1. The following chapter summarizes the purpose of the evaluation, states the results of departmental self-evaluation through a project completion report (PCR), and provides details of the project to be evaluated. A. Evaluation Purpose and Process 2. The performance evaluation report for the Punjab Road Development Sector Project1 is included in the work program of the Independent Evaluation Department (IED) for 2013.2 The project was evaluated according to the project performance evaluation guidelines of the Asian Development Bank (ADB),3 based on relevance, effectiveness, efficiency, sustainability, and impact. The report aims to provide lessons and recommendations to future ADB operations in Pakistan. 3. The project completion report (PCR)4 had rated the project highly relevant, less effective, less efficient, and less sustainable. The PCR’s overall rating of the project is partly successful. It should be noted, however, that the project was not complete when the PCR was prepared. The coverage of the PCR was limited to the implementation activities of the project up to the physical completion in 2008, rather than the additional 3-year period, during which the project was substantially completed without ADB support. 4. An independent evaluation mission (IEM) visited Pakistan duing 3–12 December 2012 to evaluate the performance of the project. In completing this report, the views of relevant ADB departments and offices and those of the government and executing agency have been considered and incorporated where relevant. B. Expected Results 5. The project was expected to contribute to sustainable economic development and poverty reduction. The project area was mostly in lower and middle Punjab, where the poverty ratio was about 38%. According to the poverty impact assessment undertaken in connection with the project, the project was to directly benefit about 2.6 million road users, of which an estimated 1 million were poor people. The project’s intended impact was therefore poverty reduction. The project's outcomes were (i) deepened institutional reform and organizational change at the Communication and Works Department (CWD) of the Punjab provincial government (PPG), (ii) stre
Design and Implementation 7. This chapter summarizes details related to the design of the project, including its rationale, the way the project was formulated, and the resource assumptions underlying the project design. The purpose of the chapter is to allow an assessment of how project quality-at-entry was assured. The chapter also compares implementation arrangements as designed and as actually adopted. A. Rationale 8. Punjab is Pakistan’s most populated and economically significant province. When the project was designed, many parts of Punjab suffered from inadequate connectivity and many sections of the provincial road network were in poor condition. Improvement of provincial highways and RARs was therefore considered essential to enhance transport and communication between the rural population and market centers, and also contribute to poverty reduction and creation of employment opportunities. Given the wide geographic coverage of the roads in need of improvement and the range of pending policy and institutional issues, a sector approach to road development was adopted. The PPG had initiated measures to minimize institutional constraints at the CWD and solve some key policy issues, especially regarding road maintenance and private sector involvement. When the project was designed, major tasks awaiting completion included (i) deepening the institutional reform and organizational changes at the CWD, (ii) strengthening institutional capacity in road maintenance, (iii) securing stable funding for road maintenance, (iv) improving road safety, and (v) improving axle-load control. 9. The project design and outputs were consistent with the government's transport sector policy framework and its strategic objectives, which were defined in the Transport Sector Strategy and the Transport Sector Development Initiative that had been developed in collaboration with the World Bank. ADB's country assistance plan envisaged a principal focus on roads. The plan observed that past sector investment had not kept step with the demands of greater mobility and trading opportunities.5 Moreover, resource constraints had led to inadequate road rehabilitation and maintenance, resulting in rapidly deteriorating roads and an ever-increasing maintenance backlog. ADB’s strategic priority was to be accorded to the development of the provincial road networks, including rural roads. The country assistance plan focused on Punjab province, as its share of the country’s provincial road network accounted for about 54% of Pakistan’s total network. B. Formulation 10. The design of the project combined physical road improvements with policy and institutional reforms, both focusing on the PPG. As such, the project reflected a
a single project and focus on a single road type. The policy component of the Road Sector Development Program, approved in 2001, included a comprehensive road subsector reform program for the central government, which was intended to provide a blueprint for reforms in other provinces.6 The reforms centered on (i) improving road maintenance to preserve the assets and increase road safety, (ii) controlling truck overloading, (iii) carrying out institutional reforms of road agencies to achieve greater service efficiency, and (iv) increasing private sector involvement to help relieve development funding constraints and further enhance efficiency. 11. Project formulation benefited from available domestic and international expertise, and active participation of and coordination with counterpart institutions, affected people, and development partners. The seven provincial highway sections (footnote 12) were part of the provincial road master plan and were assessed under a series of ADB technical assistance (TA) projects.7 The selection of the RARs involved consultation with officials from the newly established district administrations, nongovernment organizations, public representatives, road users, and poor people living along or near the roads. It is unclear, however, whether the preparatory work based on mainly small-scale TA projects was adequate to ensure quality at entry. In hindsight, given the substantial cost overruns, the CWD’s institutional weaknesses, and the PPG’s wavering ownership of the envisaged reforms, the quality of project formulation is questionable. 12. The rehabilitation of the roads followed a sector approach, which according to the ADB policy for such loans required that (i) a prioritized investment plan existed, (ii) the CWD had the necessary implementation capacity, and (iii) the design of the project included institutional and policy reforms. Implementation was also predicated on the CWD’s capacity to identify, select, and prepare the subprojects. The eligibility criteria for the RARs were challenging, as each road would have to (i) be economically viable; (ii) be screened for environmental impacts; (iii) be selected based on prioritized district development ranking; (iv) be selected and designed to avoid or minimize resettlement, with a resettlement plan prepared where needed; (v) be part of the provincial road master plan; (vi) comply with all applicable ADB guidelines; and (vii) have the commitment of the districts to allocate resources for operation and maintenance of the roads under their purview. 13. The institutional development component also drew on the results of TA provided by ADB to the PPG (footnote 7). The component centered on a capacitybuilding and organizational restructuring program that the PPG had approved in 2002. C. Cost, Financing, and Executing Arrangements 14. Appendix 2 presents details of the original and actual project costs along with a comparison of the original and actual project scope. At appraisal, the cost of the project was estimated at $222.1 million. An ADB loan of $150 million equivalent w
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