'----..,-.--.....-, •• -."...,--.--•.-._-_., '•• -. • 'f' ----... -........,,--.--'- ..--...- ...... - ..,,- '------·--r...·.. ~·· ...···...-,...,·~ ...·,·

)

11.. SP~::x'NCERN!S CODRi~Gaxunum LJ:i~({4 po~tlOl Pl.S el1ch)

B.Amount 44,509 0,088 =========b='--------+-----+-----IS. PROJECT PURPOSE (mf.l,ximum 480 chttracters) ,

Aal.NCY P'OR IN'rlEFlNATIONAL DK" II LOPMIlH'r 1. 1kAJ\I::iAI..TJON WUI' EO'"~ A-Add Amendment NumberPROJECf DATA SHEET C c- Olanlle 4

D· Delete3

P'-- ----_..._-2. COUNTRY/ENTITY Pakistan 1I. PROJECT NUMBER

f-_C391-0296 .::L--';.: BUREAU/OFFICE 5. PROJECT TITLE (mlJJf.itrw"'t,40 chllTtJCt.s)

Asia I CoO C Agricultural Research :=J6. PROJECT ASSISTANCE COMPLETION DATE (PACD) 7. ESTIMATED DATE OF OBLIGATION

(Und". 'B:' below, mt".l. 2, 3. or 4)

. MMDD YY

~8151 A. initial FY~I

C. Final FY UUf.JB. OuartcrJ!J8. COSTS ( $000 OR EQUlVALENT $1 • Ranoe from Rs 4.76 to Rs 10.43

A. FUNDING SOURCEFIRST FY 69 'LIFE OF PROJECf

B.FX c. L/C D. Total It FX ,r. LiC G. Total

AID Appropriated Total 55 - 55 10.992 - 10.992(Grant) ( 55 ) ( - ) ( 55 ) ( 4.792 ) ( - ) ( 4,792 )(Loan) ( - ) ( - ) ( - ) ( 0:200 ) ( - ) ( b ,iWU )

Other 11. Mondale Ruoees - - - - :;10.314 20.314u.s. 12. FAA Sec 204 RUDees 606 606

Host Country - - - - 15.685 15.685Other Donor(l)

TOTAL S~ 55 - 55 10.992 36,605 47.5979. SCHEDULE OF AID FUNDING (lOOm

-B. C. PRIMARYA. APPR(),. PRIMARY D. OBUGATIONS to DATE E. AMOUNT APPROVED' F. LIFE OF PROJECT

PRIATION I.I'URPOSETECH. CODE nnSACTlON

CODE l.Grant 2. Loan 1. Grant 2. Loan 1. Grant 2. Loan 1. Grant 2. Loan

(II DA 181 080 080 1.592 6.200 - - 1.592 6.200(2) ESF 181 080 - - - 3,,':00 - 3.200 -(S)

ill---TOTALS Alb- 1.592 6~200 3,200 - 4.792 6 .200

10. SECONDARY TECHNICAL CODES (_ximum 6 codes 013 positions ~ac") 11. SECONDARY PURPOSE CODE

L I I I I 141 -..

To establish a functioning centrally coordinated program of agriculturalresearch for majer agricultural co~modities which effectively translatespolicy guidelines into specific research projects with achievable results .

•

._~~. SOURC"E/OItIGIN OF GOODS AND SERVICESMM YY

Interim Iolna1-.J~5 PO,. oco 0 94.100 Local 0 OlJl.er(Spuify) ,

16. AMENDMENTS/NATURE OF CHANGE PROPOSF..o (Thu u fXIIe 2of a-ia- page PP Amtftdm.".' plus Annexes.A.I.D. plans to add $3.2 million in [SF grant funds and Rs 29.7 million (or the eqUivalentof approximately $2.85 million) in ~iondale rupees to the existing project to comp~e~e theconstruction of the Pakistan National Agricultural Research Center, equip the faclllty,and further strengthen, through technical assistance and training, the managerial andresearch capabilities of the staff at The Center.

AID U~().4 (8-79)

Signature

Director, USAID/Pakistan

14 c:t:(,~ U.Di\TEDOCUMENT RECEIVED

•

- iii -

PROJECT AUTHORIZATION AMENDMENT

Name of Project: Agricultural ResearchNumber of Project: 391-0296Number of Project Amendment: 391-0296-8201

Pakistan

1. Pursuant to Part 1, Chapter 1, Section 103 of theForeign Assistance Act of 1961. as amended, grants for theAgricultural Research Project (391-0296) for the IslamicRepublic of Pakistan were authorized. pursuant to whichProject Agreements were entered into in FY 1969. FY 1970.FY 1971, FY 1972, FY 1973, FY 1974, FY 1975, and FY 1976,were amended from time to time, and are further amendedas herein set forth.

2. (a) Pursuant to Section 531 of the Foreign AssistanceAct of 1961, as amended, I hereby authorize this Amendmentto the Agricultural Research Project Grant Numbers 69-35,70-10, 71-14, 72-1, 73-12, 74-4. 75-1, and 76-3 underProject/Activity No. 391-17-110-296 to provide for theIslamic Republic of Pakistan an additional obligation ofnot to exceed United States Dollars Three Million TwoHundred Thousand ($3,200,000) and Twenty-Nine Million,Seven Hundred Thousand United States-Owned PakistaniRupees (Rs 29,700,000) in grant funds over a one (1) yearperiod from the date of this authorization, subject tothe availability of funds in accordance with the A.I.D.OYB/allotment process, to help in financing foreignexchange and local currency costs for the project.

(b) The Project, as herein amended, is designed toprovide technical assistance, commodities, and participanttraining to upgrade Pakistanis Agricultural ResearchCouncil and construct and equip the National AgriculturalResearch Center to coordinate and carry out priorityresearch •

(c) Goods and services financed by A.I.D. under thisProject Amendment shall have their source and origin inthe Cooperating Country or in the United States, exceptas A.I.D. may otherwise agree in writing. Ocean shipping

•

:fJ

1:f:

- iv -

financed by A.I.D. under this Project Amendment shall,except as A.I.D. may otherwise agree in writing, befinanced only on flag vessels of the United States andthe Cooperating Country.

Signature--=D:-o-n-o-r--:M-::-.~Lll'""T"i-on---

DirectorUSAID/Pakistan

Date__.l-.. _

•

- v -

AGRICULTURAL RESEARCH AMENDMENTTABLE OF CONTENTS

Title PageProject Data SheetProject Authorization AmendmentTable of ContentsList of Tables

I. SUMMARY AND RECOMMENDATIONS

iii

iiiv

viii

A. Recommendations 1

B. Summary Project Amendment Description 1C. Summary Findings· 3

D. Project Amendment Checklists and MissionDirector's Certification 3

E. Project Amendment Issues 3

F. Contributors to the Project Paper Amendment 3

II. BACKGROUND

..

A. USG-GOP NegotiationsB. History of the Existing ProjectC. Project Progress to Date

1. Institutional Developmenta. The Councilb. The Research Center

i. Constructionii. Management

iii. Research2. Training3. Equipment/Supplies for the Research Center

D. Other Donor Assistance

E. Relationship to A.I.D. Strategy and OtherA.J.D. Projects

F. Project Amendment Rationale

III. PROJECT AMENDMENT DESCRIPTION

A. Project Amendment Goal and PurposeB. Project Amendment Outputs

5

6

8

88

11111113

14

14

16

17

18

20

20

- vi -

C. Project Amendment Activities

1. Management 21a. Advisor to the Director-General 21b. Station Development and Operations

(SD/O) Engineer 222. Construction 23

3. Research 25a. International Rice Research Institute

(IRRI) 25b. International Maize and Wheat Improvement

Center (CIMMYT) 25i. CIMMYT Wheat Program 25

ii. CIMMYT Maize Program 26

4. Equipment/Suppli.es 27

IV. IMPLEMENTATION PLAN

A. Implementation Schedule 28B. Administrative and Monitoring Arrangements

1. A.I.D. Responsibilities 282. GOP Responsibilities 30

C. Procurement Plan

1. Technical Services 302. Commodities 32

D. Training Plan 33E. Evaluation Plan 33

F. Financial .Plan 35

G. Narcotics Impact Statement 37

V. CONDITIONS, COVENANTS,AND NEGOTIATING STATUS

VI. ANNEXES

A. Relevant Cables and Authorizations

1. APAC Approval Cable2. Redelegation of Authority to USAID/Pakistan

Mission Director to Approve and Authorizethe Amendment

3. Approval of PACD Extension by Administrator4. Mondale Rupee Request5. Preliminary Approval of MondaIe Rupee Request

B. Project Amendment ChecklistsC. FAA Section 611 (e) Certification

40

•

- vii -

D. Government Request for Dollar and Mondale RupeeAssistance

E. Revised Logical Framework Matrix

F. Waiver Request for Vehicle Procurement

G. Draft Project Description for Inclusion inProject Agreement Amendment

H. Draft Congressional Notification

I. Participant Training Travel Waiver

Table No.

1

2

3

4

5

6

7

8

9

10

- viii -

LIST OF TABLES

Title

Agricultural Research ProjectFinancial History - Obligationsand Deobligations

Stage of Development of FederallyCoordinated Agricultural ResearchPrograms in Pakistan as of April 1982

Construction Progress at The ResearchCenter as of April 1982

Agricultural Research Project - Statusof Project-Financed Training as ofApril 1982

Proposed Implementation Schedule

Proposed Technical Assistance Plan

Proposed Participant Training Plan

Summary of Project Amendment Costs byFiscal Year and Source of Funding

Summary of Project Amendment Costs byExpense Category and Source of Funding

Financial Summary of the AgriculturalResearch Project, 1969 - 1985

9

10

12

15

29

31

34

36

38

39

..

I. SUMMARY AND RECOMMENDATIONS

A. Recommendations

1. Funding

It is recommended that an ESF grant of $3.2 millionand Rs 29.7 million (or the equivalent of approximately$2.85 million l/)in Mondale rupees be authorized forobligation in ~Y 1982 for the Agricultural Research Project.This action will increase the total A.I.D. life of projectfunding to approximately $11. 0 million and Rs 156.2 millionin FAA Section 204 and Mondale rupees.

2. Geographic Code

The Project authorization amendment should specifythat except as A.I.D. may otherwise agree in writing:

a. Goods and services financed by A.I.D. underthis project amendment shall have their source and originin countries included in A.I.D. Geographic Code 000 orPakistan.

b. Ocean shipping financed by A.I.D. under thisproject amendment shall be only on flag vessels of theUnited States or Pakistan.

3. Waiver

It is recommended that a source/origin waiver fromA.I.D. Geographic Code 000 to Code 935 and a waiver toallow non-competitive, negotiated procurement be approvedto permit the purchase of six (6) Datsun right-hand drivepick-up trucks, two (2) Toyota Land Cruiser right-handdrive heavy duty utility vehicles, four (4) Toyota right­hand drive station wagons, and spare parts for all thesevehicles. A source/origin waiver request is included inAnnex F.

B. Summary Project Amendment Description

The Agricultural Research Project, which began in1969, was designed to·provide technical assistance,Commoqities. and training to upgrade the capability ofthe Pakistan Agricultural Research Council, hereinafterreferred to as "The Council", to coordinate and conductagricultural research. The project also provided funds

1./ At the exchange rate of $1.00 == Rs 10.43 as ofJanuary 26, 1982.

-2 -

to establish and equip a National A~ricultural ResearchCenter, hereinafter referred to as 'The Research Center".];..!

The project was initiated before adequate staffing andinternal management capability within The Council couldbe established. Consequently, the project fell behindschedule and was redesigned in 1977. This redesignedproject was approved in May 1978. As a result of theimposition of Section 669 of the Foreign Assistance Actin 1979, $737,950 of grant funds originally authorized for theproject were never obligated. Later in 1979, many residenttechnical advisors were sent home because of the eventsassociated with the incident at the American Embassy, andsome of these advisors were unable to return.

Despite initial project implementation problems and theinterruption of technical assistance in 1979, The Councilhas been able to establish a relatively strong institutionalbase. However, the construction of The Research Center hasnot yet been completed, and management of the facility isweak. In addition, there were insufficient funds in theoriginal project to establish a strong research capabilityat and adequately equip and furnish The Research Center.

Under the three-year project amendment, funds will beprovided for:

1. Two long-term resident consultants: an Advisorto the Director-General of The Research Center; and,a Station Development and Operations Engineer, to facilitatethe development of a strong management capability at TheResearch Center;

2. Short-term technical assistance from an architec­tural and engineering (A&E) constructi.on managementconsultant and related A&E consul tants, a.nd local construction

1:./ The Pakistan Agricultural Research Council is a semi­autonomous organization within the Ministry of Food,Agriculture, and Cooperatives. It is responsible forformulating, coordinating, and evaluating nationalagricultural research programs. The National Agri­cultural Research Center is the central researchinstitution of the Council. It is being developed toprovide scientific support for the applied and adaptiveresearch programs being carried out at other institutionsin Pakistan and to conduct research that is not beingundertaken in the provincial research programs.

- J -

materials and local A&E construction superv1s10n andconstruction services to complete the construction ofThe Research Center;

3. Short-term and long-term technical assistancefrom the International Rice Research Institute (IRRI) , theInternational Maize and Wheat Improvement Center (CIMMYT),and the United States Department of Agriculture (USDA) tostrengthen the research capabil~ty at The Research Cente~.

Funds will also be provided for short-term training atCIMMYT and for in-country seminars; and,

4. Research and office equipment and supplies toequip and furnish The Research Center.

C. Summary Findings

This project amendment is ready for i~plementation

and is deemed technically, fina.ncially, socially, andadministratively sound.

D. Project Amendment Checklists and Mission Director'sCertification

1. The project amendment meets all applicablestatutory criteria. Appropriate checklists are includedin Annex B.

2. The USAID/Pakistan Mission Director has certifiedthat the GOP has the capability to implement and maintainthe project, as amended. A copy of the Mission Director'sFAA 611 (e) Certification is included in Annex C.

E. Proj ect Amendment Is.~~es

There are no issuc:'s for this project amendment.

F. Contributors to the Pr~ec~ Paper Amendmen~

The followi.ng indi.viduals contributed to the develop­ment of this project paper amendment:

A. I. D.

Mr. M. Hafiz Ahmad

Dr. J. Raymond Carpenter

- Chief Accountant, Office ofFinancial Management,USAID/Pakistan

- Agricultural Economist,Office of Agriculture andRural Development,USAID/Pakistan

- 4

Dr. Ronald Curtis - Chief, Office of Agricultureand Rural Development,USAID/Pakistan

Mr. Leslie Dean - Chief, Office of Program,USAID/Pakistan

Ms. Julie DefIer - Project Development Officer,Office of Project Developmentand Monitoring, USAID/Pakistan

Dr. Donor Lion - Mission Director,USAID/Pakistan

Dr. Linda Lion - Chief, Office of ProjectDevelopment and Monitoring,USAID/Pakistan

Mr. S. Asif Mahmud - Engineer, Office of Energyand Engineering, USAID/Pakistan

Mr. M. Charles Moseley - Chief, Office of Energy andEngineering, USAID/Pakistan

Mr. S. Zahid Noor - Engineer, Office of Energy andEngineering, USAID/Pakistan

Dr. Edward Rice - Agriculture Development Officer,Office of Agriculture andRural Development, USAID/Manila

Mr. Stephen Spielman - Legal Advisor, Office of theRegional Legal Advisor,USAID/Pakistan

Ms. Diana Swain - Project Development 'Officer,ASIA/PD, AID/Washington

Mr. Abdul Wahid - Program Analyst, Office ofAgriculture and Rural Develop­ment, USAID/Pakistan

GOP

Dr. Amir Mohammad - Chairman, Pakistan AgriculturalResearch Council, and Secretaryto Government, AgriculturalResearch Division, Ministryof Food, Agriculture, andCooperatives

- [) -

II. BACKGROUND

A. USG-GOP Negotiations

1. Overview

The United States and the Government of Pakistanare embarked ona renewed and strengthened effort toincrease their economic and development cooperation. Thiseffort was marked by high level USG-GOP consultations in1981 which culminated in the negotiation of a $3.2 billionpackage of military and economic assistance which the U.S.will seek to provide to Pakistan between FY 1982 andFY 1987.

The economic assistance component was designed not onlyto maximize its development impact but also to produce asfavorable balance of payments effects as possible. Thebalance of payments objective reflects two criticalpurposes of the agreed upon economic assistance: (a) toameliorate the burden created by Pakistan's increaseddefense expenditures; and, (b) to reduce the constraintson development wh'ich balance of payments strains generate.In this manner, the economic, development, and securityinterests of both nations are interrelated and supported.

The U.S. Economic Assistance Negotiating Team, headed bythe A.I.D. Administrator, visited Pakistan in August 1981to discuss the details of the economic portion of themilitary/economic assistance package with the Governmentof Pakistan. These negotiations were successfullycompleted, and agreement was reached on the FY 1982 ESFprogram and on areas of concentration for the FY 1982through FY 1987 period.

2. Strat~

The assistance package l.s onE.' of the strategicelements of the renewed and expanded USG-GOP relationship.It is one of the instruments required to achieve the U.S.and GOP's mutual goals with respect to security andeconomic development. The assistance package is seen asan indispensable contribution to the shaping and implemen­tation of a new U.S.-Pakistan relationship, and to thecritical role in the region which the U.S. Governmentseeks to assist Pakistan to play. The military-security­political position of Pakistan, including the burden of amass~ve refugee influ~, accentuates the development problemto which t~e proposed 'U.S. ~conomic assistance packageresponds.

- 6 -

The economic assistahce program is designed to helpPakistan, one of the world's largest and poorest nations.fulfill the basic human needs of its people. At the sametime. it is designed to address the country's foreignexchange needs through quick disbursing activities whilelaying the foundations for more rapid economic growth.The program is shaped to assure the widest possibledistribution of benefits. The program agreed to by theGOP and U.S. negotiating teams will:

a. reactivate a long-term development assistancerelationship. which the U.S. views as important because ofPakistan's size. poverty, strategic location, and othermulti-faceted U.S. interests;

b. provide balance of payments support so as tohelp address short and medium-term foreign exchange short­falls. thereby reducing development constraints andstrengthening the economy;

c. address key economic problems, which will helpenable Pakistan to achieve self-sustaining growth andmanage its debt burden;

d. complement and support IMF and IBRD assistedprograms. and improve their overall impact; and,

e. expand resource availability for local costfinancing.

All of the objectives and purposes of the economic packagecannot be achieved simultaneously. Nevertheless. it isthe express intention of both governments to initiate asmany of the proposed activities as possible within the firstseveral months of FY 1982. In view of the recent status ofthe bilateral relationship and program, and given themagnitude and urgency of the proposed efforts, a carefullydesigned strategy and approach are required. In the firstyear, FY 1982, the balance of payments objective is givenprimary emphasis. In later years, as program levels areelevated, the balance of payments focus is retained whilethe longer-term development strategy is given more attention.

It was in this context that the GOP and A.I.D. agreed tofinance a three-year amendment to the existing AgriculturalResearch Project in order to bring the project to asuccessful conclusion.

B. History of Existing Project

Yields per unit of land and water in Pakistan arevery low compared with developed countries and many develop­ing countries with similar growing conditions. In 1968 and

-~

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1973, joint Pakistani-American teams reviewed agriculturalresearch in Pakistan and s~ng1ed out inadequate appliedresearch as a major constraint to increased agriculturalp+oduction. As a result, the Agricultural Research Projectwas designed.

Between 1969 and 1973, A.I.D. provided $830,000 in develop­ment grant funds and Rs 12,000,000 in FAA Section 204 andMondale rupees to support the research program of the thenWest Pakistan Agricultural University. This was followed·in 1974 by a major program under which $16.5 million wasauthorized. The latter consisted of a $1.5 million develop­ment grant, of which initial obligations totalled $562,050,and a $7.6 million development loan, and Rs 73,500,000(or the equivalent of about $7.4 million) 3/ in Monda1erupees. The project was designed to support the developmentof coordinated national research programs under the PakistanAgricultural Research Council. Each research programfocused on a major crop or specialized research area andinvolved the cooperative efforts of relevant provincial andnational research institutions. The project also providedsupport for the development of a National AgriculturalResearch Center, one of the few federal agriculturalresearch institutions in the country. The charter ofThe Research Center is to carry out research not adequatelyaddressed by provincial agricultural research institutionsand to undertake activities which, by their nature, requireexamination in a centralized facility.

