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Lesson
the components should be better prepared and formulated to facilitate their successful implementation

Project Number: 33167-013
Project Name: Small Business Development Project
Report Date:
Lesson
Rigorous due diligence should be carried out on the various proposed components, to ascertain their viability and increase the likelihood of their implementation in practice by obtaining firm upfront commitments from the parties that champion their promotion;

Project Number: 33167-013
Project Name: Small Business Development Project
Report Date:
Lesson
The focus and selection of project components should take into consideration the developmental context of the country and its absorptive capacity;

Project Number: 33167-013
Project Name: Small Business Development Project
Report Date:
Lesson
The need to be aware, during program design, of present or future laws that could impede reform. In this case, the passage of the Decentralization Law (2001) appears to have delayed the enactment of the investment law and to have led to the cancellation of the final loan tranche.

Project Number: 31644-013
Project Name: Industrial Competitiveness and Small and Medium Enterprise Development Program [Loan 1738-INO]
Report Date:
Lesson
One of these pertains to the linking of loan tranche releases with conditions for the passage of new laws. The passage of laws by the Parliament is normally not within the control of ADB or the government. Therefore, the question arises whether such conditions should continue to be imposed by ADB or, if such links are made, whether more time should be allowed for the laws to be passed. In this case, the delay in the passage of the investment law led to the cancellation of the final loan tranche, and thus to diminished efficiency in resource use.

Project Number: 31644-013
Project Name: Industrial Competitiveness and Small and Medium Enterprise Development Program [Loan 1738-INO]
Report Date:
Lesson
The lack of success in restructuring SME Bank also reconfirms lessons identified by IED and other development partners with regard to state bank restructuring, including labor retrenchment and incentive issues, as well as the difficulties associated with privatization such as determining an acceptable sale price and finding reputable strategic investors for a bank with an SME focus. On the positive side, the 7 ADB. 2006. Guidelines for Preparing Performance Evaluation Reports for Public Sector Operations. Manila.

Project Number: 34327-013, 34327-023
Project Name: Small and Medium Enterprise Sector Development Program [Loan 2066-2067- PAK]
Report Date:
Lesson
A credit line operation can be efficiently conducted through a sound operating financial institution focused on sector development. Small Business Guarantee and Finance Corporation's (SB Corporation) healthy institutional and operational structure (supported by the associated technical assistance or TA), coupled with clear, effective laws , have helped it conduct lending operations efficiently and effectively. In other words, vibrant small and medium-sized enterprise (SME) lending operations must be supported by effective policy and institutional arrangements.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
The officer responsible for project design should be involved in the initial stages of project management to ensure a smooth transition from processing to implementation.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
Ministry of Industries, Production, and Special Initiatives (MoIPSI) and the project management unit (PMU) had difficulty in understanding the requirements of the design and monitoring framework (DMF) because it lacked clarity regarding activities and output requirements. The PMU noted that, even though terms of reference had been prepared for individual consultants, the exact purpose of some of the positions and the outputs to be delivered were not clear.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
The project had a high weighting of consultant inputs in the first 6 months. It is unrealistic to expect that international consultant teams can be on the ground and achieving outputs within such a short time frame in countries such as Pakistan, given the difficulties in recruitment. An alternative may be to phase in international consultant inputs later in the project to allow for a more realistic recruitment process. However, application of the streamlined business arrangement principles should provide greater project preparedness for accelerated consultant recruitment.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
The project attempted to indigenize the One Tambon One Product (OTOP) concept that was considered successful in Thailand and Japan. However, only limited efforts were made to understand the likelihood of the success of this initiative in Pakistan. The reasons for the program's success in the other countries and whether the same positives were present in Pakistan were not assessed. Moreover, the success of such projects is often led by a bottom-up grassroots demand for the project outputs, yet this project was a top-down initiative.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
It would have been appropriate if management of the project had been transferred to PRM. This would have facilitated communication, supervision, and resolution of issues as they emerged.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
The concept of a sustainable self-funding Rural Enterprise Modernization Company (REMC) providing BDS in markets with limited ability to pay was an inappropriate design. The services provided are public benefits, which are traditionally the role of government rather than private companies. The lack of private entities currently providing these services in Pakistan reinforces this point.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
The project implementation schedule was amended early in the project to comply with the government's request for immediate action and results via the two- pronged approach. Unless there are clear deficiencies in project design, ADB should resist requests to change the design or implementation arrangements early in implementation, because the original project design should be given a chance to succeed. Corrective action can be taken later as problems become apparent.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date:
Lesson
ADB should monitor the Planning Commission (PC-1) approval process for Pakistan projects so as to be aware of potential problems and ensure that appropriate levels of counterpart funds are guaranteed at the time of loan negotiations.

Project Number: 38447-013
Project Name: Rural Enterprise Modernization Project
Report Date: