Stakeholder engagement

Continued engagement with the same agencies strengthens collaboration and facilitates the attainment of project results. ADB has had a long history of engaging key agencies in India's power sector. Nine ADB loans, including two funded by multitranche financing facilities, provided the distribution companies (DISCOMs) with extensive experience that helped with this project's smooth implementation and better use of loan funds.

Awareness-raising and capacity building on the safe and efficient use of electricity, and skills training in energy facilities, have several important benefits. In Madhya Pradesh, industrial and high-voltage power consumers cross-subsidize the cost of supply so that agricultural and domestic consumers pay less. To ensure this benefit and make people aware of the safety hazards on the misuse of the high voltage transmission and distribution systems, an extensive public awareness campaign was undertaken. People were also trained in the use of facilities.

In projects that aim to introduce new approaches and pilot programs, active participation, and dialogues with stakeholders at the design stage enhances project performance. Under the project, the design and implementation benefited from sufficient consultations with stakeholders. It promoted inclusiveness and bottom–up and community-based mechanisms for identifying the needs and decision-making process in the context of local conditions.

To ensure project success, the commitment, ownership, and accountability of an executing agency are critical factors when designing a project and formulating its implementation plan. These need to be supported by adequate expertise and capacity of the agency in managing project implementation and complying with ADB safeguard requirements and loan covenants.

Extensive consultations with government and stakeholders, including ger visits, surveys, and meetings, help in developing better project design. Involving the stakeholders at design stage up to implementation, and establishment of community groups in this project contributed substantially to its success. Specifically, the buy-in of stakeholders is critically important when the project involves introduction of new technology, innovative approaches, and pilot programs.

Comprehensive and robust diagnostics providing the rationale for the selection of policy actions are important. Using the results of these diagnostics during consultations helps stakeholders gain appreciation of the reasons for introducing policy reforms and this aids in building consensus

The country engagement framework (CEF) worked effectively for the CARES program and may be used for continued engagement and dialogue with the government on post-CARES follow-on work. Dialogue with key stakeholders from the private sector and civil society played an invaluable role in: (i) providing government with firsthand accounts of the challenges faced by the sectors from the evolving conditions under the pandemic; and (ii) establishing a direct feedback loop to the government on how policies were translating on the ground. The dialogue was consistent with ADB’s CEF in Cambodia.

Stronger coordination between the national and subnational levels is necessary to ensure a coordinated approach to implementation, reporting, and monitoring. More could be done to strengthen vertical and horizontal coordination between the relevant government agencies for improved outcomes.

The requirement for counterpart funding to finance land acquisition and resettlement (LAR) should be clearly communicated to government counterparts during project preparation. Due to delayed and inadequate counterpart funds, particularly to support LAR, works were begun in several subprojects even before compensation payments were completed. This comprised noncompliance to ADB safeguards and caused the suspension of works in pertinent subprojects.

Timelines for policy changes and major reforms should also be realistic, knowing that building understanding and ownership can take time and the passage of legislation can be a lengthy process. Two municipalities declined to participate in the project because of their objection to the transfer of ownership and management of assets to a state government agency.