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LESSONS:

Xinjiang Urban Transport and Environmental Improvement Project: Project Completion Report

sector: Transport, Water and Other Urban Infrastructure and Services | country: China, People’s Republic of

Comprehensive reassessment of implementation issues and timely adjustment of project scope and loan proceeds allocation can prevent delays in implementation and optimize the use of ADB financing, as this project has done.

The Project’s financial charges during implementation (FCDI) were significantly over-estimated because the floating London interbank offered rate (LIBOR) dropped after the 2008 financial crisis and remained low through implementation. Prompt reallocation of the surplus for proper use can avoid loan proceeds cancellation.

The project management office (PMO) serves a critical coordinating function in executing projects that involve several implementing agencies. The PMO’s strong leadership proved crucial for efficient project implementation.

The project implementation consultant was mobilized nearly two years after loan effectiveness because of the long recruitment process, which resulted in a lack of assistance to the PMO and delayed submission of required reports at the beginning of implementation. Early consulting firm engagement should be done by PMOs in the future.

A well planned and implemented capacity building program can significantly strengthen the institutional capacity of PMOs and benefit subsequent ADB urban projects in the Xinjiang Uygur Autonomous Region, as this project has shown.

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