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Lesson
The need to lay down a firm legal, regulatory, and supervisory foundation prior to embarking on promotion of financing institutions, such as SCCs. In this case, ADB attempted to establish the regulatory structure in parallel to project implementation, which did not work well. The two activities should have been better prepared, and sequenced as separate projects.

Project Number: 28201-013
Project Name: Rural Finance Project [Loan 1848-MON]
Report Date:
Lesson
The need to enhance the capacity of ADB staff to quickly assess changing project circumstances and adjust project parameters to ensure greater use of ADB loan funds and better attainment of project objectives. The PCR identified some other important lessons.

Project Number: 28201-013
Project Name: Rural Finance Project [Loan 1848-MON]
Report Date:
Lesson
The need for start-up TA to set the stage for effective project implementation as part of the loan covenant, establish the PCUs and/or PIUs, and ensure that a realistic implementation arrangement is put in place, even if it means revising the project implementation design, drafting a management operation manual, assisting in the opening of imprest accounts, training project staff on ADB procurement and disbursement procedures and reporting requirements, and initiating the preparation of procurement and disbursement documents;

Project Number: 30210-013
Project Name: Reproductive Health Project [Loan 1900(SF)-PAK]
Report Date:
Lesson
The need for more frequent review missions, probably with an appropriate consultant/advisor on board, in the early years of implementation and for as long as project implementation is deemed off track; and

Project Number: 30210-013
Project Name: Reproductive Health Project [Loan 1900(SF)-PAK]
Report Date:
Lesson
The need to take immediate action to scale down project costs, and/or cancel part of the corresponding loan, when it becomes apparent that the government is unable or unwilling to put up the necessary counterpart funds. While it is important to correctly and objectively assess implementation constraints and implementation capacity, countries with serious development needs and weak institutional capacity should be assisted with building up this capacity as part of project design.

Project Number: 30210-013
Project Name: Reproductive Health Project [Loan 1900(SF)-PAK]
Report Date:
Lesson
No new lessons

Project Number: 29567-013
Project Name: Road Rehabilitation Project [Loan 1657-UZB]
Report Date:
Lesson
The project supported reforms only in the 24 participating tehsil municipal administrations (TMAs). The provincial government was expected to undertake reforms and address capacity gaps in all the other TMAs (52 in all). This arrangement seriously isolated the reform process. Sector loan projects should assess the political will, capacity, and incentives related to policy actions at all levels before building the support and incentives mechanism for reforms.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
The policy reforms agreed on at appraisal were overshadowed by the broader reform agenda introduced under local government ordinance (LGO) 2001 before project approval. Where major changes occur in the external environment of projects before ADB approval, it is more efficient to revise the project design up front rather than postpone the major adjustments.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
The project design was based on the assessment of seven sample TMAs and assumptions related to support for LGO 2001 from other sources to address capacity issues. The basis of the capacity assessment was seriously compromised during implementation. The project design did not have enough flexibility and depth to fill these capacity gaps, which would have required major changes in institutional arrangements and additional funding, a possibility that was avoided during implementation.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
There was a 3-year gap between the project preparatory technical assistance (PPTA) evaluations (in the last quarter of 1999) and the start (effectiveness) of the project (in the last quarter of 2002). Most structural and financial management plans, base maps, and priority subprojects therefore had to be reappraised at the start of the project, further delaying the project and straining limited capacity. To keep evaluations and project designs relevant, the time between project preparation and start up should not exceed 1 year.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
The project did not provide market-based salaries. Good staff was therefore hard to retain and turnover was high. This was a major reason for project failure. The overall cost implications of paying professional managers market-based salaries are marginal, especially when the substantial impact of weak capacities on project output and outcomes is considered, as this project demonstrated.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
The project design offered flexibility in developing models for community and private sector participation in the delivery of urban services, without providing a clear framework or adequate resources for these activities. Flexibility is important in the design of sector loans, but for this flexibility to be effectively used, additional capacity, a guiding framework, and resources should be included in the sector loan, with supporting technical assistance for project administration to guide the use of the resources.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
The project schedule was unrealistic for a complex project that relied heavily on existing capacity and several up-front conditions before the subproject investments. The scheduling of complex sector and policy loan projects has to be improved and streamlined on the basis of actual implementation experience.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
A major reason for the delay in project start-up was the variance between the report and recomendations of the president (RRP) and the government's PC-1 planning document. Draft RRPs and PC-1s for a project should be shared between ADB and the borrower well before loan approval.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date:
Lesson
The consultants under the loan were hired through quality- and cost-based selectio (QCBS). The staff remuneration in the bids was inadequate for good-quality staff. The level of effort and the skill set specified in the request for proposal (RFP) also did not match the complexity of the assignment. Similar issues encumbered the RFP for the nongovernment organizations (NGOs), allowing generally weak firms to submit bids that could not fully appreciate the tasks ahead.

Project Number: 27182-013
Project Name: North-West Frontier Province Urban Development Sector Project
Report Date: