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Lesson
The appropriateness of the modality of FIL could have been more effectively assessed at appraisal, given the limited capacity of LLDF, the short-fall of effective leadership and the issues raised late in project implementation on further required LLDF areas of improvement.

Project Number: 35201-013
Project Name: Local Government Infrastructure Improvement Project
Report Date:
Lesson
More detailed bottlenecks of the port in the three functions should have been identified at appraisal. It is now difficult to review what functions were improved effectively. Balanced investments in three functions are essential for port business, but it is not clear how theproject achieved the enhancement of capacity and efficiency.

Project Number: 39431-013
Project Name: Colombo Port Expansion Project
Report Date:
Lesson
The two project components—addressing port sector policy, institutional, and regulatory issues; and preparing the technical and economic feasibility study for the SHDP— were combined into one consultancy contract. Of the total 288 person-months, 12 person-months (less than 5%) were directly allocated for JCT business reorganization and corporatization. The bulk (225 person-months) was allocated for PPP and/or engineering works or what could also be considered as PPP transactional services.

Project Number: 33019-013
Project Name: Colombo Port Efficiency and Expansion Project
Report Date:
Lesson
The project aimed at establishing the landlord status of the SLPA and entrusting the operation to the private sector to improve efficiency. This validation views that this is a right direction and many port projects in the world are taking or try to take the same approach. However, as witnessed by many port projects, it is a challenging approach.

Project Number: 39431-013
Project Name: Colombo Port Expansion Project
Report Date:
Lesson
Project leadership. The project had two nuclei for management-PCU and Project Management Unit (PMU). Although this arrangement was a risk-mitigating measure since LLDF had no project experience, future projects should have only one project director responsible for the project (e.g., PCU under the Ministry of Local Government and Provincial Councils or MLGPC was responsible for the overall project, and leadership was under the PMU director).

Project Number: 35201-013
Project Name: Local Government Infrastructure Improvement Project
Report Date:
Lesson
Requirement for financial intermediary transformation. For the Local Loans and Development Fund's (LLDF) professional operation, the project established systems, such as loan management software and operational manuals. However, the organization requires a full-time, qualified head to further drive its growth and sustainable expansion. The current part-time status of the chief executive officer will make it difficult for the organization to thrive.

Project Number: 35201-013
Project Name: Local Government Infrastructure Improvement Project
Report Date:
Lesson
Standardization. Since the project packages were numerous and relatively small, documents and processes should have been standardized as much as possible for efficiency and quality. For example, project-specific bidding document templates, as well as standard terms of references for all project committees, could have been drafted by the Project Coordination Unit (PCU) and approved by ADB at an earlier stage. Standard documents, reports, and monitoring forms to be used by the Subproject Coordination Units (SPCUs) were introduced on 20 June 2008.

Project Number: 35201-013
Project Name: Local Government Infrastructure Improvement Project
Report Date:
Lesson
Adequate support to local authorities. At the outset, it was clear a more robust support system to local authorities for design and supervision was required. Advisors at the provincial council level supported local authorities intermittently, but additional support for preparing feasibility studies, cost estimates, engineering designs, and bidding documents was required for smooth implementation. The project rectified this gap reallocating for additional design and supervision consultant (DSC) consultancy packages and increasing existing consultants' inputs.

Project Number: 35201-013
Project Name: Local Government Infrastructure Improvement Project
Report Date:
Lesson
Given the complexities of implementing ADB projects with its safeguard requirements and loan conditions, capacity development of all relevant agencies and their staff could be made a precondition to loan signing. In this project, the number of affected people and displaced families significantly increased during project implementation.These had contributed to the increased project cost and delayed implementation, and might also have had an adverse impact on the relationship between ADB and local stakeholders. TA projects had to be provided to improve project implementation performance.

Project Number: 26522-023
Project Name: Southern Transport Development Project
Report Date:
Lesson
For similar projects in the future, it may be beneficial to require reforms to be demonstrated as a project readiness criterion before project approval and implementation. Alternatively, if included in loan covenants, such institutional and regulatory reforms could be defined at a higher level - rather than as specific outputs - to allow the government more flexibility during implementation.

Project Number: 33019-013
Project Name: Colombo Port Efficiency and Expansion Project
Report Date:
Lesson
Although the completion of the TA loan was delayed by 6 years, the TA loan is still considered a success given its significant contribution in facilitating the development of the first large-scale PPP transport infrastructure project in Sri Lanka. The extensions in completion time allowed adjustments to be made to ensure successful of implementation.

Project Number: 33019-013
Project Name: Colombo Port Efficiency and Expansion Project
Report Date:
Lesson
The government had explored the possibility of setting up a special purpose vehicle to construct the breakwater using private sector financing, but this was found to be problematic for the following reasons: (i) the breakwater would not generate revenue, (ii) the construction skills required for building breakwaters and terminals are very different, (iii) revenues would only be generated from the operations of the container terminal, and (iv) it would be difficult to attract private sector investment for the breakwater.

Project Number: 33019-013
Project Name: Colombo Port Efficiency and Expansion Project
Report Date:
Lesson
To mitigate the risk of lack of private sector participation, the selection of a private sector BOT concessionaire was a loan effectiveness condition for the ensuing loan. This ensured the selection of a credible private sector party to implement the BOT concession.

Project Number: 33019-013
Project Name: Colombo Port Efficiency and Expansion Project
Report Date:
Lesson
Given that this is the first large-scale PPP project in the transport sector, the TA loan was effective in providing continuous support to government agencies, allowing them to carry out the necessary preparations for the PPP, including preparation of the procurement documents, bid evaluation, and BOT concession agreement negotiations. To minimize professional liability, the MSC was subsequently single-sourced to act as construction supervision consultants for the ensuing loan to implement the HIW works.

Project Number: 33019-013
Project Name: Colombo Port Efficiency and Expansion Project
Report Date:
Lesson
A key consideration was to draw an optimal balance of public and private sector participation. The government applied a PPP landlord port model whereby the public sector would deliver the basic breakwater infrastructure and private sector deliver two of the three container terminal facilities to be accommodated by the new breakwater. This approach has not only brought about significant efficiencies in delivery, it also resulted in tremendous financial leverage.

Project Number: 39431-013
Project Name: Colombo Port Expansion Project
Report Date: