Bangladesh: Second Small-Scale Water Resources Development Sector Project
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1 Validation Report Reference Number: PVR-312 Project Number: Loan Number: 1831 July 2014 Bangladesh: Second Small-Scale Water Resources Development Sector Project Independent Evaluation Department
2 ABBREVIATIONS ADB Asian Development Bank ADTA advisory technical assistance BME benefit monitoring and evaluation EIA environmental impact assessment IEE initial environmental examination IWRMU Integrated Water Resources Management Unit LCS labor contracting societies LGED Local Government Engineering Department NGO nongovernment organization O&M operation and maintenance PCR project completion report PMO Project Management Office PPER project performance evaluation report SSW-1 First Small-Scale Water Resources Development Sector Project WMCA water management cooperative association NOTE In this report, $ refers to US dollars. Key Words asian development bank, bangladesh, capacity building, empowerment of women, local water resources management, micro-credit program, participatory water resources development, sustainable poverty reduction, water management cooperative associations, women beneficiaries. The guidelines formally adopted by the Independent Evaluation Department (IED) on avoiding conflict of interest in its independent evaluations were observed in the preparation of this report. To the knowledge of IED management, there were no conflicts of interest of the persons preparing, reviewing, or approving this report. In preparing any evaluation report, or by making any designation of or reference to a particular territory or geographic area in this document, IED does not intend to make any judgments as to the legal or other status of any territory or area.
3 PROJECT BASIC DATA Project Number: PCR Circulation Date: Aug 2012 Loan Number: 1831 PCR Validation Date: Jul 2014 Project Name: Second Small-Scale Water Resources Development Sector Project Country: Bangladesh Approved ($ million) Actual ($ million) Sector: Agriculture and Total Project Costs: natural resources ADB Financing: ($ million) ADF: Loan: (SDR equivalent, million) Borrower: OCR: 0.00 Beneficiaries: Others: Cofinancier: Government of Total Cofinancing: Netherlands Approval Date: 12 Jul 2001 Effectiveness Date: 30 Nov Nov 2001 Signing Date: 1 Aug 2001 Closing Date: 31 Dec Jun 2010 Project Officers: Validator: Quality Reviewer: K. Yokoyama M. Dembinski K. H. Ryu A. K. Saha Z.U. Ahmad E. Lopez-Dee, Consultant E. Gozali, Principal Evaluation Specialist, IED1 Location: ADB headquarters ADB headquarters Bangladesh Resident Mission Bangladesh Resident Mission Bangladesh Resident Mission Peer Reviewer: Director: From: Dec 2001 Mar 2002 Jun 2002 Mar 2004 Dec 2005 To: Feb 2002 May 2002 Feb 2004 Nov 2005 Dec 2010 K. Hughes, Senior Evaluation Specialist, IED1 W. Kolkma, IED1 ADB = Asian Development Bank; ADF = Asian Development Fund; IED1 = Independent Evaluation Department, Division 1; OCR = ordinary capital resources; PCR = project completion report; SDR = special drawing right. A. Rationale I. PROJECT DESCRIPTION 1. Poverty remains a pervasive problem in Bangladesh. In a country where 80% of the population lives in rural areas and where population density is one of the highest in the world, its poverty level at appraisal stands at 46%. 1 The country is highly dependent on the agriculture sector particularly paddy rice cultivation, which accounts for about a third of the gross domestic product (GDP) and employs 60% of the labor force. Also, roughly two-thirds of rural households are involved in subsistence fishing that provides 60% of their animal protein intake while 20% of the rural labor force is engaged in livestock activities. 2 Economic growth in the rural areas has not been sufficient as access by the majority of the rural population to productive resources like land and water, basic infrastructure such as roads and electricity, services such as education and health, and other social and government safety net entitlements remains constrained. This has exacerbated impoverishment in rural Bangladesh as reflected in low standards of living, poor health and nutrition, and inadequate education and health services. Other human welfare 1 Sen, Binayak Bangladesh Poverty Analysis: Trends, Policies, and Institutions. Manila: ADB. 2 ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan to Bangladesh for the Second Small-Scale Water Resources Development Sector Project. Manila.
4 2 indicators as well have not been very encouraging. Becoming more evident are the increased vulnerability of the population to natural disasters like floods and cyclones, and cases where heads of families leave their homes and families including women and children in search of opportunities elsewhere. 2. A foremost challenge that confronts the country is enhancing poverty reduction through rural and agricultural development in areas that lie along the three major river systems in the country Brahmaputra, Ganges, and Meghna. For many rural residents who depend on water resources for their traditional livelihood activities like agriculture, inland and coastal fishing, transport, water supply, and rural industries, these resources are fundamentally important. While these resources are considered giver of life, they also exacerbate hardships during flood incidences. Hence, these resources need to be managed in a strategic, integrated, and participatory manner so that all complex, diverse, and competing interests in water resources use are appropriately addressed. Evidence abounds that providing effective and sustainable water management infrastructures such as embankments, roads, and water control structures can (i) increase opportunities for agricultural production, (ii) promote the development of capture fisheries, (iii) enhance access by poor households to water bodies, and (iv) boost other economic activities where the rural poor may gain from the forward linkages that these activities generate (footnote 2). In Bangladesh, however, water sector institutions and the operation and maintenance (O&M) of such infrastructure have up to that time remained weak, underfunded, and wanting in support and participation from intended beneficiaries. With the country adopting a National Water Policy (NWP) and drawing invaluable lessons from the implementation of the First Small-Scale Water Resources Development Sector Project (SSW-1), these institutional and operational constraints could be moderated under a sector approach to induce community participation in small-scale water resources schemes and eventually sustain them based on decentralized participation. B. Expected Impact 3. The expected goal and/or impact as indicated in the design and monitoring framework of the project was to support the government s poverty reduction effort by increasing sustainable agricultural and fishery production (footnote 2). The performance targets were (i) annual rice production increased by an increment of 180,000 tons, (ii) rural net incomes increased by Tk970 million, 3 and (iii) employment increased by an increment of 7.8 million person-days per annum. C. Objective or Expected Outcome 4. The singular project outcome stated in the design and monitoring framework was to increase agricultural production in subproject areas through sustainable stakeholder-driven small-scale water resource management systems. For this outcome, the three performance targets were (i) 300 subprojects operating in 61 of the country s 64 districts and in line with the long-term investment plan, (ii) water management associations are functioning successfully in all subprojects, and (iii) shift to higher-yielding variety cultivation and increased cropping intensity resulting in an increment of 180,000 tons of paddy production by year At appraisal, the exchange rate was TK57.65 to a $1.00, at project completion it was Tk69.26 to a dollar.
5 3 D. Components and Outputs 5. The project impact and outcome were to be achieved by a combination of two components: (A) Participatory Water Resources Development, and (B) Institutional Strengthening of the Small-Scale Water Resources Sector. Component A was to support the development of 300 small-scale water resources subprojects to benefit about 180,000 hectares of land cultivated by over 280,000 farm households via the participation of these rural households that were to be organized into water management and cooperative associations (WMCAs). This was to be preceded by participatory rural appraisal exercises to assess beneficiaries needs and their views on each subproject. Organizing the households into WMCAs were to be facilitated by nongovernment organizations (NGOs) that will be contracted, and with obligations that will include (i) training WMCA members on the basic requirements of cooperative management and administration, (ii) subproject construction and supervision, and (iii) O&M planning and management. These NGOs will also (i) train field facilitators and community organizers, (ii) organize and train labor contracting societies (LCS), and (iii) train upazila (subdistrict) and district-level engineers on beneficiary participation and WMCA development. 6. Component A also includes the following civil works: (i) rehabilitation and construction of embankments and/or sluice gates to reduce the extent and duration of flooding of farmlands; (ii) re-excavation of drainage canals to increase the capacity of drainage systems to benefit agricultural, fisheries, and navigational activities; (iii) installation of water retention structures and re-excavation of beds of water bodies in existing baors, beels, and canals to increase the availability of irrigation water; and (iv) improvement of canal networks and canal linings, and installation of water control structures in the existing irrigation system to extend the irrigable area. Local contractors will be engaged for the construction works while the WMCAs will be closely involved in the selection, appraisal, design, and construction of the subprojects, and eventually be responsible for their O&M. 7. To promote the rapid adoption of improved agricultural practices, extension services will be provided by the Department of Agricultural Extension for integrated pest management, cultivation of higher-yielding rice varieties, and crop diversification, among others. The Department of Fisheries will be tasked to train beneficiaries primarily on fishery resource management. A related support program is the leasing of water bodies near subproject boundaries to poor households to promote fish culture. Quality control systems for civil works construction shall conform to procedures and guidelines developed under SSW-1. Physical progress and benefit monitoring will also be pursued. 8. Component B was to be undertaken via the provision of consulting services to the Project Management Office (PMO) lodged under the Local Government Engineering Department (LGED).This was planned so that by the end of the project, it would already have the capacity to manage the planning, construction, use, and O&M of small-scale water management infrastructures. These tasks will be guided by the systems and procedures developed under SSW-1, which were also to be refined under the project. A subcomponent was to strengthen the LGED and its regional offices to improve their performance in implementing small-scale water resources development consistent with the NWP. This will be done via three key strategic procedures: (i) creating the Integrated Water Resources Management Unit (IWRMU) within the LGED, (ii) tasking the Department of Environment to monitor and review the environmental and impact assessment (EIA) and initial environmental examination (IEE) of subprojects, and (iii) building the long-term capabilities of the institutional stakeholders to carry out small-scale water resources development.
6 4 E. Provision of Inputs 9. The Asian Development Bank (ADB) extended a loan of $34.0 million to finance both foreign and local currency cost components of the project. Grant cofinancing was provided by the Government of the Netherlands in the amount of $24.3 million. Final disbursements reached $55.9 million after a single loan closing date extension. The borrower s actual contribution, including beneficiary financing, amounted to $19.0 million compared to the $19.7 million pegged at appraisal. Project expenditures were $74.9 or 2.4% less than the $78.0 million estimated at appraisal due to the appreciation of the US dollar against the special drawing right that offset significant increases in the cost of construction materials for the subprojects. Actual inputs provided were (i) $64.2 million for participatory water resources development of which $49.6 million were spent for community-based infrastructure development, and (ii) $9.4 million for institutional strengthening with the support for project management subcomponent accounting for $8.1 million. F. Implementation Arrangements 10. The overall executing agency for the project was the LGED under the Ministry of Local Government, Rural Development and Cooperatives where the Project Steering Committee and the PMO were lodged. Under a separate technical assistance agreement with ADB, an advisory technical assistance (ADTA) consulting team was engaged and funded by the Government of the Netherlands to further boost the institutional capability of LGED. Of the 30 loan covenants, three were not complied with. Two of these covenants were on the proposed enactment of the Bangladesh Water Act, which at completion remained pending with the country s parliament. The other covenant was on the 6 of 30 positions established within the IWRMU that remained vacant at the time of the project completion report (PCR) preparation. 4 The procurement of supplies was generally in accordance with ADB procurement guidelines and government public procurement rules. Notwithstanding the procurement delays by the executing agency, the planned civil works were completed as designed. II. EVALUATION OF PERFORMANCE AND RATINGS A. Relevance of Design and Formulation 11. The PCR rated the project highly relevant because it supported government s effort to reduce poverty as envisioned. In particular, the project s expenditures on various civil works generated rural employment especially for destitute women. With better flood protection and water supply for irrigation, the project also created opportunities for small and marginal farmers to increase rice and fish production thus making it possible for them to increase their household income. The project was strongly aligned with the Bangladesh Flood Action Plan initiated in 1990, especially on ensuring that flood-protected areas were subdivided into small areas and managed locally to create an environment conducive for intensive agriculture, aquaculture, and integrated rural development. The project was also in line with the ADB country operational strategy for Bangladesh formulated in 1999, which had an overarching poverty reduction and food security objectives. 5 It likewise supported the ADB strategy of promoting integrated water resources with beneficiary participation as a key element. The project invested heavily in farmers mobilization and training, community-based infrastructure development and the required support programs, project management support, and in 4 ADB Completion Report: Second Small-Scale Water Resources Development Sector Project in Bangladesh. Manila. 5 ADB Bangladesh Country Operational Strategy: Responding to the Challenge of Poverty. Manila.
7 5 strengthening the capacity of relevant government institutions as mandated all of which underscored the project s relevance to the poverty reduction and agricultural development strategies before and after the project. 12. Slippages were encountered during implementation due to delays in the preparation of feasibility studies and designs, in the appointment of a project director, slow performance of civil works contractors, and delays in the submission by LGED of reimbursement applications and subsequently by ADB of loan disbursements. These did not arise from any flaw in project design. A departure from the original design was the inclusion of the micro-credit programs. Although these resulted in high impact and outcome beyond the targets, a significantly high loan default rate was recorded. Clearly, proper due diligence and risk assessments were required in subproject designs. Funding requirements of some subprojects were underestimated, which negatively impacted on disbursements. Based on these enumerations, this validation accords the project a relevant rating. B. Effectiveness in Achieving Project Outcome and Outputs 13. The participatory water resources development component started off with the mobilization of beneficiaries and the WMCAs generated a membership rate of 89% compared to the target of 70%. With 100% of the WMCAs fully contributing to the required annual O&M for each subproject, the first year of O&M total fund amounted to Tk51.7 million, exceeding the target by 17%. Each subproject implemented awareness campaigns (450 in total), project resettlement plan preparations, and subproject examinations and appraisal (15.4% better than the planned targets for each), and completed 354 feasibility studies (just 1.1% off the 358 studies planned). A total of 334 designs were likewise finished, nine designs more than the planned output. At project completion, these WMCAs with membership totaling 110,860 males and 44,010 females from 153,992 households had an aggregate capital base of Tk69.0 million, enough to enable them to engage in micro-financing and other small-scale business operations. Women comprised a third of the management committees, an accomplishment consistent with the gender action plan of the project. The organization of LCS in subproject sites and the subsequent training given to poor women allowed them to be employed, thereby contributing to poverty reduction. 14. The project constructed all planned 300 subprojects in 61 of the 64 districts on water management and drainage, flood management and drainage, and water conservation with an equal number of WMCAs managing them. Some 180,000 hectares of land cultivated by over 280,000 farm households benefited. The target incremental rice production of 180,000 tons per year was consequently realized. The Bangladesh Bureau of Statistics socioeconomic study of 384 respondents from four districts in 2008 revealed that cropping intensity increased by 34% on the average. Furthermore, fisheries production from 237 subprojects increased by 1,775 tons, a collateral benefit since a very negligible incremental production was expected at appraisal. The LCS, which organized earthworks at subproject sites, also employed a total of 40,483 members broken down into 35,077 males and 5,406 females. 15. The project completed the required IEEs and EIAs for all feasibility studies, established the benefit monitoring and evaluation (BME) system, and made the PMO fully operational at loan effectiveness. A total of 590,813 person-days of training on (i) improving agricultural practices, (ii) managing and operating WMCAs, (iii) fish production and environment, and (iv) O&M methods and procedures were given to 176,093 participants from the government and partner organizations. The success of these interventions were manifested in increased crop and fish production, better land productivity, higher cropping intensities, and high success rates
8 6 for WMCAs. Although unplanned, micro-credit programs were implemented where accumulated funds were re-lent at an average amount of TK5,000 per borrower. Although these programs posted a significantly high loan default rate of 24%, some 28,180 members still benefited, 33% of which were women. As this number trended upward, the sustainable empowerment of women for economic gain and livelihood became more evident. 16. For monitoring and quality control, 61 environmental laboratories were equipped, environmental evaluations in all subprojects were completed, 214 subprojects (four more than the target number) were surveyed 2 years after their construction, and an annual audit and a review mission after Year 1 were implemented as planned. The management information system developed under SSW-1 was adopted but later refined to suit the needs of the same PMO that was transplanted from the SSW-1. This validation interprets these twin moves of the management as cost-saving features of the project. 17. Incremental staff and the necessary equipment were provided by LGED. Through the ADTA, a multidisciplinary team of consultants provided 129 person-months of international consulting services and 808 person-months of domestic consulting services. The PCR claimed that the ADTA significantly contributed in enhancing the capability of LGED to promote and practice integrated water resources management and to support the agency s knowledge and experience in social mobilization and beneficiary participation. A total of 28,487 person-days of training involving 11,000 trainees from LGED, other agencies, and the local government were held using the nine capacity building modules developed jointly by the PMO and ADTA. This program effectively promoted better construction sequencing, improved quality of earthworks and concrete works, and improved the capacity to oversee the construction of hydraulic infrastructure. Overall, the PCR considered the project effective in achieving its outcome. Performance targets of (i) increasing cereal and fishery productions; (ii) achieving functioning WMCAs, training, extension, and micro-credit programs not only for small-scale farmers but also for women; and (iii) improving project management capacity were realized. Thus, this validation concurs with the PCR rating of effective for the project. C. Efficiency of Resource Use in Achieving Outcome and Outputs 18. The PCR rated the investments in the subprojects efficient. Against the appraisal estimate of 19%, the economic internal rate of return was recalculated at 29% where all investment costs from ADB, the government, and the beneficiaries were ranged against the incremental economic cash flows primarily from paddy crop and fish production, and from increased usage of family labor. The latter was derived from individual per hectare crop budgets that, in turn, were drawn from monetary farm costs and returns supplied by survey respondents from the subproject areas. These crop budgets were later incorporated into farm models using the most prevalent cropping practices and then aggregated to represent the whole project area. Economic benefit valuation did not consider value appreciation of croplands and other intangibles, like health improvements for women and children arising from improved access to more hygienic facilities and housing, improved household asset portfolio, income distribution effects of technology generation and dissemination, and benefits generated by linking farmers with extension and other support services. Internalizing them in the analysis would have enhanced the efficiency of the project. However, given that the economic reevaluation was based on only five sample subprojects from three districts out of the 300 subprojects from 61 districts, the result could not be a solid basis for the overall assessment of the project s efficiency. These subprojects were also entirely different from those studied at appraisal. Moreover, employing both a shadow exchange rate factor and a standard conversion factor for simultaneously shadow pricing the foreign exchange
9 7 component and local component at large, respectively, seemed inappropriate. Where poverty is pervasive, unemployment and underemployment could also be persistent. The treatment of rural labor in general and women labor in particular, which comprised a significant cost component of the project, was not explicitly clear in the analysis. Notwithstanding these observed deficiencies in the economic reevaluation, this validation rates the project efficient. D. Preliminary Assessment of Sustainability 19. The mobilization of beneficiary participation that led to the formation of WMCAs and the completion of all planned subprojects in 61 districts of the country in accordance with the NWP would not have taken place without the participatory rural appraisal, social and environmental scanning, and capacity-building activities undertaken by the executing agency, partner implementing agencies, the ADTA team, and the contracted NGOs. These activities paved the way for a smooth working relationship between these entities and the small and marginal farmers, which at completion remained healthy as the PCR had noted. The majority of the WMCAs are reported in the PCR to be functioning very well and have eventually transformed themselves into self-reliant organizations. O&M systems for the subprojects were in place and funded by membership contributions from the WMCAs. Women s participation in LCS had allowed these women to gain confidence and improve their status in the society as legitimate income earners. Women s participation in the management of WMCAs, a role traditionally assumed by their male counterparts, also became more profound as reported. Micro-credit operations by the WMCAs were implemented with a third of the borrowers being women and, at project completion, their number was observed to be growing. The initial high loan default rate (24%) posed a risk to the sustainability of the credit line. Nonetheless, this validation subscribes to the likely to be sustainable rating in the PCR mainly on the basis of sustained irrigation operations. E. Impact 20. The PCR did not give a rating for impact. The project had positive overall impact on agricultural and fishery production and on rural employment and income to support the government s drive to further reduce poverty that stood at 46.5% during The socioeconomic survey conducted in 2008 for the PCR revealed that the subprojects benefited 180,000 hectares of land cultivated by over 280,000 farm households. Rice production increased by 180,000 tons per year as affected farmers shifted to high-yielding varieties and increased their cropping intensities. The 384 sampled respondents of the survey revealed that cropping intensity increased by 34% on average. Also, fisheries production in 237 subprojects increased by 1,775 tons, a respectable incremental production considering that not much was projected at appraisal. Farm financial returns accordingly increased on average by 46% from Tk22,337 to Tk32,646 per hectare for all types of subprojects. When extrapolated for the whole project area, overall net income was observed to have increased by Tk1,700 million and exceeded the appraisal target of Tk975 million. This translated to an increase in income per household of Tk6,075. The LCS at the subproject sites employed a total of 40,483 members with the women accounting for 14% of this number. Other positive externalities attributable to the project included increased values of land, greater access to loans, improved quality of household asset portfolio, better quality of houses and hygienic facilities, and improved skills for managing household income and expenditures. Still, other notable intangible benefits were the increased participation of women in WMCAs affairs, production training and extension activities, and improved access by farmers to research and extension services from the government. From these evidences, project impact appears to be significant.
10 8 21. All IEEs and EIAs were completed as envisioned at appraisal. There was no recorded adverse effect on the environment. The gender action plan was developed for the project with some of its important provisions (e.g., employment of women by LCS, membership of women in WMCA management committees, etc.) already adhered to. The PCR did not indicate any resettlement-related issue although land acquisition and resettlement compensation plans were formulated as required. An Indigenous Peoples Development Plan was likewise developed but had not been implemented as no subproject affected the indigenous peoples. III. OTHER PERFORMANCE ASSESSMENTS A. Performance of the Borrower and Executing Agency 22. The PCR rated the performance of the borrower and the executing agency satisfactory. The implementation arrangements proposed at appraisal were adhered to with the addition of the Department of Cooperatives as the focal point for the project s micro-credit programs. The PCR noted the government s commitment to complete the project primarily through the provision of counterpart funds and deployment of staff. The government closely monitored and steered the progress of the project through a high-level inter-ministry steering committee and acted promptly to resolve emerging implementation issues. The executive role of LGED was enhanced with the creation of the IWRMU. LGED seconded qualified and committed staff and delivered the required support to the IWMRU, PMO, and to its field offices. These units in turn demonstrated managerial competence and ability to meet ADB requirements to keep the project on track. The agency initially committed lapses in the social mobilization and strengthening of the WMCAs but these were remedied in good time by terminating the services of slow-moving NGOs and re-tendering their contracts. It was also the belief that with an upgraded pool of manpower, LGED could have done better than the contracted NGO facilitators. Reimbursement applications were also delayed at times but these did not really hamper the flow of funds and substantively contribute to project slippages. This validation, therefore, concurs with the PCR rating of satisfactory for the borrower. B. Performance of the Asian Development Bank 23. The administration of this project was largely delegated to the Bangladesh Resident Mission. It was preceded by a project preparatory technical assistance that was consistent with government priorities and to the ADB country assistance program. ADB carried out 1 inception mission, 1 midterm review mission, 15 review missions, and 1 project completion review mission. All these were undertaken at regular intervals so that physical project progress, compliance with the loan covenants, and resolution of policy matters could be examined closely. ADB was responsive to government requests for facilitation and early settlement of implementation issues as it interacted closely with all project stakeholders. Notwithstanding occasional delays in disbursements against withdrawal applications, this validation rates the overall performance of ADB satisfactory, the same rating given by the PCR. IV. OVERALL ASSESSMENT, LESSONS, AND RECOMMENDATIONS A. Overall Assessment and Ratings 24. The PCR rated the project successful. This validation concurs with the PCR rating (see table). The project was relevant to the government s strategies and policies, and to ADB operational strategy for Bangladesh. The project invested heavily in community-based
11 9 infrastructure development for flood protection and irrigation, beneficiaries mobilization and training, water resources-oriented support programs designed to boost crop and fish production and the development of micro-credit, extension and project management support, and developing strong partnerships among the concerned government agencies and the project beneficiaries themselves. All these helped to catalyze farmers to participate in capacity-building activities and speed up the formation of WMCAs with strong extension, micro-credit, and project management support. Women were also encouraged to seek employment thus enabling them to present themselves as potential local development partners. These resulted in the project achieving its purpose of increasing agricultural and fishery production through better protection from floods and increased availability of water for irrigation. Overall Ratings Criteria PCR IED Review Reason for Disagreement and/or Comments Relevance Highly relevant Relevant There were shortcomings in the design and risk mitigation. The project underestimated the funding requirements of subprojects, which negatively impacted on disbursements. There was also a significantly high rate of loan default in the microfinance component (para. 12). Effectiveness in Effective Effective achieving outcome Efficiency in achieving Efficient Efficient outcome and outputs Preliminary assessment Likely to be Likely to be of sustainability sustainable sustainable Overall assessment Successful Successful Borrower and executing Satisfactory Satisfactory agency Performance of ADB Satisfactory Satisfactory Impact Not rated Significant High default rate posed risk to the microcredit component (para. 19). Quality of PCR Satisfactory Refer to para. 28. ADB = Asian Development Bank, IED = Independent Evaluation Department, PCR = project completion report. Source: ADB Independent Evaluation Department. B. Lessons 25. This validation opines that the key lessons from this project, to be of substantive value to both the borrower and ADB operations, should not just be confined to a factual presentation of what transpired during project execution. Rather, they should be an account of the do s and don ts in implementing a follow up or similar project in the future based on project events. Implementation delays could not have ensued and loan extension could have been negated if the following were undertaken early on during project preparation or implementation: (i) identification and deployment of qualified personnel, (ii) conscientious study of the manpower requirements of the IWRMU with the view of stemming employee turnover and sustaining staff interest and commitment to work, (iii) careful selection of partner NGOs, and (iv) thorough needs assessment of subprojects. The government should also be forewarned of the need to develop and install a support system to sustain the WMCAs given their vulnerability to scheming and divisive tactics from various self-serving groups.
12 10 C. Recommendations for Follow-Up 26. This validation agrees with the recommendations of the PCR. In addition, post-project BME must be institutionalized within the LGED to ensure sustainability of the gains achieved by all project participants and to provide guidance in the implementation of a follow-up SSW project. This validation also finds strong merit for an impact assessment study covering a bigger number and well-distributed subprojects. The project performance evaluation report (PPER), if undertaken, should focus on the status and results of the recommended initiatives. V. OTHER CONSIDERATIONS AND FOLLOW-UP A. Monitoring and Evaluation Design, Implementation, and Utilization 27. Consistent with the project design, the management information system developed under SSW-1 was adopted and later refined to provide the PMO with a reporting tool. The ADTA ensured that the project was periodically monitored. A BME was outsourced and measured the impact of the project on participating farms in terms of changes in land use, crop productivity and cropping patterns, access to loans, and efficiency of farmers and fishermen in land and water management. With this information available, an impact assessment study could still be designed to generate and analyze with and without project conditions across a wide range of economic and technical monitoring variables. The loan covenant recommended that this study be undertaken sometime in 2014 by the same contractor for the BME studies. B. Comments on Project Completion Report Quality 28. While the preparation of the PCR is consistent with Project Administration Instruction 6.07 of the ADB particularly in assessing outcomes, impact, relevance, effectiveness, and efficiency, there are key areas where the PCR is deficient. Lessons and recommendations should be clearly drawn from the findings of the report. In this aspect, the PCR should have provided a menu of the do s and don ts in implementing a follow-up or similar project in the future based on project events rather than just a factual presentation of what transpired during the life of the project. By relying on the results of subprojects that comprised less than 2% of the total, the financial and economic analysis in Appendix 11 of the PCR seemed not thorough and conclusive enough. The application of shadow pricing parameters appeared inappropriate and not up to standards. Despite these shortfalls, this validation finds the quality of the PCR satisfactory. C. Data Sources for Validation 29. This validation made use of the following data sources: the report and recommendation of the President, PCR, back-to-office review mission reports, and project processing documents. D. Recommendation for Independent Evaluation Department Follow-Up 30. The project was likely successful in attaining the desired impact. The Independent Evaluation Department may still consider conducting a PPER. Important focal points of the PPER could be the modalities for improving staff turnover at the LGED, reducing the dependence of the IWRMU on technical assistance to become more self-reliant, improving and expanding delivery of the micro-credit funds from the WMCAs, and enlarging the membership and role of women in WMCAs.
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