIs. ADB staff changes at the project officer level confused SBC and contributed to the lack of continuity and consistency of efforts by ADB.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
There has neither been a follow-up project in the Philippines, nor has ADB financed a similar project elsewhere in the Asia Pacific region. The issue of taking on SME risk against that of the financial intermediary needs resolution before its further application. The PCG facility could potentially be adopted in a number of ADB’s developing member countries, but further work is required to adequately measure and assess the risk-return benefits of the instrument for stakeholders.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
Pricing needs to reflect market demand. The formal price change from ADB came too late to make a difference, since by then the price waivers had been granted. Likewise the first loss provision outlined in the RRP was dropped from the guarantee agreement between ADB and SBC.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
An adequate pipeline is needed. More care is needed in establishing a pipeline of PFIs. Due diligence was weak, preventing the participation of more banks before approval or immediately afterwards. Given more participants, the volume of guarantees would have increased and a wider variety of SMEs could have taken part. More exhaustive due diligence is needed in the future, especially in identifying and assessing PFIs. Poor monitoring and supervision of the project by ADB contributed to the low utilization of the facility.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
Need to proactively monitor facility utilization. The need for effective monitoring was stressed in the RRP, but it was not carried our satisfactorily. Monitoring facility utilization was necessary to guide restructuring, realignment, and modifications, and, where required, to cancel allocations so ADB capital could be deployed more efficiently. ADB originally expected that over time, the PCG facility would allow PFIs to become familiar with SME risks and provide guarantees for a wider range of instruments, which would have prompted more PFIs to participate.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
No additional lessons

Project Number: 30308-013
Project Name: Pasig River Environmental Management and Rehabilitation Sector Development Program
Report Date:
Lesson
Because the government had already purchased most of the housing prior to ADB loan approval, it could not be financed by the loan. ADB funds were therefore directed toward facilities. If ADB had not been involved in the project, the host communities would have received these community facilities much later and they would probably have been of a lower quality.

Project Number: 30308-013
Project Name: Pasig River Environmental Management and Rehabilitation Sector Development Program
Report Date:
Lesson
The technical assistance contributed substantially to achieving the policy reforms envisaged under the policy loan, but longer-term and more focused assistance will be required since: (i) as a new agency, the PRRC has limited capacity to drive policy reforms; (ii) policy change requires skills, effective institutional incentives and culture change; (iii) the program is ambitious and multi-faceted, encompassing a wide range of stakeholders with a variety of interests, not necessarily linked to the policy agenda.

Project Number: 30308-013
Project Name: Pasig River Environmental Management and Rehabilitation Sector Development Program
Report Date:
Lesson
The program assumed that by implementing the policy framework the government would have the tools and capacity to implement the full Pasig River Development Plan (PRDP), leading to the overall objective of improving the Pasig River water quality to class C level by 2014. However, the outputs of the policy loan covered only part of the implementation activities of the PRDP, and therefore it should have been clear from the start that the overall objective was not attainable.

Project Number: 30308-013
Project Name: Pasig River Environmental Management and Rehabilitation Sector Development Program
Report Date:
Lesson
The program required the cooperation of a large number of government agencies, while responsibility for implementation was given to the newly established Pasig River Rehabilitation Commission, without a well-established mandate or political influence. Without high-level political support, coordination became difficult and program outcomes were not achieved. When the responsibility for project implementation was delegated to sector agencies, it became more effective.

Project Number: 30308-013
Project Name: Pasig River Environmental Management and Rehabilitation Sector Development Program
Report Date:
Lesson
The program was overly ambitious in its scope and in its implementation structure. Only after modification of the scope and implementation arrangements was progress made. This could have been avoided, had a proper risk assessment and risk mitigation plan been prepared, based on the lessons learned from the previous program. Although the Pasig River Development Plan provided a good framework for the implementation of environmental improvement projects, more and longer-term assistance is required to establish the institutional setting for its effective implementation.

Project Number: 30308-013
Project Name: Pasig River Environmental Management and Rehabilitation Sector Development Program
Report Date: