Pakistan Early Warning Update

Asian Development Bank Business Opportunities: Volume No. 3, February 2008

This Bulletin is a periodic electronic update from the Bank Information Center (BIC) South Asia office to inform civil society about Asian Development Bank (ADB) projects in Pakistan before they are approved by the Board of Directors of the ADB.  This Update covers project information, organized by sectors.  The information is compiled directly from ADB’s Business Opportunities.

For feedback on the Early Warning Update or to subscribe, please contact:
Bank Information Center, South Asia Office (New Delhi)
Phone: +91-11-2602-0143; Email: southasia@bicusa.org; Web: www.bicusa.org

For more information on specific projects, please contact the following at the ADB:
The Project Officer (contact details listed against each project). When emailing, also copy to: disclosure@adb.org. You may also contact the ADB Public Information and Disclosure Unit (See: http://www.adb.org/Disclosure/contact.asp).

About Business Opportunities (BOp)  

Business Opportunities (BOp) identifies potential projects that are under consideration for ADB financing.  The BOp listings do not guarantee that financing will be approved for particular projects.  However, BOp listings serve as important tools for monitoring and follow up of proposed projects.  These, along with your country’s Country Partnership Strategy (CPS), work as early warnings on the projects that your government and the Bank are considering for funding. Advocacy and campaigning experience around the world on Bank projects indicates that the earlier civil society gets involved on proposed projects, the greater the likelihood for impacting them.  Proposed projects are listed until the point of ADB Board approval; the remaining are dropped from the list.  BOp listings are prepared after CPS approval and during the early phases of Project Preparation. For better understanding of this process, the Bank’s Project Cycle is summarized below.

Project Cycle (ADB website for complete project cycle)

ADB, project cycle

ADB’s Project Cycle

Project Identification/Preparation: ADB often provides grants called project/program preparatory technical assistance (PPTA) to help the government identify and prepare feasible projects. The summary is made available in the form of a project profile or project information document (PID).

During the early stage of the PPTA, an initial poverty and social assessment is conducted to identify people who may be beneficially or adversely affected. A technical assistance report is prepared as a recommendation for ADB to finance a technical assistance project.

If the project requires resettlement of people or might adversely impact the environment, or indigenous peoples, certain safeguard assessments are prepared during this stage. The results of these assessments are to be made available to affected people.  For more information on community rights under ADB safeguards and international best practices, see comparative matrices of MDB safeguard policies on BIC's website.

Project Examination: ADB examines project feasibility, first through a fact-finding mission and then through an appraisal mission. The fact-finding mission examines the project's technical, financial, economic, environmental, marketing, and management aspects and potential social impact. Detailed project risks and sensitivity analyses are carried out to assess viability of the proposed project and loan terms are discussed.

Following this, the Appraisal Mission conducts further field study, analyses and consultation, as required. The mission then prepares a loan proposal report and draws up a draft loan agreement for negotiation. After appraisal, the draft loan agreement and draft project proposal is submitted for review. Government is then called for negotiation with ADB. After negotiations with the government, the loan proposal is submitted to Board of Directors for Approval, through its Report and Recommendation of the President (RRP).

After Board approval, the document is sent to the borrowing country's Government for cabinet authorization following which the loan agreement is signed. The loan takes effect once certain conditions are met. The requirements and deadline for loan effectiveness are stipulated in the loan agreement.

ADB-assisted projects are implemented by the executing agency according to the agreed schedule and procedures as detailed out in the project administration memorandum. Implementation time generally ranges from two to five years but depends on the type and nature of the project. ADB's review missions assess the progress of project implementation by visiting it at least twice a year throughout the implementation period.

If a project has significant environmental or social issues, ADB will often require the borrower to submit regular monitoring reports, in addition to progress reports. Information on the project's implementation progress and status of development objectives and loan covenants is added to the project information document during this implementation phase.

For more information, refer to: Unpacking the ADB: A Guide to Understanding the Asian Development Bank

Commonly Used BOp Acronyms

TA:      Technical Assistance

AOTA:  Advisory and Operational Technical Assistance Loans

PPTA:  Project Preparatory Technical Assistance

RETA:  Regional Technical Assistance

EIA:     Environmental Impact Assessment

IEE:     Initial Environmental Examination

   N:     New Project

   R:     Revised (italic text indicates change from previous month)

ADB Environmental Categorization

Category “A” Projects: Projects having severe environmental impacts are categorized as “A”. An EIA is required.

Category “B” Projects: Projects having some adverse environmental impacts are categorized as “B”. An IEE is required in order to determine whether an EIA also needs to be done. If not, then the IEE is the final environment document.

Category “C” Projects: Projects havening no environmental impacts are categorized as “C”. No IEE or EIA is required but environmental considerations are still reviewed.

Category “F1” Projects: Projects involving a financial intermediary or equity investment are classified as “F1”. The financial intermediary will apply an environmental management system if environmental impacts are expected.

Current Business Opportunities for Pakistan

Agriculture & Natural Resources /Water Resources Management

Project Name

(R) Barani Integrated Water Resource Sector Project (formerly Community Storage and Irrigated Agriculture Development Sector Project)

Project Type and ID

LOAN: PAK 39364-01

Executing Agency

Irrigation and Power Department, Punjab

Mr. Asrar-ul-Haq, Chief Strategic Planning; asrar_ast_ipd@yahoo.com; 042 921 2123 to 24

Mr. Ubaidullah Rundhawa, Project Director Small Dams; 051 920 2270; 051 921 0302

Loan Amount (US$ million)

75.00

Date of First Listing

20 July 2007

Objectives and Scope

The expected impact of the proposed project is improved household income and health in the districts of Attock, Rawalpindi, Jehlum and Chakwal in the Barani areas of Punjab province. These four districts were selected due to their high percentage of rain fed agriculture compared to other districts in the Barani areas and their high potential for water storage development. The project's outcome is to increase crops and livestock productivity and households' access to domestic water supply. This will be obtained from the conversion of 11,500 hectares (ha) of rain fed agricultural land into irrigated land and the improvement of irrigation on 10,000 ha in existing systems. Two representatives' subprojects ("core subprojects") were selected to assess the Project's feasibility with regards to technical, social, financial and economic aspects as well as to social and environmental safeguards. The selection of core subprojects was based on size of investment, type of proposed dam, representative geographic and social conditions, severity of environmental and resettlement impacts.

Environmental Assessment

A

Project Processing Stage

Board Circulation Completed : 11 February 2008

Project Officer

Arnaud M. Cauchois (632-6112), Agriculture, Environment, and Natural Resources Div, CWRD; acauchois@adb.org


Energy/Transmission & Distribution

Project Name

(R) Power Distribution Enhancement - Project 1

Project Type and ID

LOAN: PAK 38456-02

Executing Agency

Pakistan Electric Power Company (Pvt.) Limited (PEPCO)

Mohammed Aslam Ch., Technical Director; edtpeco@hotmail.com; T: +92 (42) 920 2199; 403 Wapda House, Shahra-i-Quaid-i-Azam, Lahore 54000, Pakistan

Loan Amount (US$ million)

150.00

Date of First Listing

30 July 2007

Objectives and Scope

The project will address the capacity shortfalls that currently result in regular system outages and supply interruptions to customers. This will include (i) addition of circuit and transformer capacity to enable the already overloaded systems to reliably deliver present demand and meet the expected load growth; (ii) loss reduction; and (iii) refurbishment of distribution networks.

Environmental Assessment

B

Project Processing Stage

Appraisal Completed : 8 February 2008

Project Officer

Rune Stroem (632-6342), Infrastructure Division, CWRD; rstroem@adb.org


Energy/Transmission & Distribution

Project Name

(R) Power Transmission Enhancement - Project II

Project Type and ID

LOAN: PAK 37192-03

Executing Agency

National Transmission & Dispatch Company (NTDC)

Qazi Naeem-Ud-Din, Chief Executive; F: 92 42 920 2053; ceo@ntdc.com.pk; T: 92 42 920 2229; WAPDA House, Shahrah-e-Quaid-e-Azam, Lahore, Pakistan

Loan Amount (US$ million)

220.00

Date of First Listing

29 August 2007

Objectives and Scope

Tranche 2 Subprojects will continue to rehabilitate and augment the transmission system through 16 new substations, three static var compensators (SVC), and 37 transformers.

Environmental Assessment

B

Project Processing Stage

Approved by the Bank: 17 December 2007.

Project Officer

Rune Stroem (632-6342), Infrastructure Division, CWRD; rstroem@adb.org


Energy/ /Hydropower Generation

Project Name

MFF - Power Distribution Enhancement

Project Type and ID

LOAN: PAK 38456-01

Executing Agency

Pakistan Electric Power Company (Pvt.) Limited (PEPCO)

Muhammad Aslam Ch., Technical Director; edtpepco@hotmail.com; T: 92 (42) 920 2199; 403 Wapda House, Shahra-i-Quaid-i-Azam, Lahore 54000, Pakistan

Loan Amount (US$ million)

810.00

Date of First Listing

30 July 2007

Objectives and Scope

The Investment program will enhance the efficiency of the overall power distribution system and provide an adequate and reliable power supply to a greater number of industrial, commercial and residential customers, through funding of investment requirements within each of the eight power distribution companies in Pakistan.

Environmental Assessment

B

Project Processing Stage

Fact-Finding Mission Completed : 21 June 2007

Project Officer

Rune Stroem (632-6342), Infrastructure Division, CWRD, rstroem@adb.org


Energy /Energy Sector Development

Project Name

(N) Sustainable Energy Efficiency Development Program

Project Type and ID

PPTA: PAK 42051-01

Executing Agency

Planning Commission

Dr. Akhtar A. Awan, Member Energy

P-Block, Pak Secretariat Islamabad

TA Amount (US$ '000)

600.00

Date of First Listing

22 January 2008

Objectives and Scope

The TA will enable the Government to develop and implement a comprehensive energy efficiency sector development program. Efficient energy use in all sectors of the Pakistan economy will slow the overall rate of increase of energy demand to more manageable levels and reduce potential shortages. Improved energy efficiency will also (i) reduce large financial outlays required to develop additional energy supplies in the future; (ii) help minimize uneconomical standby capacity required to cater to peak loads; (iii) reduce subsidy requirements; and (iv) defer transmission and distribution system expansion needs, thereby saving public funds and increasing returns on energy infrastructure investments.

 

The TA will design a suitable program proposal that supports government efforts to establish an enabling policy and business environment for energy efficiency, and to provide immediate financing of priority projects. Key activities will include (i) an in-depth assessment of the energy efficiency market and the economy; (ii) an awareness-building program for energy efficiency through short-term policy and regulatory improvement recommendations, as well as targeted public relations programs; (iii) strategy and action guidelines for initiating a sustainable long-term national energy efficiency program; (iv) a road map for implementing the national energy efficiency program with corresponding investment plans; and (v) design of bankable investment projects.

Environmental Assessment

To Be Determined

Project Processing Stage

Approved by the Bank : 5 February 2008

Project Officer

Bayanjargal Byambasaikhan (632-6359), Infrastructure Division, CWRD; bbyambasaikhan@adb.org


Law, Economic Management & Public Policy /Economic Management

Project Name

(R) Competitiveness and Structural Transformation in Pakistan

Project Type and ID

AOTA: PAK 41661-01

Executing Agency

Asian Development Bank

TA Amount (US$ '000)

350.00

Date of First Listing

13 November 2007

Objectives and Scope

To help Pakistan's policy makers and entrepreneurs better understand the importance of structural transformation in achieving the goal of maintaining or increasing its current economic growth rate. This TA will (i) explain the causes of slow and deep structural transformation of Pakistan's economy; (ii) prepare four analytical papers on structural transformation in Pakistan; (iii) work closely with the Government, policy makers, and entrepreneurs to guarantee that the results of this TA are internalized; (iv) make policy recommendations; and (v) disseminate the findings through seminars and publications.

Environmental Assessment

-

Project Processing Stage

Approved by the Bank : 24 January 2008

Project Officer

Jesus Felipe (632-6629), Country Coordination and Regional Cooperation Division, CWRD, jfelipe@adb.org


Law, Economic Management & Public Policy /Law & Judiciary

Project Name

Implementing Police Reforms in Four Districts of the Punjab Province

Project Type and ID

AOTA: PAK 38576-01

Executing Agency

Planning and Development Department, Government of the Punjab

Chairman; F: (92-42)-9210003; T: (92-42)-9210002, 9210004; Planning and Development Department, Government of Punjab, Civil Secretariat, Lahore

TA Amount (US$ '000)

950.00

Date of First Listing

21 October 2004

Objectives and Scope

The project goal of the proposed TA is improved access to justice and public safety through better policing for poor and vulnerable people, especially women, children and minorities in Punjab. The purpose is to support the implementation of the PO 2002 in four pilot districts of Punjab province and develop a safer and more secure environment based on respect for human rights and equitable access to justice through a policing service, which is more responsive to the needs of poor and vulnerable people.

Environmental Assessment

-

Project Processing Stage

Fact-Finding Mission Completed : 3 June 2004

Project Officer

Douglas John Porter (632-), Special Leave w/o Pay, dporter@adb.org


Law, Economic Management & Public Policy /Sub national Government Administration

Project Name

Strengthening Coordination and Alignment of Government Operations to Devolution

Project Type and ID

AOTA: PAK 37204-01

Executing Agency

Min of Finance

Secretary, Finance; F-051-9218062; T-051-9210291; Ministry of Finance, Block C , Pak Secretariat, Islamabad

TA Amount (US$ '000)

450.00

Date of First Listing

14 February 2004

Objectives and Scope

The TA will augment the capacity of the Planning Commission at the Federal level and the Planning and Development Departments at the Provincial levels to coordinate and monitor the effective use of external development assistance supporting the devolution plan. The TA will provide for technical expertise in three areas: i) management of programs in support of poverty reduction and devolution reforms in the provinces, including design of intergovernmental fiscal and other institutional arrangements; ii) the review and contribution to the design of sector-wide reform strategies, e.g., health, education, water and sanitation consistent with devolution; and iii) the establishment of data bases and coordinative arrangements to assist provincial governments to realign vertical programs to devolution policy and procedures.

Environmental Assessment

-

Project Processing Stage

Fact-Finding Mission Completed : 30 May 2003

Project Officer

Douglas John Porter (632-), Special Leave w/o Pay; dporter@adb.org


Law, Economic Management & Public Policy /Law & Judiciary

Project Name

Support for Governance Reforms

Project Type and ID

AOTA: PAK 38612-01

Executing Agency

Economic Affairs Division

Secretary, Economic Affairs Division; F- (+92-51)-9205971, 9210734; T- (+92-51)-9210629, 9212769; Rm 308, Block C, Secretariat, Islamabad, Pakistan

TA Amount (US$ '000)

11,500.00

Date of First Listing

16 March 2005

Objectives and Scope

The expected impact of the TA clusters (TAC) is improved governance to support poverty reduction. The outcomes of the TAC will be (i) improved access to justice, especially for the poor; (ii) improved delivery of public services at local level through devolved governance structures; (iii) strengthened public financial management supporting improved efficiency and effectiveness of resource allocations for poverty reduction; and (iv) strengthened accountability, transparency and anti-corruption institutions.

Environmental Assessment

-

Project Processing Stage

SRC Completed : 8 November 2006

Project Officer

Waqas ul Hasan (632-5513), Pakistan Resident Mission, whasan@adb.org


Transport & Communications /Roads & Highways

Project Name

National Highway Development Sector Investment Program-Project II

Project Type and ID

LOAN: PAK 37559-04

Executing Agency

National Highway Authority

Raja Nowsherwan, Member (Planning), F-+92-51-9260418; nraja@nha.gov.ph; T-+92-51-9260409

Loan Amount (US$ million)

301.00

Date of First Listing

29 August 2007

Objectives and Scope

Batch 2 Investment Program will finance Batch 2 subprojects under National Highway Improvement Component. The proposed investment of Batch 2 Investment Program will continue focusing on improving domestic transport system serving inter-provincial traffic and selected national highways. The proposed subprojects under Batch 2 Investment Program are: Peshawar-Torkham Section 2, Sukkur-Jacobabad, Tanol-Fatehjang-Jand, Zhob-Mughal Kot.

Environmental Assessment

A

Project Processing Stage

Beginning of Loan Negotiations: Dec 2007.

Project Officer

Olly Norojono (632-6628), Infrastructure Division, CWRD, onorojono@adb.org


Multisector

Project Name

Strengthening Domestic Consulting Services

Project Type and ID

AOTA: PAK 39048-01

Executing Agency

Planning Commission

TA Amount (US$ '000)

200.00

Date of First Listing

6 September 2005

Objectives and Scope

The objective of the TA is to create conducive environment for domestic consultants' participation in projects implementation. This will enable consultants to provide productive inputs, as well as ensuring checks and balances in projects implementation. The scope will include: (i) Comprehensive review of bylaws and regulations as well as updating bylaws and regulations if necessary (ii) Institutional strengthening of ACEP for overseeing implementation of bylaws and regulations (iii) Institutional strengthening of PEC for dispute resolution and adjudication (iv) Installation of a system to track the consultants' complaints from initiation to implementation of final decisions

Environmental Assessment

Project Processing Stage

Fact-Finding Mission Completed : 29 July 2005

Project Officer

Asad Aleem (632-5513), Pakistan Resident Mission, aaleem@adb.org

The Bank Information Center (BIC) partners with civil society in developing and transition countries to influence the World Bank and other international financial institutions (IFIs) to promote social and economic justice and ecological sustainability. BIC is an independent, non-profit, non-governmental organization that advocates for the protection of rights, participation, transparency, and public accountability in the governance and operations of the World Bank, regional development banks, and IMF. For more information about BIC, see www.bicusa.org.


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