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Lesson
A single executing agency could have simplified implementation. The report and recommendation of the president (RRP) and the loan agreement both established an unnecessary overlap of functions between LBP and the DILG. This could have been avoided through a more straightforward and functional separation of roles: LBP to implement Part A, and the DILG to limit its role to Part B. The existence of two executing agencies under the project should have been avoided.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
The value of capacity development. Although not easily measurable in terms of monetary impacts and outcomes, capacity development support made an important contribution to the project. The investment of $6 million through an Nordic Development Fund (NDF) loan to the DILG was an unprecedented engagement in favor of LGUs; this amount was augmented with a substantial in-kind operational counterpart contribution by the DILG.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
LGUs see banking requirements as too tedious. Despite various introductory workshops, some LGUs kept complaining about the documentation requirements. The assistance of DILG and its consultants has helped ease their concerns, but LGUs reported that at times they felt like they were being forced into compliance with procedures that other official development assistance (ODA) providers (like Japan Bank for International Cooperation) had already relaxed. Both ADB and LBP procedures could have been simplified to better bond LGU customers with the project.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Capital grants are attractive, but should only be given as a reward for good performance. In the first years of the project the DILG offered capital grants for eligible subprojects. These were discontinued in 2005 after the cancellation of the DILG's grant source. After that, many LGUs stopped subproject preparation work because of the (perceived high) costs of ADB loans. The commitment and buy-in of LGUs was weak at times. Many LGUs were more oriented toward grants than the lending facility.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Decentralized projects call for a better PPMS. The scattered nature of investments throughout Mindanao created substantial management challenges of reporting and data management. The disparity and decentralized nature of the subprojects should have made it imperative that the project implement a web-based project performance monitoring system (PPMS) instead of employing traditional narrative reporting methods. A web-based PPMS would have facilitated management and supervision.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
More strategic and participatory planning is desirable. LGU chief executive officers (CEOs) often selected subprojects and made investment decisions on their own rather than on the basis of strategic local development plans. Although the project assisted some LGUs in formulating comprehensive land use plans, it did not succeed in ensuring that such plans are standard tools for investment planning despite an LBP requirement mandating that LGUs possess annual development plans to qualify for loan approval.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Revenue-earning subprojects were favored. Many of the implemented subprojects e.g. public markets, public transport terminals, and water supply schemes are good revenue earners or have the potential to be good revenue earners. These subprojects provide essential economic and environmental benefits that will have long-lasting positive impacts. It is expected that most of these investments will be sustainable and will lead to further related investments to expand infrastructure networks.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Participating local government units (LGUs) obtained several benefits. The project generated strong interest among LGUs. Most LGUs appreciated the loan terms (particularly the fixed long-term nature of ADB funds) and the assistance and services provided by the Land Bank of the Philippines (LBP) and the Department of Interior and Local Government (DILG). LGUs also appreciated receiving assistance in modernized governance systems, including assistance in rationalized planning (comprehensive development plans), property tax administration, and revenue enhancement.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Certain lessons have already been incorporated in The Southeast Gobi project, which was approved in April 2010. In contrast with L1907, aimags have primary responsibility for the design and construction of infrastructure, including procurement and oversight of construction supervision. Design and build contracts aim to avoid technical problems at the design stage and shorten the period required for completion of works.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
Measurement of sector performance and progress in achieving urban economic development and improved service provision, including in those areas specifically related to the Millennium Development Goals and the National Development Strategy, is compromised by an absence of disaggregated data and a lack of clear and measurable indicators. The project did not include monitoring of a set of clear indicators for which data is available or can be readily obtained.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
Lessons learned indicate the need for (i) detailed project formulation during the project preparatory stage, (ii) adoption of simple and affordable technologies in construction and facility improvements, and (iii) parallel provision of institutional development and training during project implementation. It is vital that relevant institutions and beneficiaries at the local level are fully involved in all stages of project preparation, design and construction.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
The issue of tariffs is complicated by (i) the high cost of servicing in some areas, particularly the ger area settlements; and (ii) the government's willingness to subsidize service tariffs. The project supported a dialogue between ADB and the government around urban service reform, tariff issues, the application and targeting of government subsidies, and the development of more transparent, efficient and equitable mechanisms for directing such subsidies in public services.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
The project had only limited, uneven success in raising tariffs, resulting in underfunding of operation and maintenance (O&M). This raises the need for wider institutional and policy reform. The support of ADB and other development partners has focused on helping the government to rebuild assets but has placed less emphasis on building the institutions and systems required to ensure these assets are maintained and used efficiently.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
Institutional weakness has been a key constraint to timely and efficient project execution and to long-term sustainability of newly created assets. Local capacity constraints were exacerbated by a centralized system of governance, management and decision making. Local infrastructure investments remain largely at the discretion of the central government and local officials lack the budgetary and human resources or skills to maintain assets and to effectively respond to the constituents' needs. The incentives and resources for local governments to strengthen services are limited.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
No new lessons

Project Number: 30451-013
Project Name: Water Supply and Sanitation Sector Project
Report Date:
CSV