jfpr-pak microfinance for the poorest finalproject number: 40145 january 2007 proposed grant...

Grant Assistance Report

Project Number: 40145 January 2007

Proposed Grant Assistance Islamic Republic of Pakistan: Microfinance for the Poorest (Financed by the Japan Fund for Poverty Reduction)

CURRENCY EQUIVALENTS (as of 13 December 2006)

Currency Unit – Pakistan rupee/s (PRe/PRs)

PRe1.00 = $0.01643 $1.00 = PRs60.88

ABBREVIATIONS ADB – Asian Development Bank BRAC – Bangladesh Rural Advancement Committee CSPU – country strategy and program update EA – executing agency FMFB – First Microfinance Bank IA – implementing agency IGVGD – Income Generation for Vulnerable Groups Development JFPR – Japan Fund for Poverty Reduction JICA – Japan International Cooperation Agency Kashf – Kashf Foundation MFB – microfinance bank MFI – microfinance institution MOF – Ministry of Finance MSDP – Microfinance Sector Development Program NGO – nongovernment organization PMI – participating microfinance institution PMU – project management unit RFSDP – Rural Finance Sector Development Program SBP – State Bank of Pakistan TOR – terms of reference ZTBL – Zarai Taraqiati Bank Limited

NOTES

(i) The fiscal year (FY) of the Government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2006 ends on 30 June 2006.

(ii) In this report, “$” refers to US dollars.

Vice President

L. Jin, Operations Group 1 Director General J. Miranda, Central and West Asia Department (CWRD) Director N. Siackhachanh, Governance, Finance, and Trade Division, CWRD Team leader Team member

S. Lewis, Financial Economist, CWRD M. Hashimi, Project Implementation Officer, CWRD

Tarbela Dam

Mangla Dam

Indu

s R.

Nal

R.

Dasni R.

Ravi R.

Chenab R.

Jhel

um R

.Indu

s R

.

Kabul R.

Kunar

R.

Swat

R.

Sutlej R.

A R A B I A N S E A

ISLAMABAD

Rahimyar Khan

Liaqatpur

Multan

Layyah

Bhakkar

Khanewal

Vehari

Hasilpur

BahawalpurRajanpur

Lodhran Bahawalnagar

Okara

Pakpattan

Kasur

Sahiwal

KhushabSargodha Hafizabad

Bhalwal

Mandi Bhauddin

GujranwalaSialkot

Narowal

JhelumChakwal

Gujar Khan

Mianwali

Talagang

Gujrat

Jhang Shorkot

Faisalabad

Toba Tek Singh

Sheikhupura

Kohat

Karak

Hangu

Parachinar

Bannu

Lakki

Tank

AttockHaripur

Rawalpindi

Mansehra

Batgram

Nowsehra

Dasu

Saidu Sharif

Dir

Chitral

Mastuj

Malakand

CharsaddaBatkhela

Mardan

Buner

Swabi

Peshawar

Abbottabad

Dera Ghazi Khan

Kot Addu

Muzaffargarh

Zhob

M.K. Bazar

Loralai

Sibi

Kohlu

Dera Bugti

Barkhan

Mastung

PishinChamman

Ziarat

NushkiDadhar

Jacobabad

Larkana

Kakar

Ratodero

Kharan

Kalat

Panjgur

Washuk

Pasni

Turbat

Khuzdar

Gwadar

Uthel

Awaran

Dadu

KarachiThatta

Port Qasim

Badin

Hyderabad

JamshoroMirpur Khas

Sanghar

Sukkur

Shikarpur

Nawabshah

Lahore

Quetta

Federally AdministeredTribal Areas

Dera IsmailKhan

Khairpur

Ghotki

Naushahro

Ranipur

Umarkot

Mithi

Jafarabad

Jhapat

Jhal Magsi

B A L O C H I S T A N

P U N J A B

N O R T H - W E S T F R O N T I E R

S I N D HI N D I A

I R A N

AFGHANISTAN

Project District

National Capital

Provincial Capital

City/Town

Airport

Port

National Road

Other Road

Railway

River

District Boundary

Provincial Boundary

International Boundary

Boundaries are not necessarily authoritative.

PAKISTAN

MICROFINANCE FOR THE POOREST

1000 20050

Kilometers

N

06-3599 HR

73 00'Eo

73 00'Eo

35 00'No35 00'No

26 00'No

64 00'Eo

64 00'Eo

26 00'No

JAPAN FUND FOR POVERTY REDUCTION (JFPR)

JFPR GRANT PROPOSAL

I. Basic Data Name of Proposed Activity Microfinance for the Poorest

Country Pakistan

Grant Amount Requested $2 million

Project Duration 3 years

Regional Grant Yes / √ No

Grant Type Project / √ Capacity building1 II. Grant Development Objective(s) and Expected Key Performance Indicators

Grant Development Objectives (GDO): The objective of the project is to promote the development of microfinance by expanding microfinance outreach and services to the poorest. Expected Key Performance Indicators :

1. Two savings product and at least three mobile banking pilot tests completed and evaluated.

2. One pilot scheme for deepening microfinance outreach completed and evaluated. 3. At least 15,000 clients serviced by mobile banking units and at least 2,000 clients

participated in savings pilots. 4. At least 1,000 participants trained for functional and financial literacy.

III. Grant Categories of Expenditure, Amounts, and Percentage of Expenditures

Category Amount of Grant Allocated in $

Percentage of Expenditures

1. Equipment, Materials, and Supplies $412,410 21

2. Training, Workshops, Seminars, Project Administration, and Audits

$392,400 19

3. Consulting Services $854,000 43

4. Travel $137,000 7

5. Contingencies $204,190 10

TOTAL $2,000,000 100

1 As part of capacity building efforts, pilots will be undertaken. Lessons and experiences from these pilots will

support the development of microfinance policies and programs in Pakistan. The investment items for the mobile banking pilot include vehicles and equipment necessary for bringing financial services to rural areas.

2

JAPAN FUND FOR POVERTY REDUCTION

JFPR Grant Proposal Background Information

A. Other Data Date of Submission of Application

1 November 2006

Project Officer Sukanda Lewis, Financial Economist Project Officer’s Division, E-mail, Phone

Governance, Finance, and Trade Division, Central and West Asia Department, [email protected], 632 6304

Other Staff Who Will Need Access to Edit/Review the Report

N. Siackhachanh Director, Governance, Finance, and Trade Division

Sector Finance Subsector Microfinance Themes Sustainable economic growth, capacity development Subthemes Developing rural areas, organizational development Targeting Classification Targeted intervention (income poverty) Was JFPR Seed Money used to prepare this grant proposal?

Yes [√ ] No [ ]

Have SRC comments been reflected in the proposal?

Yes [√ ] No [ ]

Name of Associated ADB Financed Operation(s)

Improving Access to Financial Services Program (Phase I)

Executing Agency Ministry of Finance (MOF) Grant Implementing Agency(ies)

Ministry of Finance Mr. Muhammad Iqbal Hussain Senior Joint Secretary (Investment) Q Block, Pakistan Secretariat Islamabad Phone + 92 51 920 1962 Fax + 92 51 921 3705 Email [email protected]

B. Details of the Proposed Grant 1. Description of the Components, Monitorable Deliverables/Outcomes, and Implementation Timetable Component A Component Name Innovative and Demand-Driven Products and Delivery

Channels for the Poorest2 Cost ($) $841,240 (excluding contingencies) Component Description Development phase: (8 months)

This component will conduct market research on the demand for savings products that microfinance institutions (MFIs) can offer to help the poor save. Based on the outcomes of market

2 In 2002, the Microcredit Summit Campaign adopted a revised definition of the poorest people. The definition of the

poorest now includes people on less than $1 per day, on a purchasing power parity basis (i.e., adjusting for differences in the cost of living in different countries), as well as people who are in the lower half of the population below the poverty line in each country.

3research, the demand will be converted into product concept and product costing. The product prototype will also be developed. For each product prototype, a protocol will be developed documenting policies, procedures, and projections for the pilot test. The outcomes of the market research will be disseminated to all microfinance banks (MFBs). First Microfinance Bank (FMFB) and Kashf Foundation (Kashf)3 are identified as potential participating microfinance institutions (PMIs). The savings product pilot of FMFB will be implemented in districts in the Northern Areas, 4 while the savings product pilot of Kashf will be implemented in Lahore. To lower transactions cost and improve the poor’s access to financial services, delivery channels such as mobile banking and mobile phone-based technology will be explored. Support will be open to all MFBs. In addition, support for investment in new equipment and infrastructure, including vehicles, necessary for the pilots of mobile banking services will be provided. Vehicles are essential to the pilots, since they will bring financial services to the poor. The project management unit (PMU) will develop the selection criteria for MFBs, draft a request for proposals from MFBs, and evaluate the proposals. The names of the selected MFBs to conduct the mobile banking pilots will be submitted to the Asian Development Bank (ADB) for approval. Pilot sites are envisioned to be in different areas. FMFB is identified as a potential PMI for mobile banking pilot. FMFB will implement the pilot in three areas: districts in North-West Frontier Province, the Northern Areas, and the Lower Sindh.5 The districts in North-West Frontier Province and the Northern Areas are in mountainous regions where poor people live. People living in the two districts of Lower Sindh are also poor, and are dependent on rain-fed agriculture. Most farmers have very small plots of land. Differences in local conditions, in particular, with respect to indigenous people, will be taken into account when designing and implementing pilots. Pilot phase: (12 months) The pilot tests will be monitored quarterly, and then evaluated financially at the end of the pilot phase by PMIs and the consultants. Criteria and a monitoring and evaluation plan to evaluate microfinance product innovations and delivery channels will be developed based on existing research,

3 Kashf is now an MFI and is in the process of applying to be a licensed MFB with SBP. It expects to be granted the

license by the end of 2007. Kashf will participate in the savings pilot when it is an MFB. 4 Districts to be covered under the savings product pilot will be Ghizer and Gilgit in the Northern Areas. 5 Districts to be covered under the mobile banking pilot will be Chitral in North-West Frontier Province, Ghizer and

Gilgit in the Northern Areas, and Badin and Thatta in the Lower Sindh. Three vehicles and associated equipment will be provided.

4

evaluation methodology including randomized control trials, and international best practices to enable effective monitoring and evaluation of the pilots and the impacts on beneficiaries. Baseline surveys and follow-up surveys will be conducted by PMIs. For savings products, key indicators include number of savers, frequency of deposits, size of savings, and use of savings: whether for consumption or income generation. For mobile banking, key indicators include numbers of savers and borrowers, size of savings and loans, frequency of clients’ access to mobile banking services, and use of mobile banking services. Replication of successful pilot products will be done first by PMIs. Seminars to disseminate results of successfully tested savings products and mobile banking services will be conducted. It is expected that demonstration effects of successful pilots will lead to promotion of products and replication of services.

Monitorable Deliverables/Outputs

A business plan for each of the pilots prepared. At least 100 staff members of PMIs trained. At least 15,000 clients serviced by mobile banking units. At least 2,000 clients participated in savings pilots. Two savings products and at least three mobile banking pilot tests completed and evaluated.

Implementation of Major Activities: Number of months for grant activities

20 months (April 2007–November 2008 for FMFB and other selected PMIs, and January 2008–August 2009 for Kashf)

Component B Component Name Deepening Microfinance Outreach Cost ($) $277,930 (excluding contingencies) Component Description The poorest have lower level of assets, less employment

opportunities, and greater vulnerability to economic shocks. They generally remain outside conventional microfinance programs. Following the methodology used in Income Generation for Vulnerable Groups Development (IGVGD) of Bangladesh Rural Advancement Committee (BRAC), this component will support the MFI to target the poorest. There are three elements in the IGVGD program: (i) safety nets provided to the poorest by an existing safety-nets program in the form of food stamps,6 (ii) skills training provided by an NGO (nongovernment organization), and (iii) access to savings and credits provided by the PMI. The PMU will develop the selection criteria for PMIs, draft a request for proposals, and evaluate the proposals. The name of the PMI to implement this component will be submitted to ADB for approval. Development phase (6 months) The staff of the PMI will be trained on the methodology of and skills needed to implement IGVGD. In addition, the staff of a

6 Chronic food security is one of the major constraints that make the poorest highly vulnerable and limits their efforts

to escape from poverty.

5local NGO will be trained on the skills training modules. The PMI will select participants in the pilot from an existing safety-nets program7 based on specific selection criteria. Pilot phase (18 months) Participants will choose training subjects provided by the NGO. Training modules will be chosen according to the needs of participants. The PMI will introduce appropriate lending and savings products after the end of the 6-month training period. After the end of the pilot phase, at least 30% of participants are expected to graduate to the normal credit program of the PMI.


A business plan for the pilot prepared. At least 40 staff members of the PMI trained in IGVGD methodology and training modules. At least 2,000 participants trained in skills development. At least 30% of participants graduated to the normal credit program of the MFI. One pilot test completed and evaluated.


24 months (July 2007–June 2009)

Component C Component Name Financial Literacy for the Poor Cost ($) $283,930 (excluding contingencies) Component Description Financial literacy aims to increase the knowledge, skills; and

attitudes necessary for the poor to manage their household finances. A local NGO will be selected by the PMU to implement this component in collaboration with PMIs for component A. The clients’ needs will be assessed. Financial literacy materials for the specific needs of participants in the pilot areas will be developed by the NGO from existing materials available locally and/or abroad and adapted to the local context in consultation with PMIs. The financial literacy materials will be translated into up to three local languages. In addition to financial literacy training, training to improve literacy is essential due to the low literacy level of the poor. Special emphasis will be on women, to enhance their ability to manage the household budget since the illiteracy rate of women is higher than that of men. The NGO will produce materials for functional literacy 8 training from existing materials available locally. These materials will be tailored to the poor’s expressed needs and functional uses. The NGO will conduct functional literacy and financial literacy training for clients, the poorest, in cooperation with PMIs in

7 The World Food Programme (WFP) agreed in principle on the cooperation it would provide for this component. A

cooperation agreement with WFP will be sought after ADB management approval. 8 Functional literacy is defined by the reading and writing a person requires and uses in everyday life.

6

the pilot areas. Based on needs assessments, the modules may include the following subjects: cash flow and household budgeting, debt management, savings management, and other subjects appropriate to the needs of the poor. Training participants will be selected jointly by the NGO and PMIs. Selection criteria will be developed by the NGO in consultation with PMIs. A workshop to disseminate (i) knowledge and lessons learned from the training, and (ii) functional and financial literacy materials for local NGOs and other stakeholders will be conducted.


Functional and financial literacy curricula and materials developed. At least 1,000 participants trained for functional and financial literacy.


29 months (April 2007–August 2009)

Component D Component Name Project Management Cost ($) $392,710 (excluding contingencies) Component Description

This component will support overall project management, coordination, and implementation of the pilots. The PMU will be headed by a project manager, appointed by the Ministry of Finance (MOF). National consultants consisting of a microfinance specialist, a procurement specialist, and a project assistant will assist the project manager in managing and coordinating activities in component A, B, and C. They will be recruited by MOF according to ADB’s Guidelines on the Use of Consultants, (April 2006, as amended from time to time), and with ADB approval. The PMU will be located within MOF. To address the microfinance needs of poor women and maximize the gender impact of the project, a national gender specialist will be recruited by the Executing Agency (EA). The gender specialist will assist the EA and PMIs in designing and implementing the gender action plan, which will address women’s participation in components A, B, and C.


Quarterly progress report Monthly financial report Gender action plan Annual project review report Annual audits of the project Annual audits of the pilots Mid-project review report Final project completion report


33 months (March 2007–November 2009)

72. Financing Plan for Proposed Grant to be Supported by JFPR Funding Source Amount ($) JFPR $2,000,000 Government $100,000 (in-kind) Other Sources (from grantees) $750,000 Total $2,850,000

3. Background The microfinance sector in Pakistan developed rapidly over the last few years. In 2001, the Government enacted the regulatory framework for microfinance institutions for sustainability and transparency of the sector. There are six licensed MFBs in 2006. In addition to MFBs, the microfinance sector in Pakistan consists of rural support programs (4), NGOs (25), and commercial financial institutions (4) with a microfinance business. At present, the outreach is estimated at 600,000 borrowers. Despite the size and diversity of the sector, the outreach in Pakistan remains low. Current outreach is estimated at 6% of the 10 million poor households that need microfinance. In addition, the microfinance sector continues to be primarily a single-product market with the majority of microfinance institutions focusing on credit delivery only. Furthermore, especially in the rural areas, distance from branches of MFBs prohibits access of the poor to financial services. Although a few players in the Pakistan microfinance sector provide voluntary savings for their clients, these services still have not reached the majority of the poorest. Yet the poor need deposit services to better manage emergencies, smooth consumption, meet expected demands for large sums of cash, and take advantage of investment opportunities. The demand for appropriately designed savings products may far outstrip the demand for loans among the poorer households. The JFPR grant funding will assist MFBs to develop demand-driven savings products targeting the poorer segment of their clients. In addition, mobile banking will bring financial services to poor, rural people who normally do not have access to these services. The poorest in Pakistan, as elsewhere, have less employment opportunities, and greater vulnerability to economic shocks. They are unlikely to participate in the conventional microfinance program since they might feel that borrowing will make them more vulnerable. They are likely to be unskilled, and have unreliable cash flows. The JFPR grant is expected to support MFIs to reach this segment of the population. Following the methodology used by BRAC in Bangladesh, the grant funding will assist a selected MFI to target rural people in Pakistan who have little income-earning opportunities, but are in an existing safety-nets program. Training in appropriate skills to improve their income-generating capacity will be conducted at the beginning of the pilot. Appropriately designed savings and lending products will be provided by the MFI after the end of the training period. 4. Innovation The project will support a number of innovations. It will fund activities related to the design, development, and piloting of innovative savings products and new delivery mechanisms, which can improve access of the poorest to financial services. A component to improve financial literacy of the poor will also be supported to complement the pilot activities. Additionally, the project will deepen microfinance outreach by supporting linkage of an MFI to participants in a safety-nets program, providing training in suitable skills, and providing appropriate savings and loan products to reduce the poor’s vulnerability and increase their economic opportunities.

8

a. New Demand-Driven Products Providing savings services for the poor will reduce their vulnerability to the risks and emergencies that they face. The poor require deposit services that allow them to save small, variable amounts frequently in order to access larger sums later. They prefer individual products to group products and they need both liquid savings to cope with emergencies, and illiquid savings to save up for large expected expenditures. Support will be given to selected MFBs to undertake pilots of savings products targeting the poorest.

b. Innovative Delivery Mechanisms New delivery mechanisms that can reduce the transaction costs for poor and vulnerable groups are needed if access to financial services is to expand significantly in the rural areas. Mobile banking is a promising innovation that can bring financial services directly to the poor where they live. Microfinance branches tend to be located in urban areas, therefore excluding the poor who live in rural, less densely populated locations. Mobile banking units that are secure and have almost all the functions of a branch office can bring banking on a regular schedule to poor people who were previously excluded due to the high costs, in both time and money, of accessing distant financial services providers, or by their unavailability. Mobile banking units will be linked to branches and headquarters through very small aperture terminal (VSAT) communication facilities.

c. Financial Literacy The poor, who mostly are illiterate, will get training for functional and financial literacy. The training will be tailored to their specific needs. Improved functional and financial literacy will increase the capability of the poor to manage their finances, and plan for future needs. The project will emphasize improving the literacy of poor, illiterate women.

d. Deepening Microfinance Outreach Because it is difficult to include the poorest in conventional microfinance operations, the project aims to use the methodology employed in the IGVGD program in BRAC, an NGO in Bangladesh, to support the extension of appropriately designed savings, credit, and skills training to the poorest in Pakistan. Targeting people who are normally excluded from regular microfinance program is an innovative aspect of this project. 5. Sustainability The project will support investment to develop skills, infrastructure, new products, and market research techniques necessary for mobilizing deposits and providing mobile banking. Products and delivery channels that are innovated and pilot tested are expected to be appropriately priced so that they do not require ongoing subsidies after the project period. Similarly, the mobile banking pilot tests will be evaluated to see whether mobile banking services can be provided by MFBs on a sustainable basis. Economy of scale and a variety of financial services to offer are key determinants of the long-term sustainability of new delivery channels after the grant activity is completed. These factors will be taken into account when the project is implemented. To deepen the outreach of microfinance, the grant will enable the PMI, following the IGVGD methodology, to target the poorest. After the end of the pilot, the PMI and the consultant will evaluate the pilot to assess whether it can be replicated in larger areas. Lessons learned from the training in financial literacy will be disseminated to local NGOs in a workshop. Financial

9literacy materials developed specifically for the illiterate poor will be distributed for the use of other NGOs and any interested parties. 6. Participatory Approach

The project was designed in close cooperation with key stakeholders including MOF, State Bank of Pakistan (SBP), MFBs, MFIs, and other stakeholders. Focus group discussions with microfinance clients were conducted to assess their demand for and interest in savings services. A participatory approach will be further ensured by involving the management of PMIs in the design and development of the pilot schemes. Their participation will be essential to the project success. Besides, the involvement of the poorest in the pilot areas will be sought in implementing every grant activity.

Primary Beneficiaries and Other Affected

Groups and Relevant Description Other Key Stakeholders and Brief

Description Primary beneficiaries include the poorest in the urban, peri-urban and rural areas, who are normally excluded from financial services. They will have improved access to financial services by having demand-driven savings products. In addition, the poor in pilot areas, namely, districts in North-West Frontier Province, the Northern Areas, the Lower Sindh, and other regions to be determined later, who otherwise will not have access to financial services due to distance from the branch of MFBs, will have access to microfinance services with the availability of mobile banking. Furthermore, the poor will benefit from improved functional and financial literacy. The poorest participating in a safety-nets program are expected to have enhanced skills and improved access to microfinance services.

Capacity of staff of PMIs will be enhanced by involving them in market research, product design, and product costing and pricing. PMIs will benefit from product development and business expansion. The project is expected to have a significant demonstration effect for other microfinance service providers in Pakistan after the results of the pilots are disseminated. The NGO that conducts skills training for clients from a safety-nets program will be able to duplicate the training for other clients. The NGO that conducts functional and financial literacy training for poor people will have enhanced training skills. Local NGOs and other parties that intend to use literacy materials developed in the project can use them for their own training of the poor.

7. Coordination Several funding agencies have been assisting the microfinance sector in Pakistan. The World Bank has supported the Pakistan Poverty Alleviation Fund to reduce the incidence of poverty by providing microcredit lending and infrastructure. The United States Agency for International Development (USAID) assists MFIs and commercial banks to design and deliver financial products customized for micro, small and medium-sized businesses. The Swiss Agency for Development and Cooperation (SDC) supports projects to enhance the capacities of microfinance actors and improve their performance. In 2006, the Department for International Development (DFID) of the United Kingdom, conducts a nationwide demand-side survey of clients’ needs; the results will be disseminated among financial institutions to allow them to tailor products and programs to meet market needs. This JFPR project will (i) enhance access of the poor to financial services, in particular, savings products; (ii) support innovative delivery channels, such as mobile banking, to bring financial services to the poor; and (iii) provide linkage between participants in a safety-nets program and a microfinance services provider. This is an area where Japanese aid agencies are not active. The Japan International Cooperation Agency (JICA) and the Japanese Embassy in Pakistan have been briefed on the concept of the JFPR grant proposal. Furthermore, significant and continuous consultation with

10

the World Bank and other funding agencies has taken place, and the activities contemplated under this grant do not duplicate assistance efforts being contemplated by other development partners. 8. Social Safeguards The microfinance programs carried out under this JFPR will not cause any land acquisition or involuntary resettlement impact, nor any negative impact to the tribal/minority groups targeted in Chitral District, North-West Frontier Province or Ghizer and Gilgit Districts in the Northern Areas. In Chitral the tribal/minority groups targeted by the Program are Kalash or Shina speakers. Those in Ghizer and Gilgit are Khowar, Balti, Burishashki and Domaakis speakers. The design of each local microfinance and mobile banking scheme is based on intensive participatory mechanisms entailing the full participation of local populations and leaders in scheme preparation and implementation and the open use of local languages. Because of these mechanisms, no significant adjustments are required to the structure of the project to fully cater to the specific conditions of local indigenous communities and to fit the requirements of the ADB’s Policy on Indigenous Peoples. This is guaranteed by the participatory planning approach developed by Aga Khan Rural Support Project (AKRSP) in 25 years of intensive development work in the northern regions of Pakistan. (FMFB was established by AKRSP in 2001.) Based on this approach the specific practices and institutions of each local group targeted by the program are automatically and fully reflected as the dominant elements of the planning and decision making process for the development of the microfinance schemes under this grant. 9. Detailed Cost Table Appendix 1 gives the detailed cost estimates, and Appendix 2 the fund flow arrangements. C. Linkage to ADB Strategy and ADB-Financed Operations 1. Linkage to ADB Strategy The National Poverty Reduction Strategy Paper 2004, has established poverty reduction as its overarching objective. Given the growing income disparity among the population, the Government recognizes the role of microfinance in reducing poverty. From Microfinance Sector in Pakistan: An Overview (2006), SBP emphasizes the need for MFIs to concentrate on pro-poor financial innovation by developing a range of products according to clients’ demand. The proposed JFPR grant clearly supports the Government’s initiatives. Furthermore, according to Country Strategy and Program Update (CSPU) 2006–2008, ADB supports (i) the expansion of the outreach of small and medium-sized enterprises and microfinance services, and (ii) strengthening institutions with private sector participation. The envisaged JFPR grant to expand the outreach of microfinance services is in accordance with CSPU.

