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CSV
Lesson
The Shah Deniz Gas Field Expansion Project is transformational. It has expanded the development of one of the largest gas fields in the world, which will help (i) more than double gas production from the field; and (ii) increase the country’s gas production by 67% during the same period. This will help strengthen the Azerbaijani economy and create more fiscal space for economic diversification.

Project Number: 49451-002
Project Name: Shah Deniz Gas Field Expansion Project
Report Date:
Lesson
The partial credit guarantee (PCG) modality was a good choice for this transaction. It enabled ADB sovereign operations to come as close as possible to enabling the IA to obtain commercial financing for a commercially viable project in a country with a below-investment-grade rating. With a One ADB approach, it showed the way to achieve close and collaborative work between ADB’s sovereign and nonsovereign departments. Its 95% cover was important because it facilitated the raising of commercial finance.

Project Number: 49451-002
Project Name: Shah Deniz Gas Field Expansion Project
Report Date:
Lesson
ADB played an important role in country risk mitigation. ADB’s partial credit guarantee (PCG) to the Southern Gas Corridor Closed Joint-Stock Company (SGC) made possible SGC’s access to necessary private sector refinancing to meet its financial commitments to Shah Deniz Stage II (SD2) and the midstream pipelines. This reduced government dependence on the country’s dwindling oil and gas revenues held by the State Oil Fund of the Republic of Azerbaijan (SOFAZ) to meet expenditure obligations.

Project Number: 49451-002
Project Name: Shah Deniz Gas Field Expansion Project
Report Date:
Lesson
Program preparation stage benefits from upfront capacity development. Specifically, institutional capacity assessment of executing and implementing agencies at the onset is vital in planning for appropriate measures to support the agencies during the program. Technical assistance for capacity building helps complement such assessments by filling in gaps in capacity to enhance their financial, procurement, and technical capacity skills.

Project Number: 39176-013
Project Name: Road Network Development Program (Multitranche Financing Facility and Tranche 4)
Report Date:
Lesson
Exercising greater care in estimating traffic demand projections is of utmost importance. Overly optimistic forecasts of traffic volumes can stem from using outdated or arbitrary parameters and unrealistic assumptions. For instance, elasticity values of road transport demand may have changed over time. Also, the use of national GDP as a proxy for economic activities at the regional or local level could result in unrealistic traffic forecasts. Both of these could lead to an overly designed project.

Project Number: 39176-013
Project Name: Road Network Development Program (Multitranche Financing Facility and Tranche 4)
Report Date:
Lesson
Securing funding allocation for critical components during project preparation helps improve economic viability and the achievement of expected results. For example, projects 1 and 3 of the whole program required the rehabilitation of 120 km access roads to sections A, B, and C. These were key project components since most of the economic benefits were to be derived from local roads traffic. However, projects 1 and 3 failed to rehabilitate the secondary roads due to lack of firm financial sources.

Project Number: 39176-043
Project Name: Road Network Development Program (Tranche 3)
Report Date:
Lesson
A road transport program benefits from a solid engineering design undertaken during project preparatory stage. For instance, the detailed design, based on a precise analysis (e.g., technical inputs, standards specifications, and cost estimates, among other things) helps minimize potential cost overrun that often result to implementation delays. Moreover, design details could benefit from reliable traffic forecasts (i.e., use of reliable income elasticities of demand) and adequate surveys, including geological hazards.

Project Number: 39176-043
Project Name: Road Network Development Program (Tranche 3)
Report Date:
Lesson
Projects designed with certain level of flexibility allow for unexpected developments to be timely considered in project redesigning.

Project Number: 39176-023
Project Name: Road Network Development Program (Project 1)
Report Date:
Lesson
Sector road map recognized by both the country and ADB as an important element to support country and regional economic development can strategically enhance coordination among development partners.

Project Number: 39176-023
Project Name: Road Network Development Program (Project 1)
Report Date:
Lesson
Proper and timely documentation of changes during the MFF implementation can improve the quality and relevance of performance baselines and targets.

Project Number: 39176-023
Project Name: Road Network Development Program (Project 1)
Report Date:
Lesson
Use of reliable arbitrary income elasticities of demand and forecasts of gross domestic product can help improve traffic forecasting and avoid overestimating traffic volumes and expensive project designs.

Project Number: 39176-023
Project Name: Road Network Development Program (Project 1)
Report Date:
Lesson
Additional support to handle safeguard issues embedded in the project design can help mitigate the risks of project delays.

Project Number: 39176-023
Project Name: Road Network Development Program (Project 1)
Report Date:
Lesson
Inadequate coordination of construction and asset management functions could put at risk the sustainability of road sector assets.

Project Number: 39176-043
Project Name: Road Network Development Program – Tranche 3
Report Date:
Lesson
A 50:50 quality- and cost-based selection method favors the engagement of the most qualified auditors for ADB-financed projects in Azerbaijan.

Project Number: 39176-043
Project Name: Road Network Development Program – Tranche 3
Report Date:
Lesson
A comprehensive road maintenance program, with adequate and transparent funding, is vital to extending a road network’s productive life.

Project Number: 39176-043
Project Name: Road Network Development Program – Tranche 3
Report Date:
CSV