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Lesson
Overreliance on the private sector for power generation investments when there are structural issues in the distribution sector that may not result in desired outcomes. Financial viability and cost recovery in the sector are important considerations for private sector investments in power generation in the absence of opportunities to sell electricity outside the state.

Project Number: 29473-013, 29473-023
Project Name: Madhya Pradesh Power Sector Development Program [Loans 1868/1869]
Report Date:
Lesson
Restoring financial viability of the power sector in Madhya Pradesh requires a holistic approach encompassing technical, institutional, and governance measures. The Madhya Pradesh power sector has been suffering from structural problems such as persistently high level of ATC losses, increasing cost of generation and power purchase, and limited scope of tariff increase as industrial tariffs have already reached the cost of captive power generation.

Project Number: 29473-013, 29473-023
Project Name: Madhya Pradesh Power Sector Development Program [Loans 1868/1869]
Report Date:
Lesson
Regulatory and institutional reforms alone are important, but they will not result in improved performance in the absence of accountability and incentives. The SDP was based on the premise that regulatory and institutional reforms will improve the performance of sector entities. Although the regulatory and institutional reforms were implemented as intended, the sector entities except for MPTransco showed no significant improvement in performance.

Project Number: 29473-013, 29473-023
Project Name: Madhya Pradesh Power Sector Development Program [Loans 1868/1869]
Report Date:
Lesson
Like other state electricity boards, ASEB experienced difficulties in obtaining state government budgetary support, which badly constrained its operations. Since Assam's financial condition is particularly serious, addressing financial issues upfront is key to successful reform. Investments under the multitranche finance facility (MFF) will include institutional development, ensuring a sustainable reform program.

Project Number: 36318-023
Project Name: Assam Power Sector Development Program
Report Date:
Lesson
ASEB, with the support of the Government of Assam (GOA), took advance action to acquire land and clear other statutory hurdles, which eased implementation. In earlier ADB-assisted power sector projects, land acquisition and resettlement issues generally caused delays. Although ASEB was initially not fully conversant with ADB procedures, timely support from ADB and willingness of ASEB staff to adopt these practices helped implement the project. ASEB and GOA fully supported the project and retained key project management unit (PMU) staff.

Project Number: 36318-023
Project Name: Assam Power Sector Development Program
Report Date:
Lesson
Before ADB's support, the Assam State Electricity Board (ASEB) had not taken on transmission and distribution (T&D) projects of such magnitude due to financial constraints. However, the successful project implementation amply demonstrates that, if appropriate institutional support is provided, it can carry out such a project adequately.

Project Number: 36318-023
Project Name: Assam Power Sector Development Program
Report Date:
Lesson
No new lessons

Project Number: 35068-013
Project Name: Gujarat Earthquake Rehabilitation and Reconstruction Project
Report Date: