ADB is helping Pakistan rebuild vital infrastructure destroyed during the floods in 2010. The project will reconstruct damaged roads and bridges in the worst affected areas to safer, higher standards. It will also rehabilitate provincial irrigation systems, and upgrade flood protection embankments and other drainage infrastructure.
|Project Name||Flood Emergency Reconstruction Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change|
|Sector / Subsector||
Agriculture, natural resources and rural development - Irrigation
Transport - Road transport (non-urban)
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The package comprises a $654-million emergency loan (the Flood Emergency Reconstruction Project [FERP]) to help meet urgent reconstruction priorities, focused on transport (primarily roads and bridges) and irrigation. The proposed assistance package has been designed according to the priorities of the damage and needs assessment (DNA) prepared by ADB and the World Bank, in collaboration with the federal and provincial governments and other development partners.|
|Project Rationale and Linkage to Country/Regional Strategy||
1. Damage. The floods took place in mid 2010, affected 20 million people and caused 1,600 deaths. Basic transport infrastructure and irrigation facilities were badly damaged. The same happened to health and education centers, housing, agriculture, livestock, fisheries and livelihoods. 80 of the 110 districts across Khyber Pakhtunkhwa, Sindh, Punjab, and Balochistan were all seriously affected. About one-fifth of the country, equivalent to the size of England, was under floods. The total damage is estimated at $10 billion.
2. Government's response. The Government's response followed three phases: (i) rescue and relief, (ii) early recovery (temporary restoration), and (iii) reconstruction and rehabilitation. The first phase was handled by national agencies. The work was swift, effective and well coordinated, especially by the National Disaster Management Authority. External assistance (financial and in-kind) was mobilized quickly and from a wide range of sources, including the United Nations (UN) and leading nongovernment organizations. The UN launched a $2-billion appeal, raising $1.3 billion. This first phase of the response is now practically over with most of the affected people back in their villages, except small pockets of Khyber Pakhtunkhwa and parts of Sindh.
3. Early recovery phase started immediately after the floods subsided. The government's plan was to quickly and effectively restore services, and provide temporary housing and grants for restoring agriculture and basic livelihoods. This second phase involved all major national organizations, federal and provincial alike. The scale of work delayed the permanent reconstruction works (third phase) but this was necessary and inevitable. The early recovery response was structured primarily on unconditional cash transfer program targeting some 20 million people displaced by floods. This program was complemented by an appeal to international donors to extend new or additional financial resources in the form of grants, channeled through the national budget. The objective was to react quickly through quick-disbursing facilities. The program itself amounts to PRs40,000 rupees per family, with a first tranche of PRs20,000 made available soon after the floods. The remaining PRs20,000 have been directed at families with damaged houses. About $340 million have already been disbursed by the government for this purpose (from its own budget) and an additional $600 million were pledged by international donors including Italy, United Kingdom, United States, and the World Bank at the Development Forum held in Islamabad in December 2010. Several of these donors (including the World Bank) are now close to completing due diligence work, as well as fiduciary and fund flow arrangements, in support of the program. ADB is not part of this cash transfer program but, at the time of the floods, pledged $2 billion (over a four-year period) to help with the emergency, focusing on permanent restoration of priority services and related infrastructure reconstruction often the more complex and difficult part of the effort to finance. The World Bank pledged $1 billion. ADB did not have grant finance available for early recovery work. It did propose establishing instead a trust fund to raise grant money from donors interested in the reconstruction phase. ADB also expanded its trade facilitation program to Pakistan by $500 million, providing extra cover to emergency imports and experts during the reconstruction period and beyond. The focus by ADB on infrastructure is based on the government's request, its experience and track record in this area. This was also the sector assigned to ADB under the DNA. Housing, livelihoods and other early recovery operations were to be handled by the government and World Bank in collaboration with other donors.
4. The third phase of the response focuses on the permanent reconstruction and rehabilitation of priority physical assets. Work is underway in all provinces but the task is well short of being fully accomplished. Sindh is, by far, the worst affected province, with Punjab and Khyber Pakhtunkhwa following suit. Balochistan has much less damages than the others. Fund mobilization and initial reconstruction, including the rebuilding of schools and medical facilities, are fairly advanced in Punjab and Khyber Pakhtunkhwa, but less so in Sindh. This is mainly on account of an earlier start by the two provinces and a more successful fund-raising program from donors and internal reallocation. A number of these donors had a presence in these two provinces before the floods. This made the approval and channeling of funds easier adding new money via the existing programs. The scale of the damage and the corresponding financial burden on Sindh has been higher from the outset. Sindh responded, as well as others, to the floods but its reconstruction work was always going to lag because of time and scale. The floods spread into Sindh after subsiding elsewhere. Some parts of the province still have standing water today.
5. Transport and irrigation combined are the largest items in terms of damage (close to $3.3 billion). Housing follows with $2 billion. Education damages are around $500 million. Agriculture and livelihoods together account for $1.5 billion. With the exception of irrigation, the floods hit Sindh the hardest.
6. Highways, roads and bridges. The major damage is to national roads and bridges, followed by the road network in Sindh and Khyber Pakhtunkhwa. About 793 kilometers (km) of national highways (7% of the network), including bridges, need urgent repair to ensure their stability and public safety. About 24,000 km of provincial highways and many smaller access roads (representing 12% of the total provincial road network) are in bad shape. The bulk of problem centers on Sindh and Khyber Pakhtunkhwa (20% of their road networks affected).
7. Irrigation infrastructure. Khyber Pakhtunkhwa is the most affected, followed by Sindh, Punjab and Balochistan. The damages resulted from breaches in flood embankments along the Indus River. In Khyber Pakhtunkhwa, damages were caused mainly by flash floods. About 90% of crop production in the country is based on irrigated agriculture. In Khyber Pakhtunkhwa, over 5,700 irrigation structures were broken and a major headworks washed away. In Sindh, the major command area was inundated, affecting water sources to 1.5 million hectares (ha). Punjab's irrigation system damage was less extensive. However, its impact on the country's overall agriculture output is substantial since it accounts for 72% of the total crop area and 74% of the national production.
8. The Borrower's request: The government has requested ADB in February 2011 for a emergency assistance loan (EAL) with a three year implementation period to be completed before March 2014, for restoring priority infrastructure. The government's request was processed in 8 weeks, compared to 12 weeks provided for EAL processing after a disaster. The Operations Manual states that a proposed EAL must have an implementation period set normally up to two years for natural disasters and may be exceptionally extended for, at most, two additional years when the level of destruction and dislocation are deemed extreme. Since the flood was one of the largest in world history, the three years' implementation period proposed for FERP is reasonable.
|Impact||Economic and social recovery from the floods|
|Description of Outcome||Critical physical infrastructure to restore livelihoods and access to markets has been put in place. Assets are rebuilt back to their original standards or better.|
|Progress Toward Outcome||All awarded contract (except one NHA contract) completed.|
|Description of Project Outputs||
Road network system (including bridges) repaired and rehabilitated
Provincial irrigation facilities rehabilitated and reconstructed
|Status of Implementation Progress (Outputs, Activities, and Issues)||
NHA component consists of major rehabilitation and reconstruction of 347 km and 5 bridges in addition to works completed under retroactive financing and advance contracting. The major works is implemented through 19 contracts (6 ICBs, 12 NCBs and 1 force account method). The implementation closed on 25 May 2015. Of 19 awarded works, all were substantially completed except for S2 sub-project where three major hill slide protection works and damages caused during rains/floods of 2014 remain incomplete.
All 51 sub-projects (920.22 km road) have been completed and taken over by the project management consultant (PMC) as well as handed over to the provincial highway department. The overall achievement of the W&S component is 115% against the original scope.
2.199 million hectare of flood affected agricultural land is improved
109% of the damaged infrastructure is rehabilitated/strengthened/re-sectioned
|Geographical Location||Provinces of Khyber Pakhtunkhwa, Sindh, Punjab, Balochistan, and affected areas of AJK, Gilgit Baltistan, and the Federally Administered Tribal Areas.|
Summary of Environmental and Social Aspects
|Environmental Aspects||Except for one sub-project, classified as B, all other sub-projects are classified as C. For Category C sub-projects, environmental category checklist and sectoral IEEs were prepared and the EMP was included in the bidding documents. The compliance with EMPs are monitored and reported through the periodic monitoring reports. The one sub-project which is Category B, IEE has been approved by ADB and approval from the provincial Environmental Protection Agency has also been obtained and the monitoring of EMP is being carried out. The Grievance Redress Mechanism is fully functional as well as the Environmental and Safeguard Unit (ESU).|
|Involuntary Resettlement||One sub-project was classified as A which has been re-categorized to B, with the result that the entire project falls in Category-B. The resettlement plan on category B project was implemented and validated by third party consultant. The IR categorization check lists and due diligence report has been prepared which confirms that all other sub-projects fall under category C. The monitoring of IR compliances is carried out during construction and reported during the periodic monitoring reports. The Grievance Redress Mechanism is fully functional as well as the Environmental and Safeguard Unit (ESU).|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||An independent National Oversight Disaster Management Council with representation from civil society was tasked with progress monitoring and reporting.|
|During Project Implementation|
1. The following types of consultants will be engaged under the FERP:
(i) Three PMCs to be recruited and located in the PMU of each IA;
(ii) Individual consultants and/or firms recruited and funded under the ADB associated technical assistance (TA); and
(iii) National consulting engineering firms for design or design review and if required early construction supervision prior to mobilization of the PMC.
2. The core consulting services will be the PMCs with one consortium for each of the three IAs recruited by using Quality-Based Selection (QBS) or Quality- and Cost-Based Selection (QCBS) 90:10, and full technical proposal.. PMCs will be responsible for (i) overall management and coordination support to the federal and provincial IAs; (ii) procurement processing support; (iii) design, where design consulting firms have not been engaged, and where there is no conflict of interest, design reviews; (iv) construction supervision; (v) ensuring safeguard procedures are designed, planned, and implemented; (vi) monitoring financial control and disbursement procedures; and (vii) implementing the grievance redress system. In the interim period, prior to mobilization of the PMCs, the IAs may recruit a national consulting firm through single source selection or QCBS as a stop-gap arrangement, if required, to ensure design continuity and construction supervision. In addition, immediate support will be provided through the TA which will fund recruitment of individual consultants contracted directly by ADB. This TA will: (i) support the IAs in the recruitment of the PMC; (ii) support ongoing design and services provided by IA-recruited and government-funded national consulting firms; (iv) support preparation, implementation and monitoring of safeguard action plans, including consultations and social and gender analysis and implementation and monitoring of gender action plans; (v) establishment of financial control monitoring and disbursement procedures; (vi) design of a grievance redress system; and (vii) provide oversight and guidance through the procurement process including observer status on procurement committees.
3. The following recruitment arrangements will apply, which are subject to prior review of ADB, and may be unilaterally revised by ADB, if needed.
(i) Assignments below $300,000 will be advertised for seven calendar days and apply Consultants Qualification Selection (CQS) method and biodata technical proposal (BTP);
(ii) Assignments below $1,500,000 will be advertised for 14 calendar days with a choice of selection methods (QCBS, QBS, LCS or FBS) applying simplified technical proposals (STP) and shortlists of three firms which comprise of national firms;
(iii) Assignments above $1,500,000 will be advertised for 30 calendar days with a choice of selection methods (QCBS, QBS, LCS or FBS) applying full technical proposals (FTP) and shortlists of six firms which may comprise of national and/or international firms;
(iv) Single Source Selection (SSS) may be employed subject to ADB's prior approval.
(v) Firms and individuals selected under SSS will not automatically be held to have a conflict of interest and will be allowed to compete for downstream activity on ADB's approval.
(vi) Clarifications may be sought for omissions in consultants proposals based upon the same processes and rules applicable to the procurement of goods and works.
1. International competitive bidding (ICB) and national competitive bidding (NCB) procedures will be used. The contractors will be invited to submit bids based on the bill of quantities (BoQs), worked out for each package, using bidding procedures acceptable to ADB. Both pre- and post-qualification will be applied on case to case basis.
2. The following procurement arrangements will apply, and may be unilaterally revised by ADB, if needed.
(i) NCB works threshold is increased from $5 million to $10 million and the NCB bidding period may be reduced to a minimum of 14 days.
(ii) The ICB bidding period for goods and works may be reduced to a minimum 21 days.
(iii) Direct contracting may be used subject to ADB prior approval.
(iv) Subject to ADB prior review existing contracts may be varied by up to 100% of their value employing the same unit rates for emergency works
proximate to the project site.
(v) Bid security in the form of bank guarantees and insurance company bonds may be accepted.
(vi) Performance security will be required from successful contractors in the form of a bank guarantee or insurance company bonds for NCB
(vii) Maximum number of four partners in a joint venture (JV).
(viii) For contracts below $25 million the average construction turnover requirements may be reduced to 1 times value over time provided that the
bidder demonstrates adequate liquidity. Above this 1 1/4 times value will be employed.
(ix) In the case of joint ventures, deficiencies in qualifications of a partner may be addressed through conditional awards provided that the proposed
JV as a whole meets the aggregated criteria.
3. Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works.
Procurement Method and Threshold
International Competitive Bidding (ICB) for Works and threshhold is $10,000,000 and above
International Competitive Bidding for Goods and threshhold is $1,000,000 and above
National Competitive Bidding (NCB) for Works and threshhold is beneath that stated for ICB, Works
National Competitive Bidding for Goods and threshhold is beneath that stated for ICB, Goods
Shopping for Works and threshhold is below $100,000
Shopping for Goods and threshhold is below $100,000
4. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.
ICB Works, ADB prior review
ICB Goods, ADB prior review
NCB Goods/Works, ADB prior review of first contract and Post review for succeeding contracts
Shopping for Works, ADB post review
Shopping for Goods, ADB post review
|Responsible ADB Officer||Karki, Pawan|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Pakistan Resident Mission|
Pakistan National Highway Authority
Room No. 110, 1st Floor,
NC Building, Sector G-9/1
Islamabad, Pakistan Planning & Development Department, Sindh
Karachi, Pakistan Sindh Irrigation and Power Dept.
Government of Sindh
Building-II, Karachi, Pakistan
|Fact Finding||09 Mar 2011 to 22 Mar 2011|
|MRM||09 Mar 2011|
|Approval||30 Mar 2011|
|Last Review Mission||-|
|Last PDS Update||31 Mar 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|30 Mar 2011||14 Apr 2011||26 May 2011||30 Sep 2014||25 May 2015||08 Aug 2016|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||583.40||Cumulative Contract Awards|
|ADB||583.40||30 Mar 2011||164.92||0.00||100%|
|Cofinancing||0.00||30 Mar 2011||164.92||0.00||100%|
|Approval||Signing Date||Effectivity Date||Closing|
|30 Mar 2011||14 Apr 2011||26 May 2011||30 Sep 2014||-||15 Apr 2015|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||50.00||Cumulative Contract Awards|
|ADB||50.00||30 Mar 2011||40.40||0.00||99%|
|Cofinancing||0.00||30 Mar 2011||40.98||0.00||100%|
|Approval||Signing Date||Effectivity Date||Closing|
|30 Mar 2011||15 Apr 2011||15 Apr 2011||31 Dec 2014||30 Sep 2015||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|4,000,000.00||0.00||0.00||0.00||0.00||0.00||4,000,000.00||30 Mar 2011||2,677,557.03|
|Status of Covenants|
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.
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
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.
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