Scope changes can lead to extended implementation delays, especially when review and due diligence on these changes are not organized properly. The project experienced significant implementation delays due to factors which were unforeseen at approval. These changes resulted in reallocation ofthe loan proceeds. The review process including due diligence for these changes took 1 year on average. In fact, the process could have been shortened had the organization of these changes been orderly. For example, the third change was proposed in December 2016 while the second (proposed in July 2016 and approved in June 2017) was just being reviewed. In addition, the associated loan reallocation was not forwarded for approval together with the scope changes until April 2018. The lengthy review and due diligence for approval extended the whole implementation period.
Guangxi Beibu Gulf Cities Development Project