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Lesson
The project was cofinanced by several external aid agencies. This modality proved to be suitable for financing the rapid development of the road subsector. In future road projects financed by multiple aid agencies, the Azer Road Service Open Joint-Stock Company (ARS) needs to strengthen its project management capacity in the aspects of financial accounts, project scheduling, and quality control.

Project Number: 35457-013
Project Name: East-West Highway Improvement Project
Report Date:
Lesson
Faster disbursement process. Disbursement was slower than specified in the conditions of contracts. In addition, local funds were disbursed much later than ADB funds. The government needs to reduce the time for disbursement of funds to improve cash flow of the contractors.

Project Number: 30240-013
Project Name: Greater Mekong Subregion: Cambodia Road Improvement Project
Report Date:
Lesson
The contractor for the Gazakh-Georgian border section was perhaps not familiar with the country's situation at the start, and this caused mobilization delays and difficulty in finding suitable local subcontractors. In future road projects, the Ministry of Transport (MOT) needs to provide bidders with adequate local information at pre-bidding meetings, and publish information on the cost of locally available inputs (materials, equipment, and labor) on its website to allow bidders to submit sensible bids.

Project Number: 35457-013
Project Name: East-West Highway Improvement Project
Report Date:
Lesson
ADB teamwork. ADB needs to have better teamwork approach between its operational support divisions for activities, such as consultant recruitment where support divisions have more authority over approvals. The project completion review mission observed that absence of internal coordination created the initial delay in the consulting selection process.

Project Number: 30240-013
Project Name: Greater Mekong Subregion: Cambodia Road Improvement Project
Report Date:
Lesson
Azerbaijan experienced sharp increases in the prices of fuel, utilities, and major road construction materials between project appraisal and detailed design. These led to significant changes in the project scope and financing plan. In future road projects, greater due-diligence needs to be undertaken during project design and formulation, which includes carrying out adequate cost estimations, setting aside enough resources to cover contingencies, and shortening the interval between appraisal and implementation.

Project Number: 35457-013
Project Name: East-West Highway Improvement Project
Report Date:
Lesson
Match covenants with jurisdictions. One covenant required government approval of the road law and transport policy. However, the formulation of the road law and transport policy that was expected under the project was delayed. The requirement should not have been a loan covenant because the Ministry of Public Works and Transport (MPWT) did not have jurisdiction over rural roads and thus lacked the ability to comply fully. Loans should not include covenants that impose requirements on an executing agency that lacks full jurisdiction to meet them.

Project Number: 30240-013
Project Name: Greater Mekong Subregion: Cambodia Road Improvement Project
Report Date:
Lesson
The project was the first of the ADB-assisted road projects in Azerbaijan. Many lessons were learned during project preparation and implementation. The main lessons are summarized below:

Project Number: 35457-013
Project Name: East-West Highway Improvement Project
Report Date:
Lesson
The implementation delay for the local roads component resulted in the shifting of this component to subsequent ADB-assisted projects. As local road development can efficiently bring project benefits to rural areas, especially to the poor, in future road projects more attention should be paid to the development of local roads, an integral part of the country's road network.

Project Number: 35457-013
Project Name: East-West Highway Improvement Project
Report Date:
Lesson
During implementation, the civil work contractor demonstrated resilience and a strong ability to engage in complex civil works under the challenging geological and climate conditions. Civil works contracts under future projects need to offer greater incentives to contractors for better performance and penalize those contractors with poor performance.

Project Number: 36257-013
Project Name: Southern Transport Corridor Road Rehabilitation Project
Report Date:
Lesson
Sufficient contingency is needed to cover cost increases. For future projects, a design-build contracting can ensure more sophisticated engineering and mitigate the risk of price escalation.

Project Number: 36257-013
Project Name: Southern Transport Corridor Road Rehabilitation Project
Report Date:
Lesson
As the Kyrgyz Republic is a mountainous country and the project area is known for its slope instability, these challenges should have been taken into account during project preparation. Careful and rigorous technical design and appropriate advance actions would have contributed to a higher degree of project readiness for implementation.

Project Number: 36257-013
Project Name: Southern Transport Corridor Road Rehabilitation Project
Report Date:
Lesson
The completion of the project was delayed by about 1 year, primarily due to the failure to finalize cofinancing arrangements with Organization of the Petroleum Exporting Countries (OPEC). This issue might have been avoided if the final solution (financing by the government) had been adopted faster. In the future, the government and ADB need to select cofinancing partners carefully.

Project Number: 36257-013
Project Name: Southern Transport Corridor Road Rehabilitation Project
Report Date:
Lesson
Reliable data are essential to identifying problems and monitoring progress. However, the project progress reports often lacked substance, contained stale information, and did not effectively address implementation issues. The requirement of thorough reporting could have been better formulated in the supervision consultant's terms of reference. MOTC needs to review the project progress reports.

Project Number: 36257-013
Project Name: Southern Transport Corridor Road Rehabilitation Project
Report Date:
Lesson
The project road is part of a Central Asian Regional Economic Cooperation (CAREC) corridor undergoing rehabilitation under various project supported by several financing institutions during the same period. As these projects are not expected to be completed at the same time, the benefits of the complete corridor will not be fully achieved until the entire Osh- Sary-Tash-Irkeshtam-Karamyk road is improved. This is expected to happen in 2012.

Project Number: 36257-013
Project Name: Southern Transport Corridor Road Rehabilitation Project
Report Date:
Lesson
Project readiness. Advance procurement was used for the first time in the recruitment of consultants under a project with Directorate General of Highways (DGH), and consultant recruitment was not a cause of delays. The time for completing the procurement process for the civil works, however, was underestimated; the process took 1 year longer than planned. The lesson here is that the time required for completing the various steps has to be estimated much more carefully, on the basis of experience.

Project Number: 34159-013
Project Name: Road Rehabilitation - 2 Project
Report Date: