Road Corridor Investment Program - Project 2

Need for adequate resource allocation to preparatory works for new projects. The cost overrun of the civil works component was a primary reason for the cancellation, and was caused by inadequacies in the investment program appraisal with respect to safeguards, engineering design and the cost estimate. The project preparatory TA was conducted with very limited resources - only about $0.75 million was allocated to complete a comprehensive feasibility study for the investment program within 8 months, which was insufficient for a country that had become an ADB member country only one year before the TA's commencement, and for construction of roads in a greenfield site. The budget and implementation duration should have been carefully examined and discussed in depth with the government prior to the project preparatory TA's implementation. ADB currently has a different financial modality to provide project preparatory support to its developing member countries, called as project design advance, that involves more robust funding for needed studies and detailed advance design, with greater government ownership.