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The Madhya Pradesh power sector has been suffering from structural problems such as persistently high level of ATC losses, increasing cost of generation and power purchase, and limited scope of tariff increase as industrial tariffs have already reached the cost of captive power generation. Improving the operational efficiency of utilities and tariff adjustments aimed at reducing the cross-subsidies to residential and agricultural consumers can help, but the underlying problem in the power sector remains the high ATC losses. The reduction of ATC losses requires technical measures (reducing the overloading of distribution feeders and measures such as HVDS and bundled conductors to prevent electricity pilferage), institutional measures (improved metering, billing and bill collection) as well as governance-related actions (discouraging electricity theft by taking legal action against the pilferers). However, the underlying political economy such as affordability and competitiveness of Madhya Pradesh’s agriculture sector in the event of full cost recovery of supply of electricity to agriculture needs to be addressed.

Project Cycle Stage:
Country: India

The SDP was based on the premise that regulatory and institutional reforms will improve the performance of sector entities. Although the regulatory and institutional reforms were implemented as intended, the sector entities except for MPTransco showed no significant improvement in performance. Although there are several reasons for this such as the underlying political economy issues constraining the measures that can be taken to reduce the ATC losses, the lack of financial autonomy, financial incentives, and managerial accountability could have contributed to underachievement of this important development outcome. The management of a utility is not responsible for financial performance and MPG has regularly stepped in to finance the cash deficit. The regulatory interventions were limited to annual tariff settings based on progressively improving performance norms. The reform program should have gone beyond the institutional reforms and encouraged MPG and the regulator to set performance targets and ensure compliance with those targets through an incentive and/or penalty mechanism. It is encouraging to note that the MP State Government and MPSERC have set targets for loss reduction , revenue realization etc in last 3–4 years and the reporting requirements to periodically monitor the performance of DISCOMs with respect to these targets have been initiated.

Project Cycle Stage:
Country: India

Financial viability and cost recovery in the sector are important considerations for private sector investments in power generation in the absence of opportunities to sell electricity outside the state. Before India’s Electricity Act of 2003 was enacted, it was difficult to attract private sector investments to power generation in Madhya Pradesh, for investors were concerned about MPSEB’s ability to set aside adequate cash flows to meet power purchase obligations (escrow cover). After the provisions of the Electricity Act related to the setting up of a competitive power market and open access to a transmission network were implemented, private investors have shown increased willingness to invest in power generation in Madhya Pradesh as demonstrated by the recent success in initiating several private sector investments with likely capacity additions of more than 1,500 MW from private sector projects in next 2–3 years.

Project Cycle Stage:
Country: India

The project had no clear strategy on how the Small Business Enterprise Centre (SBEC) should be supported beyond the life of the project. The SBEC was left with a huge loan guarantee portfolio at the end of the project and no long-term means to sustain its operations.

Project Cycle Stage:
Country: Samoa

While technical assistance in the form of logistical support, advisory assistance (through consultant inputs), study tours, and training help to improve project capabilities, they do not necessarily address long-term sustainability of institutions. Efforts towards promoting sustainability, such as for the SBEC, should include developing appropriate and effective financial systems, installing an effective management information system, institutionalizing good governance and management structure, and strengthening risk assessment, loan appraisal, and monitoring skills.

Project Cycle Stage:
Country: Samoa

The capacity constraints of implementing agencies were not clearly defined early on in implementation, especially the credit components. No clear strategies were developed to address constraints in the social and cultural environment and in market conditions that affect the policy component. As a result, the project suffered delays and the delivery of outputs and outcomes was significantly affected. Findings from project supervision should be used consistently to adjust project in light of experience.

Project Cycle Stage:
Country: Samoa

In the context of Samoa—where the financial market is relatively underdeveloped, the collateral framework is weak, and institutions have limited capacity—a more simple and focused project design would have been more appropriate. Some of the subcomponents such as the venture capital fund, credit bureau and chattels registry were totally new activities which made the design more complex and difficult to implement. Also, clearly a modest project like this would not be the best vehicle for addressing a fundamental political issue like land ownership. Greater focus should have been placed on creating an enabling environment for the financing and growth of micro and small enterprises. This would have involved developing the policy and legal environment for the sector, which to some extent was achieved by the project, and building institutions to service the sector.

Project Cycle Stage:
Country: Samoa

The quality of education and training at the higher education institutions varies widely; it is better in the major cities, as indicated by the number and accreditation levels of the study programs. The project supported the strengthening of the Board of National Accreditation for Higher Education and the establishment of quality assurance units to ensure the quality of the study programs. However, standards and quality per study program varies per region. This complementing component may standardize the quality of graduates with licensure exam.

Project Cycle Stage:
Country: Indonesia

. This was based on the performance of the private higher education institutions. However, outcomes would be maximized if the components of assistance have mutually reinforcing or synergistic effects. Providing at least a minimum scale of assistance to fewer beneficiaries produces better results than spreading the resources thinly among more beneficiaries.

Project Cycle Stage:
Country: Indonesia

This mechanism is found to be effective which has been adopted by other development partners, and national and local governments. What made it more laudable as a mechanism for higher education institutions was the added feature that bidders within a region compete only among themselves rather than at large, thereby ensuring geographic representation of assisted higher education institutions.

Project Cycle Stage:
Country: Indonesia

Moves to engage in twinning arrangements and credit transfers, and to take part in international accreditation of study programs or international certification of lecturers are also some practices that have started.

Project Cycle Stage:
Country: Indonesia

Moves to engage in twinning arrangements and credit transfers, and to take part in international accreditation of study programs or international certification of lecturers are also some practices that have started.

Project Cycle Stage:
Country: Indonesia

Prior to project implementation, management of the HEIs is still largely centralized when it comes to decisions on opening or closing of study programs, curriculum structure, hiring and firing of personnel, use of nonbudget revenue, etc. This constrains the initiative and flexibility of higher education institutions to respond to changing conditions.

Project Cycle Stage:
Country: Indonesia

This would include assistance to improve performance in the Test of English as a Foreign Language—not only for future dealings or links with foreign universities and polytechnics, but also as a predeparture intervention for those going abroad, whether for an overseas degree fellowship or for work. The lack of English proficiency is a problem encountered by lecturers when doing postgraduate degrees abroad, and also by new graduates who are looking for a job in the main cities of Indonesia and abroad.

Project Cycle Stage:
Country: Indonesia

For example, by having a forum through which employers can give advice on national and institution specific policies, plans and programs. Linkages between educational entities and industries by way of collaboration in curriculum design and partnerships in job orientation programs were observed during the IEM. However, the extent varies depending on the higher education institution. For the institutions, one such forum could be an industry advisory board composed of representatives of selected business enterprises in their area. The formation of an industry advisory board at each higher education institution may require defining the duties and responsibilities, and providing guidelines on the composition of members, frequency of meetings, reporting, and related matters. Nationally, an annual consultative forum may be required, where government policymakers, employers, and educators discuss policies and program design to respond to trends in the labor market. In this context, the government could encourage the continuation and expansion of a valuable practice at some higher education institutions—including in the curriculum on-the-job training opportunities in industries—since the IEM found that employers first had to train their newly recruited graduates for 3–12 months, although the graduates are highly trainable.

Project Cycle Stage:
Country: Indonesia

There is ongoing development of an integrated monitoring and evaluation system backed up by a management information system at the Directorate General of Higher Education (DGHE) that is linked to individual higher education institutions. An annual tracer study consolidated from standardized tracer studies conducted or commissioned by individual HEIs would be useful to obtain meaningful impact assessments and determine improvement needs to sustain not only this project but also other initiatives at the DGHE.

Project Cycle Stage:
Country: Indonesia

Project management flexibility provided to the borrower or executing agency may negatively affect project implementation and, consequently, the achievement and sustainability of project outcomes. The project could have benefitted more from a closer analysis of (i) the institutional arrangements for school financing and management; (ii) the need to rebuild schools that had deteriorated due to lack of maintenance; (iii) the budgetary and human resource implications of adding 2 years of education in 12 district secondary schools; and (iv) community acceptance of government prescriptions for enrollment ceilings and zoning, and school committee composition and responsibilities. Thus, essential sector analyses should be carried out to ensure appropriateness of project design.

Project Cycle Stage:
Country: Samoa
Independent Evaluation, ADB
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