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Pakistan: Southern Punjab Basic Urban Services Project

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Pakistan: Southern Punjab Basic Urban Services Project Completion Report Project Number: 23213 Loan Numbers: 2060(SF)/2061 March 2012 Pakistan: Southern Punjab Basic Urban Services Project CURRENCY EQUIVALENTS Currency Unit – Pakistan rupee/s (PRe/PRs) At Appraisal At Project Completion 14 October 2001 15 November 2011 PRs1.00 = $0.01210 $0.01166 $1.00 = PRs62.6255 PRs85.8001 ABBREVIATIONS ADB – Asian Development Bank EIRR – economic internal rate of return FIRR – financial internal rate of return ICB – international competitive bidding LGRDD – Local Government and Rural Development Department NGO – nongovernment organization PCO – project coordination office SDR – special drawing rights TMA – tehsil municipal administration UIPT – urban immovable property tax NOTES (i) The fiscal year (FY) of the government and its agencies ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2010 ends on 30 June 2010. (ii) In this report, “$” refers to US dollars. Vice-President X. Zhao, Operations 1 Director General J. Miranda, Central and West Asia Department (CWRD) Director W. Liepach, Pakistan Resident Mission, CWRD Team leader M. Shafi, Senior Project Officer, Pakistan Resident Mission, CWRD Team member N. Islam, Project Analyst, Pakistan Resident Mission, CWRD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA ii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 3 C. Project Costs 7 D. Disbursements 7 E. Project Schedule 7 F. Implementation Arrangements 8 G. Conditions and Covenants 8 H. Consultant Recruitment and Procurement 9 I. Performance of Consultants, Contractors, and Suppliers 9 J. Performance of the Borrower and the Executing Agency 10 K. Performance of the Asian Development Bank 10 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness in Achieving Outcome 11 C. Efficiency in Achieving Outcome and Outputs 12 D. Preliminary Assessment of Sustainability 12 E. Impact 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 14 C. Recommendations 15 APPENDIXES 1. Project Framework 16 2. Infrastructure Subprojects 23 3. Status of Compliance with Loan Covenants 29 4. Detailed Breakdown of Consultant Input 47 5. Project Cost 48 6. Yearly Contract Award and Disbursement Performance 49 7. Project Implementation Schedule 50 8. Project Secondary Data 51 9. Financial Performance of Tehsil Municipal Administrations 57 10. Economic Analysis 62 11. Financial Analysis 67 12. Status of Provincial Policy Actions 70 BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Numbers 2060-PAK(SF), 2061-PAK 3. Project Title Southern Punjab Basic Urban Services Project 4. Borrower Islamic Republic of Pakistan 5. Executing Agency Local Government and Rural Development Department, Government of Punjab 6. Amount of Loan (2060[SF]) SDR31,429,000 ($45 million equivalent) Amount of Loan (2061) ¥4,896,225,000 ($45 million equivalent) 7. Project Completion Report Number PCR: PAK 1319 B. Loan Data 1. Appraisal – Date Started Not applicable. The appraisal was waived at – Date Completed management review meeting on 21 October 2003. 2. Loan Negotiations – Date Started 13 November 2003 – Date Completed 15 November 2003 3. Date of Board Approval 18 December 2003 4. Date of Loan Agreement 23 January 2004 5. Date of Loan Effectiveness – In Loan Agreement 22 April 2004 – Actual 25 August 2004 – Number of Extensions 2 6. Closing Date – In Loan Agreement 31 July 2009 – Actual 31 December 2009 – Number of Extensions 0 7. Terms of Loan (2060[SF]) – Interest Rate 1% per annum during grace period, 1.5% thereafter – Maturity (number of years) 32 – Grace Period (number of years) 8 Terms of Loan (2061) – Interest Rate London interbank offered rate-based – Commitment Charge 0.75% per annum – Front-End Fee 0.5% – Maturity (number of years) 25 – Grace Period (number of years) 5 8. Terms of Relending (2060[SF]) – Interest Rate 1% per annum during grace period, 1.5% thereafter – Maturity (number of years) 32 – Grace Period (number of years) 8 iii – Second-Step Borrower Punjab government Terms of Relending (2061) Ordinary Capital Resources – Interest Rate London interbank offered rate-based – Commitment Charge 0.75% per annum – Front-End Fee 0.5% – Maturity (number of years) 25 – Grace Period (number of years) 5 – Second-Step Borrower Punjab government 9. Disbursements a. Dates (2060[SF]) Initial Disbursement Final Time Interval Disbursement 21 October 2004 62 months 31 December 2009 Effective Date Original Closing Time Interval Date 25 August 2004 60 months 31 July 2009 Dates (2061) Initial Disbursement Final Time Interval Disbursement 25 August 2004 64 months 31 December 2009 Effective Date Original Closing Time Interval Date 25 August 2004 60 months 31 July 2009 b. Amount (SDR‘000) for 2060(SF) Amou nt Net Undis- Category or Original Last Revised Cance Amount Amount bursed Subloan Allocation Allocation led Available Disbursed Balance Civil Works 19,414 9,862 9,552 9,862 9,862 0 Equipment and 8,172 4,512 3,660 4,512 4,512 0 Material Social and 203 5 198 5 5 0 Community Mobilization Consultants 1,677 796 881 796 796 0 Incremental and 1,028 429 599 429 429 0 Administrative Costs Interest during 935 267 668 267 267 0 Construction Total 31,429 15,871 15,55815,871 15,871 0 iv Amount (¥ ‘000) for 2061 Last Net Undis- Category or Original Revised Amount Amount Amount bursed Subloan Allocation Allocation Canceled Available Disbursed Balance Civil Works 3,024,453 1,629,896 1,394,556 1,629,896 1,629,896 0 Equipment and 1,273,127 757,664 515,462 757,664 757,664 0 Material Social and 31,662 783 30,878 783 783 0 Community Mobilization Consultants 261,241 138,346 122,894 138,346 138,346 0 Incremental and 160,161 71,246 88,914 71,246 71,246 0 Administrative Costs Front-End Fee 121,100 24,481 96,618 24,481 24,481 0 Interest and 24,481 121,100 (96,619) 121,100 121,100 0 Commitment Charges Total 4,896,225 2,743,518 2,152,706 2,743,518 2,743,518 0 () = negative. 10. Local Costs (Financed) - Amount ($ million) 34.9 - Percent of Local Costs 36.0 - Percent of Total Cost 30.9 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 18.2 15.0 Local Currency Cost 110.4 98.1 Total 128.6 113.1 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 28.3 54.8 ADB Financed 87.3 48.1 Other External Financing 10.3 8.5 Total 125.9 111.4 IDC Costs Borrower Financed ADB Financed 2.7 1.7 Other External Financing Total 128.6 113.1 ADB = Asian Development Bank, IDC = interest during construction. v 3. Cost Breakdown by Project Component ($ million) Appraisal Component Estimate Actual A. Development of Infrastructure for Basic Urban Services 1. Civil Works, Equipment, and Materials a. Water supply 18.4 20.6 b. Sewerage system and wastewater treatment 61.2 61.3 c. Low-income area road links 1.8 2.0 d. Solid waste management 3.9 7.7 e. Slaughterhouses 0.5 0.9 f. Incremental land development for the poor 0.2 0.5 2. Community Mobilization 0.6 0.2 Subtotal (A) 86.6 93.2 B. Institutional Development 1. Municipal Management System Development for 1.3 0.7 Tehsil Municipal Administrations 2. Project Implementation Assistance 3.5 3.8 3. Equipment and Vehicles 0.7 0.5 4. Incremental Administration Support 2.3 2.2 Subtotal (B) 7.7 7.2 C. Land Acquisition and Compensation 16.0 10.7 Contingencies 1. Physical Contingencies 5.4 0.3 2. Price Contingencies 10.2 0.0 Subtotal (Contingencies) 15.6 0.3 Interest during Construction a 2.7 1.7 Total Project Cost 128.6 113.1 a Includes front-end fee and commitment charges on Loan No. 2061. 4. Project Schedule Appraisal Item Estimate Actual Date of Contract with Consultants Package 1, Project Implementation Support 12 Feb 2005 Package 2, Municipal Management System Development 7 Mar 2005 Individual Consultants 13 Sep 2006b Completion of Engineering Designs June 2004 Civil Works Contract Date of Award Jan 2006–Oct Feb 2006–May 2007 2009 Completion of Work Dec 2008 31 Dec 2011 Equipment and Supplies Dates First Procurement 1 Oct 2004 Last Procurement 24 Apr 2009 Completion of Equipment Installation 30 Sep 2009 Start of Operations Completion of Tests and Commissioning Beginning of Start-Up Other Milestones b Individual consultants were hired on various dates, the first on 15 October 2004 and the last on 13 September 2006. vi 5. Project Performance Report Ratings Ratings Implementation Period Development Objectives Implementation Progress From 30 December 2003 to 30 June 2004 Satisfactory Satisfactory From 1 July 2004 to 31 August 2004 Satisfactory Unsatisfactory From 1 September 2004 to 31 March 2005 Satisfactory Satisfactory From 1 April 2005 to 31 July 2005 Partly satisfactory Satisfactory From 1 August 2005 to 31 October 2007 Satisfactory Satisfactory From 1 November 2007 to 31 January 2009 Highly satisfactory Satisfactory From 1 February 2009 to 28 February 2009 Partly satisfactory Partly satisfactory From 1 March 2009 to 30 November 2009 Unsatisfactory Unsatisfactory From 1 December 2009 to 31 December Partly satisfactory Satisfactory 2009 D. Data on Asian Development Bank Missions No. of No. of Specialization of Name of Mission Date Persons Person-Days Members Fact-finding 8–24 July 2003 4 36 a, b, c Inception 7–12
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