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Lesson
Continued timely adjustments in tariffs could make projects financially viable. The project financial reevaluation at completion concluded that the project was financially viable subject to continued timely adjustments in tariff. This has legal basis as Decree 124/2011/ND-CP allows WSCs to propose water tariffs in a tariff roadmap, which provincial governments approve. The tariff roadmaps of the participating WSCs included adjustments every two years. However, only one adjustment was made in 2019–2022 due to the impacts of COVID-19.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Delayed and insufficient government counterpart funding disrupt and delay project implementation. Timely provision of counterpart funding to support relevant project activities, as required under the loan agreement, was not experienced in this project, necessitating changes in financing arrangements. Although ADB accommodated the changes, the lack of timely counterpart funding disrupted implementation and contributed to delays, cancellations, and loss of project benefits. Counterpart funding issues have a high potential to negatively impacts other similar projects in PNG.

Project Number: 44375-013
Project Name: Maritime and Waterways Safety Project
Report Date:
Lesson
Cost management and quality assurance mitigate the risk of cost increases due to project design changes during implementation. Despite modifications to the project, the final cost aligned closely with the estimates at appraisal as a result of coordinated efforts. A well managed tender process secured favorable offers, while proactive project management throughout the procurement and construction phases ensured cost efficiency and quality.

Project Number: 45022-002
Project Name: Jiangxi Ji'an Sustainable Urban Transport Project
Report Date:
Lesson
Accurate cost estimates, including for contingencies, and effective utilization of loan savings are critical to the attainment of intended project results and timely financial closing. The actual contract price was lower than the amount estimated because of the inaccuracy of the engineering cost estimate and contingency estimates. Cost savings, however, were effectively utilized through minor changes in the project, further enhancing the achievement of project outcomes and outputs. Eligible expenses should be clarified early on, so as not to delay the project financial closing.

Project Number: 47047-002
Project Name: Shandong Groundwater Protection Project
Report Date:
Lesson
Revenues to finance O&M may take time to reach sustainable levels, and this should beconsidered in project design to aviod potential budgetshortfalls during initial project operations.

Project Number: 46293-003
Project Name: Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project
Report Date:
Lesson
The lack of organizational capacity and requisite implementation skills also weighs heavily against the attainment of project objectives. Another major reason for poor performance of the PNB was its inability to scale up individual subloans through either the Renewable Energy Services Company (RESCO) or demand aggregation of smaller subprojects, be they in the commercial and industrial sector, MSME, or residential sector.

Project Number: 49419-002
Project Name: Solar Rooftop Investment Program - Tranche 1
Report Date:
Lesson
Customizing the terms of reference of auditors to project requirements and ensuring that they are properly oriented on these requirements are critical to promoting project compliance with ADB financial management procedures. There were gaps in complying with the financial management conditions of the loan agreement, including the need to timely submit audit reports and auditor’s management letters and opinions.

Project Number: 49419-002
Project Name: Solar Rooftop Investment Program - Tranche 1
Report Date:
Lesson
The availability of additional resources for the preparation of one or two procurement-ready civil works subprojects before loan effectiveness could support a smooth project startup.

Project Number: 46293-003
Project Name: Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project
Report Date:
Lesson
Setting aside resources to engage startup consultants, such as a a procurement and safeguard specialists, will help mitigate the risk of delays.

Project Number: 46293-003
Project Name: Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project
Report Date:
Lesson
Tax exemption as a form of government project contributiont and allocation of adequate budget for operation and maintenance (O&M) could prove challenging because of fiscal constraints. Therefore, it is crucial to consider the availability of O&M resources in option analyses for infrastructure subprojects during project preparation and detailed design, with preference given to less maintenance-intensive options.

Project Number: 46293-003
Project Name: Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project
Report Date:
Lesson
The risks associated with single-tranche loans can be mitigated through proper management of the loan proceeds and control of the project cost. The ADB loan was featured to have a single tranche disbursement arrangement to address currency mismatch and hedge financial risks arising from foreign borrowing. In the early stage of project implementation, the full amount of the ADB loan ($90.8 million) was disbursed as an advance and exchanged to local currency.

Project Number: 41682-039
Project Name: Greater Mekong Subregion Highway Expansion Phase 2 Project
Report Date:
Lesson
It might be useful to develop a climate finance strategy for the state-owned enterprises(SOE) sector, building on the experience and lessons from this program's. Assessment of the fiscal risks associated with climate change was incorporated into subprogram 2. This highlights the significant role SOEs can play in addressing climate change impacts and supporting the countries climate obligations. Given this, it might be useful to establish a climate finance strategy for the SOE sector, building on the experience and lessons from this program.

Project Number: 54271-001, 54271-002
Project Name: Fiscal Resilience and Social Protection Support Program (Subprograms 1 and 2)
Report Date:
Lesson
Additional measures are necessary for the government securities market to stimulate demand from both retail and institutional investors. The program had several supply-based reforms, particularly around the primary dealer system and government bonds; however, turnover velocity was below the target, particularly for the secondary market relating to government securities. This would suggest that additional demand-based measures are as of December 2023 required for the government securities market to stimulate demand from both retail and institutional investors.

Project Number: 54271-001, 54271-002
Project Name: Fiscal Resilience and Social Protection Support Program (Subprograms 1 and 2)
Report Date:
Lesson
Apart from offering concessional interest rates,ADB and China National Investment and Guaranty Corporation (I&G) could explore providing enhanced value-added services for ongoing and future financial intermediation loan initiatives in air quality improvement or climate change programs. The global economic slowdown dampened enthusiasm for green investments, while the rise in euro interest rates and the reduction of yuan lending rates since 2022 presented additional challenges for green financing eligible subprojects within the greater Beijing–Tianjin–Hebei region.

Project Number: 50096-002
Project Name: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project
Report Date:
Lesson
The imposition of sewerage tariffs needs to be carefully thought out and based on a thorough study, as these could discourage low-income households from connecting to new sanitation services. Sewerage tariffs were proposed based on the “user pays” principle as one of two means to increase resources for the operation and maintenance of project facilities. However, sanitation services are overall viewed as a public good not suited to the "user pays" principle. Moreover, given the dire pre- project sanitation situation in South Tarawa, the principle may not work.

Project Number: 43072-013
Project Name: South Tarawa Sanitation Improvement Sector Project
Report Date: