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Lesson
For short periods these conditions are tolerable, but for a major outage such as that witnessed during the evaluation mission, these plans are inadequate. Losses to businesses due to outages included cancelled bookings at smaller hotels without backup generators, food spoilage due to no refrigeration, less customer traffic due to discomfort for patrons in the high temperatures, and inability to manage booking changes or take credit card payments due to inoperable electronic ticketing and payment systems.

Project Number: 40914-021
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Emergency power plans are outdated. An accident resulted in a 4-day power outage for Siem Reap. In times of grid outages, Siem Reap is served by EDC’s 10.5 MW diesel-powered plant combined with individually owned generator sets that run on diesel and fuel oil. Those who depend on EDC for power suffer rolling brown-outs, but the many people and small businesses that are not connected to the EDC plant and have no individual backup generators face total blackout, i.e., these people have no power at all, and often, no water.

Project Number: 40914-020
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Guardrails might mitigate against transmission line accidents. The CPTL line runs along regional highways on government-owned rights of way and by necessity the poles are close to the road. During the evaluation mission there was a vehicle accident that required 10 poles to be replaced. Although nobody was hurt in the accident and the coordinated CPTL–EDC emergency response plan was very effective, Siem Reap was without grid power for 4 days. One possible mitigation of such a risk might be guardrails along the road.

Project Number: 40914-019
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Sponsors can identify qualified local maintenance providers. CPTL’s international maintenance provider departed with the majority shareholders and was successfully replaced with a local provider. If the project sponsors or project management teams are able to find suitably qualified local operation and maintenance solutions, costs to the project are likely to be lower and an important opportunity to create skilled jobs is created from the outset.

Project Number: 40914-018
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Controls over project cash flows and bank accounts protect project interests. The loan structure included strict controls over the project bank accounts. Bank accounts specifically dedicated to the CPTL project needed to be opened and maintained both outside the host country (the offshore account) and within it (the onshore account). All amounts payable to the project are required to be paid into the offshore account and may only be withdrawn according to the payment priorities and amount limits specified in the loan document.

Project Number: 40914-017
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Additional resident mission resources could aid in due diligence. Whether this dispute and its potential to disrupt the business could have been prevented through a change in due diligence procedures requires consideration, although the causes of the dispute itself are not clear. All existing due diligence requirements appear to have been completed, including checklists, and PSOD used an external consultant and included the resident mission in its due diligence process, even without a formal due diligence requirement to do so.

Project Number: 40914-016
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
The CPTL project itself offers a meaningful demonstration effect. It was well constructed and delivered electricity on time and to agreed specifications, in turn allowing EDC to deliver electricity to its customers. Under the PPA, EGAT delivers electricity to EDC via CPTL as agreed. EDC meets its contractual payment obligations to EGAT and CPTL. EAC monitors tariffs and licensees, allowing project benefits to be passed on to the end-users in the form of lower tariffs.

Project Number: 40914-015
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Long-term sector engagement facilitated the enabling environment. ADB’s long-term focus on energy sector development has contributed to the improving electrification rates in Cambodia. Since 1992, ADB’s country strategy for Cambodia has always prioritized the energy sector (in coordination with other donors, especially the World Bank, and aligned with government interest). These efforts contributed to the 2001 Electricity Law that codified the sector's regulatory agencies. Confidence in the regulator is a key element of private sector participation in the sector.

Project Number: 40914-014
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
No new lessons.

Project Number: 31296-013
Project Name: West Zone Power System Development Project
Report Date:
Lesson
The cancellation of the Norwegian Agency for Development Cooperation funds and the delayed implementation of the Nordic Development Fund component affected consumer connection. A more reliable parallel financing arrangement has to be made to ensure the realization of designed project objectives. This matter needs to be addressed under ongoing and future loans16 for the power sector.

Project Number: 36205-013
Project Name: Power Sector Development Program (Project Loan)
Report Date:
Lesson
The construction of oil-fueled power plants by the public and private sectors increased Bangladesh Power Development Board's operational costs. The tariff increases by Bangladesh Energy Regulatory Commission in 2008-2012 were contrary to its tariff-setting methodology, which specifies at least a 10% return on assets. Rationalizing the tariff structure to provide an adequate margin to distribution entities can enable these entities to meet future financial requirements.

Project Number: 36205-013
Project Name: Power Sector Development Program (Project Loan)
Report Date:
Lesson
The Bangladesh Power Development Board corporatization target was a premature step, which underestimated the difficulties in the way of major reforms toward unbundling and corporatization in Bangladesh. The government has already changed its power sector reform agenda. Instead of corporatizing Bangladesh Power Development Board, it plans to restructure Bangladesh Power Development Board business functions into several generation and distribution strategic business units, which will operate under the existing legal structure and be functionally separate with more financial authority.

Project Number: 36205-013
Project Name: Power Sector Development Program (Project Loan)
Report Date: