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Completion Report Pakistan: Road Sector Development Program

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Completion Report Pakistan: Road Sector Development Program Completion Report Project Number: 32058-02 Loan Number: 1892-PAK, 1893-PAK(SF) September 2010 Pakistan: Road Sector Development Program CURRENCY EQUIVALENTS Currency Unit – Pakistan rupee/s (PRe/PRs) At Appraisal At Project Completion (20 November 2001) (30 June 2009) PRe1.00 = $0.0164 $0.0123 $1.00 = PRs61.10 PRs81.40 ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund EIRR – economic internal rate of return FAP – foreign aided projects FIDIC – Fédération Internationale des Ingénieurs-Conseil (International Federation of Consulting Engineers) GOP – Government of Pakistan GOS – Government of Sindh ICB – international competitive bidding IRI – international roughness index km – kilometers LIBOR – London interbank offered rate m – meter NCB – national competitive bidding OCR – ordinary capital resources OFID – OPEC Fund for International Development PCR – project completion report PSDP – provincial sector development project RAR – rural access road RSDD – Road Sector Development Directorate RSDP – Road Sector Development Program SDR – special drawing rights WSD – Works and Services Department NOTES (i) The fiscal year (FY) of the Government of Pakistan and the provincial government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2010 ends on 30 June 2010. (ii) In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations 1 Director General J. Miranda, Central and West Asia Region Department (CWRD) Director H. Wang, Transport and Communications Division, CWRD Team leader A. Ahmad, Project Officer (Transport), Pakistan Resident Mission (PRM), CWRD Team members L. Ali, Associate Project Analyst, PRM, CWRD K. Butt, Senior Project Assistant, PRM, CWRD In preparing any county program or strategy, financing any project, or by making any designation of or to a particularly territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 A. Objective of the Project 1 B. Project Components and Scope 1 C. Implementation Arrangements 2 D. Project Cost and Financing Plan 2 E. Loan Amount, Terms, and Utilization Period 2 F. Loan Fund Utilization 2 G. Results of Program 3 II. EVALUATION OF DESIGN AND IMPLEMENTATION 3 A. Relevance of Design and Formulation 3 B. Project Outputs 3 C. Project Costs 5 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Related Technical Assistance 7 I. Consultant Recruitment and Procurement 7 J. Performance of Consultants, Contractors, and Suppliers 8 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness in Achieving Outcome 10 C. Efficiency in Achieving Outputs and Outcome 11 D. Preliminary Assessment of Sustainability 11 E. Impact 11 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 12 A. Overall Assessment 12 B. Lessons 13 C. Recommendations 14 APPENDIXES 1. Projected Outputs and Actual Results 2. Project Cost 3. Projected and Actual Contract Awards and Disbursement 4. Contract Awards and Disbursement Performance 5. Implementation Schedule 6. Chronology of Events 7. Loan Covenants Compliance Status 8. Consulting Services 9. Procurement of Civil Works 10. Economic Reevaluation i BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Number 1892-PAK and 1893-PAK(SF) 3. Project Title Road Sector Development Program Provincial Sector Development Project (Sindh) 4. Borrower Islamic Republic of Pakistan 5. Executing Agency Communication and Works Department, Sindh 6. Amount of Loan $150 million 1892-PAK: ¥9,118,900,000 (equivalent to $75 million) 1893-PAK(SF) SDR59,279,000 (equivalent to $75 million) 7. Project Completion Report PCR:PAK 1174 Number B. Loan Data 1. Appraisal – Date Started 10 September 2001 – Date Completed 10 November 2001 2. Loan Negotiations – Date Started 21 November 2001 – Date Completed 22 November 2001 3. Date of Board Approval 19 December 2001 4. Date of Loan Agreement 1 February 2002 5. Date of Loan Effectiveness – In Loan Agreement 1 May 2002 – Actual 25 September 2002 – Number of Extensions 1 6. Closing Date – In Loan Agreement 30 June 2007 – Actual 30 June 2009 – Number of Extensions 1 7. Terms of Loan Ordinary Capital Resources – Interest Rate London interbank offered rate – Maturity (number of years) 15 – Grace Period (number of years) 3 ii Special Fund Resources – Interest Rate 1% during the grace period and 1.5% thereafter – Maturity (number of years) 32 – Grace Period (number of years) 8 8. Terms of Relending (if any) Ordinary Capital Resources – Interest Rate London interbank offered rate – Maturity (number of years) 15 – Grace Period (number of years) 3 – Second-Step Borrower Not Applicable Special Fund Resources – Interest Rate 1.0% during the grace period and 1.5% thereafter – Maturity (number of years) 32 – Grace Period (number of years) 8 – Second-Step Borrower Not Applicable 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 25 September 2002 16 July 2010 93 months, 21 days Effective Date Original Closing Date Time Interval 25 September 2002 30 June 2007 57 months, 8 days b. Amount Loan 1892-PAK (¥ '000) Category or Subloan Original Net Amount Undisbursed Allocation Amount Disbursed Balance Available Civil Works -Provincial Highways 2,347,200 2,347,200 1,317,207 1,029,994 -Rural Access Roads 4,743,600 4,743,600 4,491,325 252,275 Equipment -Vehicles 14,600 14,600 14,600 -Office Equipment 8,500 8,500 6,162 2,337 Incremental Administration 53,500 53,500 41,751 11,749 Consulting Services 564,200 564,200 507,558 56,642 Interest Charge 444,400 353,211 353,211 Front End Fee 91,189 91,189 Unallocated 942,900 942,900 942,900 Total 9,118,900 9,118,900 6,808,403 2,310,497 A final cancellation of ¥2,310,497,066 was effected on 16 July 2010. iii Loan 1893-PAK(SF), (SDR '000) Category or Subloan Original Net Amount Amount Undisbursed Allocation Available Disbursed Balance Civil Works -Provincial Highways 15,258 15,258 7,772 7,485 -Rural Access Roads 30,837 30,837 27,502 3,335 Equipment -Vehicles 95 95 177 (81) -Office Equipment 55 55 36 19 Incremental Administration 348 348 289 59 Consulting Services 3,667 3,667 3,110 557 Interest Charge 2,889 2,889 632 2,257 Unallocated 6,130 6,130 6,130 Total 59,279 59,279 39,518 19,761 A final cancellation of SDR19,761,422.01 was effected on 16 July 2010. 10. Local Costs (Financed) - Amount ($) million 51.8 - Percent of Local Costs 39.3 - Percent of Total Cost 22.0 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 104.12 95.96 Local Currency Cost 131.88 99.37 Total 236.00 195.33 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 71.00 58.75 ADB Financed 142.70 117.66 Other External Financing (OFID) 15.00 14.72 Total 228.70 119.13 IDC Costs Borrower Financed ADB Financed 7.30 4.20 Other External Financing Total 236.00 195.33 ADB = Asian Development Bank, IDC = interest during construction, OFID = OPEC Fund for International Development. iv 3. Cost Breakdown by Project Component ($ million) Component Appraisal Actual Estimate 1. Land Acquisition and Resettlement 1.50 1.70 2. Civil Works A. Provincial Highways 66.97 38.93 B. Rural Access Roads 129.17 140.39 3. Poverty Reduction Pilot Project 0.25 0.09 4. Consulting Services A. Civil Works 6.22 6.69 B. Road Sector and Institutional Reforms 2.81 2.45 5. Program Administration 0.88 0.38 6. Provincial Sector Reforms (RSDD) 5.00 0.17 7. Equipment and Vehicles 0.38 0.33 8. Physical and Price Contingency 15.51 9. Interest Charges During Construction 7.31 4.19 Total 236.00 195.33 RSDD = Road Sector Development Directorate. 4. Project Schedule Item Appraisal EstimateActual Advance Procurement Actions Design Updates and Preparation of Bid Jul 01–Dec 01 Aug 01–Jan 04 Documents for PHs and Core RARs Prequalification of Contractors Jan 02–Mar 02 Aug 01–Sep 04 Bidding for PHs and Core RARs Apr 02–Jun 02 Dec 04–Aug 06 Solicitation and Evaluation of Supervision Jan 02–Mar 02 Jan 02–July 04 Consultants' Proposals Consulting Services Appointment and mobilization Apr 02–Jun 02 Aug 04–Oct 04 Construction Supervision of PHs and Core RARs Oct 02–Sep 04 May 05–Jun 09 Selection and Design of RARs Jul 02–Dec 04 Jan 05–Dec 06 Construction Supervision of RARs Jul 03–Dec 06 Jun 05–Jun 09 Appointment of Consultants for Sector and Institutional Reforms Jul 02–Sep 02 Oct 04 Sector/Institutional Reforms Implementation Oct 02–Mar 06 Jan 05–Jun 09 Civil Works Implementation Tender Evaluation and Award of PHs and Core RARs Jul 02–Sep 02 Dec 04–Aug 06 Construction of PHs and Core RARs Oct 02–Sep 04 May 05–Dec 09 Bid Evaluation and Award of RARs Apr 03–Sep 05 Apr 05–Mar 08 Construction of RARs Jul 03–Dec 06 Jun 05–Jun 09 PH = provincial highway, RAR = rural access road. v 5. Project Performance Report Ratings Implementation Period Ratings Development Objectives Implementation Progress 30 Dec 2001 to 29 Aug 2002 Satisfactory Satisfactory 30 Aug 2002 to 28 Sep 2002 Satisfactory Unsatisfactory 29 Sep 2002 to 30 Jun 2009 Satisfactory Satisfactory D. Data on Asian Development Bank Missions Name of Mission Date No. of No. of Specialization Persons Person- of Members Days Inception 19 November 2002 2 18 a, b Review 1 12 January 2004 2 8 a, b Review 2 17 May 2004 2 8 a, b Review 3 7 February 2005 2 6 a, b Review 4 26 April 2005 2 10 a, b Review 5 21 November 2005 1 6 a Mid-Term Review 20 September 2006 4 52 a, b, c, d Review 6 12 September 2006 1 2 a Review 7 5 November 2007 1 6 e Review 8 18 August 2008 3 15 b, e, f Review 9 6 April 2009 2 18 b, e Pre-Project Completion 14 January 2010 2 14 b, e Review Project Completion 1 March 2010 2 26 b, e Review a = senior project specialist, b = project analyst, , c = senior environmental specialist, d = transport economist (consultant), e = project implementation officer, f = social safeguard officer, no.
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