East–West Highway Improvement Project

A thorough funds disbursement analysis should have been conducted during project implementation to determinesufficiency or insufficiency of funds from all sources to finance all project components. While the actual cost for theproject civil works sections increased by 50%, the project still ended with unutilized loan proceeds of $9.65 million (Loan 2205) and $1.40 million (Loan 2206 [Special Funds]). These were more than sufficient to continue implementing the local roads component estimated to cost $3.8 million, of which $3.0 million was to be funded from the loan. Even with a 50% increase in cost, the local roads civil works could still have been implemented.