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Lesson
An institutional analysis undertaken during appraisal phase helps provide an assessment of the technical capacity of concerned institutions as this is essential in ensuring smooth project implementation activities. Such analysis could include a political-economy assessment that could help strengthen project preparation activities, especially in assessing possible changes to policies and government priorities.

Project Number: 39256-023, 39256-024
Project Name: Urban Transport Development Investment Program (Multitranche Financing Facility andTranche 1)
Report Date:
Lesson
Performing adequate risk assessment and identifying mitigation measures accordingly at appraisal, including sufficient stakeholder consultations, are important measures in ensuring smooth project implementation and readiness. Specifically, safeguards risk assessment would benefit from a thorough due diligence and analysis of project risks, which reduces the potential safeguards related issues, specifically with respect to land acquisition and resettlement compensation.

Project Number: 47281-001
Project Name: National Highway Network Development in Balochistan Project
Report Date:
Lesson
Developing outcome and output indicators that are consistent with the project design allows appropriate assessment of project achievement against the defined targets. Well-formulated indicators support the accurate measurement of project achievements as defined in the design and monitoring framework. For example, the reduction in transport costs could be directly measured by lower transport fares and vehicle operating costs.

Project Number: 47281-001
Project Name: National Highway Network Development in Balochistan Project
Report Date:
Lesson
Clear identification and selection of appropriate performance target indicators during the project design stage supports the achievement of a project’s intended outcome. Adequate technical assessment on outcome and output target indicators facilitates clear tracking and measure of project’s achievement at completion. Furthermore, the importance of target indicators and its consistency between outcome and output statements are essential to demonstrate the project results.

Project Number: 44240-014
Project Name: Thimphu Road Improvement Project
Report Date:
Lesson
The provision of technical assistance to support the project preparatory stage and capacity of the executing and implementing agencies enhances the quality of project administration. For example, building the capacity skill set of agencies on financial and procurement management prior to the onset of a project would benefit the timely execution of procurement activities and civil works. This helps in reducing any potential risk that could arise because of delayed start-up and/or implementation.

Project Number: 44240-014
Project Name: Thimphu Road Improvement Project
Report Date:
Lesson
Financing a series of smaller projects within a broader financing structure can provide efficient infrastructure improvement support on a larger scale. Although the project completion report indicated that these types of projects should contain fewer districts to reduce the implementation burden, the report confirmed the efficacy of the project. Therefore, to provide large-scale infrastructure, it may be preferable to finance a series of smaller projects within a broader financing structure, such as a multitranche financing facility.

Project Number: 45084-002
Project Name: Coastal Climate-Resilient Infrastructure Project
Report Date:
Lesson
A project performance management system provides a framework to assess the project results better. It incentivizes a sound evaluation of a project as well strengthening the basis of development impact. This is essential for a rural development project where project’s intended benefits and development impacts are not easily identified or quantified.

Project Number: 45084-002
Project Name: Coastal Climate-Resilient Infrastructure Project
Report Date:
Lesson
The direct link between an output and outcome indicator has to be evident and any scope change affecting the output has to be assessed as this relates to the envisaged outcome target. Cancellation of a subproject during implementation could trigger a revisit of the related outcome indicators at midterm review.

Project Number: 42414-013, 42414-045
Project Name: Sustainable Urban Transport Investment Program (Tranche 5 and Multitranche Financing Facility)
Report Date:
Lesson
Thorough preparation of reliable and accurate cost estimates for each subproject is critical to help project implementation. Possible cost changes during implementation need to be kept within the acceptable threshold level and cost contingencies. Substantial cost overrun may lead to cancellation of critical project components.

Project Number: 42414-013, 42414-045
Project Name: Sustainable Urban Transport Investment Program (Tranche 5 and Multitranche Financing Facility)
Report Date:
Lesson
Proper assessment of the borrower’s capacity and those of the executing agencies during the preparation phase supports project implementation which will help achieve the desired output and results. A delay in one key project component, due to weak capacity of agencies, could likely cause further delays in the subsequent activities such civil works which hampers the overall project implementation timeline.

Project Number: 44483-023, 44483-024, 44483-026, 44483-027
Project Name: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program (Tranche 3 and Multitranche Financing Facility)
Report Date:
Lesson
Performing an adequate level of due diligence and risk assessments at the early stage of project preparation increases the quality of project design and readiness. For example, preparatory work for procurement planning and administration of abnormally low bids (e.g., prequalification of bidders) supports and better streamlines the procurement process and avoids substantial changes in a project design and scope.

Project Number: 44483-023, 44483-024, 44483-026, 44483-027
Project Name: Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program (Tranche 3 and Multitranche Financing Facility)
Report Date:
Lesson
It is important that performance indicators are results-oriented rather than process-oriented. .The performance targets set out in the design and monitoring framework (DMF) were more process- than results oriented in terms of targeting developing systems, and producing reports, assessments, and reviews. The completion of a report or review or assessment, for instance, was judged as an accomplishment. Instead, the indicators should have reflected the actual implementation of the recommendations.

Project Number: 49409-001
Project Name: Strengthening Institutional Framework and Management Capacity Project
Report Date:
Lesson
A more robust assessment of the ability of the recipient agency to implement the proposed capacity-building activities and hire the required consultants and consulting firms in a timely manner is needed in future technical assistance (TA) loans. A smaller TA package could have been considered in view of the frequent changes that typify much of Mongolia’s national government.

Project Number: 49409-001
Project Name: Strengthening Institutional Framework and Management Capacity Project
Report Date:
Lesson
The absence of a financial cost-benefit evaluation for the toll revenue-generating motorway is a methodological weakness. The project completion report (PCR) did not explain why it did not conduct a financial cost-benefit evaluation for the toll revenue-generating motorway. This validation notes that the RRP too did not conduct such evaluation.

Project Number: 48402-001, 48402-002
Project Name: National Motorway M–4 Gojra–Shorkot Section Project and National Motorway M–4 Gojra–Shorkot–Khanewal Section Project - Additional Financing
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Lesson
Due diligence for future projects should include developing a thorough understanding of the institutional setup and internal review and approval procedures as well as mapping out effective mitigation measures to minimize delays. This project's implementation was affected by cumbersome approval mechanisms at the executing agency (EA) headquarters for contract variations and extensions. Frequent interventions by ADB and EA top management were required to expedite decision-making.

Project Number: 48402-001, 48402-002
Project Name: National Motorway M–4 Gojra–Shorkot Section Project and National Motorway M–4 Gojra–Shorkot–Khanewal Section Project - Additional Financing
Report Date: