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Lesson
Thorough analysis of beneficiary preference, demand, and willingness to pay has to be conducted to ensure that preconceived notions of demand are verified, validated, and confirmed on the ground from the beneficiaries themselves. Very often project proponents from central government agencies have a different concept of needs and priorities from those at the field or local level. Local involvement in project conceptualization ensures greater project success, as there would be better ownership of project components and more accurate identification of needs of intended beneficiaries.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
No new lessons

Project Number: 31324-013
Project Name: State Power Sector Reform Project
Report Date:
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
No new lessons

Project Number: 38458-013
Project Name: Infrastructure Development
Report Date:
Lesson
Where a large capacity-building component precedes project preparation, reviews by ADB should be more frequent. The consultants should also produce verifiable and detailed reports on progress and staff training. This will allow a more timely response to problems by both ADB and the Borrower.

Project Number: 38458-013
Project Name: Infrastructure Development
Report Date:
Lesson
When projects cross ministerial boundaries�as was the case with the national and provincial stakeholders in the water resources sector�there must be a clear commitment at the design stage to avoid disputes. Otherwise, such projects should be avoided altogether.

Project Number: 38458-013
Project Name: Infrastructure Development
Report Date:
Lesson
While the project-preparation facilities made sense, the TA loan itself was spread too thinly. The funds were dispersed across three sectors, and were handled by numerous agencies managing subprojects in many locations. This made coordination a challenge right from the outset, especially given the absence of an experienced and capable local coordination team. It did not work. In retrospect, the multi-sector design of the TA was wrong, and approval should not be given for similar TA loans in the future. The important lesson learned here is to restrict loans to one sector at a time.

Project Number: 38458-013
Project Name: Infrastructure Development
Report Date:
Lesson
ADB should have restructured its technical assistance (TA) loan much earlier, taking into account two events: (i) the approval of new multitranche financing facilities (MFFs) with project-preparation components that duplicated some of the TA's work, and (ii) dramatic changes in the economy that made some subprojects irrelevant and/or unfundable. The review missions reported on consultant services and their performance, and they did propose a major restructuring of the TA over time.

Project Number: 38458-013
Project Name: Infrastructure Development
Report Date:
Lesson
The Planning and Development Division's (PDD lack of capacity to assist the implementing agencies delayed the issuance of consultant mandates, thus slowing down work on some priority subprojects. The choice of the PDD as the executing agency was a mistake. The PDD lacked qualified staff,, access, and a track record. The setting up of new units to manage consultancy contracts does not work and should not have been proposed in the first place.

Project Number: 38458-013
Project Name: Infrastructure Development
Report Date:
Lesson
Overreliance on the private sector for power generation investments when there are structural issues in the distribution sector that may not result in desired outcomes. Financial viability and cost recovery in the sector are important considerations for private sector investments in power generation in the absence of opportunities to sell electricity outside the state.

Project Number: 29473-013, 29473-023
Project Name: Madhya Pradesh Power Sector Development Program [Loans 1868/1869]
Report Date: