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Lesson
Use phased reform programs. Radical reform programs, especially if they carry political risks, are likely to result in government resistance, unless the government strongly supports the concept. A phased long-term reform program is more likely to gain government support, especially if each stage is aligned with government objectives.

Project Number: 35087-013
Project Name: Urban Water Supply and Sanitation Project
Report Date:
Lesson
Understanding the sector environment in new member countries is important. When engaging in a new sector or country, understanding the key sector participants and their agendas, as well as developments in the sector is important. This will improve the project design and increase the likelihood that the project will have strong government support.

Project Number: 35087-013
Project Name: Urban Water Supply and Sanitation Project
Report Date:
Lesson
Schedule for implementation and financing. The WMG should have increased the wastewater tariff to raise the required funding instead of requiring the WUDDC to borrow more from domestic banks. The WUDDC�s audited financial reports indicate that its short-term indebtedness is much higher than the typical for such an enterprise. The more timely reallocation of unused loan proceeds could have achieved full utilization of the loan proceeds including savings on interest during construction.

Project Number: 34472-013
Project Name: Wuhan Wastewater Management
Report Date:
Lesson
Land acquisition and resettlement. Because of land use changes in updated urban development programs, the Luobuzui WWTP was relocated after the issuance of the land-use permit. Resettlement impacts were consequently different from those anticipated in the resettlement plans, and identification of a new WWTP site caused implementation delays and difficulties. The change mandated the adaptation of the associated wastewater collection system, which made resettlement more difficult.

Project Number: 34472-013
Project Name: Wuhan Wastewater Management
Report Date:
Lesson
Ensure the government understands the proposed project. Ensure that government agencies fully review and understand proposed projects. Reconfirmation with all relevant agencies is critical.

Project Number: 35087-013
Project Name: Urban Water Supply and Sanitation Project
Report Date:
Lesson
The required tariff was accurately estimated at appraisal and was made a loan covenant to assure the Wuhan Urban Drainage Development Company's (WUDDC) financial autonomy. During project implementation, the tariff was adjusted but was still insufficient to achieve the goal set for the WUDDC. The delay in the tariff increase was not only due to lack of support from relevant government agencies, but mainly because of the Wuhan municipal government's (WMG) concerns on social stabilities caused by inflation and overall prices increases in recent years.

Project Number: 34472-013
Project Name: Wuhan Wastewater Management
Report Date:
Lesson
Use conservative cost estimates and ensure sufficient funding. The funding allocation should be sufficient to cover project costs; if it is not, the project scope should be reduced or the funding allocation increased with no delay during implementation.

Project Number: 35087-013
Project Name: Urban Water Supply and Sanitation Project
Report Date:
Lesson
There were clear benefits to the involvement of the resident mission in supervision due to closer involvement and understanding of the local environment. In addition, project documents revealed that review missions in the early years of the project were not adequately apprised, by the PMU or consultants, of the seriousness of the project’s problems. The lesson from this is the need for (i) in-depth analysis by missions, and (ii) the establishment of mechanisms for consultants to prepare realistic reports to the PMU and ADB.

Project Number: 31197-013
Project Name: Community-Based Infrastructure Services Sector Project
Report Date: