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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
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:
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
Projects require an in-depth assessment of ownership and use of land. Procurement for the Butwal auto village subprojects (AVS) was severely delayed by land ownership issues. The automobile enterprises were located on land leased from the municipality intended only for establishment of automobile enterprises, but the entrepreneurs used the land for business and residential purposes. These entrepreneurs were skeptical that their existing land uses could continue if they entered into a public-private partnership agreement, and thus protested the AVS.

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
Report Date: