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Lesson
Apart from offering concessional interest rates,ADB and China National Investment and Guaranty Corporation (I&G) could explore providing enhanced value-added services for ongoing and future financial intermediation loan initiatives in air quality improvement or climate change programs. The global economic slowdown dampened enthusiasm for green investments, while the rise in euro interest rates and the reduction of yuan lending rates since 2022 presented additional challenges for green financing eligible subprojects within the greater Beijing–Tianjin–Hebei region.

Project Number: 50096-002
Project Name: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project
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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)
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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)
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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)
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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)
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Lesson
Proper location of the project management unit is crucial to smooth implementation. Daily coordination and supervision were initially undertaken across two distant sites: the construction implementation unit (UIP) in East Kalimantan and the project implementation consultant in West Kalimantan. This caused coordination difficulties on implementation issues arising from the field. In 2016, UIP West Kalimantan was made in charge of project management. This improved project management and coordination, making implementation smoother for the rest of the project duration.

Project Number: 41074-013
Project Name: West Kalimantan Power Grid Strengthening Project
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