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Lesson
A timely and appropriate change in scope and reallocation of grant (or loan) proceeds responding to actual project needs emerging from implementation can help utilize available grant (or loan) resources in a more targeted and efficient manner, facilitate the conduct of more activities, potentially deliver more outputs, and maintain the project's relevance and effectiveness.

Project Number: 44130-022
Project Name: District Capitals Water Supply Project
Report Date:
Lesson
Good due diligence at appraisal is important to prepare a realistic project schedule considering the institutional setup, internal review and approval procedures, existing capacity, and prior experience of the government and executing agency in implementing ADB and other development partners' projects. Formulating appropriate project design, identifying major risks, implementing adequate mitigation measures, and providing early implementation support are crucial in minimizing startup delays and facilitating the timely implementation progress of projects.

Project Number: 44130-022
Project Name: District Capitals Water Supply 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:
Lesson
Lack of tariffs and insufficient operation and maintenance (O&M) budgets threaten the sustainability of water supply and sanitation facilities in FSM. The water supply and wastewater components are unlikely to be sustainable because of the unwillingness to charge for services, and the insufficiency of annual O&M budgets.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
A well-thought-out project communications plan, backed by local capacity building, is needed for the successful implementation of projects in FSM. Information is often not widely shared in the FSM, and securing support for reforms can be particularly complex in this context. The Chuuk Public Utilities Corporation was able to effectively carry out its communications and outreach activities and secure support for reforms with the help of a well-defined operation, maintenance, and management contract. Project delays affected the momentum of activities in the other three states.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The ability of all participating utilities to successfully adopt and implement organizational changes to meet the project requirements should be assessed, with specialized external support in utility management provided as necessary.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The risks posed by conditions for loan effectiveness and disbursements should be carefully assessed and considered in the project timeline. Project implementation was delayed by about 18 months as the conditions for loan effectiveness required the passage of appropriation bills in the National Congress and at least three of four state legislatures. Such projects can provide the required pressure for positive legal changes but can lead to startup delays.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
A narrow sector and geographic focus is more suitable for projects in the Federated States of Micronesia (FSM). In FSM, multistate and multisector projects bring added complexity and interdependence between institutions that do not otherwise have incentives to support each other. Future projects should consider a narrower focus in terms of sector and geographic scope, allowing for less dispersed efforts on physical and nonphysical project targets. This approach has been adopted for the ongoing Chuuk Water Supply and Sanitation Project.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
Timelines for policy changes and major reforms should also be realistic, knowing that building understanding and ownership can take time and the passage of legislation can be a lengthy process. Two municipalities declined to participate in the project because of their objection to the transfer of ownership and management of assets to a state government agency.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The political economy of the country as well as of the local areas where projects are to be sited needs to be thoroughly understood and considered in the design of projects. The project assumptions that institutional and financial reforms would be adopted within a reasonable time frame and that demand for the improved water supply services could be established in Kosrae state proved false. Project preparation could have supported a more thorough understanding of the political economy, and the scope based on a stronger rationale and expressed demand.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
Close consultation with stakeholders during project design and implementation is especially needed to address the difficulties commonly arising from finding appropriate sites for solid waste and medical waste management facilities in urban projects. Due to lack of land and higher costs of construction than estimated at appraisal, it was not possible to construct the integrated waste treatment facilities, slaughterhouses, and medical waste management facilities planned under this program. These components were eventually dropped.

Project Number: 39305-013
Project Name: Urban Public and Environmental Health Sector Development Program 
Report Date:
Lesson
Overall project success depends to a large extent on the successful implementation of risk mitigation measures carefully identified at appraisal. Weak institutional arrangements and lack of ownership saddled the implementation of this program. A lack of capacity and coordination among different agencies compounded the difficulties. The difficulties could have been minimized or avoided through the timely implementation of risk mitigation measures drawn at appraisal. The measures should be based on a thorough assessment of all potential risks throughout the project period.

Project Number: 39305-013
Project Name: Urban Public and Environmental Health Sector Development Program 
Report Date: