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Lesson
Social development. The project has contributed to regional sustainable socioeconomic development, poverty reduction, and community development in the project area.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
Carbon revenue. The project was successfully registered as a clean development mechanism (CDM) project and was able to source significant amounts of revenue from the sale of carbon credits, thereby making it financially viable. This offers valuable lessons as a successful demonstration project for other clean energy developers in the region.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
Counterpart financing. The project funds comprised international funds and domestic funds. For smooth project implementation, the timely availability of counterpart funds is a key issue. For the project, the actual ADB financing was $22.0 million and the counterpart funds mobilized from stockholders and local banks was $35.9 million, all of which was provided in a timely manner that ensured smooth project implementation and early project commissioning.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
Procurement. Properly administered bidding processes were vital to obtaining cost- effective bid offers. Strict adherence to such processes, both in equipment procurement and onsite construction, facilitated savings on capital costs and ensured quality construction and equipment. The engagement of an experienced procurement agent proved to be a key factor in facilitating efficient procurement.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
The external supervising mechanism was also effective and played an important role in improving the quality of the project. The selection and hiring of competent international and national consultants ensured that the quality standards required for the project were observed.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
The successful construction of the project resulted from the strong government ownership and provides a valuable lesson on the importance of this factor in facilitating effective implementation and delivery of development results in ADB-financed projects. The Erlongshan Hydropower Company (EHC) always took the initiative in solving problems, including in the provision of design documents, timely delivery of equipment, approach to dealing with issues, and other areas. The owner's initiative guaranteed appropriate procedures and timely action on key tasks and when problems arose.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program: Erlongshan Hydropower Project
Report Date:
Lesson
The other lesson learned from the project is that the award of contracts to low price bidders can result in contract management difficulties and implementation delays. To win a contract, the bidders, who are not familiar with Fe?de?ration internationale des inge?nieurs-conseils (FIDIC) contract and contract management in ADB-funded projects, offer low prices and take it for granted that the contract amount would be increased through contract variations during implementation.

Project Number: 35337-013
Project Name: Guangxi Roads Development II Project
Report Date:
Lesson
The difficulties encountered in implementing the intercounty road were attributed to the low capacity of local counties in project implementation. The officers in the Baise Communications Bureau and Baise Highway Administration Bureau had no experience in implementing multilateral development bank-financed projects, particularly in procurement, disbursement, and project management. The lesson is that proactive efforts and timely actions should be undertaken to build the capacity of officers in local counties when they are responsible for local road components.

Project Number: 35337-013
Project Name: Guangxi Roads Development II Project
Report Date:
Lesson
Schedule for implementation and financing. The WMG should have increased the wastewater tariff to raise the required funding instead of requiring the WUDDC to borrow more from domestic banks. The WUDDC�s audited financial reports indicate that its short-term indebtedness is much higher than the typical for such an enterprise. The more timely reallocation of unused loan proceeds could have achieved full utilization of the loan proceeds including savings on interest during construction.

Project Number: 34472-013
Project Name: Wuhan Wastewater Management
Report Date:
Lesson
Land acquisition and resettlement. Because of land use changes in updated urban development programs, the Luobuzui WWTP was relocated after the issuance of the land-use permit. Resettlement impacts were consequently different from those anticipated in the resettlement plans, and identification of a new WWTP site caused implementation delays and difficulties. The change mandated the adaptation of the associated wastewater collection system, which made resettlement more difficult.

Project Number: 34472-013
Project Name: Wuhan Wastewater Management
Report Date:
Lesson
The required tariff was accurately estimated at appraisal and was made a loan covenant to assure the Wuhan Urban Drainage Development Company's (WUDDC) financial autonomy. During project implementation, the tariff was adjusted but was still insufficient to achieve the goal set for the WUDDC. The delay in the tariff increase was not only due to lack of support from relevant government agencies, but mainly because of the Wuhan municipal government's (WMG) concerns on social stabilities caused by inflation and overall prices increases in recent years.

Project Number: 34472-013
Project Name: Wuhan Wastewater Management
Report Date:
Lesson
The project consisted of several components implemented or administered by various agencies. Xi'an Municipal Urban and Rural Construction Commission (XMURCC), Xi'an Third Ring Road Construction and Development Company (XTRRCDC), and the government offices concerned made enormous efforts in coordinating and harmonizing project implementation activities, particularly in obtaining necessary government clearances during procurement and operation. A streamlined institutional arrangement will ensure a solid foundation for smooth project implementation.

Project Number: 33459-013
Project Name: Xi'an Urban Transport Project
Report Date:
Lesson
For the third ring road (TRR), there were several variations caused by design changes or differences between the engineering designs and actual field conditions, which included (i) addition of a pump station to the subgrade package due to an exceptional design change, (ii) rapid expansion of the urban areas, (iii) inaccurate preliminary design and engineering designs, (iv) emerging urban infrastructure demands during project construction.

Project Number: 33459-013
Project Name: Xi'an Urban Transport Project
Report Date:
Lesson
ADB should also provide executing agencies (EAs) with adequate training in consulting service contract management to ensure cost effective and quality consulting services.

Project Number: 33437-013
Project Name: Songhua River Flood Management Sector Project
Report Date:
Lesson
Domestic approval procedures and timelines for subprojects should be carefully reviewed and adequately factored into project schedules so that the schedules can be adhered to; and

Project Number: 33437-013
Project Name: Songhua River Flood Management Sector Project
Report Date: