The World Bank Report No: ISR16104 Implementation Status & Results Pakistan Competitive Industries Project for Khyber Pakhtunkhwa (P143661) Public Disclosure Copy Operation Name: Competitive Industries Project for Khyber Pakhtunkhwa Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 13-Oct-2014 (P143661) Country: Pakistan Approval FY: 2013 Product Line: Recipient Executed Activities Region: SOUTH ASIA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Department of Industries Key Dates Board Approval Date 06-Jun-2013 Original Closing Date 30-Jun-2015 Planned Mid Term Review Date 27-Nov-2014 Last Archived ISR Date 03-Mar-2014 Effectiveness Date 17-Sep-2013 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed development objective of this project is to improve the competitiveness of the marble and food processing sectors in KP by providing shared infrastructure and relevant skills along the marble sector value chain and by addressing knowledge and coordination gaps along the food processing sector value chain. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Increasing Productivity and Employment in the Marble Sector 7.40 Supporting the Development and Enhancing the Impact of Food Processing Cluster 1.00 Institutional Capacity Building 0.60 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The Project became effective on September 17, 2013, and is being funded through the KP/FATA/Balochistan Multi Donor Trust Fund (MDTF). It is being implemented by the Department of Industries of KP through a Project Management Unit (KP-PMU), in coordination with the Directorate of Mines and Minerals (DGMM) of KP. Pakistan Stone Development Company (PASDEC) is providing technical inputs for the implementation of the marble sector component. Page 1 of 5 The World Bank Report No: ISR16104 The PMU made progress in the implementation of CIPK, since the last implementation support mission in April 2014. Most of the key issues, that were identified in the last implementation status report have been addressed by the Government of Khyber Pakhtunkhwa (GoKP). The KP-PMU is now fully staffed, the PASDEC-agreement was signed in February 2014, and the procurement process for the two components of CIPK is moving forward gradually. The pace of implementation picked up considerably during the Q3 of FY14, however, the Project Director took a long leave, and was replaced in August 2014 by an incumbent Project Director, who added the CIPK to his existing responsibilities for the Public Disclosure Copy Economic Revitalization of KP and FATA (ERKF) Project, and to his current assignment of Additional Director (Department of Industries). Directly, as a result of the hiatus in leadership, implementation progress on CIPK slowed down. The new PD provides oversight on two projects – both the ERKF and CIPK. The hope is that management of the CIPK will retain the focused attention that it requires. CIPK’s disbursement remain at US$0.5 million, since March 2014. With the initiation of the process for the procurement of machinery, the disbursement rate is expected to pick up in Q2 of FY15. KP PMU has awarded the first contract under International Competitive Bidding (ICB), to the selected firm, for the procurement of excavators for Marble City Risalpur. The following actions need to be taken to expedite implementation and disbursements; 1) The remaining steps for the procurement of machinery for the Common Facility and Training Center (CFTC) need to be completed. The Bank has given its no-objection on the relevant bidding documents for the ICB. The PMU is yet to publish the Invitation for Bids (IFBs). 2) Implementation of Component 2 of CIPK must be expedited. The PMU is to publish Expressions of Interest (EOIs) for the TORs of the feasibility study of a Dates Processing Unit. Locations Country First Administrative Division Location Planned Actual Pakistan North-West Frontier Province Risalpur ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of mines that enhance production by Number Value 0.00 0.00 25.00 40 percent through use of new technologies Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 supported by the project Comments Implementation yet to commence Direct and indirect jobs created for relevant Number Value 0.00 0.00 750.00 Public Disclosure Copy skills developed by the project for the marble Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 sector in KP Comments Activities have not started yet. Improved sector knowledge through Number Value 0.00 0.00 2.00 identification of priority public sector shared Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 infrastructure interventions for KP’s food Comments processing sector Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR16104 Indicator Name Core Unit of Measure Baseline Current End Target Number of marble mines that will reduce waste Number Value 0.00 0.00 39.00 from 85% to 65% by adopting better mining Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 Public Disclosure Copy technology provided by infrastructure Comments The Component 1 activities established by project (no.) are yet to go into implementation. Number of workers trained by the CFTC over Number Value 0.00 0.00 100.00 the life of the project Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 Comments CFTC not functional yet. Processing facilities in KP that make use of the Number Value 0.00 0.00 40.00 CFTC for the improved processing of marble Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 blocks (cutting, polishing, sorting andgrading, Comments CFTC is yet to become netting and filling, and quality packing) operational. Firms (SMEs) participating in awareness Number Value 0.00 0.00 30.00 campaigns and public-private dialogue Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 Comments The activities under this component are yet to commence. Feasibility studies completed and disseminated Number Value 0.00 0.00 5.00 Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 Comments The TORs for two reports have been finalized Cluster Action Plan agreed upon by all Number Value 0.00 0.00 1.00 stakeholders Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 Comments Not Applicable at this stage Staff trained; disaggregated by institution, level Number Value 0.00 2.00 10.00 of administration, and gender. Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 Comments No additional training Public Disclosure Copy conducted since September 2013. Officials from Mines Department (GoKP) would attend an international conference on mining in Canada during March 2014. Increase in institutional effectiveness through Percentage Value 0.00 0.00 20.00 strengthened capacity Date 17-Sep-2013 20-Aug-2014 30-Jun-2015 Comments Survey yet to be done. Page 3 of 5 The World Bank Report No: ISR16104 Data on Financial Performance (as of 20-Jun-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P143661 TF-14957 Effective 17-Sep-2013 17-Sep-2013 17-Sep-2013 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P143661 TF-14957 Effective USD 9.00 9.00 0.00 0.50 8.50 6.00 Disbursement Graph Key Decisions Regarding Implementation Public Disclosure Copy The PMU needs to expedite the procurement of machinery for the Machinery pool and CFTC by completing the remaining steps on procurement of equipment for these two facilities. Further, the PMU should initiate the implementation of horticulture sector development activities under Component 2, including consultations with sector stakeholders. The procurement activities for the feasibility study commenced already, but the pace remains slow. Lastly, the PMU and PASDEC are discussing the possibility of locating the machinery pool and CFTC on the same site, instead of the initially agreed plan of developing two different sites for these. It is important to reach closure on this discussion, so that PASDEC can continue developing the land to ensure that it is ready by the time the procured machinery is dispatched. Restructuring History Page 4 of 5 The World Bank Report No: ISR16104 There has been no restructuring to date. Related Projects Public Disclosure Copy There are no related projects. Public Disclosure Copy Page 5 of 5