Manual for Development Projects - Planning Commission

Manual For Development Projects
should be endorsed to the Planning and Development Division (5,copies), Cabinet Division and
Finance Division and Finance Department in the case of provincial projects.
6.42 While issuing administrative approval, the Federal Ministries/Provincial Departments should
specifically incorporate the conditions, if any, imposed by the approving body so that the Project
Director/Executing Agency should be fully aware of his responsibilities in complying with those
conditions before, during and after the implementation of the project.
Concept Clearance of Projects for Foreign Aid Negotiations
Page 13 of 17
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6.43 The foreign aid is an important element of financing our development programme. This
assistance is pledged by various donors largely to meet the foreign exchange requirements of the
projects undertaken by Government of Pakistan either through Federal PSDP or through provincial
ADPs, depending on the agency for the implementation of the project. In view of paucity of
domestic resources there should be effective utilization of foreign economic aid. It was decided
that at the preliminary stage, where only a broad outline regarding the nature and scope of the
project is known, clearance should be obtained from the Planning & Development Division even
before the preliminary discussions with the aid giving agencies take place (Annexure-XXXIV).
This is necessary to establish at the very outset whether the project fits in the priorities laid down
in the Five Year Plan and the overall economic development policies of the government. A
committee (a sort of mini CDWP) for concept clearance of foreign aided projects was set up in the
Planning & Development Division. The Concept Clearance Committee is chaired by Deputy
Chairman, Planning Commission and provincial Governments have also been given representation
in this Committee. Its composition is at Annexure-XXXV. A prescribed proforma for concept
clearance has been devised (copy enclosed at Annexure-XXXVI). Sponsoring agencies are
required to submit 50 copies of the project proposal on this format to the Aid Programming
Section of Planning & Development Division. After obtaining the recommendations of the
concerned technical section the project proposal is submitted to Concept Clearance Committee for
its approval. The approval of the Concept Clearance Committee is communicated to EAD and
sponsoring agency for aid negotiations with the donors.
6.44 Concept clearance is required for those projects only which have not been cleared by the
CDWP/ECNEC. The project should, however, fit in with the priorities laid down in the Five
Year/Perspective Plans and the overall economic development policies/ priorities of the
Government. After Concept clearance has been accorded, the donor agency generally arranges pre
appraisal/appraisal missions to discuss the project with the EAD/other agencies concerned. After
appraisal of the project, sufficient data is available with the sponsoring agency to prepare the PC-I.
The sponsoring agency are required to submit the PC-I to Planning & Development Division
within a maximum period of one month after appraisal of the project by the donor agency for
processing through the relevant approving authority. It is necessary that the decision of the CDWP
is available before formal loan negotiation are held with the donor agency, so that loan negotiation
conform to the decision of the CDWP. Likewise, the loan agreement, etc. should not be signed
before approval of the project by the competent forum or the anticipatory approval of the
Chairman, ECNEC.
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9/23/2010