ASIAN DEVELOPMENT BANK PCR:PAK 20073 PROJECT COMPLETION REPORT ON THE SINDH FORESTRY DEVELOPMENT PROJECT (Loan 1076-PAK[SF]) IN PAKISTAN April 2003 CURRENCY EQUIVALENTS (as of 30 June 2001) Currency Unit – Pakistan Rupees (PRe/PRs) At Appraisal At Project Completion October 1990 June 2001 PRe1.00 = $0.0457 $.01586 $1.00 = PRs21.904 PRs63.05 ABBREVIATIONS ADB – Asian Development Bank cft – cubic feet EA – executing agency EIRR – economic internal rate of return FIRR – financial internal rate of return FLMA – forest land management agreement FSMP – forestry sector master plan GIS – geographic information system GOS – Government of Sindh md – maund m3 – cubic meter MTR – midterm review PBME – project benefit monitoring and evaluation P&DD – Planning and Development Department PCR – project completion report PMO – Project Management Office PPAR – project performance audit report SDR – special drawing rights SFD – Sindh Forest Department SFDP – Sindh Forestry Development Project SFS – self financing system TA – technical assistance TCR – technical assistance completion report NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2000 ends on 30 June 2000. (ii) In this report, "$" refers to US dollars. CONTENTS Page BASIC DATA iii MAP ix I. PROJECT DESCRIPTION 1 A. Background and Rationale 1 B. Objectives and Scope 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 5 D. Disbursements 6 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 7 J. Performance of the Borrower and the Executing Agency 8 K. Performance of ADB 8 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Efficacy in Achievement of Purpose 9 C. Efficiency in Achievement of Outputs and Purpose 9 D. Preliminary Assessment of Sustainability 10 E. Institutional Development and Other Impacts 10 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 12 A. Overall Assessment 12 B. Lessons Learned 12 C. Recommendations 13 APPENDIXES 1. Detailed Description of Project Components 16 2. Estimated Targets and Accomplishments for the Period of 1993 to 2003 Under the Sindh Forestry Sector Master Plan 20 3. Project Targets and Achievements 21 4. Vehicles and Equipment Procured 22 5. Training Courses and Study Tours for Personnel of the Sindh Forest Department and Sindh Farmers 23 6. Detailed Project Cost 28 7. ADB Annual Disbursement of Loan Proceeds 29 8. Implementation Schedule 30 9. Organizational Chart of the Sindh Forest Department at Provincial Level 32 10. Status of Compliance with Loan Covenants 33 11. Status of Consultant Recruitment 40 12. Technical Assistance Completion Report 41 13. Economic Reevaluation 43 14. Projected Harvests, Costs, and Income from the Sindh Forest Department’s Plantations Covered by the 14 Management Plans 54 15. Follow-Up Actions and Recommendations 55 BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Number 1076 3. Project Title Sindh Forestry Development Project 4. Borrower Islamic Republic of Pakistan 5. Executing Agency Sindh Forest Department 6. Amount of Loan SDR 16.309 milliona 7. Project Completion Report Number PCR:PAK 739 B. Loan Data 1. Appraisal – Date Started 11 September 1990 – Date Completed 26 September 1990 2. Loan Negotiations – Date Started 19 November 1990 – Date Completed 20 November 1990 3. Date of Board Approval 24 January 1991 4. Date of Loan Agreement 02 April 1991 5. Date of Loan Effectiveness – In Loan Agreement 1 July 1991 – Actual 27 December 1991 – Number of Extensions 3 6. Closing Date – In Loan Agreement 30 June 1999 – Actual 31 January 2002 – Number of Extensions 2 7. Terms of Loan – Interest Rate 1% – Maturity (number of years) 35 years – Grace Period (number of years) 10 years 8. Terms of Relending – Interest Rate 6% – Maturity (number of years) 25 years – Grace Period (number of years) 10 years – Second-Step Borrower Agricultural Development Bank of Pakistan a Original amount approved was SDR 28.755 million. iv 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 2 April 1992 31 January 2002 9 years, 9 months Effective Date Original Closing Time Interval Date 27 December 1991 30 June 1999 7 years, 6 months b. Amount (SDR‘000) Net Undisbursed Category Original Last Revised Amount Balance Canceled Allocation Allocation Disbursed at Closing Date 01A CW – Plantations 12,401,000 9,067,133 8,768,664 298,469 01B CW – Project & 370,000 669,300 670,226 (926) Institutional Support 02 Equipment and Materials 609,000 859,850 827,950 31,900 03 Training and Study 325,000 331,320 292,493 38,827 04A Establishment and 1,959,000 2,155,000 2,163,264 (8,264) Maintenance – Social Forestry 04B Establishment and 5,186,000 2,311,350 1,888,096 423,254 Maintenance - Plantations 04C Establishment and 180,000 72,000 19,098 52,902 Maintenance – Project and Institutional Support 05 Consulting Services 1,361,000 1,051,100 1,025,352 25,748 06 ADBP Credit 1,598,000 0 0 0 08 Service Charge 776,000 776,000 656,536 119,464 09 Unallocated 3,990,000 0 0 0 99 Imprest Fund 0 0 (2,028) 2,028 28,755,000 17,293,053 16,309,651 983,402 ADBP = Agricultural Development Bank of Pakistan; CW = Civil Works. 10. Local Costs (ADB-Financed) - Amount ($’000) $9,350 - Percentage of Local Costs 74% - Percentage of Total Cost 36% v C. Project Data 1. Project Cost ($’000) Cost Appraisal Estimate Actual Foreign Exchange Cost 23,367 13,415 Local Currency Cost 28,633 12,774 Total 52,000 26,189 2. Financing Plan ($’000) Appraisal Estimate Actual Cost Foreign Local Total Foreign Local Total Implementation Costs: ADB-Financed 23,367 18,233 41,600 13,415 9,350 22,765 Borrower-Financed - 9,200 9,200 0 3,424 3,424 Private Sector - 1,200 1,200 0 0 0 Total 23,367 28,633 52,000 13,415 12,774 26,189 ADB = Asian Development Bank. 3. Cost Breakdown by Project Component ($‘000) Appraisal Estimate Actual Component Foreign Local Total Foreign Local Total 1. Social Forestry Community Forests 232 2,091 2,323 564 2,257 2,821 Shelterbelt 25 229 254 59 249 308 Hurries 13 120 133 33 121 154 Subtotal 270 2,440 2,710 656 2,627 3,283 2. Forest Plantations Riverine Forests 5,599 6,593 12,192 4,221 2,646 6,867 Inland Forests (New) 5,561 5,551 11,112 4,126 2,655 6,781 Inland Forests (Rehabilitation) 1,410 2,411 3,821 1,032 1,130 2,162 Subtotal 12,570 14,555 27,125 9,379 6,431 15,810 3. Institutional Support 2,133 2,577 4,710 2,491 3,716 6,207 4. Private Sector (Pilot) Credit Component 1,500 1,500 3,000 0 0 0 Total Base Cost 16,473 21,072 37,545 12,526 12,774 25,300 5. Contingencies Physical 1,647 2,107 3,754 0 0 0 Price 4,125 5,454 9,579 0 0 0 6. Service Charge 1,122 0 1,122 889 0 889 Total Project Cost 23,367 28,633 52,000 13,415 12,774 26,189 vi 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants International Consultants: Implementation Adviser July 1992 February 1993 Forestry Specialist September 1992 December 1992 Tree Improvement/Silviculturist January 1993 March 1994 Domestic Consultants: Civil Engineering January 1992 July 1993 Irrigation Advisor July 1992 August 1995 Rural Sociologist September 1992 July 1993 Forest Management Specialist - October 1999 Forest Economist - November 1999 Topograhic Survey Mapping January 1992 May 1993 Civil Works Contract Date of Award January 1992 April 1992 Completion of Work July 1992 December 1993 Equipment and Supplies Dates First Procurement May 1992 June 1992 Last Procurement June 1998 June 2001 Other Milestones Approval of the First Extension of Loan Closing Date 17 June 1999 First Partial Cancellation 23 February 1997 Second Partial Cancellation 21 August 1998 Third and Final Cancellation 31 January 2002 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 1 January to 31 December 1992 Satisfactory Satisfactory From 1 January to 31 December 1993 Satisfactory Satisfactory From 1 January to 31 December 1994 Satisfactory Satisfactory From 1 January to 31 December 1995 Satisfactory Satisfactory From 1 January to 31 December 1996 Satisfactory Satisfactory From 1 January to 31 December 1997 Satisfactory Satisfactory From 1 January to 31 December 1998 Satisfactory Satisfactory From 1 January to 31 December 1999 Satisfactory Satisfactory From 1 January to 31 December 2000 Satisfactory Satisfactory From 1 January to 31 December 2001 Satisfactory Satisfactory vii D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Loan Fact Finding 14 November-3 December 1989 5 85 a, b, j, k,l, Appraisal Mission 11-26 September 1990 8 96 a,b,d,l,m,n,o,p Inception Mission 11-27 February 1992 3 17 a b, c Special Project Administration 18 June 1992 1 1 b Review Mission 1 17-30 November 1992 3 30 a, b, d Review Mission 2 7-15 September 1993 2 18 b,c Review Mission 3 16-18 May 1994 2 6 b, d Special Project Administration 1-4 August 1994 1 4 b Review Mission 4 4-13 March 1996 2 20 e, f Midterm Review 21 September – 10 October 1996 1 10 e Special Project Administration 1–10 December 1996 3 25 e,f, g Review Mission 5 9-14 July 1997 1 6 e Special Project Administration 19-21 January 1998 2 6 b, c Review Mission 6 25 February to 4 March 1999 1 8 h Review Mission 7 6-11 September 1999 2 12 c, I Review Mission 8 5-10 June 2000 1 6 I Review Mission 9 12-13 March 2001 1 2 I Project Completion Reviewb 22 January-6 February 2003 2 32 m, j a a=Sr.