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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:
Lesson
Use phased reform programs. Radical reform programs, especially if they carry political risks, are likely to result in government resistance, unless the government strongly supports the concept. A phased long-term reform program is more likely to gain government support, especially if each stage is aligned with government objectives.

Project Number: 35087-013
Project Name: Urban Water Supply and Sanitation Project
Report Date:
Lesson
There were clear benefits to the involvement of the resident mission in supervision due to closer involvement and understanding of the local environment. In addition, project documents revealed that review missions in the early years of the project were not adequately apprised, by the PMU or consultants, of the seriousness of the project’s problems. The lesson from this is the need for (i) in-depth analysis by missions, and (ii) the establishment of mechanisms for consultants to prepare realistic reports to the PMU and ADB.

Project Number: 31197-013
Project Name: Community-Based Infrastructure Services Sector Project
Report Date:
Lesson
Need for improved and expeditious processing of approvals both within ADB business processes and within the government to avoid delays to approval of variation requests and other procurement matters.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
A master plan for water resource development in each river basin including careful assessment of conflicting responsibilities for regulation, extraction, and approval in the sector is needed for future ADB engagement..

Project Number: 35379-013
Project Name: Metropolitan Waterworks and Sewerage System New Water Source Development Project
Report Date:
Lesson
For the AWUAIP, instead of pursuing the ADB multitranche financing facility, the government decided to accept a loan from the Government of the People’s Republic of China. The government is also dealing with many official development assistance partners, and there are grants and loans with better conditions than ADB loans.

Project Number: 35379-013
Project Name: Metropolitan Waterworks and Sewerage System New Water Source Development Project
Report Date:
Lesson
A bigger role for nongovernment organizations (NGOs) can be envisaged. NGOs can borrow from the Developnment Bank of the Philippines if they have sufficient collateral at their disposal. However, few NGOs may have land available for housing, and may consequently rely on partnerships with other stakeholders, such as the local government units or the private sector, to access land for their projects.

Project Number: 32499-013
Project Name: Development of Poor Urban Communities Sector Project
Report Date:
Lesson
Private sector developers need to be motivated to prefinance and build social housing schemes. The private sector modality does work if established in tandem with a take-out mechanism from Home Development Mutual Fund (HDMF). While the private sector will only require short-term loans during the construction period (until a scheme is fully sold), it relies on a separate financing mechanism through HMDF or similar other arrangements.

Project Number: 32499-013
Project Name: Development of Poor Urban Communities Sector Project
Report Date:
Lesson
Local government units (LGUs) are important as facilitators of housing projects, but should not be overburdened with housing production or housing loans. LGU-driven projects are important and strategic for targeting the urban poor. LGUs can have a crucial role in provision of land, particularly land that has been proclaimed by the President of the Philippines for social housing purposes. However, there needs to be additional innovation to make the urban poor bankable.

Project Number: 32499-013
Project Name: Development of Poor Urban Communities Sector Project
Report Date:
Lesson
Microfinance for housing should be encouraged. Housing microfinance is an important long-term development instrument. Microfinance institutions that have clienteles with good reputation as borrowers are best suited to implement such housing microfinance loans.

Project Number: 32499-013
Project Name: Development of Poor Urban Communities Sector Project
Report Date:
Lesson
Revenue-earning subprojects were favored. Many of the implemented subprojects e.g. public markets, public transport terminals, and water supply schemes are good revenue earners or have the potential to be good revenue earners. These subprojects provide essential economic and environmental benefits that will have long-lasting positive impacts. It is expected that most of these investments will be sustainable and will lead to further related investments to expand infrastructure networks.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
The value of capacity development. Although not easily measurable in terms of monetary impacts and outcomes, capacity development support made an important contribution to the project. The investment of $6 million through an Nordic Development Fund (NDF) loan to the DILG was an unprecedented engagement in favor of LGUs; this amount was augmented with a substantial in-kind operational counterpart contribution by the DILG.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Participating local government units (LGUs) obtained several benefits. The project generated strong interest among LGUs. Most LGUs appreciated the loan terms (particularly the fixed long-term nature of ADB funds) and the assistance and services provided by the Land Bank of the Philippines (LBP) and the Department of Interior and Local Government (DILG). LGUs also appreciated receiving assistance in modernized governance systems, including assistance in rationalized planning (comprehensive development plans), property tax administration, and revenue enhancement.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
LGUs see banking requirements as too tedious. Despite various introductory workshops, some LGUs kept complaining about the documentation requirements. The assistance of DILG and its consultants has helped ease their concerns, but LGUs reported that at times they felt like they were being forced into compliance with procedures that other official development assistance (ODA) providers (like Japan Bank for International Cooperation) had already relaxed. Both ADB and LBP procedures could have been simplified to better bond LGU customers with the project.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Capital grants are attractive, but should only be given as a reward for good performance. In the first years of the project the DILG offered capital grants for eligible subprojects. These were discontinued in 2005 after the cancellation of the DILG's grant source. After that, many LGUs stopped subproject preparation work because of the (perceived high) costs of ADB loans. The commitment and buy-in of LGUs was weak at times. Many LGUs were more oriented toward grants than the lending facility.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date: