Country Operations Business Plan. Pakistan October 2015

Transcription

1 Country Operations Business Plan October 2015 Pakistan This document is being disclosed to the public in accordance with ADB's Public Communications Policy 2011.

2 CURRENCY EQUIVALENTS (as of 29 September 2015) Currency unit Pakistan rupee/s (PRe/PRs) PRe1.00 = $ $1.00 = PRs ABBREVIATIONS ADB Asian Development Bank ADF Asian Development Fund GDP gross domestic product MFF multitranche financing facility OCR ordinary capital resources PDA project design advance TA technical assistance NOTE In this report, $ refers to US dollars. Vice-President W. Zhang, Operations 1 Director General S. O Sullivan, Central and West Asia Department (CWRD) Country Director W.E. Liepach, Pakistan Resident Mission (PRM), CWRD Team leader Team members S. Bhandari, Principal Economist, PRM, CWRD S. Paracha, Senior Programs Officer, PRM, CWRD M.Faisal, Operations Assistant, PRM, CWRD In preparing any country partnership strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 CONTENTS Page I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1 II. INDICATIVE RESOURCE PARAMETERS 1 APPENDIXES 1. Indicative Assistance Pipeline 2 2. Assistance Program for the Current Year 6

4 I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1. The country operations business plan, for Pakistan of the Asian Development Bank (ADB) is aligned with ADB s country partnership strategy, for Pakistan. 1 The country partnership strategy proposes to support the government s objective of high, sustained, and inclusive growth focusing on infrastructure development and institutional reforms. It is also consistent with the priorities set out in ADB s Midterm Review of Strategy It is aligned with the government s development strategy, Vision 2025, and the development strategies and plans of provincial governments. 3 II. INDICATIVE RESOURCE PARAMETERS 2. Indicative resources available during for ADB s sovereign operations amount to $3,654 million in loans, comprising $2,444 million in market-based ordinary capital resources (OCR) and $1,210 million in concessional resources from the Asian Development Fund (ADF) or concessional OCR. 4 The final country allocations of concessional OCR for 2017 and 2018 will be subject to available concessional OCR and the outcome of the country performance assessments. These resources will be supplemented with ADB s nonsovereign operations, subject to headroom constraints, as well as official and commercial cofinancing. 3. The proposed sovereign lending program for amounts to $3912 million, consisting of $2802 million from OCR and $1110 million from ADF. In addition to stand-alone projects, it comprises two policy-based programs, six multitranche financing facilities, two project design advances, and one technical assistance (TA) loan. These public sector projects and programs will be supplemented with ADB s nonsovereign operations. The indicative nonlending TA program for 2016 amounts to $8.7 million, mainly for project preparatory TA. As in the program for 2015 shown in Tables A2.1 and A2.2, efforts will be made to mobilize cofinancing for both investment and TA projects. Sources could include official and commercial partners and ADB s trust funds such as the Republic of Korea e-asia and Knowledge Partnership Fund, Urban Financing Partnership Facility, Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility, among others. 4. The cost-sharing and financing parameters during envisage a ceiling of 85% for the loan portfolio and 90% for the TA portfolio, similar to current limits. Actual shares for specific ADB projects will be determined by project-specific considerations and available cofinancing. 1 ADB Country Partnership Strategy: Pakistan, Manila. 2 ADB Midterm Review of Strategy 2020: Meeting the Challenges of a Transforming Asia and Pacific. Manila. 3 Government of Pakistan, Planning Commission Pakistan 2025 One Nation, One Vision. Islamabad. 4 This reflects the approved combination of ADF lending resources with the OCR balance sheet that will become effective on 1 January 2017.

5 INDICATIVE ASSISTANCE PIPELINE Table A1.1: Lending Products, Strategic Agendas and Year of Cost ($ million) ADB Project/Program Name Poverty Drivers of PPTA/ ADF Cofinance Sector Targeting Change Division PDA Total OCR Loans Grants Total Gov t 2016 Firm Pehur High Level Canal ANR TI-G IEG, ESG CWER Extension Khyber Pakhtunkhwa Water Resources Development ANR TI-G IEG, ESG CWER Jalalpur Irrigation ANR TI-G IEG, ESG, GEM CWER Sustainable Energy Sector ENE GI IEG, GCD CWEN Reform, Subprogram 3 Second Power Distribution, ENE GI IEG, PAR CWEN MFF T1 Second Transmission, MFF T1 ENE GI IEG, PAR CWEN Financial Sector and Debt FIN GI IEG, GCD, PSD CWPF Management (TA) PSE Reform Program, PSM GI IEG, GCD, PSD CWPF Subprogram 1 Enhancing PPPs in Pakistan (Punjab) PSM GI IEG, GCD, PAR CWPF National Highways M-4 TRA GI IEG, RCI CWTC (Shorkot Khanewal) Peshawar Sustainable Bus TRA GI IEG, GEM CWUW Rapid Transit PDA Post-Flood Highways TRA TI-G IEG, GEM PRM Rehabilitation Project Punjab Intermediate Cities PDA, MFF WUS TI-M IEG, GEM CWUW Total , Standby Medium-Sized Hydro Development Investment Program MFF T1 ENE GI IEG, ESG CWEN CAREC Corridor TRA GI IEG, RCI CWTC Development, MFF T1 Provincial Roads (KP, M1- TRA TI-G IEG, PAR CWTC Chakdara) Karachi Mass Transit TRA GI IEG, GEM CWUW Total Appendix 1

6 Strategic Agendas and Year of Cost ($ million) ADB Project/Program Name Poverty Drivers of PPTA/ ADF Cofinance Sector Targeting Change Division PDA Total OCR Loans Grants Total Gov t 2017 Firm Jalalpur Irrigation ANR TI-G IEG, ESG, GEM CWER Sustainable Energy Sector ENE GI IEG, GCD CWEN Reform, Subprogram 4 Gas Sector Development ENE GI IEG, ESG CWEN Second Transmission, MFF ENE GI IEG, RCI CWEN T2 Medium-Sized Hydro Development Investment Program, MFF T1 ENE GI IEG, ESG, PAR CWEN Social Enterprise (Inclusive FIN TI-H IEG, GEM, PSD CWPF Business) Financial Inclusion for FIN TI-H IEG, GEM, PSD CWPF Women PSE Reform Program, PSM GI IEG, GCD, PSD CWPF Subprogram 2 Enhancing PPPs in Pakistan (Sindh) PSM GI IEG, GCD, PSD CWPF CAREC Corridor Development, MFF T1 TRA GI IEG, RCI CWTC Provincial Roads (KP,M1- Chakdara) TRA TI-G IEG, PAR CWTC Karachi Mass Transit TRA GI IEG, GEM CWUW Peshawar Sustainable Bus TRA GI IEG, GEM CWUW Rapid Transit Total , Standby Balochistan Water ANR TI-G IEG, ESG CWER Resources Second Power Distribution, ENE GI IEG, GCD CWEN MFF T2 Pakistan Infrastructure FIN GI IEG, PSD CWPF Financing Facility, MFF T1 Sindh Urban Development WUS TI-M IEG, GEM CWUW Project Punjab Intermediate Cities, MFF WUS TI-M IEG, GEM CWUW Total Appendix 1 3

