While the timely and effective utilization of project savings can improve outcomes, it would be best to ensure reliable cost estimates at appraisal to avoid complications and mitigate implementation risks. Cost savings during implementation prompted two requests from POWERGRID, the borrower and executing agency of this project, to use available loan funds through minor scope changes. This enhanced project results and final outcome, particularly as ADB and POWERGRID were able to swiftly meet the requirements and provide timely support for the implementation of the scope changes. ADB’s advance procurement facility particularly helped with the swift and timely utilization of project savings. The experience notwithstanding, it is advisable that the processing team adequately assess cost estimates at appraisal through financial due diligence and detailed consultations with stakeholders and suppliers.
National Grid Improvement Project