ISLAMABAD: The Asian Development Bank (ADB) has expressed concern over slow progress of project implementation in Agriculture, Natural Resources and Rural Development (ANR) mainly in Punjab and the Federally Administered Tribal Areas (Fata).

The Manila-based lending agency is currently providing more than $750 million to provincial governments and regional authorities under the ANR portfolio of nine loans for seven projects.

In the latest annual review for the financial year 2015-16, the ADB said the main challenges in the ongoing portfolio primarily in Punjab were contract management of ongoing projects, sustainability of reforms and associated operations and management (O&M) of rehabilitated infrastructure by farmers management organisations and associations.

The O&M performance is an important factor for consideration in the design of future green-field projects like Jalapur, Greater Thal and Cholistan irrigation projects. “In some contracts, there are significant slippages from work programme, leading to extensions of time in contracts,” the ADB noted and proposed incentivising good performing contracts.

Also, the bank noted that the Fata Water Resources Development Project did not have a good start due to unattractive salary packages, longer recruitment process and subsequent delays associated with establishing project management units.

It said the project success rate in the previous country partnership strategy (CPS) ending 2015 remained high as three integrated, multi-sector, rural and area development projects completed in 2012-13 were rated successful to highly successful. On the contrary, the Agribusiness Development Project was rated unsuccessful.

During the current CPS period (2016-19), no project was completed except for Sindh irrigation component of Flood Emergency Reconstruction Project (FERP) which was implemented successfully and the loan accounts were not closed in 2015. The project was completed at 99 per cent of the estimated cost and was able to achieve targets.

Against the appraisal target of restoring 59 million cubic metres carrying capacity, it restored 41.2 billion cubic metres; rehabilitated, reconstructed and strengthened 103 flood embankments measuring 1,453km against the target of 81 flood embankments with an estimated length of 1,000km. About 2.2 million hectares of agricultural land was protected and restored against the appraisal target of 1.5 million hectares.

All damaged flood embankments, canals and drains identified in donor need assessment were rehabilitated, strengthened and re-sectioned against the appraisal target of 90pc.

The Fata Water Resources Development Project was approved in December 2014 with $41.03 million of concessional development funds and the PC-1 was approved by Ecnec in March last year. The loan was signed in April and declared effective on Aug 7, 2015.

“The project is experiencing significant start-up delays. The Peshawar-based project management unit (PMU) and the three project implementation units (PIU) for the project area (Bajaur, Khyber and Mohmand agencies) were established in second quarter of 2016. Procurement activities are also delayed. As a result, the project is rated as ‘Actual Problem’,” the ADB said.

The CPS 2015-19 on ANR envisaged development of water resources through supporting both investments and reforms in the sector, mainly through continued assistance for Punjab Irrigated Agriculture Investment Programme Development (PIAIP) under $900 million multi-financing facility and planned assistance for rehabilitation and upgrading of irrigation infrastructure in Balochistan, Fata, Khyber Pakhtunkhwa and Punjab.

Published in Dawn October 19th, 2016