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Lesson
The adequacy of security arrangements at project sites in Afghanistan determines the pace at which projects can be implemented. Ultimately, protecting construction crews and facilities and equipment storage areas will be feasible only if an effective grassroots outreach program is mounted to win the support and goodwill of communities who live near construction sites and secure the collaboration of local government officials and village leaders.

Project Number: 37075-013
Project Name: Andkhoy-Qaisar Road Project
Report Date:
Lesson
The annual hiatus in processing withdrawal applications by Ministry of Finance (MOF) for the 3-month budget approval period (end of the financial year on 21 March until the end of June) causes cash flow difficulties for the contractors and consultants, as this period coincides with the peak construction season. A streamlined coordination among MPW, MOF, and ADB should be developed to minimize the adverse impact on project progress and avoid interest claims on late payments.

Project Number: 37075-013
Project Name: Andkhoy-Qaisar Road Project
Report Date:
Lesson
The design-build contract adopted for this project is not a turnkey type of contract in which prospective bidders will need to conduct significant site reconnaissance in order to prepare competitive bids, but a measurement contract based on financial unit rates with design carried out by the contractor as the road is constructed. This type of contract was intended to overcome local design capacity constraints and expedite commencement of works.

Project Number: 37075-013
Project Name: Andkhoy-Qaisar Road Project
Report Date:
Lesson
More effort should be made to gain compliance by the borrower and MPW with loan covenants, which helps strengthen the government's project ownership. Although difficult postwar conditions exist, ADB should use appropriate means including suspension of disbursements and cancellation of the loan if necessary and in the best interest of the project.

Project Number: 37075-013
Project Name: Andkhoy-Qaisar Road Project
Report Date:
Lesson
Afghanistan is a country with a long history of war, in which the usual rules do not work well in achieving development impacts. Appropriate adjustments, such as allowing procurement of bitumen from nonmember countries of ADB, proved to be beneficial for maximizing the project's development impact and economic efficiency.

Project Number: 37075-013
Project Name: Andkhoy-Qaisar Road Project
Report Date:
Lesson
The rapid turnover of the MPW staff, frequent changes in project officers and mission leaders, and the transfer of project administration from one ADB department to another were counterproductive.

Project Number: 37075-013
Project Name: Andkhoy-Qaisar Road Project
Report Date:
Lesson
Frequent replacement of the supervision consultants' key staff members should be avoided or penalized. Projects that suffer from key staffing issues usually experience compounding delaying effects and cost overruns during implementation.

Project Number: 37075-013
Project Name: Andkhoy-Qaisar Road Project
Report Date:
Lesson
Consultant quality at entrance is critical, as top international consultants and contractors are less interested in projects in Afghanistan. Emphasis during selection should be on quality and past performance record of consultants, as this can easily result in both cost and time savings, given the prevalence of price escalation, time extensions, and cost overruns for projects in Afghanistan.

Project Number: 37075-013
Project Name: Andkhoy-Qaisar Road Project
Report Date:
Lesson
It is important to conduct a sound capacity assessment of Ministry of Public Works (MPW) and adequate analysis of the local political context in the early stages of the project. Driven by the project's emergency nature, overemphasis on time savings during project preparation unfortunately resulted in delays coupled with cost overruns and implementation problems at a later stage. It is also highly desirable that emergency projects implemented in complex environments receive more frequent and comprehensive monitoring and supervision.

Project Number: 37075-013
Project Name: Andkhoy-Qaisar Road 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
The status of completion should be carefully examined before loan closure. In the event that there are outstanding activities, the contractual arrangements for completion should be carefully defined and committed before loan closure. It is a risk to assume that completion can take place under another loan with an unknown time frame and be dependent on a third-party consultant. Preparation of detailed design and bidding documents for the equipment packages should not have been included in the scope of the TA loan.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
In a fixed-fee services contract, inclusion of the value of the project contingency in calculation of the advanced payment should be carefully explained in the request for proposals. Similarly, the regulations applied to value-added tax (VAT) duties on national subconsultancy services should be clearly stated.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
In any project implementation, it is much more efficient to identify and correct problems in the initial part of the project period. The frequency of ADB review missions in the initial phase of the project achieved this efficiency and did a great deal to prevent further delays. The lesson is to have a higher frequency of review missions in the early phase of project implementation.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
Senior staff of both the Vietnam Expressway Corporation (VEC) and Ministry of Transport (MOT) had significant experience in implementing large- scale road development projects. Both agencies had sufficient capacity to carry out the project, and the capacity was further enhanced through the project. The delays in resettlement planning were mainly caused by low capacity of project provinces and districts but not of the executing or implementing agencies.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
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: