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Lesson
The cost estimates at appraisal are conservative as they are based on the preliminary design with limited geological investigations. The potential cost increase due to complex and difficult terrain and geological conditions was not fully taken into account.

Project Number: 40052-013
Project Name: Kunming Qingshuihai Water Supply Project
Report Date:
Lesson
For short periods these conditions are tolerable, but for a major outage such as that witnessed during the evaluation mission, these plans are inadequate. Losses to businesses due to outages included cancelled bookings at smaller hotels without backup generators, food spoilage due to no refrigeration, less customer traffic due to discomfort for patrons in the high temperatures, and inability to manage booking changes or take credit card payments due to inoperable electronic ticketing and payment systems.

Project Number: 40914-021
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Emergency power plans are outdated. An accident resulted in a 4-day power outage for Siem Reap. In times of grid outages, Siem Reap is served by EDC’s 10.5 MW diesel-powered plant combined with individually owned generator sets that run on diesel and fuel oil. Those who depend on EDC for power suffer rolling brown-outs, but the many people and small businesses that are not connected to the EDC plant and have no individual backup generators face total blackout, i.e., these people have no power at all, and often, no water.

Project Number: 40914-020
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Guardrails might mitigate against transmission line accidents. The CPTL line runs along regional highways on government-owned rights of way and by necessity the poles are close to the road. During the evaluation mission there was a vehicle accident that required 10 poles to be replaced. Although nobody was hurt in the accident and the coordinated CPTL–EDC emergency response plan was very effective, Siem Reap was without grid power for 4 days. One possible mitigation of such a risk might be guardrails along the road.

Project Number: 40914-019
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Sponsors can identify qualified local maintenance providers. CPTL’s international maintenance provider departed with the majority shareholders and was successfully replaced with a local provider. If the project sponsors or project management teams are able to find suitably qualified local operation and maintenance solutions, costs to the project are likely to be lower and an important opportunity to create skilled jobs is created from the outset.

Project Number: 40914-018
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Controls over project cash flows and bank accounts protect project interests. The loan structure included strict controls over the project bank accounts. Bank accounts specifically dedicated to the CPTL project needed to be opened and maintained both outside the host country (the offshore account) and within it (the onshore account). All amounts payable to the project are required to be paid into the offshore account and may only be withdrawn according to the payment priorities and amount limits specified in the loan document.

Project Number: 40914-017
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Additional resident mission resources could aid in due diligence. Whether this dispute and its potential to disrupt the business could have been prevented through a change in due diligence procedures requires consideration, although the causes of the dispute itself are not clear. All existing due diligence requirements appear to have been completed, including checklists, and PSOD used an external consultant and included the resident mission in its due diligence process, even without a formal due diligence requirement to do so.

Project Number: 40914-016
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
The CPTL project itself offers a meaningful demonstration effect. It was well constructed and delivered electricity on time and to agreed specifications, in turn allowing EDC to deliver electricity to its customers. Under the PPA, EGAT delivers electricity to EDC via CPTL as agreed. EDC meets its contractual payment obligations to EGAT and CPTL. EAC monitors tariffs and licensees, allowing project benefits to be passed on to the end-users in the form of lower tariffs.

Project Number: 40914-015
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
More robust due diligence is needed during project design and formulation to enable the closest possible cost estimates and to set aside enough resources to cover contingencies. This can save considerable time. The scope of the ADB-financed East-West Highway Improvement Project, approved in 2005, included two sections of the east-west highway

Project Number: 39176-033
Project Name: Road Network Development Program (Project 2)
Report Date: