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Balochistan Fisheries Development Project (Loan No PPA:PAK 15031 ASIAN DEVELOPMENT BANK CURRENCY EQUIVALENTS Currency Unit - Pakistan Rupees (PRs) At Appraisal At Project Completion At Postevaluation PRs1 .00 = $0. 0822 $0. 0396 S0.0323 $1.00 = PRs12.16 PRs25.19 PRs31 .00 ABBREVIATIONS ADBP Agricultural Development Bank of Pakistan DOFB Directorate of Fisheries, Government of Balochistan EA Executing Agency EIRR Economic Internal Rate of Return PCR Project Completion Report PEM Postevaluation Mission PFHA Pasni Fisheries Harbor Authority PPAR Project Performance Audit Report NOTES (i) The fiscal year (FY) of the Government ends on 30 June. (ii) In this Report, '$" refers to US dollars. (iii) In this Report, "ton' (t) refers to metric ton. PE - 451 CONTENTS Page BASIC PROJECT DATA MAPS: II III HIGHLIGHTS 1 BACKGROUND 2 Rationale 2 A. B. Formulation 2 Objectives and Scope at Appraisal 2 C. D. Financing Arrangements 3 Project Completion 4 E. F. Ex-Postevaluation 4 Ill. IMPLEMENTATION PERFORMANCE 4 A. Design 4 B. Contracting, Construction, and Commissioning 5 Organization and Management 6 C. Actual Cost and Financing 7 D. E. Implementation Schedule 7 F. Technical Assistance 7 G. Compliance with Loan Covenants 8 IV. PROJECT RESULTS 8 8 A. Operational Performance B. Institutional Development 9 C. Financial Performance 10 D. Economic Reevaluation 11 12 E. Socioeconomic and Sociocultural Results F. Women in Development 12 G. Environmental Impacts and Control 12 H. Gestation and Sustainability 12 V. KEY ISSUES FOR THE FUTURE 13 A. PFHA Autonomy 13 B. Credit Design 13 VI. CONCLUSIONS 13 13 A. Overall Assessment Lessons Learned 14 B. C. Follow-up Actions 14 APPENDIXES 15 BASIC PROJECT DATA Balochistan Fisheries Development Project (Loan No. 619-PAK[SF]) PROJECT PREPARATION/INSTITUTION BUILDING: Person- TA No. TA Project Name Iy months Amount Approval Date 397-PAK Balochistan Fisheries DeveLopment PP 22 $350,000 23 Jan. 1981 500-PAK Balochistan Fisheries Development AO - $250,000 21 Dec. 1982 As per Bank KEY PROJECT DATA ($million): Loan Documents Actual Total Project Cost 42.4 31 .2a Foreign Currency Cost 28.5 17.6 Bank Loan Amount/Utilization 35.4 32.7 Bank Loan Amount/Cancellation 2.7 KEY DATES: Expected Actual Fact-finding 6-25 May 1982 Appraisal 9-29 Aug 1982 Board Approval 21 Dec 1982 Loan Agreement 14 Jan 1983 Loan Effectiveness 14 Apr 1983 11 May 1984 First Disbursement 28 Dec 1984 Project Completion 31 Dec 1989 Feb 1992 Loan Closing 30 Jun 1990 26 Aug 1991 Months (Effectiveness to Completion) 80 93 KEY PERFORMANCE INDICATORS (%): Appraisal PCR PPAR Economic Internal Rate of Return (ELRR) 28 Not Calculated 15 Financial Internal Rate of Return (FIRR) 26 to >50b Not Calculated Not Calculated BORROWER: Islamic Republic of Pakistan EXECUTING AGENCIES: (I) Pasni Fisheries Harbor Authority (PFHA) (ii) Agricultural Development Bank of Pakistan (ADBP) (iii) Directorate of Fisheries, Government of Balochistan (DOFB) MISSION DATA: Type of Mission No. of Missions Person-days Fact-finding 1 80 Appraisal 118 Project Administration: - Review 6C 69 - Special Project Administration gC 122 - Project Completion 1 38 Postevaluation 1 30 Excluding the reallocation of $11.0 million to the Special Assistance Program for Pakistan in 1991. b Component range for fishing operators, ice plants, harbor operations, fishmeal plant operations. Some of these missions also reviewed other Bank-financed projects in the country. 63°00E 65°00E PA K IS TA N BALOCHISTAN FISHERIES DEVELOPMENT PROJECT 4 BALOCHISTAN COAST 0 20 40 60 Kilometers Panjgur I 27°00N 27°00N -1 () City 0 Town ____JL__ Road (Metalled) Road (Unmetalled) Trail River Mand Turbat Hoshab JHALAWAN Kalmat Pasnu Jabeli Sur Gwadar Rassmai Bander I àOrmara Jiwani I \N LOCATION OF PASNI I- 25°00N FISHERIES HARBOR )0N -1 KAHACHI 63°00E 65°00E -o 95-1646a HR / " DEPARTMENTOF j / . IRRIGATION COMPOUND / PA K IS TA N BALOCHISTAN FISHERIES DEVELOPMENT PROJECT PASNI FISHERIES HARBOR LAYOUT OFFICE DEPARTMENT OF FISHERIES OF / 4 '' GUEST HOUSE 4' MINISTRY OF ' ,' -----/ S(/p COMMUNICATIO 0 50 100 Meters / Area of Limited Access DECK LEVELS JIJ - - - Site Boundary (Boundaries not necessarily authoritative) SURFAC' WATER TA K NORTH BREAKWATER PUMP ROOM / STARBOARD BEACON 9HOTLL / PORT BEACON _\ CREST LEVELS SOUTH CAUSEWAY SOUTH BREAKWATER -c N.) 95-1648b HR I. HIGHLIGHTS 1. Objectives and Scope. The Project aimed to assist the development of marine fisheries in Balochistan and to improve the socioeconomic conditions and the nutritional intake of fishing communities through (i) construction of a fisheries harbor complex at Pasni; (ii) provision of credit lines to the private sector for the construction of marketing, processing, and transportation facilities and to fishermen for the purchase of marine engines and modern fishing gear; (iii) training programs for fishermen, extension officers, and staff of the Pasni Fisheries Harbor Authority (PFHA); and (iv) consulting services to assist in the design and implementation of the Project. 2. Cost, Financing, and Schedule. The actual cost of the Project was $31 .2 million, $1 1.2 million less than the appraisal estimate of $42.4 million. Compared with an approved loan amount of $35.4 million, disbursements amounted to $32.7 million, including $1 1 .0 million allocated to the Special Assistance Program for Pakistan in 1991. The Project was completed in February 1992, 26 months later than envisaged at appraisal. 3. Implementation. The Project succeeded in constructing the fisheries harbor complex at Pasni and in delivering the training programs. Funding of marine engines and fishing gear was less than envisaged at appraisal, as was the take-up of credit for the purchase and operation of marketing and transport facilities. However, the targeted number of marine engines and quantum of fishing gear were met from alternative funding sources. Minor changes in scope saw the addition of protection works at the harbor, an increase in the allocation of fellowships, and increased consulting services. Because local conservation practices bar the catch of sardines, the construction of the fishmeal plants was indefinitely deferred. 4. Institutional Aspects. The organizational arrangements involved three Executing Agencies (EAs): the Balochistan Government's Directorate of Fisheries (DOFB), the Agricultural Development Bank of Pakistan (ADBP), and PFHA. The project staff added to their experience in implementing fisheries development projects and gained operational experience. There remains a need to strengthen the financial viability of the Project through increased user charges and through the development of improved financial and management information systems. 5. Environmental Impact. No environmental risk factors resulting from overexploitation and waste disposal were evident. However, erosion problems associated with the harbor require attention. 6. Cost/Benefit Assessment. The Project accelerated the introduction of large diesel-powered fishing vessels and demonstrated the importance of improved fishing gear. Based on participating fishermen's net operating returns and the capital costs of the Project, including expenditure on institutional support, the Project shows an economic internal rate of return (EIRR) of 15 percent. The socioeconomic status of the vessel owners and crew was enhanced considerably. 7. Overall Performance and Sustainability. Except for the poor utilization of the credit lines, implementation closely followed the appraisal design and plan for execution and the Project's objectives were largely met. The Project facilities are soundly constructed and the economic benefits are considered sustainable. Taking into account the success of the Project in achieving its aims and the ex-post EIRR of 15 percent, the Project is rated generally successful. 8, Feedback. The Project brought attention to (I) the need to ensure at appraisal that implementation of the components does not compete with alternative programs and organizations offering cheaper credit arrangements, (ii) the importance of engaging contractors with proven experience, and (iii) the need to ensure in the design for management of projects that the representation and requirements of Steering Committees are practical and that the established harbor authorities are vested with stronger management autonomy. II. BACKGROUND A. Rationale 9. The waters along Pakistan's 1,100-kilometer coastline have abundant fish resources. The Three-Year Public Sector Development Plan (1981/82-1983/84) recognized that development of this resource could improve the socioeconomic conditions of the population living in the arid coastal areas, increase the supply of inexpensive protein food, and increase foreign exchange earnings. The overall thrust in developing the fisheries sector was to (I) introduce larger vessels; (ii) expand the use of motorized vessels and modernize fishing equipment; and (iii) improve fisheries infrastructure, including harbors, onshore facilities, and training. B. Formulation 10. A Project preparatory study was undertaken between July and November 1981 under a Bank technical assistance. 1 Details of the Project components and implementation arrangements were finalized after a Bank Fact-finding Mission in May 1982 and an Appraisal Mission in August 1982. Project formulation took cognizance of the experience and lessons derived from implementation of the then only postevaluated fisheries project in Pakistan. 2 This pointed to the need for design proposals to take into account fishermen's preferences for marine engines and to include workshops by the supplier
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