Subject: Project AnalysisTopic of Presentation is:Project preparation and Introduction to PC-1 with Case study

Prepaired by Huma Ilyas Ayesha zulfiqar Zuneira Zameer Rabia Tariq Umber Khalid

Project Cycle:

The project cycle have five phases:

1) Identification

2) Preparation and Formulation

3) Review and Approval

4) Implementation

5) Evaluation

Here we have a basic concern with the phase 2 of the project cycle that is preparation and formulation.

Phase 2: Project preparation and formulation

It has a four steps1)Feasibility study2)Project document formulation3)Establishment of baseline and target data4)Project implementation planning

 

1)Feasibility study

A feasibility study should form the core of the proposal preparation process. Its purpose is to provide stakeholders with the basis for deciding whether or not to proceed with the project and for choosing the most desirable options. The feasibility study must provide answers to the following basic questions:

Is the project technically and scientifically sound, and is the methodology the best among the available alternatives?

Is the project administratively manageable? Is there adequate demand for the project’s

outputs? Is the project financially justifiable and

feasible? Is the project compatible with the customs

and traditions of the beneficiaries? Is the project likely to be sustained beyond

the intervention period?

2)Project document formulation

Project preparation and formulation and project document formulation are simultaneous processes.

Once the feasibility study has taken place and implementation arrangements are agreed upon, the concept proposal (which would have been revised throughout the process) is transformed and expanded into a project document throughout the project preparation and formulation phase.

The project document is a summary of the situation assessment, justification of methodology and strategies for achieving the targeted changes, which come from each step taken through project cycle phases 1 and 2.

3)Establishment of baseline and target data

  Data or information in the subject area of the intended project should be gathered during the project identification process (phase 1) and analyzed to assess the condition or situation of the targeted populations or areas. It is possible that the existing data or information are insufficient or not valid, or that the necessary data or information do not exist at all.

Project implementation planning

Success of project implementation often depends on the quality of project planning before the project begins.

The following P&D project submission checklist is designed to assess the feasibility of projects and the readiness of project managers to undertake them. The checklist is designed as the project managers’ reference guide in planning for effective and efficient project implementation.

(a) Have all relevant P&D Divisions and regional offices been consulted and are they fully familiar with the project document?

(b)Have the roles and responsibilities of the implementing partners, including P&D cooperating agencies or supporting organizations, been clearly established and agreed upon?

(c) Do the implementing partners have administrative, technical and human capacities to undertake the project?

(d) Do the P&D Divisions involved have the technical and human capacities to undertake the project?

(e) Have the priorities and needs of the countries selected for the project been identified and incorporated in the project?

(f) Do the relevant Governments support or endorse the project?

(g) Has a gender-sensitivity analysis been conducted and incorporated in the project document?

(h) Has the linkage to poverty alleviation been analyzed and incorporated in the project document?

(i) Have all key stakeholders been identified and included in the partnership for project management?

(j) Does the project incorporate activities to ensure policy, technical and financial sustainability beyond the project implementation period?

GOVERNMENT OF PAKISTAN PLANNING COMMISSION PC-I Performa(Social Sectors) 

1)Name of the Project

Indicate name of the project.

2) Location

Provide name of District/Province.

Attach a map of the area, clearly indicating the project location.

 

3)Authorities responsible for

Indicate name of the agency responsible for sponsoring, execution, operation and maintenance. For provincial projects, name of the concerned federal ministry be provided.

4. (a) Plan provision

If the project is included in the medium term/five year plan, specify actual allocation.

If not included in the current plan, what warrants its inclusion and how is it now proposed to be accommodated.

If the project is proposed to be financed out of block provision, indicate:

Total block provision Amount already committed Amount proposed for this project Balance available

(b) Provision in the current year PSDP/ADP

5. Project objectives

The objectives of the sector/sub sector as indicated in the medium term/five year plan are reproduced. Indicate objectives of the project and develop a linkage between the proposed project and sectoral objectives.

In case of revised Projects, indicate objectives of the project, if different from original PC-I.

6.Description and justification of project

 

Describe the project and indicate existing facilities in the area and justify the establishment of the Project.

Provide technical parameters and discuss technology aspect of the Project.

Provide details of civil works, equipment, machinery and other physical facilities required for the project.

Indicate governance issues of the sector relevant to the project and strategy to resolve them.

7.Capital cost estimates

○ Indicate date of estimation of Project cost. ○ Basis of determining the capital cost be provided. It

includes market survey, schedule rates, estimation on the basis of previous work done etc.

○ Provide year-wise estimates of Physical activities by main components as per following:

Component-wise, year-wise physical activities

Items Unit Year 1 Year 2 Year 3

A

B

C

8. Annual operating cost

Item-wise annual operating cost for 5 years and sources of financing .

 

9. Demand supply analysis (excluding science & technology, research,

governance & culture, sports & tourism sectors

Existing capacity of services and its supply Projected demand for ten years Capacity of projects being implemented both in the public &

private sector Supply – demand gap Designed capacity & output of the proposed project

 

10. Financial plan

Sources of financing

(a) Equity:

Indicate the amount of equity to be financed from each source Sponsors own resources Federal government  Provincial government  DFI's/banks  General public  Foreign equity (indicate partner agency) NGO’s/beneficiaries Others

 

b) Debt

Indicate the local & foreign debt, interest rate, and grace period and repayment period for each loan separately. The loan repayment schedule is also annexed.

c) Grants along with sources

  d) Weighted cost of capital

11. (a) Project benefits and analysis

 

Financial: Income to the project along with assumptions.

Social: Quantify benefit to the target group

Environmental: Environmental impact assessment negative/ positive.

 

(b) Project analysis

  Quantifiable output of the project Unit cost analysis Employment generation (direct and indirect) Impact of delays on project cost and viability

12. a) Implementation of the project

  Indicate starting and completion date of the project Item-wise/year-wise implementation schedule in line chart co- related

with the phasing of physical activities.

Result Based Monitoring (RBM) Indicators- Indicate Result Based Monitoring (RBM) framework

indicators in quantifiable terms in the following table.

Sr. Input Output Baseline indicators

Targets after Completion of Project

Targeted Impact

1

2

3

4

5

.

.

13.Management structure and manpower requirements

Administrative arrangements for implementation of the project. Manpower requirements during execution and operation of the project be

provided by skills/profession. Job description, qualification, experience, age and salary of each job be

provided.

 

14. Additional projects/decisions required

  Indicate additional projects/decisions required to optimize the investment

being undertaken on the project.

15.Certificate

  The name, designation and phone # of the officer responsible for ,

preparing and checking be provided. It may also be confirmed that PC-I has been prepared as per instructions for the preparation of PC-I for social sector projects.

The PC-I along with certificate must be signed by the Principal Accounting Officer to ensure its ownership.

PC-1 FORM

 

GOVERNMENT OF PAKISTAN

PLANNING COMMISSION

 

SOUTHERN PUNJAB POVERTY ALLEVIATION PROJECT

(SPPAP) – IFAD ASSISTED

Total Cost: RS.4126.062 million (US$ 49.120 million)

 

1. Name of the Project:

 

Southern Punjab Poverty Alleviation Project (SPPAP)

 

2. Location:

 

The Project is implemented in the following four districts of Southern Punjab: Bahawalnagar Bahawalpur, Muzaffargarh Rajanpur

Map

3. Authority responsible for:

i. Sponsoring

Planning and Development Department (P&D), Government of Punjab. International Fund for Agricultural Development (IFAD)

ii. Execution Planning & Development Department, Government of Punjab. Project Management Unit (PMU) at Bahawalpur in association with Agriculture and Livestock

Departments and the in partnership with the following private sector partners and community organizations:-

Social Mobilization Partners (SMPs) through existing Community Organizations District Management Units (DMUs) Vocational Training Organizations (VTOs) Entrepreneur Training Organizations (ETOs) through Entrepreneur Activists and Local Business

Development Service Associations Consulting Firm for publicity, applications, contracting and reporting Farmer Field School Partners (FFSPs)

 

iii. Operation and Maintenance: Community Organizations

iv. Concerned Federal Ministry: Economic Affairs Division v. Time Required for Completion 60 months January 2011 to December 2015

4. (a) Plan Provision

If the project is included in the medium term/five year plan, specify

actual allocation. Project is included in the medium term plan

If not included in the current plan, what warrants its inclusion and how is it now proposed to be accommodated.

The project supports the Government policy for poverty reduction and enhancement of livelihoods for the poorest of the poor. SPAPP will be funded by the International Fund for Agricultural Development (IFAD). The Government will Co-finance in cash and kind costs.

If the project is proposed to be financed out of block provision, indicate: Not Applicable

Provision in the current year Nil PSDP/ADP

5) Project objectives and its relationships with sector objectives:

The project is aligned with the overall economic development and poverty alleviation strategy of the Government of Pakistan/Punjab.

The project is also consistent with the IFAD Strategic Framework and the strategy outlined in the Pakistan COSOP of 2009.

The Punjab Government’s medium term development framework lays down the development activities to be carried out in the province in various sectors of the provincial economy.

The design of the Southern Punjab Poverty Alleviation Project (SPPAP) has emerged out of series of field visits of project area and discussions with Departments of Planning & Development, Agriculture, Livestock and Finance in Punjab so as, to align the project with the current priorities and policies of the Provincial Government.

The Project will focus on Government priorities in the area of agriculture, livestock, vocational and enterprise development in keeping with the poverty alleviation targets of the Government

Project Goals and Objectives SPPAP is designed to assist the Government of Punjab

achieve its economic growth and poverty alleviation objectives. The overall goal of the project is to contribute to the reduction of poverty in Southern Punjab. The project objective is to increase incomes of 80,000 poor households by enhancing the employment potential of the people and increasing agriculture productivity and production.

The principal outcomes expected from the project include: enhanced capacity for sustainable livelihoods through asset

transfers enhanced capacity for employment and productive self-

employment enhanced access to basic services, increased productivity and

production of agriculture produce and strengthened local capacity for agriculture and livestock service provision.

6. Description, Justification and Technical Parameters of Project

Description Rural Poverty in the Punjab: According to the Punjab Economic Survey, 20 per cent

of the provincial population is poor, with a higher concentration of poor in the rural areas (44%). This means that roughly 18 million people are living below the poverty line and vulnerability is high.

However, poverty is likely to rise further in 2009-2010 as a result of unprecedented food inflation, transmission of international energy prices to domestic consumers and post flood situation. Furthermore, changes in patterns of land tenure in the Punjab have, over time, also contributed to poverty.

Floods 2010 Of 12 numbers of districts of Punjab declared as calamities affected by Punjab

Disaster Management Authority (PDMA), two districts i.e. Muzaffargarh and Rajanpur lie in the project area. As per notification of Relief and Crises Management Department, Board of Revenue, Govt. of the Punjab a total of 988 villages/revenue estates have been affected by floods of 2010 and declared as calamities affected areas. The notification shows that hill torrent/floods2010 have affected 70%-100% area of the affected villages of Rajanpur District

The floods of 2010 have further increased in the poverty of these districts. The assessments of damage to the property and life in these flood affected districts are being made. In general the people are in desperate need of support for re-construction of their houses, replenishment of livestock and agricultural inputs for sustaining their livelihood.

Justification

Gender Dimensions of Rural Poverty:

In Pakistan, gender inequalities persist, directly undermining the country’s socio-economic progress. Pakistan ranks low on international indicators of gender equity. On UNDP’s Gender Development Index (GDI) Pakistan ranks 124th out of 155 countries and on the Gender Empowerment Measure (GEM) it ranks 99th out of 109 countries.

Women in rural Pakistan have been described as being the most socially excluded. Rural women are the most deprived in terms of access to basic social services, livelihood opportunities and vulnerability to violence.

For example, 65 per cent of the women in urban areas are literate in contrast to 30 per cent in the rural areas of Pakistan. Similarly, the overall incidence of home deliveries in Pakistan is significantly higher in rural areas (78 per cent) compared to urban areas (68 per cent).

Gender disparities are also more pronounced in rural areas: men’s literacy rate (60 per cent) is twice as high as that of women (30 per cent).

Women in rural areas have heavy workload and carry out a wide range of tasks in agriculture, livestock rearing and off-farm activities. Despite their hard work women do not get the commensurate returns from crop or livestock activities because of the exploitative and gender biased arrangements which determine their share in crop and livestock production

The southern districts of Punjab rank the lowest in terms of female literacy. Large gender disparities persist across the urban and rural sectors, and tend to be higher in rural areas. There also remains a wide gap in employment opportunities.

Limited access to income generating opportunities, together with a range of life cycle risks related to malnutrition, domestic violence, poor health status, low literacy, lack of assets, early marriages, repeated child births, disempowerment, over-work has left women considerably more vulnerable to poverty than men, resulting in increasing feminization of poverty.

The area is also known for crimes against women such as honor killings.

Another issue which needs to be highlighted due to its impact on a very large number of agricultural laborers, especially women and girls, is exposure to harmful pesticides used in cotton fields. An estimated 2.6 million women and girls are employed as cotton pickers on the cotton farms during the harvesting season between September and December.

Causes of Rural Poverty

A major reason for rural poverty is the highly unequal distribution of assets particularly land and access to water, livestock, productive assets, low level of access to health services, lack of education, low level of skills, limited access to finance, employment opportunities and lack of voice in decisions that directly affect the poor.

Technical Parameter

The Target Group, Including Gender Issues: The target group of the Southern Punjab Poverty Alleviation Project

will be landless laborers, smallholder farmers, women headed households with a special focus on women from the target group households. In each of these categories, the target households will be those who obtain a score of equal to or less than 23 based on the National Poverty Score Card Survey that will be administered prior to the implementation of project activities in the selected districts. It is expected that around 80,000 households will be targeted under the new Southern Punjab Poverty Alleviation Project.

Casual Laborers: Casual labor in the target districts is characterized by irregular

employment, seasonal variation in availability of work, low wages and landlessness. In the target districts, both men and women work mostly as unskilled workers in agriculture, manufacturing, construction industry and the service sector and as domestic help. They live either on rent, occupied state land or on land that belongs to landlords. Men tend to work mostly as agricultural labour and as off-farm labour in construction and in factories, earning daily wages on average of US$ 2 to US$ 3 per day.

Gender Targeting and Mainstreaming Women are expected to be the major beneficiary of the

Southern Punjab Poverty Alleviation Project. Special measures are being undertaken to ensure the inclusion of women in the Project. The first of these measures is to ensure that a majority of the members of the community organizations which are formed are women. Even in villages where men are included in project activities the main interaction of SPPAP will be through women’s organizations.

During the field visits it was found that going through Women’s Organizations is a very empowering opportunity for women who then assume a leadership role in conducting the discussion and in decision-making.

Where the CO is mixed or includes only men, women seldom get an opportunity to participate while the men invariably participate and sit on the fringes in a gathering of Women’s Community Organization.

7.Components of the Project

Components SPPAP has three main components. These

include (i) Livelihoods Enhancement (ii) Agriculture and Livestock Development and (iii) Project Management. Components 1 and 2 are mutually supportive and reinforcing: Component 1 aims primarily at creating a solid, and enabling basis on which the target groups could embark on livelihoods enhancement initiatives for both farm and non-farm activities.

Capital Cost Estimates

RS: 4,126.0613 Million

(US $ 49.120 Million)

Components Project Cost Summary

A. Livelihoods Enhancement (PKR) (US$) % Total Cost

Asset Creation 600,874,706 7,153,270 15

Vocational and Entrepreneurial Training 633,978,175 7,547,359 15

Community Physical Infrastructure 734,540,063 8,744,525 18

Subtotal 1,969,392,944 23,445,154 48

B. Agriculture and Livestock Development

Productivity Enhancement Initiatives 261,924,284 3,118,146 6

Technology Transfer 196,443,126 2,338,609 5

Training Service Providers 161,868,001 1,927,000 4

Subtotal 620,235,411 7,383,755 15

C. Project Management 512,659,870 6,103,094 12

Total Baseline Costs 3,102,288,225 36,932,003 12

Physical Contingencies 51,792,567 616,578 1

Price Contingencies 971,980,503 11,571,196 24

Total Project Costs 4,126,061,295 49,119,777 100

9. Annual Operation & Maintenance Costs after the project is completed

  No post completion costs to the

Government will be incurred under the project. The community physical infrastructure shall be operated and maintained by the COs.

10. Demand and Supply Analysis People of the four southern districts are generally engaged in

agriculture related work or are doing low skilled manual work. It is because of this that the poverty rate in these four districts is high. Also bulk of the population is illiterate which leaves them with little opportunity to improve their skill level.

Livestock is one of the primary sources of income for the people in the rural areas and mostly is the only capital asset available. However, because the poor cannot afford to maintain a supply of feed and fodder for their animals therefore their animals are generally weak. The quality of animals which they rear is also poor thus fetching them less sale price.

The project districts generally have inadequate basic infrastructure and suffer from a lack of safe drinking water, water for irrigation, employment opportunities, health and education facilities, access to markets, access to appropriate technology and to agriculture and veterinary extension services

11. Financial Plan & Mode of Financing IFAD will finance 81.8% of the Project costs

(PkR 3,374 million, equivalent to USD 40.2 million) through a loan to GoPb on highly concessionary terms. The Government will Co-finance 11.5% (PkR 473 million or USD 5.6 million) in-kind and cash costs. The beneficiaries will contribute 6.8% of Project Costs (PkR 279 million equivalent to USD 3.3 million) through in-kind contribution

Financing Plan by Components and Source (PkR Million)

IFADCOST %

GoPbCost %

Beneficiary ContributionCost %

Total Cost %

A. Livelihoods EnhancementAsset Creation /aVocational &

Entrepreneurial Training /bCommunity Physical

Infrastructure /cSubtotalB. Agriculture and Livestock Development

Productivity Enhancement Initiatives /d

Technology TransferTraining Service

Providers

SubtotalC. Project Management /fTotal PROJECT COSTS

775 96.2670 78.8 888 90.02,333 88.3 207 155 124 486 555 3,374

31 3.8112 13.8

0 -143 5.4

103 29.478 29.414418.3

218 26.7113 16.9473 11.5

- -69 8.1  99 10.0167 6.3

  41 11.831 11.839 19.7

112 13.7- -279 6.8

806 19.5851 20.6  986 23.92,643 64.1

  351 8.5264 6.42004.9

815 19.8668 16.24,126 100.0

12. Project Benefits and Analysis SPPAP benefits will include asset creation, vocational and

enterprise skills, access to basic services, investments in productivity enhancement of existing land and livestock assets, improvement in farming practices and knowledge and increased access to farming services for the small holder farming household.

All of these activities are expected to increase the incomes of the targeted households through increase in productivity of human and natural resources. The Project is investing in activities which are expected to enhance the incomes of 80,000 households by anywhere from 20% to 80%.

Community Infrastructures: Employment generation- an expanded capacity of smallholder farmers to produce for the market and obtain an acceptable return for their produce will lead to increased employment opportunities for the households in the lowest poverty bands which depend on casual labour as an important source of livelihood, In addition, opportunities for off-farm employment generation will be created through an integrated package of investments in skills, equipment and business training.

Economic Rate of Return: The economic rate of return has been estimated over a 20 year period at 17% and was found very robust with a sensitivity analysis showing a drop to 15% if benefits are delayed by 2 years, and to 15% if costs increase by 10% or benefits reduced by 10%. It should however be emphasized that this is the minimum and has been based only on increase in incomes at household level because of the estimation difficulties for other benefits.

Environmental Appraisal including Climate Change and Disaster Risk Reduction

The project falls in Environmental Category B. No negative cumulative effects of project interventions are envisaged. The small nature projects are community based and any probable cumulative effect will be taken care of during design and implementation process.

Employment Employment generation is expected from the

Project in two ways, firstly, through implementation of the Project where recruitment will be done for PMU at Bahawalpur and District Management Units at Bahawalnagar and Rajanpur and secondly, the men and women belonging to 80,000 household units will have better opportunities of getting employed or for being self-employed because of improved skill sets. Livelihood enhancement, Agriculture and Livestock and dairy interventions will also create a number of employment activities in the project area.

13.Implementation Schedule

Financial Phasing The Project is expected to commence by

January 2011 and will be completed in five years. Financial phasing for each of the project component has been shown in following Table at the end.

Starting and Completion Date of the Project The Project will be implemented over 5 years

(2011 to 2015). The starting date of the project will be 1st January 2011 and completion date will be 31st December 2015.

Project Management

Executing Agency The Punjab Province Planning and Development Department

will be the Executing Agency. As the EA it will be responsible for (i) overall coordination and management of the Project, including coordination with other Government ministries and agencies, and other stakeholders at the provincial level; (ii) ensuring timely budgetary allocations to the PMU; (iii) ensuring that regular audits are done and the reports sent to IFAD (iii) ensuring necessary approvals are obtained in a timely manner for effective project implementation; (iv) approval of annual Project budgets and work plans, and (v) chairing the Project steering committee (PSC).

The Manpower Requirement by Skills during Execution and Operation of the Project

The Project Management Unit will have the following composition:

Sr. no

Designation No ofPosts

1 Project Coordinator 1

2 Specialists in Infrastructure, Agriculture, Livestock, Training & Enterprise Redevelopment, Gender and M&E sectors.

6

3 Assistant Directors Agriculture, Livestock, Finance and Accounts and Training and Enterprise Development

4

4 Support Staff (Computer Operator (1), Account Officer (1), Office Secretaries (2), Drivers (4), Naib Qasid (2), Guards (2), Gardner (1), Sweeper (1)

14

Total 25

District Management Units at Bahawalnagar and Rajanpur

District Offices established in all the districts of Bahawalnagar and Rajanpur will be responsible for Monitoring and Evaluation, program development.

DMU Team will manage the components of the project.

The District Management Units will report to Project Management Unit.

Deputy Director M&E based in PMU will keep a track of the performance on continuous basis. The composition of District Management Units will be as follows:

Sr. No

Designation Bahawalnagar

Rajanpur Total

1 Assistant Director Agriculture (2), Livestock (2) and Training and Enterprise Development (2)

3 3 6

2 Support Staff (Office Secretaries (2), Drivers (4), Naib Qasid (2), Guards (4), Gardner (2), Sweeper (2))

8 8 16

Total 11 11 22

Recruitment: All the recruitment in PMU and DMUs shall be done

through a competitive and transparent process. The following recruitment committee will be responsible for hiring of managerial staff:-

Chairman, Planning and Development Board Secretary, Finance Department Secretary, Planning and Development Department Representative from IFAD Project Director, PMU-SPPAP The Project Management Unit will be housed in

Bahawalpur with multi sectorial components and requiring engagement in four backward districts. As is evident from the typical geographical conditions of the area, project shall be carried out and implemented in the difficult area.

14. Additional Projects/ Decisions Required Not Applicable

15. Certified that the project proposal has been prepared on the basis of instructions provided by the Planning Commission for the preparation of PC-1 for infrastructure sector projects.

Prepared by: (CH. IFTIKHAR AHMAD)

Admin Officer (R.P.)

Govt. of the Punjab

Planning & Development Dptt.

( HAMID MAHMOOD)

Assistant Chief (R.P.)

Govt. of the Punjab

Planning & Development Dptt

Checked By: (Dr. Mahmood Khalid Qamar)

Chief ( R.P.)

Govt. of the Punjab

Planning & Development Dptt.

Approved By: (Ubaid Rubbani Qureshi)

Secretary,

Govt. of the Punjab

Planning & Development Dptt.

Counter Signed by: (Javaid Aslam)

Chairman,

Govt. of the Punjab

Planning & Development Dptt

The End