Flexibility of multitranche financing facility design and process contributes to greater efficiency and harmonization of funds in the sector. As the MFF was implemented concurrently with several other initiatives to improve the state’s electrical distribution systems (para. 12), it was essential for each successive tranche to be specifically designed to fill gaps not covered by the various ongoing schemes to ensure the best use of the ADB loan funds. Project implementation was deemed successful thanks to the long-term partnership between the executing agencies and ADB with the use of MFF modality. Inclusion of an additional tranche to provide support for ERP strengthened the capacity of the executing agencies to implement large investment projects and improve the operational efficiency of their power distribution network.
Madhya Pradesh Power Sector Investment Program