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Lesson
The selection of suitable participating financial institution (PFI) partners is important to better implement a financial intermediation loan project. PFIs that are financially sound, have good track records, and are committed toward serving rural enterprises and SMEs are likely to be effective in implementing financial intermediation loans.

Project Number: 47305-002, 47305-004
Project Name: Horticulture Value Chain Development Project
Report Date:
Lesson
For interventions in a new country, it is important to assess the capacity of the government’s financial management system thoroughly before launching a project, especially when investing valuable grant resources.

Project Number: 45139-001
Project Name: Mid-Level Skills Training Project
Report Date:
Lesson
In a project involving several ministries, the choice of the executing agency (or agencies) and the role of each ministry must be carefully assessed and discussed with the government and all concerned ministries.

Project Number: 39305-013
Project Name: Urban Public and Environmental Health Sector Development Program
Report Date:
Lesson
A more robust assessment of the ability of the recipient agency to implement the proposed capacity-building activities and hire the required consultants and consulting firms in a timely manner is needed in future technical assistance (TA) loans. A smaller TA package could have been considered in view of the frequent changes that typify much of Mongolia’s national government.

Project Number: 49409-001
Project Name: Strengthening Institutional Framework and Management Capacity Project
Report Date:
Lesson
Thorough preparation of reliable and accurate cost estimates for each subproject is critical to help project implementation. Possible cost changes during implementation need to be kept within the acceptable threshold level and cost contingencies. Substantial cost overrun may lead to cancellation of critical project components.

Project Number: 42414-013, 42414-045
Project Name: Sustainable Urban Transport Investment Program (Tranche 5 and Multitranche Financing Facility)
Report Date:
Lesson
The development of a firm sector investment plan supports successful project implementation. The sector plan, covering the short-, medium- and long-term horizons, helps avoid overlaps of projects that may result in scope changes which could adversely affect the project implementation timeline, funding and cost, and loan utilization. Such an investment plan commits the government to a definite set of projects in the sector that allows for a stable implementation of social and environmental safeguards.

Project Number: 42414-043
Project Name: Sustainable Urban Transport Investment Program - Tranche 3
Report Date:
Lesson
In a federal–provincial type of country having multiple government structures, sectoral functions, and finances are intricately interwoven. Factoring such institutional arrangements fully while designing projects is critical and requires extra effort to ensure an effective coordination and coherence.

Project Number: 46166-001
Project Name: Supporting Human Capital Development in Meghalaya
Report Date:
Lesson
The need for the cancelation of loan savings would be avoided by using realistic cost estimates during project preparation, as pointed out in the project completion report, is an appropriate lesson. However, this validation notes that the actual project cost was 28% lower than appraisal estimates, but the reduction in total ADB loan was 45%, i.e., from an estimate of $463 million to $253 million at program closing. The lower program cost reflected high-cost estimates, but higher counterpart funding was the bigger factor in the cancelation of the loan savings.

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program (Multitranche Financing Facility and Tranche 3)
Report Date:
Lesson
Thorough project costing, including for the subproject components, is essential to smooth project implementation and success. Careful and precise estimation of costs and setting aside resources to cover future price escalations is required.

Project Number: 43405-024
Project Name: Urban Services Improvement Investment Program - Tranche 2
Report Date:
Lesson
Strong ownership of the executing and implementing agencies is key to project success. Adequate consultation with the borrower during project conceptualization and design as well as regular communications during implementation are important to ensure that the executing and implementing agencies are purposively identified, and appropriate institutional arrangements are made to ensure effective and efficient project implementation.

Project Number: 44019-013
Project Name: Hubei Huangshi Urban Pollution Control and Environmental Management Project
Report Date:
Lesson
Project sustainability crucially depends on a financially sound operating agency and a tariff level and structure that ensures sufficient resources to cover costs. Without financial soundness, the risk of an unsuccessful project outcome is high. Thus, it is important to ensure that either there are cost-recovery mechanisms in place or budgetary resources are sufficiently earmarked to cover operation and maintenance expenses.

Project Number: 52256-006
Project Name: Osh-Plotina Water Treatment Plant Chlorine Neutralization Unit
Report Date:
Lesson
Keeping track of the lessons and experience from past relevant interventions can generate rich knowledge and can inform future project designs. In addition, greater attention to understanding the capacities of stakeholders, particularly implementing agencies, is crucial in designing an appropriate implementation arrangement. For ADB, knowing the capacity of the implementing agencies can help better plan the needed support and provide more attention to those that require more support.

Project Number: 48226-003
Project Name: Second Rural Connectivity Investment Program - Tranche 1
Report Date:
Lesson
Preparing, reviewing, and monitoring project cost estimates contribute to a more efficient utilization of project funds. A more in-depth assessment and consideration of currency depreciation factors during project appraisal permits a more robust cost estimate. Under this project, a substantial loan amount was canceled because of the rupee depreciation against the US dollar. In-depth financial planning and cost projections coupled with risk mitigation measures allows for better utilization of loan proceeds.

Project Number: 49125-001
Project Name: Second Jharkhand State Road Project
Report Date:
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
State-owned banks are often used for policy lending that target specific sectors offering low interest rates and preferential terms. It is important that during project preparation, financial intermediaries selected are aligned with the market-based approach of FIL projects to avoid crowding out subloans and nonparticipation of selected intermediaries in lending to the target sector.

Project Number: 47046-002
Project Name: Gansu Featured Agriculture and Financial Services System Development Project
Report Date: