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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
A strong design and monitoring framework, with better defined outcomes and outputs and measurable indicators, and the setting up of a project performance and monitoring system during project preparation or at project startup could help track implementation challenges. These may have helped mitigate the risk of scope changes, loan cancellations, and early implementation delays due mainly to delays in startup activities, such as signing of subsidiary loan agreements, detailed engineering design, bidding document preparation, and delays in land acquisition and resettlement.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Strong central coordination is necessary to ensure consistent monitoring and reporting and more effective lessons-sharing among multiple implementing agencies. The Ministry of Planning and Investment was designated as the coordinating agency for the entire MFF-financed investment program, while project 3 activities—procurement and recruitment, construction supervision, financial management, safeguards compliance, monitoring, and reporting—were implemented by the participating water supply coompanies (WSCs).

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Close executing agency (EA) involvement is essential throughout the implementation phase. But this was lacking in this project, which saw the provincial people's committees, the project EAs, having limited involvement in project implementation. This strengthen the case for stronger central coordination by a line ministry to facilitate timely decision-making and approvals, provide closer supervision, ensure more consistent monitoring and reporting, and promote lessons sharing to improve performance.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Continued timely adjustments in tariffs could make projects financially viable. The project financial reevaluation at completion concluded that the project was financially viable subject to continued timely adjustments in tariff. This has legal basis as Decree 124/2011/ND-CP allows WSCs to propose water tariffs in a tariff roadmap, which provincial governments approve. The tariff roadmaps of the participating WSCs included adjustments every two years. However, only one adjustment was made in 2019–2022 due to the impacts of COVID-19.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Changes during implementation, including design changes and modifications to project components, affect project progress, emphasizing the need for thorough initial planning and further community consultations to avoid disruptions.

Project Number: 45022-002
Project Name: Jiangxi Ji'an Sustainable Urban Transport Project
Report Date:
Lesson
Cost management and quality assurance mitigate the risk of cost increases due to project design changes during implementation. Despite modifications to the project, the final cost aligned closely with the estimates at appraisal as a result of coordinated efforts. A well managed tender process secured favorable offers, while proactive project management throughout the procurement and construction phases ensured cost efficiency and quality.

Project Number: 45022-002
Project Name: Jiangxi Ji'an Sustainable Urban Transport Project
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
Nonmotorized transport improvements, such as pedestrian overpasses, pedestrian paths, segregated cycling lanes and improved sidewalks, boost safety, accessibility, and sustainability. These initiatives also promote a healthier environment and enhance urban livability and connectivity.

Project Number: 45022-002
Project Name: Jiangxi Ji'an Sustainable Urban Transport Project
Report Date:
Lesson
A time-based contract suits consultants better than a lump sum contract as it prevents issues when service extensions are necessary for unforeseen project extensions, which typically imply annual price escalations.

Project Number: 45022-002
Project Name: Jiangxi Ji'an Sustainable Urban Transport Project
Report Date:
Lesson
Urban land acquisition in densely populated areas poses significant challenges. Compensation rates may rise during implementation, driven by urbanization rather than project schedules, potentially causing delays beyond the control of the project. Aligning civil engineering procurement with land acquisition progress is essential to prevent contractual disputes. Close collaboration, clear milestones, and effective communication mitigate risks. Establishing a resettlement information system aids in early issue identification, maintaining transparency.

Project Number: 45022-002
Project Name: Jiangxi Ji'an Sustainable Urban Transport Project
Report Date:
Lesson
Unforeseen events could significantly impact project implementation.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement 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
Project readiness filters and advanced actions are effective tools in mitigating the risk of startup and implementation delays. This project experienced a 2.5-year startup delay, which could have been minimized by implementing project readiness filters and advance actions, including procurement capacity building of the executing and implementing agencies during project preparation.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement 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: