Procurement

Poor quality of local talent can significantly hinder implementation, causing ADB to intensify implementation support to put projects on track. The executing agency asked the international consulting firm “to change six of the national experts to enhance the quality of expertise.” Delays in retaining architects to monitor construction had a knock-on impact on the procurement of civil works and equipment packages. The objective of setting up the Project Administration Group (PAG), among other implementation units, was to delegate project execution to locals, but this did not work.

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.

The required procurement method must be assessed at appraisal stage to determine its compliance with ADB policies prior to including each package in ADB-financed projects. The rehabilitation of the 500 kV HVDC terminals between Rihand and Dadri was dropped when competitive procurement was not feasible because of the nature of the works and resulted in changes in scope.

Previous project completion reports confirmed that the Joint-Stock Company Georgian State Electrosystem has the capacity to undertake major power transmission projects. Nonetheless, GSE's staff could benefit from ADB-sponsored training and workshops in procurement, safeguards, and other areas.

The bid document evaluation criteria need to be a pass–fail type to ensure that only financially strong bidders that can implement construction activities in remote areas are selected. This could have helped avoid rebidding and subsequent loss of time in this project

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.

Adequate assessment and due diligence of the technical qualification and past performance of a consultant supports satisfactory execution of its services. This is critical for effective implementation of project activities. Specifically, a close monitoring of the consultant's performance during project implementation permits a better quality of deliverables and outputs.

Provision of adequate technical support for the executing and implementing agencies with respect to procurement planning as well as consultant recruitment and management helps in streamlining the procurement timeline processes. Specifically, providing capacity building support and training on ADB procurement procedures, biddings, and contracts facilitates effective execution of civil works' activities.

Utility shifting can form part of the item-rate and/or engineering, procurement, and construction(EPC) contracts to facilitate the efficient delivery of future projects. In road construction projects, the shifting of utility is often contracted out by the executing agency to third-party entities specializing in utility shifting. However, this arrangement can be misused as an excuse by some contractors, leading to possible delays in the delivery of contracts.

Delays in procuring and installing modest but critical hardware and equipment (e.g., for modern irrigation management practices) can affect the effectiveness and efficiency of a otherwise highly successful project.