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Lesson
Closer coordination, capacity building, and handholding can improve project implementation when the executing agency has limited experience on implementing ADB-assisted projects. A review mechanism for assessing the efficacy of the trainings needs to be designed. The executing agency should be well versed in the ADB's safeguard policies to ensure compliance and accurate budgeting of the cost of safeguards. Any delays in the mobilization of experts to complement the staff of the executing agency should be expeditiously addressed.

Project Number: 47101-002
Project Name: Assam Power Sector Investment Program (Tranche 1)
Report Date:
Lesson
Allowances for possible cost increases in civil works can mitigate the effects of unforeseen geological conditions.

Project Number: 41627-023, 41627-033
Project Name: Himachal Pradesh Clean Energy Development Investment Program (Tranches 1 and 2)
Report Date:
Lesson
The cost categories required to be reported in the audited program financial statements (APFS) need to align with the categorization at appraisal so as not to cause problems in reporting. PLN faced difficulty in estimating the financing charges during implementation at appraisal stage. In addition, PLN raised a concern on the disclosure provision regarding APFS due to confidentiality requirements. The cost categories reported in the APFS were not aligned with the categorization used at appraisal, due to which changes to reporting formats were needed.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Budget approval and procurement of new technologies being piloted could take time and cause implementation delays; when installed, rigorous monitoring of the performance of the new technologies is required to ascertain benefits and draw lessons from the pilot experience. In implementing the four pilot smart grid projects, substantial delays occurred due to the lengthy budget approval process and the procurement requirement of open competitive bidding while allowing international bidder participation.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Timelines for policy changes and major reforms should also be realistic, knowing that building understanding and ownership can take time and the passage of legislation can be a lengthy process. Two municipalities declined to participate in the project because of their objection to the transfer of ownership and management of assets to a state government agency.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
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
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
While the timely and effective utilization of project savings can improve outcomes, it would be best to ensure reliable cost estimates at appraisal to avoid complications and mitigate implementation risks. Cost savings during implementation prompted two requests from POWERGRID, the borrower and executing agency of this project, to use available loan funds through minor scope changes. This enhanced project results and final outcome, particularly as ADB and POWERGRID were able to swiftly meet the requirements and provide timely support for the implementation of the scope changes.

Project Number: 44426-014
Project Name: National Grid Improvement Project
Report Date: