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Completion Report Project Number: 34337 Loan Number: 2047/2048 December 2008 Pakistan: Sindh Devolved Social Services Program CURRENCY EQUIVALENTS Currency Unit – Pakistan rupee/s (Pre/PRs) At Appraisal At Program Completion 13 November 2003 19 September 2008 PRe1.00 = $0.0174 $0.0129 $1.00 = PRs57.42 PRs77.70 ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund ASP – annual sector plan CBO – community-based organization DSP – Decentralization Support Program DSSP – Devolved Social Services Program EA – executing agency GRAP – gender reform action plan HMC – hospital management committee LGC – Local Government Commission LGO – local government ordinance LSU – local support unit MDG – Millennium Development Goal MOU – memorandum of understanding MTR – mid-term review NGO – nongovernment organization OCR – ordinary capital resources PCR – program completion report PFC – Provincial Finance Commission PHED – Public Health Engineering Department PLD – provincial line department PRSP – Poverty Reduction Strategy and Program PSU – program support unit SAC – structural adjustment credit SAP – Social Action Program SDR – Special Drawing Rights SDSSP – Sindh Devolved Social Services Program SMC – school management committee TA – Technical assistance TMA – Taluka/town municipal administration TPV – third-party validation USAID – United States Agency for International Development VDA – village development association WSS – water supply and sanitation NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2005 ends on 30 June 2005. (ii) In this report, "$" refers to US dollars. Vice President X. Zhao, Operations Group 1 Director General J. Miranda, Central and West Asia Department (CWRD) Country Director R. Stroem, Pakistan Resident Mission Sector Director R. Subramaniam, Governance, Finance and Trade Division, CWRD Team leader M. Van der Auwera, Social Security Specialist, CWRD Team member F. Teves, Assistant Project Analyst, CWRD CONTENTS Page BASIC DATA i MAP vii I. PROGRAM DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Program Outputs 2 C. Program Costs and Disbursement 8 D. Program Schedule 9 E. Implementation Arrangements 9 F. Conditions and Covenants 9 G. Related Technical Assistance 10 H. Consultant Recruitment and Procurement 10 I. Performance of Consultants, Contractors, and Suppliers 10 J. Performance of the Borrower and the Executing Agency 11 K. Performance of the Asian Development Bank 11 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness in Achieving Outcome 12 C. Efficiency in Achieving Outcome and Outputs 13 D. Preliminary Assessment of Sustainability 13 E. Environmental, Sociocultural and Other Impacts 14 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 15 C. Recommendations 16 APPENDIXES 1. Program Framework 17 2. Implementation Status of Policy Matrix under the Sindh Devolved Social Services 19 Program 3. Allocations of the Conditional Grants 25 4. Program Organization and Responsibilities: Organization Chart 29 5. Social Service Expenditures, Government of Sindh 30 6. Third Party Validation 31 7. Overall Assessment 32 BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Number 2047 3. Program Title Sindh Devolved Social Services Program 4. Borrower Islamic Republic of Pakistan 5. Executing Agencies Finance Department, Sindh provincial government, Planning and Development Department, Sindh provincial government Sindh Secretariat, Karachi, Pakistan 6. Amount of Loan ¥11,968,550,000 (equivalent to $110 million) From ADB’s ordinary capital resources 7. Program Completion Report PCR: PAK 1091 Number B. Loan Data 1. Appraisal 1 October 2003 – Date Started 17 October 2003 – Date Completed 2. Loan Negotiations 13 November 2003 – Date Started 15 November 2003 – Date Completed 12 December 2003 3. Date of Board Approval 17 February 2004 4. Date of Loan Agreement 5. Date of Loan Effectiveness – In Loan Agreement 29 April 2004 – Actual none – Number of Extensions 6. Closing Date 1 February 2007 – In Loan Agreement 23 August 2007 – Actual none – Number of Extensions 7. Terms of Loan ADB’s London interbank offered rate (LIBOR)- – Interest Rate based lending facility 15 years – Maturity (number of years) 3 years – Grace Period (number of years) ii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 29 April 2004 23 August 2007 40 months Effective Date Original Closing Date Time Interval 29 April 2004 1 August 2007 39 months b. Amount (¥) Category or Last Net Amount Subloan Original Revised Amount Available Amount Undisbursed Allocation Allocation Canceled Disbursed Balance 01-Sindh Devolved 11,908,707,250 0 0 11,908,707,250 11,908,707,25 0 Social Services 0 Program 02-Front End Fee 59,842,750 0 0 59,842,750 59,842,750 0 Total (Loan 11,968,550,000 0 0 11,968,550,000 11,968,550,00 0 Currency) 0 Total (US $ 110,000,000 108,286,783 108,286,783 0 Equivalent) C. Program Data 1. Program Cost ($) Cost Appraisal Estimate Actual Foreign Exchange Cost 110,000,000 107,726,746 Local Currency Cost 0 0 Total 110,000,000 107,726,746 2. Program Schedule (in ¥) Item Appraisal Estimate Actual First tranche release 7,289,935,000 Second tranche release 4,025,785,000 Third tranche release 592,987,250 3. Program Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 31 December 2003 to 30 December 2004 Satisfactory Satisfactory From 31 December 2004 to 30 December 2005 Satisfactory Satisfactory From 31 December 2005 to 30 December 2006 Satisfactory Satisfactory From 31 December 2006 to 30 August 2007 Satisfactory Satisfactory From 31 August 2007 to 31 December 2007 Satisfactory Partly Satisfactory iii D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Loan Fact-findingb 12-30 May 2003 16 304 a,b,c,d,e,f,g,h,i Loan Pre-Appraisal 1-4 July 2003 2 8 a,i Loan Appraisal 1-17 October 2003 6 102 a,j,i Loan Negotiations 13-14 November 2003 2 4 a,d Review 7-17 March 2004 3 a,i,k Inception 12-17 July 2004 4 24 i,j,k,p Review 1 13-18 September 2004 2 12 i,k Review 2 9-14 December 2004 2 12 i,k Review 3 25-28 April 2005 4 16 e,i,k,l Review 4 4-5 July 2005 2 4 e,k Review 5 23 January-2 February 2 22 i,k 2006 Review 6 (Mid-term) 26 February-3 March 5 30 d,k,m,n,o,p 2007 Review 7 29 January-3 February 2 12 k,q 2008 Review 8 15-16 November 2008 1 2 r Notes: a a = senior health specialist, b = senior education specialist, c = urban development specialist, d = counsel, e = economist, f = senior governance specialist, g = governance specialist, h = education adviser, i = consultant, j = principal education specialist, k = education specialist, l = director, m = social sector specialist, n = program director, o = capacity development and governance specialist, p = project officer, q = program analyst, r = project officer. b PRM provided support to the missions in the field. iv BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Number 2048 3. Program Title Sindh Devolved Social Services Program 4. Borrower Islamic Republic of Pakistan 5. Executing Agencies Finance Department, Sindh provincial government Planning and Development Department, Sindh provincial government Sindh Secretariat, Karachi, Pakistan 6. Amount of Loan SDR69,843,000 (equivalent to $100 million) from ADB’s Special Funds resources 7. Program Completion Report Number PCR: PAK 1091 B. Loan Data 1. Appraisal 1 October 2003 – Date Started 17 October 2003 – Date Completed 2. Loan Negotiations 13 November 2003 – Date Started 15 November 2003 – Date Completed 12 December 2003 3. Date of Board Approval 17 February 2004 4. Date of Loan Agreement 5. Date of Loan Effectiveness – In Loan Agreement 29 April 2004 – Actual none – Number of Extensions 6. Closing Date 1 August 2007 – In Loan Agreement 23 August 2007 – Actual none – Number of Extensions 7. Terms of Loan 1% per annum during the grace period of and – Interest Rate 1.5% thereafter 24 years – Maturity (number of years) 8 years – Grace Period (number of years) v 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 6 May 2004 23 August 2007 39 months Effective Date Original Closing Date Time Interval 29 April 2004 1 August 2007 39 months b. Amount (in SDR) Category or Last Net Amount Subloan Original Revised Amount Available Amount Undisbursed Allocation Allocation Canceled Disbursed Balance 01-DSSP 69,843,000 0 0 69,843,000 69,843,000 0 Program Total (Loan 69,843,000 0 0 69,843,000 69,843,000 0 Currency) Total ($ 100,000,000 0 0 103,231,752 103,231,752 Equivalent) ADB = Asian Development Bank, SDR = Special Drawing Rights. C. Program Data 1. Program Cost (in SDR) Cost Appraisal Estimate Actual Foreign Exchange Cost 69,843,000 69,843,000 Local Currency Cost 0 0 Total 69,843,000 69,843,000 2. Program Schedule ($) Item Appraisal Estimate Actual First tranche release 23,048,000 Second tranche release 23,048,000 Third tranche release 23,747,000 3. Program Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 31 December 2003 to 30 December 2004 Satisfactory Satisfactory From 31 December 2004 to 30 December 2005 Satisfactory Satisfactory From 31 December 2005 to 30 December 2006 Satisfactory Satisfactory From 31 December 2006 to 30 August 2007 Satisfactory Satisfactory From 31 August
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