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Lesson
Proper execution of project administration activities relies on the capacity and commitment of borrowers and agencies involved. It is crucial that executing and implementing agencies are well informed of ADB operational procedures and requirements, especially with respect to financial management. This allows a concerned agency to carry out the project activities appropriately and ensure timeliness.

Project Number: 41340-013
Project Name: Advanced Electricity Metering Project
Report Date:
Lesson
Timely and appropriate change in the project scope can help enhance project performance. For example, adjustments on the project design during the early stages of implementation can enhance project results at completion. A project scope that requires corrective actions needs to be addressed during midterm review to enable the project to achieve better results.

Project Number: 41340-013
Project Name: Advanced Electricity Metering Project
Report Date:
Lesson
The implementation of large investment programs could be streamlined with the engagement of a loan-funded project management consultant from the beginning using advance procurement.

Project Number: 37192-023, 37192-033, 37192-043, 37192-044
Project Name: Power Transmission Enhancement Investment Program (Tranche 4 and Multitranche Financing Facility)
Report Date:
Lesson
A design and monitoring framework could become more useful and informative for assessment if it could include quantifiable indicators for capacity building when the requirement is identified during program appraisal.

Project Number: 37192-023, 37192-033, 37192-043, 37192-044
Project Name: Power Transmission Enhancement Investment Program (Tranche 4 and Multitranche Financing Facility)
Report Date:
Lesson
A timely and appropriate change in scope responding to actual project needs emerging from implementation can help utilize available loan resources in a more targeted and efficient manner, conduct more activities, and deliver more outputs that contribute directly to achieving the intended outcome, and maintain and/or strengthen the project's relevance and effectiveness.

Project Number: 44426-014
Project Name: National Grid Improvement Project
Report Date:
Lesson
The project focused on the expansion of the transmission and distribution systems in seven towns while the executing agency availed funds from other government-funded schemes to concurrently implement a far larger project for a similar expansion of the transmission and distribution system in the remaining areas of the state. Obtaining information related to complementary physical investments, especially during the loan review missions, could help facilitate a better assessment of the project's development impact.

Project Number: 41626-013
Project Name: Bihar Power System Improvement Project
Report Date:
Lesson
The project design included measures to improve billing and collection. Considering the excessive aggregate technical and commercial losses, a project design could include measures for reducing commercial loss that were being promoted by the government and being implemented in other areas e.g., high voltage distribution system in urban areas, use of aerial bundle conductors, and segregation of agricultural and domestic power supply in rural areas.

Project Number: 41626-013
Project Name: Bihar Power System Improvement Project
Report Date:
Lesson
To ensure project success, the commitment, ownership, and accountability of an executing agency are critical factors when designing a project and formulating its implementation plan. These need to be supported by adequate expertise and capacity of the agency in managing project implementation and complying with ADB safeguard requirements and loan covenants.

Project Number: 44426-014
Project Name: National Grid Improvement Project
Report Date:
Lesson
Mobilizing local project management expertise can be beneficial. The modification of the project management consulting contract to increase the inputs of national staff proved beneficial. Local and national staff who work closely with experienced international consultants as part of a team of a competitively selected consulting firm have the opportunity to acquire skills and hone them. This is good and in line with ADB's capacity development objectives in developing member countries.

Project Number: 42401-014
Project Name: Power Distribution Enhancement Investment Program (Multitranche Financing Facility)
Report Date:
Lesson
A rational tariff policy is essential for improving the financial viability of a distribution utility. Two tariff revisions (in 2016 and 2021) helped improve the financial viability of Azerishiq's distribution-strengthening projects. Although the upgrade of distribution systems is still not fully financially viable, an improving financial internal rate of return (into positive territory) illustrates the benefits of lifting tariffs toward full cost recovery.

Project Number: 42401-014
Project Name: Power Distribution Enhancement Investment Program (Multitranche Financing Facility)
Report Date:
Lesson
The results-based lending (RBL) modality provides flexibility to adjust targets adversely affected by unforessen adverse events such as COVID-19. During 2020–2022, the COVID-19 pandemic affected the demand for electricity, lowering the State Electricity Company's (PLN) revenues and creating uncertainty in its investment plans. Sourcing equity financing and implementing ongoing projects within PLN became difficult under such conditions and adjustments were needed in scope and time targets of ongoing works.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Budget approval and procurement of new technologies being piloted could take time and cause implementation delays; when installed, rigorous monitoring of the performance of the new technologies is required to ascertain benefits and draw lessons from the pilot experience. In implementing the four pilot smart grid projects, substantial delays occurred due to the lengthy budget approval process and the procurement requirement of open competitive bidding while allowing international bidder participation.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Misperceptions about the new technologies being can adversely affect their adoption. A misperception among postpaid customers that prepaid meters would lead to increased electricity costs resulted in lower-than-expected migration postpaid to prepaid meters. In addition, the full benefits of smart meters are currently not being achieved by either PLN or the business consumers because the smart meters are currently being used only to read meters remotely and at times even this is not possible due to the weak communication infrastructure in some areas.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
The cost categories required to be reported in the audited program financial statements (APFS) need to align with the categorization at appraisal so as not to cause problems in reporting. PLN faced difficulty in estimating the financing charges during implementation at appraisal stage. In addition, PLN raised a concern on the disclosure provision regarding APFS due to confidentiality requirements. The cost categories reported in the APFS were not aligned with the categorization used at appraisal, due to which changes to reporting formats were needed.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Adequate safeguard reporting arrangements with frequency and report templates included in the construction contracts and technical guidance on the implementation of safeguard actions can strengthen project compliance to ADB safeguard requirements. The introduction of program actions through the RBL programs has improved PLN staff's awareness and capacity concerning ADB safeguard requirements. The grievance redress mechanism was found to be an area for further improvement during the evaluation of the previous RBL in Sumatra.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date: