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Lesson
Providing technical assistance grants is essential to strengthening the institutional capacity of newly established states, executing agencies and implementing agencies, to enable smooth project execution according to ADB guidelines. The risk of natural disasters needs to be assessed appropriately during the project design stage, with special attention to the frequency of these events.

Project Number: 37139-033
Project Name: Uttarakhand Power Sector Investment Program–Tranche 2
Report Date:
Lesson
More thorough due diligence needs to be conducted related to the feasibility of realization of associated infrastructure that serves as a prerequisite to the project outputs; e.g., transmission lines directly connected to a planned power plant. The uncertainties about their successful implementation need to be reduced or eliminated, if possible, before approving loan disbursements and procurement activities, even if this leads to disbursement delays. This will reduce the risk of loan proceeds being spent unproductively and the burden of financing charges and IDC.

Project Number: 37139-033
Project Name: Uttarakhand Power Sector Investment Program–Tranche 2
Report Date:
Lesson
When revising the project scope, ensure that mistakes made during the design phase are not repeated. Before approving new MFF tranches, ensure that all covenants of the previous tranche(s) are met. This needs to be a condition for the disbursement of new funds, as at a later stage, ADB does not have much leverage to enforce such covenants. Focusing on fast loan disbursements can lead to premature procurement and later cancellation, incurring unnecessary financial charges and IDC on the borrower.

Project Number: 37139-033
Project Name: Uttarakhand Power Sector Investment Program–Tranche 2
Report Date:
Lesson
The choice of the MFF as a modality appears to decrease the level of due diligence and scrutiny employed when approving single tranches as compared to project-based lending. This needs to be considered as a downside of the MFF modality in general. A more thorough due diligence stage needs to be foreseen before approving single tranches, not only at the MFF appraisal level.

Project Number: 37139-033
Project Name: Uttarakhand Power Sector Investment Program–Tranche 2
Report Date:
Lesson
Providing technical assistance to strengthen the institutional capacity of newly established states, executing agencies, and implementing agencies is essential. Capacity building activities should be included to enable smooth project execution according to ADB guidelines. The risk of natural disasters needs to be considered better during project design. More thorough due diligence into the frequency of these events needs to be employed, as for example the Sobla-1 hydropower plant was washed away twice, resulting in the abandonment of the project.

Project Number: 37139-043
Project Name: Uttarakhand Power Sector Investment Program–Tranche 3
Report Date:
Lesson
More stringent monitoring needs to be employed related to associated assets, such as transmission lines and power generation, as they affect implementation substantially. Associated infrastructures should be implemented earlier and potentially include them as covenants for the borrower to ensure the proper and timely execution of the project. As mentioned in para. 10, the substation was mostly unused at the time of PCR preparation.

Project Number: 37139-043
Project Name: Uttarakhand Power Sector Investment Program–Tranche 3
Report Date:
Lesson
Before approving new MFF tranches, it is necessary to ensured that all covenants of the first tranches have been met. This needs to be a condition for the disbursement of new funds, because at a later stage, ADB does not have much leverage.

Project Number: 37139-043
Project Name: Uttarakhand Power Sector Investment Program–Tranche 3
Report Date:
Lesson
The choice of the MFF as a financing modality appears to decrease the level of due diligence and scrutiny employed when approving single tranches as compared to project-based lending. This needs to be considered as a downside of the MFF modality in general and a more thorough due diligence stage needs to be implemented before approving single tranches, not only at MFF appraisal level.

Project Number: 37139-043
Project Name: Uttarakhand Power Sector Investment Program–Tranche 3
Report Date:
Lesson
1. Also, here are additional project-level lessons: project proposals need to be anchored on a rigorous sector analysis where different scenarios that consider changing policy environment of the state are laid out so that assumptions, indicators, and their performance targets are drawn up with guarded optimism.

Project Number: 37579-012, 37579-032
Project Name: Lao People’s Democratic Republic: Sustainable Natural Resource Management and Productivity Enhancement Project
Report Date:
Lesson
2. Where a project has ethnic groups as beneficiaries, their culture, traditions, and language need be considered as risks and mitigating measures identified. Mainstreaming them into project might require interventions distinct from the others.

Project Number: 37579-012, 37579-032
Project Name: Lao People’s Democratic Republic: Sustainable Natural Resource Management and Productivity Enhancement Project
Report Date:
Lesson
No additional lessons

Project Number: 42052-022
Project Name: Central Asia Regional Economic Cooperation Corridor 3 (Dushanbe–Uzbekistan Border) Improvement Project
Report Date:
Lesson
The sustainability of rural infrastructure interventions, mainly rural roads and irrigation schemes relies heavily on securing funds for their proper O&M. Existing reliance on ad hoc government transfers to cover O&M expenses should 12 evolve into user-paid fees to guarantee the proper functioning of the infrastructure during its expected lifetime.

Project Number: 37287-013, 37287-022
Project Name: Tonle Sap Lowlands Rural Development Project
Report Date:
Lesson
Sector projects of a multisectoral nature face the risk of having implementation problems and achieving lower than expected development outcomes. Additional work at project design needs to identify and establish clear rules about the types of investments that are eligible for financing, ensuring that these contribute to the project’s stated outcomes. At implementation, a close communication of the rules for investment is critical to avoid delays stemming from extensive revisions to proposed investment plans.

Project Number: 37287-013, 37287-022
Project Name: Tonle Sap Lowlands Rural Development Project
Report Date:
Lesson
For greater effectiveness of the monitoring and evaluation framework of the project, the overall logic and results chains as well as indicators need to be firmly established and tested before project effectiveness.

Project Number: 37287-013, 37287-022
Project Name: Tonle Sap Lowlands Rural Development Project
Report Date:
Lesson
In the absence of a positive financial return, yet with significant development impact, it is important that infrastructure road projects are well integrated in a road network plan to ensure government commitment to maintain the investment.

Project Number: 42017-013
Project Name: Second Heilongjiang Road Network Development Project
Report Date: