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Lesson
Importance of a strong commitment and ownership of the government to a reform and capacity building program such as the SMESDP.

Project Number: 33246-013
Project Name: Small and Medium Enterprise Sector Development Program
Report Date:
Lesson
Close examination and assessment of real capacity is necessary in analyzing economic and financial benefits for private sector power plant projects supported by ADB. Nameplate capacity needs to be considered in the context of a plant’s capacity factor. No power plant runs 100% of the time, and power plants, like that of AKL, that run on auto diesel fuel will need to shut down routinely for scheduled maintenance. Routine maintenance combined with unscheduled shutdowns lower actual net capacity.

Project Number: 34912-014
Project Name: AES Kelanitissa Power Project in Sri Lanka
Report Date:
Lesson
Risk of lost revenues due to delayed commissioning and unplanned shutdown associated with mechanical failures can be mitigated by requiring expert power plant developers sponsored by ADB to provide more oversight and guidance to construction contractors.

Project Number: 34912-014
Project Name: AES Kelanitissa Power Project in Sri Lanka
Report Date:
Lesson
It is prudent for ADB to consider alternative fuels when appraising the cost and benefits of oil-fired generation plants. Alternative fuels consist of renewable energy sources and thermal fuels, including clean coal options. Private sector support to the power sector is optimized with a comparative analysis of real fuel options.

Project Number: 34912-014
Project Name: AES Kelanitissa Power Project in Sri Lanka
Report Date:
Lesson
Changing the scope of a project during implementation as excessively as in this case cannot be considered as a good practice, even when in response to a flood.

Project Number: 31282-013
Project Name: Southern Province Rural Economic Advancement Project
Report Date:
Lesson
Experienced foreign investors in power generation have access to private sector technical insurance that sovereign entities may not otherwise have. This is important when technical problems arise that cause major shutdown of operations, as was the case of AKL due to a 2004 fire. Private sector insurance enables unforeseen technical problems to be fixed along with compensation to the insured for revenue loss due to the incident. Foreign investors can leverage important insurance that is often difficult for sovereign entities to acquire.

Project Number: 34912-014
Project Name: AES Kelanitissa Power Project in Sri Lanka
Report Date:
Lesson
Timely project completion report (PCR) is important for maintaining policy dialogue and assessing the need for follow-up actions and future assistance. Project Administration Instruction No. 6.07A recommends that the PCR be prepared between 1-2 years after project completion. In the case of Rural Financial Sector Development Program (RFSDP) program loan, the second (and final) tranche was released in February 2006. The bulk of activities under Project 1 and Project 2 were completed in 2008.

Project Number: 34320-013
Project Name: Rural Finance Sector Development Program
Report Date:
Lesson
The program loan tranches were front-loaded, with $35 million of the total program amount of $50 million programmed for the first two tranches. The first two tranches were largely preparatory measures and intermediate steps. Had the program been back-loaded with relatively larger amounts allocated to the third and fourth tranches, it is possible that the authorities would have been more inclined to implement some of the more difficult reform measures.

Project Number: 34320-013
Project Name: Rural Finance Sector Development Program
Report Date:
Lesson
Overly ambitious and complex projects are less likely to be successful. The Program objectives had a strong rationale and the design was technically sound. However, in view of the weak implementation capacity of the executing agency and the implementing agencies, the Program would likely have yielded better results with a more focused and prioritized set of policy actions and project activities. Moreover, the Rural Financial Sector Development Program was approved only three months prior to the April 2004 parliamentary election.

Project Number: 34320-013
Project Name: Rural Finance Sector Development Program
Report Date:
Lesson
At appraisal, the difficulty of implementing the Reform Program could have been foreseen and special measures for monitoring and supervision should have been proposed in the RRP, and specific milestone requirements to check the progress of the Reform Program should have been set.

Project Number: 31280-013
Project Name: Road Sector Development Project (1986-SRI[SF])
Report Date:
Lesson
The requirements, key issues, terms of reference, selection criteria including qualification of consultants, implementation structure, and understanding and ownership of the TA by the implementing agencies should have been described carefully according to the requirements of technical assistance. If poor performance was observed, prompt action could have been required to minimize the loss of time and funds. The RDA also should have developed a well-maintained performance recording system.

Project Number: 31280-013
Project Name: Road Sector Development Project (1986-SRI[SF])
Report Date:
Lesson
More careful monitoring and supervision should have been required to review the progress of the program, to understand its key issues, and to propose alternative approaches where necessary. The design of the Reform Program with its numerous components was complex, so efforts in monitoring and guidance should have been made during project implementation.

Project Number: 31280-013
Project Name: Road Sector Development Project (1986-SRI[SF])
Report Date:
Lesson
An appropriate method for economic justification should be carefully examined at appraisal. The economic analysis should have used observed data instead of the desktop estimation, and should be assessed based on sound assumptions.

Project Number: 31280-013
Project Name: Road Sector Development Project (1986-SRI[SF])
Report Date:
Lesson
Necessary data should be collected for the project roads at appraisal, and the selection methodology should have been a sound logical and scientific tool to shield it from political pressure.

Project Number: 31280-013
Project Name: Road Sector Development Project (1986-SRI[SF])
Report Date:
Lesson
The project involved the establishment of an entirely new platform of learning, with investments in hardware and software and including creation of partnerships with institutions that were to develop their course content into online distance learning format. This constituted a major step toward a new concept of learning. There is a risk that the system will eventually collapse unless it is put on a sound business and strategic footing in the near future.

Project Number: 33251-013
Project Name: Distance Education Modernization Project
Report Date: