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Lesson
Project sustainability crucially depends on a financially sound operating agency and a tariff level and structure that ensures sufficient resources to cover costs. Without financial soundness, the risk of an unsuccessful project outcome is high. Thus, it is important to ensure that either there are cost-recovery mechanisms in place or budgetary resources are sufficiently earmarked to cover operation and maintenance expenses.

Project Number: 52256-006
Project Name: Osh-Plotina Water Treatment Plant Chlorine Neutralization Unit
Report Date:
Lesson
The design and effective implementation of a project performance monitoring system is essential to the economic and financial evaluation of water supply and sanitation projects. The collection of benefits data helps in the identification, quantification, and valuation of economic and financial benefits for evaluation during and after project completion

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
Report Date:
Lesson
Small projects in the water supply and sanitation sector have high capital costs relative to larger projects where economies of scale are a factor and affect tariff levels and affordability in smaller communities. Government budgetary support is necessary to ensure operation and maintenance and long-term benefits when economies of scale are absent. Budgetary support also maintains affordable tariffs for the most disadvantaged.

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
Report Date:
Lesson
A project performance management system (PPMS), which was not included in the project design, could have been beneficial for identifying, quantifying, and valuing economic benefits, and help in evaluating the extent of the project’s effectiveness and sustainability

Project Number: 38254-053
Project Name: North Karnataka Urban Sector Investment Program (Tranche 3)
Report Date:
Lesson
Urban development projects typically involve a variety of risks in the course of its implementation and execution of activities. Formulating appropriate project design and risk assessment during preparatory phase is critical to minimize start-up and implementation delays. This includes a systematic appraisal of the project’s technical scope and engineering design, project cost and contingencies, environmental and social safeguards, and financial and contractual risks.

Project Number: 43023-013
Project Name: Guangxi Beibu Gulf Cities Development Project
Report Date:
Lesson
Sound identification and valuation of costs and benefits in the economic analysis can provide more realistic economic internal rates of return (EIRRs) to indicate a more accurate state of project viability. The economic analysis in the RRP and PCR underestimated the value of the project outputs, particularly the economic benefits of the solid waste management component, which led to a low EIRR. Willingness-to-pay $2 per month for solid waste removal seems too low and unreasonable considering the substantial health and environmental benefits that such removal likely provides.

Project Number: 45507-003
Project Name: Yunnan Chuxiong Urban Environment Improvement Project
Report Date:
Lesson
Not considering adequate funding options and provisions for operations and maintenance (O&M) during the design phase can lead to sustainability issues after project completion. It is critical that a systematic plan for O&M design and measures are developed at the outset, considering the agencies' financial capabilities and attendant risks such as low levels of tariff rates.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Assessment of potential political risks such as a change in government and identifying mitigation measures could help ensure the continuity of planned project activities, specifically when there is strong support, ownership, and commitment of an agency. In particular, it is important to consider the speed and direction of change in the policy regime. For example, a shift in the government priorities could trigger resource allocation that could potentially affect how a project could deliver its intended development results.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Potential problems with funding the maintenance of completed subprojects and/or facilities arise when they highly rely on government budgetary allocations that may or may not materialize in the short- and medium-terms. This can lead to poor periodic maintenance, especially for road routine maintenance. In future projects, consideration could be given to performance-based road maintenance contracts where a period of maintenance is included (e.g., 5 years after completion) in the contracts.

Project Number: 43319-022
Project Name: Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Report Date:
Lesson
With the project's investment in improving wastewater treatment, solid waste management and recycling, an opportunity arose to establish and impose full cost recovery tariffs and charges for these activities. Appropriate tariff studies could have been undertaken and with recommendations for replication in other towns.

Project Number: 43319-022
Project Name: Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Report Date: