ABBREVIATIONS BME C&WD CD CO C ! D" #$an D%! D)W E* E%,, ' $a %* km -"O ."O ., ! O&M !E,% !

M0 CO D, WC W0* 1i2 benefit monitoring and evaluation Communication and Works Department community development community organization country strategy and program Dera "$azi #$an Department of %rrigation and !o&er DO'WM Directorate of On('arm Water Management deep turbine tube &ell e+ecuting agency economic internal rate of return financial services $ectare implementing agency kilometer local government ordinance nongovernment organization .ational ,ural upport !rogram operation and maintenance !C, pro/ect completion revie& !un/ab Economic ,esearc$ %nstitute pro/ect management unit savings and credit organization special dra&ing rig$ts &atercourse &ater users association NOTES

)$e fiscal year 1'32 of t$e "overnment and its agencies ends on 45 6une7 8'39 before a calendar year denotes t$e year in &$ic$ t$e fiscal year ends: e7g7: '3;<<<=555 ends on 45 6une =5557 %n t$is report: 8>9 refers to 0 dollars7

1ii2

Vice President Director General Director Team leader Team member

-i?un 6in: Operations ; 67 Miranda: Central and West *sia Department 1CW,D2 !7 -7 'edon: Country Director: !akistan ,esident Mission 1!,M2: CW,D M7 7 $afi: !ro/ect %mplementation Officer: !,M: CW,D .7 ul %slam: *ssociate !ro/ect *nalyst: !,M: CW,D

CONTENTS Page B* %C D*)* M*! %7 %%7 !,O6EC) DE C,%!)%O. E@*-0*)%O. O' DE %". *.D %M!-EME.)*)%O. *7 ,elevance of Design and 'ormulation B7 !ro/ect Outputs C7 !ro/ect Costs D7 Disbursements E7 !ro/ect c$edule '7 %mplementation *rrangements "7 Conditions and Covenants C7 Consultant ,ecruitment and !rocurement % !erformance of Consultants: Contractors: and uppliers 67 !erformance of t$e Borro&er and t$e E+ecuting *gency #7 !erformance of t$e *sian Development Bank E@*-0*)%O. O' !E,'O,M*.CE *7 ,elevance B7 Effectiveness in *c$ieving Outcome C7 Efficiency in *c$ieving Outcome and Outputs D7 !reliminary *ssessment of ustainability E7 %mpact O@E,*-- * E ME.) *.D ,ECOMME.D*)%O. *7 Overall *ssessment B7 -essons C7 ,ecommendations ii vii ; ; ; 4 A A B B B D E E < < < ;5 ;; ;; ;= ;4 ;4 ;F ;A

%%%7

%@7

*!!E.D%GE ;7 !lanned and *c$ieved Outputs of t$e !ro/ect =7 Categories of Community Development ubpro/ect 47 Completion Dates of ,ural ,oads under t$e Dera "$azi #$an ,ural Development !ro/ect F7 *c$ievement under t$e 'inancial ervices Component A7 *ppraised and Completed Costs of t$e !ro/ect B7 Contract *&ards and Disbursements D7 %mplementation c$edule E7 tatus of Compliance &it$ -oan Covenants <7 Economic and 'inancial *nalyses ;57 !ro/ect 'rame&ork

BASIC DATA
A. Loan Identi ication ;7 =7 47 F7 A7 B7 D7 B. Country -oan .umber !ro/ect )itle Borro&er E+ecuting *gency *mount of -oan !ro/ect Completion ,eport .umber !akistan ;A4; Dera "$azi #$an ,ural Development %slamic ,epublic of !akistan !un/ab !lanning and Development Department D,=B75BE million !C,H!*# <<E

Loan Data ;7 *ppraisal Date tarted Date Completed =7 -oan .egotiations Date tarted Date Completed Date of Board *pproval Date of -oan *greement Date of -oan Effectiveness %n -oan *greement *ctual .umber of E+tensions Closing Date %n -oan *greement *ctual .umber of E+tensions )erms of -oan %nterest ,ate Maturity "race !eriod <7 )erms of ,elending 1if any2 %nterest ,ate Maturity "race !eriod econd( tep Borro&er

=D May ;<<D F 6une ;<<D =E 6uly ;<<D 45 6uly ;<<D F eptember ;<<D ;B October ;<<D ;F 6anuary ;<<E ;= 6anuary ;<<E .one 4; December =55F 4; May =55D = ;75I 4A years ;5 years ;75I 4A years ;5 years .ational ,ural upport !rogram: >=7D million at ;575I: repayable ; year after pro/ect completion

47 F7 A7

B7

D7

E7

Disbursements a7 Dates Initial Disb!rsement < October ;<<E

"inal Disb!rsement 4; May =55D

Time Inter#al ;5F mont$s

iii
E ecti#e Date ;= 6anuary ;<<E b7 Categor$ or S!bloan No. 5;* 5;B 5;C 5= 54* 54B 54C 54D 5F 5A Total ;57 ( *mount 1 D, million2 Original Allocation ;7A<4 B7FFF <7D54 =7;55 57;FA ;75EB ;7FFE 57BA= ;7=4; ;7BBB =B75BE -ocal Costs 1'inanced2 *mount 1> million2 ( !ercentage of -ocal Costs ( !ercentage of )otal Cost Net Amo!nt A#ailable ;7A<4 B7FFF <7D54 =7;55 57;FA ;75EB ;7FFE 57BA= ;7=4; ;7BBB =B75BE Amo!nt Disb!rsed 57DDD 47D<A ;;7F4B =75=D 57=E= 57DD< ;7AB; 57F=F 5745A 57555 =;74ED %ndisb!rsed Balance 57E;B =7BF< ;7D44 575D4 157;4D2 5745D 157;;42 57=4= 57<=B ;7BBB F7BE; Original Closing Date 4; December =55F Time Inter#al E4 mont$s

=57A A47D F=7;

C.

Pro&ect Data ;7 !ro/ect Cost 1> million2 A''raisal Estimate ;=7< 4<74 A=7= Act!al ;57A 4E7; FE7B

Cost 'oreign E+c$ange Cost -ocal Currency Cost Total =7 'inancing !lan 1> million2

Cost %mplementation Costs Borro&er('inanced *DB('inanced Beneficiary('inanced Total %DC Costs Borro&er('inanced *DB('inanced Ot$er E+ternal 'inancing Total

A''raisal Estimate D7; 4F7; <7; A574 575 ;7< 575 A=7=

Act!al B74 457F ;;7A FE7= 575 57F 575 FE7B

*DB J *sian Development Bank: %DC J interest during construction7

iv
47 Cost Breakdo&n: by !ro/ect Component 1> million2 A''raisal Estimate A75 ;D7= ;F74 47; F7E ;7D F7= ;7< A=7= !ro/ect c$edule Act!al 47D ;47D =47F =7E F7B 575 575 57F FE7B

Com'onent %rrigation Development Community Development ,ural ,oads ,ural 'inance %nstitutional upport !$ysical Contingencies !rice Contingencies %nterest during Construction Total F7

Item A''raisal Estimate Act!al Date of Contract &it$ Consultantsa Contract &it$ ."O E 'ebruary ;<<< Contract &it$ Design Consultant ; 6anuary =555 Contract &it$ Construction upervision Consultant = October =554 Contract &it$ Baseline urvey Consultants =; 'ebruary =555 Contract &it$ %mpact Evaluation Consultants =; May =55A Civil Works Contract Date of *&ard 1first contract2 A *pril =554 Completion of Work 1last contract2 45 .ovember =55B E?uipment and upplies !rocurement Dates 'irst !rocurement ;5 October ;<<E -ast !rocurement =E Marc$ =55B Ot$er Milestones 'ormation of 'irst MenKs CO ; 'ebruary ;<<< 'ormation of 'irst MenKs CO ;= 'ebruary ;<<< 'ormation of 'irst MenKs C)W"LW0* =4 'ebruary ;<<< 'ormation of 'irst WomenKs CO D 'ebruary ;<<< 'ormation of 'irst WomenKs CO D 'ebruary ;<<< CO J community organization: C)W" J community tube&ell group: ."O J non(governmental organization: CO J savings and credit organization: W0* J &ater users organization A7 !ro/ect !erformance ,eport ,atings Ratings Im'lementation Period ;= 6an ;<<E4; Dec =55A ; 6an =55B=E 'eb =55B ; Mar =55B4; Mar =55D J satisfactory: 0 J unsatisfactory De#elo'ment Ob&ecti#es Im'lementation Progress 0

D.

Data on Asian De#elo'ment Ban( )issions Date E=; Mar ;<<B D;; Oct ;<<B ;A=D .ov ;<<B =D 'eb;F Mar ;<<B =A *pr; May ;<<D =D MayF 6un ;<<D A;; 6an ;<<< ;< *pr =555 =D=< .ov =555 =;=A 6an =55= =A=< .ov =55= ;D=F 'eb =55F =A *ugE ep =55F D;B Dec =55F =B4; Dec =55A ;=;D 6un =55B ;= Dec =55B;5 'eb =55D No. o Persons = ; ; B = = 4 = = = = = = = ; ; 4 No. o Person+Da$s 4F A ;4 <B ;F ;E =; = B ;5 ;5 ;B 45 =5 B B BD S'eciali*ation o )embers a: m a a a: c: d: e: f: m a: c a: c g: e: l $: i i: / b: l b: l k: l k: l k: l k k k: l: m

Name o )ission )* fact(finding )* inception )* revie& -oan fact(finding -oan post(fact(finding -oan appraisal -oan inception pecial loan administration -oan revie& ; -oan revie& = -oan revie& 4 -oan revie& F -oan midterm revie& -oan revie& A -oan revie& B -oan revie& D !ro/ect completion revie&

a J senior pro/ect engineer: b J senior pro/ect implementation officer: c J program officer: d J pro/ect specialist: e J pro/ect economist: f J social development specialist: g J rural development specialist: $ J resident representative: i J senior program officer: / J senior control officer: k J pro/ect implementation officer: l J pro/ect analyst: m J staff consultant7: )* J tec$nical assistance

vi

vii

Dera Ghazi Khan

Dera Ghazi Khan the Royal City of Balochistan until anglo time of 1857. But later British Empire separate it from Balochistan an it forme as the Di!ision of "un#a$ "ro!ince in recent "a%istan. D.G. Khan &as foun e $y Ghazi Khan in 1'(' ).D. Dera Ghazi Khan al&ays remaine the center of Balochi Culture an ci!ilization. *t forms three ma#or areas in its epth an they are +ri$al )reas, semi +ri$al )reas, an -un +ri$al )reas. D.G. Khan contains one of "a%istan.s main +e/tile *n ustries. )ll fi!e ri!ers of "un#a$ inclu ing the *n us Ri!er flo& through out this region. )n com$ine them into one near Kot 0ithan. 0ain +ri$es of Dera Ghazi Khan inclu es 1ighari,0azari,Khosa, Rin , 2aisrani, 1a%ani an 3mrani an Buz ar. +here are many tri$es in D.G.Khan. Buz ar is one of them. *t has many su$4tri$es such as Rustomani Bah urani 5alalani , Dostalani, Ba#rani Baliani, 1a &ani,0err%hani 1ashari, an Bohur. Basti Rin is a&ay from Dera Ghazi Khan at 56K0.&hich is in!ol!e in 7ha an 1on union Council. Dera Ghazi Khan 87arai%i, 3r u9 is a city locate in Dera Ghazi Khan District, "un#a$, "a%istan. Dera Ghazi Khan is one of the most populous cities in 7outhern "un#a$ an it is the largest istrict in "un#a$ in terms of area, $eing appro/imately 5,:6; s<uare miles 81:,7'6 %m=> in e/tent.

History
+he city &as foun e at the close of the 15th century an name after -a&a$ Ghazi Khan 0irrani, son of -a&a$ ?a#i Khan 0irrani, a Balochichieftain, &ho ha eclare in epen ence from the 1anghi Dynasty 7ultans of 0ultan. +ogether &ith t&o other Deras i.e. settlements, Dera *smail Khan an Dera @ateh Khan, it ga!e its name to Dera#at. Dera#at e!entually came into the possession of the British after the 7i%h Aar in 18'( an &as i!i e into t&o istricts9 Dera Ghazi Khan an Dera *smail Khan. )fter the partition of *n ia, many of the city.s ?in u resi ents settle in Dera&al -agar colony of Delhi, *n ia.B1C +he istrict of Ra#anpur &as later car!e out of the Dera Ghazi Khan istrict. 7ome of them also settle in !arious part of *n ia, inclu ing Bhi&ani, Delhi, 5hansi, Ranchi, )m$ala an ?ari &ar. Dera Ghazi Khan &as foun e in 15th century $y )mar a +ri$al 7ar ar of 0irani tri$e. +he ol city of Dera Ghazi Khan &as situate at the istance of 16 miles 81; %m> to&ar s east of the present city. *n 1(68, the ol city of Dera Ghazi Khan &as a$olishe ue to hea!y floo in the ri!er *n us. Resultantly the e/isting city of Dera Ghazi Khan &as came into $eing in the year 1(16. +he city is i!i e into ifferent $loc%s. +he British ruler esta$lishe colonial system in the continent an eclare D.G. Khan as istrict in the year 18'(. General Court 1an &as appointe as first Deputy Commissioner of this District. Keeping in !ie& the rapi ly increasing population of the area an eteriorating la& an or er situation istrict D.G. Khan &as i!i e in t&o istricts i.e. D.G. Khan an Ra#anpur. "resently there are t&o re!enue su$ i!ision of the District. ) tri$al $eltDpolitical area sprea along &ith &estern si e of the District.

Historical growth
Dera Ghazi Khan city of 7ohail 1eghari is situate on the &estern $an% of the *n us ri!er. *t &as foun e $y a Balouch ruler, na&a$ ?a#i Khan 0irrani, also calle 0irani Balouch, in 1'7;E he name the to&n after his son Ghazi Khan 0irrani. *n those ays, game a$oun e near Dera Ghazi Khan an the fiel s &ere green. ?a#i Khan 0irrani &as a great cattle o&ner an &as attracte to

the site $y the plentiful supply of grass. *t &as %no&n as FDera "hoolan +ha 7ehraG ue to plenty of gar ens an %astori canal, supplie $y the *n us ri!er. *n 1(6(416, this cra le of 0irrani ci!ilisation &as inun ate $y the *n us. )t that time, there &as a population of a$out =:,7:1. +he present to&n &as $uilt 16 miles 81; %m> from the ol to&n. *t &as lai out on a gri pattern comprising ;; $loc%s &ith &i e long roa s an streets. +&o open spaces &ere planne in each $loc% for social gatherings. 7ome of these ha!e $een encroache upon. +he population of the ne& e!elope to&n in 1(11 &as 18,'';. +his =.==H ecrease of population &as ue to islocation of population after the estruction of the pre!ious settlement. *n the year 1(1:, the 0unicipal Committee came in to e/istence. )t that time, the area of the to&n &as !ery small. "hysical gro&th continue an no& the area &as a$out ' s<uare miles 816 %m=>. +he ma#or gro&th of the to&n has ta%en place since 1('7. +he to&n has largely sprea to the north an southE it coul not e/pan to the &est ue to the anger of floo ing torrents such as affecte the to&n in 1(55. ?o&e!er, gro&th has also ta%en place in the eastern si e. )lmost all of the ne& e!elopments in north an east of the planne to&n are haphazar ly $uilt. +he e!elopment in the to&n from 1('7 to 1(58 remaine slo&, ue to lac% of transportation an communication facilities. Inly a $oat $ri ge on the ri!er *n us in &inter season an steamer ser!ice for summer season lin%e Dera Ghazi Khan &ith the rest of the "un#a$. +aunsa Barrage on ri!er *n us &as complete in 1(5: an the pace of e!elopment gaine momentum. During the last 5 years, 7= in ustrial units &ere esta$lishe . Ghazi +e/tile mills is another attempt to esta$lish a hea!y in ustrial comple/ in or er to raise the economic $ase of the to&n.

Languages
7arai%i is the main language spo%en in this region. Ither languages that are spo%en inclu e 3r u, Balochi, "un#a$i, "ashto, an 7in hi.

Geography and climate

Dera Ghazi Khan is locate at :6.6:J - an 76.:8J E. +he o!erall climate of the city is ry &ith scanty rain fall. +he &inter is not !ery col an the climate is hot uring the remaining part of the year, $ut it is !ery hot in summer. +he temperature uring summer is usually a$out 115 K@ 8'; KC>. Ahile uring &inter season the mercury goes o&n as far as '6 K@ 8' KC>. +he irection of the &in s $eing -orth47outh through out the year. Due to $arren mountain of Koh47uleman an san y soil of the area, &in storm are !ery common in 7ummer season especially in 5uly4)ugust "erio . +he 7ummer season of the istrict usually touches the highest point of temperature is "a%istan.

I.

PRO,ECT DESCRIPTION

;7 )$e Dera "$azi 1D"2 #$an ,ural Development !ro/ect 1t$e !ro/ect2 in !akistan is in t$e D" #$an and ,a/anpur districts of t$e central province of !un/ab: along its sout$ern fringe7 *t appraisal: rural poverty in t$e province &as $ig$est in t$e districts of D" #$an 1&it$ =FI of t$e rural poor in t$e province2 and Ba$a&alpur 14BI27 )$e !ro/ect &as designed particularly for t$e poorest rural populations in 1i2 t$e rain(fed plains: 1ii2 rain(fed $ills: and 1iii2 canal(irrigated areas of t$ese t&o districts7 * survey done during appraisal revealed a rural poverty incidence of about EAI in t$e rain(fed plains and $ills: and about D5I in t$e canal(irrigated areas7 =7 )$e !ro/ect &as intended to increase rural incomes and employment: and improve t$e ?uality of life of t$e population7 "iven t$e areaKs potentials: t$ese ob/ectives &ere to be ac$ieved by 1i2 improving irrigation and road infrastructure: 1ii2 developing communities: 1iii2 providing financial services: and 1iv2 providing institutional support t$roug$ organizational and skills training for beneficiaries in village communities7 )$e !ro/ect $ad t$e follo&ing components and scope of &orkH 1i2 %rrigation improvementH:1a2 re$abilitating temporary diversions and lining &orks in perennial $ill torrent net&orks: 1b2 developing ;55 &ater users associations 1W0*s2 and improving ;55 &atercourses 1WCs2 in $ill torrents: and 1c2 installing ;55 tube &ells and improving t$e related WCs in fres$&ater zones7 Community development 1CD2H 1a2 mobilizing and strengt$ening B55 community organizations 1COs2M and 1b2 identifying: prioritizing: and implementing CD subpro/ects 1to be done by t$e communities t$emselves27 ,ural roadsH upgrading of about ;DA km of rural roadsM 'inancial services 1' 2H 1a2 mobilizing village savings and credit organizations 1 COs2: 1b2 financing sub(loans: 1c2 mobilizing savings: and 1d2 providing training7 %mplementation supportH consultancy services and incremental administration support for t$e purpose of 1a2 mobilizing and strengt$ening beneficiary W0*s: COs: and COs in t$e villagesM and 1b2 designing and supervising t$e infrastructure construction and strengt$ening t$e pro/ect management unit 1!M027 II. A. EVAL%ATION O" DESIGN AND I)PLE)ENTATION

1ii2 1iii2 1iv2 1v2

Rele#ance o Design and "orm!lation

47 )$e ob/ective of increasing rural incomes and employment: and improving t$e ?uality of life especially for &omen: &as consistent &it$ t$e ne& operation strategy prepared by t$e *sian

Development Bank 1*DB2 for !akistan in ;<<A: &$ic$ &as centered on $uman development and: above all: on poverty reduction and on t$e improvement of t$e status of &omen7 %n agriculture and rural development: *DBKs strategy at appraisal &as focused on rural development pro/ects in more back&ard areas &it$ $ig$ poverty: &$ere better use of natural and $uman resources &ould lead to economic gro&t$7 )$e c$oice of t$e pro/ect area &as dictated by poverty incidence and t$e geograp$ic focus of *DBKs sector strategy7 )$e design &as consistent &it$ t$e strategic ob/ectives of t$e "overnment of !akistanNeconomic and social development: greater private sector participation: improved agricultural production: more efficient use of increasingly scarce irrigation &ater: rural development: reduced poverty: &ider coverage of basic infrastructure 1including rural roads2 for more accessible services: and environmental and social sustainability7

F7 *t completion: t$e !ro/ectKs design and ob/ectives &ere still relevant and consistent &it$ *DBKs country strategy;: emp$asizing sustainable pro(poor gro&t$ t$roug$ rural development and infrastructure development7 )$e C ! also stressed inclusive social development: particularly improvements in social service delivery systems7 *ccordingly: t$e !ro/ect &as designed to encourage communities to participate in subpro/ect implementation and operation7 A7 )$e "overnment is no& pursuing a &ell(designed: multi(pronged poverty reduction strategy to generate employment and build infrastructure in rural and lo&(income urban areas by increasing t$e access of t$e poor to basic services: microcredit: and social safety nets7 )$e !ro/ect design &as in line not only &it$ t$is strategy but also &it$ t$e "overnmentKs Medium()erm Development 'rame&ork =55A=5;5: &$ic$ is focused on t$e rural sector and specifically on en$ancing t$e asset o&ners$ip of t$e poor: strengt$ening t$e nonfarm sector: promoting t$e participation of t$e rural population in development: improving rural financial markets: and developing t$e $uman resources of rural development institutions7 B7 )$e components and activities of t$e !ro/ect: beneficiary selection: and stake$older participation and consultation: as designed at appraisal: &ere all sound7 * particular strengt$ of t$e design &as t$e emp$asis on building t$e capacity of COs and increasing t$e participation of beneficiaries in pro/ect planning: design: and implementation7 Decentralizing t$e management of operation and maintenance 1O&M2 and encouraging cost s$aring by communities dramatically c$anged t$e development model for t$e area7 )$e !ro/ect assisted in 1i2 surface and subsurface irrigation: 1ii2 WC lining: 1iii2 soil and &ater conservation: 1iv2 $ill torrent management: and 1v2 livestock and agriculture productivity improvement7 )$ese activities $elped develop and $arness t$e areaKs agriculture: livestock: and &ater potential7 )$e rural roads component gave farmers better access to markets and services7 )$e ' component broug$t t$em economic empo&erment t$roug$ muc$(needed cas$ at affordable interest rates at t$eir doorstep: &it$ &$ic$ t$ey could buy good(?uality inputs: sell t$eir produce at t$e rig$t time: and increase t$eir profit margins7 )$e implementation support component developed and strengt$ened COs and W0*s: and intensified net&orking: t$us creating social capital and contributing to improved services by t$e line agencies in t$e communities7 Capacity building and skills training of COs led to more /obs7 )$e provision of drinking &ater: sanitation: and village infrastructure improved t$e ?uality of life of t$e village communities7 "enerally: all t$e pro/ect activities &ere in line &it$ t$e needs of t$e area and served t$eir purpose effectively7 D7 )$e implementation arrangements at appraisal relied $eavily on t$e ability of t$e %mplementing *gencies 1%*s2 to implement t$e !ro/ect: &it$out dedicated support or decentralized aut$ority7 During implementation it &as realized t$at t$e %*sK capacity $ad been overrated and t$eir need for implementation support $ad been taken too lig$tly7 )$e devolution of most %*s to t$e district level: under t$e -ocal "overnment Ordinance 1-"O2 of =55;: magnified t$e %*sK lack of capacity7 imilarly: t$e costs and size of certain subpro/ect components $ad been miscalculated: and invalid assumptions $ad been made about t$e average size of t$e COs7 )o address t$ese issues and to meet t$e beneficiariesK targets as anticipated at appraisal: *DB made minor c$anges in t$e cost category allocations: implementation arrangements: and scope of t$e !ro/ect during implementation7 ,egistering t$e COs mobilized for t$e !ro/ect as community citizen boards under -"O =55; gave t$em access to more resources and ensured t$at t$e social capital of t$e !ro/ect &as mainstreamed7

E7 *t completion: t$e design of almost all !ro/ect components remained relevant and consistent &it$ current approac$es to rural development7 Co&ever: t$e success of t$e
;

*DB: =55= Country Strategy and Program (CSP) 2002-2006: Manila

4 implementation &as due primarily to t$e dedicated and relentless support of t$e E+ecuting *gency 1E*2 and its !M0: assisted by a nongovernment organization 1."O2: rat$er t$an t$e performance of t$e %*s 1line departments27 B. Pro&ect O!t'!ts

<7 )$e planned and ac$ieved outputs of t$e !ro/ect are summarized in a table in *ppendi+ ; and discussed belo&7 ;57 Irrigation Im'ro#ement. )$is component comprisedH 1i2 surface irrigation: and 1ii2 irrigation7 )$e ac$ievement of outputs under t$e surface irrigation subcomponent &as only partly satisfactory7 On t$e rain(fed plains: t$e !ro/ect &as to support small(scale irrigation improvements: to increase t$e efficiency of &ater use at t$e @e$ova and #a$a $ill torrents: by 1i2 re$abilitating t$e irrigated command area of about B:F;5 $ectares 1$a2: and 1ii2 developing about =:<;5 $a of unirrigated land7 )$e appraised activities &ereH 1i2 minor improvements in temporary diversion $ead&orks and structures at @e$ova: and t$e strengt$ening of eart$&orks in t$e #a$a main c$annelM 1ii2 t$e partial lining of t$e main supply c$annelM and 1iii2 t$e formation of about ;55 W0*s: and t$e improvement of about ;55 WCs t$roug$ t$e lining of one t$ird 1455 km2 of t$eir collective lengt$7 )$e improvement of t$e cross(drainage: diversions: and eart$&orks of t$e #a$a $ill torrent broug$t an additional F:EAF $a of unirrigated land under t$e #a$a command7 But only ;5 WCs 145 km in total lengt$2 &ere lined: improving &ater flo&s to about F55 $a of land7 Emerging &ater rig$ts issues in @e$ova: lo& demand for WCs: and lining &orks already carried out by t$e !un/ab government on canals in #a$a before t$e !ro/ect led to a reduction in t$e scope of activities7 )$e %* could not provide reasonable alternatives to @e$ova: despite repeated consultations and re?uests by *DB7 !ro/ect efforts at WC development &ere stopped in December =55F at t$e re?uest of t$e !un/ab government to facilitate implementation t$roug$ a national program: &$ic$ follo&ed a slig$tly different approac$7 'unds &ere allocated by t$e !un/ab government for t$is program: and &ork on all t$e remaining A5 WCs in #a$a $as been completed7 ;;7 )$e ac$ievement of outputs under t$e irrigation subcomponent &as satisfactory7 )$e support for irrigation in t&o ma/or fres$&ater zones on t$e rain(fed plains &as designed to involve 1i2 forming about ;55 W0*s: 1ii2 installing ;55 tube &ells 1D)Ws2: 1iii2 improving about ;55 WCs: and 1iv2 monitoring t$e rec$arge7 )$e ac$ievements e+ceeded t$e original targets in several respectsH ;4B W0*s &ere formed: and t$ey completed &ork on ;4B D)Ws and F5 WCs7 Work on t$e remaining WCs $as been completed &it$ government funding: as e+plained in para7 ;57 !iezometers &ere installed in t$e tube &ells to allo& t$e monitoring of t$e ground&ater level during implementation7 .o reduction in t$e &ater table &as noted: and t$e Department of %rrigation and !o&er 1D%!2: t$e %* for t$is component: continues to monitor t$e &ater table7 )$e irrigation component cost >47D million: compared &it$ >A million estimated at appraisal7 ;=7 Comm!nit$ De#elo'ment. !rogress in ac$ieving t$e outputs of t$e CD component &as $ig$ly satisfactory7 )$e !ro/ect &as designed to respond to priority CD &orks identified and prioritized during t$e implementation by t$e communities t$emselves: &it$ t$e $elp of a facilitating nongovernment organization 1."O27 )$e activities in t$is component &ere grouped under five $eadingsH 1i2 $ill torrent management: 1ii2 soil and &ater conservation: 1iii2 agricultural production: 1iv2 livestock production: and 1v2 village and community infrastructure improvement7 )$e activities: as designed: included mobilizing and developing t$e capacity of B55 COs averaging =A members eac$ 1for a total of ;A:555 members2M F5I of t$ese organizations &ere to be &omenKs or mi+ed COs7 *t completion: more t$an ;:;;5 COs &it$ an average

members$ip of ;F members eac$ 1for a total of ;A:AB5 members2 $ad been mobilized: and =AI &ere all(&omen COs7 %n total: ;:4<E CD subpro/ects &ere completed at an average cost of >B:;BD: as against >=5:555 envisaged at appraisal7 *s appraised: t$e CD subpro/ects and plans &ere prioritized and implemented by t$e communities concerned and facilitated by t$e ."O7 *ppendi+ = lists t$e activities in t$is component7 *bout one t$ird &ere categorized as productive investments and anot$er t$ird as social sector investments 1provision of drinking &ater: sanitation: community $alls: etc727 )$e cost of t$is component &as >;47D million: as against >;D7= million estimated at appraisal7 ;47 R!ral Road %'grading. !rogress in ac$ieving t$e outputs of t$e rural road component &as $ig$ly satisfactory7 )$e !ro/ect &as designed to upgrade about ;DA km of rural roads7 *t completion: 4E< km of road $ad been upgraded 1*ppendi+ 427 )$e increase in scope &as approved by *DB at t$e re?uest of t$e !un/ab government $alf&ay t$roug$ t$e !ro/ect: given t$e lo& road(to(population and road(to(area ratios in t$e target area: and t$e need to cover t$e appraised target population of ;74 million7 )$e construction specifications for t$e roads &ere upgraded under t$e !ro/ect to meet t$e $ig$er specifications re?uired for durability and minimum maintenance: as envisaged at appraisal7 )$is subcomponent cost >=47F million: compared &it$ >;F74 million estimated at appraisal7 )$e increase in cost &as due mainly to t$e increase in t$e scope of t$e component7 )$e cost per kilometer of road &as significantly lo&er 1by =EI2 t$an t$e appraisal estimate7 ;F7 "inancial Ser#ices. !rogress in ac$ieving t$e ' component outputs &as $ig$ly satisfactory7 )$e !ro/ect envisaged support for t$e .ational ,ural upport !rogram 1., !2N an ."O t$at &as concerned mainly &it$ t$e social mobilization of t$e poor: including &omenN and t$e provision of ' t$roug$ ;:555 village COs 1$alf of &$ic$ &ere &omenKs COs2 &it$ a total members$ip of =A:5557 )$e ., ! &ould be e+tended a credit line of >=7BD million: and more t$an 4B:555 recycled sub(loans &ould be financed over a A(year implementation period7 )$e sub(loans &ere e+pected to average >;A5 eac$ and to $ave a recovery rate of over <5I7 )otal outstanding savings &ould amount to >455:555 by t$e end of t$e !ro/ect7 )$is component also included management training for about =:555 CO leaders 1t&o per CO2 and skills training for about F:555 ot$er members7 *t completion: t$e ., ! $ad 1i2 mobilized more t$an ;:F<F COs 14FI of &$ic$ &ere &omenKs COs2 &it$ a total members$ip of about =A:555: and 1ii2 provided ;;5:555 sub(loans using a credit line of >=7BA million over a D(year implementation period7 )$e loans averaged >=4A eac$ and $ad a recovery rate of <<IM total outstanding savings amounted to >;75F million7 )$e ."O provided management training to more t$an =:E55 CO members and skills training to anot$er ;=:A55 members 1*ppendi+ F27 )$is subcomponent cost >=7E million: compared &it$ >47; million estimated at appraisal7 ;A7 Instit!tional S!''ort. )$e !ro/ect &as designed to provide institutional support to t$e beneficiary W0*s: COs: and COs in t$e villages to enable t$em to prepare investment programs t$roug$ participatory approac$es: implement t$e !ro/ect: establis$ a monitoring and evaluation system: and update and maintain databases relevant to t$e system7 )$e !M0 envisaged $iring ."Os for about E55 person(mont$s to set up and strengt$en t$e COs: W0*s: and COs7 Consultants to be $ired in t$ree packages for a total of about B5 person(mont$s &ould also assist t$e !M0 and t$e relevant %* in designing roads and supervising construction: establis$ing a benefit monitoring and evaluation 1BME2 system for t$e !M0: and preparing simple legal contracts bet&een t$e %*s and beneficiary organizations7 * total of ;:F;5 person(mont$s of ."O services &ent into t$e formation and strengt$ening of ;:;;5 COs: =55 W0*s: and ;F<F COsM DE person(mont$s of consulting services: into t$e design of roads and construction supervisionM and A< person(mont$s: into t$e establis$ment of baseline data and t$e conduct of BME studies7 * simple legal contract bet&een t$e %*s and beneficiaries &as

developed by t$e !M0 &it$out t$e $elp of consultants7 )$e cost of t$is component &as >F7B million: as estimated at appraisal7 !erson(mont$s $ad to be added because t$e scope of t$e services $ad been underestimated during appraisal and t$e CD and rural roads components $ad increased in scope7 Co&ever: t$e overall cost of t$e subcomponent did not increase7 ;B7 )$e above c$anges in t$e cost and t$e scope of individual components $elped ac$ieve t$e !ro/ectKs ob/ectives and cover t$e ;74 million beneficiaries envisaged at appraisal7 )$ese c$anges $ad only a minor impact on t$e implementation sc$edule since effective measures &ere takenN t$e number of !M0 staff and logistical resources &ere increasedNto avoid delays in implementation7 C. Pro&ect Costs

;D7 )$e actual pro/ect cost &as >FE7F million: compared &it$ >A=7= million estimated at appraisal7 1)$e appraised and actual pro/ect costs are in *ppendi+ A72 )$e CD and irrigation components cost less t$an planned7 )$e saving of >47A million in t$e cost of t$e CD component &as a result of overestimation of t$e size and cost of t$e CD subpro/ects at appraisal: and insufficient community capacity to afford larger subpro/ects7 )$e saving of >;7F million in t$e cost of t$e irrigation improvement component &as due mainly to a reduction in t$e scope of t$e surface irrigation subcomponent compelled by &ater rig$ts issues: a partial overlap &it$ ot$er programs: and lack of demand for WCs7 )$e rural roads component: $o&ever: cost more t$an anticipated at appraisal7 )$e increase of >E7B million in t$e cost of t$is component &as due mainly to an increase in scope 1from ;DA km to 4E< km of road upgraded2 to benefit t$e !ro/ectKs target population of ;74 million7 Co&ever: t$e cost per kilometer of road &as significantly lo&er 1by =EI2 t$an estimated during appraisal7 )$e institutional support and ' components: on t$e ot$er $and: &ere completed &it$out any significant variation in costs7 )$us: in most cases 1e+cept for t$e irrigation component2: t$ere &as an increase in scope and yet t$e !ro/ect &as completed for less t$an t$e appraised cost7 )$e c$anges in cost $ad a positive overall impact on t$e !ro/ectKs economic and financial rates of return7 D. Disb!rsements

;E7 .o disbursement sc$edule &as developed during appraisal7 Disbursement &as initially slo& but picked up in =55= and peaked in t$e last = years 1=55A=55B2 of t$e !ro/ect7 )$e initial slo& disbursement &as due to a delayed start: &it$out a full(time pro/ect director: and t&o separate investigations into allegations of mismanagement and financial malpractice7 )$e overall impact of t$is delay &as more t$an 4 years7 ubse?uently: minor delays &ere caused by t$e revision of t$e !ro/ect documents: 1!C(%2 = : fla&s in pro/ect design assumptions: and contractorsK unresponsiveness to t$e rural roads contracts in =5547 Delays &ere also caused by -"O =55;: in vie& of t$e lack of implementation capacity in t$e districts and: in some cases: t$e lack of interest on t$e part of t$e %*s in providing t$e envisaged design and implementation support for subpro/ects7 Minor c$anges made by *DB in t$e scope of t$e !ro/ect and its implementation arrangements in eptember =55=: allo&ing t$e rural roads component to be divided into smaller procurement packages: improved implementation and disbursement7 )$e actual disbursements and contract a&ards under t$e !ro/ect are listed in *ppendi+ B7

!lanning Commission proforma %7

E.

Pro&ect Sc-ed!le

;<7 )$e implementation of activities according to t$e !ro/ectKs planned sc$edule &as only partly satisfactory7 1)$e appraised and actual implementation sc$edules are in *ppendi+ D72 *lt$oug$ t$e targets identified in t$e appraised sc$edule &ere realistic and practical: t$ey &ere based on t$e 1incorrect2 assumption t$at t$e %*s could meet t$ese targets on sc$edule 1para7 E27 )$e capacity of t$e %*s &as furt$er &eakened after t$e introduction of t$e devolution plan in =55;: &$ic$ transferred more responsibilities to %*s: in some cases &it$out giving t$em t$e additional staff and resources re?uired7 Moreover: t$e pro/ect sc$edule: &$ic$ $ad already been delayed by ;< mont$s by management issues 1para7 ;E2: &as delayed furt$er by $aving to reestablis$ t$e !ro/ectKs credibility in =55=7 )$e situation started improving in =55= and t$e !ro/ect s$o&ed ma/or progress in =554: after c$anges in t$e !ro/ectKs implementation arrangements7 )$e !ro/ect &as completed in .ovember =55B: &it$in t$e revised implementation sc$edule: &it$ an unavoidable delay of =4 mont$s carried for&ard from =555 =55;7 ". Im'lementation Arrangements

=57 )$e !un/ab governmentKs !lanning and Development Department &as t$e !ro/ectKs E*: providing overall supervision and coordination t$roug$ a !M0 establis$ed in D" #$an7 )$e pro/ect design included several %*s: in accordance &it$ t$e capacity re?uired for t$e various subcomponents7 )$e %*s &ere 1i2 t$e Directorate of On('arm Water Management 1DO'WM2: for t$e irrigation improvement component and t$e management of smaller $ill torrents under t$e CD componentM 1ii2 t$e D%!: for c$annel improvements under t$e irrigation improvement component and t$e management of larger $ill torrents under t$e CD componentM 1iii2 t$e Department of *griculture: for t$e soil and &ater conservation and agricultural production activities under t$e CD componentM 1iv2 t$e Department of -ivestock: for t$e livestock production activities under t$e CD componentM 1v2 t$e -ocal "overnment and ,ural Development Department: for village and community infrastructure improvement activities under t$e CD componentM 1vi2 t$e Communication and Works Department:1C&WD2 for t$e rural roads componentM 1vii2 ., !: for t$e ' componentM and 1viii2 t$e !M0: for t$e institutional support component7 )$e implementation arrangements at appraisal &ere based on prior e+perience in several *DB( financed area and rural development pro/ects &$ere $aving a relatively large number of %*s $ad proved &orkable and efficient as long as t$e components &ere designed in a straig$tfor&ard manner and could be implemented independently7 Co&ever: in t$e !ro/ect: &$ere t$e capacity of district %*s varied from district to district: t$is approac$ did not deliver &ell7 %n remote districts &it$ scarce $uman resources: %*s &ere $ard put to retain $ig$(?uality staff &it$out special incentives or administrative control over t$e staff by t$e district government7 )$e !ro/ect design did not foresee t$e need for dedicated implementation staff for t$e %*s: e+cept t$e DO'WM: and t$e consulting services &ere of insufficient volume to meet capacity gaps in t$e %*s7 )$is issue &as resolved during implementation by increasing t$e !M0Ks tec$nical staff &it$ t$e $elp of an incremental staff budget: to provide support to t$e %*s in design and tec$nical supervision &$erever gaps e+isted7 Co&ever: suc$ support also limited t$e %*sK involvement: and $ence defeated t$e ob/ective of building pro/ect o&ners$ip and capacity in t$e %*s7 G. Conditions and Co#enants

=;7 )$e conditions of loan effectiveness &ere met and t$e loan &as declared effective &it$in EE days of its signing7 *ll t$e covenants &ere relevant and t$e !ro/ectKs compliance &it$ key

D social: financial: environmental: economic: and ot$er implementation loan covenants &as deemed satisfactory 1*ppendi+ E27 Of t$e F< loan covenants: FB &ere met: ; &as partly met: ; is still to be met: and ; is not yet due 1recommended follo&(up actions are in para7 A<27 )$e loan covenant still to be met relates to t$e O&M of t$e roads completed under t$e !ro/ectM t$e %* $as allocated enoug$ funds in its annual O&M budget for t$is purpose7 )$e covenant t$at &as only partly met relates to t$e establis$ment and operations of t$e pro/ect coordination committee 1!CC2 at t$e divisional level: to revie& plans: address coordination issues: and resolve obstacles to implementation7 )$e !CC &as formed and met t&ice7 *fter -"O =55; &as passed: t$e divisional tier of government &as abolis$ed and coordination and planning devolved to t$e districts7 Wit$ t$e delay in t$e implementation of reforms under -"O =55; and in t$e transfer of ade?uate numbers of staff to t$e districts: t$e pro/ect steering committee 1! C2: &it$ all t$e line departments: stake$olders: and district management represented: took over t$e role of t$e !CC7 )$e ! C met regularly and performed t$is role efficiently7 )$e !M0: for its part: reported on t$e progress and ac$ievements of t$e !ro/ect to stake$olders every ;A days: to facilitate coordination7 )$e !M0 also submitted ?uarterly progress reports: audited financial statements: and t$e pro/ect completion report &ell &it$in t$e time covenanted in t$e -oan *greement: and t$e ?uality of t$ese reports &as generally acceptable to *DB7 .. Cons!ltant Recr!itment and Proc!rement

==7 Consultants &ere selected and goods and &orks &ere procured according to t$e -oan *greement 1sc$edules F and A2 and *DBKs guidelines for t$e $iring of consultants and for procurement7 %n t$e first = years t$e E* $ad problems applying t$e *DB procedures and guidelinesM $o&ever: after t$e first fe& contracts and &it$ regular guidance from *DB: t$e $iring of consultants and t$e procurement of goods and &orks &ere undertaken efficiently for t$e rest of t$e pro/ect period7 )$e consultants and t$e ."O &ere $ired in four packages7 )$e first package for B person(mont$s of design services &as a&arded to an individual consultant since fe& firms $ad e+pressed interest: given t$e small size of t$e assignment and t$e remote location of t$e pro/ect area7 )$e contract for A< person(mont$s to establis$ a BME system &as a&arded to t$e !un/ab Economic ,esearc$ %nstitute 1!E,%2: t$roug$ single(source selection 1 2 procedures approved by *DB at inception4Nagain because of t$e lack of interest from private sector firms in providing t$is service in a remote area7 'or t$e t$ird contract: a consulting firm &as $ired t$roug$ ?uality( and cost(based selection to provide D= person(mont$s of construction supervision services for t$e rural roads component7 )$e ."OKs services for community mobilization and strengt$ening and t$e ' component &ere engaged t$roug$ procedures approved at appraisal7 * contract for legal services &as also a&arded but later canceled as t$e standard contracts used for communities in similar pro/ects &ere deemed sufficient reference models for t$e !ro/ect and t$ere &as no longer a need to outsource legal services7 @ariations &ere made in t$e ."O and construction supervision services contracts to accommodate t$e increase in scope and t$e delay in implementation7 Co&ever: t$ese c$anges did not $ave any cost implicationsH all t$e consulting services contracts &ere completed at a cost of >57BB million: compared &it$ >57E< million envisaged at appraisal: and t$e ."OKs contract &as completed at a cost of >=7;= million: as against >;7<B million envisaged at appraisal7 =47 )$e civil &orks contracts for rural roads &ere packaged into seven large road contracts at appraisalM anot$er 4A km of road &ould be identified and tendered during implementation7
4

*DB7 ;<<<7 Back-to-Office Report of the Inception Paki!tan7 Manila7

i!!ion on the "era #ha$i %han Rura& "e'e&opment Pro(ect in

Co&ever: &it$ t$e delayed start of t$e !ro/ect: most of t$e roads identified at appraisal 1e+cept for t&o packages2 &ere taken up by t$e !un/ab government for implementation7 0nder t$e c$anged scope approved by *DB: t$e !M0 used t$e selection criteria approved at appraisal to identify a total lengt$ of 4B5 km of remaining and additional ne& roads7 )$e roads &ere initially packaged into large contracts 1around >; million eac$27 But in t$e surge of construction activities of national and provincial road aut$orities in t$e pro/ect area: fe& large contractors &ere available and fe&er still responded to t$e advertisements for bids7 )$e t&o larger contracts t$at &ere initially a&arded &ere delayed by negligence and lack of interest from ma/or contractors7 %n consultation &it$ *DB: t$e Borro&er divided t$e roads into smaller packages7 * total of <B small contracts &ere a&arded: and most &ere completed &it$in t$e contract period7 I. Per ormance o Cons!ltants/ Contractors/ and S!''liers

=F7 )$e performance of t$e design and construction supervision consultants &as satisfactory7 )$e consultants made staff available on(site and maintained t$eir staff presence even under difficult conditions in remote areas7 )$ey could do so because t$ey mobilized and trained local staff7 )$e overall cost estimate for t$e services &as >57;A million: but >57FE million &as re?uired to complete t$e &ork7 )$e increase in cost &as due mainly to t$e underestimation of costs at appraisal and an increase in pro/ect targets for t$e upgrading of rural roads7 =A7 !E,%Ks BME performance &as satisfactory7 )$ere &ere initial delays in collecting baseline data and producing interim reports on t$e impact assessment7 Co&ever: after !E,% made some c$anges in staff assignments: t$ese issues &ere resolved and !E,% &as able to increase t$e size of t$e baseline sample according to t$e revised scope7 !E,% delivered an impact and completion report according to t$e revised sc$edule agreed on &it$ *DB7 )$is &ork &as estimated at >57D; millionM it &as completed for >57;4 million7 =B7 *bout ;55 contracts &ere a&arded7 )$e overall performance of contractors &as generally satisfactory7 mall contractors tended to perform better t$an large contractors7 -ooking for a ?uick turnover and facing internal fund constraints: t$e small contractors &ere ?uick to mobilize and completed &orks on time7 *lmost all of t$e large contracts 1above >57A million2 &ere muc$ delayed and produced a lo&er ?uality of construction t$an t$e small contracts7 )$e a&arding of t$e larger contracts itself delayed pro/ect implementation: and t$en after t$e contracts &ere a&arded t$e large contractors &ere a ma/or cause of delay in implementing &orks7 mall local contractors also performed better because t$ey understood t$e local culture and traditions better and built rapport &it$ local communities7 *ll additional land needed for &idening roads and improving t$eir alignment &as provided voluntarily by stake$older communities7 ,oad contractors ?uoted $ig$ly competitive rates and rebuilt or improved 4E< km of roads at an average cost of >A<:555 per km against an appraisal estimate of >E=:555 per km: for a substantial saving in t$e cost of construction7 .o ma/or supply contracts &ere a&arded7 ,. Per ormance o t-e Borro0er and t-e E1ec!ting Agenc$

=D7 )$e performance of t$e !ro/ectKs E*: t$e !lanning and Development Department: &as $ig$ly satisfactory7 *fter an initial delay due to a tussle bet&een !M0 staff and t$e district administration: t$e E* &as able to manage and supervise t$e !ro/ect very effectively7 *ll policy decisions: compliance revie&s: subpro/ect processing: and approvals &ere made diligently and efficiently7 )$e E*Ks !M0 fulfilled its management and coordination targets: including t$e

< procurement and management of contracts: implementation: and monitoring and evaluation of t$e !ro/ectKs institutional support component7 )$e performance of t$e %*s: on t$e ot$er $and: &as only partly satisfactory7 ome %*sNDO'WM 1for irrigation2: D%! 1for WC development2: t$e Department of -ivestock 1for livestock production2: and t$e -ocal "overnment and ,ural Development Department 1for community development2Nlacked capacity and interest in t$e !ro/ect7 )$e !M0 $ad to mobilize its resources on most fronts for &orks t$at s$ould been implemented by t$ese %*s7 1%mplementation arrangements &ere c$anged during t$e !ro/ectKs midterm revie& to strengt$en t$e !M0Ks ability to take on t$e role of nonperforming %*s72 Co&ever: t$e ."O 1., !2 performed very &ell: effectively assisting t$e !M0 and %*s in organizing and strengt$ening COs and facilitating t$e participation of COs and W0*s in t$e implementation of t$e !ro/ect7 )$e ., ! proved fle+ible and provided stopgap support to many %*s &it$ inade?uate capacity7 Wit$ its o&n resources: t$e ., ! &as also able to continue t$e ' component during t$e period &$en !ro/ect activities &ere suspended 1=555=55;27 -ike&ise: t$e performance of t$e C&WD: t$e %* for t$e rural roads component: &as satisfactory7 )$e C&WD managed to complete 4E< km of road in t$e pro/ect area against t$e original target of ;DA km &it$in t$e e+tension period of =4 mont$s: &it$ very little e+ternal support7 2. Per ormance o t-e Asian De#elo'ment Ban(

=E7 *DBKs performance in administering t$e !ro/ect &as satisfactory7 .o delays in t$e implementation can be attributed to *DB7 Missions &ere conducted regularly: and most revisions: c$anges: and e+tensions &ere forestalled and approval &as given &ell a$ead of time7 !M0 management &as suspended by t$e "overnment after ma/or disputes bet&een !M0 staff and allegations of corruption at t$e start of t$e implementation7 *ll pro/ect activities stopped7 )$e delegation of t$e !ro/ect to t$e !akistan ,esident Mission in =555 increased close and regular consultations bet&een t$e Borro&er and *DB7 !M0 staff acceptable to *DB &ere appointed in October =55; and activities resumed7 )$e Midterm ,evie& Mission in =55F identified gaps in t$e implementation arrangements related to t$e limited implementation capacity of t$e %*s and t$e need for a c$ange in scope to cover t$e t$inly spread population to be served by t$e !ro/ect7 )$ese issues &ere resolved during t$e mission t$roug$ a c$ange in scope and in implementation arrangements7 )$e only ot$er minor delays related to disbursement during t$e t&o e+tensions of t$e pro/ect 1loan2 closing dates: &$en funds could not be transferred to t$e imprest account7 *DB acted promptly on bot$ occasions to allo& limited replenis$ments since bot$ t$e COs managing contracts and many small private contractors 1more t$an E5 &it$ contracts of less t$an >57; million eac$2 could not sustain any delays in payment by *DB7 .o disagreement &it$ t$e Borro&er on t$e terms of reference: bidding: or a&ards affected pro/ect implementation7 =<7 )$e !akistan ,esident Mission interacted regularly &it$ t$e %*7 !ro/ect staff &ere trained in pro/ect management and administration: including procurement: disbursement: and consultant $iring procedures7 )$e E* and %*s received advice and guidance daily and during *DB missionsNa practice t$at &as ackno&ledged and appreciated by t$e Borro&er7 III. A. Rele#ance EVAL%ATION O" PER"OR)ANCE

457 )$e !ro/ect remained relevant to and consistent &it$ *DBKs C ! and &it$ t$e "overnmentKs long(term plans and strategies for rural development and t$e agriculture sector:

;5

bot$ at appraisal and at completion7 %ts overall impact s$o&s t$at most of its appraised design aspects &ere relevant to and $elped increase farm productivity: created employment: increased &ater use efficiency: and increased t$e incomes of small farmers 1*ppendi+ <27 4;7 W$ile t$e design of t$e !ro/ect &as relevant: $o&ever: t$e notional targets for community sc$emes and road construction $ad been underestimated7 )$e CO targets assumed an average CO members$ip of =A per CD sc$eme7 * members$ip of only ;F &as observed at midtermNnot enoug$ to meet t$e !ro/ectKs target of benefiting ;A:555 $ouse$olds7 imilarly: t$e targets assumed at appraisal for improving rural roads &ere too lo& to serve t$e ;74 million intended beneficiaries: given t$e pro/ect areaKs scattered settlements7 *t midterm: *DB increased t$e number of CD sc$emes and t$e targets for CO formation and rural roads to respond to t$e t$in population spread: &$ile still keeping &it$in t$e overall cost of t$e !ro/ect and &it$out compromising ?uality standards7 )$ese c$anges during implementation improved t$e !ro/ectKs relevance and its capacity to reac$ t$e targeted population7 B. E ecti#eness in Ac-ie#ing O!tcome

4=7 )$e !ro/ect &as effective in ac$ieving its outcomes7 *t completion: t$e total value of production 1net of production cost2 from t$e additional $ectares broug$t under cultivation in #a$a &as estimated at >;E4:=55: for an increase of >4D7D per $a in t$e yearly gross margin 1*ppendi+ <: )able *<7B27 )$e lo& gross margin &as due mainly to seasonal variations in flo& in t$e #a$a $ill torrent and t$e related lo& cropping intensity in t$e area7 )$e total annual value of production 1net of production cost2 from t$e ;4D D)Ws of about >A7; million meant a yearly gross margin of ><4= per $a in t$e irrigated plains: compared &it$ t$e >455 per $a envisaged at appraisal7 )$is significant increase in t$e estimated gross margin &as due to t$e follo&ingH 1i2 t$e $ig$er(t$an(e+pected cropping intensities ac$ieved by farmersM 1ii2 t$e cultivation of $ig$( value crops suc$ as onionsM 1iii2 t$e availability of loans t$roug$ t$e lines of credit supported by t$e !ro/ectM and 1iv2 t$e "overnmentKs deregulation policy: &$ic$ gave farmers $ig$er compatible values for t$eir outputs: and t$us an incentive to gro& $ig$(value crops7 447 During t$e !ro/ect Completion ,evie& 1!C,2 Mission: road users indicated t$at passenger fares $ad gone do&n by almost A5I: as envisaged at appraisal7 )$e average passenger fare is e?ual to t$at c$arged to transport a F5 kilogram 1kg2 load7 )$e !C, Mission estimated t$at: on t$e average: eac$ $ouse$old no& saves >=5 in passenger fares and >F5 in cartage yearly 1*ppendi+ <: para7 ;A2: for a total of >B5Nalmost t$ree times t$e appraised estimate7 )$e increase in savings is attributed to various factorsH 1i2 t$e transfer of a larger s$are of t$e ve$icle operating cost to consumers: 1ii2 competition in t$e transport sector made possible by liberal bank leasing facilities: 1iii2 a surge in economic activity from greater(t$an(e+pected development: and 1iv2 &idespread demand for CD infrastructure7 4F7 )$e average increase in $ouse$old income for all CD sc$emes &as >=; per $ouse$old: &it$ t$e $ig$est increase reported from soil conservation structures: &$ic$ contributed an annual increase of >4=D per $ouse$old: against >=A estimated at appraisal for soil conservation measures alone7 4A7 %n addition: t$e !ro/ectKs investment in nonfarm community sc$emes and social services suc$ as drinking &ater: street paving: sanitation: and community facilities $as $elped improve living standards7 )$e provision of doorstep credit facilities $as made it economically possible for farmers to gro& $ig$(value crops: buy better(?uality inputs: and sell outputs on t$eir o&n terms7

;;

C.

E icienc$ in Ac-ie#ing O!tcome and O!t'!ts

4B7 )$e !ro/ect proved efficient in ac$ieving its planned outcomes and outputs7 %t &as completed at <4I of t$e estimated cost and &as able to ac$ieve more t$an t$e appraised targets for all components 1e+cept t$e surface irrigation subcomponent27 )$e delay of more t$an =4 mont$s in implementation did not reduce t$e overall economic internal rate of return 1E%,,2: &$ic$ &as estimated at 447AI: compared &it$ =47BI estimated at appraisal 1*ppendi+ <27 )$e met$odology adopted during appraisal &as also used in evaluating t$e pro/ect interventions at completion7 *t appraisal: E%,,s &ere estimated for t$e irrigation improvement and rural roads components but not for t$e community development: ' : and institutional support components7 )$e E%,, for t$e surface irrigation subcomponent &as evaluated at =475I against an appraisal estimate of F47=I: despite t$e reduction in scope and t$e decision not to re$abilitate t$e $ead reac$: &$ere t$e additional area allocated for $ig$(value crops 1t$e main contributor to t$e $ig$ E%,, at appraisal2 &as located7 )$e E%,, for t$e installation of D)Ws &as estimated at 4<75I at t$e design stage: and AD7EI at t$e end of t$e !ro/ect: &$en $ig$er yields &ere assumed7 )$e E%,, for t$e rural roads component &as evaluated at 4B7<IN4 percentage points $ig$er t$an estimated at appraisal7 )$e estimated combined E%,, for t$e above components: toget$er &it$ t$e cost of institutional strengt$ening: &as estimated at =47BI at appraisal: and a significantly $ig$er 447AI at completion7 )$is suggests t$at t$e e+penditure on institutional strengt$ening &as cost(effective7 4D7 *t t$e appraisal stage: no financial analysis: indicative or ot$er&ise: &as done for t$e interventions t$at &ere to be identified and managed by communities: suc$ as income(generating p$ysical infrastructure 1cattle and poultry s$eds: &are$ouses: small irrigation sc$emes: small &$eat(flour mills and sa&mills: and soil conservation structures27 )$ese &ere to be funded after t$eir viability &as assessed: during implementation7 F imilarly: t$e !ro/ect also supported t$e development of community(managed social infrastructure suc$ as community $alls: dispensaries: nonformal sc$ool buildings: small drinking &ater supply structures and ponds: link roads and street soling: and culverts and bridges7 Most of t$ese interventions $ave proved beneficial7 Co&ever: some interventions for &$ic$ t$ere &as inconspicuous demand mig$t take a longer time t$an anticipated to yield t$e desired returns7 Cattle s$eds: for instance: &ill re?uire support services: including a net&ork for milk collection and financial support for building $erds: before t$ey are fully used7 imilarly: &are$ouses are currently underused because of t$e lack of marketable surpluses of grain: and of $olding capacity for cas$ crops7 Moreover: community organizations need to be strengt$ened furt$er to manage collective inputs and market outputs7 D. Preliminar$ Assessment o S!stainabilit$

4E7 )$e !ro/ectKs operations are likely to be sustainable7 )$e !un/ab government $as s$o&n strong o&ners$ip of t$e !ro/ectKs interventions and $as e+tended t$e !ro/ectKs activities after completion: using its o&n funding and retaining all pro/ect staff and ."Os involved7 4<7 *bout ;:4<E CD sc$emes &ere implemented by communities in t$e pro/ect area7 )$ese sc$emes &ere based on t$e priority needs of COs: &$ic$ also contributed to&ard t$e cost of
F

.ational ,ural upport !rogram 1., !27 =55A7 Rura& "e'e&opment Pro(ect7 %slamabad: ., !

onitoring) *'a&uation) and Re!earch for the "era #ha$i %han

;=

construction: s$o&ing t$eir o&ners$ip7 *ccording to t$e completion report from !E,%A and t$e observations of t$e !C, Mission: more t$an <AI of t$ese sc$emes: including t$ose t$at &ere completed more t$an A years ago: are fully operational7 )$e COs &ere registered under -"O =55; to ensure continuous utilization at capacity7 F57 )$ere are minor risks to t$e sustainability of t$e road infrastructure supported by t$e !ro/ect7 )$e !un/ab government $as developed a formula under &$ic$ all roads built under t$e !ro/ect receive an annual allocation of !,s44:555 per km for O&M 1rat$er t$an t$e !,s=5:555 provided in para7 4A: sc$edule B: of t$e -oan *greement2 to sustain t$e operation and economic benefits of t$ese roads7 )$e !C, Mission observed t$at: alt$oug$ t$e roads $ad been built to $ig$er specifications and &ould re?uire less maintenance: t$e districts $ad limited capacity to use O&M funds efficiently7 )o ensure t$e sustained O&M of t$e roads: regular follo&(up by t$e district roads departments and reporting to *DB every B mont$s &as recommended7 F;7 )$e ' component is $ig$ly likely to be sustainable since t$e !un/ab government $as agreed to e+tend t$e services of t$e ."O for t$e ne+t A years: after pro/ect completion7 )$e rural finance market $as also developed in t$e area and all mainstream microfinance institutions $ave opened branc$es to capitalize on economic opportunities7 F=7 )$e agriculture and irrigation infrastructure components are likely to be sustainable as &ell7 )$e ."O $as secured funding and &ill continue to assist farmers in net&orking and market connectivity in t$e medium term7 E+tension services in t$e pro/ect area: &$ic$ started in =55B: &ill continue under *DBKs econd *griculture ector !rogram -oan 1* !-(%%2 B t$roug$ a provincial trust fund for t$e ."O and an outreac$ program for agriculture e+tension and researc$ funded by * !-(%%7 D %n addition: policy reforms under * !-(%% are promoting greater private sector participation by introducing market(based mec$anisms: and are also e+pected to encourage farmers to increase production and use farm and irrigation infrastructure effectively7 )$e D%! $as: moreover: instituted a system of allocations for O&M of irrigation systems in !un/ab: including t$e #a$a perennial $ill torrent system: t$us ensuring funding support for t$e sustained maintenance of t$e system7 E. Im'act

F47 *s envisaged: t$e !ro/ect significantly reduced poverty in t$e pro/ect area7 )$e impact evaluation studies carried out by !E,%E s$o& t$at t$e pro/ect interventions $ave successfully reduced poverty incidence by ;BI: against t$e ;5I target at appraisal7 )$e !C, Mission estimated a ><A increase in t$e annual income of t$e average $ouse$old &it$ support from t$e !ro/ect: compared &it$ >;55 estimated at appraisal 1*ppendi+ <: )able *<7;527 FF7 *ccording to t$e !C, Mission: t$e improvements in enterprises and in farm and nonfarm activities $ave increased t$e demand for bot$ permanent and seasonal labor7 *griculture and related activities alone employ about =:;;= more eac$ year: compared &it$ ;:555 anticipated at appraisal7 )$e additional employment created during construction is estimated at F:D55 person(years 1*ppendi+ <: para7 =527 *nnual employment due to t$e pro/ect activities is
A B D E

!un/ab Economic ,esearc$ %nstitute 1!E,%27 =55B7 *conomic +na&y!i! of ,ariou! Component! of the "era #ha$i %han Rura& "e'e&opment Pro(ect) Part -7 !akistan: -a$ore7 -oan .o7 ;EDDL;EDE(!*#O 'H *griculture ector !rogram -oan %% 1* !-%%2: amounting to >4A5 million e?uivalent7 * condition for t$e release of t$e second tranc$e under * !-(%%7 !E,%7 =55B7 *conomic +na&y!i! of ,ariou! Component! under the "era #ha$i %han Rura& "e'e&opment Pro(ect) Part 27 !akistan: -a$ore7

;4 e+pected to surpass t$e =:555(person mark in coming years7 )$e !C, Mission also noted t$at t$e multiplier effect of interventions &ould generate ot$er rural nonfarm activities: furt$er reducing poverty7 %n addition: by !E,% estimates: < more t$an ;A:555 formerly unemployed persons &$o received skills training under t$e !ro/ect no& contribute about !,s445 million yearly to t$e economy7 FA7 *nnual savings of about >A million &ill be realized from improved road access7 )$ese savings from reduced ve$icle operating costs &ill induce a significant fall in passenger fares and cartage c$arges7 %mproved road access &ill also encourage a s$ift to&ard t$e production of $ig$( value crops: boosting farm incomes and generating employment for t$e landless population t$at depends on dryland farming in t$e pro/ect area7 FB7 )$e !ro/ect $as $ad many un?uantifiable benefits: suc$ as t$e production of additional crop by(products and forage for animals: skills development t$roug$ training: community co$esion t$roug$ community mobilization: overall improvements in t$e ?uality of life: and t$e empo&erment of &omen and t$eir gradual mainstreaming into t$e decision(making process7 *bout 4FI of t$e C Os mobilized by t$e !ro/ect &ere &omenKs C Os: =FI of t$e credit line &as e+tended to &omen: and about one fourt$ of CD sc$emes &ere undertaken by &omenKs COs7 ince t$e pro/ect area is in a remote and &ell(entrenc$ed tribal environment: t$ese activities $ave $ad a ma/or impact on mainstreaming &omen into economic activities7 Credit provision $as largely eased financial constraints on investments in production and liveli$ood opportunities7 FD7 )$e !ro/ect &as rated a category B pro/ect: &it$ no significant environmental impact envisaged at appraisal7 ,oad construction &as undertaken mainly under small: s$ort(term contracts &it$ fe& environmental issues because of t$e s$ort construction periods and t$e strict $ousekeeping measures enforced by t$e supervision consultants7 *ny land re?uired for minor improvements in alignment &as provided voluntarily by t$e communities7 )$e only concern &as t$e possible overe+ploitation of t$e D)Ws in t$e fres$&ater zone7 )$e D%! installed piezometers in t$e fres$&ater zones &$ere tube &ells &ere installed: to monitor t$e ground&ater disc$arge7 )$e D%! $as also developed a ground&ater regulation regime to be enforced by 6uly =55D to ensure t$e optimal use and continuous regulation of t$e available ground&ater7 IV. A. OVERALL ASSESS)ENT AND RECO))ENDATIONS

O#erall Assessment

FE7 Overall: t$e !ro/ect &as a success7 %ts interventions &ere carried out efficiently and effectively and yielded an overall positive impact compatible &it$ t$e !ro/ectKs appraised design and monitoring frame&ork 1*ppendi+ ;527 )$e institutional arrangements for t$e O&M of t$e infrastructure developed under t$e !ro/ect are likely to be sustainable7 F<7 )$e !ro/ect &as implemented as conceived at appraisal7 )$e only design elements t$at &ere revised during implementation &ere 1i2 t$e number of COs to be formed: and 1ii2 t$e lengt$ of rural roads to be upgraded to cater to a t$inly spread rural population and to ac$ieve t$e target of serving ;74 million people: as defined at appraisal7 )$e scope &as reduced for t$e

<

!E,%7 =55B7 .pdating the Ba!e&ine Sur'ey of the "era #ha$i %han Rura& "e'e&opment Pro(ect7 !akistan: -a$ore7

;F

surface irrigation subcomponent because of &ater rig$ts issues in t$e $ill torrent areas and t$e completion of &orks under ot$er programs: given t$e delayed start of t$e !ro/ect7 B. Lessons

A57 * multi(sector area development pro/ect cannot be implemented effectively at t$e local level &it$out 1i2 dedicated coordination and implementation units in eac$ district: 1ii2 dedicated staff and resources for all key %*s implementing t$e pro/ect: 1iii2 district rat$er t$an provincial governments $aving administrative control of %* staff: 1iv2 %*s being $eld accountable for progress: and 1v2 a tec$nical assistance component t$at ans&ers t$e re?uirements of t$e individual districts7 A;7 )$e market(based composite rates mec$anism establis$ed by t$e !un/ab government provided a risk(s$aring mec$anism in a very volatile market for construction materials: &$ic$ allo&ed contracts to be a&arded and completed for less t$an t$e estimated costs7 Effective procurement mec$anisms of risk s$aring in unstable price conditions attract private sector participation and allo& contracts to be a&arded at compatible rates7 A=7 * key reason for t$e success of t$e !ro/ect is t$e sustained operations of W0*s: COs: and COs formed and strengt$ened by t$e !ro/ect7 )$ese organizations &ere able to sustain t$emselves mainly because of t$eir small size 1average of ;F45 $ouse$olds2 and $omogeneity of members$ip: t$e demand(driven approac$ of t$e !ro/ect allo&ing communities to set priorities: and rigorous monitoring ensuring t$at all members of t$e community &ere &illing and &ould continue to contribute funds for t$e selected priorities7 A47 ,ural support organizations 1."Os2 interested in developing t$eir o&n constituencies are muc$ more effective intermediate partners in rural development pro/ects because of t$eir interest in continuity beyond t$e pro/ects7 )$e ."O under t$e !ro/ect maintained regular interaction and follo&(up &it$ COs: W0*s: and COs and follo&ed a pragmatic approac$ to institutional strengt$ening7 %t relied on simple and maintainable rules and roles based on t$e tec$nical: management: and absorptive capacity of t$e client COs: W0*s: and COs t$at contributed immensely to t$e sustained and transparent operations of t$ese organizations7 AF7 %n demand(driven community(based pro/ects: it is useful to follo& a supply(driven approac$ at t$e start: to be able to learn and to demonstrate t$e dynamics of different types of community subpro/ects7 Communities can t$us make informed c$oices about t$eir priorities 18to see is to believe92 and at t$e same time t$e %*s can learn and improve7 AA7 %nterventions related to &omen in conservative male(dominated societies &$ere la&s and customs impede &omenKs access to opportunities &ill succeed only if t$ey are implemented after a certain level of credibility $as been establis$ed &it$ suc$ communities and if t$e delivery approac$ respects t$e local norms and culture7 Customs: beliefs: and attitudes t$at confine &omen to limited roles c$ange incrementally: and aggressive approac$es to c$ange block t$e process of c$anging t$ese roles and status of &omen altoget$er7 Men and &omen play different roles: $ave different needs: and face different constraints in responding to specific opportunities7 %dentifying t$e rig$t entry points at t$e design stage based on t$ese roles: needs: and constraints is t$e key to successful operations and t$e start of t$e c$ange process7 %n t$e remote and resource( poor area pro/ect area: t$e credit and social infrastructure proved to be effective entry points for &omenKs empo&erment7

;A

AB7 )$e !M0s t$at &ill manage rural development pro/ects in remote locations must be empo&ered &it$ fle+ible tec$nical and incremental staff support to enable t$em to respond to t$e c$anging needs and capacity gaps of t$e institutions implementing t$e pro/ects at t$e local level7 )o make %*s accountable for t$e progress of t$eir respective components: funds s$ould be allocated directly to t$e annual development budgets of t$e %*s and pro/ect targets reflected in t$eir annual development plans7 AD7 "iving preference to t$e use and strengt$ening of local capacity to implement pro/ects is a c$allenging option at t$e start of a pro/ect7 Co&ever: local staff are easier to retainNa ma/or consideration in sustained implementation in remote areas7 C. Recommendations

AE7 "!t!re )onitoring. *lt$oug$ t$e !ro/ectKs roads &ere built to $ig$er specifications t$an originally planned and s$ould re?uire less maintenance: t$e !C, Mission recommended regular follo&(up7 )$e !un/ab government $as agreed to t$e regular monitoring of t$e O&M activities in t$e districts: to ensure t$e sustained O&M of t$e !ro/ectKs road infrastructure7 Monitoring &ill be undertaken by t$e district C&WD and reported to *DB every B mont$s7 A<7 "!rt-er Action or "ollo0+%'. Most of t$e !ro/ectKs activities in t$e agriculture: livestock: and ot$er productive subsectors under t$e CD and subsurface irrigation components &ere completed in =55B7 'or t$ese investments to reac$ t$eir full productive potential: t$e e+tension services to t$e COs must continue7 0nder a recent initiative of t$e !un/ab government: livestock and agriculture e+tension services are being &idely provided in D" #$an7 )$ese activities are also being supported under * !-(%%7 )$e agriculture and livestock departments $ave committed to provide e+tension services and ot$er concessions to pro/ect COs in particular: as t$ese CO net&orks offer an ideal platform for suc$ activities7 * list and profile of pro/ect COs $as been provided to t$ese departments at t$e district level7 B57 )$e C&WD $as committed to develop a policy of incentives and penalties to ensure t$e effective use of O&M funds7 )$e !C, Mission observed t$at road s$oulders in certain areas &$ere t$e soil te+ture &as &eak needed to be encased in stable soil to c$eck erosion7 )$e C&WD $as agreed to undertake t$is &ork under t$e district O&M budget if erosion is observed7 B;7 Additional Assistance. )$e pro/ect area still $as very $ig$ poverty: and t$ere is great potential for &ater $arvesting and &ater management infrastructure: since &ater is t$e lifeline of most economic activities7 )$e !un/ab government $as already begun suc$ pro/ects &it$ its o&n funds and support from *DB 1)* FE5=(!*#M and C$as$ma ,ig$t Bank %rrigation !ro/ect: tage %%%: -oan ;;FB(!*#O 'P27 Co&ever: t$ere is still a large unmet demand for community and social infrastructure t$at t$e !ro/ect &it$ its limited scope and time frame could not accommodate7 * follo&(on pro/ect in t$e social sector may be &arranted7 B=7 Timing o Pro&ect Per ormance E#al!ation Re'ort. )$e pro/ect performance evaluation report can be prepared anytime after =55E to allo& t$e !ro/ectKs CD sc$emesN especially t$e grain &are$ouses: and t$e poultry and cattle s$edsNto become fully establis$ed7 Most of t$ese &ere completed in late =55B and still need time and effort to realize t$eir full potential7

Solar 'o0er3 Rs455m to be s'ent on 465 sc-emes in DG 2-an/ Ra&an'!r

-e& initiati!e to increase the num$er of $eneficiaries to 5,666 consumers in tri$al areas. By )""

"u$lishe 9 5une ==, =611

-e& initiati!e to increase the num$er of $eneficiaries to 5,666 consumers in tri$al areas. DERA GHAZI KHAN A sum o! Rs"## million would $e spent on "%# solar power generating schemes that will $e launched in the tri$al areas o! DG Khan and Ra&anpur districts to supply power to '(### consumers in the area) +he schemes &oul $e e/ecute un er the +ri$al )rea De!elopment "ro#ect 8+)D">, 0uhamma Rashee )n&ar, the +)D" superinten ing engineer, sai on +ues ay. ?e sai that 168 solar po&er schemes ha earlier $een complete in =66( an =616 in the tri$al areas of DG Khan. +hese schemes &ere operating successfully an supplying electricity to =,666 homes, he sai . +he ne& initiati!e &oul increase the num$er of $eneficiaries to 5,666 consumers in tri$al areas, he a e . FEighty per cent fun ing for the pro#ect &oul $e pro!i e $y the go!ernment an the rest &ill $e a e in $y the community.G

*ppendi+ ;

;B

PLANNED AND AC.IEVED O%TP%TS O" T.E PRO,ECT

Com'onent

Acti#ities

)TR Targets

Act!all$ Ac-ie#ed

4 Irrigation Im'ro#ement 1i2 ,e$abilitation of S!r ace Irrigation t$e command area of 1i2 Minor improvements in e+isting temporary about B:F;5 $a of diversion $ead&orks land currently and structures at receiving irrigation @e$ova: and &aterM and 1ii2 strengt$ening of development of about eart$&orks in A km of =:<;5 $a of land not #a$a main c$annelM yet receiving 1ii2 !artial lining of main irrigation &ater7 supply c$annel 1E km #a$a and E km @e$ova2M

Minor improvements in e+isting temporary diversion $ead&orks and structures at #a$a main c$annel7

Minor improvements in five e+isting temporary diversion $ead&orks and structures at #a$a $ill torrent &ere completed7

)arget scrapped as &ork &as already completed before t$e !ro/ect7 cope &as reduced to A5 WCs in #a$a only: as no &orks could be undertaken in @e$ova because of &ater rig$ts issues7

.ot done7 Work already completed before t$e !ro/ect by !un/ab government7 A5 W0*s &ere formed and ;5 WCs &it$ total lengt$ of 45 km &ere partially lined 1;5 km27 )$ere &as lack of demand because of a parallel program of t$e government: not re?uiring any up(front community contribution: under &$ic$ all remaining F5 WCs &ere completed7

1iii2 'ormation of about ;55 W0*s and improvement of about ;55 WCs &it$ one t$ird of t$e lengt$ lined 1455 km27

S!bs!r ace Irrigation 1i2 'ormation of about ;55 W0*s: installation of ;55 D)Ws: improvement of about ;55 km of WCs: and lining of about 44 km of WC lengt$M .o c$ange7 %n total: ;4B W0*s completed &ork on ;4B D)Ws: and 44 km of F5 WCs &it$ a total lengt$ of A5 km &ere lined7 )$e number of WCs &as reduced because ;5 &ere completed under a parallel program of t$e government: &$ic$ did not re?uire any up(front community contribution7

*ppendi+ ;

;D

Com'onent

Acti#ities 1ii2 Monitoring of t$e rec$arge of t$e s&eet( &ater zone: &$ere t$e tube &ells are installed7

)TR Targets .o c$ange7

7.8 Comm!nit$ De#elo'ment

Mobilization and capacity development of B55 COs 1&it$ an average of =A members eac$: for a total of ;A:555 members2: about F5I of &$ic$ &ere &omen COs or mi+ed COs: and implementation of subpro/ects identified by t$e COs in t$e follo&ing areasH 1i2 Cill torrent irrigation improvement: 1ii2 oil and &ater conservation: Acti#ities 1iii2 *gricultural production: 1iv2 -ivestock production: and 1v2 @illage infrastructure improvement

Mobilization and capacity development of ;:;55 COs 1&it$ an average of ;F members eac$: for a total of ;A:555 members2: about F5I of &$ic$ &ere &omen COs or mi+ed COs: and implementation of subpro/ects identified by t$e COs7 .o c$ange7 .o c$ange7 )TR Targets .o c$ange7 .o c$ange7 .o c$ange7

Act!all$ Ac-ie#ed )$e ground&ater &as monitored during implementation t$roug$ piezometers installed in tube &ells7 .o reduction in t$e &ater table &as noted and t$e D%!: t$e %* for t$is component: continues to monitor t$e &ater table7 %n total ;:;;5 COs 1&it$ an average of =A members eac$: for a total of ;A:AB5 members2 &ere mobilized and capacity building &as undertakenM of t$is total: =AI &ere &omen COs and <I &ere mi+ed COs7 )$ese COs implemented ;:F<E subpro/ects t$ey t$emselves identified7 == subpro/ects =;= subpro/ects Act!all$ Ac-ie#ed 4DA subpro/ects 4B5 subpro/ects F=E subpro/ects

7.7 R!ral Roads ,e$abilitate and upgrading of selected rural roads to specifications sufficient to ensure durability and minimize maintenance7 %mprovement of about ;DA km of rural roads7 %mprovement of up to F=A km of rural roads7 *bout 4E< km of rural roads &ere upgraded to $ig$er specifications as agreed at appraisal to ensure durability and minimize maintenance7

;E

*ppendi+ ;

Com'onent

Acti#ities Establis$ment of road maintenance mec$anisms7

)TR Targets .o c$ange7

Act!all$ Ac-ie#ed * road maintenance budget of !,s44:555 per km of road &as set up by t$e !un/ab government7 More t$an ;:F<F COs 14FI of t$ese &omen COs2: &it$ a total members$ip of about =A:555: &ere establis$ed7 * credit line of >=7D million &as provided to ., !: and ;;5:555 sub(loans &ere financed over D(year implementation period7 ,ecovery rate above <EI7 ."O completed management training for more t$an =:E55 CO members and skills training for ;=:A55 ot$er members7 Outstanding savings of C Os totaled >;75F million at completion7

7.9 "inancial Ser#ices ocial mobilization Establis$ment of about for group(based ;:555 village COs lending for economic empo&erment of t$e t$at reac$ about =A:555 rural members7 rural poor7 !rovision of credit line of >=7D million to ., !M financing of more t$an 4B:555 sub( loans recycled over A( year implementation period7 ,ecovery rate of <5I or above7 Management training for about =:555 CO leaders 1t&o per CO2 and skills training for about F:555 ot$er members7 Mobilization of voluntary savings totaling about >455:555 for on(lending by COs7

.o c$ange7

.o c$ange7

.o c$ange7 .o c$ange7

.o c$ange7

CO J community organization: C O J community services organizations: D)W J deep(turbine tube &ell: km J kilometer: ."O J nongovernment organization: CO J savings and credit organization: WC J &ater course: W0* J &ater users association ourceH !ro/ect Management 0nit

*ppendi+ =

;<

=5

*ppendi+ =

*ppendi+ 4

=;

CO)PLETION DATES O" R%RAL ROADS %NDER T.E D.G. 2.AN R%RAL DEVELOP)ENT PRO,ECT

Sr. No.

Road Name

Lengt:(ms;

Act!al Lengtor Com'letion :(ms;

Contractor Name

Com'letion Date

Act!al Com'leted Lengt-

A. District D.G. 2-an ; #ot Qaisrani to -itra = #utani to -ak$ani 4 C$urkan to )remman F )urutti ,o$ri to ,a/$ani A 1a2 !ull Qamber to Basti iani 1b2 .e& Culvert7 B ,ak$i Mon$ to D$oli7 D !ull 'ayaz to #ot Casso E "raveyard 1C$oti Rareen2 to D7" Canal < Cement 'actory()aunsa link road to san/ar&ala ;5 ;; ;= ;4 ;F 6$anda More to Basti #aloi Briot Mumdani to #o$ar road 6$oke Bodo to B$ati #azmi C$o&k to More 6$ungi !ul Qambar to "ovt7 !rimary c$ool *ziz *bad via Basti C$andia Bait a&ai road to Bait 'a?eer &ali Darbar Mian Mattay to "ammun &ala #ot C$utta Dra$ma road to amina !ir &ala #ot Qaisrani pacca road to basti Buzdar D$odak road to Basti -anger &ala via an&al &ala Bindi Daira $a$ road to Basti Ca/i %?bal Mar$a !acca !eer *dil road to Basti *lla$ Bak$s$ *rain7 #$ak$i amina ,oad to Basti *lla$ $adan -und to Bait $adan to C$ak Danda ,oad C$atri to Batla to #ot Qasirani -itra road Basti )ub to Basti Man/$ot$a Basti B$utta road to Basti -al &ali to Basti #an/oo &ali #$ak$i Dera ,oad to #$o/ay &ala via #$ak$i &ala and #$ugi Baig&ala Manka Basti $er Mu$ammad Buzdar to Basti Dur M7 #ac$ela C$ungi Dambra$ to Basti Cas$im Ca/ana amina C$o&k to !ull $oria

=<75B E7=A =574B D755 B7A5 5755 D7E5 A7AB =7B= =7== =7;F F755 A7DE 47A< A755

=D7E; E7=A =57;B D755 B7=5 5755 D7E5 A7AB =7B= =7== =7;F F755 A7DE 47A< F7DB

MLs ar&ar & Co MLs Manzoor Brot$ers MLs Cidayatulla$ & Co MLs ,amzan & Co MLs aleem Brot$ers MLs *lla$ Buk$s$ MLs *bdul Wa$eed MLs ,amzan & Co MLs Wa$eed & Co MLs aleem Brot$ers MLs MLs MLs MLs ,amzan ,amzan ,amzan ,amzan & Co & Co & Co & Co

45L;;L5B 45L;;L5B ;AL5FL5B ;=(;5(5B 45L5BL5A =FL54L5B 45L;;L5B 5=(;=(5F ==L;5L5F 45L5<L5F 5;(;5(5F 45L5EL5B ;FL5DL5B =AL5<L5B =AL5<L5B

=D7E; E7=A =57;B D755 B7=5 5755 D7E5 A7AB =7B= =7== =7;F F755 A7DE 47A< F7DB

MLs ,amzan & Co

;A ;B ;D ;E ;< =5 =; == =4 =F =A =B =D

B755 F7<5 F755 =7AF =7AB =7<B 4755 =7DE 47=5 F755 A7=A 47A5 =74E

A7DD F7<5 F755 =7AF =7AB =7<B 4755 =7=4 47=5 F755 A7=A 47=< ;7E4

MLs ,amzan & Co MLs ,amzan & Co MLs ,amzan & Co MLs Cassan Ma$mood MLs Da&n Cons Co MLs Da&n Cons Co MLs Da&n Cons Co MLs Da&n Cons Co MLs Da&n Cons Co MLs %ftik$ar & Co MLs 6am Brot$ers MLs Ca/i "$ulam ar&ar and Co MLs Ca/i "$ulam ar&ar and Co MLs Ca/i "$ulam ar&ar and Co MLs Wa$eed & Co MLs Wa$eed & Co

=AL5<L5B =AL5<L5B =AL5<L5B 45L5EL5B ;4L54L5B ;EL54L5B =BL54L5B =BL5FL5B =DL54L5B =DL5FL5B =BL5BL5B 45L;;L5B =AL5<L5B

A7DD F7<5 F755 =7AF =7AB =7<B 4755 =7=4 47=5 F755 A7=A 47=< ;7E4

=E =< 45

=7B5 47FF =745

=74< 47F= =745

=AL5<L5B =BL5FL5B ;=(54(5B

=74< 47F= =745

==

*ppendi+ 4

Sr. No.

Road Name

Lengt:(ms;

Act!al Lengtor Com'letion :(ms; =755 =755 47=5 ;755 =7A5 4755 =755 47<= =7E5 47BA

Contractor Name

Com'letion Date

Act!al Com'leted Lengt=755 =755 47=5 ;755 =7A5 4755 =755 47<= =7E5 47BA

4; 4= 44 4F 4A 4B 4D 4E 4< F5

Cyder C$o&k 1D7"7 C$oti ,oad2 to basti "ud !ur Manka Canal to C$it irkani via Basti -urk$ay&ala ,as$eed *bad 1Multan ,oad2 to C$a$ amandary &ala -alay &ala .ai &ala via "$ousabad to Basti 6uma Wakilan &ala to .ala amendri &ala via $a$il &ala %ndus Cig$&ay to .oorpur 6am&ani 6$oke 0tra 6$ak$ar %mam Wasay &ala to Moc$i &ala via D$ole &ala Mamoori #ot C$utta ,oad to basti #appar %ndus $ig$&ay 1C$o&k C$uratta2 to .ational Cig$&ay 1Mustafa C$o&k2 C$oti "rid tation to Basti "ulzar C$andia $er Mu$ammad Buzdar to .ika )alpur1Cead Rero2 6ampur Da/al #m no7 ;F bo$ar Catti Bodla Minor .otak $eroo to Mana *$madani 6ampur da/al road #m .o7 ;5 to petrol pump .oor Mu$ammad Dubba Darri 3aray &ala to Calla &it$ link to Basti C$akar #$an "$ousabad road to Bangla $edani #ala Bait .urak$y road to Camza "adai link to Basti %?bal #$an !ull $a$ on$ar to *$med &ala via basti B$adi Ma$ar Basti Ela$i Bak$s$ to B$atti Metela Basti #$ak$i to Dra$ama #ot C$utta via Basti C$anar Mit$ay Wali to B$uc$ #ala to Basti ,amin Manka Canal to Dark$&ast Minor via Basti *bdul ,as$id C$andia

=755 47D5 474E =7A5 =7A5 4755 =7DE F7;5 =7E5 47BA

MLs Wa$eed & Co MLs Wa$eed & Co MLs Wa$eed & Co MLs *rs$ad 6amil MLs *rs$ad 6amil MLs #$an Const7 Co MLs #$an Const7 Co MLs Manzoor Brot$ers MLs Manzoor Brot$ers MLs Manzoor Brot$ers

=BL54L5B =AL5<L5B ;EL5FL5B ;DL5<L5B =EL54L5B ;AL5AL5B =AL5<L5B =AL5<L5B =AL5<L5B =AL5<L5B

F; F= F4 FF FA FB FD FE F< A5 A; A= A4 AF AA

47DE F7A5 4755 F7=D =7DF =7DF 47=A 4755 =7A5 =7DF =7DB F7=A ;7E= 47B5 47FE 899.47 A7EE =7AB 47;F B7E5 A7DB F7;D

47DE F7A5 4755 F7;A =7DF =7BE =7<A =7<5 =7A5 =7DF =7DB F7=A ;7E= 47B5 47FE 876.96 A7D< =7AB 47;F B7=5 A7DB F7;D

MLs Manzoor Brot$ers MLs Manzoor Brot$ers MLs Manzoor Brot$ers MLs Manzoor Brot$ers MLs Cafeez and Co MLs Cafeez and Co MLs Cafeez and Co MLs $af?at Mansoor MLs $af?at Mansoor MLs 6an Mu$ammad MLs %ndus ervices MLs Manzoor Brot$ers MLs Da&n Cons Co MLs %ndus ervices MLs Manzoor Brot$ers

=AL5<L5B =AL5<L5B =AL5<L5B =AL5<L5B =AL5<L5B =AL5<L5B =AL5<L5B =BL54L5B =AL5<L5B ;AL5AL5B =BL54L5B 45L;;L5B =4L5BL5B 45L;;L5B 45L;;L5B

47DE F7A5 4755 F7;A =7DF =7BE =7<A =7<5 =7A5 =7DF =7DB F7=A ;7E= 47B5 47FE 876.96

!ull ,angay Wali to 6indani road s!btotal :a; B. District Ra&an'!r ; = 4 F A B Murg$ai to #otla aid #$an Burceabad to Bait auntra Basti 6affar $a$ to Cazrat Wala Cead )allai to Basti "7 ,asool Basti .oor !ur to Basti adi? Da$a Wang(Burceabad to C$a$ Da$a

MLs *llied Const7 Co MLs Wa$eed & Co MLs Wa$eed & Co MLs aleem Brot$ers MLs *llied Const7 Co MLs *llied Const7 Co

4;L54L5A ;AL54L5A ;AL54L5A 45L54L5A ;AL54L5A 4;L54L5A

A7D< =7AB 47;F B7=5 A7DB F7;D

*ppendi+ 4

=4

Sr. No.

Road Name

Lengt:(ms;

Act!al Lengtor Com'letion :(ms; F755 F7;; =7D5 A755 4755 ;=755 F7;5

Contractor Name

Com'letion Date

Act!al Com'leted LengtF755 F7;; =7D5 A755 4755 ;=755 F7;5

D E < ;5 ;; ;= ;4

"$azi C$o&k to .alla$ aiban7 Mirran ak$i to Wang Mu$ammad&ala to Basti Mu$ammad Cussain Wadoo Mu$ammad !ur Basti Cameed to Basti Maula Bu+ Wa/ar Da/al to Carrand 1"roup(%2 Ca/ipur to ,a/anpur "$azi C$o&k to #ot )a$ir ,oad from Basti *lla$ Ditta -ak$a to $eroo road Mug$al &ala to Basti !aoli $ero road 1#$oka B$ibrian2 to !eer 6$ungi !uk$ta link road $a$ 6amal Colony via !at&ari Wal Bag$ to #arla "$amo !uk$ta "addan bund to basti #$utra "ovt7 !rimary c$ool Basti !rir$ar to ikandar !itafi Wala Basti Mustafa "ola to "ola More via Mulazim Cussain Balac$ani *?il pur road to C$o&k Qures$i to $ikar !ur via /am ,asul Bak$s$ Ca/ipur to #$alil Mak&al via 6am *fzal Burra -u?ra Mastoi *gency Basti Dr7 adi? to c$o&k Darbar bac$al 'a?ir a$ib Basti ind "abool to Basti yed *$san $amsi Dangar Quarter yed *bdul ,e$man to pull Qadra canal .oorpur Cospital to Basti Bo$ar *&iray &ala Basti Wazeer Cussain arai to Ca/ipur Basti *lla$ Buk$s$ Mac$i to /am #abir 6$abail 6uma Wa$ to Basti *lla$ Buk$s$ Mac$$i7 C$o&k -ia?at abad to Bac$ao& Bund via Basti Wa$i Malik Basti !u/abi and Dera ardar 'aiz #$an Basti Mayo to .os$era "$arbi Cyp$on )$ingana to Basti Camid "indani C$akar Buzdar to Basti Bud$ Basti Dina to Basti Cot$i %ndus $ig$&ay C$akki to Basti Ca/i "ul Mu$ammad B$ani #otla ,ubait c$o&k to .alla$ Qutab via c$ak !atiat

F755 F7;; =7D5 A755 4755 ;=755 F7;5

MLs Manzoor Brot$ers MLs *llied Const7 Co MLs Manzoor Brot$ers MLs aleem Brot$ers MLs *llied Const7 Co MLs *llied Const7 Co MLs Manzoor Brot$ers

;AL5AL5A ;AL5;L5A 45L5<L5F 45L;=L5F 45L5<L5B 45L54L5F 45L5<L5B

;F ;A ;B

47<5 =7A5 =7BE

47<5 =7A5 =7BE

MLs C7 *bdul ,aza? MLs C$7 ,iaz *$mad MLs C$7 ,iaz *$mad

;DL5FL5B 45L5FL5B ;5(5A(5B

47<5 =7A5 =7BE

;D ;E ;< =5 =; == =4 =F =A =B =D =E =<

=7A5 4755 =7A5 =7A5 B7A5 =7A5 =7A5 4755 47A5 =7DA A755 F7F5 47;5

=7A5 4755 =7A5 =7A5 B7A5 =7A5 =7A5 4755 47A5 =7DA A755 F7F5 47;5

MLs Malik M7 a//ad MLs Malik M7 a//ad MLs *llied Const7 Co MLs *llied Const7 Co MLs *llied Const7 Co MLs 6avaid %?bal & Co MLs 6avaid %?bal & Co MLs 6avaid %?bal & Co MLs *sif ana MLs $af?at Mansoor MLs Mu$ammad a//ad MLs Mu$ammad a//ad MLs 6an Mu$ammad

45L5DL5B 45L5BL5B =FL5BL5B =5L5BL5B 45L5<L5B 45L5BL5B ;=(54(5B ;=(54(5B 45L5<L5B 45L5FL5B =;L5AL5B =;L5FL5B ;FL54L5B

=7A5 4755 =7A5 =7A5 B7A5 =7A5 =7A5 4755 47A5 =7DA A755 F7F5 47;5

45 4; 4= 44 4F 4A

F755 =7A5 4755 =7A5 A755 =7<5

F755 =7A5 4755 =7A5 A755 =7<5

MLs 6avaid %?bal & Co MLs Mu$ammad a//ad MLs Mu$ammad a//ad MLs C7 *bdul ,aza? MLs 6avaid %?bal & Co MLs yed Const7 Co

;DL5BL5B 45L5<L5B 45L5<L5B ;<L5BL5B ==L5BL5B 45L5<L5B

F755 =7A5 4755 =7A5 A755 =7<5

=F

*ppendi+ 4

Sr. No.

Road Name

Lengt:(ms;

Act!al Lengtor Com'letion :(ms; =7A5 =7A5 =7A5 F755 47;5 F755 467.=< 7=>.74

Contractor Name

Com'letion Date

Act!al Com'leted Lengt=7A5 =7A5 =7A5 F755 47;5 F755 467.=< 7=>.74

4B 4D 4E 4< F5 F;

Basti *rain to Basti "$ulam Caider "opang Basti .oor Muammad Balo$ra to Basti !iran Ditta Basti !$ali to Bambka road to Basti 'au/a Miranpur !$atak to Badli ,ail&ay tation !rimary c$ool D$ora Casil to Badli ,ail&ay tation Basti Murad 6$ullan via Basti #arim Bak$s$ s!btotal :B; Total

=7A5 =7A5 =7A5 F755 A7;5 F755 46<.66 955.<=

MLs C$7 ,iaz *$mad MLs C$7 ,iaz *$mad MLs Rubair Const7 Co MLs *llied Const7 Co MLs 6avaid %?bal MLs Mu$ammad a//ad

45L5<L5B ;DL5BL5B 45L5<L5B 45L5<L5B 45L5<L5B 45L5<L5B

*ppendi+ F

=A

AC.IEVE)ENT %NDER T.E R%RAL "INANCIAL SERVICES CO)PONENT "ebr!ar$ 4>>> to No#ember 855< Gender Com'onent?Acti#it$ Detail Acti#ities )en <EA7555 ;<:A4D7555 A=7F<5 @omen A5<7555 A:4F=7555 <7<E5 Total ;:F<F7555 =F:ED<7555 B=7FD5

'ormation of aving and Credit Organizations 1 COs2 COs Members$ip aving "enerated by COs 1Million ,s72 ub(loans *gri(%nputs -ivestock Enterprise %%E Total Credit Disbursement 1Million ,s72 *gri(%nputs -ivestock Enterprise %%E a Total
a

EF:4ED7555 BAF7555 D=B7555 =7555 =6/A<>.555

;F:;5F7555 ;;:=DE7555 ;:5<57555 ;=7555 8</9=9.555

<E:F<;7555 ;;:<4=7555 ;:E;B7555 ;F7555 448/867.555

;:4<<7<F4 E7;4= <7;=< 57545 4/94A.879

DF75=4 E;7A=4 ;;75BD 575B4 4<<.<A<

;:FD47<BB E<7BAA =57;<B 575<4 4/6=7.>5>

mall infrastructure as individual enterprise7 ourceH .ational ,ural upport !rogramme

=B

*ppendi+ A

APPRAISED AND CO)PLETED COSTS O" T.E PRO,ECT )able *A7;H Detailed !ro/ect Costs :B million; At A''raisal "oreign At Com'letion "oreign

Item A. In#estment Costs 4. Ci#il @or(s a7 Construction Material Work F75; =47DA 8. Contract Management taff 7. Credit a7 Credit -ine b7 ."OH Credit and avings S!btotal :A7; 9. Domestic Cons!lting Ser#ices a7 Baseline and %mpact tudies b7 Benefit Monitoring and Evaluation Consutants c7 Contract *greement Consultants d7 Engineering Design Consultants S!btotal :A9; 6. ."O upport ervices <. Office E?uipment A. @e$icles Total In#estment Costs B. Incremental Administration Costs 4. %ncremental O&M 8. Office Over$ead 7. Watercourse urvey and Design Total Administration Costs Total Baseline Costs C. Contingencies 4. !$ysical Contingencies 8. !rice Continencies Total Baseline Costs and Contingencies ervice C$arge During Construction Total

Local

Total

Local

Total

;E7;E ;7AB F7=A ;74A =7BD 57=F =7<; 57A< 57;= 5754 57;A 57E< ;7DB 575; 57;D 457E4 F7;A 57=< 57AB A755 4A7E5 ;745 4745 F57F5 ( F57F5

F7=A

==7F= ;7AB F75; =D7<< ;74A =7BD 57F4 47;5 57A< 57;= 5754 57;A 57E< ;7<B 5754 574F 4A7BA F7== 57=< 57B5 A7;; F57D5 ;7B5 47E5 FB7;5 ;7D5 FD7E5

S S S 447EF ;7;5 S S 575F 57;4 5755 575F 57FD 57BF =7;D 575= 57;F 4D7<A S 57;5 575F 57;F 4E75<

SS SS SS B7<=

b7 Eart$ c7 -abor S!btotal :A4; F57DB ;7;5 S S =7E= 57;4 5755 575F 57FD 57BF =7;D 57;4 57F4 FE75F S 57;5 575F 57;F FE7;E

( 57;< 57;<

S =7DE

57=5 575= 57;D F7E= 575D 575F 57;; F7<5 5745 57A5 A7D5 ;7D5 D7F5

57;5 57=< ;575< S

;575<

4E75< ( 4E75<

;575< 57FF ;57A4

FE7;E 57FF FE7B4

."O J nongovernment organization: O&M J operation and maintenance7 ourceH *DBTs -oan 'inancial %nformation ystem: !ro/ect Management 0nit7

*ppendi+ A

=D

=E

*ppendi+ A

*ppendi+ B

=<

CONTRACT A@ARDS AND DISB%RSE)ENTS 1> million2

Cear

Contract A0ards Pro&ected Act!al C!m!lati#e ;7555 47555 47F45 F7A55 B7555 B7555 ;;7555 E7E55 A7ADB 574=4 57;FB 574A; =7A4E 47EAF ;475;B B7AEB 57=4B A7ADB A7E<< B75FA B74<B E7<4F ;=7DEE =A7E5F 4=74<5 4=7B=B

Disb!rsements Pro&ected 57E55 47=55 47==5 47555 A7555 A7A55 D7555 ;<7555 ;7A55 Act!al 57BAB 57;DB 574;B =7=55 ;7ADD 47DDF B744= ;47=AD =75AB C!m!lati#e 57BAB 57E4= ;7;FE 474FE F7<=A E7B<< ;A754; =E7=EE 4574FF

;<<< =555 =55; =55= =554 =55F =55A =55B =55D

ourceH *DB -oan 'inancial %nformation ystem7

45

*ppendi+ D

*ppendi+ E

4;

CO)PLIANCE @IT. LOAN COVENANTS Re erence *rticle %@: -* ection F75; Co#enant )$e Borro&er s$all cause !un/ab to carry out t$e Complied7 !ro/ect &it$ due diligence and efficiency and in conformity &it$ sound administrative: financial: engineering: environmental: rural road construction: agricultural and irrigation development: building and small(scale infrastructure construction: and institutional support practices7 %n t$e carrying out of t$e !un/ab and operation of t$e !ro/ect facilities: t$e Borro&er s$all perform: or cause to be performed: all obligations set fort$ in c$edule B to t$is -oan *greement7 )$e Borro&er s$all make available to !un/ab: or Complied7 cause !un/ab to make available: promptly as needed: and on terms and conditions acceptable to t$e Bank: t$e funds: facilities: services: land and ot$er resources &$ic$ are re?uired: in addition to t$e proceeds of t$e -oan: for t$e carrying out of t$e !ro/ect7 )$e Borro&er s$all keep t$e Bank advised of t$e progress in budgetary allocations and releases of t$e funds of t$e !ro/ect7 !rior to t$e start of eac$ fiscal year during !ro/ect implementation: t$e Borro&er s$all furnis$ to t$e Bank a draft financing plan for t$e !ro/ect in respect of !un/abKs *nnual Development !rogram7 )$e Borro&er s$all ensure t$at t$e activities of its Complied7 departments and agencies &it$ respect to t$e carrying out of t$e !ro/ect and operation of t$e !ro/ect facilities are conducted and coordinated in accordance &it$ sound administrative policies and procedures7 )$e Borro&er s$all furnis$: of cause to be furnis$ed: to t$e Bank all suc$ reports and information as t$e Bank s$all responsibly re?uest concerning 1i2 t$e -oan: and t$e e+penditure of t$e proceeds and maintenance of t$e service t$ereofM 1ii2 t$e goods and services and ot$er items of e+penditure financed out of t$e proceeds of t$e -oanM 1iii2 t$e !ro/ectM 1iv2 t$e administration: operations and financial conditions of !ro/ect E+ecuting *gency: t$e implementation *gencies: and any ot$er agencies of t$e Borro&er responsible for t$e carrying out t$e !ro/ect and operation of t$e !ro/ect facilities: or any part t$ereofM 1v2 financial and economic conditions in t$e territory of t$e Borro&er and t$e international balance(of( payments position of t$e Borro&erM and 1vi2 any ot$er matters relating to t$e purposes of t$e -oan7 Complied7 *ll t$e progress reports: audit reports: and ot$er pro/ect related reports &ere provided promptly7 Stat!s

*rticle %@: -* ection F75=

*rticle %@: -* ection F754

*rticle %@: -* ection F75F

4=

*ppendi+ E

Re erence *rticle %@: -* ection F75A

Co#enant Stat!s )$e Borro&er s$all enable t$e BankKs representatives Complied7 to inspect t$e !ro/ect: t$e foods financed out of t$e proceeds of t$e -oan: and any relevant records and documents7 )$e Borro&er s$all take all actions &$ic$ s$all be Complied7 necessary on its part to enable !un/ab to perform its obligations under t$e !ro/ect *greement: and s$all not take or permit any action &$ic$ &ould interfere &it$ t$e performance of suc$ obligations7 %t is t$e mutual interaction of t$e Borro&er and t$e Bank Complied7 t$at no ot$er e+ternal debt o&ed a creditor ot$er t$an t$e Bank s$all $ave any priority over t$e -oan by &ay of a lien on t$e assets of t$e Borro&er7 !DD s$all be t$e pro/ect E+ecuting *gency and s$all provide overall !ro/ect guidance and coordination7 )$e !M0 s$all be responsible for management and coordination of t$e !ro/ect: including all procurement and t$e approval of subpro/ects7 )$e !M0 s$all implement parts 1ii2: 1iii2 and 1iv2 of part five of t$e pro/ect7 Complied7 Complied7

*rticle %@: -* ection F75B

*rticle %@: -* ection F75D

-* c$edule @%: !aragrap$ ; -* c$edule @%: !aragrap$ =

-* c$edule @%: !aragrap$ 4

)$e !M0 $eaded by a pro/ect Director: s$all $ave an Complied7 %mplementation: !lanning: and Monitoring section and a Management and Contracts section: eac$ $eaded by a Deputy !ro/ect Director: and ade?uate support staff and e?uipment7 )$e !ro/ect Director and t&o Deputy Directors s$all $ave ?ualifications employees for t$e duration of t$e !ro/ect7 )$e %mplementing *gencies %ncludeH 1i2 DOWM: for part one 1a2 1iii2 : part one 1b2: and a portion of part t&o 1a2 of t$e !ro/ectM 1ii2 D%! for t$e c$annel improvements under !art one 1a2 1i2 and 1ii2 of t$e !ro/ect: and a !ortion of part )&o 1a2 of t$e !ro/ectM 1iii2 DO*: for part )&o 1b2 and 1c2 of t$e !ro/ectH 1iv2DO-: for part )&o 1d2 of t$e !ro/ect M 1v2 -",DO: for part )&o 1e2 of t$e !ro/ectM 1vi2 CWD: for part )$ree of t$e !ro/ectM 1vii2 ., !: for part 'our and part 1i2 of part 'ive of t$e !ro/ectM and 1viii2 )$e !M0: for parts 1ii2 : 1iii2 and 1iv2 of part 'ive of t$e !ro/ect7 Complied7 Minor e+ception &it$ regard to -",DD for &$ic$ a minor c$ange of implementation arrangement &as approved7

-* c$edule @%: !aragrap$ F

*ppendi+ E

44

Re erence -* c$edule @%: !aragrap$ A

Co#enant Stat!s Wit$in t$ree mont$s of t$e effective Date: !un/ab s$all Complied7 ! C $ad ;; establis$ t$e pro/ect steering Committee: &$ic$ s$all be meetings7 t$e overall: senior oversig$t body for pro/ect implementation7 )$e pro/ect steering Committee s$all comprise secretaries of t$e concerned departments: t$e Ceads of t$e relevant line departments and ."Os: and may include members of ot$er organizations as appropriate7 )$e pro/ect steering Committee s$all be $eaded by t$e c$airperson of t$e planning and Development Board: )$e !ro/ect steering Committee s$all meet at least t&ice a year: and s$all approve yearly and $alf( yearly implementation of t$e pro/ect7 Wit$in t$ree mont$s of t$e Effective Date: !un/ab s$all establis$ t$e !CC in D7"7#$an Division to deal &it$ operational and implementation matters and progress7 )$e !CC s$all be c$aired by t$e Commissioner: D7"7#$an Division: and s$all consist of Divisional government officers from t$e %mplementing *gencies7 ,epresentatives of ot$er private and public entities &it$ a role in t$e !ro/ect s$all also be represented on t$e !CC7 )$e ecretary of !CC s$all be t$e !ro/ect Director7 )$e !CC s$all meet at least ?uarterly: and s$all revie& plans: address coordination issues: and identity and resolve obstacles in !ro/ect %mplementation7 !artly Complied7 Only one meeting $eld during t$e initial p$ase of t$e !ro/ect7 Co&ever: as a result of devolution: t$e administrative divisions &ere abolis$ed: and t$e DCC could no longer function7

-* c$edule @%: !aragrap$ B

-* c$edule @%: !aragrap$ D

)o ?ualify for assistance under t$e !ro/ect: eac$ Complied7 component s$all satisfy selection criteria acceptable to t$e Bank7

S!r ace Irrigation -* c$edule @%: DOWM and D%! s$all &ork &it$ W0*s: &$ic$ &ill be Complied *ll W0*s !aragrap$ E organized and strengt$ened by ., ! and registered formed: strengt$ened by by DOWM at t$e District level7 ., !: &ere registered &it$ Directorate of O'WM and %rrigation Department7 -* c$edule @%: )ec$nical guidance s$all be provided t$roug$ a Complied7 !aragrap$ < DOWM field team and t$e e+isting staff of D%!7 -* c$edule @%: !aragrap$ ;5 )$e !M0 s$all approve t$e selection of c$annels and &atercourses to be improved under t$e !ro/ect based on t$e recommendations of D%! and DOWM7 Contract agreements &ill be e+ecuted bet&een t$e W0*s and t$e %mplementing *gencies: &$ereby t$e W0*s agree to procure all construction materials: complete t$e improvement &orks: properly use t$e !ro/ect funds provided: and implement all O&M activities7 DO* s$all provide e+tension services for t$is component7 Complied7 C$annels &ere recommended by D%!: &$ile DOWM seconded a team of si+ staff to t$e !M0 for &atercourse component7 )$e contracts &ere e+ecuted &it$ t$e W0*s7

4F

*ppendi+ E

Re erence -* c$edule @%: !aragrap$ ;;

Co#enant 'or t$e Watercourse %mprovements: t$e W0*s s$all contribute =5 percent of all materials paid advance: soil for eart$&orks: and all O&M7 'or t$e main c$annel improvements: t$e W0*s s$all supply soil for eart$&orks and all O&M7 %n addition: farmers s$all supply all skilled and unskilled labour for t$e &atercourse and main c$annel improvement &orks7

Stat!s Complied on all ot$er accounts e+cept labor cost for main c$annels improvement: for &$ic$ *DB provided special &eaver due to lack of affordability of COs: to s$are cost of t$e main c$annel7 Complied7

T!be0ell Irrigation -* c$edule @%: )$e implementation arrangements for t$is component !aragrap$ ;= of t$e !ro/ect s$all be similar to t$ose under !art One 1a2 of t$e !ro/ect7 -* c$edule @%: !aragrap$ ;4 )$e W0*s s$all be organized and strengt$ened by ., ! and registered by DOWM at t$e District level7 )$e W0*s s$all procure t$e tube(&ells: materials and carry out t$e re?uired &orks: including contracting for t$e drilling &orks re?uired7 )$e W0*s s$all contribute =5 percent of t$e cost of materials and installation in advance for tube(&ells and &atercourse improvement re?uired labour 1bot$ skill and unskilled2: soil for eart$&orks: and subse?uent O&M7 One DOWM field team s$all be provided to assist t$e W0*s7 DOWM s$all monitor t$e ground&ater rec$arge and ?uality in coordination &it$ W*!D*7 DO* s$all provide e+tension component7 services for t$is

Complied( W0*s $ave been organized and strengt$ened by &ater management team of !M0L., !7 W0*s s$are =5 percent cost: provide labor and soil: procure materials and carry out re?uired &orks including contracting all types of &ork7

-* c$edule @%: !aragrap$ ;F

Complied7

Comm!nit$ De#elo'ment S!b'ro&ects -* c$edule @%: )$e %mplementing *gencies: DOWM: D%!: DO*: DO-: Complied7 !aragrap$ ;A and -",DD: s$all &ork &it$ t$e COs to implement t$is component of t$e !ro/ect7 -* c$edule @%: !aragrap$ ;B )$e COs s$all be organized and strengt$ened by ., !: an e+perienced: domestic ."O: and t$e COs s$all be registered by t$e ocial Welfare Department at t$e divisional level: based on a feasibility report prepared by t$e ub(District(-evel ocial Welfare Officer7 )$e O&M arrangements s$all be conducted entirely by t$e COs7 Complied ( COs strengt$ened by ., !7 )$ese COs $ave been clustered and registered as CCBs under -"O =55;7 %ndividual registration of !ro/ect CO is not re?uired7 *bout FB million $as been saved by CO for O&M7

-* c$edule @%: !aragrap$ ;D

)$e COs s$all contribute ;5 percent of t$e cost of Complied7 materials in advance: re?uired labour 1bot$ skilled and unskilled2: soil for eart$&orks: and subse?uent O&M for t$e activities to be carried out under t$is component of t$e !ro/ect7 %n consultation &it$ t$e !CC: t$e !M0 s$all approve Complied7 t$e selection of all Community Development ub( !ro/ects to be implemented under t$e !ro/ect7

-* c$edule @%: !aragrap$ ;E

*ppendi+ E

4A

Re erence -* c$edule @%: !aragrap$ ;<

Co#enant Stat!s )$e follo&ing guidelines s$all apply to t$e Complied7 infrastructure &orks under t$is component of t$e !ro/ect7 1i2 )$e ma+imum cost for any individual ub( !ro/ect under t$is !ro/ect component: ot$er t$an $ill torrent ub(!ro/ects: s$all be t$e e?uivalent of >=5:555 at ;<<D prices: unless proposals for more costly ub(!ro/ects $ave been revie&ed by t$e !M0 and submitted to t$e Bank for approval prior to implementationM 1ii2 * representative of t$e Bank &ill participate in t$e revie& by t$e ! C of all Cill )orrent ub(!ro/ects prior to t$e approval of suc$ ub( !ro/ectsM 1iii2 *ny ub(!ro/ect s$all $ave a minimum cost of >;:555 e?uivalent and benefit no fe&er t$an ;5 $ouse$oldsM and 1iv2 )$e estimated implementation period s$all be si+ to nine mont$s: &it$ a ma+imum period of ;= mont$s7 !riority in t$e implementation of ub(!ro/ects s$all be Complied7 given to communities t$at mobilize more t$an ;5 percent of t$e cost of materials7 0sing selection criteria acceptable to t$e Bank: t$e Complied7 ."O referred to in paragrap$ ;5 above s$all identify villages and communities for assistance under t$e !ro/ect: assist Communities in determining t$e re?uired interventions using participatory tec$ni?ues: and organize beneficiaries into multiple(function COs: eac$ $eaded by a trained community mobilizer 1bot$ men and &omen volunteers from &it$in t$e village community27 Women: in particular: s$all be targeted for assistance Complied7 under t$is component t$roug$ t$e formation and strengt$ening of groups of &omen participants 1about F5 percent of t$e total number of COs2 into &omen only and mi+ed COs7 *t least one t$ird of t$e ."O village organizers s$all be &omen7 CWD s$all implement t$e upgrading and improvement of rural roads under t$is !ro/ect Component7 Complied7

-* c$edule @%: !aragrap$ =5 -* c$edule @%: !aragrap$ =;

-* c$edule @%: !aragrap$ ==

R!ral Roads -* c$edule @%: !aragrap$ =4 -* c$edule @%: !aragrap$ =F

)$e !M0 s$all approve t$e selection of all rural roads Complied7 to be upgraded or improved under t$e !ro/ect7 )$e !M0 s$all recruit t$e domestic consultants: referred to in c$edule A to t$is -oan *greement: in consultation &it$ CWD to monitor design standards and to provide construction supervision of rural roads improved under t$e !ro/ect7 )$e construction specification for t$is !ro/ect Complied7 Designs revie&ed component s$all be sufficient to ensure durability and and approved by minimize maintenance re?uirements7 Consultants: CWD: and !M07

-* c$edule @%: !aragrap$ =A

4B

*ppendi+ E

Re erence Co#enant "inancial Ser#ices -* c$edule @%: ., ! s$all establis$ t&o field units in eac$ !ro/ect !aragrap$ =B District to implement t$is component of t$e !ro/ect7 -* c$edule @%: !aragrap$ =D

Stat!s Complied7 even field units establis$ed7

)$e taff of eac$ field unit s$all carry out ocial Complied7 Mobilization and group formation: provide basic training to group members: mobilize savings: and disburse and recover credit form COs7 )$e taff s$all also monitor t$e activities of COs closely to ensure t$at 1a2 t$eir operations are in conformity &it$ t$e procedures agreed upon bet&een COs and ., !: 1b2 credit is utilized productively: and 1c2 records of transactions are properly kept7 ., ! s$all establis$ a revolving fund and allocate Complied7 recovered sub(loan principal amounts into t$e fund7 )$e resources of t$e fund s$all be utilized to finance on(lending for similar purposes to members of COs in t$e !ro/ect area7 )$e COs s$all carry out t$e initial appraisal of Complied7 applications for credit: and t$e ocial Organizers of ., ! s$all furt$er appraise t$e ub(loan proposals7 )$e members of eac$ CO s$all elect a group leader &$o s$all organize meetings and facilities lending and savings transactions7 ub(loans s$all be granted by t$e COs to members in Complied7 accordance &it$ t$e follo&ing guidelinesH 1i2 .o collateral s$all be re?uired for sub(loans: e+cept t$at eac$ sub(loan s$all be guaranteed by four members of t$e COs7 1ii2 ub(loans s$all only be granted to individualsM 1iii2 Eac$ CO member s$all $ave completed a minimum period of savings to become eligible for credit and s$ould continue saving to maintain t$eir eligibility for furt$er sub(loans7 ., ! s$all pay: as appropriate: a t&o percent margin Complied7 ,ecovery rate << of t$e recovered amount to t$e group leaders of t$e percent7 COs as an incentive to recover outstanding sub( loans7

-* c$edule @%: !aragrap$ =E

-* c$edule @%: !aragrap$ =<

-* c$edule @%: !aragrap$ 45

-* c$edule @%: !aragrap$ 4;

-* c$edule @%: !aragrap$ 4=

Women: in particular: s$all be targeted for assistance Complied7 Co&ever: =AI of under t$is component of t$e !ro/ect 1about A5 percent t$e credits &ere provided to of t$e credit provided27 &omen: based on demand and eligibility criteria7 Re+lending and On+Lending Terms -* c$edule @%: !un/ab s$all on(lend t$e proceeds of t$e -oan Complied7 )$e !un/ab on( !aragrap$ 44 allocated for !art 'our of t$e !ro/ect in local currency lent t$e loan proceeds to t$e pursuant to a subsidiary loan agreement acceptable to ."O at ;5I: &$ic$ &ere on( t$e Bank7 E+cept as ot$er&ise agreed to by t$e Bank: lent to t$e beneficiaries at t$e on(lending rate s$all not $e less t$an ;E percent per =5I out of &$ic$ =I &as annum7 paid as incentive for recovery to group leaders7

*ppendi+ E

4D

Re erence -* c$edule @%: !aragrap$ 4F

Co#enant Stat!s )$e Borro&er s$all re?uire !un/ab to cause ., ! to .ot yet due7 Co&ever: t$e repay t$e subsidiary loan one year from t$e end of t$e provisions e+ist in t$e -*7 !ro/ect7 Ongoing7 )$e District "overnment $as committed to seek re?uired funding from t$e provincial government7

O'eration and )aintenance -* c$edule @%: CWD s$all be responsible for t$e maintenance of rural !aragrap$ 4A roads improved under !art )$ree of t$e !ro/ect7 CWD s$all carry out t$e O&M of t$e rural roads on its o&n or it s$all use private sector local contractors7 CWD s$all allocate sufficient funds for O&M annually7 %n any event: CWD s$all allocate a minimum of =5:555 ,upees per #ilometer for O&M7 -* c$edule @%: !aragrap$ 4B )$e W0*s s$all be responsible for t$e O&M of t$e Watercourses and ot$er %rrigation %nfrastructure improved under !art One of t$e !ro/ect: &$ile DOWM and D%! s$all be responsible for providing )ec$nical upervision to t$e W0*s7 )$e maintenance of t$e infrastructure improved or constructed under !art )&o of t$e !ro/ect s$all be t$e responsibility of COs t$at contributed to t$eir construction7

Complied7 !rovisions e+ist in t$e memorandum of understandings signed &it$ t$e communities7 Complied7 !rovisions e+ist in t$e memorandum of understandings signed &it$ t$e communities7 Complied7 )$e %BME systems developed and implemented by t$e !M0 itself: &$ic$ &as accepted by t$e *DB7

-* c$edule @%: !aragrap$ 4D

)onitoring and E#al!ation -* c$edule @%: )$e !M0: &it$ t$e assistance of t$e implementation !aragrap$ 4E and BME consultants: s$all establis$ a BME system to monitor implementation progress of t$e !ro/ect &$ic$ s$all employ a set of indicators acceptable to t$e Bank: and assess t$e impact of t$e !ro/ect on t$e beneficiaries7 )$e BME s$all include t$e estimates of ve$icle cost savings and incremental value(added %nternal ,ate of ,eturn 1E%,,2 estimates for irrigation improvements: Community Developments and ,ural ,oads7

)id+Term Re#ie0 -* c$edule @%: * compre$ensive Midterm ,evie& s$all be conducted Complied7 at t$e end of t$e second year of t$e !ro/ect by t$e Bank !aragrap$ 4< and !DD7 En#ironmental Consideration -* c$edule @%: *dverse environmental impacts s$all be mitigated and !aragrap$ F5 appropriate environmental safeguards adopted in relation to noise: dust: air pollution: safety standards: and sanitation measures as specified by !un/abKs Environment Department7 Complied ( *s specified by t$e !un/abKs Environment Department and t$e ,,!: and included in t$e contract documents: implementation &as monitored by !M0 during construction

4E

*ppendi+ E

Re erence !*: *rticle %%: ection =75E1a2

Co#enant Stat!s !un/ab s$all furnis$ to t$e Bank all suc$ reports and Complied7 information as t$e Bank s$all reasonably re?uest concerning 1i2 t$e -oan and t$e e+penditure of t$e proceeds t$ereofM 1ii2 t$e goods and services and ot$er items of e+penditure financed out of suc$ proceedsM 1iii2 t$e !ro/ectM 1iv2 t$e administration: operations and financial condition of t$e !un/abM and 1v2 any ot$er matters relating to t$e purposes of t$e -oan7 !un/ab s$all ensure t$at !DD and t$e implementation Complied7 agencies 1i2 maintain separate accounts for t$e !ro/ect and for its overall operationsM 1ii2 $ave suc$ accounts and related financial statements 1balance s$eet: statement of income and e+penses: and related statements2 audited annually: in accordance &it$ appropriate auditing standards consistently applied: by independent auditors &$ose ?ualifications: e+perience and terms of reference are acceptable to t$e BankM and 1iii2 furnis$ to t$e Bank: promptly after t$eir preparation but in any event not later t$an t&elve mont$s after t$e close of t$e fiscal year to &$ic$ t$ey relate: certified copies of suc$ audited accounts and financial statements and t$e report of t$e auditors relating t$ereto 1including t$e auditorsT opinion on t$e use of t$e -oan *greement as &ell as on t$e use of t$e procedures for imprest account and statement of e+penditures2: all in t$e Englis$ language7 !un/ab s$all furnis$ to t$e Bank suc$ furt$er information concerning suc$ accounts and financial statements and t$e audit t$ereof as t$e Bank s$all from time to time reasonably re?uest7

!*: *rticle %%: ection =75<1a2

*ppendi+ <

4<

"INANCIAL AND ECONO)IC ANALCSES D. Introd!ction

;7 )$e Dera "$azi #$an 1D" #$an2 ,ural Development !ro/ect in t$e sout$&estern !un/ab 1t$e !ro/ect2 began in ;<<D and &as completed in =55D Wit$in t$e pro/ect boundary are t$e districts of D" #$an and ,a/anpur7 )$e main ob/ectives of t$e !ro/ect &ereH 1i2 to reduce poverty by increasing farm productivity and rural incomesM and 1ii2 to improve t$e ?uality of life by increasing access to productive: p$ysical: and social rural infrastructure and rural financial services: and by developing $uman resources and en$ancing skills7 =7 )$e follo&ing post(pro/ect economic evaluation &as made to reestimate t$e anticipated economic returns &it$ t$e use of t$e actual incremental investment costs and net benefit stream incurred and realized during implementation and foreseen after t$e !ro/ect: and to compare t$ese &it$ t$e returns estimated at t$e appraisal stage7 )$e impact of t$e !ro/ect on poverty incidence is also analyzed against t$e assumptions at t$e appraisal stage7 47 )$is economic analysis generally follo&s t$e same approac$ and met$odology t$at &as adopted at t$e appraisal stage in *ugust ;<<D7 )$e present analysis: $o&ever: benefits from t$e data provided in t$e various reports compiled by t$e !un/ab Economic ,esearc$ %nstitute 1!E,%2:;5 and discussions &it$ t$e pro/ect staff: staff of t$e .ational ,ural upport !rogram 1a nongovernment organization contracted to mobilize communities and to provide financial services2: field staff of t$e line agencies: and field observations and interaction during t$e !ro/ect Completion ,evie& 1!C,2 Mission &it$ a large array of direct and indirect beneficiaries at randomly selected community organizations7 E. )et-odolog$ and A''roac-

F7 )$e !ro/ect $ad five main components: namelyH 1i2 irrigation improvement &it$ tube(&ell irrigation and surface irrigation development subcomponentsM 1ii2 community development t$roug$ $ill torrent management: soil and &ater conservation: agriculture production: livestock production: and village community infrastructure improvementM 1iii2 rural road upgradingM 1iv2 financial servicesM and 1v2 institutional support7 A7 )$e !ro/ect &as appraised on t$e basis of its estimated economic viability vis(U(vis t$e economic internal rates of return 1E%,,s2 for t$e irrigation improvement and rural road components7 )$e cost of t$e community development and institutional support components &as e+cluded7 But t$e cost of t$e institutional support component &as considered in estimating t$e overall E%,, for t$e !ro/ect7 )$e selection criterion for t$e community development interventions &as t$e financial viability of t$e community(identified interventions7 B7 'ollo&ing t$e above approac$: t$is analysis reestimated t$e E%,,s for t$e irrigation development and rural road components: as &ell as for t$e overall !ro/ect 1by adding t$e cost of t$e institutional support component27 )$e reestimated E%,,s under different scenarios for t$e !ro/ect are provided at )able *<7;7

;5

Economic *nalysis of @arious Components of Dera "$azi #$an ,ural Development !ro/ect 1parts ; and =2: Marc$ =55BM 0pdating of Baseline urvey of Dera "$azi #$an ,ural Development !ro/ect: 'ebruary =55BM and %mpact Evaluation of Dera "$azi #$an ,ural Development !ro/ect: .ovember =55B7

F5

*ppendi+ <

".

Ass!m'tions

D7 )$e main assumptions used in t$is end(of(pro/ect financial and economic analysis &ere as follo&sH 1i2 Current prices 1=55D2 in !akistan rupees 1!,s2 &ere used for all items in t$e cost and benefit stream by converting prices &it$ t$e use of t$e gross domestic product deflator for t$e respective years7 )$e net cas$ flo& &as converted into current 0 dollars &it$ t$e use of t$e conversion rates for t$e relevant years7 %mport parity and e+port parity prices &ere estimated for t$e traded goods: after ad/usting for ta+es: duties: and any price distortions7 )$e financial and economic prices for various inputs and outputs are presented in )able *<7= &$ile t$e derivations for import and e+port parity prices are summarized in )ables *<74 and *<7F: respectively7 %n estimating import and e+port parity price: a foreign e+c$ange conversion rate of !,sB57A J >; &as assumed: reflecting t$e true opportunity cost of foreign e+c$ange7 * standard conversion factor of 57< &as used for non(traded goods7 )$is &as estimated by t$e standard computation and is in line &it$ current use in appraised pro/ects7 -abor cost &as ad/usted by a factor of 57E to reflect t$e opportunity cost of labor7 Considering t$e current demand for labor: especially in t$e construction industry: and out(migration from t$e rural areas: t$e opportunity cost of labor &as assumed at 57E rat$er t$an 57DA: as traditionally assumed7 'inancial crop budgets &ere prepared for individual crop enterprises and a model farm budget &as constructed for a ; $ectare 1$a2 farm7 )$e gross margins: based on economic prices of inputs and outputs: &ere applied to t$e area t$at &ould be cultivated &it$ t$e $elp of investments in irrigation7 *s tube(&ell irrigation is a recent development in t$e area: &$ic$ &as largely rain( fed or a cultivable &asteland: and given t$e ine+perience of t$e farmers in t$e area in irrigated agriculture: t$e full development stage &as assumed to be attained in B years7 )$e period of analysis &as assumed to be =5 years: t$e same as t$at adopted at appraisal7

1ii2

1iii2

1iv2

1v2

1iv2

1vii2

1viii2

G.

"inancial Anal$sis 4. S!r ace Irrigation

E7 *t appraisal it &as envisaged t$at t$e investment in surface irrigation structures &ouldH 1i2 re$abilitate about B:F;5 $a of land currently receiving irrigation &ater: and 1ii2 provide

*ppendi+ < F; irrigation to an additional =:<;5 $a in t$e command areas of #a$a ultan and @e$o&a7 Co&ever: after a c$ange in scope during implementation t$at e+cluded t$e re$abilitation of main diversion structures: and litigation problems at @e$o&a: t$e surface irrigation improvement &as limited to t$e #a$a ultan command area7 *t completion: an increase of F:EAF $a in cropped area &as noted in #a$a ultan alone: against a total increase in cropped area of =:<;5 $a envisaged at appraisal for t$e #a$a ultan and @e$o&a command areas combined7

<7 One $undred &atercourses 1WCs2: A5 eac$ in t$e @e$ova and #a$a ultan command areas: &ere also to be re$abilitated7 But only ;5 WCs &ere improved in t$e #a$a ultan area largely because of lo& demand: and no WC &as improved in @e$ova because of &ater rig$ts issues7 )$e remaining WCs in #ala ultan are e+pected to be improved under t$e ongoing national WC re$abilitation program: funded by t$e "overnment of !akistan7 ;57 *t completion: t$e total value of production 1net of production cost2 from t$e additional area broug$t under cultivation &as about >;E4:=557 Wit$ t$e improvement in surface irrigation structures: t$e production of sorg$um in t$e area $as increased by about D=5 metric tons 1M)2 yearly: and millet by about EF5 M) yearly7 )$e !ro/ect did not finance any improvement in surface irrigation in areas already receiving &ater: as t$ese activities &ere already under &ay &it$ government funding &$en t$e !ro/ect started7 Cence: t$e AI increase in production in t$e area already receiving irrigation &ater &as not realized under t$e !ro/ect7 ;;7 "ross margins per $ectare of cultivated crops gro&n in t$e #a$a ultan area &$ere surface irrigation supply &as re$abilitated are presented in )able *<7A7 )$e annual increase in gross margin is estimated at >4D7D5: as can be seen from )able *<7B7 *lt$oug$ a target for t$is subcomponent is not specified in t$e pro/ect frame&ork: it $as been subsumed into t$e overall target of a >455 per $ectare increase for t$e irrigation development component7 )$e increase of >4D7D5 in t$e gross margin is reasonable: given t$e lo& cropping intensity due to t$e seasonal variation in t$e &ater source: and t$e lack of demand for &atercourse improvement7 %t &as also e+pected at appraisal t$at $ig$er(production packages &ould be introduced over time in t$e area by t$e agriculture e+tension and researc$ services7 * s$ift to&ard $ig$er(value crops $as only /ust started and a substantial s$ift is e+pected in t$e ne+t =4 years: as marketing systems developed for $ig$(value crops are &ell establis$ed in t$e area and t$e demonstration effect of t$e activities being undertaken in deep turbine tube(&ells 1D)Ws2 is catc$ing on in t$is area 1para7 ;F27 Co&ever: given t$e seasonal variation in &ater availability: t$e investment in t$e s$ift to $ig$(value crops is e+pected to be limited and seasonal 1one crop only27 8. T!be+@ell Irrigation

;=7 *t appraisal it &as assumed t$at by t$e end of t$e !ro/ect about ;55 D)Ws: &it$ a command area of about F5 $ectares eac$: &ould be developed7 Eac$ D)W &as to be /ointly o&ned and managed by a &ater users association 1W0*2: consisting of about ;5;= farmers7 Eac$ developed tube(&ell &as also to be complemented by an improved WC distribution system7 By t$e end of t$e !ro/ect: about ;4D D)Ws $ad been developed and about A:FE5 $a of ne& area $ad been broug$t under cultivation7 Co&ever: only F5 WCs &ere laid according to t$e specified standardsM t$ere are plans to improve t$e rest under t$e ongoing national program 1para7 <27 ;47 'rom t$e crop budgets s$o&n in )able *<7D: and t$e estimated model farm budgets 1)able *<7E2: a total annual value of production 1net of production cost2 of >A7; million from t$e ;4D D)Ws &as estimated7 Eac$ D)W on average contributes about >4D:;<5 &ort$ of

F=

*ppendi+ <

production: given t$e average production of ;45 M) of &$eat valued at >=A:555: AF M) of seed cotton valued at >=4:444: A5 M) of onions valued at >=:5A5: and ;;A M) of fodder valued at >;:<;D7 ;F7 )$ese estimates indicate a yearly gross margin per $ectare of about ><4= on t$e irrigated plains 1tube(&ells2: compared &it$ >455 per $ectare envisaged at appraisal7 )$e significant increase in t$e gross margin estimate is due to 1i2 $ig$er(t$an(e+pected cropping intensities ac$ievedM 1ii2 cultivation of $ig$(value crops suc$ as onionsM 1iii2 availability of loans t$roug$ t$e line of credit supported by t$e !ro/ectM and 1iv2 t$e deregulation policy of t$e government: &$ic$ $as allo&ed farmers to get $ig$er value for t$eir outputs and given t$em an incentive to gro& $ig$(value crops7 7. R!ral Road %'grading

;A7 By t$e end of t$e !ro/ect about 4E< km of rural roads $ad been improved7 During t$e !C, Mission road users reported t$at passenger fares $ad decreased by almost A5I: as envisaged at appraisal7 )$e average passenger fare is t$e same as cartage for a F5 kilogram load7 )$e road users also indicated t$at on average eac$ $ouse$old saves about >=5 in passenger fare and >F5 in cartage yearly7 )$e >B5 saved is almost t$rice t$e estimate at t$e appraisal stage for various reasons: including t$e transfer of a larger s$are of t$e ve$icle operating cost to consumers because of competition in t$e transport sector resulting from t$e liberal leasing facility of t$e banks: a surge in economic activity due to greater(t$an(e+pected tube(&ell development: and &idespread demand for community development infrastructure7 9. Comm!nit$ De#elo'ment

;B7 *t appraisal it &as envisaged t$at t$e communities &ould identify community(based /ointly managed initiatives t$at accorded &it$ t$eir prioritized felt needs: organize t$eir factors of production: undertake income(generating activities: and improve t$eir ?uality of life7 * total of ;:4<E suc$ subpro/ects &ere completed out of more t$an ;D:555 identified to be financially viable7 )$ese completed subpro/ects &ereH 1i2 =5D small irrigation sc$emes suc$ as dug &ells and s$allo& tube(&ellsM 1ii2 4= soil conservation structuresM 1iii2 ;B= small &$eat(flour and multipurpose millsM 1iv2 =;E cattle s$edsM 1v2 ;F= poultry s$edsM 1vi2 ;FB farm(produce &are$ousesM 1vii2 =A sa&mills and multipurpose millsM 1viii2 ;DA drinking &ater sc$emesM 1i+2 ==A community centers: dispensaries: and sc$ool buildingsM 1+2 ;< link roads and street soling pro/ectsM 1+i2 4; culverts and bridgesM and ;B ot$er small sc$emes7 1'or details see )able *<7<27 ;D7 )$e findings of t$e impact assessment report of !E,% support t$e conclusion t$at 1i2 all t$e interventions $ave reasonably $ig$ 'inancial %nternal ,ate of ,eturns 1'%,,s2 ( ranging from =DI to BBIM and 1ii2 t$e community(based sc$emes &ill generate annual income of >;7= million: benefiting about B5:555 $ouse$olds &it$ about F;E:555 people7 1)$e actual number of beneficiary $ouse$olds and population may be less: $o&ever: as about ;5I are benefiting from more t$an one intervention and some double counting may be involved72 Moreover: t$e beneficiaries include bot$ members and nonmembers of t$e community organizations7 ;E7 )$e community development sc$emes $ave increased yearly $ouse$old income by an average of >=; per $ouse$old: &it$ t$e $ig$est increase reported from soil conservation structures: at >4=D per $ouse$old: against >=A estimated for soil conservation measures only: at appraisal7

*ppendi+ <

F4

..

Po#ert$ Red!ction Im'act

;<7 )$e overall goal of t$e !ro/ect &as to reduce poverty incidence in t$e rain(fed area of t$e D" #$an district: &$ic$ is e+tremely poor compared &it$ ot$er districts of t$e province7 )$e impact evaluation studies carried out by !E,% s$o& t$at pro/ect interventions $ave successfully reduced t$e poverty incidence to about AFI: against B5I anticipated at appraisal7 )$e !C, Mission estimates t$at t$e pro/ect support &ill increase t$e overall per capita annual income by >;47A5: or by about ><A per average $ouse$old7 'or details see )able *<7;57 =57 Discussions &it$ communities suggest t$at t$e en$anced enterprises and t$e farm and nonfarm activities $ave increased t$e demand for bot$ permanent and casual or seasonal labor7 During construction: t$e !ro/ect generated employment of about F:DF5 person(years: compared &it$ ;:555 person(years anticipated at appraisal: producing income of !,s4BB million 1>B million27 =;7 *fter t$e !ro/ect: t$e annual demand for additional labor is e+pected to be about =:;;= person(years7 Of t$is total: <55 person(years &ould be seasonal labor for farm productionM 4<5 person(years: unskilled labor for road maintenanceM and about =<5 person(years for t$e management of t$e community(based infrastructure: especially small &$eat(flour mills: sa&mills: community irrigation sc$emes: etc7 )$e additional employment &ould $ave a total annual value of about >4 million7 ==7 )$e !C, Mission also noted t$at most of t$e interventions: by virtue of t$eir multiplier effect: &ould generate additional rural nonfarm activities and furt$er reduce poverty7 %n addition: according to t$e impact evaluation study of !E,%: more t$an ;A:555 formerly unemployed persons $ave received skills training and are contributing about >A7A million yearly7 I. Economic Anal$sis

=47 'or t$e reevaluation of t$e !ro/ect interventions: t$e met$odology adopted at appraisal &as largely follo&ed7 *t appraisal: t$e E%,, &as estimated for t$e irrigation improvement and rural roads components: but not for t$e community development: financial services: and institutional support components7 )$e E%,,s estimated at appraisal and at completion &ere as follo&s7 4. S!r ace Irrigation

=F7 )$e present end(of(pro/ect analysis suggests an estimated E%,, of ==7EI for t$e surface irrigation component: against t$e appraisal estimate of F475I7 )$e difference is mainly due to t$e c$ange in scope and t$e e+clusion of t$e re$abilitation of irrigation structures in t$e $ead reac$: and t$e lack of interest of t$e community in WC development 1)able *<7;;27 8. Dee' T!be+@ell Irrigation

=A7 )$e E%,, for t$e deep turbine tube(&ells &as estimated at 4<75I at t$e design stage7 )$e end(of(pro/ect estimate is AD7EI: largely because $ig$er cropping intensity and yields &ere ac$ieved t$an &ere assumed at t$e design stage7 )$e investment is still viable: at ;=I: even if t$e costs &ere to go up by ;55I or t$e benefits to decrease by $alf 1)able *<7;=27 )$e combined E%,,s for t$e t&o irrigation subcomponents &ere estimated at F;I at t$e appraisal stage: and at ABI at completion7

FF

*ppendi+ <

7.

Roads

=B7 )$e reestimated E%,, for t$e roads component is 4B7<I: about 4 percentage points $ig$er t$an t$e appraisal estimate 1)able *<7;427 9. Total Pro&ect Viabilit$

=D7 )$e estimated E%,, for t$e !ro/ect: considering t$e costs and benefits of t$e irrigation and roads components and t$e cost of t$e institutional strengt$ening component: is 447AI: against =F75I estimated at appraisal 1)able *<7;F27
Table A>.43 S!mmar$ Base EIRRs and S0itc-ing Val!es :D; PCR A''raisal

Com'onent urface %rrigation )ube(Well %rrigation )otal %rrigation ,ural ,oads

a

Base EIRR ==7E AD7E AA7< 4B7<

Base EIRR F475 4<75 F;75 447D

Percentage Increase in Costs or EIRR o 48D V;5575 V;5575 V;5575 V;5575

Percentage Decrease in Bene its or EIRR o 48D AB75 AA75 AD75 B475

)otal !ro/ect Cost 447A =47B D575 F;75 E%,, J economic internal rate of return7 a %ncludes irrigation: roads: and institutional strengt$ening components7
ourceH pro/ect completion revie& mission7

*ppendi+ <

FA

Table A.>.83 "inancial and Economic Costs o In'!ts and O!t'!ts "inancial Cost Economic Cost Item %nit :PRs; :PRs; Cro's W$eat kgs ;5755 <7AE W$eat byproduct kgs ;7A5 ;74A W$eat seed kgs ;=755 ;;7A5 Oil seeds kgs ;B7EE ;A7;< Oil seeds seed kgs =57=A ;E7=4 ,abi fodder kgs ;755 57<5 ,abi fodder seed kgs DA755 BD7A5 Cotton kgs =A755 =E7F; Cotton seed kgs A5755 AB7E= !addy kgs D7BA E7AD !addy seed kgs <7;E ;57=< !addy byproduct kgs 57D5 57B4 ugarcane kgs ;7A5 ;755 ugarcane seed kgs ;7E5 ;7B= ugarcane fodder kgs ;755 57<5 org$um kgs ;F7D4 ;47=A org$um buproduct kgs ;755 57<5 orgum seed kgs ;E7F; ;B7AD Millets kgs ;A755 ;47A5 Millet byproduct kgs ;755 57<5 Millet seed kgs ;E7DA ;B7EE #$arif fodders kgs ;755 57<5 #$arif fodder seed kgs =F755 =;7B5 @egetables kgs ;755 57<5 @egetable seed kgs A55755 FA5755 Melons kgs ;755 57<5 Melon seed kgs E5755 D=755 Onion kgs =7A5 =7=A Onion seed kgs =F755 =;7B5 "uar kgs ;755 57<5 "uar seed kgs ;755 57<5 )ractor plo&ing !er irrigation cost 0rea D*! !esticide $rs ; bag bag !,s7 455755 F<F755 DA5755 ;:=55755 ;:555755 ;A5755 ;=5755 =A5755 =<B7F5 ;:=5=74< ;:A=E7;F ;:;55755 ;=5755 <B755

-abor 1male2 day labor 1'emale2 day D*!H Di(*monium !$osp$ate kgsH #ilograms ourcesH !C, mission estimates

FB

*ppendi+ <

Table A>.7 Im'ort Parit$ Prices :S!garcane/ %rea/ DAP/ Potas-; %rea S!garcane Et$ Amo!nt Et$ Amo!nt
a b

"ertili*ers c DAP

Potas-

Descri'tion %nit Amo!nt Amo!nt Commodit$ Price !rice in international market > t =45 ; 4;E F=; ;DD 'reig$t and insurance 1W2 > t FA ; F5 F5 F5 C%' at #arac$i port > t =DA ; 4AE FB; =;D C%'at #arac$i port !,s7 t ;B:B4E ; =;:BA< =D:EB5 ;4:;== Economic Prices !ort c$arges 1W2 !,s7 t F45 ; F45 F45 F45 -osses at port 1W2 percent ; ;BB = F44 AAD =B= W$olesalers margin 1W2 percent A EB= 4 BDB EBA F;F )ransport c$arges from port to !ro/ect area 1W2 !,s7 t DA5 ; DA5 DA5 DA5 W$olesale market value !,s7 t ;E:EFB ; =4:<FE 45:FB4 ;F:<D< !rocessing cost 1(2 !,s7 t F:=55 ; @alue of ra& material at millgate !,s7 t D:E<= ; )onnage of sugarcane re?uired 1at DI recovery rate2 kg ; AA= ; @alue of sugarcane at millgate !,s7 t ;:;5A ; )ransport c$arges to millgateLfrom &$olesale market 1(2 !,s7 ; ;55 ; ;55 ;55 ;55 %mport parity price at farmgate !,s7 ; ;:55A ; =F:5FE 45:AB4 ;A:5D< *ctual farmgate price !,s7 ; ;:A55 ; ;A:555 =F:555 ;E:555 aH ugar 1World2: %nternational ugar *greement daily price: ra&: fob: and sto&ed at greater Caribbean ports7)$e World Bank Commodity !rice Data !ink $eet ( Marc$ =55D bH 0rea: Black ea: bagged: spot: ibid cH D*! 1diamonium p$osp$ate2: standard size: bulk: spot: fob: 0 "ulf: ibid dH !otasium c$loride 1muirate of potas$: standard grade: spot: fob @ancouver: ibid C%'HCost %nsurance on 'reig$t: >H 0nited tates Dollars: tH metric tons: kgH kilograms: !,sH !akistani ,upees ourcesH !C, mission estimates and as provided above
Table A>.9 E1'ort Parit$ Prices Descri'tion Commodity price !rice in international market Quality ad/ustment factor 'reig$t and insurance 'OB at #arac$i port %nit > percent > > Padd$a @-eatb Et$ Amo!nt Et$ Amo!nt t E= t 4=4 =BF 5 t <A t Cottonc Et$ Amo!nt ;:=E< ;:;5F 5

;<< t ;E< EB 5 t

t =BF t ;E< t ;:;5F 'OB at #arac$i port !,s7 t ;A:<<< t ;;:FF4 t BB:D<F Economic prices !ort c$arges 1(2 !,s7 t F45 t F45 ; F45 -osses at port 1(2 percent = 4=5 = < ; F W$olesalers margin 1(2 percent A E55 A AD= A 4:4F5 )ransport c$arges from pro/ect area to port 1(2 !,s7 t DA5 t DA5 t DA5 E+millL&$olesale market value !,s7 t ;4:B<< t <:BE4 t B=:=D5 @alue of paddyLseed cotton percent BB <:5F= 44 =5:AF< @alue of byproduct 1W2 !,s7 t FA= t E:<;5 Milling cost 1(2 !,s7 t E=5 t <A5 @alue at &$olesale marketLmillgate !,s7 t E:BDF t <:BE4 t =E:A5< )ransport c$arges farm to &$olesale market mill gate 1(2 !,s7 t ;55 t ;55 t ;55 E+port parity price at farmgate !,s7 t E:ADF t <:AE4 t =E:F5< *ctual farmgate price !,s7 t D:BA5 t ;5:555 t =A:555 aH )$ai: AI broken: W,: milled indicative price based on &eekly surveys of e+port transactions 1indicative survey price2: government %ncludes value of broken rice 1;;I2: tips 1AI2: and $usk 1=FI2: )$e World Bank Commodity !rice Data !ink $eet ( Marc$ =55D bH W$eat 0 : C,W: ibid c Cotton * %nde+ .e& Definition: ibid 'OBH'ree on board: >H 0nited tates Dollars: tH metric tons: kgH kilograms: !,sH !akistani ,upees ourcesH !C, mission estimates and as provided above

*ppendi+ <

FD

Table A>.6 Enter'rise B!dgets :"inancial Prices; or 2a-a S!ltan Item P-$sical E!antities Main Crop 1kg2 By !roduct 1kg2 In'!ts )ractor !lo&ing 1$rs2 eed 1kg2 0rea 1bag2 D*! 1kg2 ulfate of !otas$ 1kg2 !esticides Cost 1factor2 -abor 1days2 .umber of irrigations "inancial Val!es Re#en!e :PRs; Main !roduct Byproduct Gross Income :PRs; Costs :PRs; )ractor eed 0rea D*! ulfate of !otas$ !esticides Cost )$res$er or s$elling cost -abor %rrigation Ot$er Costs 1;5I of above2 Total Cas- Cost :PRs; Gross )argins :PRs;
$rsH $ours: kgH kilograms: !,sH !akistani ,upees and D*!H diamonium p$osp$ate ourcesH !C, mission estimates Sorg-!m )illet

A<4 ;:55E < =A ;

B<= ;:;DB < ;= ;

;=

;=

E:D44 ;:55E >/A94 =:A<F FAA <=B

;5:4DF ;:;DB 44/665 =:A<F =4= <=B

;:BBD ABF </85< 7/676

;:BBD AF= 6/><5 6/6=>

FE

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Table A>.< One .a )odel "arm B!dgets :"inancial Prices; or 2a-a S!ltan Descri'tion !ercentage in Cropped *rea *rea )ain O!t'!t Main crop 1kg2 Byproduct 1kg2 In'!ts )ractor plo&ing 1$rs2 eed 1kg2 0rea 1bag2 D*! 1kg2 ulfate of potas$ 1kg2 !esticides cost 1factor2 -abor 1days2 .umber of %rrigations Descri'tion Re#en!e :PRs; Main !roduct Byproduct Gross Income :PRs; Costs :PRs; )ractor eed 0rea D*! ulfate of !otas$ !esticides Cost )$res$erL $elling Cost -abor %rrigation Ot$er Costs 1;5I of above2 Total Cas- Cost :PRs; Gross )argins :PRs;
$rsH $ours: kgH kilograms: !,sH !akistani ,upees and D*!H diamonium p$osp$ate ourcesH !C, mission estimates

Area :-a; O!t'!ts and In'!ts Total 57A5 57A5

Sorg-!m )illet

57=A 57=A ;FE =A= = B 5

57=A 57=A ;D4 =<F = 4 5

Val!e o O!t'!ts and In'!ts Total

Sorg-!m )illet

=:;E4 =A= 6/787 8/976 BFE ;;F =4=

=:A<F =<F 8/==A BFE AE =4=

F;D ;F; 7/598 8/8=4 4/664 ==9

F;D ;4A 4/9>5 4/7>A

*ppendi+ <

F<

Table A>.A O!t'!ts and In'!ts o Dee' T!rbine T!be+0ells Per .a E!antit$ o O!t'!ts And In'!ts Descri'tion )ain O!t'!t Main Crop 1kg2 By !roduct 1kg2 In'!ts )ractor !lo&ing 1$rs2 eed 1kg2 0rea 1bag2 D*! 1kg2 ulfate of !otas$ 1kg2 !esticides Cost 1factor2 -abor 1days2 .umber of %rrigations Re#en!e :PRs; Main !roduct Byproduct Gross Income :PRs; Costs :PRs; )ractor eed 0rea D*! ulfate of !otas$ !esticides Cost )$res$erL $elling cost -abor %rrigation Ot$er Costs 1;5I of above2 Total Cas- Cost :PRs; Gross )argins :PRs; ;:555 =:4EB =:D=D =:<BF ;:EED 85/A<5 4=/97> =:A;D F:FFB ;:4B4 49/>>< 45/4A> B:DBE A:F4F =:=EA 86/474 98/69A =:B5F ;:FE= EDD >/<68 4>/7>< ;:<=D F<F BFE A/486 49/789 ;:4D< ;:<DB <;E 45/5>A 7/<=> B:;AA F:FFB A:;AF 6</<>6 9/=6A =:555 ;:555 4:D5A ;:F=4 =:A<F =:5DA =:<BF ;:EA4 ;:EA4 F:FFB <5= <=B =:4D; ;:<=D <5< ;:EA4 ;:<=D =DE ;:EA4 =:<BF ;:55E ;:EA4 B:BB< =E:FAF ;:EA4 =:<BF 4F:5EB A:;;4 7>/4>> 86/4A9 <A/<A= =A:;DF BD:BDE =B:5F; 4:55B 8>/59= ;<:=BB =:;E4 84/99> 47/A=< <4/668 ;4:DEB B;:AA= B < ;; 4 ; F < Val!e o O!t'!ts and In'!ts ; = ; ;= ;;< 4 = ;5 =A = ;A ;E ; = B F< = B ;A = ;5 F= = == ;:;EB = = 4:F5< 4:F5< =A:;DF ( =:D5D ( ;:DB< 4:55B ;:=EF =:;E4 ;4:DEB ( =F:B=; (
@-eat Rabi "odder Cotton Sorg-!m )illet 2-ari "odder Onion

D*!H diamonium p$osp$ate: >H 0nited tates Dollars: tH metric tons: kgH kilograms: !,sH !akistani ,upees ourcesH !C, mission estimates

A5

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Table A>.= B!dgets :"inancial Prices; or 95 .a Bloc( "arm Irrigated B$ DT T!be0ell Descri'tion !ercentage in cropped area *rea )ain O!t'!t Main Crop 1kg2 By !roduct 1kg2 In'!ts )ractor !lo&ing 1$rs2 eed 1kg2 0rea 1bag2 D*! 1kg2 ulfate of !otas$ 1kg2 !esticides Cost 1factor2 -abor 1days2 .umber of %rrigations Descri'tion Re#en!e :PRs; Main !roduct Byproduct Gross Income :PRs; Costs :PRs; )ractor eed 0rea D*! ulfate of !otas$ !esticides Cost )$res$erL $elling Cost -abor %rrigation Ot$er Costs 1;5I of above2 Total Cas- Cost :PRs; Gross )argins :PRs; >A5/946 8/869/4=9 ;;=:B4= FE:FEE 677/7<> >6</4=> ;D:DEF F:FFB 9=/>5< 64/A>4 ;5E:BE5 =E:;AE 75>/A7= 4/597/=88 =:<BF ;:=4F 47/6A6 99/684 ;:<DB ;:E=5 85/589 <6/AA9 ;:<DB DE5 =/6=5 6/856 E:E<= 4:=<4 7</887 =</==8 ;F5:D<5 AF:5B4 <E:AA4 DE:EF= ;;:EAB D:F;5 D:F;5 EE:<=5 ;E:54; ;E:A=A FD:F=F 4:EA4 ;:E;< 4:D5A D:D5B ;:;;= D:F;5 =:<BF ;:55E ;:EA4 ;4:44E ;:5BD 4:D5A A:<=E 7/889/6>> ;:=<A:=BE ;<F:=<5 4/9=>/66= ;55:B<D ( 455/<>A 4/767/6<5 ;:4A4:AB5 A=:5E4 B:5;4 6=/5>< DD:5BF E:D4F =6/A>= 47/A=< 487/456 ;4:DEB ;=4:;5A ==E 4B ==5 B F F ;E Val!e o O!t'!ts and In'!ts ( 4E F5 = FB< F:A5A ;4; BB F5 << ;5 =<B 4B; =A F5 ;4 << A =B A< ;5 ;5 F= = FF =:4D; A A ;=<:A=D ;=<:A=D ;55:B<D AF:;F= 4:A4D B:5;4 A:;4E E:D4F ;4:DEB F<:=F= E!antit$ o O!t'!ts and In'!ts @it- Pro&ect Per -a
Total @-eat Oilseeds Rabi "odder Cotton Sorg-!m )illet 2-ari "odder Onion

;7DE D;755

57<A 4E755

5755 5755

57;5 F755

57A5 =5755

575A =755

57;5 F755

5754 ;755

575A =755

D*!H diamonium p$osp$ate: >H 0nited tates Dollars: tH metric tons: kgH kilograms: !,sH !akistani ,upees ourcesH !C, mission estimates

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A;

Table A>.> Table A>.>3 "inancial Im'act o Comm!nit$+based Sc-eme Per Ann!al Total Ann!al Income Ca'ita N!mber Income rom All A#erage Total o Per N!mber N!mber o N!mber o Sc-emes Income Per Ann!al No o )ype of c$eme mall scale %rrigation oil conservation structures W$eat flour mills Cattle s$eds !oultry s$eds Ware$ouses a& mills Drinking &ater sc$emes Community $alls -ink roads Culverts and bridges Ot$ers Total Weig$ted average o .. Per Bene iciaries .o!se-olds Per Sc-eme 4A5 D5 FDB ;44 F=5 ;F5 F=5 FF; ;F5 FDB EDA ;F5 9/5=4 =<< Persons Sc-eme :!,s2 DA:B55 ;<D:<4; DD:;;= =<:4<4 B4:555 4B:5F5 ;5:A55 <A:=AB ;5:555 <:A=5 =B:=A5 ;5:555 A4:<AF 1!,s7 million2 ;A7BA B744 ;=7F< B7F; E7<A A7=B 57=B ;B7BD =7=A 57;E 57E; 57;B A6.9 .o!se-old 1!,s2 ;:A;= ;<:D<4 ;:;4F ;:AFD ;:5A5 ;:E5= ;DA ;:A;= A55 ;F5 =;5 A55 ;:=B= Income 1!,s2 =;B =:E=E ;B= ==; ;A5 =AD =A =;B D; =5 45 D; ;E5 "IRR at "IRR at Sc-emes Sc-eme =5D A5 4= ;5 ;B= BE =;E ;< ;F= B5 ;FB =5 =A B5 ;DA B4 ==A =5 ;< BE 4; ;=A ;B =5 4/7>= 6=7 F4 Bene ited Bene ited ;5:4A5 D=:FA5 4=5 =:=F5 ;;:5;B DD:;;= F:;F= =E:<<F E:A=5 A<:BF5 =:<=5 =5:FF5 ;:A55 ;5:A55 ;;:5=A DD:;DA F:A55 4;:A55 ;:=<= <:5FF 4:EDA =D:;=A 4=5 =:=F5 6>/A=5 94=/9<5 PCR A''raisal ADI FFI FBI B;I FEI A5I D;I =DI F=I BBI ABI D=I D5I

!C,H !ro/ect Completion ,evie&: '%,,H 'inancial %nternal ,ate of ,eturn: and !,sH !akistani ,upees ourcesH !C, mission estimates

Table A>.45 Com'onent?S!bcom'onent @ise 'er .. and 'er Ca'ita Income Total Po'!lation Per o .o!se-old N!mber o Per ca'ita Income Bene iting Income Bene iting Income 1!,s .o!se-old :!,s2 million2 ComponentL ubcomponent :CC2 :!,s72 #a$a ultan urface %rrigation 575 FEB 4:F5; 5 5 Deep )ube(&ell Development 45E7E ;:4D5 <:A<5 ==A:F;E 4=:=54 ,oads BBE7B ;EA:D;F ;:455:555 4:B55 A;F Community Development c$emes DA7F A<:DE5 F4D:FA4 ;:=B= ;D= kill training 44575 ;A:555 ;A:555 ==:555 ==:555 A#erage All Combined 4/567 4=6/A49 4/755/555 6/<<> =45 CCH Cose$old and !,sH !akistani ,upees ourcesH !C, mission estimates

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Table A>.44 Economic Internal Rate o Ret!rn o S!r ace Irrigation o 2a-a S!ltan Ad&!sted Economic In#estment Costs 1Million ,upees ( Constant !rices2 5755 5755 5755 5755 5755 =47FD F754 ;7=5 ;7;= ;7;= ;7;= ;7;= ;7;= ;7;= ;7;= =7;= ;7;= ;7;= ;7;= ;7;= ;7;= ;7;= ;7;= ;7;= ;7;= ;7;= ;7;= ;7;=

Gross )argin or Additional C!lti#ated Incremental General Additional Area 1!,s7 Bene it 1!,s7 Price Million2 in Inde1 C!lti#ated million2 in Cear 855A Prices 855A Prices De lator Ending Area 1$a2 ;:<<< =:555 =:55; =:55= =:554 =:55F =:55A =:55B =:55D =:55E =:55< =:5;5 =:5;; =:5;= =:5;4 =:5;F =:5;A =:5;B =:5;D =:5;E =:5;< =:5=5 =:5=; =:5== =:5=4 =:5=F =:5=A =:5;E EIRR 5 5 5 5 5 5 ;:FAD =:<;A F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE F:EAE ;B7; ;B7; ;B7; ;B7; ;B7; ;B7; ;E7< =;7B =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 =A74 5755 5755 5755 5755 5755 5755 =7DF A7FE <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F <7;F 57BF 57BA 57B< 57D5 57DF 57E5 57EB 57<4 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755 ;755

B?P2R Parit$ A;7B5 A47F5 BF755 A<7A5 AE7A5 AD7B5 A<7<5 B5755 B5755 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5 B57A5

Ad&!sted Cost/ Bene its/ and Incremental Cas- "lo0 in 855A Prices 1> million2 5755 5755 5755 5755 5755 5755 575A 575< 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 57;A 5755 5755 5755 5755 5755 57F; 575D 575= 575= 575= 575= 575= 575= 575= 575= 5754 575= 575= 575= 575= 575= 575= 575= 575= 575= 575= 575= 575= 5755 5755 5755 5755 5755 (57F; (575= 575D 57;4 57;4 57;4 57;4 57;4 57;4 57;4 57;= 57;4 57;4 57;4 57;4 57;4 57;4 57;4 57;4 57;4 57;4 57;4 57;4 88.=D

E%,,H Economic %nternal ,ate of ,eturn: CCH Cose$old and !,sH !akistani ,upees ourcesH !C, mission estimates

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Table A>.49 Combined Economic Internal Rate o Ret!rn o t-e Irrigation/ R!ral Roads/ and Instit!tional Strengt-ening Com'onents :B million; Ad&!sted Instit!tional Strengt-ening Total Pro&ect Total Pro&ect Cost 1in =55D Cear !rices2 Cost Toal Bene its Cas- "lo0 ;<<< =555 =55; =55= =554 =55F =55A =55B =55D =55E =55< =5;5 =5;; =5;= =5;4 =5;F =5;A =5;B =5;D =5;E 574; 57FA 57;< 574E 57A5 57A= 57E5 57DE 574< 5755 5755 5755 5755 5755 5755 5755 5755 5755 5755 5755 574; 57EB 57FD 57DA ;75E =7BB A7;; ;=7;5 47B; 57=5 57=5 57=5 57=5 57=5 57=5 57== 57=5 57=5 57=5 57=5 5755 575F 57;5 57=A 57F< ;7;D =7F5 A7=D D7A; E7F< <7F; ;5744 ;;7;A ;;7DE ;=75< ;=7F= ;=7DB ;47;= ;47A5 ;47<5 (574; (57E4 (574B (57A; (57A< (;7F< (=7D; (B7E4 47<5 E7=< <7=; ;57;4 ;57<A ;;7AD ;;7EE ;=7=5 ;=7AB ;=7<= ;4745 ;47D5

EIRR 77.6D E%,,H Economic %nternal ,ate of ,eturn: CCH Cose$old and !,sH !akistani ,upees ourcesH !C, mission estimates