ADB projects in Sindh facing delay

Published November 10, 2001

ISLAMABAD, Nov 9: A number of ongoing development projects being funded by the Asian Development Bank at a cost of $450 million in Sindh are experiencing delays in implementation due to unfamiliarity with bank’s procedures.

The delay was also being caused due to the government’s approval formalities and decisions on procurement matters.

According to an announcement made by the local office of the ADB here on Friday, the bank wanted to streamline various procedures so that unnecessary delays in completing the ongoing development projects in Sindh could be avoided.

To avoid delays, the ADB has decided to hold a 2-day workshop in Karachi on Nov 13-14 on project management. The main objective of the workshop is to familiarize the project directors/project mangers and relevant government officials with ADB guidelines and procedures on project management and related matters. A senior official of the Sindh’s Planning and Development Department will inaugurate the workshop.

The concerned resource persons of the bank will deliberate on all important aspects of project implementation, covering specifically ADB project cycle, guidelines on procurement, guidelines on consultant selection and disbursement procedures and financial management matters.

The ADB portfolio in Sindh consists of 15 loans, comprising three in agriculture and rural development sector, two in physical infrastructure, two in energy sector, seven in social infrastructure and one emergency assistance for drought. Total amount of these ongoing loans is $450 million.

The ADB will hold similar workshops in North West Frontier Province and Balochistan during the later part of December 2001. The bank had held similar workshop in Lahore and Karachi last month.

According to ADB Annual Report for 2000, although Pakistan has a good disbursement record, project implementation continued to be delayed. The government and the ADB agreed on comprehensive action plan - updated at each country portfolio review - that addresses policy and governance related covenants in loan agreements.

Difficulties in complying with covenants were attributed to lack of ownership, an unclear definition of responsibilities, inadequate follow up, and resource and capacity constraints. As a result of slowed project implementation, some loan closing dates had to be extended.

Since joining ADB in 1966, Pakistan has received 192 loans including 20 private sector loans without government guarantee, of which 51 were active at the end of 2000, bringing the cumulative loan figure to $7.5 billion.

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