Completion Report
Project Number: 29586 Loan Number: 1787-PAK (SF) December 2010
Pakistan: North-West Frontier Province Barani Area Development Project, Phase II
CURRENCY EQUIVALENTS
Currency Unit – Pakistan rupee/s (PRe/PRs)
At Appraisal At Project Completion 14 October 2000 31 December 2008 PRe1.00 = $0.0172 $0.0126 $1.00 = PRs58.025 PRs79.150
ABBREVIATIONS
ADB – Asian Development Bank BTR – blacktop road CCB – Citizen Community Board EA – executing agency EIRR – economic internal rate of return IA – implementing agency IFAD – International Fund for Agricultural Development MVO – men’s village organization NGO – nongovernment organization NWFP – North-West Frontier Province PFI – participating financial institution SDR – special drawing rights TA – technical assistance WCO – women’s community organization WVO – women’s village organization
WEIGHTS AND MEASURES
ha – hectare kg – kilogram km – kilometer
NOTES
(i) The fiscal year (FY) of the government ends on 30 June.
(ii) In this report, "$" refers to US dollars.
Vice President Xiaoyu Zhao, Operations 1 Director General J. Miranda, Central and West Asia Department (CWRD) Director R. Stroem, Pakistan Resident Mission (PRM), CWRD
Team leader I. Raza, Project Implementation Officer, PRM, CWRD Team member A. Bhandara, Project Implementation Officer, PRM, CWRD M. Bukhari, Assistant Project Analyst, 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 of 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 4 C. Project Costs 9 D. Disbursements 9 E. Project Schedule 10 F. Implementation Arrangements 10 G. Conditions and Covenants 10 H. Consultant Recruitment and Procurement 11 I. Performance of Consultants, Contractors, and Suppliers 11 J. Performance of the Borrower and the Executing Agency 11 K. Performance of the Asian Development Bank 12 III. EVALUATION OF PERFORMANCE 12 A. Relevance 12 B. Effectiveness in Achieving Outcome 12 C. Efficiency in Achieving Outcome and Outputs 13 D. Preliminary Assessment of Sustainability 13 E. Impact 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 15 C. Recommendations 15 APPENDIXES 1. Project Outputs and Achievements at Completion 16 2. Technical Evaluation of Civil Works 21 3. Beneficiary Share as Appraised and Completed 29 4. Project Costs and Financing Plan 31 5. Contract Awards and Disbursement Performance 32 6. Project Implementation Schedule 33 7. Status of Compliance to Loan Covenants 35 8. Consulting Services Input Utilization 40 9. Economic and Financial Analyses 42 10. Gender and Development Provisions and Achievements 46 11. Project Rating 50
BASIC DATA (Asian Development Bank Loan)
A. Loan Identification
1. Country Pakistan 2. Loan Number 1787 3. Project Title North-West Frontier Province Barani Area Development Project, Phase II 4. Borrower Islamic Republic of Pakistan 5. Executing Agency Planning, Environment, and Development Department, Government of Khyber Pakhtunkhwa 6. Amount of Loan SDR40,065,000 (equivalent of US$52.0 million) 7. Project Completion Report PCR: PAK 1214 Number
B. Loan Data 1. Appraisal – Date Started 17 July 2000 – Date Completed 28 July 2000
2. Loan Negotiations – Date Started 13 October 2000 – Date Completed 14 October 2000
3. Date of Board Approval 28 November 2000
4. Date of Loan Agreement 14 June 2001
5. Date of Loan Effectiveness – In Loan Agreement 12 September 2001 – Actual 4 February 2002 – Number of Extensions 1
6. Closing Date – In Loan Agreement 31 December 2008 – Actual 30 June 2010 – Number of Extensions 0
7. Terms of Loan 1.0% per year during the grace period and 1.5% – Interest Rate thereafter 32 – Maturity (number of years) 8 – Grace Period (number of years)
8. Terms of Relending 1.0% per year during the grace period and 1.5% – Interest Rate thereafter 32 – Maturity (number of years) 8 – Grace Period (number of years) Khyber Pakhtunkhwa government – Second-Step Borrower
NWFP = North-West Frontier Province.
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9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval
17 May 2002 31 March 2010 94.5 months
Effective Date Original Closing Date Time Interval
4 February 2002 31 December 2008 84.0 months
b. Amount (SDR) Last Net Category and Original Revised Amount Amount Amount Undisbursed Subloan Allocation Allocation Canceled Available Disbursed Balance 01A Civil Works, 7,697,000 10,108,522 -2,411,522 10,108,522 10,108,522 0 District Council Roads 01B Civil Works, 6,988,000 7,773,537 -785,537 7,773,537 7,773,537 0 Community Infrastructure 01C Civil Works 455,000 919,966 -464,966 919,966 919,966 0 Building Works 02 Equipment and 1,649,000 172,658 1,476,342 172,658 172,658 0 Material 03 Vehicles 724,000 375,234 348,766 375,234 375,234 0 04A Consultants 1,125,000 436,464 688,536 436,464 436,464 0 04B NGO 3,791,000 2,148,967 1,642,033 2,148,967 2,148,967 0 Contracts 05 Training, 4,207,000 4,142,500 64,500 4,142,500 4,142,500 0 Demonstration, and Research 06A Financial 3,991,000 0 3,991,000 0 0 0 Services, Line of Credit 06B Financial 493,000 0 493,000 0 0 0 Services, Line of Credit for Kohistan and Orakzai 07A Incremental 5,524,000 2,499,176 3,024,824 2,499,176 2,499,176 0 Staff and Operations 07B Incremental 593,000 246,401 346,599 246,401 246,401 0 Project Allowance 08 Prior TA 193,000 193,510 -510 193,510 193,510 0 Financing 09 Interest Charge 1,233,000 527,420 705,580 527,420 527,420 0 10 Unallocated 1,402,000 0 1,402,000 0 0 0 Total 40,065,000 29,544,355 10,520,645 29,544,355 29,544,355 0 ( ) = negative, NGO = nongovernment organization, TA = technical assistance.
10. Local Costs (Financed) - Amount ($ million) 31.6 - Percent of Local Costs 54 - Percent of Total Cost 39
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C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign 19.0 22.7 Exchange Cost Local 80.0 57.9 Currency Cost Total 99.0 80.6
2. Financing Plan ($ ‘000) Cost Appraisal Actual Estimate Implementation Costs Borrower 20,100.00 22,474.53 Financed ADB Financed 50,000.00 44,202.65 Other External 14,800.00 9,312.64 Financing (IFAD) Total 84,900.00 75,989.83 IDC Costs Borrower 0.00 0.00 Financed ADB Financed 2,000.00 807.01 Other External 0.00 0.00 Financing Total 2,000.00 807.01
3. Cost Breakdown by Project Component ($ ‘000) Component Appraisal Estimate Actual A. Base Cost Village-Level 11,300.0 25,035.7 Development Strengthening 19,200.0 9,364.9 Agriculture Livelihood Rural Financial 10,100.0 0.0 Services Participatory Small- 34,600.0 22,499.4 Scale Infrastructure Institutional Support 9,900.0 22,911.4 Subtotal (A) 85,100.0 79,811.4 B. Contingencies Physical Contingencies 3,300.0 (…) Price Contingencies 8,600.0 (…) Subtotal (B) 11,900.0 (…) Interest during Construction 2,000.0 807.0 Total (A + B) 99,000.0 80,618.4
4. Project Schedule Item Appraisal Estimate Actual Date of Contract with BME Consultants December 2001 April 2004 Date of Contract with Road Consultants January 2003 April 2004 Date of Contract with NGOs June 2002 October 2003 Completion of Engineering Designs March 2008 December 2009
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Civil Works Contract Date of Award of First Contract January 2003 October 2004 Date of Award of Last Contract December 2007 Completion of Work March 2008 December 2010a Equipment and Supplies Dates First Procurement (…) (…) Last Procurement (…) (…) Completion of Equipment Installation (…) (…) (…) = data not available, ADB = Asian Development Bank, BME = benefit monitoring and evaluation, IDC = interest during construction, IFAD = International Fund for Agricultural Development, NGO = nongovernment organization.
Item Appraisal Estimate Actual Start of Operations Completion of Tests and Commissioning June 2003 January 2005 Beginning of Start-Up a However, the ADB loan closed on 31 December 2008. The remaining works were financed by IFAD up to December 2009, and thereafter by the provincial government (up to June 2010).
5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 28 February 2002 to 31 March 2002 Satisfactory Unsatisfactory From 1 April 2002 to December 2002 Satisfactory Satisfactory From 1 January 2003 to 31 March 2003 Satisfactory Satisfactory From 1 April 2003 to 30 June 2003 Satisfactory Highly satisfactory From 1 July 2003 to 30 September 2003 Satisfactory Highly satisfactory From 1 November 2003 to 31 December 2003 Satisfactory Highly satisfactory From 1 January 2004 to 31 March 2004 Satisfactory Highly satisfactory From 1 April 2004 to 30 June 2004 Satisfactory Highly satisfactory From 1 July 2004 to 30 September 2004 Satisfactory Highly satisfactory From 1 October 2004 to 31 December 2004 Satisfactory Highly satisfactory From 1 January 2005 to 31 March 2005 Satisfactory Highly satisfactory From 1 April 2005 to 30 June 2005 Satisfactory Highly satisfactory From 1 July 2005 to 30 September 2005 Satisfactory Highly satisfactory From 1 October 2005 to 31 December 2005 Satisfactory Highly satisfactory From 1 January 2006 to 31 March 2006 Satisfactory Highly satisfactory From 1 April 2006 to 30 June 2006 Satisfactory Highly satisfactory From 1 July 2006 to 30 September 2006 Satisfactory Highly satisfactory From 1 October 2006 to 31 December 2006 Satisfactory Highly satisfactory From 1 January 2007 to 31 March 2007 Satisfactory Highly satisfactory From 1 April 2007 to 30 June 2007 Satisfactory Highly satisfactory From 1 July 2007 to 30 September 2007 Satisfactory Satisfactory From 1 October 2007 to 31 December 2007 Satisfactory Satisfactory From 1 January 2008 to 31 March 2008 Satisfactory Satisfactory From 1 April 2008 to 30 June 2008 Satisfactory Satisfactory From 1 July 2008 to 30 September 2008 Satisfactory Satisfactory From 1 October 2008 to 31 December 2008 Satisfactory Satisfactory From 1 January 2009 to 31 March 2009 Satisfactory Satisfactory From 1 April 2009 to 30 June 2009 Satisfactory Satisfactory From 1 July 2009 to 30 September 2009 Satisfactory Satisfactory From 1 October 2009 to 31 December 2009 Satisfactory Satisfactory From 1 January 2010 to 31 March 2010 Satisfactory Satisfactory From 1 April 2010 to 30 June 2010 Satisfactory Satisfactory
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D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members a Joint ADB–IFAD Fact-finding 17–28 April 2000 6 72 a, b, c, d, e Joint ADB–IFAD Appraisal 17–28 July 2000 9 108 a, b, c, d, e, f, g, h, i Inception 18 February–1 3 27 j, k March 2002 Special review 1 26–29 August 2002 2 8 l, m Review 1 4–8 September 2003 1 5 m Review 2 17–23 October 2004 2 18 m, n Review 3 19–23 December 3 15 n, o 2005 Joint ADB–IFAD Review 4 30 August–6 4 32 o, p, q, r September 2006 Joint ADB–IFAD midterm 22–29 June 2007 3 18 o, p, r review Review 5 23–21 June 2008 2 12 o, r Project completion review b a a – project economist, b – infrastructure engineer, c – staff consultant, d – International Fund for Agriculture Development (IFAD) consultant (community development and monitoring and evaluation specialist), e – IFAD consultant agronomist, f – lead agronomist, g – gender and development specialist, h – counsel, i – IFAD consultant (rural finance specialist), j – rural development specialist, k – project analyst, l – senior project specialist, m – principal project implementation specialist, n – associate project analyst, o – project implementation officer, p – IFAD resident liaison representative, q – senior disbursement assistant, r – assistant project analyst. b The mission was canceled due to the security situation in the project area. This project completion report is based on a desk review.
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BASIC DATA (International Fund for Agriculture Development Loan)
A. Loan Identification
1. Country Pakistan 2. Loan Number 8195 3. Project Title North-West Frontier Province Barani Area Development Project, Phase II 4. Borrower Islamic Republic of Pakistan 5. Executing Agency Planning, Environment, and Development Department, Government of Khyber Pakhtunkhwa 6. Amount of Loan SDR11,150,000 7. Project Completion Report PCR:PAK1214 Number
B. Loan Data 1. Appraisal – Date Started (…) – Date Completed (…)
2. Loan Negotiations – Date Started 23 February 2001 – Date Completed 23 February 2001
3. Date of Board Approval 26 April 2001
4. Date of Loan Agreement 16 August 2001
5. Date of Loan Effectiveness – In Loan Agreement 22 August 2001 – Actual 9 May 2003 – Number of Extensions (…)
6. Closing Date – In Loan Agreement 31 December 2009 – Actual Still open. – Number of Extensions 0
7. Terms of Loan – Interest Rate 0.75% per year on the amount of loan outstanding – Maturity (number of years) 40 – Grace Period (number of years) 10
8. Terms of Relending – Interest Rate 0.75% per year on the amount of loan outstanding – Maturity (number of years) 40 – Grace Period (number of years) 10 – Second-Step Borrower Khyber Pakhtunkhwa government
(…) = data not available, NWFP = North-West Frontier Province.
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9. Disbursements a. Dates Initial Disbursement Final Disbursement a Time Interval
5 March 2004
Effective Date Original Closing Date Time Interval
9 May 2003 31 December 2009 77 months a Three withdrawal applications valuing $459,772.28 are pending for liquidation. After the full liquidation of the submitted withdrawal applications, there will be a remaining advance of $10,736.85.
b. Amount (SDR)a Last Amount Net Amount Undis- Category or Original Revised Can- Amount Dis- bursed Subloan Allocation Allocation celed Available bursed Balance 01A Civil Works, 1,970,000 0 0 1,970,000 1,380,775 589,225 District Council Roads 01B Civil Works, 1,790,000 0 0 1,790,000 1,576,482 213,518 Community Infrastructure 01C Civil Works, 130,000 0 0 130,000 165,721 -35,721 Building Works 02 Equipment and 430,000 0 0 430,000 19,465 410,535 Material 03 Vehicles 200,000 0 0 200,000 104,547 95,453 04 Consulting 1,410,000 0 0 1,410,000 667,076 742,924 Services and NGOs 05 Training, 1,080,000 0 0 1,080,000 667,076 742,924 Demonstration, and Research 06A Financial 1,130,000 0 0 1,130,000 0 1,130,000 Services, Line of Credit 06B Financial 140,000 0 0 140,000 0 140,000 Services, Line of Credit for Kohistan and Orakzai 07A Incremental 1,630,000 0 0 1,630,000 1,002,868 627,132 Staff and Operations 07B IOC Allowances 170,000 0 0 170,000 59,576 110,424 08 Unallocated 1,070,000 0 0 1,070,000 0 1,070,000 Total 11,150,000 0 0 11,150,000 6,130,076 5,019,924 NGO = nongovernment organization a The disbursed and undisbursed amounts shown in the table are tentative, as the loan is still financially open.
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C. Data on International Fund for Agriculture Development Missions No. of No. of Specialization of Name of Mission Date Persons Person-Days Members No missions were carried out.
I. PROJECT DESCRIPTION
1. The NWFP1 Barani Area Development Project—Phase II was directed to poor, rural communities of Khyber Pakhtunkhwa Province and Orakzai Agency in the Federally Administered Tribal Areas of Pakistan, which are isolated from service providers and rural infrastructure. The 11 administrative areas of the project area stretch 1,000 kilometers (km) from north to south, covering 30,000 square km and a population of 5.6 million.2 Over 80% of the households surveyed under the Asian Development Bank (ADB)-assisted project preparatory technical assistance (TA) had consumption levels below the Khyber Pakhtunkhwa monthly minimum per capita poverty level of PRs771 ($15).3 On average, food accounted for more than 50% of household expenditure, with poorer households spending a greater share. About 30% of the households were landless, and most of the farms were owner-operated small lands of up to 1 hectare (ha). Significant gender disparity was also noted in the project area; for example, literacy levels ranged from 5% to 39% for men and from 1% to 8% for women. Indebtedness was found among 77% of the households, especially in the poorer households, commonly accumulated for consumption and basic need purposes. Lack of infrastructure, access to extension services, appropriate technologies, and formal credit were additional factors limiting the ability of farmers to improve their livelihoods.4
2. The project was based on the community participation model of nongovernment organization (NGO)–government partnership, tested and proven successful under the Barani Area Development Project- Phase I, which operated in four districts,5 and the Mansehra Village Support Program, which was financed by International Fund for Agriculture Development (IFAD) and operated in two districts. The project was expanded from this foundation into new, adjacent districts.6
3. The objectives of the project were to (i) improve agriculture management practices; (ii) enhance community infrastructure; and (iii) improve rural livelihood opportunities and alternatives, including specific measures to boost women's access to social and economic resources. The project framework included the primary goal of poverty reduction and a secondary goal of improved status for women. The project comprised the following five outputs: village-level development, strengthening agricultural livelihoods, rural financial services, participatory small-scale infrastructure, and institutional support. The project outputs were expected to benefit the poor households, with some directed to poorer households and women. The executing agency (EA) was the Planning, Environment and Development (PE&D) Department, and key implementing agencies (IAs) were Departments of Works and Services, Irrigation, Agriculture and Livestock, Forest, and Public Health Engineering; Pakistan Council of
1 North-West Frontier Province, which is now known as Khyber Pakhtunkhwa. 2 The project included the districts of Abbottabad, Bannu, Batagram, Haripur, Karak, Kohat, Kohistan, Lakki, and Mansehra in Khyber Pakhtunkhwa; and Orakzai Agency. Hangu District of Khyber Pakhtunkhwa was originally part of Kohat District and later given the status of a separate district. Therefore, the total number of districts at completion increased to 11. 3 ADB. 2000. Final Report for NWFP Barani Area Development Project—Phase II. Consultant’s report. Manila (TA 3151-PAK). 4 ADB. 2000. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Islamic Republic of Pakistan for NWFP Barani Area Development—Phase II. Manila (Loan 1787-PAK[SF], 5 ADB. 1992. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Islamic Republic of Pakistan for the NWFP Barani Area Development Project. Manila (Loan 1179-PAK[SF], for $32.8 million, approved 24 September). 6 The Barani Area Development Project operated in Abbottabad, Haripur, Karak, and Kohat districts, while the Mansehra Village Support Program was implemented in Batagram and Mansehra districts. In addition to these six districts, the four new adjacent administrative districts of Bannu, Hangu, Kohistan, and Lakki, as well as the Orakzai Agency were added.
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Renewable Energy and Technology; and NGOs that were to be contracted for community mobilization. A participating financial institution (PFI) was to be engaged through a subsidiary loan agreement for implementation of the rural financial services component.
4. The joint ADB–IFAD project completion review mission could not be fielded due to the armed conflict in Khyber Pakhtunkhwa and unavailability of line agency staff due to their involvement in relief activities after massive floods there. Thus, this report is based on a desk study of the EA project completion report and benefit monitoring and evaluation study, independent technical audit of civil works, and ADB and EA records.7
II. EVALUATION OF DESIGN AND IMPLEMENTATION
A. Relevance of Design and Formulation
5. At appraisal, the project’s goal (i.e., poverty reduction) and impact (i.e., to improve agriculture management practices and to enhance community infrastructure) were consistent with the poverty reduction strategies of ADB and the government. The thematic objective (i.e., gender and development) was also relevant to the country strategy and program.8
6. The TA's underlying analysis grasped the multidimensional nature of rural poverty in the project area, as well as the capacity of government line agencies. The types of proposed outputs were highly relevant from the perspective of the target area and groups, and most were incorporated into the project design. However, the TA institutional assessment did not fully comprehend (i) the lack of a mandate and technical capacity of the proposed EA, the Local Government Elections and Rural Development Department;9 (ii) lack of outreach and financial capacity of PFIs in Khyber Pakhtunkhwa, particularly the Bank of Khyber; (iii) gender and development capacity of district line agencies; and (iv) willingness of beneficiaries to pay for a significant share of the schemes. These inadequacies were mostly addressed at appraisal. In addition, project targets and costs were increased, and the project organization was revised from a regional to a district-based decentralized structure.
7. The type of outputs, activities, targets, selection criteria, and stakeholder consultation and participation, as appraised, were relevant except for the rural financial services component and district council roads subcomponent. The project design did not provide adequate resources and implementation arrangements required for their delivery. In the implementation stage, additional staff members were provided for the roads subcomponent. For rural financial services component, the EA developed various institutional options, including delivery by NGOs and commercial PFIs. However, these proposals did not materialize due to time constraints before project closing. The EA finally proposed, to a joint ADB–IFAD midterm review mission in June 2007, to drop the rural financial services component and to reallocate the amount to (i) the participatory small-scale infrastructure component; (ii) scale up successful project activities; and (iii) activities in the earthquake-affected project districts, covering agriculture production and infrastructure rehabilitation.10
7 Planning and Development Department, Government of NWFP. 2008. Barani Area Development Project—Phase II, Project Benefit Monitoring and Evaluation, Final Report. Peshawar; and ADB. 2010. Technical Audit of Civil Works, Barani Area Development Project—Phase II. Islamabad. 8 ADB. 2000. Country Strategy and Program: Pakistan, 2002–2006. Manila. 9 The proposed EA was changed at appraisal to Planning, Environment and Development Department, which had the required institutional mandate and capacity to deliver a multisector community development project. 10 ADB and IFAD. 2006. Aide-Mémoire of Joint Loan Review Mission, 30 August to 6 September. Islamabad; and ADB 2007. Memorandum of Understanding of Joint ADB-IFAD Midterm Review Mission, 22–29 June,.Islamabad.
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8. Given the multisector nature of the project, the Planning, Environment and Development Department was the right choice as the EA. It had the required mandate and an established system of interagency coordination from provincial to district levels. The project design also acknowledged the technical capacity that existed within the government line agencies, and the targets were designed accordingly. The decentralized model of project management helped successfully link the district line agencies and community organizations. However, the capacity of Works and Services Department was overestimated.
9. The design depended on four prerequisites that delayed implementation: (i) a high level of community organization; (ii) high beneficiary funding (estimated at $10.9 million, 11 percent of the total project cost), ranging from 5 to 75 percent; (iii) recruitment of NGOs and consultants; and (iv) a high funding requirement from PFIs ($1.2 million). The project lost an initial 2 years due to these preparatory activities and approving a reduction in the beneficiary funding requirements (which occurred in November 2004). The design also overestimated the technical and management capacities of community organizations to implement, operate, and maintain infrastructure schemes. However, given the overall design strength, the project was successfully completed.
10. The report and recommendation of the President to the Board of Directors for proposed loan comprehensively documented technical, engineering, institutional, and sociocultural lessons from similar rural development projects. Key lessons incorporated into the project design were use of a community participation model, promoting participation of local NGOs, inclusion of a gender and development strategy, use of a decentralized project management model, and small and affordable technologies. The design provided selection criteria for various interventions to ensure that benefits are not captured by a few recipients.
11. The project’s secondary objective was gender and development. The strategy of institutionalizing a gender mainstreaming support system in the public sector and investment in sectors with greater benefits for women was relevant to promote the gender equality agenda. Most of the gender and development commitments made under the project were accomplished.
12. The loan was fully disbursed except for the rural financial services component. However, the joint cofinancing arrangements, with a pro rata financing percentage and partial administration modality, complicated the flow of funds, slowed the release of funds, and caused delays in the delivery of outputs (para. 39). The EA had to prepare separate withdrawal applications by the financier, and the approval process involved a lengthy communication channel for the confirmation of validity of expenditures and the transfer of funds by each financier (i.e., IAs to EA to the Pakistan Resident Mission to ADB headquarters and to IFAD headquarters). The disbursement would have been faster if the design included a component- based financing arrangement with full administration authority to ADB and decentralized disbursement function to the resident mission.
13. In addition, the inconsistent timelines for ADB and IFAD loan effectivity and closing caused problems in financing and loan account closing. The IFAD loan became effective on 9 May 2003, almost 15 months after effectivity of the ADB loan on 22 February 2002. There was a 1-year difference in the loan closing dates as well; the original ADB loan closing date was 31 December 2008 and IFAD loan closing date was 31 December 2009. The EA requested to adjust the ADB loan closing date to that of IFAD. ADB did not approve this request due to the Central and West Asia Department’s no-extension policy in Pakistan, while the IFAD mission in
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November 2008 agreed to continue with its original loan closing schedule. This inconsistency resulted in the government's increased financing share.
14. The project played an important role in stabilizing the development administration environment in the project area despite security challenges. The timing and circumstances were extremely difficult for the government to operate in Khyber Pakhtunkhwa after the 11 September 2001 attacks in the United States, the war on terror, increased Taliban insurgency, various military operations, and a 2005 earthquake. The security crises hampered project operations, but the EA continued with project activities. Project offices were blasted; staff members were killed, injured, and kidnapped; and project vehicles and resources were looted. Often, the EA had to suspend project operations in many districts. As a result, retention of staff was difficult.
15. The project also suffered implementation delays due to the earthquake aftermath in four project districts. Most of the line agency staff were busy with rehabilitation of earthquake- affected communities and large-scale public infrastructure works in these districts, limiting their time to implement project activities. Further, almost 1 year was lost in waiving off the beneficiary funding requirement in these districts, as well as approving and recruiting additional subengineers to improve the EA capacity to supervise civil works contracts. Despite these problems, the project significantly contributed to the development of public infrastructure and helped earthquake-affected farmers return to their normal agriculture development activities.
16. The EA proposed to the joint ADB–IFAD midterm review mission to resolve the above mentioned design and implementation issues by (i) extending the ADB loan closing date to that of IFAD; and (ii) changes in project scope and implementation arrangements. These changes were not approved by ADB due to liked request for project extension by 1 year.
B. Project Outputs
17. Project output achievements (Appendix 1) were assessed against performance targets as presented in the project framework in the report and recommendation of the President to the Board of Directors for proposed loan. Except for the rural financial services component, all outputs and targets as designed were relevant and mostly accomplished or surpassed. Further, a technical audit of 58 infrastructure schemes confirmed that their overall development and implementation were largely in line with the overall project framework, envisaged design principles, and technical specifications (Appendix 2).
1. Village-Level Development
18. Improving women’s status. This subcomponent comprised (i) village-based girls' education, (ii) health awareness and family planning, (iii) training women health practitioners, (iv) training traditional birth attendants, (v) gender awareness programming, (vi) skills and enterprise training, and (vii) supporting networking of community organizations. Village-based girls' education activities were fully accomplished. A total of 110 nonformal primary schools were established, and their standard of education is as good as mainstream government schools. The Schools and Literacy Department evaluated and regularized 65% of these schools. In addition, 231 women were trained as primary school teachers, surpassing the target by 65%. The original primary teachers’ training course was upgraded from 11 months to a 2-year diploma course, which has better value in the job market. The teachers were also trained in gender and development concepts and planning skills.
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19. Interventions designed to promote gender balance through employment, service delivery support, and gender awareness were highly successful both in terms of implementation progress and achieving objectives. A total of 1,550 women were trained, including 240 as health visitors and medical technicians and 1,080 as traditional birth attendants. These diploma courses were conducted by certified public sector institutions. In addition, 588 women's community organization (WCO) members were trained in various technical skills to improve their income and livelihoods. A total of 6,500 1-day health and education awareness campaigns and 450 gender mainstreaming training sessions were organized for raising women’s awareness and improving the networking of WCOs.
20. Given the severe lack of health services for women in Kohistan District, the project aimed to provide two doctors, for 6 years each, in the district hospital. Despite various job advertisements and high compensation packages, no female doctor applied due to the stringent cultural norms, physical isolation, and armed conflict in the district. The positions were then changed from two female doctors to a married couple of doctors. The EA finally found one such couple in March 2007, who worked only for 6 months and eventually resigned due to the deteriorating security situation.
21. Community mobilization. Appraisal targets included (i) establishment of 832 men’s village organizations (MVOs), (ii) 500 women’s village organizations (WVOs), and (iii) training of 5,200 activists and 10,500 community organization office bearers. 11 These activities were successfully completed. A total of 1,162 MVOs (140% of the appraisal target) and 583 WVOs (117%) were established. These village organizations were organized into 62 citizens' community boards (CCBs) and registered with district governments; of these, 32% were women CCBs.12
22. A total of 4,450 persons, 43% of whom were women, were trained in basic and advanced village development planning, community mobilization, and gender mainstreaming skills. A total of 10,220 community organization members (an average of 2 per organization) were trained in organizational management skills, and 34% of these were women. Although these activities were highly relevant, targets for MVO formation were underestimated, and targets for training were overestimated. Training activities, as designed, overlapped, and the appraisal targets were greater than the number of community organizations.
2. Strengthening Agricultural Livelihood
23. Field crops. The agriculture research and extension outputs as designed were relevant and highly successful, and the achievements surpassed the appraisal targets. They included agriculture research and extension services offered to community organizations, from which they selected those that were most relevant to their needs. The project contributed to more improved seed (e.g., wheat, maize, legumes, groundnuts, sorghum, millet, and canola) through village-level seed multiplication and demonstration plots on 4,118 ha (121% of appraisal targets). Of this, demonstrations on 650 ha (16%) were delivered to WCOs. A total of 1,500 village agriculture extension workers (188%) were trained. The project also identified and introduced improved rain-fed crop varieties through adaptive research trails on 1,345 ha (165%) of which 22% were delivered to WCOs.
11 A village organization comprises about three community organizations. 12 CCBs qualify for assistance under district government annual development plans and from other donors.
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24. Agriculture extension and research institutional capacity and facilities were also upgraded, including (i) construction and establishment of five seed stores and sheds, a seed farm, a greenhouse, and an onion storage unit; (ii) construction of female staff offices in 11 district agriculture departments and of training facilities for female farmers; and (iii) appointment of 11 female agriculture officers at the district level and regularization of these positions at project closing. Farming technologies were improved, and grain storage losses were reduced for 31,450 community organization members thanks to field days, district research and extension conferences, and research networking seminars.
25. The technical audit of civil works confirmed that the overall quality of completed works, usage of the facilities, and soil and water conservation schemes were satisfactory. The agricultural research and extension enhancement through infrastructure development successfully increased the capacities of the Agriculture Department. However, the efficiency of the seed stores was low due to excess space provision and underutilization. Sustainability is only likely if the Agriculture Department provides sufficient funds to ensure maintenance and repair of these buildings.
26. Horticulture. The project successfully introduced nontraditional and high-value vegetables to community organizations through demonstration plots on 959 ha (113% of appraisal targets). Of these, 200 ha demonstration plots were delivered to women. A total of 10,080 farmers (261%) were trained in vegetable production, including 1,325 village horticulture extension workers and 8,755 community organization members. Fruit production demonstrations were conducted in 2,149 orchards; of these, 23% were for women. A total of 2,480 women (124%) were trained in establishing and managing kitchen gardens; 4,440 villagers (211% of target, with 98% women) were trained in vegetable preservation; and 760 (133% of target) farmers were trained in fruit plant nursery management. A hot bin at Buffa fruit nursery could not be established due to lack of operational capacity of the Agriculture Department.
27. Soil and water conservation. Appraisal targets totaled 1,810 schemes, including 490 protection spurs, 500 protection bunds, 620 check dams, and 200 water ponds. Most of these targets were surpassed. A total of 2,716 galvanized iron (GI) wire and cemented structures (135% of target) were constructed, including 564 protection spurs (133%); 882 protection bunds (176%); 511 check dams (82%); and 419 water ponds (210%). In addition, 250 inlets, outlets, and spillways were built. The technical audit noted that some designs were partly successful, but overall, the interventions were relevant and generally satisfactory.
28. Livestock. Appraisal targets included breed improvement through (i) artificially inseminating 55,000 cattle; (ii) introducing improved sheep and goats through distribution of 6,600 animals, 1,650 (25%) to women; (iii) improving animal health through the provision of 1.2 million doses of vaccinations and deworming medications; (iv) enhancing feed through fodder demonstration plots on 210 ha and associated training; (v) improving community-based livestock extension services through training of 520 workers; and (vi) training 3,240 women in poultry production and enterprise management. The achievement of outputs was highly satisfactory and exceeded the original targets. A total of 197,741 animals (362% of the target) were inseminated, and WCOs organized 15,000 inseminations. A total of 6,899 goats and sheep (105%) were delivered to community organizations, and 910 animals were given to women. Vaccination and deworming activities comprised 4.45 million doses (371%); of these, 20% were delivered to WCOs. A total of 3,600 community organization members (692%) were trained as village livestock extension workers, and women attended 22 percent of the courses. A total of 5,780 women (178%) were trained in poultry production, including 1,100 in commercial
7 poultry farming, 960 in setting up pilot poultry farms, and 3,720 in domestic poultry farming. A total of 48 pilot poultry farms were established for women. Fodder demonstration plots were established on 232 ha (110%), and plots on 120 ha were established by WCOs. A total of 140 line agency staff members were trained, including 80 in artificial insemination techniques, 40 veterinary officers in frozen semen, and 20 females in livestock supervision and production. In addition, 11 office facilities were constructed for female Livestock Department staff, one in each project district. The quality of civil works of female staff offices and training halls was satisfactory, and the utilization has been in accordance with objectives.
29. Community forestry. This subcomponent aimed to improve the use of neighboring forest and range areas through extension services, including training of 970 villagers in nursery management and community forestry and enterprises; 5,500 ha of community afforestation; and 185,00 ha of farmer plantation. The achievements were satisfactory and exceeded the targets. A total of 1,240 villagers (175% of the appraisal target) were trained in basic forestry and extension, nursery raising and management, and establishing integrated land-use farms. Of these, 28% training courses were run for women. Given the success and demand for community afforestation, the project established community afforestation on 14,531 ha (264%), and 1,220 ha afforestation was done by WCOs. Farm plantation was done on 16,032 ha (87%) and could not be fully implemented due to lack of in-house monitoring capacity of the Forest Department. Of this, 3,000 ha were done by WCOs. The project also supported community organizations to protect native forests (species included kana, mazri, and sarkanda) on 39,216 ha, and 810 ha were done by WCOs. Nursery demonstrations were done on 1,425 ha (138%), and WCOs established nurseries on 220 ha. Six female staff offices (100%) were also constructed.
3. Rural Financial Services
30. NGOs were to provide microenterprise coordinators and village credit officers, and a PFI was to provide personnel, facilities, and a credit line. For this component, $10.1 million (12% of the total project base cost) was allocated. The design envisaged disbursement of about $9.0 million (inclusive of the PFI share) through 92,000 loans to 30 percent of CO members and 30 percent to women. It was expected that the PFI would contribute 10% of the total line of credit, except for Kohistan District and Orakzai Agency. Two credit lines were proposed: one to be channeled through Government of Khyber Pakhtunkhwa (GoKP) to a PFI for onlending in eight districts and a relatively small amount to be implemented in Kohistan District and Orakzai Agency through subsidiary loan agreements with NGOs.
31. From the perspective of increasing incomes, this was an important component, but it could not be delivered because of lack of in-house financial and outreach capacity of potential PFIs due to a combination of factors like low population density, high dependence on agriculture, fewer economic opportunities, and low households savings. There was a fundamental flaw in the design, as the cost of delivery was high and was not built into the design.
4. Participatory Small-Scale Infrastructure
32. With the exception of the district council roads and microhydel schemes, the original scope for all of the schemes was met and even exceeded targets. The technical audit found that the quality of construction, operation, and maintenance was satisfactory (Appendix 2). However, as noted, the overall implementation of this component was delayed due to the high beneficiary share, which was reduced in November 2004 (Appendix 3).
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33. Micro-irrigation. Of 570 irrigation schemes, 516 (91% of the appraisal target) were completed, including tube wells, diversion and surface irrigation schemes, and inlets and outlets. Of these, 90 were delivered through WCOs. According to the technical audit, these interventions were generally successful in achieving their primary goals. The changes in cropping patterns from staple wheat and maize to high-value vegetable cash crops resulted in increased farm incomes. These interventions will also lead to major reductions in rain scarcity impacts. The design and implementation of these schemes was successful, and they are generally well operated and maintained by village organizations. The project made special efforts to resolve the issue of ensuring access of water by other community members. About 80% of the schemes are likely to continue operation, provide increased crop yields and income, and be sustainable. The new irrigation facilities were backed by extension services for introduction of irrigation crops and associated technologies.
34. Drinking water supply and sanitation. These schemes were in high demand and reported to be accessible to all. A total of 2,535 drinking water supply schemes were completed against a planned target of 765 (331% of the target). The completed schemes included 107 gravity schemes, 2,273 hand pumps, and 155 tube wells. Of these, 150 were delivered through WCOs. Further, 226 school demonstration latrines (110%) were completed against a planned target of 205, and 18% were constructed in girls’ schools. The joint ADB–IFAD midterm review mission and the technical audit both rated these schemes highly successful; the quality of civil works were excellent, the large schemes are of international standards, and the water quality is safe for human consumption. Yet implementation delays and technical failures occurred due to (i) the high beneficiary share, (ii) community organizations’ unwillingness to share the cost of drilling in case of failure, and (iii) underdesigning of some schemes due to cost limitations.
35. Feeder roads. The appraisal targets were relevant, but the technical specification and classification as small-scale infrastructure was not relevant (Appendix 2). Minor changes were made, and an additional category of low-specification blacktop roads (BTRs) was added to the scope. At completion, feeder roads exceeded the targets. A total of 651 km of village feeder roads were completed against planned targets of 600.00 km (108%) including 420.29 km jeepable tracks and 231.00 km of low-specification BTRs. Of these, 237.15 km of feeder roads were constructed by the Works and Services Department, and 413.38 km were constructed by village organizations. The technical audit confirmed that these roads successfully achieved their core objectives through poverty targeting, site selection, efficient design, construction, and maintenance.
36. District council roads. These roads were much needed, but the targets could not be fully achieved due to inadequate implementation arrangements (Appendix 2). Of 275.00 km high-specification BTRs, 246.16 km (90%) were designed, and 127.31 km (46%) were constructed. The roads consultants did not fulfill contractual obligations within the specified time frame due to lack of in-house resources and an underbudgeted contract. This led to a domino effect, with direct delays in design and construction, causing the roads subcomponent to be constantly behind schedule. However, the technical audit confirmed that the overall quality of the civil works was of satisfactory standards and the usage of roads was efficient.
37. Microhydel schemes. Of the total 40 schemes, 31 (78% of the target) were completed. These schemes were designed for the northern project area (i.e., the earthquake-affected area). With the change in community priorities after the earthquake, the demand for these schemes drastically decreased. The EA therefore proposed to the MTR mission to reduce the targets, but this was not approved by ADB due to a linked request for 1-year project extension.
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5. Institutional Support
38. The component as designed was relevant to achieving project objectives. Under the project management activities, a project liaison unit and 11 district implementation offices were established. In addition, the four NGOs established 11 district program offices and 25 social organization units to facilitate community mobilization. The capacity-building NGO was not hired due to sufficient in-house capacity of district-based NGOs. Under sector technical support, 197 staff members were trained, including 80 in artificial insemination techniques, 40 veterinary officers in frozen semen, 20 female technical staff members in livestock supervision and production, and 57 in community development and related technical skills. About 35 female technical staff members were appointed in green sector line agencies, and most of the positions were regularized before project closing. Eleven female staff hostels were constructed, operationalized, and handed over to Social Welfare Department for operation and maintenance. All planning, approval, and coordination forums were established, including the Project Review Board, Staff Selection Committee, Procurement Committee, and Scheme Review Approval Board. Focal persons were appointed in key IAs. Quarterly and monthly coordination meetings were held at the provincial and district level. An international benefit monitoring and evaluation consulting firm was also hired.
C. Project Costs
39. The project cost estimates were generally adequate, and the retroactive financing facility helped regarding project start-up. The actual project cost was $80.6 million, compared with $99.0 million at appraisal (Appendix 4). At completion, the ADB share was $45.0 million (56%), the IFAD share was $9.3 million (12%), the government share was $22.5 million (28%),13 and the beneficiary share was $3.8 million (5%). The PFI’s share did not materialize because the rural microfinance component was not be implemented. At completion, the ADB share increased by 3.31% due the decrease in the beneficiary share and the complete waiver in the earthquake-affected project districts. The partial beneficiary share was met out of loans. The borrower’s financing increased by 7.57% (from 20% to 28%) mainly due to the difference in the ADB and IFAD closing dates. The government financed ongoing civil works that were completed after the ADB loan closing date. In addition, 50 vehicles were provided by the government, and the cost was included in the government contribution. In these cases, the ADB share was also borne by the borrower. The IFAD share decreased by 3% (from 15% to 12%). Finally, the beneficiary share fell by 6.2% due to their lack of financial capacity.
D. Disbursements
40. Overall, disbursement performance was negatively affected by cofinancing and administration arrangements, resulting in slower-than-planned project implementation. A review of EA and ADB records showed that the EA submitted 171 withdrawal applications (64 for the IFAD loan and 107 for the ADB loan) according to financing shares of ADB and IFAD. A review of 55 withdrawal applications revealed that ADB had an average processing time of 2.3 months and IFAD had taken 3.0 months, overall ranging between 1 to 5 months. Disbursement was initially slow in the first 4 years (2002–2005), but picked up in the last 3 years (2006–2008). The initial disbursement of the ADB loan was made about 18 months after loan approval, and the final disbursement was made on 31 March 2010, 15 months late due to delayed submission of
13 The government share included an additional expenditure of $5.43 million due to the 50 new vehicles provided by the government and salaries of incremental staff of line agencies.
10 final claims by the EA. The annual contract awards and disbursements under the project are provided in Appendix 5.
41. An imprest account and the statement-of-expenditure procedure were used for payments. All payments less than $50,000 were paid out of the imprest account, which was less time-consuming and ensured timely release of payments to contractors. Direct payments were made to consultants, NGOs, and the vehicle supplier.
E. Project Schedule
42. Despite continued security issues in the project area, followed by the 2005 earthquake, start-up delays, and late disbursement of the loan, the overall implementation of activities according to the planned schedule were generally satisfactory, except for the district council roads subcomponent (Appendix 6). It was designed as a 7-year project, but the actual implementation period was 6 years and 9 months for the ADB loan and 6 years and 2 months for the IFAD loan. According to the implementation schedule prepared at appraisal, project implementation was planned to begin in the first quarter of 2002, with a completion date of 31 December 2008. The project suffered from startup delays of 14 months for ADB loan effectiveness and 25 months for IFAD loan effectiveness. Establishment of offices and project accounts, and recruitment of staff were completed in May 2003. Contracts to local NGOs for community mobilization were awarded in October 2003. The benefit monitoring and evaluation and roads consultant contracts were awarded in April 2004. The project became fully operational in 2004. The project activities under ADB loan were closed on 31 December 2008, and the IFAD loan were closed on 31 December 2009.
F. Implementation Arrangements
43. The assessments of EA and IA capabilities at appraisal were generally accurate, except for PFIs and the Works and Services Department. The design recognized the complex nature of multisector interventions involving community participation and intense coordination with multiple IAs, NGOs, and training institutions at all levels of government. Except for PFIs and the Works and Services Department, the EA, IAs, and partner NGOs had the required institutional mandates and technical capacities to deliver project objectives and outputs. However, the village organizations’ financial and technical capacity was overestimated at appraisal. One of the main reasons for the delay in the roads subcomponent was a mismatch between requirements, staff, and consulting inputs. The number of incremental staff positions and consulting inputs were less than the project requirements. These issues were resolved during implementation. Also, the decentralized model of project management matched the project requirements.
G. Conditions and Covenants
44. The loan effectivity and disbursement conditions were few and simple in nature, which helped with successful project completion. The conditions of loan effectiveness were met, and the loan was declared effective within 6 months of its signing. All covenants were generally simple and relevant. The project’s compliance with key social, financial, environmental, economic, and other implementation-related covenants was satisfactory (Appendix 7).
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H. Consultant Recruitment and Procurement
45. Consultants were recruited, and goods and works were procured according to the provisions of the loan agreement (Schedule V and IV) and ADB Guidelines on the Use of Consultants (2010, as amended from time to time) and Procurement Guidelines (2010, as amended from time to time). All goods and works, as designed at appraisal, were procured. However, 50 vehicles were provided by the government. Except for five individual consultants and a capacity-building NGO, all planned consultants were recruited, including (i) two firms (benefit monitoring and evaluation and roads consultants), (ii) district-based local NGOs for community mobilization, and (iii) three individual consultants. The capacity-building NGO was not hired due to sufficient in-house capacity of the district-based NGOs. A total of 11 contracts (one for each district, a total value of $5.49 million) were awarded to 4 local NGOs through competitive bidding.14 Political interference was noted in recruitment of these NGOs, which delayed the recruitment process, resulting in delayed initiation of community organization formation and delivery of other linked project interventions.15 The remaining five individual short- term consultants were not recruited due to adequate line agency in-house capacity, security problems, and irrelevant input. Overall, the consulting services as designed were generally relevant. However, the level and type of input for roads and benefit monitoring and evaluation consulting packages were underdesigned, and as a result, 866.38 person-months were used compared to the original provision of 765.50 person-months, a 15% overutilization (Appendix 8).
I. Performance of Consultants, Contractors, and Suppliers
46. The performance of the roads consultants was not satisfactory due to (i) an undercosted consulting contract, resulting in a lack of in-house capacity; (ii) continued security crises; and (iii) lack of project management unit and Works and Services Department’s capacity to monitor, supervise, and evaluate the consultant outputs. The technical audit confirmed that overall performance of construction contractors was generally satisfactory, but some contractors were negatively affected by the underdesigning of district council roads. The performance of the benefit monitoring and evaluation consultants was also generally satisfactory, and most of the deliverables were accomplished, except that the proposed management information system could not be fully used by the EA.
J. Performance of the Borrower and the Executing Agency
47. The performance of the EA was highly satisfactory. The EA had an adequate mandate, management capacity, and commitment to implement the project. After an initial delay, the EA supervised the project very efficiently. The Project Review Board and other committees diligently and efficiently made policy decisions, compliance reviews, and approvals. The EA project management unit responsibly fulfilled management and coordination targets, including procurement and management of contracts, implementation, and monitoring and evaluation of the project’s institutional support component. Counterpart financing was highly satisfactory, and the EA submitted most audit reports on time. Overall performance of the IAs was also satisfactory. The departments of agriculture and livestock adequately provided essential technical and management support to complete project activities and introduced new initiatives. The performance of the Works and Services Department was partly satisfactory due to lack of
14 The contracted NGOs included Sarhad Rural Support Corporation (seven district-specific contracts), Community Uplift Program (two district-specific contracts), Lasoona (one contract), and Community Empowerment Program (one contract). 15 ADB. 2003. Aide-Mémoire of Loan Review Mission, 4–8 September. Islamabad.
12 capacity resulting from its heavy workload. The performance of Public Health and Engineering Department, Forest Department, and four local NGOs was satisfactory. The overall institutional assessment at appraisal was accurate, except for PFIs.
K. Performance of the Asian Development Bank
48. ADB’s overall performance was satisfactory. ADB expedited implementation, ensured compliance with loan conditions and covenants, trained EA staff in disbursement and procurement guidelines, resolved the high beneficiary share, revised the civil works design standards, and strengthened the project offices. Eight review missions were carried out, with the last in June 2008 to finalize the project and loan closing schedule and modalities. Of these, two review missions were jointly carried out with IFAD. Detailed assessment studies were conducted for the midterm review mission by three consultants. Of these, two consultants were financed by IFAD. Revisions in design formulated by the midterm review mission included (i) field-level assessment of ongoing activities; (ii) analysis of the design as appraised; and (iii) proposed revision in scope, specification of civil works, implementation arrangements, mode of procurement, and project costs. However, these changes were not approved by ADB due to a linked request for project extension. The EA expressed displeasure over delays in disbursements due to systemic problems faced by cofinanced projects, as well as ADB’s no- extension policy and lack of commitment to stand-alone community development projects.
III. EVALUATION OF PERFORMANCE
A. Relevance
49. Overall, the project was relevant. The primary objective of poverty reduction was relevant to ADB's overarching objective and consistent with the needs of target group, ADB country strategy and program, and the government’s strategies for rural development and the agriculture sector. The secondary objective of gender and development was relevant to ADB thematic objectives, the ADB country strategy and program, and the government’s commitments on gender equality. The components and outputs were relevant to the problems faced by poor settlements largely dependent on uncertain, rain-fed agriculture. Overall, the project impact showed that most appraised activities were relevant and helped increase agriculture productivity, water-use efficiency, and access to services. Most of the appraisal targets were generally accomplished or surpassed. However, the rural financial services component and roads subcomponent could have been designed more efficiently.
50. Key changes approved during project implementation included (i) decreased beneficiary funding requirements; (ii) waiver of beneficiary funding in the four earthquake-affected project districts; (iii) upgrading of feeder tracks from a single category of gravel roads to two subcategories, including gravel roads and low specification BTRs; and (iv) addition of civil engineers in the district implementation units. These changes improved the project’s relevance and its capacity to respond to targeted communities. The project would have been highly relevant if changes proposed to the joint ADB–IFAD midterm review mission had been approved by ADB, including minor revisions to the project scope, implementation arrangements, and costs, and extending the loan closing date by 1 year to make it consistent with that of IFAD.
B. Effectiveness in Achieving Outcome
51. The project was effective in achieving outcomes. The outputs contributed to the outcome of improved, sustainable use of natural resources through better management practices and
13 enhanced community infrastructure to increase the value of and/or reduce the costs of village activities.
C. Efficiency in Achieving Outcome and Outputs
52. The project was efficient. It was completed at 80% of the estimated cost and was generally able to surpass appraised targets for all components except the rural financial services component, which was not implemented, and the roads subcomponent, which was partly implemented. The overall project economic internal rate of return (EIRR) is 14.37%, compared to the 18.80% estimated at the time of appraisal (Appendix 9). The difference is largely due to the low return on feeder track and district council link roads, micro-irrigation, microhydel, and water supply subprojects. The economic analysis included EIRRs for selective agriculture, district council link road, feeder track road, livestock, microhydel, and water supply subprojects. The EIRR for horticulture was not calculated due to unavailable data. The EIRR for micro-irrigation was incalculable due to a negative cash flow.
53. A sensitivity analysis was performed for three scenarios, that is, (i) an increase in subproject cost by 10%, (ii) a decrease in subproject benefits by 10%, and (iii) a simultaneous increase in cost by 10% and a decrease in benefits by 10%. In all three scenarios, the EIRR fell 3%–5%, thus maintaining a reasonable rate of return. Financial evaluation was not conducted, because this was only applicable to the rural finical services component that was not implemented.
D. Preliminary Assessment of Sustainability
54. The sustainability of the project is likely. All schemes constructed under the project have been handed over to relevant line agencies, district governments, and village organizations. All completed public sector infrastructure schemes were maintained by the government, including (i) 11 female staff hostels by the Social Welfare Department; (ii) 28 female staff offices and training facilities by agriculture and forest departments; and seed stores, onion storage units, and greenhouses by the Agriculture Department; (iii) 127.32 km of high-specification BTRs and 231 km of low-specification BTRs by district governments concerned; and (iv) 226 demonstration latrines by the Department of Schools and Literacy. All community infrastructure schemes are maintained by village organizations, including drinking water supply, micro-irrigation, and soil and water conversation schemes. Of the 39 female technical staff members recruited under the project, 33 positions have been regularized by the government. Of the 110 nonformal positions, 65% have been regularized by the government.
55. Further, NGOs established 1,745 village organizations under the project. The NGOs recruited under the project have permanent presence in the project area, which will further strengthen the capacity of these village organizations. The Bacha Khan Poverty Alleviation Fund is currently supporting these NGOs. At project closing, most of the village organizations were registered as CCBs, which qualify for district government assistance. The NGOs have also trained 14,850 community leaders (36% women) to run these village organizations.
E. Impact
56. The poverty and socioeconomic assessment of the project could not be conducted given the security situation in the project area. However, impact assessment studies carried out by the benefit monitoring and evaluation consultants rated the overall impact as high. These studies reported a 51% increase in overall cropping intensity, a 41% increase in rain-fed areas, and a
14
34% increase in irrigated areas. Cropped areas also grew, mainly for wheat (3.9%) and maize (2.2%). Wheat yield increased in irrigated project areas from 1,135 kilograms (kg) per ha to 1,391 kg per ha (a net increase of 216 kg per ha), and the maize yield grew from 1,505 kg per ha to 1,769 kg per ha (a net increase of 264 kg per ha). Similarly, use of improved seed for wheat increased by 5.6%, and for maize crops by 8.0%.
57. An overall analysis shows that the water supply schemes had a positive impact on the lives of rural people. The drinking water supply coverage to the project households increased by 42% in 2008. The household satisfaction rate for the quality of water supply was estimated at 40.5% in comparison to 2.3% in 2006. Another significant change was the introduction of pour- flush latrines for human waste disposal. The coverage of these reached 28.0% of the project households at the close of project. in comparison to a mere 0.3% in 2006.
58. During the project period, male employment opportunities increased by 3 labor days in the project area. Wages increased by PRs102 for males and PRs.44 for females. The option of passenger travel by earthen roads in the project area fell by 18%, and the option of travel by metalled roads increased by 11%. The overall literacy rates on the sample households also increased by 50%, marking an increase of 25% from the pre-project situation.
59. Further, the project had many unquantifiable social and gender equality benefits. The benefit monitoring and evaluation study at project closing noted that about 32% of the sample population was actively participating in the project activities as members of different community organizations. The project successfully contributed to promoting gender balance in the public sector and in the project area through crosscutting institutional and service delivery interventions. About 34% of the community organizations formed by the project were WCOs, which have undertaken many community development interventions. Appointment of female technical staff in natural resources sectors and their regularization before project closing, as well as construction of female staff offices and hostels, improved the gender and development capacity of the public sector. Employment service delivery support, leadership building, skills training, and awareness campaigns improved women’s health, education, and social status. These interventions had major impact in terms of creating cultural space for promoting gender equality agenda.
60. The technical audit confirmed that improving rural livelihoods in the project area through infrastructure development successfully increased agriculture productivity, community access to markets, and public service. Therefore, these made tangible, visible contributions toward achieving the objectives of poverty reduction and poverty prevention.
61. At appraisal, the project was rated as category B, with no significant environmental impact. Schemes with negative environmental impacts or involving land acquisition and involuntary resettlement were not considered nor financed under the project.
IV. OVERALL ASSESSMENT AND RECOMMENDATIONS
A. Overall Assessment
62. Overall, the project is rated successful, because four out of five project components achieved their physical targets and objectives. A summary of performance ratings is provided in Appendix 11. However, the project would have been highly successful if (i) the rural financial services component had been implemented, (ii) changes proposed to joint ADB–IFAD midterm
15 review mission had been approved, and (iii) the project closing date had been extended by 1 year.
63. The project was mostly implemented as designed at appraisal. Except for the rural financial services component and roads subcomponent, the institutional arrangements as designed and revised generally matched the implementation requirements. The key design elements that were revised during implementation included (i) decreasing and/or waiving the beneficiary share in project interventions, (ii) adding a new category of low-specification BTRs for southern districts under the feeder road subcomponent, and (iii) increasing civil engineers for District Implementation Units. Targets for drinking water supply and agriculture development activities were underestimated.
B. Lessons
64. A poverty reduction, multisector area development project covering very large isolated areas cannot be efficiently implemented in Khyber Pakhtunkhwa without (i) the Planning and Development Department as the EA, which has the essential mandate and institutional capacity for multisector interventions; (ii) a decentralized project management model; (iii) components fully designed with dedicated staff resources, operational costs for IAs, and market-based reasonable salaries and benefits; (iv) flexible, demand-driven design of interventions; (v) minimum beneficiary funding requirements; (vi) well-designed consulting packages with efficient costs; (vii) a duration of 10 years; and (viii) flexibility in loan extension, and responsiveness to security crises and natural disasters. A service delivery project with gender and development objectives cannot be implemented in Khyber Pakhtunkhwa without dedicated female technical staff and proper logistical support for them including office space, residential facilities, training facilities, and dedicated vehicles.
65. Selection of NGOs at appraisal would have ensured timely implementation of the project. Given the community mobilization as a prerequisite for all interventions, and the problem of political interference in selection of NGOs through competitive bidding, single-source selection at appraisal should be preferred.
66. Feeder roads, large drinking water supply, and surface water diversion schemes cannot be classified under the umbrella of participatory small-scale infrastructure, as these schemes require specialized technical skills and high operation and maintenance costs. In the future, these should be classified as government-managed medium-scale infrastructure subprojects.
67. To simplify the administration and financing of various subprojects, component-based financing is suggested for area-based rural development projects in which subcomponents will be financed by one financier only, together with government counterpart funding, instead of jointly by all financing sources.
C. Recommendations
68. Future Monitoring. The EA should monitor the operation and maintenance of female staff hostels by the Social Welfare Department, appointment of women in positions regularized under the project, and efficient use of facilities established for female staff and farmers.
69. Timing of the Project Performance Evaluation Report. The project is ready for a performance evaluation.
16 Appendix 1
PROJECT OUTPUTS AND ACHIEVEMENTS AT COMPLETION
Outputs As Appraised Achievements at Completion 1. Village-Level - 832 men's village 1,162 MVOs and 583 WVOs were formed and are Development organizations (VOs) and operating. 500 women VOs formed and operative - 5,200 activists and 4,450 activists were trained in basic and advanced 10,500 community village development planning, community mobilization, organization office and gender-mainstreaming skills (43% were women). bearers trained 10,220 village organization office bearers were trained (2 per community organization) in organizational management skills (34% were women).
780 community organization and village organization conferences were held; 58% were for WCOs and WVOs conferences.
- Community linkages Project partner NGOs have a permanent presence in the established to line areas, and COs and VOs established under the project agencies, participating are registered with them. Village organizations have financial institutions been organized into 62 CCBs and registered with district (PFIs), and non- governments. CCBs qualify for assistance under district governmental government annual development plans and from other organizations (NGOs) donors as well (32% were female CCBs).
- Training for gender 110 nonformal girls’ primary schools were established; mainstreaming, village 65% have been regularized by the government and have teachers, traditional birth become part of the mainstream primary education attendants, and system. livelihood skills 240 women were trained as health visitors and medical technicians in a 2-year diploma course offered by established public health schools.
1,080 women were trained as traditional birth attendants.
6,500 1-day health and education awareness campaigns, 450 gender and development forum meetings, and 33 medical camps were conducted.
231 women were trained as primary school teachers through a 2-year diploma course, offered by established public sector institutions. Teachers were also trained in promoting gender equality.
588 community organization members were trained in various technical skills (48% women) 2. Strengthened Agricultural Livelihoods
Field crops - Improved management 31,540 community organization members participated in of natural resources field days, district research and extension conferences, resulting in sustainable, and research networking seminars. increased yields - Seed multiplication and 4,118 ha (121%) of seed multiplication and demonstration plots, over demonstration plots were created; 650 ha (16%) were for 3,400 hectare (ha) WCOs.
Appendix 1 17
Outputs As Appraised Achievements at Completion - Training of 800 village 1,500 extension workers were trained. agriculture extension workers - Adaptive research trials Adaptive research trials were conducted on 1,354 ha; (820 ha) 300 ha (22%) were for WCOs.
Civil works included construction and establishment of five seed stores and sheds, a seed farm, a greenhouse, and an onion storage unit.
Horticulture - 850 vegetable demos 959 ha of vegetable demonstration plots developed to and 900 vegetable promote off-season and high-value crop production, 200 production trainees ha (21%) delivered to WCOs.
10,080 farmers were trained in vegetable production, including 1,325 village extension workers and 8,755 community organization members; 31% activities were done for women.
2,149 orchards were created for fruit crop demonstration; 500 (23%) with WCOs.
- Kitchen gardening 2,480 women were trained. training for villagers (2,000) - Fruit and vegetable 4,440 villagers were trained, of which 98% were women. preservation training for villagers (2,100) - Training in farmer- 760 farmers were trained, with 47% courses delivered to managed fruit plant WCOs. nurseries to villagers (570) Soil and water - Protection spurs (490), 654 protection spurs were completed, including 422 conservation protection bunds (500), Galvanized Iron Wire GI wire and 232 cemented spurs; check 108 (17%) were delivered to WCOs. dams (620), and water ponds 882 protection bunds were constructed, including 494 GI (200) wire and 388 cement; 130 (15%) were delivered to WCOs.
511 check dams were constructed, including 232 GI wire and 279 cemented dams; 85 (17%) were delivered to WCOs.
419 water ponds were constructed; 45 (11%) were delivered to WCOs.
250 inlets and outlets were constructed; 45 (18%) were delivered to WCOs.
18 Appendix 1
Outputs As Appraised Achievements at Completion Livestock - Artificial inseminations 197,741 animals were artificially inseminated; the (55,000), sheep and goat insemination of 15,000 (8%) animals was organized by improvement (6,600 WCOs. animals), vaccinations and deworming (1.2 6,899 goats and sheep were delivered to community million doses), village organizations for better breeds of goats and sheep; 910 livestock extension (13%) animals were delivered to women. workers trained (520), poultry production 4.45 million doses of vaccinations and deworming training for women medicines were utilized; 20% were delivered to WCOs. (3,240), and fodder demonstrations (210 ha). 3,600 community organization members were trained as village livestock extension workers; 22% of the courses were attended by women.
5,780 women were trained in poultry production, including 1,100 in commercial poultry farming, 960 in setting up pilot poultry farms, and 3,720 in domestic poultry farming.
48 pilot poultry farms were established for women.
232 ha of fodder demonstration plots were created, with 120 ha (52%) delivered to WCOs.
Female technical staff (11 livestock production officers and 11 stock supervisors) were appointed, and the positions were regularized before project closing.
140 line agency staff members were trained, including 80 in artificial insemination techniques, 40 veterinary officers in freezing semen, and 20 female technical staff members in livestock supervision and production.
Community - Training for nursery 1,240 villagers were trained in basic forestry and forestry management, community extension, nursery raising and management, forestry and enterprise establishing model integrated land-use farms; and 28% for 790 villagers; 5,500 training courses were run for women. ha of community afforestation; 18500 ha Community afforestation on 14,531 ha; and 1,220 ha of farm planting (8%) were planted by WCOs.
16,032 ha were farm plantations, with 3,000 ha (19%) through WCOs.
39,216 ha of local forests (mazri, sarkanda, and kana) were protected, with 810 ha (2%) through WCOs.
1,425 ha of demonstration nurseries were developed; 220 ha (15%) were delivered to WCOs. 3 Rural Financial - $17.5 million disbursed The component could not be launched due to lack of Services through 92,000 loans to capacity of PFIs and cost of delivery not provided under 30 percent of community the project. organization members; 30 percent of loans to Microcredit staff of NGOs was appointed, but later they women were given the task of community mobilization. - Standardized rural financial services manual
Appendix 1 19
Outputs As Appraised Achievements at Completion - Progress identified for sustainable rural financial units 4. Participatory - Microirrigation schemes 516 micro-irrigation schemes was constructed, and 90 Small-Scale (570), drinking water (17%) were delivered to WCOs. Infrastructure supply (765), feeder tracts (600 km), district 2,535 drinking water supply schemes were constructed, council link roads (275 including 250 gravity schemes, 500 hand pumps, and 17 km), microhydel system tube wells. 150 (6%) were delivered through WCOs, and (40), and community 100% of beneficiaries were women. health awareness training (830 villages) 651 km of feeder tracts were constructed, and 50 km and school latrines (205 (8%) were delivered through WVOs. schemes) 127.317 km of district council link roads were completed; 246.16 km (90%) were designed but could not be awarded due to high cost and low efficiency.
31 microhydel schemes were completed, but the rest could not be due to changed village organization priorities after the earthquake.
Community health awareness training were not conducted due to duplication with village-level development component.
226 of demonstration latrines were constructed, and 40 (18%) were constructed in girls' schools.
4,854 community organization members were trained in O&M skills, including 1,244 in micro-irrigation, 2,320 in drinking water supply, 1,200 in rural roads, and 90 in microhydel. 5. Institutional - 1 project liaison unit and The project liaison unit was established in year 1, and 11 Support 10 district district implementation units were established in year 2. implementation units staffed and established 57 project staff members were trained in various in year 1 technical and management skills.
Project - NGOs contracted; district 4 NGOs were contracted for 11 project districts; 11 management program offices, and 27 district program offices were established and fully social organizing unit staffed, 25 social organization units established, and 2 established and staffed social organization units were not established due to security problems.
- PFI established A PFI could not be established due to design problems. The cost of delivery was not provided under the project.
- Implementing agencies 197 staff members were trained, 80 in artificial trained and active in insemination techniques, 40 veterinary officers in participatory freezing semen, 20 female technical staff in livestock methodology supervision and production, and 57 in community development and related technical skills.
- District monthly meetings Accomplished. held
- Peshawar quarterly Accomplished. review meetings
20 Appendix 1
Outputs As Appraised Achievements at Completion - Project annual review It held a total of 10 meetings from 27 January 2003–31 board meeting twice December 2009. annually Consulting - Consulting person- 866.36 person-months were utilized, including 4.80 services months effectively person-months international, 861.00 person-months utilized (21 person- domestic and 112.27 survey-months. months international; 735.5 person-months domestic CCB – citizen community board, GI wire – galvanized iron wire, ha – hectare, MVO – male village organization, NGO, non government organization, PFI – participating financial institute, VO – village organization, WCO – women community organization, WVO – women village organization Source: ADB estimates, Borrower’s PCR
Appendix 2 21
TECHNICAL EVALUATOIN OF CIVIL WORKS
A. Introduction
1. The following analysis is based on an independent technical audit supported by the Asian Development Bank (ADB) at the close of the project to review the planning, design, construction, and management of main civil works. Specific objectives were to assess (i) the status of the completed schemes; (ii) whether the line agencies provided, in the PC-I (Planning Commission–1, project feasibility report), appropriate technical design, costs, and intended impacts; (iii) whether the line agencies concerned, community organizations, and contractors fulfilled their contractual obligations; (iv) whether the schemes were operational and created the intended impacts; and (v) any additional or remedial works that were required.
B. Methodology and Approach
2. This technical audit is based on a review of feasibility studies and technical designs provided by the executing agency; field-level verification of a small representative sample of 58 schemes in four project districts (i.e., Abbottabad, Karak, Kohat and Mansehra); and interviews with individuals and community organizations. The audit included four aspects: (i) assessment of planning and technical designs, (ii) quality of construction and implementation, (iii) status of operation and maintenance, and (iv) an evaluation of the intended impacts upon the targeted communities.
3. The planning stage audit included a review of appointments, legal and contractual agreements, set objectives, defined scope, and associated planned timelines. The financial arrangements for project completion, along with the coordination and recruitment processes, were also examined.
4. The design audit focused on conformity with the required technical standards for roads, buildings, and irrigation. Accuracy and adequacy of budgets along with defined design scopes and briefs were reviewed. Schedules, drawings, calculations, and specifications were checked.
5. The construction audit involved physical checks on the quality of civil works. The base reference for these checks was adherence to the agreed designs, costs, drawings, and specifications. Monitoring and supervision reports were reviewed. Physical inspection of schemes focused on projects’ status, identification of design and construction faults. Progress reports in relation to the agreed construction schedules were reviewed through available tracked data. Cost variations and associated reasons were reviewed by assessing financial and billing records and data.
6. Intended impacts were evaluated with reference to the key goals and objectives set under the project.
C. Key Findings
7. A summary of quality rating of the audited schemes is attached in Table A2.1. Following are the results of the schemes audited:
22 Appendix 2
1. Institutional Support for Gender and Development
8. Female staff hostels. Of the total 11 completed and operating hostels, 2 schemes were audited. The hostels achieved more than the initial project aims to provide employment support to women, especially in the more conservative areas. Provision of cheap accommodation, a safe living environment, and the close proximity of these hostels to job locations had a positive impact. The project also led to more employment opportunities for educated, professional women. This, coupled with the increase in income-earning opportunities, enabled women to be more independent.
9. A total of 11 hostels were constructed, with an overall capacity of 88 rooms for 176 occupants (1 hostel per project district, each with 8 rooms for 16 occupants). Overall utilization was satisfactory, but some of the hostels were underutilized in isolated districts due to security problems. As of 13 October 2010, total occupancy was 125 (71%), ranging from 163% in Kohat District to 0% in Orakzai Agency, which is currently under military operation against Taliban insurgents. The facilities were innovative, surpassing all expectations and design objectives. This is further proven by the existence of a waiting list for the Kohat District facility.
10. The design of the hostels exceeded the requirements set out under the project in terms of capacity. The minimum set requirement of 5,000 square feet was exceeded. Unfortunately, the standards of post-completion operation and maintenance of these hostels were found to be generally poor, especially in Kohat District, due to budget constraints of the Social Welfare Department. Until sufficient funds are made available, these facilities are unlikely to be sustainable in the long term.
11. Female staff offices. A total of 28 offices were constructed under the project to provide employment support to female technical staff including agriculture officers, livestock production officers, and livestock supervisors. The facilities included offices and a training hall. The facilities were adequately designed and met the project objectives. The officers concerned have been effectively involved in the training of local women. The sustainable impacts of this training are likely only on a small, localized scale. Of the four schemes visited, two were being used efficiently by the female agricultural officer. The other two were temporarily used by other staff of the Agriculture Department. The design and construction quality was efficient.
2. Agriculture and Horticulture Research and Extension Infrastructure
12. Soil and water conservation schemes. The project constructed a total of 2,716 galvanized iron GI wire and cemented structures, including 564 protection spurs, 882 protection bunds, 511 check dams, and 419 water ponds. In addition, 250 inlets, outlets, and spillways were also constructed. Of these, 15 schemes were audited. Overall, the interventions were relevant. The quality of technical designs, works, and maintenance was satisfactory. However, some of the designs were only partly successful. Documentation provided by the Soil and Water Conservation Department was poor. It lacked feasibility studies, environmental impact assessments, drawings, and calculations. Further, better site selection and targeting would have enhanced the number of households that could have benefited. The design of the protection bunds and spurs did not always account for key engineering parameters, which should have been the overriding factor in selecting the sites and the extent of intervention, especially in the dry river beds. This was noted at two locations.
13. Seed stores, greenhouse, and onion storage. The project constructed three seed stores, a seed shed, a seed farm, a greenhouse, and an onion storage unit to improve the
Appendix 2 23 agriculture extension and research capacity of the Agriculture Department. Of these, four schemes were audited, and it was noted that agricultural research enhancement through infrastructure development successfully increased the capacities of the department. These were very well designed and implemented. However, the efficiency of the stores was currently low due to excess space and facility. Sustainability is only likely if the department has sufficient funds to ensure maintenance and repair.
3. Participatory Small-Scale Infrastructure
14. At appraisal, the activities under this component were defined as small-scale infrastructure and were grouped under six subcomponents: (i) 570 micro-irrigation schemes; (ii) 765 community-managed drinking water supply schemes; (iii) 600 kilometers (km) of community-managed feeder tracks, with an average length of 3 km per scheme; (iv) 275 km of district government-managed, high-specification blacktop district council link roads, averaging about 15 km long, to be designed and supervised by a consulting firm; (v) 40 community- managed microhydel systems; (vi) community health awareness training in 830 villages; and (vii) 205 demonstration latrines.
15. The project faced difficulties in implementing this component as designed. Feeder roads as designed at appraisal were to be 10 feet wide, gravel surface on leveled and compact natural subgrade, with simple drainage structures like pipe culverts or side ditches where required. They were to cost per km about PRs0.52 million. After project inception, the feeder roads portfolio was revised from one category of gravel roads to two subcategories with revised specifications: (i) village feeder tracks with 16–20 feet formation widths, and (ii) low-specification blacktop roads.1 The beneficiary funding share was also reduced.
16. A sample review of feeder roads by midterm review consultants noted inadequacies in road geometrics and the provision of road surface drainage, particularly important in hilly conditions. Some of the tracks showed steep gradients (in excess of 12%) and sharp hairpin curves. Minimal design standards (e.g., geometrics, gradients, and surface and or cross- drainage) for such roads were recommended to improve the effective use by various types of vehicles and to ensure the prospect of future upgrading.
17. The midterm review mission also noted that the investment on high-specification blacktop roads was excessive and unlikely to yield the expected rate of return to justify the higher costs. It was recommended to reduce the scope of these roads and to replace them with low-specification blacktop roads to make the road investments consistent with the rural and barani economies characterized by low agriculture produce and transport requirements, low population densities, and fairly low traffic densities. These changes were not approved by ADB, due to a linked request for project extension, but for the above reasons, the executing agency stopped further construction.
18. After these revisions, all of the other subcomponents were successfully implemented, except for district council roads. Of the total 275.00 km of district council roads, 246.16 km (90%) were designed, and 127.31 km (46%) were constructed. The key factors for limited achievements of district council roads included (i) delays in subproject identification due to lack of supervisory capacities of the District Implementation Units and Project Liaison Unit, (ii) delays in planning and design of roads by consultants, (iii) supervision delays by Works and Services
1 In view of the limited efficacy of shingle roads in southern project districts because of sandy and plain terrain, the design standards were upgraded for southern districts from jeep-drivable tracks to low-specification blacktop roads.
24 Appendix 2
Department due to lack of staff and heavy workload related to overall departmental operations, and (iv) construction-related problems associated with nonresponsive construction firms. The situation was compounded by the inadequate capacities of the designated road design and supervision consulting firm, who indicated lack of staff and logistics due to the contract’s low cost. To improve the capacity of the District Implementation Units and the design and supervision consultants, additional engineers were placed at the district-level project offices during 2006, and the consulting firm’s contract was revised in 2008 to meet project needs.
19. The following are the findings of the technical audit.
20. Micro-irrigation. Of the 516 completed schemes, 7 were audited. These schemes were successful in achieving their primary goals. The changes in cropping patterns from staple wheat and maize to high-value cash crops resulted in increased farmer incomes. These sustainable interventions will lead to major reductions in rain scarcity impacts. The design and implementation of these schemes were generally successful. The design of an earthen pond visited was only partly successful, as it did not address the long-term sustainability issues in terms of the physical infrastructure nor the method of irrigating adjacent lands. However, its sustainability was likely. Site selection and poverty targeting was partly successful. Of the seven schemes visited, only one was not in working condition due to maintenance and repair issues. It is estimated that 80% of the schemes are likely to continue to operate and to provide increased crop yields and income. Sustainability is more than likely. The impact the farmers not sustaining these schemes will result in reduced income and increased poverty.
21. Drinking water supply and sanitation. The project constructed 2,535 schemes, including 107 gravity schemes, 2,273 hand pumps, and 155 tube wells. A total of 15 water supply schemes and one demonstration latrine were audited. The large drinking water scheme in Abbottabad District was very successful in sharing the benefits of providing clean drinking water to the targeted groups. The feasibility studies were excellent, and the designs included all key engineering aspects and were efficient in achieving the goals and objectives set. The implementation and construction quality was excellent and comparable to international standards. Documentation included all the necessary design, drawings, calculations, measurements, and technical studies. The scheme was efficient in both the number of beneficiaries and target groups. Sustainability will be ensured due to the negative impact that will arise should this scheme become nonoperational.
22. The design and construction of the smaller water schemes, especially the hand pumps, were excellent. Schemes that fulfilled the target group requirement along with good poverty targeting were fulfilling the primary objectives. Three of the 10 schemes had not met the target group requirements and were weak in poverty targeting. These schemes were not working or had been converted into mini tube wells. It can be safely estimated that 70% of the schemes will continue to be sustainable in the near future and efficiently provide clean drinking water.
23. The school demonstration latrines included a set of three units with a water tank on top. These were efficiently designed and implemented, and the site was proper. Yet, the condition of the facility was poor due to lack of hygiene standards implemented by the school. The scheme has failed in all set objectives, and currently, the facility is a health hazard. The targeted beneficiaries were better off from a health and safety point of view without this intervention.
24. Feeder roads. A total of three jeep-drivable tracks and four low-specification blacktop roads were audited. These feeder roads successfully achieved their core objectives through successful poverty targeting, site selection, and efficient design. Improvements in pass ability
Appendix 2 25 and access have resulted in significantly improved business activity and income-generating opportunities. While the designs were successfully implemented, 33% of the visited schemes fell short of construction completion due to subcontractors not fulfilling the agreed-upon contractual obligations. For example, key sections of road requiring protection structures (village Chanal to village Nourmang) were not completed as per agreed civil works contracts. The sustainability is only likely through enhanced government support in an area that is prone to landslides. The quality of civil works, however, was generally satisfactory.
25. District council roads. Of the three roads audited, one was inadequately designed. The rest were of a satisfactory standard. Due to inefficient design and poor construction supervision, these roads will attract high maintenance costs, and sustainability will only be possible through constant maintenance and repair. The roads consultants did not fulfill contractual obligations within the specified time frame due to in-house lack of resources and an underbudgeted contract. This led to a domino effect, with direct delays in design and construction causing the road portfolio to be constantly behind schedule. Constant revisions were made to the scope to accommodate these inadequacies. As a result, construction contracts were subject to constant revision, which was a poor solution to a known problem.
26. Delay in delivery of correct designs and drawings to the construction contractors further extended the planned completion dates and created problems in construction. This was noted at certain key locations where the incorrect placement of reinforcements led to inadequate cover and eventually to slab failure on the Indus Highway to Zara Mel. Poor workmanship, technical design, finishing, and construction on Sumari Payan–Sumari Bala road required high maintenance and sustainability costs. During the site inspections, there was no notable quality difference between the high- and low-specification blacktop roads to justify the price variations between the two. The greatest parameter impacting quality was construction supervision. The low level of consulting input for designing and supervision of large, varied roads scope, as designed, resulted into low technical and financial proposals that lead to many of the problems in the roads portfolio.
D. Overall Analysis
27. The technical audit confirmed that the development and implementation of most of the schemes were largely in line with the overall project framework, envisaged design principles, and technical specifications. The overall quality of designs, construction, and operation and maintenance were found to be satisfactory. Therefore, these made tangible and visible contribution toward achieving the objectives of reducing and preventing poverty. Except for the roads subcomponent, the project exceeded its original scope in terms of number of interventions. The roads subcomponent remained subject to changes in scope throughout the project lifespan. The larger scope of road works along with the large drinking water supply and surface water diversion schemes cannot be classified under the umbrella of participatory small- scale infrastructure. These could be classified in the future as a medium-scale public sector project, managed by the government.
28. The interventions covered very large isolated areas. Staff resources and consulting inputs required for district council roads were underestimated at project appraisal. This was rectified during the project life cycle. The district implementation units were responsible for certifying payments and releasing funds from the central project management unit. They were very effective in ensuring payments, as they were authorized and released according to works completed and on time. The Public Health Engineering Department and Irrigation Department had the in-house technical capacity to deliver the interventions assigned to them. The Works
26 Appendix 2 and Services Department successfully delivered the buildings but did not have sufficient staff to monitor the roads. The performance of the Soil and Water Conservation Department was partly satisfactory due to lack of capacity. The overall performance of construction contractors was satisfactory.
29. A negative influence was created due to the stringent banding of schemes at district levels. To keep the limit within the Scheme Review Approval Board’s ceiling, possible compromises could have been made on quality through underdesign of key components to reduce cost. The community funding and technical requirements, as designed, were high and at times beyond community organizations’ capacities.
30. The cost estimates and financing arrangements, as designed, were inefficient in a few cases, which delayed the implementation of schemes. There was significant cost overrun (37%) in participatory the small-scale infrastructure component due to increase in prices of transport, machinery, labor, and material (estimated at $34.6 million and completed at $47.5 million). The Governments’ Composite Schedule of Rates 1999 were enhanced by 15%, 38%, and 87% during project implementation period due to market fluctuation regarding the purchase of machinery, increase in external electrification costs, and boring for greater depth because of depletion of water resources. As a result, most of the PC-Is and construction contracts were revised, which caused delays in implementation. In addition, the project suffered from high staff turnover due to low salaries and security crises. The beneficiary funding requirement was very high, which also delayed the implementation. The costs and financing arrangements were revised, targets were adjusted, and the infrastructure component was successfully completed.
31. The overall impact of the interventions varied, but overall, the project successfully managed to increase the incomes of a significant number of farmers and can be regarded successful in poverty reduction.
Appendix 2 27
Table A2.1: Summary of Audit
Quality of Oper- Construc- ation Quality of tion and and Met No. of Technical Imple- Main- Object- Name of Scheme Audited Schemes Design mentation tenance ives
I. Institutional Support for Gender and Development Female Staff Hostels 1. Abbottabad 1 S S U S 2. Kohat 1 S S U S Total 2 Establishment of Female Technical Staff Offices 3. Abbottabad, agriculture extension 1 S S S S office 4. Kohat, agriculture extension office 1 S S S PS 5. Abbottabad, office and training hall, 1 S S S PS female LPO 6. Kohat, office and training hall, 1 S S S S female LPO Total 4
II. Agricultural and Horticulture Research and Extension of Infrastructure Greenhouse, Seed Stores, and Onion Storage Units 7. Mansehra, agriculture research 1 S S S S station, Baffa seed store 8. Mansehra, agriculture research 1 S S S S station, Baffa onion storage unit 9. Mansehra, agriculture research 1 S S S S station, Baffa greenhouse 10. Kohat, Dhodial seed store 1 S S S S Total 4 Soil and Water Conservation 11. Karak, Mir Kalam Banda pond 1 PS S U PS 12. Kohat, Nakband, mini check dam 1 S S S S 13. Mansehra, Hathi Mera check dam 1 S S S S 14. Mansehra, Hathi Mera GI wire 1 S S S S check dam 15. Mansehra, Hathi Mera check dam 1 S S S S 16. Abbottabad, Sada Bahar GI wire 1 S S S S spur 17. Abbottabad, Sada Bahar Wo GI 1 S S S S wire spur 18. Karak, Gharur Chakehl GI wire spur 1 S S S S 19. Karak, Dubli Lawaghar spurs 2 S S S S 20. Karak, Dubli Laeanip spurs 1 S S S S 21. Mansehra, Bela Char spurs 1 S S S S 22. Mansehra, Hathi Mera spurs 1 S S S S 23. Abbottabad, Havelian–Keyala inlet 1 S S S S and outlet 24. Kohat, Lajmur–Korna inlet and 1 S S S S outlet Total 15
III. Participatory Small-Scale Infrastructure Drinking Water Supply and Sanitation Schemes 25. Karak, Shawal mini tube well 1 S S S S 26. Abbottabad, JalsiI large DWSS 1 HS HS HS HS 27. Mansehra, Tubgli Soha–Mungul 1 S S S S water storage tank
28 Appendix 2
Quality of Oper- Construc- ation Quality of tion and and Met No. of Technical Imple- Main- Object- Name of Scheme Audited Schemes Design mentation tenance ives
28. Mansehra, Hathi Mera–Sanda Sar 1 S S U U water storage tank 29. Kohat, Toh Payan hand pump 1 S S S S 30. Kohat, Toh Payan, 2 hand pumps 1 S S S S 31. Kohat, Lajmur Korna water tank 1 S S S S and pump 32. Mansehra, Hathi Mera hand pump 1 S S PS PS 33. Mansehra, Upper Hathi Mera hand 1 S S S S pump 34. Mansehra, Lower Hathi Mera hand 1 S S S S pump 35. Abbottabad, Tarli Dhok Kayala 1 S S PS PS hand pump 36. Abbottabad, Jamia Masjid hand 1 S S S S pump 37. Kohat, Lajmur Korna hand pump 1 S S PS PS 38. Kohat, Voahra GarhiI hand pump 1 S U S S 39. Abbottabad, Jhangra demonstration 1 S S U U latrines 40. Kohat, Voahra Garhi DWSS 1 S S S S Total 16 Micro-Irrigation 41. Mansehra, Baffa Maira irrigation 1 S S S S tube well 42. Karak, Gharur Chakehl irrigation 1 S S S S mini tube well 43. Abbottabad, Havel Jhangra mini 1 S S S S tube well 44. Abbottabad, Sada Bahar mini tube 1 S S S S well 45. Kohat irrigation scheme 1 S S S S 46. Kohat, Kot Dokh Manabad irrigation 1 S S U S scheme 47. Mansehra, Daryal diversion 1 S S S S irrigation Total 7 Roads 48. Abbottabad, Chanal–Nurmang 1 S PS PS S 59. Abbottabad, Chanala–Upper 1 PS S S S Mehra Kalam 50. Kohat, Kot Road 1 S S S S 51. Kohat, Indus Highway Chaktoo 1 S S S S 52. Kohat, Indus Highway Zonaka 1 S S S S 53. Kohat, Tok Ikram Bili Tang 1 S S S S 54. Karak, Indus Highway–Zara Mel 1 U S S U 55. Abbottabad, Havelian–Kaseel 1 S S S S 56. Abbottabad, Chamgagali Ziarat 1 S S S S Masoom 57. Kohat, Sumara Payan–Sumara 1 U S S U Bala Total 10 Total Schemes Audited 58 GI wire = galvanized iron wire, HS = highly satisfactory, LPO = livestock production officer, PS = partly satisfactory, S = satisfactory, US = unsatisfactory. Source: ADB. 2010. Technical Audit of Civil Works, Barani Area Development Project—Phase II. Islamabad.
BENEFICIARY SHARE AS APPRAISED AND COMPLETED
Beneficiary Share (%) Type of Infrastructure As Appraised As Completed A. Kohistan and Orakzai Agency 1. Agriculture and Natural Resource Management On-farm demonstration for field and horticulture crops 20 20 (land and labor) Soil and water conservation 50 25 (labor and local material) Livestock (artificial insemination) 50 25 (cost) Livestock (sheep rams) 75 25/0 (cost) Livestock (fodder demonstration) 20 20 (land and labor) Potted and bed nurseries 25 25 (land and labor) Village afforestation 27 20 (cost)
2. Participatory Small-Scale infrastructure Feeder tracks 30 The design was revised into three categories: (i) low-specification blacktop roads, (ii) shingle roads, and (iii) jeep-drivable tracks Beneficiary share was dropped for low spec. blacktop roads (BTR) decreased for jeep-drivable and shingle roads to 10% (labor and local material) not exceeding PRs200,000 Micro-irrigation (tube wells) 50 25 (labor and local material) Micro-irrigation (diversion) 35 20 (labor and local material) Micro-irrigation (ponds) 30 20 (labor and local material) Drinking water supply and sanitation (gravity) 28 11 (land + 8% of cost in cash to maximum of PRs100,000) Drinking water supply and sanitation (tube wells) 20 16 (land + 8% of cost in cash to maximum of PRs100,000) Drinking water supply and sanitation (hand pumps) 30 20 (labor and local material) Microhydel 35 20 (labor and local material)
B. Other Nine Districts 1. Agriculture and Natural Resource Management On-farm demonstration for field and horticulture crops 20 20 (land and labor) Soil and water conservation 50 25 (labor and local material) Livestock (artificial insemination) 50 25 (cost) Livestock (sheep rams) 75 25/0 (cost) 3 Appendix Livestock (fodder demonstration) 20 20 (land and labor) Potted and bed nurseries 25 25 (land and labor) Village afforestation 27 20 (cost)
29 2. Participatory Small-Scale Infrastructure Village feeder roads (jeep-drivable tracks) 30 The design was revised into three categories: (i) low-specification BTRs, (ii) shingle roads, and (iii) jeep-drivable tracks Beneficiary share was dropped for low specification BTRs and decreased for jeep-drivable and shingle roads to 10% (labor and local material) not
30 Appendix 3
Beneficiary Share
(%) 30 Type of Infrastructure As Appraised As Completed exceeding PRs200,000 Appendix 3 Appendix Micro-irrigation schemes Diversion schemes 35 20 (labor and local material) Pond schemes 30 20 (labor and local material) Tube wells and dug-well irrigation 50 25 (labor and local material)
Water supply schemes Gravity schemes 28 15 (land + 12% of cost in cash to maximum of PRs200,000) Hand-pump schemes 30 20 (labor and local material) Tube-well schemes 20 20 (land + 12% of cost in cash to maximum of PRs200,000) Microhydel schemes 35 20 (labor and local material) BTRs – blacktop roads
Source: Asian Development Bank. 2004. Back-to-office report of project review mission, 3 November. Manila.
Appendix 4 31
PROJECT COSTS AND FINANCING PLAN
Table A4.1: Summary Project Cost by Financier ($ million)
As Appraised As Completed Foreign Local Foreign Local Source Currency Currency Total Percent Currency Currency Total Percent Asian 14.7 37.3 52.0 53 13.4 31.6 45.0 56 Development Bank International 4.3 10.5 14.8 15 9.3 0 9.3 11 Fund for Agricultural Development Government 0 20.1 20.1 20 0 22.5 22.5 28 Participating 0 1.2 1.2 1 0 0 0 0 financial institution Beneficiaries 0 10.9 10.9 11 0 3.8 3.8 5 Total 19.0 80.0 99.0 100 22.7 57.9 80.6 100 Note: Numbers may not add up due to rounding. Source: Asian Development Bank estimates, Report and Recommendation of the President to Board of Directors: Proposed Loan to Pakistan for the NWFP Barani Area Development Project, Manila; and borrower’s project completion report.
Table A4.2: Project Cost by Component and Currency ($ million)
As Appraised As Completed Foreign Local Foreign Local Item Currency Currency Total Currency Currency Total A. Base Cost 1. Village-level development 1.5 9.8 11.3 8.3 16.7 25.0 2. Strengthening agriculture 1.8 17.4 19.2 1.8 7.5 9.4 livelihoods 3. Rural financial services 1.9 8.2 10.1 0 0 0 4. Participatory small-scale 7.9 26.7 34.6 6.9 15.6 22.5 infrastructure 5. Institutional support 1.9 8.0 9.9 4.8 18.1 22.9 Subtotal (A) 15.0 70.1 85.1 21.9 57.9 79.8
B. Contingencies 1. Physical contingencies 0.6 2.7 3.3 0 0 0 2. Price contingencies 1.4 7.2 8.6 0 0 0 Subtotal (B) 2.0 9.9 11.9 0 0 0
C. Interest during Construction 2.0 - 2.0 0.8 0 0.8 Total 19.0 80.0 99.0 22.7 57.9 80.6 Percent 19 81 100 28 72 100 Note: Numbers may not add up due to rounding. Source: Asian Development Bank estimates, Report and Recommendation of the President to Board of Directors: Proposed Loan to Pakistan for the NWFP Barani Area Development Project, Manila. borrower’s PCR.
32 Appendix 5
CONTRACT AWARD AND DISBURSEMENT PERFORMANCE ($ million)
Year Contract Award Disbursements Projected Actual Cumulative Projected Actual Cumulative 2002 1.500 - - 0.240 0.472 0.472 2003 10.700 3.014 3.014 1.700 0.068 0.540 2004 9.000 1.196 4.210 6.500 3.459 3.999 2005 6.000 4.601 8.811 6.000 5.277 9.276 2006 7.000 8.185 16.996 7.000 8.678 17.954 2007 8.500 9.048 26.044 8.000 12.891 30.845 2008 17.000 14.282 40.326 16.000 13.968 44.813 2009 2.000 3.476 43.802 2.500 0 44.813 2010 0 0.156 43.958 0 0.197 45.010 61.700 43.958 47.940 45.010
Source: Asian Development Bank’s historical project performance reports.
Appendix 5 33
PROJECT IMPLEMENTATION SCHEDULE
34 Appendix 6
Appendix 7 35
STATUS OF COMPLIANCE WITH LOAN COVENANTS
Reference in Loan and/or Project Status of Covenant Agreement Compliance NWFP, through PEDD, shall be the Project Executing Agency. PEDD LA, Schedule 6, Complied with. shall exercise supervision through PRB meetings. para. 1
PLU shall be staffed by a Project Director, a monitoring economist, a LA, Schedule 6, Partly complied gender & human resource development officer, infrastructure and para. 2 with. An agricultural/natural resource management coordinators, an accountant, economist was and support staff. not hired by the project.
DIUs in all districts and one agency in the Project area shall be LA, Schedule 6, Complied with. responsible for day-to-day planning and implementation of the Project. para. 3 DIUs shall be staffed by a district Project coordinators, a community infrastructure coordinator, a gender coordinator, an agriculture and natural resources management coordinator, and an accountant.
In each of the northern and southern regions, there shall be a LA, Schedule 6, Complied with. coordinating BME specialist, who shall forward relevant reporting data para. 4 directly to the PLU.
The staff of the PLU and DIUs shall be engaged by contract with renewal LA, Schedule 6, Complied with. subject to performance evaluation by PRB. para. 5
NWFP shall move Project-financed women staff in the line agencies to LA, Schedule 6, Complied with. permanent status on an increasing basis as positions become available. para. 6 District Councils shall construct, maintain and operate hostels for the use Complied with. of women staff in the Project area, and shall operate and maintain these hostels for the use of women line agency staff after the Project is completed.
Separate office space, multi-seater vans and double cabin vehicles shall Complied with. be provided under the Project for culturally-acceptable participation of women in the Project.
NGOs shall be engaged through competitive bidding procedures LA, Schedule 6, Complied with acceptable to the Bank, within three months of the Effective Date. para. 7 late.
The selected NGOs shall provide services to the DIUs for implementation LA, Schedule 6, Complied with. of the Project. para. 8
The principal agencies responsible for providing technical support to the LA, Schedule 6, Complied with. WOs and VOs for Part B of the Project shall be Ag. Extn Dept (for field para. 9 crops), Livestock/Dairy Dev Dept (livestock and fodder subcomponent), Fruit and Vegetable Dev Board (horticulture), Agr. Research of NWFP Agr. University (applied and adaptive research), Soil and Water Conservation department (soil and water conservation), and Forestry Department(community forestry).
The principal agencies responsible for providing technical support for Part LA, Schedule 6, Complied with. D of the Project shall be: PHED (large drinking water supply schemes); para. 10 LGERDD (small drinking water supply schemes and simple village feeder roads), Local District Councils (district council link roads and women’s hostels), PIDA (micro-irrigation schemes), and the Pakistan Council for Appropriate Technology or any other agency that has proven capacity (micro-hydroelectric schemes).
36 Appendix 7
Reference in Loan and/or Project Status of Covenant Agreement Compliance Local coordination shall be through monthly planning and review meetings LA, Schedule 6, Complied with. by DCCs that will include participation of the DIUs, DCOs, line agencies, para. 11 NGOs, and representatives of the WOs and VOs.
NWFP shall cause BOK or any other PFI acceptable to the Bank to LA, Schedule 6, Not complied onlend the proceeds of the Loan allocated for Part C of the Project to the para. 12 with. The beneficiaries, on terms and conditions satisfactory to the Bank. microfinance component was not launched.
BOK or any other PFI shall cofinance ten percent of the PFI credit line. LA, Schedule 6, Not complied para. 13. with. The microfinance component was not launched.
At least 30 percent of all loans shall be made to female sub-borrowers. LA, Schedule 6, Not complied para. 14 with. The microfinance component was not launched.
O&M of village infrastructure provided by the Project, except the district LA, Schedule 6, Partly complied council link roads, shall be the responsibility of the communities. O&M of para. 15 with. O&M of the district council link roads shall be conducted by LGERDD. village feeder Arrangements for the responsibility for and financing of O&M of the district track, as well as council link roads shall be decided prior to the commencement of the district link roads, relevant civil works. was provided by the Works and Services Department.
The PLU and DIUs shall be responsible for routine project BME, with the LA, Schedule 6, Partly complied assistance of BME consultants over the Project implementation period, para. 16 with. BME was and shall establish a project BME system during the first year. established in year 3. BME consultants shall execute the baseline study in the first year.
EIA reports of environmentally-sensitive district council link roads shall be LA, Schedule 6, Complied with. submitted to the Bank for its review and clearance prior to including such para. 17 roads in the Project. Schemes with a negative EI that cannot be mitigated to the satisfaction of Complied with. the Bank shall not be included in the Project.
(a) NWFP shall carry out the Project with due diligence and efficiency, PA Article II, Complied with. and in conformity with sound administrative, financial, engineering, Section 2.01 environmental, banking, business, agricultural, and area development practices. (b) In the carrying out of the Project and operation of the Project facilities, NWFP shall perform all obligations set forth in the Loan Agreement to the extent that they are applicable to NWFP.
(a) NWFP shall make available, promptly as needed, the funds, PA Article II, Partly complied facilities, services, equipment, land and other resources which are Section 2.02 with. A major required, in addition to the proceeds of the Loan, for the carrying out portion of the of the Project and the operation and maintenance of the Project government’s facilities. share for works
Appendix 7 37
Reference in Loan and/or Project Status of Covenant Agreement Compliance (b) Without limiting the generality of paragraph (a) above, NWFP shall in Orakzai provide adequate budgetary allocations in its annual budget to Agency were ensure that the Project shall be completed in accordance with the released after 18 Project scope and Project implementation schedule. months of project closure.
(a) In the carrying out of the Project, NWFP shall employ competent and PA Article II, Complied with. qualified consultants, NG0s, and contractors, acceptable to the Section 2.03 Bank, to an extent and upon terms and conditions satisfactory to the Bank. (b) Except as the Bank may otherwise agree, all goods and services to be financed out of the proceeds of the Loan shall be procured in accordance with the provisions of Schedule 4 and Schedule 5 to the Loan Agreement. The Bank may refuse to finance a contract where goods or services have not been procured under procedures substantially in accordance with those agreed between the Borrower and the Bank or where the terms and conditions of the contract are not satisfactory to the Bank.
NWFP shall carry out the Project in accordance with plans, design PA Article II, Complied with. standards, specifications, work schedules and construction methods Section 2.04 acceptable to the Bank. NWFP shall furnish, or cause to be furnished, to the Bank, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as the Bank shall reasonably request.
(a) NWFP shall take out and maintain with responsible insurers, or PA Article II, Not complied make other arrangements satisfactory to the Bank for insurance of Section 2.05 with. the Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice. (b) Without limiting the generality of the foregoing, NWFP undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.
NWFP shall maintain, or cause to be maintained records and accounts PA Article II, Complied with. adequate to identify the goods and services and other items of Section 2.06 expenditure financed out of the proceeds of the Loan, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect, in accordance with consistently maintained sound accounting principles, its operations and financial condition. 7 (a) The Bank and NWFP shall cooperate fully to ensure that the PA Article II, purposes of the Loan will be accomplished. Section 2.07 (b) NWFP shall promptly inform the Bank of any Condition which interferes with, or threatens to interfere with, the progress of the Project, the performance of its obligations under this Project Agreement or any PFI Subsidiary Loan Agreement, or the accomplishment of the purposes of the Loan. (c) The Bank and NWFP shall from time to time, at the request of either party, exchange views through their representatives with regard to any matters relating to the Project, NWFP and the Loan.
38 Appendix 7
Reference in Loan and/or Project Status of Covenant Agreement Compliance (a) NWFP shall furnish to the Bank all such reports and information as PA Article II, Partly complied the Bank shall reasonably request concerning (i) the Loan and the Section 2.08 with. The PCR expenditure of the proceeds thereof; (ii) the goods and services and was submitted other items of expenditure financed out of such proceeds; (iii) the with a delay of Project; (iv) to the extent relevant to the Project, the administration, more than 1 operations and financial condition of NWFP; and (v) any other year. matters relating to the purposes of the Loan. (b) Without limiting the generality of the foregoing, NWFP shall cause PLU, and PFI through PLU, to furnish to the Bank quarterly progress reports and consolidated annual reports on the execution of the Project and on the O&M of the Project facilities. Such reports shall be submitted in such form and in such detail and within such a period as the Bank shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter or the year under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter or year. (c) Promptly after physical completion of the Project, but in any event not later than three 3 months thereafter or such later date as the Bank may agree for this purpose, NWFP shall cause PLU, and PFI through PLU, to prepare and furnish to the Bank a consolidated report, in such form and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by NWFP of its obligations under this Project Agreement and the accomplishment of the purposes of the Loan.
(a) NWFP shall cause PEDD and PR to (i) maintain separate accounts PA Article II, Complied with. for the Project and for its overall operations; (ii) have such accounts Section 2.09 and related financial statements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to the Bank; and (iii) furnish to the Bank, promptly after their preparation but in ay event not later than twelve months, fiscal year to which they re ate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including PEDD's auditors' opinion on the use of the Loan proceeds and compliance with the covenants of the Loan Agreement as well as on the use of the procedures for imprest account and statement of expenditures), all in the English language. NWFP shall cause PEDD and PFI to furnish to the Bank such further information concerning such accounts and financial statements and the audit thereof as the Bank shall from time to time reasonably request. (b) NWFP shall cause PELT and PR to enable the Bank, upon the Bank's request, to discuss their respective financial statements and financial affairs, relevant to the Project, from time to time with their respective auditors, and shall authorize and require any representative of such auditors to participate in any such discussions requested by the Bank, provided that any such discussion shall be conducted only in the presence of an authorized officer of NWFP or PFI, as the case may be, unless NWFP or PFI, as the case may be, shall otherwise agree.
NWFP shall enable the Bank's representatives to inspect the Project, the PA Article II, Complied with. goods financed out of the proceeds of the Loan, all other facilities, sites, Section 2.10 works, properties and equipment of NWFP, relevant to the Project, and
Appendix 7 39
Reference in Loan and/or Project Status of Covenant Agreement Compliance any relevant records and documents.
(a) NWFP shall at all times conduct its business in accordance with PA Article II, Complied with. sound administrative, financial, environmental, banking, business, Section 2.11 agricultural and area development practices, and under the supervision of competent and experienced management and personnel. (b) NWFP shall at all times operate and maintain the Project facilities and all related equipment and other property, and from time to time, promptly as needed, make all necessary repairs and renewals thereof, all in accordance with sound administrative, financial, engineering, environmental agricultural, rural development, and maintenance and operational practices.
Except as the Bank may otherwise agree, NWFP shall not sell, lease or PA Article II, Complied with. otherwise dispose of any of its assets which shall be required for the Section 2.12 efficient carrying on of its operations, relevant to the Project, or the disposal of which may prejudice its ability to perform satisfactorily any of its obligations under this Project Agreement.
Except as the Bank may otherwise agree, NWFP shall apply the proceeds PA Article II, Complied with. of the Loan to the financing of expenditures on the Project in accordance Section 2.13 with the provisions of the Loan Agreement and this Project Agreement, and shall ensure that all goods and services financed out of such proceeds are used exclusively in the carrying out of the Project.
Except as the Bank may otherwise agree, NWFP shall duly perform all its PA Article II, Complied with. obligations under any PFI Subsidiary Loan Agreement, and shall not take, Section 2.14 or concur in, any action which would have the effect of assigning, amending, abrogating or waiving any rights or obligations of the parties under any PR Subsidiary Loan Agreement/
BME = benefit monitoring and evaluation, DCC = district coordination committee, DCO = District Coordination Officer, DIU = District Implementation Unit, EI = environmental impact, LA = loan agreement, LGERDD = Local Government, Election and Rural Development Department, NGO, non government organization, NWFP = North-West Frontier Province, PA = project agreement, PEDD = Planning, Environment and Development Department, PFI = participating financial institute, PHED = Public Health Engineering Department, PIDA = Provincial Irrigation department, PLU, project liaison unit, PRB = project review board, VO = village organization, WO = women organization
Source: ADB Mission Aidememoires, and Back-to-Office reports of the Project
40 Appendix 8
CONSULTING SERVICES INPUT UTILIZATION (person-months)
Person-months Consulting Services Vairance Appraised Actual 1.Benefit Monitoring and Evaluation (Social and Livelihood Support) Project M&E (international) 9.0 4.80 (4.20) Agricultural crops (domestic) 5.0 3.32 (1.68) Livestock production (domestic) 5.0 3.99 (1.01) Community forestry (domestic) 5.0 3.01 (1.99) Community infrastructure (domestic) 5.0 4.46 (0.54) Microfinance and enterprise (domestic) 5.0 2.82 (2.18) Gender and development (domestic) 5.5 6.15 0.65 Environmentalist (domestic) 5.0 2.02 (2.98) Economist (domestic) 5.0 7.19 2.19 Survey and data analyst (domestic) 9.0 11.62 2.62 Survey team 9.0 112.27 103.27 Subtotal domestic consultants 58.5 156.85 98.35 Subtotal Benefit Monitoring and Evaluation 67.5 161.65 94.15
2. NGO Capacity Building NGO strengthening specialists (domestic) 88.0 0 (88.00) 3. District Council Link Roads Consultants (Domestic) A. Design Consultants Project Manager, and highway engineer 60.0 32.0 (28.0) Payment engineer 12.0 12.0 0 Structural engineer 12.0 9.0 (3.0) Geo-technical enginneer 12.0 4.0 (8.0) Hydrologist 6.0 4.0 (2.0) Transport economist 12.0 4.0 (8.0) Environmental specialist 12.0 4.0 (8.0) Contractor engineer 6.0 6.0 0 Quantity, or cost engineer 14.0 14.0 0 Subtotal (A) 146.0 89.0 (57.0) B. Construction Superivsion Engineers Resident engineer-I 54.0 55.0 1.00 Resident engineer-III 54.0 55.0 1.00 Material engineer-I 54.0 33.0 (21.00) Material engineer-II 54.0 33.0 (21.00) Subtotl (B) 216.0 176.0 (40.0) C. Construction Supervision Inspectors and Surveyors Inspector Inspector I 54.0 70.0 16.0 Inspector II 54.0 70.0 16.0 Surveyor I 54.0 26.0 (28.0) Surveyor II 54.0 26.0 (28.0) Quantity Surveyor 0 70.0 70.0 Surveyor, or Laboratory Technician 0 285.0 285.0 Subtotal (C) 216.0 547.0 331.0 Total District Link Roads Consultants (A+B+C) 578.0 812.0 234.0
Appendix 8 41
Consulting Services Person-months Vairance Appraised Actual 4. Individual Consultants for Project Start-up and Implementation Support Project management advisor (international) 6.0 0 (6.00) Microfinance specialist (international) 6.0 0 (6.00) NGO advisor to project management (domestic) 6.0 0 (6.00) Gender and development specialist (domestic) 4.0 3.00 (1.00) Education specialist (domestic) 4.0 0 (4.00) Health specialist (domestic) 4.0 0 (4.00) Community forestry specialist (domestic) 2.0 2.00 0 Livestock specialist 0 2.00 2.00 Subtotal Individual Consultants 32.0 7.00 (25.00)
Total International person-months 21.0 4.80 (16.20) Domestic person-months 735.5 863.58 128.08 Survey-months 9.0 112.27 103.27 Total Consultancy Input 756.5 868.38 111.88
( ) = negative, M&E = monitoring and evaluation, NGO = non-government organization
42 Appendix 9
ECONOMIC AND FINANCIAL ANALYSES
A. Introduction
1. This economic reevaluation analysis occurred at the close of the project to estimate the anticipated economic and financial returns based on actual costs and benefits, and to compare those with the returns estimated at the appraisal stage. The reevaluation generally follows the methodology adopted at the appraisal.
B. Methodology and Approach
2. Due to the security situation, this economic and financial analysis was based on desk research and secondary data reported by the project staff. Two feeder track roads, four district council link roads, three microhydel, and four water supply subprojects were selected for analysis. Aggregate project data were used for assessing the impact of agriculture, livestock, and micro-irrigation.
3. Subprojects were assessed over a 20-year evaluation period, except for agriculture and micro-irrigation where full agricultural development was assumed by the 10th year. A discount factor of 12.5% and a standard conversion factor of 0.9 were used. The evaluation took into account incremental operation and maintenance costs where applicable.
4. Table A9 presents calculations of the economic internal rate of return (EIRR) for agriculture, district council link roads, feeder track roads, livestock, microhydel, and water supply subprojects. The EIRR for horticulture was not calculated because data were not available, and the EIRR for micro-irrigation was incalculable due to its negative cash flow.
1. Agriculture and Horticulture
5. The agriculture subcomponent had a broad approach including agricultural research, seed multiplication, and farm demonstration plots for a variety of field crops. Adaptive research trials for wheat, maize, sorghum, millet, fodder, gram, canola, lentils, and sunflowers were undertaken on 1,354 hectares (ha) of land. Equipment, material, storage infrastructure, and farmer training were also provided. To determine agriculture production impact, it was assessed that agriculture interventions under the project led to (i) an overall increase in cropped area, (ii) yield improvements, (iii) changes in the cropping pattern, and (iv) increased cropping intensities. The agriculture subcomponent’s EIRR is calculated to be 23.94% in comparison to the estimated EIRR of 27.30% at the time of appraisal.
6. In the horticulture subcomponent, 0.1-ha plots were established on a demonstration basis for off-season vegetables, 663 ha for off-season vegetables and 296 ha for high-value vegetables. Demonstration for fruit crops was established in 2,149 ziziphus, date palm, and various fruit orchards. Several hundred field training courses were also conducted for farmers, but due to nonavailability of data with regards to adoption of these demonstrations, it was not possible to evaluate their economic benefits.
2. Micro-Irrigation
7. A total of 422 small irrigation schemes and 94 pond irrigation schemes were completed under the project. To assess the economic impact of these schemes, their agriculture production impact was assessed on the same basis as in the agriculture subcomponent.
Appendix 9 43
However, higher investment costs and lower-than-anticipated benefits resulted in a negative cash flow, leading to an incomputable EIRR.
3. Livestock
8. The livestock subcomponent included distribution of 6,899 goat bucks and sheep rams for crossbreeding and artificial insemination, establishment of pilot poultry farms and vaccination programs, and training of a number of community organization members in livestock extension. For analysis, only incremental benefits of improved varieties of goats and sheep were considered. Benefits include an increase in milk yield and surviving offspring. The overall livestock subcomponent has an EIRR of 8.73%.
4. Village Feeder Track and District Council Link Roads
9. A total of 650 kilometers of village feeder track roads and 127 kilometers of district council link roads were improved under the project. The goal was to improve the movement of people as well as agricultural inputs and outputs, and to enhance access to social services such as health care and education facilities. The same benefits that were included in the economic analysis of the road subprojects at appraisal were included in this analysis. These included savings in vehicle operating costs and personal travel time. Another benefit was the increase in land values, but this was excluded because of the difficulty of accurately depicting increases in land value that can be attributed to the subprojects. Savings in vehicle operating costs resulting from road improvements took into account the effect of higher travel speeds and reduced road roughness as derived by the Ministry of Communications and Information Technology. Savings in personal travel time were based on trips for work purposes only. Incremental operation and maintenance costs were estimated at 0.4% of the capital cost of subprojects, plus an allowance of 20.0% of the capital cost every 7 years for resurfacing.
10. Combined economic evaluation prepared for both the feeder track and district council link roads subprojects at appraisal resulted in an EIRR of 24.60%. The current economic evaluation prepared for the sample projects results in an EIRR of 18.01% for the feeder track roads and 9.23% for the district council link roads. Since the traffic on the roads is not as much as earlier envisaged, the EIRR was lower than anticipated at appraisal.
5. Drinking Water Supply
11. At appraisal, the economic evaluation for water supply projects resulted in an EIRR of 22.2%. The purpose of these subprojects was to reduce time involved in fetching water and to improve health. For this analysis, the only benefit incorporated in the economic analysis was the value of time savings in water collection, especially that of women. As such, the average time savings for each scheme has been valued in terms of the rural market wage rate of women for agriculture or cottage industry. Based on these benefits, the EIRR is calculated to be 11.6%. The reason for this lower EIRR is the reduced time savings and number of connections than were envisaged at appraisal.
C. Overall Project Returns and Sensitivity Analysis
12. The overall project EIRR is 14.37% compared to the 18.80% estimated at appraisal. The difference is largely due to low return on feeder track and district council link roads, micro- irrigation, microhydel, and water supply subprojects. Sensitivity analyses were also performed in regard to various risk scenarios including (i) increase in cost by 10%, (ii) decrease in benefits by
44 Appendix 9
10%, and (iii) simultaneous increase in cost by 10% and decrease in benefits by 10%. The sensitivity analysis is presented in Table.A9.1. In all three scenarios, the EIRR is reduced by 3%–5%.
D. Financial Assessment
13. No financial evaluation was conducted because this was only applicable to the microenterprise subcomponent, which was never implemented.
Table A9.1: Project Economic Returns
Feeder Roads District Roads Livestock MicroHydel Water Supply Agriculture Final Net Final Net Final Net Final Net Final Net Full Project Final Year Net Benefits Benefits Benefits Benefits Benefits Benefits Net Benefit 2005 0 0 0 (28,620,000) 0 0 (28,620,000.00) 2006 (114,588,000) 0 0 (38,826,067) 0 0 (140,682,067.20) 2007 9,536,375 0 0 (12,086,825) 0 (2,029,275) (5,213,424.90) 2008 25,733,290 0 0 2,367,842 (2,574,000) 388,787 23,741,264.73 2009 19,402,011 (2,430,000) (146,520,000) 16,111,885 (454,560) 361,849 (59,663,981.31) 2010 89,007,693 392,422 13,522,086 14,890,413 598,556 337,102 103,381,857.86 2011 39,511,356 406,505 14,016,500 13,769,394 530,234 314,048 58,515,348.12 2012 36,763,028 420,955 14,520,565 12,740,104 469,640 292,574 55,307,281.35 2013 34,204,137 435,793 15,035,158 11,794,600 415,905 272,569 52,364,183.53 2014 27,165,418 451,042 15,561,131 10,925,651 368,259 253,935 45,528,289.16 2015 41,869,958 466,721 16,099,313 10,126,674 326,014 236,575 58,102,402.41 2016 0 269,762 3,801,817 9,391,673 288,564 220,404 12,310,353.53 2017 0 499,462 17,215,548 8,715,184 255,368 142,849 20,066,798.68 2018 0 516,567 17,795,191 8,092,230 146,680 191,306 19,778,344.12 2019 0 534,189 18,390,230 7,518,277 170,555 178,233 19,593,311.16 2020 0 552,353 19,001,443 6,989,189 176,768 166,054 19,451,880.85 2021 0 571,079 19,629,606 6,501,197 156,299 154,709 19,344,399.01 2022 0 590,392 20,275,497 6,050,864 138,167 144,139 19,288,262.69 2023 0 516,880 15,306,224 5,635,051 122,108 134,293 15,705,205.68 2024 0 630,868 21,623,588 5,250,900 107,886 125,120 19,318,878.76 2025 0 652,079 22,327,364 4,895,796 95,294 116,574 19,400,785.59 2026 0 673,972 23,052,026 0 84,147 108,613 14,956,940.62 2027 0 696,572 23,798,385 0 74,280 101,196 15,424,208.67 2028 0 719,905 24,567,268 0 65,549 0 15,832,694.86 2029 0 743,998 25,359,511 0 14,808 0 16,306,692.19 EIRR (%) 23.94 18.01 9.23 8.73 6.38 11.60 14.37 Sensitivity Analysis 10% Cost Increase (%): 20.20 16.27 7.97 6.81 4.33 9.20 11.79 10% Benefit Decrease (%): 19.82 16.09 7.85 6.61 4.12 8.95 11.53 Both (%): 16.39 14.47 6.65 4.87 2.21 6.72 9.23
() = negative, EIRR = economic internal rate of return. 9 Appendix Source{s}: Asian Development Bank estimates
45
GENDER AND DEVELOPMENT PROVISIONS AND ACHIEVEMENT
Overall For Women Activities and % Achievement for Women and 46 Activity Achievements through WCOs Activities through WCOs I. VILLAGE-LEVEL DEVELOPMENT
A. Improving Women's Status 10 Appendix 1. Establishment of gender and development forum (no. of meetings) 450 450 100 2. Capacity building of WCOs i. Training of LHV and FMTs in public health schools (no. of students) 240 240 100 ii. Training of TBAs in primary health care (no. of courses) 54 54 100%
iii. Refresher for TBAs (no. of courses) 53 53 100% iv. Health-awareness campaigns and networking (no. of activities) 3,250 3,250 100% 3. Health outreach program i. Appointment of doctors in Kohistan (no. of years) 1.4 1.4 100% ii. Medical camps (no. of activities) 33 30 91% 4. Improving village-based girls' education i. Girls' education campaigns (no. of activities) 3,250 3,250 100% ii. Establishment of nonformal schools (no.) 110 110 100% iii. Training women as primary school teachers (no.) 231 231 100% iv. Gender-awareness training for teachers (no. of courses) 10 10 100%
B. Community Mobilization 1. Establishment of NGO offices (no.) 36 50% 2. Establishment of WVOs and MVOs i. Village development plans prepared (no.) 180 ii. Establishment of women's community organizations (no.) 1,803 1,803 100% iii. Establishment of men's community organizations (no.) 3,440 0% iv. Establishment of women's village organizations (no.) 583 583 100% v. Establishment of men's village organizations (no.) 1,162 0% vi. Village organizations formed (no.) 1,745 583 33% vii. Registration of citizen community boards (no.) 62 20 32% 3. Training of community organizations (no.) i. Women's advanced activist training (no.) 380 380 100% ii. Men's advanced activist training (no.) 540 iii. Women's activist training (no.) 980 980 100% iv. Men's activist training (no.) 2,000 v. Gender mainstreaming (no.) 275 275 100% vi. Village development planning (no.) 180 238 132% vii. Community organization activists trained (no. of courses) 4,355 1,360 31% viii. Women's village officer bearer training (no. of courses) 174 174 100% ix. Men's village officer bearer training (no. of courses) 337 0% x. Community organization managers' conference (no. of meetings) 780 452 58% xi. Skills training program for community organizations (no. of trainees) 588 280 48%
Overall For Women Activities and % Achievement for Women and Activity Achievements through WCOs Activities through WCOs
II. STRENGTHENING OF AGRICULTURE LIVELIHOODS A. Agriculture Extension 1. Establishment of seed farm, Sarai Naurang (no.) 1 0 0% 2. Establishment of women's staff offices (no.) 10 10 100% 3. Construction of office and seed store, Orakzai (no.) 1 0% 4. Appointment of technical, and incremental project staff (no.) 11 11 100% 5. Demonstration plots (ha) 4,118 650 16% 6. Grain storage and compost making (unit) 973 400 41% 7. Community training (no. of demonstrations or field days) 546 125 23% 8. Training of extension workers (no. courses) 46 0 0%
B. Agriculture Research 1. Establishment of seed store, Dhodial (no. of units) 1 0 0% 2. Construction of threshing floor, Dhodial (no. of units) 0 3. Construction of greenhouse, Dhodial (no. of units) 1 0% 4. Construction of seed store, Kohat (no. of units) 1 0% 5. Construction of seed shed, Sarai Norang, Bannu (no. of units) 1 0% 6. Construction of onion bulb storage, Dhodial (no. of units) 1 0% 7. Adaptive research trails (ha) 1,354 300 22% 8. Community training (no. of field-days) 501 170 34% 9. Staff training, seminars, date palm solar drying (no.) 291 90 31%
C. Horticulture 1. Establishment of Hot Bin at Buffa fruit nursery (units) 0 0 2. Vegetable demonstration plots (ha) 959 200 21% 3. Fruit crop development (no. of orchards) 2,149 500 23% 4. Establishment of fruit plant nursery, Kohistan (no.) 1 0 0% 5. Training of horticulture extension workers (no. of courses) 53 0 0% 6. Vegetable production field days (no.) 221 50 23% 7. Training of women in vegetable production (no. of courses) 51 51 100% 8. Training in nursery management (no. of courses) 38 28 74% 9. Kitchen gardening (no. of courses) 124 124 100% 10. Training in fruit and vegetable preservation (no. of courses) 220 208 95%
10 Appendix D. Soil and Water Conservation 1. Civil works (no. of schemes) 2. Protection spurs (no. of schemes) 654 108 17% 3. Protection bunds (no. of schemes) 4. Protection bunds (no. of schemes) 882 130 15% 5. Check dams (no. of schemes) 511 85
6. Water ponds (no. of schemes) 419 45 11% 47 7. Inlets and outlets (no. of schemes) 250 45 18%
Overall For Women Activities and % Achievement for Women and Activity Achievements through WCOs Activities through WCOs
Total soil and water conservation schemes 2,716 413 15% 48 E. Livestock Production and Extension 1. Establishment of offices for female technical staff (no.) 11 11 100%
2. Breed improvement activities 10 Appendix i. Artificial insemination (no.) 197,741 15,000 8% ii. Goat bucks (no.) 5,549 690 12% iii. Sheep rams (no.) 1,350 220 16% 3. Vaccination and deworming 4,452,736 900,000 20% 4. Fodder demonstration plots 232 120 52%
5. Community training i. Training of village livestock extension workers (no.) 3,600 40 1.1% ii. Refresher training of livestock extension workers (no. of courses) 121 20 17% iii. Training of veterinary officers (no. of courses) 2 0 0% iv. Staff training in artificial insemination (no. of courses) 4 0 0% v. Training of female technical staff (no. of courses) 1 1 100% vi. Training of women in commercial poultry farming (no. of courses) 55 55 100% vii. Training of women in domestic poultry farming (no.) 186 186 100% 6. Pilot poultry farms (no.) 48 42 88% 7. Field days (no.) 451 40 9% 8. Cattle shows (no.) 11 0% 9. Appointment of incremental staff (no.) 22 22 100% 10. Pastoralist support study (no.) 1
F. Forestry Extension 1. Establishment of women's staff offices (no. of units) 6 6 100% 2. Training i. Participatory methods (no. of courses) 8 2 25% ii. Village land-use planning (no. of courses) 8 0 0% iii. Gender planning and monitoring training (no. of courses) 13 7 54% iv. Technical (no. of courses) 8 2 25% v. Bee-keeping (no. of courses) 24 3 13% 3. Nursery demonstration and development (ha) 1,425 220 15% 4. Afforestation i. Communal and private afforestation, north (ha) 7,661 810 11% ii. Communal and private afforestation, south (ha) 6,870 410 6% Total 14,531 1,220 8% iii. Framer plantation (ha) 16,032 3,000 19% iv. Mazri, sarkanda, an kana plantation (ha) 39,216 810 2% v. Appointment of female range officers (no.) 2 2 100% vi. Appointment of male range officers (no.) 1 0 0%
Overall For Women Activities and % Achievement for Women and Activity Achievements through WCOs Activities through WCOs
III. RURAL FINANCIAL SERVICES A. Select PFIs 0 0 1. Establish intermediation process (no.) 0 0 B. Training of credit officers (no. of trainees) 0 0 C. Training of VOs, WCOs, and/or MCOs (no. of trainees) 0 0 0 D. Saving and credit mobilization 0 0 1. Credit disbursement (no. of loans) 0 0 0
IV. PARTICIPATORY SMALL-SCALE INFRASTRUCTURE A. Micro-irrigation (no. of schemes) 516 90 17% B. Water supply (no. of schemes) 2,535 150 6% C. High-specification blacktop roads (km) 127.32 0 0% D. Feeder, low-specification blacktop roads (km) 650.57 50 8% E. Microhydel (no. of schemes) 31 0% F. Demonstration latrines (no. of schemes) 226 40 18% G. Training for O&M (no. of schemes) 858 97 11% H. Road designing and supervision (km) 246.16 0% I. Road designing and supervision (months) 793.13
V. INSTITUTIONAL SUPPORT A. Establishment of project offices 1. Vehicles (no.) 76 0 0% 2. Motorcycles (no.) 88 0% 3. Establishment of project offices (no.) 12 0 0% 4. Recruitment of incremental project staff (no.) 230 24 10%
B. Sector technical support 1. Establishment and construction of working women's hostels (no.) 11 11 100%
C. NGO capacity building 1. NGO capacity building (months) 0 0 0% 2. Recruitment of staff (person-years) 0 0 0%
D. Consulting services 0% 10 Appendix 1. Benefit monitoring and evaluation (months) 162 20 12% 2. Consulting services (months) 7 3 43%
E. Staff training (courses) 58 7 12% FMT=financial management training, LHV=lady health visitor, NGO, non government organization, No=number, O&M=operation and maintenance, TBA=traditional birth attendants, MVO=male village organization, VO=village organization, WCO = women community organization
49 Source: Asian Development Bank –estimates, and borrower’s project completion report.
50 Appendix 11
PROJECT PERFORMANCE RATING
Table A11.1: Project Performance Assessment
Rating Weight Weighted Criteria Assessment (0–3) (%) Rating
Relevance Relevant 2 20 0.4 Effectiveness Effective 2 30 0.6 Efficiency Efficient 2 30 0.6 Sustainability Likely 2 20 0.4
Overall Rating Successful 100 2
Source: Asian Development Bank, Project Completion Review Estimation.
Table A11.2: Rating System
Rating Value Relevance Effectiveness Efficiency Sustainability 3 Highly relevant Highly effective Highly efficient Most Likely 2 Relevant Effective Efficient Likely 1 Partly relevant Less effective Less efficient Less likely 0 Irrelevant Ineffective Inefficient Unlikely
Greater than2.7 = Highly successful From 1.6 to 2.7 = Successful From 0.8 to 1.5 = Partly successful Less than 0.8 = Unsuccessful
Source: Asian Development Bank.