• Strong government ownership was evident when ADB supported parts of a major highway investment plan that featured prominently in the medium-term investment plan of the DMC.
• Executing agencies performed well, were sometimes supported by supervision consultants, and often had a track record of having previously handled similar projects.
• Executing agencies, consultants, contractors, and ADB staff worked together to solve problems and handle unforeseen circumstances that developed during implementation.
• Supervision consultants and contractors performed satisfactorily.
• Regular ADB supervision missions were a consistent feature of successful projects, particularly during the first 2–3 years after loan approval, when most problems arise and ADB missions can be of most help.
• Adequate maintenance is essential for project success and sustainability.
Box 8: Characteristics of Successful Power Projects
• Because of the large deficiencies in the supply of energy, demand was not a problem, and benefits were immediate once the projects were completed.
• Increased electricity supply facilitated economic growth and contributed to a better quality of life.
• ADB evidenced a long-term commitment to working in the power sector.
• The plant and equipment were fully utilized and correctly operated and maintained.
• Financial policy dialogue and tariff reform helped to ensure sufficient funding for investment, operation, and maintenance.
• The project management team in the executing agency showed commitment, quality, and experience; familiarity with ADB’s loan requirements; and an ability to learn from previous projects.
• There was continuity of the executing agency’s staff and the consultants employed to assist with implementation.
• There was early recognition of problems during implementation and a flexible approach by both ADB and the executing agency to solve problems.
• ADB support contributed to strengthening institutions.
• ADB’s contributions to successful outcomes included a careful assessment of the capabilities of the executing agency, a flexible approach to project design and implementation, and regular project review.
Box 9: Characteristics of Successful Irrigation and Drainage Projects
• Elements of an enabling environment that allowed farmers to supply the demand for their produce included (i) a policy and institutional framework that promotes sound water resource management; (ii) a legal framework for water user associations that promotes cost recovery at least sufficient to finance sustainable operation and maintenance; (iii) rural infrastructure (e.g., roads that allow farmers to market their products, and farm inputs to be delivered when they are needed); (iv) efficient markets that are free of price distortions and barriers to competition for both farm products and agricultural inputs; and (v) access to information on demand, prices, and technology.
• Long-term ADB involvement in the sector and building up effective partnerships with executing agencies over a decade or more contribute to project success, policy reform, and the development of institutional capacity.
• Indicators of project ownership by executing agencies include (i) establishing site-based project offices, (ii) well-qualified staff, (iii) selecting executing agency personnel involved in earlier projects, and (iv) financing a considerable share of project cost.
• Good quality at entry reflected the quality of the feasibility study and project design, incorporation of lessons from prior projects, and the level of stakeholder participation.
• Direct stakeholders and beneficiaries were involved in all project phases, particularly operation and maintenance. Participatory techniques were used to develop a sound understanding of the roles and responsibilities of farmers and water user associations and to create a climate in which participants were willing to pay irrigation fees.
• Adequate water supply reached tail-end users, who are usually small farmers.
• Making changes in project design during implementation contributed to achieving good project outcomes.
• Effective quality control systems for civil works and internal and external audit systems were in place, even in remote areas.
• During implementation, continuous attention was paid to building the systems needed for effective operation and maintenance.
• Effective ADB project administration includes regular review missions, proactively helping to solve problems and making required approvals in a timely manner.
Box 10: Characteristics of Successful Water Supply/Wastewater Treatment Projects
• Rapid urbanization created a strong demand for the output of the projects.
• There were positive impacts on intended beneficiaries, particularly women.
• There was an ability to learn from past lessons and incorporate the lessons in project design.
• Technical innovation and a positive impact on the environment occurred.
• Proper operation and maintenance helped ensure long-run sustainability.
• The projects typically (i) were run by financially self-sustaining water supply institutions, (ii) set up water user committees, and (iii) adopted the “user pays” principle.
• A participatory approach contributed to success. Successful projects were typically formulated through extensive consultations with local government staff and the local community, including NGOs, and civil society organizations. Beneficiary participation resulted in a stronger sense of ownership and willingness to accept some responsibility for operation and maintenance and to pay higher tariffs.
• Executing agencies were committed, highly involved in project implementation, supported by institutional strengthening and training activities, and provided with counterpart funds in a timely manner.
• Consultants and contractors performed well.
• Regular ADB review missions proactively helped to solve problems.
ADF-funded projects in social infrastructure and lines of credit have been less successful than those funded by OCR. Social infrastructure includes a diverse group of subsectors (urban development, water supply and wastewater treatment, sanitation, education, and health and population). In the 1990s, 67% of the ADF-funded social infrastructure projects were rated as successful, lower than the 82% success rate for OCR-funded projects. The difference in project outcomes by source of funding was evident in all subsectors. Among ADF-funded projects, urban development performed best (78% success rate in the 1990s), followed by education (70%), water supply and sanitation (69%), and health and population (50%).
The difficulties in achieving successful project outcomes in the social sectors were illustrated in the 2005 social sector evaluation in Pakistan. Relative to the performance of operations in most other sectors in the country, the social sector outcomes were poor. According to the evaluation, only 8% of 24 projects were rated as successful, 58% were partly successful, and 33% were unsuccessful. Although the performance of more recently approved projects was better, performance remains unsatisfactory, particularly in light of ADB’s commitment to managing for development results. Successful water supply/wastewater treatment and education projects are associated with several characteristics as listed in the boxes.
The ratings of projects in the finance sector reflect the performance of loans to government-owned development finance institutions. There are clear differences in the performance of ADF- and OCR-funded lines of credit. Only 26% of the ADF-funded lines were rated successful, while for OCR-funded lines (after excluding projects in graduated