There are two ongoing microfinance and rural finance programs in Pakistan: Microfinance Sector Development Program (MSDP) loan in the amount of $150 million approved in 2000, and Rural Financial Sector Development Program (RFSDP) loan in the amount of $225 million approved in 2002. The two are program loans, while the proposed JFPR grant is to support innovations in product development and delivery mechanisms. The MSDP focused on a single microfinance institution, Khushhali Bank (KB), and assisted the Government to develop a legal framework for MFIs. As of October 2006, KB provides no savings product. The abundance of credit line has not yet resulted in the envisioned outreach or the provision of a variety of financial services needed by the poor. The RFSDP concentrated on altering the governance and operations of Zarai Taraqiati Bank Limited (ZTBL), the key state-owned rural finance

11institution. The main focus of ZTBL is not on the poorest clients. To fill existing gaps, the JFPR project will pioneer innovations to develop savings products for the poorest, bring microfinance services to poor, rural people in remote areas through mobile banking services, and link the poorest from a safety-nets program with an MFI. The main thrust of the JFPR grant is to expand and deepen microfinance outreach through capacity development, necessary investment, and innovations. The project also encourages synergies of microfinance products and services, and literacy and skills development. Lessons learned from the pilots will contribute to the formulation of future microfinance projects and programs in Pakistan.

Document Document Number

Date of Last Discussion

Objective(s)

Country Strategy and Program Update 2006–2008

Sec. M67-05 August 2005 To support the expansion of the outreach of small and medium-sized enterprises and microfinance services, and strengthening institutions with private sector participation.

2. Linkage to Specific ADB-Financed Operation Project Name Improving Access to Financial Services Program (Phase I) Project Number 39492 Date of Board Approval 14 December 2006 Loan Amount ($ million) 320

3. Development Objective of the Associated ADB-Financed Operation The goal of the proposed program loan: Improving Access to Financial Services Program (Phase I) is to assist the Government to reduce poverty, build an inclusive financial sector, and promote sustainable economic growth. The program will contribute to this goal by achieving its objective of ensuring access to sustainable institutional financial services for the majority of poor and low-income households and their microenterprises at competitive prices. The program will assist the Government to improve performance and efficiencies of the financial sector at the lower levels, increase outreach and product and service innovation, and utilize new technologies and applications to reduce transaction costs associated with delivery of financial services. The program will undertake core reforms to increase access and enable accelerated growth and outreach in rural and remote areas. Major elements in the program loan include developing an enabling environment for product diversification and innovation through regulatory reforms and establishing a national campaign to improve awareness, literacy, and education of the poor. To complement the program loan, the JFPR grant aims to support the implementation of pilots of new savings products and mobile banking services in small pilot areas, improve functional and financial literacy of the poor who are potential clients of the MFIs, and enable the poorest in the safety-nets program to have improved access to microfinance services. 4. Main Components of the Associated ADB-Financed Operation

No. Component Name Brief Description

1. Development of Enabling Policy, Legal, and Regulatory Framework

1.1 Adopt a national strategy for an inclusive financial sector to encompass all types of financial service providers and promote private sector participation for sustainable financial services.

12

No. Component Name Brief Description

1.2 Develop an enabling legal and regulatory framework to support expanded outreach of inclusive financial services to the poor and low-income families.

2. Capacity Building and Institutional Strengthening/Restructuring

2.1 Expand Credit Information Bureau coverage to include the microfinance sector and develop a credit information bureau for all types of financial service providers. 2.2 Increase capacities and efficiencies of microfinance institutions, including applying new technology and systems for sustainable, cost-effective delivery of financial services in rural and remote areas.

3. Product Diversification and Innovation

3.1 Promote product and service innovation and development for a diverse range of financial products to meet the needs of rural households, the poor and Islamic interests. 3.2 Enable MFBs to provide remittance services for overseas Pakistani workers.

4. Financial and Basic Literacy 4.1 Establish a national awareness, literacy, and education campaign on financial services for the poor.

5. Rationale for Grant Funding versus ADB Lending Grant funding is the preferred modality for various reasons. Grant funding will support and challenge MFIs to develop innovative products and services delivery channels. The project aims to provide demonstrations through pilot tests of (i) demand-driven voluntary savings services provided to the poor on a sustainable basis; (ii) cost-effective, sustainable mobile banking services for the poor; and (iii) deepening outreach of microfinance through linkage with an existing safety-nets program. This grant will provide the initial assistance in market research and product development focusing on the needs of the poorest, the necessary infrastructure for providing mobile banking services, and appropriate skills development for clients from a safety-net program. If the pilots are successful, PMIs will replicate them in other areas. In addition, it is anticipated that successful demonstrations on a limited basis will encourage other MFIs to take up and extend these products and services on a larger scale in the period after this project. The financial literacy component, with materials and training targeting the poor, needs grant funding since without subsidies, no private institutions will take up the cost. This component contributes to enhanced financial literacy of the poor, which potentially can lead to better household financial management for mostly illiterate people. Social benefits resulting from this activity justify the grant support. D. Implementation of the Proposed Grant

1. Provide the Name of the Implementing Agency

Ministry of Finance

MOF will be the implementing agency (IA) for this project. Since MOF will be both the EA and IA, the PMU will be established in MOF and headed by a project manager to be appointed by MOF. The PMU will be responsible for day-to-day coordination and monitoring of project activities, coordinating with various PMIs, and preparing periodic progress and financial reports. National consultants will be recruited to assist the project manager. Recruitment of all consultants will be according to ADB’s Guidelines on the Use of Consultants (April 2006). In

13addition, all procurement will be carried out in accordance with ADB’s Procurement Guidelines (April 2006, as amended from time to time). Vehicles will be procured through national competitive bidding (NCB). Before the start of any procurement activity under NCB, ADB and the Government will review the Government's public procurement law to ensure consistency with ADB’s Procurement Guidelines (April 2006). Any necessary modifications or clarifications will be reflected in the procurement plan. Appendix 3 gives the detailed implementation arrangements and Appendix 4 the procurement plan. 2. Risks Affecting Grant Implementation

Type of Risk Brief Description Measure to Mitigate the Risk Governance Transparency and accountability of

PMIs in implementing the project. ADB’s close monitoring of the use of project funds, and approval of specific project activities and budget should provide adequate safeguards. Submission of audited financial reports, audited pilot reports, and progress reports will also facilitate monitoring.

Project Delays/ Non-Completion

There is a risk that the project will not be completed on schedule.

Close monitoring by the PMU through coordination with the PMIs will ensure that no slippage takes place in the schedule so that the consultants can undertake their work on time.

Product There is a risk that the savings products will not be successful.

Careful market research, demand-driven product design, and appropriate product costing and pricing will mitigate this risk.

3. Incremental ADB Costs Not applicable. 4. Monitoring and Evaluation

Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E

Output Indicators

Two savings products and at least three mobile banking pilot tests completed and evaluated

Project quarterly and annual reports Quarterly pilot reports

Reports will be prepared quarterly and annually by the PMU. Reports will be prepared quarterly by PMIs.

One pilot scheme for deepening microfinance outreach completed and evaluated


Reports will be prepared quarterly and annually by the PMU. Reports will be prepared quarterly by the PMI.

14

Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E

At least 15,000 clients serviced by mobile banking units and at least 2,000 clients participating in savings pilots


Reports will be prepared quarterly and annually by the PMU. Reports will be prepared quarterly by PMIs.

At least 1,000 participants trained for functional and financial literacy

Project quarterly and annual reports

Reports will be prepared quarterly and annually by the PMU.

5. Estimated Disbursement Schedule

Fiscal Year (FY) Amount ($) FY 1 $ 800,000 FY 2 $ 600,000 FY 3 $ 600,000 Total Disbursements $ 2,000,000

----------------------------------------------------------------------------- Appendixes

1. Detailed Cost Estimates 2. Fund Flow Arrangements 3. Implementation Arrangements 4. Procurement Plan

Appendix 1 15

DETAILED COST ESTIMATES

Table A1.1: Summary Cost Table ($)

Inputs/Expenditure Category

Component A: Innovative and Demand-Driven

Products and Delivery Channels for the

Poorest

Component B: Deepening

Microfinance Outreach

Component C: Financial

Literacy for the Poor

Component D: Project

ManagementTotal (Input) Percentage

1. International Consultants 300,000 125,000 75,000 0 500,000 252. Travel 88,000 4,000 12,000 33,000 137,000 73. Training, Workshops, and Seminars 16,500 81,000 105,000 0 202,500 104. Equipment, Materials, and Supplies 388,740 7,930 7,930 7,810 412,410 215. NGOs Conducting Training for Clients 0 60,000 60,000 0 120,000 66. National Consultants 48,000 0 24,000 282,000 354,000 187. Project Administration 0 0 0 9,900 9,900 08. Annual Audit 0 0 0 60,000 60,000 3

Contingency 102,925 29,734 30,214 41,317 204,190 10100

Subtotal JFPR Grant-Financed 944,165 307,664 314,144 434,027 2,000,000

Government Contributiona 0 0 0 100,000 100,000Grantee Contributionb 600,000 100,000 50,000 0 750,000

Total Estimated Cost 1,544,165 407,664 364,144 534,027 2,850,000a Government contribution includes in-kind support of office space for PMU, utilities, and furniture. Detailed costing will be discussed during inception mission.

trainings and workshops. Detailed contribution will be discussed during inception mission.

b Grantee contribution includes staff time, office space, field travel, meeting rooms and training facilities, as well as travel, lodging and per diem for their staff attending

Source: Asian Development Bank.

16 Appendix 1

Table A1.2: Detailed Cost Estimates ($)

Code Supplies and Services Rendered Unit Quantity Cost TotalUnits Per Unit

Amount Method of Procurement

Component A: Innovative and Demand-Driven Products and Subtotal 1,544,165 944,165 600,000Delivery Channels for the Poorest

1.1 International Consultants 300,000 300,000Savings Product Development and Marketing Research Specialist per month 5 25,000 125,000 125,000Costing, Pricing and Pilot Testing Specialist per month 3 25,000 75,000 75,000Mobile Banking Expert per month 4 25,000 100,000 100,000

1.2 Travel 88,000 88,000Savings Product Development and Marketing Research Specialist per trip 4 8,000 32,000 32,000Costing, Pricing and Pilot Testing Specialist per trip 2 8,000 16,000 16,000Mobile Banking Expert per trip 4 8,000 32,000 32,000Domestic Savings Product Development Specialist per trip 4 1,000 4,000 4,000Domestic Mobile Banking Expert per trip 4 1,000 4,000 4,000

1.3 Training, Workshops, and Seminars 116,500 16,500 100,000Savings Product Development and Marketing Research for Microfinance per training 2 1,500 3,000 3,000Pilot Testing Savings Products per training 2 1,500 3,000 3,000Costing and Pricing Microfinance Products per training 2 1,500 3,000 3,000Pilot Testing Mobile Banking per training 1 1,500 1,500 1,500Seminar on Savings Pilots: Lessons Learned per seminar 1 3,000 3,000 3,000Seminar on Mobile Banking Pilot: Lessons Learned per seminar 1 3,000 3,000 3,000

1.4 Equipment 888,740 388,740 500,000Rural Branch Equipment (5 branches)Servers 5 5,000 25,000 25,000 ShoppingComputers 5 1,100 5,500 5,500 ShoppingPrinters 5 330 1,650 1,650 ShoppingUninterrupted Power Supply 5 1,330 6,650 6,650 ShoppingMobile Banking InfrastructureCost of Vehicle (Northern Areas and Chitral and other mountain areas) 4 50,000 200,000 200,000 NCBCost of Vehicle (upper and lower Sindh and other flat areas) 5 10,800 54,000 54,000 NCBComputers 9 1,100 9,900 9,900 ShoppingPrinters 9 330 2,970 2,970 ShoppingUninterrupted Power Supply 9 1,330 11,970 11,970 ShoppingVaults 9 500 4,500 4,500 Direct PurchaseOther Equipment 9 1,000 9,000 9,000 Direct PurchaseVery Small Aperture Terminal Related Equipment and Installation Charges 9 6,400 57,600 57,600 Direct Purchase

1.5 National Consultants 48,000 48,000National Savings Product Development Specialist per month 8 3,000 24,000 24,000National Mobile Banking Expert per month 8 3,000 24,000 24,000

1.6 Contingency 102,925 102,925

Costs Contributions

GranteeGovern-ment

Other DonorsJFPR

Appendix 1 17



Component B: Deepening Microfinance Outreach Subtotal 407,664 307,664 100,0002.1 International Consultants 7 125,000 125,000

