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Lesson
Targeted support for sector reforms can yield positive results. The grant component of this project developed a sector strategy and road map that was successful in supporting necessary WSS reforms nationally. Similar projects can leverage their added value to the sector through this kind of targeted support for sector reform. Sequencing sector reform support in advance of loans may maximize the benefits.

Project Number: 40007-013
Project Name: Surkhandarya Water Supply and Sanitation Project
Report Date:
Lesson
Results for sanitation components suffer when low investment coincides with low priority. More attention needs to be given to sanitation components, including continuing hygiene awareness campaigns. Improved designs are needed for school toilet blocks, and schools need support for operation and maintenance.

Project Number: 40007-013
Project Name: Surkhandarya Water Supply and Sanitation Project
Report Date:
Lesson
Performance benchmarking systems must be underpinned by sustained institutional support. Benchmarking of district and provincial water utilities’ performance is an invaluable tool in monitoring performance and identifying strengths and weaknesses, allowing problems to be addressed in a timely manner. However, sustained support is required to ensure these benchmarking systems are effective. It is suggested that MHCS reviews the benchmarking system in all provincial water utilities and develops a plan for filling any gaps.

Project Number: 40007-013
Project Name: Surkhandarya Water Supply and Sanitation Project
Report Date:
Lesson
ADB project documents need to be clear on how projects are to lead to sustainable results. The absence of consultants to address issues regarding the legal and technical aspects of O&M planning and funding, measures for cost recovery, tariff collection, and the metering system posed a risk to the sustainability of the water supply and sanitation subprojects. Future projects should include technical assistance that would implemented concurrently with the project.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
Loans for the Municipal Development Funds should be implemented as proper financial intermediary loans. The projects were designed as financial intermediation loans largely because the government wanted to disburse funds and execute subprojects quickly. MDF had the capacity and had prior experience of implementing such loans through an earlier World Bank project.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
ADB needs to invest in a good PPMS. The evaluation mission’s difficulty in measuring the efficiency of water supply and road subprojects financed under MSDP and MSDP Phase 2 was the result of an inadequate PPMS that focused mainly on monitoring disbursements and outputs. Baseline data were not collected on the market served by water supply subprojects, such as the number of households, persons per household, water sources, amounts of water produced and consumed, and water loss rates.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
Allocations for capacity building components need to be maintained. Discussions and interviews with MDF staff and municipal governments during the evaluation mission pointed to the need for further capacity building of MDF and municipal governments. This was one of the objectives of the projects.

Project Number: 41198-013, 43171-013
Project Name: Municipal Services Development Project and Municipal Services Development Project Phase 2
Report Date:
Lesson
Knowledge about local context and political dynamics will be important, as well as investing enough time for dialogue and consultation with local stakeholders.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
Finding the right balance of complexity is important, and ADB should spend enough time during project preparation to decide how complex or simple the project scope will be. Lessons from evaluation studies indicate that projects with fewer subprojects are easier to manage and achieve better results.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
It is easier to build new infrastructure than to repair the existing infrastructure, in terms of both cost and political benefit/visibility. Local authorities and ADB have focused on new infrastructure in the past. Replacing old and leaky water lines is expensive, not because of the water pipe itself, but because of road repairs and related traffic disruption in busy, already overcrowded lanes and streets. These associated expenditures cost several times more than the water line itself, and are often underestimated.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
Future projects need to develop clear rules and obligations for efficient water sharing. ADB loan covenants need to ensure that city governments, with assistance from state and national governments, resolve cost-sharing arrangements before the project is closed and assets are transferred.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
Integrated infrastructure development also includes optimizing the design of the facilities so that cost is minimized and the service coverage maximized. This may entail sharing the use of a facility between adjacent cities if that is a cheaper alternative compared to providing standalone facilities for each city.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
ADB should promote a policy dialogue for water sector reforms at the national or state level on the best institutional arrangements for urban-rural sharing of water.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
Municipal governments need to strategize how to achieve wider water supply coverage, including exploring cross-subsidies between industrial/commercial users and household consumers, and providing subsidized connections to low-income families.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date:
Lesson
The state government needs to provide financial incentives to encourage ULBs to take their tariff setting and revenue collection more seriously. Such incentives should be performance driven, and preferably also underpinned by accountability agreements between the state government and the ULBs.

Project Number: 30303-013
Project Name: Karnataka Urban Development and Coastal Environmental Management Project
Report Date: