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Lesson
An agreement for collective maintenance is an essential element for the sustainability of subregional road projects, such as this project. A mechanism needs to be devised for the costs to be shared in proportion to the benefits received by the stakeholders.

Project Number: 34231-013
Project Name: Greater Mekong Subregion: Northern Economic Corridor Project in the Lao People’s Democratic Republic
Report Date:
Lesson
An effective project implementation entity is important when multiple financiers are involved, in order to ensure uniform standards in the construction of the project road. For the ADB-funded section of the road, the Lao PDR government could keep track of expenditures and verify if timelines and guidelines are followed. This was not the case with the PRC and Thailand financed sections. For example, the PRC used its own design standards for the road without conducting any dialogue with the Lao PDR government.

Project Number: 34231-013
Project Name: Greater Mekong Subregion: Northern Economic Corridor Project in the Lao People’s Democratic Republic
Report Date:
Lesson
For short periods these conditions are tolerable, but for a major outage such as that witnessed during the evaluation mission, these plans are inadequate. Losses to businesses due to outages included cancelled bookings at smaller hotels without backup generators, food spoilage due to no refrigeration, less customer traffic due to discomfort for patrons in the high temperatures, and inability to manage booking changes or take credit card payments due to inoperable electronic ticketing and payment systems.

Project Number: 40914-021
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
The CPTL project itself offers a meaningful demonstration effect. It was well constructed and delivered electricity on time and to agreed specifications, in turn allowing EDC to deliver electricity to its customers. Under the PPA, EGAT delivers electricity to EDC via CPTL as agreed. EDC meets its contractual payment obligations to EGAT and CPTL. EAC monitors tariffs and licensees, allowing project benefits to be passed on to the end-users in the form of lower tariffs.

Project Number: 40914-015
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Emergency power plans are outdated. An accident resulted in a 4-day power outage for Siem Reap. In times of grid outages, Siem Reap is served by EDC’s 10.5 MW diesel-powered plant combined with individually owned generator sets that run on diesel and fuel oil. Those who depend on EDC for power suffer rolling brown-outs, but the many people and small businesses that are not connected to the EDC plant and have no individual backup generators face total blackout, i.e., these people have no power at all, and often, no water.

Project Number: 40914-020
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Long-term sector engagement facilitated the enabling environment. ADB’s long-term focus on energy sector development has contributed to the improving electrification rates in Cambodia. Since 1992, ADB’s country strategy for Cambodia has always prioritized the energy sector (in coordination with other donors, especially the World Bank, and aligned with government interest). These efforts contributed to the 2001 Electricity Law that codified the sector's regulatory agencies. Confidence in the regulator is a key element of private sector participation in the sector.

Project Number: 40914-014
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Guardrails might mitigate against transmission line accidents. The CPTL line runs along regional highways on government-owned rights of way and by necessity the poles are close to the road. During the evaluation mission there was a vehicle accident that required 10 poles to be replaced. Although nobody was hurt in the accident and the coordinated CPTL–EDC emergency response plan was very effective, Siem Reap was without grid power for 4 days. One possible mitigation of such a risk might be guardrails along the road.

Project Number: 40914-019
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Sponsors can identify qualified local maintenance providers. CPTL’s international maintenance provider departed with the majority shareholders and was successfully replaced with a local provider. If the project sponsors or project management teams are able to find suitably qualified local operation and maintenance solutions, costs to the project are likely to be lower and an important opportunity to create skilled jobs is created from the outset.

Project Number: 40914-018
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Controls over project cash flows and bank accounts protect project interests. The loan structure included strict controls over the project bank accounts. Bank accounts specifically dedicated to the CPTL project needed to be opened and maintained both outside the host country (the offshore account) and within it (the onshore account). All amounts payable to the project are required to be paid into the offshore account and may only be withdrawn according to the payment priorities and amount limits specified in the loan document.

Project Number: 40914-017
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Additional resident mission resources could aid in due diligence. Whether this dispute and its potential to disrupt the business could have been prevented through a change in due diligence procedures requires consideration, although the causes of the dispute itself are not clear. All existing due diligence requirements appear to have been completed, including checklists, and PSOD used an external consultant and included the resident mission in its due diligence process, even without a formal due diligence requirement to do so.

Project Number: 40914-016
Project Name: (Cambodia) Power Transmission Lines Co., Ltd., Power Transmission Project
Report Date:
Lesson
Lack of baseline data hampered evaluation. Higher priority should have been given to ensuring that baseline data was collected and reported during project implementation. The data that should have been collected includes (i) benchmarking data, to provide MPAF management with objective reference points for impact evaluation corresponding with the needs of the port users and consumers; (ii) benefit monitoring data, to ensure that the project benefits actually accrue to the port users; and (iii) post-project performance evaluation data, to assess overall effectiveness of the project.

Project Number: 32525-013
Project Name: Fiji Ports Development Project (Loan 1902-FIJ)
Report Date:
Lesson
More rigorous risk assessment during project processing would have allowed for better monitoring of key assumptions during implementation. Related to the above lesson on better consultation, the project should have done a better risk assessment. A key impact assumption overlooked was elimination of the port service charge by shipping agents and companies.

Project Number: 32525-013
Project Name: Fiji Ports Development Project (Loan 1902-FIJ)
Report Date:
Lesson
More thorough stakeholder consultation during project processing could have led to a better project design. The project processing missions could have consulted the key project stakeholders more effectively. For example, a decrease in the port service charge by 50% in 2009 and its elimination by 2010 was cited as a project benefit, but this would have required agreement of the shipping agents and shipping companies to implement. The same applies to the Lautoka reclamation component, which should have been undertaken only after commitments by shipping companies and agents had been obtained.

Project Number: 32525-013
Project Name: Fiji Ports Development Project (Loan 1902-FIJ)
Report Date:
Lesson
The project could have benefited from more careful preparation. The project was prepared through a sequence of four processing missions, without the benefit of dedicated project preparatory TA. In retrospect, given the weaknesses in the DMF, the four departures from the original scope of work, and the methodological shortcomings in the EIRR calculation, the project could have benefited from more careful preparation.

Project Number: 32525-013
Project Name: Fiji Ports Development Project (Loan 1902-FIJ)
Report Date: