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Lesson
The design and effective implementation of a project performance monitoring system is essential to the economic and financial evaluation of water supply and sanitation projects. The collection of benefits data helps in the identification, quantification, and valuation of economic and financial benefits for evaluation during and after project completion

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
Report Date:
Lesson
Project sustainability crucially depends on a financially sound operating agency and a tariff level and structure that ensures sufficient resources to cover costs. Without financial soundness, the risk of an unsuccessful project outcome is high. Thus, it is important to ensure that either there are cost-recovery mechanisms in place or budgetary resources are sufficiently earmarked to cover operation and maintenance expenses.

Project Number: 52256-006
Project Name: Osh-Plotina Water Treatment Plant Chlorine Neutralization Unit
Report Date:
Lesson
Small projects in the water supply and sanitation sector have high capital costs relative to larger projects where economies of scale are a factor and affect tariff levels and affordability in smaller communities. Government budgetary support is necessary to ensure operation and maintenance and long-term benefits when economies of scale are absent. Budgetary support also maintains affordable tariffs for the most disadvantaged.

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
Report Date:
Lesson
A clear sector assessment and plan can strategically enhance the effectiveness and sustainability of sector investments. The sustained government plan of the Prime Minister’s Rural Road Program (PMGSY) provided a strong foundation for the sector to have a clear set of subprojects and financing commitments from the government. In addition, its priority to operate and manage these roads sustainably led to a more relevant design focused on the non-physical component of investments—road management, road audit, and road safety.

Project Number: 48226-003
Project Name: Second Rural Connectivity Investment Program - Tranche 1
Report Date:
Lesson
A project performance management system (PPMS), which was not included in the project design, could have been beneficial for identifying, quantifying, and valuing economic benefits, and help in evaluating the extent of the project’s effectiveness and sustainability

Project Number: 38254-053
Project Name: North Karnataka Urban Sector Investment Program (Tranche 3)
Report Date:
Lesson
Financial sustainability of project assets and benefits, in this case, the sanitary and phytosanitary system, should be addressed at the outset or during implementation and not only identified as an issue at appraisal, and establishing appropriate financing mechanisms for operation and maintenance at the outset would help ensure adequate maintenance after project completion.

Project Number: 43120-013
Project Name: Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade Project
Report Date:
Lesson
Strong government commitment and ownership are crucial to the quality of project preparation and sustainability. Specifically, establishing a clear institutional arrangement (such as, which agency performs the routine and periodic maintenance, among other things) and sound operation and maintenance strengthens the funding mechanisms of the project after completion. In this project, the government showed a high degree of ownership in ensuring that adequate budgetary sources are in place to ensure the financing of routine road maintenance.

Project Number: 45389-001, 45389-002, 45389-004
Project Name: Second Road Network Development Investment Program (Multitranche Financing Facility and Tranches 1 and 2)
Report Date:
Lesson
The project highlighted the importance of safeguarding the nation’s wealth fund (State Oil Fund of the Republic of Azerbaijan or SOFAZ) to ensure that social programs and development priorities are sustained. In times when the nation’s wealth fund can be compromised due to external factors, exploring and pursuing viable funding options to meet the government’s financial obligations can ease pressures on the use of the fund other than its intended purposes.

Project Number: 49451-002
Project Name: Shah Deniz Gas Field Expansion Project
Report Date:
Lesson
A detailed assessment of water adequacy and the introduction of proper operation and maintenance measures and an adequate level of water charges are critical to successful outcome and long-term sustainability of irrigation projects.\

Project Number: 45354-002
Project Name: Building Climate Resilience in the Pyanj River Basin
Report Date:
Lesson
Urban development projects typically involve a variety of risks in the course of its implementation and execution of activities. Formulating appropriate project design and risk assessment during preparatory phase is critical to minimize start-up and implementation delays. This includes a systematic appraisal of the project’s technical scope and engineering design, project cost and contingencies, environmental and social safeguards, and financial and contractual risks.

Project Number: 43023-013
Project Name: Guangxi Beibu Gulf Cities Development Project
Report Date:
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
The selection of subprojects and project timeliness need to consider the Implementation complexity (such as topography, adverse weather conditions at the construction site, and the need for specialized experts), experience of the executing agency, availability of specialist contractors, and available working seasons.

Project Number: 40648-013, 40648-037
Project Name: Infrastructure Development Investment Program for Tourism (Tranche 4 and Multitranche Financing Facility)
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: