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LESSONS:

Power Rehabilitation Project

sector: Energy | country: Tajikistan

1. Although the project components were completed successfully, there were serious cost overruns and implementation delays. ADB and its consultants need to be aware of the risk of high construction costs in Tajikistan, and to review whether this is a persistent problem or if it has diminished with the more settled political conditions now. The implementation delays also point to the need for significant levels of assistance from international consultants in project implementation, and to the establishment of a PIU that is not subject to political interference. [Main text, paras. 30,35,62,69]

2. Collection of appropriate data is essential in monitoring and measuring project benefits and outcomes. During the PCR mission, Barki Tojik had problems providing certain data to quantify the project’s direct and indirect incremental effects on income and poverty reduction as well as improved standards of living. Hence in the preparation and implementation of the next project, ADB needs to ensure that the executing agency and project implementation unit would place more attention in monitoring the collection of such information. [Main text, paras. 61,64,70]

3. ADB needs to be more careful in reviewing the compliance of Barki Tojik with loan and project covenants that require cost recovery and financial performance, improved accounting procedures, and the annual submission of corporate and financial accounts in English to ADB. These agreements are standard ADB covenants which Barki Tojik failed to comply with as the latter’s accounting and financial performance were unsatisfactory. [Main text, paras. 37-41,71,74]

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