Technical Assistance Report

Project Number: 53070-002

Transaction Technical Assistance (TRTA)
November 2019

Islamic Republic of Pakistan: Preparing the Punjab

Agriculture Markets Development Project

Distribution of this document is restricted until it has been approved by the Board of Directors.
The views expressed
Following hereinADB
such approval, are those of the consultant
will disclose and doto
the document not necessarily
the public in represent
accordancethose of ADB's
with ADB’s
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Access to Board of Directors,
Information Policy.Management, or staff, and may be preliminary in nature.
 CURRENCY EQUIVALENTS
(as of 30 October 2019)
Currency unit – Pakistan Rupee (PKR)
PKR1.00 = $0.0064
$1.00 = PKR155.70

ABBREVIATIONS

ADB – Asian Development Bank

AFD – Agence Française de Développement
PAD – Punjab Agriculture Department
PAMRA – Punjab Agricultural Markets Regulatory Authority
TRTA – transaction technical assistance

NOTE

In this report, "$" refers to US dollars unless otherwise stated.

Vice-President Shixin Chen, Operations 1

Director General Werner Liepach, Central and West Asia Department (CWRD)
Director Donneth Walton, Environment, Natural Resources, and Agriculture
Division, CWRD

Team leader Ahsan Tayyab, Principal Natural Resources Economist, CWRD

Team members Lariza Abenojar, Associate Project Analyst, CWRD
Giap Minh Bui, Principal Natural Resources and Agricultural
Economist, CWRD
Shaheryar A. Choudhry, Senior Investment Officer, Private Sector
Operations Department (PSOD)
Nurlan Djenchuraev, Senior Environment Specialist, CWRD
Shinsuke Kawazu, Senior Counsel, Office of the General Counsel
Ashfaq Ahmed Khokhar, Senior Safeguard Officer, CWRD
Salman Moeed Mian, Senior Project Officer, CWRD
Stephen Peters, Senior Energy Specialist, Sustainable
Development and Climate Change Department (SDCC)
Mian Shafi, Senior Project Officer, CWRD
Muhammad Ali Sheikh, Associate Financial Control Analyst, CWRD
Noor Ullah, Investment Specialist, PSOD

Peer reviewers Md. Abul Basher, Natural Resources and Agriculture Specialist,
SDCC

In preparing any country programs 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.
 CONTENTS

Page

TRANSACTION TECHNICAL ASSISTANCE AT A GLANCE

I. THE ENSUING PROJECT 1
II. THE TECHNICAL ASSISTANCE 1
A. Justification 1
B. Outputs and Activities 1
C. Cost and Financing 2
D. Implementation Arrangements 2
APPENDIXES
1. COST ESTIMATES AND FINANCING PLAN 5
2. LIST OF LINKED DOCUMENTS 6
 Project Classification Information Status: Complete

TRANSACTION TECHNICAL ASSISTANCE AT A GLANCE

1. Basic Data Project Number: 53070-002
Project Name Preparing the Punjab Agriculture Department/Division CWRD/CWER
Markets Development Project
Nature of Activity Project Preparation Executing Agency Agriculture Department,
Government of the Punjab
Modality Regular
Country Pakistan

2. Sector Subsector(s) ADB Financing ($ million)

Agriculture, natural Agricultural policy, institutional and capacity development 0.15
resources and rural
development
Agro-industry, marketing, and trade 0.15
Rural market infrastructure 0.15
Rural solid waste management 0.15
Total 0.60
qq

3. Operational Priorities Climate Change Information

Addressing remaining poverty and reducing inequalities Climate Change impact on the Project Low
Accelerating progress in gender equality
Tackling climate change, building climate and disaster
resilience, and enhancing environmental sustainability
Making cities more livable
Promoting rural development and food security
Strengthening governance and institutional capacity
Sustainable Development Goals Gender Equity and Mainstreaming
SDG 2.3, 2.5 Effective gender mainstreaming (EGM)
SDG 6.3
Poverty Targeting
General Intervention on Poverty
4. Risk Categorization Low
Qq

5. Safeguard Categorization Safeguard Policy Statement does not apply

qq

6. Financing
Modality and Sources Amount ($ million)
ADB 0.60
Transaction technical assistance: Technical Assistance Special Fund 0.60
Cofinancing 0.20
Cooperation Fund for Project Preparation in the Greater Mekong 0.20
Subregion and in Other Specific Asian Countries (Full ADB Administration)
Counterpart 0.00
None 0.00
Total 0.80

Currency of ADB Financing: US Dollar

q

Source: Asian Development Bank

This document must only be generated in eOps. 05112019165806514828 Generated Date: 04-Dec-2019 16:19:17 PM
 I. THE ENSUING PROJECT

1. The proposed project will finance the establishment of a modern holistic wholesale
agriculture market in Punjab, Pakistan. It supports the government’s agriculture policy by
establishing new and modern wholesale markets that will lead to enhanced value addition, quality
improvement and reduction in transaction costs. Success of these markets will lead to increased
productivity, improved processing and storage capacity, and reduced post-harvest losses. It will
improve the agriculture sector growth of Punjab.

2. The project will have two outputs: (i) a modern wholesale agriculture market established;
and (ii) capacity of Punjab Agricultural Markets Regulatory Authority (PAMRA) to regulate
agriculture markets enhanced. These outputs will result in the following outcome: volume of
agriculture produce auctioned at new markets increased. The project will be aligned with the
following impact: improvement of agriculture produce markets and strengthening of institutional
capacity. The project is preliminarily estimated to cost $165 million. 1 Based on the outcome of the
investment feasibility and whether a pure public sector or a public-private partnership (PPP)
model is finalized for the project, Asian Development Bank (ADB) may finance $100 million from
its ordinary capital resources, the Cooperation Fund for Project Preparation in the Greater
Mekong Subregion and in Other Specific Asian Countries 2 may provide up to $50 million, and the
government $15 million through exemptions of taxes and duties for imported goods, works, and
services and other in-kind support. These resources may be complemented by ADB’s private
sector investment resources in partnership with a private entity in case of a PPP model. 3

II. THE TECHNICAL ASSISTANCE

A. Justification

3. The transaction technical assistance (TRTA) 4 will help ADB, Agence Française de
Développement (AFD) and the government prepare the project, in particular, the TRTA will help
with: (i) conducting the investment feasibility study and due diligence; and (ii) developing a
masterplan for development of sustainable agriculture marketing environment and agricultural
markets in Punjab including a roadmap for capacity building of a new agriculture markets regulator
and food supply and distribution chain organization.

B. Outputs and Activities

1. Output 1— Project investment feasibility study conducted

4. The activities include: (i) investment feasibility for developing a new and modern holistic
wholesale agriculture market in Lahore; (ii) recommendations on possible sites for developing up
to three other wholesale agriculture markets in Punjab 5; (iii) recommendations for an operational
and business model for a proposed new market at Lahore; (iv) financial and economic analysis
of the project for Lahore site to validate economic viability and financial sustainability; (v)

1 The project is included in the Country Operations Business Plan 2020-2022 for Pakistan.
2 Financing Partner: Government of France.
3 ADB. 2017. Report and Recommendation of the President to the Board of Directors: Proposed Loan, Administration

of Grant and Administration of Technical Assistance Grant to the Islamic Republic of Pakistan for Enhancing Public-
Private Partnerships in Punjab Project. Manila.
4 The proposed TRTA first appeared in the business opportunities section of ADB website in September 2019.
5 Punjab Agriculture Department has suggested Okara, Dera Ghazi Khan and Rawalpindi as potential sites that require

new markets.
2

engineering design for the proposed market in Lahore; (vi) environmental impact assessment and
mitigation plan related to direct impacts of project activities; (vii) evaluation and recommendations
on different project financing modalities; (viii) social and gender assessment and plan for
enhancing inclusion and impact of the project; (ix) evaluation and recommendations on greater
private sector involvement in investment and operations of the proposed project including possible
PPP modalities; (x) evaluation of land acquisition and resettlement issues for compliance with
ADB policies; and (xi) climate mitigation potential assessment of the project design as well as its
food losses reduction potential.

2. Output 2— Masterplan for development of agricultural markets in Punjab

prepared

5. The activities include: (i) assessment of current agriculture marketing system; (ii)
preparation of masterplan for development and modernization of sustainable agriculture markets;
(iii) recommended roadmap for implementation of masterplan; (iv) design of capacity development
activities for PAMRA; and (v) preparation of suitable models of regulation and agriculture market
management and assessment of needs for further development.

C. Cost and Financing

6. The TRTA is estimated to cost $800,000, of which $600,000 6 will be financed on a grant
basis by ADB’s Technical Assistance Special Fund (TASF-6) and $200,000 will be financed by
the Cooperation Fund for Project Preparation in the Greater Mekong Subregion and in Other
Specific Asian Countries 7 and administered by ADB. The cost estimates and financing plan are
in Appendix 1.

7. The government will provide counterpart support in the form of office space for TRTA
consultants, counterpart staff, data and information access, and facilitation of liaisons with
stakeholders during the feasibility study. The government was informed that approval of the TRTA
does not commit ADB to finance any ensuing project.

D. Implementation Arrangements

8. ADB will administer the TRTA. The Punjab Agriculture Department (PAD) will be the
executing agency for the TRTA. The Environment, Natural Resources, and Agriculture Division
of ADB’s Central and West Asia Department will act as the focal point and coordinator of
consulting inputs and activities. The proposed TRTA will be implemented over 18 months, from
November 2019 to April 2021. Disbursements will be made in accordance with ADB's Technical
Assistance Disbursement Handbook (May 2017, as amended from time to time). The
implementation arrangements are summarized in Table 1.

Table 1: Implementation Arrangements

Aspects Arrangements
Indicative implementation period November 2019 – April 2021
Executing agency Punjab Agriculture Department
Consultants To be selected and engaged by ADB:
QCBS (Consulting 44 person-months $ 500,000
Firm for preparing

6 Contribution of ADB TASF may be reduced if other funding sources may also show interest in contributing to the
TRTA.
7 Financing partner: Government of France.
 3

Aspects Arrangements
feasibility study
and masterplan)
ICS (Individual 12 person-months $ 200,000
Consultants for
supporting firm)
Advance Contracting Advance contracting will be used to recruit consultants.
Disbursement The TA resources will be disbursed following ADB's Technical Assistance
Disbursement Handbook (2017, as amended from time to time).
Asset turnover or disposal arrangement None
upon TA completion
ICS = individual consultant’s selection; QCBS = quality and cost-based selection.
Source: Asian Development Bank.

9. Consulting Services. The TRTA will require (i) a team of consultants of approximately
12 person months of international and 32 person-months of national experts, and (ii) about 06
person-months of international and 06 person-months of national individual experts. The TA
consultant team that will be engaged through a firm will be responsible for feasibility study and
project design (Output 1) and preparing masterplan (Output 2) and will be selected through quality
and cost based (QCBS) method. Individual consultants will be responsible for rapid assessment
of regulatory, operational and business needs critical for project design by firm. Individual
consultants and the consultant team will be engaged under lump-sum and performance-based
terms. Consultants will be engaged in accordance with ADB’s Procurement Policy (2017, as
amended from time to time) and its associated project administration instructions and/or staff
instruction. 8 The indicative expertise and corresponding person-months for firm and individual
consultants are in Tables 2 and 3, respectively.

Table 2: Summary of Indicative Consulting Firm Services Requirement

International National
Expertise (person- (person- Total
months) months) (person-months)
Wholesale Market Design Specialist / Team Leader 3 3
Agriculture Market Infrastructure Specialist / Deputy Team 3 3
Leader
Climate Change Specialist 3 3
Renewable Energy Specialist 3 3
Agriculture Markets ICT Specialist 3 3
Architect 3 3
Civil Engineer 3 3
Social Safeguards and Resettlement Specialist 3 3
Gender and Social Development Specialist 3 3
Agriculture Value Chain Specialist 3 3
Environmental Specialist 2 2
Agricultural Economist 3 3
Financial Management Specialist 3 3
Procurement Specialist 3 3
Legal Specialist 3 3

TOTAL 12 32 44
Source: Asian Development Bank.

8 The terms of reference for consultants by consulting service package (accessible from the list of linked documents
in Appendix 2).
4

Table 3: Summary of Indicative Individual Services Requirement

International National
Key Experts (person- (person- Total
months) months) (person-months)
Agriculture and Wholesale Markets Specialist / TA
Coordinator 3 3
Agriculture Markets Regulatory Specialist 3 3
Horticulture Markets and Linkages Specialist 3 3
Agriculture Policy Specialist Specialist 3 3
TOTAL 6 6 12
Source: Asian Development Bank.
 Appendix 1 5

COST ESTIMATES AND FINANCING PLAN

($’000)
Item Total Cost
a
A. Asian Development Bank

1. Consultants
a. Remuneration and per diem
i. International consultants 262.5
ii. National consultants 262.5
b. International and local travelb 15.0
c. Reports and communications 7.5
2. Training, Seminars, and Conferencesc 15.0
3. Miscellaneous administration and support costsd 7.5
4. Contingencies 30.0
Subtotal (A) 600.0
B. Cooperation Fund for Project Preparation in the
Greater Mekong Subregion and in Other Specific Asian
Countries e

1. Consultants
a. Remuneration and per diem
i. International consultants 87.5
ii. National consultants 87.5
b. International and local travelb 5.0
c. Reports and communications 2.5
2. Training, Seminars, and Conferencesc 5.0
3. Miscellaneous administration and support costsd 2.5
4. Contingencies 10.0
Subtotal (B) 200.0
Total 800.0
Note: The TA is estimated to cost $800,000, of which contributions from the Asian Development Bank
(ADB) and the Financing Partner: Government of France, are presented in the table above. The
government will provide counterpart support in the form of office space for TA consultants, counterpart
staff, data and information access, and facilitation of liaisons with stakeholders during the feasibility study.
The value of the government contribution is estimated to account for 10% of the total TA cost.
a Financed by the ADB Technical Assistance Special Fund (TASF 6). In case additional

resources are available, ADB TASF component may be reduced.

b Includes international visits to selected wholesale markets.
c Includes at least four consultation workshops.
d Includes translation and interpretation expenses.
e Financing Partner: Government of France, Administered by the Asian Development Bank.

Source: Asian Development Bank estimates.

6 Appendix 2

LIST OF LINKED DOCUMENTS

http://www.adb.org/Documents/LinkedDocs/?id=53070-002-TAReport

1. Terms of Reference for Consultants