PCR: Pakistan: Balochistan Road Development Sector Project
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Completion Report Project Number: 34333 Loan Number: 2019 and 2020 June 2012 Pakistan: Balochistan Road Development Sector Project CURRENCY EQUIVALENTS Currency Unit – Pakistan rupee/s (PRe/PRs) At Appraisal At Project Completion (1 October 2003) (30 November 2011) PRe1.00 = $0.0169 $0.0113 $1.00 = PRs59.00 PRs88.24 $1.00 = ¥111.185 ¥77.93 ABBREVIATIONS ADB – Asian Development Bank CWD – Communication and Works Department of Balochistan EIRR – economic internal rates of return ICB – international competitive bidding IEE – initial environmental examination NHA – National Highway Authority of Pakistan PMU – project management unit SDR – special drawing rights TA – technical assistance NOTES (i) The fiscal year (FY) of the government of Pakistan and the provincial government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2010 ends on 30 June 2010. (ii) In this report, ―$‖ refers to US dollars, ―¥‖ refers to Japanese Yen. Vice-President X. Zhao, Operations 1 Director General K. Gerhaeusser, Central and West Asia Department (CWRD) Director H. Wang, Transport and Communications Division, CWRD Team leader J. Ning, Senior Transport Specialist, CWRD Team member K. Butt, Associate Project Analyst, CWRD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular 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 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 4 D. Disbursements 4 E. Project Schedule 5 F. Implementation Arrangements 5 G. Conditions and Covenants 6 H. Related Technical Assistance 6 I. Consultant Recruitment and Procurement 7 J. Performance of Consultants and Contractors 7 K. Performance of the Borrower and the Executing Agency 8 L. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness in Achieving Outcome 9 C. Efficiency in Achieving Outcome and Outputs 10 D. Preliminary Assessment of Sustainability 11 E. Impact 11 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 13 C. Recommendations 14 APPENDIXES 1. Latest Project Status for Loan 2019 16 2. Project Framework 17 3. Summary of Provincial Institutional Development Component 21 4. Project Cost and Financing Plan 24 5. Disbursement of ADB Loan Proceeds 26 6. Appraisal and Actual Implementation Schedules Compared 27 7. Chronology of Major Events 28 8. Organizational Structure for Project Implementation 30 9. Status of Compliance with Major Loan Covenants 32 10. Summary of Contract Packages 38 11. Economic Reevaluation 39 12. Summary of the Technical Assistance Loan (Loan 2020) 45 BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Numbers Loan 2019-PAK and Loan 2020-PAK(SF) 3. Project Title Balochistan Road Development Sector Project 4. Borrower Islamic Republic of Pakistan 5. Executing Agencies (i) National Highway Authority (ii) Communication and Works Department of Balochistan 6. Amount of Loan (i) Loan 2019: ¥20,266,370,000 from the ordinary capital resources (ii) Loan 2020: SDR701,000 from the Asian Development Fund 7. Project Completion Report Number PAK-1321 B. Loan Data 1. Appraisal – Date Started 16 July 2003 – Date Completed 22 July 2003 2. Loan Negotiations – Date Started 22 October 2003 – Date Completed 23 October 2003 3. Date of Board Approval 20 November 2003 for both loans 4. Date of Loan Agreement 17 March 2004 for both loans 5. Date of Loan Effectiveness – In Loan Agreement 90 days after loan agreement signed – Actual 20 August 2004 for both loans – Number of Extensions One 6. Closing Date Loan 2019 – In Loan Agreement 31 December 2009 – Actual 31 August 2010 – Number of Extensions One Loan 2020 – In Loan Agreement 31 December 2009 – Actual 31 December 2009 – Number of Extensions None 7. Terms of Loan Loan 2019, Ordinary Capital Resources – Interest Rate LIBOR-based lending facility – Commitment Charges 0.75% – Maturity (number of years) 25 – Grace Period (number of years) 5 – Front-end Fee 0.5% Loan 2020, Asian Development Fund – Interest Rate 1.0% yearly during grace period 1.5% yearly after grace period ii – Maturity (number of years) 32 – Grace Period (number of years) 8 8. Terms of Relending (if any) None – Interest Rate – Maturity (number of years) – Grace Period (number of years) – Second-Step Borrower 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval Loan 2019 19 December 2005 8 April 2011 63 months Loan 2020 13 June 2007 26 April 2010 34 months Effective Date Original Closing Date Time Interval 20 August 2004 31 December 2009 64 months Note: Loans 2019 and 2020 have the same effectivity and original closing dates. b. Loan 2019, Amount (¥ ’000) Last Amount Original Revised Increased/ Amount Undisbursed Category Allocation Allocation (Canceled) Disbursed Balancea 1 Civil Works 14,349,287 15,646,018 1,296,731 10,281,588 5,364,430 1A PAC 7,943,718 7,454,580 (489,138) 4,594,340 2,860,240 1B CDC 218,270 0 (218,270) 0 0 1C NHC 6,170,929 8,175,068 2,004,139 5,687,248 2,487,821 1D Maintenance 16,370 16,370 0 0 16,370 subcomponent of PAC 2 Equipment 381,973 218,270 (163,703) 61,846 156,424 2A PIDC 218,270 218,270 0 61,846 156,424 2B CDC 163,703 0 (163,703) 0 0 3 Incremental Administration 436,540 158,736 (277,804) 111,591 47,145 4 Consulting Services 1,407,842 1,469,179 61,337 932,268 536,912 4A Inst Development and Capacity Building under the 229,184 229,184 0 184,326 44,858 PIDC 4B Design and Construction 807,599 807,599 0 465,556 342,043 Supervision of PAC 4C Construction Supervision of 371,059 432,396 61,337 282,386 150,010 NHC 5 Front-end Fee 98,222 98,222 0 101,332 3,110 6 Interest and Commitment 873,080 873,080 0 615,516 257,565 Charges 7 Unallocated 2,719,426 217,967 (2,501,459) 0 217,967 Total 20,266,370 18,681,472 (1,584,898) 12,104,139 6,577,333 a Canceled at loan account closing. CDC = cross-border development component, NHC = national highway component, PAC = provincial access component, PIDC = provincial institutional development component. Source: Loan Agreement and Asian Development Bank loan financial information system. iii c. Loan 2020 (SF), Amount (SDR) Last Amount Original Revised Increased/ Amount Undisbursed Category Allocation Allocation (Canceled) Disbursed Balancea 1. Community Infrastructure 175,250 175,250 0 76,036 99,214 and Empowerment Fund 2. Social Protection and 175,250 175,250 0 31,682 143,568 Education Fund 3. Equipment 49,070 49,070 0 165,849 (116,779) 4. Consulting Services 175,250 175,250 0 4,240 171,010 5. Interest Charge 28,040 28,040 0 0 28,040 6. Unallocated 98,140 98,140 0 0 98,140 Total 701,000 701,000 0 277,807 423,193 a Canceled at loan account closing. Source: Loan Agreement and Asian Development Bank loan financial information system. 10. Local Costs (Financed) Loan 2019 – Amount ($ million) 11.1 – Percentage of Local Costs 13.2 – Percentage of Total Cost 5.2 Loan 2020 – Amount ($ million) 0.0 – Percentage of Local Costs 0.0 – Percentage of Total Cost 0.0 C. Project Data 1. Project Cost ($ million) Loan 2019 Cost Appraisal Estimate Actual Foreign Exchange Cost 162.5 129.6 Local Currency Cost 104.8 83.6 Total 267.3 213.2 Loan 2020 Cost Appraisal Estimate Actual Foreign Exchange Cost 1.00 0.44 Local Currency Cost 0.25 0.25 Total 1.25 0.69 iv 2. Financing Plan ($ million) Loan 2019 Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 81.6 99.6 ADB Financed 176.8 106.9 Total 258.4 206.5 Financial Chargesa Borrower Financed ADB Financed 8.9 6.7 Total 267.3 213.2 a Including front-end fee, interest during construction, and commitment fee. ADB = Asian Development Bank. Loan 2020 Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 0.250 0.250 ADB Financed 0.960 0.432 Total 1.210 0.682 Financial Chargesa Borrower Financed 0.000 0.000 ADB Financed 0.040 0.007 Total 1.250 0.689 a Including interest during construction. ADB = Asian Development Bank. 3. Cost Breakdown by Project Component ($ million) Loan 2019 Component Appraisal Estimate Actuala A. Base Cost 1. Provincial institutional development component a. Equipment 2.0 0.6 b. Consulting services 2.1 1.7 2. Provincial access component a. Land acquisition and resettlement 3.0 1.9 b. Provincial roads improvement 117.9 86.8 c. Consulting services—detailed design and 7.4 4.9 construction supervision 3. Cross-border development component a. Civil works 2.5 0.0 b. Equipment 1.5 0.0 4. National highway component a. Land acquisition and resettlement 1.0 3.6 b. National highway improvement 91.2 103.3 c. Consulting services—construction supervision 3.4 2.7 5. Incremental costs 4.0 1.0 B. Contingencies 22.4 0.0 C. Financial charges 8.9 6.7 Total 267.3 213.2 a Actual costs for the completed components and latest estimations for the incomplete components. v Loan 2020 Component Appraisal Estimate Actual 1. Community infrastructure and empowerment fund 0.250 0.120 2. Social protection and education fund 0.250 0.050 3. Equipment 0.070 0.000 4.