Energy Sector Development Investment Program—Tranche 2

There is a need for a better computation of costs at appraisal along with the inclusion of realistic contingencies, especially in areas with high security risks. Accurate cost estimates, particularly at appraisal, help minimize adjustments and revisions during implementation. ADB needs to undertake better duediligence of the project cost estimates at appraisal and a more realistic assessment of existing public procurement regulations. The possible inclusion of add-on security risk costs helps minimize cost overruns and poor project results.