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Lesson
The strategic oversight of funds is enhanced when their governance structure includes some form of third-party engagement. The original Board paper outlined the governance structure of CCF and included at its apex ADB and external financing partners, whose function would be to provide strategic direction to the CCF and to meet ADB for annual consultations and to review progress, administration, and the annual work program. Since there are no external financing partners, ADB sits alone at the apex of the governance structure.

Project Number: No PN
Project Name: Climate Change Fund, 2008–2019
Report Date:
Lesson
Technical assistance with a narrow focus, immediate policy relevance, and carried out with national champions with financial and/or planning authority was key to the successful integration of climate technologies in country investment plans. Careful and realistic planning is required for the production and dissemination of outputs, since this involves multiple institutions within a given timeframe.

Project Number: No PN
Project Name: Climate Change Fund, 2008–2019
Report Date:
Lesson
Institutional capacity development on climate change in ADB’s DMCs requires long-term engagement. Just over half of CCF resources went toward capacity development. The lack of basic climate data, technical expertise, and qualified local staff in many DMCs means that some processes, especially baseline studies, vulnerability assessments, and cost–benefit analysis of mitigation and adaptation measures, have to be adjusted to reflect realities on the ground.

Project Number: No PN
Project Name: Climate Change Fund, 2008–2019
Report Date:
Lesson
Clear delineation of country activities with transparent funding allocations in cross-border RCI TA projects involving several countries helps smooth implementation and increase project success. The transaction costs in cross-border RCI TA projects tend to be high both in terms of resources and the time required to achieve agreement among stakeholders in the participating countries. It takes much longer to negotiate and agree to a common proposal in a cross-border RCI TA project than in a usual TA project.

Project Number: No PN
Project Name: Regional Cooperation and Integration Fund, 2007–2019
Report Date:
Lesson
Active engagement of national stakeholders and ADB resident missions from the outset helps improve ownership and project success. The likelihood of success is greater when an RCIF TA project is designed with genuine consultation with concerned line ministries, national agencies, the private sector (if relevant), and ADB resident missions. Active engagement of in-country stakeholders helps ADB to identify binding constraints and solutions, and to internalize implementation challenges at the TA design stage. This makes clear the roles and responsibilities of each stakeholder.

Project Number: No PN
Project Name: Regional Cooperation and Integration Fund, 2007–2019
Report Date:
Lesson
Reassessment and careful choice of independent marker operator. The government should look carefully again at the need for an independent market operator (IMO). As far as the evaluation could ascertain, use of the Philippine Electricity Market Corporation (PEMC), which is not an IMO, has had no obvious adverse repercussions to date. This finding suggests that it could be counterproductive to force the pace of change to establish the IMO that the Electric Power Industry Reform Act and project design called for, and the government undertook to create but did not.

Project Number: 36018-013
Project Name: Electricity Market and Transmission Development Project
Report Date:
Lesson
Time needed to deal with rights-of-way. Projects such as this one need to allow sufficient time to assess and address the issues in acquiring right-of-way. The project’s compensation and resettlement problems could have been resolved more quickly if those affected had been made better aware of the property valuation process and the impact the project would have on them. The project could have established a mechanism to deal with disputes, and local government institutions could have been engaged to help resolve them.

Project Number: 36018-013
Project Name: Electricity Market and Transmission Development 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
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
NAPC’s information system capacity should have been assessed earlier. An assessment of NAPC’s information system should have been made at the formulation stage. Policy action and TA could have been incorporated in the program design to achieve an effective and functioning information system.

Project Number: 38579-013
Project Name: Microfinance Development Program
Report Date: