Completion Report Project Number: 44372-013 Loan Numbers: 2742, 2743 September 2016 Pakistan: Flood Emergency Reconstruction Project This document is being disclosed to the public in accordance with ADB's Public Communications Policy 2011. CURRENCY EQUIVALENTS Currency Unit – Pakistan rupee/s (Pre/PRs) At Appraisal At Project Completion (25 February 2011) (30 September 2015) PRe1.00 = $0.0117 $0.0095 $1.00 = PRs85.45 PRs104.45 ABBREVIATIONS ADB – Asian Development Bank CDTA – capacity development technical assistance DNA – damage and needs assessment EMP – environmental management plans FERP – Flood Emergency Reconstruction Project FWO – Frontier Works Organization GRM – grievance redress mechanism ha – hectares km – kilometer IDS – Irrigation Department Sind NHA - National Highway Authority PDD – Planning and Development Department PIU – project implementation unit PMC – project management consultants PMU – project management unit PSC – project steering committee QCBS – Quality- and cost-based selection method WSDS – Works and Services Department Sindh NOTE (i) The fiscal year (FY) of the government and its agencies ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2012 ends on 30 June 2012. (ii) In this report, "$" refers to US dollars. Vice -Presid ent W. Zhang, Operations 1 Director General S. O’Sullivan, Central and West Asia Department (CWRD) Director W. Liepach, Pakistan Resident Mission, CWRD Team leader Z. Naqvi, Project Officer (Transport), CWRD Team member s N. Janjua, Senior Operations Assistant, CWRD I. Memon, Associate Project Analyst, 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 i 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. Related Technical Assistance 6 I. Consultant Recruitment and Procurement 7 J. Performance of Consultants, Contractors, and Suppliers 8 K. Performance of the Borrower and the Executing Agencies 9 L. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 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 12 A. Overall Assessment 12 B. Lessons 12 C. Recommendations 13 APPENDIXES 1. Design and Monitoring Framework 15 2. National Highway Authority Civil Work Subprojects and Costs 19 3. National Roads Subprojects under Retroactive Financing 20 4. Works and Services Department Civil Work Subprojects and Costs 28 5. Irrigation Department Civil Work Subprojects and Costs 30 6. Irrigation Subprojects under Retroactive Financing 37 7. Annual Disbursements 53 8. Implementation Schedule 55 9. Status of Compliance with Loan Covenants 58 10. Economic Analysis 74 11. Gender Action Framework—Targets and Achievements 77 BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Numbers 2742 and 2743 3. Project Title Flood Emergency Reconstruction Project 4. Borrower Islamic Republic of Pakistan 5. Executing Agencies Sindh Irrigation and Power Department Sindh Works and Services Department National Highway Authority 6. Amount of Loan Loan 2742 (OCR) $600,000,000 Loan 2743 (SF) SDR31,704,000 7. Project Completion Report Number PAK 1600 B. Loan Data 1. Appraisal – Date Started Aug 2010 – Date Completed Sep 2010 2. Loan Negotiations – Date Started 17 Mar 2011 – Date Completed 21 Mar 2011 3. Date of Board Approval 30 Mar 2011 4. Date of Loan Agreement 14 Apr 2011 5. Date of Loan Effectiveness – In Loan Agreement A date 30 days after loan agreement – Actual 26 May 2011 (for both loans) – Number of Extensions None 6. Closing Date – In Loan Agreement 30 Sep 2014 (for both loans) – Actual Loan 2742-PAK—loan account is still open; loan 2743-PAK—15-Apr-2015. – Number of Extensions 1 (L2742) 7. Terms of Loan Loan 2742, Ordinary Capital Resources – Interest Rate London interbank offered rate –commitment charges per annum 0.15% – Maturity (number of years) 24 – Grace Period (number of years) 8 Loan 2743, Special Funds Resources – Interest Rate 1% per annum – Maturity (number of years) 30 – Grace Period (number of years) 10 8. Terms of Relending Loan 2742, Ordinary Capital Resources – Interest Rate London interbank offered rate ii –commitment charges per annum 0.15% – Maturity (number of years) 24 – Grace Period (number of years) 8 – Second-Step Borrower Government of Sindh National Highway Authority Loan 2743 , Special Funds Resource – Interest Rate 1% per annum – Maturity (number of years) 30 – Grace Period (number of years) 10 – Second-Step Borrower Government of Sindh 9. Disbursement a. Dates Loan 2742 Initial Disbursement Final Disbursement Time Interval 8 Sep 2011 2 Dec 2015 45 Effective Date Original Closing Date Time Interval 26 May 2011 30 Sep 2014 40 Loan 2743 In itial Disbursement Final Disbursement Time Interval 6 Sep 2012 15 Mar 2014 18 Effective Date Original Closing Date Time Interval 26 May 2011 30 Sep 2014 40 b. Amount ($) Loan number 2742-PAK Net Category or Original Last Revised Amount Amount Amount Undisbursed Subloan Allocation Allocation Cancelled Available Disbursed Balance 1 Works 487,262,000 464,164,000 (23,098,000) 464,164,000 439,763,777 24,400,223 1A NHA 224,378,000 185,000,000 (39,378,000) 185,000,000 169,067,805 15,932,195 1B IDS 155,300,000 166,500,000 11,200,000 166,500,000 163,552,074 2,947,926 1C WSDS 107,584,000 112,664,000 5,080,000 112664000 107,143,898 5,520,102 2 - Equipment 965,000 411,900 (553,100) 411,900 392,830 19,070 and vehicles 2A NHA 556,000 41,900 (514,100) 41,900 38,313 3,587 2B IDS 90,000 100,000 10,000 100,000 99,912 88 2C WSDS 319,000 270,000 (49,000) 270,000 254,605 15,395 3 Consulting 22,678,000 12,482,000 (10,196,000) 12,482,000 10,108,800 2,373,200 services 3A NHA 16,723,000 7,870,000 (8,853,000) 7,870,000 6,061,624 1,808,376 3B IDS 2,430,000 1,002,000 (1,428,000) 1,002,000 1,001,208 792 3C WSDS 3,525,000 3,610,000 85,000 3,610,000 3,045,968 564,032 4 Incremental 5,207,000 3,092,200 (2,114,800) 3,092,200 1,544,111 1,548,089 management cost iii 4A NHA 3,687,000 1,819,200 (1,867,800) 1,819,200 258,939 1,560,261 4B IDS 180,000 273,000 93,000 273,000 269,328 3,672 4C WSDS 1,340,000 1,000,000 (340,000) 1,000,000 1,015,844 (15,844) 5. Interest and 7,116,000 7,116,000 0 7,116,000 6,701,720 414,280 commitment charges 6. Contingencies 76,772,000 10,000,000 (66,772,000) 10,000,000 0 10,000,000 Total 600,000,000 497,266,100 (102,733,900) 497,266,100 458,511,238 38,754,862 ( ) = negative, zero = magnitude zero, IDS = Irrigation Department Sindh, NHA = National Highway Authority, WSDS = Works and Service Department Sindh Component., Loan No. 2743-PAK (SDR) Category or Original Last Revised Amount Net Amount Amount Undisbursed Subloan Allocation Allocation Cancelled Available Disbursed Balance 1. Works 27,139,000 26,674,501 (464,499) 26,674,501 26,674,501 0 2. Interest 571,000 386,024 (184,976) 386,024 386,024 0 during construction Total 27,710,000 27,060,525 (649,475) 27,060,52 5 27,060,525 0 ( ) = negative, zero = magnitude zero 10. Local Costs Financed ($ million): Not applicable - Amount ($ million) - Percent of Local Costs - Percent of Total Cost iv C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost Not Applicable Not Applicable Local Currency Cost Not Applicable Not Applicable Total 722.20.00 571.51 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 72.20 72.02 ADB Financed 642.00 492.20 Other External Financing Not Applicable Total 714.20 564.22 IDC Costs Borrower Financed Not Applicable Not Applicable ADB Financed 8.00 7.29 Other External Financing Not Applicable Not Applicable Total 722.20 571.51 ADB = Asian Development Bank, IDC = interest during construction. 1. The government share has increased in categories from 10% to 11.57 % in 1A, 11.01% in 2A, and 11.99% in 3A of the National Highway Authority component. This is due to (i) 100% payment made under six contracts after loan closure under category 1A, (ii) differences in government tax rates in different fiscal years and exchange rate fluctuation under categories 2A and 3A, (iii) a 100% payment made from the government share after loan closure for incremental charges under category 4A, and (iv) additional payment of more than $3 million against land acquisition recorded as the government’s share. 2. The government share has increased in categories from 10% to 10.23% in 1C and 10.42% in 2C of the works and services department Sindh component. This is due to (i) a 100% payment made under three contracts after loan closure under category 1C, and (ii) differences in government tax rates in different fiscal years and exchange rate fluctuation under category 2C. v 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual 1.