A holistic approach, including an exit strategy, helps improve the design of long-term support for the power sector. Therefore, the supervision of the investment program needs to closely track the capital works being implemented by the executing agencies using their own funds, and the assistance provided by other agencies, including complementary programs initiated by the government. Any gaps should be then filled by utilizing loan savings. ADB started supporting the Madhya Pradesh power sector over 20 years ago and the approved loans add up to $1,720 million. However, for example, it was unclear if the distribution companies (DISCOMs) have 100% metering in place, including districts not directly included in ADB-supported projects. The basic tool for improving billing and collection efficiency was a monthly energy audit supported by 100% consumer-, feeder-, and transformer-level meters. If there are gaps, the savings under the loans should be reallocated for procuring additional energy meters, equipment needed for monthly energy audits, and a management information system that alerted senior staff of lapses in billing and collection.
Madhya Pradesh Energy Efficiency Improvement Investment Program (Tranche 2 and Multitranche Financing Facility)