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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
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
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
A thorough funds disbursement analysis should have been conducted during project implementation to determinesufficiency or insufficiency of funds from all sources to finance all project components. While the actual cost for theproject civil works sections increased by 50%, the project still ended with unutilized loan proceeds of $9.65 million (Loan 2205) and $1.40 million (Loan 2206 [Special Funds]). These were more than sufficient to continue implementing the local roads component estimated to cost $3.8 million, of which $3.0 million was to be funded from the loan.

Project Number: 35457-013
Project Name: East–West Highway Improvement Project
Report Date:
Lesson
No new lessons.

Project Number: 35087-013
Project Name: Urban Water Supply and Sanitation Project
Report Date:
Lesson
More robust due diligence is needed during project design and formulation to enable the closest possible cost estimates and to set aside enough resources to cover contingencies. This can save considerable time. The scope of the ADB-financed East-West Highway Improvement Project, approved in 2005, included two sections of the east-west highway

Project Number: 39176-033
Project Name: Road Network Development Program (Project 2)
Report Date:
Lesson
The project experienced start-up delays, because the contractor mobilized slowly and was unable to tie up with suitable local subcontractors. The contractor was also unfamiliar with conditions in the country at the start, which caused implementation delays. The subcontractors contributed significantly, and without them it would have been difficult for the contractor to successfully complete the project.

Project Number: 39176-033
Project Name: Road Network Development Program (Project 2)
Report Date:
Lesson
The project constructed a two-lane road. Subsequent to the start of the project, the government decided to widen the road to four lanes by constructing another two-lane road alongside the project road. The widening works are scheduled for completion by December 2013. The ADB-financed two-lane road was completed in December 2012.

Project Number: 39176-033
Project Name: Road Network Development Program (Project 2)
Report Date:
Lesson
Realistic estimation of project and contract duration is important. Inclement weather seriously hampered physical progress in project implementation, especially from August 2011 to February 2012. The contractor had difficulty coping with it, which significantly delayed the completion of works. A more realistic timeframe for implementing a road project should be formulated allowing for unpredictable local weather conditions and other contingencies so that resources can be deployed effectively and efficiently.

Project Number: 39176-033
Project Name: Road Network Development Program (Project 2)
Report Date: