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LESSONS:

Southwest Flood Damage Rehabilitation Project

| country: Bangladesh

Adequate consulting support results in better executing agency performance in project preparation, monitoring, supervision, quality control of works, and timely utilization of loan funds. This is particularly relevant where a large number of small subprojects are implemented over a wide area.

Coordination and monitoring of project implementation through a central project steering committee (PSC) of the Borrower is very important for multi-sector projects that involve a large number of executing agencies. Regular interaction between the government and ADB through the PSC contributed greatly to the success of the project.

Delegation of authority to ADB mission in the Borrower’s country is essential for close monitoring and expediting decision-making processes.

Disbursement of funds through establishment of an imprest account by each executing agency is vital for timely payment to consultants, contractors, and suppliers.

Larger contracts are more efficient in terms of monitoring, quality control, and timely completion of works, although they depend on the capacity of executing agencies concerned. Contractors must invest to purchase equipment and machinery, resulting in enhanced capacity and development of the construction industry. The issue has been reflected in several subsequent ADB loan agreements, with a minimum contract size included.

Most executing agencies did not make adequate provision for maintenance funds, which are essential for long-term sustainability. ADB, together with other development partners, is seeking to assist the government establish a road fund to ensure a sustainable flow of maintenance funds for road infrastructure.

Procedural delay in recruitment of consultants and procurement of civil works contracts is the main reason for delayed project implementation. Timely completion of works requires streamlining of executing agencies’ procurement and recruitment procedures, full implementation of newly-approved national public procurement guidelines, and further capacity building and training on contract administration and ADB procedures for procurement and disbursement.

Provision for retroactive financing facilitates exploitation of first available working season to urgently rehabilitate damaged critical facilities.

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