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Lesson
Strong project design, including carefully thought-out subproject selection criteria and adequate financial assessments can help reduce the need for scope changes and mitigate the risk of implementation delays. At approval, this project included seven subprojects in five provinces. Four of the seven subprojects were dropped in 2016 and 2017 because of changes in the companies’ investment priorities, changes in management due to the equitization process, and/or insufficient financial capacity.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
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Lesson
In turbulent times, projects must formulate comprehensive contingency plans for major emergencies such as (i) strengthening risk management with flexible plans to address unpredictability, (ii) developing adaptable resource plans, (iii) enhancing supply chain transparency to mitigate delays, (iv) improving remote team collaboration, and (v) leveraging digital technology to monitor projects during emergencies. This project was affected by the pandemic and required a loan extension until 30 June 2022, necessitating a corresponding extension of the implementation period.

Project Number: 45022-002
Project Name: Jiangxi Ji'an Sustainable Urban Transport Project
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Lesson
Based on the experience from this TA, comprehensive contingency plans need to be in place to address potential disruptions or changes in future energy projects. These plans should account for geopolitical, economic, and environmental factors. Moreover, it is important to encourage diversification of energy sources to reduce reliance on a single resource. Exploring renewable energy options, such as solar, wind, and hydropower, to enhance the resilience of energy projects and prioritizing sustainability in all energy projects are particularly important in this regard.

Project Number: 44184-012
Project Name: Afghanistan and Turkmenistan: Regional Power Interconnection Project
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Lesson
Geopolitical shifts, market dynamics, and government decisions could impact project continuity. This was shown by the TA which highlighted challenges in ensuring the continuation of projects beyond the TA phase.

Project Number: 44184-012
Project Name: Afghanistan and Turkmenistan: Regional Power Interconnection Project
Report Date:
Lesson
ADB needs to be persistent in organizing outreach endeavors to update SASEC countries’ officials, ministries of power, sector regulators, planning agencies, and other stakeholders about significant trends in regional cooperation. It can build upon and maximize the results of this TA which has played a crucial role in enabling SASEC members to develop a conducive environment for investment decisions and project design in cross border electricity trade and regional gas cooperation.

Project Number: 52070-001
Project Name: South Asia Subregional Economic Cooperation Regional Energy Cooperation
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Lesson
Lack of adjustments in the design and monitoring framework (DMF), despite changes in TA priority and activities, could cause changes in counterparty priorities, expectations, and levels of commitment to a tax reform project. This TA's priority and activities were adjusted in response to the changed needs and business circumstances of the State Tax Service and the Ministry of Finance. However, no corresponding changes were made to the DMF, prompting changes to counterparty attitude and response to the tax reform project.

Project Number: 53105-001
Project Name: Strengthening Tax Policy and Administration Capacity
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Lesson
Construction timelines in climate-affected areas need to be reliably assessed to minimize completion delays. The construction timelines for Karamyk BCP, located at altitude of 2,300 meters above sea level, were tight. The contractor faced various issues due to the harsh weather, electricity supply interruptions, and delays with the supply of materials and equipment. Combined with the contractor’s relatively low financial capacity, this resulted in a 4-year construction period versus the originally planned 15-month implementation timeline.

Project Number: 46124-001
Project Name: Central Asia Regional Economic Cooperation Regional Improvement of Border Services Project
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Lesson
Insufficient project funds and funding for operation and maintenance (O&M) threaten the sustainability of project benefits and outcomes.There are challenges in maintaining and operating the project facilities following project completion because of uncertain annual budget allocations from the government. The revision of project agency roles and responsibilities due to the upgrade of Pakse from a district to a city has led to a shortfall of budget, particularly for landfill operations. The uncompleted riverbank protection work, have made project sustainability less than likely.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
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Lesson
Project readiness and advance contractung and retroactive financing facilitate successful and timely project completion. Project readiness—in terms of technical, financial, and safeguards readiness—was effectively undertaken, thereby facilitating smooth project implementation. The use of advance contracting and retroactive financing likewise helped enable the completion of all project activities by the original loan closing date.

Project Number: 47047-002
Project Name: Shandong Groundwater Protection Project
Report Date:
Lesson
Accurate cost estimates, including for contingencies, and effective utilization of loan savings are critical to the attainment of intended project results and timely financial closing. The actual contract price was lower than the amount estimated because of the inaccuracy of the engineering cost estimate and contingency estimates. Cost savings, however, were effectively utilized through minor changes in the project, further enhancing the achievement of project outcomes and outputs. Eligible expenses should be clarified early on, so as not to delay the project financial closing.

Project Number: 47047-002
Project Name: Shandong Groundwater Protection Project
Report Date:
Lesson
The engineering design of infrastructure investments need to be simple and adequately consider post-project financial and human resources capacity for and operation and maintenance. The rationale for this project's overall design was justifiable as it highlighted Pakse as an economic and commercial center of southern Lao PDR. The choice of investments reflected the immediate needs of Pakse. However, in terms of future maintenance, the design of the landfill was considered overly sophisticated for local authorities with limited financial and human resources.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Counterpart funding arrangemnets need to be ascertained if doable in the local context. The project required the government and local communities to contribute 10% to the cost of construction of infrastructure improvements to build community ownership of the project facilities. However, the capacity of the local government and communities to contribute was limited to 4.7% and 1.8%, respectively. Delayed allocation and availability of counterpart funds for resettlement compensation caused delays during implementation.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Inadequate assessment of deficiencies in technical and financial capacities to operate, maintain, and manage sanitary landfills could have detrimental impacts. The project completion mission noted deficiencies in the management of the landfill. In the absence of an effective management system, the new landfill currently operates as an uncontrolled dumping site. There is a need for proper handover procedures and transfer of management from the project to the local authorities.

Project Number: 43316-012
Project Name: Pakse Urban Environmental Improvement Project
Report Date:
Lesson
Current TA rating methodologies, which require reaching certain budget expenditure levels, can disincentivize appropriate cost management and encourage prioritizing budget use over project objectives.

Project Number: 55035-001
Project Name: Research for Demonstration of Carbon Capture, Utilization, and Storage Technologies in Industrial Sectors of Yunnan Province
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Lesson
Frequent changes of key counterparts can slow down complex studies that require access to confidential information and fluent communication.

Project Number: 53054-001
Project Name: Smart Energy System for Mongolia
Report Date: