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Lesson
Maintenance depots, although a small component of the project, should have been vetted more closely. It could have avoided most of the issues that subsequently caused delays and completion of 3 out of 4 depots outside of the loan effectivity period.

Project Number: 41121-033
Project Name: CAREC Transport Corridor I (Zhambyl Oblast Section) [Western Europe–Western People's Republic of China International Transit Corridor] Investment Program (Tranche 2)
Report Date:
Lesson
The project was fortunate that some of the required information (i.e., reduction of system losses) were available. Otherwise, it would have been difficult to quantify the project’s direct and indirect incremental effects. These could have also been recognized and addressed during the early review missions.

Project Number: 42085-013
Project Name: Power Transmission Enhancement Project
Report Date:
Lesson
This validation notes some shortcomings in the formulation of covenants. First, the basis for reducing CO2 emission levels was not clearly defined, and the target emission levels could have been more modest. Second, the medium-term tariff policy is more of a sector issue rather than a project issue. The increase in tariff was critical to the borrower’s compliance with the loan covenants and achievement of some of the impact indicators. However, the implementation of the medium-term tariff policy is beyond the control of the borrower.

Project Number: 42085-013
Project Name: Power Transmission Enhancement Project
Report Date:
Lesson
No new lessons

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program Tranche 1
Report Date:
Lesson
Some environmental issues surfaced during implementation, which were not considered as risks at appraisal. These include the unanticipated decrease in hydropower output due to continued drought conditions, and the unexpected geological structures and underground water during the construction of the Agdash substation. The drought conditions rendered one impact indicator to be only partly achieved. A more thorough assessment of the environmental risks during the feasibility study stage could have avoided some if not all of these issues.

Project Number: 42085-013
Project Name: Power Transmission Enhancement Project
Report Date:
Lesson
To enhance its operational and financial performance, Azerenergy is (i) streamlining its core business and transferring distribution networks assets and liabilities to Azerishiq, which will improve its financial performance and reduce administrative expenses; (ii) expanding power export to Georgia, Turkey and Russia; (iii) introducing enterprise resource planning, and enhancing internal audit and control to improve budgeting and planning functions; and (iv) accessing capital markets and diversifying financing channels (Azerenergy successfully obtained a corporate credit rating of BBB-/A-3 i

Project Number: 42085-013
Project Name: Power Transmission Enhancement Project
Report Date:
Lesson
There was some confusion in Azerenergy about the correct approach to use in calculating the debt - equity ratio and the DSCR (debt service coverage ratio). Financial ratios should be defined in loan covenants, particularly if they form part of the financial covenants of the loan. Moreover, ADB should more closely review these covenants during review missions to evaluate - and if needed initiate measures to ensure - compliance.

Project Number: 42085-013
Project Name: Power Transmission Enhancement Project
Report Date:
Lesson
The project demonstrated that Azerenergy is a capable implementing agency for power projects and that there is private sector capacity to undertake major construction projects related to augmentation and rehabilitation of power transmission and distribution networks. With proper planning, effective project monitoring mechanisms, and motivated and well-trained personnel, such projects can be successfully and expeditiously implemented.

Project Number: 42085-013
Project Name: Power Transmission Enhancement Project
Report Date:
Lesson
The overall objective of supporting SME (small and medium-sized enterprise) medium-term lending was only partially achieved. A key success factor lies in the selection of PFIs (participating financial institutions), which should be sustainable finance providers. The development of SME portfolios requires not only exceptional liquidity support at a time of liquidity squeezes, but also a strategic commitment and adequate capacity and technical expertise of PFI staff and their SME clients.

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
Up-front disbursement to the PFIs (participating financial institutions) of the entire loan amount was required by the funding mechanism used for the tranche. While this helped avoid problems in the financing of subprojects, it also limited the option to reward better-performing PFIs. In this case, the only available incentive mechanism was participation in future tranches under the MFF (multitranche financing facility).

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
Damu charged a uniform margin to all PFIs (participating financial institutions). In line with the government's intention that Damu function effectively on a self-sufficient basis, Damu should have priced its loans to PFIs according to risk. This intention was limited both by the project's design and by Damu's capacity. A minor change in the MFF (multitranche financing facility) has given Damu the flexibility to charge market-based margins to improve its sustainability and reward better-performing PFIs.

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
The project experienced disbursement delays to SME (small and medium-sized enterprise) sub-borrowers, partly due to safeguard requirements. Significant support from the project team was required and signaled the need for PFIs to adopt a minimal ESMS (environment and social management system) to be able to meet categorization requirements. It also showed the importance of continuous dialogue, awareness raising, and capacity building, crucial to making safeguards an important consideration in the credit decision-making process and to the sustainability of the results.

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
Finally, the DMF (design and monitoring framework) indicators were not appropriate to assess the overall effectiveness of ADB's intervention. The performance indicators should have been more accurate, better defined, and aligned with the stated impact and outcome. The indicators also did not measure improvements in the loan maturity for SME (small and medium-sized enterprise) loans in the PFIs' (participating financial institutions) portfolio, which was considered relevant for development impact.

Project Number: 44060-023
Project Name: Small and Medium Enterprise Investment Program - Tranche 1
Report Date:
Lesson
Traffic forecasts should be much more realistic, and reflect impacts of follow on projects on expected usage. Similarly, more effort should be taken to establish sustainable asset management systems, supported by credible sources offunding.

Project Number: 41121-023
Project Name: CAREC Transport Corridor 1 (Zhambyl Oblast Section) [Western Europe–Western People’s Republic of China International Transit Corridor] Investment Program (Project 1)
Report Date:
Lesson
The adequacy and appropriateness of project design have to be tailored to the project’s ultimate objectives and complexities. The PCR provided weak justification of the relevance of the extension and the insufficiency of indicators.

Project Number: 39662-012, 39662-022
Project Name: Prevention and Control of Avian Influenza in Asia and the Pacific
Report Date: