Jammu and Kashmir Urban Sector Development Investment Program (Project 3 and Multitranche Financing Facility)
Timely and appropriate changes in scope enhance program success.
Timely and appropriate changes in scope enhance program success.
The technical and advisory support of ADB is important to assist executing agency re-assess the feasibility of the original scope of the MFF and make the necessary adjustment, as well in the ongoing and future tranches.
Prior to commencement, implementation arrangements should be agreed by all participating agencies to avoid unnecessary delays.
A clear implementation arrangement with respect to technical, institutional, and scope of work helps to avoid prolonged and lengthy implementation delays, especially for projects involving multiple cofinanciers and implementing agencies.
Flexible implementation arrangements helps in enhancing a project’s relevance and results. In some cases, project relevance may change during implementation due to lower demand or unexpected government policy that subsequently may require a change in project scope and targets. This provides an opportunity to modify or correct the project design to strengthen its intended outcome at appraisal. For instance, the project was aimed to improve the carbon market development and preparedness for carbon market participation.
The DMF missed some essential data that were important in
measuring project effectiveness. As this was a follow-up project, both executing
agency and ADB should have had up-to-date data and information. To avoid such
issues, ADB needs to make a rigorous assessment of the institutional
arrangements, and database benchmarks in the case of long-term commitments
and preparation of additional follow-on projects.
Well-developed, in-house expertise in appraising infrastructure subprojects, business development, risk management, and monitoring supported by good governance contributes significantly to effective implementation of an infrastructure financing facility. Over the years, IDCOL demonstrated this type of institutional capacity especially in power subprojects.
Skilled project management plays a critical role in ensuring effective project implementation
Quality construction supervision has a price. All works contracts were supervised by consulting engineers who ensured detailed engineering designs were adopted, and contractors’ progress claims were legitimate, among others. But the quality of works varied, with indications of insufficient funding contributing to the poor quality of many completed works.