Major lessons from the completed ADB financed projects in urban development and
water include: (i) civic participation positively affects urban governance; (ii) participatory and
demand-driven development activities enhance the sense of local ownership; (iii) capacity
building requires proper planning and up-front implementation as it is a long-term effort;
(iv) institutional and policy reform should be based on realistic assessment of timing, resource
requirements, and political will; and (v) weak performance in project financial cost recovery
threatens sustainability, while project social and economic benefits are exceptionally high.