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Lesson
Sufficient lead time is needed for procurement, especially under the two-stage bidding process. Higher project readiness and clarity in employer’s requirements, including engineering designs and specifications, are critical inputs for bid documents.

Project Number: 42378-017
Project Name: Power System Expansion and Efficiency Improvement Investment Program (Tranche 3)
Report Date:
Lesson
Project financial auditing needs to be synchronized with the project Completion review timeline which requires disclosure of the report within 12 months of the financial closing of the loan account.

Project Number: 42378-017
Project Name: Power System Expansion and Efficiency Improvement Investment Program (Tranche 3)
Report Date:
Lesson
The establishment of a project performance management system (PPMS), which was not covenanted in the grant agreement, could have provided a useful source of data on which to develop an economic analysis model; identify, quantify, and value economic benefits; and assess the efficiency of the project. Because of the emergency nature of the project, baseline data could be collected during project implementation to enable data comparison after project completion.

Project Number: 52129-001
Project Name: Cyclone Gita Recovery Project
Report Date:
Lesson
Design and monitoring frameworks (DMFs) for emergency assistance-type projects could be better designed with a focus on project outcome targets instead of project outputs. The latter are difficult to determine because of insufficient time to detail specific equipment requirements. Streamlining DMFs by avoiding repetition of indicators will also help in focusing the DMF.

Project Number: 52129-001
Project Name: Cyclone Gita Recovery Project
Report Date:
Lesson
ADB needs to emphasize the recruitment of staff with adequate financial qualifications for the project management unit's (PMU) finance function. Under this program, annual project financial statements (APFSs) and audited entity financial statements were submitted late to ADB for various reasons, including project staff lacking financial management skills and expertise. In several instances, disclaimers of opinion on APFSs and audit qualification reports were issued.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Hydropower plant (HPP) projects are complex engineering projects requiring comprehensive feasibility studies, strict Implementation in line with study findings and recommendations, and continued engagement by the project management office and implementing agencies to actively assess and flag any issues after Completion and throughout the warranty period. This was brought to focus by the Waranghoi HPP experience that required prompt action to mitigate overtopping of an intake facility in November 2022.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
ADB may need to consider greater flexibility to allow an extension of the availability period of loans under the multitranche financing facility, where deemed appropriate. Because of various delays, the investment program's availability period was extended to 10 years and ended on 24 November 2020. Government requests to extend the availability beyond 2020 were declined by ADB.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Delegation to resident missions needs to carefully consider project complexity and expertise in the resident mission and ensure a smooth handover from processing to Implementation by having the project officer during processing remain as project officer during Implementation, until at least the award of the first major procurement package. During Implementation, the Sector Group needs to retain ongoing quality assurance responsibility and conduct annual audits. Continuity and adequate oversight on the project management unit also needs to be ensured throughout project Implementation.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
An alternative approach for the Completion of projects halted by the closure of the availability period of MFF-financed loans needs to be explored. This is especiallly important for projects with considerable stranded investments (e.g., stranded investments in the Ramazon HPP included $3 million for transmission line and $3 million for site Preparation). To continually implement the Ramazon HPP, the PNG Power Ltd.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Adequate consultations with local populations throughout the project cycle are a must especially when land ownership is ambiguous and no outstanding land compensation cases are identified.Local populations forcibly entered the two HPP project sites demanding compensation for historical events, in one of which sites, violence was used. The historical events were not identified by due diligence, which concluded that there were no land acquisition and involuntary resettlement impacts.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Early engagement with provincial governments can contribute to identifying and avoiding delays due to land acquisition issues. Based on the experience of forcible entry by local communities into two HPP sites, new projects are emphasizing the role of social safeguards and early consultation of local populations. The positive experience of engaging with the provincial government, which contributed to the eventual delivery of the Divune HPP under tranche 1, can serve as a lesson for future projects.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Project management units and implementing agencies need to verify the Completion and functionality of all project aspects before authorizing final payments. This is to ensure that all defects and deficiencies are addressed before final payments are made. For example, a key deficiency under this program was the absence of an operation and maintenance plan with confirmed budget allocations for all projects, a deficiency that meant non compliance with a covenant.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
ADB and its consultants should review the historical performances and previous challenges of similar projects when preparing implementation schedules at approval. The Tranche 1 project included a highly optimistic implementation schedule. The Tranche 2 project was also overly optimistic, although to a lesser extent. Several challenges in procurement, land acquisition, and construction led to significant delays.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
A simpler project and phased implementation need to be considered in future similar interventions to allow for sufficient time and attention to the design of subprojects and monitoring arrangements. The feasibility study for the Warangoi hydropower plant proposed short-term works (i.e., constructing a river training wall) and long-term works (i.e., further river retraining and diversion) which were contingent on hydraulic modeling. However, the modeling was not carried out despite water stream measurement being a loan covenant.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
Report Date:
Lesson
Donor and implementing agency collaboration is critical to the successful implementation of the sectoral, build back better approach to disaster reconstruction. Even while the Ministry of Foreign Affairs and Trade was separately managing its own bilateral funding and reconstruction works in another area of the Nuku’alofa electricity network, the planning and technical teams for this project and that of the ministry worked in close collaboration to ensure that the civil works in both areas were meeting quality standards and target timelines.

Project Number: 52129-001
Project Name: Cyclone Gita Recovery Project
Report Date: