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.
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.
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.