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Lesson
Insufficient technical support was provided to the Government of Palau by ADB at program commencement to assist with the initial work on alternative policy and legal frameworks, including merger and privatization options. Greater use of specialist water utility engineers and water company contractors with wide Pacific experience could have benefited the program.

Project Number: 44031-013
Project Name: Water Sector Improvement Program
Report Date:
Lesson
The RRP outlined that one of the program outputs was the establishment of the policy and legal framework to enable the provision of sustainable and efficient water and sewerage services, including allowing for outsourcing of the management function to a private company. Examples of merged power and water utilities and private sector-run water utilities include the UNELCO Engie in Vanuatu and the American Samoa Power Authority (footnote 9). These types of viable utility options need to be considered during the appraisal of similar programs.

Project Number: 44031-013
Project Name: Water Sector Improvement Program
Report Date:
Lesson
Consultation was undertaken at appraisal and fact-finding was done by ADB on alternatives to the establishment of the PWSC. However, the change in the government resulted in changes in the sector reform choices undertaken and resulted in less commitment to the program. For similar policy-based loans, the lesson is to develop ownership indicators for programs ex-ante, which are sufficiently robust to ensure that government commitment is maintained irrespective of sector reform pathways.

Project Number: 44031-013
Project Name: Water Sector Improvement Program
Report Date:
Lesson
ADB project documents need to be clear on how projects are to lead to sustainable results. The absence of consultants to address issues regarding the legal and technical aspects of O&M planning and funding, measures for cost recovery, tariff collection, and the metering system posed a risk to the sustainability of the water supply and sanitation subprojects. Future projects should include technical assistance that would implemented concurrently with the project.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
Loans for the Municipal Development Funds should be implemented as proper financial intermediary loans. The projects were designed as financial intermediation loans largely because the government wanted to disburse funds and execute subprojects quickly. MDF had the capacity and had prior experience of implementing such loans through an earlier World Bank project.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
ADB needs to invest in a good PPMS. The evaluation mission’s difficulty in measuring the efficiency of water supply and road subprojects financed under MSDP and MSDP Phase 2 was the result of an inadequate PPMS that focused mainly on monitoring disbursements and outputs. Baseline data were not collected on the market served by water supply subprojects, such as the number of households, persons per household, water sources, amounts of water produced and consumed, and water loss rates.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
Allocations for capacity building components need to be maintained. Discussions and interviews with MDF staff and municipal governments during the evaluation mission pointed to the need for further capacity building of MDF and municipal governments. This was one of the objectives of the projects.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
The reform’s overall impact should be assessed by how much investment in road and urban water increase—which the PCR did not discuss in detail. This program might have been better designed as a sector development loan, which combine program and investment loans.

Project Number: 46220-001
Project Name: Infrastructure Sustainability Support Program
Report Date:
Lesson
Additional consideration should have been given to the provision of the following, which addresses problems encountered: engagement of institutional strengthening consulting expertise would have improved project design;

Project Number: 37697-013
Project Name: Urban Development Sector Project
Report Date:
Lesson
Enhanced microfinance expertise during the inception phase to ensure success of any small loan program;

Project Number: 37697-013
Project Name: Urban Development Sector Project
Report Date:
Lesson
Enhanced procurement support to assist executing agency and other agencies to improve preparation and management of the ICB bidding process;

Project Number: 37697-013
Project Name: Urban Development Sector Project
Report Date:
Lesson
More frequent supervision during implementation of gender-related activities would ensure compliance with GAP and monitoring of GAP indicators from the start of the project;

Project Number: 37697-013
Project Name: Urban Development Sector Project
Report Date:
Lesson
House connections for water supply and sanitation should be included into project design so that beneficiaries may accrue the full benefits of the built infrastructure; and

Project Number: 37697-013
Project Name: Urban Development Sector Project
Report Date:
Lesson
Close supervision by executing agency is required to ensure that safeguard policy statement’s requirements for LAR external monitoring and reporting are fully complied with.

Project Number: 37697-013
Project Name: Urban Development Sector Project
Report Date:
Lesson
Additional consideration should have been given to the provision of the following, which addresses the problems encountered: Future projects can better articulate outcome and impact of urban development to overall inclusive economic development and environmental sustainability of the subregion.

Project Number: 40643-013
Project Name: Greater Mekong Subregion: Sustainable Tourism Development Project
Report Date: