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Lesson
The DSPP entity undertook non-operational decisions relating to the company name and accounting practices without gaining the required approvals from the lenders before implementing the decisions. While these matters have been satisfactorily explained subsequently, they raise concerns for lenders seeking to confirm that the project entity is being managed in accordance with the requirements of the loan documents; significant time is expended to work through these issues as they are discovered.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
The hedging policy approved at appraisal did not reflect the foreign exchange hedging instruments available in the local market. When exchange rates deteriorated, the hedging policy and the required sponsor support needed to be renegotiated. It is fairly usual to have rolling foreign exchange hedging requirements, rather than the life-of-loan program that was originally documented, and better investigation of the likely options that would be available to the project could have reduced the work required to adapt to the situation as it arose.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
RPL is a strong company with extensive resources, enabling it to quickly identify appropriate technology, supervise quality construction, and be a good corporate partner within the communities it serves. To meet the requirements of CERC’s tariff regulations, RPL needed to develop and construct a project in a short period of time that would withstand the local climate conditions. The project’s performance above expectations is due to RPL’s decisions about technology, design, and construction quality.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
ADB’s long-term focus on energy sector development in India has supported all aspects of the improving energy situation in the country. Work done by ADB has contributed to policy changes, new infrastructure, and increased private sector participation in the delivery of electricity to end-users. Established knowledge of the local situation, and particular focus on renewable energy enabled ADB to respond quickly to the policy changes supporting solar power and provide timely support to an important client to deliver the first utility-scale solar PV plant in India.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
Considering the large capacity development needs of the GOWB and other states in India in areas such as modernization of public financial management and information technology systems, future programs should consider longer-term support efforts in this area. Moreover, state-level reform programs of this same nature could consider a sector development program modality with a program loan component accompanied by a project loan, rather than an attached TA, as a suitable option.

Project Number: 44453-014
Project Name: West Bengal Development Finance Program
Report Date:
Lesson
This program, like others that ADB has supported in India starting in the mid-1990s, came about as a result of a looming fiscal crisis. While most programs have helped states undertake urgent fiscal adjustment and reforms; this experience raises the question of whether more proactive processes can be adopted to help states make ongoing, incremental adjustments and reforms so as to avoid major crisis-driven response efforts.

Project Number: 44453-014
Project Name: West Bengal Development Finance Program
Report Date:
Lesson
Frequent changes of key government personnel—including program consultant specialists and project-level engineers—affected project continuity. Thus, ways to retain key government personnel for the project implementation period and beyond needed to be agreed with the government while excessive consultant staff turnover could carry more stringent contract penalties.

Project Number: 38254-033
Project Name: North Karnataka Urban Sector Investment Program, Tranche 1
Report Date:
Lesson
Cost estimation—most of the reasons provided for the cost escalation were predictable, such as (i) higher bid premiums for civil works packages relative to engineering estimates, (ii) bidder concerns over timely payments (as the implementing agencies were small municipalities), (iii) difficulties in mobilizing resources for interior towns, and (iv) more thorough review of possible price risks was required.

Project Number: 38254-033
Project Name: North Karnataka Urban Sector Investment Program, Tranche 1
Report Date:
Lesson
Fostering the local contractor industry. All civil works contractors for the project were local, and some were small companies with limited access to equipment, financial resources, and skilled and qualified staff. Due to the increasing length of PMGSY (Pradhan Mantri Gram SadhakYojana or Prime Minister's Rural Roads Program) roads to be constructed, the overall industry was overstretched in the project areas. This was a major reason for project implementation delays and became an outstanding issue in the country.

Project Number: 37066-043
Project Name: Rural Roads Sector II Investment Program (Project 3)
Report Date:
Lesson
Implementation delays. The project experienced substantial implementation delays, which led to extra project costs and postponed the project's anticipated socioeconomic benefits. The government should analyze the reasons for these and develop practical measures to prevent recurrence of the same issues, including careful scheduling of project implementation, better contract management, and on-site monitoring of contractor performance.

Project Number: 37066-043
Project Name: Rural Roads Sector II Investment Program (Project 3)
Report Date:
Lesson
The project was the third package under the investment program. It has helped the central and state governments gain more experience and identify capacity gaps and areas for improvement through various project implementation activities. Some of the lessons learned are listed below, and could be considered for ongoing and future projects in the sector.

Project Number: 37066-043
Project Name: Rural Roads Sector II Investment Program (Project 3)
Report Date:
Lesson
For future projects of a similar nature, ADB should consider requiring the implementing agencies to recruit the services of a consultant familiar with ADB procedures to assist with preparation of appraisal scope and cost estimates and the Periodic Financing Requests (PFRs) to avoid major changes in scope and the over-estimation of the cost of both ICB contracts and equity contribution, as occurred for this project. Succeeding tranches of a Multitranche Financing Facility (MFF) program should ideally be timed to incorporate works included or completed under preceding tranches.

Project Number: 32298-053
Project Name: Madhya Pradesh Power Sector Investment Program (Tranche 4)
Report Date:
Lesson
ADB's various clinics regarding environmental and social safeguards, procurement, quality control, monitoring, and reporting are essential for supporting implementing agencies that are new to ADB-financed projects.

Project Number: 32298-053
Project Name: Madhya Pradesh Power Sector Investment Program (Tranche 4)
Report Date:
Lesson
Assignment of experienced and sufficiently ranked technical managers to run the project management units (PMUs), with autonomy to plan, design, and implement the project, will lead to better project implementation.

Project Number: 32298-053
Project Name: Madhya Pradesh Power Sector Investment Program (Tranche 4)
Report Date:
Lesson
The ability to adjust the project scope to reflect actual field conditions and to apply technical optimization will improve project implementation, lower costs, and result in better outcomes;

Project Number: 32298-053
Project Name: Madhya Pradesh Power Sector Investment Program (Tranche 4)
Report Date: