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CSV
Lesson
Acquisition of land early on and advance actions on contracts were appropriate in avoiding unnecessary delays and in facilitating project implementation.

Project Number: 35466-013
Project Name: Dhaka Clean Fuel Project
Report Date:
Lesson
It is prudent for ADB to consider alternative fuels when appraising the cost and benefits of oil-fired generation plants. Alternative fuels consist of renewable energy sources and thermal fuels, including clean coal options. Private sector support to the power sector is optimized with a comparative analysis of real fuel options.

Project Number: 34912-014
Project Name: AES Kelanitissa Power Project in Sri Lanka
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:
Lesson
Timely acquisition of land is a fundamental requirement for successful completion of a project. The acquisition process should start earlier, maybe before appraisal, so that possession of land can be achieved before loan effectiveness.

Project Number: 35466-013
Project Name: Dhaka Clean Fuel Project
Report Date:
Lesson
Dependence on consultants for project preparation and implementation undermines the initiatives of executing agencies� staff for implementing projects on time and for maintaining satisfactory standards. Therefore, executing agencies should build in-house capability to prepare and implement projects.

Project Number: 35466-013
Project Name: Dhaka Clean Fuel Project
Report Date:
Lesson
The design and supervision consultancy contract should ensure that the supervision services are made available during construction even if the mobilization of construction work is delayed by a considerable period.

Project Number: 35466-013
Project Name: Dhaka Clean Fuel Project
Report Date:
Lesson
The loan covenants should be clearly set during project design so that they can be monitored properly during project implementation.

Project Number: 35466-013
Project Name: Dhaka Clean Fuel Project
Report Date:
Lesson
The onlending facilities to the private sector through commercial banks worked well under the project. This modality may also be used in future for private sector financing.

Project Number: 35466-013
Project Name: Dhaka Clean Fuel Project
Report Date:
Lesson
The executing agencies should use the advance-action provision of ADB to their best. As a result, contracts could be signed immediately after loan effectiveness and the project could be successfully completed.

Project Number: 35466-013
Project Name: Dhaka Clean Fuel Project
Report Date:
CSV