Government of pakistan planning commission

REVISED 2005

1. 
   Name of the Project:
   

2. 
   Location of the Project:
   

• 
  Provide name of districts and province:
  

The PIU will be established at Provincial Headquarter Peshawar for smooth operation of the project throughout the province. The map showing the Districts of proposed activity in the Province, is shown on Page-3 above.

3. 
   Authorities responsible for:
   

• 
  Indicate name of the agency responsible for sponsoring, execution, operation and maintenance:
  

1. 
   Sponsoring
   

2. 
   Execution
   

1. 
   Director General (Extension), Livestock and Dairy Development Department, Khyber Pakhtunkhwa.
   
2. 
   Government of Khyber Pakhtunkhwa, Communication & Works Department, Peshawar.
   
3. 
   Project Director, Establishment and Rehabilitation of Veterinary Institutions in Khyber Pakhtunkhwa, Peshawar.
   

3. 
   Operation and maintenance
   

1. 
   Project Director, Establishment and Rehabilitation of Veterinary Institutions in Khyber Pakhtunkhwa, Peshawar.
   
2. 
   Concerned District Directors Livestock.
   
3. 
   Concerned Executive Engineers, Communication & Works Department, Khyber Pakhtunkhwa.
   
• 
  In case of more than one agency, give their component wise responsibility. For provincial projects, name of the concerned federal ministry be provided:
  

1. 
   Director General (Extension) Livestock and Dairy Development Department Khyber Pakhtunkhwa, Peshawar will be responsible for overall supervision of the project.
   
2. 
   Project Director, Establishment & Rehabilitation of Existing Veterinary Institutions, Khyber Pakhtunkhwa and Director Animal Health & Production together with project and regular staff will be responsible to plan, execute, operate, procure inputs and monitor all the activities of the project & submit the physical & financial progress and review reports on regular basis to the quarters concerned.
   
3. 
   The C&W Department Khyber Pakhtunkhwa will be responsible to carry out the civil works (construction and development work) on the 30 identified sites throughout Khyber Pakhtunkhwa under the project as well as to monitor the implementation progress of their activities and furnish the monitoring reports on regular basis to the Project Director as well as others concerned.
   

4. 
   (a) Plan provision
   

• 
  If the project is included in the medium term/five year plan, specify actual allocation.
  

Accordingly umbrella PC-I at the total cost of Rs.350 million for reconstruction/ rehabilitation of 30 existing veterinary institutions and to establish 170 new CVDs throughout Khyber Pakhtunkhwa on need basis, was formulated and submitted to the competent forum (PDWP) for approval. The PDWP in its meeting held on December 03, 2014 under the Chairmanship of Additional Chief Secretary Khyber Pakhtunkhwa, approved the scheme with following decisions:

1. 
   The scheme was approved at a total cost of Rs.350.000 million subject to the issuance of concurrence of revenue component from Finance Department.
   
2. 
   The department will establish 100 new CVDs on need basis in the rented building in the whole province.
   
3. 
   Two staff members (One Veterinary Assistant & one Chowkidar/Behishti) shall be recruited as per project policy for each Civil Veterinary Dispensary.
   
4. 
   The DDWP will approve individual schemes with Detailed Cost Estimates & uniform design.
   

1. 
   Establishment of 100 new CVDs in the rented building throughout the province on need basis instead of 170 CVDs is proposed/incorporated in the instant rectified/corrected Umbrella PC-I.
   
2. 
   Two staff members (One Veterinary Assistant & One Chowkidar) for each Civil Veterinary Dispensary to be established in the rented building are proposed/demanded in the instant rectified/corrected Umbrella PC-I & shall be recruited as per project policy.
   
3. 
   Three sub-schemes with Detailed Cost Estimates & uniform design as per detail given below has been formulated & submitted to the Administrative Department for arranging DDWP meeting for their consideration and approval by the DDWP forum, as per decision of the PDWP.
   

In view of the explanations given above, rectified umbrella PC-I for the total approved cost of Rs.350.000 million (Rs.150.342 million as Capital + 199.658 million as Revenue Cost) is formulated & submitted for approval of the competent authority and issuance of concurrence by Government of Khyber Pakhtunkhwa, Finance Department of its revenue component, including staff, transport, machinery/equipments, etc.

• 
  If not included in the current plan, what warrants its inclusion and how is it now proposed to be accommodated.
  

• 
  If the project is proposed to be financed out of block provision, indicate:
  

Total block provision	Amount already committed	Amount proposed for this project	Balance available
Not applicable	Not applicable	Not applicable	Not applicable

2. 
   Provision in the current year PSDP/ADP
   

5. 
   Project Objectives:
   

• 
  The objectives of the sector/sub-sector as indicated in the medium term/five year plan be reproduced. Indicate objectives of the project and linkage between the proposed project and the Sectoral objective.
  

1. 
   Enhance productivity of existing livestock, dairy, poultry and fisheries resources through development of new technologies, scientific methods of farming and improved management practices. (In line with the project)
   
2. 
   Exploits export potential of livestock, dairy, poultry and fisheries and their products. (In line with the project)
   
3. 
   Promote import substitution of milk and dairy products.
   
4. 
   Ensure availability of credit for livestock farmers, especially the landless ones and to Improve livestock marketing infrastructure. (In line with the project)
   
5. 
   Strengthen institutions for livestock research and extension and improve their linkages and coordination. (In line with the project)
   

The overall objective of the project is in complete harmony with the objective of the livestock sector outlined in MTDF and thus is aiming to enhance the socio-economic status of the rural population through provision of animal health and diagnostic services throughout the Khyber Pakhtunkhwa. Activities will include animal health, poultry development and livestock extension services.

To improve the socio-economic status of the rural and urban population through provision of effective animal health and livestock extension services.

1. 
   Provision of animal health services to livestock farmers in unattended areas of Khyber Pakhtunkhwa.
   
2. 
   To provide extension services to livestock farmers for better understanding of livestock management practices.
   
3. 
   To protect livestock population from contagious diseases through better surveillance and effective vaccination
   
4. 
   To improve the management Practices of the farming communities, thereby enhancing the productivity of their livestock.
   

1. 
   Establishment & operation of one hundred Civil Veterinary Dispensaries in rented buildings from the 1^st year of implementation of the project.
   
2. 
   Reconstruct and rehabilitate the damaged and dilapidated buildings of 30 existing Veterinary Institutions in Khyber Pakhtunkhwa
   
3. 
   Provision of necessary animal health, artificial insemination equipments/ instruments, furniture/fixture and other stock/store items.
   
4. 
   Provision of other miscellaneous consumable & un-consumable stock/ store items e.g. Medicines, Vaccines, Chemicals, Glassware’s, etc. etc.
   
5. 
   Capacity building of farmers in improved animal husbandry techniques and management practices.
   

• 
  The Chief Minister Khyber Pakhtunkhwa policy decisions/directives for livestock sector development will properly be implemented.
  
• 
  The income of the poor rural land-less and small farm livestock holders will increase substantively by reducing the mortality and morbidity of their livestock.
  
• 
  Management Practices of farmers improved and increased in livestock production.
  
• 
  Capacity building of the employees of the department as well as farmers for increased milk and meat production.
  

• 
  In case of revised project, indicate objective of the project if different from original PC-I.
  

6. 
   Description, justification and technical parameters
   

• 
  Describe the project and indicate existing facilities in the area and justify the establishment of the project.
  

Livestock plays an important role in the economy of the country in general and of Khyber Pakhtunkhwa province in particular. It contributes over 11.9 % to the national GDP which is more than the aggregated contribution of entire crop sector (54% of Agriculture Sector) of the country. It contributes 13% to the overall export earnings of the country. Livestock sector provides employment opportunities to majority of the rural people. Livestock sector is considered to be a net source of invariable income for rural and middle grade agri-business holders. Moreover it can play a major role in poverty alleviation in rural areas of Pakistan. Livestock sector contributed about 55.4 percent in year 2012-13 in the agriculture sector as compared to the 55.3 percent in year 2011-12. There is no considerable improvement in livestock sector in year 2012-13. It is an integral part of socio-economic activities of rural areas and plays a very supportive role and mitigating the effects of poverty by providing essential items of daily use. In addition, Livestock provides milk and meat for daily consumption to the over increasing human population, draught power for cropping and rural transport, field yard manure for soil fertilization, raw material for industrial products; hides, skins and wool for earning of foreign exchange. It is also responsible for supplying 16% of the total household energy requirements in the form of dung. (Economic Survey of Pakistan & Livestock Sector, Jun 12, 2013)

According to Livestock Census 2006, the provincial livestock herd of Khyber Pakhtunkhwa comprises of 5.95 million cattle, 1.93 million buffaloes, 3.36 million sheep and 9.10 million goats 0.064 million camels, 0.076 million horses, 0.0666 million mules and 0.539 million asses and with a well supportive backyard poultry of 27.69 million. The Provincial livestock sector accounts for around 17% of the provincial GDP. Over 80% of the population is dependent on livestock and agriculture as their main source of livelihood. Majority of the families combine smallholder crop production with livestock rearing.

To protect and improve animal health and exploit optimum production potentials of animal resources, the provincial department of livestock and Dairy Development has established a network of about 900 Veterinary hospitals/ dispensaries/ centers in the entire province manned with 291 qualified veterinary graduates and 1200 Para-vets, providing curative and prophylactic health coverage, artificial insemination services and capacity building and extension services to the livestock farmers. These veterinary institutions are providing the veterinary health care, livestock production & extension services to about 30 to 35% livestock population of the province.

Therefore, to overcome the problems and to facilitate the livestock farmers for providing efficient animal health and protecting livestock population from contagious diseases, the Honorable Chief Minister Khyber Pakhtunkhwa was pleased to issue directives for the Establishment & Rehabilitation of Veterinary Institutions in the Province. These Veterinary Institutions will be funded out of “Block Provision” under the

PROJECT DESCRIPTION AND JUSTIFICATION:

The livestock is an integral part of the farming system of the Province and plays an important role in livelihood of rural population. The stagnation in agriculture production, has assigned the livestock sector a high profile and after the implementation of WTO and other international agreements, livestock will be the major source of foreign exchange earning sector in Pakistan.

At present per unit livestock production is very low because of poor genetic makeup, poor nutrition and high incidence of diseases. Economic survey of animal’s losses shows that each year more than Rs.5 billion losses are occurring in the country due to only three contagious diseases of livestock, i.e. Hemorrhagic Septicemia, Foot & Mouth and Enterotoxaemia. Above all, non-contagious diseases are also common and affecting the animal productivity, consequently the gap between supply and demand is increasing. Therefore, to improve the livestock production and to provide animal health services to the livestock farmers the following activities will be carried out in the instant project.

1. 
   Animal Health.
   

2. 
   Farmers’ Awareness.
   

3. 
   Livestock extension services:
   

Internationally one veterinary hospital caters for the about 8000 livestock heads, while one veterinary facility in Khyber Pakhtunkhwa is catering for more than three times that figure. Some areas are thickly livestock populated and the livelihood of the people depends on livestock rearing. Keeping in view the demand of public, the Government of Khyber Pakhtunkhwa has been pleased to facilitate the poor livestock farmers of uncovered areas, through allocating funds in the Annual Development Program under a scheme titled “Establishment & Rehabilitation of Veterinary Institutions in Khyber Pakhtunkhwa”.

For this purpose the Provincial Government of Khyber Pakhtunkhwa allocated a sum of Rs.350 million in the Provincial ADP 2014-15 for the phased period of 36 months under the instant project with the objective to maintain the health of the existing livestock and to improve its productivity. The Financial and Economic analysis of the project has been calculated and is shown in Table-D at Page-49. The results indicate that Financial Internal Rate of Return (FIRR) is 88.27% hence the project is viable.

Moreover, to restrict the financial implications of the project cost, at minimum level staff is demanded under the project for its smooth operation, monitoring and achievements of the Project objectives/goals.

The posts of Project Director, B-19 & Office Assistant, B-16 will be filled-in through deputation by transfer of experienced Officer/Official from the department as per policy. Except these, all the other staff including Assistant Engineer/Monitoring Officer, B-17 will be recruited on fixed pay as per Government Lump Sum Pay Package issued by Government of Khyber Pakhtunkhwa, Establishment & Administrative Department.

The new Veterinary Institutions will be opened/established under the following Government approved Planning/Technical Criteria framed by the Department of Livestock & Dairy Development: -

Distance from the Existing Veterinary Institution = 06 KM (Radius)

OR

It is worth to mention here that each Civil Veterinary Dispensary to be established in the rented building will be provided the following livestock services to the livestock farmers of the area.

Sr.#	Activity	Numbers
1.	Vaccination
a.	Large animals Small animals Rural poultry	2000
b.		1000
c.		4000
2.	Treatment	2000

• 
  Provide technical parameters i.e. input and output of the project in quantitative terms. Also discuss the technology aspect of the project
  

The provision of quality services will reduce the morbidity and mortality in animals and increase productivity. The value of losses saved due to mortality and decrease in production by the diseased animals; and the resultant increase in production due to protected health and improved breed and husbandry practices amounts to millions of rupees.

Moreover, for smoothly operation of the Veterinary Institutions, essential Animal Health equipments/ instruments, Diagnostic Lab equipments/ instruments, Office equipments/instruments, Other Stock/Store equipments/ instruments, furniture/fixture and other consumable/ miscellaneous & stock/store items will be purchased and provided to these veterinary institutions under this project. The detail of Transport, Machinery & Equipments, Furniture & Fixture and Other Stock/Store Items are shown in Annexure-2 (Physical Assets) at Page-32-33 of the PC-I.

IMPLEMENTATION OF THE PROJECTS:

The existing structure of Directorate General, L&DD, KPK (Extension Wing) will execute and implement the project activities through the Project Director, Establishment & Rehabilitation of Veterinary Institutions in Khyber Pakhtunkhwa at Provincial Headquarter Peshawar and all the concerned District Directors Livestock Officers with supporting professional, technical, ministerial, skilled and unskilled staff. Moreover, monitoring of civil works to be carried out under the project will be executed by the C&W Department as well as by a committee comprising three officers of L&DD Department, KPK.

• 
  Provide detail of civil works, equipments, machinery and other physical facilities required for the project.
  

Furthermore, the concurrence of Finance Department regarding staff, transport, machinery/equipments, furniture/fixture & civil works cost estimates clearance from Infrastructure Section of P&D Department will be obtained accordingly prior to the approval of the PC-I/issuance of Administrative Approval from the competent forum/authority.

1. 
   CIVIL WORKS: (In Million Rupees)
   

Three sub-schemes with Detailed Cost Estimates & uniform design as per detail given below has been formulated & submitted to the Administrative Department for arranging approval by the DDWP forum, as per decision of the PDWP.

2. 
   PURCHASE OF DURABLE GOODS: (In Million Rupees)
   

Details as well as unit cost rate of each item to be procured under the scheme are shown in Annexaure-2 (Physical Assets) at Page-32-34 of the PC-I.

1. 
   PHYSICAL & OTHER FACILITIES:
   

• 
  Indicate governance issues of the sector relevant to the project and strategy to resolve them.
  

• 
  In addition to above, the following sector specific information be provided.
  

1. 
   For fisheries projects: Give area for fishing and the legal rights to that area, the availability of trawlers, amount and type of fish likely to be available.
   

2. 
   For forestry projects: Indicate nature and state of existing forests their growth rate and any problems connected there with. Give details of Species, rotation and anticipated rotation and volume yields. Indicate availability of complementary services, e.g. access roads, saw mills etc.
   

3. 
   For livestock projects: Give the livestock situation of the country and mention any problems connected therewith. Present and future Herd size, their species age characteristics and production capacity.
   

4. 
   For Agriculture production projects: Give future crop yields, cropping intensity, land use pattern and the basis for calculation of the future output. Justify the use of various inputs (water seed pesticides fertilizers extension credit) to indicate that the most economical use inputs is being planned.
   

5. 
   For all agriculture production sector projects, provide (i) transport, equipments and field machinery available with the department (ii) effect on farm income and basis for pricing of outputs (iii) farm gate and international prices.
   

7. 
   Capital Cost Estimates:
   

• 
  Indicate date of estimation of project cost estimates.
  

• 
  Basis of determining the capital cost be provided. It includes market survey, schedule rates, estimation on the basis of previous work done etc.
  

• 
  Provide year wise estimation of physical activities as per following.
  

• 
  Financial Phasing of capital cost be worked out on the basis of each item of work as stated above and provide as per following:
  

• 
  Summary of the project capital cost estimates.
  

• 
  In case of revised projects, provide:
  

• 
  Project approved history along-with PSDP allocations, releases and expenditure.
  

• 
  Item-wise, year-wise actual expenditure and physical progress.
  

• 
  Justification for revision of PC-I and variation in scope of project if applicable.
  
• 
  Item-wise comparison of revised cost with the approved cost and give reasons for variation.
  

• 
  Exchange rate used to work out FEC in the original and revised PC-I’s.
  

8. 
   ANNUAL OPERATING COST AFTER COMPLETION OF PROJECT:
   

• 
  Item-wise annual operating cost based on proposed capacity utilization for five (05) years:
  

9. 
   Demand and Supply Analysis (For Industrial and Agriculture Production Projects):
   

• 
  Description of Product/Services.
  

• 
  Demand/Supply for last five (05) years.
  

• 
  Imports/Exports for the last five (05) years along-with unit price (if applicable).
  

• 
  Projected Demand/Supply for ten (10) years.
  

• 
  Proposed year-wise Production and unit price of the Product.
  

• 
  Existing and proposed arrangements for marketing.
  

10. 
    FINANCIAL PLAN:
    

• 
  Source of Financing:
  

1. 
   Equity:
   

2. 
   Debt:
   

Not Applicable.

3. 
   Grants along-with source:
   

4. 
   Weighted cost of capital:
   

11. 
    BENEFITS OF THE PROJECT AND ANALYSIS:
    

• 
  Financial:
  

• 
  Economic:
  

• 
  Social:
  

• 
  Environmental:
  

• 
  Quantifiable output of the project
  

• 
  Profit and loss account and cash flow statement
  

• 
  Net Present Value (NPV) and Benefit Cost Ratio (BCR)
  

• 
  Internal Financial Rate of Return (IFRR)
  

• 
  Unit Cost Analysis
  

• 
  Break Even Point (BEP)
  

• 
  Return on Equity (ROE)
  

• 
  Provide taxes and duties separately in the capital and operating cost
  

• 
  Net Present Value (NPV) and Benefit Cost Ratio (BCR)
  

• 
  Internal Economic Rate of Return (IERR)
  

• 
  Foreign exchange rate of the project (Bruno’s Ratio) for import substitute and export oriented projects
  

• 
  Employment generation (direct and indirect)
  

• 
  Impact of delays on project cost and viability.
  

As for as the events, which may delay the project are as under:

• 
  Approval of the project by the competent forum must be made as early as possible.
  
• 
  Issuance of Administrative Approval/Technical Sanction in due course of time.
  
• 
  Tenders floating of construction works and award of contract with the contractor might be taken place with in a week period after issuance of Administrative Approval.
  
• 
  Funds for the construction purpose must be released at the end of 2^nd quarter.
  
• 
  Completion of construction work during the planned period i.e. 12 to 18 months.
  
• 
  Delay in launching of the project will increase its implementation cost because of yearly inflation rate and increased cost of various items to be used to complete the project activities.
  
• 
  Delay in initiation/execution of the project is likely to increase project cost by 30 to 40 percent during the three years duration of the project.
  
• 
  Delay in recruitment of manpower and purchase of durable goods i.e. instruments/equipments, furniture/fixture etc. etc. will adversely affect the schedule of implementation of the project.
  
• 
  Delay and insufficient release of funds and in delivery/provision of machinery, equipments, etc. etc will slow down the process of implementation of the project.
  
• 
  Delay in execution at district/field level will slow down the progress of the project.
  

12. 
    (a) Implementation Schedule:
    

• 
  Indicate starting and completion date of the project.
  

• 
  Item-wise/year-wise implementation schedule in line chart co-related with the phasing of physical activities.
  

Result Based Monitoring (RBM) framework indicators in quantifiable terms is given in the table below.

All the financial and physical activities which are to be carried out under the instant project and are shown in Table-A & Table-B will be properly monitored by a monitoring committee comprising of three officers of the department. The committee will be responsible to strictly monitor the specific physical & service delivery targets as mentioned above are properly in accordance to the approved project implementation schedule. In case of any deficiency or hurdle/ issue occurred in carrying out the project activities, the committee will be responsible to urgently report to the competent authority for resolving the issue etc. The monitoring indicators of the activities are also shown under item #12 (a) Implementation Schedule and (b) of the project at Page-24 & Page-25 of the PC-I.

13. 
    Management structure and manpower requirements:
    

• 
  Administrative arrangements for implementation of project.
  

The project activities will be implemented and executed under the existing structure of the Department of L&DD, Khyber Pakhtunkhwa, which is headed by Director General (Extension) in collaboration with the Project Director, Establishment & Rehabilitation of Veterinary Institutions in Khyber Pakhtunkhwa at Peshawar, Project Staff as well as regular staff of the Livestock & Dairy Development Department (Extension wing), Khyber Pakhtunkhwa, Peshawar.

• 
  The manpower requirements by skills/profession during execution and operation of the project.
  

14. 
    Additional projects/decisions required:
    

• 
  Indicate additional projects/decisions required to optimize the investment being undertaken on the project.
  

15. 
    CERTIFICATE: CERTIFIED that the project proposal has been prepared on the basis of instructions provided by the Planning Commission for the preparation of PC-I for the production sector projects.
    

PREPARED BY:

SUPERINTENDENT (PLANNING & DEV) DIRECTORATE GENERAL (EXTENSION)

L&DD, KHYBER PAKHTUNKHWA, PESHAWAR

(Dr. MALIK AYAZ KHAN WAZIR)

DIRECTOR ANIMAL HEALTH & PRODUCTION DIRECTORATE GENERAL (EXTENSION)

L&DD, KHYBER PAKHTUNKHWA, PESHAWAR
CHECKED BY:
(Dr. SHER MUHAMMAD KHAN)

DIRECTOR GENERAL (EXTENSION)

LIVESTOCK & DAIRY DEVELOPMENT DEPARTMENT, KHYBER PAKHTUNKHWA, PESHAWAR
(MUHAMMAD HAMAYUN KHAN)

SECRETARY TO GOVERNMENT OF

KHYBER PAKHTUNKHWA

AGRICULTURE, LIVESTOC COOPERATIVE