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Lesson
Social development. The project has contributed to regional sustainable socioeconomic development, poverty reduction, and community development in the project area.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
Carbon revenue. The project was successfully registered as a clean development mechanism (CDM) project and was able to source significant amounts of revenue from the sale of carbon credits, thereby making it financially viable. This offers valuable lessons as a successful demonstration project for other clean energy developers in the region.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
Counterpart financing. The project funds comprised international funds and domestic funds. For smooth project implementation, the timely availability of counterpart funds is a key issue. For the project, the actual ADB financing was $22.0 million and the counterpart funds mobilized from stockholders and local banks was $35.9 million, all of which was provided in a timely manner that ensured smooth project implementation and early project commissioning.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
Procurement. Properly administered bidding processes were vital to obtaining cost- effective bid offers. Strict adherence to such processes, both in equipment procurement and onsite construction, facilitated savings on capital costs and ensured quality construction and equipment. The engagement of an experienced procurement agent proved to be a key factor in facilitating efficient procurement.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
The external supervising mechanism was also effective and played an important role in improving the quality of the project. The selection and hiring of competent international and national consultants ensured that the quality standards required for the project were observed.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
The successful construction of the project resulted from the strong government ownership and provides a valuable lesson on the importance of this factor in facilitating effective implementation and delivery of development results in ADB-financed projects. The Erlongshan Hydropower Company (EHC) always took the initiative in solving problems, including in the provision of design documents, timely delivery of equipment, approach to dealing with issues, and other areas. The owner's initiative guaranteed appropriate procedures and timely action on key tasks and when problems arose.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
Ensuring quality in complex reform oriented projects: The consultants under the loan were hired through QCBS. The staff costs in the bids were inadequate for quality staff. This hiring process allowed weak firms to bid low and win the bids, without fully appreciating the tasks ahead. The request for proposal for complex sector loans should either be quality-based or include a bid rejection option in case of underbidding in QCBS.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Provision of optimal environment for change: The project design included community and private sector participation in the delivery of urban services, supported by some concrete small-scale activities. However, the project did not provide clear direction and adequate resources to deliver these activities (para. 46). Flexibility is important in the design of complex loans, but for this flexibility to be used effectively, additional capacity, a guiding framework, and resources should be included in the sector loan, with supporting technical assistance to guide the use of the resources.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Addressing the fundamentals reforms upfront: Major governance issues of autonomy and incentives to perform, which plagued the key implementing agencies that were the urban service providers, were only captured piecemeal in the policy framework. This allowed these issues that were fundamental for the success of the project to be addressed (or not be addressed) during project implementation. The design also allowed major investment subprojects to be implemented without addressing these fundamental issues.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Inclusive implementation arrangements: The PPTA also identified and consulted key stakeholders, including private sector developers, DHA, and the Cantonment Board�accepting their role in influencing project scope and cost. However, no formal agreement was signed with these stakeholders (para. 54). Formal arrangements with key stakeholders on the scope and cost- sharing arrangement should be part of the design and planning stage, to avoid delays and confusion at the project implementation stage.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Clarity of roles and responsibilities: The PPTA and the RRP identified overlap in administrative and geographic alignments of agencies such as WASA, town administrations, RDA, the Cantonment Board, and the CDG responsible for municipal and other urban functions (para. 55). The policy actions, PSC and PIRC established for the project were unable to address these gaps. Clarity of roles, and geographic, administrative, and sector alignment are prerequisites for effective urban governance and need to be addressed at the planning stage or should be part of project readiness checklist.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Alignment with overall reforms: The project only supported implementation of reforms in the participating towns and WASA in line with PLGO 2001 and urban policy actions agreed with the government for the project (para. 53). Ownership and commitment to reforms deteriorated in general and project implementation was adversely affected. Although these risks were identified in the project design, no flexibility was built into the design to respond to these external factors.

Project Number: 37003-013
Project Name: Rawalpindi Environmental Improvement
Report Date:
Lesson
Uninterrupted power supply and assured raw water availability are critical to ensure the sustainability of investments. Such infrastructure constraints that are outside the control of a particular project may reduce the project's benefits as well as accelerate the depreciation of the assets created.

Project Number: 35496-013
Project Name: Western Uzbekistan Rural Water Supply Project
Report Date:
Lesson
The midterm review should thoroughly review the project, including knowledge of ground realities, costs, and implementation progress, and come up with a revised project scope, if warranted, keeping in view the budgetary provisions, and a realistic implementation schedule.

Project Number: 35496-013
Project Name: Western Uzbekistan Rural Water Supply Project
Report Date:
Lesson
Market-level compensation is necessary to attract and retain competent staff at the PMU and PIUs.

Project Number: 35496-013
Project Name: Western Uzbekistan Rural Water Supply Project
Report Date: