MDTF UPDATE. Khyber Pakhtunkhwa Federally Administered Tribal Areas and Balochistan Multi Donor Trust Fund DECEMBER 2012
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1 MDTF UPDATE Khyber Pakhtunkhwa Federally Administered Tribal Areas and Balochistan Multi Donor Trust Fund DECEMBER 2012
2 DECEMBER HIGHLIGHTS Grant agreement signed for FATA Rural Roads Project; GSP becomes the first-ever project to implement an on-line accounting system in KP and FATA; A total of 85 farmers get wheat seeds and fertilizer in 24 villages in Mohmand Agency under RLCIP; Under ERRP, 71.5% of the Kanju to Sharif Abad road now complete and fully functional; University of Peshawar students trained to conduct beneficiary satisfaction surveys through an intensive two-day session; and Grants of PKR50.4 million 97.31) disbursed under ERKF. Cover Photo CRD, Balochistan Pakistan MDTF September December 2012
3 Overview The first meeting of the Advisory Group of the Khyber Pakhtunkhwa (KP), Federally Administered Tribal Areas (FATA) and Balochistan Multi Donor Trust Fund (MDTF) was held on December 6, The meeting was jointly chaired by Mr. Shahzad Khan Bangash, Secretary Planning and Development Department FATA Secretariat and Ms. Antje Grawe, Counselor for Economic Cooperation and Development, German Embassy. The meeting featured discussions on the draft FATA Local Government Regulation, Strategic Communications under the Post Crisis Needs Assessment (PCNA) and planning for MDTF Round II. The World Bank's (WB) South Asia Region (SAR) Youth Initiative was launched on November 2012 as a pilot activity with the University of Peshawar (UoP). A total of12 students were selected and trained on conducting beneficiary satisfaction surveys and creating human interest stories and photographs. The selected students will conduct this exercise in the Economic Revitalization for KP and FATA and the Emergency Roads Recovery projects. A two day session was conducted at the WB in Islamabad from December 2012 to further orient the students on WB operations and enrich their experience of engaging with the Bank and the MDTF. Through this orientation, the selected students were provided an opportunity to engage directly with the Task Team Leads of MDTF projects and WB experts who briefed them on WB operations, project cycles including procurement and financial management and fiduciary as well as environment and social safeguards. The students had an exclusive session with Rachid Benmessaoud, Country Director WB where they interacted candidly and learnt about the WB mission and approach towards development. Dr. SaniaNishtar, a civil society representative, was the external mentor guiding them further on how to conduct the survey and promoting their interest in development. Pakistan MDTF December 2012
4 MDTF Financed Projects and Status of the Portfolio As of December 31, 2012 the status of the MDTF-financed portfolio was as follows Portfolio Disbursements S.No Project Project Amount US$ (Million) Location Disbursement US$ (Million) December 31, 2012 Disbursement Percentage 1 KP Emergency Roads Recovery Project 8 KP 8 100% 2 Governance Support Project for KP, FATA and Balochistan 8.75 KP/FATA/ Balochistan % 3 Economic Revitalization of KP and FATA Project (ERKF) 20 KP/FATA % 4 FATA Rural Livelihoods and Community Infrastructure Project 12 FATA % 5 FATA Urban Centres Project 7 FATA % 6 Strengthening Health Services in Crisis Affected Areas in KP 25 KP % 7 Balochistan Disaster Management Project 5 Balochistan % 8 Promoting Girls Education in Balochistan 10 Balochistan % Pakistan MDTF December 2012
5 PROJECT PORTFOLIOS FATA Rural Livelihoods and Community Infrastructure Project The FATA Rural Livelihoods and Community Infrastructure Project (RLCIP) is implemented through the Directorate of Projects, FATA Secretariat and aims to improve livelihoods and access to basic service infrastructure in selected Agencies in FATA. Activities under this project are well underway. A total of 85 farmers have been provided wheat seeds and fertilizer in 24 villages of selected Tehsils in Mohmand Agency. KP Emergency Roads Recovery Project Activities under the Emergency Roads Recovery Project (ERRP) are71.5 percent complete in the course of one year. About 9 km (86 percent of the original project length or 67 percent of increased project length) is fully functional. Of the 33 culverts, 24 (71.5 percent) have been completed. And, of the 2 bridges one is almost complete while work on the second bridge will commence shortly. The Project is expected to be completed by March 2013, about 6 months ahead of the originally planned completion schedule. of 491 applications (including approved, rejected and ineligible) have been processed. A total of 212 (168 in KP and 44 in FATA) Small and Medium Enterprises (SMEs) have been selected for matching grants. These include SMEs from textile, marble, furniture, horticulture, light engineering and trading sectors. Compared to disbursements of PKR 6 million (US $ 61,655.45) in July 2012, the Project has disbursed PKR 50.4 million ((US$ 97.31). Of this PKR million (US $ 282,073.68) have been disbursed in KP and PKR 23 million (US $ 236,345.89) in FATA. This support was provided to 109 (77 KP & 32 FATA) SMEs as of December 26, FATA Rural Roads Economic Revitalization in KP and FATA (ERKF) As of December 2012, the Small and Medium Enterprise Development Authority (SMEDA), the Implementation Partner of the Economic Revitalization of KP and FATA Project (ERKF), received 2824 applications (1632 in KP and 1192in FATA). A total The grant agreement for the FATA Rural Roads Project was signed on December 10, The project will finance about 11.5 percent of the US$ 140 million Rural Roads Project of the FATA Secretariat. The Pakistan MDTF December 2012
6 project will target rural roads that are urgently needed to connect communities in Bajaur and Orakzaiagencies tosocial services in urban centers.these roads will also enable the transportation of goods and agricultural products to nearby markets. The total length of rural roads to be constructed is estimated to be 52 km. It is expected to benefit 1.25 million people within the selected agencies of FATA, through improved access to livelihood opportunities and services including health and education. The GSP has also supported the commemoration of the International Anti-corruption Week from December 3-9, The activity was organized by National Accountability Bureau and the Anti-Corruption Establishment in KP. The GSP provided support the media campaign to sensitize and raise awareness of civil society and government departments to play their role in curbing corruption. Governance Support Project In an effort to further enhance transparency and accountability, the Governance Support Programme (GSP) in KP and FATA has successfully adopted an on-line budgeting and accounting system. This has been achieved through the implementation of the National Financial Management Information System under the Project to Improve Financial Reporting and Auditing (PIFRA). This initiative will greatly improve access to information for citizens as all project-related budgeting and accounting activities will be conducted on-line. This landmark achievement makes GSP the first-ever project to institutionalize this system in KP and FATA. Furthermore, in order to ensure effective internal control, GSP has engaged international firms as independent Internal Auditors in KP and FATA. KPMG is the internal auditor for KP while Ernst & Young has been engaged for FATA. Thiswill help evaluate and improve the effectiveness of PCNA projects in terms of risk management, control, and governance processes. Pakistan MDTF December 2012
7 Financial Position of MDTF Reflecting the Status of Contributions and Signing of Agreements The MDTF has received commitments totaling US$ 159 million. Funds of US$ million have been paid into the MDTF account managed by the WB (these are the figures as of November 2012 which will be updated by 15 January 2012). More details on the status of contributions are given in the table below: Donor Pledged Amt (m) Currency US$ Signed Paid In Australia 23.3 AUD Denmark 40.0 DKK European Union 1 EUR Commited USD 159 million Finland 5.6 EUR Received USD million Germany 8.0 EUR Balance USD 21.1 million Italy Netherlands 4.0 EUR USD Sweden USD Turkey USD UK 30.0 GBP USA 2 USD Total Pakistan MDTF December 2012
8 Status of Projects under Multi Donor Trust Fund (MDTF) as of December 30, 2012 S.No Name Project Description Amount US$ (Million) Pc1 Approval Y/N Min of Law Approval Y/N Grant Agreement signed Y/N Implementation Begins / Anticipated 1 KP Roads Project Rehabilitation of 10.5 km of the main portion of the Chakdara Shamozai road 8 Y Y Y August FATA Rural Roads Rural roads to be constructed under the project are estimated at 80 km 16 Y Y Y December FATA Urban Centers Project will fund technical assistance to develop a conceptual framework for FATA Urban Centers and will provide needed infrastructure and equipment to improve service delivery 7 Y Y Y February Promoting Girls Education in Balochistan Support to the education sector to increase attendance of girls at schools in Balochistan 10 Y Y Y September Strengthening Health Services in Crisis -affected Districts of KP Economic Revitalization of KP and FATA FATA Rural Livelihood and Community Infrastructure Project Project aims to improve health services in KP through rationalization and introducing the private sector to manage health centers in 7 districts 16+9 Y Y Y April 2012 Support to small and medium businesses affected by the crisis 20 Y Y Y October 2011 Project will support the establishment of a department and build its capacity to manage and implement demand-driven community-based activities 12 Y Y Y February 2012 ANNEX 1 8 Governance Support project Support Governments of KP, Balochistan and FATA Secretariat to design and implement sectoral reforms 8.75 Y Y Y October Balochistan Disaster Management Build the capacity at the Balochistan PDMA to become bale to reply to disasters in a more efficient way 5 Y Y Y July KP Southern Area Development Program Reduce inequality by providing equal opportunities to the local inhabitants 18 Y Y N January KP Value Chains Project Support value chains for key growth sectors in the crisis-affected areas of KP that were identified in the PCNA. 9 N N N July 2013
9 MDTF in the Media FROM RECOVERY TO SUSTAINABLE DEVELOPMENT Fourth Progress Report October 2012 Relevant News Daily Times Restoring damaged infrastructure :FATA inks $16 million agreement Express Tribune Development opportunities: FATA chief secretary highlights region's... Post Crisis Needs Assessment: World Bank hopes for better progress Pakistan Daily Times FATA inks $16 million agreement with WB Frontier Post Meeting reviews Multi Donor Trust Fund projects The Nation Govt committed to peace, uplift in tribal areas The Nation Business Recorder Govt committed to peace, development in FATA Meeting held to review multi-donor funded projects Business... ANNEX 2 Pakistan Weekly Development opportunities: FATA chief secretary highlights region's...
10 For more information regarding the MDTF, please contact: Robert Bou Jaoude, Program Coordinator Mehreen Saeed, MDTF Communications Focal Point MDTF Secretariat World Bank, Islamabad Level 7, Serena Business Complex, Khayaban-e-Suhrawardy, Sector G-5, Islamabad, Pakistan
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