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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
A well-designed project performance management system (PPMS) from the outset can enhance the quality of economic analyses. This system facilitates the systematic collection of data on project benefits and pertinent metrics, enabling the monitoring of project performance until completion. Specifically, monitoring the project's progress, identifying areas for improvement, and collecting socioeconomic data through a PPMS, could all help establish a comprehensive assessment of a project’s development results and improve the quality of economic analysis.

Project Number: 41403-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
The development of a regulatory framework alongside the preparation of a project’s technical design could help enhance the autonomy and sustainability of water utilities. This, in turn, could lead to improved service delivery and better maintenance of project assets. Such a framework could include mechanisms for independent oversight and regulation of water utilities' operations and performance, as well as the provision of clear guidelines and policies for tariff setting and cost recovery, among other aspects.

Project Number: 41403-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
Managing implementation during emergency situations requires a flexible and adaptive approach. Amod the COVID-19 pandemic, PMU and PIU systems were based on (i) adjusted work practices, (ii) limited staff movements and restrictions on international and national travel, (iii) changes in consultant resource use and approach, (iv) supplier delays and reduced contractor capacity, and (v) assessments of the impact on implementation timelines, and planning extensions, as required.

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
Flexibility in project design is required to respond to changes in subproject scale and adapt capacity support to the changing needs. This project was implemented across eight provinces, with significant differences in the size and scope of provincial waterworks (PWW) subprojects and local capacities. A flexible design was crucial to its successful implementation.

Project Number: 41403-013
Project Name: Urban Water Supply 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
Establishing well-staffed and operational project management units (PMUs) and project implementation units (PIUs) as early as possible is essential for effective implementation. Timely recruitment and mobilization of project implementation consultants will also ensure that technical resources are in place to support the PMUs and PIUs. Delays in consultant recruitment and high turnover in specialized areas need to immediately addresses as these could adversely impact project activities.

Project Number: 41403-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
Institutional arrangements to implement mandatory safeguard polices and reporting systems and gender action plans need to be established in the initial stages of the project. This is to avoid potential delays which could adversely impact project adherence to social and environmental safeguards and gender equality results. Adequate human, rechnical, and budgetary resources and strict monitoring by the PMU and ADB are required to ensure compliance.

Project Number: 41403-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
It is particularly important for complex sector development programs to (i) better plan the completion timeline, (ii) avoid linking performance indicators to multiple targets, and (iii) include in the project scope components that will address major beneficiary needs (house service connections in this program) that would enhance program relevance. The weak institutional capacity of implementing agencies and water source sustainability affected the project’s effectiveness and sustainability. The gender equality and social inclusion design could also have been better aligned.

Project Number: 42267-026
Project Name: Rajasthan Urban Sector Development Program
Report Date:
Lesson
Source sustainability issues leading to disruptions in the water supply and contributing to increases in nonrevenue water and infrastructure leakage index consequently impact service delivery and monitoring.

Project Number: 42267-026
Project Name: Rajasthan Urban Sector Development Program
Report Date: