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Southern Punjab Poverty Alleviation Program

BRIEF REPORT REGARDING IFAD ASSISTED – SOUTHERN PUNAJB POVERTY ALLEVIATION PROJECT (SPPAP), BAHAWALPUR

The Southern Punjab Poverty Alleviation Project (SPPAP) was approved by ECNEC on May, 2011 and Administrative Approval was issued on 25.07.2011. The total Project costs, including physical and price contingencies, are estimated at Rs. 4,126.062 Million equivalent to US$ 49.120 Million. IFAD financed 81.8% of the Project costs (USD 40.2 million) through a loan to GoPb on highly concessionary terms. The Government of the Punjab Co-finance 11.5% of Project Cost (USD 5.6 million). The beneficiaries will contribute 6.8% of Project Costs (USD 3.3 million) through in-kind contribution. The Loan became effective on 30th September, 2011 with the signing of Financing Agreement. SPPAP is expected to be completed by 30th September, 2016 and closed by 31st March, 2017. The Project is being implemented in the four districts of South Punjab i.e. Bahawalpur, Bahawalnagar, Muzafargarh and Rajanpur. The main objective of the project is to increase incomes of 80,000 poor households by enhancing the employment potential of the people and increasing agriculture productivity and production.

              During the first year from receipt of 1st Withdrawal the Project was able to complete the necessary preparatory activities like identification of Poorest Tehsils, Union Councils and Villages / Community Organisations and initiated implementation of activities like asset transfer and identification and preparation of Community Physical Infrastructures (CPIs) Schemes etc. Moreover, after completion of all procedural, legal formalities and after making institutional arrangements Project started its activities in November, 2013.

SPPAP was considered Project at risk in 2014 with 9% disbursement after 3 years of implementation by the IFAD. As a result of realignment of activities with a partial cancellation of loan USD 10 Million by IFAD Mid Term Review (MTR) in Jan 2015 together with changes in management and active support of Planning and Development Department and IFAD, a tremendous improvement was achieved in performance of the Project. Disbursement of the Project improved from the pre MTR rate of 09 % to 89 % in one and half year. Based on performance, physical progress and financial utilization, status of the project was rates as satisfactory and was declared out of “Project at Risk” category by IFAD within 6 months after MTR. An IFAD Supervision Mission (Oct 2015) also estimated that due the accelerated performance of the Project and depreciation of SDR against USD, to ensure achievement of the desired impact objectives and to avoid any disruption in the institutional arrangements in view of possibility of financing of Phase II of the Project, there were an immediate need for additional financing. Therefore, a request was submitted to IFAD by the P&D Department through EAD for provision of additional/top up funding of USD 10 million along with one year extension in the gestation period of the project which was approved by the IFAD Executive Board on 17.12.2015.

 The Physical and financial position of project is given as under: - 

PHYSICAL PROGRESS UP TO 30TH JUNE 2016 UNDER SPPAP.

Component

Sub-Component

Intervention

Overall Project Target

Achievement in FY 2013-14

Achievement in FY 2014-15

Achievement in FY 2015-16

Cumulative  Progress

Livelihood Enhancement

Asset Creation

Small

/Large/ Ruminant

30,000

4,346

16,035

9,697

30,078

Small Land Plot

1,300

398

637

261

1,296

Vocational Training Organization (VTO)

-

11,555

-

5,022

6,670

11,692

Enterprise Training Organization

(ETO)

-

3,081

-

1,623

1,525

3,148

Community Physical Infrastructure (CPI)

Demand Driven

826

229

597

-

826

Low Cost Housing

1,300

 

 

976

976

Agriculture & Livestock Development

Productivity Enhancement Initiatives (PEI)

-

10,057

3,537

5,006

1514

10,057

Community Service Providers (CSP)

-

368

89

154

125

368

Food Bank

-

1,600

-

-

1,600

1,600

Revolving Fund For Agriculture Input Supplies

-

1,600

-

-

1,600

1,600

 

FINANCIAL POSITION UPTO 30TH JUNE, 2016

Financial Year

Rs in Million

Releases

Expenditure

IFAD

Gopb

Total

IFAD

Gopb

Total

2012-13

0

22.400

22.400

-

7.910

7.910

2013-14

323.507

50.046

373.553

321.481

50.046

371.527

2014-15

1211.032

195.781

1406.813

1071.677

195.781

1267.458

2015-16

996.657

108.325

1104.982

996.657

108.325

1104.982

Total

2531.196

376.552

2907.748

2389.815

362.062

2751.877

Over All %age Utilization on Releases = 95%

 

To accelerate and expedite the progress of the project, following necessary measures were adopted by the Govt. of Punjab, Planning and Development Department, Lahore: -

 

  1. Addendum to agreement was approved and signed with Social Mobilization Partner (NRSP) for provision of additional resources to achieve the increased targets including low cost housing component;

  2. Additional posts (One Procurement Officer, One Admin & Accounts Officer and One Accounts Assistant) for PMU along with establishment of DMU, Bahawalpur were approved and completed the recruitment  process;

  3. Two Short-Term Consultants (Financial Expert and M&E Expert) were hired as stop gap arrangements;

  4. Most of the recommendations of First, Second, MTR and Supervision IFAD Missions (24th Jan-06th Feb, 2014, 06-11, May, 2014, 6-21 January, 2015, 28 Sep to 07 Oct, 2015) were addressed;

  5. Services of the major Implementing Partners i.e. VTO, ETO were hired

  6. The process for hiring Service Providers for imparting trainings to 200 Para Vets was completed;

  7. Initial advance account was also got enhanced up to US$ 1.00 Million after the approval of Economic Affairs Division of Pakistan and IFAD.

  8. The replenishment time of Withdrawal Applications was also tangibly squeezed

  9. Revised PC-1 of SPPAP was approved by the PDWP in its 35th meeting held on 28.04.2016.

To achieve the project targets viz-a-vis funds utilization, during the squeezed project period; following steps have been adopted to achieve the future plan;

  1. Swift replenishment of Withdrawal Applications;

  2. Focus on to accelerate work on Low Cost Housing for Poor women by preparing a comprehensive implementation strategy  after approval of Project Steering Committee (PSC); Currently, the project had transferred the funds for 862 schemes of low cost housing component into COs joint bank accounts and 453 units has been completed in all respect.

  3. 100% Implementation of new initiatives (Food Bank and Revolving Fund For Agriculture Input Supplies);

  4. Annual Work Plan and Budget Plan for the FY-2016-17 has been prepared and submitted to P&D Department for approval;

  5. Financial Information System (FIS) (Quick Book) has been installed and become operational;

  6. Management Information System (MIS) has been installed and become operational

  7. To ensure the shifting of poor women and their families to the newly constructed houses, Social Appraisal Study for Low Cost Housing for Poor Women was conducted through an individual Consultant which has been dully approved by the Project Steering Committee (PSC) in its 04th meeting held on 05.09.2015. The results of the report declared highly satisfactory.

  8.  95% Audit Paras/Observation of SPPAP Accounts for the FY 2012-13, 2013-14 and 2014-15 have been settled in the SDAC meeting held on 16.03.2016.

  9. Geo-Tagging Application of SPPAP Interventions (CPIs including Low Cost Housing, Vocational & Enterprise Trainings) has been developed in support of Punjab Information Technology Board (PITB) and becomes operational.

  10. Documentary on SPPAP interventions has been produced and presented in IFAD APR workshop held at Bali, Indonesia in October, 2015.  IFAD and its allied projects highly appreciated the documentary internationally.

  11. To disseminate the project performance globally, SPPAP website has been developed. 

Presently, the SPPAP Project is now on fast track and execution of the Project Interventions is at full swing. It is expected that the project will able to achieve the targets as envisaged in its PC-1 on time and in an effective manner within the approved project period.