Pakistan: Punjab Government Efficiency Improvement Program (Subprogram 1)

Sovereign Project | 41666-013

Summary

Building on the PRMP and other programs, PGEIP will support the GoPb in realizing the long-term goals expressed in Vision 2020, through which the government has committed itself to significantly improving the standard of living of the people of Punjab, especially the poor and vulnerable. The PGEIP will improve the overall functioning of the provincial, district, and municipal governments and the quality of public services. The improvements will take the following forms: (i) greater performance-oriented planning and budgeting; (ii) a more efficient civil service, with adequate incentives and merit-based appointment and career progression; (iii) a funded and well-managed pension system, which increases the

confidence of civil servants and the public, and generates fiscal space for high-priority investments in the social sectors; and (iv) greater private sector contribution to growth and facilitation of public-private partnerships.

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Project Name Punjab Government Efficiency Improvement Program (Subprogram 1)
Project Number 41666-013
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2385-PAK: Punjab Government Efficiency Improvement Program (Subprogram 1)
Ordinary capital resources US$ 250.00 million
Loan 2386-PAK: Capacity Building for Punjab Government Efficiency Improvement
Asian Development Fund US$ 8.80 million
TA 7003-PAK: Effective Implementation of Punjab Government Efficiency Improvement Program
Technical Assistance Special Fund US$ 950,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Public sector management - Public administration
Gender Equity and Mainstreaming
Description

Building on the PRMP and other programs, PGEIP will support the GoPb in realizing the long-term goals expressed in Vision 2020, through which the government has committed itself to significantly improving the standard of living of the people of Punjab, especially the poor and vulnerable. The PGEIP will improve the overall functioning of the provincial, district, and municipal governments and the quality of public services. The improvements will take the following forms: (i) greater performance-oriented planning and budgeting; (ii) a more efficient civil service, with adequate incentives and merit-based appointment and career progression; (iii) a funded and well-managed pension system, which increases the

confidence of civil servants and the public, and generates fiscal space for high-priority investments in the social sectors; and (iv) greater private sector contribution to growth and facilitation of public-private partnerships.

As reforms in these areas are complex and take time to filter through the bureaucracy, PGEIP will be processed as a program cluster comprising three single-tranche SPs. This modality provides adequate flexibility to meet emerging reform needs and use program conditions genuinely for policy reform, rather than as rigid prescriptions. ADB's Management and Board will also have greater involvement in recommending measures for future operations within a cluster, in a way that is not possible in traditional multiple-tranche operations. Separate reports and recommendations of the President (RRPs) will be prepared for each subprogram. The policy matrix developed thus far for SP1 has indicative actions for SP2 and SP3. In addition, detailed action plans will be developed in combination with policy matrices to guide reforms. In order to ensure that all the six pillars of the Vision 2020 are in place,

the GoPb has also sought ADB's support for accelerating the attainment of the MDGs and implementation of provincial-level judicial reforms, in addition to the government efficiency improvements under PGEIP. In line with this request, ADB will also prepare two additional program clusters, namely the PMDGP and PAJP, in an integrated manner along with PGEIP over 2007-2011. The integrated approach and the preliminary details of the PMDGP and PAJP. The integrated approach will improve program coordination, reduce duplication, minimize inconsistency in policy advice and measures, and focus resources for desired outcomes.

The reforms under the three program clusters will accelerate and sustain economic growth, improve the delivery of public services, create more employment opportunities, and reduce poverty.

Project Rationale and Linkage to Country/Regional Strategy

The Punjab is the most populous province of Pakistan and has the largest provincial economic base in the country, accounting for 56% of the total population and over 50% of gross domestic product (GDP). The province has achieved robust economic growth and significant poverty reduction, matching its structural reforms, since early 2000. Yet reforms in many areas are only partial, poverty is still high at over 20%, and social indicators lag behind those in comparable low-income countries.

The government of Punjab (GoPb) has laid down an ambitious Vision 2020 aimed at doubling per capita income over the next decade. This will require sustained broad-based economic growth, which in turn demands large efficiency improvements in both the private and the public sectors, accompanied by better public resource management.

Through the Asian Development Bank (ADB) supported Punjab Resource Management Program (PRMP), implemented during November 2003-August 2007, the GoPb has introduced wide-ranging reforms in public resource management. It has enhanced revenues, rationalized expenditures, improved planning and budgeting, and developed the private sector and the civil service. In parallel, the GoPb has also implemented reforms in service delivery, through the ADB supported Punjab Devolved Social Services Program (PDSSP), and in

the judiciary, through the Access to Justice Program (AJP). Having laid down a broad foundation for reforms through these three major ADB interventions, and support from other development partners in the governance, education, and infrastructure sectors, the GoPb launched its second-generation reforms at the fourth Punjab Development Forum in April 2007. These reforms are centered on creating an effective public sector and fostering a dynamic private sector to achieve the Vision 2020 goals.

The key pillars of the second-generation reforms are the following: (i) efficient public financial management, to increase the fiscal space for higher pro-poor spending;

(ii) a fully funded and well-governed civil service pension system, to support prudent fiscal management and ensure retirement income security for civil servants;

(iii) civil service reforms, for a responsive, efficient, and effective civil service; (iv) broad measures supporting private sector development, for economic growth, job creation, and poverty reduction; (v) attainment of the Millennium Development Goals (MDGs) by 2015; and (vi) improved access to justice, for greater legal and regulatory certainty and enforceability in all economic spheres.

Impact Sustained high economic growth in the Punjab, with lower poverty incidence and improved delivery of public services
Project Outcome
Description of Outcome Greater efficiency in the allocation of scarce resources and greater responsiveness to citizens' needs.
Progress Toward Outcome The TA loan (2386-PAK) supports the implementation of policy actions under PGEIP. Currently, PGEIP SP3 is under preparation
Implementation Progress
Description of Project Outputs

Public resource management modernized and made more efficient

Civil service pension system made financially sustainable

Civil service efficiency and motivation enhanced

Greater private sector participation in economic activity, and a redefined role for the Punjab public sector

Status of Implementation Progress (Outputs, Activities, and Issues) A firm was hired in Spetember 2010 until the end of the project to support the reforms under CPA 1 Financial management and CPA 3 Civil Service Reform. Reforms under CPA 2 Pension Reforma and CPA 4 Private Sector Development are supported by individually hired consultants
Geographical Location Punjab, Pakistan
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The Government of Punjab (GoPB) has laid down an ambitious Vision 2020 which aims to double per capita income over the next decade. They has also implemented service delivery reforms through ADB-supported Punjab Devolved Social Services Program (PDSSP) and judicial reforms through the federal level Access to Justice Program. GoPb requested ADB to undertake the second generation reforms to continue the PRMP.
During Project Implementation The Chief Secretary of GoPb has provided the overall vision for the integrated framework. A high level steeeing committee established chaired by Chief Secretary of GoPb will continue to provide guidance on the integrated clusters including PGEIP. GoPb has established the PRMP PMU in the Planning and Development. PRMP PMU will closely work with ADB and implementing agencies.
Business Opportunities
Consulting Services Under the TA Loan, consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). A total of 40 person-months of international and 156 person-months of national consultants will be required.
Procurement Not applicable.
Responsible ADB Officer Priyanka Sood
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Planning & Development Departmentc/o Mountain Inn Hotel
Chitral, Pakistan
Timetable
Concept Clearance 30 Jul 2004
Fact Finding 16 Jul 2007 to 31 Jul 2007
MRM 29 Aug 2007
Approval 10 Dec 2007
Last Review Mission -
Last PDS Update 20 Apr 2011

Loan 2385-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2007 14 Dec 2007 21 Dec 2007 30 Jun 2008 - 12 Feb 2008
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 250.25 Cumulative Contract Awards
ADB 250.00 10 Dec 2007 250.00 0.00 100%
Counterpart 0.25 Cumulative Disbursements
Cofinancing 0.00 10 Dec 2007 250.00 0.00 100%

Loan 2386-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2007 14 Dec 2007 21 Dec 2007 31 May 2012 30 Jun 2012 26 Dec 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 8.80 10 Dec 2007 6.92 0.00 100%
Counterpart 1.20 Cumulative Disbursements
Cofinancing 0.00 10 Dec 2007 6.92 0.00 100%

TA 7003-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2007 22 Feb 2008 22 Feb 2008 31 Dec 2009 31 Dec 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
950,000.00 0.00 0.00 0.00 0.00 0.00 950,000.00 10 Dec 2007 484,176.66
Title Document Type Document Date
Punjab Government Efficiency Improvement Program: Completion Report Project/Program Completion Reports Sep 2014
Amendment to the Loan Agreement for Punjab Government Efficiency Improvement Program - Subprogram 1 between Islamic Republic of Pakistan and Asian Development Bank dated 18 September 2009 Loan Agreement (Ordinary Resources) Sep 2009
Capacity Building for Punjab Government Efficiency Improvement Program Project/Program Administration Manual Jun 2008
Project Agreement for Technical Assistance for Punjab Government Efficiency Improvement Program Implementation Support Project between Asian Development Bank and Province of the Punjab dated 14 December 2007 Project/Program Agreement Dec 2007
Loan Agreement for Technical Assistance for Punjab Government Efficiency Improvement Program Implementation Support Project between Islamic Republic of Pakistan and Asian Development Bank dated 14 December 2007 Loan Agreement (Special Operations) Dec 2007
Loan Agreement for Punjab Government Efficiency Improvement Program -- Subprogram 1 between Islamic Republic of Pakistan and Asian Development Bank dated 14 December 2007 Loan Agreement (Ordinary Resources) Dec 2007
Program Agreement for Punjab Government Efficiency Improvement Program -- Subprogram I between Asian Development Bank and Province of the Punjab dated 14 December 2007 Project/Program Agreement Dec 2007
Proposed Program Cluster Procurement Plans Oct 2007
Punjab Government Efficiency Improvement Program Reports and Recommendations of the President Oct 2007
Punjab Government Efficiency Improvement Program (Subprogram 1) Design and Monitoring Frameworks Aug 2007

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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