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Lesson
Continued timely adjustments in tariffs could make projects financially viable. The project financial reevaluation at completion concluded that the project was financially viable subject to continued timely adjustments in tariff. This has legal basis as Decree 124/2011/ND-CP allows WSCs to propose water tariffs in a tariff roadmap, which provincial governments approve. The tariff roadmaps of the participating WSCs included adjustments every two years. However, only one adjustment was made in 2019–2022 due to the impacts of COVID-19.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Careful selection of competent experts and close consultant monitoring and coordination is essential to ensure the quality of TA outputs. As the two consultants engaged by this TA needed to work on separate topics to deliver one report, close monitoring and coordination by the ADB team proved critical to the timely attainment of consultant deliverables. Regular meetings were conducted to oversee progress, give guidance, avoid preventive abortive work, and deliver quality outputs.

Project Number: 55319-001
Project Name: Southeast Asia Aviation: COVID-19 Impact and Short-term Strategy
Report Date:
Lesson
Government budget regulations, particularly on official development assistance (ODA), the main source of ADB funding, need to be fully considered during appraisal as these could cause disbursement delays. In 2015, the allocation of ODA funds to project Implementation units was late and in 2016 no funds were allocated. This meant delays in project Implementation.

Project Number: 46293-005
Project Name: Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project
Report Date:
Lesson
The need for the cancelation of loan savings would be avoided by using realistic cost estimates during project preparation, as pointed out in the project completion report, is an appropriate lesson. However, this validation notes that the actual project cost was 28% lower than appraisal estimates, but the reduction in total ADB loan was 45%, i.e., from an estimate of $463 million to $253 million at program closing. The lower program cost reflected high-cost estimates, but higher counterpart funding was the bigger factor in the cancelation of the loan savings.

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program (Multitranche Financing Facility and Tranche 3)
Report Date:
Lesson
Establishment of professional project administration divisions and retention of experienced and trained government officials in these units can help mitigate the risk of project delays. Project implementation experienced substantial delays despite the preparation of time-bound action plans, project completion was still delayed by 60 months for Lao PDR and 48 months for Viet Nam. The recurrence of this experience in this project may be better addressed by putting in place professional project administration divisions, staffed by trained and experienced personnel.

Project Number: 41444-013
Project Name: Second Northern Greater Mekong Subregion Transport Network Improvement Project
Report Date:
Lesson
Reduced counterpart funding and increased use of loan proceeds will facilitate timely implementation and project closure. This project was designed with substantial counterpart funding from governments. While demonstrating strong ownership, this affected implementation as the governments were unable to disburse the budget on time. Besides reducing the requirement for counterpart funding, sufficient documentation and incorporation of counterpart fund releases in the audited annual financial statements can help facilitate the financial closing of future projects.

Project Number: 41444-013
Project Name: Second Northern Greater Mekong Subregion Transport Network Improvement Project
Report Date:
Lesson
Incorporation into the project design of cost-sharing arrangements with irrigation water users broadens the scope for promoting project sustainability and improving related approaches and practices. In the Lao PDR, forming a water users’ group and assigning it the responsibility of collecting water charges is an important step toward project sustainability. However, this was not fully integrated into the project design and no relevant output Indicators were included in the design and monitoring framework.

Project Number: 40190-023
Project Name: Greater Mekong Subregion Flood and Drought Risk Management and Mitigation Project
Report Date:
Lesson
Overestimated project costs lead to unutilized loan amounts and wastage of commitment fees. At appraisal, the investment program was estimated to cost $920.0 million, comprising ADB loans of $730.0 million (79.4%) and government contributions of $190.0 million (20.6%). At completion, the program cost totaled $669.3 million, of which ADB provided $253.8 million (37.9%).

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program
Report Date:
Lesson
Timely planning of project extensions and a more realistic extension period will improve loan utilization. Undisbursed amounts under this project resulted largely from new government policies as well as contextual and operational factors. Various activities were canceled because of government restrictions on the use of loan proceeds for soft components (e.g., training, workshops, etc). Non-disbursements were also associated with other policy modifications, such as restrictions on the recruitment of international consultants. But contextual and operational factors also played a role.

Project Number: 44265-013
Project Name: Second Health Care in the Central Highlands Project
Report Date:
Lesson
Foreseeable delays in procurement and disbursements may be overcome by (i) including project readiness measures such as advance actions; and (ii) ensuring dedicated, full-time) and qualified staff with relevant experience for key project management positions. Amounting to 1.5 years in this project, these delays were attributable to the complexity of procedures in Viet Nam, the COVID-19 pandemic, and the large number of project facilities involved.

Project Number: 44265-013
Project Name: Second Health Care in the Central Highlands Project
Report Date:
Lesson
Late allocation of provincial counterpart funds is a persistent issue requiring attention from the central government of Viet Nam. Late allocation of counterpart funding slowed down implementation progress and exposed subprojects to additional cost increases through inflation. The central government should consider providing incentives for timely provincial allocations. It could also explore alternative funding arrangements to address the issue.

Project Number: 37097-013
Project Name: Integrated Rural Development Sector Project in the Central Provinces
Report Date: