Skilled human resources

In addition to the technical and engineering staff, project management units should include staff with skills in financial management, economics, safeguards, procurement and contracts management, and communication. The project initially encountered difficulties due to the inadequate capacity of the project staff in social and environmental safeguards, contract management, and finance management procedures. An assessment of staff capacity in these areas will identify areas for improvement in future similar projects.

Mobilizing local project management expertise can be beneficial. The modification of the project management consulting contract to increase the inputs of national staff proved beneficial. Local and national staff who work closely with experienced international consultants as part of a team of a competitively selected consulting firm have the opportunity to acquire skills and hone them. This is good and in line with ADB's capacity development objectives in developing member countries.

Implementation is difficult if the capacities of consultants and executing agency staff fail to match the skill sets required for detailed design and construction of planned works. This issue contributed to the need for contract extension of the national consultants. The project also engaged three individual consultants (hydrologist, hydraulic specialist, and database specialist) to support the newly established Department of Hydrology and River Works and National Flood Forecasting Center.

Road maintenance units, backed by adequate skilled personnel and instititutional support for upgraded modernized systems, are required to maximize the benefits from completed road projects. Rural road network maintenance units play a crucial role after the existing 5-year performance based maintenance contract is completed. They will have to prepare and implement state-specific road maintenance programs.

Early and continuous involvement of financial staff and coordination with development partners are crucial to ensure aptly designed financial management arrangements. This is particularly true for multi-donor funded programs that require harmonization of financial management systems. As these were lacking in this project, significant financial management issues were experienced during implementation.

The implementation of large investment programs could be streamlined with the engagement of a loan-funded project management consultant from the beginning using advance procurement.

Proper execution of project administration activities relies on the capacity and commitment of borrowers and agencies involved. It is crucial that executing and implementing agencies are well informed of ADB operational procedures and requirements, especially with respect to financial management. This allows a concerned agency to carry out the project activities appropriately and ensure timeliness.

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.

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.

Establishment of professional project administration divisions and retention of experienced and trained government officials in these units can help mitigate the risk of project delays. Project implementation experienced substantial delays despite the preparation of time-bound action plans, project completion was still delayed by 60 months for Lao PDR and 48 months for Viet Nam. The recurrence of this experience in this project may be better addressed by putting in place professional project administration divisions, staffed by trained and experienced personnel.