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Lesson
The project became effective on 7 January 2004, nearly 1 year after the group company was registered with the HMG’s Commercial and Industrial Bureau on 24 January 2003. Close attention should have been given to revising certain project covenants to ensure that the HMG could continue to follow up on some aspects of water pricing.

Project Number: 33177-013
Project Name: Harbin Water Supply Project [Loan 1995-PRC]
Report Date:
Lesson
While price setting in a tightly regulated market is often an act of balancing a large number of concerns, it is important to give due consideration to the long-term sustainability of the water utility, including investment in its modernization and expansion. If tariff income falls short of requirements (assuming normative operational efficiencies), government support is required.

Project Number: 33177-013
Project Name: Harbin Water Supply Project [Loan 1995-PRC]
Report Date:
Lesson
The government recognizes that water resource problems in the PRC are related to various economic, technical, regulatory, and other developmental issues, and that an integrated and comprehensive approach is required to ensure that adequate volumes of water of requisite quality are available on a sustained basis.

Project Number: 33177-013
Project Name: Harbin Water Supply Project [Loan 1995-PRC]
Report Date:
Lesson
The commitment shown by ADB and the HMG was fundamental to the project’s success. Careful assessment and project design during loan processing, detailed procurement and implementation planning, and timely availability of counterpart funding and decision making ensured smooth implementation and commissioning of the project about 1 year ahead of schedule.

Project Number: 33177-013
Project Name: Harbin Water Supply Project [Loan 1995-PRC]
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
For the sake of efficiency of resources, similar works should be packaged into bigger contracts suitable for international competitive bidding and more efforts is needed during the prequalification and bid evaluation stages to ensure that the selected contractors are fully familiar with the country norms and practices.

Project Number: 33548-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
Market-level compensation is necessary to attract and retain competent staff at PMU, PIUs, and vodokanals.

Project Number: 33548-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
Local government counterpart funding should not be included in future projects because such funds were invariably delayed which resulted in implementation delays.

Project Number: 33548-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
Specifications for operation and maintenance (O&M) equipment should be prepared in consultation with the relevant agencies.

Project Number: 33548-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
Consultants should be fielded early in project implementation.

Project Number: 33548-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
More capacity building needs to be provided to the staff of project management units (PMUs) and project implementaiton units (PIUs), particularly during early stages of implementation.

Project Number: 33548-013
Project Name: Urban Water Supply Project
Report Date: