Pakistan: National Trade Corridor Highway Investment Program - Tranche 3

Sovereign Project | 40075-043 Status: Active
 
Project Name National Trade Corridor Highway Investment Program - Tranche 3
Project Number 40075-043
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Loan

Source of Funding / Amount
Loan 3197-PAK: National Trade Corridor Highway Investment Program - Tranche 3
Ordinary capital resources US$ 87.80 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome Since the Project is in its initial construction stage the outcome can not be measured.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Construction of 19.099 km (Sarai Saleh to Havelian)

Physical progress on package 3 is 48.11% achieved vs planned progress of 46.99%.

Social Safeguards implementation is complied with the ADB's Safeguards Policy

Geographical Location Khyber Pakhtunkhwa Province

Summary of Environmental and Social Aspects

Environmental Aspects The Project is a new alignment through areas that are sparsely populated, therefore an Environment Category A project; there are no protected areas in the vicinity with no significant or thick vegetation. As required by and ADB's Safeguard Policy Statement (2009) and the EARF for the MFF an EIA was prepared for the entire alignment of E35. Climate change risks and mitigation measures were also considered in the design. The draft EIA was disclosed on 20 March 2012 on both the ADB and NHA websites. Public consultations were conducted with communities along the alignment in 2009 and 2012, respectively; community concerns were addressed through the EIA and incorporated into the Project design.
Involuntary Resettlement

The project is classified as category A for involuntary resettlement. The land acquisition and resettlement framework and a LARP was approved by ADB and disclosed in November 2013. The LARF and LARP were prepared in accordance with ADBs SPS 2009 and an independent land valuation study was also conducted to determine and pay compensation at full replacement costs to DPs.

A total of 285.34 acres of land has been fully acquired for the project construction. Total DPs are 6632, out of which 3752 DPs (56%) have been compensated an amount of PRs352.5 million (86% of total payable 408.3 million). The remaining amount of PRs. 55.8 million (14%) is yet to be paid to about 2,880 DPs. The average amount of compensation to be paid to the remaining DPs is very small, i.e. Rs.1944/ which has to be paid to the DPs through bank accounts. Majority of DPs (1720) neither have their bank accounts already opened nor do they wish to do so due to the cost of opening bank account being higher than the amount of compensation itself. Compensation to other unpaid DPs is slow due to the legal and administrative impediments. NHA and its Social Safeguard Management Consultant (SSMC) is requesting district revenue department to consider making cash compensation to such DPs, but a mechanism of cash payments is yet to be finalized.

Safeguards Capacity Strengthening through LAR Training: The project design and monitoring framework (DMF) requires (a) improvement in NHAs institutional capacity in social safeguards management; and (b) at least 30 NHA staff trained in social and environment issues. The SSMC, hired by NHA under institutional strengthening component of the loan, has so far conducted several LAR training events at PIU and NHAs regional offices in Peshawar, Quetta and Karachi and over 50 officials of NHA and consultants including project contractors have been trained in better social safeguards management.

The land acquisition and resettlement framework has been updated, endorsed by NHA, cleared by ADB and disclosed on ADB and NHA websites. The LARP was prepared in accordance with the approved updated LARF, the Land Acquisition Act of 1894 and ADB's SPS (2009), and was disclosed to displaced persons and uploaded to the ADB and NHA websites in November 2013. An independent land assessment study is under process for the Project to identify gaps (if any) between valuation by government and ADB replacement cost. The result of the independent valuation will be duly incorporated into the LARP.

Social Safeguards: A total of 849.55 acres of land has been fully acquired for the project. About 3,659 APs (55% of total 6,632 APs) have been paid an amount of Rs. 308.8million (85%) from the total land compensation amount of Rs. 359.3 million. The remaining amount of Rs. 50.4million (15%) is yet to be paid to about 2,925 APs. The payment process is slow due to the procedural requirements of Land Acquisition Act 1894 (LAA). There are about 1,720 APs required to open their bank accounts to receive payment of land compensation. They are not doing so because of their compensation amounts being less than the cost of opening the bank accounts. The APs want to be compensated in cash through a mechanism different from the LAA procedure that requires opening up of bank account. NHA and its Social Safeguard Management Consultant (SSMC) are discussing the matter with Land Acquisition Collectors (LACs of Punjab and Khyber Pakhtunkhaw) about how this could be done. NHA is preparing EOT of SSMC to support and expedite payments to APs.

Safeguards Capacity Strengthening through LAR Training: The project's design and monitoring framework (DMF) requires (a) improvement in NHA's institutional capacity in social safeguards management; and (b) at least 30 NHA staff trained in social and environment issues. The SSMC, hired by NHA under institutional strengthening component of the loan, has so far conducted several LAR training events at PIU and NHA's regional offices in Peshawar, Quetta and Karachi. Over 50 officials from NHA's staff, contractors and consultants participated and ranked the training sessions as quite useful. NHA is planning to organize a training workshop for its core project staff with focus on trouble shooting of project implementation issues. The SSMC will prepare a training module in consultation with NHA and impart training sessions through more knowledgeable and senior safeguard experts. The training date and venue will be decided next month.

Indigenous Peoples No indigenous people are identified in and around the Project corridor.
Stakeholder Communication, Participation, and Consultation
During Project Design All the affected persons in communities were involved in the project impact and socio-economic survey and assessment. On various occasions during meetings, interviews, focus group discussions, public consultation workshops, and community consultation meetings, local representatives participated in the planning and their concerns have been integrated into the construction design, EIA, and LARP. Before implementation, the village leaders and elders will further discuss and consult with the affected persons to ensure that their interests are protected as per ADB guidelines and the relevant laws of Pakistan. NHA will disclose the LARP locally in the communities, in the local language. The LARP will also be posted on ADB 's website and resettlement information booklets in the local language distributed to affected households prior to tranche approval. The resettlement information booklet contains the resettlement scope, project schedule, compensation rates for land and other assets, relocation and economic rehabilitation' strategies, and grievance redress mechanisms.
During Project Implementation Consultation with national stakeholders will continue during implementation.

Business Opportunities

Consulting Services Not Required.
Procurement

Construction of Sarai Saleh-Havelian Expressway Section (E35-III), Estimated value US$116.6 million

Procurement of goods, civil works, and services financed from the ADB loan under the project will be done in accordance with ADB's Guidelines for Procurement (2013, as amended from time to time). To ensure competition, international competitive bidding procedures will be adopted.

Responsible Staff

Responsible ADB Officer Karki, Pawan
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
National Highway Authority
Room No. 110, 1st Floor,
NC Building, Sector G-9/1
Islamabad, Pakistan

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
PDS Creation Date 21 Oct 2009
Last PDS Update 17 Mar 2017

Grant 0435-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Jul 2015 01 Sep 2015 08 Oct 2015 17 Dec 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 31 Jul 2015 0.00 33.54 86%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 31 Jul 2015 0.00 30.21 77%

Loan 3197-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2014 01 Sep 2015 08 Oct 2015 10 Dec 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 110.80 Cumulative Contract Awards
ADB 87.80 25 Nov 2014 70.11 0.00 80%
Counterpart 23.00 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2014 30.60 0.00 35%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
PAK: National Trade Corridor Highway Investment Program - Tranche 3 Advance Notice Archived 09 Jan 2015

Contracts Awarded

No contracts awarded for this project were found