Due diligence for future projects should include developing a thorough understanding of the institutional setup and internal review and approval procedures as well as mapping out effective mitigation measures to minimize delays. This project's implementation was affected by cumbersome approval mechanisms at the executing agency (EA) headquarters for contract variations and extensions. Frequent interventions by ADB and EA top management were required to expedite decision-making. At appraisal, the report and recommendation of the President for both original and additional financing projects identified major risks and mitigation measures in relation to financial management, land acquisition and resettlement, and cost overruns. However, the risk associated with the internal approval mechanisms of EA was not identified.
National Motorway M–4 Gojra–Shorkot Section Project and National Motorway M–4 Gojra–Shorkot–Khanewal Section Project - Additional Financing