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Lesson
The results-based lending (RBL) modality provides flexibility to adjust targets adversely affected by unforessen adverse events such as COVID-19. During 2020–2022, the COVID-19 pandemic affected the demand for electricity, lowering the State Electricity Company's (PLN) revenues and creating uncertainty in its investment plans. Sourcing equity financing and implementing ongoing projects within PLN became difficult under such conditions and adjustments were needed in scope and time targets of ongoing works.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
When the minimum amount of disbursement needs to be established for some administrative reasons from ADB's co-financiers, it is beneficial to set it at the lowest possible level to enable financiers to respond flexibly to the disbursement needs on the ground. The Agence Française de Développement (AFD) required the minimum amount of $5 million to process disbursements, except for the first disbursement of $300,000, while the ADB did not impose such a threshold.

Project Number: 41074-013
Project Name: West Kalimantan Power Grid Strengthening 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
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
Lack of tariffs and insufficient operation and maintenance (O&M) budgets threaten the sustainability of water supply and sanitation facilities in FSM. The water supply and wastewater components are unlikely to be sustainable because of the unwillingness to charge for services, and the insufficiency of annual O&M budgets.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
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
Overestimated project costs lead to unutilized loan amounts and wastage of commitment fees. At appraisal, the investment program was estimated to cost $920.0 million, comprising ADB loans of $730.0 million (79.4%) and government contributions of $190.0 million (20.6%). At completion, the program cost totaled $669.3 million, of which ADB provided $253.8 million (37.9%).

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program
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
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
Project administration missions with poor monitoring of the quality of the design and implementation of the project performance management system can negatively affect assessments of the project’s development results.

Project Number: 46044-002
Project Name: Renewable Energy Development and Power Sector Rehabilitation Project
Report Date:
Lesson
Reliable small hydropower plants and economically efficient renewable energy sources can contribute to decarbonize island-state economies. Other renewable energy sources such as solar photovoltaic, floating solar photovoltaic, wind and ocean energy complement the existing SHPs and help to diversify generation mix. It also helps to lower the cost of electricity production and improve utilities’ financial performance

Project Number: 46044-002
Project Name: Renewable Energy Development and Power Sector Rehabilitation Project
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
Clarity of all provisions in the loan and grant agreements and proactive assistance in consultant recruitment and other areas where executing and implementing agency (EA/IA) capacity is lacking will mitigate the risk of startup delays.

Project Number: 42361-013, 42361-014
Project Name: Medium-Voltage Sub-Transmission Expansion Sector Project and Additional Financing
Report Date: