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ANNUAL REPORT 2008-09 This report documents the overall performance of FATA DA during the period under review. In addition to covering the performance of the annual development programme, the report also espouses progress in other auxiliary areas.

PLANNING AND DEVELOPMENT DEPARTMENT FATA DEVELOPMENT AUTHORITY, PESHAWAR www.fatada.gov.pk

Annual Report 2008-09 i

Table of Contents

1. GOVERNOR‟S MESSAGE ................................................................................................................ 1

2. CHIEF EXECUTIVE‟S NOTE .......................................................................................................... 2-3

3. PROLOGUE.................................................................................................................................... 4-5

4. EXECUTIVE SUMMARY ................................................................................................................ 6-8

5. ANNUAL DEVELOPMENT PROGRAMME .................................................................................. 9-10

5.1 Satisfactory Performance of ADP 2008-09 ............................................................................... 11

5.2 Projects funded by FATA LDP .................................................................................................. 12

6. SMALL DAMS/POWER SECTOR ...................................................................................................... 13

6.1 Dandy Small Dam in N.W. Agency ...................................................................................... 13-15

6.2 Dargai Pal Small Dam in S.W.Agency ................................................................................. 15-18

6.3 Gandao Dam in Mohmand Agency: .......................................................................................... 18

6.4 Detail Feasibility Study, Preparation of PC-I and Design of 25 Nos Potential Dams ........... 18-20

6.5 Raghagan Small Dam (Bajaur Agency) .................................................................................... 20

6.6 Detail Design of Bara Dam in Khyber Agency .......................................................................... 20

6.7 Jabba Small Dam (Khyber Agency) .......................................................................................... 20

6.8 Machi Khel Small Dam (N.W Agency) ...................................................................................... 21

6.9 Kand Small Dam (N.W. Agency) .............................................................................................. 21

6.10 Sarobi Small Dam (N.W. Agency) ............................................................................................ 21

6.11 Parwara Small Dam (F.R.-D.I.Khan) ........................................................................................ 21

6.12 Nanoki Small Dam (Orakzai Agency) ....................................................................................... 22

6.13 Provision of Solar Energy to Villages in FATA .......................................................................... 22

6.14 Problems Encountered and Tackled: ........................................................................................ 23

6.15 Lessons Learnt:- ....................................................................................................................... 24

7. MINERALS SECTOR ...................................................................................................................... 25

7.1 Exploration and Evaluation of Precious Stones in Bajaur & Mohmand Agencies. ............... 26-27

7.2 Investigation & Evaluation of Manganese Prospects in Bajaur & Mohmand ........................ 28-29

7.3 Model Quarry for Marbles in Mohmand Agency ....................................................................... 30

7.4 Establishment of Mines Rescue/Safety/Labour Welfare Centre at Orakzai Agency ............ 30-31

7.5 Construction of 91 Kms Shingle Roads in Mineral Bearing Areas of FATA .............................. 32

7.6 Exploration and Resource Estimation of Coal in Shirani Area, FR DI Khan ........................ 33-34

7.7 Exploration and Development of Copper in N.W. Agency ................................................... 35-36

7.8 Source Rock Mapping and Exploration of Hydrocarbon Potential in FATA ......................... 37-38

7.9 Provision of Safety & Other Equipments for Scientific Coal Mining in FATA ............................ 39

7.10 Exploration and Investigation of Precious/Base Metals in SWA ............................................... 40

Annual Report 2008-09 ii

7.11 Major Incident and Strategy to Avert ........................................................................................ 40

7.12 Constraints ............................................................................................................................... 40

7.13 Lessons Learnt ......................................................................................................................... 40

8. SKILLS DEVELOPMENT SECTOR ................................................................................................ 41

8.1 FATA Youth Skills Development Programme (Institution-Based) ........................................ 41-42

8.2 FATA Youth Skills Development Programme (Through Field Internship) ............................ 42-43

8.3 Estab: of 70-Govt Women Skills Development Centres in FATA .............................................. 44

8.4 Lesson Learnt ........................................................................................................................... 45

8.5 Strategy for Tackling Problems/Conclusions ....................................................................... 45-47

9. INDUSTRIES SECTOR ................................................................................................................... 48

9.1 Activities Related to Reconstruction Opportunity Zones (ROZ) ........................................... 48-49

9.2 Enterprise Development and SME Financing ........................................................................... 49

9.3 Small Industrial Estate at Dara Adam Khel, F.R Kohat. ....................................................... 49-50

9.4 Survey/Enumerations of Industrial Database & Identifying Constraints .................................... 50

9.5 Feasibility study of Regulatory Regime for Trade, Commerce & Industry................................. 51

9.6 FATA Industrial/Engineering Research Unit/Chair ............................................................... 51-52

9.7 Establishment of Common Facility and Training Centre (CFTC) In Dara Adam Khel ............... 52

9.8 Marble City in Mohmand Agency (Non ADP Project) .......................................................... 52-53

10. SPECIAL INITIATIVES ........................................................................................................................

10.1 Township Development in FATA ......................................................................................... 54-55

10.2 Construction of FATA DA Headquarter Building .................................................................. 55-56

10.3 Study on Tourism Potential of FATA ................................................................................... 56-57

11. AUXILIARY SERVICES .......................................................................................................................

11. 1 Finance Department ................................................................................................................. 58

11.1.1 Current Account ......................................................................................................... 59-61

11.1.2 Developmental Account .............................................................................................. 62-64

11.2 Regulation, Rules and Standing Orders ................................................................................... 65

11.2.1 The FATA DA, Regulation 2006 – Amendments Therein.................................................. 65

11.2.2 The FATA-DA Rules/Standing Orders ......................................................................... 65-67

11.2.3 Performance of the Steering Committee during 2008-09 .................................................. 67

11.2.4 Performance of Board of Directors during 2008-09 ........................................................... 68

11.3 Information Technology Section .......................................................................................... 69-70

CONCLUSIONS ....................................................................................................................................... 71

Annual Report 2008-09 iii

Abbreviations

ACO Agency Coordination Officer

ACS Additional Chief Secretary

ADP Annual Development Programme

AOTR Agreement Officer‟s Technical Representative

BAK Bangash Abdul Ali Khan and Karim Khan

BOD Board of Directors

CA Consulting Associates

CBP Capacity Building Project

CFTC Common Facilitation Training Centre

DAI Development Alternatives Incorporated

DFID Department for International Development

DHSAMA Dara Hunting and Sporting Manufacturing Association

DG Director General

DIK Dera Ismail Khan

DSL Digital Subscriber Line

EU Europeon Union

FASDEC FATA Skills Development Company

FATA Federally Administered Tribal Areans

FATA DA FATA Development Authority

FATA DC FATA Development Corporation

FDP FATA Development Programme

FR Fronteir Regions

FWO Frontier Works Organization

GM General Manager

GTI Government Technical Institute

GWSDC Government Women Skills Development Centre

HITEC Heavy Industry Taxila Education City

HR Human Resource

IPSAS International Public Sector Accounting Standard

JV Joint Venture

Kms Kilometers

Annual Report 2008-09 iv

LDP Livelihood Development Programme

MOU Memorandum of Understanding

NAVTEC Nationational Vocational & Technical Education Commission

NDC National Development Consultants

NESPAK National Engineering Services Pakistan

NTB National Training Bureau

NWA North Waziristan Agency

OEC Overseas Employement Corporation

PASDEC Paksitan Stone Development Company

PCSIR Pakistan Council of Scientific and Indsutrial Research

PHSDC Pakistan Hunting and Sporting Arms Development Company

PMDC Pakistan Mineral Development Corporation

PMU Project Management Unit

PP&H Physical Planning & Housing

PSU Project Support Unit

QIZ Qualifying Industrial Zones

ROZ Reconstruction Opporunity Zone

SAFRON State and Frontier Regions

SIE Small Industrial Estate

S.W.A South Waziristan Agency

SME Small and Medium Enterprise

SMEDA Small and Medium Enterprise Development Authority

TESCO Tribal Electricity Supply Company

TEVTA Technical Education and Vocational Training Authroity

TMA Town Management Agency

TNA Trainings Needs Assesment

UET University of Engineering & Technology

USAID United States Agency for International Development

W&S Work and Services

WAPDA Water and Power Development Authority

Annual Report 2008-09 1

1. GOVERNOR‟S MESSAGE

Federally Administered Tribal Areas Development Authority is entrusted with a daunting

and a dynamic task to conceive and plan socio-economic development projects for prosperity and

well being of the tribes; exploit the natural wealth especially the minerals in a scientific and

beneficial way and work for ensuring best and result oriented utilization of both the manpower and

materials in the area.

With these objectives in mind, the future course of action has been clearly drawn under a

well thought-out, farsighted and a pragmatic approach. Today, when this organization has

completed two years of its existence, its achievements in line with the given tasks are of great

encouragement and satisfaction. In fact mainstreaming of FATA, keeping in view its socio-

economic development needs with special focus on construction of infrastructure facilities and

creation of institutional framework has always remained a cherished desire of the government.

Alhamdulillah, after going through the Second Annual Report of this organization, one

draws the conclusion that it is headed in the right direction despite many hardships of temporary

nature and its achievements are quite visible. The credit definitely goes to its leadership and staff,

who are capable and quite enthusiastic towards fulfillment of their responsibilities and the given

goals- Since community and private sector involvement in materialization of projects is one of the

major tasks of this organization, therefore, acknowledgement of its achievements by the respective

stakeholders would have to be the measure of real success.

Taking advantage of the opportunity, I congratulate all the stake holders especially the staff

of FATA DA and wish them every success in future as well. Let me also add that it is just the

beginning and they still have a long way to go. I pray and hope to see FATA developing rapidly.

Owais Ahmed Ghani


2. CHIEF EXECUTIVE‟S NOTE

The economic sector assigned to the FATA DA was previously managed by the FATA

Secretariat whose major emphasis always centered around undertaking development initiatives within

social sector i.e. building communication network, creating more educational and additional health

facilities etc. The reason for this thrust was understandable. This was not only necessary to narrow

down the developmental lag but such activities were always favored having tremendous local public

demand. This however, resulted in disproportionate public sector development investment leading to

emaciation of economic sector which is very vital for prosperity. A paradigm shift became visibly

essential to revitalize the economic sector so as to create multiple effects leading to sustainable

development. This shift was also essential from another angle. It was strongly realized at the policy

level that until the natural endowment of FATA is harnessed and the innate potential fully utilized the

social sector development would remain deceptive and unreal. This imperative in view, a need was

felt to create a specialized professional Agency to now focus the economic sector singularly. Thus

through a Presidential Regulation, FATA DA was created in September 2006. Since its inception, the

Authority never lost sight of its objectives. Realizing the magnitude of the task the activities are

planned in a manner so as not to repeating the pitfalls of the defunct FATA DC.

There are basically five principles which serve as guiding light for this institution. They are;

1. Associate with existing public and private sector institutions without expanding itself so as to save on operating expense and obviate chances of mismanagement

2. Promote private sector and act as facilitator and catalyst rather than being involved in commercial concerns

3. Build local capacity and abilities to perform

4. Promote softer image of FATA and build it as a new hub of economic activity

5. Broach new and unconventional areas for investment

Keeping the above in view, the following strategy has been framed and currently implemented:

Develop human capital without waiting for the restoration of technical and vocational

institutions within FATA. Projects are, therefore, designed to provide skills to the Fata

youths through public and private institutions elsewhere in the country.

Develop water sector so as to scale up agriculture and recharge ground water. This

would not only generate more jobs, it would lead to more cash income. This in view

a massive activity has been launched to carry out feasibilities and design as many

small and medium dams as possible together with construction of two small dams

Uncover more minerals and mechanize the mining. Broadly two prong strategy is

currently underway: - a) Quantify each mineral, establish its grade and quality


and b) then offer it for private sector investment and promote use of modern

technology to reduce waste. Therefore projects like modern Quarrying and different

exploratory studies have been launched.

Undertake industrial development based on locally available raw material. Project of

Marble City has been launched.

Target Trade & Commerce sector through designing regulatory regimes so as to

trigger market competition.

Pleased by the initial successes of this institution, the Governor NWFP desired that FATA DA

should also undertake development of townships in different tribal agencies so as to promote a

culture of modern living. Together with this, a study for the tourism development is nearing completion

based on which different promotional projects would be designed.

No doubt the task is very daunting but vision is there and the goalposts are clear, the speed is

medium but it is steady and the ground realities very tough but perseverance is there. The targets and

objectives are not unachievable. We firmly believe that the existing trouble time would not last

indefinitely. FATA DA has already positioned itself to use every possible niche in time to serve the

people of FATA and contribute to the mission of integrating the people of FATA into the national

mainstream.

Attaullah Khan


3. PROLOGUE

The ability of an organization to perform and produce results is influenced by a horde of

factors. Any objective analysis to ascertain whether an organization has delivered would be

worthwhile only if it takes a holistic approach and see how far the organization got an enabling

environment. Absence of this does not mean inadequate financial and human resources alone, but it

also includes absence of a congenial atmosphere to reach out to the target area and /or population

and limitations on operation for security concerns. Each one of these elements is essential but it

would not be wrong to say that development and public peace go hand in hand. In the disturbed areas

the first priority always remains to restore peace and then to do other interventions.

FATA Development Authority (FATA DA) appeared on the development scene during

different times. Militancy and security agencies‟ successive operations to flush out trouble makers

impeded free access to its target area most of the time. The situation aggravated steadily rendering

over 50% area in FATA literally out of bounds for the development agencies. In areas where there

was relative peace the situation there was inconsistent in terms of either routes leading to these areas

were insecure or there were sudden outbursts of sporadic violence. The recently published booklet by

FATA Secretariat has succinctly described the situation in the following way:

To fathom the gravity of the present situation in FATA, it would be important to

distinguish between law and order, insurgency and conflict. Law and order is mainly

related to actions taken against anti-social elements to create enabling environment for

political, economic and social development in a specific area. The intent of the anti-social

element is not to create alternate governing authority or control of certain territory rather

to express themselves for resolutions of their specific demand. Conversely, insurgency –

being a protracted political military- activity – is a contest by an organized group with the

government for support of people and control over resources and territory. Given the

regional and international dimensions of the ongoing insurgency in FATA, it has assumed

the status of a conflict.1

Another aspect which needs to be kept in mind while reviewing the performance of FATA DA

is the nature of its mandate. Almost every developmental intervention of this Organization has a set

of essential pre execution activities. For example, a dam would only mature for construction once its

feasibility and design is completed; an activity that requires extensive field work which is quite

impossible without physically being on the site frequently. Moreover, the usually huge financial and

physical size of dam and its construction complications demand presence of a sizeable team of

supervision engineers and construction workforce on the spot which in insecure times is a big

challenge. Similarly, the quantification and grade authentication of any mineral is impossible without

tedious geological spot investigations. Thus without uninterrupted access to the target locations it is

impossible for any development agency including FATA DA to take up any meaningful development

1 Cost of Conflict in FATA page 1 by Planning and Development Department FATA Secretariat Peshawar-

Pakistan


activity. Against this backdrop, however, was the push of the government and high expectations of the

tribal people. FATA DA was expected to outpace and contribute towards the government effort of

rapid development on one hand while on the other hand people of FATA wanted FATA DA to begin

field operations.

Without waiting for the situation to normalize, FATA DA chalked out comprehensive

intervention plan. There were three essential components of this plan, namely: -

Immediately launch projects that are doable without being affected by the internal turmoil of FATA. The skills development and vocational training for the youths of FATA was considered a safe intervention.

Complete the ongoing portfolio of projects transferred by the FATA Secretariat.

Conduct studies and carry out feasibilities targeting safer areas initially and based on results design schemes in various sectors.

The planning remained fairly successful. The study of the ADP for the year under review

would show that the entire financial allocation was liquidated. The vocational development

intervention produced encouraging results and it became a popular activity. Moreover massive

package of feasibilities of small dams was launched in addition to outsourcing a number of studies in

other sectors. Work on two projects was also initiated in southern FATA.

Although FATA DA is now fully functional and is poised to go full blast but indicators are that

the situation to become fully normalizes and the dust to settle would take quite some time. The law

and order improvement would continue to capture the attention of the government and the

development would continue to occupy backseat.


4. EXECUTIVE SUMMARY

FATA Development Authority received a pledge for Rs.846 millions from FATA Secretariat as

ADP allocation for the year under review against which an amount of Rs.423 millions was actually

released, thus registering a shortfall of 50%. The reduction in release was due to financial constraints

of the Federal Government. The entire amount so released was spent. By comparison this release

was 41% less than the allocation of the preceding year (2007-08). In view of precarious security

situation in FATA and drastic reduction in funding, a strategy was adopted which had the following

three dominant characteristics;

1. Conduct regular appraisals and carry out necessary pruning and realignment in the

ADP

2. Concentrate on peaceful areas within the FATA and re-appropriate funds allocating

maximum resources to projects which are moving on fast track.

3. Conceive and design projects having potential to attract funding by national

development institutions as well as donor organizations and thus carve out an

additional perennial channel of investment.

A glance at the development portfolio would present a unique mix of development activities.

This blend is visible not only in the diversity of projects; it is also discernable in the geographical

spread that represents the entire stretch of FATA from north down to the southern region. 20 new

projects were added to this portfolio in addition to 26 ongoing schemes carried over from the previous

year. Similarly, the various fora of the Authority approved 13 schemes and 10 sub-projects and

dropped one scheme on technical ground. This is an appreciable performance.

Small Dams and Power Sector received the lion‟s share by spending Rs.300.837 millions.

Out of a total 13 projects in this sector, Dargai Pal Small Dam in South Waziristan topped the list by

consuming Rs.152.165 millions alone followed by Dandy Small Dam in North Waziristan absorbing

another Rs. 136.101 millions. This was due to relative peaceful environment in the Waziristan region

during the period under review. However the feasibilities and design studies for Small Dams and the

feasibility study of use of Solar Energy received a setback due to inclement law and order situation in

project area. The non completion of those studies resulted in non release of funds to several dams

projects. Similarly the project for Provision of Solar Energy to Villages in FATA could not be approved

due to non completion of the Study, thus no funding could be provided to this unique project. Credit

goes however to this institution for conceiving Bara Dam project. This mega project costing over 20

billion PKR was picked up by WAPDA for construction out of its resources. Similarly Gandao Drinking

Water Supply Dam project in Mohmand Agency costing PKR 200 millions was transferred on their

request to the Upper FATA LDP, a subsidiary of the USAID Livelihood Development Project operating

in northern FATA.

Mineral Sector activities suffered the worst delays due to law and order situation and

management issues. It could absorb only Rs. 52.893 million during the entire year against an initial


projection of Rs.200 millions. The Copper project near Miranshah in North Waziristan became target

of militants at a critical juncture when the contractor was fully mobilized and poised to conduct drilling

at the site; an activity which would have determined the future of the project. Similarly the Manganese

and Precious Stones projects in Mohmand and Bajaur failed to make any substantial headway due to

travel restrictions imposed on already deficient project staff most part of the year. The Sherani Coal

project at FR DI Khan was yet to break any ground despite relative peace in the area. Admittedly the

infrastructure projects outsourced to the W&S department as deposit work continued with poor

ownership syndrome and remained beset with a variety of managerial and operational issues. While

the precious base and metal project was yet to see the daylight. The Model Quarry project was found

moving at a snail‟s pace. The only project which could utilize its entire allocation and was completed

in time was the “Provision of Safety and other Equipments for Scientific Coal Mining”, a project which

involved only one time procurement. Similarly another project „‟Source Rock Mapping & Exploration of

Hydrocarbon Potential in FATA‟‟ was also found on track. The sector‟s overall performance left much

to be desired necessitating a critical reappraisal.

Skills Development Sector which constitutes technical education and vocational training could

utilize only Rs. 59.877 millions against initial projections of Rs. 124 millions which is 48%. Of the five

projects in the Sector, Fata Youths Skills Development program (Institution Based) outperformed by

overshooting its designed targets and consumed Rs. 28.820 millions. Although its impact is yet to be

judged, the project evinced a lot of interest of FATA youths and has already been replicated by the

USAID sponsor projects. Therefore, it would be revised to enhance its scope and intake with an inbuilt

mechanism of regular impact assessment. The internship project remained dormant without making

any visible headway. Although the WSDC project showed some signs of recovery, visible

improvement might remain elusive till each of the WSDC is taken as a separate unit and issues

hampering its smooth progress are tackled. The concept of FASDEC is yet to see the light of the day

for want of completion of the study while the improvement projects of GTIs finally walked into the

sunset and was dropped.

The Industry Sector by and large remained stagnant for a variety of reasons. None of the five

projects could register any significant progress. For example, the fundamental concepts underlying

three projects i.e. FATA Industrial/Engineering Research Unit/Chair, Feasibility, Design and

Establishment of Common Facilitation & Training Centre (CFTC) and Feasibility, Design and

Establishment of Coal Fired Power Generation Unit underwent a number of drastic changes. This

process of refinement consumed abnormally long time. Similarly the SIE Darra project did not move at

all for precarious law and order situation in FR Kohat while the ROZ project was deferred for approval

of the ROZ law by the US Congress. All this resulted in a negligible expenditure of Rs. 0.076 millions

against planned projection of Rs. 80 millions.

