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Lesson
An alternative approach for the Completion of projects halted by the closure of the availability period of MFF-financed loans needs to be explored. This is especiallly important for projects with considerable stranded investments (e.g., stranded investments in the Ramazon HPP included $3 million for transmission line and $3 million for site Preparation). To continually implement the Ramazon HPP, the PNG Power Ltd.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Adequate consultations with local populations throughout the project cycle are a must especially when land ownership is ambiguous and no outstanding land compensation cases are identified.Local populations forcibly entered the two HPP project sites demanding compensation for historical events, in one of which sites, violence was used. The historical events were not identified by due diligence, which concluded that there were no land acquisition and involuntary resettlement impacts.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Early engagement with provincial governments can contribute to identifying and avoiding delays due to land acquisition issues. Based on the experience of forcible entry by local communities into two HPP sites, new projects are emphasizing the role of social safeguards and early consultation of local populations. The positive experience of engaging with the provincial government, which contributed to the eventual delivery of the Divune HPP under tranche 1, can serve as a lesson for future projects.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Delayed implementation of an associated project can seriously affect the success potential of another. This project was critically dependent on the progress of tranche 1 of the Town Electrification Investment Program (TEIP). Specifically, it was to connect 4,500 rural households to the grid being extended under the TEIP tranche 1 project. The grid itself was to be maintained by the hydropower plants being constructed under the tranche 1 project. However, as tranche 1 incurred extensive delays so did this project which took 9 years to be completed versus the planned 3 years.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Drawing from similar past project experiences, as part of due diligence, will help minimize or avoid cost underestimations. The connection costs under this project were underestimated by 250%, resulting in the project installing only 43% of its planned 4,500 household connections. More thorough due diligence should have been carried out during project preparation, with cost estimates validated by experiences under similar past projects.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Corporatized public enterprises operating on a cost-recovery basis need government funding support for infrastructure improvements. Provision of government counterpart funding should have been a condition for grant effectiveness. Instead, the executing agency, the Papua New Guinea Power Limited (PPL), partially made funds available for civil works. PPL, as a corporatized enterprise, is mandated to operate on a cost-recovery basis and did not have sufficient funding allocation.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Alternatives to grid connection should have been considered to electrify more rural poor communities. Inclusion of alternatives that are beneficial to low-usage rural customers, including solar home systems and mini grids, could have expanded project coverage and enhanced its impact.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
It is important to reassess Indicators at midterm. In addition to project review, a reassessment of the performance Indicators at midterm should have led to adjustments in the project design, including targets and implementation timeframes. These would have bolstered the project’s potential for success.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Equity issues need to be carefully considered and addressed in beneficiary selection and targeting. The potential for political influence in the selection of communities that would benefit from grid connection was identified as a risk. To mitigate this risk, independent consultants were engaged to develop the beneficiary selection criteria, which would eventually stipulate that (i) customers were to be within 250 meters of the transmission line, (ii) construction of the property had to be sound, and (iii) households must have the financial means to pay for the electricity provided.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Project preparatory and startup activities should be synchronized to avoid wastage of time and resources. The implementation of subprojects in multiple geographic locations and the need to manage the storage of equipment delivered years before installation added to the challenges in managing this project. Furthermore, consultant recruitment was not aligned to implementation progress.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Developing and implementing an asset maintenance plan, which remains important to break the wasteful build–neglect–rebuild cycle in the road transport sector of Papua New Guinea (PNG), is a pending business needing consistent follow up from development partners like ADB. Limited annual recurrent funding for operation and maintenance (O&M) was an underlying cause for developing this bridge replacement project along with capacity development for an asset management system.

Project Number: 43200-024
Project Name: Bridge Replacement for Improved Rural Access Sector Project
Report Date:
Lesson
With climate change exerting new and increasing demands on road and bridge networks, future economic analyses for transport projects should take a broader perspective in calculating economic benefits. The economic analysis for this project compared with-project and without-project scenarios to derive its economic benefits. The definition of the with-project scenario assumed time and vehicle operating cost savings from less traffic congestion and improved traffic flow. The benefits from less congestion accounted for 93% of the total net benefits.

Project Number: 43200-024
Project Name: Bridge Replacement for Improved Rural Access Sector Project
Report Date:
Lesson
Close and consistent supervision by ADB is crucial in ensuring quality road works and effective project implementation. The quality of construction supervision (including bridge design) and close, regular supervision by ADB since 2017 were critical in ensuring the quality of bridge construction and installation under this project. Despite delays and issues in financial management and procurement, the project achieved high-quality bridge construction, which contributed to project effectiveness.

Project Number: 43200-024
Project Name: Bridge Replacement for Improved Rural Access Sector Project
Report Date:
Lesson
Considering the construction costs and number of subprojects as tentative when there are significant technical unknowns that cannot be determined during the design stage will help mitigate the risks and facilitate the implementation of sector loan projects. Under this project’s preparatory technical assistance (TA), cost estimates were prepared under conditions of significant technical information gaps for all potential bridge sites.

Project Number: 43200-024
Project Name: Bridge Replacement for Improved Rural Access Sector Project
Report Date:
Lesson
Significant implementation support is required for ADB-financed projects in PNG.

Project Number: 44304-013, 44304-014, 44304-015
Project Name: Microfinance Expansion Project
Report Date: