REVIEW OF THE FOREIGN AIDED PROJECTSPROGRESS REPORT FOR THE MONTH OF DECEMBER, 2008 Name of the Project: Sustainable Livelihoods in Barani Areas Project

(Rs. in million)

Total Cost. Rs. 3516.00 (US$ 58.600 million)

Donor Share Rs. 2460.00 (US$ 41.00 million)Punjab Government Share Rs. 516.00 (US$ 8.600 million)Beneficiaries Share Rs. 540.00 (US$ 9.000 million)

Date of Loan effectiveness 13-04-2005

Terminal date 30-06-2011

Period Elapsed (%age) 58%

Utilization of total cost Rs. 868.588 million(Upto31.12.08)Utilization of loan (Upto31.12.08) Rs. 638.821 million

CURRENT YEAR POSITION :( 2008-09)

(Rs. in million)DONOR LOCAL TOTAL

Allocation 300.00 86.712 386.712Utilization 42.513 19.815 62.328 Percentage 14% 23% 16%

utilization on allocation

OBJECTIVES OF THE PROJECT The overall goal/objective of the Project is Poverty reduction in the rain-fed areas of the Punjab through improved livelihoods opportunities and improved governance. More specific/immediate objectives are:

To improve socioeconomic status of poor population through better natural resources management through improved productive, physical, and social infrastructure identified by the elected (Union Council)UCs members and the civil society;

To reduce poverty of the marginal and poor population through targeted community based initiatives and support to off-farm income generation activities.

To improve the literacy and level of skills through vocational training, especially to the unemployed

especially women.

To strengthen the capacity and capability of Project management, and line agencies to support UCs, civil society, and communities in the development process.

Major Components :

Following are the major components of the project:-a: Union Council Development (UCD) b: Targeted Poverty Alleviation (TPA)c: Literacy through Skills Training (LTST)d: Institutional and Implementation Support.

Physical Progress:

A). Institutional and Implementation Component

1

The ADB mission conducted Mid Term Review (MTR) of SLBAP from November 24, 2008 to December 06, 2008. The mission visited Rawalpindi, Chakwal, Mianwali, Khushab and Bhakkar districts. The mission concluded that overall Project’s performance is satisfactory.

The following major activities were carried out by the PMU-SLBAP during the reporting month;

Reviewed concept papers of various MSIs schemes. Reviewed PC-1s of fisheries and Orchard scheme including six-revised PC-I of Sialkot and Gujrat

districts. Prepared comments on draft MOU prepared by MTR Mission. Prepared report about specifications and unit costs of various project interventions. Prepared structural analysis of SSIs undertaken by RSPs. Prepared list of appropriate interventions. Prepared the revised/improved format for concept paper of MSIs. Finalize structural analysis of MSIs for MTR Mission. Prepared draft of handbook on forestry, mini dam sites. Reviewed the curricula of nine trades, adopted by NRSP for training under OFIG and suggested

improvements. Revised Manual of biogas plant. Checked 11 No estimates of MSIs (Road) of district Jhelum. Prepared design of pipeline and hydraulic statement of gravity water supply. Prepared a paper on methods to conserve solar energy and its utilization. Prepared a PC1 entitled “Community Seed Bank & input supply centre Worked on preparation of PC1 entitled “Command area development of mini dams” Prepared design of Low cost high bamboo (LCHB) Tunnel in the Project areas. Revised detailed design of seed bank building (plan, x section and elevation) Finalized social impact checklist.

B) Union Council Development Component

The Activities/Tasks undertaken/performed by the PQSs and PFs form identification of schemes to verification of schemes in the project districts and their cumulative outputs are attached at Annex-I.

Against the annual targets (2006-09) of 943 concept of MSIs schemes, concept notes of 995 schemes were identified out of which 672 were approved by the PMU. Union Councils have so far approved 713 schemes out of which 586 were sent to the district line agencies for the preparation of PC-1s.The district line agencies has so far prepared 326 PC-Is out of which 264 PC-Is were approved by the DDC. (Attached at Annex-II).

182 MSIs schemes have been started out of which 88 schemes were completed by the end of December, 2008.

It is highlighted that currently maximum numbers of schemes are under implementation in the district Narowal. The total 88 MSIs schemes were completed so far out of which 72 schemes were of the years 2006-07 and 16 schemes for the year 2007-08. The district wise detail of completion of schemes is Bhakkar 18, Gujrat 17, Jhelum 12, Narowal 12, Khushab 10, Mianwali 6, Layyah 5, Sialkot 4, Chakwal 3, and Rawalpindi 1 .

C) Targeted Poverty Alleviation Component

National Rural Support Programme (NRSP)

The cumulative achievements of National Rural Programme upto December, 2008 are given below:- Formed 4,758 (2474 male, 1546 female and 738 mix) community organizations by the end of

reporting month.

Community management skill trainings were given to 6,411 office bearers of COs in 284 events.

Fund management and accounts keeping training were imparted to 3,507 managers of COs in 237 trainings events.

2

NRSP conducted 612 Activist workshops wherein 26,308 activists were imparted training.

Micro Investment Plans for 2800 COs were prepared and 62,945 numbers of loans were disbursed for agriculture inputs, livestock and enterprise development.

NRSP carried out pre-feasibility study of 804 numbers Small-Scale Infrastructure (SSIs) schemes out of which 533 numbers SSIs were completed and 187 SSIs were ongoing.

NRSP carried out one Training Need Assessment for OFIG.

Imparted Training to 192 members of community organizations regarding OFIG.

Punjab Rural Support Programme (PRSP)

The Punjab Rural Programme carried out the following activities upto December, 2008. The Cumulative achievements are as under:-

Formed 1,402 (972 male, 331 female and 99 mix) community organizations by the end of reporting month.

Community management skill trainings were given to 2,722 office bearers of COs in 85 events.

Fund management and accounts keeping training were imparted to 2,291 managers of COs in 83 trainings events.

PRSP conducted 35 Activist workshops wherein 2,863 activists were imparted training.

Micro Investment Plans for 1343 COs were prepared and 4,342 numbers of loans were disbursed for agriculture inputs, livestock and enterprise development.

PRSP carried out feasibility studies of 510 Small-Scale Infrastructure (SSIs) schemes in the Project Area out of which 491 SSIs were approved, 339 SSIs were completed and 149 SSIs were ongoing by the end of reporting month.

D) Literacy Through Skills Training (LTST).

During the month of December, 2008 no activities could be undertaken under LTST components by the PMU-SLBAP. However, the contract with the NGO i. e Adult Basic Education Society (ABES) is yet to be singed.

The Contract of Literacy Thorough Skills Training Component with ABES has been approved principally by the Project Steering Committee with the condition that the contract with ABES will be signed after approval of the PDWP. PDWP in its meeting held on January 05, 2009 granted the approval of recruitment of ABES.

E) Issues and Challenges

Delay in processing of schemes, transfer of funds and contract awards at district level. Regular Monitoring of MSIs/Schemes by the Line agencies. Slow liquidation of advances to executing agencies (Line Departments/COs/CCB) by the district

governments. SLBAP asks for 20% community share (5% upfront cash and 15% in shape of kind or labour)

but in case of CCBs 20% cash is required as per CCB rules. In many Project districts DDC’s meeting were not being convened due to transfer of Officers of

the District Govt;. The Development work of MSIs Schemes was remained suspended due to Change of Govt.

Delay/Non-submission of SOEs against the fund released from PMU–SLBAP for implementation of MSIs by the districts. The PMU-SLBAP was facing liquidity crunch as well as replenishments were stopped due to non- receipt of SOEs from the districts. The PMU-SLBAP vigorously following up the submission of SOEs through DPMs and District Govt.

The delay in signing of contract with ABES, which is hampering all other activities for launching this component.

3