BRIEF FOR CHAIRMAN, P&D BOARD FOR MEETING WITH FOCUS GROUP ON

16-03-2010 AT P&D DEPARTMENT IN COMMITTEE ROOM NO. II

ITEM NO. 5

1. Project Title Punjab Economic Opportunities Programme (PEOP)

2. Location Bahawalpur, Bahawalpur, Lodhran & Muzaffargarh Districts
3. Sponsoring Agency Planning & Development Department, Government of the
Punjab.
Department for International Development (DFID)/UK
4. Execution Punjab Skill Development Company, Planning &
Development Department, Project Implementation Team,
Livestock and Dairy Development Department.
5. Implementation Period Four years ( January, 2010 to December, 2013)
6. Operation & Punjab Skill Development Fund and Project implementation
Maintenance Team, Livestock Department.
7. Cost : Rs. Million Government Department for Total
of the Punjab International
Development/ UK
3,422.500 4,107.000 7,529.500

BRIEF BACKGROUND OF THE PROJECT

The Project envisage uplifting social and economic plight of the poor in four districts of
Southern Punjab being the most poverty struck areas with poverty level of 48-68% Rural poor in
these districts largely comprise small farmers, tenants and the landless labourers. The project will
enhance their marketable skill levels through proposed interventions which will improve income
level of poor framers in livestock / dairy sectors. Inputs, outputs and outcomes of the project are
given at Annex-I. the project will have four components is as under:

i. Punjab Skills Development Fund (PSDF)

ii. Livestock and Dairying Interventions

iii. Centre for Inclusive Growth

iv. Technical Cooperation

10. OBJECTIVES
The specific objectives, of PEOP are as follows:
• Support the marginalised regions in Punjab through policy level interventions and
direct interventions at the grass root level.
• Poverty alleviation through improvement in credentials and quality of human
resource.
• Improve skill level to increase income opportunities of the unemployed and
improving the income level of employed by improving their skill set.
 • Improve their income by enhancing the quantity and quality of their livestock.
• Provision of marketable skills and interventions to improve incomes of the poor
farmers in the livestock and dairy sector.
11. PROJECT IMPLEMENTATION
Actual Implementation will be done through Punjab Skill Development fund (PSDF) and
Project Implementation Team (PIT) on brief of P&D Department and Livestock Department. A
Programme Steering Committee under the Chairman, P&D Board will be set up which will be
responsible for providing lead and policy advice, approval of six monthly work plans and
reviewing the progress of the programme. A Programme Coordinator will be appointed as
overall incharge of the project.

12. SUMMARY OF THE COST

a) Itemized Cost Details Of The Project (Million Rs.)
Sr.# Items Skill PIT, Punjab Total % Of
Development LDDD Economic Total
Component Program /
PC-I
i) Programme activities 3,060.570 3,102.340 - 6,162.91 82.1
0
ii) Pay and allowances 161.490 117.380 327.130 606.000 8.0
iii) Operational costs 105.970 108.310 295.970 510.250 6.7
iv) Capital cost 29.500 29.500 61.400 120.400 1.5
- Vehicles - - 35.670
- Equipment - - 25.730
v) PCU share 64.970 64.970 - 129.940 1.7
Total 3,422.500 3,422.500 684.500 7,583.50 100.0
0
b) Agency – Wise Budget (Million Rs.)
Sr. Components DFID Govt. of Total % of
# Punjab Total
1 Punjab Skill Development Fund (PSDP) 1,711.250 1,711.250 3,422.500 45.5
2 Livestock & Dairy Development 1,711.250 1,711.250 3,422.500 45.5
Intervention
3 Technical Co-operation 616.050 - 616.050 8.0
4 The Centre for Inclusive Growth 68.450 - 68.450 1.0
Total Programme Cost 4,107.000 3,422.500 7,529.500 100.0

Latest Status
The project will be discussed in CDWP on 18-03-2010.
Observation of P&D Division

Annotated reply of observation of P&D Division is enclosed.

Comments of P&D Division Replies

It is not clear whether concept of the project was
got cleared by the PDWP of federal Concept
Clearance Committee as it is a foreign assistance
project. If so then related minutes / decisions may
be provided. It may also be clarifies whether DFID
aid is loan or grant.
Overall project cost has been given in
disintegrated form. A consolidated cost table on all
items / activities for each participating agency
along with detailed sub-tables should be indicated
in the PC –I.
A copy of agreement between Government of
Punjab and DFID or its salient points / agreed cost
figures / tables along with physical areas should
also be annexed in PC-I. The PC-I is silent on
details of physical activities except livestock
component.
It is required that where possible, quantified
activities of the project to facilitate Result Based
Monitoring should be added to make it a
monitorable document.
It is a high cost mega project with substantial
contribution of GOPb and DFID but covers only
four districts which are already receiving focused
attention in development framework. It is
suggested that other under- developed districts of
Southern Punjab like D.G. Khan, Rajanpur, etc.
may also be covered under it.
Referring to proposed pay / allowances (Annex-
VI), a project allowance of Rs. 110,000/- has been
demanded for programme Coordinator (in case of
Government servant), Rs. 80,000/- for deputy
Coordinator and so on. In the federal Government,
such high allowances are not permissible. This
needs to be carefully reviewed for all proposed
staff of project.
A feasibility study on such a high cost mega
project should have been mandatory. Basis of
proposed targets like 35% hike in milk yield,
return of 8% form current investment and other
like C&B ratio, EIRR, FIRR, etc should be added
in PC-I