Several problems arose early in the implementation of theproject. Initially, The Council, the Government ofPakistan implementing agency, had a narrowly definedcharter and limited financial resources. The projectstarted before adequate staffing and internal administrativeresources could be arranged. In addition, complicationsarose in removing squatters from land set aside for theconstruction of The Research Center; lack of continuityin The Council's leadership was disruptive; bureaucraticdelays retarded the appointment of staff; and, managementof host country contracts for foreign advisors divertedscarce and valuable staff time away from research operations.

In April 1976, a review team determined that the programcalled for under the original project was too ambitious.Several components were already behind schedule. In spiteof concerted attempts, the Government of Pakistan andA.I.D. agreed that chronic institutional problems remained.A subsequent review in 1977 resulted in a major shift ofproject priorities. It was decided that project inputs

1/ At the exchange rate of $1.00 ~ Rs 9.9 in 1974.

- 8 -

would be used to build an institutional framework whichcould eventually support a comprehensive agriculturalresearch program. In retrospect, this change was longoverdue and took into account the· need to focus attentionon the administrative and managerial aspects of mountingmajor research programs.

The redesigned project was approved on May 30, 1978.Rescheduling of project inputs was required. In August1978, an amendment to the project agreement reduced theloan by $1.4 million to $6.2 million and the rupee grantby Rs 20,000,000 from Rs 73,500,000 to Rs 53,500,000.This was in addi.tion to a grant of Rs 1,000,000 which wasprovided in early 1978 for the Agricultural ResearchDocumentation Center. The Agreement was again amendedon August 30, 1979, increasing the development grant by$200,000 from $562,050 to $762,050. In 1979, implementationfell behind schedule because of,events which were outsidethe control of the project. As a result of the applicationof Section 669 of the Foreign Assistance Act, $737,950 ofgrant funds authorized in 1974 were never obligated. Alsoin 1979, resident technical advisors and USAID staff weresent home due to disruptions at the American Embassy.Several of these advisors were unable to return to Pakistan,severely reducing A.I.D. management/monitoring of theproject for more than two years.

A Third Amendment to the Agreement was signed on May 22,1980, increasing the rupee grant component by Rs 60,000,000from Rs 54,500,000 to Rs 114,500,000. In summary, fundsavailable for the project since 1969 total $25,863,912.This amount represents $6,200,000 in development loan funds,$1,592,050 in development grant funds, and Rs 126,500,000or the equivalent of $18,071,862 in FAA Section 204 andMondale rupees. The financial history of the project isshown in Table 1.

C. Project ProgreSs to Date

Prior to the initiation of this project in 1969,The Council consisted of a few scattered offices in Karachi,several professional agriculturalists, and a limitedbudget. The organization existed on paper and researchwas concentrated in two provinces, the Punjab and theSind, and on irrigated cash crops such as cotton and rice.From this modest beginning, the Agricultural ResearchProject has made considerable progress.

1. Institutional Development

a. The Council

The Council has progressed significantly sincethe initiation of project activities. Procedures now exist

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TABLE 1

AGRICULTURAL RESEARCH PROJECT FINANCIAL HISTORYSUMMARY OF OBLIGATIONS AND DEOBLIGATIONS !/

FY Dollar Grant Dollar Loan ~ondale Rupee Grant

1969

19701971 + 830,000 + Rs 3,400,000 ($714,286) ~/

1972 + Rs 2,600,000 {$236,364} £/1973 + Rs 6,000,000 ($606,061) d,e/1974 f/ + 175,000 + 7,600,000 + Rs 73,500,000 ($7,424,242) Q/

1975 + 200,000

1976 + 187,050

1978 - 1,400,000 - Rs 20,000,000 ($2,020,202) d/+ Rs 1,000,000 ($1,010,101) ~/

1979 + 200,000

1980 + Rs 60,000,000 ($6,060,606) ~/

TOTAL + 1,592,050 + 6,200,000 + Rs 126,500,000 ($18,071,862)

GRAND TOTAL = $25,863,912

!/ + = Obligation; - = Deobligation

b/ At the exchange rate of $1.00 = Rs 4.76 as of 2/15/71 (Mondale).

£/ At the exchange rate of $1.00 = Rs 11.00 as of 5/31/72 (Mondale).

d/ At the exchange rate of $1.00 = Rs 9.9 between 2/73 - 1/82 (Mondale).

e/ FAA Section 204 Rupees.

f/ Original FY 1974 Authorization = $1,500,000 grant and$7,600,000 loan

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to promote efficient execution of its coordinating,monitoring, and planning functions. Ten federallycoordinated research programs already underway 'are listedin Table 2. The stage of development of each program isgiven in the operational status column on a scale of one(just started) to ten (completed). Ten additionalcoordinated programs are in the process of being implemented.These include: sugar crops, vegetables, honeybees, salinebiology, sheep, goats, consumptive use of water, plantgenetic resources, constraints research, and farmingsystems.

TABLE 2

STAGE OF DEVELOPMENT OF FEDERALLYCOORDINATED AGRICULTURAL RESEARCH PROG~~

IN PAKISTAN 'AS OF APRIL 1982

Under the coordinated programs, projects are designed forall research experiments. Each project identifies the farmerproblem to be solved, the approach to solving the problem,and a plan for transferring research results to farmers.

The Council's staffing and budget have increased significantlysince 1974. From a staff of 385 in 1974, The .Council nowhas a total research staff of 1077. Budget allocations forThe Council have grown from about Rs 50,000,000 in Pakistan

Research Program

WheatRiceMa,ize, Millet and SorghumOilseedsPotatoAnimal NutritionReproductive PhysiologyCross Breeding Dairy CattlePulsesFodder & Forage

Operational Status ona Scale of 1 (just started)to 10 (completed)

6

6

6

5

53

2

2

4

4

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FY 1973/74 to Rs 222,144,000 in Pakistan FY 1981/82. Overthe last fiscal year (1980/81 to 1981/82), the budgetincreased by 144 percent.

A significant event in the history of The Council was thepromulgation by the President of Pakistan on December 29,1981 of the Pakistan Agricultural Research Council Ordinance,1981, which confers greater functional autonomy on TheCouncil. The Ordinance redefines the mandate and functionsof The Council, the most important of which are to: (i) under­take, aid, promote, and coordinate agricultural research;(ii) arrange for the expeditious utilization of researchresults; (iii) arrange for the training of high-levelscientific manpower in agricultural sciences; and, (iv)generate, acquire and disseminate information relatingto agriculture. The overall control of the reconstitutedCouncil will rest in a Board of Governors with the Ministerfor Food and Agriculture as its President. This act isintended to allow The Council to play a more effective rolein conducting research in the field of agriculture and indeveloping technology best suited to the different agro­ecological and socio-economic conditions of Pakistan.

b. The Research Center

i. Construction

. The operational arm of The Council is TheResearch Center located near Islamabad. When completed,it will function as the federal research center for drylandagriculture, including animal and plant production.

The construction of The Research Center is behind schedulefor a number of reasons, including delays in approval ofdesigns,slow release of GOP funds in the early stages ofthe project, and problems associated with host countrycontracts, local construction, and coordination amongengineering firm~. These delays have resulted in significantcost overruns. Construction progress as of April 1982 ispresented in Table 3.

ii. Management

The Research Center plans and coordinatesresearch activities to complement research conducted atsome sixty locations throughout the country. In addition,provincial research centers are strength~ned by researchgrants provided by The Council. The Research Center alsooffers training, seminars, and conferences which provide aforum for interchange of knowledge.

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TABLE 3

CONSTRUCTION PROGRESS AT THE RESEARCH CENTERAS OF APRIL 1982

Activity Percent EstimatedCompleted Completion Date

A. Fann Center1. Farm Inputs Storage 98 6/822. Crops Processing 90 6/823. Crops Research Storage 98 6/824. Machinery Maintenance 40 7/82

B. Residences1. On-Station 50 8/822. Off-Station 100 Completed

C. Research Center Complex1. Administration Building,

Library, Auditorium, andDocumentation Center 30 1/832. Laboratory Blocks 50 9/823. Training Center, Hostel, andCafeteria 85 6/824. Furnished and Equipped 0 6/83

D. Station Development1. Roads 70 6/832. Irrigation System,

Tubewells, and Reservoir 30 12/823. Drainage System 25 12/824. Land Survey and landAllocation 60 12/825. Fencing (existing temporaryfence to be replaced) 0 12/826. Land Levelling 20 4/83

E. Utilities1. Water To be completed 1/832. Electricity after buil di ng 1/833. Gas construction 2/834. Telephones 4/845. Sewage Plant 4/84

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As a young organization, The Research Center lacks themanagement skills necessary to carry out its responsibilities.Within Pakistan, there is a shortage of trained managers inagricultural research. The original project addressed thedevelopment of management capability at The Council but paid

. insufficient attention to management needs at The ResearchCenter. This deficiency will be addressed in this amendment.

iii. Research

Research trials at The Research Center havebeen severely constrained by the slow pace of the physicaldevelopment of the site and the lack of experienced managers.A Master Plan for the physical division of The ResearchCenter was developed and then, for lack of on-site leader­ship, ignored. Subsequently, The Council came to agreementwith CrDA and the World Bank on projects to support specificresearch programs which require space at The Research Center.The Master Plan has been revised accordingly, but implemen­tation of the Plan is still constrained by lack of seasonedmanagers at the site.

Technical assistance for research was reduced during thecourse of the project. This was partly because fundsoriginally authorized for the project were never obligated.Additionally, technical assistance funds originally earmarkedfor research activities were diverted to provide outsideA&E consultant services in response to an unanticipatedneed for additional assistance in the design of The ResearchCenter.

Technical aRsistance which has been provided for researchwas used to strengthen The Research Center's capability inrice, wheat, and maize production. Some advisors were alsoprovided to support the Council's coordinated researchprograms, which benefited The Research Center as well asprovincial research stations. Most of the technicalassistance has been provided by three agencies, the U.S.Department of Agriculture (USDA), the International RiceResearch Institute (IRRI), and the International Maize andWheat Improvement Center (CIMMYT).

Under the project, USDA has served as the major source oftechnical assistance and has placed and provided guidanceto 44 participants in advanced degree programs in U.S.universities al1d short-term technical training programs.Resident assistance which was suspended in 1979 resumed in1980 and 1981 with a series of short-term technical crop­specific specialists who were provided at the request ofThe Council.

IRRI has conducted field demonstrations at cooperatingfarmers' fields under the guidance of resident staff.

JSQ.> ( ~

- l/~ -

A resident advisor from IRRI has also played a key rolein the. establishment of an Agriculture Machinery Divisionat The Research Center and has directed the design,construction, and modification of prototype cultivationand harvesting machines for multi-crop operations inPakistan. These efforts have led to the development andcommercialization of locally produced multi-crop threshers.

CIMMYT has provided continuous resident technical assistancein wheat and maize improvement as well as periodic visitsby wheat and maize specialists from CIMMYT headquarters andthose stationed in the region. Under the program, promisinghigh-yielding maize· and wheat lines are being tested atexperimental stations and at farmers' fields for adapt­ability to local climatic, pest, and disease problems.Increased wheat production, close to self-sufficiency, canbe attributed in large part to the cooperative researchactivities of scientists of The Council and CIMMYT overthe past decade.

Despite the considerable progress which has been made,however, there remain significant gaps in agriculturalresearch which the original project was designed to address.

2. Training

Training for the combined federal/provincialresearch network has included Ph.D. and M.S. degree programsin the U.S. and non-degree training in the U.S., at IRRI,and at CIMMYT. Training provided under the project todate is outlined in Table 4. All of the training originallyplanned is being carried out. A recently conducted surveyof returned participants indicated that 56 of the 58 whocompleted tratning under the project have returned toPakistan and are engaged in agricultural research work.

3. Equipment/Supplies

Under the original project, the majority of fundsallocated for commodities was to be used for researchequipment and supplies for The Research Center, which isbeing constructed under the project. Based on A. 1.0.' sinstructions, procurement of commodities for The ResearchCenter was delayed until the design of the facilities wascompleted and a construction contract was executed. Becauseof the significant delays in construction activitiesdiscussed earlier, it was not until early in 1981 thata list of commodities was finalized and an Invitation forBids (IFB) prepared. The IFB was issued by The Council inAugust 1981, and the bids were reviewed in December 1981.

- 15 -

TABLE 4

AGRICULTURAL RESEARCH PROJECTSTATUS OF PROJECT~FINANCED TRAINING AS OF APRIL 1982

Type of Training Number of CandidatesInitiated a/ ·Completed to Date

Ph. D. (U.S.) 11 4

M. S. (U.S.) 29 5

Non-Degree (U.S.) 3 3

CIMMYT 30 26IRRI bl 24 20

TOTAL 97 58

~I Of the 97 participants who initiated training, 6 terminateddue to illness (3 U.S. degree candidates and 3 in trainingat CIMMYT) and one U.S. Ph.D. candidate was terminatedafter unsatisfactory performance.

bl Includes 4 Ph.D. candidates.

Analysis of the bids revealed the following:

Value of awards which could be approved = $2,091,000

Value of commodities for which awardscould not be approved because of lackof respon~ive offers (value based onlowest non-responsive offer received)

Total value of commodities underIFB (Estimated)

= $ 568,000

= $2,659,000

= $1,845,000Funds available for commoditiesunder existing project

Estimated shortfall

Allowance for possible price escalationof commodities requiring resolicitationof bids

Total shortfall

= $

$

$

814,000

86,000

900.000

:):,

- 16 -

The funding shortfall is due to two factors:

a. When the IFB was issued, the total value ofcommodities was estimated at $2,100,000. In the originalproject budget, $2,570,000 had been allocated forcommodities~ By the time the IFB was issued, about$725,000 either had already been expended or committedfor other commodities, leaving an actual balance of only$1,845,000 for commodities in the project. This accountsfor about $255,000 of the shortfall (i.e. $2,100,000 less$1,845,000).

b. The difference between the estimated ($2,100,000)and actual ($2,659,000) value of the commodities under theIFB is $559,000. This 27 percent difference is due tothe fact that cost estimates were· obtained from 1979catalogs, and an inflation factor was inadvertentlyommitted.

USAID/Pakistan and The Council have reexamined the listof commodities, both those which can be awarded now andthose for which a resolicitation is required due to thelack of responsive bids. The original commodity listprepared by The Council has already been reviewed andreduced by USAID/Pakistan and USDA advisors. Since allof the items are deemed essential, funds will be providedunder the amendment to cover the shortfall so that thisprocurement action can be finalized.

D. Other Donor Assistance

The World Bank has agreed to provide a $30 millionloan to be disbursed over a five-year period beginning in1981 to support Pakistan's agricultural research program.Building on the institutional base that A.I.D. developedat The Council, the World Bank project will financeconstruction of a headquarters building for The Counciland provide assistance for research program development.The World Bank will complement A.I.D. assistance to TheResearch Center by supporting research program developmentin areas which A.I.D. will not address, such as plantservices, animal sciences, cereal diseases, oilseeds,agricultural engineering, and agricultural economics.The World Bank project will also fund graduate degreeprograms.

The Government of Australia is assisting the LivestockResearch Division of The Council. The Canadian Inter­national Development Agency (CIDA) is contributing $10million for research in oilseed-based cropping systemsfor rainfed areas. This research is being undertaken atThe Research Center in conjunction with research financedunder the A.I.D. project.

1Jio,.

- 17 -

E. Relationship to A.I.D. Strategy and OtherA.LD. 'Projects

A.I.D.'s strategy focuses on agriculture and ruraldevelopment since this is the area which benefits themajority of Pakistan's population and where Pakistan'sgreatest economic potential lies. This project willsupport that strategy by providing the agro-technicalbase for raising agricultural productivity and increasingcrop yields and by strengthening the institutionsresponsible for coordinating and conducting agriculturalresearch in Pakistan. Ultimately, agricultural productivitywill be increased which will accelerate overall socio­economic development and growth, particula.rly by improvingthe incomes and nutritional status of low-income groupsin the rural areas.

This project will also promote the objective of the U.S.Government in Pakistan to curtail opium poppy productionby providing the resources required (i.e., trained agri­cultural technicians and a strong agricultural researchprogram) to develop and encourage crop alternatives topoppies. During the three-year project amendment period,The Council will undertake a pilot crop substitutionproject, by employing a task force approach to raisedramatically agricultural yields of conventional crops.This activity, which may be financed under either theProject Design Fund or another A. 1.. D. -financed proj ect,if successful, could provide significant opportunitiesfor effective interventions which would serve as develop-ment alternatives to opium poppy cultivation in Pakistan.

The successful completion of this project will have afavorable impact on several other proposed and on-goingA.I.D. projects. Through agricultural research, methodsare developed to ensure the effective and efficient useof fertilizer, seed, water, and other agricultural inputs.Such research will increase the likelih60d that the fertilizerand agricultural equipment imported under the AgriculturalCommodities and Equipment Project and the improvements inPqkistan's watercourses and irrigation system under theOn-Farm Water Management and Irrigation System ManagementProjects, respectively, will have a positive impact onagri~ulturalproductionin Pakistan. The design andimplementation of the FY 1983 Agricultural Production,Distribution, and Storage Project will also benefit fromthe research conducted at The Research Center under thisproject.

The GOP and A.I.D. have also agreed to undertake an Agri­cultural Education, Research, and Extension Project inFY 1983, which will concentrate on provincial agricultural

- 18 - ,

research programs. The success of that project depends ona federal coordinating body which is capable of setting

,national priorities and efficiently allocating scarceresearch funds. In addition, technological innovations inagriculture which are developed outside of Pakistan haveto be adapted to local conditions prior to dissemination.This has become a sine qua ~ to the success of allinternational research centers. The responsibility forundertaking these adaptations lies with the federal andprovincial agricultural network. The future of agriculturaldevelopment in Pakistan therefore clearly depends on theexistence of a strong network of agricultural researchinstitutions. '

Two additional projects which will benefit from the outputsof the Agricultural Research Project as amended are theTribal Area Development Project, which will be implementedin the Northwest Frontier Province, and the BaluchistanArea Development Project. Successful programs in thesetwo least developed provinces of Pakistan will requireinnovative techniques to change traditional agriculturalpractices as well as to develop alternatives to the land­intensive, water-deficient, and relatively low yieldingsystem of agricultural production which exists in theseareas.

The University of Minnesota (liM), under an extension ofthe Asia Bureau Agricultural Research Review Project(498-0249), is conducting a study to determine the impactof A.I.D.'s investment in agricultural research throughoutthe region by reviewing prior and current research activitiesin Pakistan. In December 1981, the UM undertook areconnaissance (first phase) of a planned three-phaseeffort to assess the institutional performance of thecountry's agricultural research system and, in particular,to evaluate the effectiveness of A.I.D. 's investment inThe Council. This comprehensive evaluation, which shouldbe completed by April 1983, will serve as an interimevaluation for this project amendment and will also beused to design the research component of the FY 1983Agricultural Education, Research, and Extension Project.

F. Project Rationale

A.I.D. has been providing support to agriculturalresearch in Pakistan for over two decades. Considerableprogress has been achieved, in particular, since 1969 whenthe Agricultural Research Project began. Because of costescalation, poor budgeting, and unforeseen circumstances,however, funds provided under the original project wereinsufficient to bring the project to 1I successful conclusion.

- 19 -

Since the primary focus of the renewed econom~c assistanceprogram to Pakistan is in the agriculture sector, it is inA.I.D.'s interest to complete the construction of TheResearch Center and to ensure that The Center is adequatelystaffed, managed, and equipped. The design and successfulimplementation of many of the proposed projects to befinanced by A.I.D. depend on the existence of a strongand effective Council and Research Center.

No other donor plans to support The Council and The ResearchCenter in the areas A.I.D. will finance under the amendment.In fact, other donors have reached agreement with the GOPon related projects which assume that A.I.D. will completethe construction, equipping, and institutional strengthen­ing of The Research Center. The amendment, therefore, iscritical not only to the successful completion of theproject, but also to assistance being provided by otherdonors.

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III. PROJECT AMENDMENT DESCRIPTION

A. ~ect Goal and Purpose

The project goal has not changed. It is "to increaseagricultural production and improve the incomes of lowincome farmers." The project purpose has not changed. Itis "to establish a functioning centrally coordinatedprogram of agricultural research for major agriculturalcommodities which effectively translates policy guidelinesinto specific research projects with achievable results."All amendment activities are consistent with the goal andpurpose of the original project and take into considerationthe lessons learned during implementation of the originalproject.

B. ~ect Outputs

As a result of amendment activities, the followingoutputs will be realized:

1. The Farm Center, residences, The Research Centercomplex (administration building, library,. documentationcenter, laboratory blocks, hostel, cafeteria, and trainingcenter), and experimental farm will be constructed,equipped, and furnished in accordance with The ResearchCenter's Development Guide.

2. The Research Center will have the physical plant,equipment, and trained personnel, hence the capacity andcapability to conduct research in wheat, maize, pulses,fodder and forage, vegetables and horticulture, dairytechnology, ruminant nutrition, and reproductive physiology.

3. The Station Development and Farm Operations Divisionwill be organizationally in place and will have sufficientstaff and established standard operating procedures torespond to requests for technical support by researchers.

4. The methodology for genetic improvement of wheat,rice and maize will be agreed upon and implemented.

5. Reports on farming systems for wheat, rice, andoi1crops (rape, mustard, sunflower) will be completed.

6. Specialized laboratories at The Research Centerfor edible oil analysis and biochemistry, soil and wateranalysis, plant physiology, microbiology, virology,toxicology, entomology, genetics and cytogenetics, and weedcontrol will be built, equipped, staffed, and capable ofsupporting provincial research.

- 21 -

7. Research findings on wheat and maize will have beentested through on-farm trials and extension activities.

8. Approximately 40 degree candidates and 60 short­term participants will have co~leted training and retu.tnedto Pakistan to work in Pakistan a agricultural researchprogram.

9. The engineering section of The Council will haveadequately trained staff capable of effectively supervisingconstruction activities at The Research Center.

10. Management of The Research Center by the Director­General, the Deputy Director-General, and the heads offunctional divisions will be efficient and effective asevidenced by their judicious use of standard operatingprocedures, a reliable management information system, andsound resource allocation planning.

C. Project Amendment Activities

The primary focus of project amendment activities willbe to strengthen the capability of The Research Center tomanage its resources and to conduct agricultural research.Specifically, A.I.D. and the Government of Pakistan haveidentified management of domestic and donor providedresources for construction and research activities as areasrequiring further assistance.

1. Management

Tt facilitate the development of a managementcapability within The Research Center, this amendment willfund the services of two long~term resident consultants:an Advisor to the Director-General; and, a Station Developmentand Operations Engineer, each for 24 months.

a. Advisor to the Director-General

The Director-General of The Research Center isa newly established position which has not yet been filled.The Director-General will report directly to the Chairmanof The Council and will be responsible for the generalmanagement of the research station. This includes ensuringthat research programs relevant to Pakistan are conducted incoordination with provincial research entities and thatsupport services necessary to conduct research are provided.

The Council is seeking suitable candidates for this position.However, due to the shortage of experienced managers inPakistanis agricultural research system, it is expectedthat the individual selected will require extensive on-the-jobtraining. To provide that training and to develop a manage­ment capability within The Research Center, the amendment

- 22 -

will fund the services ot an Advisor to the Director-General for 24 months. .

The Advisor will work with the Director~G~neral to definethe respdnsibilitips and authorities of each functionaldivision reporting to the Director-General's office, toestablish standard operating procedures, to promote workablelinkages with provincial research organizations, to identifyappropriate research programs for implementation, and toensure that qualified staff are r$cruited. Initially, theAdvisor will focus primarily on upgrading the managementskills of the Director-General and his deputy. As theproject progresses, the Director-General and his deputy willrequire less day-to-day support, and the Advisor will shifthis attention to working with heads of the functionaldivisions to build a mid-level management capability.

b. Station Development and Operations (SO/D) Engineer

A capable technical support organization isessential within any agricultural research institution toensure that fields are layed out properly, irrigation systemsare operating efficiently, buildinfs are logically designedand located, equipment is adequate y maintained, and, to theextent possible, conditions are favorable for conductingresearch. To date, The Research Center has had difficultyin building a strong technical support organization, andstation development has taken place in a haphazard mannerwith little central guidance or coordination. Again, thereason is a shortage of trained, experienced personnel.To upgrade the capabilities of The Research Center's technicalsupport organization, the amendment will fund the servicesof a Station Development and Operations (SO/D) Engineer for24 months.

The SD/O Engineer will work with The Research Center'sDirector of Station Development and Farm Operations at theexperimental farm to build an organization capable ofeffectively delivering technical support services toresearchers. This will require the development of policyand operating procedures, the establishment of a chain ofcommand, and on-the-job training to develop staff capa­bilities. On-the-job training will be accomplished by thecompletion of the following types of tasks:

1. and Maintenance

Some of the machinery procured under theoriginal project, including tractors, a road grader, landplanes, and scrapers, has already arrived with the remainderdue in-country by July 1982. The SD/O Engineer will supervisethe assembly, commissioning, and maintenance of that equipment.

- :LJ -

ii. Road Building

The SD/O Engineer will supervise the planningand construction of an adequate system of roads to guaranteeaccess for both equipment and personnel to the specializedresearch facilities located on the 1400 acre grounds of TheResearch Center. Some of the construction and all of themaintenance of roads and peripheral fences will be carriedout by The Center's support staff.

iii. Construction of Farm Buildings

Buildings at the experimental farm we~e

designed and located with minimal inputs from researchersand other relevant station personnel. As a result, many ofthe buildings do not adequately serve their intended purpose.Under the World Bank project, approximately $1.5 millionwill be provided to construct new or improve existingfacilities for animal science, plant introduction, oilseed,cereal disease, and agricultural engineering research. TheSD/O Engineer will work closely with the architects responsi­ble for the design of these facilities and will ensure thatthe researchers' needs are taken into consideration at theplanning and construction stages.

iv. Smoothing of Station Farm Land

Station farm land is subject to minor drainageas well as irrigation problems due to a lack of slopeuniformity and an inability to remove many of the oldirrigation ridges through plowing and disking. Under thedirection of the SD/O Engineer, the land will be smoothedwith a land plane and maintained by proper tillage methods.The consultant will also supervise the shaping of land forirrigation purposes.

v. Reservoir Construction

At present, water supplies for the stationare unreliable. To ensure an adequate supply of water, asurface reservoir will be constructed. The SD/O Engineerwill work with the staff to design the reservoir, identifythe most suitable location for the reservoir, and superviseits construction.

2. Construction

The design of The Research Center was conceptua­lized by an expatriate specialist 1.n educational andresearch facility design. A local A&E firm was contractedto translate these concepts into working drawings for useby a local construction contractor and to supervise construction.

- 24 -

For various reasons, the concept of the layout was changedafter the first set of working drawings had been prepared,necessitating redesign and the preparation of another setof working drawings. The redesign 0ffort, drawing andconstruction problems, and the substantial time required forcommWlication bet\leen the local and United States basedA&E firms have delayed complr:.tion of the construction ofThe Research Center. Engineering assistance is needed tofacilitate completion of construction in a timely mannerand to ensure that the quality of construction meets agreedupon standards. Another engineeri..r.g problem relates toThe Council's engineering section ~~hich is responsible for,among other things, monitoring the construction of TheResearch Center. Heretofore, lack of sufficiently qualifiedengineering personnel has prevEml(~d this section fromeffectively supervising the local A&E firm's activities.

This amendment will address these two needs by funding atotal of 13 person-months of expat:ciate A&E services.Services will be provided by a construction managementconsultant, a construction project manager, a structuralengineer, a project director, a mechanical/electricalengineer or equipment speciali.st, a landscape architect, andother professionals as required. These personnel will eachprovide short-term technical assistance over a continuousperiod of 13 months.

The A&E construction manage~cnt consult~nt will be the focalpoint of the engineering assictance. His primary responsibilitywill be to oversee conatruction of The Research Center andto assure that it meets [:cc~ptable construction standards.A second responsibility vli~l be to develop the capabilitywithin the engineering section of The Council to overseeconstruction activitiec,. '1'£18 laLtu.'.. r(;sponsibility if.;important in the context of th.e llpi"'C'~ning World Bank projectwhich, as previously r',(;ntio~.ed, 111.8 programed considerableconstruction.

The consultant and other II.P~ pen>or;n,~l in con.junction withthe engineering section of The Council. will supervise theactivities of the local A&E firm. make necessary buildingdesign changes, and approve or. disapprove completedconstruction. In addition, they will work with The Councilto develop policies and operating and maintenance proceduresfor the engineering section.

Mondale rupees will also be provided under the amendment tofinance the balance of the local construction materials andsupplies and the services of the local A&E firm and localconstruction contractor which are required to complete theResearch Center.

- 25 -

3. Research

Both short-term and long-term technical assistanceto strengthen Pakistan's capability to conduct researchwill be provided under the amendment. Under cooperatingprograms with IRR! and CIMMYT, resident advisors from theseinternational centers have laid the groundwork for researchprograms that will lead to increased production of rice,wheat, and maize, and adaptation of small farm machinerythat will be used for planting, cultivating, and harvestinggrain crops. This amendment will provide funds to bringthese research activities to a successful and logicalconclusion.

a. International Rice Research Institute (IRRI)

Currently, only two strains of rice are growncommercially in Pakistan, IRRI-6 and basmati. The economiccosts would be great if disease were to hit either of thesestrains. Research to develop new strains of rice adaptableto conditions in Pakistan is being conducted at two provin­cial research stations: Kalashahkaku in the Punjab andDorki in the Sind. Under the amendment, IRRI will provide arice breeder/geneticist for 24 months to work with the on­going programs at these provincial research stations. Inaddition to supporting coordinated research to facilitatevarietal rice improvement, he will organize and supervisein-service training, short-term consultancies, yieldconstraint studies, and cropping systems research.

b. International Maize and Wheat ImprovementCenter (CIMMYT)

CIMMYT has provided both a wheat and a maizeagronomist under this project to facilitate the developmentof nationally coordinated wheat and maize programs. TheamE;.cndment will support a continuation of these on-goingprograms with an increasing role being delegated to the staffof The Council.

i. CIMMYT Wheat Program

The following activities will continue with 18months of assistance from the CIMMYT wheat agronomist:

(a) Soil Tillage/Moisture Conservation Program

The Council, through CIMMYT, has purchaseda set of soil tillage and seeding implements for use on off­station sites. Under the amendment, a series of trials willbe conducted with this equipment to develop technology forincreasing dryland agricultural production with emphasis onwheat, the major dryland crop. .

Research will be conducted to determine:

(1) What tillage methods and types ofmachines will conserve maximum amounts of soil moisture whilecontrolling erosion.

(2) What machines and practices requirethe lowest capital investment, energy input, and time toaccomplish (1) above.

(3) What machines and methods are mostsuitable to small farmers as well as large holdings.

Under the amendment, in-country seminarson wheat will be conducted and 36 months of short-termtraining in wheat production will take place at CIMMYT head­quarters in Mexico.

(b) Weed Control Program

The CIMMYT wheat agronomist in cooperationwith The Council has initiated a uniform series of weed controltrials that will be conducted at each research station and atseveral off-station locations. A total of 24 trials isplanned. This is a cooperative effort carried out by eachstation supported by The Counci.l.

Plot sprayers and herbicides have been supplied to TheCouncil under the CIMMYT program. The uniform trials wi.llinvolve those herbicides registered for weed control .in wheatin Pakistan as well as some herbicides which are in theprocess of being registered. Data from these trials willprovide information on the economic returns from the use ofherbicides and will enable researchers to make soundrecommendations to farmers. In later years, this work willbe expanded and refined as needed and as trained peoplebecome available.

CIMMYT is planning a comprehensive practical training programin 1982 to train weed control workers. This program willutilize the expertise and experience of the InternationalPlant Protection Center of Oregon State University (OSU) ,Corvallis, Oregon. The services of OSU will be providedunder an on-going A. LD. centrally-funded project. OSU has along and successful history of experience in this type oftraining program.

ii. CIMMYT Maize Progra~

The following programs will be carried forwardwith 18 months of assistance from the CIMMYT maize agronomist.

(a) Off-Station Program

Maize variety trial programs at research

- 27 -

stations have been set up and are operating smoothly. Theprogram has reached the stage where it can begin transferr­ing the technology to the farmer. Field trials willtherefore be conducted to demonstrate the new technologiesto the farmer and to solve problems which cannot be solvedat an experiment station. In addition to the off-stationfield trials, one concentrated area of about 500 hectares(3-4 villages) will be exposed to a maximization program.Through the maximization program, credit will be arrangedfor cooperating growers for the purchase of inputs. qualityseed and fertilizer will be distributed; and a team ofresearchers and extension agents will work with farmers tomaximize maize production and to demonstrate the benefitsof improved cultivation practices and agricultural inputs.

In addition, 36 months of short-term training in maizeproduction will take place at CIMMYT headquarters in Mexico.

(b) Disease Control Program

Stalk rot and leaf blight continue toplague maize in Pakistan. To date, local research institu­tions have been unsuccessful in identifying and i~olating

the stalk rot organism. To address this problem and developdisease resistant maize varieties, CIMMYT will set up apathology unit as part of the maize team at The ResearchCenter.

c. Short-Term Agro-Technica1 Assistance

The project amendment will fund a total of 14person-months of short-term agro-technica1 assistance inareas such as horticulture, sug~rcane, and citrus. Thisassistance will be provided through a PASA with USDA.

4. Equipment/Supplie~

As discussed in Section II. C.3., analysis oftenders received by The Council in response to its Invitationfor Bids (IFB) i~su~d in Augus~ 1981 for the procurement ofresearch equipment and supplies for The Research Centerindicated a shortfall of funds of approximately $900,000.Funds will be provided under this amendment to cover thisshortfall. A limited amount of farm equipment to supportresearch efforts, construction materials and equipment forThe Research Center, and twelve vehicles (two Toyota LandCruiser right-hand drive utility vehicles, fQur Toyot~ right­hand drive station wagons, and six Datsun right-hand drivepickup trucks), and spare parts for these vehicles will alsobe procured.

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IV. IMPLEMENTATION PLAN

A. Implementation Schedule

A proposed implementation schedule is presented inTable 5. Project amendment activities are programed tbtake place over a period of approximately three years.The Project Assistance Completion Date (PACD) has beenextended from June 3D, 1982 to June 3D, 1985. (SeeAnnex A.3.) All resident advisors will arrive in-countryin 1982. The 13 person-months of short-term technicalassistance for construction of The Research Center willbe provided in 1982 and 1983. The 14 person-months ofshort-term assistance in agro-technical research will beprogramed over the three-year period in consultation withthe staff of The Council. Orders for all conunodi.ties willbe placed as soon as possible after the Amendment Agreementis signed. Construction of The Research Center is scheduledto be completed by Apri~. 1984,; target completion dates forindividual structures are provided in Table 3. Short-termtraining in maize and wheat at CIMMYT will be undertakenduring the three-year amendment peri.od as shown on theimplementation chart. The two proposed evaluations arediscussed in deta.il in Section IV.E.

B. Administrative and Monitoring Arrangements

1. A.I.D. Responsibilities

The Office of Agriculture and Rural Development (ARD)will assume overall responsibility for managing the project.This office, which is currently staffed with three USDH andfive Pakistani professionals, will be expanded by theaddition of two USDH and two Pald.stani professionals inFY 1982. The Office of Energy and Engineering (E&E) willmonitor the performance of the engineering section of TheCouncil, the A&E construction management consultant andrelated personnel, and the local A&E construction supervisionand construction contractors. This Office currentlyconsists of one USDH and six Pakistani professionals,four of whom are engineers with responsibility for water­course inspections under the On-Farm Water Management Project.The Office of Project Development and Mon1toring (PDM),which currently consists of three USDH and three Pakistaniprofessionals, will assist ARD in all contracting andprocurement actions under the project. These two offices,E&E and PDM, will also be expanded in FY 1982 by theaddition of direct-hire and contract staff.

These staff resources, which will be supplemented by otherUSAID/Pakistan staff members and the Regional ContractsOfficer stationed at USAID/lndonesia, and the Regional

TABLE 5

PROPOSED IMPLEMENTATION SCHEDULE

1982 1983 1984 1965ACT I V I T Y JA.N MAR MAY JUL SEP NOV JAN MAR MAY JUL SEP NOV JAN MAR MAY JUL SEP NOV JAN WlR KAY JUl

1. Project AgreementAllendilent XS'l9!led

z. Technical Assist.~ce

a. Advisor to the Director-]General (24 pill) [

b. Station Develo.nt Ind]Operations Engineer (24 18) [

c. AlE Constroction ~nagelllent

Consultant and RelatedEngineering Personnel I(13 ~) [ ]

d. Rice Breeder/Geneticist r ](24 pII) •e. Whea t AgronOlllf st (18 pill) [ Jf. ~fze Agronomist (18 pa) [ ]g. Agro-Technical ST-TA

[-] [- ] [-] [-] [~] [-] [-](14 III)

3. CalOdftx Procurenent I

I. Equiplent/Supplies forI

0rcIer$ Pllced Arrfve~The Research Center I X Arrf e XII

b. Vehicles X X

c. flMIl Equipment X Arrive Xd. Construct10n Equfpment X X

4. Construction Of the It

Research (en_ter [ ]

5. Trljn1n912 partiCi)ts @ 6 .,;u 12 participaots @6 vks

a. CIMMYT Wheat Course [- NCr [-] ea.ct(36 pill) I

b. CIMMYT ~ize Course 12 partic:1panu @ 6 vU 12 participants @6 vks(36 III) [-] each [-) each

c.ln-country Seminar on 20 participants @ 2 V&BMaugMent Ind Fanni ngSystems Research [-] each.

d. In-country seminlr on 20. participants @2 VkB eachweed Control [-1

e. Training for the]01 rector-General [

6. Evaluationa. Inter1~ Evaluation Xb. Terminal Evaluation X

- 30 -

Commodity Management Advisor stationed at USAID/Thailand,are considered adequa.te to handle USAID/Pakistan IS

administrative and monitoring responsibilities for theon-going project as amended.

2. GOP Responsibilities

The GOP agency responsible for the implementationof this project is the Pakistan Agricultural Research Council,a semi-autonomous organization within the Ministry of Food,Agriculture, and Cooperatives. The Council will beresponsible for: (a) ensuring that counterparts are inplace for all the technical assistance planned under theamendment; (b) procuring the equipment and supplies forThe Research Center; (c) executing amendments to itsexistinr; host country contracts with IRRI and CIMMYT;(d) advertising for and contracting the services of anAdvisor to the Director-General of The Research Center;(e) ensuring that qualified participants are selected forthe short-term training planned under the amendment;(f) monitoring and supervising the local A&E constructionsupervision and construction contractors to ensure thatthe construction of The Research Center is completed onschedule and within the revised budget; and, (g) parti­cipating in scheduled evaluati.ons. The budgetary andstaffing levels of The Council are considered adequate toundertake these responsibilities.

C. Procurement Plan

1. Technical Services

Implementation of amendment activities will requiresubstantial inputs of technical assistance in construction,management, and agro-technical research. Table 6 summarizesthe proposed technical assistance inputs under the amendment.

Two resident advisors will be provided under the amendmentto develop a management capability at The Research Center.The Advisor to the Director-General will be required for24 person-months and will be hired under a host country¢ontract with, most likely, the International AgriculturalDevelopment Service (lADS). The Mission will prepare awaiver to allow the non-competitive, negotiated procurementof this advisor through the lADS. The Station Developmentand Operations Engineer will be required for 24 person-monthsand will be obtained under an existing PASA with the USDA.

Under the on-going Agricultural Research Project, theservices of aU. S. - based architectural enginl':;~ering firm,ABRIS, were obtai.ned throuF:h a PASA with the USDA. ABRISwas responBtble for concpptlJf.lliz.ing the design of The

- 31 -

TABLE 6

PROPOSED TECHNICAL ASSISTANCE PLAN

Project Amendment Type of Technical Source of Technical Number ofComponent. Assistance Assistance Person-Months

Institutional Advisor to the Host Country Contract 24Strengthening Director-General with lADS ~/

Station Development Existing USDA PASA 24and Operati onsEngineer

Construction A&E Construction ABRIS ~/ under an 13Management Con- existing USDA PASAsultant and RelatedEngineeringPersonnel

Research Rice Breeder/ Existing Host Country 24Geneticist Contract with IRRI

Wheat Agronomist Existing Host Country 18Contract with CIMMYT

Maize Agronomist Existing Host Country 18Contract with CIMMYT

Short-term Tech- USDA PASA 14nical Assistancein Agro-TechnicalResearch

TOTAL 135----------------

2.-/ I ADS = Internati onal Agri cultural Development Servi ce.

b/ ABRIS is a U.S. architectural and engineering firm located in- Urbana, Ill;noi s.

