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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 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 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
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
Key government policy changes need to be monitored for possible impacts on projects and project updates undertaken as necessary. Tranche 3 faced major resettlement challenges and experienced delays of up to 2.5 years beyond the initially approved loan closing date. This was because local authorities encountered difficulties in completing site clearance and subsequent compensation payments. Until the preparation of ADB’s project completion report, compensation payments have remained pending on (i) 3 subprojects because of

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program
Report Date:
Lesson
Overestimated project costs lead to unutilized loan amounts and wastage of commitment fees. At appraisal, the investment program was estimated to cost $920.0 million, comprising ADB loans of $730.0 million (79.4%) and government contributions of $190.0 million (20.6%). At completion, the program cost totaled $669.3 million, of which ADB provided $253.8 million (37.9%).

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program
Report Date:
Lesson
Within the context of promoting environmentally sustainable growth, it is worthwhile to identify and formulate projects that are environmentally positive rather than focusing on preventing negative environmental impacts. Such opportunities exist, especially in the agriculture, rural development, and environmental sector. Country programming missions could help identify these types of environmentally-positive projects.

Project Number: 45406-001
Project Name: Low Carbon Agricultural Support Project
Report Date:
Lesson
The use of a proven technology attractive to project participants can help ensure the attainment of development results. This project included two poorly prepared components—credit and technology transfer—one was not implemented at all and the other only achieved a portion of its targeted outputs. Having a tried and promising technology to promote is an important step toward project success.

Project Number: 45406-001
Project Name: Low Carbon Agricultural Support Project
Report Date:
Lesson
Research activities must be undertaken early in project implementation. Where research is needed to guide the introduction of new technologies, such research is better undertaken in advance of a project so that results can be incorporated in the project design. In this project, the 5-year project time frame was too short in undertaking research, evaluating results, and effecting replication. This time frame was further exacerbated by denying the participation of government-owned research institutes in the research program.

Project Number: 45406-001
Project Name: Low Carbon Agricultural Support Project
Report Date:
Lesson
Procurement should be exhaustive. Developing a procurement strategy with proper analysis of market availability, operating environment, including capacity assessments of executing and implementing agencies, and risk management will help the project achieve its intended results in a timely manner. Where a project requires participation of government-owned universities or research centers, attention should be paid at project appraisal to para. 1.13 (c) of ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).

Project Number: 45406-001
Project Name: Low Carbon Agricultural Support Project
Report Date: