Economic

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.

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.

The success of the government anti-crisis plan in terms of maintaining economic growth and protecting vulnerable groups validated the effectiveness of the government’s approach. The reforms it promoted proved successful in achieving the government’s goals of protecting vulnerable citizens, ensuring food security, and maintaining employment levels while promoting gender equality and climate and disaster resilience.

The success of the government anti-crisis plan in terms of maintaining economic growth and protecting vulnerable groups validated the effectiveness of the government’s approach. The highly pro-poor, socially inclusive measures proved successful in achieving the government’s goal to protect vulnerable populations, ensure food security and price stability, and preserve jobs.

An institutional analysis undertaken during appraisal phase helps provide an assessment of the technical capacity of concerned institutions as this is essential in ensuring smooth project implementation activities. Such analysis could include a political-economy assessment that could help strengthen project preparation activities, especially in assessing possible changes to policies and government priorities.

Court cases and stay orders, due to compensation complaints, can cause unnecessary project delays. Court cases and stay orders secured by a few landowners, despite being awarded due compensation approved by competent authority, hampered project implementation. Some cases were resolved quickly, while others lingered, waiting for court resolution.

When a project provides substantial climate mitigation and environmental benefits, a project economist with strong background and experience in environmental valuation method can undertake the project economic analysis at appraisal. Usually, energy efficiency improvement projects have very low pay back periods and high economic internal rate of return. ADB should investigate the ways in which it can formalize the use of carbon prices in energy efficiency project economic analysis.

Effective and efficient implementation of large-scale land acquisition and resettlement activities depends largely on strong political will and commitment at all levels of the government. An executing agency needs to be proactive and initiate close working relationships with local authorities to resolve identified issues on the ground. Local communities, particularly affected households, must be engaged and their concerns should be adequately factored in by project design.

A more comprehensive analysis of the road network is crucial to better understand the need for road improvements in given road corridors e.g., surface upgrades, widening, and new roads. While for consistency the project completion report replicated the methodology used during project appraisal, it is observed that traffic forecasts were based solely on economic growth projection of the gross domestic product, and the elasticity of traffic by vehicle type is not justified.

A well-designed project performance management system greatly facilitates the identification, quantification, and valuation of economic benefits, and help in evaluating the extent of the project’s effectiveness.