Continued advisory support is required to sustain the momentum of reforms in Palau's energy sector. ADB provided substantial advisory support through ADB staff and by engaging experts through technical assistance operations to help the Palau Public Utilities Corporation (PPUC) implement the agreed policy actions and prepare background studies for both subprograms.
High staff turnover worsens capacity constraints. In this project, it aggravated lack of capacity to undertake procurement using ADB's Procurement Guidelines and the increased risk of misconduct and delays during implementation. Additional procurement capacity building for executing agency staff during implementation is therefore necessary even if procurement capacity risk is considered minimal at project appraisal.
Road maintenance units, backed by adequate skilled personnel and instititutional support for upgraded modernized systems, are required to maximize the benefits from completed road projects. Rural road network maintenance units play a crucial role after the existing 5-year performance based maintenance contract is completed. They will have to prepare and implement state-specific road maintenance programs.
Early and continuous involvement of financial staff and coordination with development partners are crucial to ensure aptly designed financial management arrangements. This is particularly true for multi-donor funded programs that require harmonization of financial management systems. As these were lacking in this project, significant financial management issues were experienced during implementation.
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.
Proper execution of project administration activities relies on the capacity and commitment of borrowers and agencies involved. It is crucial that executing and implementing agencies are well informed of ADB operational procedures and requirements, especially with respect to financial management. This allows a concerned agency to carry out the project activities appropriately and ensure timeliness.
Provision of adequate technical support for the executing and implementing agencies with respect to procurement planning as well as consultant recruitment and management helps in streamlining the procurement timeline processes. Specifically, providing capacity building support and training on ADB procurement procedures, biddings, and contracts facilitates effective execution of civil works' activities.
Projects supporting educational reforms such as improving the school dormitory system require a well-defined development plan and multi-faceted approach. Greater support for financial, human and physical resources, and capacity building, specifically support for policy and educational regulatory reforms, helps in improving project sustainability and in turn promotes better access to education.
Strong technical support and advice from ADB provides value addition to infrastructure projects, particularly for countries where institutional capacity is weak. Support includes the conduct of diagnostic work to assess the capacity of the sector and the institution and determine the risks and discuss the needed mitigation plan. The project was approved during the time when reorganization in the sector was underway. Thus, both the government and the ADB could have built on the momentum to fully take on its first multimodal transport investment.
Continued capacity building is required for Cambodia and the Lao PDR to move to a higher level of technical capacity in handling sanitary and phytosanitary (SPS) concerns. The project has strengthened SPS capacity in Cambodia and the Lao PDR and facilitated product-specific market access agreements with neighboring countries in the Greater Mekong Subregion. It strengthened academic aspects of SPS, which were nonexistent before the project. It enabled knowledge transfer in priority SPS areas from the training and day-to-day coaching provided by project consultants.