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Lesson
Project implementation could have been improved with appropriate interagency coordination and support on civil works design and supervision. Following the restructuring of Public Works Department in the early phase of project implementation, a new mechanism was required to ensure proper supervision during subproject design and construction. As the midterm review for the ESP II noted, an education ministry cannot be expected to have the technical resources for this purpose.

Project Number: 30175-013
Project Name: Education Sector Project
Report Date:
Lesson
Studies of affordability and the cost and efficiency of school operations and community appreciation of economic issues were needed. The IEM's school survey highlighted the thin spread of limited resources across the formal education system, which was also noted in the 2006 National Human Development Report for Samoa. Undertaking economic analysis of the education sector with examination of affordability issues would encourage policy development toward a more efficient use of resources such as specialist teachers and modern educational technology, including computers in schools.

Project Number: 30175-013
Project Name: Education Sector Project
Report Date:
Lesson
Aid harmonization was difficult due to procedural issues. Lessons from the ESP PCR regarding harmonization of external inputs were applied to the ESP II under a sector-wide approach. While progress in harmonization of aid arrangements has been recognized in the recent evaluation of the implementation of aid effectiveness principles by the Government of Samoa, the funding agencies and government partners noted continuing problems, as arrangements require them to conform to ADB procurement systems, which are difficult to apply in a very small island country.

Project Number: 30175-013
Project Name: Education Sector Project
Report Date:
Lesson
Upfront work is needed to use the sector lending modality. Project management flexibility provided to the borrower or executing agency may negatively affect project implementation and, consequently, the achievement and sustainability of project outcomes.

Project Number: 30175-013
Project Name: Education Sector Project
Report Date:
Lesson
A more independent regulatory body is needed to balance the interests of all stakeholders—the government, toll road operators, road users, communities, and business. TRB lacks a clear vision for the sector, and because of its human and financial resource limitations adopts a passive rather than proactive role. This could be achieved by transforming TRB through the appointment of an independent board with a clear majority of members and the chairperson coming from the private sector. Independent funding could be provided through a direct levy on toll fees and the toll road operators.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
Regulation of the toll road sector under TRB remains weak. TRB was established in 1977 to regulate expressways and toll rates while increasing private sector investment in infrastructure projects. It lacks capacity and resources relative to its mandate, however, and in practice only monitors operations, maintenance, and the adjustment of toll rates. TRB lacks independence, remaining under the control of the government. Its executive director is appointed by the president, and all but one member of its board are government officials.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
While the loan conversion from dollars to pesos was completed successfully, the price to MNTC of reducing its foreign exchange risk was quite high. Although there are potential benefits to the consumers from removal of the forex factor from the toll rate adjustment formula, the peso has since appreciated further against the dollar and the financial benefits of the conversion to MNTC are mixed. Regarding the issue of equity participation, ADB was seen to be more conservative and slow in its process than was the private sector.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
Stronger due diligence on the part of ADB would have identified risk earlier and reduced project delays. The inability of PNCC to raise funds for the project, too, should have been anticipated at a time when most government corporations were strapped for cash and that PNCC had few alternative revenue sources apart from government subsidies. It should have been foreseen that PNCC would need to reduce its exposure in the project.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
The right-of-way issue should have been resolved earlier. Land acquisition by the government in the Philippines has been difficult causing delays. Although this was raised at the Board meeting considering the project, not enough attention was given to the potential problems until it was too late.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
ADB could have done a more thorough test of the forecasts‘ sensitivity to changes in the basic variables, including tariff price elasticity, lower-than-expected economic growth, and higher gasoline prices. The fact that traffic volumes have been scarcely half those projected by technical consultants at appraisal has meant lower revenues and a less favorable FIRR. While it is understood that a range of projections were made and the lower ones were used, they nevertheless proved to be overly optimistic.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
At appraisal there should have been a design monitoring framework which would have identified the objectives and targets. The project was designed to enhance economic development of central and northern Luzon, but no clear or measurable objectives were set at the outset. While economic growth has occurred in this region—3.4% per annum overall—it is not possible to quantify the extent that rehabilitation of an already existing toll road has contributed.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
Enterprise finance projects need to have a clear exit strategy at completion. The project had no clear strategy on how the Small Business Enterprise Centre (SBEC) should be supported beyond the life of the project. The SBEC was left with a huge loan guarantee portfolio at the end of the project and no long-term means to sustain its operations.

Project Number: 33167-013, 33167-022
Project Name: Small Business Development Project
Report Date:
Lesson
Support for capacity building should be geared towards promoting the long-term sustainability of institutions. While technical assistance in the form of logistical support, advisory assistance (through consultant inputs), study tours, and training help to improve project capabilities, they do not necessarily address long-term sustainability of institutions.

Project Number: 33167-013, 33167-022
Project Name: Small Business Development Project
Report Date:
Lesson
Early identification of the constraints to implementation, and development of clear strategies to address these constraints would have made implementation more effective and efficient. The capacity constraints of implementing agencies were not clearly defined early on in implementation, especially the credit components. No clear strategies were developed to address constraints in the social and cultural environment and in market conditions that affect the policy component. As a result, the project suffered delays and the delivery of outputs and outcomes was significantly affected.

Project Number: 33167-013, 33167-022
Project Name: Small Business Development Project
Report Date:
Lesson
A project design based on a sound and thorough assessment of institutional constraints and market conditions would have ensured smoother implementation and improved loan performance. In the context of Samoa—where the financial market is relatively underdeveloped, the collateral framework is weak, and institutions have limited capacity—a more simple and focused project design would have been more appropriate.

Project Number: 33167-013, 33167-022
Project Name: Small Business Development Project
Report Date: