PESHAWAR, Dec 3: The NWFP is not likely to get the World Bank loan’s second tranche during the second quarter of the current fiscal year, according to sources.

“Disbursement of the second instalment during the current quarter appears to be a remote possibility,” they said.

Provincial Finance, Development and Planning Minister Sirajul Haq had said in his budget speech that the province was likely to get the second tranche in November or December.

An official said there was no possibility that the instalment would be released during the current month.

“It may come somewhere during the third quarter as the two sides are still engaged in working out the modalities,” the official said.

The delay has partly been attributed to the provincial authorities’ failure to submit the restructured annual development programme for the  financial year to the World Bank as was required by it.

The bank had asked the provincial government to restructure the ADP and reduce the number of schemes to a reasonable level from the existing 1,150.

Sources said the authorities concerned could not accomplish the task at an early stage due to the involvement of a lengthy exercise as doing so required comprehensive planning.

“Reducing the number of schemes was not an easy task as a large number of schemes had been included with political considerations,” said a development planner.

The quarters concerned of the provincial government also cite the World Bank’s procedural requirements before disbursing the loan as a reason for the delay.

“A commitment is there on the part of the lending agency vis-a-vis disbursement of the second tranche but certain minor issues need to be resolved,” a government functionary said.

The first tranche of the loan was released in the first month of the last financial year.  

Though the funds had been put at the disposal of the provincial government, its development agencies found it difficult to utilize part of the amount at an early stage of 2002-03, the first year of the Provincial Reforms Programme.

Sources said the delay in the provision of the funds was likely to affect the implementation of the ADP.

The Rs14.69 billion ADP for the current financial year involves a component of about Rs3.8 billion to be diverted from the loan being extended under the World Bank’s structural adjustment programme.

An official said complete utilization of the funds would be a daunting task and the leftover funds would be reallocated to the agencies concerned for utilization in 2004-05.

“An understanding to this effect exists between the lending agency and the provincial government,” claimed the official.