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Lesson
Institutional capacity development on climate change in ADB’s DMCs requires long-term engagement. Just over half of CCF resources went toward capacity development. The lack of basic climate data, technical expertise, and qualified local staff in many DMCs means that some processes, especially baseline studies, vulnerability assessments, and cost–benefit analysis of mitigation and adaptation measures, have to be adjusted to reflect realities on the ground.

Project Number: No PN
Project Name: Climate Change Fund, 2008–2019
Report Date:
Lesson
The strategic oversight of funds is enhanced when their governance structure includes some form of third-party engagement. The original Board paper outlined the governance structure of CCF and included at its apex ADB and external financing partners, whose function would be to provide strategic direction to the CCF and to meet ADB for annual consultations and to review progress, administration, and the annual work program. Since there are no external financing partners, ADB sits alone at the apex of the governance structure.

Project Number: No PN
Project Name: Climate Change Fund, 2008–2019
Report Date:
Lesson
Technical assistance with a narrow focus, immediate policy relevance, and carried out with national champions with financial and/or planning authority was key to the successful integration of climate technologies in country investment plans. Careful and realistic planning is required for the production and dissemination of outputs, since this involves multiple institutions within a given timeframe.

Project Number: No PN
Project Name: Climate Change Fund, 2008–2019
Report Date:
Lesson
Clear delineation of country activities with transparent funding allocations in cross-border RCI TA projects involving several countries helps smooth implementation and increase project success. The transaction costs in cross-border RCI TA projects tend to be high both in terms of resources and the time required to achieve agreement among stakeholders in the participating countries. It takes much longer to negotiate and agree to a common proposal in a cross-border RCI TA project than in a usual TA project.

Project Number: No PN
Project Name: Regional Cooperation and Integration Fund, 2007–2019
Report Date:
Lesson
Active engagement of national stakeholders and ADB resident missions from the outset helps improve ownership and project success. The likelihood of success is greater when an RCIF TA project is designed with genuine consultation with concerned line ministries, national agencies, the private sector (if relevant), and ADB resident missions. Active engagement of in-country stakeholders helps ADB to identify binding constraints and solutions, and to internalize implementation challenges at the TA design stage. This makes clear the roles and responsibilities of each stakeholder.

Project Number: No PN
Project Name: Regional Cooperation and Integration Fund, 2007–2019
Report Date:
Lesson
A large amount of unused loan should be avoided. Although the actual cost for the civil works sections increased by about 50%, the project still ended with unused loan proceeds of $9.65 million (Loan 2205) and SDR1.40 million (Loan 2206). These were sufficient to finance the local roads, which were estimated to cost $3.8 million. A thorough fund disbursement analysis should have been conducted during project implementation.

Project Number: 35457-013
Project Name: East–West Highway Improvement Project
Report Date:
Lesson
Monitoring indicators should be carefully selected. Some indicators for impact and outcome are not readily available nor closely linked to the project. Since data are generally not readily available in Azerbaijan, sources for evaluation indicators should be identified in more detail at appraisal. Documents such as those prepared at appraisal and project completion should include sufficient data for subsequent verification and follow-up. Specific omissions were traffic data, unit benefits, and unit costs that were needed to fully comprehend the economic analysis.

Project Number: 35457-013
Project Name: East–West Highway Improvement Project
Report Date:
Lesson
ADB-financed project sections should be carefully selected. At appraisal, two sections were intended to be financed by ADB. The Yevlakh-Ganja section involves much higher traffic than the Gazakh–Georgian border section. Thus, the Yevlakh-Ganja section brought greater benefits and greater socioeconomic impact to the project area. If ADB had financed the Yevlakh-Ganja section instead of the Gazakh–Georgian border section, the project might have been rated efficient as the recalculated EIRR would have been higher than the threshold of economic viability.

Project Number: 35457-013
Project Name: East–West Highway Improvement Project
Report Date:
Lesson
The creation of a road fund has been a key component of all three projects. It was to ensure the availability of adequate financing for operation and maintenance of project roads. To date, however, the road fund has not operated as envisaged. Because of the IMF restriction that the government should have only one consolidated central budget account, the government requested, and in 2001 was granted, an ADB waiver on the loan covenant that a special account for a road fund be created.

Project Number: 29151-013, 30311-014
Project Name: Road Rehabilitation Project, Second Road Rehabilitation Project, and Third Road Rehabilitation Project [Loans
Report Date:
Lesson
The institutional and policy reforms envisaged in the projects were complex and far-reaching and needed a longer time to come to fruition. There was no sharp focus on road asset management, which was a theme common to the three projects. Each of the projects left an unfinished agenda, which suggests that TA was spread too thinly over too many reform issues. The designs of succeeding projects did not indicate or act on the fact that some reform measures in the precursor projects were pending, at risk, and in need of ADB’s continued attention.

Project Number: 29151-013, 30311-013
Project Name: Road Rehabilitation Project, Second Road Rehabilitation Project, and Third Road Rehabilitation Project [Loans
Report Date:
Lesson
Project management must pay more attention to the scheduling of project implementation. Substantial delays experienced by all three projects should have been avoided or shortened. In contemporary infrastructure management, time overrun, like cost overrun, is a key performance indicator and affects the project’s efficiency. On-time completion is particularly important for a road rehabilitation project. The service level of a road under the rehabilitation is downgraded because the capacity of the road should be constrained during civil works.

Project Number: 29151-013, 30311-016
Project Name: Road Rehabilitation Project, Second Road Rehabilitation Project, and Third Road Rehabilitation Project [Loans
Report Date:
Lesson
ADB’s guidelines for economic analysis of projects require that a national affordability assessment be carried out for large projects. A project is considered large if it may have a substantial impact on the country’s foreign exchange revenues, expenditure, or budget resources. During the implementation of the second project, the IMF introduced a PIP ceiling in 2001 because it was concerned about the government’s fiscal sustainability. It set a rigid ceiling and thereby contributed to a significant delay in project implementation.

Project Number: 29151-013, 30311-015
Project Name: Road Rehabilitation Project, Second Road Rehabilitation Project, and Third Road Rehabilitation Project [Loans
Report Date: