strong and continued political support and guidance is essential for formulating and implementing effective structural reforms to address the stock and flow of circular debt and improve the sustainability of the power sector. Internal resistance to changes within the sector cannot be overcome without direct involvement and support from key decision makers at federal and provincial governments.
Incomplete policies and weak reforms cannot fully address the underlying causes of the accumulating circular debt, which jeopardizes the financial situation of the sector and prolongs reliance on government subsidies and bailouts. A multiyear reform commitment through a flexible programmatic approach is necessary to implement the much-needed structural reform and realize sector transformation and financial sustainability
Properly defining technical parameters ensures successful project implementation. The
required equipment for end terminals, estimated to cost $0.5 million, was omitted from the pertinent
package; thus the $29.1 million investment was idle. The target annual power generation of 60
gigawatt-hours was an overestimate as it required securing agreements for purchasing 40% of the output
of the private sector’s biomass power projects and an optimistic utilization factor of 70% of the run-of-river HPPs.
Planning for
efficient resource use in advance adequately addresses the situation when the full output cannot
be delivered
Extending physical completion of works
beyond the financial closing of the loan, diminishes ADB’s ability to rigorously monitor and track
project progress, safeguards, and technical due diligence.
Use of two sample subprojects at the appraisal stage is insufficient to
make a reasoned assessment of the economic viability of a project of this size. A broader range
of ULBs would have indicated the economic viability, sustainability, and the reform measure
needed to ensure the success of the project.
Political support, and ultimately political accountability, is an essential component of institutional reform. An early back-to-office report (September 2014) stated that the government appreciated the importance of promoting a better business environment in the context of the private sector’s contribution to growth in gross domestic product. The government set up a Consultative Council on Reduction of Business Inspecting Agencies, chaired by the First Deputy Prime Minister to monitor implementation progress. All policy actions were completed.
Multidimensional programs need to have a balance on types of indicators but should take care to ensure that progress in threshold indicators can be properly recognized in the design and monitoring framework (DMF). Only 9 of the 12 unique output indicators between subprograms 1 and 2 had been achieved or almost achieved. Of these 9 achieved output indicators, 7 were binary , i.e., they only take the value of achieved or not achieved. The output indicators not achieved had specific numerical targets that had not been met.
Appropriately designing the project performance monitoring system during
design stage would ensure that it captures accurate and necessary baseline and monitoring data
for better tracking and assessing project performance.
Weak entrepreneurial skills, lack of financial literacy, and lack of viable projects affect the bankability of potential microfinance clients. Business development skills training primarily aimed at capacity development, skills transfer, financial literacy, and business advice help in enhancing the bankability of clients as well performance and viability of their businesses.