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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:
Lesson
Consultants should be fielded early in the project implementation period.

Project Number: 35496-013
Project Name: Western Uzbekistan Rural Water Supply Project
Report Date:
Lesson
Initial implementation delays need to be reduced. To this end, more work should be completed during project preparation including (a) the preparation of a request for proposal for consulting services, (b) the approval of advance action for the procurement of consulting services and construction contracts, (c) the preparation of feasibility studies and their approval by the government, and (d) the preparation of tender documents for the first contract package.

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