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Lesson
A careful institutional assessment and well-targeted capacity development program would help strengthen institutional capacity and promote sustainable management of urban services. There were discrepancies between the actual institutional arrangements and those stipulated in the loan and project agreements concerning responsibilities for investment and operations and maintenance in wastewater services and inland creek rehabilitation. These discrepancies made some of the loan covenants inoperable and caused the project's capacity building program to be mistargeted.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
Alternative design options to avoid or minimize house demolition and resettlement should be explored thoroughly during detailed design and project implementation, particularly if the project is located in a rapidly urbanizing area. In the Fuzhou project, design options were largely limited by technical parameters such as flood discharge flows and gradients.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
Urban development projects are inherently complex, involving various sectors and agencies, numerous infrastructure works, and significant safeguard impacts; thus they require tight coordination among all stakeholders. Considering the sector and institutional complexities, sufficient time should be allowed to scope, design, and implement urban projects. While the project management setup and implementation arrangements were generally relevant and effective, the interagency coordination necessary for the project was at times inadequate.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
Projects that are intermingled with domestically financed development projects should be avoided. Many cities have elaborate local land acquisition and resettlement regulations that often make it difficult for ADB projects to implement land acquisition and resettlement independently from the other development projects. In the case of Fuzhou, the ADB-financed project and the domestically financed projects affected the same villages, and this caused some confusion and dissatisfaction in the affected villages.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
Affected persons should not be displaced before they have signed compensation agreements. This was strictly applied in Fuzhou and is now a national regulation.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
The government's land acquisition plan should be prepared well before project approval so that all preparatory administrative procedures are completed ahead of physical implementation of projects.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
Sufficient budget and institutional coordination should be available to minimize the transition period between the completion of resettlement housing and demolition of structures, and relocation of affected persons to their new residences.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
Project design and resettlement planning should be carefully sequenced with the government's development plan using a realistic implementation schedule.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
Extra attention and resources should be allocated to projects involving displacement of unregistered or illegal properties.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
The rapid urbanization and transformation of cities in the PRC means that resettlement safeguards are a critical element of urban projects throughout project preparation and implementation. This is particularly complex in the eastern coastal cities, such as Fuzhou, that experienced unplanned housing development.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
Public announcement of the resettlement cutoff date and its notification to affected villagers should be supported by robust evidence of the established cutoff date such as unambiguous aerial photographs. Local authorities should also try to prevent people from building illegal structures and should rigorously enforce the cutoff date.

Project Number: 35340-013
Project Name: Fuzhou Environmental Improvement Project
Report Date:
Lesson
Due diligence should be exercised not only in terms of technical factors but institutional, social, financial, and even political factors. While most if not all projects have excellent and even noble intentions and objectives and are extremely relevant to existing problems in the countries they are proposed for, these projects have to be realistic and must be designed considering the inherent problems and issues pertaining to the sector, country, or areas where they will be implemented.

Project Number: 31467-013
Project Name: Provincial Towns Water Supply and Sanitation Project
Report Date:
Lesson
Thorough analysis of beneficiary preference, demand, and willingness to pay has to be conducted to ensure that preconceived notions of demand are verified, validated, and confirmed on the ground from the beneficiaries themselves. Very often project proponents from central government agencies have a different concept of needs and priorities from those at the field or local level. Local involvement in project conceptualization ensures greater project success, as there would be better ownership of project components and more accurate identification of needs of intended beneficiaries.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
Ensure the government understands the proposed project. Ensure that government agencies fully review and understand proposed projects. Reconfirmation with all relevant agencies is critical.

Project Number: 35087-013
Project Name: Urban Water Supply and Sanitation Project
Report Date:
Lesson
Use conservative cost estimates and ensure sufficient funding. The funding allocation should be sufficient to cover project costs; if it is not, the project scope should be reduced or the funding allocation increased with no delay during implementation.

Project Number: 35087-013
Project Name: Urban Water Supply and Sanitation Project
Report Date: