The cost-benefit analysis should be sequenced after the project due diligence is complete and be in alignment with both the findings from due diligence and the program logic. The evaluation found that many of the assumptions from the cost-benefit analysis did not hold resulting in a -18% evaluation based internal rate of return. The cost-benefit analysis for this sub-activity was completed before the project was appropriately diligenced and without a documented program logic. This led to assumptions in the model that were unlikely to occur. In particular, the model relied heavily on the likelihood of the Liberia Water and Sewer Corporation being able to treat the increased water from the pipeline and distribute it through the network. This assumption did not come to fruition and was known at the time of project design, but not known at the time of the cost-benefit analysis.
Lesson Learned