Completion Report

Project Number: 39631-013 Loan Number: 2213 Grants Numbers: 0029, 0037 November 2012

Pakistan: Earthquake Emergency Assistance Project

CURRENCY EQUIVALENTS

Currency Unit – Pakistan rupee/s (PRe/PRs)

At Appraisal At Project Completion

PRs1.00 = $0.0167 $0.0107 $1.00 = PRs59.72 PRs93.65

ABBREVIATIONS

ADB – Asian Development Bank ADF – Asian Development Fund AGP – Auditor General of Pakistan AJK – Azad Jammu and Kashmir AJKED – Azad Jammu and Kashmir Electricity Department BHU – basic health unit CGA – Controller General of Accounts CIF – cost, insurance, and freight CPRM – country portfolio review meeting DDC – district departmental committee DCO – district coordination officer EARF – environmental assessment and review framework EMP – environmental management plan EIRR – economic internal rate of return ENPV – Economic net present value ERRA – Earthquake Reconstruction and Rehabilitation Authority FCU – Federal Coordination Unit FHA – Frontier Highway Authority FMIS – financial management information system GAP – gender action plan GDP – gross domestic product ICB – international competitive bidding IESCO – Islamabad Electricity Supply Company IRP – Islamic Republic of Pakistan JFPR – Japan Fund for Poverty Reduction kV – kilovolt KP – Khyber Pakhtunkhwa LARP – land acquisition and resettlement plan M&E – monitoring and evaluation MOF – Ministry of Finance NADRA – National Database and Registration Authority NCB – national competitive bidding NHA – National Highways Authority NIC – national identity card NGO – nongovernment organization NWFP – North-West Frontier Province PDNA – preliminary damage and needs assessment PEF – Pakistan Earthquake Fund PESCO – Peshawar Electricity Supply Company PIU – project implementation unit

PRM – Pakistan Resident Mission PWD – person with disabilities RA – reconstruction agency RHC – rural health center RRP – Report and Recommendation to the President SC – steering committee SDR – special drawing rights SHYDO – Sarhad Hydro Development Organization SMC – school management committee TA – technical assistance TEVTA – technical and vocational training authority VOC – vehicle operation cost VPAP – vulnerable people action plan VRC – village reconstruction committee

NOTES

(i) The fiscal year (FY) of the government and its agencies ends on 30 June. Financial year before a calendar year denotes the year in which the fiscal year ends, for example, FY2012 ends on 30 June 2012.

(ii) In this report, ―$‖ refers to U.S. dollars.

Vice-President X. Zhao, Operations 1 Director General K. Gerhaeusser, Central and West Asia Department (CWRD) Director W. Liepach, Pakistan Resident Mission, CWRD Team leader M. Shafi, Senior Project Officer, Pakistan Resident Mission, CWRD Team members A. Zafar, Portfolio Management Officer, Pakistan Resident Mission,

CWRD N. Islam, Project Analyst, Pakistan Resident Mission, CWRD

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page

BASIC DATA i

I. PROJECT DESCRIPTION 1

II. EVALUATION OF DESIGN AND IMPLEMENTATION 1

A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 5 D. Disbursements 6 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Related Technical Assistance 7 I. Consultant Recruitment and Procurement 8 J. Performance of Consultants, Contractors, and Suppliers 8 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 10

III. EVALUATION OF PERFORMANCE 10

A. Relevance 10 B. Effectiveness in Achieving Outcome 11 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 12 E. Impact 13

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13

A. Overall Assessment 13 B. Lessons 14 C. Recommendations 15

APPENDIXES

1. Project Outputs 16 2. Consulting Services 35 3. Project Cost 36 4. Yearly Contract Award and Disbursement 38 5. Project Implementation Schedule 39 6. Status of Compliance with Loan Covenants 41 7. Procurement Analysis 72 8. Economic Analysis 73 9. Azad Jammu and Kashmir Secondary Data 76 10. Status of Gender and Vulnerable Groups Action Plans 77

BASIC DATA A. Loan Identification 1. Country 2. Loan Number Grants Numbers 3. Project Title 4. Borrower 5. Executing Agency 6. Amount of Loan (Original ADF) (Revised ADF) Amount of Grant (0029) (Original) (Revised) Amount of Grant (0037) 7. Project Completion Report

Number

Pakistan 2213-PAK(SF) 0029-PAK, 0037-PAK Earthquake Emergency Assistance Project Islamic Republic of Pakistan Earthquake Rehabilitation and Reconstruction Authority Ministry of Finance SDR154.227 million ($220.0 million equivalent) SDR162.509 million ($232.5 million equivalent) $80.0 million $137.5 million $37.5 million PCR:PAK 1374

B. Loan Data 1. Appraisal – Date Started – Date Completed 2. Loan Negotiations – Date Started – Date Completed 3. Date of Board Approval 4. Date of Financing Agreement 5. Date of Loan Effectiveness – In Financing Agreement – Actual 6. Closing Date – In Financing Agreement – Actual – Number of Extensions

7. Terms of Loan – Interest Rate

– Maturity (number of years) – Grace Period (number of years)

10 November 2005 15 November 2005 1 December 2005 2 December 2005 13 December 2005 23 December 2005 23 March 2006 14 February 2006 30 June 2009 30 June 2011 2 1% per year 40 years 10 years

8. Disbursements a. Dates

Initial Disbursement

28 February 2006

Final Disbursement

(upon loan account closure)

Time Interval

(upon loan account closure)

Effective Date

14 February 2006

Original Closing Date

30 June 2009

Time Interval

40 months

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b. Amount (SDR’000) for Loan 2213(SF)

Category or Subloan

Original Allocation

Last Revised Allocation

Amount Canceled

Net Amount

Available Amount

Disbursed Undisbursed

Balance

Equipment and Materials

Education 1,752 708 1,044 (442) 819 (111) Health 7,361 3,583 3,778 964 2,033 1,550 Transport 1,052 350 702 (21) 133 217 Power 24,186 15,100 9,086 5,200 9,418 5,682 Civil Works Education 10,515 16,400 (5,885) 1,556 13,087 3,313 Health 8,412 8,400 412 227 7,378 1,022 Transport 72,557 79,650 (7,093) (1,340) 74,054 5,596 Power 3,856 5,500 (1,644) (560) 5,575 (75) Quick-Disbursing

24,536 24,536 0 0 24,536 0

8,282 (8,282) 0 8,282 0 Total 154,227 162,509 (8,282) 5,584 154,315 15,194

Amount ($’000) for Grant 0029

Category or Subloan

Original Allocation

Last Revised

Allocation Amount

Canceled Amount

Disbursed Undisbursed

Balance

Legal Assistance, Governance, and Institutional Building

2,500 2,800 (300) 1,679 1,121

Incremental Administrative Support

5,000 10,171 (5,171) 8,463 1,707

Education 0 929 790 139 ERRA 0 3,360 3,014 346 Power and Transport

0 4,000 2,833 1,167

Health 0 542 1,034 (493) Education, NWFP 1,340 792 548 Consulting Services

7,500 17,988 (10,488) 17,608 380

Education 0 2,678 2,548 130 Health 0 4,100 2,816 1,284 Power and Transport

0 9,040 10,070 (1,030)

Education, NWFP 0 2,170 2,174 (4) Civil Works 34,070 (34,070) 26,388 7,681 Education 0 6,668 6,148 520

Health 0 7,008 6,513 495

Education, NWFP 0 20,394 13,727 6,666

Equipment and Material

6,321 (6,321) 3,481 2,840

Education 0 679 404 275

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Health 0 342 361 (19)

ERRA 0 500 291 209

Education, NWFP 0 4,800 2,425 2,375

Services Charges 1,150 (1,150) 0 1,150 Pending Claims Quick-Disbursing 65,000 65,000 0 65,000 0 Pending Claims 5,251 (5,251) Imprest Advance 85 (85) Undisbursed (commitment letter)

427 (427)

Total 80,000 137,500 (57,500) 128,383 9,117 () = negative.

Amount ($’000) for Grant 0037

Category or Subloan Original

Allocation Amount

Disbursed Undisbursed

Balance

Civil Works 31,970 27,817 4,153 Equipment and Materials 1,470 1,797 (327) Consulting Services 2,210 2,245 (35) Incremental Administrative Support

1,100 520 580

Service Charge 750 0 750 Total 37,500 32,379 5,121

() = negative.

9. Local Costs (Financed) - Amount ($) Local and foreign cost breakdown not

applied in the loan financial information system.

- Percentage of Local Costs

- Percentage of Total Cost C. Project Data 1. Project Cost ($ million)

Cost Appraisal Estimate Actual

Foreign Exchange Cost 240.7 Local and foreign cost

breakdown not applied in the loan financial information system.

Local Currency Cost 133.5

Total 374.2 448.3

2. Financing Plan ($ million)

Cost Appraisal Estimate Actual

Implementation Costs Borrower Financed 69.8 69.4 ADB Financed 300.0 378.8 Other External Financing Total 369.8 448.3 Interest During Construction Costs Borrower Financed 4.4 0.0 ADB Financed 0.0 0.0 Other External Financing 0.0 0.0 Total 374.2 448.3

ADB = Asian Development Bank.

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3. Cost Breakdown by Project Component ($ million)

Component Appraisal Estimate Actual

A. Asian Development Bank Financing

1. Quick-Disbursing 100.0 115.6 a. Grant financing 65.0 65.0

b. Loan financing 35.0 50.6 2. Project Components

a. Equipment and Materials 49.0 24.1 i. Education 2.5 5.9 ii. Health 10.5 3.5 iii. Transport 1.5 0.2 iv. Power 34.5 14.5

b. Civil Works 136.0 208.4 i. Education 15.0 67.9

ii. Health 12.0 17.9 iii. Transport 103.5 114.1 iv. Power 5.5 80.6

c. Implementation Assistance 15.0 30.8 i. Legal assistance, governance, and institutional

building 2.5 1.7

ii. Incremental administrative support 5.0 9.3 iii. Consulting services 7.5 19.9

Subtotal (A) 300.0 378.8 B. Government Financing (counterpart)

1. Physical Works 51.5 31.8 i. Education 5.1 2.0 ii. Health 5.6 2.7 iii. Transport 29.8 26.3 iv. Power 11.0 0.8

2. Taxes and Duties 18.3 37.6 i. Education 1.0 18.3 ii. Health 1.6 1.5 iii. Transport 5.2 7.6 iv. Power 2.5 0.9 v. Quick-disbursing 8.0 9.2

3. Interest During Implementation 4.4 0.0 Subtotal (B) 74.2 69.4

Total Project Cost 374.2 448.3

4. Project Schedule

Item Appraisal Estimate Actual

Date of Contract with Consultants Planning and Management – Education, AJK July 2006 12 June 2007 Health Services in AJK July 2006 23 April 2007 Construction Supervision – Health Sector in AJK July 2006 9 October 2008 Design and Construction Supervision – Transport Sector,

Khyber Pakhtunkhwa July 2006 23 April 2007

Design and Construction Supervision – Power Sector, AJK January 2007 17 May 2007 Design and Construction Supervision – Transport Sector,

Shangla, Khyber Pakhtunkhwa July 2006 30 May 2008

Planning and Management – Education, Khyber Pakhtunkhwa

July 2006 11 March 2008

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Component Appraisal Estimate Actual

Social Mobilization under Education Sector, Khyber Pakhtunkhwa

No estimate 22 April 2009

Master Training under Education Sector, Khyber Pakhtunkhwa

No estimate 1 January 2010

Completion of Engineering Designs December 2006 June 2008 Civil Works Contract Date of Award January 2007 31 August 2007 Completion of Work December 2008 30 June 2011 Equipment and Supplies Dates First Procurement July 2006 22 August 2007 Last Procurement March 2009 25 May 2010 Other Milestones

5. Project Performance Report Ratings

Implementation Period

Ratings

Development Objectives Implementation Progress

From 1 December 2005 to 31 December 2010

Satisfactory Satisfactory

From 1 January 2011 to 30 June 2011 On track On track

D. Data on Asian Development Bank Missions Name of Mission

Date

No. of Persons

No. of Person-Days

Specialization of Members

Appraisal 10–15 November 2005 2 10 a, b Inception 3 February–25 April

2006 3 32 b, c, d

Review 1 5–9 February 2007 1 5 b Midterm review 3 September–19

October 2007 7 44 b, d, e, f, g, h, i

Review 2 26 March–30 April 2008 7 37 b, d, g, h, i, j, k Review 3 14 October–7

November 2008 8 42 b, d, g, g, i, j, k, l

Review 4 20 July–20 August 2009 7 32 b, d, g, h, j, k, l Review 5 21 November–22

December 2010 1 18 b

Review 6 26–28 April 2011 2 6 b, k Project completion review 12 June–20 July 2012 3 60 b, c, d

a =.senior transport specialist, b = senior project officer, c = project officer, d = project analyst, e = control officer, f = procurement officer, g = project coordinator (consultant), h = transport consultant, i = staff consultant (safeguards compliance), j = social sector coordinator (consultant), k = monitoring and evaluation specialist (consultant), l = financial management specialist (consultant)

I. PROJECT DESCRIPTION

1. On 8 October 2005, Pakistan suffered a magnitude 7.6 earthquake that was the most debilitating natural disaster in its history. According to figures provided by the Government of Pakistan, approximately 73,000 people died and more than 70,000 were severely injured or disabled. More than 2.8 million people were left without shelter and 2.3 million people without adequate food. The overall cost of relief and reconstruction associated with the earthquake was estimated at $5.2 billion.1 An estimated 324,000 jobs were lost, affecting about 29% of the population previously employed in the districts hit by the quake. Widows and children, in particular, were at risk of having little or no access to supplies and services. 2. On 14 November 2005, ADB approved the establishment of the Pakistan Earthquake Fund (PEF) to support the government’s reconstruction efforts.2 The PEF included an initial grant contribution from ADB of $80 million. On 13 December 2005, ADB approved the Earthquake Emergency Assistance Project (EEAP), using a grant of $80 million from the PEF and a loan of $220 million3 equivalent from ADB’s Asian Development Fund (ADF) resources. Through three subsequent approvals—in December 2006, and March and September 2007—ADB increased the funding for the project from the original $300 million equivalent to $407.5 million equivalent, including cofinancing with full administration by ADB.4 3. The project covered five districts in the province of Khyber Pakhtunkhwa (KP) and four districts in the state of Azad Jammu and Kashmir (AJK). The expected impact of the project was to reverse the devastating impact of the earthquake and so revive economic activity and enable people to resume their livelihoods and return to normal life. This was to be achieved primarily through rehabilitating and reconstructing damaged and destroyed infrastructure as quickly as possible, an effort that would particularly assist the poor and other vulnerable people. 4. The project had three components: (i) quick-disbursing assistance for import financing, (ii) project sector components, and (iii) implementation assistance. These components were designed to support each other to mitigate earthquake losses in the affected communities and provide rapid rehabilitation and reconstruction of priority infrastructure.

II. EVALUATION OF DESIGN AND IMPLEMENTATION

A. Relevance of Design and Formulation

5. The project design was relevant at appraisal and completion. The project objectives, scope, and design were in line with the broad earthquake reconstruction strategy outlined in the preliminary damage and needs assessment (PDNA) that was led by ADB and the World Bank and endorsed by the government. The PDNA was a collective output of all major donors, federal and provincial line agencies, local governments, and nongovernment organizations (NGOs), involving extensive consultations. The strategy stressed fast-track reconstruction of priority assets in the social sector that were resilient to disaster, restoration of livelihoods using local

1 ADB and World Bank 2005. Preliminary Damage and Needs Assessment. Islamabad.

2 ADB 2005. Board Paper. 2005. Pakistan Earthquake Fund (Established by ADB with additional contributions from

the governments of Australia, Belgium, Finland, and Norway). Manila. 3 Loan 2213-PAK (SF) for the project was in SDR amounting to 154.2 million.

4 The project includes grant of $137.5 million (Grant 0029-PAK) from the PEF, a co-financing grant of $37.5 million

(equivalent to €30 million -Grant 0037-PAK) and a loan of SDR162.5 million (equivalent to $232.5 million) from

ADF.

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capacities, and strong oversight and coordination to ensure transparency and reduce overlaps. The project funded the development and implementation of monitoring and accountability procedures. In addition, it focused on reconstructing priority social and economic assets to the ―multi-hazard-resistant‖ standards necessary for restoring lives and livelihoods. 6. The project was not part of ADB’s Country Strategy and Program for Pakistan. Nonetheless, at appraisal and completion the project was consistent with ADB’s Disaster and Emergency Assistance Policy. 5 The policy emphasizes that emergency projects should be designed to mitigate immediate losses to priority assets, capacity, or productivity. The project focus on priority infrastructure in education, health, power, and transport limited its scope to reconstructing assets that support basic needs and were essential to the restoration of productivity and normal life in the area affected. In addition, the incremental support component focused on restoring and strengthening the capacities of the borrower to respond to the disaster and to provide legal assistance and governance support to the most vulnerable so that they could access services and entitlements. 7. The project was designed on the basis of the PDNA, without any preparatory technical assistance. During implementation, major changes were made in scope, design, and costing. These changes were in line with the project objectives and intended outcomes. The scope changed mainly the social sector component, which enhanced the focus on priority assets. B. Project Outputs

8. The project had three components: (i) quick-disbursement assistance, (ii) project sector components, and (iii) implementation assistance. 9. Quick-Disbursing Component. In accordance with ADB’s Policy (footnote 5), a portion of the proposed project (a $65 million grant from the PEF and a $47.5 million equivalent loan)6 was used for quick-disbursing assistance to partly finance the unusually high and unplanned import expenditures required for emergencies. The performance of the quick-disbursing component was satisfactory. It financed imports of mainly fuel and emergency equipment out of the list of import items agreed at the project design stage.7 The imports were completed in 2006. 10. Project Sector Components. The cost of the project sector components was revised from $185 million equivalent, from ADF resources, to $258.8 million equivalent using additional contributions from the PEF and cofinancing from the European Union (EU). 8 The sector component was to be used to rehabilitate and reconstruct earthquake-damaged roads, as well as education, power, and health facilities, by providing civil works, equipment and materials, and using appropriate construction standards. Key project outputs are listed in Appendix 1. 11. Transport Sector. The transport sector component aimed to rehabilitate and reconstruct major roads and bridges damaged by the earthquake to pre-quake or higher standards. The

5 ADB. 2004. Disaster and Emergency Assistance Policy. Manila; ADB. 2004. Disaster and Emergency Assistance.

Operations Manual. Sections D7/BP and D7/OP. Manila. 6 The loan allocation was increased from initially $35 million equivalent to $47.5 million equivalent by re-channeling

back to Pakistan some saving from other projects in Pakistan. ADB. 2007. Use of Loan Savings for Emergency Rehabilitation and Reconstruction of Earthquake-Affected Areas in Pakistan (R33-07). Manila.

7 ADB. 2005. Report and Recommendation to the President for the Earthquake Emergency Assistance Project,

Manila. 8 The Board approved the revised allocation and scope of the project through a Board paper (R154-07), and the

management approved a minor change in scope and cost of the project on 25 February 2010.

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component covered roads and bridges (i) in AJK under the National Highways Authority (NHA),9 the Public Works Department, and the Local Government and Rural Development Department, and (ii) in KP under the Frontier Highway Authority (FHA) and district governments. 12. The outputs of the transport sector component were satisfactory. About 1,000 km of the 2,000 km of damaged roads identified in the PDNA met the project selection criteria. Contracts were awarded for 376 km of major roads, 501 km of link roads, and 53 bridges with a total length of about 2.8 km. At completion, 301 km of major roads, 492 km of link roads, and all bridges were reconstructed and rehabilitated. The remaining 84 km of roads were only partially completed because of delays caused by contractors or by additional damages from the 2010 floods. Except for two roads in AJK which had quality issues that were being addressed according to the terms of the respective contracts, the quality of the outputs was satisfactory. 13. Power Sector. The power sector component comprised rehabilitation and reconstruction of the power generation and supply system damaged by the earthquake. This included (i) rehabilitating nine hydropower stations; (ii) supplying and installing equipment on 132 lines (33 kV and 11 kV) and ten substations; (iii) constructing ten substation buildings and staff quarters; (iv) supplying and installing 0.4 and 0.22 kV low-voltage lines; (v) installing service connections to consumers; (vi) providing spare parts, vehicles, and tools; (vii) installing transformers, meters, and service connections and paying for electricity supply to the tent villages and relief camps; and (viii) installing service connections to model villages established after the earthquake. 14. The outputs of the power sector component were satisfactory. All nine hydropower stations were repaired and rehabilitated. About 450 km of 33 kV and 11 kV lines were restored. Eight grid-station buildings were reconstructed. About 250 km of low-voltage lines were supplied and installed. In AJK and KP, 84,587 service connections were installed for consumers. Spare parts, operational vehicles, and tools worth $1 million were procured by power sector agencies. A total of 1,292 transformers were installed. Electricity connections were provided to tent villages and relief camps, and $3.6 million was paid for their electricity fees. 15. Social Sector. The social sector component focused on the reconstruction and rehabilitation of damaged and destroyed health and education facilities. 16. The revised scope (footnote 8) of the health sector component included (i) reconstructing 1 district headquarters hospital (DHQH), 2 tehsil 10 headquarter hospitals (THQH), 1 rural health center (RHC), and 26 basic health units (BHUs), including wards, operating theaters, outpatient departments, and staff quarters; (ii) providing all essential medical equipment to the hospitals and BHUs, including ambulances and supplies; and (iii) constructing proper waiting areas with toilets and water for visitors. 17. The outputs of the health sector component were satisfactory. One DHQH, 2 THQHs, 1 RHC, and 26 BHUs were reconstructed to multi-hazard-resistant standards. All hospitals and BHUs were supplied with the required equipment and furniture. Dedicated waiting areas and toilets, water connections, wards, operating theaters, and outpatient departments were provided in all reconstructed facilities. The equipment was fully tested, and staff trained in its use. 18. The revised scope for the education sector included (i) repairing and reconstructing 309 partly or completely destroyed government middle school buildings in AJK and 126 primary,

9 The NHA was included as an implementing agency through a major change in scope approved on 27 July 2007.

10 Each district comprises of two to three administrative units called tehsils.

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middle, and high school buildings in KP11 with improved seismic designs, latrines, and offices; (ii) providing essential furniture and equipment for the reconstructed schools as well as an additional 180 government schools in KP; (iii) training trainers for teachers training; and (iv) assessing and advising on school health services. 19. The outputs of the education sector component were satisfactory. In AJK, contracts were awarded for all 309 middle schools. At project completion, 305 had been fully reconstructed to multi-hazard-resistant standards. The remaining 4 partially completed schools were subsequently completed using government funds. All 309 schools were supplied with essential furniture and equipment. Master trainers were trained and, in turn, trained 656 teachers. In total 328 school management committees (SMCs) were formed and trained in health and hygiene, school safety, environmental and disaster management, and first aid services. 20. In KP, contracts were awarded for 124 primary, middle, and high schools. Of these, 105 were substantially complete before the grant closed. The remaining 19 schools were at various stages of construction, with all supplies and furniture procured. All 124 schools were supplied with water and sanitation facilities and with furniture, and 79 had electrical connections. School furniture was also provided to 166 other government-financed schools in the project area. No master trainers were trained because this activity was being financed through other sources. Moreover, 124 SMCs were formed and oriented on health hygiene, school safety, environmental management, and disaster risk reduction and management. 21. Implementation Assistance. The revised cost of the implementation assistance component approved by ADB (footnote 8) was $34.3 million, as compared with the $15.0 million estimated at appraisal. The scope included (i) consulting services, (ii) incremental staff and operational support for implementing agencies, and (iii) legal assistance and governance assistance. The cost of the component increased because of 2-year delay in implementation, the 36% increase in ADB financing, and the underestimation of costs at the appraisal stage. 22. The outputs of the consulting services component were partially satisfactory. The consultancy services envisaged an estimated input of 1,500 person-months at appraisal; 2,906 person-months had been used at completion (Appendix 2). Eight consultancy firms were hired for services related to: education (one each in AJK and KP), health, transport (one for AJK, two for KP, and one for the NHA), and power sectors. The scope of activities included planning, detailed design, construction supervision, and activities related to social safeguard compliance. In addition, four individual consultants were hired to support activities in the health sector in AJK. The consultancy services were 6.2% ($19.9 million) of the cost of the project’s sector component at completion, as compared with the 3.0% ($7.5 million) estimated at appraisal. 23. The outputs of the incremental staff and operation subcomponent were satisfactory. The subcomponent included the cost of staff assigned to strengthen the capacity of the Earthquake Rehabilitation and Reconstruction Authority (ERRA) and to establish project implementation units (PIUs) in the line agencies. Dedicated PIUs to implement and manage project activities were established for all sector components in each implementing agency and in the ERRA. The PIUs were staffed and provided with offices, equipment, vehicles, and operational support. The cost of this component was increased from the $5 million estimated at appraisal to $9.3 million at completion. The cost at completion was within the revised cost approved by ADB (footnote 8).

11 ADB. 2007. Earthquake Emergency Assistance Project, increase in financing (R154-07). Manila.

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24. The outputs of the legal assistance, governance, and institutional building subcomponent were satisfactory. The outputs were financed either fully or partly by ADB; multiple agencies were involved. The scope of the subcomponent included five elements:

a) Support for the replacement of registration and disability certificates, and property titles: mobile units with male and female staff were established to issue new identity and registration cards, and to verify compensation claims. Procedures for registration were simplified. Three new units established in the revenue department reconstructed the records of the 21 revenue units most affected by the earthquake; they handled lost land titles, compensation, and resettlement issues. b) Legal assistance to earthquake victims to address legal and documentary issues: 18 centers for free legal aid were established, with male and female staff available for widows and orphans. About 26,300 cases related to guardianship, compensation, property, and registration were registered; 96% (36% of which were registered by women) of the cases were resolved within 2 years. c) Establishment of a decentralized mechanism for private dispute resolution and grievances: four project-financed special courts in the affected districts of AJK settled 2,700 of 3,450 cases registered in the 15 months of their operation. Complaints against public offices increased to 4,507 in 2009–2010 as activities picked up. ADB-funded staff in the ombudsman office disposed of 4,259 (94%) of them. d) Training and awareness for judges, district officials, and the public on disaster emergency issues: ADB provided consultants to the law department to improve existing legislation and formulate new legislation addressing calamities, disaster management, and child protection. All legislation related to disasters were compiled, translated into local languages, and posted on the department’s website. A judicial conference financed by the project oriented lawyers and judges on issues related to affected population and new legislation. The project established a training institute that trained 500 staff from the revenue department in handling issues related to earthquake recovery.

e) Strengthening of the capacity to provide vocational training for women and disabled people: the project financed the initial operations of the department of industries that facilitated the establishment of the technical and vocational training authority (TEVTA) in 2007. As of 2012, about 37,700 people had been trained by the TEVTA—in computers, construction, surveying, crafts, and machine operations—using funds from other donors.

C. Project Costs

25. During implementation, there was a major change in the cost of the project. ADB funding was increased by 36% to accommodate additional contributions (para. 2). The cost of project components approved at appraisal, the revised cost approved in the interim, and the actual cost at completion are provided in Appendix 3. 26. At completion there were no major cost over-runs or under-runs, except for the underutilization in the education component in KP which occurred also because the education component was overestimated. When the grant and loan closed, 23 of 433 schools remained incomplete. The minor cost under-runs in other categories were caused mainly by exchange rate gains between the U.S. dollar and Pakistani rupee. A minor increase in component costs owing to delays and to design changes slightly reduced the project’s economic benefits.

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D. Disbursements

27. At appraisal, there was no specific disbursement schedule. The overall timeline of the project was 36 months, but this was overoptimistic: disbursement took more than 72 months. The annual disbursements of the project are listed in Appendix 4. The disbursements were low until 2007 and high in the last two years of the project. The slow pace of the initial disbursement was caused by the delays in establishing PIUs and awarding contracts. Most contracts were awarded by 2008, and after that the pace of disbursements increased. 28. To expedite disbursement, the ERRA established three imprest accounts, one for the loan and one each for the two grants for eligible project expenditures up to $100,000. Anything above this amount was paid directly by ADB. The imprest account was liquidated or replenished using statement-of-expenditure dispensation. However, owing to difficulties in retaining qualified accountants in districts and PIUs, most payments were made through the funds advanced to provincial reconstruction authorities. The disbursement of loans worked effectively, but grant disbursements were delayed because of the centralized management in ADB. The delays were considerably reduced in the last two years of the project, when the disbursement of grants was decentralized to the Pakistan Resident Mission (PRM). The internal control of the ERRA and the provincial reconstruction authorities was satisfactory. However, toward the end of the project, ADB delayed the reconciliation of project accounts due to disbursement overload, and the quality of the ERRA’s withdrawals application deteriorated as their key staff were demobilized. These weaknesses prevented the loan and grant accounts from being closed on time. E. Project Schedule

29. The implementation of the project was delayed, and ADB extended the project for two years, to 30 June 2011. The implementation schedule is in Appendix 5. The original schedule was overoptimistic. The project was for emergency assistance, and implementation was to start immediately after approval and be completed within 36 months. The period was considered appropriate at appraisal despite the weakened absorptive capacity of the implementing agencies. The agencies’ capacities were overestimated, because the project budget was about eight times as large as the historical annual budget for the affected areas, and the earthquake affected the absorptive capacity across the board, including not only the agencies but also the private sector. Additional time was also required to deliver the 36% increase in ADB financing. Some known factors were underestimated—the difficulty of access, the limited construction season (6–8 months), the low availability of labor, and the erratic weather. Other factors that contributed to delays included the national energy crisis, a severe shortage of materials as a result of high demand and low production, escalated security concerns, and the 2010 floods. F. Implementation Arrangements

30. The implementation arrangements were satisfactory. The approach was to develop special-purpose agencies (the ERRA and provincial reconstruction authorities) to guide, coordinate, and monitor the reconstruction process but implement the activities through existing line agencies by providing additional staff. The executing agency for the quick-disbursing component of the project was the Ministry of Finance (MOF); for the sector components, it was the ERRA. The implementing agencies included reconstruction authorities in KP and AJK, three federal agencies, five provincial agencies in AJK, and three provincial agencies in KP. 31. The ERRA was managed by a council headed by the prime minister, with representation from the affected provinces and federal line ministries. The ERRA Council and Board, the

7

steering committees of AJK and KP, and the district development committees approved strategies, subprojects, plans, and budgets, and provided overall guidance according to their special mandate in emergency reconstruction. It took more than a year to fully establish the ERRA. However, the ERRA—supported by staff provided by multiple donors including ADB12—was still able to facilitate, guide, coordinate, approve, and monitor the reconstruction plans and projects, apart from developing the overall policy and planning framework for the reconstruction and accounting for the reconstruction funds. The implementing agencies were slow in setting up PIUs but once they were established, they were effective in selecting subprojects based on agreed criteria, undertaking social compliance, preparing project documents and designs, undertaking procurements, managing contracts, and reporting on progress and fund utilization. 32. The implementation arrangement involved too many implementing agencies but proved effective because it had local ownership and it enhanced the capacity of existing institutions to handle emergencies. However, the arrangement was not efficient enough, because it took more time than envisaged to establish the special-purpose institutions, acquire additional capacities for line agencies, and develop and train them in applying emergency codes and procedures.

G. Conditions and Covenants

33. Of the 162 covenants in the financing agreement and the four project agreements, 142 were complied with, 10 were not complied with, and 10 were partially complied with. The status of the borrower’s compliance with the covenants appears in Appendix 6. The covenants that were not complied relate to the provision of insurance for facilities, submission of the completion report, and—more important—the lack of provision of staff for the completed health facilities. Covenants that were partially complied with related to gaps in social safeguards, missing auditor opinions on the use of imprest accounts and statement-of-expenditure procedures, and delays in submission of these audit reports. The counterpart funds were delayed in the last 2 years of the project, which eventually delayed the completion of the project. Covenants requiring equal compensation for land for men and women were irrelevant because this right is protected under the law. Covenants related to the participation of women in the construction and maintenance of infrastructure differed from existing practice. The covenants requiring submission of audit reports in 4 months and certified copies of audited accounts from each implementing agency differed from the norms for most ADB projects, which require submission of audit reports in 6–9 months and then only consolidated audit reports. There were contradictions in the covenants related to the audit of the financing agreements, which required the auditor general of Pakistan (AGP) to define the audit requirement, and in those related to the project agreements, which required certified copies of audited accounts from all implementing agencies, irrespective of what the AGP required. H. Related Technical Assistance

34. Capacity-building technical assistance (TA) (footnote 12) attached to the project was designed to enhance development effectiveness through the efficient use of funds from ADB and other development partners by the ERRA for the relief and rehabilitation works. The TA has been completed and was rated as successful. Its expected outcome was to strengthen audit function and improve the ERRA’s financial management, accounting, and auditing functions, and establish a monitoring and evaluation (M&E) system for the ERRA. Major outputs achieved were the design of a financial management information system (FMIS) in the ERRA and all implementing agencies, which is fully operational. The TA consultants also helped set up the

12

ADB. 2005. Capacity Building for the Office of the Auditor General of Pakistan (TA 4730-PAK). Manila.

8

internal and external auditing procedures that are in use. All recent audits of the ERRA were based on the FMIS, and audits are conducted regularly. In addition, an M&E system was designed and implemented for the ERRA, using inputs from other donors and TA consultants. I. Consultant Recruitment and Procurement

35. Expedient procedures permitted under ADB’s Policy (footnote 5) and Guidelines for Procurement were used for procuring services, works, and goods. The procurement of services was partially satisfactory. Services of consultancy firms were hired through eight packages to provide services in education, health, transport, and power sectors. In addition, four individual consultants were hired in the health sector. The reason for procuring from a large number of firms was the diversity of sectors and the multiplicity of implementing agencies. Most of the consultants were hired through direct selection, because of the time constraints. The average time taken for hiring was 4 to 6 months, and most of the firms were mobilized during the first half of 2007. The timelines for hiring were only slightly better than the time norms for hiring through any competitive method of hiring consultants. The hiring time could not be shortened because line agencies had no comparable procedures for direct selection. A lot of time was wasted in either developing such a procedure or using existing ones that had ever been used. 36. The procurement of works was satisfactory. The average time from bid invitation to contract signing was 5 months or less for contracts using international competitive bidding (ICB) and 2 months for contracts awarded using national competitive bidding (NCB) procedures (Appendix 7). Procurement was delayed more because of shortages of materials, erratic markets, and the poor response to widely dispersed large packages. The majority of contracts were advertised more than once. The response improved only slightly after repackaging as procurements continued to be affected by the limited capacity of local contractors, uncertainties in the affected area, and market distortion created by external donors who were awarding contracts much above market rates. Because of the urgent nature of the project, the bidding period for ICB was shortened to 30 days and for NCB to 14 days. Civil works contracts over $5 million were procured through ICB, and those for $5 million or less were procured through NCB procedures. In most cases post-qualification through single-stage, two-envelope procedures was followed. ADB reviewed bidding documents and bid evaluation reports for packages worth more than $1 million and approved the first contracts for all implementing agencies for contracts worth less than $1 million. All these concessions enhanced procurement efficiency. 37. The procurement of goods was satisfactory. There was poor response to ICB packages above $1 million. Contracts were repackaged and procured using international shopping procedures below $1 million. A typical contract took 7 months to procure. The procurement time was extended, because of delays in the construction of facilities to which supplies were to be delivered. J. Performance of Consultants, Contractors, and Suppliers

38. The performance of consultants was mixed. Collectively, it was partially satisfactory. The eight consultancy contracts were distributed among five mainstream consultancy firms in Pakistan. The performance of the consultants on the road sector in KP was satisfactory. The performance of the consultants in the health, power, and roads sectors in AJK and in the education sector in AJK and KP was partially satisfactory. The average time taken by consultants to complete design work was 9 months. The delay in design was to some extent caused by the over-cautious approach by the line agencies and the time taken to approve design standards and plans that resulted in unnecessary revisions. On their part, the

9

consultants overdesigned the health and education components, resulting in increased costs of the contracts and design effort. The supervision was generally satisfactory in terms of quality control in the education, health, and roads sectors except for two roads in AJK, 13 where quality issues surfaced. However, contract management was weak because decisions were delayed and the consultants were unable to provide engineers’ opinions on time. This led to lengthy arbitrations, and 23 schools remained incomplete. The performance was also weak because some firms overcommitted their resources to new contracts, and others14 did not fully transfer the benefits of the negotiated contracts to their staff. In addition, the market became distorted as external donors started hiring in the affected areas at much higher rates. 39. Collectively, the performance of civil works contractors was partially satisfactory. The completion time of contracts ranged from 11 to 36 months. The performance of the roads sector contractors in KP and all power sector contractors was generally satisfactory. In all other sectors, performance was partially satisfactory because of delays, except for the few re-awarded contracts in the health and transport sectors in AJK that were completed on time. There were no major quality issues on works contracts except for the two roads in AJK (footnote 13). The turnkey contracts were delayed mainly by the limited capacity of the contractors, significant variations in labor and material availability, complications in import procedures, and the performance of the consultants and employers. Many contractors also overcommitted themselves later, when the government and other donors started new procurement in the area. Some contractors suffered financially, as payments were delayed on government-financed contracts, which affected their performance on the project. The performance of contractors was better in KP because of its well-developed contracting industry, whereas most contractors in AJK came from other parts of the country and were unfamiliar with local conditions. 40. The performance of the suppliers was generally satisfactory. Supply contracts were awarded mainly in the power, health, and education sectors. The deliveries were generally on time; minor delays were due to delays in completion of the facilities where supplies were to be delivered. The main reason for the satisfactory performance was that suppliers were not affected by local market conditions, because they were from other parts of the country. K. Performance of the Borrower and the Executing Agency

41. The performance of the borrower and the executing agencies was satisfactory. The MOF delivered the quick-disbursing component efficiently. It took some time to fully establish the ERRA and its business processes, and to acquire the required capacities. Initial delays occurred in establishing working relationships with line agencies; however, once the roles and responsibilities of the ERRA, provincial disaster management authorities, and line agencies were clarified, the ERRA facilitated, planned, and coordinated sector implementation effectively. The decision making at the ERRA was efficient. The ERRA’s Board met regularly to approve policies, strategies, plans, and projects. The borrower regularly reviewed ERRA performance and engaged with donors on policy issues through a well-established donor coordination group. 42. The major reason for the ERRA’s good performance was its leadership, its efficient decision making, and well-coordinated support from donors collectively, including ADB.15 This enabled the establishment of systems for approval, reporting, and oversight that were collectively developed and owned. It took more time than expected to establish an M&E and the 13

Rectification work has been undertaken. The contracts that remained incomplete are on Rawalakot-Gui Nulla Road and will be financed by the government. The client has demanded that the consultant indemnify losses.

14 This statement is based on some informal interviews by the mission with consultant staff, not on any formal study.

15 This support included individual consultants hired under TA 4943 and TA 4730.

10

FMIS system due to delay in mobilizing international firms, which had limited interest in working in the current security environment in Pakistan; however, once they were established, accounting and performance reporting improved significantly. 43. The performance of the implementing agencies changed over time. The agencies in AJK were slow in taking up their role because of high human and physical loss (half of AJK was affected) and limited historic capacity. However, their performance improved exponentially as they learned on the job. The performance of agencies in KP was good at the start, and PIUs were established without delay because of the available human resources (one-seventh of KP was affected) and capacity to deal with large projects. However, their performance deteriorated as support for affected areas was overshadowed by the development agenda of the province. L. Performance of the Asian Development Bank

44. ADB’s performance was satisfactory. ADB allocated dedicated staff resources to manage the project and retained these resources throughout implementation. An extended mission office was opened in the affected area that was staffed with consultants hired under the administrative and TA budget (footnote 15). This allowed close coordination and outreach, mainly to monitor and then facilitate procurements and disbursements, and to safeguard compliance efforts being undertaken by the implementing agencies. ADB managed to mobilize additional grant resources from Australia, Belgium, Finland, and Norway through the PEF, as well as from the European Union, through direct cofinancing during project implementation. The contributions from Belgium and Norway were made available through innovative debt-for-development swap arrangements. Thus, supplementary grant resources amounting to $95 million were added to the project from these funds to replace already-stretched government counterpart funds and expand the scope of the social sector portfolio being delivered under the project. This increased the time spent on processing and reporting. ADB also allowed a timely increase in the project scope, need-based use of TA resources, a timely extension in the loan and grant closing dates, and use of emergency procedures to deliver the project. 45. One of the major reasons for ADB’s satisfactory performance was the flexible availability of TA resources. It was not possible for ADB or the borrower to determine the resource gaps at the design stage because the project was approved within 2 months of the disaster. The TA enabled ADB to respond to these needs as they arose, especially the ones related to safeguards and fiduciary risk in the implementing agencies.

III. EVALUATION OF PERFORMANCE

A. Relevance

46. The project design was relevant and in line with ADB’s Policy and the PDNA. With its focus on reconstructing priority infrastructure such as education and health facilities, power supplies, and access roads, the project addressed basic social needs essential for the restoration of normal life and economic activity in the affected areas. The project’s incremental support component was designed to strengthen the capacities of the borrower to respond to the disaster and to provide outreach to assist the most vulnerable in accessing services and entitlements. The major changes in the project improved its relevance by expanding the scope of activities in the social sectors and providing additional support for capacity building.

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B. Effectiveness in Achieving Outcome

47. The project was highly effective in achieving its outcomes. All education, power, health, and transport infrastructure built under the project was built according to the new building codes approved for the affected area and was earthquake resistant. Where possible, multi-hazard-resistant standards were introduced to handle floods, wind, and landslides. The level of resilience against floods in roads was designed for a 1-in-100-year return period for bridges and a 1-in-50-year return period for other structures. This is in line with the country’s approved standards. The damage to a few roads during the 2010 floods occurred because the flood levels were above the 1-in-100-year return period used in the design of these facilities. 48. No secondary economic data are available for the affected districts of AJK and KP. However, project-specific data collected at completion show that people are better off than before the earthquake. Enrollment in the schools16 reconstructed under the project increased from the pre-earthquake level of 39,924 to 43,827 students in AJK and from 6,083 to 8,386 students in KP. About 1,100 additional classrooms and 1,000 rooms for administration were added to existing schools. In total, 45% of the infrastructure was built for girls and 41% of the enrolled students were girls. For parents, children’s safety in schools is no longer a concern. The reconstructed schools have sanitation facilities for boys, girls, and teachers. Their design includes rails and ramps for disabled children. Lightning arresters, boundary walls, heat and sound insulation, water, electricity, sanitary disposal, and child-friendly spaces were provided in almost all schools to enhance children’s security, safety, and quality of life. 49. There was an increase in the average annual consultation rates in the 26 BHUs constructed under the project, from 25,000 before the earthquake to 123,00017 after it. There was a 41% increase in outpatients and referrals in the reconstructed hospitals. 50. Travel time on roads constructed under the project was reduced by more than 50% on average. About 30% more people now have domestic and commercial electricity connections in the affected areas of AJK than before the earthquake. By reducing travel cost and improving the provision of education, health services, and electricity, the project has contributed significantly toward improving quality of life and regenerating economic activities in the affected area. C. Efficiency in Achieving Outcome and Outputs

51. The project was efficient in achieving its outcomes and outputs. No economic analysis was carried out for the project at the design stage because it was intended only to restore or reconstruct destroyed assets to post-earthquake standards. An economic evaluation of sample of some roads constructed under the transport component was carried out at project completion and compared with an economic analysis of the same roads undertaken at the identification and selection stage. The sample included six major roads in AJK and KP, representing about 50% of the cost of the transport component at completion. 52. The economic internal rate of return (EIRR) of the sample roads subprojects was recalculated at 14.7% (Appendix 8), which is 5% lower than what was estimated at the design stage. The reduction was mainly caused by higher construction costs and delays in the delivery of benefits. However, the EIRR is higher than a discounted rate of 12%. Sensitivity analysis

16

The schools include 410 schools that were completed and 23 schools that were partly completed under the project. 17

This figure is based on 5 months of data provided for BHUs completed under the project.

12

shows that the road subprojects are viable, even with a 10% increase in maintenance costs and a 10% reduction in projected benefits. 53. About 8 megawatts of generation capacity was restored within the first year after the earthquake. Power sector distribution networks were temporarily restored within the first month and fully restored within the first 2 years. The substations started operating within weeks under temporary shelters. Thus, there was no revenue or economic loss because of a net shortfall in electricity production across the country during this timeframe. 54. Delays occurred in completing health and education facilities because some technology options (for example, pre-engineered cold rolled steel) were being used for the first time and because the contract management capacity of the consultants was weak. As a result, there were time overruns and some facilities (23 schools) were not complete at closure. These delays slightly reduced benefits but did not affect the provision of services because all contracts included costs for running schools in temporary shelters. There were no cost overruns because the contracts had fixed prices. However, escalation charges had to be paid where delays were caused by external circumstances or the employer. D. Preliminary Assessment of Sustainability

55. The sustainability of the project investment is likely. All key line departments in AJK and KP dealing with power, education, health, and transport are now fully empowered and have the knowhow to build and maintain multi-hazard-resistant infrastructure, and procure and manage international contracts for this purpose. In term of the operational sustainability of the investments, the quality of subproject identification and the standards adopted for the power, education, and transport sector were better aligned with the historic operational capacities of the line agencies, and investments are likely to be operated sustainably. The standards followed for the health sector in AJK were higher than the existing operational capacity of the line department and less likely to be sustainable in the short term, at least until the department acquires additional capacities and resources. 56. The AJK government increased the number of teachers from 1,690 before the earthquake to 1,928 after reconstruction. Most schools are now fully staffed. In KP, there was no increase in the number of teachers in response to the 25% increase in enrollment, although all schools have some staff to keep them operational. In addition, some abuse of facilities in KP by local communities was noted and needs to be monitored by the provincial government. 57. In the health sector in AJK, operational plans for health facilities reconstructed under the project were developed but not implemented. These plans would require 700 additional health staff; 427 new positions were approved, but only 334 are in place. Most of the vacant positions are for specialists. The facilities remain underutilized as budget for these facilities was increased but only to about 40% of what the operational plans required. 58. Most of the project roads are critical interdistrict links and lifelines for the affected areas. Because of their importance it is expected that the districts will give them priority for periodic maintenance from district operation and maintenance budgets. However, link roads may receive little or no funds, which may reduce their service level earlier than anticipated. The power infrastructure is maintained by autonomous power sector agencies that get their revenues from selling electricity and are regulated by an independent regulator. The sustainability of the project investment in the power sector is not an issue, although these agencies face a serious circular debt issue that is beyond the scope of this assessment.

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E. Impact

59. The overall impact of the project was positive. The economy has recovered, and there is increased economic activity in affected areas. The quality of life is better than it was before the earthquake. Secondary data (Appendix 9), available only for AJK, were used for this assessment. However, even these data may not fully capture impacts, as most subprojects started operations one year ago and many health facilities are still not fully staffed. 60. Between 2005 and 2011, unemployment in the affected area decreased from 35% to 13%, and per capita income increased from PRs500 to PRs1,254. The infant mortality rate remained unchanged. The installed grid capacity doubled and per capita electricity delivery increased by 12 kilowatt-hours. The literacy rate increased by 4%; the number of people per doctor decreased by 10%; and access to health services increased by 2.5%. 61. Very few subprojects involved land acquisition. In some cases, land was owned by the government or provided voluntarily by communities. Minor gaps were noted in a few cases of delayed compensation related to internal disputes among affected people. These cases were fully compensated before closure or were still pending legal settlement, with funds deposited with the revenue departments, awaiting resolution. Project had an environmentally positive impact, as schools, hospitals, and power sector civil structures that were reconstructed by the project now have sanitary disposal of waste. Similarly, the improvement in road quality has reduced travel cost, fuel use, and pollution caused by traffic congestion. 62. The vulnerable group and gender action plans were implemented, and their status is provided in Appendix 10. Work contracts were modified to allow equal opportunities and wages for both genders and all vulnerable groups. Special outreach programs, including a vulnerability survey and free legal assistance, were developed for vulnerable groups. Women registered 9,468 cases (96% of which were resolved). A livelihood support component of the ERRA provided a 6-month grant to 282,000 ―most vulnerable‖ families headed by women. Free land was provided to 1,316 women with land titles. The health and education facilities had dedicated areas for women, children, and the disabled. The health facilities reconstructed by the project treated 232,000 patients annually, of which 44% were women. About 18,000 women from 5,666 village reconstruction committees were trained in construction techniques. The participation of local communities in the reconstruction activities was 54% in AJK and 90% in KP, with less than 1% by women because of the lack of cultural acceptability of their participation.

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS

A. Overall Assessment

63. The project was successful. Its interventions and design were relevant. The project was highly effective in achieving its intended outcomes. Although the outputs and outcomes were achieved with delays and slightly reduced benefits, economically it was still efficient. Most sector investments are likely to be sustainable except in the health sector, where institutional reforms were introduced but not fully implemented, making the provision of quality health services less likely to be sustainable in the short term. Most of the targets in the design and monitoring framework were met. At different stages, changes were made in the scope and implementation arrangement of the project to accommodate the additional contributions to the PEF that increased the project’s relevance and outputs without changing its outcome. However, these changes also contributed to time extensions in implementation and a slight reduction in benefits.

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B. Lessons

64. Have a dedicated lead institution. The dedicated federal (ERRA) and provincial reconstruction authorities led the overall coordination and monitoring, and facilitated procedures, policies, and strategies for reconstruction. This arrangement allowed efficient and transparent reconstruction, and established the government’s commitment to and credibility in mobilizing resources. This experience demonstrated that disaster response and recovery can be improved by having dedicated lead institutions with the required additional capacities. 65. Clarify roles and respect existing mandates. Initial delays in implementation of the project were caused by confusion about the roles of new and existing institutions. Any large-scale reconstruction operation requires clear delineation of the mandates of levels of government, to provide the structure and clarity required for all stakeholders to work with maximum efficiency. To the extent possible, the provincial and regional governments and federal agencies should be provided with capacity to perform their mandated roles. This approach may cause initial delays in response to major disasters but builds ownership and sustained capacity to manage completed infrastructure and responses to future disasters. 66. Articulate policies, strategy, and standards early. The local populations and NGOs started reconstruction work well before provincial and federal governments started articulating their responses. Expectations rose, and some facilities, especially in health, were built by bilateral donors to standards that were much higher than the capacity of the line agencies to maintain them. This resulted in inconsistencies, violations of policies and standards developed for reconstruction work, and unsustainable operation of completed facilities. The government should ensure that the reconstruction policies and standards are within the capacity of the sector institutions to sustain and are delivered as soon as possible to avoid inconsistencies. 67. Enhance transparency for effective oversight. The government-established ERRA Council, headed by the prime minister, consists of independent and reputable individuals from civil society in the affected regions. The council followed the reconstruction process and reviewed and reported regularly to the general public on its progress and outcomes, developing a sense of ownership. Independent oversight, involving representatives of civil society disseminating information to key constituents, promoted transparency and enhanced the credibility of the host government. 68. Institutionalize “fast-tracking” and flexibility. The TA attached to the project allowed flexible responses to diverse capacity gaps, and fast-tracked procurement and disbursement, and the implementation of the safeguards policy. The flexibilities allowed under the emergency policy reduced procurement time and enabled efficient mobilization of resources. However, no comparable emergency procedures existed at line agencies, and reconciliation of accounts delayed the closure of the loan account because no additional capacity was provided to ADB to handle the additional disbursement load. A reconstruction program can be fast-tracked if procedures are put in place at the line agencies to reduce timelines for approvals, disbursements, and procurements for the specified duration of the program, and if capacity is developed in the line agencies and ADB to implement those procedures. Similarly, for ADB, flexible TA and procurement procedures have proven to be excellent tools for timely delivery of emergency projects. 69. Incentivize key staff and the private sector. The project suffered delays and cost escalations caused by high staff turnover, weak response to procurement needs, red tape and weak contract management. There were no special incentives for staff, firms, or contracts to

15

engage in the difficult working environment and no outreach mechanism to facilitate private sector engagement. Experience shows that breaking the ―business as usual‖ culture during emergencies requires strong outreach and communication, and special incentives for staff and private sector to ensure good response, and to engage stakeholders in implementation. 70. Be socially responsive in implementation. The project suffered hardly any delay from safeguard and social issues. The governance component of the project provided additional staff and built the capacity of the legal system to cope with the additional burden posed by the earthquake-affected population and reconstruction activities. Timely responses to issues facing the affected population—including entitlements, registration, grievances, and complaints—avoided delays in reconstruction implementation and protected individual rights. 71. Strongly embed reconstruction in the development agenda. The health, education, and transport facilities were built to higher standards than those in place before the earthquake. However, their sustainable operations were affected by endemic issues—cost recovery, quality, and sustainability of operation—that existed in these sectors before the earthquake. Because of the short timeframes, the reconstruction programs tended to avoid addressing endemic development issues in their scope, but the impacts of program outputs were curtailed by these issues. To enhance impacts, reconstruction programs should be aligned with regular sector development programs to maintain the focus on reforms needed for sustainable operations during and after project closure. C. Recommendations

72. Future monitoring. During the regular country portfolio review meeting (CPRM), the operational department needs to follow and report in its minutes on two efforts: (i) the hiring of staff and approval of the operational budget of the completed health facilities in AJK, and (ii) the completion of 19 unfinished schools in KP. This will confirm that all incomplete subprojects are completed and project investments are fully utilized. 73. Covenants. The covenants related to audits of the project accounts of the implementing agencies and separate opinions on the use of ADB funds, the imprest account, and statement-of-expenditure procedures need to be followed up by the operational department with the auditor general office, so that these issues are addressed in the final audit report of the project. 74. To ensure full compliance with ADB policies, a third-party review should be undertaken of the resettlement cases that are pending legal settlement in a court of law. The outcome should be posted on the ADB website and monitored during the CPRM if required. 75. Improve emergency project designs. The project had 13 implementation agencies and 7 subagencies. This complicated project implementation increased compliance requirements (162 covenants) and overstretched ADB’s capacity to manage the project. Similarly, procurement plans and packages had to adapt to the local capacities, working conditions, and material constraints in the affected area. Although there was enough flexibility in project design to make adjustments in procurements and to acquire additional capacities through the TA to reduce ADB management overload, these adjustments delayed implementation. For efficient implementation of emergency projects, the arrangement should be simple, with fewer sectors, implementing agencies, and compliance requirements. Although local procurement conditions can change during implementation, prior assessment of material availability, the local contracting industry, and procurement capacity can improve initial procurement plans and the design of capacity-building components.

Appendix 1

16

PROJECT OUTPUTS Table A1.1: Roads Rehabilitated or Reconstructed

Name of Road

Length Dates

(km) Award Completion

Khyber Pakhtunkhwa

1. Maira Rehmat Khan Boi – Phase I 20.0 9 Sep 2008 30 Jun 2011

2. Maira Rehmat Khan Boi – Phase II 15.7 9 Sep 2008 30 Jun 2011

3. Takia Sheikhan Cher 11.0 13 Jan 2007 31 May 2008

4. Kohala Moolia Nammal 21.0 14 Mar 2007 30 Jun 2008

5. Nathia Gali Bako 15.0 14Mar 2007 30Jun 2008

6. Bagnotar Namli Maira Nathiagali 15.5 14 Mar 2007 30 Jun 2009

7. Lamba Maira Jhangi and Mirpur Maira 3.5 15Jan 2007 14 May 2008

8. Dalola Hadora Bandi, Link Sanja Road 11.5 8 Apr 2007 30 Jun 2008

9. Thandiani Patan Khurd 45.0 21 Aug 2009 20 Sep 2009

10. Shinkiari Nawazabad 26.0 31 May 2008 30 Jun 2011

11. Mansehra Oghi Battagram – Phase I 20.0 1Jul 2008 30 Dec 2010

12. Mansehra Oghi Battagram – Phase II 21.0 23 Jun 2008 30 Dec 2010

13. Khaki Bridge at Siran River 0.0 27 May 2008 30 Apr 2010

14. Ichar River Bridge 0.0 27 May 2008 30 May 2010

15. Attar Shisha Garhi Habibullah 14.0 18 Sep 2008 30 Apr 2011

16. Chinar Road 1.5 8 Feb 2007 7 Sep 2008

17. Shahalia Mangloor 11.0 8 Apr 2008 8 Mar 2008

18. Banja Ichrian 5.7 1 Aug 2008 30 Jun 2009

19. Shaukatabad Tatar 5.0 1 Jun 2007 14 May 2008

20. Khaki Parhina Lassan Nawab 7.5 5 Apr 2008 5 Aug 2008

21. Talhata Sarwai 2.0 10 Jan 2008 9 Jan 2009

22. Dheri Narah Batsangra 11.0 21 Jun 2008 30 Sep 2009

23. Kashtra Soghdar 5.0 6 Jun 2008 8 Jun 2009

24. Sangar Gohar Bank 7.0 30 Jun 2008 12 Mar 2009

25. Ganool Paprang 4.0 30 Oct 2008 2 Dec 2010

26. Gulderi Bissian – Phase I 5.5 26 Mar 2007 13 May 2008

27. Mohandri Manoor 7.0 2 Jul 2007 30 Jun 2009

28. Kawai Shunga 5.0 15 Oct 2007 30 Jun 2010

29. Balakot Hungrai 18.0 2 Aug 2008 2 Dec 2010

30. Paras Baila Kund 13.0 31 May 2008 30 Jun 2011

31. Gulderi Bissian – Phase II 1.3 31 Jan 2009 30 Jun 2011

32. Kuzabanda Chatterplain, Package 5A 11.0 2 Jun 2008 31 Dec 2010

33. Kuzabanda Chatterplain, Package 5B 12.0 2 Jun 2008 31 Dec 2010

34. Oghi Kuzabanda Batagram – Phase I 7.0 29 Mar 2007 31 Aug 2008

35. Oghi Kuzabanda Batagram – Phase II 8.0 29 Mar 2007 30 Nov 2007

36. Battagram Shimlai 7.0 29 Mar 2007 30 Apr 2008

37. Karg Jabbar 12.0 30 Mar 2007 30 Apr 2008

38. Landikass Perhari 6.0 9 Jan 2008 31 Aug 2008

39. Battagram Paimal Rangeenabad Surgai 11.0 9 Jan 2008 7 Jan 2009

Appendix 1

17

Name of Road

Length Dates

(km) Award Completion

40. Lachmera 4.0 9 Jan 2008 7 Oct 2009

41. Behari Gidri 7.0 20 Apr 2008 18 Oct 2009

42. Karora Chakesar – Phase I 7.0 7 Apr 2007 30 Jun 2009

43. Alpuri Lari 5.0 23 Apr 2007 30 Jun 2009

44. Alpuri Lilowani 5.0 7 Apr 2007 30 Jun 2009

45. Kormang 10.0 29 Dec 2007 31 Dec 2009

46. Shangla Top Maruf Khail 8.0 3/ Jan 2008 30 Jun 2009

47. Karora Chakesar, Lot I 10.0 7 Apr 2007 30 Jun 2009

48. Karora Chakesar, Lot II 15.0 7 Apr 2007 30 Jun 2009

49. Karora Ajmir 8.0 5 Mar 2008 30 Jun 2009

50. Ranyal Opal 7.0 14 Feb 2008 30 Jun 2009

51. Besham Lahoor 4.0 14 Feb 2008 30 Jun 2009

52. Kuzbat Kot 7.0 14 Feb 2008 30 Jun 2009

53. Kandia Kalam 33.0 22 Dec 2008 30 Jun 2009

54. Jalkot Valley – Phase I 7.0 22 Dec 2008 30 Jun 2009

55. Ghaziabad Kolai 8.0 9 Feb 2007 30 Jun 2009

56. Kayal Valley – Phase I 6.0 15 Nov 2007 30 Jun 2009

57. Kayal Valley – Phase II 4.0 6 Mar 2008 30 Jun 2009

58. Ghaziabad Kolai – Phase I 8.0 9 Feb 2007 30 Jun 2009

59. Ghaziabad Kolai – Phase II 6.0 29 Nov 2007 10/10/2008

60. Jalkot Valley, Phase II 7.0 6 Mar 2008 30 Jun 2009

61. Blacktopping of Jalkot Valley Phase I 7.0 8 May 2009 30 Jun 2009

AJK

62. Muzaffarabad Athmuqam 76.0 27 Nov 2008 30 Jun 2011

63. Dheerkot Rawlakot 43.0 22 Oct 2008 31 Dec 2010

64. Arja Bagh 17.0 6 Aug 2008 30 Jun 2011

65. Azadpatan Rawlakot 35.0 7 Aug 2008 30 Jun 2011

66. Kohala Dhana Rajpothi 3.0 27 Jan 2007 31 Dec 2008

67. Noseri Panjkot 8.0 27 Jan 2007 31 Dec 2008

69. Kohala Kalhyari 3.0 27 Jan 2007 31 Dec 2008

70. Ghazi abad Minhasa 3.0 27 Jan 2007 31 Dec 2008

71. Neelum Valley Link 3.0 17 Feb 2007 31 Dec 2008

72. Moji Road 15.0 17 Feb 2007 31 Dec 2008

73. Garhi Dopatta 10.0 16 Feb 2007 31 Dec 2008

74. Neeli-Lamnian, Neli-Nogran, Lamnia Macknat 12.0 16 Feb 2007 31 Dec 2008

Appendix 1

18

Table A1.2: Schools Rehabilitated and Reconstructed

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

1 GGPS Korwal 2 2 2 3 0 1 No Yes Yes 35 63 2 2

2 GPS Mashkani 2 3 2 4 0 1 No Yes Yes 47 46 2 2

3 GPS Kander Chappergram 2 2 2 3 0 1 Yes Yes Yes 77 71 2 2

4 GMS Kaktai 3 3 2 4 1 4 Yes Yes Yes 27 40 6 6

5 GGPS Asharbagh 2 2 0 3 0 1 No Yes Yes 36 65 2 2

6 GGPS Garhi Muzaffar Khan 2 2 2 3 0 1 Yes Yes Yes 28 39 2 2

7 GGPS Kaktai 2 2 2 3 0 1 Yes Yes Yes 43 63 2 2

8 GPS Bajmera 2 2 2 3 0 1 Yes Yes Yes 43 73 2 2

9 GPS Takya 2 2 2 3 0 1 Yes Yes Yes 49 29 2 2

10 GMS Rajmera 3 3 3 4 1 4 Yes Yes Yes 23 53 6 6

11 GPS Biland Patay 2 2 2 3 0 1 No Yes Yes 40 40 2 2

12 GPS Gat Haroon 2 2 2 3 0 1 No Yes Yes 30 44 2 2

13 GPS Jamroz Gada 2 2 2 3 0 1 Yes Yes Yes 30 45 2 2

14 GPS Wallar Gat 2 2 2 3 0 1 Yes Yes Yes 36 47 2 2

15 GPS Cham Mirani 2 2 2 3 0 1 No Yes Yes 53 61 2 2

16 GPS Banda Balla 2 2 2 3 0 1 Yes Yes Yes 38 72 2 2

17 GPS Kamala 2 2 2 3 0 1 No Yes Yes 29 41 2 2

18 GPS Chatoo 2 2 2 3 0 1 Yes Yes Yes 54 61 2 2

19 GPS Kucka Ranginabad 2 2 2 3 0 1 No Yes Yes 19 64 2 2

20 GPS Qadeera 2 2 2 3 0 1 Yes Yes Yes 23 98 2 2

21 GHS Neleshang 6 5 3 7 3 7 Yes Yes Yes 108 79 9 9

22 GPS Koykandi Rajdahri 2 2 2 3 0 1 Yes Yes Yes 25 49 2 2

23 GPS Lami Rajdahri 2 2 2 3 0 1 No Yes Yes 35 83 2 2

24 GPS Khait Sultan 2 2 2 3 0 1 Yes Yes Yes 29 25 2 2

25 GHS Hill 6 5 3 7 3 7 Yes Yes Yes 25 54 8 7

26 GMS Mirza Banda 3 3 3 4 1 4 No Yes Yes 34 33 5 5

27 GPS Bala Terla 2 2 2 3 0 1 No Yes Yes 22 45 2 2

Electricity

Provided

Water Supply

Provided

Rooms built Student

Enrolment

Khyber Pakhtunkhwa

Classrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

19

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

28 GPS Murad Banda 2 2 2 3 0 1 Yes Yes Yes 39 36 2 2

29 GPS Rashidabad 2 2 2 3 0 1 No Yes Yes 26 53 2 2

30 GHS Pirhari 6 5 3 7 3 7 Yes Yes Yes 67 58 8 9

31 GGPS Pirhari 2 2 2 3 0 1 Yes Yes Yes 44 65 2 2

32GPS Daboona Garhi Nawab

Said2 2 2 3 0 1 Yes Yes Yes 32 45 2 2

33 GPS Jagdesh 2 2 2 3 0 1 Yes Yes Yes 22 51 2 2

34 GPS Malkot 2 2 2 3 0 1 Yes Yes Yes 47 67 2 2

35 GPS Shamrad 2 2 2 3 0 1 Yes Yes Yes 73 35 2 2

36 GPS Kass 2 2 2 3 0 1 Yes Yes Yes 43 46 2 2

37 GHS Shingli Payeen 6 5 3 7 3 7 Yes Yes Yes 229 112 10 10

38 GGPS NilliShang 2 3 2 4 0 1 Yes Yes Yes 146 253 4 4

39 GGPS Dabapar 2 3 2 4 0 1 Yes Yes Yes 115 125 3 4

40 GHS Shamlai 6 5 3 7 3 7 Yes Yes Yes 134 125 10 10

41 GPS Shair 2 3 2 4 0 1 No Yes Yes 76 68 2 2

42 GPS Tali Mohd Khan 2 2 2 3 0 1 Yes Yes Yes 68 119 2 2

43 GPS Kot Pirhari 2 2 2 3 0 1 Yes Yes Yes 90 125 2 2

44 GGPS Akibore 2 2 2 3 0 1 Yes Yes Yes 75 55 2 2

45 GGPS Chamkat Sultan 2 2 2 3 0 1 No Yes Yes 35 38 2 2

46 GPS Tikri Maira 2 3 2 3 0 1 Yes Yes Yes 49 72 2 2

47 GPS Khaith 2 2 2 3 0 1 No Yes Yes 15 34 2 2

48 GPS Okay Pirhari 2 2 2 3 0 1 Yes Yes Yes 32 76 2 2

49 GPS Petaw Kimray 2 2 2 3 0 1 Yes Yes Yes 31 50 2 2

50 GHS Joze 6 5 3 7 3 7 Yes Yes Yes 63 56 10 10

51 GHS Biland Kot 7 5 3 7 3 7 Yes Yes Yes 114 184 13 13

52 GGPS Amar Shah Abad 2 4 2 5 0 1 No Yes Yes 45 64 2 2

53 GGMS Pora 3 3 2 4 1 4 No Yes Yes 22 17 4 5

54 GMS Meeran 3 3 3 4 1 4 No Yes Yes 33 44 6 6

55GGPS Banda Amanullah

Khan2 2 2 3 0 1 Yes Yes Yes 50 47 2 2

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

20

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

56 GPS Chapri Hakim Khan 2 2 2 3 0 1 Yes Yes Yes 37 34 2 2

57 GGPS Mano Maira 2 3 2 4 0 1 Yes Yes Yes 73 136 2 2

58 GGPS Gidri Essa Khan 2 2 2 3 0 1 Yes Yes Yes 111 164 3 4

59 GPS Naraza 2 2 2 3 0 1 Yes Yes Yes 33 53 2 2

60 GPS Pora 2 2 2 3 0 1 Yes Yes Yes 54 55 2 2

61 GMS Asharban 2 3 2 4 0 4 Yes Yes Yes 57 78 6 6

62 GPS Dehri Mandoo 2 2 2 3 0 1 Yes Yes Yes 27 40 2 2

63 GGPS Doondara 2 2 2 3 0 1 No Yes Yes 42 74 2 2

64 GPS Boray Muhammad Jan 2 2 2 3 0 1 No Yes Yes 35 50 2 2

65 GPS Kuz Neher Payeen 2 3 2 4 0 1 No Yes Yes 45 120 2 2

66 GPS Kuz Neher Qasim 2 2 2 3 0 1 No Yes Yes 46 39 2 2

67 GGPS Danda Batlay 2 2 2 3 0 1 Yes Yes Yes 28 83 2 2

68 GPS Kukilar 2 2 2 3 0 1 Yes Yes Yes 46 57 2 2

69 GGPS Drab Kala 2 2 2 3 0 1 Yes Yes Yes 60 141 2 2

70 GGPS Kiarmot Batkol 2 2 2 3 0 1 Yes Yes Yes 62 97 2 2

71 GPS Sardalya 2 2 2 3 0 1 Yes Yes Yes 73 38 2 2

72 GGPS Barra Pashto 2 4 2 5 0 1 No Yes Yes 59 65 2 2

73 GPS Rabat 2 3 2 4 0 1 Yes Yes Yes 140 137 4 4

74 GPS Khait Wali Shah 2 2 2 3 0 1 No Yes Yes 68 45 2 2

75 GPS Paka Pashto 2 2 2 3 0 1 No Yes Yes 60 74 2 2

76 GPS Nehar Bala 2 2 2 3 0 1 No Yes Yes `103 131 2 3

77 GPS Pethow Chiran 2 2 2 3 0 1 Yes Yes Yes 30 32 2 2

78 GPS Saproona 2 2 2 3 0 1 Yes Yes Yes 31 43 2 2

79 GPS Pashakal Nehar 2 2 2 3 0 1 No Yes Yes 52 41 2 2

80 GPS Kakshar 2 2 2 3 0 1 Yes Yes Yes 60 45 2 2

81 GPS Parra 2 2 2 3 0 1 No Yes Yes 48 61 2 2

82 GPS Batlay 2 2 2 3 0 1 Yes Yes Yes 103 80 2 3

83 GPS Tarnow Madian 2 2 2 3 0 1 Yes Yes Yes 43 45 2 2

84 GHS Ganter 6 5 3 7 3 7 No Yes Yes 42 131 8 8

85 GPS Alami Kandaw 2 3 2 4 0 1 No Yes Yes 42 50 2 2

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

21

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

86 GPS Colony Thakot 2 3 2 4 0 1 Yes Yes Yes 57 99 2 2

87 GGPS Zarinabad 2 2 2 3 0 1 No Yes Yes 32 110 2 2

88 GPS Nakhtar bala 2 2 2 3 0 1 Yes Yes Yes 42 104 2 2

89 GPS Sapaidar 2 2 2 3 0 1 Yes Yes Yes 45 70 2 2

90 GPS Gul Shoot 2 2 2 3 0 1 Yes Yes Yes 21 30 2 2

91 GMS Bracher 3 3 3 4 1 4 No Yes Yes 12 15 6 6

92 GMS Jangri Pashto 3 3 3 4 1 4 No Yes Yes 10 39 6 5

93 GGPS Nall Pashto 2 2 2 3 0 4 No Yes Yes 42 103 1 2

94 GPS Toba Pashto 2 2 2 3 0 1 No Yes Yes 31 51 2 2

95 GMS Gangwal 3 3 3 4 1 4 No Yes Yes 27 33 5 5

96 GMS Nehar 3 4 3 5 1 4 No Yes Yes 16 27 4 4

97 GPS Jan Bag 2 2 2 3 0 1 No Yes Yes 14 55 1 2

98 GPS Neher Kandaw 2 2 2 3 0 1 No Yes Yes 32 65 2 2

99 GGPS Palang 2 3 2 4 0 1 No Yes Yes 53 57 2 2

100 GMS Tandol 3 3 3 4 1 4 No Yes Yes 21 15 5 5

101 GPS Kassai Tandool 2 2 2 3 0 1 No Yes Yes 70 34 2 2

102 GPS Pajool 2 2 2 3 0 1 No Yes Yes 81 81 2 2

103 GMS Jambera 3 3 2 4 1 4 Yes Yes Yes 27 29 7 7

104 GPS Mala Bateela 2 2 2 3 0 1 No Yes Yes 36 32 1 2

105 GPS Jambera 2 2 2 3 0 1 Yes Yes Yes 61 98 3 3

106 GPS Seri Jambera 2 3 2 4 0 1 Yes Yes Yes 39 90 2 2

107 GPS Beran Ganter 2 2 2 3 0 1 No Yes Yes 58 25 2 2

108 GGPS Gunangar 2 2 1 3 0 1 Yes Yes Yes 15 41 2 2

109 GPS Ali Jan Kaparai 2 2 0 3 0 1 Yes Yes Yes 79 54 2 2

110 GPS Sarkool 2 2 0 3 0 1 Yes Yes Yes 47 190 2 2

111 GPS Dawoot 3 4 1 5 0 1 Yes Yes Yes 51 65 2 2

112 GPS Shaga Banda 2 6 0 7 0 2 Yes Yes Yes 12 80 2 2

113 GGPS Kot Maira 2 2 1 3 0 1 Yes Yes Yes 30 51 2 2

114 GPS Dherai Maira 2 2 1 3 0 1 Yes Yes Yes 93 123 2 2

115 GGPS Maira 2 2 1 3 0 1 Yes Yes Yes 37 57 2 2

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

22

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

116 GGPS Toka Maira 4 4 1 5 0 1 Yes Yes Yes 42 95 2 2

117 GGMS Bala Manai 4 3 2 4 2 4 Yes Yes Yes 13 26 7 7

118 GPS Ser Dandai 2 2 1 3 0 1 Yes Yes Yes 102 114 2 2

119 GGPS Gharang 2 3 0 4 0 1 Yes Yes Yes 46 58 2 2

120 GPS Bilmaz 2 2 1 3 0 1 Yes Yes Yes 45 83 2 2

121 GPS Laro Dandai 2 3 1 4 0 1 Yes Yes Yes 32 63 2 2

122 GPS Chir Dandai 2 2 0 3 0 1 No Yes Yes 77 64 2 2

123GPS Bahramand Mahala

Lahore2 2 1 3 0 1 Yes Yes Yes 55 91 2 2

124 GGPS Chagum Dandai 2 2 0 3 0 1 Yes Yes Yes 20 27 2 2

AJK

1 GBMS Chattian 3 7 1 6 0 3 Yes Yes Yes 127 139 6 6

2 GBMS Dullai 3 7 1 6 0 3 Yes Yes Yes 55 92 5 6

3 GGMS Ambore 4 6 2 5 0 3 Yes Yes Yes 151 164 5 5

4 GGMS Dhani Baqalan 3 6 1 5 0 3 Yes Yes Yes 56 63 5 6

5 GBMS Danna Mughlan 3 8 1 7 0 3 Yes Yes Yes 249 265 6 7

6 GBMS Danna 4 8 1 7 0 3 Yes Yes Yes 166 381 5 6

7 GBMS Kappa Butt 3 6 0 5 0 3 Yes Yes Yes 95 125 6 7

8 GGMS Hattian Bala 5 7 2 6 0 3 Yes Yes Yes 221 235 6 7

9 GGMS Tandali 4 6 1 5 0 3 Yes Yes Yes 44 67 5 6

10 GBMS Bani Hafiz 3 6 1 5 0 3 Yes Yes Yes 103 117 5 6

11 GBMS Mahotar 3 6 1 5 0 3 Yes Yes Yes 92 156 6 6

12 GBMS Mukniat 3 6 1 5 0 3 Yes Yes Yes 154 161 5 5

13 GBMS Nain Sukh 4 7 1 6 0 3 Yes Yes Yes 172 189 5 6

14 GBMS Nogran 3 7 1 6 0 3 Yes Yes Yes 265 279 6 7

15 GGMS Langla 3 7 1 6 0 3 Yes Yes Yes 106 143 5 6

16 GGMS Sanwan 4 6 1 5 0 3 Yes Yes Yes 79 84 5 6

17 GBMS Baat Bani 3 6 1 5 0 3 Yes Yes Yes 85 95 5 6

18 GBMS Killi Gabbar 4 7 1 6 0 3 Yes Yes Yes 173 168 5 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

23

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

19 GBMS Orangabad 4 6 1 5 0 3 Yes Yes Yes 108 149 6 6

20 GBMS Kakarwara 3 7 1 6 0 3 Yes Yes Yes 95 111 6 7

21 GGMS Indra Seri 3 6 1 5 0 3 Yes Yes Yes 89 157 6 6

22 GGMS Khanda Bela 3 7 1 6 0 3 Yes Yes Yes 62 75 6 7

23 GBMS Jaskool 3 8 1 7 0 3 Yes Yes Yes 188 200 5 6

24 GBMS Sugna 3 7 1 6 0 3 Yes Yes Yes 124 162 5 6

25 GBMS Shakrian 3 6 1 5 0 3 Yes Yes Yes 126 144 6 6

26 GBMS Bandi Chakan 4 7 1 6 0 3 Yes Yes Yes 114 115 6 6

27 GBMS Chamm 3 7 1 6 0 3 Yes Yes Yes 187 202 5 6

28 GBMS Kot Kaloch 3 7 1 6 0 3 Yes Yes Yes 207 221 5 5

29 GBMS Katheli 4 7 1 6 0 3 Yes Yes Yes 208 317 5 6

30 GBMS Dilli Ochah 4 7 0 5 0 3 Yes Yes Yes 156 208 6 7

31 GBMS Khanda Bela 3 7 0 6 0 3 Yes Yes Yes 107 156 5 6

32 GBMS Dabbar Kalan 3 6 1 5 0 3 Yes Yes Yes 105 122 6 7

33 GBMS Mohra Sadiq 3 6 1 5 0 3 Yes Yes Yes 132 146 6 7

34 GBMS Nandar 3 6 1 5 0 3 Yes Yes Yes 128 134 5 6

35 GBMS Shah Kanja 3 8 1 7 0 3 Yes Yes Yes 175 196 5 6

36 GBMS Chiralla 4 8 1 6 0 3 Yes Yes Yes 74 98 6 6

37 GBMS Daira Jaglari 3 6 1 5 0 3 Yes Yes Yes 163 129 5 5

38 GBMS Chor Jabri 3 8 1 6 0 3 Yes Yes Yes 265 273 5 6

39 GBMS Dher Banaka 3 6 1 5 0 3 Yes Yes Yes 83 103 6 7

40 GBMS Jhir Ganiabad 3 7 1 5 0 3 Yes Yes Yes 179 137 5 6

41 GBMS Kalas Pujay 4 8 1 6 0 3 Yes Yes Yes 170 322 5 6

42 GBMS Kanyati 3 7 1 5 0 3 Yes Yes Yes 240 360 5 6

43 GBMS Khapadar 4 7 1 5 0 3 Yes Yes Yes 249 325 5 6

44 GBMS Khawaja 3 7 1 5 0 3 Yes Yes Yes 142 166 6 6

45 GBMS Kotera Mast Khan 3 7 1 5 0 3 Yes Yes Yes 125 140 6 7

46 GBMS Malal Bagla 3 6 1 5 0 3 Yes Yes Yes 80 62 6 6

47 GBMS Mallot 3 8 1 6 0 3 Yes Yes Yes 258 213 6 7

48 GBMS Nara Kot 4 6 1 5 0 3 Yes Yes Yes 79 90 5 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

24

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

49 GBMS Paddar Masto 3 7 1 5 0 3 Yes Yes Yes 113 153 5 6

50 GBMS Pass Jhola 4 7 1 5 0 3 Yes Yes Yes 190 240 6 6

51 GBMS Singra 3 6 1 5 0 3 Yes Yes Yes 81 118 6 7

52 GBMS Sudhan Gali 4 7 1 5 0 3 Yes Yes Yes 125 131 5 6

53 GGMS Bathara 3 8 1 6 0 3 Yes Yes Yes 98 113 6 7

54 GGMS Dhak Rangla 3 7 1 5 0 3 Yes Yes Yes 110 136 6 7

55 GGMS Gazia Abad 3 7 1 5 0 3 Yes Yes Yes 190 210 5 6

56 GGMS Huller 3 6 1 5 0 3 Yes Yes Yes 71 85 5 6

57 GGMS Jhir Ganiabad 3 7 1 5 0 3 Yes Yes Yes 135 171 6 6

58 GGMS Loon Hotar Bala 4 6 1 5 0 3 Yes Yes Yes 90 110 5 5

59 GGMS Makhdom Kot 4 6 1 5 0 3 Yes Yes Yes 120 140 5 6

60 GGMS Mallot 3 8 1 6 0 3 Yes Yes Yes 168 208 6 7

61 GGMS Mandri 3 7 1 5 0 3 Yes Yes Yes 86 112 5 6

62 GGMS Mohri Farman Shah 3 8 1 6 0 3 Yes Yes Yes 130 169 5 6

63 GGMS Narwal 3 6 1 5 0 3 Yes Yes Yes 70 64 5 6

64 GGMS Nathgran 3 6 1 5 0 3 Yes Yes Yes 85 110 5 6

65 GGMS Panyali Sallian 3 6 1 5 0 3 Yes Yes Yes 70 85 6 6

66 GGMS Pass Jhola 3 7 1 5 0 3 Yes Yes Yes 110 135 6 7

67 GGMS Rair Bun 3 5 1 5 0 3 Yes Yes Yes 95 136 6 6

68 GGMS Rangoli 3 7 1 6 0 3 Yes Yes Yes 150 198 6 7

69 GGMS Reyala 4 6 1 5 0 3 Yes Yes Yes 80 90 5 6

70 GGMS Seri Awera 3 7 1 5 0 3 Yes Yes Yes 98 135 5 6

71 GGMS Seri Bandi 3 8 1 6 0 3 Yes Yes Yes 160 180 6 6

72 GGMS Sohawa Sharif 3 6 1 5 0 3 Yes Yes Yes 95 116 6 6

73 GBMS Bai Bekh 3 6 1 5 0 3 Yes Yes Yes 52 97 6 7

74 GBMS Buttle 3 8 1 6 0 3 Yes Yes Yes 95 112 5 6

75 GBMS Chehor 3 8 1 6 0 3 Yes Yes Yes 43 66 6 7

76 GBMS Dara Sher Khan 3 6 1 5 0 3 Yes Yes Yes 99 116 6 7

77 GBMS Datoote 3 7 1 5 0 3 Yes Yes Yes 60 73 5 6

78 GBMS Khori Chana 3 7 1 5 0 3 Yes Yes Yes 69 95 5 6

79 GBMS Maidan 3 10 1 8 0 3 Yes Yes Yes 190 203 6 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

25

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

80 GBMS Marka Jandali 3 7 1 5 0 3 Yes Yes Yes 53 67 5 5

81 GBMS Namnoot 4 6 1 5 0 3 Yes Yes Yes 80 95 5 6

82 GBMS Narian 4 6 1 5 0 3 Yes Yes Yes 89 120 6 7

83 GBMS Phejwati Bala 3 6 1 5 0 3 Yes Yes Yes 72 83 5 6

84 GBMS Thorar 3 7 1 5 0 3 Yes Yes Yes 40 55 5 6

85 GGMS Ali Sojal 3 7 1 5 0 3 Yes Yes Yes 270 273 5 6

86 GGMS Chall Trar 3 7 1 5 0 3 Yes Yes Yes 106 100 5 6

87 GGMS Chchaphra Bun 3 6 1 5 0 3 Yes Yes Yes 75 68 6 6

88 GGMS Choti Nakar 3 6 1 5 0 3 Yes Yes Yes 93 90 6 7

89 GGMS Danna Miral Gala 4 6 1 5 0 3 Yes Yes Yes 124 126 6 6

90 GGMS Datoote 4 6 1 5 0 3 Yes Yes Yes 62 58 6 7

91 GGMS Dessha Phejwati 4 7 1 5 0 3 Yes Yes Yes 331 105 5 6

92 GGMS Kal Pur 3 8 1 6 0 3 Yes Yes Yes 87 94 5 6

93 GGMS Kana Parat 3 7 1 5 0 3 Yes Yes Yes 69 65 6 6

94 GGMS Marka Jandali 3 6 1 5 0 3 Yes Yes Yes 63 60 6 6

95 GGMS Numble Sarrari 3 6 1 5 0 3 Yes Yes Yes 65 64 6 7

96 GGMS Parat 3 6 1 5 0 3 Yes Yes Yes 81 74 6 7

97 GGMS Peer Pothi Chaprian 3 6 1 5 0 3 Yes Yes Yes 77 79 6 6

98 GGMS Sukhail Dhara 4 6 1 5 0 3 Yes Yes Yes 83 88 5 6

99 GGMS Sumlary Tain 3 7 1 5 0 3 Yes Yes Yes 68 76 5 6

100 GGMS Tangi Gala 3 7 1 5 0 3 Yes Yes Yes 90 88 6 7

101 GGMS Thorar 4 6 1 5 0 3 Yes Yes Yes 116 43 5 5

102 GGMS Timrota Markaz 3 6 1 5 0 3 Yes Yes Yes 85 80 5 6

103 GGMS Lohar Gali 3 8 1 7 0 3 Yes Yes Yes 95 112 5 6

104 GGMS Nalochi 3 10 1 7 0 3 Yes Yes Yes 124 144 5 6

105 GGMS Dhani Seri 3 7 1 5 0 3 Yes Yes Yes 98 125 5 6

106 GBMS Dharra Battangi 3 6 1 5 0 3 Yes Yes Yes 100 82 6 6

107 GBMS Thotha 3 7 1 5 0 3 Yes Yes Yes 119 139 6 7

108 GGMS Darra Batangi 3 6 1 5 0 3 Yes Yes Yes 86 102 6 6

109 GBMS Kutli Sarar 3 7 1 5 0 3 Yes Yes Yes 78 113 6 7

110 GBMS Moyan Syedan 3 6 1 5 0 3 Yes Yes Yes 102 119 5 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

26

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

111 GBMS Batt Kanala 3 6 1 5 0 3 Yes Yes Yes 196 153 5 6

112 GGMS Rajpothi 3 7 1 5 0 3 Yes Yes Yes 123 148 5 6

113 GBMS Chauthla 3 8 1 6 0 3 Yes Yes Yes 127 104 6 7

114 GBMS Malsi 3 7 1 5 0 3 Yes Yes Yes 206 260 5 6

115 GGMS Kakarwara 3 7 1 5 0 3 Yes Yes Yes 88 102 6 7

116 GBMS Chikar 3 10 1 7 0 3 Yes Yes Yes 165 176 6 7

117 GBMS Dumbi 3 6 1 5 0 3 Yes Yes Yes 113 159 5 6

118 GBMS Khunbandi 4 7 1 5 0 3 Yes Yes Yes 97 100 5 6

119 GBMS Kot Sangar 3 6 1 5 0 3 Yes Yes Yes 117 98 5 6

120 GBMS Numhotar 3 8 1 6 0 3 Yes Yes Yes 383 373 5 6

121 GBMS Parthama 3 8 1 6 0 3 Yes Yes Yes 186 214 5 6

122 GBMS Saleh Gali 3 8 1 6 0 3 Yes Yes Yes 261 286 5 6

123 GGMS Gorsian 3 6 1 5 0 3 Yes Yes Yes 140 156 6 6

124 GGMS Katcheli 3 6 1 5 0 3 Yes Yes Yes 75 84 6 7

125 GGMS Kai Manja 3 6 1 5 0 3 Yes Yes Yes 40 66 6 6

126 GGMS Katkair Bala 3 7 1 5 0 3 Yes Yes Yes 102 109 6 7

127 GGMS Kharian 3 6 1 5 0 3 Yes Yes Yes 117 138 5 6

128 GGMS Khunbandi 3 7 1 5 0 3 Yes Yes Yes 120 128 5 6

129 GGMS Mohri Awan Patti 3 6 1 5 0 3 Yes Yes Yes 78 88 5 6

130 GBMS Mera Khurd 3 7 1 5 0 3 Yes Yes Yes 225 238 6 7

131 GGMS Mera Suroo 3 7 1 5 0 3 Yes Yes Yes 116 84 5 6

132 GBMS Lawasi 3 6 1 5 0 3 Yes Yes Yes 124 62 6 7

133 GGMS Timbi 3 6 1 5 0 3 Yes Yes Yes 110 119 6 7

134 GBMS Prem Kot 3 6 1 5 0 3 Yes Yes Yes 103 121 5 6

135 GGMS Sena Daman 4 6 1 5 0 3 Yes Yes Yes 40 46 5 6

136 GGMS Malsi Bala 3 7 1 5 0 3 Yes Yes Yes 206 211 5 6

137 GBMS Chaman Kutli Azim Khan 5 7 1 5 0 3 Yes Yes Yes 175 203 6 6

138 GBMS Raheem Kot 3 7 1 5 0 3 Yes Yes Yes 255 237 6 7

139 GBMS Kundian 3 7 1 5 0 3 Yes Yes Yes 145 179 5 6

140 GBMS Lower Kot 3 6 1 5 0 3 Yes Yes Yes 116 162 6 7

141 GBMS Bokara 3 8 1 6 0 3 Yes Yes Yes 197 225 5 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

27

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

142 GBMS Chaffar Bala 3 8 1 6 0 3 Yes Yes Yes 130 172 5 6

143 GBMS Chattra Colony 3 6 1 5 0 3 Yes Yes Yes 75 99 5 6

144 GBMS Dhar Bagoin 3 7 1 5 0 3 Yes Yes Yes 40 57 5 6

145 GBMS Kai Dhara Sarrari 3 7 1 5 0 3 Yes Yes Yes 99 126 6 6

146 GBMS Khrange 3 8 1 6 0 3 Yes Yes Yes 131 181 6 7

147 GBMS Kunuyan 3 6 1 5 0 3 Yes Yes Yes 141 163 6 6

148 GBMS Mutial Mera 3 7 1 5 0 3 Yes Yes Yes 21 30 6 7

149 GBMS Nakar Singola 3 6 1 5 0 3 Yes Yes Yes 68 94 5 6

150 GBMS Nur Kumleen 3 6 1 5 0 3 Yes Yes Yes 50 69 5 6

151 GBMS Narwal 3 7 1 5 0 3 Yes Yes Yes 97 131 5 6

152 GBMS Natar 3 8 1 6 0 3 Yes Yes Yes 130 157 6 7

153 GBMS Noor Kot 3 6 1 5 0 3 Yes Yes Yes 89 102 5 6

154 GBMS Passari Rakkar 3 8 1 6 0 3 Yes Yes Yes 128 163 6 7

155 GBMS Quanchi Kot 3 6 1 5 0 3 Yes Yes Yes 84 92 6 7

156 GBMS Rant 3 7 1 5 0 3 Yes Yes Yes 54 84 5 6

157 GBMS Sermila Bagoin 3 7 1 5 0 3 Yes Yes Yes 89 134 5 6

158 GBMS Trapy 3 8 1 6 0 3 Yes Yes Yes 103 126 6 6

159 GGMS Trar Trani 3 6 0 5 0 3 Yes Yes Yes 140 75 5 5

160 GGMS Akhor Ban 3 5 1 5 0 3 Yes Yes Yes 140 143 5 6

161 GGMS Akramabad 3 3 1 1 0 3 Yes Yes Yes 138 140 6 7

162 GGMS Bhadwall Mohra 3 7 1 5 0 3 Yes Yes Yes 54 52 5 6

163 GGMS Chattra 3 7 1 5 0 3 Yes Yes Yes 136 138 5 6

164 GGMS Chehor 3 7 1 5 0 3 Yes Yes Yes 56 40 5 6

165 GGMS Dharamsal 3 7 1 5 0 3 Yes Yes Yes 55 58 5 6

166 GGMS Ghai Banjosa 3 7 1 5 0 3 Yes Yes Yes 83 96 6 6

167 GGMS Kharange 3 7 1 5 0 3 Yes Yes Yes 95 94 6 7

168 GGMS Kunuyan 3 6 1 5 0 3 Yes Yes Yes 72 74 6 6

169 GGMS Mangora 3 6 1 5 0 3 Yes Yes Yes 76 78 6 7

170 GGMS Mirch Kot 3 7 1 5 0 3 Yes Yes Yes 144 146 5 6

171 GGMS Nakar Khwajgaan 3 6 1 5 0 3 Yes Yes Yes 82 88 5 6

172 GGMS Namnoota 4 6 1 1 0 3 Yes Yes Yes 76 78 5 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

28

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

173 GGMS Narkumleen 4 4 1 4 0 3 Yes Yes Yes 52 50 5 6

174 GGMS Nara Khater 3 6 1 5 0 3 Yes Yes Yes 57 53 6 6

175 GGMS Nattar 3 7 1 5 0 3 Yes Yes Yes 138 135 6 7

176 GGMS Numble Bala Ghamir 3 6 1 5 0 3 Yes Yes Yes 97 95 6 6

177 GGMS Sari Hill Kharick 3 6 1 5 0 3 Yes Yes Yes 39 38 6 7

178 GGMS Sharqi Tangrian 3 6 1 5 0 3 Yes Yes Yes 89 93 5 6

179 GGMS Soli Mandhole 3 7 1 5 0 3 Yes Yes Yes 100 103 5 6

180 GGMS Tahi Khas 3 6 1 5 0 3 Yes Yes Yes 173 176 5 6

181 GGMS Tangrarian Wasti 3 6 1 5 0 3 Yes Yes Yes 79 83 6 7

182 GGMS Teroti 3 7 1 5 0 3 Yes Yes Yes 99 100 5 6

183 GBMS Awera 3 8 1 6 0 3 Yes Yes Yes 249 299 6 7

184 GBMS Bhount 3 7 1 5 0 3 Yes Yes Yes 138 152 6 7

185 GBMS Broli Bhount 2 7 1 5 0 3 Yes Yes Yes 163 144 5 6

186 GBMS Chatter No 2 3 8 1 6 0 3 Yes Yes Yes 187 177 5 6

187 GBMS Dhokan Rawali 3 6 1 5 0 3 Yes Yes Yes 160 150 5 6

188 GBMS Hatalla Topi 2 6 1 5 0 3 Yes Yes Yes 108 159 5 6

189 GBMs Huma Mohra 3 6 1 5 0 3 Yes Yes Yes 54 52 5 6

190 GBMS Kathi 3 7 1 5 0 3 Yes Yes Yes 275 170 5 6

191 GGMS Kherl Panyali 3 6 1 5 0 3 Yes Yes Yes 70 86 6 6

192 GBMS Nakar Topi 3 6 1 5 0 3 Yes Yes Yes 101 105 6 7

193 GBMS Nazar Pur 3 7 1 5 0 3 Yes Yes Yes 131 145 6 6

194 GBMS Samni 2 8 1 6 0 3 Yes Yes Yes 275 266 6 7

195 GBMS Sever Kalu Khan 3 8 1 6 0 3 Yes Yes Yes 180 160 5 6

196 GGMS Baghloor 3 6 1 5 0 3 Yes Yes Yes 70 85 5 6

197 GGMS Bassara 3 6 1 5 0 3 Yes Yes Yes 120 130 5 6

198 GGMS Kherl Maldyala 3 7 1 5 0 3 Yes Yes Yes 115 146 6 7

199 GGMS Kotera Mast Khan 2 7 1 5 0 3 Yes Yes Yes 140 169 5 6

200 GGMS Pan Dharay 2 6 1 5 0 3 Yes Yes Yes 90 118 6 7

201 GGMS Panyali 4 6 1 5 0 3 Yes Yes Yes 90 108 6 7

202 GGMS Rera 3 8 1 6 0 3 Yes Yes Yes 210 28 5 6

203 GGMS Sallian 3 8 1 6 0 3 Yes Yes Yes 150 202 5 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

29

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

204 GGMS Seri Phai 3 7 1 5 0 3 Yes Yes Yes 130 149 6 6

205 GGMS Sulakhi Kafal Garh 3 7 1 5 0 3 Yes Yes Yes 132 168 5 5

206 GBMS Barmang 3 6 1 5 0 3 Yes Yes Yes 67 91 5 6

207 GBMS Birmun Singola 3 6 1 5 0 3 Yes Yes Yes 70 84 6 7

208 GBMS Jalooth 2 7 1 5 0 3 Yes Yes Yes 77 97 5 6

209 GBMS Nakar Bangoin 4 7 1 5 0 3 Yes Yes Yes 53 78 5 6

210 GBMS Phagoa 3 6 1 5 0 3 Yes Yes Yes 40 52 5 6

211 GBMS Poth Bangoien 3 7 1 5 0 3 Yes Yes Yes 134 157 5 6

212 GBMS Soon Nara 3 6 1 5 0 3 Yes Yes Yes 96 109 6 6

213 GBMS Soon Tain 3 6 1 5 0 3 Yes Yes Yes 61 76 6 7

214 GBMS Timruta 2 7 1 5 0 3 Yes Yes Yes 55 70 6 6

215 GGMS Baghina Pachiot 3 6 1 5 0 3 Yes Yes Yes 112 83 6 7

216 GGMS Bogara Tain 4 6 1 5 0 3 Yes Yes Yes 79 83 6 7

217 GGMS Kharian 3 7 1 5 0 3 Yes Yes Yes 54 56 5 6

218 GGMS Nakkar Binakha 2 7 1 5 0 3 Yes Yes Yes 53 84 6 7

219 GGMS Numb Gala 3 6 1 5 0 3 Yes Yes Yes 72 79 6 7

220 GGMS Rair Bun 3 6 1 5 0 3 Yes Yes Yes 74 122 5 6

221 GGMS Sehar Bareen 3 7 1 5 0 3 Yes Yes Yes 83 94 5 6

222 GGMS Singal Khater 2 7 1 5 0 3 Yes Yes Yes 62 47 6 6

223 GGMS Soon Topa 3 6 1 5 0 3 Yes Yes Yes 82 94 5 5

224 GGMS Topi 3 6 1 5 0 3 Yes Yes Yes 90 104 5 6

225 GBMS Bangran 4 7 1 5 0 3 Yes Yes Yes 78 95 6 7

226 GBMS Bishan 3 8 1 6 0 3 Yes Yes Yes 229 270 5 6

227 GBMS Bring Bun 3 7 1 5 0 3 Yes Yes Yes 165 189 5 6

228 GBMS Haryala Padder Gulsher 3 5 1 5 0 3 Yes Yes Yes 185 190 5 6

229 GBMS Hathlanja 3 6 1 5 0 3 Yes Yes Yes 145 167 5 6

230 GBMS Kalali 3 7 1 5 0 3 Yes Yes Yes 185 173 6 6

231 GBMS Kathwar 4 7 1 5 0 3 Yes Yes Yes 123 136 6 7

232 GBMS Khawaja Bandi 4 6 1 5 0 3 Yes Yes Yes 169 188 6 6

233 GBMS Khawas 4 6 1 5 0 3 Yes Yes Yes 183 170 6 7

234 GBMS Mong Bajri 3 13 1 6 0 3 Yes Yes Yes 212 450 5 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

30

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

235 GBMS Moroni Jaglari 3 7 1 5 0 3 Yes Yes Yes 136 98 5 6

236 GBMS Naga Nari 3 7 1 5 0 3 Yes Yes Yes 170 195 6 6

237 GBMS Padder 4 7 1 5 0 3 Yes Yes Yes 160 174 6 6

238 GBMS Palan Gaghran 3 7 1 5 0 3 Yes Yes Yes 165 180 6 6

239 GBMS Raji 3 6 1 5 0 3 Yes Yes Yes 140 165 6 6

240 GBMS Salara 2 8 1 6 0 3 Yes Yes Yes 290 320 5 6

241 GBMS Serrian 3 7 1 5 0 3 Yes Yes Yes 183 194 6 7

242 GBMS Temrota Pail 3 9 1 5 0 3 Yes Yes Yes 145 129 5 6

243 GBMS Tongari 3 11 1 6 0 3 Yes Yes Yes 285 327 5 6

244 GGMS Gugar Bun 3 6 1 5 0 3 Yes Yes Yes 65 69 5 6

245 GGMS Kahuta 3 13 1 6 0 3 Yes Yes Yes 490 520 5 6

246 GGMS Kala Mola 3 4 1 5 0 3 Yes Yes Yes 170 182 6 6

247 GGMS Mohri Maidan 3 6 1 5 0 3 Yes Yes Yes 132 157 6 7

248 GGMS Mang Bajri 3 6 1 5 0 3 Yes Yes Yes 65 74 6 6

249 GGMS Nikki Kair 2 6 1 5 0 3 Yes Yes Yes 95 114 6 7

250 GGMS Nar Sher Ali Khan 2 6 1 5 0 3 Yes Yes Yes 96 99 5 6

251 GGMS Num Kakria 3 6 1 5 0 3 Yes Yes Yes 50 66 5 6

252 GGMS Padder 3 5 1 5 0 3 Yes Yes Yes 385 420 5 6

253 GGMS Palangi 3 8 1 6 0 3 Yes Yes Yes 395 480 6 7

254 GGMS Seher Kotli 2 6 1 5 0 3 Yes Yes Yes 70 68 5 6

255 GGMS Tanela Nara Kot 3 6 1 5 0 3 Yes Yes Yes 80 72 6 7

256 GGMS Tholangar 2 6 1 5 0 3 Yes Yes Yes 165 183 6 7

257 GGMS Upper Gugdar 3 7 1 5 0 3 Yes Yes Yes 80 164 5 6

258 GBMS Shah Kot 2 6 1 5 0 3 Yes Yes Yes 140 78 5 6

259 GGMS Authmuqam 2 8 1 6 0 3 Yes Yes Yes 250 202 6 6

260 GBMS Mirpura 2 7 1 5 0 3 Yes Yes Yes 163 239 5 5

261 GBMS Kayyan Sharif 2 7 1 5 0 3 Yes Yes Yes 140 117 5 6

262 GBMS Tehjian 3 8 1 6 0 3 Yes Yes Yes 175 240 6 7

263 GBMS Khawaja Seri 3 6 1 5 0 3 Yes Yes Yes 160 122 5 6

264 GGMS Leswa 3 5 1 5 0 3 Yes Yes Yes 130 128 5 6

265 GBMS Dunjar 3 6 1 5 0 3 Yes Yes Yes 180 179 5 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

31

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

266 GBMS Dudnyal 3 8 1 6 0 3 Yes Yes Yes 400 369 5 6

267 GGMS Kherigam 3 5 1 5 0 3 Yes Yes Yes 120 168 6 6

268 GGMS Malik Seri 3 6 1 5 0 3 Yes Yes Yes 87 187 6 7

269 GGMS Neelum 2 7 1 5 0 3 Yes Yes Yes 150 250 6 6

270 GGMS Kail 3 5 1 5 0 3 Yes Yes Yes 205 407 6 7

271 GBMS Kail 3 10 1 7 0 3 Yes Yes Yes 709 533 6 6

272 GBMS Chilhana Pain 3 5 1 5 0 3 Yes Yes Yes 230 154 5 6

273 GGMS Dudnyal 3 6 1 5 0 3 Yes Yes Yes 170 188 6 7

274 GBMS Kundian Lawat 3 7 1 5 0 3 Yes Yes Yes 150 185 5 6

275 GBMS Bugna Ban Chatter 3 7 1 5 0 3 Yes Yes Yes 146 231 5 6

276 GBMS Aur Syedan 3 7 1 5 0 3 Yes Yes Yes 200 189 5 6

277 GBMS Salikabad 3 6 1 5 0 3 Yes Yes Yes 180 66 5 6

278 GGMS Ghari Dopatta 3 12 1 8 0 3 Yes Yes Yes 295 334 6 6

279 GBMS Sherwan 3 7 1 5 0 3 Yes Yes Yes 150 148 6 7

280 GGMS Hassanabad 3 7 1 5 0 3 Yes Yes Yes 62 89 6 6

281 GGMS Lammian Pattian 3 6 1 5 0 3 Yes Yes Yes 154 167 6 7

282 GGMS Alrha 3 7 1 5 0 3 Yes Yes Yes 35 46 5 6

283 GGMS Kappa Butt 3 6 1 5 0 3 Yes Yes Yes 94 122 5 6

284 GGMS Utrasi 4 7 1 5 0 3 Yes Yes Yes 134 156 6 7

285 GBMS Khannian 4 6 1 5 0 3 Yes Yes Yes 154 181 5 6

286 GBMS Pursacha 4 7 1 5 0 3 Yes Yes Yes 96 122 6 7

287 GGMS Showai 3 3 1 5 0 3 Yes Yes Yes 85 98 6 7

288 GGMS Pahelian 3 6 1 5 0 3 Yes Yes Yes 125 113 5 6

289 GGMS Lower Chatter 3 13 1 8 0 3 Yes Yes Yes 311 229 5 6

290 GBMS Phagal Bandi 3 6 1 5 0 3 Yes Yes Yes 83 54 6 6

291 GBMS Kail Gran 2 7 1 5 0 3 Yes Yes Yes 119 122 5 5

292 GBMS Heer Kutli 4 6 1 5 0 3 Yes Yes Yes 175 134 5 6

293 GBMS Hassan Galian 3 6 1 5 0 3 Yes Yes Yes 53 100 6 7

294 GGMS Bugna Khairabad 2 10 1 7 0 3 Yes Yes Yes 205 128 5 6

295 GGMS Hassan Galian 3 6 1 5 0 3 Yes Yes Yes 117 160 5 6

296 GGMS Rajwian 3 6 1 5 0 3 Yes Yes Yes 88 74 5 6

Electricity

Provided

Water Supply

Provided

Rooms built Student

EnrolmentClassrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

32

Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ Pre-EQ Post-EQ

297 GBMS Sarar 3 8 1 6 0 3 Yes Yes Yes 195 203 5 6

298 GBMS Dhatura 3 6 1 5 0 3 Yes Yes Yes 126 104 6 6

299 GBMS Pala Karashan 4 6 1 5 0 3 Yes Yes Yes 95 109 6 7

300 GBMS Chalpani 3 6 1 5 0 3 Yes Yes Yes 75 76 6 6

301 GBMS Dhavi 3 7 1 5 0 3 Yes Yes Yes 80 113 6 7

302 GBMS Perla Parana Gran 3 7 1 5 0 3 Yes Yes Yes 82 107 5 6

303 GBMS Rajpothi 2 7 1 5 0 3 Yes Yes Yes 81 112 5 6

304 GGMS Pursacha 3 7 1 5 0 3 Yes Yes Yes 75 87 6 6

305 GGMS Jhandgran Pain 4 7 1 5 0 3 Yes Yes Yes 106 57 6 6

306 GBMS Dhanni Mai Sahiba 5 6 1 5 0 3 Yes Yes Yes 108 41 5 6

307 GBMS Sand Bun 2 4 1 5 0 3 Yes Yes Yes 105 74 6 6

308 GGMS Gaju Tukan 2 7 1 5 0 3 Yes Yes Yes 68 61 6 7

309 GGMS Kandar 3 6 1 5 0 3 Yes Yes Yes 105 83 6 7

Source: PCR mission data.

Electricity

Provided

Water Supply

Provided

Rooms built Student

Enrolment

GBMS = government boys middle school, GGMS = government girls middle school, GGPS = government girls primary school, GHS = government high

school, GMS = government middle school, GPS = government primary school,

Classrooms Toilets Other Rooms Furniture

Provided

No. of Teachers

Name of School

Appendix 1

33

Table A1.3: Health Facilities Rehabilitated or Reconstructed

Pre-EQ Post-EQ Required Sanctioned Available Required Provided

1District Headquarter Hospital

Neelum 200,000 25,100 46,643 162 88 26 31,610,000 25,725,000

2 THQH Hattian Bala 52,771 28,657 80,781 86 65 65 20,784,464 6,379,000

3 THQ Hospital Hajira 86,354 10,740 14,275 87 67 55 20,784,464 5,786,000

4 RHC Paniola 24,604 2,487 13,576 32 25 25 3,600,000 1,683,000

5 BHU Morifarmanshah 26,318 1,462 6,439 13 7 6 1,200,000 282,264

6 BHU Namnota 11,735 382 2,168 13 7 6 1,200,000 739,044

7 BHU Thorar 13,380 937 4,086 13 7 7 1,200,000 –

8 BHU Pothi Makwalan 12,141 2,015 3,821 13 7 6 1,200,000 –

9 BHU Bangion 21,527 592 2,459 13 7 6 1,200,000 456,972

10 BHU Bhalgrain 4,620 649 3,312 13 7 6 1,200,000 –

11 BHU Jandala 9,429 1,062 3,125 13 7 6 1,200,000 391,380

12 BHU Hurnamera 18,551 884 1,874 13 7 7 1,200,000 726,324

13 BHU Dhamni 13,326 2,019 2,148 13 7 6 1,200,000 728,436

14 BHU Hussain Kot 20,414 1,770 2,586 13 7 6 1,200,000 337,248

15 BHU Jandali 6,671 508 2,304 13 7 7 1,200,000 794,028

16 BHU Kotera 6,440 754 2,266 13 7 6 1,200,000 911,640

17 BHU Chotagala 8,832 504 3,201 13 7 7 1,200,000 853,536

18 BHU Datoot 837 4,033 13 7 6 1,200,000 –

19 BHU Singola 15,591 759 5,537 13 7 6 1,200,000 –

20 BHU Pothi Chapprian 15,000 443 2,055 13 7 7 1,200,000 –

21 BHU Sehra 12,455 1,282 3,414 13 7 7 1,200,000 276,888

22 BHU Rakkar 16,250 850 2,272 13 7 6 1,200,000 856,656

23 BHU Mandhole 21,329 762 3,295 13 7 6 1,200,000 281,712

Finances (PRs)In-Patient Provision of Staff

Appendix 1

34

Source: PCR mission data.

Pre-EQ Post-EQ Required Sanctioned Available Required Provided

24 BHU Davi Gali 13,802 451 2,080 13 7 6 1,200,000 852,132

25 BHU Sarari 12,335 518 2,772 13 7 6 1,200,000 –

26 BHU Chaffar 8,949 549 1,932 13 7 6 1,200,000 –

27 BHU Khalidraman 34,805 562 2,362 13 7 6 1,200,000 565,186

28 BHU Ghambir 13,317 683 2,125 13 7 6 1,200,000 –

29 BHU Tatrinote 20,014 545 2,121 13 7 6 1,200,000 791,064

30 BHU Rehara 20,176 719 2,450 13 7 7 1,200,000 413,448

– = information not available, BHU = basic health unit, THQ = tehsil headquarter, THQH = tehsil headquarter hospital

Finances (PRs)In-Patient Provision of Staff

Appendix 2

35

CONSULTING SERVICES

Description

Person-months

Original Actual

1. Planning and contract management (for turnkey construction in education sector in AJK

233 521

2. Construction supervision of BHUs in Rawlakot 12 24 3. Construction supervision of BHUs in Poonch 12 25 4. Construction supervision of DHQH Athmuqam 12 23 5. Construction supervision of RHC Paniola and BHUs in Poonch 12 25

6. Design and construction supervision of transport sector in Abbottabad and Mansehra

162 275

7. Design and construction supervision of transport sector in Battagran, Shangla, and Kohistan

276 370

8. Design and construction supervision of transport sector in AJK 563 914 9. Design and construction supervision AJKED 60 93

10. Design and construction supervision of Alpuri Besham road 68 110

11. Planning and contract management (for turnkey construction in education sector in KP)

187 526

Total 1,597 2,906

AJK = Azad Jammu and Kashmir, AJKED = Azad Jammu and Kashmir Electricity Department, BHU = basic health unit, DHQ = district headquarter hospital, KP = Khyber Pakhtunkhwa, RHC = rural health center Source: Project completion review data.

Appendix 3

36

PROJECT COST ($ millions)

Table A3.1: Project Cost – Summary

Component Appraisal Estimate

Revised February 2010 Actual

A. Asian Development Bank Financing

1. Quick-Disbursing 100.0 112.5 115.6 a. Grant financing 65.0 65.0 65.0

b. Loan financing 35.0 47.5 50.6 2. Project Components

a. Equipment and Materials 49.0 30.7 24.1 i. Education 2.5 10.8 5.9 ii. Health 10.5 4.1 3.5 iii. Transport 1.5 1.1 0.2 iv. Power 34.5 14.7 14.5

b. Civil Works 136.0 228.1 208.4 i. Education 15.0 80.0 67.9

ii. Health 12.0 20.4 17.9 iii. Transport 103.5 117.9 114.1

iv. Power 5.5 9.9 80.6 c. Implementation Assistance 15.0 34.3 30.8 i. Legal assistance, governance, and

institutional building 2.5 2.8 1.7

ii. Incremental administrative support 5.0 11.3 9.3 iii. Consulting services 7.5 20.2 19.9

Subtotal (A) 300.0 405.6 378.8 B. Government Financing (counterpart) 1. Physical Works 51.5 55.5 31.8

i. Education 5.1 8.6 2.0 ii. Health 5.6 4.4 2.7 iii. Transport 29.8 39.3 26.3 iv. Power 11.0 3.3 0.8

2. Taxes and Duties 18.3 15.8 37.6 i. Education 1.0 1.1 18.3 ii. Health 1.6 1.3 1.5 iii. Transport 5.2 0.4 7.6 iv. Power 2.5 4.9 0.9 v. Quick-disbursing 8.0 8.1 9.2

3. Interest During Implementation 4.4 6.3 0.0 Subtotal (B) 74.2 77.6 69.4

Total Project Cost 374.2 483.2 448.3

Source: Project completion review data

Appendix 3

37

Table A3.2: Project Cost – By Sector

Sector At Appraisal At Completion

A. Quick-Disbursing 108.0 124.8 B. Education 23.6 94.0 C. Health 29.7 25.6 D. Transport 140.0 148.2 E. Power 53.5 24.8 F. Legal Assistance 2.5 1.7 G. Incremental Administrative Support 5.0 9.3 H. Consulting Services 7.5 19.9 I. Interest During Implementation 4.4 0.0

Total 374.2 448.3

Source: Project completion review data

Appendix 4

38

YEARLY CONTRACT AWARD AND DISBURSEMENT

Figure 10.1: Yearly Contract Awards and Disbursement

– Loan

Figure 10.2: Yearly Contract Awards and Disbursement – Grants

Source: ADB’s loan financial information system.

-

30.0

60.0

90.0

120.0

150.0

2006 2007 2008 2009 2010 2011 2012

$ m

illio

n

Contract Award Disbursement

-

15.0

30.0

45.0

60.0

75.0

2006 2007 2008 2009 2010 2011 2012

$ m

illio

n

Contract Award Disbursement

App

end

ix 5

39

PROJECT IMPLEMENTATION SCHEDULE

Project Implementation Years

Quarters

Activities

1. Recruitment of Consultants

Shortlisting of consultants

Selection and contract signing

Fielding of consultants

2. Preparation

Staff training and orientation

3. Transport and Communication

Survey and design/due diligence

Construction

41 2 3 4 1 2 3 4 1 2

2010 20112006 2007 2008 2009

41 2 3 4 1 2 3 4 1 2 33

Establishment of fund flow and management

system

Bidding and contract award for civil works

contracts

Incremental staff recruitment and PIU/PMU

establishment

Establishment of financial and physical

monitoring system

Survey, verification, and identification of

subprojects/due diligence

40

A

pp

end

ix 5

Source: Project completion review data

Project Implementation Years

Quarters

4. Power Component

Survey and design/due diligence

Bidding and contract award for supply contracts

Construction

5. Health and Education component

Survey and design/due diligence

Bidding and contract award for supply contracts

Construction

Legend

At appraisal

At completion

41 2 3 4 1 2 3 4 1 2

2010 20112006 2007 2008 2009

41 2 3 4 1 2 3 4 1 2 33

Bidding and contract award for civil works

contracts

Bidding and contract award for civil works

contracts

Appendix 6 41

STATUS OF COMPLIANCE WITH LOAN COVENANTS

Covenant

Reference in Financing Agreement Status of Compliance

In the carrying out of the Project and operation of the Project facilities, the Beneficiary shall perform, or cause to be performed, all obligations set forth in Schedule 6 to this Financing Agreement.

Financing Agreement

Section 4.01

Complied.

The Beneficiary shall (i) maintain, or cause to be maintained, separate accounts for the Project including separate accounts for the Loan and the Grant; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 4 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the Loan proceeds and the Grant proceeds and compliance with the financial covenants of this Financing Agreement as well as on the use of the procedures for imprest account/statement of expenditures), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

Financing

Agreement Section 4.02(a)

Partially complied. The executing agency (EA) and implementing agencies (IAs) maintained separate accounts for the project, including separate accounts for the loan and the grants. The separate accounts of the ERRA and related financial statements were audited annually, in accordance with appropriate auditing standards consistently applied by independent auditors whose qualifications and experience were acceptable to ADB. The audit reports submission to ADB was delayed and in many cases submitted more than 4 months after the end of the fiscal year. The auditors provided a generic opinion on the use of the loan and grant funds but provided no specific opinion on the use of the ADB loan and grant proceeds, compliance with the financial covenants, or the use of the procedures for imprest account/statement of expenditures.

The Beneficiary shall enable ADB, upon ADB’s request, to discuss the Beneficiary’s financial statements for the Project and its financial affairs related to the Project from time to time with the auditors appointed by the Beneficiary pursuant to Section 4.02(a) here-above, and shall authorize and require representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of the Beneficiary unless the Beneficiary shall otherwise agree.

Financing

Agreement Section 4.02(b)

Complied. A separate audit of Grant 0037 and the education component of the project managed by ADB was conducted by a third party appointed by the EU. The borrower provided all the information requested for the audit.

42 Appendix 6

Covenant

Reference in Financing Agreement Status of Compliance

The Beneficiary shall enable ADB’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan and the Grant, and any relevant records and documents.

Financing Agreement

Section 4.03

Complied. Regular missions were conducted to review completed and ongoing works, and the borrower fully cooperated with these missions.

ERRA shall be the EA for the Project and MOF shall be the EA for the Quick Disbursing Component. In its operations, ERRA’s Board, chaired by ERRA’s Chairman, shall implement the Project through RAs, provincial and district line departments following current procedures, on fast track basis. ERRA shall also approve major changes in scope and cost of the subprojects, annual plans and budgets, and support IAs with financial and technical management.

Financing

Agreement, Schedule 6,

paragraph 1

Complied.

ERRA shall be staffed by various specialist professionals deputed from relevant government departments (also from the Beneficiary's federal government and other provinces), and hired from private sector as necessary for ERRA to carry out its functions. Periodic social and technical monitoring, regular review and overall financial audits of the Project will be carried out by ERRA, AGP, MOF and CGA will prescribe the related procedures and requirements for fiduciary monitoring. IAs shall develop the subprojects following the selection criteria and social compliance, through public consultation, based on procedures outlined in Appendix 10 to RRP and to be formalized in an operation manual to be prepared by ERRA.

Financing

Agreement, Schedule 6,

paragraph 2

Complied.

EAs and IAs responsible for implementation of the Project shall be as below. Quick Disbursing Component, EA: MOF; Transport Sector Component, EA: ERRA, IA: AJK RA, Local Government and Rural Development Department and the Public Works Department of AJK, PESCO RA, line departments of PESCO, district governments, and FHA; Power Sector Component, EA: ERRA, IA: PESCO, IESCO, SHYDO and Department of Electricity of AJK; Social Sector Component, EA: ERRA, IA: Education Sector Component, AJK RA, Education Department of AJK, Health Sector Subcomponent, AJK RA, Health Department of AJK; Implementation Assistance Component, EA: ERRA; Legal Assistance, Governance and Institutional Building Subcomponent, EA: ERRA.

Financing Agreement, Schedule 6, paragraph 3

Complied. In AJK, the transport sector was implemented only by the Public Works Department.

SCs of AJK and NWFP shall be headed by the respective Additional Chief Secretaries and shall have representation of ERRA, provincial line

Financing Agreement, Schedule 6,

Complied.

Appendix 6 43

Covenant

Reference in Financing Agreement Status of Compliance

departments and districts. SCs and ERRA will approve workplans, budgets and provide overall guidance, in line with emergency procedures to be put in place by the ERRA Council and/or Board.

paragraph 4

DACs/DDCs headed by DCO or Nazims in NWFP and Deputy Commissioners in AJK, will be responsible for identification of subprojects and needs, and recommend plans for approval of the respective SC,

Financing Agreement, Schedule 6, paragraph 5

The ERRA, RAs and line departments staff requirements, and related operating costs, will be funded by the Project. IAs additional incremental staff and overhead cost for sub-project implementation, and technical backstopping and technical assistance support for IAs to plan, design, supervise and implement the subprojects, will be financed by the subprojects.

Financing Agreement, Schedule 6, paragraph 6

Complied. PIUs were established in all IAs and EAs. The operational and incremental staff cost of the PIUs were financed from the project. In addition, consultants were fielded for all sector components.

Islamic Republic of Pakistan (IRP) shall implement the Project in accordance with the detailed implementation arrangements in the RRP, as may be further refined or amended by agreement between ADB and the Beneficiary.

Financing Agreement, Schedule 6, paragraph 7

Complied.

IRP shall ensure that within one month of the Effective Date the Project Implementation Agreement, substantially in the format, acceptable to ADB, is signed between (i) NWFP and SHYDO; (ii) NWFP and FHA; (iii) NWFP and each of the district governments; (iv) NWFP and NWFP RA; and (v) AJK and AJK RA.

Financing Agreement, Schedule 6, paragraph 8

Complied. A separate project agreement was signed with the National Highways Authority, after it was declared an IA through a major change in scope approved by the management. No subsidiary agreement was required with the Frontier Highway Authority and district governments, because no subproject was implemented by them. No subsidiary agreements were required with RAs in KP and AJK because these were incorporated into the planning and development departments and not as separate or autonomous authorities.

The Beneficiary shall ensure that all subprojects are selected in accordance with the agreed criteria, procedures and implementation arrangements stipulated in the RRP, as may be amended by agreement between ADB and the Beneficiary.

Financing Agreement, Schedule 6, paragraph 9

Complied.

The Beneficiary shall ensure that the first 2 subprojects to be implemented by each IA shall be subject to prior review and approval by ADB

Financing Agreement, Schedule 6,

Complied.

44 Appendix 6

Covenant

Reference in Financing Agreement Status of Compliance

before commencement. Any subsequent subproject estimated to cost the equivalent of more than $500,000 but less than $3,000,000 shall be submitted to SC, and ADB for information only, while subproject estimated to cost the equivalent or more than $3,000,000 shall be subject to prior review and approval by ADB. Subproject estimated to cost the equivalent of $500,000 or less shall be subject to approval by the respective SC and random audit and checks by ADB o ensure compliance with requirements of subproject selection criteria and implementation arrangements in Appendix 10 to the RRP.

paragraph 10

AJK and NWFP shall ensure that the facilities provided under the Project are operated and maintained appropriately, and that adequate budgetary and other resources are provided for operation and maintenance,

Financing Agreement, Schedule 6, paragraph 11

Partially complied. The education, power and most transport facilities are being maintained and operated. However, the funds and staff for operating health facilities are inadequate.

The Beneficiary shall provide legal facilitation and assistance to earthquake victims for accessing legal entitlements and to help them to address issues of legal entitlement arising from the earthquake, including an earthquake legal framework that shall be adopted for making special provision for persons and property affected by the earthquake and vulnerable people,

Financing Agreement, Schedule 6, paragraph 12

Complied. Dedicated windows were established in the law, judiciary, revenue, and ombudsman offices to address entitlements. In addition, 18 legal aid centers financed by the project were opened to provide free legal aid to earthquake-affected people.

The Beneficiary shall ensure that NWFP and AJK shall implement the Legal Assistance, Governance and Institutional Building Subcomponent in accordance with the following principles: (i) affected people are offered people- centered solutions and recognition is given, at an early stage, that vulnerable groups require special and urgent arrangements; (ii) rehabilitation activity is designed for, and implemented by, the lowest level of mandated and competent agency; (iii) durable arrangements are made, which assign clear responsibilities for central and localized strategic coordination; (iv) needs and sectorial technical responses are assessed and defined in ways that avoid unmanageable demands; (v) innovative institutional arrangements are created (even if only temporary) through which specialized expertise can be quickly mobilized and held accountable; and (vi) validation, audit, accountability, judicial and quasi-judicial arrangements are stipulated with a clear view of enhancing the predictability of outcomes for

Financing Agreement, Schedule 6, paragraph 13

Complied. Special arrangements, including a vulnerability survey, were made to reach out to vulnerable people. The implementation was carried out by existing mandated institutions. Coordination mechanisms were developed at the sector, federal, provincial, and district levels to ensure seamless delivery of investments and services.

Appendix 6 45

Covenant

Reference in Financing Agreement Status of Compliance

disaster affected people,

In furtherance of the principles set out in paragraph above, the Beneficiary shall or ensure that NWFP and AJK shall, do the following:

Financing Agreement, Schedule 6, paragraph 14

Complied. Dedicated windows were established for registration, providing identity documents and reconstructing lost revenue records for entitlements. Similarly, dedicated windows were established in the judiciary, revenue, law and ombudsman offices to address issues arising from the earthquake. The information generated on assessments and entitlements was posted at the ERRA and NADRA websites. Grievance issues were addressed through a dedicated window within the ERRA and by the additional staff provided to the ombudsman office.

(i) federal and local government departments shall develop new modalities in order to expedite the process of providing duplicates of legal documents to earthquake affected people;

(ii) train judicial, revenue, local officials and police in dealing with legal and executive problems and issues arising from the earthquake and provide public legal awareness workshops in or for the earthquake affected areas;

(iii) Create a decentralized provincial system of public grievance review and alternative dispute resolution will be established or supported in the earthquake affected areas and staffed by independent persons;

(iv) Ensure that information on earthquake assistance, post earthquake rehabilitation and reconstruction, names of affectees and extent of damage suffered by them, and related laws and policies, shall be placed on an earthquake web-site, and published in Urdu, Pushtoo and English in local newspapers. This would require some coordination amongst departments, donors, and NGOs to obtain the appropriate information. The information to be included may present financial statements, track procurement contract awards, including its amount, and basic information on the processes adopted, list of goods or services purchased and their utilization.

Awareness raising activities in communities on the importance of national identity cards ("NICs") shall be followed by an intensive NIC issuance campaign. In cooperation with the National Database Registration Authority ("NADRA") and union council members, where appropriate, mobile NIC units shall go to earthquake affected areas and issue NICs. The mobile unit shall be equipped with photo taking and processing equipment as well as other material needed to issue NICs. Union council members or other appropriate local leaders shall be involved to attest on the accuracy of information provided by villagers. To avoid dependence on one single person for attestation, an alternative form of attestation shall be developed for this specific

Financing Agreement, Schedule 6, paragraph 15

Complied. Mobile NADRA units were established with male and female staff. Simplified procedures for issuing ID cards were approved and implemented.

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campaign. The staff of the mobile unit shall include at least one woman to ensure that female villagers have opportunities to obtain NICs,

The Beneficiary shall ensure that adequate environmental mitigation measures in accordance with (a) the Beneficiary's environmental regulations and (b) ADB's Environment Policy (2002) are incorporated into all subproject designs and implementation. The Beneficiary shall ensure that the EMP to mitigate any adverse environmental impacts of any subproject is implemented, and in the event that unexpected impacts occur, remedial measures are prepared in consultation with ADB. The Beneficiary shall ensure that the agreed EARF is applied in selecting subprojects; that a subproject for which an environmental assessment study is required has such required study completed and a subproject for which Beneficiary environmental clearance is required obtains such clearance prior to the award of any contracts for that subproject.

Financing Agreement, Schedule 6, paragraph 16

Complied. Environmental impact assessments, initial environmental examinations, and an environmental management plan (EMP), as required, were developed for all subprojects and also considered as part of the selection criteria. In some cases—for example, in schools—generic EMPs were developed. The EMPs were integrated into the contract documents and closely monitored during implementation. EA and IA staff were trained in monitoring and reporting on EMP implementation. In addition, a third party was employed to undertake sample monitoring of EMP implementation.

The Beneficiary shall ensure that, to the extent possible, subprojects shall avoid land acquisition and involuntary relocation. In the event land acquisition or involuntary relocation is required for any subproject, the Beneficiary shall prepare an RP in accordance with the IRP’s applicable laws and regulations, ADB's Policy on Involuntary Resettlement (1995) and the agreed RF; and submit it to ADB for review and approval before resettlement is initiated. The RPs shall be disclosed to all affected persons in their own languages and the Project reporting shall provide information on land acquisition and resettlement.

Financing Agreement, Schedule 6, paragraph 17

Partially complied. The majority of subprojects did not require any land acquisition or resettlement, and subprojects requiring resettlement were generally avoided. Resettlement was involved only where schools had to be relocated because of hazards or where minor geometric improvements were to be made in roads. Land acquisition and resettlement plans LARPs were prepared for the few roads where acquisition was involved and were implemented and monitored, including through third-party reporting. For a few relocated schools where LARPs were not prepared, due diligence reports confirmed that resettlement was voluntary and that the resettled person was adequately compensated. Minor gaps were noted in a few cases of delayed compensation related to internal disputes

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among affected people. These cases were still pending legal settlement, with funds deposited with the revenue departments, awaiting resolution.

The Beneficiary shall ensure that the agreed GAP is fully implemented and that adequate resources are allocated for this purpose in a timely manner. In particular, IRP shall ensure (a) equal participation of women in the reconstruction planning; (b) recovery of livelihood of women and economic activities for women, especially those who have become head of family; (c) equal access of women and men to infrastructure activities in relation to planning, construction, as users and in maintenance; (d) equal compensations for women for land acquisition under the Project; and (e) equal wages for female workers in reconstruction and rehabilitation activities.

Financing Agreement, Schedule 6, paragraph 18

Complied. The gender action plan (GAP) was implemented. School management committees were formed, with the participation of women, and consulted on school plans and designs. The contract agreements included clauses ensuring equal access and wages for women and men in infrastructure construction. The design of health and education facilities included dedicated spaces, waiting areas, services, and sanitation facilities for women and men. Wherever land was acquired or there was any temporary impact from construction activity, women were compensated at par with men or better. Details are provided in Appendix 10.

The Beneficiary shall ensure that the agreed VPAP is fully implemented and that adequate resources are allocated for this purpose in a timely manner. In particular, the Beneficiary shall ensure (a) equal participation of vulnerable people in the reconstruction planning; (b) recovery of livelihood and economic activities for vulnerable. particularly the disabled and those who have lost their support networks; (c) equal access of vulnerable groups to infrastructure activities in relation to planning, construction (when possible), as users and in maintenance (when possible); (d) equal compensations for vulnerable people for land acquisition under the Project; and (e) equal wages for vulnerable groups workers in reconstruction and rehabilitation activities.

Financing Agreement, Schedule 6, paragraph 19

Complied. The vulnerable people action plan (VPAP) was implemented. A vulnerability assessment was undertaken to target vulnerable people. A special compensation package for livelihood support was provided for 6 months to the most vulnerable families. School management committees were formed with the participation of women. They were consulted on school plans and designs. The contract agreements included clauses ensuring equal access and wages for vulnerable groups in infrastructure construction. The design of health and education facilities included dedicated spaces, access, services, and sanitation facilities for vulnerable people. Wherever

48 Appendix 6

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land was acquired or there was any temporary impact due to construction activity, vulnerable people were compensated at par with all others or better. Details are provided in Appendix 10

The Beneficiary acknowledges that consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any activities relating to the Project. To support these efforts, relevant provisions of ADB’s Anticorruption Policy (1998) are included in the Loan and Grant Regulations and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of EAs, IAs and all contractors, suppliers, consultants and other service providers as they relate to the Project.

Financing Agreement, Schedule 6, paragraph 20

Complied. Records were provided to ADB as and when requested.

The Beneficiary through ERRA shall publicly disclose on the website for the Project information on how the funds are being used for the intended beneficiaries following applicable procedures. Likewise, national and provincial/ AJK newspapers in Urdu, Pushtoo and English will carry such details on a regular basis, at least once a month. Similarly, TV and radio broadcasts will be made in these language broadcasts at national and provincial/AJK levels giving these same details.

Financing Agreement, Schedule 6, paragraph 21

Complied.

The Beneficiary shall ensure that MOF manages the Consolidated Fund, as a non-Iapsable account, and puts in place the related fiduciary arrangements to ensure transparency in funds flow, financial management, accounting, internal control processes, procurement, periodic financial reporting, monitoring and internal and external audits. The CGA, AGP and MOF will provide the related guidelines, and ensure that all relevant government statutory provisions and prudential regulations are followed. Disbursement of the Project funds will follow existing accounting and audit procedures.

Financing Agreement, Schedule 6, paragraph 22

Complied. The financial management manual was cleared by the controller general of accounts (CGA), accountant general of Pakistan (AGP), and the Ministry of Finance (MOF), and approved by ADB.

The Beneficiary shall ensure that the fund flow arrangement described in the RRP, is observed. The Beneficiary shall also ensure that adequate budgetary allocations of required counterpart funds are made available and released in a timely manner to AJK, NWFP, PESCO and

Financing Agreement, Schedule 6, paragraph 23

Partially complied. Fund flow arrangements were followed, and ADB funds were made available to all EAs and IAs in timely manner. The counterpart funds did not replace the

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Reference in Financing Agreement Status of Compliance

IESCO in accordance with detailed arrangements stipulated in the RRP. Such counterpart funds provided to AJK and NWFP shall be in addition to, and not in place of AJK's and NWFP’s development budget and shall be applied in a timely manner by AJK and NWFP to agreed Project expenditures. AJK and NWFP shall ensure that adequate budgetary allocations of required counterpart funds are made available and released in a timely manner to respective IAs for each financial year of the Project implementation period; and that each IA applies such counterpart funds to agreed Project expenditures.

regular allocation of the provinces. They were seriously delayed during the last two years of the project (2010–2011) and are still outstanding counterpart fund liabilities in some contracts.

ERRA shall provide ADB with quarterly financial and physical progress reports, as well as annually audited financial statements, of the use of donor and ADB funds. The financial reporting and audit requirements will be as developed by CGA and AGP, which will include controls, audit and reporting mechanism that are at least at par with the mechanisms followed under on-going ADB funded projects. The AGP will nominate private chartered accountants, if required, to meet the increased burden and to demonstrate transparency. For the first year, semiannual audits will be conducted and will include a specific audit report on the Project funds, with EAs and IAs

Financing Agreement, Schedule 6, paragraph 24

Partially complied. The quarterly physical and financial progress reports for project components were submitted regularly. Annually audited financial statements of the use of donor and consolidated ADB funds were also submitted regularly, although with some delays. The financial reporting and audit requirements were developed by the CGA and AGP. The requirements included internal controls, audit, and reporting mechanisms that were at par with the mechanisms followed under ongoing ADB-funded projects. The AGP set up a separate unit headed by a director general to audit the accounts of the ERRA and related agencies, using funds allocated for reconstruction. No specific report of the audit of project funds with EAs and IAs was provided, only a consolidated audit report was submitted. This report was based or developed on the implementing agency’s book of accounts, which includes audited expenditures of the ERRA and all of its entities, including the provincial earthquake reconstruction and rehabilitation agency (PERRA), the State Earthquake Reconstruction and

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Rehabilitation Agency (SERRA), and the line agencies implementing the project.

The Beneficiary shall ensure that proper accounting and audit procedures are in place to ensure efficient and economic use of the ADB financing proceeds. Accounts and financial statements in relation to the Project and the subprojects shall be maintained and certified by independent auditors acceptable to ADB. The Beneficiary, EAs and IAs shall allow ADB representatives to carry out spot or random checks on the flow of funds through the imprest accounts. The Beneficiary, EAs and IAs shall allow independent auditors, acceptable to ADB, to undertake performance audits on a random basis to review, among others, implementation of (a) GAP; (b) VPAP; and (c) compliance with ADB’s safeguard policies. The Beneficiary shall also ensure that post completion audit is conducted by the independent auditors, acceptable to ADB soon after the completion of the Project.

Financing Agreement, Schedule 6, paragraph 25

Partially complied. Performance audit was not undertaken; however, the exercise is in process after the completion of the project. The financial audits were conducted regularly but there were slight delays in the submission of audit reprots. A consolidated audit of all IAs and EAs was submitted, with the ERRA as the audited entity. No separate audit reports were submitted by each IA.

ERRA shall carry out the Project with due diligence and efficiency, and in conformity with sound administrative, financial, engineering, environmental and social safeguard practices.

Project Agreement, Section 2.01(a)

Complied.

In the carrying out of the Project and operation of the Project facilities, ERRA shall perform all obligations set forth in the Financing Agreement to the extent that they are applicable to ERRA.

Project Agreement, Section 2.01(b)

Complied.

ERRA shall ensure that each IA identifies, develops, submits for approval and implements subprojects in accordance with the provisions of the Financing Agreement and this Project Agreement.

Project Agreement, Section 2.01(c)

Complied.

ERRA shall make available, promptly as needed, the funds, facilities, services equipment, land and other resources which are required, in addition to the proceeds of the Loan and the Grant, for the carrying out of the Project.

Project Agreement, Section 2.02

Complied.

In the carrying out of the Project, ERRA shall employ and shall cause each EA and IA to employ competent and qualified consultants and contractors, acceptable to ADB, to an extent and upon terms and conditions satisfactory to ADB.

Project Agreement, Section 2.03(a)

Complied.

Except as ADB may otherwise agree, all goods and services to be financed out of the proceeds of the Loan and the Grant shall be procured in accordance with the provisions of Schedule 4

Project Agreement, Section 2.03(b)

Complied.

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and Schedule 5 to the Financing Agreement. ADB may refuse to finance a contract where goods or services have not been procured under procedures substantially in accordance with those agreed between the Beneficiary and ADB or where the terms and conditions of the contract are not satisfactory to ADB.

ERRA shall ensure that each EA and IA shall carry out the Project in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to ADB. ERRA shall furnish, or cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

Project Agreement, Section 2.04

Complied.

ERRA shall take out and maintain with responsible insurers, or make other arrangements satisfactory to ADB for, insurance of the Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice.

Project Agreement, Section 2.05(a)

Not complied. No insurance cover was provided.

Without limiting the generality of the foregoing, ERRA undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan or the Grant against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.

Project Agreement, Section 2.05(b)

Complied. The cost, insurance, and freight (CIF) value of the imported goods was financed.

ERRA shall maintain, or cause each EA and IA to maintain, records and accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan or the Grant, to disclose the use thereof in the Project, to record the progress of the Project and to reflect, in accordance with consistently maintained sound accounting principles, its operations and financial condition.

Project Agreement, Section 2.06

Complied.

ADB and ERRA shall cooperate fully to ensure that the purposes of the Loan and the Grant will be accomplished.

Project Agreement, Section 2.7(a)

Complied.

ERRA shall promptly inform ADB of any condition which interferes with, or threatens to interfere with, the progress of the Project, the performance of its obligations under this Project Agreement, or the accomplishment of the purposes of the Loan and the Grant.

Project Agreement, Section 2.07(b)

Complied.

ADB and ERRA shall from time to time, at the Project Complied.

52 Appendix 6

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Reference in Financing Agreement Status of Compliance

request of either party, exchange views through their representatives with regard to any matters relating to the Project, ERRA and the Loan and the Grant.

Agreement, Section 2.07(c)

ERRA shall furnish to ADB all such reports and information as ADB shall reasonably request concerning (i) the Loan and the Grant and the expenditure of the proceeds thereof; (ii) the goods and services and other items of expenditure financed out of such proceeds; (iii) the Project; (iv) the administration, operations and financial condition of ERRA; and (v) any other matters relating to the purposes of the Loan and the Grant.

Project Agreement, Section 2.08(a)

Complied.

Without limiting the generality of the foregoing, ERRA shall ensure that each EA and IA furnish to ERRA for delivery to ADB quarterly reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and with such a period as ADB shall reasonably request, and shall indicate, among other things, progress made and problems encountered dur4ing the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.

Project Agreement, Section 2.08(b)

Complied. Progress reports were submitted regularly.

Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as ADB may agree for this purpose, ERRA shall ensure that each EA and IA shall prepare and furnish to ERRA delivery to ADB a report, in such form and in such detail as ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by ERRA of its obligations under this Project Agreement and the accomplishment of the purposes of the Loan and Grant.

Project Agreement, Section 2.08(c)

Not complied. The consolidated completion report has not yet been submitted to ADB 14 months after the project ended.

ERRA acknowledges that consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any activities relating to the Project. All contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of ERRA, the EA, IAs and all contractors, suppliers, consultants and other service providers as they relate to the Project.

Project Agreement, Section 2.08(d)

Complied. Specific provisions were made in the contracts specifying the right of ADB to audit and examine the records.

ERAA shall ensure that the EA and each IA shall (i) Maintain separate accounts for the Project

Project Partially complied. The EA and IAs maintained separate

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Reference in Financing Agreement Status of Compliance

and each subproject, and for the Project's overall operations, including separate accounts for the Loan and the Grant; (ii) have such accounts and related financial statements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; and (iii) furnish to ADB, promptly after their preparation but in any event not later than 4 months after the close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan and the Grant proceeds and compliance with the financial covenants of the Financing Agreement as well as on the use of the procedures for imprest account/statement of expenditures), all in the English language. ERRA shall ensure that the EA and each IA shall furnish to ADB such further information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

Agreement, paragraph

2.09(a)

accounts for the project, including separate accounts for the loan and the grants. The ERRA’s separate accounts and related financial statements were audited annually, in accordance with appropriate auditing standards consistently applied by independent auditors whose qualifications and experience were acceptable to ADB. The submission of audit reports to ADB was delayed and in many cases submitted more than 4 months after the end of the fiscal year. The auditors provided a generic opinion on the use of the loan and grant funds but no specific opinion on the use of the ADB loan and grant proceeds, compliance with the financial covenants, or the use of the procedures for imprest account/statement of expenditures.

ERRA shall enable ADB, upon ADB's request, to discuss the EA's and lA's financial statements and its financial affairs from time to time with the auditors appointed by ERRA pursuant to Section 2.09(a) hereabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of ERRA unless ERRA shall otherwise agree.

Project

Agreement,

paragraph 2.09(b)

Complied. A separate audit was conducted by a third party appointed by the EU to conduct an audit of Grant 0037 and the education component of the project managed by ADB. The borrower provided all the information requested for the audit.

ERRA shall enable ADB’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan or the Grant all relevant plants, sites, works, properties and equipment of each EA and IA, and any relevant records and documents.

Project Agreement,

Section 2.10

Complied.

ERRA shall, promptly as required, take all action within its powers to maintain its corporate existence, to carry on its operations, and to acquire, maintain and renew all rights, properties, powers, privileges and franchises which are necessary in the carrying out of the Project or in the conduct of its business,

Project Agreement, Section 2.11(a)

Complied.

ERRA shall at all times conduct its business in accordance with sound administrative, financial, environmental and social safeguard practices,

Project Agreement, Section 2.11(b)

Complied.

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Reference in Financing Agreement Status of Compliance

and under the supervision of competent and experienced management and personnel.

ERRA shall at all times operate and maintain its equipment and other property, and from time to time, promptly as needed, make all necessary repairs and renewals thereof, all in accordance with sound administrative, financial, engineering, environmental, social safeguards, and maintenance and operational practices.

Project Agreement, Section 2.11(c)

Complied.

Except as ADB may otherwise agree, ERRA shall not sell, lease or otherwise dispose of any of its assets which shall be required for the efficient carrying on of its operations or the disposal of which may prejudice its ability to perform satisfactorily any of its obligations under this Project Agreement.

Project Agreement, Section 2.12

Complied.

Except as ADB may otherwise agree, ERRA shall apply the proceeds of the Loan and the Grant to the financing of expenditures on the Project in accordance with the provisions of the Financing Agreement and this Project Agreement, and shall ensure that all goods and services financed out of such proceeds are use exclusively in the carrying out of the Project.

Project Agreement, Section 2.13

Complied.

AJK shall carry out the Project with due diligence and efficiency, and in conformity with sound administrative, financial, engineering, environmental and social safeguard practices.

Project Agreement, Section 2.01(a)

Complied.

In the carrying out of the Project and operation of the Project facilities, AJK shall perform all obligations set forth in the Financing Agreement to the extent that they are applicable to AJK, and all obligations set forth in Schedule 6 to the Financing Agreement and Schedule to this Project Agreement.

Project Agreement, Section 2.01(b)

Complied.

AJK shall ensure that each IA identifies, develops, submits for approval and implements subprojects in accordance with the provisions of the Financing Agreement and this Project Agreement.

Project Agreement, Section 2.01(c)

Complied.

AJK shall make available, promptly as needed, the funds, facilities, services equipment, land and other resources which are required, in addition to the proceeds of the Loan and the Grant, for the carrying out of the Project.

Project Agreement, Section 2.02

Complied.

In the carrying out of the Project, AJK shall employ and shall cause each EA and IA to employ competent and qualified consultants and contractors, acceptable to ADB, to an extent and upon terms and conditions satisfactory to ADB.

Project Agreement, Section 2.03(a)

Complied. Eight consultancy packages were awarded.

Except as ADB may otherwise agree, all goods and services to be financed out of the proceeds

Project Agreement,

Complied.

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of the Loan and the Grant shall be procured in accordance with the provisions of Schedule 4 and Schedule 5 to the Financing Agreement. ADB may refuse to finance a contract where goods or services have not been procured under procedures substantially in accordance with those agreed between the Beneficiary and ADB or where the terms and conditions of the contract are not satisfactory to ADB.

Section 2.03(b)

AJK shall ensure that each EA and IA shall carry out the Project in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to ADB. AJK shall furnish, or cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

Project Agreement, Section 2.04

Complied.

AJK shall take out and maintain with responsible insurers, or make other arrangements satisfactory to ADB for, insurance of the Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice.

Project Agreement, Section 2.05(a)

Not complied.

Without limiting the generality of the foregoing, AJK undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan or the Grant against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.

Project Agreement, Section 2.05(b)

Complied.

AJK shall maintain, or cause each EA and IA to maintain, records and accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan or the Grant, to disclose the use thereof in the Project, to record the progress of the Project and to reflect, in accordance with consistently maintained sound accounting principles, its operations and financial condition.

Project Agreement, Section 2.06

Complied.

ADB and AJK shall cooperate fully to ensure that the purposes of the Loan and the Grant will be accomplished.

Project Agreement, Section 2.7(a)

Complied.

AJK shall promptly inform ADB of any condition which interferes with, or threatens to interfere with, the progress of the Project, the performance of its obligations under this Project Agreement, or the accomplishment of the

Project Agreement, Section 2.07(b)

Complied. Following the devastating floods of 2010, a joint damage needs assessment was carried out by ADB and AJK.

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purposes of the Loan and the Grant.

ADB and AJK shall from time to time, at the request of either party, exchange views through their representatives with regard to any matters relating to the Project, AJK and the Loan and the Grant.

Project Agreement, Section 2.07(c)

Complied.

AJK shall furnish to ADB all such reports and information as ADB shall reasonably request concerning (i) the Loan and the Grant and the expenditure of the proceeds thereof; (ii) the goods and services and other items of expenditure financed out of such proceeds; (iii) the Project; (iv) the administration, operations and financial condition of AJK; and (v) any other matters relating to the purposes of the Loan and the Grant.

Project Agreement, Section 2.08(a)

Complied.

Without limiting the generality of the foregoing, AJK shall ensure that each EA and IA furnish to ERRA for delivery to ADB quarterly reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and with such a period as ADB shall reasonably request, and shall indicate, among other things, progress made and problems encountered dur4ing the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.

Project Agreement, Section 2.08(b)

Complied. Monthly progress reports were submitted.

Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as ADB may agree for this purpose, AJK shall ensure that each EA and IA shall prepare and furnish to ERRA delivery to ADB a report, in such form and in such detail as ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by AJK of its obligations under this Project Agreement and the accomplishment of the purposes of the Loan and Grant.

Project Agreement, Section 2.08(c)

In process. The consolidated completion report has not yet been submitted to ADB 14 months after the project ended.

AJK acknowledges that consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any activities relating to the Project. All contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA, IAs and all contractors, suppliers, consultants and other service providers as they relate to the Project.

Project Agreement, Section 2.08(d)

Complied.

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AJK shall ensure that the EA and each IA shall (i) Maintain separate accounts for the Project and each subproject, and for the Project's overall operations, including separate accounts for the Loan and the Grant; (ii) have such accounts and related financial statements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; and (iii) furnish to ADB, promptly after their preparation but in any event not later than 4 months after the close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan and the Grant proceeds and compliance with the financial covenants of the Financing Agreement as well as on the use of the procedures for imprest account/statement of expenditures), all in the English language. AJK shall ensure that the EA and each IA shall furnish to ADB such further information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

Project Agreement,

paragraph

2.09(a)

Partially complied. The EA and IAs maintained separate accounts for the project, including separate accounts for the loan and the grants. The ERRA’s separate accounts and related financial statements were audited annually, in accordance with appropriate auditing standards consistently applied by independent auditors whose qualifications and experience were acceptable to ADB. The submission of the audit reports to ADB was delayed and in many cases they were submitted more than 4 months after the end of the fiscal year. The auditors provided a generic opinion on the use of the loan and grant funds but no specific opinion on the use of the ADB loan and grant proceeds, compliance with the financial covenants, or the use of the procedures for imprest account/statement of expenditures.

AJK shall enable ADB, upon ADB's request, to discuss the EA's and lA's financial statements and its financial affairs from time to time with the auditors appointed by AJK pursuant to Section 2.09(a) hereabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of AJK unless AJK shall otherwise agree.

Project Agreement,

paragraph

2.09(b)

Complied. A third party appointed by the EU conducted the audit of Grant 0037 and the education component of the project managed by ADB. The borrower provided all the information requested for the audit.

AJK shall enable ADB’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan or the Grant all relevant plants, sites, works, properties and equipment of each EA and IA, and any relevant records and documents.

Project

Agreement, Section 2.10

Complied.

AJK shall, promptly as required, take all action within its powers to maintain its corporate existence, to carry on its operations, and to acquire, maintain and renew all rights, properties, powers, privileges and franchises which are necessary in the carrying out of the Project or in the conduct of its business,

Project Agreement, Section 2.11(a)

Complied.

AJK shall at all times conduct its business in Project Complied.

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accordance with sound administrative, financial, environmental and social safeguard practices, and under the supervision of competent and experienced management and personnel.

Agreement, Section 2.11(b)

AJK shall at all times operate and maintain its equipment and other property, and from time to time, promptly as needed, make all necessary repairs and renewals thereof, all in accordance with sound administrative, financial, engineering, environmental, social safeguards, and maintenance and operational practices.

Project Agreement, Section 2.11(c)

Complied.

Except as ADB may otherwise agree, AJK shall not sell, lease or otherwise dispose of any of its assets which shall be required for the efficient carrying on of its operations or the disposal of which may prejudice its ability to perform satisfactorily any of its obligations under this Project Agreement.

Project Agreement, Section 2.12

Complied.

Except as ADB may otherwise agree, AJK shall apply the proceeds of the Loan and the Grant to the financing of expenditures on the Project in accordance with the provisions of the Financing Agreement and this Project Agreement, and shall ensure that all goods and services financed out of such proceeds are used exclusively in the carrying out of the Project.

Project Agreement, Section 2.13

Complied.

In addition to the undertakings set forth in Schedule 6 to the Financing Agreement, AJK shall ensure that the EA and IAs perform each of its undertakings under this Schedule

Schedule to Project Agreement, Paragraph 1

Complied.

AJK shall ensure that all the equipment can be operated soon after procurement and training, all vacant posts in the tehsil and district hospitals under the Health Sector Subcomponent are filled immediately after the Project activities start in those hospitals, and paramedical staff are provided opportunities to work in the remote areas.

Schedule to Project Agreement, Paragraph 2

Partially complied. Only 40% of the staff positions (specialists, doctors, and paramedical) were filled at the district headquarters hospital and the two tehsil headquarter hospitals.

AJK shall ensure that for the equipment to be procured under the Health Sector Subcomponent, operators and technicians are assigned, or post created and filled at the time of placing the order for that equipment.

Schedule to Project Agreement, Paragraph 3

Complied.

AJK shall ensure that all positions required to meet the staffing requirement of trained teacher-student ratio at middle levels, are in place before the start of any subproject in accordance with the AJK’s existing rules on teacher-student ratio.

Schedule to Project Agreement, Paragraph 4

Complied. A teacher-student ratio of 1-40 was maintained in all but five schools.

AJK shall ensure that the recurring and operational budget for all schools to be reconstructed under the Project shall be provided by the AJK from its annual recurring

Schedule to Project Agreement, Paragraph 5

Complied.

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budget.

NWFP shall carry out the Project with due diligence and efficiency, and in conformity with sound administrative, financial, engineering, environmental and social safeguard practices.

Project Agreement, Section 2.01(a)

Complied.

In the carrying out of the Project and operation of the Project facilities, NWFP shall perform all obligations set forth in the Financing Agreement to the extent that they are applicable to AJK, and all obligations set forth in Schedule 6 to the Financing Agreement and Schedule to this Project Agreement.

Project Agreement, Section 2.01(b)

Complied.

NWFP shall ensure that each IA identifies, develops, submits for approval and implements subprojects in accordance with the provisions of the Financing Agreement and this Project Agreement.

Project Agreement, Section 2.01(c)

Complied.

NWFP shall make available, promptly as needed, the funds, facilities, services equipment, land and other resources which are required, in addition to the proceeds of the Loan and the Grant, for the carrying out of the Project.

Project Agreement, Section 2.02

Complied.

In the carrying out of the Project, NWFP shall employ and shall cause each EA and IA to employ competent and qualified consultants and contractors, acceptable to ADB, to an extent and upon terms and conditions satisfactory to ADB.

Project Agreement, Section 2.03(a)

Complied. Four consultancy packages were awarded.

Except as ADB may otherwise agree, all goods and services to be financed out of the proceeds of the Loan and the Grant shall be procured in accordance with the provisions of Schedule 4 and Schedule 5 to the Financing Agreement. ADB may refuse to finance a contract where goods or services have not been procured under procedures substantially in accordance with those agreed between the Beneficiary and ADB or where the terms and conditions of the contract are not satisfactory to ADB.

Project Agreement, Section 2.03(b)

Complied.

NWFP shall ensure that each EA and IA shall carry out the Project in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to ADB. NWFP shall furnish, or cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

Project Agreement, Section 2.04

Complied.

NWFP shall take out and maintain with responsible insurers, or make other arrangements satisfactory to ADB for, insurance of the Project facilities to such extent and against

Project Agreement, Section 2.05(a)

Not complied. No insurance cover was provided.

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such risks and in such amounts as shall be consistent with sound practice.

Without limiting the generality of the foregoing, NWFP undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan or the Grant against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.

Project Agreement, Section 2.05(b)

Complied. The CIF were financed from the grant.

NWFP shall maintain, or cause each EA and IA to maintain, records and accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan or the Grant, to disclose the use thereof in the Project, to record the progress of the Project and to reflect, in accordance with consistently maintained sound accounting principles, its operations and financial condition.

Project Agreement, Section 2.06

Complied.

ADB and NWFP shall cooperate fully to ensure that the purposes of the Loan and the Grant will be accomplished.

Project Agreement, Section 2.7(a)

Complied.

NWFP shall promptly inform ADB of any condition which interferes with, or threatens to interfere with, the progress of the Project, the performance of its obligations under this Project Agreement, or the accomplishment of the purposes of the Loan and the Grant.

Project Agreement, Section 2.07(b)

Complied. The non-performing contract for the Shinkiari-Nawazabad road was terminated and re-awarded with ADB’s consent.

ADB and NWFP shall from time to time, at the request of either party, exchange views through their representatives with regard to any matters relating to the Project, NWFP and the Loan and the Grant.

Project Agreement, Section 2.07(c)

Complied.

NWFP shall furnish to ADB all such reports and information as ADB shall reasonably request concerning (i) the Loan and the Grant and the expenditure of the proceeds thereof; (ii) the goods and services and other items of expenditure financed out of such proceeds; (iii) the Project; (iv) the administration, operations and financial condition of NWFP; and (v) any other matters relating to the purposes of the Loan and the Grant.

Project Agreement, Section 2.08(a)

Complied.

Without limiting the generality of the foregoing, NWFP shall ensure that each EA and IA furnish to ERRA for delivery to ADB quarterly reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and with such a period as ADB shall

Project Agreement, Section 2.08(b)

Complied. Reports were submitted regularly.

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reasonably request, and shall indicate, among other things, progress made and problems encountered dur4ing the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.

Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as ADB may agree for this purpose, NWFP shall ensure that each EA and IA shall prepare and furnish to ERRA delivery to ADB a report, in such form and in such detail as ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by NWFP of its obligations under this Project Agreement and the accomplishment of the purposes of the Loan and Grant.

Project Agreement, Section 2.08(c)

Complied. The report was submitted to the ERRA in November 2011.

NWFP acknowledges that consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any activities relating to the Project. All contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA, IAs and all contractors, suppliers, consultants and other service providers as they relate to the Project.

Project Agreement, Section 2.08(d)

Complied.

NWFP shall ensure that the EA and each IA shall (i) Maintain separate accounts for the Project and each subproject, and for the Project's overall operations, including separate accounts for the Loan and the Grant; (ii) have such accounts and related financial statements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; and (iii) furnish to ADB, promptly after their preparation but in any event not later than 4 months after the close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan and the Grant proceeds and compliance with the financial covenants of the Financing Agreement as well as on the use of the procedures for imprest account/statement of expenditures), all

Project

Agreement, paragraph

2.09(a)

Partially complied. The EA and IAs maintained separate accounts for the project, including separate accounts for the loan and the grants. The ERRA’s separate accounts and related financial statements were audited annually, in accordance with appropriate auditing standards consistently applied by independent auditors whose qualifications and experience were acceptable to ADB. The submission of the audit reports to ADB was delayed and in many cases they were submitted more than 4 months after the end of the fiscal year. The auditors provided a generic opinion on the use of the loan and grant funds but no specific opinion on the use of

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in the English language. NWFP shall ensure that the EA and each IA shall furnish to ADB such further information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

the ADB loan and grant proceeds, compliance with the financial covenants, or the use of the procedures for imprest account/statement of expenditures.

NWFP shall enable ADB, upon ADB's request, to discuss the EA's and lA's financial statements and its financial affairs from time to time with the auditors appointed by NWFP pursuant to Section 2.09(a) hereabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of NWFP unless NWFP shall otherwise agree.

Project

Agreement, paragraph

2.09(b)

Complied. A separate audit of Grant 0037 and the education component of the project managed by ADB was conducted by a third party appointed by the EU. The borrower provided all the information requested for the audit.

NWFP shall enable ADB’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan or the Grant all relevant plants, sites, works, properties and equipment of each EA and IA, and any relevant records and documents.

Project

Agreement, Section 2.10

Complied.

NWFP shall, promptly as required, take all action within its powers to maintain its corporate existence, to carry on its operations, and to acquire, maintain and renew all rights, properties, powers, privileges and franchises which are necessary in the carrying out of the Project or in the conduct of its business,

Project Agreement, Section 2.11(a)

Complied.

NWFP shall at all times conduct its business in accordance with sound administrative, financial, environmental and social safeguard practices, and under the supervision of competent and experienced management and personnel.

Project Agreement, Section 2.11(b)

Complied.

Except as ADB may otherwise agree, NWFP shall not sell, lease or otherwise dispose of any of its assets which shall be required for the efficient carrying on of its operations or the disposal of which may prejudice its ability to perform satisfactorily any of its obligations under this Project Agreement.

Project Agreement, Section 2.12

Complied.

Except as ADB may otherwise agree, NWFP shall apply the proceeds of the Loan and the Grant to the financing of expenditures on the Project in accordance with the provisions of the Financing Agreement and this Project Agreement, and shall ensure that all goods and services financed out of such proceeds are used exclusively in the carrying out of the Project.

Project Agreement, Section 2.13

Complied.

PESCO shall carry out the Project with due diligence and efficiency, and in conformity with

Project Agreement,

Complied.

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sound administrative, financial, engineering, environmental and social safeguard practices.

Section 2.01(a)

In the carrying out of the Project and operation of the Project facilities, PESCO shall perform all obligations set forth in the Financing Agreement to the extent that they are applicable to PESCO.

Project Agreement, Section 2.01(b)

Complied.

PESCO shall identify, develop, submit for approval and implement subprojects in accordance with the provisions of the Financing Agreement and this Project Agreement.

Project Agreement, Section 2.01(c)

Complied.

PESCO shall make available, promptly as needed, the funds, facilities, services equipment, land and other resources which are required, in addition to the proceeds of the Loan and the Grant, for the carrying out of the Project.

Project Agreement, Section 2.02

Complied.

In the carrying out of the Project, PESCO shall employ competent and qualified consultants and contractors, acceptable to ADB, to an extent and upon terms and conditions satisfactory to ADB.

Project Agreement, Section 2.03(a)

Complied.

Except as ADB may otherwise agree, all goods and services to be financed out of the proceeds of the Loan and the Grant shall be procured in accordance with the provisions of Schedule 4 and Schedule 5 to the Financing Agreement. ADB may refuse to finance a contract where goods or services have not been procured under procedures substantially in accordance with those agreed between the Beneficiary and ADB or where the terms and conditions of the contract are not satisfactory to ADB.

Project Agreement, Section 2.03(b)

Complied.

PESCO shall carry out the Project in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to ADB. PESCO shall furnish, or cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

Project Agreement, Section 2.04

Complied.

PESCO shall take out and maintain with responsible insurers, or make other arrangements satisfactory to ADB for, insurance of the Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice.

Project Agreement, Section 2.05(a)

Not complied.

Without limiting the generality of the foregoing, PESCO undertakes to insure the goods to be imported for the Project and to be financed out of the proceeds of the Loan or the Grant against hazards incident to the acquisition, transportation and delivery thereof to the place

Project Agreement, Section 2.05(b)

Complied. CIF prices were financed by ADB for all goods that were imported.

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of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.

PESCO shall maintain, or cause to be maintained, records and accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan or the Grant, to disclose the use thereof in the Project, to record the progress of the Project and to reflect, in accordance with consistently maintained sound accounting principles, its operations and financial condition.

Project Agreement, Section 2.06

Complied.

ADB and PESCO shall cooperate fully to ensure that the purposes of the Loan and the Grant will be accomplished.

Project Agreement, Section 2.7(a)

Complied.

PESCO shall promptly inform ADB of any condition which interferes with, or threatens to interfere with, the progress of the Project, the performance of its obligations under this Project Agreement, or the accomplishment of the purposes of the Loan and the Grant.

Project Agreement, Section 2.07(b)

Complied.

ADB and PESCO shall from time to time, at the request of either party, exchange views through their representatives with regard to any matters relating to the Project, PESCO and the Loan and the Grant.

Project Agreement, Section 2.07(c)

Complied.

PESCO shall furnish to ADB all such reports and information as ADB shall reasonably request concerning (i) the Loan and the Grant and the expenditure of the proceeds thereof; (ii) the goods and services and other items of expenditure financed out of such proceeds; (iii) the Project; (iv) the administration, operations and financial condition of PESCO; and (v) any other matters relating to the purposes of the Loan and the Grant.

Project Agreement, Section 2.08(a)

Complied.

Without limiting the generality of the foregoing, PESCO shall furnish to ERRA for delivery to ADB quarterly reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and with such a period as ADB shall reasonably request, and shall indicate, among other things, progress made and problems encountered dur4ing the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.

Project Agreement, Section 2.08(b)

Complied.

Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as ADB may agree

Project Agreement, Section 2.08(c)

Not complied. The consolidated completion report has not yet been submitted to ADB 14

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for this purpose, PESCO shall prepare and furnish to ERRA for delivery to ADB a report, in such form and in such detail as ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by PESCO of its obligations under this Project Agreement and the accomplishment of the purposes of the Loan and Grant.

months after the project ended.

PESCO acknowledges that consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any activities relating to the Project. All contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of PESCO and all contractors, suppliers, consultants and other service providers as they relate to the Project.

Project Agreement, Section 2.08(d)

Complied.

PESCO shall (i) maintain separate accounts for the Project and each subproject, and for the Project's overall operations, including separate accounts for the Loan and the Grant; (ii) have such accounts and related financial statements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; and (iii) furnish to ADB, promptly after their preparation but in any event not later than 4 months after the close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan and the Grant proceeds and compliance with the financial covenants of the Financing Agreement as well as on the use of the procedures for imprest account/statement of expenditures), all in the English language. PESCO shall furnish to ADB such further information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

Project Agreement,

paragraph

2.09(a)

Partially complied. The EA and IAs maintained separate accounts for the project, including separate accounts for the loan and the grants. The ERRA’s separate accounts and related financial statements were audited annually, in accordance with appropriate auditing standards consistently applied by independent auditors whose qualifications and experience were acceptable to ADB. The submission of the audit reports to ADB was delayed and in many cases they were submitted more than 4 months after the end of the fiscal year. The auditors provided a generic opinion on the use of the loan and grant funds but provided no specific opinion on the use of the ADB loan and grant proceeds and compliance with the financial covenants or on the use of the procedures for imprest account/statement of expenditures.

PESCO shall enable ADB, upon ADB's request, to discuss PESCO’s financial statements and its financial affairs from time to time with the auditors appointed by PESCO pursuant to Section 2.09(a) hereabove, and shall authorize

Project

Agreement, paragraph

2.09(b)

Complied.

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and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of PESCO unless PESCO shall otherwise agree.

PESCO shall enable ADB’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan or the Grant all relevant plants, sites, works, properties and equipment of each EA and IA, and any relevant records and documents.

Project

Agreement, Section 2.10

Complied.

PESCO shall, promptly as required, take all action within its powers to maintain its corporate existence, to carry on its operations, and to acquire, maintain and renew all rights, properties, powers, privileges and franchises which are necessary in the carrying out of the Project or in the conduct of its business,

Project Agreement, Section 2.11(a)

Complied.

PESCO shall at all times conduct its business in accordance with sound administrative, financial, environmental and social safeguard practices, and under the supervision of competent and experienced management and personnel.

Project Agreement, Section 2.11(b)

Complied.

PESCO shall at all times operate and maintain its equipment and other property, and from time to time, promptly as needed, make all necessary repairs and renewals thereof, all in accordance with sound administrative, financial, engineering, environmental, social safeguards, and maintenance and operational practices.

Project Agreement, Section 2.11(c)

Complied.

Except as ADB may otherwise agree, PESCO shall not sell, lease or otherwise dispose of any of its assets which shall be required for the efficient carrying on of its operations or the disposal of which may prejudice its ability to perform satisfactorily any of its obligations under this Project Agreement.

Project Agreement, Section 2.12

Complied.

Except as ADB may otherwise agree, PESCO shall apply the proceeds of the Loan and the Grant to the financing of expenditures on the Project in accordance with the provisions of the Financing Agreement and this Project Agreement, and shall ensure that all goods and services financed out of such proceeds are used exclusively in the carrying out of the Project.

Project Agreement, Section 2.13

Complied.

Any action required or permitted to be taken, and any documents required or permitted to be executed, under the Project Agreement by or on behalf of PESCO may be taken or executed by its Finance Director or by such other person or persons as he shall so designate in writing

Project Agreement, Section 4.02(a)

Complied.

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notified to ADB.

PESCO shall furnish to ADB sufficient evidence of the authority of each person who will act under paragraph (a) of this Section, together with the authenticated specimen signature of each such person.

Project Agreement, Section 4.02(b)

Complied.

No delay in exercising, or omission to exercise, any right, power or remedy accruing to either party under the Project Agreement upon any default shall impair any such right, power or remedy or be construed to be a waiver thereof or an acquiescence in such default; nor shall the action of such party in respect of any default, or any acquiescence in any default, affect or impair any right, power or remedy of such party in respect of any other or subsequent default.

Project Agreement, Section 4.02(c)

Complied.

IESCO shall carry out the Project with due diligence and efficiency, and in conformity with sound administrative, financial, engineering, environmental and social safeguard practices.

Project Agreement, Section 2.01(a)

Complied.

In the carrying out of the Project and operation of the Project facilities, IESCO shall perform all obligations set forth in the Financing Agreement to the extent that they are applicable to IESCO.

Project Agreement, Section 2.01(b)

Complied.

IESCO shall identify, develop, submit for approval and implement subprojects in accordance with the provisions of the Financing Agreement and this Project Agreement.

Project Agreement, Section 2.01(c)

Complied.

IESCO shall make available, promptly as needed, the funds, facilities, services equipment, land and other resources which are required, in addition to the proceeds of the Loan and the Grant, for the carrying out of the Project.

Project Agreement, Section 2.02

Complied.

In the carrying out of the Project, IESCO shall employ competent and qualified consultants and contractors, acceptable to ADB, to an extent and upon terms and conditions satisfactory to ADB.

Project Agreement, Section 2.03(a)

Complied.

Except as ADB may otherwise agree, all goods and services to be financed out of the proceeds of the Loan and the Grant shall be procured in accordance with the provisions of Schedule 4 and Schedule 5 to the Financing Agreement. ADB may refuse to finance a contract where goods or services have not been procured under procedures substantially in accordance with those agreed between the Beneficiary and ADB or where the terms and conditions of the contract are not satisfactory to ADB.

Project Agreement, Section 2.03(b)

Complied.

IESCO shall carry out the Project in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to ADB. IESCO shall furnish, or

Project Agreement, Section 2.04

Complied.

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cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

IESCO shall take out and maintain with responsible insurers, or make other arrangements satisfactory to ADB for, insurance of the Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice.

Project Agreement, Section 2.05(a)

Not complied.

Without limiting the generality of the foregoing, IESCO undertakes to insure the goods to be imported for the Project and to be financed out of the proceeds of the Loan or the Grant against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.

Project Agreement, Section 2.05(b)

Complied. CIF prices were financed for any goods that were imported.

IESCO shall maintain records and accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan or the Grant, to disclose the use thereof in the Project, to record the progress of the Project and to reflect, in accordance with consistently maintained sound accounting principles, its operations and financial condition.

Project Agreement, Section 2.06

Complied.

ADB and IESCO shall cooperate fully to ensure that the purposes of the Loan and the Grant will be accomplished.

Project Agreement, Section 2.7(a)

Complied.

IESCO shall promptly inform ADB of any condition which interferes with, or threatens to interfere with, the progress of the Project, the performance of its obligations under this Project Agreement, or the accomplishment of the purposes of the Loan and the Grant.

Project Agreement, Section 2.07(b)

Complied.

ADB and IESCO shall from time to time, at the request of either party, exchange views through their representatives with regard to any matters relating to the Project, IESCO and the Loan and the Grant.

Project Agreement, Section 2.07(c)

Complied.

IESCO shall furnish to ADB all such reports and information as ADB shall reasonably request concerning (i) the Loan and the Grant and the expenditure of the proceeds thereof; (ii) the goods and services and other items of expenditure financed out of such proceeds; (iii) the Project; (iv) the administration, operations and financial condition of IESCO; and (v) any

Project Agreement, Section 2.08(a)

Complied.

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other matters relating to the purposes of the Loan and the Grant.

Without limiting the generality of the foregoing, IESCO shall ensure that each EA and IA furnish to ERRA for delivery to ADB quarterly reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and with such a period as ADB shall reasonably request, and shall indicate, among other things, progress made and problems encountered dur4ing the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.

Project Agreement, Section 2.08(b)

Complied.

Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as ADB may agree for this purpose, IESCO shall ensure that each EA and IA shall prepare and furnish to ERRA delivery to ADB a report, in such form and in such detail as ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by IESCO of its obligations under this Project Agreement and the accomplishment of the purposes of the Loan and Grant.

Project Agreement, Section 2.08(c)

Not complied. The consolidated completion report has not yet been submitted to ADB 14 months after the project ended.

IESCO acknowledges that consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any activities relating to the Project. All contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of the IESCO, and all contractors, suppliers, consultants and other service providers as they relate to the Project.

Project Agreement, Section 2.08(d)

Complied.

IESCO shall ensure that the EA and each IA shall (i) Maintain separate accounts for the Project and each subproject, and for the Project's overall operations, including separate accounts for the Loan and the Grant; (ii) have such accounts and related financial statements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; and (iii) furnish to ADB, promptly after their preparation but in any event not later than 4

Project Agreement,

paragraph 2.09(a)

Partially complied. The EA and IAs maintained separate accounts for the project, including separate accounts for the loan and the grants. The ERRA’s separate accounts and related financial statements were audited annually, in accordance with appropriate auditing standards consistently applied by independent auditors whose qualifications and experience were acceptable to ADB. The

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months after the close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan and the Grant proceeds and compliance with the financial covenants of the Financing Agreement as well as on the use of the procedures for imprest account/statement of expenditures), all in the English language. IESCO shall furnish to ADB such further information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

submission of audit reports to ADB was delayed, and in many cases they were submitted more than 4 months after the end of the fiscal year. The auditors provided a generic opinion on the use of the loan and grant funds but no specific opinion on the use of the ADB loan and grant proceeds, compliance with the financial covenants or the use of the procedures for imprest account/statement of expenditures.

IESCO shall enable ADB, upon ADB's request, to discuss the IESCO’s financial statements and its financial affairs from time to time with the auditors appointed by IESCO pursuant to Section 2.09(a) hereabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of IESCO unless IESCO shall otherwise agree.

Project

Agreement,

paragraph 2.09(b)

Complied.

IESCO shall enable ADB’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan or the Grant all relevant plants, sites, works, properties and equipment of IESCO, and any relevant records and documents.

Project Agreement,

Section 2.10

Complied.

IESCO shall, promptly as required, take all action within its powers to maintain its corporate existence, to carry on its operations, and to acquire, maintain and renew all rights, properties, powers, privileges and franchises which are necessary in the carrying out of the Project or in the conduct of its business,

Project Agreement, Section 2.11(a)

Complied.

IESCO shall at all times conduct its business in accordance with sound administrative, financial, environmental and social safeguard practices, and under the supervision of competent and experienced management and personnel.

Project Agreement, Section 2.11(b)

Complied.

IESCO shall at all times operate and maintain its equipment and other property, and from time to time, promptly as needed, make all necessary repairs and renewals thereof, all in accordance with sound administrative, financial, engineering, environmental, social safeguards, and maintenance and operational practices.

Project Agreement, Section 2.11(c)

Complied.

Except as ADB may otherwise agree, IESCO Project Complied.

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shall not sell, lease or otherwise dispose of any of its assets which shall be required for the efficient carrying on of its operations or the disposal of which may prejudice its ability to perform satisfactorily any of its obligations under this Project Agreement.

Agreement, Section 2.12

Except as ADB may otherwise agree, IESCO shall apply the proceeds of the Loan and the Grant to the financing of expenditures on the Project in accordance with the provisions of the Financing Agreement and this Project Agreement, and shall ensure that all goods and services financed out of such proceeds are used exclusively in the carrying out of the Project.

Project Agreement, Section 2.13

Complied.

Any action required or permitted to be taken, and any documents required or permitted to be executed, under the Project Agreement by or on behalf of IESCO may be taken or executed by its Finance Director or by such other person or persons as he shall so designate in writing notified to ADB.

Project Agreement, Section 4.02(a)

Complied.

IESCO shall furnish to ADB sufficient evidence of the authority of each person who will act under paragraph (a) of this Section, together with the authenticated specimen signature of each such person.

Project Agreement, Section 4.02(b)

Complied.

No delay in exercising, or omission to exercise, any right, power or remedy accruing to either party under the Project Agreement upon any default shall impair any such right, power or remedy or be construed to be a waiver thereof or an acquiescence in such default; nor shall the action of such party in respect of any default, or any acquiescence in any default, affect or impair any right, power or remedy of such party in respect of any other or subsequent default.

Project Agreement, Section 4.02(c)

Complied.

ADB = Asian Development Bank, AGP = accountant general of Pakistan, AJK = Azad Jammu and Kashmir, EA = executing agency, CGA = controller general of accounts, DAC = departmental audit committee, DCO = district coordination officer, DDC = district departmental committee, ERRA = Earthquake Rehabilitation and Reconstruction Authority, FHA = Frontier Highway Authority, IA = implementing agency, IESCO = Islamabad Electric Supply Company, KP = Khyber Pakhtunkhwa, MOF = Ministry of Finance, NWFP = North-West Frontier Province, NADRA = National Database Registration Authority, NIC = national identity card, PESCO = Peshawar Electric Supply Company, RA = reconstruction agency, RRP = Report and Recommendation to the President, SC = steering committee, SHYDO = Sarhad Hydropower Development Organization, TV = television, VPAP = vulnerable people action plan

72 Appendix 7

PROCUREMENT ANALYSIS1

Note: Procurement time is the number of days between invitation for bidding and contract signing.

1 The table is based on sample of subprojects from all sectors out of more than 300 contracts awarded under the project

Description IFB Bid Opening EA Approval To ADB ADB Approval Contract Mode

Time

(days) Amount (PRs)

Takia Shaikhan to Cher 11 Dec 2006 26 Dec 2006 26 Dec 2006 28 Dec 2006 4 Jan 2007 18 Jan 2007 NCB 38 29,923,839

Karora Chakesar - I 18 Jan 2007 2 Feb 2007 2 Feb 2007 22 Feb 2007 7 Mar 2007 26 Mar 2007 NCB 67 28,933,394

Shahalia to Mangloor 18 Jan 2007 2 Feb 2007 2 Feb 2007 22 Feb 2007 7 Mar 2007 22 Mar 2007 NCB 63 31,009,257

Bajna Lehrian 28 Mar 2007 12 Apr 2007 12 Apr 2007 21 Apr 2007 1 May 2007 29 May 2007 NCB 62 29,904,400

Kawal Shunga 28 Mar 2007 12 Apr 2007 12 Apr 2007 21 Apr 2007 1 May 2007 29 May 2007 NCB 62 32,214,700

Khaki Parhina Lassan nawab 28 Mar 2007 12 Apr 2007 12 Apr 2007 21 Apr 2007 1 May 2007 17 Jun 2007 NCB 81 30,693,400

Dalola Hadora Bandi 4 May 2007 19 May 2007 28 May 2007 22 Jun 2007 18 Jul 2007 4 Aug 2007 NCB 92 13,743,120

Kuza Banda Chhatar Plain, I 17 Apr 2008 2 May 2008 7 May 2008 7 May 2008 14 May 2008 29 May 2008 NCB 42 173,000,520

2 Bridges - Mansehra 25 Jan 2008 9 Feb 2008 20 Feb 2008 20 Feb 2008 14 May 2008 29 May 2008 NCB 125 107,691,558

Kuza Banda Chhatar Plain, II 17 Apr 2008 2 May 2008 7 May 2008 7 May 2008 14 May 2008 29 May 2008 NCB 42 213,845,406

Shinkiari Nawazabad 2 Mar 2008 17 Mar 2008 24 Mar 2008 24 Mar 2008 14 Apr 2008 30 May 2008 NCB 89 233,699,064

Narori Nehar, Pkg 6 21 May 2008 5 Jun 2008 26 Jun 2008 26 Jun 2008 30 Jun 2008 15 Aug 2008 NCB 86 314,274,043

Narori Nehar, Pkg 5 21 May 2008 5 Jun 2008 17 Jul 2008 17 Jul 2008 1 Aug 2008 7 Aug 2008 NCB 78 277,360,990

Rehara-Rawlakot, pkg 7 21 May 2008 5 Jun 2008 17 Jul 2008 17 Jul 2008 1 Aug 2008 15 Aug 2008 NCB 86 290,388,497

Bagh Arja, pkg 3 11 Jun 2008 26 Jun 2008 23 Jul 2008 23 Jul 2008 1 Aug 2008 6 Aug 2008 NCB 56 301,601,086

Arja Dhirkot, ICB-3 10 May 2008 9 Jun 2008 1 Aug 2008 1 Aug 2008 30 Sep 2008 22 Oct 2008 ICB 165 549,587,048

Muzaffarabad Athmuqam 11 Aug 2008 10 Sep 2008 22 Sep 2008 22 Sep 2008 7 Oct 2008 27 Nov 2008 ICB 108 2,054,594,718

Kandia Valley Kalam 23 Jun 2008 23 Jul 2008 29 Sep 2008 29 Sep 2008 28 Nov 2008 15 Dec 2008 ICB 175 590,000,000

Alpuri Besham, I 22 Mar 2009 6 Apr 2009 7 May 2009 7 May 2009 12 Aug 2009 10 Oct 2009 NCB 202 353,114,786

Alpuri Besham, II 22 Mar 2009 6 Apr 2009 7 May 2009 7 May 2009 12 Aug 2009 10 Oct 2009 NCB 202 320,608,457

Alpuri Besham, IV 22 Mar 2009 6 Apr 2009 7 May 2009 7 May 2009 12 Aug 2009 10 Oct 2009 NCB 202 296,914,934

Alpuri Besham, III 22 Mar 2009 6 Apr 2009 7 May 2009 7 May 2009 12 Aug 2009 30 Oct 2009 NCB 222 332,520,334

Procurement Dates Procurement

Appendix 8 73

ECONOMIC ANALYSIS

A. General 1. No economic or financial analysis was carried out for the project at the design stage as it was an emergency assistance loan and intended only to restore or reconstruct destroyed assets to pre-earthquake or better standards. A sample economic evaluation of the transport component was carried out at completion, as it was part of the selection criteria for the transport sector subproject. The sample included six major roads in AJK and KP, representing about 50% of the cost of the transport component at completion, about 30% of the entire road network in terms of length of roads restored, and 70% of the length of major roads rehabilitated under the project.

1 The methodology was to collect sample traffic count

data and analyze the traffic growth rate to calculate the benefits. The benefits of the projects were primarily the reduction in road user costs achieved through reduced vehicle operating costs and travel time, which is in line with the methodology used at the subproject selection stage. In the analysis, the actual project costs and implementation schedule (with time and cost over-runs) and maintenance cost were used. The ―with- and without-project‖ comparison formed the basis for computing the economic internal rate of return (EIRR). B. Traffic Analysis 2. At the subproject selection stage in 2007, 24-hour mid-block classified counts were used so that the most representative estimate of traffic composition and travel pattern of the study area could be obtained. In August 2012, four sites were used to recollect the same information. Based on the data obtained, the traffic growth rate per year is computed to be 6.59%. It was the lowest on Azad Pattan to Rawalakot Road in AJK, at 3.6%. As 2007 was the second year after earthquake, the higher traffic count on this road due to the increased activities of reconstruction and rehabilitation might have set a higher baseline comparator. By contrast, there was a marked increase in traffic of 10.9% on Attar Sheesha Garhi Habibullah Road in KP. This might be the result of traffic going to and from AJK, Garhi Habibullah, and Boi diverting to this road, which offers a shorter distance and improved road condition, including its geometry, which was unfavorable for heavily loaded vehicles before the project. 3. The sample data collected for six roads shows that the car, jeep, and wagon traffic increased on average by about 4.3% and heavy truck traffic increased by 5.3%. These categories constitute about 85% of the traffic volume.

2 The minibus or bus and light to medium truck traffic increased sharply, by about

17%. Overall, the traffic rates generally remained around the 4–6% figure used at appraisal. For the computation of future traffic, an increase of 6% per year was applied in the evaluation of six sample roads. C. Costs and Benefits 4. Actual annual investment and maintenance costs for the subprojects were used in the economic reevaluation. The actual completion cost of the sample road subprojects was greater than the capital cost estimated at the design stage because of delays in procurement, increases in prices of construction materials, implementation delays, and scope changes in response to the impact of the 2010 flood on these works. For maintenance, the standard national norms of routine and periodic maintenance, and repaving was used in the analysis. The financial cost for capital and maintenance works was converted into economic costs using a standard conversion factor of 0.85 in the project area. 5. The main sources of economic benefits ware the savings in vehicle operation cost (VOC) and savings in travel time costs. The change in VOC was calculated through the change in road roughness condition and improvements in speed for various classes of traffic. Depending on the type of terrain, speed, and road geometrics, the VOC savings in were estimated at PRs1.11–3.00 per vehicle-kilometer

1 The sample roads measure 211 kilometers out of 301 km of major roads and 492 km of completed link roads.

2 Volume and type of traffic considered in economic evaluation (excluding traffic like motorcycles, scooters, and

rickshaws).

74 Appendix 8

for cars, PRs3.09–8.1 for wagons, PRs6.23–11.10 for buses, and PRs3.06–4.46 for trucks. Average speeds for car was improved from 25–40 km per hour without the project to 45–60 km per hour with the project. Similarly, speeds for passenger buses improved from 20–30 km per hour to 35–40 per hour. The passengers’ travel time cost savings were recalculated for different types of passenger vehicles. The passenger time cost was derived from the gross domestic product per capita of the country in 2009 and was estimated to increase by 3–5% each year to reflect income increases over time.

D. Economic Evaluation 6. Based on the above analysis of economic costs and benefits, a combined EIRR was recalculated at 14.7% for these subprojects, which was on average 5% lower than the EIRR estimated at the design stage of these subprojects. The lower EIRRs were mainly due to higher unit construction costs and delays in benefits. However, all of the recalculated EIRRs are greater than a discounted rate of 12%.

3 The

project investment is thus economically viable. The detailed EIRR evaluations of the sample subprojects are provided in Table 8.1. At the design stage, the EIRRs for the six roads were between 14.8% and 25%, which has reduced to 14.7% on average.

Table 8.1 Economic Evaluation of Project (PRs million)

Year

Cost Benefit

Net Benefit Capital Maintenance Total VOC and Time Cost

2008 458 0 458 0 (458)

2009 757 0 757 0 (757)

2010 1,642 0 1,642 263 (1,379)

2011 2,056 0 2,056 462 (1,594)

2012 0 48 48 607 559

2013 0 48 48 644 596

2014 0 48 48 682 634

2015 0 48 48 723 675

2016 0 48 48 767 719

2017 0 48 48 813 765

2018 0 48 48 861 814

2019 0 48 48 913 865

2020 0 48 48 968 920

2021 1,347 0 1,347 1,026 (321)

2022 449 0 449 1,088 639

2023 0 48 48 1,153 1,105

2024 0 48 48 1,222 1,174

2025 0 48 48 1,295 1,247

2026 0 48 48 1,373 1,325

2027 0 48 48 1,455 1,407

2028 0 48 48 1,543 1,495

2029 0 48 48 1,635 1,587

2030 0 48 48 1,733 1,685

2031 (491) 0 (491) 1,837 2,329

Economic Net Present Value (ENPV) 757 Economic Internal Rate of Return (EIRR) 14.7% Discount Rate 12%

3 In the case of Azad Pattan Guin Nullah Rawalakot Road, the EIRR is 9% because of the high unit cost of

construction, major delays in construction, and less traffic than projected at the design stage (less benefits). The traffic data have more impact on the EIRR calculation. The traffic data were collected in the Islamic month of Ramadan (fasting), and the travel trips may not fairly represent the rest of the months or days.

Appendix 8 75

E. Sensitivity Test 7. The EIRRs were subjected to a sensitivity analysis to test the impacts of increase in maintenance cost and reduction in projected benefits. The sensitivity analysis results show that the subprojects continue to be economically viable for most scenarios. The EIRR is more sensitive to changes in benefits. A 20% reduction in benefits reduces the EIRR to 11.3% and ENPV to PRs198 million. If a 20% maintenance cost increase is combined with a 20% benefit reduction, the EIRR is reduced to 10.8%.

Table 8.2 Sensitivity Test (PRs million)

Scenarios EIRR ENPV

Base Case 14.7 757 1. Maintenance 10% Higher 14.5 700 2. Maintenance 20% Higher 14.3 644 3. Benefits 10% Lower 13.0 279 4. Benefits 20% Lower 11.3 -198 5. Benefits 10% Higher 16.3 1,234 6. Benefits 20% Higher 17.8 1,712 7. Maintenance 10% Higher and Benefits 10% Lower 12.8 223 8. Maintenance 20% Higher and Benefits 20% Lower 10.8 -311

76 Appendix 9

AZAD JAMMU AND KASHMIR SECONDARY DATA

Table A9.1: Key Development Statistics

Item 2005 2011

Industrial units 968 2,027 Metalled roads 4,760 6,390 Labor employed 12,000 13,000 Unemployment rate (%) 35–50 13 Average per capita income (US$) 500 1,254 Literacy rate (%) 60 64

Table A9.2: Student Enrollment by Level and Gender

Item

2005 2011

Male Female Male Female

Primary 186,791 181,001 138,923 107,768 Middle 62,750 50,219 60,277 44,977 Secondary 26,138 18,343 225,244 169,850

Table A9.3: Power Facilities

Item 2005 2011

Electric connections 375,926 495,710 Villages electrified 1,629 1,670 HT lines (km) 7,371 8,953 LT lines (km) 11,558 16,769 Installed grid capacity 330 647 Per capita electricity delivered (kWh) 330 347 Population served (’000) 2,528 3,616

Table A9.4: Health Statistics

Item 2005 2011

Infant mortality (per 1,000 live births) 56 56 Health Managers 47 54 Specialists 157 232 Medical Officers 389 482 Dental Surgeons 64 68 Nurses 211 349 Lady Health Visitors 203 221 Lady Health Workers 2,384 3,246 Lady Health Workers, Supervisors allocation 82 141 Paramedics 3,031 2,884 Hospital beds 1,780 2,249 RHC beds 312 408 Population per hospital bed 1,921 1,801 Population per doctor 6,264 5,685 Population per dental surgeon 53,445 59,691 Bed occupancy rate (per 1,000 population) 59 64 Primary health care services (%) 58 61

Source: Azad Government of the State of Jammu & Kashmir. 2005. AJK at a Glance. Azad Government of the State of Jammu & Kashmir. 2011. AJK at a Glance.

Appendix 10 77

STATUS OF GENDER AND VULNERABLE PEOPLE ACTION PLANS

Table A10.1: Gender Action Plan

Component Expected risks/issues Target actions Status at Completion

Transport Design Equal participation of women in reconstruction planning

Ensure the participation of both men and women in local communities in the planning, construction, and maintenance of infrastructure.

Complied. Six workshops were held, one at the federal level, two in KP, and three in AJK. In these workshops there was 27% participation by women. Design changes were also influenced through the grievance committees in which women participated. However, recorded data shows that grievance was only expressed on isolated issues directly concerning individuals rather than the community as a whole.

The target action regarding the participation of the women in construction and maintenance did not take into account the local cultural norms of the area. To support local participation in construction activities, 4,086 male, 1,216 female, and 364 mixed village reconstruction committees (VRCs) were formed in KP and AJK. Of 60,325 members, 30% were women who were trained in construction techniques. The tracings were collectively financed by ADB and other donors. Based on the sample analysis of contracts, the participation of local communities in the construction was 54% in AJK and 90% in KP. Women’s participation in construction, however, was culturally unacceptable—except for the construction of their own houses (only 20% of the trained women participated in the construction of their own houses as most felt that even this was not their job). In contracts awarded under the project, no women participated in KP, and less than 1% participated in AJK.

Most roads have been recently reconstructed, so maintenance work has not started yet. Maintenance of completed roads is carried out by the local authorities, employing local labor, but the participation of women is expected to be marginal.

Resettlement Provision of identity cards to women and minors free of charge

Ensure that contractors employ female labor where socially and culturally acceptable.

Encourage contractors to use

Complied. All contracts were labor-intensive because conventional methods of construction were used, for which trained labor was already available in the local area.

In AJK, wherever women were interested in working (less than 1%), secure separate accommodation and sanitary facilities were provided in labor camps. Most women (with few exceptions) who participated in construction were local and did not stay overnight in the camps due to cultural norms.

78 Appendix 10

Component Expected risks/issues Target actions Status at Completion

labor-intensive techniques.

It was culturally unacceptable in KP for women to work as construction labor and no participation by women in construction was reported.

Equal compensation to women for land acquisition under the project’s components.

Ensure wage parity. Complied. Special clauses were included in all the construction contracts to ensure wage parity for women. Women were paid equal compensation for land and for work, compared with men.

Reconstruction and civil works implementation

Recovery of livelihood and economic activity for women, particularly those who have become household heads

Encourage people from affected communities to participate in land clearance and road construction through a cash-for-work scheme.

Complied. In KP and AJK, 4,086 male, 1,216 female, and 364 mixed VRCs were formed. Of the 60,325 members, 30% were women who were trained in construction techniques. Based on sample estimates of contracts, the participation of local communities in the construction process was 54% in AJK and 90% in KP.

Participation of women in reconstruction works

Equal wages for female workers in reconstruction and rehabilitation activities

Ensure that women and female-headed household are awarded equal compensation for land acquisition.

Complied. Women were compensated equally for land compared with men. This was ensured through the resettlement act that protected these rights, and it was monitored during the planning and implementation of the resettlement plans. In a few cases where houses of widows were involved, the project facilitated construction of a new house before relocating the women in the same vicinity.

Personal security

Ensure the creation of a mechanism to ensure property rights to women, even without formal identification, and the issuing of new identification cards free of charge.

Complied. Women were helped to register for and get their entitlements through the free legal aid centers. Women registered 9,468 cases in these centers, and 96% of these cases were resolved.

One-window operations were established for the transfer of land titles. The transfer fees were waived. About 55,000 women were provided with land titles in the housing program, and another 1,316 women were given free land in place of the land they had lost. Women and men were compensated equally for land acquired for the projects, and this was ensured through the resettlement act that protected these rights.

Appendix 10 79

Component Expected risks/issues Target actions Status at Completion

Where female labor is present on construction sites, provide secure and separate sanitary facilities and security for women.

In AJK, wherever women were interested in working (less than 1% were), secure, separate accommodation and sanitary facilities were provided in labor camps. Most women (with few exceptions) who participated in construction were local and did not stay overnight in the camps because of cultural norms.

It was culturally unacceptable in KP for women to work as construction labor, and no participation by women was reported in construction.

Power Design

Equal participation of women in reconstruction planning

Ensure the participation of both men and women in local communities in the planning, construction, and maintenance of infrastructure.

No consultation was held on the power sector plans with communities or women before construction. Many activities in the power sector were retroactive, and others started very early in the project implementation before any meaningful consultation could take place. Some complaints were received during implementation on the design, and the design was revised to include foot bridges for access, boundary protection, and cover slabs to reduce vulnerability and accidents on deep power channels carrying water to hydropower stations for generating electricity.

Because of cultural unacceptability in many parts of the affected area and the highly technical and risky nature of power sector rehabilitation, no participation by women was reported in the construction process either in AJK or KP.

In the existing maintenance divisions (from before the earthquake) staff already undertake this work for power sector agencies. The target related to women participating in maintenance of power sector infrastructure did not take this reality into account and hence was not achievable.

Resettlement

Provision of identity cards to women and minors free of charge

Ensure that contractors employ female labor where socially and culturally acceptable.

Women were helped to register and to get their entitlements through the free legal aid centers, which processed 9,468 cases (36% of the total) for women.

Special clauses were included in all the construction contracts to ensure wage parity for women.

Because of cultural unacceptability in many parts of the affected area and the highly technical and risky nature of power sector rehabilitation, no participation by women was reported in either AJK or KP.

Equal compensation to women for land

Ensure wage parity.

Complied. Special clauses were included in all the construction contracts to ensure wage parity for women.

80 Appendix 10

Component Expected risks/issues Target actions Status at Completion

acquisition under the project’s components

No female workers were reported on construction sites in the power sector.

Reconstruction and civil works implementation

Recovery and civil works implementation

Encourage contractors to use labor-intensive techniques.

Complied. Some contracts, such as those for civil works, were labor-intensive, while others, such as those related to installation of poles, wires, and grid stations, were highly technical and required skilled labor. Both skilled and unskilled labor was available in the local area. In addition, the technical and vocational training authority (TEVTA) conducted skills training in operation and maintenance of electro-mechanical works. As of 2012, more than 7,000 people had been trained.

Recovery of livelihood and economic activities for women, particularly those who have become household heads

Encourage people from affected communities to participate in land clearance and construction through cash-for-work scheme.

Complied. The project financed initial operations of department of industries that facilitated the establishment of the TEVTA in 2007. As of 2012, the TEVTA had trained about 37,700 people in sericulture, computers, construction, surveying, arts and crafts, and electro-mechanical operations, using funds from other donors. Based on sample estimates, the participation of local communities in the construction process was 54% in AJK and 90% in KP.

Participation of women in reconstruction works

Equal wages for female workers in reconstruction and rehabilitation activities

Ensure that women and female-headed households are awarded equal compensation for land acquisition.

Complied. No resettlement was involved in the power sector reconstruction or rehabilitation work. Overall, 35,111 claimants (2,984 of them women) registered for land compensation in the affected areas. Of these, 12,625 applicants (1,316 of them women heads of household) were verified independently by a third party and approved after verification of revenue records. These families were given free land, with land titles transferred in their name.

Personal security Ensure that creation of a mechanism to ensure property rights to women, even without formal identification, and the issuing of new identification cards free of charge.

Complied. One-window operations were established for the transfer of land titles. The transfer fees were waived. About 55,000 women were provided land titles in the housing program, and another 1,316 were given free land in place of the land they had lost.

Dedicated windows were established in the law, judiciary, revenue, and ombudsman offices to address entitlements. In addition, 18 legal aid centers financed by the project were opened to provide free legal aid to earthquake-affected people. Women registered 9,468 cases in these centers related to property, registration, and other issues, and 96% of these cases were resolved.

Appendix 10 81

Component Expected risks/issues Target actions Status at Completion

To improve outreach and reduce any inconvenience to women and the vulnerable population, verification of entitlements and claims was done through mobile units.

Where female labor is present on construction sites, provide secure and separate sanitary facilities and security for women.

Complied. No female workers were reported on construction sites in the power sector.

Social Sector Design

Equal participation of women in reconstruction planning

Ensure that health facilities cater to the special physical and psychological needs of earthquake affected men, women, children, elderly, and disabled.

Complied. The gender action plan (GAP) was implemented. Medical rehabilitation services reached 22,483 beneficiaries, of which 40% were women. All hospitals, RHCs, and BHUs constructed by the project had dedicated waiting areas and toilets, along with wards, operating theaters, outpatient departments, and staff quarters for women. The design included special features to facilitate access for the elderly and disabled with separate spaces and toilets. The facilities included dedicated wards for children and special units for psycho-social, paraplegic, and emergency treatments.

The health facilities reconstructed by the project treated 232,000 patients in 2011, of which 44% were female.

Resettlement

Provision of identity cards to women and minors free of charge

Ensure the participation of both men and women in local communities in the planning, construction, and maintenance of infrastructure.

Complied. School management committees (SMCs) were formed with participation by women (34% of committee members), and they were consulted on school plans and designs.

Six workshops were held with 27% participation by women to discuss project plans (including health plans and designs).

SMCs facilitated the construction process, and the construction plans were coordinated closely with SMCs. The role of SMCs in school management has been formalized in both KP and AJK, and they have been allotted an annual budget for repairing and maintaining schools, apart from monitoring their performance.

Equal compensation to women for land acquisition under the project’s components

Ensure that contractors employ female labor where socially and culturally

Complied. The contract agreements included clauses ensuring equal access and wages for women and men in infrastructure construction.

In total, 4,086 male, 1,216 female, and 364 mixed VRCs were formed in KP and AJK. Of 60,325 members, 30% were women

82 Appendix 10

Component Expected risks/issues Target actions Status at Completion

acceptable. who were trained on construction techniques that were jointly funded by ADB and other donor. The sample estimates of contracts indicate that the participation of local communities in the construction process was 54% in AJK and 90% in KP. Women’s participation in construction, however, was culturally unacceptable—except for the construction of their own houses (only 20% of the trained women participated in the construction of their own houses, as most felt that even this was not their job). In contracts awarded under the project, there was no participation by women in KP, and less than 1% in AJK.

Reconstruction and civil works implementation

Recovery of livelihood and economic activity for women, particularly those who have become household heads.

Ensure wage parity.

Complied. Women and men were paid equal compensation for land and for work, although there was no participation by women in KP and only about 2% in AJK, in the education sector. No record of women participating in the health sector contracts is available.

Participation of women in reconstruction works

Encourage contractors to use labor-intensive techniques.

Complied. The contract packages in the health sector were labor-intensive, using conventional construction techniques for which local labor was available. The education sector projects were pre-engineered and therefore required relatively less labor and higher skill levels.

Equal wages for female workers in reconstruction and rehabilitation activities

Ensure that women and female-headed households are awarded equal compensation for land acquisition.

Complied. Wherever land was acquired or there was any temporary impact due to construction activity, women and men were compensated equally. This was guaranteed in the resettlement act that protected these rights, and it was monitored during the planning and implementation of the resettlement plans.

Personal security Ensure the creation of a mechanism to ensure property rights to women, even without formal identification, and the issuing of new identity cards free of charge.

Complied. One-window operations were established for the transfer of land titles. The transfer fees were waived. About 55,000 women were provided land titles in the housing program, and another 1,316 were given free land in place of the land they had lost.

Dedicated windows were established in the law, judiciary, revenue, and ombudsman offices to address entitlements. In addition, 18 legal aid centers financed by the project were opened to provide free legal aid to earthquake-affected people.

Appendix 10 83

Component Expected risks/issues Target actions Status at Completion

Women registered 9,468 cases in these centers related to property, registration, and other issues, and 96% of these cases were resolved.

To improve outreach and reduce any inconvenience to women and the vulnerable population, verification of entitlements and claims was done through mobile units.

Where female labor is present on construction sites, provide secure and separate sanitary facilities and security for women.

Complied. Where female labor was present on construction sites, security and separate sanitary facilities were provided in labor camps. Female participation in the labor force was negligible (less than 2% in the education sector in AJK only). Most women were locals and did not stay overnight in the camps.

Encourage people from affected communities to participate in land clearance and structure construction through a cash-for-work scheme.

Complied. In all cases, local contractors used local labor to dismantle damaged schools and hospitals, and clear sites. Local communities were involved in the construction works (90% in KP and 54% in AJK). The education sector contractor trained local labor extensively because the locations were remote and skilled labor from outside the area was difficult to retain. This training allowed improvement in the skill levels of the local population and at the same time provided them livelihood opportunities during construction. The rate of participation by local labor (skilled and unskilled) in the education sector was 68% in AJK and 76% in KP.

Provide separate sanitary facilities in schools for female and male staff and students.

Complied. Dedicated sanitation facilities were provided in all 414 schools completed under the project for male and female staff, and the disabled.

Provide suitable quarters for female teachers so that they will be encouraged to move to these areas.

Not complied. No female quarters were built for female teachers because as matter of policy doing so would require building quarters for all teachers, which the local governments could not afford to maintain and finance. There are more than 70,000 teachers in AJK alone. However, as a matter of policy in both AJK and KP. female teachers are posted within commutable distance from their homes,.

84 Appendix 10

Component Expected risks/issues Target actions Status at Completion

Ensure all structures are assessable to the disabled.

Complied. The reconstructed schools have sanitation facilities for boys, girls, the disabled, and teachers. The designs also include rails and ramps for disabled children. Lightning arresters, rounded furniture, boundary walls, heat and sound insulation, water, electricity, sanitary disposal, and child-friendly spaces were provided in almost all schools (on average in more than 364 schools depending on space availability and local conditions) to enhance children’s security, safety, and quality of life.

Ensure all structures meet safety requirements.

Complied. All structures in health and education facilities were built to multi-hazard-resistant standards. Their safety standards are either equal to or higher than the revised building codes in the affected area.

Legal assistance, governance, and institutional building activities of implementation assistance

Provision of identity cards to women and minors free of charge

Support the development of an identification mechanism for issuing identification cards free of charge and defining property rights.

Complied. Dedicated windows were established in the law, judiciary, revenue, and ombudsman offices to address entitlements. In addition, 18 legal aid centers financed by the project were opened to provide free legal aid to earthquake-affected people. Women registered 9,468 cases in these centers related to property, registration, and other issues, and 96% of these cases were resolved.

To improve outreach and reduce inconvenience for women and the vulnerable population, verification of entitlements and claims was done through mobile units.

Recovery of livelihood and economic activity for women, particularly those who have become household heads

Promote livelihood restoration programs, with particular attention to the needs of single women and households headed by women.

Complied. Special arrangements, including a venerability survey, were made to reach out to vulnerable people. Table A10.2 provide the key outcomes. In total, 432,000 vulnerable people (the elderly, the disabled, orphans, women-headed households, and women and girls) were identified through the survey.

A special program provided a livelihood grant for 261,000 families for 6 months and to another 21,000 families for additional 6 months. All 282,000 families were headed by a woman (widow, divorcee, separated, or single), had at least one disabled person, or had five or more children (including orphans).

In total, 12,625 landless families (2,778 of them vulnerable and 1,316 headed by women) were given free land, including the transfer of land titles in the names of the vulnerable people and women at no charge.

Appendix 10 85

Component Expected risks/issues Target actions Status at Completion

In addition, 30% of the members of the social mobilization teams for community outreach were women. In total, 55,201 (16%) of the families whose houses were reconstructed and who received housing subsidies were headed by women.

Access of women and minors to legal status, property rights, and inheritance rights

Ensure that inheritance and property rights are suitable to meet the needs of earthquake-affected people, particularly women and children.

Complied. Dedicated windows were established for registering, providing identity documents, and reconstructing lost revenue records for entitlements. Similarly dedicated windows were established in the judiciary, revenue, law, and ombudsman offices to address issues arising from the earthquake. The information generated on assessments and entitlements was posted on the ERRA and NADRA websites. Grievance issues were addressed through a dedicated window within the ERRA, by provincial reconstruction authorities, and by the additional staff provided to the ombudsman office.

Training and awareness activities were undertaken for judges, district officials, and the public on disaster emergency issues, disputes, and related cases. ADB provided consultants to the law department to improve existing laws and formulate new legislation for calamities, state disaster management authority, and child protection. All legislation related to disasters was compiled, translated into local languages, and posted on the department’s website. A judicial conference financed by the project oriented law practitioners and judges on special issues related to the earthquake-affected population and new legislation. The project also supported the establishment of an institute which trained 500 staff from the revenue department in handling issues related to earthquake entitlement and recovery.

Inalienability of the land for minors, including girls

Promote the development of a guardianship legal framework with provisions to ensure the inalienability of land and other property of a minor, either female or male.

Complied. Mobile units of NADRA were established with male and female staff. Simplified procedures for issuing ID cards were approved and implemented. Registration of deaths, orphans, and injuries was done on site through mobile units, free of charge.

The ERRA hired NGOs to facilitate access to the legal system for orphans and widows. The legal system was strengthened by providing additional dedicated courts and three additional family courts, and enacting special ordinances to facilitate entitlements , registration and rights of orphans and manage custody and guardianship cases (the child protection act). The legal fraternity was oriented on these laws and their application.

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Component Expected risks/issues Target actions Status at Completion

More than 3,000 children were restored to their families.

Access of women to vocational training

Promote the development of new vocational training programs specifically targeted to women as they enter or reenter the labor market.

Complied. Over 200,000 (27%of the persons trained) women participated in skills training partly financed by ADB. In addition, the project financed initial operations of department of industries in AJK that facilitated the establishment of the TEVTA in 2007. As of 2012, about 37,700 people had been trained by the TEVTA in sericulture, computers, construction, surveying, arts and crafts, and mechanical operations, using funds from other donors. Disaggregated data are not available on the percentage of women participating in this training and the number of people gainfully employed after the training.

Access of disabled women to rehabilitation and special training to integrate or reintegrate them into the labor market

Promote the development of rehabilitation and special training programs for disabled women to integrate or reintegrate them into the labor market.

Complied. ADB did not undertake any special program for women with disabilities because many other organizations had already started this work. The ERRA established social welfare complexes, women’s development centers, and projects for the rehabilitation of persons with disabilities (PWDs). These projects were financed by bilateral agencies, the World Bank (Japan Social Development Fund - JSDF), WHO, and some international NGOs. These programs supported the establishment of special centers for rehabilitation and assistance with rehabilitation and independent living for PWDs. More than 5,000 PWDs were referred to these centers for rehabilitation, and about 1,200 people provided skill training appropriate for their health conditions. About 3,000 people were provided with prosthetic devices and wheelchairs, and another 3,000 with orthotic devices. Similarly, community-based rehabilitation workers were trained to help PWDs get reintegrated into their communities.

Equal compensation to women for land acquisition under the project’s components

Promote the development of special support units to help earthquake-affected people.

Complied. In the ERRA, a social protection unit was established with qualified staff and resources to develop the social protection strategy for the vulnerable population affected by the earthquake. The unit planned, coordinated, and designed special initiatives under the strategy and administered the implementation of these projects.

Equal wages for female workers in reconstruction and rehabilitation activities

Ensure the development of a legal framework for an equitable, nondiscriminatory

The existing labor laws and legislation already provide for an equitable, nondiscriminatory labor and wage system.

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Component Expected risks/issues Target actions Status at Completion

labor and wage system.

Source: Project Completion Review mission. Note: Although a serious effort was made to develop the capacity to collect and monitor gender results, with dedicated units established in the ERRA and the provincial reconstruction agencies, there were major gaps in the data collection and analysis. The main reason for incomplete data on gender results is the scale of reconstruction (biggest in the history of the country), absence of dedicated counterpart agencies, and overcrowding by numerous competing activities. As a result, the data collection and compilation task stretched the handling capacity of the dedicated staff hired in the gender units and required the project to mainstream the activity in line with the gender strategy—which could not happen because of the short time frame of the reconstruction activity.

88 Appendix 10

District

Female

Headed

Households

Grand

Total

Male Female Male Female Male Female Male Female

Bagh 17,262 10,545 5,642 5,274 8,696 77 37

22,981

(48%)

24,552

(52%)

47,533

(11%)

Muzaffarabad 25,788 15,179 10,951 9,478 14,149 633 297

37,372

(49)%

39,103

(51%)

76,475

(18%)

Neelum 7,830 4,602 1,949 1,701 2,748 24 5

9,803

(52%)

9,056

(48%)

18,859

(4%)

Poonch 14,222 8,055 3,755 3,923 9,214 78 44

18,055

(46%)

21,236

(54%)

39,291

(9%)

Sudhnoti 3,118 1,632 1,200 1,278 3,293 12 11

4,330

(41%)

6,214

(59%)

10,544

(3%)

68,220 40,013 23,497 21,654 38,100 824 394

92,541

(48%)

100,161

(52%)

192,702

(45%)

38,100

20%

Abbottabad 9,194 5,262 4,945 4,763 11,491 268 222

14,407

(40%)

21,738

(60%)

36,145

(8%)

Battagram 5,776 3,884 4,994 3,975 5,372 1,026 444

11,796

(46%)

13,675

(54%)

25,471

(6%)

Kohistan 9,797 5,541 5,187 3,192 1,593 263 103

15,247

(58%)

10,429

(42%)

25,676

(6%)

Mansehra 23,681 13,150 17,306 15,590 26,649 1,675 740

42,662

(43%)

56,129

(57%)

98,791

(23%)

Shangla 11,305 9,178 9,704 7,923 13,376 1,124 735

22,133

(41%)

31,212

(59%)

53,428

(12%)

59,753 37,015 42,136 35,443 58,481 4,356 2,244

106,245

(44%)

133,183

(56%)

239,428

(55%)

58,481

25%

127,973 77,028 65,633 57,097 96,581 5,180 2,638 198,786 233,344 432,130

62% 38% 53% 47% 66% 34% 44% 56% 100%

96,581

22%

100%

108,233 45,151 1,218 192,702

96,768 77,579 6,600 239,428

Total

Table A10.2: Sex-Disaggregated Data by District and Vulnerability

Totals

56% 23% 1%

205,001 122,730

Persons with

disabilities Orphans

Elderly Without

Care

Total AJK & NWFP

40% 32% 3%

Total NWFP

7,818 432,130

100%

Total AJK

48% 28% 2% 100%

Total

GRAND TOTAL

Appendix 10 89

Table A10.3: Vulnerable People Action Plan

Component Target Actions Status at Completion

1. Transport Ensure the participation of vulnerable people in local communities in the planning, construction, and maintenance of infrastructure.

Partly complied. The VPAP was partially implemented. No special effort was made in the transport sector to involve vulnerable people in the planning process. The six workshops conducted to discuss project plans did not target vulnerable people. However, the issues of accessibility and convenience for vulnerable people—especially the elderly and the disabled—were discussed and included in the project design. These produced changes in the designs of footpaths, curbs, slopes, and bus stops on the roads identified for

reconstruction. In addition, a manual for a barrier‐free built

environment was compiled, and its guidelines have been incorporated in the reconstruction plan for the earthquake-affected

districts. Regarding the participation of vulnerable people in construction and

maintenance, 4,086 male, 1,216 female, and 364 mixed VRCs were formed in KP and AJK. Of the 60,325 members, 30% were women who were trained in construction techniques that were jointly funded by ADB and other donors. Based on the sample analysis of contracts, the rate of participation by local communities in construction was 54% in AJK and 90% in KP. Women’s participation was culturally unacceptable except in the construction of their own houses (only 20% of the trained women participated in the construction of their own houses, as most felt that even this was not their job). In contracts awarded under the transport project, there was no female participation in KP and less than 1% female participation in AJK.

Most roads have been recently reconstructed, so maintenance work has not started yet. As a general practice, maintenance of completed roads is carried out by local authorities, employing local labor.

Provide that contractors employ disabled (when possible) and other vulnerable labor.

A vulnerability assessment was undertaken to target vulnerable people specifically (Table A10.2). A special livelihood compensation package was provided for six months to 261,000 vulnerable families. These included families headed by a woman (widow, divorcee, separated, or single), families with at least one disabled person, and families with five or more children (including orphans).

This compensation was extended for an additional 6 months for 21,000 most vulnerable families. In total, 282,000 vulnerable

90 Appendix 10

Component Target Actions Status at Completion

families benefited from this package.

The contract agreements included clauses encouraging the employment of disabled and vulnerable people. No specific, across-the-board data are available on the number of vulnerable people employed in construction activity. Based on sample data that may not be representative, only six subprojects in all sectors employed PWDs as part of the work force (a total of 14 people). In AJK there was about 1% participation by women in the construction process.

Of the total staff recruited in the ERRA’s community-based rehabilitation program 8% were PWDs, and the government fixed a 2% quota for employment of PWDs in all the public sector institutions.

Ensure wage parity. Complied. The contract agreements included clauses ensuring equal access and wages for vulnerable groups in infrastructure construction. Where PWDs were part of the labor force, their wages were at par with other members of the labor force.

Encourage contractors to use labor-intensive technologies.

Complied. All contracts were labor-intensive because conventional methods of construction were used, for which trained labor was already available in the local area.

Encourage people from affected communities to participate in land clearance and road construction through a cash-for-work scheme.

Complied. In total, 4,086 male, 1,216 female, and 364 mixed VRCs were formed in KP and AJK. Of the 60,325 members, 30% were women who were oriented on construction techniques. Based on sample estimates of contracts, the rate of participation by local communities in the construction process was 54% in AJK and 90% in KP.

Ensure that vulnerable groups are awarded equal compensation of land acquisition.

Complied. Vulnerable people were compensated for land equally with everyone else. This was ensured by the resettlement act, which protected these rights, and was monitored during the planning and implementation of the resettlement plans. In a few cases, where houses of widows were involved, the project facilitated construction of a new house in the same vicinity before relocating the women.

Ensure the creation of a mechanism to ensure property rights to vulnerable people, even without a formal identification. New identification cards shall be issued free of charge.

Complied. The National Registration Authority established mobile units with male and female staff and simplified the registration requirement to provide identity cards free of charge in the affected areas. The revenue department reconstructed lost revenue records and provided these records to all the affected people, including vulnerable populations, free of charge.

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Component Target Actions Status at Completion

Women and vulnerable people were helped to register and to get their entitlements through the free legal aid centers. Women registered 9,468 cases in these centers, and 96% of these cases were resolved.

One-window operation was established for the transfer of land titles. About 55,000 women were provided land titles in the housing program, and another 1,316 women were given free land in place of the land they had lost. Any land acquired for the projects provided compensation to women and vulnerable people that equaled that provided to anyone else; this was ensured through the resettlement act, which protected these rights.

Where disabled labor is present on construction sites, provide disabled-friendly facilities and security for them.

Complied. The design of construction camps included access, services, and sanitation facilities for vulnerable people, if they were part of the labor force. In only six subprojects in all sectors were physically disabled persons reported as part of the work force (a total of 14 people). Data on employment of PWDs are not available for most subprojects.

It is a cultural practice for family members of PWDs to provide for them, and PWDs are discouraged from working in most parts of KP and AJK.

2. Power Ensure the participation of vulnerable people in local communities in the planning, construction and maintenance of infrastructure.

Partly complied. The VPAP was partially implemented. No consultation on the power sector plans was held with communities or vulnerable populations before construction. Many activities in the power sector were retroactive, and others started very early in the project implementation before any meaningful consultation could take place. During implementation, some complaints were received about the design, and the design was revised to include foot bridges for access as well as boundary protection and cover slabs to reduce vulnerability and accidents on deep power channels carrying water to hydropower stations for generating electricity. Because of the highly technical and risky nature of power sector rehabilitation, the participation of disabled people and women was marginal. However, no disaggregated data were reported in the construction process, in either AJK or KP, that would make it possible to identify any participation by these groups.

Existing maintenance divisions undertake this work for power sector agencies. There is a 2% quota for PWDs in the maintenance division.

Provide that contractors employ Complied. The contract agreements included clauses ensuring

92 Appendix 10

Component Target Actions Status at Completion

disabled (when possible) and other vulnerable labor.

equal access and wages for vulnerable groups in infrastructure construction.

Because of the highly technical and risky nature of power sector rehabilitation, the participation of women and PWD was marginal. No disaggregated data were reported in the construction process, in either AJK or KP, that would make it possible to identify any participation from these groups in power sector reconstruction.

Ensure wage parity. Complied. Special clauses were included in all construction contracts to ensure wage parity for vulnerable populations, including women and PWDs.

No participation of PWDs or female workers was reported on the construction sites in the power sector.

Encourage contractors to use labor-intensive technologies.

Complied. Some contracts were labor-intensive (for example, civil works), while others (such as installation of poles, wires, and grid stations) were highly technical and required skilled labor. Both skilled and unskilled labor was available in the local area. In addition, the TEVTA conducted skills training in operations and maintenance of electro-mechanical works. More than 7,000 workers had been trained as of 2012.

Encourage people from affected communities to participate in land clearance and construction of transmission lines, substations and other infrastructure through a cash-for-work scheme.

Complied. The project financed initial operations of the industries departments that facilitated establishment of the TEVTA in 2007. Using funds from other donors, about 37,700 people were trained through TEVTA by 2012, in sericulture, computers, construction, surveying, arts and crafts, and electro-mechanical operations. Based on sample estimates, the participation of local communities in the construction process was 54% in AJK and 90% in KP.

Ensure that vulnerable groups are awarded equal compensation for land acquisition.

Complied. No resettlement was involved in the power sector reconstruction or rehabilitation work. Overall, 35,111 claimants (2,984 of them female) registered for land compensation. Of these, 12,625 (1,316 headed by women) were verified independently by a third party and approved after revenue record verification. These families were given free land with equal compensation, and land titles were transferred in their name.

Ensure the creation of a mechanism to ensure property rights for vulnerable people, even without formal identification. New identification cards shall be issued

Complied. One-window operations were established for the transfer of land titles. The transfer fees were waived. About 55,000 women were provided land titles in the housing program, and another 1,316 women were given free land in place of the land they had lost.

Dedicated windows were established in the law, judiciary, revenue,

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Component Target Actions Status at Completion

free of charge. and ombudsman offices to address entitlements. In addition, 18 legal aid centers financed by the project were opened to provide free legal aid to earthquake-affected people. Women registered 9,468 cases related to property, registration, and other issues in these centers, and 96% of these cases were resolved.

To improve outreach and reduce any inconvenience to women and vulnerable populations, verification of entitlements and claims was done through mobile units.

Where disabled labor is present on construction sites, provide disabled-friendly facilities and security for them.

Complied. No PWDs or female workers were reported on construction sites in the power sector.

3. Social sector Ensure that health facilities cater to the special physical and psychological needs and earthquake-affected men, women, children, elderly, disabled and other vulnerable people.

Complied. The VPAP was implemented. All hospitals, RHCs, and BHUs constructed by the project had dedicated waiting areas, toilets, wards, operating theaters, outpatient departments, and staff quarters for women. The design included special features to facilitate access for the elderly and disabled, with separate spaces and toilets. The facilities included dedicated wards for children and special units for psychosocial, paraplegic, and emergency treatment.

Health facilities provided free services, and special cards were issued to PWDs and the elderly for priority access to the facilities.

The health facilities reconstructed by the project treated 232,000 patients in 2011, of which 44% were women.

Ensure the participation of vulnerable people in local communities in the planning, construction and maintenance of infrastructure.

Complied. A vulnerability assessment was undertaken to target vulnerable people specifically. A special compensation package for livelihood support was provided for 6 months and further extended for 3 months for the most vulnerable people.

School management committees were formed with the participation of women and vulnerable people. They were consulted on school plans and designs. The SMCs also have a defined role in the management and operation of schools. They will now get dedicated funds each year for this purpose. Vulnerable people were encouraged to join such committees during the social mobilization process. In total, 42 widows participated in SMCs.

Provide that contractors employ disabled (when possible) and other vulnerable labor.

Complied. The contract agreements included clauses ensuring equal access and wages for the disabled in infrastructure construction.

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Component Target Actions Status at Completion

In total, 4,086 male, 1,216 female, and 364 mixed VRCs were formed in KP and AJK. Of the 60,325 members, 30% were women who were oriented on construction techniques that were partially funded by ADB. Based on the sample estimates of contracts, the participation of local communities in the construction process was 52% in AJK and 90% in KP. Women’s participation in construction was culturally unacceptable—except for the construction of their own houses (only 20% of the trained women participated in the construction of their own houses as most felt that even this was not their job). In contracts awarded under the project there was no female participation in KP and less than 1% participation in AJK.

In only six subprojects in all sectors were physically disabled persons reported as part of the work force (a total of 14 people). Data on employment of PWDs are not available for most subprojects.

It is cultural practice for family members of PWDs to provide for them, and PWDs are discouraged from working in many parts of KP and AJK.

Ensure wage parity.

Complied. The contract agreements included clauses ensuring equal wages for vulnerable groups involved in infrastructure construction, compared with other labor, although their participation was marginal or in many cases not recorded.

Encourage contractors to use labor-intensive technologies.

Complied. The contract packages in the health sector were labor-intensive, using conventional construction techniques for which local labor was available. The education sector projects used prefabricated elements pre-engineered, requiring relatively less labor and higher skill levels.

Ensure that women and women-headed households are awarded equal compensation of land acquisition.

Complied. Wherever land was acquired or there was any temporary impact from construction activity, women or PWDs were compensated at rates on par with or better than men. This was guaranteed in the resettlement act, which protected these rights, and was monitored during the planning and implementation of the resettlement plans.

Ensure the creation of a mechanism to ensure property rights for vulnerable people, even without formal identification. New

Complied. One-window operations were established for the transfer of land titles. The transfer fees were waived. About 55,000 women were given land titles in the housing program, and another 1,316 women were given free land in place of the land they had lost.

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Component Target Actions Status at Completion

identification cards shall be issued free of charge.

Dedicated windows were established in the law, judiciary, revenue, and ombudsman offices to address entitlements. In addition, 18 legal aid centers financed by the project were opened to provide free legal aid to earthquake-affected people. Women registered 9,468 cases related to property, registration, and other issues in these centers, and 96% of these cases were resolved.

To improve outreach and reduce any inconvenience to women and vulnerable populations, verification of entitlements and claims was done through mobile units.

Where disabled labor is present on construction sites, provide disabled-friendly facilities and security for them.

Complied. Where disabled workers were present on construction sites, separate sanitary facilities were provided in labor camps. The participation of PWDs in the labor force was negligible (14 reported). Most PWDs were local and did not stay overnight in the camps.

Encourage people from affected communities to participate in land clearance and road construction through a cash-for-work scheme.

Complied. In all cases, local contractors used local labor to dismantle damaged schools and hospitals, and clear sites. Local communities were involved in the construction works (90% in KP and 54% in AJK). The education sector contractor trained local workers extensively because the locations were remote and skilled labor from outside the area was difficult to retain. This improved the skill level of the local population and at the same time provided them livelihood opportunities during construction. The rate of local labor participation (skilled and unskilled) in the education sector was 68% in AJK and 76% in KP.

Provide separate sanitary facilities for female and male staff and students and disabled.

Complied. Dedicated sanitation facilities for male and female staff and the disabled were provided in all 414 schools completed under the project.

Ensure all structures are disabled-friendly.

Complied. The reconstructed schools have sanitation facilities for boys, girls, the disabled, and teachers. The designs also include rails and ramps for disabled children. Lightning arresters, rounded furniture, boundary walls, heat and sound insulation, water, electricity, sanitary disposal, and child-friendly spaces were provided in almost all schools (on average, more than 364 schools depending on space availability and local conditions) to enhance children’s security, safety, and quality of life.

Ensure all structures meet safety requirements.

Complied. All structures in health and education were built to multi-hazard-resistant standards. Their safety standards are either equal to or higher than the revised building codes in the affected area.

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Component Target Actions Status at Completion

4. Legal Assistance, Governance and Institutional Building

Support the development of an identification mechanism for issuing of identification cards and definition of property rights. New IDs shall be issued free of charge.

Complied. Mobile NADRA units were established with male and female staff. Simplified procedures for issuing ID cards were approved and implemented.

Dedicated windows were established in the law, judiciary, revenue, and ombudsman offices to address entitlements. In addition, 18 legal aid centers financed by the project were opened to provide free legal aid to earthquake-affected people. Women registered 9,468 cases related to property, registration, and other issues in these centers; 96% of these cases were resolved.

To improve outreach and reduce any inconvenience to women and the vulnerable population, verification of entitlements and claims was done through mobile teams.

Promote livelihood restoration programs, with particular attention to the needs of vulnerable people, particularly those who have lost their support network.

Complied. Special arrangements were made to reach out to vulnerable people, and a dedicated strategy for social protection was developed for the earthquake-affected area. The strategy was implemented by existing mandated institutions, including the social welfare department. To ensure seamless delivery of investments and services, coordination mechanisms were developed at the sector, federal, provincial, and district levels.

Special arrangements, including a vulnerability survey, were made to reach out to vulnerable people. Table A10.2 provides the key outcomes. In total, 432,000 vulnerable people (elderly, disabled, orphaned, women-headed households, and women and girls) were identified through the vulnerability survey.

A special program provided a livelihood grant for 261,000 families for 6 months and for another 21,000 families for an additional 6 months. All 282,000 families were headed by a woman (widow, divorcee, separated or single), had at least one disabled person, or had five or more children (including orphans).

In total,12,625 landless families (2,778 of them vulnerable and 1,316 headed by women) were given free land, including the transfer of land titles in the name of vulnerable people and women at no charge.

In addition, 30% of the members of the social mobilization teams for community outreach were women. In total, 55,201 (16%) of the families in houses that were reconstructed and who received housing subsidies were headed by females.

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Component Target Actions Status at Completion

The ERRA collected data on physical disabilities that showed 741 spinal injuries and 713 amputations.

An ERRA-supported program enrolled 1,176 disabled children in schools for inclusive education, provided 771 PWDs with training and livelihoods. The program established 200 village community-based rehabilitation committees and 45 organizations for disabled people.

Of the total staff recruited in the ERRA’s community-based rehabilitation program 8% were PWDs, and the government fixed a 2% quota for PWD in the public sector employment.

In the livelihood support program (Japan Fund for Poverty Reduction - JFPR) financed by ADB, 4,000 livestock shelters and 5,000 small poultry farms were built, and poultry stock and feed were provided for people over age 65 and for households headed by women, to restore livelihoods.

Ensure that inheritance and property rights are suitable to meet the need of earthquake-affected people, particularly women and children and other vulnerable people.

Complied. Dedicated windows were established for registering, providing identity documents, and reconstructing lost revenue record for entitlements. Similarly, dedicated windows were established in the judiciary, revenue, law, and ombudsman offices to address issues arising from the earthquake. The information generated on assessments and entitlements was posted on the ERRA and NADRA websites. Grievance issues were addressed through a dedicated window within the ERRA and through the additional staff provided to the ombudsman office.

Training and awareness activities were undertaken for judges, district officials, and the public on disaster emergency issues, disputes, and related cases. ADB provided consultants to law departments to improve existing laws and formulate new legislation for calamities, state disaster management authority, and child protection. All legislation related to disasters was compiled, translated into local languages, and posted on the department’s website. A judicial conference financed by the project oriented law practitioners and judges on special issues related to the earthquake-affected population and new legislation. The project also supported the establishment of a training institute which trained 500 staff from the revenue department in handling issues related to earthquake entitlement and recovery.

Promote the development of rehabilitation and special training

Complied. ADB did not undertake any special program for the disabled because many other organizations had already started this

98 Appendix 10

Component Target Actions Status at Completion

programs for disabled to (re-) integrate them in the labor market.

work. The ERRA established social welfare complexes, women’s development centers, and projects for the rehabilitation of PWDs. These projects were financed by bilateral agencies, the World Bank (JSDF), WHO, and some international NGOs. These programs supported the establishment of special centers for rehabilitation as well as assistance with rehabilitation and independent living for PWDs. More than 5,000 PWDs were referred to these centers for rehabilitation, and about 1,200 people received skill training appropriate for their health conditions. About 3,000 people were provided with prosthetic devices and wheelchairs, and another 3,000 with orthotic devices. Similarly, community-based rehabilitation workers were trained to help PWDs get reintegrated into their communities.

Two permanent rehabilitation centers and four resource information centers established for PWDs are still operational.

Promote the development of special support units to help earthquake-affected people.

Complied. A social protection unit was established in the ERRA with qualified staff and resources; it developed the social protection strategy for the vulnerable population affected by the earthquake. The unit planned, coordinated, and designed special initiatives under the strategy and administered the implementation of these projects.

Ensure the development of a legal framework to ensure an equal, nondiscriminatory labor and wage system.

The existing labor laws and legislation already provide for an equitable, nondiscriminatory labor and wage system.