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Lesson
Ensure robust cost estimation and due diligence during project design, taking into account realistic base costs and adequate price escalation factors. (

Project Number: 32058-033
Project Name: Punjab Road Development Sector Project
Report Date:
Lesson
Ensure thorough diagnostics of the institutional and policy environment before embarking on a complex reform program.

Project Number: 32058-033
Project Name: Punjab Road Development Sector Project
Report Date:
Lesson
Limit such a program to fewer but better justified components.

Project Number: 32058-033
Project Name: Punjab Road Development Sector Project
Report Date:
Lesson
Consider realistic timelines for project implementation, taking into account that institutional and policy components typically take longer to complete than the physical components.

Project Number: 32058-033
Project Name: Punjab Road Development Sector Project
Report Date:
Lesson
Make full use of ADB’s knowledge and review the experience of completed projects, particularly when they are in the same country and sector.

Project Number: 32058-033
Project Name: Punjab Road Development Sector Project
Report Date:
Lesson
Bear in mind ADB’s role as a development partner, and the development results to be achieved, when considering closure of an ongoing project.

Project Number: 32058-033
Project Name: Punjab Road Development Sector Project
Report Date:
Lesson
Define criteria for the closure of incomplete projects.

Project Number: 32058-033
Project Name: Punjab Road Development Sector Project
Report Date:
Lesson
It is prudent for ADB to consider alternative fuels when appraising the cost and benefits of oil-fired generation plants. Alternative fuels consist of renewable energy sources and thermal fuels, including clean coal options. Private sector support to the power sector is optimized with a comparative analysis of real fuel options.

Project Number: 34912-014
Project Name: AES Kelanitissa Power Project in Sri Lanka
Report Date:
Lesson
Risk of lost revenues due to delayed commissioning and unplanned shutdown associated with mechanical failures can be mitigated by requiring expert power plant developers sponsored by ADB to provide more oversight and guidance to construction contractors.

Project Number: 34912-014
Project Name: AES Kelanitissa Power Project in Sri Lanka
Report Date:
Lesson
Close examination and assessment of real capacity is necessary in analyzing economic and financial benefits for private sector power plant projects supported by ADB. Nameplate capacity needs to be considered in the context of a plant’s capacity factor. No power plant runs 100% of the time, and power plants, like that of AKL, that run on auto diesel fuel will need to shut down routinely for scheduled maintenance. Routine maintenance combined with unscheduled shutdowns lower actual net capacity.

Project Number: 34912-014
Project Name: AES Kelanitissa Power Project in Sri Lanka
Report Date:
Lesson
Experienced foreign investors in power generation have access to private sector technical insurance that sovereign entities may not otherwise have. This is important when technical problems arise that cause major shutdown of operations, as was the case of AKL due to a 2004 fire. Private sector insurance enables unforeseen technical problems to be fixed along with compensation to the insured for revenue loss due to the incident. Foreign investors can leverage important insurance that is often difficult for sovereign entities to acquire.

Project Number: 34912-014
Project Name: AES Kelanitissa Power Project in Sri Lanka
Report Date:
Lesson
At appraisal, the difficulty of implementing the Reform Program could have been foreseen and special measures for monitoring and supervision should have been proposed in the RRP, and specific milestone requirements to check the progress of the Reform Program should have been set.

Project Number: 31280-013
Project Name: Road Sector Development Project (1986-SRI[SF])
Report Date:
Lesson
Necessary data should be collected for the project roads at appraisal, and the selection methodology should have been a sound logical and scientific tool to shield it from political pressure.

Project Number: 31280-013
Project Name: Road Sector Development Project (1986-SRI[SF])
Report Date:
Lesson
An appropriate method for economic justification should be carefully examined at appraisal. The economic analysis should have used observed data instead of the desktop estimation, and should be assessed based on sound assumptions.

Project Number: 31280-013
Project Name: Road Sector Development Project (1986-SRI[SF])
Report Date:
Lesson
More careful monitoring and supervision should have been required to review the progress of the program, to understand its key issues, and to propose alternative approaches where necessary. The design of the Reform Program with its numerous components was complex, so efforts in monitoring and guidance should have been made during project implementation.

Project Number: 31280-013
Project Name: Road Sector Development Project (1986-SRI[SF])
Report Date: