Organizational capacity

In addition to the technical and engineering staff, project management units should include staff with skills in financial management, economics, safeguards, procurement and contracts management, and communication. The project initially encountered difficulties due to the inadequate capacity of the project staff in social and environmental safeguards, contract management, and finance management procedures. An assessment of staff capacity in these areas will identify areas for improvement in future similar projects.

Given capacity constraints and experiences in legal drafting, legal and regulatory developments require a longer timeframe to be considered in ADB's future programs. The program could have further included a targeted capacity-building needs analysis and an associated TA project to directly address capacity constraints and deepen the capacity needed for full implementation.

Executing agency capacity to undertake large and complex irrigation projects can easily be overestimated, and relatively minor issues can delay both startup and/or effectiveness and implementation. In this case, overall implementation was made considerably more complex by the major civil works redesign which impacted procurement and safeguards requirements. Delays in recruiting consultants and getting the Ministry of Economy and Finance to agree to including price revisions in consultants' contract delayed loan effectiveness, in turn startup and implementation.

High staff turnover worsens capacity constraints. In this project, it aggravated lack of capacity to undertake procurement using ADB's Procurement Guidelines and the increased risk of misconduct and delays during implementation. Additional procurement capacity building for executing agency staff during implementation is therefore necessary even if procurement capacity risk is considered minimal at project appraisal.

Early and continuous involvement of financial staff and coordination with development partners are crucial to ensure aptly designed financial management arrangements. This is particularly true for multi-donor funded programs that require harmonization of financial management systems. As these were lacking in this project, significant financial management issues were experienced during implementation.

Proper execution of project administration activities relies on the capacity and commitment of borrowers and agencies involved. It is crucial that executing and implementing agencies are well informed of ADB operational procedures and requirements, especially with respect to financial management. This allows a concerned agency to carry out the project activities appropriately and ensure timeliness.

Because of capacity constraints and experiences in legal drafting, legal and regulatory developments require a longer time which future ADB programs need to consider.

The ability of all participating utilities to successfully adopt and implement organizational changes to meet the project requirements should be assessed, with specialized external support in utility management provided as necessary.

Having an implementing agency with staff who are well-versed in ADB procedures benefits all facets of project implementation and ensures timely project completion. This capacity also provides a strong base for further building the capacity of implementing agencies in asset management and operation and maintenance, and financial management and audits.
which will benefit the implementation and sustainability of future projects.

To support an effective and sustainable exit strategy for beneficiaries, CCTs must strengthen the productive capacity of poor households. With the Philippines CCT law’s 7-year ceiling on duration of family participation,it will be important to communicate clearly with beneficiaries on their co-responsibilities and establish referral pathways.