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Lesson
The Project's financial charges during implementation (FCDI) were significantly over-estimated because the floating London interbank offered rate (LIBOR) dropped after the 2008 financial crisis and remained low through implementation. Prompt reallocation of the surplus for proper use can avoid loan proceeds cancellation.

Project Number: 40643-013
Project Name: Xinjiang Urban Transport and Environmental Improvement Project
Report Date:
Lesson
Comprehensive reassessment of implementation issues and timely adjustment of project scope and loan proceeds allocation can prevent delays in implementation and optimize the use of ADB financing, as this project has done.

Project Number: 40643-013
Project Name: Xinjiang Urban Transport and Environmental Improvement Project
Report Date:
Lesson
The potential close-down and reconstruction of the Erlangmiao WWTP was totally unanticipated. ADB was not notified of this matter until the project completion review in December 2014. This indicates the lack of thorough and serious policy dialogue with the executing agency. If WMG notified ADB early of its urban plan updates related to the activities (e.g. Erlangmiao WWTP in this case) under the project, such low effective subproject could have been avoided through a scope change.

Project Number: 37597-013
Project Name: Wuhan Wastewater and Stormwater Management Project
Report Date:
Lesson
The project cost overrun is another major lesson learnt. Regardless of common factors, such as Chinese yuan appreciation and raise of labor and material prices, inadequate project preparation and insufficient engineering design contributed directly to the project cost increase because they resulted in costs underestimate at appraisal and frequent contract variations during implementation.

Project Number: 37597-013
Project Name: Wuhan Wastewater and Stormwater Management Project
Report Date:
Lesson
The lessons from delayed construction of the Huangpu Road WWTP showed necessity of securing domestic approval in advance, prior to the loan effectiveness. If flooding control permission had been approved earlier, construction of the plant could have been completed on schedule and thus the overall project output could have been delivered completely. The lessons learned from procuring the design, supply, and installation contract for the Huangpu Road WWTP were meaningful for improving procurement efficiency in similar projects and contracts.

Project Number: 37597-013
Project Name: Wuhan Wastewater and Stormwater Management Project
Report Date:
Lesson
The project experienced significant delay in implementation and in delivering the project outputs. This was mainly caused by the construction delay of the Huangpu Road WWTP, which was completed in August 2015, 1.5 years after the loan closing.

Project Number: 37597-013
Project Name: Wuhan Wastewater and Stormwater Management Project
Report Date:
Lesson
Implementation Arrangements. The project management office serves a critical coordinating function in executing projects that involve several implementing agencies. The NPMO's (Nanjing project management office's) strong leadership and good communication skills proved to be crucial for the efficient implementation of the project. In addition, the establishment of databases and monitoring mechanisms by each implementing agency during the early stages of the project was very useful. Assurance of a good partnership among implementing and oversight agencies is essential.

Project Number: 37603-013
Project Name: Nanjing Qinhuai River Environmental Improvement Project
Report Date:
Lesson
Land Acquisition and Sludge Disposal. Potential land for use by the project was secured and confirmed at appraisal and confirmed before loan effectiveness. However, land issues related to sludge disposal still arose during implementation, resulting in the cancellation of Component E. Sensitivity in site selection, careful assessment of land acquisition issues, and consultation with stakeholders during preparation are therefore essential..

Project Number: 37603-013
Project Name: Nanjing Qinhuai River Environmental Improvement Project
Report Date:
Lesson
Operation and Maintenance (O&M). In Nanjing, management responsibilities for O&M of river systems, drainage systems, WWTPs (wastewater treatment plants), and sewerage systems were fragmented between Nanjing Qinhuai River Construction Company and Nanjing Municipal Water Company (under NCIC or Nanjing Urban Construction Investment Holding [Group] Company Limited), NDMD or Nanjing Drainage Management Department (under NMUMB or Nanjing Municipal Urban Management Bureau), water resources bureaus, and the district governments. This resulted in considerable confusion and inefficiency.

Project Number: 37603-013
Project Name: Nanjing Qinhuai River Environmental Improvement Project
Report Date:
Lesson
Wastewater Tariff Revision. NMG (Nanjing Municipal Government) should continue to regularly review the tariff level, monitor and ensure that the wastewater tariffs are capable of meeting full cost recovery, covering the O&M (operations and maintenance) costs, interest, depreciation, debt repayment, and a reasonable profit margin.

Project Number: 37603-013
Project Name: Nanjing Qinhuai River Environmental Improvement Project
Report Date:
Lesson
Flexibility in Project Design. Changes in the design of the project during implementation should be considered in order to achieve a better outcome. For instance, the cancellation of the Jiangxinzhou WWTP (wastewater treatment plant), because of the introduction of new technology to use the sludge to co-incinerate at a power plant, has provided a cleaner form of power generation and is good practice for recycling waste.

Project Number: 37603-013
Project Name: Nanjing Qinhuai River Environmental Improvement Project
Report Date:
Lesson
Loan Reallocation. To optimize the utilization of the loan, cost savings identified during implementation can be reallocated to other components during the midterm and final reviews. Under the project, NMG (Nanjing Municipal Government) was able to reallocate the proceeds from the cancellation of component E to the other components, resulting in optimum utilization of loan proceeds.

Project Number: 37603-013
Project Name: Nanjing Qinhuai River Environmental Improvement Project
Report Date:
Lesson
Extensive, participatory consultations were conducted during project design and implementation. The needs and requirements of the beneficiaries and affected people, mostly ethnic minority groups, were incorporated into the design. As ADB's first loan for urban development in XUAR, the project prioritized promoting inclusive growth and sustainable development in the region through introducing a new urban development perspective, which addressed social benefits, environmental protection, and public participation.

Project Number: 39228-033
Project Name: Xinjiang Municipal Infrastructure and Environmental Improvement Project
Report Date:
Lesson
The estimate of financing charges during implementation, $18.1 million and capitalized in the ADB loan, was too large compared to the actual interest during construction of $1.9 million. The large surplus could result in loan proceeds cancellation if no proper usage could be found before project completion.

Project Number: 39228-033
Project Name: Xinjiang Municipal Infrastructure and Environmental Improvement Project
Report Date:
Lesson
The project implementation arrangements were effective. The Xinjiang PMO executed clear division of responsibilities among different institutions. Through coordination efforts of Xinjiang Housing and Urban-Rural Development Department, close communications were maintained and issues were solved quickly.

Project Number: 39228-033
Project Name: Xinjiang Municipal Infrastructure and Environmental Improvement Project
Report Date: