ISLAMABAD, Aug 16: About 30 per cent of the Asian Development Bank’s approved loans amounting to $4.3 billion have been rated in ‘at risk’ category due to the implementation difficulties being experienced in various projects.
According to the local ADB office, the implementation difficulties included 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, and/or a lack of accountability regarding the management of development resources.
The provincial portfolio comprise 10 loans in Balochistan, 16 loans in NWFP, 14 loans in Punjab and 14 loans in Sindh (including umbrella projects). These projects were generally affected by these problems.
The bank said it has initiated consultations on a quarterly basis with each of the provincial governments with the objective of improving the implementation performance of ADB funded projects. These consultations supplemented the regular discussions held at the federal level with the Economic Affairs Division and the Planning Commission. Two cycles of provincial review held in 2001, the first cycle of reviews for 2002 was commenced in March and concluded in April.
The second cycle for the current year will start with the meeting in Sindh, scheduled to be held on Saturday (August 17). The meeting will be chaired by the provincial finance minister and will include representatives of the Department of Planning and Development, other line departments, and the Director General Audit (Sindh).
The ADB team will be led by its country director M. Ali Shah and will include sector specialists of Pakistan Resident Mission (PRM). The Sindh meeting will be followed by the meeting in Balochistan on August 21 and in Punjab and NWFP on August 23 and 28 respectively. For all meetings, minutes and an action plan are prepared recording the discussions held and agreements reached. Subsequent progress will be measured on the basis of the action plan agreements, which are monitored by the respective governments and PRM.