Close monitoring of and prompt responses to policy changes ensure smooth implementation and compliance to covenants. During project implementation, the executing agency took prompt action to change the scope of the project when one of the original subcomponents was not in compliance with the new issued development plan. This enabled the project to avoid compliance issues and be carried out smoothly.
Lack of project readiness can seriously deter project implementation. The project completion review of tranche 1 indicates that the project was not ready for financing. During preparation of the project, the towns of Marneuli and Zugdidi were replaced by Kutaisi, Poti, and Ureki because of changing government priorities and the planned development of a seaside resort at Ureki. This necessitated a major change in scope that delayed project startup. Additional time was also needed for capacity building and to increase awareness of the project among the IA staff.