The Asian Development Bank (ADB) has signed $42 million loan agreement with Pakistan for Federally-Administered Tribal Area (Fata) Rural Development Project designed to reduce incidence of poverty in the far-flung areas of the region.
Sources told Business Recorder here on Wednesday that the project has been under discussion since 2002 as there were differences on its design and execution among the Asian Bank, Fata Governor's Secretariat and Ministry of States and Frontier Regions (Safron) that delayed the project.
But, the most important hurdle was that both Fata Governor's Secretariat and Safron were pressing for the execution rights for the project. Previously, the Fata Governor's Secretariat was eager to execute the project independently without the involvement of Safron.
The Asian Bank then demanded of the Secretariat to make it clear that it is independent in terms of utilisation of aid given by the international financial institutions (IFIs) or donor agencies. Besides, it also expressed some reservations regarding the design and details of the project.
After a series of meetings with Fata administration, sources said the issue has been settled and the project's PC-I is in hand. And now they have agreed that the executing agency would be Safron, while the Fata Governor's Secretariat would be the implementing agency for the project, they added.
Sources said this is a soft loan to be extended from the Bank's Asian Development Fund (ADF). The project is to be launched in three northern agencies, Bajawar, Mohmand and Khyber and expected to be completed by end June 2011.
Objectives of the project are to improve the productive potential of participating watersheds and their associated natural resource base. It would strengthen the planning, implementation and management capacity of the communities in the project areas for participatory involvement in management and maintenance of assets emanating from local development programmes.
It would also contribute to the efforts being made for reducing incidence of poverty among the rural population by increasing income and employment opportunities through a mix of economic and social intervention, the sources said.
The project has three main components ie management of integrated resources; community infrastructure and the project planning and support.
INTEGRATED RESOURCE MANAGEMENT: Under this component, the project would help boost farming system and crop production through improved seed technology, training in integrated farm management and adaptive research; livestock and fodder development by providing training and knowledge transfer on animal nutrition and animal husbandry practices at the community level. Besides, it would enhance community forestry and range management through rehabilitation and development of denuded community land through improved vegetative cover and building of technical, social institutional and entrepreneurial capacity of small farmers, including women.
COMMUNITY INFRASTRUCTURE: This comprises four components, including building ground/surface water resources assessment and management plan. Drinking water supply schemes would also be executed by construction of around 212 spring-fed gravity flow system, 624 dug well-based schemes, provide 31 tube-wells-based water supply system, construction of 135 hand pumps and Shalman-Landi Kotal water supply schemes located in Khyber Agency. It would also enhance small irrigation systems by rehabilitating 72 existing irrigation structures and construct 36 new structures besides, providing training to farmers for its construction.
It would also construct 130 check dams and introduce small ponds and few small dams for reservoirs to create storage for irrigation, improve water recharge and ensure water availability for livestock and other non-drinking water of the local communities.
Besides, it would also support improvement and construction of roads through training to village organisations. Construction of 120-km of low cost link roads and up-gradation of 72-km of existing roads would also be carried out.
PROJECT PLANNING, MANAGEMENT AND SUPPORT: Under this component, the project would provide project planning, management and other support services to facilitate its timely implementation. This include establishment and implementation of MIS that would link project executing agency, implementing agency, project management unit (PMU) and project implementation units (PIUs).
The project's total cost is $62.9 million. Out of which, the Asian Bank would provide $42 million from its ADF, and the remaining amount will be arranged locally. Safron is now the executing agency, source added.
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