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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 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
Need for adequate advisory services to help prepare required legal and regulatory changes to speed up program implementation. The program also shows the benefits of integrated approaches to microfinance development support that promote capacity development of MFIs in conjunction with necessary reforms in the underlying policy environment.

Project Number: 33040-013, 33040-023
Project Name: Microfinance Systems Development Program [Loan 2000-2001-TAJ]
Report Date:
Lesson
Weak government commitment. Given the political environment and the likelihood that a significant lack of consensus might be a daily reality on this project, the design should never have been so complex, with four different subcomponents, leading to a much larger MFF expectation. Perhaps a lesson here is that to achieve early and committed buy-in to required reforms and institutional shake-up, smaller and simpler components could be tested through a small scale or project preparatory TAs, which may lead to visible and larger MFF commitments.

Project Number: 38405-013
Project Name: Mega City Development Project
Report Date:
Lesson
Counterpart funding and incentive issues in TA loans. Despite the challenges in project implementation, the project support unit (PSU) and local support unit (LSU) had utilized close to $4 million in counterpart funding, while ADB disbursed only 15% of the TA loan. As a result, the actual split between ADB and the government was 15:85, when the agreement was 70:30. Thus, a key lesson is that there should have been far greater oversight on the utilization of counterpart funds, as the ADB-financed expenditures and activities and overall progress of the TA loan lagged far behind.

Project Number: 38405-013
Project Name: Mega City Development Project
Report Date:
Lesson
Problematic shifting of priorities. Continuing problems with government approvals, and constant changes in focus, scope, and direction caused major delays. ADB noted a range of concerns over the continuing delays on the processing of the Project in its previous incarnation, the Karachi Mega City Development Program, after developing the loan proposal to the point of loan negotiations in May 2008.

Project Number: 38405-013
Project Name: Mega City Development Project
Report Date:
Lesson
Avoidance of challenging issues. At both government levels (the government of Sindh and City District Government of Karachi or CDGK), there was a systematic avoidance of exposure to and tackling of various governance and institutional issues, as well as reforms required to examine and correct these challenges. Analysis of the few project subcomponents completed illustrates that the government of Sindh and CDGK only implemented easy studies that did not and could not tackle major disputes or issues that might require serious reforms in Karachi.

Project Number: 38405-013
Project Name: Mega City Development Project
Report Date:
Lesson
Lessons from previous projects. Lessons from two older ADB urban sector loan projects to Karachi in 1986 and 1991, respectively, which were rated unsuccessful and partly successful, include the need for (i) greater attention to sustainability, (ii) enhanced project design based on sound assessments, (iii) careful consideration for institutional shortcomings of executing and implementing agencies, and (iv) greater efforts to address the financial insolvency problems of the Karachi local government bodies.

Project Number: 38405-013
Project Name: Mega City Development Project
Report Date:
Lesson
Before the project, microfinance was nearly absent in the rural areas of the CHT. The project introduced a relatively sustainable microfinance arrangement through local NGOs. Despite the existence of the other project providing grant assistance, the microfinance facilities under the ADB project are gradually expanding to meet demand in remote communities.

Project Number: 32467-013
Project Name: Chittagong Hill Tracts Rural Development Project
Report Date:
Lesson
The sustainability of several community development subprojects owned by beneficiary groups was considered an issue during implementation. However, except for a few specific technical support requirements, the beneficiary groups assumed responsibility for activities such as the maintenance of small irrigation and power tiller schemes. Besides, several group members also gained access to micro-credit through the project. The Palli Karma Shahayak Foundation (PKSF) or other NGOs may further expand their microenterprise activities in the CHT after the project.

Project Number: 32467-013
Project Name: Chittagong Hill Tracts Rural Development Project
Report Date:
Lesson
The rural roads improved under the project generally established all-weather connectivity between remote communities and growth-center markets and other important centers with economic, health, and educational facilities. Nongovernment organizations (NGOs) and other government service providers could also reach rural remote inhabitants more easily.

Project Number: 32467-013
Project Name: Chittagong Hill Tracts Rural Development Project
Report Date:
Lesson
When designing and implementing rural infrastructure in remote areas with indigenous populations as potential workers and beneficiaries, there must be a careful review of local habits and customs to understand how these can accommodate the common modalities of civil contracting. The original project schedule was too optimistic and did not leave enough time for careful review and adjustment. In such a case, a component that does not suit the needs of a specific target population could leave that population unserved or bypassed.

Project Number: 32467-013
Project Name: Chittagong Hill Tracts Rural Development Project
Report Date:
Lesson
The improvement of connectivity and access between rural and remote areas of the CHT, especially with the market centers, was crucial for development. The project directly and indirectly affected all aspects of rural life in the CHT. During the project completion review mission and earlier missions, villagers asked whether more livelihood projects would be provided in their area.

Project Number: 32467-013
Project Name: Chittagong Hill Tracts Rural Development Project
Report Date:
Lesson
The unilateral withdrawal of a relatively large amount of cofinancing by Danida (around 50% of the total amount allocated for the rural access component) after project approval considerably delayed implementation and created difficulties in meeting project objectives and targets. The cofinancing was unfortunately a condition of loan effectiveness. The project was declared effective in October 2002, after the cofinancing condition was declared void.

Project Number: 32467-013
Project Name: Chittagong Hill Tracts Rural Development Project
Report Date:
Lesson
The project was initiated and prepared in 1999-2000, only 2 years after the signing of the Peace Accord, ending 25 years of insurgency and instability. Many high-risk incidents during project implementation could therefore be expected. The executing and implementing agencies had just been established, and their institutional capacity to implement projects was still being developed and strengthened.

Project Number: 32467-013
Project Name: Chittagong Hill Tracts Rural Development Project
Report Date: