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Lesson
Developing a financial operation and maintenance (O&M_ mechanism during project design and preparation plays a critical role in ensuring project sustainability, specifically when the government’s resource capacity is limited. For example, appropriate identification of tariff policies, revenue streams, and cost recovery mechanisms at the onset to support the O&M cost will help in ensuring the project sustainability, as well as in sustaining the project benefits.

Project Number: 43253-023
Project Name: Karnataka Integrated and Sustainable Water Resources Management Investment Program - Project 1
Report Date:
Lesson
Early engagement with provincial governments can contribute to identifying and avoiding delays due to land acquisition issues. Based on the experience of forcible entry by local communities into two HPP sites, new projects are emphasizing the role of social safeguards and early consultation of local populations. The positive experience of engaging with the provincial government, which contributed to the eventual delivery of the Divune HPP under tranche 1, can serve as a lesson for future projects.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Unclear or lack of institutional arrangements and inappropriate deployment of consultants are a serious deterrent to the systematic Implementation of environmental management plans and social safeguards.

Project Number: 40648-013, 40648-037
Project Name: Infrastructure Development Investment Program for Tourism (Tranche 4 and Multitranche Financing Facility)
Report Date:
Lesson
India's policy on land acquisition needs an amendment in cases where sufficient land for improvement is not voluntarily available. This would allow for permission te be granted outside the scope of the policy, as necessary. As of 2022, the Prime Minister’s Rural Roads Program (PMGSY)is being implemented with no land acquisition. Where land is required, only voluntary-based possession is allowed. If sufficient land cannot be pooled on a voluntary basis, a geometric design is used as a compromise. However, these locations may become accident black spots.

Project Number: 48266-002, 48226-004
Project Name: Second Rural Connectivity Investment Program (Tranche 2 and Multitranche Financing Facility)
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Lesson
Safeguard actions required for non-RBL projects are largely unsuitable for RBL programs, and this needs to be considered to improve the safeguard system assessments and categorization of future RBL programs. While safeguard concerns were satisfactorily resolved in the program, some actions in the safeguard action plan were more appropriate for a typical investment project than for an RBL program. For example, the safeguard action plan indicated the disclosure of environmental documents of senior high school classroom construction.

Project Number: 45089-002
Project Name: Senior High School Support Program
Report Date:
Lesson
Adequate consultations with local populations throughout the project cycle are a must especially when land ownership is ambiguous and no outstanding land compensation cases are identified.Local populations forcibly entered the two HPP project sites demanding compensation for historical events, in one of which sites, violence was used. The historical events were not identified by due diligence, which concluded that there were no land acquisition and involuntary resettlement impacts.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Sound identification and valuation of costs and benefits in the economic analysis can provide more realistic economic internal rates of return (EIRRs) to indicate a more accurate state of project viability. The economic analysis in the RRP and PCR underestimated the value of the project outputs, particularly the economic benefits of the solid waste management component, which led to a low EIRR. Willingness-to-pay $2 per month for solid waste removal seems too low and unreasonable considering the substantial health and environmental benefits that such removal likely provides.

Project Number: 45507-003
Project Name: Yunnan Chuxiong Urban Environment Improvement Project
Report Date:
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
Report Date:
Lesson
Assessment of potential political risks such as a change in government and identifying mitigation measures could help ensure the continuity of planned project activities, specifically when there is strong support, ownership, and commitment of an agency. In particular, it is important to consider the speed and direction of change in the policy regime. For example, a shift in the government priorities could trigger resource allocation that could potentially affect how a project could deliver its intended development results.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
With the project's investment in improving wastewater treatment, solid waste management and recycling, an opportunity arose to establish and impose full cost recovery tariffs and charges for these activities. Appropriate tariff studies could have been undertaken and with recommendations for replication in other towns.

Project Number: 43319-022
Project Name: Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Report Date:
Lesson
Allowances for possible cost increases in civil works can mitigate the effects of unforeseen geological conditions.

Project Number: 41627-023, 41627-033
Project Name: Himachal Pradesh Clean Energy Development Investment Program (Tranches 1 and 2)
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Lesson
Early preparation and set up of funding design and mechanisms to meet the financial requirements of facilities and equipment's operation and maintenance after project completion can mitigate sustainability risks of project investments. In this project, there was no clarity on how maintenance of project infrastructure and equipment were to be funded after project completion. Thus, it reduces the project's sustainability.

Project Number: 48236-001
Project Name: Strengthening Community Resilience to Dzud and Forest and Steppe Fires Project 
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Lesson
Potential problems with funding the maintenance of completed subprojects and/or facilities arise when they highly rely on government budgetary allocations that may or may not materialize in the short- and medium-terms. This can lead to poor periodic maintenance, especially for road routine maintenance. In future projects, consideration could be given to performance-based road maintenance contracts where a period of maintenance is included (e.g., 5 years after completion) in the contracts.

Project Number: 43319-022
Project Name: Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Report Date:
Lesson
Estimation of the project cost requires a greater anticipation of potential cost overrun/underrun that may arise during implementation. During appraisal, a more in-depth examination and consideration of factors related to currency depreciation permits a more robust and realistic cost estimates. Under this project, a substantial loan amount was cancelled due to the rupee depreciation. A careful financial planning and cost projections coupled with risk mitigation measures and monitoring allows for better utilization of loan proceeds.

Project Number: 46417-001
Project Name: Jaipur Metro Rail Line 1-Phase B Project
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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: