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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
Report Date:
Lesson
Weak financial management performance of executing agencies and systemic issues could affect timely compliance to covenants. Under this project, the covenants related to the annual project financial statements (APFSs) and audited entity financial statements (AEFSs) were fully complied with. However, submissions were delayed due to financial management and systemic issues. As a result, submission of annual audits conducted by statutory auditors appointed by the state government was likewise routinely delayed.

Project Number: 42266-013, 42266-023
Project Name: Kolkata Environmental Improvement Investment Program - Tranche 1
Report Date:
Lesson
Assessment of risks related to tariff policy implementation needs to be included in the project preparatory tehnical assistance to ensure that these risks are addressed in the project design. The risk assessment in the design phase did not adequately discussethe feasibility of fully implementing the water tariff policy, and accordingly plan the mitigation measures.

Project Number: 42266-013, 42266-023
Project Name: Kolkata Environmental Improvement Investment Program - Tranche 1
Report Date:
Lesson
Imprest fund and direct payment procedures could impact timely advance fund payment, leading to delays. Direct payment and reimbursement procedure was used by the project until 2018. This was discontinued in accordance with the policy change of the Government of India. Disbursements were on track— from the first disbursement on 12 September 2014—and reached 88.3% of the revised loan amount by the end of the original loan closing date of 30 June 2019.

Project Number: 42266-013, 42266-023
Project Name: Kolkata Environmental Improvement Investment Program - Tranche 1
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
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
Better coordination and the Preparation of a consolidated project financial statement for projects being implemented by multiple agencies will facilitate the timely submission of annual project financial statements (APFSs) which in turn will help avoid delays in loan disbursements. In this program, the Preparation by the two EAs of separate annual project financial statements, both audited by an external auditor, created an unnecessary administrative overload for ADB.

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
Lack of tariffs and insufficient operation and maintenance (O&M) budgets threaten the sustainability of water supply and sanitation facilities in FSM. The water supply and wastewater components are unlikely to be sustainable because of the unwillingness to charge for services, and the insufficiency of annual O&M budgets.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The quality of project implementation relies on the capacity of borrowers and agencies. It is crucial that executing and implementing agencies are familiar with ADB procedures and requirements, specifically in the procurement process, safeguards’ policies, and financial management. This will enable the agencies to better manage project-related activities and avoid unnecessary start-up delays during implementation.

Project Number: 38272-013, 38272-033
Project Name: Uttarakhand Urban Sector Development Investment Program (Tranche 2 and Multitranche Financing Facility)
Report Date:
Lesson
The financial health of key project agencies needs to be thoroughly assessed at project preparation to determine their viability and identify the proper risk mitigation measures. Although a financial management assessment was conducted for the implementing agency, the United Water Supply Company of Georgia Limited Liability Company (UWSCG) during project preparation, the assessment only pointed to a need for training in accounting and reporting, preparing business plans, determining tariffs and procurement.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Project partnership agreements with government on human resources and funding are critical to effective implementation and sustainability. While initially the project national project implementation unit had issues on staffing, procurement, and implementation, these were resolved with incremental additional staffing, recruitment of a small core team of individual consultants, and restructuring to a subproject management unit. The non-recruitment of a social development specialist; to be funded by the government, affected the Gender action plan monitoring and planned survey update.

Project Number: 44130-022
Project Name: District Capitals Water Supply Project
Report Date:
Lesson
Sufficient funding must be ensured to cover all investment needs for rehabilitation and expansion of water supply infrastructure. This requires rigorous assessment of technical and institutional capacity (including for operation and maintenance or O&M) of the implementing agency and economic aspects (including life cycle costing) to determine whether to invest in a total new system at higher initial capital cost or to utilize parts of existing infrastructure to enable lower capital cost but likely higher levels of O&M costs.

Project Number: 44130-022
Project Name: District Capitals Water Supply Project
Report Date:
Lesson
Timely partial cancellation of unutilized loan funds should be undertaken to save on commitment charges. Disbursement projections at effectiveness were not met because of initial procurement delays. However, the projections revised during implementation were realistic, with over 90% of loan amount disbursed by project closure in 2017. When it was anticipated that entire loan funds may not be utilized even within extended loan period, the executing agency (EA) could have undertaken partial cancellation of loan funds. This would have allowed some savings in commitment charges.

Project Number: 38254-053
Project Name: North Karnataka Urban Sector Investment Program - Tranche 3
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: