KARACHI: The Sindh government seems unwilling to provide additional funds for the Sindh Coastal Community Development Project as it considers that the project’s performance has remained unsatisfactory, Dawn has learnt.
The original cost of the project to be implemented in six years (2008-13) with the collaboration of the Asian Development Bank was estimated at $40 million — equal to approximately Rs2.41 billion when the project was finalised.
The sources said sensing the unwillingness of the provincial government, the ADB — which had pledged to provide more than $36 million (over 85 per cent of the project’s total cost) for the project — also refused to give additional funds. The ADB owing to delayed implementation and poor performance of the project had earlier rated it “At Risk.”
In response to a Sindh government request for an “increase in counterpart funds”, ADB Energy and Natural Resources Division Director Pil-Bae Song through a letter informed Additional Chief Secretary of the Sindh Planning and Development Department Aurangzeb Haque about the bank’s decision.
The ADB communication originated by project implementation officer Ismat Raza and routed through ADB Natural Resource Unit head Donneth A. Walton said: “There appear to be some unwillingness to provide the requisite additional counterpart funds as per GOS [Government of Sindh] statement that it will consider revision in project cost and increase in counterpart financing only once the project becomes satisfactory and issues relating to hiring and performance are resolve.”
“Please note that the ADB cannot process formal approval of revised project cost, scope, and implementation arrangements unless we have the assurance from GOS that it will provide the required additional counterpart funds.”
The communication adds: “As explained in the MOU, the changes proposed by the executing agency and implementing agencies involve revisions in project costs. The loan amount in dollars will remain the same. However, an increase was proposed in the PRs [Pakistani rupees] resulting from minor revisions to the project scope and savings resulting from US dollar appreciation against the rupee. The total project cost was proposed to be increased from Rs2.41 billion to Rs3.08 billion, resulting in increased financing of Rs609.15 million by the ADB and Rs77.91 million by the government. Please note that we require the GOS firm commitment to provide increased counterpart funds before we seek formal approval of the proposed revisions by the ADB management,” the ADB communications adds.
Under the project being implemented by the Sindh Coastal Development Authority, mangroves are to be planted at a cost of over Rs44 million. Also, development schemes worth Rs976 million are to be implemented. The government departments are supposed to execute other development schemes with the remaining funds.
Source: Dawn News
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