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Pakistan: Dera Ghazi Khan Rural Development Project

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Pakistan: Dera Ghazi Khan Rural Development Project Completion Report Project Number: 27168 Loan Number: 1531 October 2007 Pakistan: Dera Ghazi Khan Rural Development Project CURRENCY EQUIVALENTS Currency Unit – Pakistani rupee/s (PRe/PRs) At Appraisal At Project Completion August 1997 30 June 2007 PRe1.00 = $0.0246 $0.1639 $1.00 = PRs40.6213 PRs61 ABBREVIATIONS BME – benefit monitoring and evaluation C&WD – Communication and Works Department CD – community development CO – community organization CSP – country strategy and program DG Khan – Dera Ghazi Khan DIP – Department of Irrigation and Power DOFWM – Directorate of On-Farm Water Management DTW – deep turbine tube well EA – executing agency EIRR – economic internal rate of return FS – financial services ha – hectare IA – implementing agency km – kilometer LGO – local government ordinance NGO – nongovernment organization NRSP – National Rural Support Program O&M – operation and maintenance PCR – project completion review PERI – Punjab Economic Research Institute PMU – project management unit SCO – savings and credit organization SDR – special drawing rights WC – watercourse WUA – water users association NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY1999–2000 ends on 30 June 2000. (ii) In this report, “$” refers to US dollars. Vice President Liqun Jin, Operations 1 Director General J. Miranda, Central and West Asia Department (CWRD) Director P. L. Fedon, Country Director, Pakistan Resident Mission (PRM), CWRD Team leader M. S. Shafi, Project Implementation Officer, PRM, CWRD Team member N. ul Islam, Associate Project Analyst, PRM, CWRD CONTENTS Page BASIC DATA ii MAP vii 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 5 D. Disbursements 5 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 6 H. Consultant Recruitment and Procurement 7 I Performance of Consultants, Contractors, and Suppliers 8 J. Performance of the Borrower and the Executing Agency 8 K. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness in Achieving Outcome 10 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 11 E. Impact 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 14 C. Recommendations 15 APPENDIXES 1. Planned and Achieved Outputs of the Project 2. Categories of Community Development Subproject 3. Completion Dates of Rural Roads under the Dera Ghazi Khan Rural Development Project 4. Achievement under the Financial Services Component 5. Appraised and Completed Costs of the Project 6. Contract Awards and Disbursements 7. Implementation Schedule 8. Status of Compliance with Loan Covenants 9. Economic and Financial Analyses 10. Project Framework BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Number 1531 3. Project Title Dera Ghazi Khan Rural Development 4. Borrower Islamic Republic of Pakistan 5. Executing Agency Punjab Planning and Development Department 6. Amount of Loan SDR26.068 million 7. Project Completion Report PCR:PAK 998 Number B. Loan Data 1. Appraisal – Date Started 27 May 1997 – Date Completed 4 June 1997 2. Loan Negotiations – Date Started 28 July 1997 – Date Completed 30 July 1997 3. Date of Board Approval 4 September 1997 4. Date of Loan Agreement 16 October 1997 5. Date of Loan Effectiveness – In Loan Agreement 14 January 1998 – Actual 12 January 1998 – Number of Extensions None 6. Closing Date – In Loan Agreement 31 December 2004 – Actual 31 May 2007 – Number of Extensions 2 7. Terms of Loan – Interest Rate 1.0% – Maturity 35 years – Grace Period 10 years 8. Terms of Relending (if any) – Interest Rate 1.0% – Maturity 35 years – Grace Period 10 years – Second-Step Borrower National Rural Support Program, $2.7 million at 10.0%, repayable 1 year after project completion 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 9 October 1998 31 May 2007 104 months iii Effective Date Original Closing Date Time Interval 12 January 1998 31 December 2004 83 months b. Amount (SDR million) Category or Original Net Amount Amount Undisbursed Subloan No. Allocation Available Disbursed Balance 01A 1.593 1.593 0.777 0.816 01B 6.444 6.444 3.795 2.649 01C 9.703 9.703 11.436 1.733 02 2.100 2.100 2.027 0.073 03A 0.145 0.145 0.282 (0.137) 03B 1.086 1.086 0.779 0.307 03C 1.448 1.448 1.561 (0.113) 03D 0.652 0.652 0.424 0.232 04 1.231 1.231 0.305 0.926 05 1.666 1.666 0.000 1.666 Total 26.068 26.068 21.387 4.681 10. Local Costs (Financed) - Amount ($ million) 20.5 - Percentage of Local Costs 53.7 - Percentage of Total Cost 42.1 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 12.9 10.5 Local Currency Cost 39.3 38.1 Total 52.2 48.6 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower-Financed 7.1 6.3 ADB-Financed 34.1 30.4 Beneficiary-Financed 9.1 11.5 Total 50.3 48.2 IDC Costs Borrower-Financed 0.0 0.0 ADB-Financed 1.9 0.4 Other External Financing 0.0 0.0 Total 52.2 48.6 ADB = Asian Development Bank, IDC = interest during construction. iv 3. Cost Breakdown, by Project Component ($ million) Component Appraisal Estimate Actual Irrigation Development 5.0 3.7 Community Development 17.2 13.7 Rural Roads 14.3 23.4 Rural Finance 3.1 2.8 Institutional Support 4.8 4.6 Physical Contingencies 1.7 0.0 Price Contingencies 4.2 0.0 Interest during Construction 1.9 0.4 Total 52.2 48.6 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultantsa Contract with NGO 8 February 1999 Contract with Design Consultant 1 January 2000 Contract with Construction Supervision Consultant 2 October 2003 Contract with Baseline Survey Consultants 21 February 2000 Contract with Impact Evaluation Consultants 21 May 2005 Civil Works Contract Date of Award (first contract) 5 April 2003 Completion of Work (last contract) 30 November 2006 Equipment and Supplies Procurement Dates First Procurement 10 October 1998 Last Procurement 28 March 2006 Other Milestones Formation of First Men’s SCO 1 February 1999 Formation of First Men’s CO 12 February 1999 Formation of First Men’s CTWG/WUA 23 February 1999 Formation of First Women’s SCO 7 February 1999 Formation of First Women’s CO 7 February 1999 CO = community organization, CTWG = community tubewell group, NGO = non-governmental organization, SCO = savings and credit organization, WUA = water users organization 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress 12 Jan 1998–31 Dec 2005 S S 1 Jan 2006–28 Feb 2006 S U 1 Mar 2006–31 Mar 2007 S S S = satisfactory, U = unsatisfactory v D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members TA fact-finding 8–21 Mar 1996 2 34 a, m TA inception 7–11 Oct 1996 1 5 a TA review 15–27 Nov 1996 1 13 a Loan fact-finding 27 Feb–14 Mar 1996 6 96 a, c, d, e, f, m Loan post-fact-finding 25 Apr–1 May 1997 2 14 a, c Loan appraisal 27 May–4 Jun 1997 2 18 a, c Loan inception 5–11 Jan 1999 3 21 g, e, l Special loan administration 19 Apr 2000 2 2 h, i Loan review 1 27–29 Nov 2000 2 6 i, j Loan review 2 21–25 Jan 2002 2 10 b, l Loan review 3 25–29 Nov 2002 2 10 b, l Loan review 4 17–24 Feb 2004 2 16 k, l Loan midterm review 25 Aug–8 Sep 2004 2 30 k, l Loan review 5 7–16 Dec 2004 2 20 k, l Loan review 6 26–31 Dec 2005 1 6 k Loan review 7 12–17 Jun 2006 1 6 k Project completion review 12 Dec 2006–10 Feb 2007 3 67 k, l, m a = senior project engineer, b = senior project implementation officer, c = program officer, d = project specialist, e = project economist, f = social development specialist, g = rural development specialist, h = resident representative, i = senior program officer, j = senior control officer, k = project implementation officer, l = project analyst, m = staff consultant., TA = technical assistance vi vii 1 I. PROJECT DESCRIPTION 1. The Dera Ghazi (DG) Khan Rural Development Project (the Project) in Pakistan is in the DG Khan and Rajanpur districts of the central province of Punjab, along its southern fringe. At appraisal, rural poverty in the province was highest in the districts of DG Khan (with 24% of the rural poor in the province) and Bahawalpur (36%). The Project was designed particularly for the poorest rural populations in (i) the rain-fed plains, (ii) rain-fed hills, and (iii) canal-irrigated areas of these two districts. A survey done during appraisal revealed a rural poverty incidence of about 85% in the rain-fed plains and hills, and about 70% in the canal-irrigated areas. 2. The Project was intended to increase rural incomes and employment, and improve the quality of life of the population. Given the area’s potentials, these objectives were to be achieved by (i) improving irrigation and road infrastructure, (ii) developing communities, (iii) providing financial services, and (iv) providing institutional support through organizational and skills training for beneficiaries in village communities. The Project had the following components and scope of work: (i) Irrigation improvement:,(a) rehabilitating temporary diversions and lining works in perennial hill torrent networks, (b) developing 100 water users associations (WUAs) and improving 100 watercourses (WCs) in hill torrents, and (c) installing 100 tube wells and improving the related WCs in freshwater zones.
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