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Indonesia: Central Sulawesi Integrated Area Development and Conservation Project [Loan 1605-INO]

sector: Agriculture, Natural Resources, and Rural Development | country: Indonesia

The Independent Evaluation Department (IED) is in agreement with the key lessons presented in the project completion report (PCR). However, an important lesson should have been reiterated, namely that strict implementation supervision by competent ADB staff is crucial, in particular for projects with an innovative approach and when the Directorate General of Regional Development (DGRD) lacks the required expertise needed for this approach. Without a comprehensive and critical midterm review (MTR) and subsequent strict implementation supervision by ADB staff, IED considers it doubtful whether the Project would have been implemented on time and have become successful.

According to the PCR, only two of six hydropower units are in operation because of inadequate water head and/or electro-mechanical faults. IED considers that an obvious lesson is missing in the PCR, namely that comprehensive hydrological surveys should be undertaken prior to procurement and installation of hydropower units. In addition, arrangements for the recovery of operation and maintenance costs from users and adequate maintenance mechanisms should already be in place.

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