Subject:- FINANCIAL ASSISTANCE FROM IFAD

IFAD has sown its interest for providing financial assistance

to the tune of US $ 15-20 million for components like land to land less
people, infrastructure and micro finance for agriculture and livestock
extension in the districts of Muzaffargarh and Rajanpur.
The concept paper available with ECA section (Flag “A”)
was examined in a meeting with Secretary, P&D and it was observed that
the financial assistance might fit into the idea of small house cum
kitchen plant for eradication poverty in Punjab. The idea was
floated by Justice (Rtd) Mr. Khalil-ur-Rehman and a PC-I in this connection
has been developed by Agriculture Department.
It is proposed that we may hold a meeting to assess the
possibility of availing financial assistance from IFAD on the concept of
small house cum garden plants for eradication of poverty in
Punjab. The representatives from Board of Revenue, Agriculture
Department, Irrigation & Power Department, DCO Districts Bahawalpur,
Muzaffargarh, Rajanpur and Bahawalnagar may be invited in the
meeting. Sr. Chief (Agriculture) and Sr. Chief (ECA) may also participate
in the meeting.
May indicate the date and time for the proposed meeting.

(Dr. Mahmood Khalid

Qamar)
Chief (Regional Planning)
29.06.2009
SECRETARY, P&D
Subject:- CONCEPT NOTE FOR IFAD FINANCIAL ASSISTANCE
REGARDING LAND ALLOCATION SCHEME FOR SMALL
HOUSE-CUM GARDEN PLOTS FOR POVERTY
ERADICATION IN SOUTHERN PUNJAB

As per decision of the meeting held on 17.07.2009 under

the chairmanship of Secretary, P&D, I have prepared a concept note
for IFAD Financial Assistance regarding Land Allocation scheme for
Small House-Cum Garden Plots for Poverty Eradication in Southern
Punjab. The concept note may be discussed at some forum for its
appropriate and valuable addition.

(Dr. Mahmood Khalid Qamar)

Chief (Regional Planning)
27.07.2009

SECRETARY,
Subject:- SOUTHERN PUNJAB POVERTY ALLEVIATION PROJECT
(SPPAP) IFAD PROJECT DESIGN MISSION

As desired by Chief Economist a note for Chairman, P&D Board has been
prepared on Southern Punjab Poverty Alleviation Project (SPPAP) and is placed below
for further necessary action. (Soft copy is placed in the folder of Chief Economist).

(Dr. Mahmood Khalid Qamar)

Chief (Regional Planning)
08.12.2009

CHIEF ECONOMIST
 WORKING PAPER

01 Name of the Southern Punjab Poverty Alleviation Project (SPPAP)

project
02 Location The Project will be implemented in the districts of Bahawalnagar,
Bahawalpur, Muzzafarghar and Rajanbpur in Punjab.
03 Authorities 1. Sponsoring: Planning and Development Department (P&D)
responsible for Government of the Punjab.
2. Execution: Planning and Development Department,
Government of the Punjab. A project Management Unit
(PMU) shall be formed for project execution and
coordination.
04 Operation and Community Organizations
Maintenance
05 Concerned Economic affairs Division
federal Ministry
06 Components wise Components 1. Livelihood Enhancement.
implementation Components 2. Agriculture And Livestock
arrangement will Components 3. Project management: a) planning and Development
be as follows: Department, PMU working under a Project Steering Committee
(PSC) headed by Chairman P&D board: The PSC will comprise of
Secretaries of Agriculture and Livestock Department b)
representative of Finance Department c) Districts Coordination
Officers of the project districts and; d) Others as may be nominated
by Chairman PSC.
07 Plan Provision Project is included in the medium term/five year plan.
08 Project The proposed project is well aligned with the overall poverty
Objectives and its alleviation strategy and the provincial economic development and
Relationship with poverty alleviation strategy of the Government of Punjab. In addition,
Sectoral the project is also consistent with the IFAD Strategic Framework and
Objectives. the strategy outlined in the Pakistan COSOP of 2009 covering the
period 2010-2014. The Punjab Government medium term
development framework lay down the development activities to be
carried out in the province in various sectors of the provincial
economy.
The design of Southern Punjab Rural Poverty Alleviation Project
(SPPAP) has emerged from a request may be the Government of
Punjab of assistance. Several discussions have been held with the
Planning and Development Board, Agriculture and Livestock
Department and Finance Department in Punjab to ensure that the
project closely aligned current priorities and policies of the provincial
Government. The current project will focus on Government priorities
in the area of agriculture, livestock, vocational and enterprise
development in keeping with the poverty alleviation target of the
government.
09 Background and The highest incidence of poverty in the zones of Southern Punjab that
Rationale rely most on crop incomes. The increase in growth over the past few
years, which was accompanied by unprecedented increases in food
and fuel prices has exacerbated the severity and extent of poverty in
these region, Southern Punjab is characterized by poor socio-
economic status. The Southern Punjab Poverty Alleviation Project
(SPPAP) is designed to target the poorest districts of Southern Punjab
in the cotton-wheat zone and low intensity areas.
10 Projects Goal and
objective
11 Geographic The Project will be implemented in the districts of Bahawalnagar,
Coverage and Bahawalpur, Muzzafarghar and Rajanbpur. The total rural population
Targeting of these districts is estimated to be 8.6 million or just over 1.2 million
Strategy households. The number of rural households in each of the four
districts which is likely to fall in the lowest three poverty bands in
expected to be 419,364 or 34% of the total households. It is estimated
that the project will target around 80.000 households or 19% of the
poor households in the four districts.
12 Description, Rural Poverty in the Punjab: Punjab gross provincial product (GPP)
justification and grew at 7.8 per cent 2006 and the Punjab Government has estimated
Technical the decline in poverty headcount to have been about 11.52 per cent.
Parameter.
13 The Target The Target group of the Southern Punjab Poverty Alleviation Project
Group, Including will be landless labourers, smallholder farmers, , women headed
Gender Issues households with a special focus on women from the target group
households.
14 Smallholder Farmer with holdings of less than 5 acres in irrigated areas and up to
Farmers 10-15 acres in the arid zone or rain-fed areas are included in this
category. Some of these farmers own the land while others have
occupied State land. With fragmentation of land holding due to
inheritance or increased pressure in the number of people dependant
on the land through joint ownership, the income from this land is
insufficient to meet basis need s. Several factors contribute to the low
productivity of the land.
15 Projects SPPAP has three main components. These include (i) Livelihoods
Components enhancement (ii) Agriculture and Livestock Development and (iii)
Project management.
Component 1: Livelihoods Enhancement consists of three sub-
components; 1.1 Assets creation 1.2 Vocational and entrepreneurial
training and 1.3 Community physical infrastructures. The first sub-
components is targeted at women from households that score
between 0-11 on the poverty score card.
The second sub-components is aimed at households with limited
skills. Under this sub-component vocational and entrepreneurial
training will be provided to men and women in relevant traders
appropriate for productive employment or business development in
the project districts.
The third sub-components under the Livelihoods enhancement
components is community Physical Infrastructure (CPI) which is
aimed at communities with limited access to basic services.
Component 2. Agriculture and Livestock Development. The
Agriculture and Livestock development component is directed at the
smallholder farmers in Southern Punjab. It consists of three sub-
components; (i) Productivity Enhancement Initiatives (ii) Technology
Transfer to farmer using the Farmer Fields Schools approach and (iii)
Training and Service providers in agriculture and livestock.
The second sub-components is designed to transfer available
technologies through the Farmer Field Schools (FFS) methodology.
The concept of farmer- centered approaches for technology transfer
have been successfully tried and tested in Pakistan that can improve
productivity such as improved production techniques, conservation
 agriculture which could include minimum or zero tillage and crops
rotation practices depending upon the cropping pattern, improved soil
fertility measures, better seed quality, use of improve verities, tunnel
farming, compost making, Integrated Pest Management techniques,
water saving technologies, livestock feeding and watering practices,
hay & silage making, livestock production and Health management
practices etc.
16 Capital Cost Projects cost as of May 2010. Including physical and price
Estimated contingencies, are estimated at PKR 4.13 billion (USD 49.1 million
at 1 US$=84 PKR). The total baseline costs are PKR 3.1 billion,
while price and Physical contingencies account for PKR 1.3 billion.
The major investments are components 1: Livelihoods
Enhancement which represents the core productive Project activities
constituting 63% (USD 23.5 million) of base costs. Following on the
component 2: Agriculture and Livestock which takes up 20%
(USD 7.4 million) of base costs. Component 3. Projects
Management Takes up 17% of base costs (USD 6.1million).
17 Table 2: Components Project Base Summary % Total Base
Summary by
Components: Livelihoods (PKR) (USS) Costs
Enhancement

Asset 600,874,706 7,153,270 19

Creation /a

vocational and 633,978,175 7,547,359 20

Entrepreneurial
Training/b
Community 734,540,063 8,744,525 24
Physical
Infrastructure /c

Subtotal. 1.969,392,944 23,445,154 63

Agriculture (PKR) (USS) Costs
and Livestock
Development.
Productivity 261,924,284 3,118,146 8
Enhancement
Initiative/d
Technical 196,443,126 2,338,609 6
Transfer/e
Training 161,868,001 1,927,000 5
Service
Providers
Subtotal 620,235,411 7.383,755 20
Project 512,659,870 6,103,094 17
Management /f
Total Baseline 3,102,288,225 36,932,003 100
Costs
Physical 51,792,567 616,578 2
Contingencies
 Price 971,980,503 11,571,196 31
Contingencies
Total Project 4,126,061,295 49,119,777 133
Costs
18 Annual Operating No post completion costs to Government will be incurred under the
and Maintenance project. The Community physical infrastructure as described in detail
Cost after in the Project Implementation Manual shall be operated and
completion of the maintained by the COs.
Project