Search

Displaying 1 - 2 of 2

Lesson
The provisions of funds under a program loan will generally only have an immediate impact on the overall level of economic activity if a pipeline of projects is in place when the funding becomes available. This was not the case when the ERSP (economic recovery support program) subprogram 1 loan was disbursed, but the delay in capital project construction to ensure more sustainable and beneficial projects were implemented was desirable.

Project Number: 42503-013
Project Name: Economic Recovery Support Program - Subprograms 1 and 2
Report Date:
Lesson
A major lesson stemming from the project is its inadequate preparation at appraisal, which caused problems by requiring supplementary financing, which was necessitated by exchange rate fluctuations and cost underestimation. About 55% of the increase in costs was attributable to exchange rate movements, and 45% to an underestimation of the cost. Cost estimates at appraisal were based on an exchange rate of NZ$1.00 = $0.67, whereas the revised cost estimate was based on the prevailing rate of NZ$1.00 = $0.76.

Project Number: 40287-013
Project Name: Avatiu Port Development Project
Report Date: