The Asian Development Bank (ADB) and Agence Francaise de Development (AFD) have jointly expressed concern to the Economic Affairs Division about non-readiness of executing agency (Planning Commission), and implementing agencies, which has resulted in the postponement of the first tranche release under the $ 980 million Energy Efficiency Investment Plan (EEIP), sources told Business Recorder.
On August 13, 2009, the government and ADB executed the framework financing agreement for the MFF. ADB approved the MFF, and the first tranche was to be released on September 2009. AFD approved the financing in October 2009.
Sources said that tranche 1 of the loan signing with ADB has been postponed from November 19, 2009 by the government due to non-readiness of the executing and implementing agencies.
"We are concerned that such delays will severely affect the implementation of the tranche 1 (national compact fluorescent lamp project and program management support project), and preparation of subsequent tranche projects, which are urgently needed," said Director, Energy and Natural Resources Division, ADB, and Yves Terracol, Country Director, Pakistan, in a joint letter.
Sources said that ADB and AFD financing is based on government commitment to strategy and reforms to mainstream energy efficiency into national planning and public investments.
According to the letter, extensive stakeholder consultations on policy, institutional structure and financing took place during the program development. The Planning Commission led the government's energy efficiency and conservation consultative group, which prepared a 10-year roadmap and investment plan.
The roadmap activities cover multiple sectors and require integrated planning and management. All stakeholders recommended that the Planning Commission, with its cross-sector policy and planning mandate, would be the most appropriate agency in the government structure to co-ordinate the activities.
Sources said that the government, the ADB and the AFD agreed that the Planning Commission be the executing agency for the program, and that a dedicated Program Management and Co-ordination Office (PMCO) be established in the Planning Commission. This office would be responsible for supporting the concerned agencies with (i) the roadmap implementation policy, planning, interagency and donor co-ordination, and capacity building support; and (ii) investment program co-ordination - reporting, monitoring, and consultant support. The individual investment projects would be implemented by the relevant line agencies and utility companies.
According to the letter, the program is critical to the government's plans to resolve the power shortage crisis. The government has been requested to expedite the establishment of the PMCO in the Planning Commission to effectively co-ordinate the program. "We hope that there will be no further delays with the PMO establishment and with the loan signing. ADB and AFD are ready to sign the tranche 1 loans at the government's convenience," sources quoted from the letter addressed to EAD Secretary Sibtain Fazal Halim.
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