Asian Development Bank (ADB) has reportedly approved
technical assistance grant (TA) of about half a million dollars a few
days ago to the government for strengthening capacity of the Planning
Division / Departments, at federal and provincial levels. TA funds would
be utilized to: improve efficiency of project evaluation, implementation
and monitoring system; identify existing weaknesses and reasons for
delay and suggest remedial steps; develop a comprehensive data base for
key project activities with networking arrangement for constant flow of
information; and to identify core staff requirement and logistic
support, define responsibilities, and provide extensive training for
capacity building. TA is expected to help improve all phases of
development projects.
Increased financial allocations and the number of
Public Sector Development Projects, with changing sector priorities and
larger participation by the stakeholders, etc. are factors that
necessitated corresponding improvements in the working of the project
executing agencies as well as the entire system of project evaluation,
implementation and monitoring. This was imperative in order to best
utilize the scare resources and to get the maximum benefits from these
projects for the common people. However, due to lack of capacity of the
executing and other agencies, the projects were delayed, experienced
overruns or other problems. Sometimes, the projects were left incomplete
for a number of years to come. All this deprived the people from the
intended benefits. This has to change and we should have done so many
years ago. ADB assistance to the government for the purpose is very much
welcome. Our aim should be to successfully implement all priority
projects in all parts of the country within the allocated financial
resources. Getting best value for the money is the key. Improvements in
the following project areas are particularly suggested for consideration
of the government and the executing agencies:
PROJECT SELECTION:
Projects should improve the lives of the maximum people. Matters such as
project location, physical parameters, expected benefits, etc. should be
debated at length before any project is cleared for implementation.
Participatory approach at the approval stages may enlist the support of
the concerned people and also weed out low priority projects. This would
also strengthened weak areas in the projects and thus the people may get
the maximum benefits. The projects need to be selected and implemented
on least cost basis. This will be possible only if the selection of the
project is proper and the award of contracts is transparent, on merit
and according to the prescribed rules.
REALISTIC COST ESTIMATES:
The project costs are
generally padded up due to various reasons and considerations. The
executing agencies build in provision of a number of contingencies for
possible hitches at approval and implementation stages. In a number of
cases, the project cost shown might be in the range of 150% to 200% of
its realistic cost. Sometimes, frills are added to the projects to
justify higher cost. Practical utility of the project is not affected
much if the frills are removed. Only essential elements of the project
may be included and financed. Some times, costs are padded to provide
for potential delays in the release of project funds to the contractors.
All these factors complicate the procurement and implementation process.
The situation can be improved through down or progress payments. Funds
should be made available when due for payment. This will encourage the
contractors to avoid padding of costs and the projects would be
completed early and within realistic budget.
PROJECT EVALUATION AND APPROVAL:
Things would change for the better if the whole process of selection,
evaluation and approval were overhauled. Perhaps there is need to
introduce new blood to the various committees that are associated at
approval and other stages. Similarly, the formats used at present in the
project preparation might be updated. The project teams appointed by the
executing agencies might also be better motivated and trained for the
purpose.
TAKING GOVERNMENT EMPLOYEES ON BOARD:
The role of every
officer in the government service is critical. They have a role in
preparing the project, getting it evaluated, procurement, construction,
monitoring and finally commissioning. The Government may enlist their
support in the timely execution of development projects. Once they start
looking at things with positive frame of mind, it will spur economic
activity and thus promise progress and prosperity for all. The
Government might consider revision in salary scales of all civil
servants in order to bring pay package nearly at par with the market.
Training courses may also be arranged for learning modern techniques and
to improve their performance on job. The employees are in a position to
effect savings of considerable magnitude in the expenditure incurred for
various services and projects. Motivated officials can prepare better
project documents and execute the projects within time and cost.
PROJECT LAND ACQUISITION:
The acquisition of project land involves large financial outlays and
therefore needs careful watch by the higher authorities. A number of
project land scam cases are reported in the press. Large amount of money
are alleged to be misappropriated by certain persons in collusion with a
few of the officers concerned with land acquisition. It may be noted
that the NWFP Government some time ago had, as a precautionary measure,
banned transfer (mutations) and development of land falling under water
reservoir of the proposed Kkhurram-Tangi Dam. It is said that Islamabad
recently announced execution of the multi-purpose Kkhurram-Tangi Dam
primarily meant to enhance country's water storage capacity. The list of
villages, which would fall, in the project area of the dam has already
been prepared for the purpose of implementing the ban. Similar
precautionary steps may also help other governments and authorities in
plugging the holes with potential for misappropriation and thus
conserving resources meant for execution of the projects.
CONSTRUCTION CONTRACT/PROCUREMENT:
Through the public procurement, major share of the country's public
resources is being spent - and reportedly a substantial part of it is
presently wasted. The Transparency International, in its report to the
GOP some time back reportedly observed that Pakistan could benefit
greatly from an almost total overhaul of the country's procurement
systems, institutions and rules. Full transparency of bid evaluation
process and application of strict and transparent procedures to the
selection of consultants can improve the quality of procurement. As
regards the procurement procedures prescribed by the donor agencies,
Pakistan may discuss the matter and try to bring uniformity in the
rules. Good value for the money must be assured in all procurements.
AVOIDING PROJECT DELAYS:
Delay deprives the people from the possible benefits of the development
projects. Delays generally cause cost overruns. Non-availability of
funds or other real or imaginary issues among the counter parties may
disturb the implementation schedule. The project contractor might not be
performing well. Possible reasons for his poor performance may be his
incompetence or his collusion with the officers who are supposed to
supervise the project construction. Different executing agencies may
adopt measures to avoid delays. The district governments may execute
maximum number of projects in house. This way the officials would get
the experience and the executing agency shall also save the contractor
profit. The authorities have to be careful that the officers do not use
their official position for private benefit. The officials should be
motivated through better pay and allowances that they do not expect
gratification from the contractors. Also, names of the team of officials
supervising the project as well as the contractors together with the
completion cost might be written near the inaugural plaque installed on
opening of the completed projects. The project teams would be better
motivated and might implement the project more diligently.
THE CONSULTANTS:
The consultants are helpful most often but should be used carefully.
Good and conscientious consultants can help execute the projects within
cost and time. Such consultants may be encouraged and used more often.
The 'Consultants' who during discussion throw big names but are without
long practical experience or successful projects should not be
encouraged. Such 'Consultants' will only damage the project. It is
better to do without them. It is said that the Integrity Pact concept
developed by the Transparency International, has brought satisfactory
results for one of the projects of Karachi Water and Sewerage Board. We
must use maximum local consultants for advice or vetting different
aspects of development projects. Pakistani counter parts (junior
consultants) must always be attached to the foreign consultants.
ELIMINATING MISAPPROPRIATIONS:
It is important to eliminate leakages of funds or misappropriations,
under whatever names. In a recent audit report to the PAC, the office of
the AGP has detected over-payments, misappropriations, negligence,
violation of rules and propriety. The amounts allegedly involved under
each head are large. These amounts, if put to proper use, could finance
a number of social or physical infrastructure projects of common good.
Most of the projects will now be implemented through the district
governments or the provincial governments. The GOP might request the AGP
for preparing an appropriate instructions manual on the subject and
circulating it to different executing agencies so that misappropriations
and other weaknesses in the implementation of the projects could be
reduced.
NEW PROJECTS ALLOCATION CRITERIA:
The executing agencies might be asked to demonstrate that all existing
projects executed / sponsored by them were making satisfactory progress
and only then a new project may be allocated to that agency. Further,
the executing agencies or departments with large number of audit
objections of alleged misdeeds as reported by the AGP or PAC might not
be considered for fresh allocations unless they show satisfactory
progress in resolving the issues pointed out by the auditors. This
approach would introduce more discipline in project preparation and
execution.
EARLY UTILIZATION OF LOAN/GRANT FUNDS:
Donor agencies have often complained of the slow utilization of
sanctioned loans. Non-utilisation of the available loans sometimes has
hindered the sanction of fresh loans to the country from these agencies
and causes a setback to the development programme. At the same time, the
unutilised loans attracted commitment charges.
PRIVATE SECTOR PARTICIPATION:
People wish for early execution of development projects by the federal,
provincial and district governments. Among others, these projects shall
generate employment and alleviate poverty, both problems being pervasive
and growing fast despite government efforts to bring improvement. The
government surely will continue efforts in this regard but it appears
the government alone might not be able to cure this situation. Pakistani
people with God given financial means can help reduce poverty and create
employment. The Government may urge the resourceful people to initiate
development schemes at modest scale to help improve physical
infrastructure in the vicinity of their areas. Good people may start
building or repairing civic infrastructure in their localities or in
slums. Activities such as repair of sewerage lines, repair of school
buildings, furnishing of schools with furniture and other teaching aids,
repair and furnishing of health units and so on. These activities will
provide comfort to common people in addition to employment to the
jobless. This will also supplement the efforts of the union councils,
which at the moment are in need of both funds and trained manpower. The
government may facilitate the initiation of such projects by the private
sector for the com