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Lesson
The use of a technical assistance (TA) loan for project preparation rather than including project preparation in the investment loans is fully justified because (i) it enabled project costs, revenues, and social and environmental impacts to be more accurately assessed before preparation and signing of the investment loan; and (ii) it reduced the borrower's commitment charges caused by implementation delays of 20 months.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
The status of completion should be carefully examined before loan closure. In the event that there are outstanding activities, the contractual arrangements for completion should be carefully defined and committed before loan closure. It is a risk to assume that completion can take place under another loan with an unknown time frame and be dependent on a third-party consultant. Preparation of detailed design and bidding documents for the equipment packages should not have been included in the scope of the TA loan.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
More strategic and participatory planning is desirable. LGU chief executive officers (CEOs) often selected subprojects and made investment decisions on their own rather than on the basis of strategic local development plans. Although the project assisted some LGUs in formulating comprehensive land use plans, it did not succeed in ensuring that such plans are standard tools for investment planning despite an LBP requirement mandating that LGUs possess annual development plans to qualify for loan approval.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
A single executing agency could have simplified implementation. The report and recommendation of the president (RRP) and the loan agreement both established an unnecessary overlap of functions between LBP and the DILG. This could have been avoided through a more straightforward and functional separation of roles: LBP to implement Part A, and the DILG to limit its role to Part B. The existence of two executing agencies under the project should have been avoided.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
In a fixed-fee services contract, inclusion of the value of the project contingency in calculation of the advanced payment should be carefully explained in the request for proposals. Similarly, the regulations applied to value-added tax (VAT) duties on national subconsultancy services should be clearly stated.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
Revenue-earning subprojects were favored. Many of the implemented subprojects e.g. public markets, public transport terminals, and water supply schemes are good revenue earners or have the potential to be good revenue earners. These subprojects provide essential economic and environmental benefits that will have long-lasting positive impacts. It is expected that most of these investments will be sustainable and will lead to further related investments to expand infrastructure networks.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
The value of capacity development. Although not easily measurable in terms of monetary impacts and outcomes, capacity development support made an important contribution to the project. The investment of $6 million through an Nordic Development Fund (NDF) loan to the DILG was an unprecedented engagement in favor of LGUs; this amount was augmented with a substantial in-kind operational counterpart contribution by the DILG.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
In any project implementation, it is much more efficient to identify and correct problems in the initial part of the project period. The frequency of ADB review missions in the initial phase of the project achieved this efficiency and did a great deal to prevent further delays. The lesson is to have a higher frequency of review missions in the early phase of project implementation.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
Participating local government units (LGUs) obtained several benefits. The project generated strong interest among LGUs. Most LGUs appreciated the loan terms (particularly the fixed long-term nature of ADB funds) and the assistance and services provided by the Land Bank of the Philippines (LBP) and the Department of Interior and Local Government (DILG). LGUs also appreciated receiving assistance in modernized governance systems, including assistance in rationalized planning (comprehensive development plans), property tax administration, and revenue enhancement.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
LGUs see banking requirements as too tedious. Despite various introductory workshops, some LGUs kept complaining about the documentation requirements. The assistance of DILG and its consultants has helped ease their concerns, but LGUs reported that at times they felt like they were being forced into compliance with procedures that other official development assistance (ODA) providers (like Japan Bank for International Cooperation) had already relaxed. Both ADB and LBP procedures could have been simplified to better bond LGU customers with the project.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
Senior staff of both the Vietnam Expressway Corporation (VEC) and Ministry of Transport (MOT) had significant experience in implementing large- scale road development projects. Both agencies had sufficient capacity to carry out the project, and the capacity was further enhanced through the project. The delays in resettlement planning were mainly caused by low capacity of project provinces and districts but not of the executing or implementing agencies.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
Capital grants are attractive, but should only be given as a reward for good performance. In the first years of the project the DILG offered capital grants for eligible subprojects. These were discontinued in 2005 after the cancellation of the DILG's grant source. After that, many LGUs stopped subproject preparation work because of the (perceived high) costs of ADB loans. The commitment and buy-in of LGUs was weak at times. Many LGUs were more oriented toward grants than the lending facility.

Project Number: 30551-013
Project Name: Mindanao Basic Urban Services Sector Project
Report Date:
Lesson
The multitranche financing facility (MFF) mode was mainstreamed into ADB's financial operations in July 2008. (The MFF was introduced in August 2005.) TA and investment loans can be combined in an MFF as separate tranches. However, use of an MFF should not be recommended for large and complex projects such as the project highway because there is high risk of project cost overrun. The estimated total cost increased from $620 million at the TA loan appraisal to $1,216 million at the investment loan appraisal.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
The employment of an independent design appraisal consultant has been expedient and has avoided delays. Consideration should be given to the inclusion of an independent appraisal consultant in future large and complex design preparation projects with an underresourced implementing agency.

Project Number: 33307-023
Project Name: Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project
Report Date:
Lesson
No new lessons

Project Number: 31280-013
Project Name: Validation of the Completion Report on the Road Sector Development Project [Loan 1986-SRI]
Report Date: