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Lesson
Need for an in-depth examination of GSE’s financial performance to ensure that the risk of large investments in the 400 kV and 500 kV transmission system can be managed. Also, consideration must be given to include in contracts the benefits from power transit and their associated market risks in neighboring countries and investment. This is in view of GSE being unable to manage the risk if the revenue from power transit is linked only to the power flow (footnote 15).

Project Number: 44183-013
Project Name: Regional Power Transmission Enhancement Project
Report Date:
Lesson
The need to study the structure of the regional power market and hold discussions with the related agencies on introducing measures to increase the price of excess hydropower generation during summer months. This could, for example, be undertaken by a market supervisor or regulator who checks market power.

Project Number: 44183-013
Project Name: Regional Power Transmission Enhancement Project
Report Date:
Lesson
The choice of the MFF as a financing modality appears to decrease the level of due diligence and scrutiny employed when approving single tranches as compared to project-based lending. This needs to be considered as a downside of the MFF modality in general and a more thorough due diligence stage needs to be implemented before approving single tranches, not only at MFF appraisal level.

Project Number: 37139-043
Project Name: Uttarakhand Power Sector Investment Program–Tranche 3
Report Date:
Lesson
Before approving new MFF tranches, it is necessary to ensured that all covenants of the first tranches have been met. This needs to be a condition for the disbursement of new funds, because at a later stage, ADB does not have much leverage.

Project Number: 37139-043
Project Name: Uttarakhand Power Sector Investment Program–Tranche 3
Report Date:
Lesson
More stringent monitoring needs to be employed related to associated assets, such as transmission lines and power generation, as they affect implementation substantially. Associated infrastructures should be implemented earlier and potentially include them as covenants for the borrower to ensure the proper and timely execution of the project. As mentioned in para. 10, the substation was mostly unused at the time of PCR preparation.

Project Number: 37139-043
Project Name: Uttarakhand Power Sector Investment Program–Tranche 3
Report Date:
Lesson
Providing technical assistance to strengthen the institutional capacity of newly established states, executing agencies, and implementing agencies is essential. Capacity building activities should be included to enable smooth project execution according to ADB guidelines. The risk of natural disasters needs to be considered better during project design. More thorough due diligence into the frequency of these events needs to be employed, as for example the Sobla-1 hydropower plant was washed away twice, resulting in the abandonment of the project.

Project Number: 37139-043
Project Name: Uttarakhand Power Sector Investment Program–Tranche 3
Report Date:
Lesson
The choice of the MFF as a modality appears to decrease the level of due diligence and scrutiny employed when approving single tranches as compared to project-based lending. This needs to be considered as a downside of the MFF modality in general. A more thorough due diligence stage needs to be foreseen before approving single tranches, not only at the MFF appraisal level.

Project Number: 37139-033
Project Name: Uttarakhand Power Sector Investment Program–Tranche 2
Report Date:
Lesson
When revising the project scope, ensure that mistakes made during the design phase are not repeated. Before approving new MFF tranches, ensure that all covenants of the previous tranche(s) are met. This needs to be a condition for the disbursement of new funds, as at a later stage, ADB does not have much leverage to enforce such covenants. Focusing on fast loan disbursements can lead to premature procurement and later cancellation, incurring unnecessary financial charges and IDC on the borrower.

Project Number: 37139-033
Project Name: Uttarakhand Power Sector Investment Program–Tranche 2
Report Date:
Lesson
More thorough due diligence needs to be conducted related to the feasibility of realization of associated infrastructure that serves as a prerequisite to the project outputs; e.g., transmission lines directly connected to a planned power plant. The uncertainties about their successful implementation need to be reduced or eliminated, if possible, before approving loan disbursements and procurement activities, even if this leads to disbursement delays. This will reduce the risk of loan proceeds being spent unproductively and the burden of financing charges and IDC.

Project Number: 37139-033
Project Name: Uttarakhand Power Sector Investment Program–Tranche 2
Report Date:
Lesson
Providing technical assistance grants is essential to strengthening the institutional capacity of newly established states, executing agencies and implementing agencies, to enable smooth project execution according to ADB guidelines. The risk of natural disasters needs to be assessed appropriately during the project design stage, with special attention to the frequency of these events.

Project Number: 37139-033
Project Name: Uttarakhand Power Sector Investment Program–Tranche 2
Report Date:
Lesson
No additional lessons

Project Number: 38411-023
Project Name: Orissa Integrated Irrigated Agriculture and Water Management Investment Program – Project 1
Report Date:
Lesson
A lack of assessment and monitoring of contingent liabilities causing fiscal risk and limited coverage of public financial management affecting expenditure and fiscal consolidation was an additional risk identified for subprograms 2 and 3.

Project Number: 48044-001, 48044-004, 48044-005
Project Name: Improving Domestic Resource Mobilization for Inclusive Growth Program
Report Date:
Lesson
The DMF was reasonably well-designed and the performance indicators—with the exception of the initial program impact indicators—targets, and baseline data were precise and generally easily measurable. However, the PCR assessed the program against the DMF prepared for subprogram 3, which, like subprogram 2 had no indicators to measure impact, although these were included for subprogram 1.

Project Number: 48044-001, 48044-004, 48044-005
Project Name: Improving Domestic Resource Mobilization for Inclusive Growth Program
Report Date:
Lesson
Continuing TA support is required to ensure the sustainability of the program, especially to enhance domestic savings (output 3), and the increased mobilization of private resources focused on mobilizing private savings (output 4). Private savings through pensions and a more developed capital market will mobilize long-term finance. These reforms, however, are long-term in nature involving legislative changes and institutional strengthening.

Project Number: 48044-001, 48044-004, 48044-005
Project Name: Improving Domestic Resource Mobilization for Inclusive Growth Program
Report Date:
Lesson
A more detailed assessment of private sector preferences for investment needs to be conducted at project design stages to reduce project implementation risks.

Project Number: 37091-033
Project Name: Agribusiness Infrastructure Development Investment Program (Tranche 2)
Report Date: