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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
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Lesson
Detailed market analysis through strategic procurement planning and accurate cost estimates could prevent unexpectedly low bids, leading to significant project savings. Under this project, it is noted that low bids did not negatively affect the quality of construction.

Project Number: 45509-002
Project Name: Chongqing Urban-Rural Infrastructure Development Demonstration II Project
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Lesson
Resource constraints can impede the participation of smaller firms in ADB procurement as well as hinderCapacity development of counterpart agencies. Smaller firms struggled to respond appropriately in some bidding processes, which resulted in their being considered ineligible to participate. The project implementation unit experienced resource constraints, which hindered sustainedCapacity development throughout the project and the participation of outer islands officials in the training activities.

Project Number: 46351-002
Project Name: Climate Resilience Sector Project
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Lesson
Climate risk assessments must be undertaken during project preparation, with results factored into the project design and budgets. The project experienced unforeseen landslides, pointing out the need to (i) improve climate modelling at design stage to incorporate potential climate change impacts on frequency and severity of landslide hazards for projects located in mountainous areas, and (ii) ensure adequate budget or contingency for potential increase of land acquisition during implementation.

Project Number: 46042-002
Project Name: Shaanxi Mountain Road Safety Demonstration Project
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Lesson
issues, unforeseen project features, and road safety and traffic issues

Project Number: 46040-003
Project Name: Yunnan Pu'er Regional Integrated Road Network Development Project
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Lesson
Specificity of intended outcome is essential to enable programming, innovation, and cycles of project improvement. The project’s outcomes were broadly defined and lacked clear pathways detailing how the outputs would interact with each other and achieve the outcomes. The vagueness is likely part of the reason that the design had significant gaps and flawed assumptions on how the activities would lead to the intended outcomes.

Project Number: 41509-013
Project Name: Rural Primary Health Services Delivery Project
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Lesson
Substantial cost overruns could result from inadequate detailed design, new legislation (e.g., banning slow-moving traffic from highways), changes in pavement composition to address climate change impacts and overloading, constructability issues, unforeseen project features, and road safety and traffic issues.

Project Number: 40540-014, 40540-017
Project Name: South Asia Subregional Economic Cooperation Road Connectivity Project
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Lesson
Optimal contingency allocations will minimize partial loan cancellation.

Project Number: 40648-034
Project Name: Infrastructure Development Investment Program for Tourism - Tranche 3
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Lesson
Optimal contingency allocations will minimize partial loan cancellation.

Project Number: 40648-013, 40648-037
Project Name: Infrastructure Development Investment Program for Tourism (Tranche 4 and Multitranche Financing Facility)
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Lesson
The cost categories required to be reported in the audited program financial statements (APFS) need to align with the categorization at appraisal so as not to cause problems in reporting. PLN faced difficulty in estimating the financing charges during implementation at appraisal stage. In addition, PLN raised a concern on the disclosure provision regarding APFS due to confidentiality requirements. The cost categories reported in the APFS were not aligned with the categorization used at appraisal, due to which changes to reporting formats were needed.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
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Lesson
Budget approval and procurement of new technologies being piloted could take time and cause implementation delays; when installed, rigorous monitoring of the performance of the new technologies is required to ascertain benefits and draw lessons from the pilot experience. In implementing the four pilot smart grid projects, substantial delays occurred due to the lengthy budget approval process and the procurement requirement of open competitive bidding while allowing international bidder participation.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
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Lesson
Project costing at design stage should realiably estimate the costs of all civil and other engineering costs and provide allowance for foreign currency fluctuations. The actual cost of one irrigation scheme turned out some $10 million greater than estimated at approval. This resulted in significant revision to the subproject design. The revision also incorporated the appreciation in special drawing rights against the US dollar and the domestic and international inflation that pushed down the real value of project resources.

Project Number: 40190-013
Project Name: Greater Mekong Subregion Flood and Drought Risk Management and Mitigation Project 
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Lesson
Processing teams need to ensure that the scope and cost estimate of projects are realistic and reflect the actual contexts. Changes in the procurement plan and safeguards document necessitated by the revisions in project scope and costs caused startup delays. The Viet Nam component had a large amount of undisbursed budget because of overestimations in the cost of civil works and land acquisition and resettlement. Advance actions to engage critical consultants early enough should have helped mitigate the delays.

Project Number: 41444-013
Project Name: Second Northern Greater Mekong Subregion Transport Network Improvement Project
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Lesson
The periodic maintenance payment rates may be standardized for future use. This project incorporated maintenance payments for the first year, allocated at prefixed rates, and with provision for an annual increase in subsequent years. Comparing the periodic maintenance payments made to the contractors with the actual expenditure incurred by the contractors, there is basis for standardizing periodic maintenance payment rates.

Project Number: 43574-025
Project Name: Uttar Pradesh Major District Roads Improvement Project
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Lesson
Government’s effective and responsive implementation of the program and use of funds highlighted the importance of being able to adjust allocations as demanded by the crisis. The government successfully utilized its ADB countercyclical loan to support its relief and stimulus program under its two pandemic emergency decrees and funds (FY2020 and FY2021). In particular; the Cabinet responded rapidly to the successive waves of COVID-19; allocating and reallocating budgets to work plans and projects where they were most needed at any one time.

Project Number: 54177-001
Project Name: COVID-19 Active Response and Expenditure Support Program
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