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Lesson
Selection of the most suitable modality to support institutional development requires adequate consideration of the various factors intricately linked to it, including the prevailing political dynamics, incentive structures in public administration, and commitment of the relevant development agencies. In the case of this project, frequent changes in the senior management of the Erdenes Mongol jeopardized project ownership and seriously affected implementation.

Project Number: 49409-001
Project Name: Strengthening Institutional Framework and Management Capacity Project
Report Date:
Lesson
Inaccurate projections can reduce the financial viability of projects and lead to unoptimal use of resources. At project appraisal, populations in Anaklia and Mestia were forecast to grow significantly with Anaklia’s planned port construction and tourism development of Mestia as an international ski resort and historic heritage site. As it turned out, towns in Georgia, including the three towns, witnessed out-migration and reduction in population in the last decade.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
The financial health of key project agencies needs to be thoroughly assessed at project preparation to determine their viability and identify the proper risk mitigation measures. Although a financial management assessment was conducted for the implementing agency, the United Water Supply Company of Georgia Limited Liability Company (UWSCG) during project preparation, the assessment only pointed to a need for training in accounting and reporting, preparing business plans, determining tariffs and procurement.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Lack of project readiness can seriously deter project implementation. The project completion review of tranche 1 indicates that the project was not ready for financing. During preparation of the project, the towns of Marneuli and Zugdidi were replaced by Kutaisi, Poti, and Ureki because of changing government priorities and the planned development of a seaside resort at Ureki. This necessitated a major change in scope that delayed project startup. Additional time was also needed for capacity building and to increase awareness of the project among the IA staff.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Data collection on all Indicators in each tranche project should be ensured to facilitate a reliable assessment of the accomplishments and performance of each project and the entire MFF. The executing agency (EA) is required, as part of the government’s undertakings, to establish a project performance monitoring system to collect and measure baseline data on the performance Indicators in the design and monitoring framework (DMF) during implementation and to submit to ADB, as self-evaluation, the government’s completion report for the implemented projects.

Project Number: 44483-024, 44483-023, 44483-026, 44483-027
Project Name: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program
Report Date:
Lesson
ADB should help the executing agency strengthen its capacity in procurement planning, bid evaluation, and contract award in accordance with ADB’s procurement guideline. Because of the disagreement between the executing agency and ADB regarding bid evaluation results, the procurement of civil works for Project 2 was significantly delayed. The divergent views centered on particular restriction provisions, including abnormally low bids, collusions, and conflicts of interest.

Project Number: 44483-024, 44483-023, 44483-026, 44483-027
Project Name: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program
Report Date:
Lesson
Project readiness challenges could result in sequential delays of the different tranches in an MFF, leaving insufficient time for implementation within the MFF term and making MFF less relevant. Prior to the approval of each tranche, the initial design for each project was prepared to varying degrees.

Project Number: 44483-024, 44483-023, 44483-026, 44483-027
Project Name: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program
Report Date:
Lesson
It is important to minimize if not completely prevent the need for design changes that could exacerbate implementation challenges. The project as delivered differs significantly from that expected at appraisal. A memorandum of understanding following the April 2013 loan review mission had made extensive and critical comments on the conceptual and detailed design of the project.

Project Number: 41192-013
Project Name: Regional Logistics Development Project
Report Date:
Lesson
The use of lump sum construction supervision contracts under conditions of frequent design changes is disadvantageous for the consultant and could jeopardize project implementation. The use of a lump sum contract between the EA and consultant for this project was not suitable. Lump sum contracts work well when tasks are precisely defined and the risks to both parties are well understood. In this case, the project had frequent design changes that resulted in extended discussions on the variations and severe implementation delays.

Project Number: 41192-013
Project Name: Regional Logistics Development Project
Report Date:
Lesson
Robust project baseline data is needed to adequately assess complex projects with significant potential environmental and social impacts. In this project, baseline data on noise, vibration, vulnerable affected people, and river ecology were collected in accordance with contracts, applicable laws, regulations, and policies. This proved insufficient and led to questionable results particularly with the regard to the impact of vibration in several project-affected buildings. For future projects, more detailed studies and additional assessments need to be carried out.

Project Number: 42414-043
Project Name: Sustainable Urban Transport Investment Program - Tranche 3
Report Date:
Lesson
Projects could fail because of faulty impact assessments. The initial environmental examination (IEE) approved by ADB had to be revised as road vibration and noise impacts needed to be studied further. While public consultations were conducted, these did not generate enough buy-in from some of the stakeholders who raised formal complaints. Local people outside the project’s original area of influence opposed project implementation as well as the proposed remedial action plan (RAP), due to which the project could not be carried out within the original timeframe.

Project Number: 42414-043
Project Name: Sustainable Urban Transport Investment Program - Tranche 3
Report Date:
Lesson
Project impacts on vulnerable groups need focused attention. . The IEE had some shortcomings in identifying the project’s impacts on vulnerable groups in the project areas. Visually impaired people living in the area were to be affected by noise generated from the road layout. As a result, the project required a new round of consultations with visually impaired affected persons whose specific vulnerabilities and needs had not been factored into project design. In addition, more precise measurement of vibration impact on buildings occupied by affected persons needed to be developed.

Project Number: 42414-043
Project Name: Sustainable Urban Transport Investment Program - Tranche 3
Report Date:
Lesson
Meaningful targeted consultation is essential in ensuring that project-affected people’s needs are heard and addressed in project design and implementation and reduces the likelihood of an escalation of grievances and, consequently, of project costs. The public consultation approach proved inadequate in generating a full picture of potential project impacts. A house-to-house needs assessment and the conduct of focused group discussions could have provided deeper insights and more valuable inputs from the visually impaired affected persons.

Project Number: 42414-043
Project Name: Sustainable Urban Transport Investment Program - Tranche 3
Report Date:
Lesson
Independent technical studies are useful in addressing project-related grievances. The executing agency, in collaboration with ADB, determined that specific studies, including noise and vibration studies, had to be completed before proposing solutions to address the concerns of the complainants. While the proposed RAP was not accepted by the complainants, the technical studies proved useful in establishing the deficiencies of the IEE and could be built upon in addressing issues of similar nature.

Project Number: 42414-043
Project Name: Sustainable Urban Transport Investment Program - Tranche 3
Report Date:
Lesson
The design and monitoring framework (DMF) needs to be carefully formulated to adequately measure project achievements. The DMF contained indicators that were not entirely attributable to the project. The assumptions and data source behind the quantitative baselines and targets for several indicators were also not clearly explained. These weaknesses need to be addressed in future projects.

Project Number: 42414-043
Project Name: Sustainable Urban Transport Investment Program - Tranche 3
Report Date: