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Lesson
Objective quantitative assessment of benefits and costs may help in the setting up a mechanism for fair distribution of costs across countries. The IEM economic analysis indicates that the net present value of the project for the Lao PDR could be made positive if higher grant elements were used in the financing by the PRC and Thailand.

Project Number: 34231-013
Project Name: Greater Mekong Subregion: Northern Economic Corridor Project in the Lao People’s Democratic Republic
Report Date:
Lesson
An agreement for collective maintenance is an essential element for the sustainability of subregional road projects, such as this project. A mechanism needs to be devised for the costs to be shared in proportion to the benefits received by the stakeholders.

Project Number: 34231-013
Project Name: Greater Mekong Subregion: Northern Economic Corridor Project in the Lao People’s Democratic Republic
Report Date:
Lesson
An effective project implementation entity is important when multiple financiers are involved, in order to ensure uniform standards in the construction of the project road. For the ADB-funded section of the road, the Lao PDR government could keep track of expenditures and verify if timelines and guidelines are followed. This was not the case with the PRC and Thailand financed sections. For example, the PRC used its own design standards for the road without conducting any dialogue with the Lao PDR government.

Project Number: 34231-013
Project Name: Greater Mekong Subregion: Northern Economic Corridor Project in the Lao People’s Democratic Republic
Report Date:
Lesson
A greater level of upfront efforts in project preparation, particularly in the areas of preparing credible traffic forecasts and identifying road alignments, could pay large dividends. Mitigation measures identified in the RRP to address project risks were largely unsuccessful, and the project was subject to long time delays, problems with land acquisition and procurement, shortfalls in demand, and insufficient funding for maintenance.

Project Number: 33243-013
Project Name: Road Maintenance and Improvement Project
Report Date:
Lesson
Baseline data collection is a priority. At appraisal and during implementation, greater attention should have been given to the design and monitoring framework, especially in establishing measurable indicators and their baseline values, and target values with a realistic time frame to achieve these goals. Higher priority should have been given to ensure that baseline data were collected prior to project implementation, and updated during project implementation and at completion. The absence of baseline data has made this independent evaluation of the project difficult.

Project Number: 33243-013
Project Name: Road Maintenance and Improvement Project
Report Date:
Lesson
Implementing policy reforms entails a complex and long-term process of change. The legislation and policy measures that were enacted required fundamental changes to the roles of several concerned institutions. These types of reforms can take longer than anticipated, adding uncertainty to the realization of actual outputs and outcomes. The full extent of reforms, especially to institutional arrangements, may extend well beyond the usual administrative life of a project loan.

Project Number: 33243-013
Project Name: Road Maintenance and Improvement Project
Report Date: