Bid evaluation criteria and contractor qualifications should be carefully set, referencing historical financial performance and contracts of similar nature and size to ensure the selection of high quality and experienced contractors. The initial contractor selected for tranche 1 could not complete the work and left the project; therefore,
High quality detailed designs, ensured through the engagement of competent consultants, will facilitate advance procurement thus allowing projects to start up without delay as intended by the advance procurement actions. With advance procurement action, the executing agency succeeded in shortening the time for procurement after loan effectiveness. Despite the positive effect, the detailed design was not prepared correctly, resulting in the technically qualified bidder’s financial proposal being higher than the cost estimates.
Lack of continuity in the staff of key project agencies could lead to chronic implementation delays. Procurement of works and recruitment of consultants followed due process and were completed; albeit with delays. Although NHA has carried out procurement for multiple MDB-financed projects; a lack of continuity of key staff at its Procurement and Contract Administration posed challenges for each procurement and this project was no exception. Procurement consultant support is a regular feature provided by ADB.
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.
Limited understanding of contractors of complex site conditions impacted their performance, delayed implementation, and often resulted in contract termination; About 30% of the total cost of civil works were contracted before loan signing and over 90% of total contracts awarded by 2014.
Systematic analysis of market capacities and pragmatic cost estimation for better packaging options could avoid procurement delays and rebidding because of poor bidder participation. Considering the remoteness of the project locations and the market capacities, the EA modified contract conditions for sewerage network contracts to attract bidders. Despite modifications, poor response from bidders continued, resulting in repeated rebidding.
Overly ambitious performance indicators can undermine some of the program’s achievements, particularly when reforms are undertaken during a crisis. In this program, The higher-level objective of a more inclusive, sustainable, and dynamic knowledge-based economy did not relate closely to the policy actions in the program—apart from the introduction of technical and vocational education and training.
Designing the early tranche of an MFF program in preparing detailed engineering design, capacity building, and training support to include planning, procurement, and project management among others, incentivizes the readiness for project execution of succeeding tranches.
Setting well-considered and realistic targets for indicators can highlight project performance and minimize revisions during implementation. Revision of DMF targets created the notion that the executing agency was merely avoiding a poor or low achievement rating and it should be clearly explained
The report and recommendation
of the President (RRP) had indicated that 13 of the 25 urban local bodies (ULBs) demonstrated that their municipal
cash flows would be sufficient to meet the additional expenditures resulting from the investment
program and that the other 12 should propose a financial improvement action plan for sustaining the subprojects. No such action plans were developed. Had these actions plans been developed
before subproject approvals, the sustainability of the subprojects would likely have improve