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Lesson
Compared to project-based lending, the choice of MFF as a modality is likely to risk decreasing the level of due diligence and scrutiny undertaken at the approval of single tranches. 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: 37139-053
Project Name: Uttarakhand Power Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
Report Date:
Lesson
Extending physical completion of works beyond the financial closing of the loan, diminishes ADB’s ability to rigorously monitor and track project progress, safeguards, and technical due diligence.

Project Number: 38254-043
Project Name: MFF - North Karnataka Urban Sector Investment Program - Tranche 2
Report Date:
Lesson
Providing technical assistance to strengthen the institutional capacity of newly established states, executing agencies, and implementing agencies is essential. Including capacity building activities could enable smooth project implementation, in line with ADB guidelines. However, a caveat is to avoid an optimistic assumption that the absorptive and implementation capacity of the executing and implementing agencies would achieve a significant improvement right after the technical assistance and capacity building activities.

Project Number: 37139-053
Project Name: Uttarakhand Power Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
Report Date:
Lesson
Use of two sample subprojects at the appraisal stage is insufficient to make a reasoned assessment of the economic viability of a project of this size. A broader range of ULBs would have indicated the economic viability, sustainability, and the reform measure needed to ensure the success of the project.

Project Number: 38254-043
Project Name: MFF - North Karnataka Urban Sector Investment Program - Tranche 2
Report Date:
Lesson
It is important to have tranche-specific DMFs that are logical, with sound links of outcome and output targets that are formulated in line with the principle of being specific, measurable, achievable, relevant, and timebound. For a specific tranche, the outcome and output indicators can jointly work to reflect the appropriateness and continuum of the results chain leading up to the high-level development impacts that are most relevant to the scope and focus of the tranche.

Project Number: 37139-023
Project Name: Uttaranchal Power Sector Investment Program - Tranche 1
Report Date:
Lesson
Midterm review is a key opportunity for course correction and review of the project design. This opportunity was not fully exploited and design flaws in the DMF remained until the project completion. T

Project Number: 38254-043
Project Name: MFF - North Karnataka Urban Sector Investment Program - Tranche 2
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
The design and monitoring framework needs to be updated to reflect realistic timelines when delays occur.

Project Number: 41627-023, 41627-033
Project Name: Himachal Pradesh Clean Energy Development Investment Program (Tranches 1 and 2)
Report Date:
Lesson
Significant implementation delays under both tranches underscore three important points: (i) weather conditions stop works during winter months and even interrupt work during other months, (ii) proper planning is essential so that issues such as inadequate access infrastructure can be taken care of sufficiently in advance, and (iii) extensive geological surveys and testing are crucial in the Himalayan region prior to the detailed project report stage.

Project Number: 41627-023, 41627-033
Project Name: Himachal Pradesh Clean Energy Development Investment Program (Tranches 1 and 2)
Report Date:
Lesson
It is important to properly sequence the implementation of technical assistance so it could provide its inputs to the project in a timely manner. According to the project completion report, the delay in the development of the National Transport Plan supported by the project preparatory TA affected project implementation as projects sites were required to be included in the plan prior to implementation.

Project Number: 40263-022
Project Name: Domestic Maritime Support (Sector) Project
Report Date:
Lesson
Ensuring adequate project performance monitorng system (PPMS) design—along with collection of baseline data at project preparation phase—supports effective monitoring of a project’s performance. Although establishing a PPMS was covenanted in the grant agreement, the PPMS was ineffective in providing the data required for calculation of economic internal rate of return. The lack of data indicates that the PPMS was inappropriately designed and that a greater focus on the PPMS design at project preparation is needed. For

Project Number: 40263-022
Project Name: Domestic Maritime Support (Sector) Project
Report Date:
Lesson
a detailed design and implementation assessment enhances the project’s success, especially for projects that help provide shipping services to outlying and remote island communities. ADB has experience in this with two projects in the Pacific region that were to provide shipping services to outlying and remote island communities—this one that is under validation while the other is the Community Water Transport Project in Papua New Guinea.16 However, both projects were rated less than successful, which indicate endemic issues with their design and implementation.

Project Number: 40263-022
Project Name: Domestic Maritime Support (Sector) Project
Report Date:
Lesson
It might be better for performance-based maintenance (PBM) contracts to be integrated into the civil works contracts to expedite its adoption in future projects. Procurement of a separate contract, particularly a PBM contract, for post-construction maintenance after completion of the civil works contracts is a major concern for any government agency as it involves various channels and processes for seeking internal government approvals.

Project Number: 49125-001
Project Name: Second Jharkhand State Road Project
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
A timely and amicable settlement of disagreements between the executing agency and consultants and/or contractors should be worked out to the extent possible to avoid court cases and minimize the associated costs. The executing agency (EA) terminated the contract of the consultant for institutional capacity development on grounds of performance. As a result, both parties presented arguments to the dispute board and the matter is under the purview of Honorable High Court of Jharkhand.

Project Number: 49125-001
Project Name: Second Jharkhand State Road Project
Report Date: