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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
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
An appropriate training of the implementing agency on ADB’s safeguard policies can ensure compliance and accurate budgeting of cost of safeguards implementation. This should factor in the implementing agency’s capacity and structure in preparing and updating safeguards assessments and plans as well as in monitoring and implementation.

Project Number: 44426-016
Project Name: Green Energy Corridor and Grid Strengthening Project
Report Date:
Lesson
A close coordination mechanism among project agencies during the design phase can ensure the tracking of developments and continuous review. POWERGRID as the executing agency was responsible for the construction, installation, and commissioning of the transmission assets while the utilization of the project’s assets was the responsibility of National Load Dispatch Center. The asset’s utilization is dependent on external factors like phasing of generation capacities, system management, and demand from the consumers.

Project Number: 44426-016
Project Name: Green Energy Corridor and Grid Strengthening Project
Report Date:
Lesson
Optimal contingency allocations will minimize partial loan cancellation.

Project Number: 40648-034
Project Name: Infrastructure Development Investment Program for Tourism - Tranche 3
Report Date:
Lesson
Optimal contingency allocations will minimize partial loan cancellation.

Project Number: 40648-013, 40648-037
Project Name: Infrastructure Development Investment Program for Tourism (Tranche 4 and Multitranche Financing Facility)
Report Date:
Lesson
Overestimated project costs lead to unutilized loan amounts and wastage of commitment fees. At appraisal, the investment program was estimated to cost $920.0 million, comprising ADB loans of $730.0 million (79.4%) and government contributions of $190.0 million (20.6%). At completion, the program cost totaled $669.3 million, of which ADB provided $253.8 million (37.9%).

Project Number: 42039-033, 42039-036
Project Name: Power Transmission Investment Program
Report Date:
Lesson
While the timely and effective utilization of project savings can improve outcomes, it would be best to ensure reliable cost estimates at appraisal to avoid complications and mitigate implementation risks. Cost savings during implementation prompted two requests from POWERGRID, the borrower and executing agency of this project, to use available loan funds through minor scope changes. This enhanced project results and final outcome, particularly as ADB and POWERGRID were able to swiftly meet the requirements and provide timely support for the implementation of the scope changes.

Project Number: 44426-014
Project Name: National Grid Improvement Project
Report Date: