Reference para 89 / N.

The Aide Memoire regarding Bahawalpur Rural Development Project (BRDP) is a

comprehensive account of the findings of ADB’s PCR (8-21 July 2008) described
under five independent sections i.e. (i) Introduction, (ii) background, (iii) evaluation
of design and implementation, (iv) preliminary evaluation of performance and (v)
overall assessment and recommendations. Following are the comments pertaining to
each section:

Section I – Introduction:

• Comments and views expressed during the wrap up meetings at PMU and
P&DD are expected to be incorporated in the final aide memoire.

• The agreements reached, as set out in the Aide Memoire, may be followed up
for approval / further necessary action.

Section II – Background:

No specific comments are required. A brief account of the project design,

expected impact and chronology is given.

Section III – Evaluation of Design and Implementation

• The shift in project’s approach from grant based livelihood generation to cost
recovery from beneficiaries and private sector participation may be supported
due to its consistency with Government’s as well as ADB’s strategies in
Pakistan.

• Mission’s rating of the project as ‘excellent’ due to the achievement of

physical targets for Rural Roads, Watercourse Improvement, Small-scale
Infrastructure and Rural Electrification is appreciated. In most of the cases
project has surpassed the expected physical outputs.

• The component of Institutional Strengthening, however, has not been

considered as satisfactory. This may be given due attention in the proposed
phase II of the project by working out modalities for the strengthening of line
agencies as envisaged in the project design.

• Observations on the lack of maintenance of the rural roads constructed under

the project are noted. A comprehensive action plan for the rural roads
maintenance may be pursued in consultation with CWD and local
governments.

• The Mission maintains that no rigorous poverty targeting was done due to
lack of poverty data in most of the cases. The mission has highlighted the
deductions of PMU which led to the provision of services to the deserving
sections of society from a poverty perspective. A mutually agreed formula on
poverty targeting can lead to better assessment in future.
 • The objective of establishing the imprest account to facilitate pre-financing
project expenditures could not be realized due to the slow replenishment of
the fund. The detailed explanation regarding the pattern of disbursements in
1999 and the delays in replenishment is to be made by the mission after a
follow up with the Controller’s Department in Manila.

• Delays, overlaps and inconsistencies in some cases of road construction could

be averted by simplifying the role of implementing agencies. In this case one
agency out of three (CWD, CDA and LGRDD) could be made responsible as
far as the implementation of the rural roads component is concerned.

• Most of the conditions and covenants of loan agreement were complied.

However, the partly complied and non-complied covenants would require
serious attention in order to avoid the reduced poverty impact of such
projects in future.

Section IV – Preliminary Evaluation of Performance

• As opposed to the initial project design of targeting least served communities

of the defunct Bahawalpur Division the project was expanded to all the
tehsils. This would require an investigation into the intended and actual
impact of the project in relation to the objective of poverty reduction.

• PMU is required to provide data and demonstrate to the mission that the
widening of the 60 km section of the Yazman to Ahmadpur East road caused
a poverty impact.

• A comparative analysis of the financial and economic evaluation at design,

implementation and completion stages would be helpful in gauging the actual
costs incurred and benefits realized from the project.

• In order to ensure long-term sustainability of the project there is a dire need

to attend to the less likely components such as maintenance of rural roads,
institutional strengthening, capacity development of the line agencies,
viability of the COs and evolution of COs into multipurpose organisations.

• The original project design did not provide for the compensation costs
regarding the land acquisition and hence no budget allocation was made for
this category. The issue needs to be looked into carefully.

Section V – Overall Assessment and Recommendations

• Mission has rated the project as successful. Quantifiable achievements of

physical targets have been noted with an appreciation for the PMU. However,
despite its higher efficiency the effectiveness in terms of the impact in
relation to the overall objective of poverty reduction remains a matter of
further investigation. This is also because of the implementation of a
programme of scattered, small interventions over large area which is very
likely to limit its impact. The concerns about the sustainability of a grant
driven project also appear to be valid. For longer term solutions for poverty
reduction and rural development the approach of increasing dependency of
beneficiaries on external funding needs to be replaced with a cost recovery
approach with government and private sector solutions.

• The recommendations of the mission for the future projects mainly draw
upon the lessons learnt from the BRDP and thus may be endorsed.

Submitted please.

(Muhammad Awais)
Assistant Chief (RP)
Chief (RP)
 File No. 8(6)RP/P&D/2008
From:
Project Director,
BRDP
No. BRDP/25/2008/334 dated 13.11.2008
Subject:- LOAN 1467-PAK: BAHAWALPUR RURAL DEVELOPMENT
PROJECT DRAFT PROJECT COMPLETION REPORT

Comments of BRDP vis-à-vis RP Section are placed below (Flag “A”)

for your perusal please.
If approved, we may forward our final comments to BRDP to fine tune
the draft before we process it further.
Submitted please.
ASSISTANT CHIEF (RP)
17.11.2008
CHIEF (RP)
Report on above subject has been received from Asian Development
Bank (ADB) and same is circulated by ECA Section for commenting. Comments of
BRDP were also invited on this issue and same are placed at Flag “A”. This report
contains four chapters which include:
i) Project description
ii) Evaluation of design and implementation
iii) Evaluation of performance
iv) Overall assessment and recommendations.
Chapter four relates to overall assessment and recommendations, it is stated
that this project was successful in terms of achievement of physical targets of four out of
five components. The project has been more effective in terms of impact and targeting if
the process of delivery in project interventions have been focused to poverty reduction.
There were problems at design level which led to scattered small interventions over a
large area.
Views of ADB are partly agreed but it may be noted that project was
designed in consultation with ADB. All deliverables were managed in accordance with
design indicated in the approved document. Project was also an infrastructure project and
thus it was practically not possible to target the poor only.
Para 64 of the report may be taken into account while preparing future
projects of this nature.
Sr. Chief (ECA), P&D may be requested to consolidate these comments
to respond to ADB.
(MUHAMMAD ASLAM CH.)
CHIEF (RP/ENV/IND)
20.11.2008
SECRETARY, P&D
Subject:- MINUTES OF THE MEETING HELD ON 10.06.2009
UNDER THE CHAIRMANSHIP OF SECRETARY, P&D
TO DISCUSS THE WINDING UP OF BAHAWALPUR
RURAL DEVELOPMENT PROJECT (BRDP)

Minutes of the meeting held on 10.06.2009 under the

chairmanship of Secretary, P&D to discuss the Winding up of
Bahawalpur Rural Development Project (BRDP) are placed below for
approval please.

(Dr. Mahmood Khalid Qamar)

Chief (Regional Planning)
13.06.2009

SECRETARY, P&D
Subject:- Bahawalpur Rural Development Project

As desired by Secretary, P&D summary for the Chief

Minister Punjab regarding Bahawalpur Rural Development Project has
been prepared in Regional Planning Section and is placed below for
further necessary action.

(Dr. Mahmood Khalid Qamar)

Chief (Regional Planning)
16.06.2009

SECRETARY, P&D