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Lesson
The project has highlighted the need to provide ongoing operation and maintenance (O&M) capacity building support and to monitor actual O&M implementation after loan closure. Future projects should incorporate provision for executing agencies to establish O&M technical support teams conducting biannual infrastructure O&M inspections and providing ongoing training to LGUs on O&M practices after project completion.

Project Number: 30552-013
Project Name: Infrastructure for Rural Productivity Enhancement Sector Project
Report Date:
Lesson
Slow funds liquidation results in inadequate funds availability, slowing implementation. Future projects should ensure that seamless, efficient, and simple funds disbursement processes are established that satisfy appropriate procurement and financial audit requirements. Future projects should consider (i) direct payment of contractors by ADB; (ii) making imprest account levels appropriate to the funds flows anticipated; and (iii) simplified disbursement procedures and documentation requirements, preferably through the executing agency.

Project Number: 30552-013
Project Name: Infrastructure for Rural Productivity Enhancement Sector Project
Report Date:
Lesson
Placing support teams, including consultants, in the regions and zonal project offices is critical to providing LGUs guidance and technical assistance when and where needed. Careful consideration is required regarding the relative mix between executing agency personnel and consultants to ensure the executing agencies are adequately resourced with the appropriate technical skills so as to retain project experience within the agency after a project is completed.

Project Number: 30552-013
Project Name: Infrastructure for Rural Productivity Enhancement Sector Project
Report Date:
Lesson
The project demonstrated that successful local government unit (LGU)-led, demand-driven, decentralized implementation is a viable delivery mechanism for the planning, development, and management of rural infrastructure. Examination of the reasons for the delayed start yield valuable lessons for future projects.

Project Number: 30552-013
Project Name: Infrastructure for Rural Productivity Enhancement Sector Project
Report Date:
Lesson
The external monitoring group may have to be on board early on the land acquisition and resettlement plan (LARP) implementation. This is to allow sufficient time for the group doing the electricity market to understand the project and the LARP. Due to the highly specialized task of external monitoring group, it is true that not many groups such as those in the academe or non-government organization have actual experience doing the task.

Project Number: 36018-013
Project Name: Electricity Market and Transmission Development Project
Report Date:
Lesson
While the project as stated in the land acquisition and resettlement plan recognizes the importance of active participation of the different local stakeholders, the municipal, and barangay local government units (LGUs) have largely been credited only on organizing consultation meetings between Transco and the affected people. LGUs could have been likewise tapped as information disseminators and the ?first line of troubleshooters? in instances of grievance.

Project Number: 36018-013
Project Name: Electricity Market and Transmission Development Project
Report Date:
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
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
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: