East–West Highway Improvement Project

A large amount of unused loan should be avoided. Although the actual cost for the civil works sections increased by about 50%, the project still ended with unused loan proceeds of $9.65 million (Loan 2205) and SDR1.40 million (Loan 2206). These were sufficient to finance the local roads, which were estimated to cost $3.8 million. A thorough fund disbursement analysis should have been conducted during project implementation. The PCR recognized the need for greater due diligence during project design and formulation, which includes carrying out adequate cost estimations and setting aside enough resources to cover contingencies. The IEM also highlighted this lesson for future road projects.