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Lesson
Closer coordination, capacity building, and handholding can improve project implementation when the executing agency has limited experience on implementing ADB-assisted projects. A review mechanism for assessing the efficacy of the trainings needs to be designed. The executing agency should be well versed in the ADB's safeguard policies to ensure compliance and accurate budgeting of the cost of safeguards. Any delays in the mobilization of experts to complement the staff of the executing agency should be expeditiously addressed.

Project Number: 47101-002
Project Name: Assam Power Sector Investment Program (Tranche 1)
Report Date:
Lesson
Allowances for possible cost increases in civil works can mitigate the effects of unforeseen geological conditions.

Project Number: 41627-023, 41627-033
Project Name: Himachal Pradesh Clean Energy Development Investment Program (Tranches 1 and 2)
Report Date:
Lesson
Estimation of the project cost requires a greater anticipation of potential cost overrun/underrun that may arise during implementation. During appraisal, a more in-depth examination and consideration of factors related to currency depreciation permits a more robust and realistic cost estimates. Under this project, a substantial loan amount was cancelled due to the rupee depreciation. A careful financial planning and cost projections coupled with risk mitigation measures and monitoring allows for better utilization of loan proceeds.

Project Number: 46417-001
Project Name: Jaipur Metro Rail Line 1-Phase B Project
Report Date:
Lesson
Budget approval and procurement of new technologies being piloted could take time and cause implementation delays; when installed, rigorous monitoring of the performance of the new technologies is required to ascertain benefits and draw lessons from the pilot experience. In implementing the four pilot smart grid projects, substantial delays occurred due to the lengthy budget approval process and the procurement requirement of open competitive bidding while allowing international bidder participation.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
The cost categories required to be reported in the audited program financial statements (APFS) need to align with the categorization at appraisal so as not to cause problems in reporting. PLN faced difficulty in estimating the financing charges during implementation at appraisal stage. In addition, PLN raised a concern on the disclosure provision regarding APFS due to confidentiality requirements. The cost categories reported in the APFS were not aligned with the categorization used at appraisal, due to which changes to reporting formats were needed.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Project costing at design stage should realiably estimate the costs of all civil and other engineering costs and provide allowance for foreign currency fluctuations. The actual cost of one irrigation scheme turned out some $10 million greater than estimated at approval. This resulted in significant revision to the subproject design. The revision also incorporated the appreciation in special drawing rights against the US dollar and the domestic and international inflation that pushed down the real value of project resources.

Project Number: 40190-013
Project Name: Greater Mekong Subregion Flood and Drought Risk Management and Mitigation Project 
Report Date:
Lesson
Processing teams need to ensure that the scope and cost estimate of projects are realistic and reflect the actual contexts. Changes in the procurement plan and safeguards document necessitated by the revisions in project scope and costs caused startup delays. The Viet Nam component had a large amount of undisbursed budget because of overestimations in the cost of civil works and land acquisition and resettlement. Advance actions to engage critical consultants early enough should have helped mitigate the delays.

Project Number: 41444-013
Project Name: Second Northern Greater Mekong Subregion Transport Network Improvement Project
Report Date:
Lesson
The periodic maintenance payment rates may be standardized for future use. This project incorporated maintenance payments for the first year, allocated at prefixed rates, and with provision for an annual increase in subsequent years. Comparing the periodic maintenance payments made to the contractors with the actual expenditure incurred by the contractors, there is basis for standardizing periodic maintenance payment rates.

Project Number: 43574-025
Project Name: Uttar Pradesh Major District Roads Improvement Project
Report Date:
Lesson
Drawing from similar past project experiences, as part of due diligence, will help minimize or avoid cost underestimations. The connection costs under this project were underestimated by 250%, resulting in the project installing only 43% of its planned 4,500 household connections. More thorough due diligence should have been carried out during project preparation, with cost estimates validated by experiences under similar past projects.

Project Number: 41504-024
Project Name: Improved Energy Access for Rural Communities
Report Date:
Lesson
Appropriate contract packaging, stakeholder involvement in project preparation, and reliable cost estimates are of particular importance to successful project implementation. This project encountered several weaknesses in design and preparation that made implementation challenging.

Project Number: 43319-022
Project Name: Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Report Date:
Lesson
Government’s effective and responsive implementation of the program and use of funds highlighted the importance of being able to adjust allocations as demanded by the crisis. The government successfully utilized its ADB countercyclical loan to support its relief and stimulus program under its two pandemic emergency decrees and funds (FY2020 and FY2021). In particular; the Cabinet responded rapidly to the successive waves of COVID-19; allocating and reallocating budgets to work plans and projects where they were most needed at any one time.

Project Number: 54177-001
Project Name: COVID-19 Active Response and Expenditure Support Program
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
A detailed market assessment is necessary to come up with reliable cost estimates. The actual costs deviated significantly from the original estimates, aggregating to only $29.35 million or 49% of the $60 million total estimated cost. This was mainly because of the nearly 30% drop in the actual cost of equipment realized through the international competitive bidding process, the reduction in the number of distribution transformers installed, and the reduction in the scope of underground cable installation actually undertaken.

Project Number: 47101-003
Project Name: Assam Power Sector Investment Program - Tranche 2
Report Date:
Lesson
High-level participation among stakeholders in the design, implementation, and establishment of community mechanisms contribute substantially to project success. Buy-in of stakeholders and active participation in the processes from design to implementation are critical, specifically when the project involves new approaches and pilot programs

Project Number: 48216-001
Project Name: Integrated Livelihoods Improvement and Sustainable Tourism in Khuvsgul Lake National Park Project
Report Date:
Lesson
Significant implementation delays under both tranches underscore three important points: (i) weather conditions stop works during winter months and even interrupt work during other months, (ii) proper planning is essential so that issues such as inadequate access infrastructure can be taken care of sufficiently in advance, and (iii) extensive geological surveys and testing are crucial in the Himalayan region prior to the detailed project report stage.

Project Number: 41627-023, 41627-033
Project Name: Himachal Pradesh Clean Energy Development Investment Program (Tranches 1 and 2)
Report Date: