Pakistan Early Warning Update
Asian Development Bank Business Opportunities: Volume No. 6, May 2008
Monday, June 30, 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
Phone: +1-202-737 7752; 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’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 |
Market Infrastructure Project (formerly Rural Market Development Project) (formerly Rural Business Development Project and Rural Economy Business Development Project) |
|
Project Type and ID |
PPTA: (N) PAK 41358-01 |
|
Executing Agency |
Government of Punjab |
|
Loan Amount (US$ million) |
800,000 |
|
Date of First Listing |
18 March 2008 |
|
Objectives and Scope |
The proposed Project impact will be increased horticulture and dairy commodity sector performance and growth, with increased agribusiness and producers returns, and enhanced private sector investment. The Poject outcome will be a project design, agreed by Government that includes (i) Punjab provincial sector strategy to guide a long-term program for agricultural market infrastructure development; (ii0 an investment project(s) for ADB financing that is likely to include commodity market infrastructure, cold chain logistic centers, dairy development and agro-industrial parts; (iii) associated supporting regulatory and institutional reform; and (iv) a project preparation facility for subsequent projects. Phase 1 will focus on (i) an assessment of agricultural commodity marketing infrastructure and systems, encompassing existing market infrastructure, future growth and demand, and will include sector planning work; and (ii) the role of key private sector agents and companies and their value chain operating modalities, feasible options, including innovative approaches for private sector partnerships and financing of public private partnerships and investment prioritization criteria. Phase 1 will last for 2 to 3 months. Phase 2 will involve preparation of an investment project (MFF) and will commence in month 3 of the TA and last about 6 months. |
|
Environmental Assessment |
To Be Determined |
|
Project Processing Stage |
Beginning of Fact-finding Mission: Apr 2008 |
|
Project Officer |
Allan T. Kelly (632-6839)
Agriculture, Environment, and Natural Resources Div, CWRD
atkelly@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 |
MFF - Renewable Energy Development Sector Investment Program, Tranche 2 (Formerly Renewable Energy Development - Project II) |
|
Project Type and ID |
LOAN: (N) PAK 34339-03 |
|
Executing Agency |
Alternative Energy Development Board
Mujahid Sadiq, Head, Int'l Assistance Mgt. Office
mujahid@aedb.org
|
|
Loan Amount (US$ million) |
50.00 Mil |
|
Date of First Listing |
19 March 2008 |
|
Objectives and Scope |
The Tranche-2 subprojects are part of Pakistan’s integrated renewable energy development investment program, targeting to reach 3.5% of the national power generation by 2015. The investment will contribute to boost economic development through providing adequate and affordable power supply and reduction in CO2 emission in the Northern Areas and Sindh. |
|
Environmental Assessment |
To be determined. |
|
Project Processing Stage |
Beginning of Fact-finding Mission: May 2008. |
|
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 |
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 |
Transport & Communications /Roads & Highways |
|
Project Name |
TA Loan: Lahore Rapid Mass Transit |
|
Project Type and ID |
LOAN: PAK 40573-01 |
|
Executing Agency |
Planning and Development Board |
|
TA Amount (US$ '000) |
6.0 (US$ Million) |
|
Date of First Listing |
21 February 2008 |
|
Objectives and Scope |
The expected impact of the TA is the initiation of a long-term transport system investment program that will enable Lahore to make a greater contribution to national development, while improving in the quality of life residents, including the poor.
The transaction advisory work will be carried out in three phases: preparation, implementation, and negotiation. During the preparation phase, the transaction advisor will carry out technical and legal due diligence, design the detailed structure and terms of the transaction, market the transaction with potential investors, and develop prequalification and bidding documents as well as the necessary contracts. During the implementation stage, the transaction advisor will assist the Government in obtaining any approvals and permits required, prequalifying potential investors, carrying out the bidding process, evaluating proposals, awarding the contract and holding negotiations, with lenders. During the negotiation, the transaction advisor will support the Government and winning bidder reach financial closure. |
|
Environmental Assessment |
Category C |
|
Project Processing Stage |
Board Circulation Completed : 14 May 2008 |
|
Project Officer |
Eunkyung Kwon (632-6825) ekwon@adb.org
Social Sectors Division, CWRD |
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
|
Multisector |
|
Project Name |
MFF-Karachi Mega City Sustainable Development Investment Program (Facility Concept) |
|
Project Type and ID |
LOAN: (N) PAK 40337-01 |
|
Executing Agency |
Finance Department, GOS |
|
TA Amount (US$ Mil) |
800.00 |
|
Date of First Listing |
21 February 2008 |
|
Objectives and Scope |
The impact of the Investment Program will be an enhanced and sustained contribution of Karachi to national development, and improved quality of life for city residents, particularly the poor. Outcomes of the Investment Program will be : (i) strengthened planning, administration and fiscal management; and (ii) increased quality, coverage and reliability of water supply wastewater management, mass transit, and housing. The Investment Program comprises four parts. Part A is designed to provide investment program management and support, addressing (i) program management (establishment and staffing of the Program Reform Monitoring Unit (PRMU) and Program Implementation Unit (PIU), (ii) program support (studies, training and capacity development for Karachi's local governments and service providers, and public awareness and outreach), and (iii) independent monitoring and evaluation. Parts B,C, and D are designed to address the critical sub-sector priorities for improved infrastructure, service provision and low-income housing. |
|
Environmental Assessment |
|
|
Project Processing Stage |
SRC Completed : 21 February 2008 |
|
Project Officer |
Eunkyung Kwon (632-6825)
Social Sectors Division, CWRD
ekwon@adb.org
|
Multisector |
|
Project Name |
Karachi Mega City Sustainable Development Investment Program (Subproject 1) |
|
Project Type and ID |
LOAN: (N) PAK 40337-02 |
|
Executing Agency |
Finance Department, GOS |
|
TA Amount (US$ Mil) |
300.00 |
|
Date of First Listing |
21 February 2008 |
|
Objectives and Scope |
The impact of the Investment Program will be an enhanced and sustained contribution of Karachi to national development, and improved quality of life for city residents, particularly the poor. Outcomes of the Investment Program will be : (i) strengthened planning, administration and fiscal management; and (ii) increased quality, coverage and reliability of water supply wastewater management, mass transit, and housing. |
|
Environmental Assessment |
B |
|
Project Processing Stage |
SRC Completed : 21 February 2008 |
|
Project Officer |
Eunkyung Kwon (632-6825) ekwon@adb.org
Social Sectors Division, CWRD
|
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