- 32 -

Research Center and for providing advisory assistance asrequired on a short-term basi~. Under the amendment, thePASA with the USDA will be extended, and ABRIS will providethe services of an A&E construction management consultantartd related engineeri.ng person~el for a total of 13 person­months.

Resident technical advisors, for agro-technical researchwill be obtained by extending existing host countrycontracts with CIMMYT and IRR!. The CIMMYT wheat agronomistand the CIMMYT maize agronomist will each be extended for18 person-months. The IRRlrice 'breeder/geneticist willbe contracted for 24 person-months. In addition, a PASAwith the USDA will be negotiated to provide 14 person-monthsof short-term technical assistance in specified researchareas.

2. Commodities

Commodities directly related to services provided byresident advisors, such as a limited amount of fannequipment in support of research activities and householdand office equipment will be procured by the consultanthimself or his sponsoring agency. Household furnishingsfor the resident advisors will be procured directly bythe Mission.

The Mission will also be responsible for the direct procure­ment of the twelve vehicles required to transport personneland equipment to undertake field trials to demonstrate newtechnologies to farmers and to identify and solve researchproblems which cannot be handled at an experiment station.The Mission and The Council have defined the vehicle needsof the project as follows: two (2) Toyota right-hand drivediesel Land Cruiser heavy duty off-the-road utility vehicles,four (4) Toyota right-hand drive station wagons, and six (6)Datsun two-passenger right-hand drive diesel pickup trucks.These vehicles are durable and appropriate for travel inrural areas over rough terrain in often inclement weatherin a country where traffic moves on the left-hand side ofthe road. Procurement of these vehicles and spare partswill require the approval by A.I.D. 's Assistant Adminis­trator for Asia (AA/ASIA) of a source/origin waiver fromA.I.D. Geographic Code 000 to Code 935 and the approval ofthe USAID/Pakiatan Mission Director of a waiver to allownon-competitive, negotiated procurement. A copy of thesource/origin waiver request, which will be sent to AID/Washington for approval, is contained in Annex F.

Construction equipment such as a bulldozer, a loader,a forklift, and a dump truck will be procured directlyby the Mission through A.I.D. 's Excess Property Division.

- )3 -

The Council will undertake the procurement of the researchequipment and supplies for The Research Center. This willinvolve a resolicitation of bids on those items for whichno responsive offer was received as a result of the IFBissued in August 1981. The Mission will assist the staffof The Council in evaluating these resolicited bids,awarding contracts to responsive bidders, and in arrangingfor the issuance of Letters of Commitment.

All commodities, wi.th. the exception of the vehicles, willhave their source and origin in the United States orPakistan.

D. TraininB..l:lan

A limited amount of third-country and in-countrytraining, and a 2-month academic and observation trainingprogram in the U.S., among other countries, for the Director­General of The Research Center will be financed under thisamendment to supplement all the participant training beingcarried out under the original project. A proposedparticipant training plan is presented in Table 7.

E. Evaluation Plan

In 1968 and 1973, evaluations of the institutionalbase for carrying out agricultural research responsive tothe economic, social, and developmental needs of Pakistanwere conducted. As discussed previously, the originalA.I.D. project was reviewed in 1976 and again in 1977 withthe resultant redesigned project approved in 1978. InDecember 1981, the University of Minnesota (UM), underan extension of the Asia Bureau Agricultural ResearchReview Project (498-0249), undertook a reconnaissance(first phase) of a planned thr~e-phase effort to assessthe institutional perfonn:mce Jf the country's agriculturalresearch system and~ in particular, to evaluate theeffectiveness of A.I.D. 's investment in The Council.This comprehensive evc:t1uCltion should be completed andavailable by April 1933 and will serve as an interimevaluation for this project nmc.ndment.

USAID/Pakistan will conduct a terminal project evaluationin Janua.ry 1985, approximat.ely six months prior to theProject Assistance Completion Date (PACD). By this time,the IBRD follow-on project "'rill be well into implementation.This evaluation will examine the ey.tent to which theten (10) outputs defined in Section III.B. have beenobtained. in additlon to these project-specific outputs,the evaluation team will p'::-ovide an overall assessment of:

1. the effectiveness of The Research Center inplanning and implementing its research program in coordinationwith research carried out in the provinces; and,

- 34 -

TABLE 7

. PROPOSED PARTICIPANT TRAINING PLAN

Type of Length of Training No. of ProposedTr~in1ng Train"lng Site Part1c1 pants Schedule

Observational 1 month U.S., Mexico, 1 1983and Academic observa tiona1 Phil i ppi nes

and 1 monthshort-term U.S.

Specialized 6 weeks CIMMYT 24 12 1n 1983Course in Mexico 12 in 1984Wheat

Specialized 6 weeks CIMMTY 24 12 in 1983Course in Mexico 12 in 1984Maize

Specialized 2 weeks Pakistan 20 August 1982Seminar inManagemr-rttand FarmingSystemsRe$earch

Spedali zed 2 weeks Pakistan 20 November 1982Seminar inWeed Cont ro1

2. the effectiveness of The Council in planning andimplementing nationally coordinated research programs and theresponsiveness of these programs to the country's prioritiesin agricultural research.

The evaluation team will consist of the following members:

1. USAlD/Pakistan Project Officer

2. A.l.D.-financed Advisor to the Director-Generalof the Research Center

3. IBRD-financed Advisor to the Chairman of The Council

4. One or two A. I. D. Regional Specia lists in Agricul tur;llOperations Research

- 35 -

5. Representative from ASIA/TR/ARD, AID/Washington

6. Representative from ASIA/PO/ENG, AID/Washington

7. Specialist in Agricultural Research from theUniversity of Minnesota or other consultant

8. Representatives from The Council and The ResearchCenter

The evaluation, which will be conducted primarily on thebasis of field trips, interviews, and review of secondarysource data, will require about four to six weeks ofeffort by the above team and will be financed under theamendment.

F. Financial Plan

1. Financial Status of Existing Project

All funds obligated prior to 1974, which consistedof $830,000 in grant funds and Rs 12,000,000 in FAA Section204 and Mondale rupees, have been disbursed. Funds obligatedsince 1974 include $6,200,000 in development loan funds 'and $762,050 in development grant funds or a total of$6,962,050 in dollar funds and Rs 114,500,000 in Mondalerupees. As of December 31, 1981, cumulative accrued dollarexpenditures totalled $4,417,000 (includes $830,000obligated prior to 1974) leaving an undisbursed dollarbalance of $3,375,050. All of the dollars remaining inthe pipeline have been conunitted for techni.cal servicesprovided by USDA, IRRI, and CIMMYT long-term advisors andshort-term consultants, for commodities from suppliers whohave been awarded contracts under the IFB issued by TheCouncil, and for training of long-term participantscurrently overseas. Of the Rs 114,500,000 in Monda1erupees available for this project, about Rs 70,000,000has already been disbursed, and the remainder is totallyconnnitted for construction costs and program support costsand should be fully disbursed within the next twelve months.

2. Project Amendment

a. A.I.D.

As shown in Table 8, the total cost of amendmentactivities will be $11,801,000, which consists of $3,200,000in ESF grant funds, Rs 29.700,000 (or the equivalent of$2,848,000) in Mondale Rupees, and Rs 60,000.000 (or theequivalent of $5,753,000) in local currency provided bythe GOP. The A.I.D. dollar grant and Mondale rupeecomponent constitute about 51 percent of the. total costof ainendment activi.ties; and both will be totally obliga.tedin FY 1982.

- 36 - .

TABLE 8a/

SUMMARY OF PROJECT AMENDMENT COST5-BY FISCAL YEAR AND SOURCE OF FUNDING

(in $ 000)

Source of FundingF I S CAL YEA R

1982 1983 1984 Total

A.I.D. Dollar Grant 2.659 265 276 3,200

Mondale Rupees ~I

1,435 1,019 394 2,848

GOP b/ 1,917 1,918 1,918 5,753

TOTAL 6,On 3,202 2,588 11,801

a/ Project costs are defined as anticipated sub-obligations orcommitments of funding through, e.g., PIOs, contracts, orpurchase orders.

b/ Expressed as dollar equivalents at exchange rate ofU.S. $1.00 = Rs 10.43 as of January 26, 1982

- 37 -

The A.I.D. dollar grant will finance all the foreignexchange costs of the technical assistance, training,commodities including vehicles, and evaluations. As shownin Table 9, technical assistance and commodities are thelargest budget items, comprising 60 percent and 32 percentof the dollar grant. respectively. Training constitutes4 percent of the grant.

The Mondale rupee component represents about 47 percent ofA.I.D.'s contribution to amendment activities. As shownin Table 9, Monda1e rupees will be used to cover localcosts associated with technical assistance, travel costsfor short-term participant tra.ining. locally availableresearch and other suppli.es, and construction costs.Construction and technical assistance costs comprise34 and 35 percent of the Mondale rupee grant. respectively.A.I.D. will finance with Monda1e rupees the internationaltravel costs of all participant training up to andincluding one year. Annex I contains a justificationsigned by the USAID/Pakistan Mission Director, whichwaives the requirement for the host country to cover thesecosts.

b. GOP

The GOP will provide Rs 60,000,000 or Rs 20,000,000annually during the three-year amendment period to coversalaries and allowances of local personnel, operatingexpenses, local commodities, and construction costs. TheGOP contribution constitutes about 49% of the total cost ofproject amendment activities.

3. Total Project Funding

Table 10 provides a financi.al summary of theAgricultural Research Project covering the period 1969 to1985. At the end of the project, a total of about$47.5 million will have been contributed by A.I.D. andthe GOP to support agricultural research in Pakistan;

G.Narcotics Impact Statement

With the exception of the maize maximization component.this project, which is primarily an institution-buildingand information-generating activity, does not lend itselfto the application of an opium poppy clause. The maizemaximization component will be conducted with theassistance of CIMMYT advisors in selected farmers' fields.A side letter will be sent to the GOP which states thatthis activity shall not be implemented in opium poppyproducing areas.

~3B-

TABLE 9a/

SUMMARY OF PROJECT AMENDMENT COST5-BY EXPENSE CATEGORY AND SOURCE OF FUNDING

(In $ 000)

Life of Project FundingExpense Category A. 1. 0• Do11 ar Mondale GOP S/ TOTALGrant .£/ Rupees b,9

l. Technical Assistancea. Short-Term 289 174 - 463b. Long-Tem 1,641 813 - 2,454

Sub-Total 1,930 987 - 2,917

2. Traininga. U.S. Short-Term 6 2 - 8b. Third Country Short-Term 113 200 - 313

Sub-Total 119 202 - 321

3. COnllloditiesa. Vehicles 118 - - 118b. Other 900 286 35 1,221

Sub-Total 1,018 286 35 1,339

4. Other Costsa. Construction - 959 1,103 2,062b. Evaluation 20 - - 20c. Salaries and

Operati ng Costs - - 4,615 4,615

Sub-Total 20 959 5,718 6,697

TOTAL 3,087 2,434 5,753 11,274

Contingency 113 414 - 527

GRAND TOTAL 3,200 2,848 5,753 11 ,801

!/ Project costs are defined as anticipated sub-obligations for commitments offunding through, e.g., PIOs, contracts or purchase orders •

.£/ Inflation: 10% FX salaries, 15% all other FX, 20% lC, compounded annually.

£/ Expressed as dollar equivalents at exchange rate of U.S. $1.00 = Rs 10.43as of January 26, 1982

"

TABLE 10

FINANCIAl SlJI4ARY OF THE AGRICUlTURAL RESEARCH PROJECT t 1969-1985(In $ 000)

life of Project FundingA.I.D. Dollar FAA Section 204 and GOP )otal

Expense Category Grant loan Hondale Rupees196!>- 1982- Total 1969- 1982- Total 1969- 1982- Total 1969- 1982- Total 1969- 1982- Total1981 1q85 1931 1985 1981 1985 1981 1985 1981 1985

1. Technical Assistance 1.592 1.S.W 3,522 1,447 . - 1,447 3.563 987 4.550 393 - j~.J 6.995 2.917 9.912

2. Training - 119 119 2.115 - 2.115 221 202 423 431 - 431 2,757 321 3.0&

3. COITJIIOdities - 1.018 1.018 2,270 - 2.270 288 286 574 479 35 514 3.037 1.339 4.376

4. Other Costsa. Construction - - - - - - 3.969 959 4.928 3.452 1.103 4,555 7,421 2.062 9.483b~ Salaries and

IOperating Costs - - - - - - 10.031 - 10,031 5.177 4.615 9,792 15,208 4,615 19,823c. Evalul'Jtion - 20 20 . - - - - - - - - - t - 20 20

Sub-Total Item 4. - 20 I 20 - I - - 14.000 959 14.959\ 8.629 5.718 14.347 22.629 I 6.697 29.326i-

TOTAL 1,592 3,087 4,679 5.832 - 5.832 18,072 2.434 20.SOf 9.932 5,753 15.685 35,428 1l.274 46,702

Contingency - 113 113 368 - 368 - 414 414 - - - 368 527 895

GRAND TOTAL 1,592 3.200 4.792 6.200!I

2.848 9.932 5.753 35.796\11.8016.200 - 18,072 20,920 15.685 47.597

!of Includes $606.061 or the equivalent of Rs 6.000,000 in FAA Section 204 rupees.

W\Q

- 40 -

v. CONDITIONS,COVENANTS, AND NEGOTIATING STATUS

The Government of Pakistan is fully familiar with thisproject and has sent a letter (Annex D) requesting thedollar and Mondale rupee funding to be provided for theProject Amendment. There are no further actions necessaryby the Government of Pakistan prior to signature of· theProject Agreement Amendment. A covenant will be includedin the Project Agreement Amendment which states that theGOP will use its best efforts to recruit and hire aqualified individual to fill the position of Director­General of the National Agricultural Research Centerwithin 180 days from the date of the signing of theAgreement Amendment. There are no Conditions Precedentto disbursement nor any other special conditions besidesthose contained in the original Grant Agreements for thisproject.

VI. ANN E XES

p e4eSl'?'!. NOV 81F~ ~EC$TAT' WASnDCTO AMrM~ASST ISLAMAEAD PklORITT ~663

--'PT.. UNCIAS ~TA,r 293891

AlrAC.~_.

F.O. 12065t N/!

TAGS:

SUPJrCT: PROJECT DESICN fUND ~ APAC REVlfV• 1. APAC RtVIEWED AND APPROvED TAIS PROJEC' ONOC~O~tR 1~, 19ft. If frCltED THAT APROJfCT PAflD

• WAS MORR APPROPPIATf THAN A PlAD fOR NON-PROJFCT~~SlST~Nr,. AID!W AGR~¥n TO ~Alf NECF$SARf CHANCESTN MISSTON S"~MlSSION. A~lA lUREAU WTLL PffOCt:SSrOC1Jt1F.N'fATION FOR AIJTIlOIiIZATJON IN ~ln/W ~;O "P.AToP I. TG~ '" ION TN PA( I ~ TAN CAN }\ £ ACCOM PL1 ~ Hr. D J tJ ~T ASS00 N AS CON GPf SS ION A1 APPROVAJ. RECU VI: 0 • tJ OW EViR ,

• ~TATU1(\R'f CREf;ILTST' AS PROVIDED IN Ull :.'-, SFCTTON5~(1-4); r;OUNTRT CntC~LIst AND PROJ~C' CH[CKLI5TWRfN "~ INC FS' (ifF. ~C?-~) t1U5T li'~ PRfPAREf: BY

• MISSION PRTOR TO AUTHORIZATION. PlIAS[ TRANSMITWPFN ~VAITABlt.

2. WFIlr lIFE Of FkOJECT AUTHORIZATION ~Ill U~MAIN

AT MJSStON~S SUCG~STEU .rCUk~ or DOLS \~ MILLION.~F FNVJ510N ONLY J~cnFMrNTAL rUNrl~G rACH lFAH AS

• TRF ~ISSION IS A~LE TO MOR.~ CLfAHLY DEi'lN"~ CIJRRtNT~FlDS.

• 3. APAC ~rtI[VES TnAT SOME ACTIYI'I~S, LI51ED A5

POTfN'I'IAL ftlNDING l1'n1~t WltL PHOPAhLY BE ErST• lo'PNfFl' Fl.SrWRIRF. W~: JtFAllZf THAT ~'rNAL rFCl~;JON

CANNOT Jlr. MJDE AT 'rF-IIS TJM~ Jl1I1' ('NL~'SS '!'n.:Ri: AliI:OTRfR OVI-R-RIDING CONsIDtaATIONS APAC DIRECTtDa• (A) C0MPLF.'rl{\N fIr 1'1I~ NA'T'JONAL AGRICULTURAl nr.SfAkCHCFNTFR AS ANAMFNflt'U'NT TO 'T'Hl fllf;TING PltOJf.CTi

('f) PROClJRFMFNT ACFN1' Al~TIVI'l'US '('0 'BE fUNDED PYfIeF RrtrVANT PROJECT, UNI-l~S Of MOST GfNi~AL

NA1'URfi' A"'D CLEAHLT NOT ftELATEU TO ANT' SPECU'ICPROJfC';

• (C) PRE-PROJfC1' AC'l'IVI'1'lES (rTFM tt. P. f\\) ~:"cn ASI'tlRCflASF OF VHnen's, FflHNITUIU. i~1'r. •• 'hJo' ~'llUIJE£

OU'!' OF EACH tNJHV)flUAJ. rROJ}:CT. Pln~-l'lWJEC't'

• TJ'CflNJCAt ASSIS'l'ANr.r,- POW[VER, COIlLD PI. fUNDf.u JhOMTRl PROJECT DISIGN fOND; AND

-ANNEX A.IPage 1

·1 I

Cn) Th.UNING PE CONSOl.lTlAT)'D tlND'R Til! t1'SSlON#~- I'R()rO~in' rflJFIOPMfNT ~UPPORT TtUJNINC PHOJ~CT.

... cop I f. S 0 f Ii EVI SEn p p ~ 11. L It: Dl LI Vt: R.~ D 1 0• MlSSJGN AS SOON AS AVAlLA1:IL AN1'ICII'A1'.: COMP1~'I'lON

ATf Of CIRCA 1 NOVEM~[n 1081.

• f. f'41 SST 0 N S" 0 U1.DCA 1l U' fRO T> 0 S Ii: D .A NNlJ AL 0" LI GAl' ION~cnIntJtE At-lD )~g'!'IHA'TrD FtH~A~DO'MN l'ETW!.~N LOCAL

.' ~s, ··Atn~-J'r.--C05"'J'5··;-·-1 '''1'( 82" Nn'D5 INCH f ~s r It. .'TIRA" NI'J't ~t OlltIGA'I'ION. w.~ COUt.O SUPP1EMfNT IT LATER

A~ A'PROPRIATf PL~CEMihT Of A~CV£ tL~MENTS B~COM[S

Clf.ARf.R. ~AIG

• FT_:'t691

ANNEX A.IPage 2

•

"

•-•••••..••

UNCt ASS 1F'lID

•

ISI.AMAFAIJ ~~~8~ 1

·., "tt212eZ JAN E'2FM SrCSTATE WASHDCTO AMEMFASSY ISLAMAPAD PRIORITY 5024

. P.TUNCllS STATE e~2968

AIDAe

E.O. 12lU35 N/ATAGS

~"EJECT: AUTHORIZATICN OF AGRICULTURAL RESEARCH ANtON-FIRM ~ATER ~ANAGEMENT AMENtMENTs

., RIFe:; (A) I~r.AMAFAB 15484, (E) STATt 330380

1. JPPEAU PP.OJECT COMMITTEE MET DECEMPER 16 TO Dr seussHIS~ION ~EQUr~T FOR AUTH0RITY TO APPROVE AND AUTHORIZI".MENCM~NT~ TO AGPIct.JLTt:HAL RE~EAPCJl AND ON-FARM WATERt-'ANAGHn'NT PROJ}·CT~. CO~MITTEF; AGREFB THAT f-4ISSIONArTf-lO~In.TION 0F f'ROJi:CTS WClILD E:XPfDITE OBLIGATION OFPROJECT FU~D~ AND THAT T.CHNICAL CAPJPILITY TO REVIEWPROJfCTS EXl~TS ~I7HIN MISSION. COMMITTEE THEREFORERECO~MiND~D T~AT AA/ASIA R£DILEGAT£ TO MIS~ION AUTHORITYTO A~PPOVF AND AUTFCPIZE SUEJECT ArENDrFNTS. AA/A~IA

ArC:''l''f'ED THIS JUCOMMF:NTATION ANI; APPROVEf RFDELEGATION OFAl1THOFITY ~~ Rl.ClJE'STFD U~IlER T~l PROVISICNf OF THI:RfCfN1'LY P.FVISED DFL:F.:GATION OF AtlTHOHITY NO. 133. COPTOF J.C'rION MEMORANDUM fIGNED POY AA/ASIA WILL BE FOUCHEDFCR ~lSSION INFO~MA1ICN/FILES. .

2. OUF lTND1J18TAtitI~G IS Tl'lAT PROPOSl:D AMENDMENT TOAGFI ClILTTlJ?A L RF'SEARCH PROJECT 'tI LL EYTEND PROJECT FF!ONDTEN lEARS. IF SO, UNDER REVISED DELEGATION O¥ AUTHORITY

NO. 1:~3. PAct F'T}'N~ION PEQUP~ES APFPOVAL OF THF ADMINIS­TRATOR. AND t·'H~.~IO~~ ~P.OlJl,D NOT REPEAT NOT AUTP.ORIZEAME~lDt'FNT t'N~Il }'n'r~SION I~ APpvOVED FY A/AID. {lPONREC!IPT OF CCNrI~MATION FROM MI~fl0N TH}.T TOTAL LIFE CfPROJ i CT \Ii' ILl, 1 XT J.. N1) J...! YON D TEN YF ,l RS ~ A~ JARU~ EAU \If ILLPRO~f~fRfQUf~1 fOP AFPHOVALOF PACD EXTENSION TO A/AID •.}3. PPOJECT COMMITTFE WAS CONCEPNED TEAT OlLIGATION OFp~OJFrT fOLLAR FUNPS WITE NO GUARANTEF THAT OMB WOULD·~PPl?OVE ALLOCA"ION OF PP.OJ,FCT RUPLE FUNDS COULD, IFpurrr FUND~ APr DINIfD t JfOPARD1ZE PROJECT IMPLEMENTA­TION. IID/W 1I HJo'JHFOfO; SUGGE~TS THAT MISSION PROvltr ASAPJlJ~TIFICATION f'OR }.DtITIONAL RUPEE l'UND~ FOR O~-FARM

WATF~ MANAGE~rNT PROJFCT. CARPENTER HAS PROVIDED BATAFOR Pr,PICllLTlIRPL P}SlAI1CP' PROJCT •. TO PREPARE InQUEST FORO'1J', AII>lw \\'IL1. NF1D TO :<'NO'.\' AMOlHIT OF RP'PF.FS liEQUIRED,HOW THE RDPEE~ WILL BE U~EDt ANI. THE RELATIONSPIP Of

~. PUPFF-FUNDED }CTIVITI[~ TO DOLLAR FUNDED ~CTIVITIES •. I~·

,., }'1.CE!T FOP., TH(\S~; DOLLAR Fl.lND~ E~SEN"IAJ, TO PRIVE~THJG AN

ANNEX A.2Page 1

•

p,"I'~PRUPTJON or PRCiJECT ACTIVITIES, MISSION !S NOT TOOPLICft'rF rOLL/II FPND~ I.1NTIL .AI,LOr;ATH'~1 (iF Ht'FLF. FlJNr~, ISA<:5f1P}L. PFMJ\TNING LOLLAR~ CAN r~: OFI.IGATtn 'NHEN RUPFFS

• PFC(HJ,~, P..I1~II·flPl~: F(lR (\}<LU;ATION. All)!''; \IIOI1Lf' SVGGF,2T" r. AT fl 1. L r R0J U~ 'I' S RFQ'J 1 P. I Nr, f.. R1: pn: ALL0 (' Al' ION 0 f L I GAT EPtn'FF~ AT 1'H} "liME: 1'lMF rOL1.AR~ AREOPLIGA'T'ED.

4. ft~ yOU YN01Al, NEll' ~H:Tl()N R?(1 ~: OF THF n.A AlITliORIZES

•,!,P~ r~~:qln"ta Tn lN~lVli PPE~:Je:NT PROHIl'I1'IC'N ON ASSI:;TANCFTO PP'\I~TAt~ IF' It~: I)~TEHr-1TN'F.S 11HAT IT IS IN THE NA'l'IONALIN'I'kuf':'!' ()}' ~''I!F PNTTn: ~TATFS TO DO SO. 'f('U WILL :0:NOT I ~ n .. D '~J P. tNT In; It; /I. 1VH P. NJl N;'['} AMIN A'[' I ON AHr; MP, DE ANDAS~'I~TM\CF CAN :PI', flJJ1NJ:,HEIl. HAICI':'# 29ft1

ANNEX A. ~

Page 2.

-"

••

••

•••••

•

UNCLA ~ SI FI 1"D Sl'ATE 2968

I

UNITED STAlt!i INTERNATIONAl. "F:VELOPMF:NT corl'i-'RATION AGENCY

AGr::NCY FOR INTERTIATIONAL DEVELOPMENT

WASHING ,)N DC 70');'>:1

Jilnud ry 4, 1982

ACTION MEMORANDUM FOR THE ASSISTANT ADMINIS·rRATOI~, BUREAU FOR ASIA

FROM: ASIA/PO. G. R. van Raalt~

ANNEX A..2Page 3

Problem: To grant USI\JI)/Islamilbad a r£~delegiJtion of authority to approveamendments to the Auricultural Research Project and the On-Farm HaterManagement Project.

Discussion: 1. Thl' I\<Jricllltural Rescilrcll Project: This project WilS

authori zed in 197"4to d(~veTOj)Tfic-rcs-e-arcl,calla-bfTity of the Pak is tanAgricultural Research COllncill. (PI\RC) and to support the construction anddevelopment of a National I\gricultural Ilesearcll Center (NARC). Delayswere experienced early during the implementation of the project when itbecame evident that PARe y/ould require substontial institutional strengtheningin order to manage .j ts resources ddequdtely and to ut i 1i ze donor ass i stanceeffectively. Accordingly, the project was redrsigned in 1977 to provideinputs directed to\t/Md upgrading PARe's institlilional capability.Further project setbacks were experienced in Marcil 1979, with the impositionof the Symi ngton Amenrllm~nt ilnd the resultant Clltoclck sin j~i ss i on Staffand 1ater that year Vii th the burni ng of the AllIeri can Embilssy and theevacuation of most U.S. personnel, including technical advisors contractedfor the project. Nevertheless, the project has made considerable progress.PARC is now·a functioning ory~nilation responsihle for coordinating thenational research prO~lriJllI. The ,construction of NARC is underway and thelocal contractor is ~enerally mpctinq till' t.ar<Jl~t uJtes of the revisedconstruction schedule>. Activities funded lHluer this Jlll(~lldll\cnt willfocus on supporting the c()lIlplctl~d construction of NI\I~C and upgrarlingNARC's managE~ridl and rp<,carch C<lpability. I\n lJl11endl11pnt activities arein accord with the project as redc>si<jncd. The (1IIlcndrlll~nt involves nosiynificant policy conc(~rns or iSSlles of a controversiill nature.

The project fundin<ji history rdlects tt)() vici';:;it.IHll'<, of the project.TIle original I\ID fIJnd~) con~;i(.L(~<1 of il ~,/.r) I!lilliort loan, a ~l.S IIIi11iongrant (of which initial oh1iqilt.ions totalc>ef $1)O?,OSO), and the equivalentof $7.4 million in Mondalc rllJWCs. TIll' IlJlI pr'ojecl. r'l'lk';i~Jn reducedU1C loan to $6.2 Illillion and Lhf' ~1()nda (' rIJjl(>() ~Jrant to the equivalentof ~,5.4 million. In f\.ll~ll~.t. 1919, the <Jrclfll oldi\}dtion WflS increase(! to~J62,05(); but due to the) Symir1<jtl)n Alrl(!ndlll('nt, th(~ reJlldininu portion ofthe original $1.5 <)rtlnt ~/l)S rl()ver obli~latc~d. As a r!>SlJlt of pr·ojectprou.ress and AID's inability to incrcdsP its d()l~ar assistance,the Mondale rupee grant was increase(\ in 1980 to the equivalent of $11.4

- ?ANNEX A.2Page 4

million. In sum, the amount of funds aCtually obligated equals$18.362.050, including a $6.2 million loan, a $762,050 grant, and theequivalent of $11.4 million in Mondale rupees.- Under the proposedamendment. $3.2 million of [SF grant funds will be added to the project.The amendment will also include a Mandale Rupee grant component equivalentto approximately $3 million.

The Mission possesses the technical capability to review the dlnendmentand Mission approval would expedite the authorization and obligationprocess. The Administrator delegated to the Regional AssistantAdministrators the authority to extend the life of a project providedthat the extension does not result in a total life of project of morethan ten years. Because the amendment will extend the life of theproject beyond ten years, the Administrator will be requested to approvean extension of the Project Assistance Completion Date (PACD) prior toauthorization of the amendment.

2. The On-Farm Hater ~1anagement Project: This project was proposed in FY 76with a life of project funding level of $22.5 million to develop acapability within the Government of Pakistan to deliver water managementservices to the farm level. Initially, a $7.5 million loan was authorizedto fund project activities. The remaining $15 million loan was to beauthorized in FY 78. Because of delays in project implementation,authorization of the second tranche was deferred until FY 1979. However,as a result of the impos it i on of the Symi ngton Amendment in 1979 and theresul tant phase-davin of the Pilk is tan program, thi s second tranche wasnever authorized. In addition to the loan funds, grants of $317,000 and$600,000 were provided in 1973 and 1979, respectively, to finance technicalassistance. Thus, the total amount of funds dttual1y authorized andobligated to date includes the $7.5 million loan and a $917,000 grant.

The On-Farm Management Project is recoanized as one of the most successfulprojects in the Pakistan portfolio. As a result of project activities,the provincial governlllent organizations responsible for delivering watermanagement services are in place and operating~ field teams have beentrained. and more than 600 on-farm watercourses have been improved. Theproposed project amendment will provide funds for (1) reimbursement ofwatercourse civil works eligible for financing under the existing project;(2) technical assistance to further up~lrade the Government's capabilityto deliver water management services; and (3) a pilot program designedto involve local governlnent in the delivery of water JJ1andtjem(~nt services.All of these activities fall within the scope of the original project.

The dollar portion of the proposed ilJilCnciment is $10 million. Of the $10million, $7 million will go t.ol'liJrd reimbursement of watercourse improvementand $3 million will fund project technical assistance.

- 3 -

The amendment involves no significant policy concerns or issues of d

controversial nature. As in the case of the proposed AgriculturalResearch amendment, the Mission possesses the technical capability toreview the amendment to the On-Fann Water Management project andredelegation to Mission would expedite the authorization and obligationprocess.

ANNEX A.2Page 5

Delegation of Authority No. 133, as recently revised, delegates to youthe authority to amend project authorizations if the amendment (1) doesnot result in a total life of project funding of more than $30 million;(2) does not present significant policy issues; and (3) does not requireissuance of waivers that may only be approved by the Administrator. orif such waivers are required they are approved by the Administratorprior to such authorization~ This authority may be redelegated by youto Mission Directors or other principal officers at field posts. TheAgricultural Research Amendment and the On-Fann Water managementAmendment satisfy these conditions. As noted above, in the case of theproposed Agricultural Research project, the Mission will be instructednot to authorize the amendment until the Administrator approves the PACOextension.

Delegation of authority No. 133, as recently revised, provides thatredelegation of authority to the field be made in accordance with criteriaestablished by the Bureau. The Asia Bureau has not yet developed suchcriteria, but we feel confident that the two redelegations r"equested bythe Mission in this instance will meet the criteria to be established bythe Bureau. In the interim, therefore, we recommend that you deal withthese requests on an~ hoc basis.

3. Rupee Grant Compon!?nt of Amendments: In order to avoid possible delaysin obligating the dollar components orthese amendments, the Missionproposes to obligate dollar funds prior to OMB approval for the allocationof rupee funds. The Project Committee was concerned that obligation ofproject dollar funds with no guarantee that OMB would approve an allocationof project rupee funds could. if rupee funds are denied, jeopardizeproject implementation. The Committee, therefore, recommended that nodollar funds be obligated until an allocation of rupee funds is assured;hO\(lever. the Committe"e allowed that the Mission should be able to obligateany dollar funds essential to preventing an interruption of projectactivities. The attachp.d cable reflects the COjllmittee's recommendationsin this matter and requests that the Mission provide as soon as possiblethe information needed to prepare the request to OMB for an allocation ofMonda 1e rupees.

Recommendation: That you redeleqate to USAIO/lslilrllabad t~ission Directorthe authority to anprove and authorize the amendments to the AgriculturalResearch Project and the On-Farm Hater Illanagemcnt Project, and that yousign the attached cable advising the Missioh of this actiQn.

· .. '

Attachment:Cable to Islarnablld

- ,1 -

-- ---- ---- . _.-------------

ANNEX A.2Page 6

ANNEX A.3Page 1

Discussion: One of the first activities expected to be a~proved underthe FY 1992 economic assistance program for Pakistan is a three-yearproject extension which will add 53.2 mfllion to the ongofng Agricul­tural Research Project. This project extensi on wH 1 permit comp let ionof an ongoing activity and will not involve any complex technical anal­ysis. controversial issues or major policy concerns. It is therefore ahigh priority item for early obligation. The total life-of-project willexceed ten years. however. and your approval of the PACO extension isnecessary.

This project was authorized in 1974 to develpp the research capabilityof the Pakistan Agricultural Research Counc~~ (PARC) and to support theconstruction and development of a National Agricultural R~search Center(NARC). Delays were experienced early during the impler.lentation of theproject when it became evident that PARC would require substantialinstitutional strengthening in order to manage its resources adequatelyand to utilize donor assistance effectively. Accordingly, the projectwas redesigned in 1977 to provide inputs directed toward upgradingPARC's institutional capability. Further project setbacks were experi­enced in March 1979, by the imposition of the Symington Amendment andthe resultant cutbacks in Mission staff and later that year hy theburning of the American Embassy and the eVdcuation of most U.S. person­nel. including technical advisors contracted for the project.

Nevertheless, the project has made considerable progress. From a fewuncoordinated research efforts, PARC has become a functioning organiza­tion responsible for coordinating the national research program. Up to20 crop by crop research protocols will be developed, with eight to tennow operative. Separation of NARC. the operational research arm. from

ANNEX A.3Page 2

-2-

PARC, the administrative and policy coordinating body, has served toclarify priorities and strengthen the national research program. Maizeand wheat production have been directly assisted by these researchefforts. The construction of NARC is underway and the local contractoris generally meeting the target dates of the revised construction sched­ule. Activities funded under the proposed amendment will focus onsupporting the completed construction of NARC and upgrading NARC'smanagerial and research capability.

The amendment will add $3.2 million in ESF grant funds and an excessrupee grant component equivalent to approximately $3 million. Fundsalready provided to the project include $6.2 minion in loan funds,$162,050 in grant funds, and the equivalent of $11.4 million in excessrupees.

The Project Paper Amendment is prepared and ready for approval. TheMission possesses the techni cal capability to revi ew the amendment, andMission approval will expedite the authorization and obligation process.On January 5, 1982, the AA/ASIA redelegated to the Mission Director,USAID/Pakistan, the authority to approve and authorize the amendment tothe Agricultural Research Project. This redelegation was made under theterms of Delegation of Authority No. 133 as recently revised.

Since Delegation of Authority No. 133 does not permit an AssistantAdministrator to extend projects beyond a total life of ten years, yourapproval of a PACD extension to June 30, 1985, is necessary before theMission Director can proceed with approval and authorization of theamendment. Authorization of new funds by the Mission Director rnustawait Pres;dential certification waiving legislative restrictions appli­cable to the Pakistan program. The PACO extension can be approved now,however, to facilitate authorization of the project amendment when thatcertification is obtained.

Recormnendation: That you approve.~h_e_.extensi on of the Project Assis­tance Completion Date for tne--Asfdcultural Research Project from June30, 1982, to June 3D, 1985, and that you sign t~~ att~chgd_~~ble ad­vising the Mission of this action.

Approved __~~

Disapproved ------------Date

--...:.;;.......;...-:....;:t:-T......,~...;;..--

ANNEX A.3Page 3

-3-

Cl~,pnce: ·/)I:dd. /7/f\. 'L~ A/GC :J11ullen .{, l/V Date 2; v' !)

PPC/PDPR:JEr1ks~on~Date~

Attachment

Cable to USAIO/Islamabad

ASIA/PD/SA:~~heson:fY:1/25/82:X58450

ANNEX A.4Page 1

P 0E0723Z JAN P2FM A~E~BASSY ISLAMABADTO ~FC~TATE ~AsnDC PRIORITY 0422,PT "rNCtA~ SECTION 01 OF ISLAMAPAD 00168, , .

"

ft. I DA C

F •.0: 12'065 NI A~.U.:F.rFC'!' : MONDALE RUPEE GRANT PROPOS At5 -- PAr. I ~ TAN

~rrERENCE: (A) I~LAMA:FAD 17~19 (E) I~LAMAP.AD 15484-' . " (C) STATE 330380

" .

'WMII ,J

BEGIN'SU~MARY: TRIS CABLE TRANSMITS PROPOSALS FOR THREEMONDAtE RUPEE GRANTS: AGRICULTURAL RESIAPCH. ~TRf;NGTHrNING,'WiTF.R 'MANAGEf"'ENT ACTIVITIES. AND PROJECT DESIGN FtlNf.MI~SICN FEQUEST~ EXPEDITIOUS APPROVAtS AND ALU'rATIONS OFF~~rS IN ORDER THAT RUPEE FUNtS FOR PROJECT DESIGN FUNDAND JGPICULTURAL RESEARCH,MAY BE INCLUDFD IN PROJECTAtR!E~ENTS TO PE SIGNEr LATE THIS MONTH. MISSION ALSO'Hopr~ .TO SIGN PRO~ECT AGREEMENT AMENDMENTS FOR STRF~GT9F.N­

:~G ~ATE~ MANAGEMENT ACTIVITIES AND ON-FA~M WATER MANAGE­MENT ~HCRTtY THEPEAFTEF. END SUMMARY.

l.~ 'MI~~IO~ HAS ONE NE'~ PROJECT AND T~O PROJECT AMENDMENTS\allfI~CH;!WE HOPE TO APPROVE WITHIN THE MISSION IN JANUARY.THr's:(JARE: PROJECT DESIGN FUND PROJECT, 3ql-047~; AGRI­CUL·TtT>l:AL RFSEP,RCH PROJECT AMENDMENT, 391-0296; AND ON-FAR'"·vfA'Tr?:~ANAGEMENT PROJECT AMENtMENT. 3Pl-3413. (PFR TIff'S f~N~ t~ f"'ISSI~N RAS RECUESTEr AUTHORITY FOR THE MI~SION TCIIPPPOVF ALI. TH:REEi MI~gION lIAS RECEIVEr> AfJ'rnORI'l'Y FOPT'r~Er"OR TO JI."PRon~ PROJECT DESIGN FUNr MIt IS S'fILL I!OP­ING TO RECEIVE FROM AID/W SHORTLY AUTHORITY FOR DIRECTOR':"0 APP?OVE AGRICtTLTtfRALoRESEARCH ANt' OF"'M AMENl'MENTS.)EACR OF' THE~r THREr PROJECTS/PROJECT AMnJDMErJT~ F.A~ ·J,NASSOC!ATFD MONDA~E ~UPEE GRANT CO~PONENT: IN THE f}~E OFACPICULTUP.AL RESEARCH ANt' PROJECT DESICN FtlNDTHE ASSO'CIATED~ONDftlE ~uprr~ ARE INCLPDEC AS RUPEE C0MPONlN'l'~ or THtPROJECTS' FUNDING; WITH OFWM. THE ASSOCIATED MONt~LI

p" ..... ~':'c:: A!?E NOT INCLt'DED WITHI N THE OFWf". PROJECT. ~UT WII,L·FL,,\n~ED. THP.OUGH AN AMfNCMENT. TO THE STRINCTHENIN.G 'A'ATEN~ANftGE~ENT ACTIVITIES PROJECT, ~91-0452 (A CLOSELY RrLATEDFRO~EC! THAT ~AS DE~IGNED TO HELP THE GOP'$ ON-FARM ~ATEH

~ANAG!~r~T PROGRAM). THE PURPOSE OF THIS CAELE IS 10PY.Q1;}.ST THAT AIr-/W INITI.A.TE THE PROCESS FOR AfPPOVAL OF'I'Hr.~r THREE f".Ot,!tA1E RUPEr GRA~!TS, UNDER PROVI~ICNS OFSECTION 1~4(F) OF THE AGHICULTURAL TRADE DEVELOPMENT ftHDA<:S!S~Af\'CE ACT ~Pl.480). A~C PROVIDE APr~OVAt, ANt· A!.'~OT­

M~~T OF F!_'N'!J~ BY OMR AT THE EARLIIST FOSSI ~LE DA'l'E .. THFM!~S!C~ rE~!EV!S THESE THPEF MONDALE RUPEE PROPOSALS??~~£~~ E??~~~!VE ANI APfROPRIATE USE~ OF U.S.-OWNFrnn1"n'r; At:!'! ::')'lInIH:!r pr.('(IMrHtIP~ 'n~IJJtICi'l'nN "rpIlOVAT'I­~OLLOWING IS INFORMATION ON EACH OF THE THREE PROJeCTS:

/

~: .2. A~RlcUtTURAL RESEARCH PROJECT AMENDMENT, 391-~29E

A'~:' INFORMATIOt-! ON THE PURPOSE OF TH IS PROJECT, DOLLARFUNDING, PROJECT DE~CRIPTION, REL~TIONSHIP OF PROJECT TOAID~COUNTRY S~RATEGY, AND HOST COUNTRY AND OTHER DONORSROLr~'RAS REEN PROVIDFD IN REF A (WHICH PROVIDED DATA FORCONGRESSIONAL NOTIFICATIONS).

P':', THE MONDAlE RUPEE GRANT PROPOSAL ! ~ FOR !?S. 29.7MILL'ION (J)OL~. ~.0 MILLION AT RS,. 9.9 Pi:}? nOLS. 1). THISRS'. ?9.7 MILLION WOULD SUPPL~~ENT THE DOLS. 3,200,000AnrED UNDF.R THIS AMENrMENT AND THE DOLS. e,~~l,~00 INDOLLAR FUNDING AND THE RS. 113,500,0e0 IN RUPEE FUNDINGALREADY OBLIGATED UNtEP. THIS PROJECT.

C'.; THE ADtITION,4L RS. 29.7 MILLION MONDA I.E RUPEE GRANTWILL FE USED TO FUND LOCAL SUPPORT AND INTERNATIONALTRAN~PORTATION CQ~TS OF TECHNICAL ADVISORS. EQUIP~ENT ANDOFFICE FURNITVRE FOR THE NATIONAL AGRICULTURAL RESEARCHCENTER~ AND COST! RESULTING FROM INF~ATION AND DESIGNCR}NGE~ IN CONSTRUCTION.

3. ~TRF~GTHENING ~ATEF MANAGEMENT ACTIVITIES PROJECTA~F~DMENT, 391-e452

A. THI~ PROJECT WAS ORIGINALLY DtVELOPFD TO IMPROVE THr.OVEP~ICP.T CAPACITY OF THE GOVEPNMENT OF PA~IST1.N'S FFrERALCFLL FOP. ON-FAPM tvATER MANAGEMJo~NT IN TJ!F: Ir-'pL~:MEN'J'A'II(,~1

OF TPE OF'It'M PROGRAM. FUN ns PROVI DED UNDF'R TH IS P~ CJ! C'I'ENAFLED THE FEtERAL CELL TO ADD A SOCIOLOGIST TO THETECHNICAL STAFF, CONTRACT FOR A COMPREHENSIVl AND CONTI­Ntl0t'~ MONITORHIG AND EVAI.UATION OF PROJECT ACTIVI'I'IF.S,PP.OV!~E SUPPCRT FOR RESEARCH IND nEVF.LOP~ENT ACTIVITIE~t

AND COVEP ~OMF LOCAL COSTS OF TECHNICAL ADVISORS.

P. TPY MONDALE RUPEE GRANT PROPOSAL I~ FOR FS. 9.9MILLION (rOLS. 1.0 MILLION). THIS RS. 9.9 MILLION ~OULD~f1P:P1.Fr-"E~J'!' THF RS. lf3,~eO,0"e IN RUPEE FrNDING ALP~AD)

OfLICAT1D UNDEP THE ~rrHENGTliENINC WA'l'i..R MANAGtM.:N'l' IC'rIVI­'!'!F~ PPC.rECT J t.J TEE SfPTE;M:FER 19B~ P~OJE:CT AG'QEJi:-'HJ'f.THE PROJECT' ilSSIST.P.NCl COMP1ETIO~ DAT:!' (P,e.CD) 'A'()ULr Pi

ANNEX A.4Page 2

> ,

t,,»F >j

I!'i:.-::'-; ,':- ~, ~

t::"~"Jcr:~:,;, .:""",-,",' ..JE:L'-1':~."": j "',::~I

<~.<~~~

<

UN CIA ~ SI FI ED ISLAMABAD 001€r 1/2",

,

EXTFNLED FROM FY 1985 TO 'FT' 1986 TO PARALLEL THE HEVFy.~9P6 PACD FO~ THE OFWM PROJECT.

j

C. THF RS·. 9.9 MILLION PROVIDED UNDER THIS AMENDMENTWILL ENABLE THEFEDERAt CELt .FOR OFWM TO FROADEN I T5OVERSIGHT CAPAEILITY AND ADDRESS IMPLEMENTATION NEEDS 01THE tOLS. 10 ~ILLION A~ENDMENT TO THE OlWM PROJECT. THEGRANT WILL FINANCE CONTRACTS FOR CONSTRUCTION INSPFrTIONS,tOCAL SUPPORT AND INTERNATIONAL T~ANSPORTATION COSTS OFTECHNICAL AnVISCRS. F.Y.PANSION OF THF MONITORING ANtFVAI.tTATION ACTI VITY, AND AN EXPANDED PROGRAM IN RES£APcnANt DEVELOPMENT OF TECHNICAL AND SOCIAL ISSUES RELATED TOTHE PROGRAM.

4.' PROJECT DESIGN FUND PROJECT, 391-0470

A. INFCR~ATION ON THE PURPOSE OF THIS NE~ PROJECT,DOLLAP FUNDING. PFOJECT DE~CRIPTION. RELATIONSHIP OFPPOJECT TO AID COUNTRY STRATEGY. AND HOST COUNTRY ANDO~··!::R DONORS ROl..ES HAS BEEN PROVIIED IN RtF A.

P. THY ~ONDALE RUPEE GRANT PROPOSAL IS FOR RS. 29~7

~ILLION (DOLS. 3.0 MILLION) TO SUPPLEMENT THE tOLS~ 10. ~ILtION IN DOLLAR FUNDING TO FE PROVIDED PY T~IS NEW

PROJEC'!' •. .

C. THE RS. 29.7 MILLION WOULD HELP TO FINANCE THE LO;ALPUPFE COSTS OF ACTIVITIES PLANNED UNDFP THIS PROJECT:LOCP.L1Y CONTRACTED TECHNICAL AND RELATED ASSISTANCE NIEDEDTO rEVELOP Ann DESIGN PROJECTS; LOCALLY CONTRACTEDTrCH~rrAL ASSISTANCE AN~' STunIES NEEDED TO PREPARE THEMI~SION'S DEvrLOPMENT ST~ATEGIE~ AND ASSISTANCE ACTIVITIES;AND r.s. AND OTHE~ NON-PAKISTAN! TECHNICAL ANt RILAT~n

ASSI~TANCt T~AT CAN PE PAIn FOR WITE HUPErs (E.G •• LOCAL~UPPOP.T COSTS SUCH AS IN-COUNTRY TRAVEL AND PER DIEM. ANDINTE!NATIONAL TRANSPORTATION).5. AFTER ALLCCATION EY OMF. OF MONDALE RUPEES FOR THF~F.

PROJyrTS.TH~ E~TIRE A~OUNTS WILL BE ORtIGATXn BY PPOJErTAGPil"'1i:NTS H"r',IJ::ErJ AI!) AND THE COP. 'fJ:k'Si; 'l'EjI}~}; ALLOCA-·TIO~~ ~HOULD REMAIN AVAILAfLE FOR OPLIGATION THPOUGF.~EPTrMPER 30, 1982. •.

F. ~r~srON RICOGNIZES THAT ~ANY ACTIONS ARE REQUIRELTO OPTA I ~ MONr-fl. tE GRANT ,A FPROVALS AND AI.LOTf"'ENT OF FtlNDS,~UT REOUESTS THAT AID/W EXPEDITE THIS PROCESS AS MUCH ASrOSSI'LE. lrAT ALL POSSl~tE. WE WOULn LJ~E TO SIG~.A ?ROJECT AG~EEMENT ANt A PROJECT AGREEMENT AMENDMfNT WIT~

THF G0P CN THE FROJECT DESIGN FUNt AND AGRICU~TURALP.ESE}PCH THAT CONTA IN fOTH THE DOLLAR AND MONr-ALE RtJPF~E:::Or--:PONENTS. \I'E ALSO HCf'E TO SIGN THI PROJi.CT AGREFMF:N'fAMFNr~ENT ON T~E STRBNGTHENING WATER MANAGEMENT ACTIVI­!IE~ AT THE SAME TIME THAT ~E SIGN TEE OFWH PROJICTAG~FF~rN~ A~!NrMENT. THUS. T~E MCNDALE RUP~E A~LOCATIONS

WOULI NEED TO HE MAtB THIS MONTH (I .R., J~NUARY).

7. ~FCArSE OF THE IMPCRTANCEOF' T~E PROJEC1 DESIGN FUNDTO pgOJECT ~FV~LOPMENT AND DESIGN ACTIVITIFS, MISSION

ANNEX A.4Page 3

~

i';'

l'OC

t···L

IL::~ ,:,,-;j

Iir;'.',

~::i'~.···.•~

~_.~"'"

, UNCLASSIFIED

pr~IrVF.S IT IS IN AIDI.W·S AS \\'ELL AS ""I~SICN 'S·\ INTr:ilr~TFOrt FRcr.TECT DESIGN FUND TO FE OPERATIVE ASAP.~ MISSION~OPES TO SIGN PROJECT rESIGN rUNt PROJECT AGRIFMENTSHORTLY AFTEF 15 DAT WAITING PERIOh FOR CONGRE~SIONAL~:OTrf'!CATIO~1 (nEF A) IS COt-'PLE,'l.D. AcCOnrINGLY,R!QrE~TAID/W MA~E SPECIAL EFFOFT TO EXPEDITE MONrALIRuprtAPPROVAL/A1LOT~ENT FOR THAT PROJECT.

At-TNEX A.4Page 4

A. THF ~I~SION AND THF GOP RAVE DISCUSSF.D THFSE MONDALERUPFr COMPONENTS IN THE PROCESS OF rFVELOPING OUR PRCJECT$AND THE GOP HAS CONCUFRED IN PRINCIPLE IN THEfE RUffEPROPO~ALS •

9. PLEASE ADVISE OF ANY OUEf.TIONS/COMMENTS ON THESEMON!ALE PROPOSALS. GREATLY APPRECIATE AID/W ASSI~TANCE

ON THIS MATTEP. SPIEP.SBT I

#0188

tiNCtASSIFII,D. ISLAMAP.AD 001t:a

t·_. "iiJ6'

.c.~·~Lr".~=01

O' ~~rlegZ M1' ezF~ ~ICS'A'I YASHrCTO AMF.MBASSY ISLAMABAD IMMEDIATE 712~PT ."N~l,J.S SrArE 0f3814-

AIDAC

l.r.·12065: N/ATAGS:~PFJECT:~ONDALI RUPIIS (AGRICULTURAL RESEARCH,PROJI:CT DESICN lUND, S,lllt4GTBINtNG lATER MANAGEMENT)

OM! HAS An'JSEn BY PHON I THAT RUPII ALLOCATION rORTHr~r PROJECTS HAS BEEN APPROVIn AND LEfTIR IS ~IINGTRA~~MITrrD TO AtD IND TREASURY. t~EA~URT WILLISSUE TRANSllR AUTHORIZATION UPON RICEIPT. HAIGFTII",P14

UNCLASSIlIED

ANNEX A.5

ANNEX BPage 1

PROJECT CHECKLIST

ClOSS-REFERENCES: IS COUNTRY CHECKLIST UP TO DATE? YesHAS STANDARD ITEM CHECKLIST BEENREVIEWED FOR THIS CHECKLIST? Yea

A. GENERAL CRITERIA FOR PROJECT

1. Continuin Resolution Unnumbered'FAA Secs. 634A; 653 b)

(a) Describe how authorizing andappropriations Committees ofSenate and House have been or

. will be notified concerning theproject;

(b) Is assistance within (OperationalYear Budget) country or internationalorganization allocation reported toCongress (or not more than $1 millionover that amount)?

2. FAA Sec. 611 (a) (1)

Prior to ohligation in excess of$100,000, will there be (a) engineering,financial, and o~her plans necessary toto carry out the assistance and (b) areasonably firm estimate of the cost toU.S. of the assistance?

3. FAA Sec. 611 (a) (21

If further legislative action 18required within recipient country.

. wb8t is basis for reasonable expecta­tion that such action will be completedin time to permit orderly accomplishmentof purpose of the assistance? .

4. FAA Sec. 611 (b) j. ContinuingResolution Sec. 501

If for water or water-related landresource construction. haR projectmet the standards and criteria as set

(a) CongressionalNot if ication.

(b) Yes, assistance iswithin the 1982operational yearbudget.

Yes. a detailedfinancial plan isincluded in the ProjectPaper and detailed engineeringplans have already been preparedunder the original project.

No further legis­lative action is required .

N.A.

forth in the Principles andStandards for Planning Water andRelated Land Resources. datedOCtober 25. 19731

5. FAA Sec. 611(e)

If project is capital assistance(e.g •• construction). and all U.S.assiatance for it will exceed$1 million. has MisslonDirectorcertified and Regional AssistantAdmini8trator taken into considera­tion the country's capabilityeffectively to maintain and utilizethe projec~1

6. !,AA Sec. 209

18 project susceptible of executionas part of regional or multi-lateral project? If 80 why isproject not 80 executed? Informationand conclusion whether assistancewill encourage regional developmentprograms.

1. FAA Sec. 601 (a)

Information and concluHions whetherproject will encourage effortsof the country to: <a> increase theflow of international trade; (b) fosterprivate initiative and completion; and(c) encourage development and use ofcooperatives. and credit unions. ande4vto&sand loan associations; (d) dis­courage monopoli8tic practices;(e) improve technical efficiency ofindustry. agriculture and commerce;and (f) strengthen free labor unions.

ANNEX BPage 2 '

Yes. Mission Director's 611(e)certification is included in theproject paper amendment.

Follow-on projects funded by theWorld Bank and eIDA have already'been approved.

Assistance focu8es on institutionalizingagricultural research on a nationalbasis for Pakistan and thus will not(because it is not intended to) encourageregional development programs.

(a) - (e) Yes. Project provides theagro-technical base for more efficientagricultural production which will increaseyields and number of crops grown. resultin a more perfect competitive market. andthereby improve the financial conditionof small farmers.

(f) Not applicable.

8. FAA Sec. 601 (b)

Information and conclusion onhow project will encourage U.S.private trade and investment abroadand encourage private U.S. participa­tion in foreign assistance programs(including use of private trade channelsand the services of U.S. private enter­prise).

9. FAA Sec. 612 (b), 636 (h)jContinuing Resolution Sec. 508

Describe steps taken to assure that,to the maximum extent possible. thecountry is contributing localcurrencies to meet the cost of con­tractual and other services, andforeign currencies owned by theU.S. are utilized in lieu of dollars.

to. FAA Sec. 612 (e.l).

Does the U.S. O~l excess forelKncurrency of the country and. ifso, what arrangements have beenmade for ita release?

ANNEX Bpaa,e 3

Adoption of modern agro-technology islikely to encourage joint UnitedStates - Pakistan private investmentopportunities.

This amendment is financed by ESF grantfunds. Nevertheless. the GOP, underthis 3-year amendment, will coptributeRs 20 million annually.

In addition. the equivalent of $2.9million in Mandale rupees will beprovided to finance technical assistance,training, commodities, research andother local costs.

Yes. This amendment will provide theequivalent of $2.9 million in U.S.owned Mandale rupees.

11. FAA Sec. 601 (e)

Will the project utilize competitiveselection procedures for the award­ing of contracts. except whereapplicable procurement rules allowotherwise? .

12. Continuing Resolution Sec. 522

If assistance is for the productionof any commodity for export, isthe commodity likely to be insurplus on world markets at thetime the resulting productivecapacity becomes operative. andis such assistance likely to causesubstantial injury to U.S. proceduresof the same, similar or competingcommodity?

13. FAA Sec. 525

Will the funds for this project beused to lobby for abort ion.?

B. FUNDING CRITERIA FOR PROJECT

1. ~elopment Assistance_ProjectCriteria

a. FAA Sec. 102 (b), Ill, 113,281 (a)

Extent to which activity will(a) effectively involve thepoor in development, by extending access to economy at locallevel, inc~ea8ing labor-intensiveproduction and the use of appropr~

iate technology, spreading invest­ment out from cities to small townsand rural areas. and insuring wideparticipation pf the poor in thebenefits of development on a sus-'taiued basis. using the appropriateU.S. institutions; (b) help developcooperative6. especially by technical

ANNEX BPage 4

Yes. Services of contractorsnot already in place under theon-going project will beprocured through co~petltive

solicitation.

N.A.

No

This is an ESF Arant fundedproject.

N.A.

assistance. to assist ruraland urban poor to help them­selves toward better life,and otherwise encouragedomestic private and localgovernmental institutions;(c) support the self-helpefforts of developing countries;(d) promote the participation ofwomen in the national economiesof developing countries and theimprovement of women's status;and (e) utilize and encourageregional cooperation by develop­ing countries?

b. FAA Se,c. 103, 103A. 104, 105106. 107

Is assistance being madeavailable: (including onlyapplicable paragraph whichcorresponds to source of fundsused. If more than one fundsource is used for project.include relevant paragraph foreach fund source.)

(I) (103) for agTiculture~

rural development or nutrition;if 50 (a) extent to which activityis specifically designed toincrease productivity and incomeof rural poor; l03A if for agrI­cultural research, fu1.l accountshall be taken of the needs ofsmall farmers, and extensive useof field testing to adapt basicresearch to local conditions shallbe made; (b) extent to whichassistance is used in coordinationwith programs card.ed out underSec. 104 to help improve nutdtionof the people of developingcou,ntries through Pllcouragement ofincreased production of crops withgreater nutritional value. improvement

ANNEX BPa~e 5

N.A.

N.A.

of planning, research, andeducation with respect tonutrition. particularly withreference to improvement andexpanded use of indigenouslyproduced foodstuffs; and theundertaking of pilot ordemonstration of programsexplicitly addres8ing theproblem of malnutrition ofpoor and vulnerable people;and (c) extent to whichactivity increases nationalfood security by improvingfood policies and managementand by strengthening nationalfood reserves. with particularconcern for the needs of thepoor, through measuresencouraging domesticproduction, building nationalfood reserves, expandingavailable storage facilities.reducing post harvest foodlosses. and improving fooddistribution.

(2) (104) for populationplanning under sec. )04 (bJor health under 104 (e); ifso. (i) extent to whichactivity emphasizes low-cost.integrated delivery systemsfor health. nutrition andfamily planning for thepoorest people. withparticular sttention to theneeds of mothers and youngchildren. using paramedicaland auxiliary medicalpersonnel, clinics and healthposts, commercial distributionsystems and other modes ofcommunity research.

ANNEX IPage 6

N.A

(4) (105) for education,public administration. orhuman resources development;

. if so. extent to whichactivity strengthens non­formal education. makesformal education more relevant,especially for rural families·and urban poor, or strengthens

. management capability of institu­tions enabling the poor toparticipate in development;and (il) extent to whichassistance provides advancededucation and .trainlng ofpeople in developing countriesin such disciplines as arerequired. for planning andimplementation of public andprivate development activities.

(5) (106; ISDCA of 1980. Sec.304) for energy. privatevoluntary organizations. andselected developmentactivities; if 60. extent towhich activity is: (i) (a)concerned with data collectionand analysis. the training ofskilled peraonnel. research onand development of suitable~nergy sources. and pilotprojects to test new methodsof energy production; (b)facilitative of geological andgeophysical survey work tolocate potential oil, naturalgas, and coal reserves and toencourage exploration forpotential oil. natural gaa, andcoal reserves; and (c) acooperative program in energyproduction and conservationthrough research and develop­ment and use of small scale.decentralized, renewable energysources for rural areas j.

ANNEX BPage· 7

N.A

R.A

(ii) technical cooperation anddevelopment. especially withU.S. prtvatc and voluntary orregional ao'l internationaldevelopment. organizations;(111) research into, andevaluation of. economicdevelopment process andtechniques; (iv) reconstruc­tion after natural or manmadedisaster; (v) for specialdevelopment problems. and toenable proper utilization ofearlier U.S. infrastructure.etc •• 8ssiatanca; (Vi) forprograms of urban development.especially small laborintensive enterprises marketingsystems. and financial orother institutions to helpurban poor participntate ineconomic and social development.

c. (107) is appropriate effortplaced on use of appropriatetechnology? (relatively smaller.cost-saving. labor usingtecl.nologies that are generallymost appropria~e for the small,farms. small l:msinesaea. andsmall incoLles of the poor.)

d. FAA Sec.:..}..!2-(nl.

Will the redplent country provideat least 25~ of the costs of theprogram. pro.1eet. or activity withrespect to which the assistance isto be furnished (or has the lattercost-sharing requirement beenwaived for a "reilltively leastdeveloped" country)?

ANN'EX BPage 8

N.A.

e. FAA Sec. 110 (b)

Will grant capital assistancebe disbursed for project overmore than 3 years? If so. hasjustification satisfactory to

.Congress been made. and effortsfor other financing. or is therecipient country "relativelyleast developed"?

f. FAA Sec. 281 (b)

Describe extent to which programrecognizes the' particular needs.desires. and capacities of thepeople of the country; utilizesthe country's intellectualresources to encourage institution­al development; and supports civileducation and training in skillsrequired for effective participa­tion in governmental processesessential to self-government.

g. FAA Sec. 122 (b)

Does the activity give reasonablepromise of contributing to thedevelopment of economic • .resources. or to the increaseof productive capacities andself-sustaining economic growth?

2. Development Assistance ProjectCriteria (Loans Only)

a. FAA Sec. 122 (b)

Information and conclusion oncapacity of the country torepay the loan. at 3 reasonablerate of intere~t. \

ABRil BPage 9

N.A

N.A

N.A

This is an ESF project.

N.A.

:1;J

b. FAA Sec. 620 (d)

If assistance is for anyproductive enterprise whichwill compete with U.S.enterprises. is there anagreement by the recipientcountry to prevent export tothe U. S. of more than 20%of the enterprise's annualproduction during the life ofthe .loan?

3. Project Criteria 591ely forEconomic Support Fund

a. FAA Sec. 531 (a)

Will this assistance promoteeconomic or political stability?To the extent possible. does itreflect the policy directions ofFAA Section 102?

b. FAA Sec. 531 !c>

Will assistance under thischapter be used for military.or paramilitary activities?

ANNEX BPage 10

NlA.

This project increases theproductivity of the rural poor,thereby effecting a moreequitable income distributionconducive to political andeconomic stability.

This amendment reflects thepolicy directions of FAASection 102.

No.

1£ (3) - STANDARD ItEM CHECnIST

A. Procureaent

1. FAA Sec. 602

Are there arrangements topermit u.s. small business toparticipate equitably in thefurnishing of commodities andservices financed?

2. FAA Sec. 604 (a)

Will' all procurement be fromthe u.s. except as otherwisedetermined by the President orunder delegation from him?

3. FAA Sec. 604 (d)

If the cooperating countrydiscriminates against U.S.marlne insurance companies,viII commodities be insured inthe United States against marinerlsk with a company or companiesauthorized to do a marineinsurance business in the U.S.f

4. FAA Sec. 604 ~e); ISDCA of 1980Sec. 705 (a)

If offshore procurement of agriculturalcommodity or product 19 to be financed,ia there provision against such pro­curement when the domestic price ,ofsuch commodity is les8 than parity?(Exception where commodity financedcould not reasonably procured inU.S.).

5. FAA Sec. 604 (g)

Is the geographic code for the project9411 If it ls, is the constructionand/or engineering to be procured froma firm in an advanced dev~loptng

country?

ANNEX BPage 11

Yes

Yes

N.A.

N.A.

No, the geographiccode for thia project is000 and Pakistan.

rl)

6. FAA Sec. 603

Is the shipping excluded fromcompliance with requirement insection 901 (b) of the MerchantMarine Act of 1936~ as amended.that at least 50 per centum ofthe gross tonnage of tormnoditiea(computed separately for drybulk carriers. dry cargo liners.and tankers) financedshall be transported on privatelyowned U.S.-flag commercial vesselsto the extent that such vessels areavailable at fair "and reasonablerates?

7. FAA Sec. 621

If technical assistance is financed.to the fullest extent practicablewill such assistance. goods andprofeasional snd other servicesbe furnished from private enter­prise on a contract basis? If thefacilities of other Federal agencieswill be utilized, are they particu­larly suitable. not competitive withprivate enterprise, and made a.vail­able without undue interference withdomestic programs?

8. International Air Transport.Fair Competive Practices Act 1974

If air transportation of persons orproperty is financ~d on grant basiswill provision be made that U.S.carriere will be utilized to theextent such service is available?

9. ContinuinlL-Re8olut~o~Sec. 505

If the U.s. Government is a partyto a contract for procurement. doesthe contract contain a provisionauthorizing termination of Buchcontract for the convenIence of theUnited States?

ANNEXBPage 12

No

Yes

Yes. The USDA will be utilizedbecause it is inherently themost suitable organization forgaining access to the largestpool of agricultural researchresources in the U.S., many ofthem being in the private sector.

Yes

Yes

B. Construction

1. FAA Sec. 601 (d)

If capital (e.g., construction)project, are engineering andprofessional services of U.S.firms and their affiliates tobe used to the maximum extentconsistent with the nationalinterests?

2. FAA Sec. 611 (e)

If contracts for construction are tobe financed, will they be left ona competitive basiB to maximumextent practicable?

3. FAA Sec. 620 (k)

If for construction of productiveenterprise, will aggregate valueof assistance to be furnished bythe U.S. not exceed $100 million?

C. Other Restrictions

1. FAA Sec. 122 (b)

If development loan, is interestrate at lea8t 2~ per annum duringgrace period and at least 3% perannum thereafter?

2. FAA Sec. 301 (d)

If fund is established solelyby U.S. contributions andadministered by an internationalorganization, does ComptrollerGeneral have audit rights?

3. FAA Sec. 620 (h)

Do arrangements exist to insurethat United States fqreign aid isnot used ina manner which. contrary

ANNEX BPage 13

Yes

This amendment will addmon¢y to existing contractsfor constructionwhieh werecompetitively let and executedunder the original project.

M.A.

N.A.

N.A.

Yes

to the best interests ofthe United States. promotesorassiats the foreign aidprojects or activities of theCommunist-block countries?

4. Will arrangements preclude useof financing:

a. FAA Sec. 104 (f)

To pay for performance ofabortions as a method of familyplanning or to. motivate or coercepersons to practice abortions; topay for performance of involuntarysterilization as a method of familyplanning. or to coerce or providefinancial incentive to sny person~o u~dergo sterilization?

b. FAA Sec. 620 (8)·

To compensate owners forexpropriated nationalizedproperty?

c. FAA Sec. 660

To provide training or adviceor provide any financial supportfor police. prisons. or other lawenforcement forces. except fornarcotics programs?

d. FAA Sec. 662

For CIA activities?

e. FAA Sec. 636 (i)

For purchase. sale. long-termlease. exchange or guaranty ofthe sale of motor vehiclesmanufactured outside U.S ••unless a waiver is obtained.

ANNEX BPage 14

Yes.

Yea

Yes

Yes

Yes

f. Continuing Resolution Sec. 504

To pay pensions. annuities retirementpay. or adjusted service compensationfor military personnel?

I_ Continuing Resolution Sec. 506

To pay U.N. assessments. arrearagesor dues.

h. Continuing Resolution Sec. 507

To carry out provisions of FAAsection 209 (d) (Transfer of FAAfunds to multilaeral organizationsfor lending.)

1. ContinuinAllesolut ion Sec. S09

To finance the export of nuclearequipment fuel. or technology orto train foreign nationals innuclear fields?

j. Continuing Resolution Sec. 510

To aid the efforts of the ~overnment

of such country to repress thelegitimate rights of the population ofsuch country contrary to the UniversalDeclaration of Human Rights?

k. Continuing Resolution Sec. 5i6

To be used for p~bl1ct'ty or propagandapurposEls within U.s. not authorized byCongress?

ANNEX BPage 15

Yes

Yes

Yes

Yes

Yes

Yes

ANNEX C

UIITED STATES AGEICY FOR .ITERIATIOIAL DEVElOPMEITMISSION TO PAKISTAN

Cable : UIAIDPAK

THE DIRECTOR

HEADQUARTERS OIFICE

ISLAMABAD

AGRICULTURAL RESEARCH PROJECT AMENDMENT, 391-0296

FAA SECTION 611(e) CERTIFICATION

I, Donor M. Lion, principal officer of the Agency forInternational Development in the Islamic Republic ofPakistan, having taken into account, among other things,the maintenance and utilization of projects in the IslamicRepublic of Pa~istan previously financed or assisted bythe United States, do hereby certify pursuant to Section611(e) of the Foreign Assistance Act of 1961, as amended,that in my judgement the Islamic Republic of Pakistan hasboth the financial capability and the human resourcescapability to effectively implement, utilize and maintainthe proposed Agricultural Research Project, 391-0296, asamended.

This judgement is based upon the project analysis asdetailed in the Agricultural Research Project Paper andAmendments, and is subject to the conditions imposedtherein.

l5onor M. LionDirectorUSAID/Pakistan

Date

." ';",,'_' .u.: '..; AN;JEX J)

P,lg,e 1

GOI' .!1~'l'TI~B.J~Y__~l':~I!I~~iTyOH .~SS '-~;I~_NC!:;

Nu l( 1)(~1.\1 /R:~

L~~~url"ll"lll ... S .... I',·.C~:~

1.A;~~I~.rH ( UJ I-'I:'>4Ai'\Ci. A~.D

lC'if,OMIC MtA".~,

',I ,-lJf~JM,C AI'fl\'li~ ,j,,,,~.l,r.)

I """,,,r, ..J II, . . ~llst .Tanuary.

fel~yram; I:CONOMIChit,. ECOIV No : 0:'·(,:.101SWfETARYPboDe: 22783

~ar Dr. Lion.

As part of our tv.o \{)verl:ments' aweurent on a six year $ 1.625

billion econanic assistance progr'i1Ifo'. the rJOvernroont of 'Pakistan formally

requests fran lliAID/puklstau an lIi.l:Ji tional three million two hundred

thousand dollars (:;i 3.200,()()() in Uni ted ~tates asalstance and twenty-

nine millicJl1 Stl .....m hunrlro:1 tllllW;.U"J rupees (l~. 29,700.0(0) of Mandale

RLpees to furu.l an anY'r~lJllent to tlll Aj';-ricultural Research Project (A. Ln.

Project No. :J!)l-029U).

2.A.I.n. has 1K."Cn prnvidin; assistance to Pakistan's agricultural

rooearch prOWain sine<' If)(-~!l whcn,t lnitiatoo the A(7icultural Research

Project. TIw project wa:.; l!l;siGTln, to uPI:rade the capabiIi ty of the

Pak.istan Al,'l'icul tural n.~seal'ch CmJlcU (PAIl(;) to coordinate and conduct

agriculturul r~arch. 'nle projl}"- also provided fund.'> to e<>tahlish

and equip a :lational Agr kuILuruJ lu:seard1 Centre (NARC). Despite

initial iJ~)l(m'ntation problem;. 1 ,\flC ha.:-; t.>Ct~n a!)le to estLlblish a

relatively strong 11'1;<Jtlt\lllomd Io:,.e. Il(jwe\lf~r. the eon.struct1on of the

~ has not yet /)cen oXJyd.!tcd ;\I,d lTilInngt.fl'l'nt of t.he .faei 11 ty needs to

bl~ strclltrll1f··lIt'<l. Tn midi tion. til' I'l: W':J"(' In<;lrJ'ficiflllt funds in the

qril-~nIll proj('et til IldOflllltll'Jy HIl"i> fwd furnish and e.stahl1sh ll. stroOC

resenrdl CHflull ill ly /I t tJw NIIl:J:'.

:I. ;'ubjt:cl to '.ht: ava.! luu, II : y (.f fUJ'llb. :111 addl U.orulh :i; :l.~

mlllllJll 1n [-;<;1-' t:ranl. flllld·: ,111<1 If:. :J.(J." IIIllll.'JIl in Hmdall; rlur>e<c:..<;

would be prnvhluJ OVf'/' II t!U'I:<~ ~.~,,:, period for: (3) technical assistl\llcc

to t'acilitatt~ tile Jl-'Vt·lo,l.lly·nt or ; :·:llllnr manar.urcnt capahility at Ulo

NAIr:; (b) -=:hort-tt'rnl tl:ctmic:al ;j;;:.,,;taIlI:l"} :md camndities to ulITplete

the construction of NAIr', (1:) ~ih'lll-tl'nn and lun~-tenn tedrnil~al

n.9sistance am] ('.(mTOli t!(~~ to ~ilr( IIl'th~n the r(~earch capohJl1ty at

ANNEX DPage 2

2

the NAlC; rtnd (d) research and office equirwnent am supplies to

equip am furnish the NARC.

4. The Cbvernroont of Pakistan assures the United States

Q:>ve:rnment of its full cooperation in continuing to carry out the

Agricultuml Research Project. .The manpo.ver, financial, and other

inputs requirEd of us will be providEd in an expe:litioU9 manner.

5. We look forward to a continued. conbined effort by both

our gove:rments to yield a prcrluctive and beneficial program for

the people of Pakistan.

YOtn"s ~incerelY ,

)~---­(EJAZ AHMAD NAIK)

Dr. IX>nor M. !J.on,Director,l.&ID Mission.Islamabad

~ :t ·::;·at'./':1

P'oieet T ,II. ~ ~~"".ll..: Agricultural Research 391-0296

PROJ Eel DESIGN SUlillURYLOCICI.L FRI.liIElfORK

Life of ?rOlect:F._ FY 69 I~ FY~

Tol..: u. S. F....~!Y2~OOO andDo1w p......,ed: 1_6.2 idIlfar

1'.2)

used

aredable

asessl!l811

are.1 fat"!!'ers

priorityc~

adeGl:ate

A..~lftptio,," fo< achiev,"ll ,,~tpvtO:

- Construction takes place on scheduleand within the budgetQualified participants are selectedfor trainingAdequate numbers of quaUfiedresearchers and other personnelcan be recruited to adequately staffThe Research Center and !be Councl1

'

I ~enter as evidenced ~y

bud~etary support

1

- Provinces are receptive ~o r~vingtheir research pTograzs ccordieatedat the national level

. Res~arch findings are effectivelytranslated into practice 3S evide~=ec

by increased application of newtechnologies in extension york

- Slte visits, personnel records,consultaat reports

- Quarterly project reports- Project evaluations- Special publications and reports

the Station Develcpeent and OperatiensDivision

- Extension records- Participant training records

Records of The Council's En~ineering

SectionFinancial and ad~inistrative/management

records of The Council and The ResearchCenter

_ 1 for each of the 3 crops

• 1

- 10- 190

llla.,itv4- of ~tpul.:• 1 of each

research and disseminating resultsIn wheat, maize, rice, oil crops,fodder and for4l!e, vegetables andhorticulture, dairy technology,ru~ant nutrition, and reproductivephysiology. .

- Staticn Development and Farm Opera­tions Division adequately responds tol­req~~sts for technical support byresearchers (coatinued on 0.2)

(c~ntinued on o. 2)

NARRA TIVE SU~.R'I' OBJECTIVELY '''fRIFIASLE INDICATORS ",eANS OF VERIFICATION 11IlPOIJHNT ASSUMPT'CN~

o'eg,o", 0' ~~lor COG I: Th. 'brood.. ob.eeli •• 10 1Il......r.. of Goal Achi ..._I: A..~..ptionl for oelli."i"g 9001 "''P'S:.... ;do IIli. "oi.e contribules: GOP policy encourages agri-

cultu~al production and increcreased agricultural procuction and - Increased-domestic production and - GOP financial and planning records income opportunities for thecreased incomes for small fan3ers. decreased imparLation of food - Household budget survey data f anller

~rains - Agricultural research result I

- Increased agrlcultura~ output, - Agricultural production data increasin~ly available to smaespecially by small farmers - Improved technology and othel

innovations are accepted andby small farmers

- Required agricultural inputs

i available to fan:leu at aHo!np<~.. ~

- A.. ~",ptionl fo, achieving ~'PO":- Publicaticns and reports cn wheat. riceand oil crops of The Research Center - GOP continues to assign high

- Records of s~ecializej ~abvrat0ries ~nd to The Council and The Resea~

01.1111111 :- Re-sear=h Center Co:rplex, ,arm Center,

resi=ences, and eX?eriee~~al farm con­structed, equipped, furnished and staffed

- Station Develcp2ent and ra~ OperationsDivision in place

- Trained ~ngL,eerin8 sLatf at· The COUDeil- Trained administrators and researchers at

The Research Center- ~ethodclogy for ~enetic 1~?rovement of

wheat. rice, and aaize agreed upoa andia:p le:llented

InIn

To"..h.led to e~to~liin a :~~c~i~~~~g ~entrally I

---=-coordinated ?rcgraQ of agrl~'lltural researchfer ~jor agricult4~al cc==~diti=s whicheffectively translateS ~o:icy guidelines I

~~int~ specific researc~ pr=:ects with achiev­F='"'" =a able results.

!"s:wt.:1. A.I.D.a.~ and long-tet3 tec~nical assistanceb. Support ror In-service training programsc. Short and long-term participant trainingd. Research and ~ffice equipment and

supplies and vehiclese. Local c~nstruction =aterials and local

A&E construction supervision ~nd

ccnstruction services

IllIlll_tatieoo Tarpt (T,pe and ~Iily)

See financial. commodity, technicalassistance and training plans andimpl«8entatioa schedule in theproject pa~r

A.I.D. and GOP project records andfinancial documents.

A..~mplia,," for providing i"""lI:

- A.l.D. and GOP propoHd fu.Dd.1nglev~ls are approved by theirrespective government a and dis­burseaent. are made on • timely basis

- Appropriate coosultants C3D berecruited to provide the requiredtechnical assi.tance ~ iAppropriate and relevant training ~ ~courses can be identified ~

(conti~ued on p. Z)M

(continued on p.2)

.. 10 1020-8 ~ '_1 ~l

Project Titl. & ..."""'..., ~ultural Rea8&1'ch 391-0296I __ •__.•._.

PROJ ECT DESIGN SUMMARYLOGICAL FRAMEWORK

(CONTINUED)

L Ii. 0 4 Fro!~et;

From FY fl9 to "Y---..!l1

Total U. S. FlUId'"g S 10. 9n ,000 andDate Pr.porft!:'-L1..L8l....Rs 156 •• lln 1l i,·c

Proj8cf Pu.,..e:

Olrtpom:- &eports on faraing systems for wheat. rice.

aDd oil c~ps ca-pletedSpecisl1&ed laboratories at The Researchcenter establiahedI.esearch fiDdings on wheat snd lII81ze testedtlIrough on-fara trials and utenaionactlvitieaS~ openrtlna procedures, a reliable__Iact lnforaat1oD lIystea and 80UDdn.ource allocation plaDniag being ulledby the top -._t of The Research C8!Dte1aDd the CouDc 11.....,..:

2. GOPa:PenoDal salad.. aDd aUoaDCub. Operat1Jl& apeDHac. Fac1l1ty reutal and _intenanced. Vehicle and equ~t .u.nteaance .4

repaire. CoDKructiQa coat.f. Locally available suppl1e8 and equi....

e-4iti•• .., will ""i~ IMPO" has ......ett~ ElM! of Pf'tject _ •.

The hsurch center 18 planning andt.pl~ting research in coordinationwith the reaearch carried out by theprovinces.

-The Council is planning and 1IIplement1ng nationally coordinated researchprogr... whicb are responsive to Pak­istan's priorities in agriculturalruearcb.

-Increaaed production of key agriCultuialeam.odities Vh1ch is directly attribu -able to the application of r-.earch f ndings.",iWe"~:

• 5

• 9

• 2

"''--_ r.... cr".e -' ~ti~)

A.....pli"". for odli • .,ing """",se:

- Trained participants return toPakistan tc work in agriculturalresearch

A."",,~!iot.. lOt ochiev,"ll output"

.....umption. for ,",vicli"l i ........ :

- Required toa.od1t1es are avail­able on a t1Jlely basis and fromeligible sources

:~"'zID L:'JN "".

ANNEX FPage 1

ACTION MEMORANDUM FOR THE ASSISTANT ADMINISTRATOR FOR ASIA

From: ASIA/PO - G. Reginald Van Raalte

I. PROBLEM

To obtain a source/origin waiver from A.I.D. GeographicCode 000 (U.S. only) to A.I.D. Geographic Code 935 (SpecialFree World) to permit the purchase of the following vehiclesand spare parts under the Agricultural Research Project(391-0296) as amended:

A. two right-hand drive Toyota utility vehicles;

B. four right-hand drive Toyota station wagons;

C. six right-hand drive Datsun pickup trucks; and,

D. spare parts for the vehicles listed above.

II. BACKGROUND

A. Cooperating Country

B. Geographic Code of Project

C. Importer of Commodity

D. Description of Commodity

Pakistan

000 and Pakistan

USAID/Pakistan on behalfof the Pakistan Agri­cultural Research Council,Ministry of Food, Agri­culture, and Cooperatives,GOP.

1. Two Toyota right-handdrive diesel Land Cruisers, heavyduty suspension, off-the-road utility vehicles withseating capacity for9 passengers;

2. Four Toyota right-handdrive Crown 2800 DeluxeStation Wagons, ModelMS l12RG SWKDS, 6-cylinder,2,759 cc gasoline engine,4-speed manual floor-shift transmission; and,

3. Six Datsun 2-passenger,right-hand drive, dieselpickup trucks with type

ANNEXFPage 2

SD '22 water cooled dieselengine, 4-cycle, 4-cylinder,4-speed manual transmission,2,164 cc displacements,110.8 inch wheelbase, anda 73.4 inches long, 56.9inches wide,and 15.6 incheshigh loadbed.

4. Spare parts for theabove vehicles.

E. Manufacturer of Commodity

F. Approximate Value ofCommodity

As indicated in D above.

Dollars 118,000 consistingof:

2 Toyota Land Cruisersat $11,000 each = $ 22,0004 Toyota Station Wagonsat S10,000 each = $ 40,000

6 Datsun Pickup Trucksat $6,000 each = $ 36,000

Total Vehicles = $ 98,000

G. Nature of Funding

Spare parts (approx.207. of cost ofvehicles)

GRAND TOTAL

:ESF Grant

= $ 20,000= $118,000

Vehicles required under the Agricultural Research Projectas amended must be capable of transporting personnel andequipment in rough terrain under all climatic conditions.They must be right-hand drive (driving in Pakistan is on theleft), sturdy and easy to service and maintain. Since thevehicles will be used extensively to ,travel to and betweenrural areas, access to spare parts and maintenancefacilities is a major concern. Right-hand drive is

H. Procurement Source andOrigin

I. Is the commodity soughtfrom a sole source orfrom more than one source?

III. DISCUSSION

Japan

Bids will be solicited frommultiple distributors.

ANNEX FPage 3

imperative for safety reasons to facilitate adequatevisibility, especially in passing situations where,historically, there is a high incidence of recklessdriving and an unusually high number of deaths by vehicularaccidents. The Mission has concluded that the Toyota andDatsun vehicles requested in this waiver are the onlyvehicles available which fully satisfy the needs of thisproject.

A.Toyota Land Crtiiser

The requested Toyota Land Cruiser has the nece~sary

high road clearance, long wheel base, and proven ruggedheavy duty suspension necessary for the off-the-road userequired by this project. It also has the necessarycapacity to transport up to 9 persons with luggage andfield equipment which is required for this project. Noother vehicle available at this time in Pakistan fromU.S. source or Code 941 sources has comparable capability.In addition, the Toyota Land Cruiser's engine componentsare accessible to service and, based on reports,mechanics in Pakistan are more familiar with the Toyotavehicle than that of any other manufacturer, and, therefore,have been able to better service the Toyota •.. Spare partsavailability in Pakistan for the Toyota also is generallysuperior to that of other manufacturers.

U.S. manufactured vehicles have become increasinglydifficult to service in Pakistan due to engine designand installation of emission controls and other technologicaladvancements. Frequently, special tools are required toreach essential service points and the complexity ofservicing of engines is beyond the skill levels of localmechanics who do not have sophisticated training andtools. The parts' pipeline ranges from 6 to 8 months.

Fuel efficiency for the Land Cruiser is at a quiteacceptable 20 miles per gallon. Reports from U.N. agenciesusing the Toyota Land Cruiser in Pakistan have confirmedits superior performance and comparative ease ofmaintenance. No other vehicle manufactured in the U.S.or Code 941 countries is comparably suited to the needsof this project.

B. Toyota Station Wagon

The requested Toyota right-hand drive station wagonrequired for this project has the necessary capacity totransport up to 8 adults, and the durability suitablefor its expected use on long trips to relatively remoteareas. As is the case for the Toyota Land Cruiser, partsavailability and maintenance· and repair capability are

ANNEX FPage'4

generally superior to that available for vehicles of othermanufacturers.

C. Datsun 'Pickup Trucks

The 'six Datsun pickup trucks requested for thisproject have the requisite large open carrying capacityfor handling bulk equipment required for this project.The equipment carrying capacity is greater than that ofthe Toyota model of comparable wheel base. AlthoughDatsun does not have the same repair and servicefacilities in Pakistan as Toyota, spare partsand services are reasonably available and, in any case,are far superior to that available for vehicles 0.£ allU.S. or Code 941 manufacturers.

IV. JUSTIFICATION

Section 636(i) of the Foreign Assistance Act of1961 as amended requires A.LD. to procure U.S. manufacturedvehicles but also provides for special circumstances thatmay justify waiving this requirement. The special 'circumstances which are directly applicable in this caseare the inability of U.S. manufacturers to provide aparticular type of needed vehicle (A.I.D. Handbook 1,Supplement B, Chapter 4C2d(1)(a» and the lack of adequateservice facilities and supplies of spare parts for U.S.manufactured vehicles (A.I.D. Handbook 1, Supplement B,Chapter 4C2d(1)(b». Handbook 1, Supplement B, Chapter4C2d(3) and Delegation of Authority No. 40 authorizeAssistant Administrators to waive source/origin require­ments in this instance.

v. ACTION REQUESTED

For the above reasons, it is recommended that you:

A. Determine that special circumstances exist to justifywaiving the requirement to procure U.S. manufacturedvehicles under FAA Section 636(i);

B. Waive the source/origin requirements set forth inHandbook 1, Supplement B, to permit the procurement ofthese vehicles from countries included in A.I.D. GeographicCode 935;

C. Certify by signature below that, pursuant toSection 5B4c of A.I.D. Handbook 1, Supplement B, exclusionof procurement of these project vehicles from Free World

•

ANNEX FPage 5

countries other than the Cooperating Country and countriesincluded in A.I.D. Geographic Code 941 would seriouslyimpede the attainment of U.S. foreign policy objectivesand the objectives of the foreign assistance program.

Approved _

Disapproved __

Date ---------

,

ANNEX GPage 1

DRAFT PROJECT DESCRIPTION FOR INCLUSION INPROJECT AGREEMENT AMENDMENT

This amendment to the Agricultural Research Project(No. 391-0296) adds a grant not to exceed Three MillionTWo Hundred Thousand United States (U.S.) Dollars($3,200,000) and not to exceed Twenty-Nine. Million SevenHundred Thousand Rupees (Rs 29,700.000) in Uni.ted States­Owned Pakistan Rupees to previous grants authorized insupport of the Agricultural Research Project LoanAgreement No. 391-T-156. The purpose of this amendmentis to further fund the original project purpose of"promot[ing] the advancement of technology which willincrease agricultural production" as well as fund theredesigned project purpose of " •••• establishment ofa functioning, centrally coordinated program foragricultural research for major agricultural commoditieswhich effectively translates policy guidelines intospecific research projects with achievable results."

In support of the original and ·expanded project purposes.the primary focus of this three-year amendment is tostrengthen the capability of The National AgriculturalResearch Center (hereinafter "The Research Center") tomanage its resources and to conduct agricultural research.Funding is provided for the following services andcommodities:

1. Short-term technical· assistance from an A&Econstruction management consultant and other A&E personnelas necessary to build a structure to house The Res~arch

Center.

2. Local construction materials. locoal A&E constructionsupervision. and local construction services as necessaryto build a structure to house The Research Center. Theseservices and commod~ties will be paid for in MondaleRupees.

3. Research and office equipment for The ResearchCenter.

4. Two long-term consultants to facilitate developmentof a strong management capability at The Research Center.One consultant will serve as Advisor to the Director­General of The Research Center. and the other will serveas a Station Development and Operations Engineer.

ANNEX GPage 2

5. Short and long-term technical assistance from theInternational Rice Research Institute (IRRI), theInternational Maize and Wheat Improvement Center (CIMMYT),and the United States Department of Agriculture (USDA) tostrengthen The Research Center's. research capability.

6. Short-term specialized tra.ining in wheat and maize atCIMMYT for forty-eight participants.

7. In-country seminars in weed control and farmingsystems research for twenty participants each.

It is expected that at the conclusion of this three-yearamendment, the following will have been accomplished:

1. The Research Center Complex, Farm Center, residences,and experimental farm will be constructed, equipped, andfurnished in accordance with The Research Center's Develop­ment Guide.

2. The Research Center will have the physical plant,equipment, and trained personnel, hence the capacity andcapability to conduct research in wheat, maize, pulses,fodder and forage, vegetables and horticulture, dairytechnology, ruminant nutrition, and reproductive physiology.

3. The Station Development and Farm Operations Divisionwill be organizationally in place and will have sufficientstaff and established standard operating procedures torespond to requests for technica.l support by researchers.

4. The methodology for genetic improvement of wheat,rice and maize will be agreed upon and implemented.

5. Reports on farming systems for wheat. rice, and oilcrops (rape, mustard, sunflower) will be completed.

6. Specialized laboratories at The Research Center foredible oil analysis and biochemistry, soil and wateranalysis, plant physiology, microbiology, virology,toxicology, entomology, genetics and cytogenetics, andweed control will be built, equipped, staffed, and capableof supporting provincial research.

7. Research findings on wheat and maize will have beentested through on-farm trials and extension activities.

8. Approximately 40 degree candidates and 60 short-termparticipants will have completed training and returned toPakistan to work in Pakistan's agricultural research program.

ANNEX GPage 3

9. The engineering section of The Pakistan AgriculturalResearch Council will have adequately trained staff capableof effectively supervising construction activities at TheResearch Center.

10. The Director-General, the Deputy Director-General,and the heads of functional divisions of The Research Centerwill be using efficient standard operating procedures, areliable management information system, and sound resourceallocation planning, and an effectively managed institutionwill be functioning as a result.

..

ANNEX HPage 1

AGENCY FOR INTERNATIONAL DEVELOPMENT

ADVICE OF PROGRAM CHANGE

COUNTRY:

PROJE~T TITLE:

PROJECT NUMBER:

FY 1982 CP REFERENCE:

APPROPRIATION CATEGORY:

LIFE OF PROJECT FUNDING:

INTENDED FY 82 OBLIGATION:

Pakistan

Agricultural Research

391-0296

None

Agriculture, Rural Developmentand Nutrition; EconomicSupport Funds

$ 1,592,000 Ag, RD & N Grant6,200,000 Ag, RD & N Loan3,200,000 ESF Grant

$10,992,000 Total Life ofProject Funding

(Terms of Loan: 40 years; 10-yeargrace period; 2% per annum first10 years; 3% per annum there­after)

$3,200,000 Economic Support FundsGrant

This is to advise that A. I. D. intends to obligate $3,200,000in Economic Support Funds in FY 1982 for the Pakistan Agri­cultural Research Project. No mention is made of this projectin the FY 1982 Congressional Presentation (CP) because atthe time the CP was compiled, economic assistance to Pakistanwas restricted by the provisions of Section 669 of theForeign Assistance Act (FAA).

Through this project, A.I.D. has been providing technicalassistance, training, .and commodities to support thedevelopment of a national 'agricultural research programin Pakistan. .

Project funds will not be obligated unless the Presidenttakes the actions necessary under applicable legislationto permit assistance to Pakistan.

ANNEX: Activity Data Sheet

PROGRAM: PAKISTAN ACTIVITY DATA SHEET

A!,S£X HPage 2

cp 8,·g5 1&-791

TITLE

Agricultural Research

NUMBER

GftANT IiJ LOAfIIIn I NDIOCOJITlNUlffG IiI

FUNOS Agriculture. Rural Development I;PRDflOSED;=:::::..::~~O~8L~IG!::/IIi.~T~ION:=.;t!=:lJl~.~-=rttl=s:.;0:2f..:tIt6n)=~':"7.:,="",~ ---,rr.-'"n'l""""7"T -l& Nutrition; Economic Support Funds FY.~ ESF Grant 3.200 ~rb 10.992 (6:200 L)

"'1Of'l MFiRPICE IINITIAL IESTIMATED FINAL IEStiMATED COMf'LETION DATEFY 80 CP P 113 OBl.IGATION OBLIGATION OF PAOJ£CT

• • FY 69 FY 82 FY 85

Beneficiaries: Research results will be applied to increaseasricultural productiVity in Pakistan. Ultimately, this will leadto accelerated socio--econom1c development, particularly by improv­ing the incomes and nutritional status of 8111811 farmers.

Bost Country and Other Donors: The Government of Pakistan to datehas contributed the equivalent of approximately $10 million to thisproject. Under this amendment. the Pakistan Government will continueto provide sufficient funding to adequately staff and operate theresearch center headquarters and federally administered res~arch

activities. The World Bank has agreed to provide a $30'million loanto be disbursed ,ver five years which supports the agriculturalresearch program initiated under this project. The loan funds willcomplement A.I.t 's activities by financing research programde'~lopment. graduate degree programs and the construction of aheaQquarters building at the research center. The Government ofAustralia is assisting in liv~stock research. The Canadian Inter­national Developoent Agency is contributing $10 million forreseerch in oilseed-b~sed croppinf, systems for rainfed areas.

.~or OutD!Jts

Strengthe~~d and expanded agriculturalre.aarch council

Constructed, eqUipped, and ade~uately functioningnational agricultural research center

Short-term trainingLong-t~rm tr~ining

Purpose: To establish an agricultural research program for majoragricultural ca-BOdities which effectively translates policyguidelines into specific research projects.

Background: A.I.D. has been supporting agricultural research inPakistan ltince 1969.. Under the existing project. a RationalAgricultural Research Center was to be constructed and equipped.and funds were provided for technical assistance and training inresearch and institutional developaent. As a result of Section 669of the Foreign Assist;lnce Act and events at the American Embassyin 1979. a significant 8IIlOunt of authorued grant funds was notobligated, technical assistance personnel were withdrawn, andproject implementation was disrupted.

Project Description: A.I.D. plans to add $3.2 million to theexisting project to: <a> ccmplete construction of and to furnishand eqUip the National Research Genter's headquarters nearIslamabad; (b) provide technical assistance to further strengthenthe management c:a!labllity at the Research Center; and (c) providetraining and technical assistance (prilllarily through the Inter­national Rice Researe~ Institute (IRRI) and the International Maizeand Wheat t.provesent Center (CIKHYT»iD specific research areas.SOllIe of which were initiated under tbe existing project, and all ofvh1ch are critical to Pakistan's agricultural development. Inaddition, the project will involve a U.S.-ovned excess rupeecomponent to help finance the local costs of activities planned forunder the A.endment. All activities under the Amendment areconsistent with the purpose of the OTiginal project and take intoconsideration the h.ssons learned during implementation of theoriginal project.

Relationship of Project to A.I.D. Country Strategy: A.I.D.'sstrategy focuses on agrit:ulture and rural development since thisis the area vb1ch benefits the majority of Pakistan's populationand where Pakistan's greatest economic potential lies. This projectwill suppOrt that strategy by prov1d1Dg the research testing forratsiDg agricultural productivity, and by strengthening tbeinstitutions responsible for coordinating aDd conductingagricultural reaearch iD Pakistan.

A.r.D.Financed Inputs

Technical AssistanceTrainingCOllllllOdi'tiesMiscellaneous

Life of Project($ 000)

4,9692,2343,288

501

$10,992

All years

1

160 individuals40 individuals

c ~u. s. t·""lorCj.·,.mt of I,gricultur.::· ~'7'<~} J:. ,,' i "

·-----~.7......- --. ,.'~...::;"~;- ~3.200

~

'n...............,_ 3lI. 1lID 1980

E .._..- ....... ,---.....- IPRINCIPAL CONTRACTORS OR AGENCIESE ClI!;Itie- =t==J' ..- =i ~.!L~'loi Internati.onal Rice Research Institute <IRRI)••,- 4.812 .

Internat~cnal Mai~e nnd Wheat Improvementr:eni:er (C!1~iYT)

Ett...._"....... y_ w.t 19...8...1 -...,.-~

bl!n.....-t:h-...':.~_3:),~ lS~_ 7.792

;~~_F_Y_. 1982.

ANNEX IPage 1

UIITED STATES AGENCY FOR INTERILATIOIAL DEVELOPMENTMISSION TO PAKlSTAN

CUi•• U'AIDPAK

THE DIRECTOR

HEADQUARTERS O"IC8

ISLAMABAD

USAID/PAKISTAN MISSION DIRECTOR'S WAIVER FOR A.I.D.PAYMENT OF INTERNATIONAL PARTICIPANT TRAVEL COSTS

A.I.D. Handbook 10, Chapter ISBl, provides that the costof international travel, including incidental costsen route as well as the cost of travel between theparticipant's city and the points of departure andreturn in the participant's home country, shall be paidby the host government or other sponsor unless, in thecase of Mission-funded programs, the Mission Directorhas justified and authorized full or partial waiversand "has so notified S&T/IT.

Training and institution-building are important componentsof the $1.625 billion economic assistance programnegotiated between the Governments. of the U.S. andPakistan. USAID/Pakistan's experience, however, hasbeen that the Government of Pakistan (GOP), due toserious foreign exchange and budgetary constraints, hasbeen historically unable to fund international travelcosts for short-term training programs. The consequencehas been that Pakistani participants have, on numerousoccasions, been denied worthwhile and much needed training,inhibiting the achievement of project targets.

I have carefully reviewed the advisability of requiringfull GOP funding Dor travel costs for participant trainingof one year or less and the alternative of funding suchtravel with grant and loan funds provided throughUSAID/Pakistan to the GOP. Recognizing the objectivesof many of our proJects and the fact that project successwill be enhanced by encouraging opportunities for short­term training, I have determined that it would beprejudicial to U.S. interests to require that the GOPpay the entire international participant travel costsfor training programs of one year or less.

ANNEX IPage 2

Therefore, on all Mi~sion-funded training programs up toand including one year, USAID/Pakistan shall be responsiblefor the entire cost of the round-trip economy class airticket and other necessary incidental costs en route.Where a PIO/P has been originally written for ~ programof one year or less, but, after the participant hasinitiated his or her program, the program is extended80 that it exceeds one year in total, USAID/Pakistan shallalso fund the round-trip ticket. The justification forfunding programs that are extended is to minimizeadministrative problems which are otherwise likely tooccur.

On the basis of the above justification and pursuantto Handbook 10, Chapter 15Bla, I, Donor M. Lion, principalofficer of the Agency for International Development inPakistan, do hereby waive the requirement that the hostgovernment fully fund international travel for trainingcourses of one year or less and authorize payment withUSAID/Pakistan loan and grant funds for travel costs asspecified above.

Donor M. LionDirectorUSAID/Pakistan

Date