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Peshawar Sustainable Bus Rapid Transit Corridor Project

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Peshawar Sustainable Bus Rapid Transit Corridor Project Audited Project Financial Statements Project Number: 48289-002 Loan Number: 3543 Period covered: 15 November 2017 to 30 June 2019 PAK: Peshawar Sustainable Bus Rapid Transit Corridor Project Prepared by Peshawar Development Authority and TransPeshawar (The Urban Mobility Company) For the Asian Development Bank Date accepted by ADB: 29 September 2020 The audited project financial statements are documents owned by the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff. These documents are made publicly available in accordance with ADB’s Access to Information Policy and as agreed between ADB and the Peshawar Development Authority. Financial Attest Audit Report on the accounts of Construction of Peshawar Mass Transit System (BRT) Peshawar Sustainable Bus Rapid Transit Corridor Project, ADB loan No.3543-PK Financed by the Asian Development Bank and Govern.ment of Khyber Pakhtunkhwa For the financial year 2017-19 Auditor GenyaI o\akista~-~slamabad I I f , , r -r ~ .-,, • , • I,. " .'• . \ - 3 1 DEC 2019 Financial Attest Audit Report on the accounts of Construction of Peshawar Mass Transit System (BRT) Peshawar Sustainable Bus Rapid Transit Corridor Project, ADB loan No.3543-PK Financed by the Asian Development Bank and Governrnent of Khyber Pakhtunkhwa ]For the financial year 2017-19 Auditor General of Pakistan Islamabad TABLE OF CONTENTS Abbreviations and Acronyms ........................................................ .................................................. 1 Preface ........... ............ ............................... .................... .. ......... .. ........... .. ... ... .. ........... ....................... 2 PART-1 .......... ................................................................................................................................... 3 Project Overview ............. ....................... ......................................................................................... 4 Auditor' s Report .. .................... .. ........................ .. .. ........................................................................... 5 Financial Statements ....................................................................... ................... .. ....... ..................... 7 (Peshawar Development Authority) ..... ....................................................... ........... 8-31 Trans Peshawar Company ...................... ... ................... .. ................... ................ 32-43 PART-II ........................................................................................................................................ 44 Covering letter to the Management.... ......... .. ........................................... .................. .. ................. .45 Executive Summary ........ ........... ....................... .......................... .. .................................................46 Management Letter ........................................................................................................................ 48 1. Introduction .................................... .. ....................................... .............. 50 2. Audit Objective .............. .................... .. ... ................................. ... .. ......... 50 3. Audit Scope and Methodology ...................................................................... ... ... ........... ..... 50 4. AUDIT FINDINGS AND RECOMMENDATIONS ................ ................... ....................... 51 4.1 Organization and Management ...................................... ................. .. .. .. .... .. ... .. ............. .. .. .. 51 4.2 Financial Managernent ........................................................................................................ 51 4.3 Procurement and Contract Management ........................................................... .. ........ .. ...... 65 4.4 Construction and Works ...................................................................................................... 67 4.5 Asset Management ................................................................... ... ... ....... ..... .. ................ ....... 76 4.6 Monitoring and Evaluation .................................................................................................. 76 4.7 Con1pliance with rules ..... .. ........................ .. ..... .. ........................ ................ .. .......................76 4. 8 Performance Rating of the Project ............................... ...... ......................................... ........ 77 4.9 Risk Rating of the Project ................ ................................... .. ..... ......................................... 77 4.10 Compliance with grant/ loan covenants .. ............................ ................ ............................. .. 77 4.11 Environ1nent ....................................................... .................................................. .. .............. 77 4.12 Sustainability ......................................... ....... ........ .. ................................................. ............ 77 4 .13 Overall Assessment ........................... .,. ................................................................................ 77 5. CONCLUSION ........... ..................................................................................................... ... 78 ACKNOWLEDGEMENT ............................ ............................. .. .................. ... ........ ..................... 79 Annexures ... ................. .............................................................. ................................... ................. 80 Abbreviations and Acronyms A.A Administrative Approval ADB Asian Development Bank BOQ Bill of Quantity BRT Bus Rapid Transit CALSON Chaudary Abdul Latif & Sons CTR Central Treasury Rules DPs Displaced Person ECNEC Executive Committee of National Economic Council IPC Interim Payment Certificate IPSAS International Public Sector Accounting Standards ISSAI International Standards of Supreme Audit Institutions KPUMA Khyber Pakhtunkhwa Urban Mobility Authority LARP Land Acquisition and Resettlement Plan MMP Mot Macdonald Pakistan NMT Non-Motorized Transport PC-I Planning Commission Proforma-I PDA Peshawar Development Authority PEC Pakistan Engineering Council SNGCL Sui Northern Gas Company Limited TMTD Transport and Mass Transit Department TOOP Transit-Oriented Development Plan UTS Urban Transport System lJ Pa ge PREFACE The Auditor-General conducts audits subject to A1iicle 169 and 170 of the Constitution of the Islamic Republic of Pakistan 1973, read with Sections 8 and 12 of the Auditor-General's (Fun~tions, Powers and Terms and Conditions of Service) Ordinance, 2001. The Financial Attest Audit of the "Construction of Mass Transit System (BRT) Peshawar Sustainable Bus Rapid Transit Corridor Project" for the financial year 2018-19 and Trans Peshawar (The Urban Mobility Company) for the financial year 2017-18 and 2018-19 under ADB Loan No.3543-PAK, financed by the Asian Development Bank and Government of Khyber Pakhtunkhwa, was carried out according! y. The Directorate General, Audit, Khyber Pakhtunkhwa conducted Financial Attest Audit of the "Construction of Mass Transit System (BRT) Peshawar Sustainable Bus Rapid Transit Corridor Project under ADB Loan No. 3543-PAK, financed by the Asian Development Bank and Government of Khyber Pakhtunkhwa for the financial year 2018-19 and Trans Peshawar for financial year 2017-18 respectively in September 2019, with a view to reporting significant findings to stakeholders. Audit examined the economy, efficiency, and effectiveness aspects of the project. In addition, Audit also assessed, on a test check basis, whether the management complied with the applicable laws, rules and regulations in managing the project. The Audit Repo1i indicates specific actions that, if taken, will help the management realize the objectives of the project. The report was finalized in light of the discussion with the Project Management. The Principal Accounting Officer was also requested to convene the DAC meeting however; it was not convened till finalization of this report. The report consists of two paiis. Part-I contains Auditor' s Repo1i (Audit Opinion) and Financial Statements. Part-II contains Executive Summary, Management Letter and Audit Findings. The report has been prepared for submission to the Asian Development Bank in terms of its loan agreement with the Govermnent of Khyber Pakhtunkhwa. N1~ Dated: 12-- / 11..L2019 (Asmat Ullah Shah)--­ Peshawar Director General Audit Khyber Pakhtunkhwa 21 Page PART-I 1. PROJECT OVERVIEW 2. AUDITOR'S REPORT TO THE MANAGEMENT 3. FINANCIAL STATEMENTS 3 1P age PROJECT OVERVIEW Name of the Project Construction of Mass Transit System (BRT) Peshawar Sustainable Bus Rapid Transit Conidor Project Sponsoring Authority Asian Development Bank Executing Authority Government of Khyber PakhtW1khwa, Transport and Mass Transit Department through Khyber Pakhtunkhwa Urban Mobility Authority and Peshawar Development Authority Loan No 3543- PAK PC-I Cost (Original) Rs. 49.346 billion PC-I Cost (Revised) Rs. 66.437 billion ADB share (Original) Rs. 41.881 billion ADB share (Revised) Rs. 53.320 billion Khyber Pakhtunkhwa share (Original) Rs. 7.465 billion Khyber Pakhtunkhwa share (Revised) Rs. 13.117 billion Date of commencement ( original) December 2017 Date of commencement (Actual) December, 2017
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