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Lesson
The scope and amount of an MFF need to be realistically designed by avoiding an optimistic assumption that the absorptive and implementation capacity of the executing and implementing agencies would achieve a significant improvement during program implementation. Simpler project designs, with specific purposes and fewer agencies involved in a limited number of locations, are also more likely to succeed than those with a broad scope and overly ambitious and complex structures.

Project Number: 37139-023
Project Name: Uttaranchal Power Sector Investment Program - Tranche 1
Report Date:
Lesson
Adequate due diligence at appraisal can ensure appropriate project design and a realistic project implementation plan and timeframe duly considering the borrower's and executing agency's capacity across institutional, financial, and operational aspects. Identifying and implementing risk mitigation measures and providing adequate early-stage support are crucial in minimizing initial delays and addressing emerging project needs. Risks associated with natural disasters can be an integral component of risk assessment at project design.

Project Number: 37139-023
Project Name: Uttaranchal Power Sector Investment Program - Tranche 1
Report Date:
Lesson
Projects designed as emergency assistance loan (EAL) require stronger project performance monitoring system (PPMS) to closely monitor progress and achievements. Since EAL is usually designed fast, there is greater chance that project scope, design, and targets are fluid and call for a very robust monitoring system to ensure that baselines and targets are developed and monitored during implementation and at completion. These include a strong support to measure project benefits that are crucial for EIRR calculations.

Project Number: 49319-001
Project Name: Cyclone Pam Road Reconstruction Project
Report Date:
Lesson
Instituting a dedicated project account can instill cash flow discipline and ensure the exclusive use of payments for the project thus avoiding cash flow problems that can hinder work progress. Contractors in road construction projects in India generally face cash flow issues while executing the project because the funds they receive are diverted from the project to other purposes. This disrupts progress.

Project Number: 49125-001
Project Name: Second Jharkhand State Road Project
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
Regular scrutiny of the financial statements by ADB, coupled with periodic training of finance and project accounts staff, will help expedite financial closure. The financial management arrangements of the recipient and executing agency were robust. Even then, financial closure of the grant account took 1.15 years from the grant closing date because of delays in the liquidation of advances and additional time needed to resolve the statement of expenditures review findings. Financial closing was further exacerbated by COVID-19 in-country lockdown measures.

Project Number: 44240-014
Project Name: Thimphu Road Improvement Project
Report Date:
Lesson
Government resource mobilization efforts to raise supplementary funds to meet the cost of additional components outside the project scope demonstrate its ownership of and commitment to the project and increase the resulting benefits. Footpaths for the road widening works were not included in the original road design but were constructed by the Thimphu thromde using parallel financing. The footpaths enhanced the road design and improved road safety.

Project Number: 44240-014
Project Name: Thimphu Road Improvement Project
Report Date:
Lesson
The design of future irrigation rehabilitation projects can build on the project’s community empowerment model but also consider options for increasing beneficiary contributions for water use. The project increased community ownership and management of irrigation infrastructure through resourcing and strengthening the participation of women and their roles in the water user cooperative societies (WUCSs). Despite gains in irrigation fee collection, the WUCSs and infrastructure O&M requirements are not yet financially sustainable without significant government inputs.

Project Number: 43253-023
Project Name: Karnataka Integrated and Sustainable Water Resources Management Investment Program - Project 1
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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
Widespread assistance from development partners (DPs) in times of crisis could lead to fiscal expansion and unsustainable expenditures that require subsequent downward adjustments. The inflow of DP assistance to support the Republic of Marshall Islands’ (RMI) COVID-19 response plan has masked its structural fiscal deficit and led to expenditures that were unsustainable and needed to be adjusted afterwards. With the pandemic winding down, it has become most important for the country to heed the EconMAP’s recommendation for it take steps to address this fiscal deficit.

Project Number: 54358-001
Project Name: Health Expenditure and Livelihoods Support Program
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Lesson
Less stringent selection criteria, which enables the participation of more eligible financial institutions, could optimize the impact of microlending short-term, low-interest loans in unbanked but regularly earning agricultural communities. The selection of partner participating financial institutions (PFIs) for the microlending component of this project may have been too strict. This resulted in the participation of only 3 of the 6 large PFIs in Tajikistan, all of which are foreign-owned and likely to have been effective partners.

Project Number: 45389-001, 45389-002, 45389-003, 45389-004
Project Name: Building Climate Resilience in the Pyanj River Basin
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Lesson
A thorough assessment of the financial management capacity of executing agencies (EAs) is required to mitigate the risk of financial issues disrupting project implementation or leading to non-compliance to loan covenants/grant agreements. The Agency for Land Reclamation and Irrigation (ALRI), the EA for 2 of this project’s 4 intended outputs, did not monitor the commercial bank that held the advance accounts for said outputs. When the bank became insolvent, part of the advance accounts was frozen, and was refunded only after government intervention albeit with significant delay.

Project Number: 45389-001, 45389-002, 45389-003, 45389-004
Project Name: Building Climate Resilience in the Pyanj River Basin
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Lesson
A project focusing on microfinance could help remove obstacles to micro-insurance or other risk transfer schemes in the agricultural sector. The project did not create a market for micro-insurance as envisaged.

Project Number: 45389-001, 45389-002, 45389-003, 45389-004
Project Name: Building Climate Resilience in the Pyanj River Basin
Report Date: