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Lesson
Lessons learned from earlier interventions need to be incorporated during implementation. An earlier PPER for the Madhya Pradesh Power Sector Development Program implemented from 2002 to 2007 had highlighted the need to reduce AT&C losses by improving billing and collection efficiency and discouraging electricity theft by taking legal action against pilferers as a necessary follow-up to ensure financial sustainability.

Project Number: 32298-013, 32298-023, 32298-033, 32298-043, 32298-053, 32298-063, 32298-073
Project Name: Madhya Pradesh Power Sector Investment Program
Report Date:
Lesson
Multitranche financing facility design, when appropriate, can also bring benefits to the rural poor. The MFF enabled augmentation of the transmission and distribution system. The energy supplied to consumers has increased by a factor of 2.3 in 13 years (Table 3). Through initiatives taken by the government, there was increase in supply to rural areas with more low-income households. The consumption in rural areas increased by a factor of 2.1 from 13,891 GWh in FY2012 to 29,180 GWh in FY2019.

Project Number: 32298-013, 32298-023, 32298-033, 32298-043, 32298-053, 32298-063, 32298-073
Project Name: Madhya Pradesh Power Sector Investment Program
Report Date:
Lesson
Flexibility of multitranche financing facility design and process contributes to greater efficiency and harmonization of funds in the sector. As the MFF was implemented concurrently with several other initiatives to improve the state’s electrical distribution systems (para. 12), it was essential for each successive tranche to be specifically designed to fill gaps not covered by the various ongoing schemes to ensure the best use of the ADB loan funds.

Project Number: 32298-013, 32298-023, 32298-033, 32298-043, 32298-053, 32298-063, 32298-073
Project Name: Madhya Pradesh Power Sector Investment Program
Report Date:
Lesson
The DSPP entity undertook non-operational decisions relating to the company name and accounting practices without gaining the required approvals from the lenders before implementing the decisions. While these matters have been satisfactorily explained subsequently, they raise concerns for lenders seeking to confirm that the project entity is being managed in accordance with the requirements of the loan documents; significant time is expended to work through these issues as they are discovered.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
The hedging policy approved at appraisal did not reflect the foreign exchange hedging instruments available in the local market. When exchange rates deteriorated, the hedging policy and the required sponsor support needed to be renegotiated. It is fairly usual to have rolling foreign exchange hedging requirements, rather than the life-of-loan program that was originally documented, and better investigation of the likely options that would be available to the project could have reduced the work required to adapt to the situation as it arose.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
RPL is a strong company with extensive resources, enabling it to quickly identify appropriate technology, supervise quality construction, and be a good corporate partner within the communities it serves. To meet the requirements of CERC’s tariff regulations, RPL needed to develop and construct a project in a short period of time that would withstand the local climate conditions. The project’s performance above expectations is due to RPL’s decisions about technology, design, and construction quality.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
ADB’s long-term focus on energy sector development in India has supported all aspects of the improving energy situation in the country. Work done by ADB has contributed to policy changes, new infrastructure, and increased private sector participation in the delivery of electricity to end-users. Established knowledge of the local situation, and particular focus on renewable energy enabled ADB to respond quickly to the policy changes supporting solar power and provide timely support to an important client to deliver the first utility-scale solar PV plant in India.

Project Number: 45915-014
Project Name: Dahanu Solar Power Project
Report Date:
Lesson
Reassessment and careful choice of independent marker operator. The government should look carefully again at the need for an independent market operator (IMO). As far as the evaluation could ascertain, use of the Philippine Electricity Market Corporation (PEMC), which is not an IMO, has had no obvious adverse repercussions to date. This finding suggests that it could be counterproductive to force the pace of change to establish the IMO that the Electric Power Industry Reform Act and project design called for, and the government undertook to create but did not.

Project Number: 36018-013
Project Name: Electricity Market and Transmission Development Project
Report Date:
Lesson
Time needed to deal with rights-of-way. Projects such as this one need to allow sufficient time to assess and address the issues in acquiring right-of-way. The project’s compensation and resettlement problems could have been resolved more quickly if those affected had been made better aware of the property valuation process and the impact the project would have on them. The project could have established a mechanism to deal with disputes, and local government institutions could have been engaged to help resolve them.

Project Number: 36018-013
Project Name: Electricity Market and Transmission Development Project
Report Date:
Lesson
The timely availability of counterpart funding prevented cash flow problems from arising, which could have delayed project completion. Because counterpart government funding was timely, there were no delays and the project was completed early.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program— Erlongshan Hydropower Project
Report Date:
Lesson
The project was the first tranche of the first MFF investment program developed in the PRC.17 Based on the experience from this project, the MFF modality should be suitable for future projects in the PRC where there are discrete components. The MFF enabled sequential construction and financing requirements that were funded by separate tranches, thus limiting unnecessary duplication of administrative effort and approvals.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program— Erlongshan Hydropower Project
Report Date:
Lesson
The project demonstrated the importance of retaining qualified and competent consultants at the project preparation stage. Knowledge of the project design and implementation that was transferred from ADB to the government was highly valued, and officials expressed the view that this was more important than the loan financing.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program— Erlongshan Hydropower Project
Report Date:
Lesson
Continuity of officials and staff at the executing agency, implementing agency, and ADB, who were involved in the development, implementation, and operation of the project, was maintained throughout the project. This continuity, together with stability in personnel capacity, was an important factor in the success of the project. While this lesson may be self-evident, it is not easily achieved and is often overlooked.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program— Erlongshan Hydropower Project
Report Date:
Lesson
The success of the Erlongshan Hydropower Project resulted from a combination of strong government ownership and the commitment of the Erlongshan Hydropower Company. These factors ensured that any actual or potential problems were quickly and effectively resolved.

Project Number: 39652-023
Project Name: Gansu Heihe Rural Hydropower Development Investment Program— Erlongshan Hydropower Project
Report Date:
Lesson
Continuity and stability in project officers are essential elements for successful implementation, especially during the early implementation phases. Delegation of implementation responsibility to the resident mission at an early stage of the project cycle is also good practice, provided locally recruited staff have sufficient familiarity with ADB operational and procurement procedures.

Project Number: 34476-016
Project Name: Gansu Clean Energy Development Project
Report Date: