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Lesson
It is critically important to conduct capacity assessments and provide comprehensive orientation sessions for implementing agencies( (IAs) at the outset of projects. This is particularly true for new IAs largely unfamiliar with donor policies and guidelines, which in this project, created challenges in aligning activities with established guidelines that in turn led to delays and issues with discrepancies in execution.

Project Number: 46416-002
Project Name: Power Transmission Rehabilitation Project
Report Date:
Lesson
It is important to tailor impact indicators to what the project can realistically achieve in relation to wider development goals. Two project impacts selected at inception—(i) an increase in per capita electricity consumption from 2,000 kWh (2013) to 3,000 (2023), and (ii) an increase in annual electricity supply from 6,300 GWh (2013) to 15,000 (2023) cannot be linked directly to an increase in substation capacity and SCADA expansion. As such, no reliable assessment can be made on the project's accomplishment relative to these indicators.

Project Number: 46416-002
Project Name: Power Transmission Rehabilitation Project
Report Date:
Lesson
Mobilizing local project management expertise can be beneficial. The modification of the project management consulting contract to increase the inputs of national staff proved beneficial. Local and national staff who work closely with experienced international consultants as part of a team of a competitively selected consulting firm have the opportunity to acquire skills and hone them. This is good and in line with ADB's capacity development objectives in developing member countries.

Project Number: 42401-014
Project Name: Power Distribution Enhancement Investment Program (Multitranche Financing Facility)
Report Date:
Lesson
A rational tariff policy is essential for improving the financial viability of a distribution utility. Two tariff revisions (in 2016 and 2021) helped improve the financial viability of Azerishiq's distribution-strengthening projects. Although the upgrade of distribution systems is still not fully financially viable, an improving financial internal rate of return (into positive territory) illustrates the benefits of lifting tariffs toward full cost recovery.

Project Number: 42401-014
Project Name: Power Distribution Enhancement Investment Program (Multitranche Financing Facility)
Report Date:
Lesson
Insufficient up-to-date macroeconomic data on government websites, which could hinder timely and effective planning especially during crisis periods, needs to be rectified. The State Statistical Committee (SSC) has numerous macroeconomic indicators on its website. However, in most cases, very recent data are missing. International organizations such as ADB, the IMF and the World Bank release forecasts of macroeconomic indicators for upcoming years, and SSC should consider following the same approach.

Project Number: 55073-001
Project Name: COVID-19 Active Response and Expenditure Support Program
Report Date:
Lesson
Accessibility of healthcare data in Azerbaijan needs to be improved. Reports from the Ministry of Health Care are not publicly available on its website. In addition, the State Agency for Mandatory Health Insurance considers healthcare information to be highly sensitive. Accordingly, this information is not contained on its website. Information related to daily coronavirus infections and vaccinations was released publicly. It would be useful for the agency to disseminate gender, age, and region-disaggregated information to the public.

Project Number: 55073-001
Project Name: COVID-19 Active Response and Expenditure Support Program
Report Date:
Lesson
Sex-disaggregated data need to be accurate and usable for in-depth analyses to support policy development and program planning and implementation. The government has increased its focus on gender equality and has made significant progress on gender data tracking and transparency. Although there are a few publicly available national resources, they lack qualitative information.

Project Number: 55073-001
Project Name: COVID-19 Active Response and Expenditure Support Program
Report Date:
Lesson
The partial credit guarantee (PCG) modality was a good choice for this transaction. It enabled ADB sovereign operations to come as close as possible to enabling the IA to obtain commercial financing for a commercially viable project in a country with a below-investment-grade rating. With a One ADB approach, it showed the way to achieve close and collaborative work between ADB’s sovereign and nonsovereign departments. Its 95% cover was important because it facilitated the raising of commercial finance.

Project Number: 49451-002
Project Name: Shah Deniz Gas Field Expansion Project
Report Date:
Lesson
ADB played an important role in country risk mitigation. ADB’s partial credit guarantee (PCG) to the Southern Gas Corridor Closed Joint-Stock Company (SGC) made possible SGC’s access to necessary private sector refinancing to meet its financial commitments to Shah Deniz Stage II (SD2) and the midstream pipelines. This reduced government dependence on the country’s dwindling oil and gas revenues held by the State Oil Fund of the Republic of Azerbaijan (SOFAZ) to meet expenditure obligations.

Project Number: 49451-002
Project Name: Shah Deniz Gas Field Expansion Project
Report Date:
Lesson
The Shah Deniz Gas Field Expansion Project is transformational. It has expanded the development of one of the largest gas fields in the world, which will help (i) more than double gas production from the field; and (ii) increase the country’s gas production by 67% during the same period. This will help strengthen the Azerbaijani economy and create more fiscal space for economic diversification.

Project Number: 49451-002
Project Name: Shah Deniz Gas Field Expansion Project
Report Date:
Lesson
The absence of a programmatic approach in policy-based loans (PBLs) can put at risk the sustainability of reforms. This program was designed as a stand-alone, single-tranche, PBL and effectively achieved its objective because of strong ownership by and well-coordinated efforts of the authorities and ADB staff. However, the lack of a programmatic approach posed a high risk to the sustainability of the reforms made.

Project Number: 53248-001
Project Name: Second Public Efficiency and Financial Markets Program
Report Date:
Lesson
Technical assistance (TA) is required to develop the capacity of institutions to meaningfully engage with ADB on a longer-term basis. ADB’s continuous engagement with the country, during and after a PBL, is essential. It allows ADB to keep a foothold in the country, learn about the reforms being assisted by other development partners, remain updated about emerging needs and issues, support sustainability, and help in processing new programs.

Project Number: 53248-001
Project Name: Second Public Efficiency and Financial Markets Program
Report Date:
Lesson
Dissemination of achievements made under the program is essential for knowledge-sharing and to strengthen ADB’s image as an effective development partner, The program supported the implementation of key reforms that were relevant and highly desired by the government to accelerate the country's economic growth. It is important to communicate the achievements made, with the general public and development partners, to improve knowledge and raise awareness. Communication and public awareness are also essential to enhance ADB’s status and credibility as an effective development partner.

Project Number: 53248-001
Project Name: Second Public Efficiency and Financial Markets Program
Report Date:
Lesson
Strong alignment with government strategies and priorities leads to strong government ownership and participation in program implementation. The reforms adopted under this program were essential to improve fiscal credibility and strengthen the capital market in Armenia. They were fully aligned with the strategies of the government and ADB. Because of this strong strategic alignment, government ownership of the program remained strong and all implementing agencies actively coordinated with ADB to achieve the reform agenda.

Project Number: 53248-001
Project Name: Second Public Efficiency and Financial Markets Program
Report Date:
Lesson
TA has a unique value in engaging stakeholders in a comprehensive analysis of sector problems and formulating a realistic reform agenda, as well as in sustaining the reform process even after program completion.

Project Number: 51129-002
Project Name: Human Development Enhancement Program
Report Date: