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Pakistan: National Highway Development Sector Investment Program—Project 1

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Pakistan: National Highway Development Sector Investment Program—Project 1 Completion Report Project Number: 37559 Loan Numbers: 2210 and 2231 December 2011 Pakistan: National Highway Development Sector Investment Program—Project 1 CURRENCY EQUIVALENTS Currency Unit – Pakistan rupee/s (PRe/PRs) At Appraisal At Project Completion (25 July 2005) (31 December 2010) PRe1.00 = $0.0168 $0.0116 $1.00 = PRs59.52 PRs85.76 ABBREVIATIONS ADB – Asian Development Bank DMF – design and monitoring framework EIRR – economic internal rate of return GDP – gross domestic product HDM – highway development and management km – kilometer LARP – land acquisition and resettlement plan LIBOR – London interbank-offered rate MFF – multitranche financing facility NHA – National Highway Authority NHDP – National Highway Development Plan NHDSIP – National Highway Development Sector Investment Program NHMP – National Highway and Motorway Police NTP – national transport policy PIU – project implementation unit PPP – public–private partnership RRP – report and recommendation of the President TA – technical assistance VOC – vehicle operating cost VOT – vehicle operating time NOTES (i) The fiscal year (FY) of the Government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2010 ends on 30 June 2010. (ii) In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations 1 Director General J. Miranda, Central and West Asia Department (CWRD) Director H. Wang, Transport and Communications Division, CWRD Team leader N. Singru, Senior Transport Specialist, CWRD Team members Z. Naqvi, Project Officer (Transport), CWRD L. Protacio, 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 judgment 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 2 A. Relevance of Design and Formulation 2 B. Project Outputs 2 C. Project Costs 4 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 5 G. Conditions and Covenants 6 H. Related Technical Assistance 6 I. Consultant Recruitment and Procurement 6 J. Performance of Consultants, Contractors, and Suppliers 7 K. Performance of the Borrower and the Executing Agency 7 L. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 8 A. Relevance 8 B. Effectiveness in Achieving Outcome 9 C. Efficiency in Achieving Outcome and Outputs 10 D. Preliminary Assessment of Sustainability 11 E. Impact 12 IV. OVERALL ASSESSMENT AND RECOMENDATIONS 14 Appendix1 A. Overall Assessment 14 B. Lessons 14 C. Recommendations 15 1 APPENDIXES 1. Design and Monitoring Framework: Performance Assessment 16 2. Projected Outputs and Actual Results 21 3. Projected and Actual Contract Awards and Disbursement and Contract Awards and Disbursement Performance 22 4. Implementation Schedule 24 5. Chronology of Major Events 25 6. Loan Covenants Compliance Status for Loan 2231 and Loan 2210 28 7. Consultant Recruitment and Procurement 35 8. Land Acquisition and Resettlement for the National Highway 70 Multan–Muzaffargarh Subproject 36 9. Economic Reevaluation 41 BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Numbers 2210 and 2231 3. Project Title National Highway Development Sector Investment Program, Project 1 4. Borrower Islamic Republic of Pakistan 5. Executing Agency National Highway Authority 6. Amount of Loans 2210: SDR2,080,000 (equivalent to $3 million) 2231: $180 million 7. Project Completion Report PCR:PAK 1286 Number B. Loan Data 1. Appraisal – Date Started 25 July 2005 – Date Completed 12 August 2005 2. Loan Negotiations – Date Started 28 October 2005 – Date Completed 29 October 2005 3. Dates of Board Approval – Loan 2210 13 December 2005 – Loan 2231 15 February 2006 4. Date of Loan Agreement 14 June 2006 5. Date of Loan Effectiveness – In Loan Agreement 14 September 2006 Appendix1 – Actual 27 July 2006 – Number of Extensions 0 6. Loan Closing Date – In Loan Agreement 31 December 2010 for both loans – Actual 31 March 2011 for Loan 2210; i 19 April 2011 for Loan 2231 – Number of Extensions 0 7. Terms of Loan Ordinary Capital Resources Loan 2231 – Interest Rate London interbank-offered rate – Maturity (number of years) 25 – Grace Period (number of years) 5 Special Fund Resources Loan 2210 – Interest Rate 1% during grace period, 1.5% thereafter – Maturity (number of years) 32 – Grace Period (number of years) 8 ii 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval Loan 2210 46 months, 21 days 10 May 2007 31 March 2011 Loan 2231 15 December 2006 19 April 2011 52 months, 4 days Effective Date Original Closing Date Time Interval 27 July 2006 31 December 2010 53 months, 4 days Note: Loans 2210 and 2231 have the same effectivity and original closing dates. b. Amounts (i) Loan 2210 (SDR) Original Net Amount Amount Undisbursed Category Allocation Available Disbursed Balance 1. Capacity Building a. Consulting Services 1,421,000 431,970 431,970 0 b. Computerized Traffic Management System 243,000 0 0 0 c. Governance Website 69,000 0 0 0 2. Interest Charge 208,000 3,455 3,455 0 3. Unallocated 139,000 0 0 0 Total 2,080,000 435,425 435,425 0 Source: Loan Agreement and Asian Development bank loan financial information system. (ii) Loan 2231 ($ million) Original Net Amount Undisbursed Allocation Amount Disbursed Balance Category Available 1. National Highway Improvement a. Civil Works 128.00 110.71 110.71 0.00 b. Consulting Services— Construction Supervision 9.30 6.74 6.74 0.00 c. Consulting Services—Project Management 1.20 0.00 0.00 0.00 2. Incremental Administration Cost 3.90 0.00 0.00 0.00 3. Interest and Commitment Charge 7.80 5.67 5.67 0.00 4. Unallocated 29.80 0.00 0.00 0.00 Total 180.00 123.12 123.12 0.00 Source: Loan Agreement and Asian Development Bank loan financial information system. iii C. Project Data 1. Project Cost Loan 2210 (SDR) Cost Appraisal Estimate Actual Foreign Exchange Cost 2,080,000 435,425 Local Currency Cost 0 0 Total 2,080,000 435,425 Loan 2231 ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 121.7 123.0 Local Currency Cost 98.6 36.5 Total 220.3 159.5 2. Financing Plan Loan 2210 (SDR) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 0 0 ADB Financed 1,872,000 431,970 Subtotal 1,872,000 431,970 IDC Cost Borrower Financed 0 0 ADB Financed 208,000 3,455 Subtotal 208,000 3,455 Total 2,080,000 435,425 ADB = Asian Development Bank, IDC = interest during construction. Loan 2231 ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 98.6 36.5 ADB Financed 113.9 117.3 Subtotal 212.5 153.8 IDC Costs Borrower Financed 0 0 ADB Financed 7.8 5.7 Subtotal 7.8 5.7 Total 220.3 159.5 ADB = Asian Development Bank, IDC = interest during construction. iv 3. Cost Breakdown by Project Component ($ million) Loan 2210 Component Appraisal Estimate Actual 1. Capacity Building a. Consulting Services 1.685 0.672 b. Training 0.364 0.000 c. Computerized Traffic Management System 0.350 0.000 d. Governance Website 0.099 0.000 2. Interest Charge 0.300 0.005 3. Unallocated 0.200 0.000 Total 3.000 0.677 Source: Asian Development Bank loan financial information system. Loan 2231 Component Appraisal Estimate Actual 1. National Highway Improvement a. Civil Works 120.00 147.10 b. Consulting Services—Construction 11.08 6.67 Supervision c. Consulting Services—Project Management 20.00 0.00 2. Incremental Administration Cost 20.00 0.00 3. Interest and Commitment Charge 6.90 5.7 Total 180.00 159.50 Note: $40 million cancelled on 11 September 2009 and 30 June 2010 ($20.0 million on each occasion) and $16.7 million cancelled in April 2011 at loan closing. Source: Asian Development Bank loan financial information system. 4. Project Schedule Item Appraisal Estimate Actual Advance Procurement Actions Design Updates and Preparation of Bid Documents Jul 2001–Dec 2001 Aug 2001–Jan 2004 Prequalification of Contractors Jan 2002–Mar 2002 Aug 2001–Sep 2004 Civil Works Construction Jan 2009–Jun 2010 Jan 2007–Jun 2010 Hub–Uthal Jan 2007–Jan 2010 Multan–Muzaffargarh Feb 2007–Jun 2010 Muslim Bagh–Qila Saifullah Apr 2007–Sep 2009 5. Project Performance Report Ratings Ratings Implementation Period Development Objectives Implementation Progress Loan 2210 27 Jul 2006–31 Dec 2010 Satisfactory Satisfactory Loan 2231 27 Jul 2006–31 Dec 2006 Satisfactory Satisfactory 1 Jan 2007–28 Feb 2007 Unsatisfactory Unsatisfactory 1 Mar 2007–31 Dec 2010 Satisfactory Satisfactory v D. Data on Asian Development Bank Missions Loan 2210 No. of Person- Specialization of Name of Mission Dates Persons Days Members Inception (upgraded from Consultation) 16–19 Jan 2006 3 9 a, b, c Review 13 Jul 2007 1 1 d Consultation 18 Dec 2007 4 4 a, e, f, g Consultation 6–9 Mar 2008 8 24 a, d, e, f, g, h, i, j Review 24 Apr 2008 3 3 b, e, g Review 26 Jun 2008 4 4 b, g, k, l Review 7–8 Sep 2008 5 10 b, e, g, h, i Review 3–4 Feb 2009 10 20 b, b, e, g, i, j, m, m, n, o Review 6–7 May 2009 7 14 b, f, j, n, o, p, q Review 5–6 Oct 2009 6 12 a, f, j, o, p, q Review 15–16 Mar 2010 7 14 a, b, f, j, p, q, r Review 29 Jul 2010 4 4 a, b, f, q Project Completion Review 12–15 Sep 2011 2 6 g, l a = senior transport specialist, b= transport specialist, c = associate project analyst, d = transport economist, e = senior investment specialist, f = project officer, g = transport officer, h = senior portfolio management specialist, i = safeguards officer, j = assistant project analyst, k = senior project implementation specialist, l = staff consultant, m = senior project management specialist, n = senior transport economist, o = senior resettlement specialist, p = head of project management unit, q = social safeguard officer, r = principal resettlement specialist.
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