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Lesson
The state government needs to provide financial incentives to encourage ULBs to take their tariff setting and revenue collection more seriously. Such incentives should be performance driven, and preferably also underpinned by accountability agreements between the state government and the ULBs.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
Tariff reform in the water sector is difficult due to cultural and political sensitivities. As such, a strategic approach to tariffs and cost recovery is needed. It may include a clear timeline to increase tariffs, and address the unwillingness to charge for water and sanitation services. A clear approach to the broader sustainability of the project needs to be set out in project proposals.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
A chicken-and-egg dilemma confronts the local governments in their efforts to enforce appropriate water tariffs. Consumers would agree to tariff increases only after services have been improved. National government policy is sympathetic to this sentiment. On the other hand, local governments cannot improve water services if they cannot collect adequate revenues.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
The use of sewage lines for evacuating excess storm drain water has led to problems of overflowing in some areas, so it is important to ensure drainage and sewer networks are separated. This reconfirms that urban sector projects, particularly the ones providing water and sanitation, remain relevant for countries with a high rate of urbanization.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
Intermittent water supply is more costly both for the ULBs and the beneficiaries in the long run. Intermittent water flow increases the risk of contamination in the system (since adequate water pressure is not maintained in the pipes allowing infiltration of contaminated ground water) and reduces the durability of the pipes due to the pressure surges experienced when the pumps come back on. The absence of full-time water supply means customers still have to make an extra effort to collect or pump water from other sources, as well as store and treat the water.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
To encourage more households to connect to the water services, municipal governments may consider incentives such as free connection. This proved successful in expanding water supply coverage in Lao PDR. There is scope to raise awareness among households on the benefits of connecting to water supply services.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
No new lessons

Project Number: 42496-013
Project Name: Emergency Assistance for Wenchuan Earthquake Reconstruction Project
Report Date:
Lesson
No new lessons

Project Number: 37328-013
Project Name: Madhya Pradesh State Roads Sector Project II
Report Date:
Lesson
The DSPP entity undertook non-operational decisions relating to the company name and accounting practices without gaining the required approvals from the lenders before implementing the decisions. While these matters have been satisfactorily explained subsequently, they raise concerns for lenders seeking to confirm that the project entity is being managed in accordance with the requirements of the loan documents; significant time is expended to work through these issues as they are discovered.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
The hedging policy approved at appraisal did not reflect the foreign exchange hedging instruments available in the local market. When exchange rates deteriorated, the hedging policy and the required sponsor support needed to be renegotiated. It is fairly usual to have rolling foreign exchange hedging requirements, rather than the life-of-loan program that was originally documented, and better investigation of the likely options that would be available to the project could have reduced the work required to adapt to the situation as it arose.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
RPL is a strong company with extensive resources, enabling it to quickly identify appropriate technology, supervise quality construction, and be a good corporate partner within the communities it serves. To meet the requirements of CERC’s tariff regulations, RPL needed to develop and construct a project in a short period of time that would withstand the local climate conditions. The project’s performance above expectations is due to RPL’s decisions about technology, design, and construction quality.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
ADB’s long-term focus on energy sector development in India has supported all aspects of the improving energy situation in the country. Work done by ADB has contributed to policy changes, new infrastructure, and increased private sector participation in the delivery of electricity to end-users. Established knowledge of the local situation, and particular focus on renewable energy enabled ADB to respond quickly to the policy changes supporting solar power and provide timely support to an important client to deliver the first utility-scale solar PV plant in India.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
A well-designed program, strong working relationships with regulatory agencies, adequately funded additional TA grant, and properly sequenced policy actions are important factors for success, all of which were shown in CMDP II.

Project Number: 43477-013
Project Name: Second Capital Market Development Program
Report Date:
Lesson
No new lessons

Project Number: 42503-013, 42503-023
Project Name: Economic Recovery Support Program—Subprograms 1 and 2
Report Date:
Lesson
Considering the large capacity development needs of the GOWB and other states in India in areas such as modernization of public financial management and information technology systems, future programs should consider longer-term support efforts in this area. Moreover, state-level reform programs of this same nature could consider a sector development program modality with a program loan component accompanied by a project loan, rather than an attached TA, as a suitable option.

Project Number: 44453-014
Project Name: West Bengal Development Finance Program
Report Date: