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Lesson
A well-designed and functioning project performance monitoring system (PPMS) is critical for the monitoring of project performance and collecting data for economic analyses (among other information). Given the data issues persistent in the Pacific e.g., availability and quality of data, careful thought on designing a comprehensive but implementable i.e., “fit for purpose” PPMS is imperative upon project teams. This can enable better data collection, which can facilitate better post-evaluation.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development
Report Date:
Lesson
The selection of appropriate project financing modality (through feasible project design) in line with country capacities is a crucial factor in achieving complex project objectives and overall project success. Availability of financing that is time-bound, such as multitranche financing facilities or sector lending puts the onus on the counterpart government to ensure project readiness from its side.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development
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
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
The program design and implementation benefited greatly from advisory support provided to the Department of Finance and Administration by the regional social protection TA funded by ADB in calibrating Social Protection Program measures. Financial and economic management, however, were hampered by gaps in statistics, notably on tax data.

Project Number: 54309-001
Project Name: Health Expenditure and Livelihoods Support Program
Report Date:
Lesson
The One ADB review mechanism that supported program and/or project processing under the COVID-19 Pandemic Response Option (CPRO) was effective in facilitating quick access by DMCs to emergency support from ADB. The CPRO policy and guidelines were still being developed while the program was under preparation, and managing changing internal guidance and expectations added significant pressure. Neverthelesss, program preparation efficiency gains from the One ADB review mechanism were widely experienced.

Project Number: 54309-001
Project Name: Health Expenditure and Livelihoods Support Program
Report Date:
Lesson
A design and monitoring framework can be an effective instrument to attain results only if it is properly shared with implementing agencies and provides clear performance targets with appropriate timelines, monitoring mechanisms, and baseline data. Sufficient resources and time should have been allocated for consultation with implementing agencies in determining program inputs, outputs, and outcomes, as well as in setting and monitoring performance targets.

Project Number: 33314-013
Project Name: Federated States of Micronesia: Private Sector Development Program
Report Date:
Lesson
Policy actions must be formulated in a manner that does not leave room for ambiguity or interpretation of supported policy principles. A large number of policy actions under PSDP were not sufficiently defined to ensure or help ascertain the achievement of meaningful results.

Project Number: 33314-013
Project Name: Federated States of Micronesia: Private Sector Development Program
Report Date:
Lesson
Public enterprise reform in the FSM requires creative approaches to involving the private sector in the management of public assets given limited private sector capacity and interest. The effort to reform and divest public enterprises has not been as successful as hoped. One reason is that in such a small and remote lower-income country with a weak private sector, there are few people with the capital or business experience to bid for or successfully manage such enterprises.

Project Number: 33314-013
Project Name: Federated States of Micronesia: Private Sector Development Program
Report Date:
Lesson
Ascertaining legislative support at both the national and state levels is an important aspect of determining project readiness in the FSM. The unexpected delays in obtaining national and state legislative authorization delayed the loan approval and loan effectiveness, each by 1 year, respectively. Reform momentum was lost during the long interval between appraisal and program inception.

Project Number: 33314-013
Project Name: Federated States of Micronesia: Private Sector Development Program
Report Date: