; Punjab and Sindh Bank Recruitment Project 2010
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Punjab and Sindh Bank Recruitment Project 2010

VIEWS: 56 PAGES: 75

Punjab and Sindh Bank Recruitment Project 2010 document sample

More Info
  • pg 1
									                                                                    1




                                     4 August 2009

                  Financial Sector, Public Management, and Trade Division
                  Central and West Asia Department




SINDH GROWTH AND RURAL REVITALIZATION PROGRAM

                SUBPROGRAM 2


      CONSULTATION MISSION 9-14 JULY 2009




             DRAFT AIDE-MEMOIRE


                     FOR

          THE GOVERNMENT OF SINDH

         THE GOVERNMENT OF PAKISTAN

         THE ASIAN DEVELOPMENT BANK




 FOR CONFIRMATION/RESPONSE BY 15 AUGUST 2009




                           Financial Sector, Public Management, and Trade
                           Division
                           Central and West Asia Department
                                                                                                           2




            Subprogram 2 of the Sindh Growth and Rural Revitalization Program

              AIDE MEMOIR OF THE CONSULTATION MISSION 9-14 JULY 2009
                      (For Confirmation/Response by 25 July 2009)


                                                    I. Introduction

1.      A consultation mission1 (the Mission) for the proposed Sindh Growth and Rural
Revitalization Program (the Program or SGARRP) subprogram (SP) 2 visited Karachi, Pakistan
from 9 to 14 July 2009 to review the Program's progress, and discuss steps forward with the
Government of Sindh (the Government) and other key stakeholders. Specifically, the Mission
aimed to:
            i fine tune the policy matrix for SP 2;
            ii fine tune the action plan for SP 2;
            iii discuss consulting services required with the GoS and the best ways to procure
                consulting services; and
            iv Evaluate and discuss measures required to strengthen the implementation
                arrangements.

2.     This aide memoire records the discussions and understandings between the
Government and the Asian Development Bank (ADB), and is still provisional at this stage and
subject to the approval of higher authorities within both the Government and ADB. The Mission
wishes to express its appreciation for the full cooperation and support that it has received from
the GOS.

                   II. Background: The Sindh Growth and Rural Revitalization Program

3.      Sindh is the second largest provincial economy in Pakistan after Punjab. It is also the
second most populous province. Sindh's moderate economic growth in recent decades has
hindered its capacity to significantly improve its livings standards and reduce poverty. Its large
gap between rural and urban economic and social development levels has given rise to a dual
economy – an industrialized economy in Karachi and to a lesser extent in Hyderabad and
Sukkhur, and an agrarian economy in the rest of the province, popularly referred to as rural
Sindh. Any evaluation of Sindh’s constraints, opportunities for growth, and development
strategies needs to take into account the marked urban-rural divide in the province. The GOS is
committed to tackling impediments to growth in the province, and in particular to revitalize the
rural economy. The SGARRP was processed against this background. This section briefly
recapitulates the impact, outcome, outputs, and activities of the SGARRP.



1
   The mission comprised Emma Xiaoqin Fan, Mission Leader/Senior Economist, CWFM, ADB; Michiel Van der
Auwera, Social Security Specialist, CWFM, ADB; Jacques Cook, Consultant, ADB; Martha Kelly, Consultant, ADB;
Mohammed Sarwar Khan, Consultant ADB; Mian Asif Shah, Consultants, ADB; and Afif Haider, Consultant, ADB. Mr.
Sabir Chohan, Chief Executive Officer, Punjab Industrial Estate, made a presentation to the GOS officers and
industrialists in Sindh. A list of persons met is included in Appendix 5.
                                                                                                3

A.     Impact and Outcome

4.      The proposed SGARRP aims to promote broad-based growth across the province and
spur growth in the depressed rural economy. The impacts of the SGARRP will be higher and
sustained economic growth, reduced poverty, and lower rural–urban inequality in Sindh. The
outcomes of the SGARRP include greater private sector participation across the economy, more
efficient public expenditure management, and increased investment and improved service
delivery in rural areas.

B.     Outputs and Activities

5.     The SGARRP supports policy actions in three core policy areas (CPAs):

       (i) CPA 1: Encourage private sector participation by (a) promoting PPPs in
           infrastructure and social service provision, and (b) reducing the government’s direct
           involvement in commercial activities.

       (ii) CPA 2: Strengthen public expenditure management by improving the (a) efficiency of
            public investment; (b) M&E; (c) audit compliance, legislative oversight, and internal
            control; (d) policy, financing, administration, and delivery of employee benefits, and
            (e) policy, financing, administration, and delivery of employee benefits.

       (iii) CPA 3: Revitalize the rural economy by (a) increasing and sustaining rural
             investments, (b) creating an enabling investment environment in rural areas by
             clarifying land titling and reducing market distortions and barriers to entry, and
             (c) facilitating PPP in rural service delivery and empowerment.

6.      The SGARRP will undertake a combination of actions in the short term (1–2 years),
medium term (3–4 years), and long term (4–5 years) periods. Accordingly, it is designed as a
cluster with three subprograms. The completion of SP1 in December 2008 also marks the
beginning of SP2 which is currently being implemented.

                       III. Review of Program under the Program Core Policy Areas

A.     Core Policy Area 1: Promote Private Sector Participation

                1.      Component Objectives

7.      This core policy area includes two subcomponents: promoting public and private
partnerships (PPP) and improving the efficiency of public sector enterprises. The objective of
the PPP subcomponent is to enhance the role of PPP in augmenting resources, improving
efficiency, and mitigating risks; while the objectives of PSE subcomponent is to improve
efficiency and reduce fiscal losses stemming from government ownership of commercial
entities. Overall, this CPA aims to clearly define the role of the public and the private sectors,
and create space for the private sector to serve as an engine for growth in the province.

           2.        Progress Update and Next Steps

                a.      Promote Public–Private Partnerships.
                                                                                                  4

8.    Progress update. The GOS has shown strong interest in using the advantages of PPP
to augment resources for, and improve the efficiency of, public service delivery. The GOS has
adopted a three pronged strategy to develop PPP in the province, outlined below:

                 (i) Developing PPP institutional, policy, legal, and regulatory frameworks.
                       The GOS established a high level PPP Board chaired by the Chief
                       Minister. A PPP Unit has been established and staffed in the Finance
                       Department to facilitate PPP project development. Supported by ADB
                       technical assistance, a PPP law has been drafted, project development
                       fund guidelines have been developed and fund capitalized, and the PPP
                       policy is being updated. The Finance Department has interacted with the
                       Sindh Public Procurement Regulatory Authority (PPRA) to ensure
                       consistency between the PPRA law and the PPP law.
                 (ii) Capacity building. Current PPP unit staff have attended training courses
                       offered by the Infrastructure PPP (IP3). Various presentations on PPP
                       have been offered by staff and consultants of ADB.
                 (iii) Project development. Ultimately the PPP development needs to
                       materialize to create/ensure more and improved quality of services
                       supported by infrastructure and social service projects. The GOS has
                       started work on a number of priority projects. The project that has
                       reached the most advanced stage is the road project from Hyderabad to
                       Mirpur-Khas. Four firms responded to the GOS’s expression of interest
                       (EOI) and one firm submitted a bid. Initial pre-feasibility studies have also
                       started for a number of studies in the tourism, education, and road
                       sectors.

9.     Next Steps. Discussion on ways forward is outlined below.

                 (i) Developing PPP institutional, policy, legal, and regulatory frameworks.
                      The Finance Department will further enhance staff capacity in the PPP
                      Unit by recruiting dedicated professionals from the market. In the long
                      run, the PPP institutional framework needs to include a PPP Unit at the
                      Planning and Development Department for project development, a PPP
                      risk management unit at the Finance Department, and PPP nodes in key
                      line departments and district governments. The PPP nodes are especially
                      important for ensuring ownership for project sponsors – line departments
                      and district governments. These important elements of PPP institutions
                      should be established gradually as more PPP projects are developed.
                      The updated PPP policy will be approved by the Chief Minister, and the
                      PPP law will be vetted and then submitted to the Assembly. Detailed PPP
                      operational guidelines will be developed.
                 (ii) Capacity building. Capacity building so far has been carried out in a
                      piecemeal and ad hoc manner. It is important that a more institutionalized
                      and regular capacity building mechanism be established to provide
                      regular training on PPP. The Mission and the Government discussed the
                      possibility of funding staff from key departments to attend courses in
                      reputable international institutions such as IP3. Consultants working on
                      PPP are required to develop structured training modules for staff in
                      departments including PPP Unit staff who in due course should become
                      PPP specialists, as well as officials from P&DD, Finance, key line
                      departments, and district governments; and private sector participants
                                                                                                    5

                          such as those from banks. New staff with backgrounds in finance, law,
                          and key sectors should also be recruited.
                    (iii) Project development. It is vitally important to develop PPP projects to
                          showcase the benefits of, and sustain interest in, PPP. International
                          experience demonstrates that PPP project development can proceed
                          simultaneously with PPP policy development and capacity building.
                          SGARRP has supported project transactions through setting up the PDF
                          – part of the Program proceeds was allocated for this purpose.

10.     Overall, the GOS is strongly committed to developing PPP in the province. Significant
progress has been made towards developing PPP policy and institutional frameworks, capacity
building, and project development. A major constraint has been the lack of quality consulting
services for Sindh. Major progress has been made in recruiting qualified consultants recently. A
number of consultants, including in the road sector and social sectors, will be recruited in the
next few weeks.

               b.      Improve the Efficiency of Public Sector Enterprises.

11.     Progress update. As in many other countries, public sector enterprises (PSEs) in Sindh
suffer from long term losses, inefficiency, and failures to achieve their stated economic and
social objectives. The GOS is committed to addressing the problems relating to PSEs gradually.
Four entities, namely the Sindh Small Industries Corporation, Sindh Industrial Trading Estates,
Sindh Seed Corporation, and Sindh agricultural market committees, have been identified to
undergo major management and legal changes. These entities representing key industrial and
agricultural sector PSEs. The improved functions of industrial sites and agricultural markets will
go a long way towards promoting industrialization and a more dynamic rural economy in Sindh.

12.    Next Steps. The following measures will be implemented in the next few months.

                    (i) Reforming agricultural wholesale markets. The GOS will dismantle
                         barriers to entry faced by the private sector through amending the
                         Agricultural Produce Markets Act (1939). Initial legal changes suggested
                         by the Pakistan Agricultural Research Council and ADB consultants only
                         focused on enabling private sector entry. The GOS wanted more
                         fundamental changes. The Mission and GOS discussed the need to
                         overhaul the existing framework and draft a modern and simple law to
                         allow for the development of competitive, transparent, open, fair, and
                         modern market systems. The development of the new law will enable
                         increased private sector participation in the market. It will also change the
                         dynamics of the existing public sector markets. International experience
                         demonstrates that, over time, a range of market structures will evolve to
                         provide benefits to growers and consumers. The ADB will submit a
                         consolidated version of reports from consultants and resource persons
                         working on this subject. The Agricultural Department will submit request
                         for the new law to the Chief Minister subsequently.
                    (ii) Improving industrial estates. At the invitation of the Mission, the Chief
                         Executive Officer (CEO) of Punjab Industrial Estate (PIE) presented the
                         successful experience of Punjab in revamping industrial estates to the
                         GOS officials and industrialists in Sindh. The GOS and the Mission
                         concur that establishing a sound governance structure is the key to
                         improving the development and management of industrial sites in Sindh.
                                                                                                6

                      The Government will adopt an improved governance structure that allows
                      more autonomy to the private sector, as well as ensures financial
                      sustainability for each site. Following the adoption of the model, new sites
                      will be established and old sites will be rehabilitated.

13.     The PPP and PSD reforms under the Program have reached a critical stage. Supported
by strong government commitment and the concerted efforts by the GOS and ADB, concrete
results are expected to be achieved in the next few months. These include repealing of the
Agricultural Wholesale Produce Market Act (1939), adopting a new industrial site management
structure, and amendment of the Sindh Seed Act. Consistent and sustained efforts from the
GOS and ADB are critical to ensure the continued momentum of reforms in this area.

B.     Core Policy Area 2: Improve Public Expenditure Management

1.     Background and Component Objective

14.    This sub cluster focuses on two major issues. The first is the need to improve
management of public funds through appropriate choices for public investment and,
subsequently, to improve monitoring, evaluation and internal control mechanisms. The second
broad area reflects the need to better manage pension and other employee benefits.


               2.     Progress update and next steps

a.     Managing Public investment

15.      Progress update. The effectiveness of public expenditure depends on realistic
budgeting at the outset. The ADP for FY 2009 contained 1,890 projects, many of which suffered
from serious delays in implementation. The large number of schemes reflects inadequate
prioritization, thinly stretched and spread resources, and tokenized projects. The deficiencies in
the processes have led to large throw forward, under spending, and under funding, undermining
the development effectiveness of public investment. The GoS has taken a number of steps to
address theses issues. A Budget Ceiling Committee (BCC) has been established to lead the
province's development program, and has completed a "spring cleaning" that removed all
unapproved projects and those that had received only token allocations for the past two years.
Budget allocation for new and ongoing schemes have been kept at below 30:70 in strategic
sectors and 40:60 in the overall ADP. This is slightly higher than the 42:58 ratio last FY.
Departments submitted 3 year forward estimations, servicing as a basis for medium term
programming. Twice tokenized projects are to be cancelled (see 2.2 of SP1) starting from
budget for FY 2009/10.

16.    Next steps. Discussions on ways forward are outlined below.

                    i. GoS to activate the Assembly Standing Committees in Strategic Sectors.
                       This is to ensure that budget allocation is guided by government's
                       strategic considerations, increasing political ownership, and lessening ad
                       hoc interference. The objective is to develop an institutionalized
                       mechanism to communicate between the executives and legislatures and
                       make budget and planning less prone to ad hoc political interference.
                                                                                                  7

                  ii. The Budget Ceiling Committee to recommend the global limit for both the
                      current and development budgets for each line department for FY
                      2010/11 by December 2009. This action is closely related to the above
                      action. It expands the coverage from development expenditure to the
                      overall budget.

                  iii. Approve new projects. About 80% of the new projects included in the
                       Annual Development Program 2009-10 are yet to be approved by the
                       Provincial Development Working Party. P&DD will ensure that at least
                       50% of new projects are approved by August 2009 and 100% by October
                       2009. Projects approved after this date will be put in the next fiscal year's
                       ADP. This is to ensure that projects are approved from early on, leaving
                       sufficient time for implementation.

                  iv. Develop well defined priorities in the contest of a medium term
                      framework. The Mission was informed that the GOS will introduce a
                      medium term budgetary framework (MTBF), supported by the World
                      Bank. A medium term framework is essential for ensuring consistency
                      between stated priorities, available resources, and existing
                      implementation capacity. To complement the MTBF effort and drawing
                      from the experience in Punjab, ADB will mobilize support for improving
                      the systems and procedures in identifying and implementing ADP. The
                      improved procedures will be reflected in the planning manual.

                  v. Analyzing systematic issues on ADP. The current actions included in the
                     program on the ADP are mostly instructions in nature. The Mission
                     proposed that an in-depth study on ADP be carried out to analyze the
                     systematic and institutional issues on ADP. Three CVs of international
                     consultants have been shared with the P&DD.

           b.     Improving Monitoring and Evaluation

17.     Progress update. The Directorate General of Monitoring and Evaluation is mandated to
review the ADP portfolio and issue reprimands to departments with nonperforming schemes.
The Directorate General has historically been seriously understaffed, with severely limited its
capacity to monitor development project execution. In addition to substantial improvements in
capacity, results depend on the ability to ensure corrective actions are taken where needed. The
GoS has approved a PC-I to strengthen the M&E cell within P&DD with the development and
implementation of a computerized M&E framework, adequate staffing and training. PRs290
million has been allocated for a third party evaluation of the development schemes. ADB
provided technical support in reviewing five projects with execution delays, identifying systemic
blockages that need to be addressed. The organogram of the M&E cell has been revised, with
the focus on employment of technical professionals.

18.    Steps to be completed in the next few months include

                   i. Recruitment and training. The recruitment process has been completed
                      by P&DD but is pending approval of the Chief Minister. The Mission
                      requested that the GOS expedite the recruitment of staff and procurement
                      of hardware to enable the operationalization of the enhanced M&E Wing.
                                                                                                8

                  ii. GoS will out source evaluation of large projects to third parties. For third
                      party evaluation, 170 schemes have been selected. The Government had
                      solicited expression of interest (EOI) and has received EOI from 13
                      firms/institutes. Technical Committee comprising of the P&D staff was
                      constituted and criterion for short listing was developed based on nature
                      of project and firms experience. The evaluation has been completed and
                      the request for proposal (RFP) has been finalized but will be issued when
                      M&E Cell is adequately staffed.

                  iii. Adapt computerized project management and evaluation system. The
                       M&E system developed at the Federal level will first be adapted to meet
                       the needs of the GoS. ADB will mobilize experts in software development
                       to customize the PMES and train the M&E cell. As per the agreed policy
                       actions, P&DD and line departments will put a result based M&E
                       framework into operation; all new development schemes for 2009/10 ADP
                       will incorporate performance indicators; and information for at least 30%
                       of the schemes input into the M&E database.

                  iv. P&DD to implement measures to reduce project delays based on the
                      review of the 5 projects. P&DD will carefully assess the recommendations
                      in the report produced by the ADB TA grant consultation. ADB will
                      support the GOS in sequencing and implementing reforms by providing
                      further technical assistance.

                  v. Bureau of Statistics. The P&DD requested the ADB's assistance in
                     restructuring the Sindh Bureau of Statistics. ADB will recruit a consultant
                     to study the institutional set up of the Bureau and propose an action plan
                     for reforms. SP3 will support revamping of the Bureau.

                    c.     Improving Procurement

19.    Progress Update.

20.    Sindh adopted Public Procurement Rules in 2006 along the same lines as those adopted
by the Federal Government in 2004. GoS established the Sindh Public Procurement Regulatory
Authority (SPPRA) under an Ordinance that elapsed in 2007 (Ordinance has to be re-
promulgated every 90 days). The Provincial Assembly of Sindh enacted the SPPRA law in May
2009 providing a strong legal backing to the Authority. SPPRA has now been staffed. Key
management positions were filled from the government sector and procurement specialists were
form the private sector. Due to gaps in procurement rules of 2006, SPPRA has now developed
draft rules for procurement and invited feedback from the line departments and other
stakeholders. The rules will be notified after thorough deliberations with the stakeholders to
replace the provincial government purchase manual. All line departments and attached
government agencies have been asked to post tenders and purchase orders against these
tenders on the PPRA website.

21.     Future Steps. PPRA is yet to institutionalize the disclosures on website making it
mandatory on the departments to post the tenders on PPRA website and educate the Auditor
General Office in ensuring the auditors scrutinize this point during the course of audit. In this
regard PPRA has developed a comprehensive plan to conduct awareness workshop inviting the
officers of line departments and representatives of the Auditor General Office.
                                                                                                9

              d.      Improving Internal Control and External Audit

22.     Progress update. The Public Accounts Committee was established in December 2008
and has since actively held meetings to review the audit reports starting for the FY 2004-05.
PAC monthly schedule of meetings is circulated amongst the administrative departments and
the meetings are held regularly as per the schedule. The frequency of PAC meetings have had
a spillover effect on the Departmental Accounts Committee which has been activated to address
the advance audit observations, reducing the audit load as well as the backlog. The institutional
capacity of the PAC, however, is weak hindering disposal/settlement of audit observations in
timely and effective manner.

23.    Next steps

                    i. Settlement of audit observations: Departments of Agriculture, Livestock
                       and Fisheries, Irrigation and Power, and Works and Services have held
                       regular DACs as per the calendar and the last DAC meeting held for FY
                       2008-09 was in June 09. The Departments have settled/referred the audit
                       observations for FY 2004-05 and 2005-06. These departments will hold
                       regular meetings and settle audit backlog as scheduled. Departments
                       provided documentary evidence (minutes of the meetings) that have been
                       sent to the DG provincial audit for confirmation.

                   ii. Strengthen PAC. The ADB will provide technical support for development
                       of a monitoring framework to track compliance by administrative
                       departments with PAC directives. The implementation modalities are
                       being finalized for the technical assistance and international experts have
                       been identified to conduct knowledge sharing workshops and develop a
                       template for a standard and structured annual performance report for the
                       PAC. A domestic firm will be hired to develop MIS for the PAC secretariat
                       to improve their monitoring role.

       e.     Improving employee benefit management.

              1.      Component Objective

24.    The objective of this component is to improve the financing and administration of
pensions and other employee benefits towards a well-managed, sustainable employee benefit
scheme to reduce contingent liabilities, secure fiscal space for priority development spending
and provide adequate income security for the civil service.

              2.      Progress update and next steps

25.     Progress update. The employee benefit component has three subcomponents: (i)
financing of pensions and General Provident Fund (GP Fund) liabilities, (ii) recordkeeping and
service delivery for pensions and employee benefits, and (iii) policy reform of pensions and
employee benefits.

26.    In recognition of the need to better manage its growing pension and GP Fund liabilities,
the Government established the Sindh Pension Fund (SPF) in 2002 and the Sindh General
Provident Investment Fund (SGPIF) in 2007. On an annual basis, the government transfers
PRs3 billion to the SPF and PRs2 billion to the SGPIF in addition to paying the annual benefit
                                                                                                 10

payments. The funds are currently being managed by separate boards, with the investment
handled by the Finance Department. The Government is preparing the establishment of the
Sindh Fund Management House (SFMH) through which the SPF and the SGPIF, and other
pools of surplus monies, will be managed in a professional manner by a single Sindh Fund
Management Board, and an investment unit staffed with professionals hired from the private
sector. As a first step in creating the SFMH, the Finance Department is recruiting a finance
expert from the private sector. This expert will assist the government in preparing the future
Board policies and the structure of the investment unit.

27.     A reliable recordkeeping system is required to allow the Government to manage its
pension and GP Fund expenditures and liabilities, as well as to provide accurate and timely
benefit payments to pensioners. A major improvement is expected from the transition from a
paper-based to an automated record keeping, benefit calculation, and benefit payment system
in the Office of the Accountant General (AG Office) and the District Account Offices (DAOs).
The database, SAP/R3 has three modules relevant for pensions and GP Fund, a payroll
module, a pension module and a GP Fund module. All DAOs in Sindh use the SAP/R3 payroll
module. During the past few months, the AG Office made substantial progress in transferring
paper-based pension records into an intermediate automated environment prior to upload into
SAP/R3. On 30 June 2009, 16 out of the 23 districts had completed the transfer and a total
91,210 out of 118,619 pension records were punched into excel (24,000 pension records were
entered as of 31 August 2008). The majority of these records have not been verified yet as only
7,000 pension records have been uploaded into the SAP/R3 database. While the main
emphasis remains on uploading pension records, some progress has been made in the
uploading of historic GP Fund records. The initial approach is to require the DAOs to start
completing the GP Fund records for civil servants that are to retire within the year.

28.     The Accountant General shared his pension vision which aims for an automated and
integrated pension cycle, where pensioners can receive hassle-free pension payments. It
includes initiatives, such as the scanning of the pension claim documents, the establishment of
a one-window Pension Facilitation Cell, the on-line access of individual pension entitlements for
pensioners, and the introduction of an electronic pension card replacing the pension booklet. So
far, the AG Office has received a budget from the GOS to install an Electronic Document
Management System to file, store and retrieve the pension claim documents, and requested
ADB support for the electronic pension card.

29.     A major concern for the GOS is the growing cost of pensions and the GP Fund. The cost
of the benefits is driven by the design of both schemes, which are ultimately decided at the
federal level. Earlier this year, the federal government formed a Pay and Pension Commission
to decide on reform of the remuneration and benefits of civil servants. The provinces as the
main stakeholders, employing 80% of all civil servants, are represented in the commission.
Enhanced understanding of the financial impact of policy decisions by the provincial participants
will contribute to a better documented debate and balanced decisions by the Pay and Pension
Commission.

30.         Steps forward. The following initiatives will be pursued during the coming months:

      (i)   SFMH: The Board members of the current SPF and SGPIF require more exposure to
            enhance their understanding of the SFMH concept before preparing the SFMH Act.
              a. A series of presentations to the Board members will be organized, starting with
                 an introduction of the SFMH concept and the required steps, the presentation of
                                                                                                 11

               alternative financing strategy options and the introduction of accrued accounting
               for pension and GP Fund expenses and liabilities.
            b. The financing specialist, who is in the process of being hired by the Finance
               Department, will develop a professionally managed investment unit, with the
               assistance of technical support provided through ADB.
            c. A legal advisor will be recruited to prepare the draft SFMH Act for further
               finalization by the GOS and approval by the Provincial Assembly.

     (ii) Recordkeeping: the multiple initiatives launched by the AG Office are very encouraging
          and will require the necessary technical support.
            a. Transfer of pension records: ADB shared a pension module with AG Office to
                enter the remaining pension records into excel within a controlled environment.
                Depending on the outcome of the verification of the pension data prior to the
                uploading in SAP/R3, the module can also be used to update the rejected
                pension records
            b. Review of Electronic Document Management System: the preliminary review
                identified a weak link between this system and the pension module in SAP/R3. A
                report will be prepared with suggested steps to be undertaken to optimize the
                functioning of the Electronic Document Management System and its integration
                into the pension module in SAP/R3. The advice will include a review of a similar
                initiative tested on the federal level, in case available.
            c. A feasibility study will be undertaken to replace Pension Books with Pension
                Electronic Cards. The study will include initiatives prepared on the federal level,
                in case available
            d. The procedures and required documentation are still tailored towards the paper-
                based system. The information requirement will change drastically with the
                introduction of an electronic system. A report will be prepared advising on the
                new requirements for documentation and procedures tailored to the SAP/R3
                environment.

     (iii) Policy reform:
             a. The understanding of the financial impact of policy decisions on pensions and
                  GP Fund will be enhanced during the series of presentations listed under (i) a. In
                  addition, the actuarial valuation on pensions will be updated based on 30 June
                  2009 data, and actuarial valuations for GP Fund, benevolent fund and group
                  insurance will be prepared and shared with the GOS during presentations.
             b. Support to the development of a provincial actuarial support cell will be
                  continued.

31.      Support will be provided to the GOS in the preparation of a vision, strategy for enhanced
service delivery of employee benefits, and intermediate steps towards this vision will be
identified

C.      Core Policy Area 3: Revitalize the Rural Economy

                1.     Background and Component Objective

32.   Large and expanding rural and urban income and development gaps have prompted the
GOS to intensify its efforts to revitalize the rural economy. CPA 3 covers a comprehensive
package of reforms to (i) sustain and increase public investment in rural areas, (ii) improve the
                                                                                               12

rural investment climate through computerizing land records and reducing distortions in the rural
economy, and (iii) improve rural service delivery.

               2.     Progress update and Steps Forward

               a.     Increase and Sustain Rural Investments

33.    Progress update. Public investment in Sindh has long been biased towards urban
areas. The renewed emphasis of the GoS on revitalizing the rural economy has seen it increase
budget allocation to rural areas by nearly 30% from 2008 to 2009 and a further x% from 2009 to
2010.

34.     Next Steps. The GoS has decided that under subprogram 1 it will realign its investment
portfolio by increasing ADP allocations for the rural economy by at least 15% per annum over
the new Medium Term Fiscal Framework period (FY2009–FY2011). It will ensure that the rural
investment plan and rural investment targets continue to be implemented and achieved.

               b.     Improve Land Records

35.     Program Update. Under SP 1, the GoS has adopted a policy framework and approved
a budget to implement a computerized land record and titling regime throughout the province
based on surveys. It has approved 3 planning commission pro-forma I (PC-I) approvals for a
land administration and revenue management information system, preservation of revenue
records, and geographic information system respectively, with a total value of PRs1.8 billion. To
ensure better coordination among the three parallel and complementary projects, a combined
project advisory committee has been notified, and BOR has started recruiting staff and
management consultants for the combined program management unit (PMU) of the 3 projects.
The recruitment of the management consultancy is currently pending approval by the Chief
Minister. The appointment of the project director has also been delayed. As requested by the
BOR, ADB hired a team of consultants in May 2009 through Fincon to help the BOR develop a
road map and action plan for implementing land record computerization in Sindh. These
consultants helped to conceptualize and define a road map for tasks in the areas of business
processes, cadastral surveying, GIS, and legal reforms. The consultants recently submitted their
report.

36.     Steps Forward. The selection of the PMU head and staff need to be completed as soon
as possible. Due to the delay in selecting the project director and consultancy firm, work has not
been selected. Expediting work by the BOR on this critical component is urgently needed. The
original time line which envisaged that a pilot be completed in 14 selected revenue estates in
2009, the results be evaluated, and the process and software fine-tuned and finalized before the
end of FY2009, may not be met.

               c.     Remove Regulatory Impediments to Market Access

37.     Progress update. The Sindh Agricultural Produce Markets Act (1939) prohibits the
establishment of private wholesale markets. To counter the anticompetitive nature of the act, the
GOS has submitted a summary to the Chief Minister proposing the amendment of this act to
enable the private sector to establish and manage wholesale and bulk markets. Supported by
the ADB, the Sindh Agricultural Produce Markets Act (1939) was amended and shared with the
GOS. Two stakeholder workshops involving both the private and public sector participants were
held in December 2008. The GOS considers the initial amendments to be too conservative and
                                                                                                13

requested further changes to the Act to make it modern, transparent, and simple for producers
and consumers. Recent discussion reveal that all necessary regulations, such as on
environment, hygiene, food safety, zoning, exist in municipal regulations. As such, a separate
law is not required. Furthermore, the current law purely prescribes an outdated management
structure, and does not deal with any regulations. As such, the best way of moving forward is to
repeal the Act.

38.     Next Steps. It is proposed that the Agricultural Act (1939) be repealed. A transitional
structure, involving establishing management committees by stakeholders in each market, can
be set up. Over time, the development of private sector markets will also change the dynamics
of the existing public sector market. On the Sindh Seed Corporation, it is proposed that options
to lease the corporation and other options be allowed through amending the Sindh Seed Act.
Transaction advisory services will be procured to implement long term leasing of the Seed
Corporation. The Finance Department also requested transaction services for food storage.
Given that most of the agricultural market plots are leased out, it is proposed that the long term
solution to the agricultural markets be designed after a careful analysis of the players and their
relationships in the markets.

               d.     Promote Private Sector and Civil Society Participation in Service
                      Delivery and Rural Empowerment

39.      Progress updates. While public sector service delivery infrastructure such as the
number of basic health units (BHUs) has expanded in recent years, actual service delivery has
not improved visibly in rural Sindh. One reason is that the public sector has been hampered by
high absenteeism and a lack of accountability. The unsatisfactory performance and slow
progress by the public sector have prompted the Government to search for alternative models of
service delivery. In this regard, partnerships between the GoS and the People's Primary Health
Initiative (PPHI) have been fruitful. Service delivery in PPHI managed districts have significantly
improved. SP1 supported the expansion of PPHI services from 10 to 17 districts.

40.    Next Steps. SP2 will support the conduct of citizens’ satisfaction surveys on basic
health and education services provided by different service providers. The program will support
the regulation of this survey to increase accountability, encourage informed decision making,
and consideration of citizens' preferences. ADB will support PPHI in introducing a management
information system. The system will help PPHI to improve its inventory management, financial
management, and procurement systems. The system will be particularly useful in tracking
expired medicine and preventing medicine which causes waste and is a health hazard after its
expiry date from remaining in use beyond that expiry date. The sustainability of PPHI has long
been a concern. The Program will support PPHI to become a genuine PPP contract
management model through gradually introducing competition and formal contractual
agreements. The work of PPP in CPA 1 is especially relevant in this regard.

41.    The revised policy matrix and action plan are attached in Appendices 1 and 2, and the
presentation made during the missions are in Appendix 3.

                                        IV. Technical Assistance

42.     Implementation of reforms envisaged under the SGRRP requires substantial technical
assistance (TA). The SGARRP includes a piggybacked TA 7201 Improving Private Sector
Participation and Public Expenditure Management. Major TA activities include designing a road
map for PPP in the province, identifying options for introducing private management or divesting
                                                                                                               14

a number of public sector entities, introducing a computer based M&E system, carrying out
employee benefit analysis, and assisting in the implementation of the computerization of land
records in the Province. The total cost of the TA grant is $1 million equivalent. The ADB has
provided $800,000 equivalent on a grant basis from the Technical Assistance Special Fund
(TASF). The GoS’s in-kind contribution of $200,000 equivalent will cover office accommodation,
transport, counterpart staff support, and facilities for seminars and meetings. Table 1 below
provides a summary of the consulting service requirements. The ADB has provided a subproject
entitled Strengthening Fiscal and Public Financial Management in Sindh under TA 4922 Support
to Governance Reforms in Pakistan. Based on discussions between ADB, GOS, and DFID, the
amount of this TA has recently been increased from $1.2 million to $2 million. The specific
consulting service requirement and a tentative procurement plan for each CPA are listed below.

A.        Program Coordination

                             Table 1: TA Requirements for Overall Program Coordination and
                                                   Implementation

#            Activity            Brief description      Delivery        Expected      Source of TA    Expected
                                                         Mode          consultant       funding         fielding
                                                                      fielding date                       date
1    Program coordinator         Coordinate TA to     12 person       August 2009     TA 7201        To be
                                 facilitate program   months                                         initiated.
                                 implementation       national
                                                                                                     Expected to
                                                                                                     be fielded
                                                                                                     Sept 09

2    Team Leader/PFM             Lead overall         6 person        August 2009     TA 7201        Contract
     specialist                  program              months                                         offered to
                                 coordination                                                        Reza Ali

                                 Technical            international
                                 assistance to
                                 CPA2 and CPA3
3    Study tours on land                                                              TA4922/7201    To be
     records, PPP, industrial                                                                        decided
     sites, agricultural
     markets, seed production
     and distribution, and
     result based management
4    Training workshops on all                                                        TA4922/7201    To be
     the 3 CPAs, esp. on PPP,                                                                        decided
     including training in IP3
     for 7-8 key staff



5    Demand based technical                                                           TA4922/7201    To be
     assistance for all 3 CPAs                                                                       decided




B.        CPA I. Promote Private Sector Participation
                                                                                                              15


    Table 2: TA Requirements for Core Policy Area 1 - Promote Private Sector Participation
#    Activity        Brief description                Delivery Mode       Expected     Source    Expected
                                                                          consultant   of TA     fielding date
                                                                          fielding     funding
                                                                          date
1    Public Sector          Advise and assist in     4.5 person          September    TA 4922   Recruitment to
     Enterprise              the restructuring of     months              2009                   be initiated.
     restructuring           the agricultural         international
     experts                 markets and Sindh                                                   Expected to be
     (agriculture)           Seed Corporation         4.5 person                                 fielded Aug 09
                                                      months,
                                                      national
2    Public Sector          Advise and assist in     2 resource          September    TA 4922   Recruitment to
     Enterprise              the restructuring of     persons, 10         2009                   be initiated.
     restructuring           the Sindh Industrial     days each
     experts                 and Trading                                                         Expected to be
     (Industry)              Corporation                                                         fielded Aug 09

3    PPP road               Advise on PPP road       International:      September    TA 4922   Recruitment
     sector                  projects and rules on    4person months      2009                   ongoing and
     specialist              environmental, land                                                 expected to be
                             acquisition, and                                                    completed in
                             other aspects                                                       early Aug 09


4    PPP social             Advise on PPP            International: 4    September    TA 4922   Recruitment to
     sector                  social sector projects   person months       2009                   be initiated.
     specialist              and issues
                                                                                                 Expected to be
                                                                                                 fielded Aug 09

5    PPP financial          Advise on PPP            International:      September    TA 4922   Recruitment to
     sector                  financial issues         3.5 person          2009                   be initiated.
     specialist                                       months
                                                                                                 Expected to be
                                                                                                 fielded Aug 09

6    PPP                    Advise on PPP            International: 6    September    TA 4922   Recruitment to
     institutional           institutional issues     person months       2009                   be initiated.
     specialist                                       (1-2 positions)
                                                                                                 Expected to be
                                                                                                 fielded Aug 09

7    PPP legal              Advise on PPP legal      International: 3    September    TA 4922   Recruitment to
     specialist              issues                   person months       2009                   be initiated.

                                                      Domestic: 2                                Expected to be
                                                      positions (one 2                           fielded Aug 09
                                                      person months,
                                                      and one 4
                                                      person months)
8    Transaction            Transaction advisory     A term/firm of      Early 2010   TA7201    EOI has been
     adversary               services on seed         legal, financial,                          published. This
     services                cooperation, food        and technical                              can only be
                             storage, and             experts                                    done after the
                             possibly agricultural                                               legal barriers
                             markets                  9 person                                   are addressed
                                                      months
                                                      domestic in
                                                                                                                      16

                                                          total

                                                          4.5 person
                                                          month
                                                          international in
                                                          total

C.       CPA 2. Improve Public Expenditure Management

        Table 3. TA Requirement for CPA 2 Part 1 - Improve expenditure management
#    Activity      Brief description      Delivery           Expected        Source of TA funding    Expected
                                          Mode               consultant                              fielding date
                                                             fielding
                                                             date
1    PFM               Advise on         4 person            August          TA 4922                Recruitment to be
     specialists       improving PFM     months,             2009                                   initiated.
                       in Sindh          International,
                                                                                                    Expected to be
                       Advise on                                                                    fielded Oct 09 as
                       improving ADP                                                                the consultant
                       management                                                                   became
                                                                                                    unavailable.
                       Revise the
                       planning manual                                                              P&DD pointed out
                                                                                                    that this
                                                                                                    consultancy was
                                                                                                    not needed. The
                                                                                                    Mission believes
                                                                                                    that the technical
                                                                                                    assistance is
                                                                                                    needed to
                                                                                                    deepening the
                                                                                                    reforms on
                                                                                                    improving ADP
                                                                                                    management

2.   M&E /             Facilitate        4 months            August          TA 4922                Recruitment of
     Systems           software design   national            2009                                   Mansoor Khan
     expert            for M&E and                                                                  started, but
                       assist in its                                                                stopped as the
                       implementation                                                               procurement of
                                                                                                    hardware and
                                                                                                    recruitment in the
                                                                                                    M&E Wing of
                                                                                                    P&DD are not
                                                                                                    completed.

                                                                                                    P&DD requested to
                                                                                                    field the consultant.

                                                                                                    Expected to be
                                                                                                    fielded Aug 09

3    PAC capacity      Advise and help   3 PM                September       TA 4922 AG             No candidates
     building          to implement      international       2009            subproject/PLC/SPFM    have been
     specialists       PAC capacity                                                                 identified.
                       building          6 PM
                                         domestic                                                   Expected to be
                                                                                                    fielded in mid-Sept
                                                                                                                17

4   Statistician   Develop an road   2 PM             September        TA 4922 PLC            Recruitment to be
                   map for           international    2009                                    initiated.
                   restructuring
                   Bureau of         2 PM                                                     Expected to be
                   Statistics        domestic                                                 fielded Aug 09

5   Moveable       Develop a MIS     3 PM,            October          TA 4922                No candidates
    asset          system for        domestic                                                 have been
    management     managing                                                                   identified.
    specialist     moveable asset
                   in government                                                              Expected to be
                                                                                              fielded in mid-Sept



    Table 4: TA Requirement for CPA 2 Part 2 - Enhance the management of employee benefits
#   Activity               Brief description                Delivery        Expected      Source    Status and
                                                            Mode            consultant    of TA     Expected
                                                                            fielding      funding   fielding date
                                                                            date
1   Pension investment     Assist in the development of     58 days         October       TA 4922   Recruitment
    and recordkeeping      the SFHM investment unit         international   2009 –                  to be initiated
    expert                 and the preparation of the       (48 in the      March
                           SFMH Act                         field, 10 in    2010
                           Advise and assist AG Office      home
                           in implementation of the         office)
                           pension vision, and in the
                           review of the pension
                           procedures and required
                           documentation
2   Actuary                Prepare actuarial valuation      147 days        July 2009 –   TA 4922   Done.
                           for pensions, GP Fund,           international   March                   contract
                           benevolent fund and group        (84 in the      2010                    issued
                           insurance                        field, 63 in                            (s18581)
                           Assist in preparation of         home
                           financing strategy and           office)
                           accrued accounting report
                           for pensions and GP Fund
                           Assist AG Office in
                           preparation of controlled
                           environment for data entry of
                           pension and GP Fund
                           records
                           Assist in development of
                           SFMH and implementation
                           of AG's pension vision
4   Fund management        Provide legal and regulatory     30 days         September     TA 4922   Recruitment
    legal advisor          advice, and draft relevant       international   2009 –                  to be initiated
                           legal instruments allowing       (to be          January
                           the Sindh Fund Management        recruited in    2010
                           House for effective fund         Sindh)
                           management and investment
                           operations
5   Investment advisor     Assist investment specialist     60 days         August        TA 4922   Recruitment
                           hired by Finance Department      international   2009 –                  to be
                           Provide legal and regulatory     (to be          March                   initiated, in
                           advice, and assist in drafting   recruited in    2010                    coordination
                           relevant legal instruments       Sindh)                                  with
                           allowing the Sindh Fund                                                  recruitment of
                           Management House for                                                     investment
                           effective fund management                                                expert by
                                                                                                                      18

#     Activity                Brief description                 Delivery          Expected      Source    Status and
                                                                Mode              consultant    of TA     Expected
                                                                                  fielding      funding   fielding date
                                                                                  date
                              and investment operations                                                   GOS
6     Employee Benefit        Assist the Sindh government       60 days           October       TA 4922   Recruitment
      House expert            in the preparation of a vision,   international     2009                    to be initiated
                              strategy and intermediate         (to be
                              steps towards this vision         recruited in
                                                                Sindh)
7a    IT/MIS specialist to    Assist AG Office in reviewing     60 days           August        TA 4922   TOR being
      prepare feasibility     feasibility to replace pension    international     2009                    prepared
      study on launching of   booklet by pension electronic     (to be                                    Recruitment
      Pension Electronic      card. Review technical and        recruited in                              to be initiated
      Card                    financial requirements,           Sindh)
                              identify implementation steps
                              required to build interface
                              between AG and provider
                              databases, …
7b    Launching of Pension    Proposal will come out of the                       November      TA 4922   Depending
      Electronic Card on      feasibility study                                   2009                    on outcome
      pilot basis                                                                                         of 7a

D.       Core Policy Area 3. Revitalize the Rural Economy

                 Table 5: TA Requirement for CPA 3: Revitalize the Rural Economy
     Activity             Brief description       Delivery Mode                 Expected        Source    Status and
                                                                                consultant      of TA     Expected
                                                                                fielding date   funding   fielding date
1    Modernization of     Develop an action       Firm                          A team of                 Draft TA
     land records         plan                                                  consultants               report was
                                                                                were                      shared with
                                                                                recruited                 P&DD
                                                                                through
                                                                                Fincon was
                                                                                engaged
2    Modernization of     Advise BOR on           International: 6 pm           September       TA7201    Recruitment
     land records         implementation of                                     2009                      to be
                          computerization of                                                              initiated.
                          land records
                                                                                                          Expected to
                                                                                                          be fielded
                                                                                                          Sept 09

3    Modernization of     Advise BOR on           International/domestic        September       TA7201    Recruitment
     land records:        implementation of       (business process             2009                      to be
     business process     computerization of      expert): 4 pm                                           initiated.
                          land records and
                          business process                                                                Expected to
                          reengineering                                                                   be fielded
                                                                                                          Sept 09

4    Public financial     Design service          2 person month                September       TA 4922   No
     management           standards               national                      2009                      candidates
     specialist/Health                                                                                    have been
     sector specialist    Design a funding                                                                identified.
                          mechanism for
                          PPHI, based on                                                                  Expected to
                          agreed service and                                                              be fielded in
                          technical standards,                                                            mid-Sep
                          for in BHUs
                                                                                                              19


5        Land valuation        Study the                3 person months      TA 4922     TA 4922   Recruitment
         specialist            institutional                                                       to be
                               relationships in 3                                                  initiated.
                               agricultural markets
                               and carry out                                                       Expected to
                               valuation of 3                                                      be fielded
                               markets and the                                                     Sept 09
                               Seed Coopration
6        PPHI MIS System       Design the system        International or     July 2009   TA 7201   Contract
         architect                                      domestic, 2.5 PM                           offered to Ali
                               Assist in                                                           Hassan
                               procurement

                               Supervise system
                               implementation

                               Capacity building
7        PPHI system           Procurement of                                Oct. 2009   TA 7201   No
         procurement           software and max                                                    candidates
                                             2
                               20 computers                                                        have been
                                                                                                   identified.
                               get system into
                               operation                                                           Expected to
                                                                                                   be fielded in
                               Training                                                            Oct. 09

                               Initial trouble
                               shooting
8        Citizens              Design, supervise,       9 person month       May 2009    TA 7201   Recruitment
         Satisfaction          and analyze              national (multiple                         to be
         Survey                citizens’ satisfaction   positions)                                 initiated.
                               survey
         Introducing                                                                               Expected to
         citizen's reporting   Design and assist in                                                be fielded
         cards                 the introduction of                                                 Augt 09
                               citizen's reporting
                               cards
9        Demand based
         technical
         assistance for all
         3 CPAs


                                                                 V. Issues

    1.         The Mission and the GoS also discussed the following points:

                  i     Enhance results. The ADB Board and Management, and GOS want to see
                        tangible benefits accrue to people in Sindh supported by the Program. SP2
                        supports the implementation of significant and achievable reforms. Concerted
                        efforts from both the GOS and ADB are needed to ensure effective and efficient
                        implementation of the Program.
                  ii    Adopt result based management. Relating to the above point, the Mission
                        proposed that the GOS consider adopting a result based management approach.


2
    The procurement of hardware needs further consideration.
                                                                                          20

       Efforts have been initiated in this area in Punjab. Sindh and Punjab can share
       experience if both move towards this new public sector management philosophy.
iii    Promoting PPP. A 3 pronged strategy on developing PPP needs to be pursued,
       including (i) developing an enabling environment, (ii) capacity building, and (iii)
       project development. The staffing of the PPP Units, especially recruiting
       dedicated professionals from the market, need to be urgently implemented. The
       Finance Department proposed that the Program support key staff from relevant
       key departments to attend the IP3 courses. It was further proposed that staff for
       such courses should pass an on-line PPP training course first. Structured training
       courses should also been organized by PPP consultants. The Mission proposed
       that the GOS also consider hiring qualified professionals from the market in
       addition to training of existing staff.
iv     Private sector development. Effort on repealing agricultural market law, amend
       the seed act, and adopt a new industrial estate model needs to be continued.
       The GOS requested that the Program support transaction advisory services for
       enhancing food storage on PPP mode.
v      Transaction advisory services for agricultural market, Seed Corporation,
       and food storage. The GOS and ADB discussed the need for transaction
       advisory services for increased private sector participation for selected
       agricultural markets and the Sindh Seed Corporation. As most of the plots in the
       agricultural markets are leased out on a long term (99 years) basis, the room for
       carrying out long term leasing for the existing markets is limited. The GOS is in
       discussion with some seed companies in China to jointly work on seed
       production and distribution. The GOS requested ADB's support in promoting
       private sector participation in food storage to help farmers to stabilize prices and
       improve income. The GOS and the Mission discussed the need for the following
       steps (i) continued efforts to eliminate legal, regulatory, and policy barriers to
       entry faced by private sectors, (ii) carry out situation and institutional analysis on
       issues facing these 3 entities and decide the best approach in working with
       private sector, (iii) carry out transaction advisory services for the selected
       approaches subsequently. ADB will publish an EOI for the transaction advisory
       services soon to reduce recruitment time.
vi     ADP. The Mission note that the ADP allocation in strategic sectors has an
       ongoing and new scheme proportion of at least 70:30, but note that the overall
       ADP allocation between ongoing and new schemes is 60:40.
vii    M&E. Recruitment of new staff for the M&E Wing and procurement of hardware
       needs to be expedited.
viii   MTFF and allocation. SP2 requires that the Finance Department include
       agricultural, irrigation and power, livestock and dairy, and fishing sectors in the
       province's medium term fiscal framework, and ensure allocation in these sectors
       to be at least 15% higher than the previous fiscal year (confirm?).
ix     Land records. Implementation of land record computerization has been
       significantly delayed. The original time line that a pilot be completed in 14
       selected revenue estates in 2009, the results be evaluated, and the process and
       software fine-tuned and finalized before the end of FY2009, may not be met if
       intensive efforts are not made. The Mission strongly requests the GOS expedite
       the recruitment of the project director and consultancy firm.
x      Engage the Law Department. The Program covers many legal changes. The
       Mission proposes that relevant departments engage the Law Department on
       these issues from an early stage.
                                                                                                              21

            xi TA implementation. TA implementation, in particular consulting service
                 recruitments, needs to be sped up to support program implementation. The
                 Mission request GOS to provide timely concurrence to consulting service
                 recruitment request under TAs.
            xii Enhance consultant outputs. The GOS and ADB concurred that monitoring of
                 outputs from the TA grant and TA loan should be strengthened to yield best
                 value for money from consulting services. It has been agreed that consultant
                 output requirements will be regularly updated and Mission outputs by consultants
                 should be clarified before missions are approved. Consulting outputs also need
                 to be published in a timely manner.
            xiii Program Management Unit. The Project Coordinator, Abdul Aziz Uqaili, was
                 appointed earlier this year. Three directors are yet to be hired, as are one focal
                 person for each CPA, and one focal person for poverty-related activities (outside
                 SGARRP). The PMU has limited resources available to organize workshops. The
                 bulk of the TA grant resources are provided through TA Cluster 4922: Support to
                 Governance Reforms in Pakistan, which is closing in March 2010. Continued TA
                 support and the role of the PMU will need to be determined as part of the next
                 Subprogram. Terms of references for the PMU have been discussed with the
                 PMU and is attached in Appendix 4.

                                           VI. Follow-Up Actions - Summary

83.    The following follow-up actions in accordance with the schedule shown below will be
implemented by the Government, and other concerned agencies with the Additional Chief
Secretary of P&DD being responsible for their timely implementation.

                   I.          Follow-up Action                    Responsible                  Target Date
                                                                   Agency/Person
   1.   Confirm the Aide Memoire                                   P&DD supported by         20 Aug 2009
                                                                   PMU

   2.   Implement SP2 prior actions                                All        implementing   As per policy matrix
                                                                   agencies coordinated by   and action plan
                                                                   P&DD and PMU

   3.   Recruiting consultants as per the TA requirement tables    ADB with timely           By August2009 in
                                                                   concurrence of GOS        most cases

   4.   Fully staff PPP Unit                                       Finance Department        Sept 2009

   5.   Fully staff PMU                                            P&DD                      Sept 2009

   6.   Fully staff M&E Wing and procurement hardware              P&DD                      Sept 2009

   7.   Appoint the Project Director and recruit consulting firm   BOR                       Aug 2009

   8.   Establishing the SGARRP web page                           P&DD supported by         Sept 2009
                                                                   PMU
                                                                           22


                                           VII. Next steps

 2.     The tentative SP2 processing schedule is as follows:

       GOS confirmation of the Aide Memoir                15 Aug 2009
       Fact Finding Mission                               September 2009
       First Management Review Meeting                    October 2009
       Appraisal                                          November 2009
       Second Management Review Meeting                   December 2009
       Loan Negotiations                                  January 2010
       Board Consideration                                February 2010




Emma Xiaoqin Fan
Mission Leader/Senior Economist (Public Financial Management)
Financial Sector, Public Management, and Trade Division
Central and West Asia Department
                                                                                                                    23

 APPENDIX 1:

                                       POLICY MATRIX FOR
                       THE SINDH GROWTH AND RURAL REVITALIZATION PROGRAM
Impact: Higher and sustained economic growth, and reduced poverty and rural-urban inequality in Sindh

Outcome: Greater private sector participation and improved public expenditure management for the province as a
whole, and particularly in rural Sindh

                                                                                        Medium-term program
                   Summary of recent actions          Indicative triggers for
                                                                                               direction
  Objectives       (Apr 2007-Dec 2008) under       subprogram 2 (January 2009
                                                                                      (Basis for subprogram 3)
                         subprogram 1                    to – June 2010)
                                                                                       (July 2010 – Dec. 2011)
 Core Policy Area 1: Promote private sector participation
 Promote        1.1 FD to have prepared a       PPP Unit to be fully staffed        PPP risk management unit
 private and         concept paper outlining a  and operational                     established; and director and
 public              framework for developing                                       core professional staff
 partnerships        provincial PPPs and for    GoS to update PPP policy,           recruited
                     establishing a PPP Unit    enact PPP law, adopt PDF
                                                guidelines, and inject seed         Risk Management Unit to
                1.2 GoS to have notified the    capital in the PDF                  develop an integrated record
                     establishment of a Public                                      keeping and analysis system
                     Enterprise Working Group, PPP Unit to adopt detailed           of contingent liabilities
                     and FD to have assessed    PPP operational guidelines
                     past financial performance                                     Finance     Department     to
                     of public enterprises      Cabinet to approve an               develop a record of existing
                                                improved governance structure       guarantees, both on PPP and
                1.3 GoS to have committed to    for managing industrial sites,      non-PPP projects
                     introduce private          learning from the Punjab and
 Improve             management into or to      international good practices, to    FD to commission an
 efficiency of       divest the Sindh Small     enhance site's financial            independent assessment of
 public              Industrial Estate          viability, lessen government        the commercial rigor and risk
 enterprises         Corporation, Sindh         interference, and improve           sharing arrangements of PPP
                     Industrial Trading Estate  efficiency                          projects to date; and improve
                     Company, Sindh Seed                                            the PPP frameworks based on
                     Corporation, and Sindh     GOS to implement the                the assessment
                     Agricultural Market        improved governance structure
                     Committees; and to have    for the Sindh Industrial and        PPP Unit to analyze
                     taken steps to review and  Trading Company                     international experience in
                     identify options for doing                                     applying rules requiring
                     so                                                             recourse to PPP modalities in
                                                                                    public investments exceeding
                                                                                    a certain threshold, and
                                                                                    recommend its applicability in
                                                                                    Sindh

 Core Policy Area 2: Improve public expenditure management
 Improve        2.1 GoS to have formed a           GoS to achieve an ongoing-to-    GoS to achieve a ratio of
 efficiency of        Budget Ceiling Committee new-scheme-ratio of 70:30 or         ongoing to new schemes of
 public               to recommend the budget      more in strategic sectors and    75:25 or more
 investment           ceilings for each line       an overall 60:40 ratio for the
                      department, and P&DD to overall ADP                           P&DD to review the ADP
                      have notified departments                                     approval ceiling by DDWP,
                      that the Committee will      Twice tokenized projects         P&DD, and PDWP with a view
                      recommend ADP ceilings       cancelled (see 2.2 of SP1)       to devolving more authority to
                      for FY 2009/10 by            starting from budget for FY      departments and increase
                      December 2008 and            2009/10                          their ceiling of approval
                      instructed departments to
                      prioritize proposals in line Departments to secure            GoS to integrate current and
                      with budget ceilings         approvals for at least 70% of    development, annual and



                                                        23
                                                                                                                    24

                                                                                           Medium-term program
                  Summary of recent actions            Indicative triggers for
                                                                                                  direction
 Objectives       (Apr 2007-Dec 2008) under         subprogram 2 (January 2009
                                                                                         (Basis for subprogram 3)
                        subprogram 1                      to – June 2010)
                                                                                          (July 2010 – Dec. 2011)
                                                    new schemes by Sept 2009          medium term frameworks, and
                 2.2 P&DD to have issued a          and 100% of new schemes by        introduce outputs and
                     standing instruction to line   November 2009, and cancel or      outcome based budgeting in at
                     departments to cancel all      include schemes approved          least 2 departments
                     projects that received         after October 2009 in the ADP
                     token allocations or have      of FY2010/11                      P&DD adopt a system of
                     not been approved for 2                                          including in ADP only projects
                     consecutive years,             P&DD to establish a project       with feasibility studies
                     starting from budget for       feasibility study fund and        conducted
                     FY 2009/10                     moving to a system of
                                                    including in ADP only projects
                 2.3 P&DD to have issued a          with feasibility studies
                     standing instruction           conducted
                     requiring departments
                     from FY 2009/10 onwards        P&DD to review the ADP
                     to secure approvals for        systems and procedures and
                     new schemes to be              amend the planning manual
                     included in the current FY     accordingly
                     ADP by 30 April of such
                     FY, and to consider            The Budget Ceiling Committee
                     schemes approved after         to recommend the global limit
                     30 April as new schemes        for both the current and
                     in the next FY                 development budgets for each
                                                    line department for FY
                 2.4 P&DD to have excluded          2009/10 and line departments
                     from the FY2008/09 ADP         to implement the ceilings
                     those schemes that had
                     zero utilization of funds      GoS to activate the Assembly
                     during the previous FY                                           Sector specific budget ceilings
                                                    Standing Committees in key
                                                                                      and key schemes for
                                                    sector, including health,
                                                                                      FY2010/11 to be approved by
                                                    education, water supply and
                                                                                      Assembly Standing
                                                    sanitation, works and services,
                                                                                      Committees
                                                    irrigation and power,
                                                    agriculture, and industry; and
                                                    finance Department and
                                                    Planning and Development
                                                    Department to carry out
                                                    structured and regular pre-
                                                    budget consultations with the
                                                    Assembly Standing
                                                    Committees on strategic
                                                    direction, sector budget
                                                    ceilings, and budget
                                                    allocations across projects and
                                                    functions; and institutionalize
                                                    this practice

Improve          2.5 P&DD to have initiated         M&E Wing staffed as per the       P&DD and line departments to
monitoring           actions to adopt the           organogram in the planning        adopt and be connected
and evaluation       computerized M&E               commission pro-forma              through an integrated
                     framework developed by         approvals                         computerized result based
                     GoP                                                              M&E framework, and
                                                    P&DD and line departments to      information for all ADP
                                                    put into operation result based   schemes input in the system
                                                    M&E framework; and
                                                    information for at least 50       P&DD to complete Third Party
                                                    schemes input into the M&E        Evaluation for at least 20



                                                          24
                                                                                                                      25

                                                                                          Medium-term program
                 Summary of recent actions            Indicative triggers for
                                                                                                 direction
 Objectives      (Apr 2007-Dec 2008) under         subprogram 2 (January 2009
                                                                                        (Basis for subprogram 3)
                       subprogram 1                      to – June 2010)
                                                                                         (July 2010 – Dec. 2011)
                 2.6 P&DD to have reviewed 5       database                           ongoing ADP schemes
                     randomly selected                                                completed over the past 2
                     projects that suffered from   GOS to develop and approve         years (half of which represent
                     delays in execution to        an action plan for restructuring   large projects) and publish the
                     identify systematic           the Sindh Bureau of Statistics     reports
                     blockages                     to enable the government to
                                                   monitoring development             GoS to promulgate, rules and
                                                   results and make informed          procedures to institutionalize
                                                   decisions                          third party evaluations and
                                                                                      publishing of results

                                                                                      GOS to restructure the Sindh
                                                                                      Bureau of Statistics based on
                                                                                      the action plan

Improve audit    2.7 Departments of                DAC meetings held as               All departments to have
compliance,          Agriculture, Livestock and    scheduled in Departments of        reduced backlog to 3 fiscal
legislative          Fisheries, Irrigation and     Agriculture, Livestock and         years or less
oversight, and       Power, and Works and          Fisheries, Irrigation and
internal             Services to have              Power, and Works and               DACs to meet as specified in
control              committed to hold DAC         Services; and these                the calendar
                     meetings at least             departments to reduce audit
                     quarterly, and to settle or   backlog as planned                 Service and General
                     refer to public accounts                                         Administration Department to
                     committee advance and         Public accounts committee to       improve moveable asset
                     draft audit observations      meet regularly                     record maintenance system
                     for FY2004/5 and                                                 and established a computer
                     FY2005/06 by Dec 2008,        Sindh PPRA Law enacted and         based movable asset
                     and for FY2006/07 and         the Authority adequately           management system
                     FY2007/2008 by                staffed. Draft PPRA rules
                     December 2009. Such           developed; GoS to implement        Line departments to adopt a
                     departments to have           PPRA rules and sub-                computer based moveable
                     scheduled DAC meetings        legislations to replace the        asset management system
                     for FY2008/09                 Purchase Manual                    with records reconciled, and
                                                                                      list of assets posted on
                 2.8 Provincial Assembly           PPRA to post all tenders on        departments’ website
                     Secretariat to have           the procurement website
                     notified the establishment                                       Procurement by all line
                     of the new public                                                departments to be subject to
                     accounts committee                                               PPRA rules and sub legislation
                                                                                      with purchase manual
                                                                                      completely phased out

                                                                                      Sindh PPRA to post
                                                                                      departmental annual
                                                                                      procurement plans based on
                                                                                      the approved planning
                                                                                      commission pro-forma
                                                                                      approvals and the current
                                                                                      allocations

                                                                                      PPRA to post all tenders and
                                                                                      all purchase orders raised
                                                                                      against these tenders on
                                                                                      website, giving item
                                                                                      description, quantities, unit
                                                                                      prices and order value




                                                         25
                                                                                                                       26

                                                                                             Medium-term program
                  Summary of recent actions           Indicative triggers for
                                                                                                    direction
 Objectives       (Apr 2007-Dec 2008) under        subprogram 2 (January 2009
                                                                                           (Basis for subprogram 3)
                        subprogram 1                     to – June 2010)
                                                                                            (July 2010 – Dec. 2011)
Improve           2.9 For FY 2007-08, FD to        For FY 2008/09, FD to have           For FY 2009/10, FD to have
financing of          have transferred PRs3        transferred PRs3 billion to          transferred PRsx billion to
employee              billion to Sindh Pension     Sindh Pension Fund and PRs2          Sindh Pension Fund and PRsx
benefits:             Fund and PRs2 billion to     billion to SGIPF from the GoS        billion to SGIPF from the GoS
pensions,             SGIPF, all from the GoS      budget and adoption of               budget in line with financing
GPF,                  budget                       financing strategy from FY           strategy
benevolent                                         2009-10 onwards
fund, group
life and other    2.10 FD to have prepared a       FD to establish a                    Fund Management House to
death benefits        draft strategy and action    professionally managed               be fully operational
                      plan for the establishment   investment unit for SPF and
                      of a Fund Management         SGPIF and submission of
                      House                        Sindh Fund Management
                                                   House Act to Provincial
                                                   Assembly

Improve           2.11 FD and Accountant           Employee Benefit                     Employee Benefit
record-               General of Sindh Office to   Administration Task Force to         Administration Task Force to
keeping,              have established an          confirm the accuracy and             review and report on
administration,       Employee Benefit             timeliness of data entry for [all]   implementation of revised
and service           Administration Taskforce     civil servants, pensioners, and      procedures and business
delivery of                                        wage history records in the          processes
pensions and                                       SAP/R3 payroll, pension and
other                                              general provident fund
employee          2.12 Accountant General,         modules
benefits              Sindh to have completed
                      data entry for at least:     Employee Benefit                     FD to put into operation the
                     156,000 civil servants in    Administration Task Force to         new design of service delivery
                      the SAP/R3 payroll           recommend changes in                 of employee benefits
                      module;                      procedures and business
                     24,000 pensioners in the     processes to accommodate
                      SAP/R3 pension module;       transition from paper-based to
                      and                          automated system
                     29,000 wage history
                      records in the SAP/R3        FD to determine the optimal
                      GPF module                   design for service delivery of
                                                   employee benefits

Improve                                            FD to complete a diagnostic          GoS to propose policy reform
pension and                                        study of existing employee           of pension and other employee
other                                              benefit package and                  benefits
employee                                           recommend reform, supported
benefits policy                                    by actuarial estimates of
                                                   reform options

                                                   FD to create an actuarial cell
                                                   to develop capacity for
                                                   financial analysis of pension
                                                   and other employee benefits
                                                   reform

Core Policy Area 3: Revitalize the Rural Economy
Institutionalize 3.1 GoS to have established   The Executive Committee                  The Executive Committee
GoS                  an Executive Committee    chaired by the Chief Secretary           chaired by the Chief Secretary
commitment           chaired by the Chief      to guide the rural recovery              to guide the rural recovery
to rural             Secretary to formulate    agenda and implementation of             agenda and implementation of
revitalization       and recommend rural       SGARRP                                   SGARRP
                     revitalization strategic



                                                         26
                                                                                                                      27

                                                                                       Medium-term program
                Summary of recent actions           Indicative triggers for
                                                                                              direction
 Objectives     (Apr 2007-Dec 2008) under        subprogram 2 (January 2009
                                                                                     (Basis for subprogram 3)
                      subprogram 1                     to – June 2010)
                                                                                      (July 2010 – Dec. 2011)
                    directions and reform
                    agenda

Increase and    3.2 P&DD to have prepared a      FD to include the Agriculture,    GOS to implement the MTFF
sustain rural       draft public sector rural    Livestock and Fisheries,          which increases provincial
investment          investment plan for inter-   Irrigation and Power sectors      public investment in rural
                    departmental consultation    into the Medium Term Fiscal       areas by at least 15% per
                                                 Framework for FY 2009-12          annum between FY 2010/11 -
                                                 which commits to increase         FY 2011/12
                                                 provincial public investment in
                                                 rural areas by at least 15% per
                                                 annum between FY 2010/11 -
                                                 FY 2011/12

                3.3 GoS to have increased        GoS to have increased the         GoS continue to increase ADP
                    the FY2008/09 ADP            FY2009/10 ADP allocation for      allocation for rural areas for
                    allocation for rural areas   rural areas by at least 15%       2010/2011
                    by at least 15% from the     from the previous FY
                    previous FY, and
                    committed to increase
                    provincial public
                    investment in rural areas
                    by at least 15% per
                    annum between FY
                    2009/10 - FY 2010/11

Improve land    3.4 GoS to have approved         BOR to develop and land           GoS to roll out land record
records             planning commission pro-     record computerization            computerization as outlined in
                    forma approvals for          Steering Committee to             the 3 PC-is.
                    carrying out preservation    approve an action plan on land
                    of records,                  record computerization
                    computerization, and                                           GoS to provide funds and BoR
                    development of               BoR’s program management          to fast track regularization of
                    geographic information       unit fully staffed and            villages and issuance of titles
                    system of land records       operational; and consultancy      in all eligible village
                                                 firm selected                     settlements
                3.5 BoR to have commenced
                    recruitment of the           BoR to complete
                    program management           implementation of land record     GoS to amend relevant law
                    unit Project Director and    computerization pilot, review     and rules to facilitate the land
                    management consultants       results, and expand               record computerization base
                    for the computerization of   implementation to at least X      on legal advice
                    land records and             XX
                    establishment of the land
                    administration and           BoR to complete survey and
                    revenue management           mapping in 11 rural towns by
                    information system           December 2009

                3.6 BoR to have obtained a
                    legal opinion from the
                    Law Department
                    regarding the legal status
                    of computer generated
                    title deeds, mutations
                    (transfers), e-Pass Books,
                    and other related changes




                                                       27
                                                                                                                     28

                                                                                           Medium-term program
                   Summary of recent actions            Indicative triggers for
                                                                                                   direction
 Objectives        (Apr 2007-Dec 2008) under         subprogram 2 (January 2009
                                                                                         (Basis for subprogram 3)
                         subprogram 1                      to – June 2010)
                                                                                          (July 2010 – Dec. 2011)
Eliminate         3.7 GoS to have undertaken         GoS to repeal the Sindh           GoS to continue to expand the
market                a review to identify ways      Agricultural Produce Market       role of the private sector in
distortions and       of enabling private sector     Act (1939) and enact a new        rural sectors through further
barriers to           management or                  Agricultural Wholesale Market     reduction of regulatory barriers
private sector        divestment of                  Law to dismantle barriers of
entry                 government-owned               entry
                      agriculture markets, and
                      establishing markets           GOS to transfer management
                                                     of the government owned
                  3.8 Agriculture Department to      agricultural markets to
                      have submitted to CM a         stakeholder elected
                      summary for amending or        management committees
                      repealing the Sindh            which will manage the markets
                      Agricultural Produce           on a financially viable basis
                      Markets Act (1939) to
                      eliminate restrictions         GOS to amend the Seed Act to
                      limiting private sector’s      enable increased private
                      establishment in and           sector participation
                      management of
                      wholesale and bulk
                      markets

Enter into        3.9 GoS to have expanded           GoS to expand the primary         GoS to adopt and apply
partnerships          the primary health care        health partnership under PPHI     rigorous PPP procedures in
for service           management partnership         to all districts                  outsourcing primary health
delivery and          for managing BHUs under                                          service delivery through a
rural                 PPHI from 10 to 16             GoS to approve appropriate        transparent and competitive
empowerment           districts                      funding formula for PPHI to       bidding process and signing of
with non-                                            ensure adherence to the           contracts
governmental      3.10 Health Department to          agreed service and technical
organizations         have notified minimum          standards, Finance
                      service delivery standards     Department to link provision of   GOS to adopt citizen's
                      to be adopted by PPHI in       funds with the approved           reporting cards in all BHUs
                      BHUs                           funding formula                   and RHCs
Enhance
citizens’         3.11 GoS to have taken steps    GoS to conduct citizen
voices through         to enter into a partnershipsatisfaction survey on service
regular                with a consortium of       delivery by public, private, and
citizens’              NGOs to carry out rural    NGO service providers,
satisfaction           empowerment and social     publish the survey results, and
surveys                mobilization programs      base the decision to extend
                                                  the management contracts on
                                                  the survey results
ADP = annual development plan, BHU = basic health unit, BOR = Board of Revenue, CM = chief minister, DAC =
development accounts committee, FD = Finance Department, FY = fiscal year, GoS = government of Sindh, M&E =
monitoring and evaluation, NGO = non-government organization, P&DD = Planning and Development Department,
PPHI = People’s Primary Health Initiative, PPP = public-private partnership, PPRA = Public Procurement Regulatory
Authority, RTF = Rural Revitalization Task Force, SAP = standard accounting procedures, SGIPF = Sindh General
Investment Provident Fund, SPF = Sindh Pension Fund.
Source: Asian Development Bank.




                                                           28
                                                                                                                                                        29


APPENDIX 2:

                                                      ACTION PLAN FOR THE SUBPROGRAM 2
                                             THE SINDH GROWTH AND RURAL REVITALIZATION PROGRAM

                  Indicative triggers        Actions          Deadlines for        Documents    Actions Required        Responsible      Documents from
                   for subprogram 2       Required from       ADB Actions           from ADB        from GOS            Agencies and         GOS
  Objectives
                    (Nov 2008 – Apr           ADB                                                                        Deadlines
                         2010)
Core Policy
Area 1:
Promote
private sector
participation
Promote private   PPP Unit to be fully                                                          Fully staff PPP unit   FD: August 2009   PPP Unit
and public        staffed and                                                                                                            organogram
partnerships      operational
                                                                                                                                         PPP Unit staff job
                                                                                                                                         description

                                                                                                                                         PPP Unit staff
                                                                                                                                         names and titles
                                                                                                                                         in line with
                                                                                                                                         orgaogram
                  GoS to update PPP      Hire consultants    August 2009       Refined PPP      Review, finalize,      FD: August 2009   PPP policy
                  policy, enact PPP      as per TA                             policy           and adopt the
                  law, adopt PDF         requirement table                                      frameworks                               PDF guidelines
                  guidelines, and
                  inject seed capital                                          PDF guidelines                                            Budget allocation
                  in the PDF                                                                                                             for PDF
                                                                               PPP law
                                                                                                                                         PPP law

                                                                                                                                         All above
                                                                                                                                         approved by
                                                                                                                                         competent
                                                                                                                                         authorities




                                                                              29
                                                                                                                                                          30

                 Indicative triggers        Actions          Deadlines for        Documents    Actions Required       Responsible       Documents from
                  for subprogram 2       Required from       ADB Actions           from ADB        from GOS           Agencies and          GOS
  Objectives
                   (Nov 2008 – Apr           ADB                                                                       Deadlines
                        2010)
                 PPP Unit to adopt      Hire consultants    August 2009       PPP guidelines   Review, finalize,     PPP Unit:          Guidelines
                 detailed PPP           as per TA                                              and adopt the         December 2009      approved by the
                 operational            requirement table                                      guidelines                               PPP unit (?)
                 guidelines


                 Cabinet to approve     Hire resource       August 2009                        Ensure consultants    Industries Dept    New legal
                 an improved            persons                                                recommendations       in coordination    documents and
                 governance                                                                    are reviewed,         with P&DD and      management
                 structure for                                                                 finalized, and        FD: Sept 2009      structures
                 managing industrial                                                           implemented                              approved by
                 sites, learning from                                                                                                   Cabinet
                 the Punjab and
                 international good
                 practices, to
                 enhance site's
                 financial viability,
                 lessen government
                 interference, and
                 improve efficiency

Improve          GOS to implement                                                              Establish new         Industries Dept:   New Board and
efficiency of    the improved                                                                  oversight and         Nov. 2009          management in
public           governance                                                                    management                               place
enterprises      structure for the                                                             structure
                 Sindh Industrial and
                 Trading Company

Core Policy
Area 2:
Improve public
expenditure
management
Improve          GoS to achieve an                                                             Prepare new ADP       P&DD:              Updated ADP
efficiency of    ongoing-to-new-                                                               reflecting designed   FY2009/10          consistent with
public           scheme-ratio of                                                               ratios                budget             the ratios
investment       70:30 or more in
                 strategic sectors                                                                                                      Plans and
                 and an overall                                                                                                         implementation of
                 60:40 ratio for the                                                                                                    actions on long




                                                                             30
                                                                                                                                               31

             Indicative triggers         Actions       Deadlines for        Documents   Actions Required       Responsible     Documents from
              for subprogram 2        Required from    ADB Actions           from ADB       from GOS           Agencies and        GOS
Objectives
               (Nov 2008 – Apr            ADB                                                                   Deadlines
                     2010)
             overall ADP                                                                                                       hanging and
                                                                                                                               nonperforming
                                                                                                                               schemes




             Twice tokenized                                                            Prepare new ADP       P&DD:            Updated ADP
             projects cancelled                                                         reflecting designed   FY2009/10        consistent with
             (see 2.2 of SP1)                                                           ratios                budget           the prior actions
             starting from
             budget for FY
             2009/10




             Departments to                                                             P&DD to obtain        P&DD: 20 Aug     ADP approval
             secure approvals                                                           CM's approval on      2009             information
             for at least 70% of                                                        this requirement
             new schemes by
             Sept 2009 and
             100% of new
             schemes by                                                                 Departments           70%: September
             November 2009,                                                             implement this
             and cancel or                                                              requirement           100%: November
             include schemes
             approved after
             October 2009 in the
             ADP of FY2010/11
             s
             P&DD to establish                                                          (i) Establish the     Completed?       Information of the
             a project feasibility                                                      fund                                   fund (?)
             study fund and
             moving to a system                                                                               August 2009
             of including in ADP                                                        (ii) Obtain CM's
             only projects with                                                         summary requiring                      CM's approval
             feasibility studies                                                        depts. to carry out
             conducted                                                                  feasibility studies

             P&DD to review the      Recruit          August 2009                       Review consultant     September        Consultant



                                                                       31
                                                                                                                                              32

             Indicative triggers         Actions      Deadlines for        Documents   Actions Required         Responsible    Documents from
              for subprogram 2        Required from   ADB Actions           from ADB       from GOS             Agencies and       GOS
Objectives
               (Nov 2008 – Apr            ADB                                                                    Deadlines
                    2010)
             ADP systems and         consultant                                        report and                              reports
             procedures and                                                            recommendation
             amend the planning
             manual accordingly                                                        Revise the Planning
                                                                                       Manual
                                                                                                               October         Revised planning
                                                                                                                               manual
             The Budget Ceiling                                                        Decisions of budget     Completed (?)   Minutes of budget
             Committee to                                                              ceiling committees                      ceiling committee
             recommend the                                                                                                     meetings
             global limit for both
             the current and
             development                                                                                                       Information on
             budgets for each                                                                                                  budget ceilings
             line department for                                                                                               by each
             FY 2009/10 and                                                                                                    departments
             line departments to
             implement the
             ceilings

             GoS to activate the                                                       Activate the            Assembly:       Notification
             Assembly Standing                                                         Assembly Standing       August 2009
             Committees in key                                                         Committees in key
             sector, including                                                         sector, including
             health, education,                                                        health, education,
             water supply and                                                          water supply and
             sanitation, works                                                         sanitation, works
             and services,                                                             and services,
             irrigation and                                                            irrigation and power,
             power, agriculture,                                                       agriculture, and
             and industry                                                              industry




                                                                      32
                                                                                                                                                   33

                 Indicative triggers        Actions      Deadlines for        Documents    Actions Required        Responsible    Documents from
                  for subprogram 2       Required from   ADB Actions           from ADB        from GOS            Agencies and       GOS
  Objectives
                   (Nov 2008 – Apr           ADB                                                                    Deadlines
                          2010)
                 Finance                                                                  At least 3 pre-         FD and P&DD:    Minutes of the
                 Department and                                                           budget consultation                     meetings
                 Planning and                                                             with the committees     TBD on the
                 Development                                                              on ceilings and key     sessions
                 Department to                                                            schemes
                 carry out structured
                 and regular pre-
                 budget
                 consultations with
                 the Assembly                                                             Revised
                 Standing                                                                 SOP/manuals to
                 Committees on                                                            institutionalize this   Revise the      Revised
                 strategic                                                                practice                SOP/Manual      SOP/Manual
                 allocations,
                 sectorial budget
                 ceilings and key
                 schemes, and
                 institutionalize this
                 practice

                 Sector specific                                                          Approve the ceilings    Standing        Minutes of the
                 budget ceilings and                                                                              committees:     meetings
                 key schemes for
                 FY2010/11 to be                                                                                  October
                 approved by
                 Assembly Standing
                 Committees

Improve          M&E Wing staffed                                                         Hire and train          August 2009     M&E organogram
monitoring and   as per the                                                               technical staff and                     and training
evaluation       organogram in the                                                        procure hardware                        documents
                 planning
                 commission pro-
                 forma approvals




                                                                         33
                                                                                                                                                  34

                   Indicative triggers         Actions       Deadlines for        Documents   Actions Required      Responsible      Documents from
                    for subprogram 2        Required from    ADB Actions           from ADB       from GOS          Agencies and         GOS
  Objectives
                     (Nov 2008 – Apr            ADB                                                                  Deadlines
                           2010)
                   P&DD and P&DD           Recruitment      August 2009                       Transfer software    September 2009    Operationalized
                   and line                consultant to                                                                             computer based
                   departments to          transfer                                           Train staff                            M&E framework
                   operationalize          Software                                                                                  for P&DD and
                   result based M&E        adaptation                                         Database designed                      key line
                   framework; and                                                             and implemented                        departments
                   information for at                                                         for 30% of new       October 2009
                   least 50 schemes                                                           projects
                   input into the M&E
                   database

                   GOS to develop           Recruit         August 2009                       Develop an action                      Time bound plan
                   and approve an          consultant                                         plan                 June 2009         to be approved
                   action plan for                                                                                                   by CM
                   restructuring the
                   Sindh Bureau of
                   Statistics to enable
                   the government to
                   monitoring
                   development
                   results and make
                   informed decisions


Improve audit      DAC meetings held                                                          Quarterly meetings   DACs: Quarterly   Minutes of
compliance,        as scheduled in                                                                                                   meetings
legislative        Departments of
oversight, and     Agriculture,
internal control   Livestock and
                   Fisheries, Irrigation
                   and Power, and
                   Works and
                   Services




                                                                             34
                                                                                                                                             35

             Indicative triggers        Actions         Deadlines for        Documents    Actions Required      Responsible    Documents from
              for subprogram 2       Required from      ADB Actions           from ADB        from GOS          Agencies and       GOS
Objectives
               (Nov 2008 – Apr           ADB                                                                     Deadlines
                    2010)
             Departments of                                                               Reduced audit         As per plan    Minutes
             Agriculture,                                                                 observation as                       endorsed by the
             Livestock and                                                                agreed in SP1                        PAC
             Fisheries, Irrigation
             and Power, and
             Works and                                                                                                         Reduced audit
             Services to reduce                                                                                                backlogs as
             audit backlog as                                                                                                  planned
             planned



             Public accounts         Capacity           May 2009             TA outputs   Establish meeting     June 2009      Meeting
             committee to meet       building support                                     schedule                             schedule
             regularly                                                                    consistent with
                                                                                          clearing backlog                     Endorsed Audit
                                                                                                                               Observation
                                                                                                                               reports
                                                                                          Improved PAC
                                                                                          functions and                        Document
                                                                                          capacity                             showing
                                                                                                                               improved PAC
                                                                                                                               functions
             Sindh PPRA Law                                                               Enact PPRA law        May 2009       Law
             enacted and the
             Authority
             adequately staffed.                                                          Approve PPRA
             Draft PPRA rules                                                             rules and sub-
             developed; GoS to                                                            legislations          Nov. 2009      Rules
             implement PPRA
             rules and sub-
             legislations to
             replace the
             Purchase Manual

             PPRA to post all                                                             Post all tenders on   Ongoing        Website
             tenders on the                                                               the web                              information
             procurement
             website




                                                                        35
                                                                                                                                                                          36

                   Indicative triggers        Actions              Deadlines for           Documents      Actions Required        Responsible            Documents from
                    for subprogram 2       Required from           ADB Actions              from ADB          from GOS            Agencies and               GOS
  Objectives
                     (Nov 2008 – Apr           ADB                                                                                 Deadlines
                           2010)
Improve            2.13 For FY 2007-      For FY 2008/09,         For FY 2009/10,      Improve            2.15 For FY 2007-      For FY 2008/09,         For FY 2009/10,
financing of            08, FD to have    FD to have              FD to have           financing of            08, FD to have    FD to have              FD to have
employee                transferred       transferred PRs3        transferred PRsx     employee                transferred       transferred PRs3        transferred PRsx
benefits:               PRs3 billion to   billion to Sindh        billion to Sindh     benefits:               PRs3 billion to   billion to Sindh        billion to Sindh
pensions, GPF,          Sindh Pension     Pension Fund            Pension Fund         pensions, GPF,          Sindh Pension     Pension Fund            Pension Fund
benevolent              Fund and          and PRs2 billion        and PRsx billion     benevolent              Fund and PRs2     and PRs2 billion        and PRsx billion
fund, group life        PRs2 billion to   to SGIPF from           to SGIPF from        fund, group life        billion to        to SGIPF from           to SGIPF from
and other death         SGIPF, all        the GoS budget          the GoS budget       and other death         SGIPF, all from   the GoS budget          the GoS budget
benefits                from the GoS      and adoption of         in line with         benefits                the GoS budget    and adoption of         in line with
                        budget            financing               financing                                                      financing               financing strategy
                                          strategy from FY        strategy                                                       strategy from FY
                                          2009-10 onwards                                                 2.16 FD to have        2009-10 onwards
                   2.14 FD to have                                                                            prepared a                                 Fund
                       prepared a         FD to establish a       Fund                                        draft strategy     FD to establish a       Management
                       draft strategy     professionally          Management                                  and action plan    professionally          House to be fully
                       and action plan    managed                 House to be fully                           for the            managed                 operational
                       for the            investment unit         operational                                 establishment      investment unit
                       establishment      for SPF and                                                         of a Fund          for SPF and
                       of a Fund          SGPIF and                                                           Management         SGPIF and
                       Management         submission of                                                       House              submission of
                       House              Sindh Fund                                                                             Sindh Fund
                                          Management                                                                             Management
                                          House Act to                                                                           House Act to
                                          Provincial                                                                             Provincial
                                          Assembly                                                                               Assembly

Improve record-    2.17 FD and            Employee                Employee             Improve record-    2.19 FD and            Employee                Employee Benefit
keeping,               Accountant         Benefit                 Benefit              keeping,               Accountant         Benefit                 Administration
administration,        General of         Administration          Administration       administration,        General of         Administration          Task Force to
and service            Sindh Office to    Task Force to           Task Force to        and service            Sindh Office to    Task Force to           review and report
delivery of            have               confirm the             review and report    delivery of            have               confirm the             on
pensions and           established an     accuracy and            on                   pensions and           established an     accuracy and            implementation of
other employee         Employee           timeliness of data      implementation       other employee         Employee           timeliness of data      revised
benefits               Benefit            entry for [all] civil   of revised           benefits               Benefit            entry for [all] civil   procedures and
                       Administration     servants,               procedures and                              Administration     servants,               business
                       Taskforce          pensioners, and         business                                    Taskforce          pensioners, and         processes
                                          wage history            processes                                                      wage history
                                          records in the                                                                         records in the
                                          SAP/R3 payroll,                                                                        SAP/R3 payroll,
                                          pension and                                                                            pension and
                                          general provident                                                                      general provident       FD to put into


                                                                                      36
                                                                                                                                                           37

                  Indicative triggers       Actions          Deadlines for          Documents     Actions Required       Responsible        Documents from
                   for subprogram 2      Required from       ADB Actions             from ADB         from GOS           Agencies and           GOS
  Objectives
                    (Nov 2008 – Apr          ADB                                                                          Deadlines
                         2010)
                                        fund modules        FD to put into                                              fund modules        operation the new
                  2.18 Accountant                           operation the                         2.20 Accountant                           design of service
                      General, Sindh    Employee            new design of                             General, Sindh    Employee            delivery of
                      to have           Benefit             service delivery                          to have           Benefit             employee
                      completed         Administration      of employee                               completed data    Administration      benefits
                      data entry for    Task Force to       benefits                                  entry for at      Task Force to
                      at least:         recommend                                                     least:            recommend
                     156,000 civil     changes in                                                   156,000 civil     changes in
                      servants in the   procedures and                                                servants in the   procedures and
                      SAP/R3 payroll    business                                                      SAP/R3 payroll    business
                      module;           processes to                                                  module;           processes to
                     24,000            accommodate                                                  24,000            accommodate
                      pensioners in     transition from                                               pensioners in     transition from
                      the SAP/R3        paper-based to                                                the SAP/R3        paper-based to
                      pension           automated                                                     pension           automated
                      module; and       system                                                        module; and       system
                     29,000 wage                                                                    29,000 wage
                      history records   FD to determine                                               history records   FD to determine
                      in the SAP/R3     the optimal                                                   in the SAP/R3     the optimal
                      GPF module        design for                                                    GPF module        design for
                                        service delivery                                                                service delivery
                                        of employee                                                                     of employee
                                        benefits                                                                        benefits

Improve                                 FD to complete a    GoS to propose      Improve                                 FD to complete a    GoS to propose
pension and                             diagnostic study    policy reform of    pension and                             diagnostic study    policy reform of
other employee                          of existing         pension and         other employee                          of existing         pension and
benefits policy                         employee benefit    other employee      benefits policy                         employee benefit    other employee
                                        package and         benefits                                                    package and         benefits
                                        recommend                                                                       recommend
                                        reform,                                                                         reform,
                                        supported by                                                                    supported by
                                        actuarial                                                                       actuarial
                                        estimates of                                                                    estimates of
                                        reform options                                                                  reform options

                                        FD to create an                                                                 FD to create an
                                        actuarial cell to                                                               actuarial cell to
                                        develop capacity                                                                develop capacity
                                        for financial                                                                   for financial
                                        analysis of                                                                     analysis of


                                                                               37
                                                                                                                                                      38

                   Indicative triggers        Actions        Deadlines for        Documents   Actions Required        Responsible      Documents from
                    for subprogram 2       Required from     ADB Actions           from ADB       from GOS            Agencies and         GOS
  Objectives
                     (Nov 2008 – Apr           ADB                                                                     Deadlines
                          2010)
                                           pension and                                                               pension and
                                           other employees                                                           other employees
                                           benefits reform                                                           benefits reform

Core Policy
Area 3:
Revitalize the
Rural
Economy
Institutionalize   The Executive                                                              Meetings of the        Quarterly and     Minutes of
GoS                Committee chaired                                                          Execution              semi-annual       meetings
commitment to      by the Chief                                                               Committee              meetings
rural              Secretary to guide
revitalization     the rural recovery
                   agenda and
                   implementation of
                   SGARRP

Increase and       FD to include the                                                          Include Livestock      July 2009         Updated MTFF
sustain rural      Agriculture,                                                               and Fisheries,                           with these
investment         Livestock and                                                              Irrigation and Power                     relevant sectors
                   Fisheries, Irrigation                                                      sectors into the                         included
                   and Power sectors                                                          Medium Term Fiscal
                   into the Medium                                                            Framework for FY
                   Term Fiscal                                                                2009-12
                   Framework for FY
                   2009-12 which                                                              Commits to
                   commits to                                                                 increase provincial
                   increase provincial                                                        public investment in
                   public investment in                                                       rural areas by at
                   rural areas by at                                                          least 15% per
                   least 15% per                                                              annum between FY
                   annum between FY                                                           2010/11 - FY
                   2010/11 - FY                                                               2011/12
                   2011/12




                                                                             38
                                                                                                                                               39

               Indicative triggers        Actions       Deadlines for        Documents    Actions Required       Responsible    Documents from
                for subprogram 2       Required from    ADB Actions           from ADB        from GOS           Agencies and       GOS
  Objectives
                 (Nov 2008 – Apr           ADB                                                                    Deadlines
                       2010)
               GoS to have                                                               increase the           July 2009       Updated ADP
               increased the                                                             FY2009/10 ADP
               FY2009/10 ADP                                                             allocation for rural
               allocation for rural                                                      areas by at least
               areas by at least                                                         15% from the
               15% from the                                                              previous FY
               previous FY


Improve land   BOR to develop         Recruit          April 2009        Action plan     Review the action      August          Approved action
records        and land record        consultants                                        plan and adopt at                      plan by the
               computerization                                                           least part of the                      Steering
               Steering Committee                                                        recommendation                         Committee
               to approve an
               action plan on land
               record
               computerization




               BoR’s program                                                             Staff the PMU          July 2009       Staff and
               management unit                                                                                                  operational
               fully staffed and                                                         Appoint PD                             information of the
               operational; and                                                                                                 PMU and
               consultancy firm                                                          Recruit consultants                    consulting
               selected                                                                                                         services




                                                                        39
                                                                                                                                                   40

                  Indicative triggers          Actions        Deadlines for        Documents   Actions Required     Responsible    Documents from
                   for subprogram 2         Required from     ADB Actions           from ADB       from GOS         Agencies and       GOS
  Objectives
                    (Nov 2008 – Apr             ADB                                                                  Deadlines
                           2010)
                  BoR to complete          Hire 2            August 2009                       Implement the       October 2009    Implementation
                  implementation of        consultants to                                      piloting                            document
                  land record              work with BOR
                  computerization
                  pilot, review results,
                  and expand
                  implementation to
                  at least X XX


                  BoR to complete                                                              Complete survey     BOR: December
                  survey and                                                                                       2009            Implementation
                  mapping in 11 rural                                                                                              documents
                  towns by December
                  2009




Eliminate         GoS to repeal the        Provide a draft   July 2009         Draft new law   Work with
market            Sindh Agricultural       new law                                             consultants to
distortions and   Produce Market Act                                                           ensure timely
barriers to       (1939) and enact a                                                           implementation of
private sector    new Agricultural                                                             recommendation
entry             Wholesale Market
                  Law to dismantle
                  barriers of entry
                                                                                               Laws passed by
                                                                                               Assembly
                                                                                                                   August 2009     Approved laws




                                                                              40
                                                                                                                                                41

             Indicative triggers        Actions          Deadlines for        Documents   Actions Required     Responsible      Documents from
              for subprogram 2       Required from       ADB Actions           from ADB       from GOS         Agencies and         GOS
Objectives
               (Nov 2008 – Apr           ADB                                                                    Deadlines
                     2010)
             GOS to transfer                                                              Transfer            Within 1 month    Transfer
             management of the                                                            management          after enactment   documents
             government owned                                                                                 of the new law
             agricultural markets
             to stakeholder
             elected
             management
             committees which
             will manage the
             markets on a
             financially viable
             basis



             GOS to amend the       Revise the law      July 2009         Amended act     Work with
             Seed Act to enable                                                           consultants to
             increased private                                                            ensure timely
             sector participation                                                         implementation of
                                                                                          recommendation


                                                                                          Laws passed by                        Amended and
                                                                                          Assembly                              approved laws
                                                                                                              October 2009
                                    transaction
                                    advisory services   October 2009-
                                                        March 2010                        Transaction                           Completed
                                                                                          advisory services   October 2009-     transactions
                                                                                                              March 2010
                                                                                                              T




                                                                         41
                                                                                                                                                    42

                   Indicative triggers         Actions         Deadlines for        Documents   Actions Required      Responsible    Documents from
                    for subprogram 2        Required from      ADB Actions           from ADB       from GOS          Agencies and       GOS
  Objectives
                     (Nov 2008 – Apr            ADB                                                                    Deadlines
                           2010)
                   GoS to identify         Recruit a          Aug 2009                          Work with
                   other major             consultant                                           consultants to
                   regulatory barriers                                                          ensure timely
                   to private sector                                                            implementation of
                   participation in the                                                         recommendation
                   rural economy and
                   implement
                   measures to the         Consultant                                           Approve the action
                   barriers                produce a report   July 2009                         plan
                                           which                                                                     November 2009   Approved action
                                           incorporates an                                                                           plan
                                           action plan



Enter into         GoS to expand the                                                            Expand partnership   November        MOUs
partnerships for   primary health                                                               with PPHI            2009
service delivery   partnership under
and rural          PPHI to all districts
empowerment
with non-
governmental       GoS to approve                                                               Review, fine turn,   Oct 2009        Approved
                   appropriate funding                                                          and approve the                      standard and
organizations
                   formula for PPHI to                                                          standards and                        funding
                   ensure adherence                                                             funding mechanism                    mechanism by
                   to the agreed                                                                                                     the Chief Minister
                   service and
Enhance
                   technical
citizens’ voices
through regular    standards, Finance
citizens’          Department to link
                   provision of funds
satisfaction
                   with the approved
surveys
                   funding formula




                                                                               42
                                                                                                                                                       43

                 Indicative triggers        Actions         Deadlines for        Documents      Actions Required       Responsible      Documents from
                  for subprogram 2       Required from      ADB Actions           from ADB          from GOS           Agencies and         GOS
  Objectives
                   (Nov 2008 – Apr           ADB                                                                        Deadlines
                         2010)
                 GoS to conduct         Recruit           Aug 2009           Survey result     Review and            Nov 2009           Published survey
                 citizen satisfaction   consultants                          and report        comment on the                           in the website
                 survey on service                                                             survey
                 delivery by public,
                 private, and NGO       Carry out the
                 service providers,     survey            Aug-Nov. 2009                        Publish survey        Dec. 2009
                 publish the survey                                                            results in GOS
                 results, and base                                                             website
                 the decision to
                 extend the
                 management
                 contracts on the
                 survey results

ADP = annual development plan, BHU = basic health unit, BOR = Board of Revenue, CM = chief minister, DAC = development accounts committee, FD = Finance
Department, FY = fiscal year, GoS = government of Sindh, M&E = monitoring and evaluation, NGO = non-government organization, P&DD = Planning and
Development Department, PPHI = People’s Primary Health Initiative, PPP = public-private partnership, PPRA = Public Procurement Regulatory Authority, RTF =
Rural Revitalization Task Force, SAP = standard accounting procedures, SGIPF = Sindh General Investment Provident Fund, SPF = Sindh Pension Fund.
Source: Asian Development Bank.




                                                                            43
                                                                                                       44




             Appendix 3. Presentations Made during the Mission

                              Presentation by Mr. Cook, PPP Specialist

                                       Sindh PPP Law: An Overview

                                               Jacques Cook
                                          Peckar & Abramson, PC
                     Prepared for Asian Development Bank and the Government of Sindh.


                                               Why a Law?

                                         Reassure Investor Market
                                           Reassure Stakeholders
                                    Provide full legal Authority to Gov‟t
                                                Transparency
                                    Institutional framework within Gov‟t
                                  Avoid conflicts with Traditional Procurement.


                                       Components of PPP Framework

Legal certainty                          Sindh Public Procur Act, PPP law, SPPR 2009
Policy certainty                         PPP policy and guidelines on its implementation
Effective institutional arrangements             PPP network (PPP Policy Bd, PPP Unit, PPP Nodes, and
                                                 Risk Management)
Fair risk sharing                                Risk management policy
Adequate regulatory arrangements                 Initially regulation by contract, later independent
                                                 regulatory bodies
Full cost recovery                               Tariff setting and adjustment mechanisms, complemented
                                                 by viability gap funding (VGF)
Supplementary financial arrangements             Project Development Facility (PDF)
Pipeline of attractive PPP projects              Preparation and execution of pilot projects to start the
                                                 process




                                                    44
                                                                                                                                                45




                                 Some PPP Examples
                            Organisation set-up          Legal         Execution           Responsibility     Contract           Contracting
                                                                       Approval            for Tender         management         special
                                                                                           specification                         advisers
                            Centralised   PPP Unit (U)   PPP           Cabinet/political   Administrative     Administrative     Panel (P)
                            (C)                          Legislation   approval (C)        department (A)     department (A)
                            Steering      General        (L)                               Central Unit (C)                      Project
                            Committee     government     Guidelines    Administrative                         Central unit (C)   specific (S)
                            (SC)          (G)            (G)           approval (A)        Both (B)
                            Devolved                                                       Steering           Both (B)           Both (B)
                            (D)                                        Split on monetary   committee (SC)
             Jurisdiction                                              limits (S)
             Ireland        C             U              L/G           A                   B                  A                  B

             Greece         C             U              L/G           A                   B                  A                  B

             Western        SC            G              G             A                   SC                 A                  B
             Australia


             Queensland     SC            G              G             A                   SC                 A                  B
             (Australia)


             U.K.                         G              G             A                   A                  A                  S

             U.S.           D             G              G             A                   A                  A                  S

             India          SC                           L/G           S                   SC                 ?                  B

             South Africa   D             G              G             A                   A                  A                  B

             Philippines    SC            G              L             ?                   B                  A                  B




                                                          PPP Policy Statement

 WHEREAS it serves the public interest in rapid and sustainable economic and social development
  within the Province, to establish relationships with experienced and technically competent private
  sector companies interested in participating in the financing, design, construction, operation and
                         maintenance of public sector infrastructure projects,
 WHEREAS it has been demonstrated that where there exists an appropriate legal and regulatory
  framework, private sector participation in these activities can greatly reduce the life cycle costs of
    such projects, while simultaneously introducing innovative technologies and know-how which
       enhance the quality and efficiency of such projects and optimize their economic impact.


                                                         What is a PPP in Sindh?

    "Public Private Partnership" or “PPP” Agreement means a commercial contractual arrangement
    related to a Public Service Infrastructure Project , including but not limited to a concession between
    a public Agency and a private company for the provision of public services and/or public works by
                                         the private company where:
                  a substantial portion of the Risks related to the project have been transferred to the
                                          private company for the contract term; and
                     the private company receives compensation from a government or Agency, or
                          receives charges or fees paid by users or customers of the services, or some
                                                 combination of the foregoing


                                                  PPP in Sindh- „Infrastructure‟

   “Public Service Infrastructure Project” means any project normally managed, owned, regulated and
      controlled by the Government or Agency, including but not limited to roads, schools, hospitals,
               prisons, or any other facility providing public services using Public property.




                                                                           45
                                                                                                 46

                                     Value for Money

                  “Value for money” means the results of an appraisal by the
 Government or Agency of a public service infrastructure project which quantifies the net benefit to
the public derived from applying a PPP procurement modality compared to traditional public sector
                                          procurement;




                Institutional Arrangements
                                             PPP Policy Board




           Risk Management                          PPP
                 Unit                               Unit




                                     PPP            PPP           PPP
                                     Node           Node          Node




                                  Institutional Structure

                                     PPP Policy Board
                                       • Sets PPP Policy
                                • Approves PPP feasibility Studies.
                              • Designates projects as eligible for PPPs.
                               • Gives final approval of PPP Projects.
                             • Authorization to execute PPP Agreements
                                  • Oversees work of PPP Unit


                                         PPP Unit

                                      Reports to Board
                    Assists Board in formulating and implementing Policies.
                              Oversees Risk Management Unit.
           Develops human resources for PPP projects (training and technical advisor)
                    Conducts risk analysis with budgetary implications.


                                 Departmental PPP Node




                                            46
                                                                                                47

                              Establishes Cells for each PPP project.
                              
                              Conducts initial feasibility of PPP eligibility.
                              Refers projects to PPP Unit for VfM.
   PPP Unit directly or through PPP Nodes arranges to send PPP Policy Board for determination of
                                        PPP project eligibility.
                            Issues RFP and evaluates bids with TFEC




                         Flow of Project Activities
                   PROJECT PREPARATION                 TRANSACTION EXECUTION


         PPP
        Policy
        Board




         PPP
         Unit




       PPP Unit
         Risk
      Management




         PPP
        Nodes




                                    PPP and Government Support

                                Administrative support for PPP Projects.
                                    Provide property, or leases
                               Direct support from Viability Gap Facility.
                                Gov‟t Compensation for project risks
                                Subsidies or guarantees based on VfM.


                                         Unsolicited Proposals

                                      International best practices.
                                Encourage innovation in private sector
                          Proposer gets points in the evaluation of competitive bids.
                            No compensation allowed for development costs.


                                          Public Procurement



                                                  47
                                                                                              48

    Singh Public Procurement Regulatory Act and Sindh Public Procurement Rules apply.
                                      Open bidding.
                     Int‟l Competitive Bidding consistent with SPPR.
   Flexible contracting for consultants paid by private developers or reimbursed from PDF.




                                     Other Issues

                          Dispute Resolution. (ADR and Arbitration)

                           Termination Policy: Fair Compensation
                                   • Unilateral termination
                                 • Default by the government
                               • Default by the Project company
                                       • Force Majeure


                                    PPP To Do List

                                          Enact Law.
                                 Create and Staff a PPP Unit
                           Develop A Risk Management Capability
                           Develop a PPP Manual to guide Agencies
                                      Train Sindh Staff
                           Complete Standard Contract Models (*)
                                Shortlist Transaction Advisors




                                          48
                                                                                                   49



                 Presentation by Ms. Martha Kelly, Pension Specialist
                                Sindh Fund Management House
                                        Strategic Plan

                                       Presentation to the
     Boards of the Sindh Pension Investment Fund Sindh General Provident Investment Fund


                                    Purpose of Funds: GPF

 Historical approach: Employee subscriptions considered “revenue” and advances/final settlements as
                                              “expenditures”
           Immature scheme (growth in active employees exceeding growth in retirements): net
                          incomes resulted – passing financing burden onto future years
         Lack of assets resulted in interest rate determination being “notional” – caused windfall
                                 gains in some periods; negative returns in others
  Prudent approach: Employee subscriptions directed into separate Investment Fund from where
                                             benefits are paid
        Periods where subscriptions exceed benefits lead to creation of surplus monies from which
                     assets are purchased – these can be private sector or public sector assets
            Results in accurate and explicit and recognition of financial obligations – improving
           financial planning and management – interest rate results directly from asset performance




                                   Purpose of Funds: Pension

   Historical approach: Employer financed only current benefit payments as “expenditures”
       Immature scheme: created impression of scheme being “cost free” – almost entire burden
               passed onto future years – impairing prudent and knowledgeable policy making
       Scheme approaching maturity: creates impression of an unsustainable financial burden –
                            potentially focusing policy dialogue in wrong direction
 Prudent approach: Separate Investment Fund created for receipt of contributions from budget and
                                     from where benefits are paid
       Periods where contributions exceed benefits lead to creation of surplus monies from which
                   assets are purchased – these can be private sector or public sector assets
      Explicit formulation of financing policy – contributions can vary from “benefits only” up to
            “accrued cost for the period” – may result in small or large levels of asset buildup over
                                                certain periods
        Results in explicit recognition of funded and unfunded financial obligations – improving
                       financial planning, management and benefit policy formulation



                              Changing Maturity Level Illustrated




                                              49
                                                                                         50




                        Historical to Prudent Transition

                                      GPF:
                         Create Investment Fund for GPF: done
 Stop treating new subscriptions as “revenue” direct towards the Investment Fund: partially
                                            being done
    Start transferring interest on unfunded portion to Investment Fund: to be started
           Develop a schedule for amortizing unfunded liability: to be started
                                     Pension:
                       Create Investment Fund for Pension: done
 Revise process directing contributions into Investment Fund and pension benefit payments
                              from Investment Fund: to be done
   Determine annual cost of scheme on recognized principles and report funded versus
                   unfunded liabilities, contributions versus costs: in process
  Formulate financing policy including level of pre-funding of benefit payments: partially
                                   started and also in process
      Government access to GPF assets still possible through structured securities




                                      50
                                                                                                                51



     Current Situation

     Investment Funds                                             1

      Multiple investment funds with various
       shared boards                        Oversight
                                                                                   members do not have
              Shares Boards with Pension and / or GP Fund                          substantial investment
                                                                                         experience


                        GP
    Pension                                                                                Social Relief
                       Fund
     Board                                                                                    Board
                      Board




                                        Peoples’ Housing Sindh Viability Sindh Social
 Sindh Pension     Sindh GP
                                        Cell Investment Gap Investment Relief Investment
Investment Fund Investment Fund
                                              Fund            Fund            Fund




                                                                                                            6
                    TA-4922 (PAK): Sindh Growth and Rural Revitalization Program




                                                   51
                                                                                                                             52



        Current Situation

        Investment Funds                                                   2

                                                                          Inception         Value as at FY 2008-09
                Government of Sindh Investment Fund
                                                                            Date                 in Rs millions

           Sindh Pension Investment Fund                                  2002-03                    Rs 22,897.540

           Sindh GP Investment Fund                                       2007-08                         Rs 6,410.990

           Sindh Social Relief Investment Fund                            2005-06                    Rs 10,945.500

           Sindh Viability Gap Investment Fund                            2008-09                         Rs 3,069.819

           SASO Pensioners Fund                                           2008-09                          Rs 127.420

           Sindh Bank Fund                                                2008-09                         Rs 2,000.000

           Peoples’ Housing Cell Investment Fund                          2008-09                         Rs 1,769.105

           Provincial Disaster Cell Fund                                  2008-09                          Rs 100. 000

           Total                                                                                 Rs. 47,320.374

                        Source: Government of Sindh Finance Department. October 2008 and February 2009.
                                                                                                                         7
                        TA-4922 (PAK): Sindh Growth and Rural Revitalization Program




                                            Current Situation
                                           Investment Funds 3

               GoS is liable for gains and losses of the Investment Funds
 Despite the current oversight structure of a large accumulation of assets there is a lack of
            Checks and balances for effective safeguarding and reporting to Boards
   Institutionalized structure to ensure that investment returns can be maximized within the
                                    GoS‟s investment risk profile




                                        Solution: Create SFMH

                        FD has proposed creation of SFMH
                                         Purpose
             To centrally manage Investment Funds utilizing full-time dedicated professional
                                            investment staff
                                            Investment policy
                                          Investment functions
                    To enhance oversight with substantial investment experience




                                                          52
                                                                                                                  53




                                                                                     GoS appoints
       Proposed Changes                                                          Board members with
                                                                                substantial investment
                                                                                      experience


   1 chairman, 5 members           Sindh Fund Management House
   with substantial                            Board                                        Independent Auditor
   investment experience




                                         SFMH Investment Unit

                APPROVED INVESTMENT POLICY


                                               Peoples’ Housing Sindh Viability Sindh Social
 Sindh Pension     Sindh GP
                                               Cell Investment Gap Investment Relief Investment
Investment Fund Investment Fund
                                                     Fund            Fund            Fund



                                                                                                             10
                           TA-4922 (PAK): Sindh Growth and Rural Revitalization Program




                                 Sindh Fund Management House 1

                Create Sindh Fund Management House Board
    Majority of members would be investment professionals experienced in investments,
                                    financial institutions
       Control an independent budget for the Board and Investment Unit – done
    Board appoints Independent Auditor to conduct annual audit of Investment Funds
                          Create Investment Unit
  To manage day-to-day investment decisions staffed by investment professionals who have
                              significant previous experience



                                            Proposed Transition

               FD is hiring initial staff to manage Investment Funds
                                  Investment manager
                                   Investment analyst
                        ADB to hire investment specialist
      Investment manager and specialist to prepare structure of Investment Unit and Board
                                            documents
                     ADB to hire legal investment specialist
                    To draft SFMH Act and required legal documents
              GoS to approve Act and submit to Provincial Assembly


                                             Creation of SFMH

                            Passage of the SFMH Act
                   Appointments of the chairman and Board members


                                                          53
                                                      54

 Board members would establish the Investment Unit




                      54
                                                                                                           55




              Presentation by Mr. Sarwar & Mr. Asif (TA 4922 PLC experts)


                                           Sindh Seed Corporation
                                             A WAY FORWARD


                                              Legal Corporation

                    Statutory corporation created by the Sindh Seed Corporation Act 1976

                                              Mandate
„…for production, procurement, processing, marketing and distribution of seed for … Sind‟ –an ambitious
                                    mandate needs to be reviewed


                                               Current Position

           Unable to provide the mandated lead for seed production, multiplication and distribution
           Financial viability – dependent upon GOS financial support, PKR 17M sought from GOS
                                        Past reform efforts reversed


                                           Way Forward - Options

                                   Option 1: Lease SSC assets with management
                                  Option 2: Joint Venture – rehabilitate and operate


                                            Option 1 – Asset Lease

                                               Description
        GOS leases out SSC assets and management to a private sector operator and receives rent
                                                Strengths
                             SSC will not be dependent on GOS resources
                             GOS will receive agreed rent from the lessee
                          Private parties incentive/stake is to enhance profits
                                            Weaknesses/Risks
                                  GOS to absorb SSC staff/employees
                                             Mechanics/Steps
            Amendment to the law to enable the GOS to lease SSC assets –easy amendment
                                        Option 2: Joint Venture

                                                Description
        GOS provides SSC assets on a rehabilitate and operate basis to a private sector operator
                             GOS assets is converted into equity for the JV
  Private party provides an equity contribution to rehabilitate and operate SSC, hence, there is further
                                            investment in SSC
                            Private party is provided full management rights
       GOS has a minority presence on the BOD and the chairman will be from the private sector
                                                 Strengths
                              SSC will not be dependent on GOS resources
                      Private party has an actual stake in performance and profits


                                                      55
                                                                                                          56

               Breeders‟ rights protected under Intellectual Property Rights Ordinance 2007
                                              Weaknesses /Risk
                                    GOS to absorb SSC staff/employees
                Mechanics/Steps: Amendment to the law to enable the GOS to enter into a JV


                                       Agricultural Produce Markets

                        Created under the Sindh Agricultural Produce Marketing Act 1939
                                                    Objective
 To enhance rural incomes, in particular supporting growers and consumers, by increasing private sector
participation in agricultural produce supply chain marketing to create a more competitive, transparent and
                                     fair agri. produce market in Sindh




                                                 Challenges

                                                   Competition
    Entire province of Sindh effectively a notified area hence prohibited from private sector participation
Private sector operators [Makro, Metro] permitted only under emergency provisions, which is unsatisfactory
                                           Regulation & Management
                             Regulation through market committees ineffective
              Most market committees operating through administrators i.e. DoAgric. officials
  Markets are inefficient due to corruption, collusive behaviour and exclusive territories resulting in local
                                               public monopolies




                                                     56
                                                                                                                  57

                                               Repeal the Law - Impact

                                                 Competition
                                      Notified areas will be abolished
Private actors can establish agric. produce markets anywhere in Sindh under any form of incorporation
                                         permitted under the law
                                        Management & Regulation
                                   Market committees will be abolished


                                                    Ways Forward

             
        Policy statement for enabling market stakeholders to establish agric. produce management
                                        committees/associations
   Markets must ensure financial self sufficiency. Management committees/associations can select a
                                        suitable business model.
  In the long –run, market committees/association will evolve their business models and private sector
                                       will also establish markets.


                                                Wholesale markets:
                                          Examples of International Practices


                                                     1. Australia

                           • Large central wholesale markets in big cities
      •
    Brisbane Wholesale Market was established in 1864 and sold to private enterprise in August 2002
 • A competitive public tender process involved four stages over 10 months. The winning bid valued the
                  site and business operations, as at 30 September 2002, at $74 million.
  • The market was acquired by a public limited company (Landacq Limited), formed in 1994 with 32
                 shareholders. [Public refers to shares being traded on the stock market]



                                                       2. China

                           i.    70 % Wholesale markets in china are run by the private sector
          i.       Largest wholesale market in Beijing is Xinfadi farm product co., Ltd - a joint stock private
                                             agricultural enterprise founded in 2003
        i.        Total market trading volume is 5 billion kilograms. Total turnover is equivalent to USD1.4bn
      i.         Vegetable and fruit supply from the market accounts for nearly 70% of the city's total demand.
                    i.    Annual payment for various taxes and fees is more than usd1.5m equivalent.


                                                  2. China continued

 i.            Shangdong shouguang vegetable wholesale market co. Was privately owned and founded in 2003.
                             i.   The registered capital of the company is approx. USD 20m.
 i.            This wholesale market is considered as “leading companies of the country's agricultural industry”,
                              and “top 10 of the vegetable wholesale market in the whole country”.


                                                    3. Philippines




                                                          57
                                                                                                        58

                                           No agricultural market law
                                        All markets private sector owned
                     Diversified range of markets co-exist: from very traditional to very modern


                                                 4. Thailand

                           There are private, cooperative, and public sector markets
             The largest market, Thalaad Thai Market, is world renowned, and is private sector owned


                                                 5. Germany

                • No separate federal or state laws to regulate the activities of wholesale markets
    •       The Berlin wholesale market is a limited company founded in 1960 (Berliner Grossmarkt GmbH,
                                                        BGG)


                                                   6. India

                 Government is in the process of reforming the traditional market committee model
                   New models are considered to allow increased private sector participation




                                                 Conclusion

                      The world trend is moving from public to private ownership
            Many models emerged and evolved within an open and competitive environment
       Many countries do not have separate agricultural laws, depending on a country‟s historical context




                                                     58
                                                             59


Presentation by Mr. Chohan (CEO, Punjab Industrial Estate)




                           59
                                                     60




                              MEMBERS OF THE BOARD


Sr.   Name of the Member
1     Mr. Muhammad Ali Mian,
      Chairman
2     Mr. S. M Tanveer, Din Textiles
3     Mr. Tassadaq Zulqurnain, CEO
      FIEDMC
4     Mr. Tariq Mehmood, Pak-Kuwait
      Textile Mills
5     Mr. Arif Saeed, Service Industries
6     Mr. Shaukat Elahi, Prosperity


                                           60
                                                                                 61


      Weaving                                   Sr.   Ex-Officio Members
7     Mr. Mian Tariq Rehman, Popular            13    Representative, APTMA
      Chemicals                                 14    Representative, QIE
8     Mr. Jala-ud-din Romi, Mehmood
                                                15    President Bank of Punjab
      Textiles
9     Mr. Nabeel Hashmi, Thermosoles            16    MD, Nespak
      (Pvt) Ltd                                 17    Chairman TEVTA
10    Mr. Mansoor Abbas, Metalcare              18    Secretary Industries
      (Pvt) Ltd
                                                19    Secretary Labour & Human
11    Mr. Amir Fayyaz Sheikh,
                                                      Resource
      Chairman PSSHMC
                                                20    Secretary Finance
12    Mr. Mian Muzaffar Ali, President,
      LCCI                                      21    Secretary Environment
                                                22    Secretary Commerce &
                                                      Investment
                                                23    CEO, PIEDMC




                                             PROJECTS

SUNDAR INDUSTRIAL ESTATE
     New 1602 acres industrial estate at Sundar.

QUAID-E-AZAM INDUSTRIAL ESTATE
     Upgrading 565 Acres Quaid-e- Azam Industrial Estate at Lahore.

MULTAN INDUSTRIAL ESTATE
     Upgrading 743 acres Multan Industrial Estate, Phase-I.
     Expansion of Multan Industrial Estate (667 acres) – Phase-II.




                                  SUNDAR INDUSTRIAL ESTATE




                                    IMPORTANT MILESTONES




                                                 61
                                                                                62


         Land Acquired (1600 acres)               May               2004
             Ground Breaking                          August 2004
             All Plots Allotted                       August 2005
             First Unit in Operation         October            2006
         Inauguration                             February          2007
                 * Major Infrastructure Completed by February’07




                   AREAWISE DISTRIBUTION OF PLOTS




                         INFRASTRUCTURE (COSTS)

Item                                                    Cost (Rs. in Million)
Land                                                    431
Roads & Drainage (Concrete Roads)                       1,500
Water Supply (along with RO filtration plants)          300
Sewerage System (along with disposal station)           327
Boundary Wall – Masonry                                 118
Boundary Wall – RCC                                     35
Underground Electricity / Street Lighting               800
Grid Station, Sub Station                               350


                                       62
                                                                                                 63


     Sui Gas Distribution                                      462
     Other works, consultants, WAPDA, O/H etc                  972
     TOTAL (Budget 2007-08)                                    5,295



                            PROGRESS OF INFRASTRUCTURE




                       COMBINED EFFLUENT TREATMENT PLANT

                          CETP of 56,250 m3/day Capacity (Phase-I)
   To treat common waste water parameters using a combination of physical, chemical and biological
                                              methods
         Project to be executed under Engineering Procurement & Construction Contract
                                      Tender in process
                       CETP expected to be commissioned by mid 2011.


                                390 MW IPP POWER PLANT

                     • 390 Mw power plant based on gas and high speed diesel fuels
           •   Shareholder Agreement signed with Amwal Investments International of Kuwait


                                              63
                                                                                     64

                           •        Direct Investment of $ 400 million
                               •     Project to be completed by 2010

                       GRID STATION AT SUNDAR
                •    An in-house grid station is being erected by Siemens
                     • Installed transformation capacity of 40 MW
                            • Design approved by WAPDA
            •       132kv transmission lines being constructed by LESCO


                                   AMENITY AREAS

                                  24 – hours Emergency Center
                                        Food Courts
                                    Truck Parking Areas
                                           Mosque
                                     Shopping Arcades


                     OTHER FACILITIES PLANNED

                                           Hotels
                                           Banks
                                      Pharma Labs
                                   Skill Development Center
                                     Exhibition Halls




                    AMENITIES FACILITIES (COSTS)

                    Item                                     Cost (Rs. in Million)
     Amenities & Other Facilities:                         䦋㌌㏒㧀낈ᖺ琰茞ᓀ㵂Ü
    Head Office Complex / Display Center                       400
             SIE Office Complex                                          75
          Emergency Medical Center                                       35
                      Mosques                                            30
     Amenities (Food courts, Parks, Truck                                200
 Parking ,     Shopping arcades etc.)
Other works, contingencies, consultants,                                 232
           WAPDA, O/H etc
               TOTAL                                                     972




                                    OTHER WORKS



                                           64
                                                                                                   65


                                Item                         Cost (Million)        Progress
             Combined Effluent Treatment Plant                      840        Tender in process
                          390 MW IPP                           400 Million     NEPRA License
                                                                  USD
                     Head Office Complex                           450           Design Stage
                     Commercial Complex                              75          Design Stage
                   Dredging of Nehla Drain                           15        100 % complete
                     RCC Boundary Wall                               23        100 % complete
            Forced main (disposal station to Rohi                    60         100% complete
                          Nullah)
                Temporary Office Building                          5.10         100% complete
                          Landfill Site                              10         65 % complete
               Rescue 1122 / Emergency Centre                        35         40 % complete
                  Temporary Disposal Station                         35         90 % complete
                               Mosque                              27.3         35% complete
                           Food Court                              30.8         45% complete


                          POLICY GUIDELINES FOR INDUSTRIALIZATION

                    Allottee must be in production in 24 months from the date of allotment.
                     Title of the land to be transferred only after 3 months in production.
                                Cancellation of inactive plots to be initiated.
                        Waiting queue of applicants (approx. demand 200 Acres).



                                  INDUSTRIALIZATION AT SUNDAR


Total number of plots                     -                 667 (All Sold)
Factories under production                -                 58
Factories under construction              -                 170
Factories processing designs              -                 118
TOTAL ACTIVATED                           -                 346

                                              MAJOR BENEFITS

                                                  Today               2010            2012
            Employment          Numbers           15,000             55,000         115,000
             Investment        Million Rs.        10,500             35,000           60,000
               Export          Million US$        30 - 40           75 – 100       150 - 500
                   Note: Approximately 15,000 persons are involved on the construction of



                                                    65
                                                                                                            66

                                           factories, infrastructure etc.


                                            ACHIEVEMENTS

                              Industrial growth through one window facilitation
            Quality infrastructure led to investor confidence/attraction for foreign companies & expats
                     Prevented real estate speculation through effective allotment policy
                  Company operating on no profit basis and maintaining self sustainability.
                        Comparable with any industrial estate/park around the world.
            Expatriate Pakistanis and international investors keen to locate at Sundar because of secure
                                                     environment
                    Increase in Government revenues through taxes, reduction in import




                   Tetrapak Selects Sundar for Multimillion Dollar Expansion Project

     Tetrapak one of the leading Swedish Manufacturing Giant has opted for Sundar Industrial Estate to
                               setup the largest Regional Manufacturing Facility.
     The location “Sundar Industrial Estate” was preferred over India, Bangladesh and China largely
            because of quality infrastructure and One Window facilitation extended to customers.
      Tetrapak will make an investment of 400 Million Euros and plans to be make their first phase
                                             operative by end 2010.




               QUAID-E-AZAM INDUSTRIAL ESTATE – KOT LAKHPAT



                         QUAID-E-AZAM INDUSTRIAL ESTATE (HISTORY)

       The Township Industrial Estate was created under a joint Pak Canadian Assistance program in
                                                    the 1960's.
          The scheme involved setup of a Residential area and an Industrial Estate side by side.
             The scheme was abandoned by the Canadian during its infrastructure phase.
       As a result the Industrial estate and the residential area to date lack almost all civic amenities.
       QIE is one of the largest planned industrial estates of Punjab, spread over an area of 565 acres.
         It has 477 industrial plots (379 operative) of the sizes varying from 1 kanal to 100 kanals.
       Industries consist of Textile, Dyeing & Printing, Auto Parts, Pharmaceutical, Food, Household
                       Appliances, Plastic ware, Chemicals, Rubber/Foam, Cosmetics etc.
       A total of 50,000 workers are employed which includes approximately 10,000 female workers.




                     QUAID-E-AZAM INDUSTRIAL ESTATE (UNDER PIEDMC)




                                                    66
                                                                                                   67

                            Handed over to PIE on 1st April 2004 from LDA.
                            New Board of Management was constituted.
                   Infrastructure Rehabilitation was declared TOP PRIORITY.
                   Nespak was engaged to develop master plan of upgradation.
               Rehabilitation was planned in four phases at a total cost of Rs. 750 Million.
                Government gave a grant of Rs. 200 Million for Phase-I in June 2004.
              Government gave another grant of Rs. 200 Million in April 2007 for Phase-II.




                                 PROGRESS UP-TO-DATE




                      MAJOR ACHIEVEMENTS AFTER UPGRADATION

                         Sixty Seven (67) Sick Industrial Units Revived
                         Forty Two (42) New Building Plans Approved
                          Employment Increased from 25000 to 50000
                       Female employment increased from 5000 to 11000
           Foreign Investment Attracted/Four(4) Multinationals operating at present
       Overall environment has considerably improved and prospective buyers are keen to visit
                           Overall image improvement of Pakistan




                               MULTAN INDUSTRIAL ESTATE


                                Project was conceived in early 60's.
            Development was planned in phases, phase-I of 743 acres and phase-II of 667 acres.
           Work on phase-I commenced in 1963 to be completed in 1966. Phase-II was kept vacant.



                                                67
                                                                                                68

                    Infrastructure work on Phase-I was completed in 1983.
  Phase-I was handed over to PIEDMC in March 2004, while Phase-II still remained with Industries
                                             Department.
  Phase-I was partly colonized due to poor condition of infrastructure due to lack of maintenance.
     Roads, Drainage/Sewerage infrastructure was totally destroyed/damaged due to lack of
                                             maintenance.
             Total infrastructure upgradation was estimated to cost Rs. 650 Million.
   Government of Punjab gave us Rs. 100 Million only for critical works (sewerage/drainage and
                     roads). The remaining funds were to be allocated in phases.
        Upgradation of critical infrastructure was undertaken on priority by PIEDMC.
 PIE constructed new sewerage/drainage system and new roads in critical areas at a cost of Rs. 188
                                               Million.
  Based on the success of phase-I, phase-II was also handed over to PIEDMC in 2006 and is under
                                             development.




             UPGRADATION OF MULTAN INDUSTRIAL ESTATE PHASE-I




              Status of Units                Number of Units          Improvement
                                              Nov 2003       Now
            Units in Production                  102         150             48
                Closed Units                     68           36             32
                 Sick Units                      21            0             21
         Under Construction Units                 3           27             24
              Unallotted Plots                   73            0             73




                           PROGRESS OF INFRASTRUCTURE




                                            68
                                                                                       69




                PIE – RECENTLY INITIATED PROJECTS


                     GUJRAT INDUSTRIAL ESTATE


         177 acres of PSIC land has been earmarked for this purpose.
        Located on Bhimber Road about 12 km from center of the city.
    We have asked for additional land so that minimum area is 500 acres.
 Initial cost of this land was Rs. 51 Million which now enhanced to Rs. 71 Million.
       Nespak has been appointed as overall consultant for this project.
          Appointment of land acquisition collector (LAC) is awaited.
   Work has been stopped because of non payment of compensation of land.

                     ATTOCK INDUSTRIAL ESTATE


       Project included in Federal PSDP with cost of Rs. 134 Million.
  350 acres have been earmarked on Sanjwal Road about 3 km from GT Road.
  Proposed land is not suitable; we have asked for alternative site (500 acres).
         Decision from Government regarding new site is pending.
       ACE has been appointed as overall consultant for this project.
          Feasibility study, on old site is being prepared by ACE.
       Feasibility study will be updated/revised once site is finalized.


   INDUSTRIAL ZONES ALONG LAHORE – SIALKOT MOTORWAY




                                     69
                                                                                                             70



                       TRUNK INFRASTRUCTURE FOR INDUSTRIAL ZONES




                             NEW PROJECTS UNDER CONSIDERATION
                                     INDUSTRIAL PARKS

                                                        Land Cost         Develo. Cost         Total Cost
    Sr. No.      City / District    Area (Acres)
                                                        (Mill. Rs.)        (Mill. Rs.)         (Mill. Rs.)
PRIORITY PROJECTS
     1           Sahiwal        100                120                 250              370
     2            Jhang         114                114                 285              399
     3         Bahawalpur       374                449               1,068             1,517
     4            Gujrat        177                177                 443              620
     5         Rawalpindi       100                150                 250              400
              Trans-Freight
     6                          100                100               1,000             1,100
              Park, Lahore
                  Cluster
     7         Complex at        34                 0                1,400             1,400
                  Multan
                Livestock
     8        Business Park         Costs will be calculated in consultation with L&DD
               at Cholistan
                 TOTAL COST FOR 5 INDUSTRIAL PARKS                                     5,467


                           CLUSTER / COTTAGE INDUSTRY COMPLEX

                         Proposed to be setup in Multan Industrial Estate Phase-II.
                       32 acres of land has been identified and dedicated for this complex.
                                      Overall estimate is Rs. 1.3 Billion.
                            Estimate for Phase-I is Rs. 350 Million (seed money).




                                                   70
                                                                                     71




        CRITICAL / IMPORTANT STUDIES TO BE CARRIED OUT


        ESTABLISHMENT OF INDUSTRIAL ESTATES IN PUNJAB


                      Overall industrial potential of Punjab.
                 Develop industrial estate in integrated manner.
       Study will be conducted in collaboration with reputed foreign consultant.
                Encourage industrialization in organized manner.
                PC-II being submitted to Industries Department.



        STUDY OF EXISTING INDUSTRIAL ESTATES IN PUNJAB


           Comprehensive survey of all industrial estates including SMEs.
                        Study the state of infrastructure.
   Interaction with industrialists to know about their problems and requirements.
               Ways and means to improve the industrial estates.
                    Recommend actions for the Government.




                                     71
                                                                                                  72



                                                                                       Appendix 4

               Terms of reference of the SGARRP Program Management Unit

The PMU will effectively service as a focal point for program implementation. It will carry out
work in the following areas.

   (i) Facilitate program implementation
           a. Follow up and hold monthly meetings with the implementing agencies and the
              executing agency in implementing the program prior actions.
           b. Update the Additional Chief Secretary for Development and other key
              stakeholders on program implementation to minimize delays.

   (ii) Coordination and consultation
           a. Liaise with the implementing agencies and the executing agency.
           b. Support policy dialogue between the Sindh Government and ADB.
           c. Act as focal point for the ADB team and ADB consultants.
           d. Assist and coordinate ADB missions.
           e. Assist ADB and TA consultants on missions and other work on the Program as
              required.

   (iii) Assist TA implementation
           a. Develop TOR for consultants, especially domestic consultants, in consultatiojn
              with the stakeholder departments;
           b. Working with ADB, identify candidates for domestic consultants.
           c. Assist in interview of consultants if needed.
           d. Provide timely assistance in processing government concurrence for consultants.

   (iv) Information dissemination and capacity building
           a. Organize workshops and trainings.
           b. Identify training needs amongst the involved agencies.
           c. Assist the implementing agencies and the executing agency, ADB, and
              consultants in organizing workshops.

   (v) Other assistance
Providing other assistance needed for the efficient and effective implementation of the Program
and related technical assistance.




                                                72
                                                                                                          73

APPENDIX 5.

                                     LIST OF PERSONS MET

 Sr. #   Name                         Designation / Department
   1     Mr. Fazal ur Rehman          Chief Secretary, GoS
   2     Mr. Nazar Hussain Mahar      Additional Chief Secretary (Development) Planning and
                                      Development Department, GoS
   3     Ms. Naheed Durrani           Special Secretary (Budget), Finance Department, GoS
   4     Mr. Fazalullah Pechuho       Secretary Finance, GoS
   5     Mr. Ali Ahmed Lund           Secretary Industries, GoS
   6     Syed Hashim Raza Zaidi       Secretary Health, GoS
   7     Mr. Agha Jan Akhtar          Secretary Agriculture, GoS
   8     Mr. Javed Ishrat Hussain     Secretary Planning & Development
   9     Mr. Rehan G Ali Memon        Special Secretary, Planning & Development GoS
  10     Dr. Noor-ul-Haq              Special Secretary, Development P&D
  11     Mr. Khalid Waheed Khan       Special Secretary, Planning & Development GoS
  12     Mr. Najam Saqib              Special Secretary (Development) Finance GoS
  13     Dr. Noor Alam                Additional Secretary (Resources) Finance, GoS
  14     Mr. Mazhar Ali Siddiqui      Additional Secretary Education, GoS
  15     Mr. Nazir Ahmed Sheikh       Additional Secretary (Technical), Communication & Works Dept.
  16     Mr. Aijaz Ahmed Mahesar      Additional Secretary (Finance) GoS
  17     Mr. Zamir Ahmed Khan         Additional Secretary (Industries) GoS
  18     Mr. Sajjad Haider Shah       Additional Secretary (Administration), Agriculture Department
  19     Mr. Najam ul Saqib           Additional Secretary Admin/SR
  20     Dr. Capt. Abdul Majid        Additional Secretary (Monitoring & Inspection), Health Department
  21     Mr. Ramzan Awan              Additional Secretary Education, Education & Literacy Department
  22     Mr. Aijaz A. Nizamani        Additional Secretary Forest
  23     Mr. Altaf Ahmed              Deputy Secretary (L&F)
  24     Mr. Khalid Mehmood Shaikh    Deputy Secretary (Resources) Finance Department, GoS
  25     Mr. Atif Aziz                Deputy Secretary (Budget) Finance Department, GoS
  26     Mr. Arif Khairi              Deputy Secretary (Technical), Agriculture Department
  27     Mr. Khalid Chachar           Deputy Secretary (Administration), Agriculture Department
  28     Ms. Shireen Narejo           Deputy Secretary, Health Department
  29     Mr. Shazor Tabani            Managing Director STDC, Culture & Tourism Department
  30     Mr. Shamsuddin Shito         Managing Director, SITE
  31     Mr. Abdul Rasheed            Managing Director, Sindh Small Industries Corporation
  32     Mr. Rizwan Ahmed Sheikh      Managing Director, Sindh Public Procurement Regulatory Authority
  33     Mr. Abdul Rafiq Laghari      Director General Monitoring & Evaluation Cell, P& D Dept. GoS
  34     Dr. S. Azhar Hussain         Director Settlement, Board of Revenue
  35     Mr. M. Ghayoor Khan Suri     Director General Provincial Audit Sindh
  36     Dr. Khalid Sheikh            Director (Development), Health Department
  37     Mr. Inayatullah Qureshi      Director MEC (Planning & Dev) GoS
  38     Mr. Wahab Soomro             Director PPP Unit, GoS




                                                 73
                                                                                                    74

39   Mr. Masood Akhtar             Director Provincial Audit
40   Mr. Manzoor Ahmed Memon       Director, Bureau of Statistics
41   Dr. Tahir Qureshi             Director, People's Primary Health Care Initiatives, Sindh
42   Dr. Syed Azhar Hussain        Director Settlement, Board of Revenue, Karachi
43   Mr. Saleh Farooqi             Director Survey, Board of Revenue, Karachi
44   Mr. Sohail Rajput             Director TDAP
45   Mr. Niaz Ahmed                Director IT, Board of Revenue, Karachi
46   Mr. Mushaq Ali Lighari        Deputy Managing Director, Sindh Small Industries Corporation
47   Mr. Fazal Junejo              Deputy Director, Agriculture Department
48   Mr. Mohsin Ahmed              Deputy Director (Development), Health Department
49   Ms. Shaista Mubarak           Deputy Director (Development-1), Health Department
50   Mr. Abrar Ahmed Sheikh        Assistant Director, SGARRP Project Management Unit
51   Mr. Jamil Ahmed               Assistant Director, District Audit Sindh
52   Mr. Abbas Ali                 Assistant Chief Foreign Aid, Planning & Development Department
53   Mr. Ghulam Ali Pasha          Senior Member Board of Revenue, Karachi
54   Mr. Fazal Karim Khatri        Senior Program Officer, Finance Dept. GoS
55   Mr. Shahzar Shamoon           Member Reforms & Social Services, Board of Revenue, Karachi
56   Mr. Hassan Ali Din Muhammad   Chief Foreign Aid, Planning & Development Department, GoS
57   Mr. Fazal Ahmed Nizamani      Chief Water & Power Cell, Planning & Dev. Dept. GoS
58   Mr. Shahabuddin Mir           Chief (Livestock and Fisheries) P&DD
59   Mr. Bisharat A Channa         Chief (Industries) P&DD
60   Mr. Ijaz Ali Pirzada          Accountant General, GoS
61   Mr. Ghufran Memon             Additional Accountant General
62   Mr. Abdul Aziz Uqaili         Program Coordinator SGARRP
63   Ms. Maria Mangi               Planning Officer, SGARRP Project Management Unit
64   Mr. M.A Jabbar                Chairman SITE Association
65   Mr. Sabir Chohan              CEO, Punjab Industrial Estate
66   Mr. Husnain Nanjee            Managing Partner, M/S. Nanjee & Co.
67   Mr. Asif Iqbal                Secretary, Social Policy & Development Centre
68   Muhammad Sabir                Principal Economist, Social Policy & Development Centre
69   Mr. Khurshid H. Sabzwari      Managing Partner, A. F. Ferguson & Co.
70   Mr. Khurram M. Siddiqui       Senior Manager, A. F. Ferguson & Co.
71   Mr. Asim Siddiqui             Partner, Earnest and Young
72   Mr. Hussain Bux               Conservator Wildlife Sindh
73   Dr. Ehsan Elahi Valeem        Manager (CDP), P&DD
74   Mr. Wali Muhammad             Consultant Law Department, GoS
75   Mr. Shujat Naqvi              Sales Promotion Officer, Culture & Tourism Department
76   Mr. Khalid Kaim Khani         Senior Accounts Officer, Department of Food
77   Mr. M. Idrees Gigi            Chairman F.B. Area Association of Trade & Industry
78   Mr. Tehseen                   Vice Chairman F.B. Area Association of Trade & Industry
79   Syed Tariq Rashid             Vice Chairman M/s. Thrive Textile Industries
80   Mr. Abdul Shakoor Khatri      Chemi Viscosa Fibre Limited
81   Mr. Suleman Chawla            Senior Vice Chairman, Alpha Containers Industries




                                               74
                                                                                           75

82   Mr. Naseem Anwar         Vice Chairman Tulip Towel Industries
83   Mr. M. Nisar Sheikhani   Member & former Chairman SAI
84   Mr. Munir Ahmed Dogar    Secretary SIZ Direli
85   Dr. Manzoor Memon        Principal Officer, Public Primary Health Initiative
86   Mr. Imran Chandio        Executive Officer (MIS) , Public Primary Health Initiative




                                          75

								
To top