Delays were avoidable if the project preparatory technical assistance (PPTA) financing percentages had been retained. During the loan appraisal and negotiation phase, the recommended financing percentages of the PPTA of 70% ADB-30% regional plantation company (RPC) for social amenities and 90% ADB-10% RPC for the social development programs were adjusted to 50% ADB-50% RPC, resulting in RPCs not participating. Given the weak balance sheets and the lack of profitability, the desire for greater ownership through increased financial contribution was inconsistent. The subsequent increase in ADB financing overcame the issues, and implementation proceeded rapidly over 3 years. Second, there was unnecessary design complexity and add-ons. The core project components relating to investment and social objectives were coherent and achievable. The inclusion of additional inputs for the development of Tea Association of Sri Lanka (TASL), marketing alliances, and demand-based public research were not client-driven nor demanded, lacked appreciation of the commercial and proprietary rights attached to market relationships, and research findings as contributing factors for achieving competitive advantage.
Plantation Development Project