ASIAN DEVELOPMENT BANK PCR: PAK 23221 PROJECT COMPLETION REPORT ON THE PUNJAB RURAL WATER SUPPLY AND SANITATION (SECTOR) PROJECT Loan 1349-PAK [SF] IN THE ISLAMIC REPUBLIC OF PAKISTAN November 2003 CURRENCY EQUIVALENTS Currency Unit – Pakistan Rupee/s (PRs) At Appraisal At Project Completion 31 October 1994 31 May 2002 PRs1.00 = $0.03254 $0.01663 $1.00 = PRs30.73 PRs60.15 ABBREVIATIONS ADB – Asian Development Bank BME – benefit monitoring and evaluation CBO – community-based organization CBME – community benefit monitoring and evaluation CDU – community development unit CLW – community liaison worker DOH – Department of Health EA – executing agency EIA environmental impact assessment EIRR economic internal rate of return HRD human resources development HRM – human resource management HPEPD – Housing, Physical, and Environmental Planning Department HUDPHED – Housing, Urban Development, and Public Health Engineering Department IEE – initial environmental examination LAN – local area network LGRDD Local Government and Rural Development Department M&E – monitoring and evaluation MIS – management information system MOU memorandum of understanding NGO nongovernment organization O&M – operation and maintenance PRM – Pakistan Resident Mission PIC – project implementation cells PICC – project implementation coordination committee PIOs – project implementation offices PIU – project implementation unit PMU – project management unit SAP – Social Action Plan SDR – special drawing rights SOE – statement of expenditure TMA – Tehsil Municipal Administration WUC – water users’ committee NOTES (i) The fiscal year (FY) of the Government of Pakistan and the government of Punjab ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends; e.g., FY2002 ends on 30 June 2002. (ii) In this report, "$" refers to US dollars. (iii) “Government” refers to the Government of Pakistan. CONTENTS Page BASIC DATA i MAP v I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 4 D. Disbursements 4 E. Project Schedule 4 F. Implementation Arrangements 5 G. Conditions and Covenants 6 H. Consultants Recruitment and Procurement 6 I. Performance of Consultants, Contractors, and Suppliers 7 J. Performance of the Borrower and the Executing Agency 7 K. Performance of ADB 8 III. EVALUATION OF PERFORMANCE 8 A. Relevance 8 B. Efficacy in Achievement of Purpose 9 C. Efficiency in Achievement of Outputs and Purpose 9 D. Preliminary Assessment of Sustainability 9 E. Environmental, Sociocultural, and Other Impacts 9 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 10 A. Overall Assessment 10 B. Lessons Learned 10 C. Recommendations 11 APPENDIXES 1. Design Features of Water Supply and Sanitation Schemes 12 2. Findings of Sample Schemes Visited By PCR Mission 26 3. Financing Plan 36 4. Yearly Contract Awards and Disbursements 37 5. Project Implementation Schedule 38 6. Status of Compliance with Loan Covenants 39 7. Comparison of Planned and Actual Consulting Services 45 8. Economic and Financial Analysis 46 i BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Number 1349-PAK(SF) 3. Project Title Punjab Rural Water Supply & Sanitation (Sector) Project 4. Borrower Islamic Republic of Pakistan 5. Executing Agency Housing, Urban Development, and Public Health Engineering Department 6. Amount of Loan SDR31.314 Million ($46 million) 7. Project Completion Report Number PCR: PAK 782 B. Loan Data 1. Appraisal – Date Started 7 July 1994 – Date Completed 20 July 1994 2. Loan Negotiations – Date Started 21 November 1994 – Date Completed 23 November 1994 3. Date of Board Approval 31 January 1995 4. Date of Loan Agreement 12 May 1995 5. Date of Loan Effectiveness – In Loan Agreement 10 August 1995 – Actual 23 August 1995 – Number of Extensions - 6. Closing Date – In Loan Agreement 31 May 2000 – Actual 31 May 2002 – Number of Extensions 1 7. Terms of Loan – Interest Rate (% per annum) 1 – Maturity (number of years) 35 – Grace Period (number of years) 10 8. Terms of Relending – Interest Rate (% per annum) 1 – Maturity (number of years) 35 – Grace Period (number of years) 10 – Second-Step Borrower Government of Punjab ii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 19 March 1996 5 July 2003 7 years 3 months Effective Date Closing Date Time Interval Original Actual 23 August 1995 31 May 2000 31 May 2002 6 years 10 months b. Amount ($) (as of 29 August 2003) Last Amount Net Category or Original Revised Added/ Amount Amount Undisbursed Subloan Allocation Allocation Canceled Available Disbursed Balance Civil Works–Part A 21,299,779 29,575,884 8,276,105 28,618,467 26,379,250 2,239,217 Equipment & Materials– Part A 14,491,699 3,742,317 (10,749,383) 3,515,354 3,599,689 (84,334) Hygiene Education Program -Part B 360,920 360,920 373,216 8,394 364,821 Institutional Strengthening-Part C 5,792,563 4,267,822 (1,524,741) 4,261,607 3,284,390 977,217 Service Charge 1,027,868 1,027,868 1,011,895 564,735 447,161 Total 42,972,829 38,974,811 3,998,019 37,656,736 33,836,458 3,944,082 Note: SDR2,913,328 ($3,998,109 equivalent) was cancelled on 17 January 2000. 10. Local Costs (Bank-Financed) - Amount ($ million) 23.33 - % of Local Costs 63.34 - % of Total Cost 49.29 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 17.00 10.50 Local Currency Cost 43.00 36.83 Total 60.00 47.33 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Government-Financed 14.00 13.49 ADB-Financed 46.00 33.28 Total 60.00 46.77 IDC Costs Government-Financed 0.00 0.00 ADB-Financed 1.10 0.56 Total 1.10 0.56 ADB = Asian Development Bank, IDC = interest during construction. iii 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual Part A: Construction of Water Supply and Drainage 52.30 42.76 Schemes Part B: Hygiene Education Program 0.40 0.01 Part C: Institutional Strengthening 4.90 4.00 Contingencies 1.30 - Service Charge 1.10 0.56 Total 60.00 47.33 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants Community Liaison Advisor (Individual) Feb 1996 Feb 1996 Community Participation Coordinator 1 (Individual) Feb 1996 Sep 1996 Community Participation Coordinator 2 (Individual) Feb 1996 Jun 1997 Community Participation Coordinator 3 (Individual) Feb 1996 Jun 1999 Community Participation Management Specialist 1 Feb 1996 Sep 1996 (Individual) Community Participation Management Specialist 2 Feb 1996 Jan 1998 (Individual) Hygiene Education Specialist (Individual) Feb 1996 Oct 1998 Sociologist & Anthropologist (Individual) Feb 1996 Dec 1997 Management, Financial, Technical, and Feb 1996 Feb 1997 Environmental (Consortium of Firms) Completion of Engineering Designs Jun 1998 May 2002 Civil Works Contract Date of Award Oct 1995 Oct 1997 Completion of Work Sep 1999 Dec 2002 Equipment and Supplies Dates First Procurement Nov 1994 Apr 1996 Last Procurement Sep 1999 Mar 2002 Completion of Equipment Installation Sep 1999 Mar 2002 Start of Operations Completion of Tests and Commissioning - Ongoing Beginning of Start-Up - Nov 1998 Other Milestones Date of Establishment of PMU Nov 1994 Nov 1994 Social Mobilization of Communities Date of First Community Liaison Nov 1994 Jan 1996 Date of Last Community Liaison Sep 1999 Nov 2001 Date of First CBO/WUC Formation Nov 1994 Aug 1997 Date of Last CBO/WUC Formation Sep 1999 Dec 2001 Hygiene Education Program Date of Initiation Oct 1995 Jul 1999 Date of Completion Sep 1999 Sep 2001 Latrine Construction Program Date of Initiation Oct 1995 Oct 1998 Date of Completion Sep 1999 Sep 2001 Institutional Strengthening Date of Initiation Nov 1994 Feb 1997 iv Date of Completion Sep 1999 Sep 2002 CBO = community-based organization, PMU = project management unit, WUC = water users’ committee. 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 01 Mar 1998 to 31 Dec 1998 S S From 01 Jan 1999 to 30 Sep 1999 S PS From 01 Oct 1999 to 31 Dec 1999 PS PS From 01 Jan 2000 to 31 Dec 2000 S PS From 01 Jan 2001 to 31 Mar 2003 S S PS=partly satisfactory, S=satisfactory. D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Fact-Finding Mission 08 Nov 1993 3 60 a,b,g Appraisal Mission 07 Jul 1994 6 132 a,b,g,j,k,l Loan Inception Mission 27 Sep 1995 2 13 b,e Review Mission 1 25 Feb 1996 2 8 a,b Review Mission 2 26 Nov 1996 2 10 a,e Review Mission 3 08 Jan 1997 3 6 a,f Review Mission 4 06 May 1997 1 2 e Special Loan Administration Mission 1 30 Oct 1997 1 1 e Review Mission 5 22 Dec 1997 2 6 e,h Mid-Term Review Mission 17 Aug 1998 2 18 e,h Special Loan Administration Mission 2 01 Feb 1999 1 1 d Review Mission 6 31 Mar 1999 1 7 e Review Mission 7 25 Oct 1999 2 7 e,f Review Mission 8 10 May 2000 3 23 e,h,i Review Mission 9 14 Nov 2000 3 23 e,f,h Review Mission 10 07 May 2001 2 22 e,h Review Mission 11 31 Dec 2001 2 14 e,h Review Mission 12 26 Aug 2002 2 16 e,h Project Completion Review Mission b 07 Apr 2003 2 28 e,c a a = engineer, b = financial analyst, c = economist, d = control officer, e = project implementation officer, f = resident representative, g = institutional specialist, h = project analyst, i = disbursement analyst, j = senior programs officer, k = council, l = community participation specialist. b The project completion review mission was comprised of R.