Project id: Duration: 2007 2009 Component (myff)


IV. Implementation challenges Project risks and actions



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IV. Implementation challenges

Project risks and actions

According to the requirements of UNDP prior to the project implementation a risk logs for each of the project implemented by UNDP Communities Programme were established which had considered potential risks to be a threat to a successful completion of the project. The risks have been divided into several categories namely into environmental, financial, operational, organizational, political, regulatory, security, strategic etc.


There is always a risk that with the change of the political environment in the country stability and the required environment for safe project implementation might be shaken. Also, there is a risk of inflation and change in exchange rates, specifically in US$ against Euro by which this project was funded. Thankfully, during implementation of the sub-projects the inflation rates and exchange rates were not as high, thus the changes in prices for construction materials and services did not affect the project quality by large. The other risks like failure of suppliers, fraud, infrastructure failure, lack of adequate human resources, and resistance to co-ordination from partners and others have not taken place.
In Shirinchashma Jamoat, as a result of disaster risks, it washed out two sub-projects on river protection. If the sub-project will not be realized, the most of villages suffered a disaster. The sub-project as rescue appliance saved the population of villages from considerable damages. In addition, through joint effort of community, the sub-project was re-constructed because of people found the necessity and availability of river protection related sub-projects.
The security situation in target programme area was relatively calm and stable during implementation of projects and the potential risks and threats that could jeopardize the completion of the project were not observed so far. Furthermore the economic and political situation was stable as a whole.



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Risk identified

Mitigating actions taken

1

Political instability

Kept abreast of political situation so that CP could be forewarned of impending political instability.

2

Exchange rate fluctuations

Budget contingencies were put in place in case of any drastic fluctuations in exchange rates.

3

Severe winter weather

The lull in project activities during the winter was used for planning so that these activities could be immediately implemented once the weather had calmed.

4

Occurrence of natural disasters

In the DFID project, for example, UN DRMP was partnered with to ensure beneficiaries’ capacities in disaster risk mitigation had been built. In areas where DRMP was not partnered with, contingencies were put in place in case of natural disaster occurrences.

5

Lack of programme/project support from partners/beneficiaries

Prior to the initiation of project activities, beneficiaries and partners were informed about project objectives. Beneficiaries were also included in project implementation and both they and partners were kept well-informed of project progress.



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Risk Description

Risk Management

UNDP Gharm AO


1

Due to severe winter period, this caused damage to sustainability of some sub-projects such as bee-keeping and goat-breeding

A meeting of CIGs should be called to address this issue.

2

The CIGs might have lost the interest if the sub-project will not be properly managed

Training should be provided to raise awareness of CIGs about their rights as well as registration as legal entity.

3

It is difficult to reach the sub-project sites located in highlands considering the disaster risks frequently occurred in winter and spring.

To mitigate the risk, all the vehicles were provided with necessary mechanical facilities.

4

The internal escalation might hamper the effective realization of the project.

The control of the project management will be undertaken temporarily by JRCs in sub-project sites unless the security situation will be cleared.

UNDP Ayni AO

1

Due to area s of project target any changes related with weather condition may negatively effects on the project implementation and it can force to postpone planed activities;

All preparation works was completed in winter period of time and implementation activities was started early in spring.

2

Changes at country level of financial procedure on bank transfers, may negatively effect on timely delivery of project budget;


Respective UNDP CO and CP staffs were contacted necessary information regarding the new financial procedures obtained.

3

Upheavals, change of governing authorities and change of political wills

Managed at the UNDP central level

4

JDF and DDF funds were not allocated for Rarz and Kolkhozchiyon Jamoats. This is causing misunderstandings by the local communities;

UNDP Ayni AO bring up the issue to UNDP CP level and further to DFID as result funds were allocated in 2008;



UNDP Khujand AO

1

Floods, earthquakes and unfavourable weather conditions may have negative affects on the project implementation.

Through the DRMPs React meetings rapid response plans are developed for the target areas. The given plan helps to forecast and when possible mitigate the effects of the described risks. In several Jamoats infrastructure projects to prevent the risks of flooding are implemented

2

Economic crisis due to unstable political situation in the country. Default. Depreciation of the official UNDP currency, i.e. US Dollar.

Through the implemented projects a minimal input towards development of the local economies is made, however, it will have little effect on the national level and on depreciation of the US Dollar

3

Lack of support from the national government to UNDP, its closure.

Agreements and MoUs between UNDP and the national government govern the relations of UNDP and the government. Establishing coordination, cooperation and links with the government representations at all levels, starting from the central and ending at the Jamoat level

4

Upheavals, change of governing authorities and change of political wills

Managed at the UNDP central level

5

Change of security phases due to internal and external instability. Internal and external armed conflicts. Armed attacks on civilians and the UN personnel.
Food insecurity due to poor harvest, drought and isolation due to border restrictions with neighbouring countries

Addressing the MOSS requirements through improving security measures of the UNDP office.



UNDP Kulyab AO

1

Due to adverse winter the implementation of project’s components slowed down;


Activities were re-scheduled;

2

Due to weather conditions, the regular supply of electricity and gas was limited to minimum, which impacted the implementation of some sub-projects.

Alternative sources (generators, heaters etc) were used.

3

Increase of inflation rate negatively impacted in procurement of goods and services for implementation of some components;

Procurement of goods and services were re-considered;


4

Due electricity supply cut offs, there is a risk of delivery of bank transaction, which may impact the implementation.


All payments were recommended to be advanced


5

Due to amendments into the Law on Public Associations, there was a requirement to re-register the JRCs’ Charters, which could have bent the activities of JRCs in 2008.

Project’s lawyer was delegated to assist the JRCs to undertake the re-registration process and to speed that up.


6

Due to much snow falls, the conditions of roads and other communication means became dangerous, which could have impacted the timely implementation of the project.

Safety measures were considered.


UNDP Shahrituz AO




Economic crisis due to unstable political situation in the country. Default. Depreciation of the official UNDP currency, i.e. US Dollar.

Through the implemented projects a minimal input towards development of the local economies is made, however, it will have little effect on the national level and on depreciation of the US Dollar




Lack of support from the national government to UNDP, its closure.

Agreements and MoUs between UNDP and the national government govern the relations of UNDP and the government. Establishing coordination, cooperation and links with the government representations at all levels, starting from the central and ending at the Jamoat level




Change of security phases due to internal and external instability. Internal and external armed conflicts. Armed attacks on civilians and the UN personnel.

Addressing the MOSS requirements through improving security measures of the UNDP office.





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