Agricultural Market Infrastructure Project

2010 to 2011

£0.4 million

Asian Development Bank

Project management, agribusiness management, value chain markets, civil engineering, economic policy, finance, dairy/livestock markets, cold storage, EIA, social assessment and development, resettlement and gender

HTSPE Pakistan delivered the technical assistance (TA) necessary for the Government of Punjab to design an investment project that addresses the limitations of the existing agricultural commodity marketing infrastructure and systems which constrain agribusiness growth in Punjab.

The project was intended to provide advice for investments to upgrade and expand the agriculture marketing network and contribute to developing an environment that will enable the Government of Punjab to leverage additional investment from the private sector through public-private partnerships (PPPs).

The project fully achieved its aims and indeed went beyond the TORs to accommodate a last-minute but major change to the market selected for study. The expert team used the most recent best practice from around the world to inform and guide the market infrastructure design. The actual investment and continuation of the project is in the hands of the client authorities and the ADB.

The consultants undertook the TA in two phases.

Phase one focused largely on preparing:

• Assessment of agricultural commodity marketing infrastructure and systems covering existing market infrastructure, value added/processing, existing and future commodity growth and demand – including a survey of truck movements in and out of selected markets
• Sector strategy and policy framework
• Recommendations on priority market infrastructure interventions based on market assessment and development of investment prioritisation criteria programme framework
• Role of key private sector agents and companies and their value chain operating modalities, feasible options, including innovative approaches for private sector partnerships and financing PPPs.

Phase two involved preparation of an investment project. Phase 2 focused largely on preparing:

• Initial list of investments for prioritised core component of the agriculture marketing network, based on the selection criteria and preparation of the core sub-projects
• Feasibility level technical preparation with economic, financial, social and environmental assessments of representative core sub-projects and their impacts and analysis of the proposed project as a whole
• Detailed implementation arrangements including methodologies and modalities for sub-project selection and preparation, project management, procurement and financial management
• Project investment and financing plan
• Institutional analyses with recommendations to enhance project impact
• Due diligence for financial management
• Terms of reference for implementation consultants