Search

Displaying 1 - 15 of 27

Lesson
More innovative cost sharing arrangements should be developed to ensure that very poor local government units (which find it difficult to provide counterpart equity) are not hindered from participating in programs similar to SEDIP.

Project Number: 25182-013
Project Name: Secondary Education Development and Improvement Project
Report Date:
Lesson
The financial impact of projects on local governments needs to be carefully assessed. It seems clear in retrospect that the province could never have been expected to meet the financial requirements of the project—to invest $12 million of its own resources, and to pay high interest on $14 million borrowed from Mindanao Development Fund. The lesson from this is that, unless viable options can be found for funding local investments, a project should not proceed.

Project Number: 24076
Project Name: Bukidnon Integrated Area Development Project
Report Date:
Lesson
The right-of-way issue should have been resolved earlier. Land acquisition by the government in the Philippines has been difficult causing delays. Although this was raised at the Board meeting considering the project, not enough attention was given to the potential problems until it was too late.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
ADB could have done a more thorough test of the forecasts‘ sensitivity to changes in the basic variables, including tariff price elasticity, lower-than-expected economic growth, and higher gasoline prices. The fact that traffic volumes have been scarcely half those projected by technical consultants at appraisal has meant lower revenues and a less favorable FIRR. While it is understood that a range of projections were made and the lower ones were used, they nevertheless proved to be overly optimistic.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
A more independent regulatory body is needed to balance the interests of all stakeholders—the government, toll road operators, road users, communities, and business. TRB lacks a clear vision for the sector, and because of its human and financial resource limitations adopts a passive rather than proactive role. This could be achieved by transforming TRB through the appointment of an independent board with a clear majority of members and the chairperson coming from the private sector. Independent funding could be provided through a direct levy on toll fees and the toll road operators.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
At appraisal there should have been a design monitoring framework which would have identified the objectives and targets. The project was designed to enhance economic development of central and northern Luzon, but no clear or measurable objectives were set at the outset. While economic growth has occurred in this region—3.4% per annum overall—it is not possible to quantify the extent that rehabilitation of an already existing toll road has contributed.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
Regulation of the toll road sector under TRB remains weak. TRB was established in 1977 to regulate expressways and toll rates while increasing private sector investment in infrastructure projects. It lacks capacity and resources relative to its mandate, however, and in practice only monitors operations, maintenance, and the adjustment of toll rates. TRB lacks independence, remaining under the control of the government. Its executive director is appointed by the president, and all but one member of its board are government officials.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
While the loan conversion from dollars to pesos was completed successfully, the price to MNTC of reducing its foreign exchange risk was quite high. Although there are potential benefits to the consumers from removal of the forex factor from the toll rate adjustment formula, the peso has since appreciated further against the dollar and the financial benefits of the conversion to MNTC are mixed. Regarding the issue of equity participation, ADB was seen to be more conservative and slow in its process than was the private sector.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
Stronger due diligence on the part of ADB would have identified risk earlier and reduced project delays. The inability of PNCC to raise funds for the project, too, should have been anticipated at a time when most government corporations were strapped for cash and that PNCC had few alternative revenue sources apart from government subsidies. It should have been foreseen that PNCC would need to reduce its exposure in the project.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
Adjustments during implementation should have been made in the growth targets tomake them more realistic and aligned with developments in the overall environment.

Project Number: 36419-013
Project Name: Small and Medium Enterprise Development Support Project
Report Date:
Lesson
A realistic evaluation of institutional capacities is needed during project preparation for the tasks expected of them. This is particularly important with the proposed downsizing of the NIA that is currently taking place.

Project Number: 27245-013
Project Name: Southern Philippines Irrigation Sector Project
Report Date:
Lesson
Further capacity building must be undertaken in procurement and bid evaluation if provincial and regional procurement is to be continued in similar future projects. While there is a certain autonomy in regional centers, the central government and ADB should adopt a stronger procurement monitoring role, if only to prevent repetition of previous mistakes.

Project Number: 27245-013
Project Name: Southern Philippines Irrigation Sector Project
Report Date:
Lesson
The role of local government units must be understood, given their limited resources and their primary function as a political institution. While they remain an important inclusion from a lobbying perspective, they cannot adopt roles beyond the level for which they have human and financial resource capacity.

Project Number: 27245-013
Project Name: Southern Philippines Irrigation Sector Project
Report Date:
Lesson
Quality subproject feasibility and detailed engineering designs, based on solid geological and topographic surveys, are necessary prerequisites to successful irrigation and road subprojects. Without these, unachievable targets will be established that cause subprojects to be assessed less successful.

Project Number: 27245-013
Project Name: Southern Philippines Irrigation Sector Project
Report Date:
Lesson
Based on this performance evaluation there are three lessons. First, efficient public financial management (PFM) systems are important to ensure timely disbursements. While the Philippines has made progress in PFM reform, it clearly needs to do much more to address the low disbursement rates typical in the first semester of each year. Measures implemented in 2009 helped to improve disbursements. The government is addressing these and in February 2011 announced its PFM roadmap.

Project Number: 43300-013
Project Name: Countercyclical Support
Report Date: