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Lesson
The results-based lending (RBL) modality provides flexibility to adjust targets adversely affected by unforessen adverse events such as COVID-19. During 2020–2022, the COVID-19 pandemic affected the demand for electricity, lowering the State Electricity Company's (PLN) revenues and creating uncertainty in its investment plans. Sourcing equity financing and implementing ongoing projects within PLN became difficult under such conditions and adjustments were needed in scope and time targets of ongoing works.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Budget approval and procurement of new technologies being piloted could take time and cause implementation delays; when installed, rigorous monitoring of the performance of the new technologies is required to ascertain benefits and draw lessons from the pilot experience. In implementing the four pilot smart grid projects, substantial delays occurred due to the lengthy budget approval process and the procurement requirement of open competitive bidding while allowing international bidder participation.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Misperceptions about the new technologies being can adversely affect their adoption. A misperception among postpaid customers that prepaid meters would lead to increased electricity costs resulted in lower-than-expected migration postpaid to prepaid meters. In addition, the full benefits of smart meters are currently not being achieved by either PLN or the business consumers because the smart meters are currently being used only to read meters remotely and at times even this is not possible due to the weak communication infrastructure in some areas.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
The cost categories required to be reported in the audited program financial statements (APFS) need to align with the categorization at appraisal so as not to cause problems in reporting. PLN faced difficulty in estimating the financing charges during implementation at appraisal stage. In addition, PLN raised a concern on the disclosure provision regarding APFS due to confidentiality requirements. The cost categories reported in the APFS were not aligned with the categorization used at appraisal, due to which changes to reporting formats were needed.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Adequate safeguard reporting arrangements with frequency and report templates included in the construction contracts and technical guidance on the implementation of safeguard actions can strengthen project compliance to ADB safeguard requirements. The introduction of program actions through the RBL programs has improved PLN staff's awareness and capacity concerning ADB safeguard requirements. The grievance redress mechanism was found to be an area for further improvement during the evaluation of the previous RBL in Sumatra.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Shifts in the types of projects can affect the financing products that may be supported under the clean energy financing (CEFP) platform. At project design, the CEFP was planned to provide three types of financing products: entrusted loans, guarantee funds, and lease financing facilities. During implementation, only entrusted loans were utilized. The other two financing products were not used because of shifts in the types of projects which did not require guarantees and lease financing.

Project Number: 48452-004
Project Name: Shaanxi Accelerated Energy Efficiency and Environment Improvement Financing Project
Report Date:
Lesson
The delay in achieving project effectiveness was unforeseen and unwarranted, given the priority requirement of rooftop solar PV systems to meet national policies,

Project Number: 50373-002
Project Name: Rooftop Solar Power Generation Project
Report Date:
Lesson
Additional approval required by the Ministry of FInance had caused delays to the overall lending process, despite a central monitoring and approval process which was imperative to maintain consistency and objectivity of the project. However, the same level of oversight and central approval process can be implemented in projects where relevant parties are provided with an online tool to manage documentation and other activities.

Project Number: 50373-002
Project Name: Rooftop Solar Power Generation Project
Report Date:
Lesson
Stakeholder expectations and reliance on concessional financing have a negative effect on the market upon completion of the project. Until the loan is fully used up, the market seldom finds innovative methods to improve viability without such concessional conditions. Therefore, by design, the project shall encourage the market to evolve and innovate to sustain without any concessional financing.

Project Number: 50373-002
Project Name: Rooftop Solar Power Generation Project
Report Date:
Lesson
Despite the market already being available to cater to the project, the TA intervention resulted in a much smoother implementation that may have been difficult without a TA. Such TA components could improve project effectiveness and the good practices introduced would better the overall market. Thus, similar TA projects are encouraged for greenfield projects of this nature.

Project Number: 50373-002
Project Name: Rooftop Solar Power Generation Project
Report Date:
Lesson
Strong collaboration between the executing agency and the land office from the project planning stage is critical to minimize delays in land acquisition completion and land ownership update.

Project Number: 41074-013
Project Name: West Kalimantan Power Grid Strengthening Project
Report Date:
Lesson
The need for proper arrangements to meet customary ceremony requirements, which can cause delays, should be anticipated in future project designs. For example, because a sacred cemetery to the community was identified at the construction site of a project package, a customary ceremony was needed and conducted to meet the local community's religious requirements.

Project Number: 41074-013
Project Name: West Kalimantan Power Grid Strengthening Project
Report Date:
Lesson
A draft proposal on income restoration and rehabilitation programs need to be prepared along with the safeguard plans to avoid delays in safeguards implementation. In this project, contractors of four packages should have deployed fulltime environmental and occupational safety and health personnel to raise awareness and enforce the safeguard requirements for subcontractors and workers.

Project Number: 41074-013
Project Name: West Kalimantan Power Grid Strengthening Project
Report Date:
Lesson
Proper location of the project management unit is crucial to smooth implementation. Daily coordination and supervision were initially undertaken across two distant sites: the construction implementation unit (UIP) in East Kalimantan and the project implementation consultant in West Kalimantan. This caused coordination difficulties on implementation issues arising from the field. In 2016, UIP West Kalimantan was made in charge of project management. This improved project management and coordination, making implementation smoother for the rest of the project duration.

Project Number: 41074-013
Project Name: West Kalimantan Power Grid Strengthening Project
Report Date:
Lesson
When the minimum amount of disbursement needs to be established for some administrative reasons from ADB's co-financiers, it is beneficial to set it at the lowest possible level to enable financiers to respond flexibly to the disbursement needs on the ground. The Agence Française de Développement (AFD) required the minimum amount of $5 million to process disbursements, except for the first disbursement of $300,000, while the ADB did not impose such a threshold.

Project Number: 41074-013
Project Name: West Kalimantan Power Grid Strengthening Project
Report Date: