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Lesson
It is important to reassess Indicators at midterm. In addition to project review, a reassessment of the performance Indicators at midterm should have led to adjustments in the project design, including targets and implementation timeframes. These would have bolstered the project’s potential for success.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Project preparatory and startup activities should be synchronized to avoid wastage of time and resources. The implementation of subprojects in multiple geographic locations and the need to manage the storage of equipment delivered years before installation added to the challenges in managing this project. Furthermore, consultant recruitment was not aligned to implementation progress.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Delayed implementation of an associated project can seriously affect the success potential of another. This project was critically dependent on the progress of tranche 1 of the Town Electrification Investment Program (TEIP). Specifically, it was to connect 4,500 rural households to the grid being extended under the TEIP tranche 1 project. The grid itself was to be maintained by the hydropower plants being constructed under the tranche 1 project. However, as tranche 1 incurred extensive delays so did this project which took 9 years to be completed versus the planned 3 years.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Drawing from similar past project experiences, as part of due diligence, will help minimize or avoid cost underestimations. The connection costs under this project were underestimated by 250%, resulting in the project installing only 43% of its planned 4,500 household connections. More thorough due diligence should have been carried out during project preparation, with cost estimates validated by experiences under similar past projects.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Corporatized public enterprises operating on a cost-recovery basis need government funding support for infrastructure improvements. Provision of government counterpart funding should have been a condition for grant effectiveness. Instead, the executing agency, the Papua New Guinea Power Limited (PPL), partially made funds available for civil works. PPL, as a corporatized enterprise, is mandated to operate on a cost-recovery basis and did not have sufficient funding allocation.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Alternatives to grid connection should have been considered to electrify more rural poor communities. Inclusion of alternatives that are beneficial to low-usage rural customers, including solar home systems and mini grids, could have expanded project coverage and enhanced its impact.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Equity issues need to be carefully considered and addressed in beneficiary selection and targeting. The potential for political influence in the selection of communities that would benefit from grid connection was identified as a risk. To mitigate this risk, independent consultants were engaged to develop the beneficiary selection criteria, which would eventually stipulate that (i) customers were to be within 250 meters of the transmission line, (ii) construction of the property had to be sound, and (iii) households must have the financial means to pay for the electricity provided.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Prior to commencement, implementation arrangements should be agreed by all participating agencies to avoid unnecessary delays.

Project Number: 47320-001
Project Name: Samoa Submarine Cable Project
Report Date:
Lesson
A clear implementation arrangement with respect to technical, institutional, and scope of work helps to avoid prolonged and lengthy implementation delays, especially for projects involving multiple cofinanciers and implementing agencies.

Project Number: 47320-001
Project Name: Samoa Submarine Cable Project
Report Date:
Lesson
In small island developing countries with limited policy reform capacity, ADB should avoid targeting multiple reform areas in one policy-based operation—i.e., debt management, civil service reform, management of the wage bill, public procurement, and private sector development—and keep prior actions to a minimum.

Project Number: 48361-001, 48361-002, 48361-003
Project Name: Building Macroeconomic Resilience Program
Report Date:
Lesson
Policy reform programs with complex and multiple interventions require rigorous identification and assessment of the political economy and capacity risks to ensure overall effectiveness.

Project Number: 48361-001, 48361-002, 48361-003
Project Name: Building Macroeconomic Resilience Program
Report Date:
Lesson
Actions that demonstrate the achievement of program policy matrix milestones should indicate what has been achieved, rather than the process of their accomplishment. For example, Cabinet approval is an inadequate indicator to demonstrate a successful policy reform in Tonga.

Project Number: 48361-001, 48361-002, 48361-003
Project Name: Building Macroeconomic Resilience Program
Report Date:
Lesson
Adequate stakeholder consultations, conducted at all project stages, are essential to building consensus and preventing tensions and disagreements from negatively affecting implementation.

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
Report Date:
Lesson
Projects require an in-depth assessment of ownership and use of land. Procurement for the Butwal auto village subprojects (AVS) was severely delayed by land ownership issues. The automobile enterprises were located on land leased from the municipality intended only for establishment of automobile enterprises, but the entrepreneurs used the land for business and residential purposes. These entrepreneurs were skeptical that their existing land uses could continue if they entered into a public-private partnership agreement, and thus protested the AVS.

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
Report Date:
Lesson
An adequate assessment is needed when setting targets. This project had a few design challenges that could not be addressed during implementation. For the target of serving 3,000 households with new water supply connections and 4,500 with improved ones, financing was not included in the approved project, so could never be achieved. The target of serving 25,000 households with sewer connections was ambitious, as only about 13,680 households would get these connections based on the final engineering designs.

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
Report Date: