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Lesson
Delegation to resident missions needs to carefully consider project complexity and expertise in the resident mission and ensure a smooth handover from processing to Implementation by having the project officer during processing remain as project officer during Implementation, until at least the award of the first major procurement package. During Implementation, the Sector Group needs to retain ongoing quality assurance responsibility and conduct annual audits. Continuity and adequate oversight on the project management unit also needs to be ensured throughout project Implementation.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
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
Project management units and implementing agencies need to verify the Completion and functionality of all project aspects before authorizing final payments. This is to ensure that all defects and deficiencies are addressed before final payments are made. For example, a key deficiency under this program was the absence of an operation and maintenance plan with confirmed budget allocations for all projects, a deficiency that meant non compliance with a covenant.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
ADB and its consultants should review the historical performances and previous challenges of similar projects when preparing implementation schedules at approval. The Tranche 1 project included a highly optimistic implementation schedule. The Tranche 2 project was also overly optimistic, although to a lesser extent. Several challenges in procurement, land acquisition, and construction led to significant delays.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
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
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
Border housing compliance with WSP building and electrical installation standards as well as the apparent substandard quality of this housing highlights the importance of the quality of the construction supervision consultants and BDA’s ability to monitor and manage contracts.

Project Number: 42135-013
Project Name: Pilot Border Trade and Investment Development Project
Report Date:
Lesson
As the project aimed to achieve development impacts in WSP, BDA and PMO should have had a greater presence in WSP, and a greater involvement with the WSPA as the project was delivered. The location of BDA headquarters in Port Moresby may have limited the rate of development of WSP into a dynamic growth center for PNG.

Project Number: 42135-013
Project Name: Pilot Border Trade and Investment Development Project
Report Date:
Lesson
The use of CSTB procurement system and associated NEC approval process, while somewhat improved from past ADB projects, involves inevitable delays in procurement and should, where possible, be avoided through direct procurement by BDA, even if it requires close ADB training and supervision.

Project Number: 42135-013
Project Name: Pilot Border Trade and Investment Development Project
Report Date:
Lesson
The government’s inconsistent support to the law enforcement agents in the province, ineffective project grievance redress mechanisms, and lack off effective coordination and consultations within the subnational levels of governments and within BDA to address environment and social issues resulted in landowners allegedly acting unlawfully and harming a project team member.

Project Number: 42135-013
Project Name: Pilot Border Trade and Investment Development Project
Report Date:
Lesson
An important project impact relied upon the government to implement specific investment policies through DCI, as well as a telecommunication solution for WSP to provide an environment that would enable WSP’s development into a dynamic growth-center for PNG. Inactivity on these commitments substantially delayed and lost impetus in the achievement of potential project benefits.

Project Number: 42135-013
Project Name: Pilot Border Trade and Investment Development Project
Report Date: