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Lesson
The political economy of the country as well as of the local areas where projects are to be sited needs to be thoroughly understood and considered in the design of projects. The project assumptions that institutional and financial reforms would be adopted within a reasonable time frame and that demand for the improved water supply services could be established in Kosrae state proved false. Project preparation could have supported a more thorough understanding of the political economy, and the scope based on a stronger rationale and expressed demand.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
A well-thought-out project communications plan, backed by local capacity building, is needed for the successful implementation of projects in FSM. Information is often not widely shared in the FSM, and securing support for reforms can be particularly complex in this context. The Chuuk Public Utilities Corporation was able to effectively carry out its communications and outreach activities and secure support for reforms with the help of a well-defined operation, maintenance, and management contract. Project delays affected the momentum of activities in the other three states.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The ability of all participating utilities to successfully adopt and implement organizational changes to meet the project requirements should be assessed, with specialized external support in utility management provided as necessary.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
The risks posed by conditions for loan effectiveness and disbursements should be carefully assessed and considered in the project timeline. Project implementation was delayed by about 18 months as the conditions for loan effectiveness required the passage of appropriation bills in the National Congress and at least three of four state legislatures. Such projects can provide the required pressure for positive legal changes but can lead to startup delays.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
A narrow sector and geographic focus is more suitable for projects in the Federated States of Micronesia (FSM). In FSM, multistate and multisector projects bring added complexity and interdependence between institutions that do not otherwise have incentives to support each other. Future projects should consider a narrower focus in terms of sector and geographic scope, allowing for less dispersed efforts on physical and nonphysical project targets. This approach has been adopted for the ongoing Chuuk Water Supply and Sanitation Project.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
Timelines for policy changes and major reforms should also be realistic, knowing that building understanding and ownership can take time and the passage of legislation can be a lengthy process. Two municipalities declined to participate in the project because of their objection to the transfer of ownership and management of assets to a state government agency.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
Lack of tariffs and insufficient operation and maintenance (O&M) budgets threaten the sustainability of water supply and sanitation facilities in FSM. The water supply and wastewater components are unlikely to be sustainable because of the unwillingness to charge for services, and the insufficiency of annual O&M budgets.

Project Number: 35448-013
Project Name: Omnibus Infrastructure Development Project
Report Date:
Lesson
Overestimated project costs lead to unutilized loan amounts and wastage of commitment fees. At appraisal, the investment program was estimated to cost $920.0 million, comprising ADB loans of $730.0 million (79.4%) and government contributions of $190.0 million (20.6%). At completion, the program cost totaled $669.3 million, of which ADB provided $253.8 million (37.9%).

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program
Report Date:
Lesson
Key government policy changes need to be monitored for possible impacts on projects and project updates undertaken as necessary. Tranche 3 faced major resettlement challenges and experienced delays of up to 2.5 years beyond the initially approved loan closing date. This was because local authorities encountered difficulties in completing site clearance and subsequent compensation payments. Until the preparation of ADB’s project completion report, compensation payments have remained pending on (i) 3 subprojects because of

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program
Report Date:
Lesson
It is important to engage suitable safeguards experts to ensure that high-quality reassessments are undertaken to align safeguards implementation to changes in the project scope. Changes in scope are common in the implementation of large power transmission projects and timely updating of all relevant project documents to reflect and address such changes is necessary. In this project, scope changes were made especially to utilize the large loan savings that resulted from the overestimation of the project costs at appraisal.

Project Number: 44426-016
Project Name: Green Energy Corridor and Grid Strengthening Project
Report Date:
Lesson
The need to obtain varioushe need to obtain various forest and wildlife clearances should be considered at project planning and replanning stages. Processing of forest and wildlife clearances led to some delays in project implementation. The requirements for this should have been considered during the original planning stage and while processing the scope changes, with timeline extensions likewise considered to address the lengthy process of obtaining these clearances in India.

Project Number: 44426-016
Project Name: Green Energy Corridor and Grid Strengthening Project
Report Date:
Lesson
Technology innovations need to be encouraged, but caution requires that innovations be verified during implementation. The verification may entail additional trials and time, which could lead to longer implementation periods.

Project Number: 47051-002
Project Name: Chemical Industry Energy Efficiency and Emission Reduction Project
Report Date:
Lesson
Upgrading and retrofitting for energy efficiency improvements during the production process may result in mutual interactions and uncertain impacts, which can cause implementation delays and safety risks. These factors should be noted by future device-upgrading projects in factories; for example, factories should be equipped with more safety and environmental protection personnel, and enough time should be reserved for projects that include upgrading of production processes.

Project Number: 47051-002
Project Name: Chemical Industry Energy Efficiency and Emission Reduction Project
Report Date:
Lesson
The Shah Deniz Gas Field Expansion Project is transformational. It has expanded the development of one of the largest gas fields in the world, which will help (i) more than double gas production from the field; and (ii) increase the country’s gas production by 67% during the same period. This will help strengthen the Azerbaijani economy and create more fiscal space for economic diversification.

Project Number: 49451-002
Project Name: Shah Deniz Gas Field Expansion Project
Report Date:
Lesson
The partial credit guarantee (PCG) modality was a good choice for this transaction. It enabled ADB sovereign operations to come as close as possible to enabling the IA to obtain commercial financing for a commercially viable project in a country with a below-investment-grade rating. With a One ADB approach, it showed the way to achieve close and collaborative work between ADB’s sovereign and nonsovereign departments. Its 95% cover was important because it facilitated the raising of commercial finance.

Project Number: 49451-002
Project Name: Shah Deniz Gas Field Expansion Project
Report Date: