Completion Report Project Number: 29603 Loan Number: 1672-PAK(SF) December 2010 Pakistan: Malakand Rural Development Project CURRENCY EQUIVALENTS Currency Unit – Pakistan rupee/s (PRe/PRs) At Appraisal At Project Completion (15 February 1997) (30 June 2008) PRe1.00 = $0.0195 $0.0147 $1.00 = PRs51.30 PRs68.19 ABBREVIATIONS BADP – Barani Area Development Project BAP – best agriculture practice BME – benefit monitoring and evaluation BOK – Bank of Khyber CADP – Chitral Area Development Project CWD – Communication and Works Department EIRR – economic internal rate of return FFS – farmers field school FHA – Frontier Highway Authority GDP – gross domestic product HRD – human resource development IPM – integrated pest management MRDP – Malakand Rural Development Project NGO – nongovernment organization NWFP – North-West Frontier Province O&M – operation and maintenance PEDD – Planning, Environment and Development Department PMU – project management unit PRB – Project Review Board ROSCA – rotating savings and credit association RRP – report and recommendation of the President RSP – rural support program SOU – social organization unit SRSC – Sarhad Rural Support Corporation TA – technical assistance TOP – terms of partnership UNDCP – United Nations Drug Control Programme NOTES (i) The fiscal year (FY) of the government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2000 ends on 30 June 2000. (ii) In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations 1 Director General J. Miranda, Central and West Asia Department (CWRD) Director D. Kertzman, Financial Sector, Public Management and Trade Division, CWRD Country Director R. Stroem, Pakistan Resident Mission, CWRD Team leader M. Abro, Project Implementation Officer, Pakistan Resident Mission, CWRD Team member N. Islam, Associate Project Analyst, Pakistan Resident Mission, 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 3 C. Project Costs 9 D. Disbursements 10 E. Project Schedule 10 F. Implementation Arrangements 10 G. Conditions and Covenants 11 H. Related Technical Assistance 11 I. Consultant Recruitment and Procurement 11 J. Performance of Consultants, Contractors, and Suppliers 12 K. Performance of the Borrower and the Executing Agency 13 L. Performance of the Asian Development Bank 13 III. EVALUATION OF PERFORMANCE 13 A. Relevance 13 B. Effectiveness in Achieving Outcome 14 C. Efficiency in Achieving Outcome and Outputs 14 D. Preliminary Assessment of Sustainability 14 E. Impact 14 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons Learned 15 C. Recommendations 15 APPENDIXES 1. Project Framework 16 2. ADB's Sector Strategy and Government Policies and Plans 19 3. Agriculture and Livestock 20 4. Community Managed Infrastructure Schemes 22 5. Gender and Development 24 6. Rural Financial Services 25 7. Road Development 26 8. Equipment Procured 27 9. Project Cost 30 10. Contract Awards and Disbursements 31 11. Project Implementation Schedule 33 12. Status of Compliance with Loan Covenants 35 13. Consulting Services 42 14. Asessment of Overall Project Performance 43 BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Number 1672-PAK(SF) 3. Project Title Malakand Rural Development Project 4. Borrower Islamic Republic of Pakistan 5. Executing Agency Planning, Environment, and Development Department, Government of the North-West Frontier Province 6. Amount of Loan SDR30,852,000 7. Project Completion Report Number PCR: PAK 1192 B. Loan Data 1. Appraisal – Date Started 2 December 1997 – Date Completed 17 December 1997 2. Loan Negotiations – Date Started 20 July 1998 – Date Completed 22 July 1998 3. Date of Board Approval 18 March 1999 4. Date of Loan Agreement 23 April 1999 5. Date of Loan Effectiveness – In Loan Agreement 22 July 1999 – Actual 20 July 1999 – Number of Extensions 0 6. Closing Date – In Loan Agreement 31 December 2006 – Actual 1 July 2008 – Number of Extensions 1 7. Terms of Loan – Interest Rate 1.0% – Maturity (number of years) 35 years – Grace Period (number of years) 10 years 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 8 August 2000 1 July 2008 95 months Effective Date Original Closing Date Time Interval 20 July 1999 31 December 2006 89 months ii b. Amount (SDR million) Category or Last Revised Net Amount Subloan Original Allocation Available Amount Undisbursed Allocation Disbursed Balance 01A 10.351 10.351 10.351 3.555 6.796 01B 6.618 1.868 1.868 1.764 0.104 01C 0.000 0.217 0.217 0.299 (0.082) 01D 0.000 1.436 1.436 2.390 (0.954) 01E 0.000 3.097 3.097 2.221 0.876 02 0.301 0.301 0.301 0.143 0.158 03 0.399 0.399 0.399 0.181 0.218 04 2.212 2.212 2.212 1.251 0.961 05 1.663 1.663 1.663 3.604 (1.941) 06 3.371 3.371 3.371 1.221 2.150 07 4.041 4.041 4.041 0.370 3.671 08 0.850 0.850 0.850 0.416 0.434 09 1.046 1.046 1.046 0.000 1.046 Total 30.852 30.852 30.852 17.415 13.437 ( ) = negative. The amount of SDR13.437 was cancelled on 1 July 2008 and the loan account was closed on the same day. 9. Local Costs (Financed) - Amount ($ million) 17.6 - Percent of Local Costs 52.0 - Percent of Total Cost 42.0 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 15.4 8.1 Local Currency Cost 47.5 33.9 Total 62.9 42.0 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 12.1 13.1 ADB Financed 39.9 25.1 Bank of Khyber 1.0 0.5 Beneficiaries Financed 8.8 2.7 Total 61.8 41.4 IDC Costs Borrower Financed 0.0 0.0 ADB Financed 1.1 0.6 Total 62.9 42.0 ADB = Asian Development Bank, IDC = interest during construction. iii 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Base Cost 1. Village Development Services a. Agricultural Support Services 4.0 3.1 b. Community-Managed Infrastructure 17.2 15.4 c. Women's Health 0.6 1.0 2. Rural Financial Services 6.1 1.5 3. Road Development 19.8 13.8 4. Project Implementation Support a. Project Management 3.1 3.7 b. Community Mobilization 2.4 2.8 Subtotal (A) 53.2 41.4 B. Contingencies 1. Physical Contingencies 1.8 0.0 2. Price Contingencies 6.8 0.0 Subtotal (B) 8.6 0.0 C. Service Charge During Construction 1.1 0.6 Total 62.9 42.0 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants Sep 2000 Community Development NGOs 16 Jan 2002 Design and Construction Supervision 25 Jan 2002 Rural Financial Services 10 Sep 2002 Benefit Monitoring and Evaluation 25 Jun 2002 Capacity Building of District Implementing NGOs 19 Aug 2003 Completion of Engineering Designs Jun 2002 30 Sep 2003 Civil Works Contract Date of Award Jul 2003 29 Aug 2003 Completion of Work Jun 2005 31 Dec 2007 Equipment and Supplies Dates First Procurement Jan 2000 15 Sep 2000 Last Procurement Sep 2001 10 Jun 2007 Other Milestones iv 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 30 May 1999 to 29 Mar 2001 S S From 30 Mar 2001 to 28 Jun 2001 S PS From 29 Jun 2001 to 28 Sep 2001 S S From 29 Sep 2001 to 28 Apr 2002 S PS From 29 Apr 2002 to 29 Jan 2006 S S From 30 Jan 2006 to 29 May 2006 S PS From 30 May 2006 to 27 Feb 2008 S S From 28 Feb 2008 to 29 Mar 2008 S U From 30 Mar 2008 to 30 Jun 2008 S S D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members TA Fact-Finding 25 Feb–9 Mar and 2 34 a, i 17–19 Mar 1996 Loan Fact-Finding 17 Sep–8 Oct 1997 5 98 a, c, d, f, i Loan Appraisal 2–17 Dec 1997 6 96 a, c, d, e, f, i Consultation 1 1–4 Jun 1999 3 12 f, f, h Consultation 2 12 Jun 1999 2 2 b, f Consultation 3 29 Nov 1999 2 2 f, f Consultation 4 20 Jan 2000 1 1 f Inception 15–19 Aug 2000 4 20 b, f, h, j Review 1 11–16 Dec 2000 1 6 f Review 2 18–30 Mar 2002 4 20 f, g, h, j Review 3 01–13 Nov 2002 3 30 b, f, h Review 4 25 Aug–08 Sep 2003 3 34 f, h, k Midterm Review 17 May-05 Jun 2004 3 80 f, h, i, k Special Loan Administration 20–25 Jun 2005 2 12 f, h Review 1 4–13 Aug 2005 2 20 f, h Special Loan Administration 1–6 May 2006 2 12 f, h Review 2 8–12 Oct 2006 1 5 f Project Completion Review 16–24 Jun 2008 2 18 f, h 10–14 May 2010 2 10 f, h a = rural development specialist, b = country director, c = project economist, d = programs officer, e = counsel, f = project implementation officer, g = control officer, h = project administration staff, i = staff consultant, j = TA consultant, k = head, portfolio management unit.