Maldives: Domestic Maritime Transport Project
sector: Transport | country: Maldives
The project completion report (PCR) identified three lessons from the project – project readiness, project implementation schedule and procurement, and project management support. This validation finds these lessons to be normal occurrences during project implementation and considered as project risks in the project framework. It has a similar view with the PCR that the project cost estimate should have been reviewed to determine whether this was still applicable, in view of the elapsed period between appraisal and start of project implementation.
This validation notes that the appraisal used US dollar as the unit of measurement for the economic evaluation and then used rufiyaa in the financial evaluation. The PCR, on the other hand, used rufiyaa for both economic and financial reevaluations. A common currency unit could have been used for these evaluations to avoid confusion. It appears that the project design did not adequately recognize the risk that the tariff would be set at levels below cost, hence, more stringent mitigation measures may be required in future port projects.