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Lesson
Beneficiary contributions must be set at a level that reflects their capacity to pay, and it is considered inappropriate to overload farmers with higher costs where poverty remains an issue.

Project Number: 27245-013
Project Name: Southern Philippines Irrigation Sector Project
Report Date:
Lesson
Microfinance for housing should be encouraged. Housing microfinance is an important long-term development instrument. Microfinance institutions that have clienteles with good reputation as borrowers are best suited to implement such housing microfinance loans.

Project Number: 32499-013
Project Name: Development of Poor Urban Communities Sector Project
Report Date:
Lesson
A bigger role for nongovernment organizations (NGOs) can be envisaged. NGOs can borrow from the Developnment Bank of the Philippines if they have sufficient collateral at their disposal. However, few NGOs may have land available for housing, and may consequently rely on partnerships with other stakeholders, such as the local government units or the private sector, to access land for their projects.

Project Number: 32499-013
Project Name: Development of Poor Urban Communities Sector Project
Report Date:
Lesson
Private sector developers need to be motivated to prefinance and build social housing schemes. The private sector modality does work if established in tandem with a take-out mechanism from Home Development Mutual Fund (HDMF). While the private sector will only require short-term loans during the construction period (until a scheme is fully sold), it relies on a separate financing mechanism through HMDF or similar other arrangements.

Project Number: 32499-013
Project Name: Development of Poor Urban Communities Sector Project
Report Date:
Lesson
Local government units (LGUs) are important as facilitators of housing projects, but should not be overburdened with housing production or housing loans. LGU-driven projects are important and strategic for targeting the urban poor. LGUs can have a crucial role in provision of land, particularly land that has been proclaimed by the President of the Philippines for social housing purposes. However, there needs to be additional innovation to make the urban poor bankable.

Project Number: 32499-013
Project Name: Development of Poor Urban Communities Sector Project
Report Date:
Lesson
A program should have a well-defined exit strategy. This program was designed for implementation over 3 years with specified medium-term targets. It successfully closed upon completing subprogram 3. Without an exit strategy, the program risks reform fatigue and may encourage lax compliance with policy reforms. Introducing the post-program partnership framework during subprogram 3 proved to be effective in ensuring the sustainability of key reforms.

Project Number: 40538-013, 40538-023, 40538-033
Project Name: Development Policy Support Program Cluster
Report Date:
Lesson
If necessary, triggers should be supported by technical assistance (TA), as were the subprogram 2 and 3 public financial management (PFM) triggers. During the review of subprogram 2 policy triggers, the government and ADB identified gaps in government budget execution, internal audit and controls, and reporting, acerbated by the underdevelopment of the government's computerized accounts system. The government asked ADB for longer-term integrated TA to strengthen its PFM framework.

Project Number: 40538-013, 40538-023, 40538-033
Project Name: Development Policy Support Program Cluster
Report Date:
Lesson
Using numerical targets such as the tax revenue-to-gross domestic product (GDP) ratio as triggers, as initially done in subprogram 2, should be cautiously approached. Ambitious numerical targets that are not supported by a realistic reform timetable are likely to fail.

Project Number: 40538-013, 40538-023, 40538-033
Project Name: Development Policy Support Program Cluster
Report Date:
Lesson
A program cluster approach with prior expected actions enveloped by a medium-term framework with flexibility built into its design is an effective approach to supporting government reforms. It promotes continuous dialogue with the government on reforms and allows for program changes to effectively and efficiently respond to new or worsening risks to the economy and shifts in government policy priorities.

Project Number: 40538-013, 40538-023, 40538-033
Project Name: Development Policy Support Program Cluster
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
Decentralized projects call for a better PPMS. The scattered nature of investments throughout Mindanao created substantial management challenges of reporting and data management. The disparity and decentralized nature of the subprojects should have made it imperative that the project implement a web-based project performance monitoring system (PPMS) instead of employing traditional narrative reporting methods. A web-based PPMS would have facilitated management and supervision.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
More strategic and participatory planning is desirable. LGU chief executive officers (CEOs) often selected subprojects and made investment decisions on their own rather than on the basis of strategic local development plans. Although the project assisted some LGUs in formulating comprehensive land use plans, it did not succeed in ensuring that such plans are standard tools for investment planning despite an LBP requirement mandating that LGUs possess annual development plans to qualify for loan approval.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
A single executing agency could have simplified implementation. The report and recommendation of the president (RRP) and the loan agreement both established an unnecessary overlap of functions between LBP and the DILG. This could have been avoided through a more straightforward and functional separation of roles: LBP to implement Part A, and the DILG to limit its role to Part B. The existence of two executing agencies under the project should have been avoided.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
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: