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Lesson
Strong project design, including carefully thought-out subproject selection criteria and adequate financial assessments can help reduce the need for scope changes and mitigate the risk of implementation delays. At approval, this project included seven subprojects in five provinces. Four of the seven subprojects were dropped in 2016 and 2017 because of changes in the companies’ investment priorities, changes in management due to the equitization process, and/or insufficient financial capacity.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
In turbulent times, projects must formulate comprehensive contingency plans for major emergencies such as (i) strengthening risk management with flexible plans to address unpredictability, (ii) developing adaptable resource plans, (iii) enhancing supply chain transparency to mitigate delays, (iv) improving remote team collaboration, and (v) leveraging digital technology to monitor projects during emergencies. This project was affected by the pandemic and required a loan extension until 30 June 2022, necessitating a corresponding extension of the implementation period.

Project Number: 45022-002
Project Name: Jiangxi Ji'an Sustainable Urban Transport Project
Report Date:
Lesson
Counterpart funding arrangemnets need to be ascertained if doable in the local context. The project required the government and local communities to contribute 10% to the cost of construction of infrastructure improvements to build community ownership of the project facilities. However, the capacity of the local government and communities to contribute was limited to 4.7% and 1.8%, respectively. Delayed allocation and availability of counterpart funds for resettlement compensation caused delays during implementation.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Inadequate assessment of deficiencies in technical and financial capacities to operate, maintain, and manage sanitary landfills could have detrimental impacts. The project completion mission noted deficiencies in the management of the landfill. In the absence of an effective management system, the new landfill currently operates as an uncontrolled dumping site. There is a need for proper handover procedures and transfer of management from the project to the local authorities.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Insufficient project funds and funding for operation and maintenance (O&M) threaten the sustainability of project benefits and outcomes.There are challenges in maintaining and operating the project facilities following project completion because of uncertain annual budget allocations from the government. The revision of project agency roles and responsibilities due to the upgrade of Pakse from a district to a city has led to a shortfall of budget, particularly for landfill operations. The uncompleted riverbank protection work, have made project sustainability less than likely.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Project readiness and advance contractung and retroactive financing facilitate successful and timely project completion. Project readiness—in terms of technical, financial, and safeguards readiness—was effectively undertaken, thereby facilitating smooth project implementation. The use of advance contracting and retroactive financing likewise helped enable the completion of all project activities by the original loan closing date.

Project Number: 47047-002
Project Name: Shandong Groundwater Protection Project
Report Date:
Lesson
Accurate cost estimates, including for contingencies, and effective utilization of loan savings are critical to the attainment of intended project results and timely financial closing. The actual contract price was lower than the amount estimated because of the inaccuracy of the engineering cost estimate and contingency estimates. Cost savings, however, were effectively utilized through minor changes in the project, further enhancing the achievement of project outcomes and outputs. Eligible expenses should be clarified early on, so as not to delay the project financial closing.

Project Number: 47047-002
Project Name: Shandong Groundwater Protection Project
Report Date:
Lesson
The engineering design of infrastructure investments need to be simple and adequately consider post-project financial and human resources capacity for and operation and maintenance. The rationale for this project's overall design was justifiable as it highlighted Pakse as an economic and commercial center of southern Lao PDR. The choice of investments reflected the immediate needs of Pakse. However, in terms of future maintenance, the design of the landfill was considered overly sophisticated for local authorities with limited financial and human resources.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Early identification of the need to cancel subprojects and faster decision-making on project scope changes could shorten the extension of project implementation periods. This project's completion date was extended twice for a cumulative period of 3 years from the original completion of 31 December 2018. The first extension was until 31 December 2020 for the utilization of loan savings across different subprojects, necessitating a minor change in project scope that could have been shortened had the request for the scope change been made earlier.

Project Number: 45509-002
Project Name: Chongqing Urban-Rural Infrastructure Development Demonstration II Project
Report Date:
Lesson
Opportunities for advance procurement remain limited in Cambodia because financing is unavailable for detailed engineering designs in advance of loans. This limits the preparatory actions that could be undertaken to improve project readiness. Solutions such as a project design facility are being considered and may be possible from 2024 onwards.

Project Number: 41403-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
The transition of PWWs into independent corporate entities requires adequate preparation to ensure they have the capacity, technical and financial management skills, and resources for viability and sustainability. To support this transition, the PMU adopted a phased and practical approach, implementing vital actions with training and technical support. The PWWs developed business planning and financial reporting systems and adopted supervisory control and data acquisition systems. The PMU has identified the first PWWs that are considered ready for the next step as a corporate entity.

Project Number: 41403-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
Structural and nonstructural interventions require cohesive and integrated approaches, necessitating long-term planning and consultative processes. For example under this project, safeguard readiness including securing design approval from pertinent agencies should have been pursued more effectively. Project readiness for physical works should be adequately considered in drawing up implementation schedules. Accurate and realistic cost estimates based on detailed technical design can reduce the risk of loan cancellations.

Project Number: 44037-014
Project Name: Shaanxi Weinan Luyang Integrated Saline Land Management Project
Report Date:
Lesson
A rational tariff policy is essential for improving the financial viability of a distribution utility. Two tariff revisions (in 2016 and 2021) helped improve the financial viability of Azerishiq's distribution-strengthening projects. Although the upgrade of distribution systems is still not fully financially viable, an improving financial internal rate of return (into positive territory) illustrates the benefits of lifting tariffs toward full cost recovery.

Project Number: 42401-014
Project Name: Power Distribution Enhancement Investment Program (Multitranche Financing Facility)
Report Date:
Lesson
The cost categories required to be reported in the audited program financial statements (APFS) need to align with the categorization at appraisal so as not to cause problems in reporting. PLN faced difficulty in estimating the financing charges during implementation at appraisal stage. In addition, PLN raised a concern on the disclosure provision regarding APFS due to confidentiality requirements. The cost categories reported in the APFS were not aligned with the categorization used at appraisal, due to which changes to reporting formats were needed.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Shifts in the types of projects can affect the financing products that may be supported under the clean energy financing (CEFP) platform. At project design, the CEFP was planned to provide three types of financing products: entrusted loans, guarantee funds, and lease financing facilities. During implementation, only entrusted loans were utilized. The other two financing products were not used because of shifts in the types of projects which did not require guarantees and lease financing.

Project Number: 48452-004
Project Name: Shaanxi Accelerated Energy Efficiency and Environment Improvement Financing Project
Report Date: