LAHORE
The Asian Development Bank (ADB) is finalising to transform a major component of its project implementation for Pakistan, especially taking National Transmission and Dispatch Company (NTDC) into account, following irrational delay of Power Transmission Enhancement Investment project, highly placed sources confirmed.
The delay not only set off the project cost but also steered 3 partial cancellations during the course of the loan, adding together to $ 97.3 million, or 43 per cent of the approved loan amount.
The delays in project implementation are attributed largely to the time taken in establishing and functioning Project Management Unit (PMU) and to recruit a PMC following the NTDC’s unfamiliarity with ADB’s procurement, environmental, and social protection requirements; besides a large number of contracts and diversified lot. PU coordinates the contribution of the different departments, ensuring that ADB’s implementation and monitoring requirements were met, and communicated with the Bank.
According to the project agreement, NTDC was responsible to establish a Project Management Unit, FFA Schedule 3 Para 1 noted. However, sources said that project implementation might have been more effective if a dedicated NTDC project manager had been assigned to the project. “Alternatively, an effective PMC could have filled the role of project manager” the sources added.
The sources said that future projects would pay distinctive attention to the design of the PMU, specifically its responsibilities so that the projects would be well managed. The project schedule should be designed considering the executing agency’s experience and capacity, as well as the scope of the project. When innovative technology is adopted, more attention would be paid to the scheduling for technical due diligence.
Sources told that the PMU in that project did not have full control of all NTDC staff working on the project. Instead, the PMU’s role was to liaise with ADB and to coordinate the project inputs provided by NTDC’s planning, design, procurement, and construction departments. Secondly, as the PMU is organised along functional lines, with its staff responsible for managing all ongoing ADB projects. As a result, there was no dedicated project manager responsible for coordinating the different project inputs and anticipating and mitigating future issues and risks before they escalated. Thirdly, Environmental and Social Impact Cell (ESIC) could have been established earlier within the PMU to meet ADB’s safeguard requirements
They said the PMC monitored progress and prepared NTDC’s quarterly progress reports, the PMC’s contract was not renewed after the expiry of the 3-year contract term; from that point on, all project management was undertaken in-house by the PMU. No replacement PMC was appointed. ‘In hindsight, a better outcome would have been achieved if the PMC had been recruited earlier and had more experience in the implementation of ADB-financed projects in Pakistan’s power sector’ they said.
Considering longer-term development effect, installing higher-capacity facilities that meet future demand would have to be appropriate.
Other causes of delay included (i) the time required to establish the PMU; (ii) commercial issues with contractors; (iii) damaged or faulty equipment; (iv) delayed approval of equipment and design; and (v) the longer time required for equipment tests, partly due to complex requirements in the technical specifications, late delivery of drawings, and problems interfacing new and existing equipment.
