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Lesson
Providing EAs proactive guidance and close support in financial management from project start to finish will ensure timely and quality compliance. HPPTCL, executing its first ADB loan, faced initial challenges in meeting financial management-related requirements. However, these challenges were overcome as the project progressed, resulting in improved compliance.

Project Number: 43464-023
Project Name: Himachal Pradesh Clean Energy Transmission Investment Program (Tranche 1)
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Lesson
Wide time gaps between the finalization of construction cost estimate, initiation of the bidding process, and awarding of contracts should be avoided as these could lead to time and cost overruns. There were significant time gaps of 4–5 years between the finalization of the DPRs, including cost estimates and the completion of the bidding process. Besides causing startup delays, this also led to higher contract costs in comparison to the engineering estimates.

Project Number: 37143-033
Project Name: North Eastern States Roads Investment Program - Project 2 and Multitranche Financing Facility
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Lesson
Imprest fund and direct payment procedures could impact timely advance fund payment, leading to delays. Direct payment and reimbursement procedure was used by the project until 2018. This was discontinued in accordance with the policy change of the Government of India. Disbursements were on track— from the first disbursement on 12 September 2014—and reached 88.3% of the revised loan amount by the end of the original loan closing date of 30 June 2019.

Project Number: 42266-013, 42266-023
Project Name: Kolkata Environmental Improvement Investment Program - Tranche 1
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Lesson
Early identification of the need for minor changes in gender and other indicators and aligning them with the performance indicators in the design and monitoring framework (DMF) strengthen the relevance of the gender action plan and other pertinent project component.

Project Number: 38254-013, 38254-063
Project Name: North Karnataka Urban Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
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Lesson
Source sustainability issues leading to disruptions in the water supply and contributing to increases in nonrevenue water and infrastructure leakage index consequently impact service delivery and monitoring.

Project Number: 42267-026
Project Name: Rajasthan Urban Sector Development Program
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Lesson
The value addition of mainstreaming gender equality in terms of capacity building and awareness raising, and ensuring the participation of women, maximizes project benefits for women. It gives them the opportunity to participate in activities related to urban and water sectors and to develop skills that will increase their livelihood and income-generating opportunities

Project Number: 38254-013, 38254-063
Project Name: North Karnataka Urban Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
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Lesson
Time overruns could occur because of (i) the introduction of a new contracting modality that require longer lead time and stronger staff capacity, (ii) rebids due to the termination of nonperforming contracts, and (iii) challenges in the management of contractual disputes.

Project Number: 42267-026
Project Name: Rajasthan Urban Sector Development Program
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Lesson
Implementing urban infrastructure and providing universal municipal services within growing towns face complex ground-level challenges hence requiring more time for implementation.

Project Number: 38254-013, 38254-063
Project Name: North Karnataka Urban Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
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Lesson
Adequate consideration of the legal and administrative contexts of projects and the need for participatory democratic processes is a must to ensure that the timelines for achieving compliance with tariff-related reform covenants are not ambitious, as the case with this project.

Project Number: 38254-013, 38254-063
Project Name: North Karnataka Urban Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
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Lesson
Attainment of project benefits not within the project scope but instead are dependent on external factors downgrades project performance evaluation. The design and monitoring indicators included household sewerage connections, which were not part of the subprojects’ scope but were provided by the respective urban local bodies (ULBs). This led to dependence on external factors in the accrual of project benefits, thus impacting the final evaluation.

Project Number: 38254-013, 38254-063
Project Name: North Karnataka Urban Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
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Lesson
Alignment with government programs is crucial to the success of projects and its individual components. Under the project, the executing agency successfully implemented initiatives in (a) property tax and widening the property tax net, (b) MIS installation, (c) adoption of new accounting procedures, (d) staff training for the operation and maintenance of urban infrastructure, and (e) online billing and collection systems for the water supply and sewerage services in the program urban local bodies. This success is attributed to the alignment of the initiatives with government programs.

Project Number: 38254-013, 38254-063
Project Name: North Karnataka Urban Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
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Lesson
Inappropriate design of performance-based maintenance contracts (PBMCs), including unrealistic performance parameters, and limited capacities and understanding of complex contract conditions by project implementers and the bidders alike could delay procurement and cause additional difficulties in project administration.

Project Number: 38254-013, 38254-063
Project Name: North Karnataka Urban Sector Investment Program (Tranche 4 and Multitranche Financing Facility)
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Lesson
It is particularly important for complex sector development programs to (i) better plan the completion timeline, (ii) avoid linking performance indicators to multiple targets, and (iii) include in the project scope components that will address major beneficiary needs (house service connections in this program) that would enhance program relevance. The weak institutional capacity of implementing agencies and water source sustainability affected the project’s effectiveness and sustainability. The gender equality and social inclusion design could also have been better aligned.

Project Number: 42267-026
Project Name: Rajasthan Urban Sector Development Program
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Lesson
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.

Project Number: 43467-014, 43467-016
Project Name: Madhya Pradesh Energy Efficiency Improvement Investment Program (Tranche 2 and Multitranche Financing Facility)
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Lesson
The significant reduction in the amount of the ADB loan and the program cost with the withdrawal of Goa from tranche 1 and Maharashtra from tranche 2 is reflective of the quality of the work undertaken during the feasibility study stage. Better due diligence and a more rigorous review of the proposals are needed in future multitranche financing facility programs and projects so that similar major changes will not occur at such a late stage in program preparation.

Project Number: 40156-013, 40156-033
Project Name: Sustainable Coastal Protection and Management Investment Program (Multitranche Financing Facility and Tranche 2)
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