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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
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:
Lesson
Targets need to be specific and evidence-based and indicators well-defined and measurable to enable a reliable assessment of implementation progress and project accomplishments and performance at completion. This project suffered from weaknesses in indicators and the results chain. Examples were inadequate links between intended outputs and outcome, lack of specific targets (output 1 and outcome), and poorly defined target (output 3). One impact target was misplaced (project staffing) and another was deemed unachievable (number of WUCSs confirming receipt of water services).

Project Number: 43253-023
Project Name: Karnataka Integrated and Sustainable Water Resources Management Investment Program - Project 1
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:
Lesson
An adequate assessment is needed when setting targets. This project had a few design challenges that could not be addressed during implementation. For the target of serving 3,000 households with new water supply connections and 4,500 with improved ones, financing was not included in the approved project, so could never be achieved. The target of serving 25,000 households with sewer connections was ambitious, as only about 13,680 households would get these connections based on the final engineering designs.

Project Number: 36188-023
Project Name: Secondary Towns Integrated Urban Environmental Improvement Project
Report Date:
Lesson
Overconservative cost estimation during the implementation of the multitranche financing facility (MFF) tranche projects may reduce the funding availability for other investments and result in low utilization of the approved MFF amount. Tranche 2’s actual total cost was $64.97 million, 60% of the budgeted amount, and ADB’s loan disbursement was only 61% of the committed amount.

Project Number: 42414-033
Project Name: Sustainable Urban Transport Investment Program - Tranche 2
Report Date:
Lesson
Flexible reallocation of loan proceeds to critical civil works can enhance project relevance and effectiveness. A minor change in scope was approved for the reallocation of loan proceeds from project administration savings and secondary consulting services to the civil works contract. The new allocation enabled additional works on the coastal boulevard impacted by the storm but kept the loan size within its original limit.

Project Number: 42414-044
Project Name: Sustainable Urban Transport Investment Program - Tranche 4
Report Date:
Lesson
Considering the construction costs and number of subprojects as tentative when there are significant technical unknowns that cannot be determined during the design stage will help mitigate the risks and facilitate the implementation of sector loan projects. Under this project’s preparatory technical assistance (TA), cost estimates were prepared under conditions of significant technical information gaps for all potential bridge sites.

Project Number: 43200-024
Project Name: Bridge Replacement for Improved Rural Access Sector Project
Report Date: