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India: Urban and Environmental Infrastructure Facility Project

sector: Water and Other Urban Infrastructure and Services | country: India

The lessons set out in the project completion report (PCR) were well detailed, and based on the discussion in the text, are fully supported by the Independent Evaluation Department (IED). However, since project implementation, approaches to similar projects have evolved in both ADB and India. In ADB, the sector program approach with accompanying technical assistance (TA) has become the general modality; while in India, financing of urban infrastructure through bond issues and general tax revenue has become more widespread. Hence, ADB should consider the lessons learned from the Project not only for future projects in India, but also in other developing member countries where urban institutions are less developed. For example, financing of large infrastructure projects such as roads, bridges, and dams lend themselves to commercialization; while financing of smaller urban service projects such as water supply and sanitation (WSS) depend largely on local government capacity, tariff policy, and effective project design. These, in turn, require strengthening local government institutional and financial capacities to structure and implement sustainable projects. IED notes that upfront TA projects, such as those proposed in the project preparatory TA, will result in a greater degree of achievement of project outcomes.

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