23 March 2004	Tuesday	01 Safar 1425

ISLAMABAD, March 22: Thirteen per cent of the 54 active loans constituting the Asian Development Bank's portfolio with an approved amount of $4.4 billion are "at risk", the ADB has cautioned.

This, said an ADB press release issued here on Monday, transpired from the provincial portfolio review meetings (PPRMs) and project-specific review held by the Pakistan Resident Mission (PRM) in 2001, 2002 and 2003.

Initiated in 2001, these reviews and regular discussions held at the federal level between the ADB and the Economic Affairs Division and the Planning Commission focused on both the current portfolio and future projects in the provinces.

The provinces support such regular consultations which enable improved project performance, according to the press release. These reviews have assisted in highlighting and addressing implementation difficulties which include the late start-up of project activities, delayed decision-making, lack of inter-agency coordination, inadequate or delayed release of counterpart funds, staffing issues, an inadequate understanding of ADB guidelines and requirements.

A major bottleneck, it was observed, was the lack of accountability regarding the management of development resources. According to the province-wise breakup of ADB loan portfolio, 16 loans pertain to Balochistan, 20 to the NWFP, 21 to Sindh and 23 to Punjab (including umbrella projects). These projects were generally affected by the problems mentioned above, the ADB remarked.

For 2003, it adds, the process would start with the first PPRM proposed to be held in Karachi on March 24, 2004. As in the past, the PPRMs would be chaired by the provincial Planning & Development/Finance Ministers and included, from the Government's side, the Planning & Development Department, respective line departments and project directors.

The five-member ADB team would be led by Country Director M. Ali Shah. The PPRMs in Punjab and Balochistan are expected to be held on March 26 and April 1, 2004, respectively. The NWFP PPRM would be held in the first week of April, 2004.

After the PPRMs, agreed action plans are prepared for each province and performance against the action plans is monitored by both ADB and the Planning and Development Department/Board concerned.