Pakistan: Sindh Growth and Rural Revitalization Program - Subprogram 1

Sovereign Project | 41545-013

Summary

The Program aims to assist the GoS to promote broad based growth, and to particularly accelerate rural growth. It emphasizes the importance of policy and institutional reforms to attain inclusive growth through getting greater private sector investment, along with ensuring efficient public finances and systems - for growth and rural development. Three broad core policy areas (CPA) have been identified to:

i. Expand the private sector participation in Sindh's economic activities and service delivery;

ii. Improve value for money for public expenditure; and

iii. Revitalize the rural economy.

The Program will undertake a combination of Short (1 year), Medium (2-3 years), and Long-term (3-5 years) actions. Accordingly, the Program is a cluster which includes 3 sub-programs.

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Project Name Sindh Growth and Rural Revitalization Program - Subprogram 1
Project Number 41545-013
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2484-PAK: Sindh Growth and Rural Revitalization Program - Subprogram 1
Asian Development Fund US$ 100.00 million
TA 7201-PAK: Improving Private Sector Participation and Public Expenditure Management
Technical Assistance Special Fund US$ 800,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Public sector management - Public expenditure and fiscal management
Gender Equity and Mainstreaming No gender elements
Description

The Program aims to assist the GoS to promote broad based growth, and to particularly accelerate rural growth. It emphasizes the importance of policy and institutional reforms to attain inclusive growth through getting greater private sector investment, along with ensuring efficient public finances and systems - for growth and rural development. Three broad core policy areas (CPA) have been identified to:

i. Expand the private sector participation in Sindh's economic activities and service delivery;

ii. Improve value for money for public expenditure; and

iii. Revitalize the rural economy.

The Program will undertake a combination of Short (1 year), Medium (2-3 years), and Long-term (3-5 years) actions. Accordingly, the Program is a cluster which includes 3 sub-programs.

Piggybacked TA - Enhancing private sector participation in public service delivery is a way of improving efficiency and effectiveness, as well as augmenting resources for public service delivery. This requires a mindset change, institutional realignments, and capacity building in contract design and risk management. The TA will provide national and international expertise to the Finance Department to support the establishment of the Public-Private Partnership (PPP) Unit and develop PPP policy and regulatory frameworks. Likewise, the TA will support the Planning and Development Department (P&DD) and line agencies in improving the quality of public sector investments by enhanced prioritization, project management, M&E, and medium-term planning. The TA will support the strengthening of governance structures, investment, policy, and legal frameworks for pension and other employee benefits.

1.

Project Rationale and Linkage to Country/Regional Strategy

The following factors were taken into account in determining the size of the loan: (i) the strength of the Program and its development impact, (ii) the financial, economic, and political costs associated with the implementation of the Program, and (iii) the overall development financing needs estimated by the Finance Department of the GoS.

The primary driver in the Government's decision to seek the ADB's policy reform and financing support is to reduce rural-urban inequality and enhance the pace of growth, particularly in the rural areas through a set of targeted reforms and increased investment. The enhanced flow of funds to rural areas will enhance the productivity of agriculture, livestock, fisheries, rural infrastructure, rural health and education, and will be evidenced through their budgetary allocations. Additional supportive measures to be undertaken include the creation of mechanisms to bridge the viability gaps in critical areas to encourage private sector participation in infrastructure service delivery in a transparent manner.

Impact Higher and sustained economic growth and reduced poverty and rural urban inequality in Sindh
Project Outcome
Description of Outcome Larger private sector share in the provincial economy and more efficient public expenditure management
Progress Toward Outcome Loan was closed in 2012. Please refer to the program completion report for detailed results as monitored to date.
Implementation Progress
Description of Project Outputs

1-a. PPP institutionalized

1-b. Public sector enterprises divested or private management introduced

2-a. Public sector investments prioritized, funded, and implemented as planned

2-b. Off-budget pension and general provident fund management institutionalized with due diligence, and their administration improved

3. Share of public spending on rural development increased, and private sector participation in rural economic activity and service delivery expanded

Status of Implementation Progress (Outputs, Activities, and Issues)

Detailed status of program outputs are provided in the program completion report.

Under the attached TA, two sets of workshops were held in Karachi for key departments that will be implementing PPPs in March and June 2011. PPP pipeline population continuing, as are technical and advisory support to the Government of Sindh.

Various consultants had been engaged under TA 7201 to support implementation of subprogram 1 and 2, including in the areas of public financial management, market development and corporatization of SOEs, and contingent liability management. Advisory and technical support for public private partnerships continued through 2013.

Geographical Location Sindh
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects none
Involuntary Resettlement none
Indigenous Peoples none
Stakeholder Communication, Participation, and Consultation
During Project Design Consulted government staff both in the provincial and district governments and other stakeholders from the private sector, academia and civil society organizations.
During Project Implementation Regular consultations were held with Finance Department, P&DD, line departments that introduced institutional reforms and other key stakeholders.
Business Opportunities
Consulting Services N/A
Procurement The loan proceeds will be used to finance the full exchange costs (excluding local duties and taxes) of items produced and procured in ADB member countries, excluding the items specified in a negative list of ineligible items (and imports financed by other bilateral and multilateral sources).
Responsible ADB Officer Martin Endelman
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Planning & Development Department, SindhMr. Aurangzev HaqueSindh Secretariat
Karachi, Pakistan
Timetable
Concept Clearance 11 Sep 2007
Fact Finding 23 Jun 2008 to 04 Jul 2008
MRM 30 Jul 2008
Approval 11 Dec 2008
Last Review Mission -
PDS Creation Date 28 Jan 2009
Last PDS Update 27 Mar 2014

Loan 2484-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2008 17 Dec 2008 26 Dec 2008 30 Apr 2009 - 22 Jan 2009
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.20 Cumulative Contract Awards
ADB 100.00 11 Dec 2008 100.23 0.00 100%
Counterpart 0.20 Cumulative Disbursements
Cofinancing 0.00 11 Dec 2008 100.23 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

TA 7201-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2008 12 Feb 2009 12 Feb 2009 30 Jun 2010 31 Dec 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 0.00 0.00 0.00 0.00 0.00 800,000.00 11 Dec 2008 603,422.29
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Pakistan: Sindh Growth and Rural Revitalization Program Validations of Project Completion Reports Jan 2015

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