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Lesson
Stronger due diligence on the part of ADB would have identified risk earlier and reduced project delays. The inability of PNCC to raise funds for the project, too, should have been anticipated at a time when most government corporations were strapped for cash and that PNCC had few alternative revenue sources apart from government subsidies. It should have been foreseen that PNCC would need to reduce its exposure in the project.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
The right-of-way issue should have been resolved earlier. Land acquisition by the government in the Philippines has been difficult causing delays. Although this was raised at the Board meeting considering the project, not enough attention was given to the potential problems until it was too late.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
ADB could have done a more thorough test of the forecasts‘ sensitivity to changes in the basic variables, including tariff price elasticity, lower-than-expected economic growth, and higher gasoline prices. The fact that traffic volumes have been scarcely half those projected by technical consultants at appraisal has meant lower revenues and a less favorable FIRR. While it is understood that a range of projections were made and the lower ones were used, they nevertheless proved to be overly optimistic.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
A more independent regulatory body is needed to balance the interests of all stakeholders—the government, toll road operators, road users, communities, and business. TRB lacks a clear vision for the sector, and because of its human and financial resource limitations adopts a passive rather than proactive role. This could be achieved by transforming TRB through the appointment of an independent board with a clear majority of members and the chairperson coming from the private sector. Independent funding could be provided through a direct levy on toll fees and the toll road operators.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
At appraisal there should have been a design monitoring framework which would have identified the objectives and targets. The project was designed to enhance economic development of central and northern Luzon, but no clear or measurable objectives were set at the outset. While economic growth has occurred in this region—3.4% per annum overall—it is not possible to quantify the extent that rehabilitation of an already existing toll road has contributed.

Project Number: 33924-014
Project Name: North Luzon Expressway Rehabilitation and Expansion (Loan 7162/1769)
Report Date:
Lesson
Better planning of vendor relocation. Planning for relocation of roadside vendors in projects such as this needs to pay careful attention to the viability of new market area sites and to involve close consultation with the affected individuals. Moving vendors from a roadside to proper market facilities does not guarantee that they will earn the same income as before. A new marketplace housed in a linear building running parallel to the road and provided with service lanes could give better access to relocated vendors.

Project Number: 30240-013
Project Name: Greater Mekong Subregion: Cambodia Road Improvement Project
Report Date:
Lesson
All project components should have been based on need assessment. This was particularly true of the activities for agribusiness credit piloting and infrastructure for marketing and the facilities at the horticulture training and demonstration centers (HTDCs). Failure to assess needs and conditions for these components adequately meant that the outputs were not used fully or successfully.

Project Number: 32193-013
Project Name: Northwest Crop Diversification 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
To ensure that the markets to be built under the project would be successful, the project needed to seek the participation and take into account the opinions of local stakeholders when selecting the sites for market construction.

Project Number: 32193-013
Project Name: Northwest Crop Diversification 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
The issues of land ownership and operational responsibilities needed to be clearly settled between public ministries and departments before the project embarked on market construction. This was particularly important for revenue-earning infrastructure like markets. More time than was envisaged at appraisal was needed to form output-oriented farmers' marketing groups (FMGs) and to put them into operation.

Project Number: 32193-013
Project Name: Northwest Crop Diversification 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
Project delays could have been reduced significantly by identifying and deploying qualified staff during project preparation, keeping those staff throughout implementation, obtaining early government approval for the project, and taking advance action on the recruitment of consultants before the loan agreement was signed.

Project Number: 32193-013
Project Name: Northwest Crop Diversification Project
Report Date:
Lesson
The selection of capable nongovernment organizations (NGOs) was critical to ensuring effective delivery of services and for sustaining project activities.

Project Number: 32193-013
Project Name: Northwest Crop Diversification Project
Report Date:
Lesson
Closer ADB watch on environmental issues. Closer ADB supervision through regular submission of environmental monitoring reports by MPWT, along with regular safeguard reviews, will help avoid or minimize adverse environmental impacts due to project implementation.

Project Number: 30240-013
Project Name: Greater Mekong Subregion: Cambodia Road Improvement Project
Report Date: