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Lesson
A well-thought-out project communications plan, backed by local capacity building, is needed for the successful implementation of projects in FSM. Information is often not widely shared in the FSM, and securing support for reforms can be particularly complex in this context. The Chuuk Public Utilities Corporation was able to effectively carry out its communications and outreach activities and secure support for reforms with the help of a well-defined operation, maintenance, and management contract. Project delays affected the momentum of activities in the other three states.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The ability of all participating utilities to successfully adopt and implement organizational changes to meet the project requirements should be assessed, with specialized external support in utility management provided as necessary.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The risks posed by conditions for loan effectiveness and disbursements should be carefully assessed and considered in the project timeline. Project implementation was delayed by about 18 months as the conditions for loan effectiveness required the passage of appropriation bills in the National Congress and at least three of four state legislatures. Such projects can provide the required pressure for positive legal changes but can lead to startup delays.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
A narrow sector and geographic focus is more suitable for projects in the Federated States of Micronesia (FSM). In FSM, multistate and multisector projects bring added complexity and interdependence between institutions that do not otherwise have incentives to support each other. Future projects should consider a narrower focus in terms of sector and geographic scope, allowing for less dispersed efforts on physical and nonphysical project targets. This approach has been adopted for the ongoing Chuuk Water Supply and Sanitation Project.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
Timelines for policy changes and major reforms should also be realistic, knowing that building understanding and ownership can take time and the passage of legislation can be a lengthy process. Two municipalities declined to participate in the project because of their objection to the transfer of ownership and management of assets to a state government agency.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
Lack of tariffs and insufficient operation and maintenance (O&M) budgets threaten the sustainability of water supply and sanitation facilities in FSM. The water supply and wastewater components are unlikely to be sustainable because of the unwillingness to charge for services, and the insufficiency of annual O&M budgets.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The political economy of the country as well as of the local areas where projects are to be sited needs to be thoroughly understood and considered in the design of projects. The project assumptions that institutional and financial reforms would be adopted within a reasonable time frame and that demand for the improved water supply services could be established in Kosrae state proved false. Project preparation could have supported a more thorough understanding of the political economy, and the scope based on a stronger rationale and expressed demand.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
To improve ownership, state governments should be closely involved in project monitoring and evaluation.

Project Number: 33312-013
Project Name: Basic Social Services Project
Report Date:
Lesson
Providing long-term technical assistance at the state level would be more appropriate to support long-term development, including human resource development and monitoring and quality control systems. Institutional capacity developments require gradual changes and long-term support at the local level would be more efficient.

Project Number: 33312-013
Project Name: Basic Social Services Project
Report Date:
Lesson
It is essential to include maintenance components for new systems and facility renovations to ensure the sustainability of project outputs. The project initiated several new monitoring systems and supported renovation of health and education facilities. Since it often takes time for staff to understand the usage of new systems and facilities, 6 to 12 months of maintenance services are required to support the gradual shift of maintenance responsibility to the national and state governments.

Project Number: 33312-013
Project Name: Basic Social Services Project
Report Date:
Lesson
Adequate consultation and participation at the state and community level during project design and scope change are essential for understanding the institutional capacity, and for identifying appropriate implementation arrangements and required technical assistance. Although most of the project activities were at state level, the project was designed to be managed at the national level. Consultations with all stakeholders at state or lower level during the design and preparation of scope changes would have been helpful to identify most appropriate activities and arrangements.

Project Number: 33312-013
Project Name: Basic Social Services Project
Report Date:
Lesson
Although the Federated States of Micronesia (FSM) government and ADB flexibly responded to the changes required as a result of second Compact, few activities were implemented during the first 5 years after the project was approved. To respond to such changes, long-term technical assistance on the ground and closer communication between local stakeholders and ADB is critical, through consultations and review missions.

Project Number: 33312-013
Project Name: Basic Social Services Project
Report Date: