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Lesson
The inclusion of contractors from countries with existing international sanctions, such as Iran, could create difficulty in sourcing the required input items to be used under the project.

Project Number: 40043-013
Project Name: Afghanistan and Tajikistan: Regional Power Transmission Interconnection Project
Report Date:
Lesson
Establishing a dedicated entity for the design, construction, and operation the ZHSHPP contributed to the smooth implementation of the project and its subsequent operation. The core staff of Zhanghewan Pumped Storage Company (ZPSC) has been involved in the project from its inception, so the Company has a strong sense of ownership and institutional memory.

Project Number: 28212-013
Project Name: Hebei Zhanghewan Pumped Storage Project
Report Date:
Lesson
The relevance and rationale for including an institutional strengthening component to promote power sector reforms is questionable given the uncertainty over the government's strategy for power sector reforms. It is necessary to ascertain the government's vision and strategy for far-reaching sector reforms before committing resources to implement these reforms in lending projects.

Project Number: 28212-013
Project Name: Hebei Zhanghewan Pumped Storage Project
Report Date:
Lesson
The overall financial strength and institutional capability of the sector are important to ensure the successful implementation of large infrastructure projects which require a significant amount of counterpart financing. The ADB loan contributed 21% of the cost of the ZPSHPP and 15% of the total project cost; the remaining financing was mobilized from domestic banks, shareholder financing, and local government financing.

Project Number: 28212-013
Project Name: Hebei Zhanghewan Pumped Storage Project
Report Date:
Lesson
The project design and monitoring framework included components that are not directly related to the project. The implementation arrangements for these components were different from ADB-financed ZPSHPP, and ZPSC did not have any role in implementing these components. This prevented effective monitoring of the implementation of these components by ADB review missions, and confirming their efficacy in achieving the outcomes. Furthermore, the indicators to measure the poverty alleviation impacts were poorly defined as a result these could not be monitored during review missions.

Project Number: 28212-013
Project Name: Hebei Zhanghewan Pumped Storage Project
Report Date:
Lesson
A strong technical and economic rationale for the project ensures its success even if the institutional arrangements for its implementation change. Significant changes to the power sector in Hebei Province and to the implementation arrangements of the Zhanghewan Pumped Storage Hydro Power Plant (ZPSHPP) did not affect implementation of the ZPSHPP, as it had strong technical and economic relevance to the needs of the Hebei power system.

Project Number: 28212-013
Project Name: Hebei Zhanghewan Pumped Storage Project
Report Date:
Lesson
Obtaining the agreement of affected people to the proposed resettlement sites and entitlements is also significant. Selecting relocation sites near an economic center provides better access to employment opportunities, and public services (such as schools and hospitals) help in obtaining the agreement of the affected people. Providing better housing conditions with basic infrastructure (such as piped water, electricity, internet, and telecommunications) modernized the lifestyle of the affected people, compared with old villages in mountainous areas.

Project Number: 28212-013
Project Name: Hebei Zhanghewan Pumped Storage Project
Report Date:
Lesson
Affected households should be provided with full information regarding their entitlements, livelihood options, and access to other services; and to secure their agreement for proposed resettlement sites as early as possible. The project owner should proactively engage in the consultation process, without delegating the responsibility for managing the resettlement to local government agencies. Consultations with the affected people were not effectively conducted by the local government, which caused significant delays because of lack of consensus on the resettlement sites.

Project Number: 28212-013
Project Name: Hebei Zhanghewan Pumped Storage Project
Report Date:
Lesson
Competent implementation supervision consultants are important to ensure the quality of the technical design and the performance of contractors for complex infrastructure projects. ZPSC highly appreciated the contribution from implementation consultants for the smooth implementation construction of the project within the original schedule.

Project Number: 28212-013
Project Name: Hebei Zhanghewan Pumped Storage Project
Report Date:
Lesson
No additional lesson.

Project Number: 39652-033
Project Name: Gansu Heihe Rural Hydropower Development Investment Program – Dagushan Hydropower Project
Report Date:
Lesson
Although the economic and financial benefits of the project were substantial for Afghanistan, they would have been greater if investment in distribution had been undertaken in a timely manner to take advantage of the capacity to import electricity through the project transmission line. The transmission line is currently used at less than full capacity - about 200 MW. It is possible to energize it to transmit up to 600 MW of electricity.

Project Number: 40043-013
Project Name: Regional Power Transmission Interconnection Project (Afghanistan and Tajikistan)
Report Date:
Lesson
Financial management assessments undertaken at appraisal need to fully assess the potential for executing agencies to provide the level of funding proposed in the project financing plan to avoid cancelation of project activities that may negatively affect project viability and sustainability.

Project Number: 40043-013
Project Name: Regional Power Transmission Interconnection Project (Afghanistan and Tajikistan)
Report Date:
Lesson
The Afghanistan component of the project demonstrated that importing relatively inexpensive electricity from Tajikistan, and elsewhere if available, can result in enormous economic benefits to Afghanistan and financial benefits to Da Afghanistan Breshna Sherkat (Afghanistan Power Utility). It would be prudent for the Government of Afghanistan and ADB to pursue further investments in the power sector to take advantage of surplus electricity in neighboring countries.

Project Number: 40043-013
Project Name: Regional Power Transmission Interconnection Project (Afghanistan and Tajikistan)
Report Date: