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Lesson
Continued timely adjustments in tariffs could make projects financially viable. The project financial reevaluation at completion concluded that the project was financially viable subject to continued timely adjustments in tariff. This has legal basis as Decree 124/2011/ND-CP allows WSCs to propose water tariffs in a tariff roadmap, which provincial governments approve. The tariff roadmaps of the participating WSCs included adjustments every two years. However, only one adjustment was made in 2019–2022 due to the impacts of COVID-19.

Project Number: 41456-043
Project Name: Water Sector Investment Program - Tranche 3
Report Date:
Lesson
Delayed and insufficient government counterpart funding disrupt and delay project implementation. Timely provision of counterpart funding to support relevant project activities, as required under the loan agreement, was not experienced in this project, necessitating changes in financing arrangements. Although ADB accommodated the changes, the lack of timely counterpart funding disrupted implementation and contributed to delays, cancellations, and loss of project benefits. Counterpart funding issues have a high potential to negatively impacts other similar projects in PNG.

Project Number: 44375-013
Project Name: Maritime and Waterways Safety Project
Report Date:
Lesson
Customizing the terms of reference of auditors to project requirements and ensuring that they are properly oriented on these requirements are critical to promoting project compliance with ADB financial management procedures. There were gaps in complying with the financial management conditions of the loan agreement, including the need to timely submit audit reports and auditor’s management letters and opinions.

Project Number: 49419-002
Project Name: Solar Rooftop Investment Program - Tranche 1
Report Date:
Lesson
Institutional arrangements to implement mandatory safeguard polices and reporting systems and gender action plans need to be established in the initial stages of the project. This is to avoid potential delays which could adversely impact project adherence to social and environmental safeguards and gender equality results. Adequate human, rechnical, and budgetary resources and strict monitoring by the PMU and ADB are required to ensure compliance.

Project Number: 41403-013
Project Name: Urban Water Supply Project
Report Date:
Lesson
Imprest fund and direct payment procedures could impact timely advance fund payment, leading to delays. Direct payment and reimbursement procedure was used by the project until 2018. This was discontinued in accordance with the policy change of the Government of India. Disbursements were on track— from the first disbursement on 12 September 2014—and reached 88.3% of the revised loan amount by the end of the original loan closing date of 30 June 2019.

Project Number: 42266-013, 42266-023
Project Name: Kolkata Environmental Improvement Investment Program - Tranche 1
Report Date:
Lesson
Weak financial management performance of executing agencies and systemic issues could affect timely compliance to covenants. Under this project, the covenants related to the annual project financial statements (APFSs) and audited entity financial statements (AEFSs) were fully complied with. However, submissions were delayed due to financial management and systemic issues. As a result, submission of annual audits conducted by statutory auditors appointed by the state government was likewise routinely delayed.

Project Number: 42266-013, 42266-023
Project Name: Kolkata Environmental Improvement Investment Program - Tranche 1
Report Date:
Lesson
The economic downturn triggered by COVID-19 pandemic presented an unmet opportunity for the project . Additional stipend funds could have enabled the enrollment of unemployed youth in TVET institutions. This would have transformed a period of low economic activity into a skills development opportunity. A recommended strategy is for the borrowing government to earmark funds in an escrow account, ensuring continued disbursement to beneficiaries after project closure by ADB.

Project Number: 42278-024
Project Name: Second Strengthening Technical and Vocational Education and Training Project
Report Date:
Lesson
Assessment of risks related to tariff policy implementation needs to be included in the project preparatory tehnical assistance to ensure that these risks are addressed in the project design. The risk assessment in the design phase did not adequately discussethe feasibility of fully implementing the water tariff policy, and accordingly plan the mitigation measures.

Project Number: 42266-013, 42266-023
Project Name: Kolkata Environmental Improvement Investment Program - Tranche 1
Report Date:
Lesson
Government budget regulations, particularly on official development assistance (ODA), the main source of ADB funding, need to be fully considered during appraisal as these could cause disbursement delays. In 2015, the allocation of ODA funds to project Implementation units was late and in 2016 no funds were allocated. This meant delays in project Implementation.

Project Number: 46293-005
Project Name: Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project
Report Date:
Lesson
The need for the cancelation of loan savings would be avoided by using realistic cost estimates during project preparation, as pointed out in the project completion report, is an appropriate lesson. However, this validation notes that the actual project cost was 28% lower than appraisal estimates, but the reduction in total ADB loan was 45%, i.e., from an estimate of $463 million to $253 million at program closing. The lower program cost reflected high-cost estimates, but higher counterpart funding was the bigger factor in the cancelation of the loan savings.

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program (Multitranche Financing Facility and Tranche 3)
Report Date:
Lesson
When a project provides substantial climate mitigation and environmental benefits, a project economist with strong background and experience in environmental valuation method can undertake the project economic analysis at appraisal. Usually, energy efficiency improvement projects have very low pay back periods and high economic internal rate of return. ADB should investigate the ways in which it can formalize the use of carbon prices in energy efficiency project economic analysis.

Project Number: 47051-002
Project Name: Chemical Industry Energy Efficiency and Emission Reduction Project
Report Date:
Lesson
Thorough project costing, including for the subproject components, is essential to smooth project implementation and success. Careful and precise estimation of costs and setting aside resources to cover future price escalations is required.

Project Number: 43405-024
Project Name: Urban Services Improvement Investment Program - Tranche 2
Report Date:
Lesson
The process of obtaining forest and wildlife clearance approvals in India is lengthy and complex and this should be factored into the project implementation timelines both at the design stage and while processing the scope extension. The compliance risk can be mitigated through advanced action by the implementing agency in managing land acquisition, forest clearance, and resettlement issues. The compliance with safeguards requirements should be linked to commissioning as retrofitting after transmission assets become operational poses challenges.

Project Number: 44426-016
Project Name: Green Energy Corridor and Grid Strengthening Project
Report Date:
Lesson
Early and regular involvement of the financial management staff and collaboration with other development partners in the PMGSY program is necessary to better design the management arrangements early in the project cycle. Significant financial management issues throughout the life of the projects would have been prevented by such a measure.

Project Number: 48266-002, 48226-004
Project Name: Second Rural Connectivity Investment Program (Tranche 2 and Multitranche Financing Facility)
Report Date:
Lesson
In selecting subprojects and project timelines, it is important, right at the design stage, to consider the Implementation complexity, experience of the executing agency, availability of specialized contractors, and available working season. Delays in the execution of subprojects under this tranche occurred due to adverse weather conditions at construction sites and the difficult work terrain.

Project Number: 40648-034
Project Name: Infrastructure Development Investment Program for Tourism - Tranche 3
Report Date: