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Lesson
There is no doubt that selecting hydro versus thermal power in Nepal provided a least-cost intervention given the country’s topography and relatively high costs of alternative energy such as diesel and oil. At feasibility study time, alternatives to the adopted design were investigated but ultimately rejected and it now appears when factoring in energy production (actual versus planned), down time due to mechanical problems in the turbines, that including considerations of operational costs into decision making process may have changed the design of the plant.

Project Number: XXXXX
Project Name: Kali Gandaki “A” Hydroelectric Project
Report Date:
Lesson
ADB should consider promoting complementary rural development initiatives in project-impacted areas with indicators of outcome derived from the impact assessment process. Agencies to be involved in implementing these initiatives should be preferably located at the district or village level. ADB should not rely on the “polluter pays” principle or on compliance mechanisms to implement its safeguards.

Project Number: XXXXX
Project Name: Kali Gandaki “A” Hydroelectric Project
Report Date:
Lesson
Consider projects with sufficient storage capacity to better address load shedding, which continues to affect economic growth and living standards. To consider such projects, greater knowledge of technical aspects, including geology, hydrology (including extreme events), and sedimentation, should be developed by financing agencies and/or developers.

Project Number: XXXXX
Project Name: Kali Gandaki “A” Hydroelectric Project
Report Date:
Lesson
Specific loan covenant must be included and strictly enforced. This lesson pertains to the whole subject of loan covenants: they should be more strictly enforced. During ADB Board of Directors’ meeting on 18 March 1996, the Board expressed a similar opinion.

Project Number: XXXXX
Project Name: Kali Gandaki “A” Hydroelectric Project
Report Date:
Lesson
Involve the Nepal Resident Mission to a greater degree so that problems may be diffused sooner, rather than relying on ADB review missions to react to them later.

Project Number: XXXXX
Project Name: Kali Gandaki “A” Hydroelectric Project
Report Date:
Lesson
Delays occurred frequently in meeting conditions of loan effectiveness, recruiting consultants, and awarding contracts.

Project Number: XXXXX
Project Name: Kali Gandaki “A” Hydroelectric Project
Report Date: