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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 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:
Lesson
For Asian developing countries with a well developed local capacity in electric power or other infrastructure sectors, partnership with an international consulting firm in the implementation arrangements can be an effective mechanism to enable the transfer of state-of-the-art management and operational practices to national companies and agencies.

Project Number: 34476-015
Project Name: Gansu Clean Energy Development Project
Report Date:
Lesson
Addressing adequately the social and environmental impact of hydropower development projects during preparation and making sure the local communities affected by the development participate in the benefits of the investment is an important lesson to ensure longer term project sustainability. To achieve this goal, funding needs to be committed before loan approval to ensure that such issues will be addressed during implementation, and independent monitoring mechanisms put in place to measure the impact on local communities.

Project Number: 34476-014
Project Name: Gansu Clean Energy Development Project
Report Date:
Lesson
Strong project ownership is essential for successful implementation. In evaluating project ownership, attention must be given during appraisal not only to investment planning priorities but also to whether counterpart funding has been committed, key staff are in place, coordination mechanisms across and within different government levels are working effectively, and an institutional capacity exists to address social and environmental issues affecting the project’s long-term sustainability.

Project Number: 34476-013
Project Name: Gansu Clean Energy Development Project
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
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
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: