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LESSONS:

Second North Madras Thermal Power Project

sector: Energy | country: India

A single turnkey contract would have avoided to some extent the delays experienced inthe implementation of the project resulting from inordinate delays in the award of severalcontracts and coordination between various contractors.

An integrated project management system equipped with computerized managementinformation systems to regularly review the project’s progress is essential in organizations like theRegular discussions with the central and state governments and with TNEB onimplementing assurances such as subventions and power tariffs has prompted the governmentof Tamil Nadu to establish the Tamil Nadu Electricity Regulatory Commission, with a mandate todetermine power tariffs for different categories of consumers, including agriculture.(TNEB). Such systems may help to take timely corrective actions to resolve problems as theyarise, fix the responsibilities, and enhance the accountability of the staff involved.

Regular discussions with the central and state governments and with the Tamil Nadu Electricity Board (TNEB) on implementing assurances such as subventions and power tariffs has prompted the governmentof Tamil Nadu to establish the Tamil Nadu Electricity Regulatory Commission, with a mandate todetermine power tariffs for different categories of consumers, including agriculture.

The preparation of a project, including the ready availability of requisite land, is the key to successful implementation and derivation of benefits. Central and state government organizations should consider the availability of and problemsassociated with acquiring land for infrastructure projects at the time of project appraisal.

The Project Completion Mission feels that, to curtail procurement delays, ADB might consider deputing a procurement specialist with sector-specific experience as a part of the inception mission, or it might advise the executing agency to hire an experienced consultant toprepare and evaluate bid documents. Doing so may substantially improve the quality of biddocuments and reduce the time needed to review and finalize bid documents and evaluationreports. Further, the inception mission should put more emphasis on familiarizing the executingagency staff with ADB procurement requirements and procedures.

The successful completion of large-scale infrastructure projects requires critical evaluation of the executing agency’s preparedness and commitment to start project implementation as envisaged

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