Team Leader - IGVGD Specialist per month 4 20,000 80,000 80,000Training Specialist per month 3 15,000 45,000 45,000

2.2 Travel 4 4,000 4,000Team Leader - IGVGD Specialist per trip 2 1,000 2,000 2,000Training Specialist per trip 2 1,000 2,000 2,000

2.3 Training, Workshops, and Seminars 75 131,000 81,000 50,000IGVGD Methodology for Staff per training 1 3,000 3,000 3,000Skills Training for Staff per training 1 3,000 3,000 3,000Clients' Training Sessions per training 72 1,000 72,000 72,000Pilot Evaluation Seminar per seminar 1 3,000 3,000 3,000

2.4 Equipment, Materials, and Supplies 57,930 7,930 50,000Training Tools and Audiovisual Materials 2,930 2,930 Computer unit 1 1,100 1,100 Shopping Printer unit 1 330 330 Shopping Projector unit 1 1,500 1,500 ShoppingOffice Supplies Lump sum 5,000 5,000

2.5 Nongovernment Organization Conducting Training for Clients 60,000 60,000 Management Fees 25,000 Staff Costs 15,000 Travel 5,000 Supplies 5,000 Translation 5,000 Communications 5,000

2.6 Contingency 29,734 29,734

Costs Contributions

GranteeGovern-ment

Other DonorsJFPR

18 Appendix 1



Component C: Financial Literacy for the Poor Subtotal 364,144 314,144 50,0003.1 International Consultants 75,000 75,000

Functional and Financial Literacy Expert per month 3 25,000 75,000 75,000

3.2 Travel 12,000 12,000Functional and Financial Literacy Expert per trip 1 8,000 8,000 8,000Domestic Functional and Financial Literacy Expert per trip 4 1,000 4,000 4,000

3.3 Training, Workshops, and Seminars 145,000 105,000 40,000Training of Nongovernment Organization Trainers in Functional per training 4 3,000 12,000 12,000 and Financial LiteracyClients' Training Sessions per training 90 1,000 90,000 90,000Seminar to Disseminate Lessons Learned per training 1 3,000 3,000 3,000

3.4 Equipment, Materials, and Supplies 17,930 7,930 10,000Training Tools and Audiovisual Materials 2,930 2,930 Computer unit 1 1,100 1,100 Shopping Printer unit 1 330 330 Shopping Projector unit 1 1,500 1,500 ShoppingOffice Supplies Lump sum 5,000 5,000

3.5 National Consultant 24,000 24,000Functional and Financial Literacy Expert per month 8 3,000 24,000 24,000

3.6 Nongovernment Organization Conducting Training for Clients 60,000 60,000 Management Fees 25,000 Staff Costs 15,000 Travel 5,000 Supplies 5,000 Translation 5,000 Communications 5,000

3.7 Contingency 30,214 30,214

Costs Contributions

GranteeGovern-ment

Other DonorsJFPR

Appendix 1 19



Component D: Project Management Subtotal 534,027 434,027 100,0004.1 National Consultants 282,000 282,000

Microfinance Specialist per month 33 4,000 132,000 132,000Procurement Specialist per month 33 3,000 99,000 99,000Gender Specialist per month 6 3,000 18,000 18,000Project Assistant per month 33 1,000 33,000 33,000

4.2 Project Administration 9,900 9,900Communications lump sum 33 300 9,900 9,900

4.3 Travel 33,000 33,000Staff Travel per month 33 1,000 33,000 33,000

4.4 Annual Audit 60,000 60,000Annual Project Audit (local audit firm) per audit 3 10,000 30,000 30,000Annual Pilot Audit per audit 10 3,000 30,000 30,000

4.5 Equipment and Supplies 7,810 7,810Computers unit 2 1,100 2,200 2,200 ShoppingPrinters and Fax Machines set 2 330 660 660 ShoppingOffice Supplies lump sum 33 150 4,950 4,950

4.6 Contingency 41,317 41,317

Components A to D Subtotal 2,850,000 2,000,000 100,000 750,000

Total Grant Costs 2,850,000 2,000,000 100,000 750,000

TOTAL Incremental Costs

Costs Contributions

GranteeGovern-ment

Other DonorsJFPR


20 Appendix 2

FUND FLOW ARRANGEMENTS

1. Funds will be disbursed under the terms of a contractual arrangement with a Government-approved party acceptable to the Asian Development Bank (ADB), through the project management unit (PMU), which will maintain a separate Japan Fund for Poverty Reduction (JFPR) imprest account at a bank acceptable to ADB. The PMU will channel funds to project contractors and PMIs: First Microfinance Bank (FMFB), (Kashf Foundation (Kashf), and other participating microfinance institutions (PMIs) to be determined during project implementation. The JFPR imprest account will be established, managed, replenished, and liquidated in accordance with ADB’s Loan and Disbursement Handbook, as amended from time to time, and detailed arrangements agreed on between the Government and ADB. The initial advance to the imprest account should be based on approved contracts and planned expenditures for the first 6 months of the project. However, total advances at any time should not exceed estimated expenditures for the next 6 months or 10% of the grant amount, whichever is lower. The statement of expenditures procedure will be used for reimbursing eligible expenditures and liquidating the imprest account for any individual payment transaction up to $10,000 equivalent. 2. The PMU will (i) maintain, or cause to be maintained, separate accounts for the JFPR project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied by independent auditors acceptable to ADB; (iii) as soon as available, but not later than 6 months after the end of the fiscal year, furnish ADB with certified copies of such audited accounts and financial statements and the related report of the auditors, including the auditor’s opinion on the use of the JFPR funds and the imprest account and statement of expenditures provided under the project, all in English; and (iv) furnish ADB other information concerning such accounts, financial statements, and audits upon request.

Figure A2. Fund Flow Arrangements

Asian Development Bank

Ministry of Finance (Executing Agency)

Component A: Innovative and Demand-Driven

Products and Delivery Channels for the Poorest

Component B: Deepening Microfinance

Outreach

Component C: Financial Literacy for the

Poor Contingencies

Component D: Project Management

$841,240

$277,930

$283,930

$392,710

$204,190


Appendix 3

21

IMPLEMENTATION ARRANGEMENTS A. Project Components 1. The Microfinance for the Poorest Project has four components:

(i) component A: innovative and demand-driven products and delivery channels for

the poorest, (ii) component B: deepening microfinance outreach, (iii) component C: financial literacy for the poor, and (iv) component D: project management.

