[{"bbox": [85, 103, 412, 132], "category": "Section-header", "text": "### 3.4. Risks and Lessons Learnt"}, {"bbox": [67, 144, 1157, 1580], "category": "Table", "text": "<table><thead><tr><th>Category</th><th>Risks</th><th>Likelihood (High/ Medium/ Low)</th><th>Impact (High/ Medium/ Low)</th><th>Mitigating measures</th></tr></thead><tbody><tr><td><strong>Political and Governance:</strong> reforms requiring revoking of previous government decisions, which led to consolidation of power in the sector with the politically connected State Unitary Enterprise suggest substantial governance risks for the project. \"Context suitability\" of political measures.</td><td>Risk 1</td><td>H</td><td>H</td><td>Continued political and policy dialogue with the Tajik Government. Reform of the sector will be based on the results of the high-level policy, institutional and regulatory review currently conducted by the WB and supported by a solid group of development partners building ad a strong coalition of reform-minded stakeholders.</td></tr><tr><td><strong>Macroeconomic:</strong> uncertain macroeconomic conditions and potential regional spillovers may be associated with a) impact of the sanctions on Russia and deterioration of Russian economy and Russian financial system, to which Tajikistan is strongly linked and dependent on them (a sizeable part of Tajikistan's GDP is made of remittances of Tajik labour migrants from Russia); b) instability in Afghanistan and c) re-emerging risks of the COVID-19</td><td>Risk 2</td><td>H</td><td>H</td><td>Close monitoring of macro-economic and public finance management policies together with IMF, WB and other cooperating partners. The WB will set provisions for short-term mitigation of such risks through provision of targeted assistance to the Ministry of Finance and the MEWR in establishing capacity for undertaking the reform through a set of critical consulting services.</td></tr><tr><td><strong>Technical Design of Project or Programme:</strong> low performance of the service providers/utilities in the targeted areas and limited institutional capacity of the SUE \"KMK\" to deliver water supply services to ensure sustainability of the proposed investments</td><td>Risk 3</td><td>M</td><td>M</td><td>This risk has been mitigated by the incorporation of lessons from global and national experiences. The project design also includes measures aimed at improving performance of the service providers/utilities. The MEWR and local khukumats will be closely engaged at the design and implementation stages of the project to ensure the most appropriate, technically-sound and cost-effective solutions are chosen.</td></tr><tr><td><strong>Institutional Capacity for Implementation and Sustainability:</strong><br> Implementation capacity of the proposed Implementing Agencies is limited and will require substantial resources to augment their capacity for implementation of planned activities.<br> Ineffective implementation capacity: insufficient human, institutional, and technical capacity to design</td><td>Risk 4</td><td>M</td><td>M</td><td>The risk of weak implementation capacity will be offset by the establishment of an inclusive Steering Committee, close supervision by the TTL¹⁹ and task team based in Dushanbe and a robust TA component for, direct training and capacity building support to the implementing agency staff to manage implementation risks and improve the sustainability of project outcomes.</td></tr><tr><td><strong>Fiduciary Risk:</strong> Risks associated with (non-exhaustive list) limited capacities of the financial management/accounting staff, limited procurement/technical expertise, weak contract management mechanism, weak internal controls, and lack of good governance practice at both at level of Implementing Agencies - the MIDP 20 PMU (under</td><td>Risk 5</td><td>M</td><td>M</td><td>The PMU has required capacity implementing EU/WB-funded projects in the sector: it is adequately staffed, and has established appropriate controls and procedures. Their situation with the MEWR needs to be carefully assessed. A detailed assessment of fiduciary capacity of the proposed implementing entities will occur during final preparation. The fiduciary risk will be either confirmed or</td></tr></tbody></table>"}, {"bbox": [71, 1614, 852, 1639], "category": "Footnote", "text": "¹⁹ Task Team Leader (TTL), is a Bank staffer who coordinates the activity of the project team"}, {"bbox": [71, 1637, 830, 1662], "category": "Footnote", "text": "²⁰ Municipal Infrastructure Development Project (MIDP) Project Management Unit (PMU)"}, {"bbox": [1039, 1662, 1157, 1686], "category": "Page-footer", "text": "Page 11 of 22"}]