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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: ICR2723 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-72120 IBRD-73410 IBRD-73760 IDA-38460 IDA-48160) ON Public Disclosure Authorized LOANS/CREDITS IN THE AMOUNT OF (US$ 495.0 MILLION EQUIVALENT) TO THE PAKISTAN FOR THE HIGHWAYS REHABILITATION PROJECT Public Disclosure Authorized November 21, 2013 Sustainable Development Department Pakistan Country Management Unit South Asia Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective November 5, 2013) Currency Unit = Pakistan Rupee Rs 1.00 = US$ 0.009321 US$ 1.00 = Rs 107.2856 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AF Additional Financing AJ&K Azad Jammu and Kashmir AMP Annual Maintenance Plan BPR Business Process Re-engineering CAS Country Assistance Strategy CAGR Compound Annual Growth CDWP Central development Working Party CPS Country Partnership Strategy ECNEC Executive Committee of National Economic Council EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMP Environment Management Plan EOP End Of Project FATA Federally Administered Tribal Areas FMIP Financial Management Improvement Program FMR Financial Management Report FWO Frontier Works Organization FY Fiscal Year GDP Gross Domestic Product GOP Government of Pakistan HDM Highway Development and Management Model HRD Human Resource Development HRP Highways Rehabilitation Project HRTC Highway Research and Training Centre ICB International Competitive Bidding IP Implementation Progress IRI International Roughness Index ISR Implementation Status Report JICA Japan International Cooperation Agency JVR Jhelum Valley Road KKH Karakoram Highway KP Khyber-Pakhtunkhwa KVR Kaghan Valley Road LAA Land Acquisition Act L/C Letter of Credit LRD Land Revenue Department M&E Monitoring & Evaluation MIS Management Information System MOC Ministry of Communications MOF Ministry of Finance MTBF Medium Term Budget & Expenditure Framework MTR Mid Term Review NCB National Competitive Bidding NHIP National Highway and Improvement Program NH&MP National Highways and Motorway Police NPV Net Present Value NTC National Trade Corridor N.W.F.P. North West Frontier Province O&M Operations and Maintenance PAD Project Appraisal Document PAP Project Affected Person PDO Project Development Objective PMU Project Management Unit PSDP Public Sector Development Program PRSP Poverty Reduction Strategy Paper RAMD Road Asset Management Directorate RAMS Road Asset Management System RMA Road Maintenance Account RPF Resettlement Policy Framework Rs Rupee SBD Standard Bidding Document SDR Standard Drawing Rights SIA Social Impact Assessment SMEC Snowy Mountain Engineering Corporation SOP Standard Operating Procedure TNA Training Needs Assessment VOC Vehicle Operating Costs Vice President: Philippe H. Le Houerou Country Director: Rachid Benmessaoud Sector Director: John Henry Stein Sector Manager: Karla Gonzalez Carvajal Project Team Leader: Zafar Iqbal Raja ICR Team Leader: Zafar Iqbal Raja PAKISTAN Highways Rehabilitation Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 5 3. Assessment of Outcomes .......................................................................................... 14 4. Assessment of Risk to Development Outcome ......................................................... 18 5. Assessment of Bank and Borrower Performance ..................................................... 19 6. Lessons Learned ....................................................................................................... 21 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 23 Annex 1. Project Costs and Financing .......................................................................... 24 Annex 2. Outputs by Component ................................................................................. 25 Annex 3. Economic and Financial Analysis ................................................................. 28 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 30 Annex 5. Beneficiary Survey Results ........................................................................... 32 Annex 6. Stakeholder Workshop Report and Results ................................................... 33 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 34 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 35 Annex 9. List of Supporting Documents ...................................................................... 36 Attachement-I. Borrower’ ICR ..................................................................................... 37 MAP – IBRD 32757 A. Basic Information Highways Country: Pakistan Project Name: Rehabilitation IBRD-72120,IBRD- 73410,IBRD- Project ID: P010556 L/C/TF Number(s): 73760,IDA- 38460,IDA-48160 ICR Date: 11/21/2013 ICR Type: Core ICR Lending Instrument: SIL Borrower: GOP Original Total USD 200.00M Disbursed Amount: USD 514.36M Commitment: Revised Amount: USD 495.00M Environmental Category: B Implementing Agencies: National Highway Authority (NHA) Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 01/25/1999 Effectiveness: 02/27/2004 02/27/2004 Appraisal: 04/29/2003 Restructuring(s): 12/06/2005 Approval: 12/23/2003 Mid-term Review: 12/31/2006 12/06/2006 Closing: 06/30/2009 06/30/2013 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 6 6 Forestry 2 2 Rural and Inter-Urban Roads and Highways 92 92 Theme Code (as % of total Bank financing) Administrative and civil service reform 20 20 Infrastructure services for private sector development 40 40 Injuries and non-communicable diseases 20 20 Public expenditure, financial management and 20 20 procurement E. Bank Staff Positions At ICR At Approval Vice President: Philippe H. Le Houerou Praful C. Patel Country Director: Rachid Benmessaoud John W. Wall Sector Manager: Karla Gonzalez Carvajal Guang Zhe Chen Project Team Leader: Zafar Iqbal Raja Navaid A. Qureshi ICR Team Leader: Zafar Iqbal Raja ICR Primary Author: Zafar Iqbal Raja F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) Sustainable delivery of a productive and efficient national highway network, contributing to lower transportation costs. Revised Project Development Objectives (as approved by original approving authority) Not Applicable. ii (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Reduction in average Vehicle Operating Costs by 5% [measured by reduction in Indicator 1: average network-level roughness from 5.4 IRI1 to 4.4 IRI; and reduction in NHA network in poor condition from 49% to 35%] Network-level roughness Network-level Network-level Value = 5.4 IRI roughness = 4.4 IRI roughness = 4.49 IRI (quantitative or qualitative) Network in poor condition Network in poor Network in poor = 49% condition = 35% condition = 35% Date achieved 04/29/2003 06/30/2009 06/30/2013 Comments Almost met targets. The achievements are based on data collected for the Road Asset (incl. % Management System (RAMS) on yearly-basis on about 11,000 km of National achievement) Highways network by the RAMS consultants. Indicator 2: Reduction in travel time (growth adjusted) on National Highway N-5 by 10% Value (quantitative or 47 hours 42 hours 39 hours qualitative) Date achieved 04/29/2003 06/30/2009 06/30/2013 Comments Exceeded the target (16% vs. 10% target). The achievements are based on data (incl. % collected by the National Transport Research Center on 1,700 kms of Peshawar- achievement) Karachi section of National Highway N-5. Improvement in the road safety situation along the National Highway N-5 corridor Indicator 3: [growth adjusted reduction in road fatalities by 10%] Value (quantitative or 109 fatalities/100 km 96 fatalities/100 km 39 fatalities/100 km qualitative) Date achieved 04/29/2003 06/30/2009 06/30/2013 Comments Far exceeded the target (63% vs. 10%). The achievements are based on data collected (incl. % by the National Highway and Motorway Police on 1,700
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