B. Key Project Management Entities 2. The following entities will ensure successful implementation of the project:

(i) The Ministry of Finance (MOF) serving as the Executing Agency (EA) and the Implementing Agency (IA).

(ii) The project management unit (PMU) representing the Asian Development Bank (ADB) and the EA.

(iii) Participating microfinance institutions (PMIs): the First Microfinance Bank (FMFB), the Kashf Foundation (Kashf), and other PMIs to be determined during project implementation.

1. MOF

3. After countersigning the agreement, the EA will (i) appoint a project manager to head the PMU, and (ii) recruit four national consultants to assist in the operations of the PMU. The EA will provide in-kind support of office space for the PMU, utilities, and furniture equivalent to $100,000 over the life of the project. 2. The Project Management Unit

4. Facilitation and implementation will be managed and coordinated by the PMU headed by a project manager responsible for directly managing the project. The project manager will be assisted by a microfinance specialist, a procurement specialist, a gender specialist and a project assistant. The PMU will be housed within MOF. With ADB’s approval, the PMU will be responsible for procuring equipment. The PMU will arrange annual financial audits of the project and pilot audits, and for all reporting to ADB. All procurement will be carried out in accordance with ADB’s Procurement Guidelines (April 2006, as amended from time to time). The PMU will be responsible for coordinating all activities in components A, B, and C. 5. The PMU will enter into contractual agreements with PMIs, which will outline specific areas of cooperation under the project, provide detailed expectations of performance, and strictly define the roles and responsibilities of all parties. Baseline surveys and follow-up surveys to enable appropriate monitoring and evaluation of the pilots will be performed by PMIs. 6. The Government has agreed to recruit individual consultants to staff the PMU in accordance with ADB's procedures for recruiting individual consultants. Detailed terms of reference (TOR) to recruit and select individual international and national consultants for components A, B, and C will be developed. The consultants will be recruited by ADB according to its Guidelines on the Use of Consultants (April 2006, as amended from time to time). For

Appendix 3

22 component B, the consultants will be recruited from the Bangladesh Rural Advancement Committee (BRAC) by direct selection method since BRAC has the expertise required for implementing the component. The PMU will (i) develop the selection criteria for additional PMIs to implement the mobile banking pilots in component A, and deepening microfinance outreach pilot in component B; (ii) draft a request for proposals from MFIs; and (iii) evaluate the proposals. The name of the selected PMIs will be submitted to ADB for approval.

7. The PMU will develop detailed TORs for a nongovernment organization (NGO) to carry out skills training for participants selected from the safety-nets program (component B). The selected NGO with experience in skills training for the poor will be recruited and hired with the approval of ADB, and according to ADB’s Guidelines on the Use of Consultants. 8. The PMU will develop detailed TORs for an NGO to carry out financial literacy training (component C). The selected NGO with experience in rural nonformal education will be recruited and hired with the approval of ADB, and according to ADB’s Guidelines on the Use of Consultants. The NGO will be selected on the basis of demonstrated experience in implementing nonformal basic education programs in rural areas.

3. Participating Microfinance Institutions 9. There will be initially two PMIs for component A: FMFB and Kashf. Additional PMIs for mobile banking pilots for component A and the PMI for component B will be determined according to procedures outlined above. PMIs will implement pilots of demand-driven savings products, mobile banking, and deepening microfinance outreach. C. Consultants 10. Consultants for components A, B, and C will be recruited by ADB in accordance with its Guidelines on the Use of Consultants.

(i) Component A. ADB will engage international (14 person-months) and national

(16 person-months) consultants for component A, including (a) international savings product development and market research specialist; (b) national savings product development and market research specialist; (c) international costing, pricing, and pilot testing specialist; (d) international mobile banking expert; and (e) national mobile banking expert.

(ii) Component B. International consultants (7 person-months) will be recruited

from BRAC by the direct selection method since BRAC has the expertise required for implementing the component.

(iii) Component C. ADB will engage an international (6 person-months) and a

national (8 person-months) consultant to work with PMIs and the NGO.

Appendix 4

23

PROCUREMENT PLAN

Country Pakistan Name of Borrower not applicable Project Name Microfinance for the Poorest Loan or TA Reference JFPR Grant 40145 Date of Effectiveness n.a. Amount $ 2 million Of which Committed, $ 2 million Executing Agency Ministry of Finance Approval Date of Original Procurement Plan n.a. Approval of Most Recent Procurement Plan n.a. Publication for Local Advertisements1 n.a. Period Covered by this Plan 18 months

Procurement Thresholds, Goods and Related Services, Works and Supply and Install

Procurement Method To Be Used above (Value $)

ICB Works ICB Goods NCB Works NCB Goods 100,000 Shopping Works Shopping Goods 10,000 Exceptional Methods If limited international bidding, direct contracting, force account or community participation in procurement will be employed on the project, list them here and describe the circumstances under which they may be employed.

Procurement Thresholds, Consulting Services

Procurement Method To Be Used above (Value $)

Quality- and Cost-Based Selection (QCBS)2 Consultants Qualifications Selection (CQS)3 Least-Cost Selection (LCS)4 Alternative Methods International and national consultants will be recruited individually. Only in the case of BRAC consultants willl direct selection be used since BRAC is the only organization with relevant experience in IGVGD methodology.

1 General procurement notice, invitations to prequalify and to bid, calls for expressions of interest. 2 Default for procurement above $200,000. 3 Default for procurement below $200,000. 4 Default for procurement below $100,000.

Appendix 4

24 List of Contract Packages: Goods, Works, and Consulting Services

Ref Contract

Description Estimated

Cost Procurement

Method Expected Date

of Advertisement5

Prior Review

Y/N

Comments

Package 1 2 vehicles at $50,000 and 1 vehicle at

$10,800

$110,800 NCB Y

Package 2 2 vehicles at $50,000 and 4 vehicles at

$10,800

$143,200 NCB Y

Package 3 3 servers, 6 computers,

6 printers, 6 UPS

$31,560 Shopping Y

Package 4 2 servers, 8 computers,

8 printers, 8 UPS

$32,080 Shopping Y Packages 4–7 will be inone bidding document.

Package 5 1 computer, 1 printer,

1 projector

$2,930 Shopping Y

Package 6 1 computer, 1 printer,

1 projector

$2,930 Shopping Y

Package 7 1 computer, 1 printer

$1,430 Shopping Y

5 The invitation for bids, request for expressions of interest, or invitation to prequalify as the case may be.

jfpr-pak microfinance for the poorest finalproject number: 40145 january 2007 proposed grant...

Documents