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Lesson
Following ADB Procurement Guidelines throughout will avoid any issues over unfamiliarity with or misunderstanding of the conditions. Although the use of the implementing agency's works and procurement policy and procedures was approved with conditions for smaller contracts, the implementing agency's decision to follow ADB's guidelines eased implementation and minimized procurement issues.

Project Number: 46537-002
Project Name: Solar Transmission Sector Project
Report Date:
Lesson
ADB close mentoring and guidance are crucial to ensuring quality financial reports and well functioning financial systems. During the first reporting year of the project, the implementing agency had difficulty complying with the annual financial reporting requirements. Through ADB's close mentoring and guidance, the reports gradually improved, from the beginning of fiscal year 2019 up to 2021, and the auditors issued clean or unqualified opinions.

Project Number: 49214-002
Project Name: Solar Transmission Sector Project
Report Date:
Lesson
The periodic maintenance payment rates may be standardized for future use. This project incorporated maintenance payments for the first year, allocated at prefixed rates, and with provision for an annual increase in subsequent years. Comparing the periodic maintenance payments made to the contractors with the actual expenditure incurred by the contractors, there is basis for standardizing periodic maintenance payment rates.

Project Number: 43574-025
Project Name: Uttar Pradesh Major District Roads Improvement Project
Report Date:
Lesson
A detailed market assessment is necessary to come up with reliable cost estimates. The actual costs deviated significantly from the original estimates, aggregating to only $29.35 million or 49% of the $60 million total estimated cost. This was mainly because of the nearly 30% drop in the actual cost of equipment realized through the international competitive bidding process, the reduction in the number of distribution transformers installed, and the reduction in the scope of underground cable installation actually undertaken.

Project Number: 47101-003
Project Name: Assam Power Sector Investment Program - Tranche 2
Report Date:
Lesson
Compliance with financial covenants on institutional reforms and asset valuation and reconciliation, need a high level of commitment, capacity, and resources from the executing agency. Further, substantial changes in state-owned enterprises take time to get implemented in full. Despite efforts made by executing agency, the Assam Power Generation Corporation Limited (APGCL), lack of capacity and resources resulted in some of loan covenants to be achieved only partially.

Project Number: 47101-002
Project Name: Assam Power Sector Investment Program - Tranche 1
Report Date:
Lesson
To avoid unnecessary financing commitments and fund allocations, it is important to undertake a detailed needs assessment of all planned components. The project cost was 31% lower than estimated because of lower bid prices received under the international competitive bidding, the transfer of part of the project scope to another tranche project, and non-implementation of some project activities. ADB financing was 22% lower than its $50 million loan commitment.

Project Number: 47101-002
Project Name: Assam Power Sector Investment Program - Tranche 1
Report Date:
Lesson
Road transport projects typically involve a variety of risks during implementation. Formulating appropriate project design and risk assessment during the preparatory phase is critical to minimize start-up and implementation delays. This includes a systematic appraisal of the project’s technical scope and engineering design, project cost and contingencies, environmental and social safeguards, and financial and contractual risks.

Project Number: 40423-053
Project Name: Rural Connectivity Investment Program (Tranche 3 and Multitranche Financing Facility)
Report Date:
Lesson
A timely and appropriate change in scope responding to unexpected circumstances can mitigate the adverse impact on project implementation, delivery of outputs, and maintain a project’s relevance.

Project Number: 41614-013, 41614-036
Project Name: Assam Power Sector Enhancement Investment Program (Tranche 4 and Multitranche Financing Facility
Report Date:
Lesson
The quality of project implementation relies on the capacity of borrowers and agencies. It is crucial that executing and implementing agencies are familiar with ADB procedures and requirements, specifically in the procurement process, safeguards’ policies, and financial management. This will enable the agencies to better manage project-related activities and avoid unnecessary start-up delays during implementation.

Project Number: 38272-013, 38272-033
Project Name: Uttarakhand Urban Sector Development Investment Program (Tranche 2 and Multitranche Financing Facility)
Report Date:
Lesson
The financial health of key project agencies needs to be thoroughly assessed at project preparation to determine their viability and identify the proper risk mitigation measures. Although a financial management assessment was conducted for the implementing agency, the United Water Supply Company of Georgia Limited Liability Company (UWSCG) during project preparation, the assessment only pointed to a need for training in accounting and reporting, preparing business plans, determining tariffs and procurement.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
The scope and amount of an MFF need to be realistically designed by avoiding an optimistic assumption that the absorptive and implementation capacity of the executing and implementing agencies would achieve a significant improvement during program implementation. Simpler project designs, with specific purposes and fewer agencies involved in a limited number of locations, are also more likely to succeed than those with a broad scope and overly ambitious and complex structures.

Project Number: 37139-023
Project Name: Uttaranchal Power Sector Investment Program - Tranche 1
Report Date:
Lesson
Adequate due diligence at appraisal can ensure appropriate project design and a realistic project implementation plan and timeframe duly considering the borrower's and executing agency's capacity across institutional, financial, and operational aspects. Identifying and implementing risk mitigation measures and providing adequate early-stage support are crucial in minimizing initial delays and addressing emerging project needs. Risks associated with natural disasters can be an integral component of risk assessment at project design.

Project Number: 37139-023
Project Name: Uttaranchal Power Sector Investment Program - Tranche 1
Report Date:
Lesson
Instituting a dedicated project account can instill cash flow discipline and ensure the exclusive use of payments for the project thus avoiding cash flow problems that can hinder work progress. Contractors in road construction projects in India generally face cash flow issues while executing the project because the funds they receive are diverted from the project to other purposes. This disrupts progress.

Project Number: 49125-001
Project Name: Second Jharkhand State Road Project
Report Date:
Lesson
Timely partial cancellation of unutilized loan funds should be undertaken to save on commitment charges. Disbursement projections at effectiveness were not met because of initial procurement delays. However, the projections revised during implementation were realistic, with over 90% of loan amount disbursed by project closure in 2017. When it was anticipated that entire loan funds may not be utilized even within extended loan period, the executing agency (EA) could have undertaken partial cancellation of loan funds. This would have allowed some savings in commitment charges.

Project Number: 38254-053
Project Name: North Karnataka Urban Sector Investment Program - Tranche 3
Report Date:
Lesson
The design of future irrigation rehabilitation projects can build on the project’s community empowerment model but also consider options for increasing beneficiary contributions for water use. The project increased community ownership and management of irrigation infrastructure through resourcing and strengthening the participation of women and their roles in the water user cooperative societies (WUCSs). Despite gains in irrigation fee collection, the WUCSs and infrastructure O&M requirements are not yet financially sustainable without significant government inputs.

Project Number: 43253-023
Project Name: Karnataka Integrated and Sustainable Water Resources Management Investment Program - Project 1
Report Date: