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Lesson
The need for the cancelation of loan savings would be avoided by using realistic cost estimates during project preparation, as pointed out in the project completion report, is an appropriate lesson. However, this validation notes that the actual project cost was 28% lower than appraisal estimates, but the reduction in total ADB loan was 45%, i.e., from an estimate of $463 million to $253 million at program closing. The lower program cost reflected high-cost estimates, but higher counterpart funding was the bigger factor in the cancelation of the loan savings.

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program (Multitranche Financing Facility and Tranche 3)
Report Date:
Lesson
Thorough project costing, including for the subproject components, is essential to smooth project implementation and success. Careful and precise estimation of costs and setting aside resources to cover future price escalations is required.

Project Number: 43405-024
Project Name: Urban Services Improvement Investment Program - Tranche 2
Report Date:
Lesson
Preparing, reviewing, and monitoring project cost estimates contribute to a more efficient utilization of project funds. A more in-depth assessment and consideration of currency depreciation factors during project appraisal permits a more robust cost estimate. Under this project, a substantial loan amount was canceled because of the rupee depreciation against the US dollar. In-depth financial planning and cost projections coupled with risk mitigation measures allows for better utilization of loan proceeds.

Project Number: 49125-001
Project Name: Second Jharkhand State Road Project
Report Date:
Lesson
A timely and appropriate change in scope and reallocation of grant (or loan) proceeds responding to actual project needs emerging from implementation can help utilize available grant (or loan) resources in a more targeted and efficient manner, facilitate the conduct of more activities, potentially deliver more outputs, and maintain the project's relevance and effectiveness.

Project Number: 44130-022
Project Name: District Capitals Water Supply Project
Report Date:
Lesson
An appropriate training of the implementing agency on ADB’s safeguard policies can ensure compliance and accurate budgeting of cost of safeguards implementation. This should factor in the implementing agency’s capacity and structure in preparing and updating safeguards assessments and plans as well as in monitoring and implementation.

Project Number: 44426-016
Project Name: Green Energy Corridor and Grid Strengthening Project
Report Date:
Lesson
Closer coordination, capacity building, and handholding can improve project implementation when the executing agency has limited experience on implementing ADB-assisted projects. A review mechanism for assessing the efficacy of the trainings needs to be designed. The executing agency should be well versed in the ADB's safeguard policies to ensure compliance and accurate budgeting of the cost of safeguards. Any delays in the mobilization of experts to complement the staff of the executing agency should be expeditiously addressed.

Project Number: 47101-002
Project Name: Assam Power Sector Investment Program (Tranche 1)
Report Date:
Lesson
Allowances for possible cost increases in civil works can mitigate the effects of unforeseen geological conditions.

Project Number: 41627-023, 41627-033
Project Name: Himachal Pradesh Clean Energy Development Investment Program (Tranches 1 and 2)
Report Date:
Lesson
Estimation of the project cost requires a greater anticipation of potential cost overrun/underrun that may arise during implementation. During appraisal, a more in-depth examination and consideration of factors related to currency depreciation permits a more robust and realistic cost estimates. Under this project, a substantial loan amount was cancelled due to the rupee depreciation. A careful financial planning and cost projections coupled with risk mitigation measures and monitoring allows for better utilization of loan proceeds.

Project Number: 46417-001
Project Name: Jaipur Metro Rail Line 1-Phase B Project
Report Date: