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Lesson
The multitranche financing facility (MFF) mode was mainstreamed into ADB's financial operations in July 2008. (The MFF was introduced in August 2005.) TA and investment loans can be combined in an MFF as separate tranches. However, use of an MFF should not be recommended for large and complex projects such as the project highway because there is high risk of project cost overrun. The estimated total cost increased from $620 million at the TA loan appraisal to $1,216 million at the investment loan appraisal.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
The employment of an independent design appraisal consultant has been expedient and has avoided delays. Consideration should be given to the inclusion of an independent appraisal consultant in future large and complex design preparation projects with an underresourced implementing agency.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
More attention should be given to O&M planning and management. A realistic and long-term perspective is needed in addressing O&M issues. Good organization, well-planned budgets, sound financial and reporting systems, and liaison with beneficiaries are important in planning for O&M. Specific covenants requiring detailed functional O&M mechanisms and implementation arrangements should be included in future project loan agreements.

Project Number: 29529
Project Name: Rural Infrastructure Sector Project [Loan 1564-VIE(SF)]
Report Date:
Lesson
Advance recruitment of consultants should be undertaken in development projects to facilitate start-up operations and establish the necessary project management systems. This is to avoid unnecessary delays in implementation particularly if there is training to be conducted to equip project staff with the appropriate project implementation skills.

Project Number: 29532
Project Name: Rural Infrastructure Sector Project [Loan 1564-VIE(SF)]
Report Date:
Lesson
Covering a vast number of provinces spread over almost the entire country may not be an effective way of maximizing the use of resources. Not only were the resources spread thinly over the 23 provinces, but the implementing staff also experienced considerable strains on communication and transportation during project supervision because of the remoteness of many of the subprojects. A focused geographic approach would have provided flexibility for designing better social and economic benefits for the beneficiaries.

Project Number: 29531
Project Name: Rural Infrastructure Sector Project [Loan 1564-VIE(SF)]
Report Date:
Lesson
Involving beneficiaries in deciding counterpart funding decisions would be valuable in ensuring ownership of infrastructure projects, particularly when community labor and cost contribution have to be enforced for lack of provincial funds to cover maintenance. The participation of beneficiaries throughout the project cycle should be required, particularly since they will be the end users of the project. Project preparations should include beneficiary participation in O&M planning and budgeting, and the training of beneficiaries in O&M.

Project Number: 29530
Project Name: Rural Infrastructure Sector Project [Loan 1564-VIE(SF)]
Report Date: