Search

Displaying 1 - 15 of 27

Lesson
Need for an in-depth examination of GSE’s financial performance to ensure that the risk of large investments in the 400 kV and 500 kV transmission system can be managed. Also, consideration must be given to include in contracts the benefits from power transit and their associated market risks in neighboring countries and investment. This is in view of GSE being unable to manage the risk if the revenue from power transit is linked only to the power flow (footnote 15).

Project Number: 44183-013
Project Name: Regional Power Transmission Enhancement Project
Report Date:
Lesson
The need to study the structure of the regional power market and hold discussions with the related agencies on introducing measures to increase the price of excess hydropower generation during summer months. This could, for example, be undertaken by a market supervisor or regulator who checks market power.

Project Number: 44183-013
Project Name: Regional Power Transmission Enhancement Project
Report Date:
Lesson
The project’s comprehensive and well-executed monitoring framework provides a good model for similar infrastructure-focused investments. It had clear, measurable indicators linked to each planned output and outcome that were critical for assessing both physical and institutional progress to provide some prognosis of sustainability.

Project Number: 40641-013
Project Name: Hebei Small Cities and Towns Development Demonstration Sector Project
Report Date:
Lesson
The project’s programmatic approach, which allowed flexible identification, selection, design, and modification of subprojects in the early years under the sector loan modality, was an effective approach that should be replicated in other cities of the PRC.

Project Number: 40641-013
Project Name: Hebei Small Cities and Towns Development Demonstration Sector Project
Report Date:
Lesson
ADB staff need to be trained in economic analysis, specifically the identification, quantification, and valuation of economic benefits. This would improve the credibility of EIRR calculations.

Project Number: 39019-013
Project Name: Inner Mongolia Autonomous Region Environment Improvement Project
Report Date:
Lesson
Since capacity building components of projects are rarely on the critical path to project completion, such as the institutional reform and corporate governance improvement component of this project, capacity building could be undertaken as a stand-alone technical assistance to avoid implementation delays caused by other components of the project.

Project Number: 39019-013
Project Name: Inner Mongolia Autonomous Region Environment Improvement Project
Report Date:
Lesson
The DMF targets need to be project related. It used a target for impact indicator that linked project output to government revenue. While it is possible to reasonably forecast results, the government revenue may change for reasons unrelated to the project or the sector, as seen in this case.

Project Number: 37399-013
Project Name: Green Power Development Project
Report Date:
Lesson
The use of cross-subsidy and innovative technologies for renewable energy and electricity storage are effective in rapidly expanding electricity access for remote communities. This is critical in countries having mountainous terrain and archipelagos that require large investment to expand the distribution network.

Project Number: 37399-013
Project Name: Green Power Development Project
Report Date:
Lesson
The PPP model can help finance relatively large infrastructure projects that directly increase export and government revenue. This approach is particularly relevant in developing countries with weak private sector participation in infrastructure and which lack the capacity for commercial borrowing because of debt sustainability considerations. Some examples of countries in a similar situation are the Kyrgyz Republic, the Lao People’s Democratic Republic, Nepal, and Tajikistan where large hydropower potential can be developed to increase their power exports using the PPP model.

Project Number: 37399-013
Project Name: Green Power Development Project
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
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
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
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
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
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: