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Issues in the Management of Public Sector Projects in Pakistan

Issues in the Management of Public Sector Projects in Pakistan. Atiq ur Rehman atiq787@gmail.com. What intended beneficiaries needed?. What intended beneficiaries asked for?. What planners promised …in PC1. What intended beneficiaries felt…. What was delivered….

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Issues in the Management of Public Sector Projects in Pakistan

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  1. Issues in the Management of Public Sector Projects in Pakistan Atiq ur Rehmanatiq787@gmail.com

  2. What intended beneficiaries needed?

  3. What intended beneficiaries asked for?

  4. What planners promised …in PC1

  5. What intended beneficiaries felt…

  6. What was delivered…

  7. What was received by intended beneficiaries…

  8. Aid, Governance, andDevelopment Outcomes

  9. 2007

  10. CPI and RANK

  11. Fate of World Bank Projects in Pakistan 1996-01

  12. World Corruption Map

  13. ADB Projects in 38 Countries • Audit Reports main finding: 70% of ADB Projects are unlikely to provide long-term social and economic benefits • Unsustainable and/or failed projects are potentially the equivalent of US$ 4.6 bn of Pakistan’s US$ 6.5 bn in ADB debt. • All four projects evaluated in 2001 were found unsustainable

  14.  “The key is not to prioritize what's on your schedule, but to schedule your priorities.” Stephen R. Covey quotes

  15. Planning Machinery in Pakistan

  16. Issues along Project Cycle

  17. Generic Project Cycle PC-V Monitoring & Evaluation PC-I/PC-II

  18. “Well begun is half done”Mary Poppins

  19. Project Preparation • Feasibility studies are rarely undertaken • Lack of information practices • Lack of capacity in project planning • Lack of multidisciplinary approach • Incomplete and imprecise planning: 4Qs

  20. Lack of cohesion between cost and physical targets • Lack of involvement of stakeholders in planning • Organizational designs are not appropriately made - conflicts. • Modalities of implementation not defined • Tools are not used

  21. Common Issues

  22. Knowledge Management • Completed projects offer a wealth of information on the possible impacts of and obstacles to development projects, • Why the lessons are not learned?

  23. Stage Specific Issues

  24. Stage - I Project Identification

  25. Issues in Identification • How projects are identified? • Basis of identification? …individualism • Expertise basis • Will of power • No scientific way of identification - • “knowledge-base” • Stakeholders involvement • Duplication of activities?

  26. Stage - II Project Planning

  27. All projects suffer from poor preparation (PMI)

  28. Project Cases

  29. Bolan Medical College • Cost of the Bolan Medical College & Hospital Complex in Quetta was originally estimated at Rs70 million but ended up at Rs750 million.

  30. Container terminal at Port Qasim • Cost of a container terminal at Port Qasim was estimated at Rs320 million when the project was first proposed in the early 1980s but ended up at Rs2,400 million by the time it was built in the mid-1990s.

  31. Rice Polishing Plant • It took more than 17 years for a rice-polishing plant in Sindh to be set up. • When the Auditor-General of Pakistan’s office asked the project agency in question why it had taken so long, the agency said • “the operating instructions for the machinery imported from Czechoslovakia were in the Czech language and the agency couldn’t find anybody to translate them”

  32. Chashma Right Bank Irrigation Project (CRBIP) • Chashma: Original cost = Rs. 1.570 billion • By 1999: Cost escalated to Rs. 17 billion but just 15% work completed

  33. Jagran Hydropower project • 66.5 MW project • 1991 Original cost = Rs. 2.616 billion • 1994: Revised Cost = Rs. 2.603 billion • Actual Cost =Rs. 4.401 billion • Delay = 3 years

  34. Establishment of Airport at Sialkot • Project for the establishment of Airport at Sialkot was completed in just Rs. 2.7 billion. • Private sector ensured good quality of runways and other infrastructure at lower cost as compared to other airports completed by CAA. • It is worth comparing with proposed airport at Islamabad, wherein case estimated cost is around Rs. 24 billion.

  35. Issues

  36. Project Preparation • Feasibility studies are rarely undertaken • Lack of information practices • Lack of capacity in project planning • Lack of multidisciplinary approach • Incomplete and imprecise planning: 4Qs

  37. Lack of cohesion between cost and physical targets • Lack of involvement of stakeholders in planning • Organizational designs are not appropriately made - conflicts. • Modalities of implementation not defined • Tools are not used

  38. Conceptual Map of Project Planning

  39. FRAMEWORK FOR PROJECT DEFINITION Aim Impact Stage 3:Impact Objectives Effects /IntermediateResults Stage 2: Effects Project Definition Framework Output Stage 1: Processes Immediate Results Activities

  40. Philosophy: Prevention is Better than the Cure!

  41. Stage - III Project Appraisal & Approval

  42. Approving bodies

  43. Technical • Financial • Economic • Organizational • Environmental • Social & Political • Others

  44. Techniques • Non-Discounting Techniques • Breakeven Analysis • Detailed Profit and Loss Statement Analysis • Payback Period • Unit Cost Analysis • Simple BCR • Bruno Ratio (undiscounted): Cost of resources/forex saved

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