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Lesson
Not considering adequate funding options and provisions for operations and maintenance (O&M) during the design phase can lead to sustainability issues after project completion. It is critical that a systematic plan for O&M design and measures are developed at the outset, considering the agencies' financial capabilities and attendant risks such as low levels of tariff rates.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Assessment of potential political risks such as a change in government and identifying mitigation measures could help ensure the continuity of planned project activities, specifically when there is strong support, ownership, and commitment of an agency. In particular, it is important to consider the speed and direction of change in the policy regime. For example, a shift in the government priorities could trigger resource allocation that could potentially affect how a project could deliver its intended development results.

Project Number: 43405-023
Project Name: Urban Services Improvement Investment Program - Tranche 1
Report Date:
Lesson
Collaboration with development partners is essential to build consensus for reforms. Donor consensus and support for critical reforms, backed by a policy-based loan and plan to subsequently complement by project-level funding, contributed to the success of this program. Continued long-term engagement on reforms supported by investments is necessary for sustainability.

Project Number: 49006-003
Project Name: Electricity Transmission Sector Reforms Program
Report Date:
Lesson
Monitoring and continuous technical support is needed for effective continuation of reform because program impacts will be felt over the long term. The government has agreed to a postprogram engagement framework whose broad purpose is to ensure that policy reforms are not reversed and that Joint-Stock Company Georgian State Electrosystem stays on the path towards financial sustainability.

Project Number: 49006-003
Project Name: Electricity Transmission Sector Reforms Program
Report Date:
Lesson
Previous project completion reports confirmed that the Joint-Stock Company Georgian State Electrosystem has the capacity to undertake major power transmission projects. Nonetheless, GSE's staff could benefit from ADB-sponsored training and workshops in procurement, safeguards, and other areas.

Project Number: 49006-003
Project Name: Electricity Transmission Sector Reforms Program
Report Date:
Lesson
Strong government ownership is critical to achieving results. The Cabinet of Ministers, the and other project agencies had to coordinate closely among themselves to ensure that changes in law, decrees, regulatory changes, and board resolutions were implemented in a timely manner. If any intermediate step had been delayed, this would have resulted in a knock-on effect on other outcomes and resulted in delays in the project timetable. The Ministry of Finance negotiated concurrently for budget support from several development partners.

Project Number: 49006-003
Project Name: Electricity Transmission Sector Reforms Program
Report Date:
Lesson
Alternatives to grid connection should have been considered to electrify more rural poor communities. Inclusion of alternatives that are beneficial to low-usage rural customers, including solar home systems and mini grids, could have expanded project coverage and enhanced its impact.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
It is important to reassess Indicators at midterm. In addition to project review, a reassessment of the performance Indicators at midterm should have led to adjustments in the project design, including targets and implementation timeframes. These would have bolstered the project’s potential for success.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Equity issues need to be carefully considered and addressed in beneficiary selection and targeting. The potential for political influence in the selection of communities that would benefit from grid connection was identified as a risk. To mitigate this risk, independent consultants were engaged to develop the beneficiary selection criteria, which would eventually stipulate that (i) customers were to be within 250 meters of the transmission line, (ii) construction of the property had to be sound, and (iii) households must have the financial means to pay for the electricity provided.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Project preparatory and startup activities should be synchronized to avoid wastage of time and resources. The implementation of subprojects in multiple geographic locations and the need to manage the storage of equipment delivered years before installation added to the challenges in managing this project. Furthermore, consultant recruitment was not aligned to implementation progress.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Delayed implementation of an associated project can seriously affect the success potential of another. This project was critically dependent on the progress of tranche 1 of the Town Electrification Investment Program (TEIP). Specifically, it was to connect 4,500 rural households to the grid being extended under the TEIP tranche 1 project. The grid itself was to be maintained by the hydropower plants being constructed under the tranche 1 project. However, as tranche 1 incurred extensive delays so did this project which took 9 years to be completed versus the planned 3 years.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Drawing from similar past project experiences, as part of due diligence, will help minimize or avoid cost underestimations. The connection costs under this project were underestimated by 250%, resulting in the project installing only 43% of its planned 4,500 household connections. More thorough due diligence should have been carried out during project preparation, with cost estimates validated by experiences under similar past projects.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Corporatized public enterprises operating on a cost-recovery basis need government funding support for infrastructure improvements. Provision of government counterpart funding should have been a condition for grant effectiveness. Instead, the executing agency, the Papua New Guinea Power Limited (PPL), partially made funds available for civil works. PPL, as a corporatized enterprise, is mandated to operate on a cost-recovery basis and did not have sufficient funding allocation.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
A more detailed assessment of design, sound sector road map/strategy, and other MFF preconditions will help identify the appropriateness of MFF financing and improve the quality of an MFF implementation.

Project Number: 41122-013, 41122-043
Project Name: Road Corridor Investment Program (Tranche 3 and Multitranche Financing Facility)
Report Date:
Lesson
A thorough screening and assessment of project selection upfront is crucial to enhancing the effectiveness of MFF modality, especially its suitability and readiness for a specific type of investment. In a case where an MFF modality is designed to finance a typical stand-alone investment, the intended benefits and envisaged results of the financing instrument are less likely to be achieved.

Project Number: 41122-013, 41122-043
Project Name: Road Corridor Investment Program (Tranche 3 and Multitranche Financing Facility)
Report Date: