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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
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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
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Lesson
Timely processing of changes in scope, implementation, and disbursement arrangements strengthen implementation and enhance project relevance.

Project Number: 44240-013
Project Name: Urban Infrastructure Project
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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
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Lesson
Attainment of project benefits not within the project scope but instead are dependent on external factors downgrades project performance evaluation. The design and monitoring indicators included household sewerage connections, which were not part of the subprojects’ scope but were provided by the respective urban local bodies (ULBs). This led to dependence on external factors in the accrual of project benefits, thus impacting the final evaluation.

Project Number: 38254-013, 38254-063
Project Name: North Karnataka Urban Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
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Lesson
Implementing urban infrastructure and providing universal municipal services within growing towns face complex ground-level challenges hence requiring more time for implementation.

Project Number: 38254-013, 38254-063
Project Name: North Karnataka Urban Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
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Lesson
Not considering adequate funding options and provisions for operations and maintenance (O&M) during the design phase can lead to sustainability issues after project completion. It is critical that a systematic plan for O&M design and measures are developed at the outset, considering the agencies' financial capabilities and attendant risks such as low levels of tariff rates.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
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Lesson
Adequate and competent social and environmental safeguards staff need to be onboard throughout a project's life to ensure effective Implementation of safeguard requirements.

Project Number: 35290–013, 35290–043
Project Name: North Eastern Region Capital Cities Development Investment Program (Tranche 3 and Multitranche Financing Facility)
Report Date:
Lesson
Adequate operation and maintenance (O&M) allocations, supported by feasible, long-term financing plans, are necessary to ensure the sustainability of project facilities and benefits. Furthermore, effective O&M planning is required for effective utilization of the assets and provisions for improved service delivery to citizens.The O&M of the constructed plants, landfills, and other subprojects in the program cities lacked operational governance, proper record keeping, and manpower planning, which started in project 1 affecting the subsequent projects.

Project Number: 35290–013, 35290–043
Project Name: North Eastern Region Capital Cities Development Investment Program (Tranche 3 and Multitranche Financing Facility)
Report Date:
Lesson
Inaccurate projections can reduce the financial viability of projects and lead to unoptimal use of resources. At project appraisal, populations in Anaklia and Mestia were forecast to grow significantly with Anaklia’s planned port construction and tourism development of Mestia as an international ski resort and historic heritage site. As it turned out, towns in Georgia, including the three towns, witnessed out-migration and reduction in population in the last decade.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Cost overrun can potentially result in a decrease of intended benefits and lower achievement of project outcome. Appropriate estimation of project costs, including contingencies, at appraisal helps in reducing the cost overrun during implementation that could have serious implications on project implementation, given limited funding resources. For instance, a more rigorous consideration of design, including alternative designs and least-cost options, are important to help improve a project’s financial planning and accuracy of cost estimates.

Project Number: 38560-022
Project Name: Second Rural Water Supply and Sanitation Sector Project
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Lesson
Project facilities need to be turned over to local governments to ensure long-term operational and institutional sustainability. Municipalities did not exist in many towns at project appraisal. Hence, water user associations (WUAs) led the project. Since the service areas of individual WUAs are now a part of their respective municipality, municipalities are expected to support the operation and maintenance (O&M) of the water supply and sanitation facilities to ensure long-term operational and institutional sustainability

Project Number: 35173-013
Project Name: Third Small Towns Water Supply and Sanitation Sector Project
Report Date:
Lesson
The project’s innovative and sustainable model ─ of shared cost and responsibility ─ is highly replicable and may be scaled up in similar contexts. The project was built on the approach and principle of shared cost and shared ownership between the users and the government. This innovative model of implementation and service delivery has brought about remarkable achievements in improving the people’s living standards in the project towns. People now have access to 24/7 safe water, O&M is smooth, women’s time poverty has decreased, and girls’ school attendance has increased.

Project Number: 35173-013
Project Name: Third Small Towns Water Supply and Sanitation Sector Project
Report Date:
Lesson
Projects require an in-depth assessment of ownership and use of land. Procurement for the Butwal auto village subprojects (AVS) was severely delayed by land ownership issues. The automobile enterprises were located on land leased from the municipality intended only for establishment of automobile enterprises, but the entrepreneurs used the land for business and residential purposes. These entrepreneurs were skeptical that their existing land uses could continue if they entered into a public-private partnership agreement, and thus protested the AVS.

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
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