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LESSONS:

Central Region Urban Environmental Improvement Project

sector: Water and Other Urban Infrastructure and Services | country: Viet Nam, Socialist Republic of

1. The recruitment of consultants by executing agencies remains time-consuming. This problem is not specific to the project, but common in all ADB-financed projects in Viet Nam. Delays in consultant recruitment result in delays of the entire associated project. In the future, advance actions and project readiness filters should be applied to minimize start-up delays.

2. The loan covenants required compliance with most financial covenants within a certain number of months from the loan effectiveness date. It would be better to link the achievement of such covenants to the delivery date of project assets instead of the loan effectiveness date.

3. Sanitation coverage indicators should be simplified by using nominal targets rather than ratios. Monitoring of coverage ratios requires that two independent parameters – physical outputs and population growth – be known. This is complicated by the continuing growth of the service areas under the control of the concerned utilities.

4. The project provided sufficient resources to implement gender-focused design features. The provision of adequate resources is critical to both successful design and effective implementation of the gender action plan. The project was an excellent example of how attention to gender equality through a comprehensive and well-targeted gender action plan can lead to practical and strategic gender equality results.

5. The calculation of the economic and financial internal rates of return at appraisal should be made in a manner that facilitates their re-evaluation at project completion.

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