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Lesson
Strong project design, including carefully thought-out subproject selection criteria and adequate financial assessments can help reduce the need for scope changes and mitigate the risk of implementation delays. At approval, this project included seven subprojects in five provinces. Four of the seven subprojects were dropped in 2016 and 2017 because of changes in the companies’ investment priorities, changes in management due to the equitization process, and/or insufficient financial capacity.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
A strong design and monitoring framework, with better defined outcomes and outputs and measurable indicators, and the setting up of a project performance and monitoring system during project preparation or at project startup could help track implementation challenges. These may have helped mitigate the risk of scope changes, loan cancellations, and early implementation delays due mainly to delays in startup activities, such as signing of subsidiary loan agreements, detailed engineering design, bidding document preparation, and delays in land acquisition and resettlement.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Strong central coordination is necessary to ensure consistent monitoring and reporting and more effective lessons-sharing among multiple implementing agencies. The Ministry of Planning and Investment was designated as the coordinating agency for the entire MFF-financed investment program, while project 3 activities—procurement and recruitment, construction supervision, financial management, safeguards compliance, monitoring, and reporting—were implemented by the participating water supply coompanies (WSCs).

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Close executing agency (EA) involvement is essential throughout the implementation phase. But this was lacking in this project, which saw the provincial people's committees, the project EAs, having limited involvement in project implementation. This strengthen the case for stronger central coordination by a line ministry to facilitate timely decision-making and approvals, provide closer supervision, ensure more consistent monitoring and reporting, and promote lessons sharing to improve performance.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Continued timely adjustments in tariffs could make projects financially viable. The project financial reevaluation at completion concluded that the project was financially viable subject to continued timely adjustments in tariff. This has legal basis as Decree 124/2011/ND-CP allows WSCs to propose water tariffs in a tariff roadmap, which provincial governments approve. The tariff roadmaps of the participating WSCs included adjustments every two years. However, only one adjustment was made in 2019–2022 due to the impacts of COVID-19.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Unforeseen events could significantly impact project implementation.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
The engineering design of infrastructure investments need to be simple and adequately consider post-project financial and human resources capacity for and operation and maintenance. The rationale for this project's overall design was justifiable as it highlighted Pakse as an economic and commercial center of southern Lao PDR. The choice of investments reflected the immediate needs of Pakse. However, in terms of future maintenance, the design of the landfill was considered overly sophisticated for local authorities with limited financial and human resources.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Project readiness filters and advanced actions are effective tools in mitigating the risk of startup and implementation delays. This project experienced a 2.5-year startup delay, which could have been minimized by implementing project readiness filters and advance actions, including procurement capacity building of the executing and implementing agencies during project preparation.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Counterpart funding arrangemnets need to be ascertained if doable in the local context. The project required the government and local communities to contribute 10% to the cost of construction of infrastructure improvements to build community ownership of the project facilities. However, the capacity of the local government and communities to contribute was limited to 4.7% and 1.8%, respectively. Delayed allocation and availability of counterpart funds for resettlement compensation caused delays during implementation.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Inadequate assessment of deficiencies in technical and financial capacities to operate, maintain, and manage sanitary landfills could have detrimental impacts. The project completion mission noted deficiencies in the management of the landfill. In the absence of an effective management system, the new landfill currently operates as an uncontrolled dumping site. There is a need for proper handover procedures and transfer of management from the project to the local authorities.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Effective knowledge transfer requires adaptation to local context and the participation of stakeholders in the design and preparation of the necessary materials and documents.The project supported the development of manuals and guidelines (e.g., corporate plans, landfill operation guidelines, public–private partnership guidelines). However, preparation of the documents had minimal participation from key stakeholders and there was limited communication to explain the documents to intended users.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Insufficient project funds and funding for operation and maintenance (O&M) threaten the sustainability of project benefits and outcomes.There are challenges in maintaining and operating the project facilities following project completion because of uncertain annual budget allocations from the government. The revision of project agency roles and responsibilities due to the upgrade of Pakse from a district to a city has led to a shortfall of budget, particularly for landfill operations. The uncompleted riverbank protection work, have made project sustainability less than likely.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Results-based lending (RBL) is well suited if it is embedded in a wider government-owned and led program. It can be an effective modality for achieving both physical outputs and nonphysical goals. It can also make changes in national policies that go beyond the project’s physical scope. The climate risk assessments, procurement processes, and beneficiary selection criteria used in this program were also applied in non-ADB financed provinces. The instructions issued and policies adopted by the government were “national”in nature and impact.

Project Number: 50022-002
Project Name: Affordable Rural Housing Program
Report Date:
Lesson
The borrower is not obligated to request disbursement of the full amount related to the fulfillment of any disbursement-linked indicator (DLI). Accordingly, ADB disbursement projections can be overly optimistic. This point should be considered in future revisions of RBL policies.

Project Number: 50022-002
Project Name: Affordable Rural Housing Program
Report Date:
Lesson
ADB’s participation in a country-driven program, by bringing knowledge and experience in addition to financing, catalyzes interest and cofinancing from other development agencies. This program was a critical element for enhancing the entire ecosystem of housing financing and mortgage market, helping lay thegroundwork for diversified funding and private sector involvement.

Project Number: 50022-002
Project Name: Affordable Rural Housing Program
Report Date: