CAPACITY BUILDING FOR THE FATA DEVELOPMENT PROGRAM

FIRST QUARTERLY REPORT: JANUARY-MARCH 2008

APRIL 2008

This publication was produced for review by the United States Agency for International Development. It was prepared by DAI.

CAPACITY BUILDING FOR THE FATA DEVELOPMENT PROGRAM

CAPACITY BUILDING PROJECT FATA SECRETARIAT AND FATA DEVELOPMENT AUTHORITY

Quarterly Report: January-March 2008

The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CBP Quarterly Report January-March 2008

I. Inception

Mobilization of the team for the new FATA Capacity Building Project was rapid. Contract signature on December 20, 2007, with an effective date of January 1 st , 2008 was followed by arrival in by a team from the DAI home office on January 15 th . Brian Brewer led the team, supported by Carmen Lane (home office Project Coordinator), Christopher Stolz (Start-up Specialist) and Jaqui Dupre (TAMIS record keeping). DAI was able to begin rapid mobilization based on the experience and assistance of the -based Parliamentary Legislative Support Project. The team initiated contacts with USAID on arrival, and with the support of sub-contractor, Associates in Development (AiD) proceeded to begin initial consultations with the Mission, as well as necessary logistical, banking and personnel arrangements.

The Chief of Party, Richard L. Smith arrived on January 18 th , joining in a full week of discussions with USAID, and other US Government agencies operating in Pakistan. This was a week well spent, since many of the activities anticipated for the CBP require close coordination with contracts, health, education, security and military programs now in place. Team members were also able to hold discussions with development managers at the Japanese and Canadian Embassies. The UK High Commission introduced the DFID-supported Capacity Building Project for NWFP and FATA, which is conducting a program closely allied and coordinated with CBP. This meeting served to establish a sound working relationship between the two teams.

The new members of the CBP technical team resident in Pakistan joined with the DAI group for a two day work shop in (weekend of 25-26 January) to review the requirements of the project. The meeting served as an introduction and team building experience for newly appointed administration and technical staff. All of the new team members were engaged in a review of CBP objectives and implementation mechanisms, with the work shop serving to clarify USAID expectations, the strengths and weakness of FATA institutions, and the evolving security situation.

In the week following the work shop, USAID Deputy Director Ed Birgells and CTO Atif Masud joined team members in introductory meetings with the FATA Secretariat and FATA Development Authority. The Additional Chief Secretary for FATA, Habibullah Khan and the DAI Chief of Party had worked together in the 1980s on the USAID Northwest Frontier Area Development Project implemented by DAI and they have re-established cordial relations.

Mobilization of the remaining team members to begin work on the project has required a number of “work around” solutions, since sub-contractors had to finalize their agreements with DAI prior to signing employment agreements. Individuals then must give notice to current employers. In a number of cases, individuals nominated in the DAI proposal chose not to actually join the project, requiring a search for replacements and their approval by the USAID Contracts Officer. This can be a protracted process when all sides exercise due diligence.

The CBP management team is made up of senior, Pashto speaking Directors, with decades of experience in FATA and NWFP. Director of Institutional Development for CBP, Mr. Khalid Aziz is a former Chief Secretary of NWFP. CBP has been able to operate effectively, even while awaiting arrival of its full staff complement, because of his experience and understanding of the political environment and administrative needs. He and Operations Director Temur Aziz provide deep experience and sensitivity to the area, to provide the Project with contacts, awareness, and ability to operate effectively. The face of CBP is almost entirely local, as intended by USAID and the GOP. It operates in support of government and civil society with the intention of strengthening the decision making process, but not attempting to provide the decisions. Director of Finance and Administration, Noor Wali Khan has worked with DAI on a number of projects since 1983; his grasp of how to operate in this difficult context is unique.

The Project has been less fortunate in gaining its full staff complement. Illness claimed our first Communications Specialist, the Education Specialist, and at the end of March the Procurement and Grants Manager. CBP also had to conduct an extensive search for Specialists in Agency Strategies, M&R, Civil Society, and Economics. With the exception of the economist position, individuals for these positions had been identified by the end of March. Economics is a skill area for which the going rate in the free market is beyond the normal pay scales under which USAID projects operate, and this constrains CBP in locating strong candidates willing to work at available USAID rates.

The Project has been fortunate in locating an office in a quiet part of University Town in Peshawar. CBP took possession in early March. The location is adequate for hosting meetings for partners and donors, as well coordination with the FATA Secretariat.

Project inception paralleled a period of political activity and violence that has effectively constrained access to FATA. With the exception of FR Peshawar, and parts of Khyber, all remaining tribal areas have experienced violent attacks, road blockages and threats from a deteriorating security situation. Toward the end of the quarter, violence related to extremist forces subsided in the Waziristans, while Kurram, FR Kohat, Khyber and Bajaur experienced a major resurgence of sectarian, tribal, and extremist-led fighting.

Under the circumstances, project preparatory activities continued through FATA Secretariat, and FATA Development Authority discussions, and contact with government administrators and other stakeholders located in Peshawar. CBP senior management remains very aware of the political environment, and prepared to respond flexibly to new initiatives of the recently elected provincial government.

II. Work Plan

During February, DAI circulated a draft work plan to both the FATA Secretariat and the FATA Development Authority. This served to familiarize senior staff members of the organizations with the objectives of the Project. At the Secretariat, a result was a formal meeting of leaders of each directorate and the Secretary of Finance, chaired by the Secretary Law and Order and later by the ACS to discuss clarifications, requests for specific assistance, and authorizations for CBP team members to hold direct discussions with staff at all levels of the institution. This discussion was useful input for the revised work plan submitted to USAID on Februray 29 th .

The draft work plan circulated to FDA elicited a request that in future FDA be treated separately from the Secretariat. CBP operates on the basis of annual work plans, thus the 2009 plan that will go to USAID will treat FDA separately.

III. Institutional Assessments

Team members conducted needs assessments with the education, health and livelihoods directorates of FS, as well as with the Secretaries of Finance, and Administration. These formal assessments, for which CBP is indebted to Secretaries, Directors and Deputy Directors, resulted in detailed requirements for both the Peshawar offices, and those they support in Agencies and FRs. The “stock” of personnel with some level of capacity building requirement stands at about three thousand in all grades for which CBP input might be effective. Project sector specialists took these raw lists of requirements and collated them to extract training needs and formulate programs for investing in training courses. In a parallel activity, they visited training institutions in Peshawar, Islamabad and Lahore to assess training capabilities. The first training course for 24 staff members in computer skills begins in April. The activity plan established in March anticipates other courses in financial management, and monitoring and evaluation in the next few months.

With the immediate training requirements of the Secretariat assessed and a training program initiated, CBP’s full staff complement also nears completion. This provides the Project with the ability to address communications, IT, and operational capacity building issues resulting from the needs assessments conducted in February and March. The training needs assessment and development of training courses will lead to a broader look at specific activities and plans, and material support for increasing capacity.

Since February, management teams from the DFID capacity building project and CBP have met once a month to consult and collaborate for greater effectiveness. Although both projects have similar mandates, they are mutually reinforcing. Both teams see them in that light. The DFID team is preparing detailed specifications for IT networking of the Secretariat to pass to CBP for review, procurement and installation. This assessment will take place in the second quarter of 2008.

FDA provided CBP with a detailed set of requirements for assistance on March 7 th . These cover each section of the institution. The strategic context for the proposals is not clear, since FDA is there to promote economic growth and development, while the objectives of the requested CBP assistance is not stated. CBP’s Finance Specialist, Amanullah Khan Malik, wrote a detailed review of the financial and administration aspects of FDA in March, pointing out that it contains few people with knowledge of private sector investment. FDA has insisted that CBP provide sector specialists to define and refine capacity building assistance, but has declined to contribute to the proposed terms of reference. We are reviewing how best to strengthen FDA to pursue its mandate, particularly in establishing and strengthening public and private partnerships.

IV. Institutional Reform

For CBP, flexibility is a premier requirement. The security situation, the presence of a new democratically elected government, and dissatisfaction within the civil administration at its own inability to address security and development issues has given rise to a healthy discussion of institutional options. Institutional change has been under discussion within the tribal areas, within FATA administrative bodies, and within the political leadership of NWFP. The entire system of governance of FATA is under formal and informal review, and the discussion extends outward to encompass administration of NWFP districts closely related to the Agencies and FRs. The complex discussion includes constitutional issues and the need for legislation or revision of standing orders, especially including those regarding control of the police and . The discussion amongst stakeholders extends to ways to establish and strengthen the ability of the administration to respond to lawlessness, including but not limited to its terrorist forms. The government has established Regional Coordinating Offices in Peshawar, Bannu and Kohat as strong and logical focal points for managing and monitoring the law and order situation in settled and tribal areas. CBP may play a role in making these offices effective through operational, IT and even temporary staffing support.

Within this context, CBP senior project staff has played a facilitating role, assisting all parties to define their objectives, and the steps required for change. A significant amount of this work is in informal and after hours consultations, outside of the formal work environment. We expect that CBP resources will support a series of institutional reviews related to the legal systems, administrative reforms, and structural realignments. Needless to say, this places a premium on regular and clear communication with USAID, and the Consulate.

Due to its position within the FATA institutions, CBP has been in a central position to assist in project and donor coordination. This is an activity requested by the ACS, which has led to a series of coordination meetings at the CBP office. The ACS has also requested some temporary staff assistance as well as more fundamental reviews of the functioning of the Secretariat. The Director/Projects proposed three temporary staff positions with individual nominations to follow. CBP will discuss resolution of other temporary staff constraints with the ACS in coming months.

V. Agency Strategies

The Stakeholder Workshop concept originally proposed by CBP was modified somewhat by the Secretariat, and has become a series of smaller, more focused meetings over time. Nonetheless, FS plan a formal meeting of stakeholders, including the OTI and the new Livelihoods projects to familiarize political agents and others with USAID projects.

The Sustainable Development Plan for FATA institutions is the guide for aid to FATA. A major activity of CBP is to create Agency and FR-specific strategic plans to guide economic growth, institutional change, and response to the security situation over the next five years. CBP has operated on several fronts to create a draft strategy document by May 31 st for review and comment by FATA institutions, and other projects and donors. In summary, the project has:

• Created a framework for developing the strategy, based on discussions with USAID . This includes an explicit focus on three areas: 1) The FATA economy, 2) Institutional requirements, and 3) Changing security needs. • Begun a series of Focus Group Discussions for all Agencies and FRs that include a wide range of stakeholders from the private sector, government, and tribal leadership. • Planned a series of consultative work shops and meetings on economy and infrastructure in FATA , for May. • Continued a series of wide ranging discussions with Secretariat leadership and political parties about change, change management, and the need for further information

VI. Monitoring and Reporting

Monitoring and Reporting is a prime purpose of CBP. Rapid development of this critical component of the Project slowed after the loss of our first candidate to fill the position, and the need to seek another qualified person. Nevertheless, the DAI home office and sub-contractor EI have worked closely with the Chief of Party to put together an integrated plan of action for the second quarter. This includes employment of a replacement M&R Specialist, and proposed STTA to create the required PMP based on the work plan, and assess data requirements and the architecture of data systems. We have also moved creation of the GIS forward by several months to respond to pressing monitoring and database development needs. System development for M&R will rapidly expand in May and June.

Without an M&R Specialist we have not been able to respond appropriately to Secretariat and FDA requests for help in IT, monitoring and reporting. One forward step is our plan to send the heads for monitoring and evaluation of both institutions to a two week course at the Lahore University of Management Sciences.

VII. Communications Plan and Strategy

Despite a number of efforts, our communications plan and strategy requires further work, both to establish the strategic framework and gain the consensus of all stakeholders on the actions required. That is a priority for the second quarter of the Project.

Working with the ACS and the Director/Projects, CBP identified the need to employ a Communications Director for the Secretariat. We created draft TORs and helped identify candidates for selection to the position. When that takes place, we will support the position and the Media Center at the Secretariat.

CBP also reviewed the facilities of the Allama Iqbal Open University in Islamabad, and received a proposal from them to support expansion of their broadcast capability. The size of the proposal, and the technical nature of this area requires further review and comparison with other options for providing similar services. These reviews will take place in May and June.

In March, we opened a search for a producer of videos, to provide a short introduction to FATA for Pakistani and foreign visitors unable to travel there. This was at the request of the ACS and its purpose is to provide initial briefings for visitors. CBP is seeking producers to develop concepts for a longer, informative documentary on FATA similar to others done for AKRSP.

VIII. Civilian-Military Dialogue

The first contact group workshop for serving military and civilian officers took place in Peshawar on March 19-20. The US Office of Defense Representative for Pakistan arranged the meeting, which was led by Mr. Paul Shemella and Dr. Richard Webb of the Center for Civil-Military Relations, at the Naval Post Graduate School, Monterey, California. Their presentation was a forceful review of the issues and options that confront all leaders in light of military action. CBP’s Mr. Khalid Aziz worked closely with the ACS of the FATA Secretariat to nominate six civilian officers of appropriate rank. CBP also operated behind the scene to arrange facilities for the meetings.

Lt. Gen. Masood Aslam, Commander 11 Corps, Peshawar, opened the meeting, which was also attended by Ms. Lynne Tracy, Principal Officer at the US Consulate, Peshawar. CBP’s Richard Smith and M. Ayaz Khan attended as observers, the latter filling the raporteur function with a summary report distributed to participants. Although both sides were initially reluctant to attend the meeting at all, the actual discussions were useful in beginning a dialogue that does not normally take place in Pakistan. The recent involvement of the military in government, and the marginalization of the civilian administration in FATA create a barrier to discussion breached only by this kind of meeting, which seeks common objectives and necessary action in the face of increasing civil unrest and attacks by extremists, tribal factions, and criminal gangs. A follow on meeting may take place in May.

The Civilian-Military dialogue that CBP supports addresses conflict resolution, conflict reduction, and rapid response to military action in the form of assistance to displaced people and damaged infrastructure. Project resources stand in readiness, but rely on an expanded dialogue between the two sides based on their willingness to coordinate the contribution of each. We are very much a support element to a very early – and uncomfortable – discussion between civilian administration and military officers. The absence of Frontier Corps officers as participants indicates the distance between the two sides, since the FC is the para-military arm of the civilian administration and would appear to be an obvious link in the discussion.

After this meeting, CBP began seeking ways to map civil disruption, and identify areas of population displacement and need for grant assistance. Such information, perhaps as part of a wider GIS system, will be useful to provide future Contact Group meetings with a practical focus.

IX. Civil Society

CBP has been without its Civil Society Organizations Specialist through the quarter. The general rejection of NGOs by tribal people makes support to this area one of some delicacy. Project management has nonetheless found considerable interest from members of Agencies and FRs in establishing or strengthening their own, tribal organizations, particularly in Mohmand and Khyber. This finding points to areas for expanded consultation, and perhaps provision of small grants to nascent organizations in the second quarter of the year.

A number of larger, cross-FATA NGOs in commerce, and journalism, as well as others in human rights, development of women’s programs, and economic development were in contact with the Project in March. Broad training programs and small grants for policy papers and reports are the focus for the CSO Specialist joining in April.

DAI submitted a Grants Manual to USAID in March, for approval by the CTO. Contract and Grants Manual language requires some modification to allow CBP to make grants in support of government agencies.

The Project did not provide grant assistance of any kind during the first quarter, largely due to the need to canvas and understand civil society in FATA. CBP proposed short term assistance in assessing the CSO scene in February, but the candidate, a former head of the Sarhad Rural Support Programme and the later the Swiss Development Corporation’s projects did not receive CO approval.