7 Poverty Targeting Strategic Agendas and Drivers of Change Year of PPTA/ PDA Cost ($ million) ADB ADF Loans Grants Total Cofinance Project/Program Name Sector Division Total OCR Gov t 2018 Firm Balochistan Water ANR TI-G IEG, ESG CWER Resources Sustainable Energy Sector ENE GI IEG, GCD CWEN Reform, Subprogram 5 Second Power Distribution, ENE GI IEG, GCD CWEN MFF T2 Medium-Sized Hydro ENE GI IEG, ESG CWEN Development Investment Program, MFF, T2 Pakistan Infrastructure FIN GI IEG, PSD CWPF Financing Facility, MFF T1 PSE Reform Program, PSM GI IEG, GCD, PSD CWPF Subprogram 3 Enhancing PPPs in Pakistan PSM GI IEG, GCD, PSD CWPF (Punjab) Punjab Intermediate Cities, WUS GI IEG, GEM CWUW MFF T1 KP Intermediate Cities, MFF WUS GI IEG, GEM CWUW T1 Sindh Urban Development WUS TI-M IEG, GEM CWUW Project Total , Standby Punjab Irrigation Project ANR TI-G IEG, GEM CWER Railways Development TRA GI IEG, RCI CWTC Access to Energy (Provincial) ENE GI IEG, ESG CWEN Total ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture and natural resources; CAREC = Central Asia Regional Economic Cooperation; CWEN = Energy Division; CWER = Environment, Natural Resources and Agriculture Division; CWPF = Public Management, Financial Sector and Trade Division; CWTC = Transport and Communications Division; CWUW = Urban Development and Water Division; ENE = energy; ESG = environmentally sustainable growth; FIN = finance; GCD = governance and capacity development; GEM = gender equity and mainstreaming; GI = general intervention; Gov t = government; IEG = inclusive economic growth; KP = Khyber Pakhtunkhwa; M = motorway; MFF = multitranche financing facility; OCR = ordinary capital resources; PAR = partnerships; PDA = project design advance; PPP = public private partnership; PPTA = project preparatory technical assistance; PRM = Pakistan Resident Mission; PSD = private sector development; PSE = public sector enterprise; PSM = public sector management; RCI = regional integration; T = tranche; TA = technical assistance; = to be determined; TI-G = targeted intervention geographic dimensions of inclusive growth; TI-H = targeted intervention income poverty at household level; TI-M = targeted intervention Millennium Development Goals; TRA = transport; WUS = water and other urban infrastructure and services. Source: Asian Development Bank estimates. 4 Appendix 1

8 Table A1.2: Nonlending Products and Services, Sources of Funding ADB Others Total ($ 000) Assistance Name Sector Division Assistance Type Source Amount ($ 000) Source a Amount ($ 000) 2016 Land Zone Planning ANR CWER PATA TASF 1, ,000.0 Institutional Transformation: Punjab Irrigation ANR CWER CDTA TASF 1, ,500.0 to Water Resources Department Punjab Irrigation Project ANR CWER PPTA TASF Balochistan Water Resources Project ANR CWER PPTA TASF Financial Inclusion for Women FIN CWPF PPTA TASF Social Enterprise (Inclusive Business) FIN CWPF PPTA TASF Railway Development TRA CWTC PPTA TASF 1, ,000.0 Sindh Urban Development Project WUS CWUW PPTA TASF Identifying Smart Cities Development Potential in Pakistan WUS CWUW PATA TASF 1, ,500.0 Enhancing Public Private Partnerships in Pakistan (Punjab: associated TA) PSM CWPF CDTA DFID 1, ,144.0 MFF Pakistan Infrastructure Financing Facility FIN PRM PPTA TASF Economic Corridor Program (Planning) TRA PRM PATA 0.0 DFID 2, ,775.0 Total 8, , , Khyber Pakhtunkhwa Intermediate Cities, MFF WUS CWUW PPTA TASF Total ADB = Asian Development Bank; ANR = agriculture and natural resources; CDTA = capacity development technical assistance; CWER = Environment, Natural Resources and Agriculture Division; CWPF = Public Management, Financial Sector and Trade Division; CWTC = Transport and Communications Division; CWUW = Urban Development and Water Division; DFID = Department for International Development of the United Kingdom; FIN = finance; MFF = multitranche financing facility; PATA = policy and advisory technical assistance; PPTA = project preparatory technical assistance; PRM = Pakistan Resident Mission; PSM = public sector management; TA = technical assistance; TASF = Technical Assistance Special Fund; TRA = transport; WUS = water and other urban infrastructure and services. Source: Asian Development Bank estimates. Appendix 1 5

9 ASSISTANCE PROGRAM FOR THE CURRENT YEAR Table A2.1: Lending Products, 2015 Poverty Targeting Strategic Agendas and Drivers of Change Division Year of PPTA/ PDA Cost ($ million) ADB ADF Loans Grants Total Project/Program Name Sector Total OCR Gov t 2015 Firm Punjab Irrigated Agriculture ANR GI IEG, GEM PRM Investment (additional financing) Flood Reconstruction and ANR TI-G IEG, GEM PRM Resilience Project Sustainable Energy Sector ENE GI IEG, GCD, CWEN Reform, Subprogram 2 PAR Enhancing PPPs in Pakistan PSM GI IEG, GCD, (Sindh) PSD, PAR CWPF National Highways M-4 TRA GI IEG, RCI, CWTC (Gojra Shorkot) PAR CAREC Regional Improving TRA GI IEG, RCI, CWTC Border Services PAR Provincial Roads (Sindh) TRA TI-G IEG CWTC Karachi Mass Transit TRA GI IEG, GEM CWUW Total , Cofinance 2015 Standby Jalalpur Irrigation ANR TI-G IEG, GEM, CWER GCD Second Power Distribution, ENE GI IEG, GCD CWEN MFF T1 Diamer Basha TA Loan ENE GI IEG, ESG CWEN Financial Sector and Debt FIN TI-G IEG, GCD, CWPF Management (TA) PSD Post-Flood Highways TRA TI-G IEG, GEM PRM Rehabilitation Project National Highways M-4 TRA GI IEG, RCI CWTC (Shorkot Khanewal) Total ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture and natural resources; CAREC = Central Asia Regional Economic Cooperation; CWEN = Energy Division; CWER = Environment, Natural Resources and Agriculture Division; CWPF = Public Management, Financial Sector and Trade Division; CWTC = Transport and Communications Division; CWUW = Urban Development and Water Division; ENE = energy; ESG = environmentally sustainable growth; FIN = Finance; GCD = governance and capacity development; Gov t = government; GEM = gender equity and mainstreaming; GI = general intervention; IEG = inclusive economic growth; M = motorway; MFF = multitranche financing facility; OCR = ordinary capital resources; PAR = partnerships; PDA = project design advance; PPP = public private partnership; PPTA = project preparatory technical assistance; PRM = Pakistan Resident Mission; PSD = private sector development; PSM = public sector management; RCI = regional integration; T = tranche; TA = technical assistance; = to be determined; TI-G = targeted intervention geographic dimensions of inclusive growth; TRA = transport. Source: Asian Development Bank estimates. 6 Appendix 2

10 Table A2.2: Nonlending Products and Services, 2015 Assistance Type ADB Sources of Funding Amount ($ 000) Source Others Amount ($ 000) Assistance Name Sector Division Source 2015 Deploying ICT for Agricultural Efficiency ANR CWER CDTA 0.0 KICT Access to Energy (Provincial) ENE CWEN PPTA TASF Gas Sector Development ENE CWEN PPTA TASF 1, ,500.0 Hydropower Development (Khyber Pakhtunkhwa) ENE CWEN PPTA TASF 1, ,500.0 Social Protection Initiatives Support FIN CWPF CDTA 0.0 TAGF-FRA Enhancing PPPs in Pakistan (Sindh: PSM CWPF CDTA 0.0 DFID 1, ,144.0 associated TA) Strengthening Corporate Social Responsibility PSM CWPF/ CDTA 0.0 JFPR for Development PRM Enhancing PPPs in Pakistan (Federal Support) PSM CWPF CDTA 0.0 DFID 3, ,800.0 Provincial Roads (Khyber Pakhtunkhwa) TRA CWTC PPTA TASF 1, ,000.0 CAREC Corridor Development, MFF TRA CWTC PPTA TASF 1, ,500.0 Economic Corridor Program (Transport) TRA CWTC CDTA 0.0 DFID 15, ,000.0 Economic Corridor Program (Planning) TRA PRM PATA 0.0 DFID Total 6, , ,644.0 ADB = Asian Development Bank; ANR = agriculture, natural resources and rural development; CAREC = Central Asia Regional Economic Cooperation; CDTA = capacity development technical assistance; CWEN = Energy Division; CWER = Environment, Natural Resources and Agriculture Division; CWPF = Public Management, Financial Sector and Trade Division; CWTC = Transport and Communications Division; DFID = Department for International Development of the United Kingdom; ENE = energy; FIN = finance; ICT = information and communication technology; JFPR = Japan Fund for Poverty Reduction; KICT = Republic of Korea e-asia and Knowledge Partnership Fund; MFF = multitranche financing facility; PATA = policy and advisory technical assistance; PPP = public private partnership; PPTA = project preparatory technical assistance; PRM = Pakistan Resident Mission; PSM = public sector management; TA = technical assistance; TAGF-FRA = Technical Assistance Grant Fund (France); TASF = Technical Assistance Special Fund; TRA = transport. Source: Asian Development Bank estimates. Total ($ 000) Appendix 2 7