Uttarakhand Power Sector Investment Program–Tranche 2

When revising the project scope, ensure that mistakes made during the design phase are not repeated. Before approving new MFF tranches, ensure that all covenants of the previous tranche(s) are met. This needs to be a condition for the disbursement of new funds, as at a later stage, ADB does not have much leverage to enforce such covenants. Focusing on fast loan disbursements can lead to premature procurement and later cancellation, incurring unnecessary financial charges and IDC on the borrower. More patience needs to be employed to ensure that the risks and uncertainties are reduced before approvals of procurement or loan disbursements.