The Research and Development Sector could liquidate only Rs.9.045 millions against

planned expenditures of Rs.55 millions. This component mainly consists of two categories of sub

projects i.e. projects which cater for meeting the human resource requirements only so as to bolster

the performance of the department, like Creation of Project Support unit for Small Dam Section. Such

sub projects would continue as long as permanent solutions are not found out to settle the HR needs

of such departments. The other category of such sub projects cater for some preliminary studies


based on which other mega projects would be designed, like Study on Tourism Potential of FATA.

Unfortunately projects under this category could not be completed in time. There were two major

reasons contributing to the inordinate delays. One; travel restrictions on the consultant‟s teams to

carry out field research and collect data and second, unfamiliarity of the consulting firm with the FATA

environments. Such projects are extended quite often to allow more time to consulting firms to

complete the assignment which naturally would delay the design of the mega project dependent on

such reports. Although they have no clear relation with the R&D but for the sake of convenience and

reference, three other projects were also clubbed under this component. Amongst them, block

provision is traditionally kept to accommodate any directive of the Governor in a given financial year.

No utilization was made since there was no directive during the reporting period. Similarly PSU for

Road Construction was meant to backstop the activities of infrastructure projects being implemented

by the W&S department. The project of Media Campaign was conceived to provide media projection

to the government development initiatives in FATA and frustrate the malicious campaign of the

militants who are out to defame the government. This is an important initiative which is likely to take

off soon as all the preliminary activities have already been completed.

The component of Special Initiatives consists of such projects which, though not part of

original mandate of the FATA DA but was added to it over a period of time on the directives of the

Governor. Each of these projects had a background and some significance in relation to objective of

mainstreaming FATA. For example, FATA DA took quite long in designing the SME project with the

idea to introduce a culture of formal lending in FATA. But it failed to garner any support either from the

Federal Government or the Donors. The project might eventually be dropped. Similarly the revival of

Khyber Steam Safari was meant to re-establish the symbolic presence of the government in FATA.

Despite hectic efforts, no donor could be convinced to fund the rehabilitation of the track and

reconstruct the bridge washed away by the flash floods. The project remained in limbo and might as

well be dropped. The PP&H sub component consist of two projects i.e. feasibility and design of

Townships which would mature on completion of pre-feasibility study that was nearing completion,

while the project of Construction of FATA DA HQ Building was originally assigned to the W&S but

later on withdrawn for departmental execution. All preliminary formalities were in advance stage and

the project was ready for a launch by the end of the year under review.

ANNUAL DEVELOPMENT PROGRAMME


5. ANNUAL DEVELOPMENT PROGRAMME

The size of the ADP 2008-09 was Rs. 846 million out of which Rs. 566 million (67%) were

allocated to the 26 ongoing schemes and Rs. 280 million (33%) to the 20 new schemes. Against the

allocated amount, Rs. 423.00 million were released to FATA DA which were fully utilized. Sector-wise

financial utilization is as under: -

(Rs. in Million)

S.No Name of Sector Allocations Releases Expenditure

1 Small Dams/Power 356.000 300.837 300.837

2 Minerals 200.000 52.893 52.893

3 Skills Development 124.000 59.877 59.877

4 Industries 80.000 0.076 0.076

5 Research & Development 55.000 9.045 9.045

6 SPECIAL INITIATIVES

i Physical Planning & Housing 29.000 0.272 0.272

ii Tourism Development 1.000 - -

iii SME Financing 1.000 - -

846.000 423.000 423.000TOTAL

0

100

200

300

400

500

600

700

800

900

846

423 423

FINANCIAL UTILIZATION

Allocations

Releases

Expenditure


During the year, physical work was carried out under various projects. Details of these works

are given in the Sectoral Chapter of this report.

Position of schemes in ADP 2008-09 remained as under:

i. Total schemes 46 Nos

Ongoing 26 ″

New 20 ″

ii. Total unapproved schemes in ADP 28 ″

iii. Approved during the year 13 ″

iv. Remained unapproved 14 ″

v. Dropped 1 ″

0

50

100

150

200

250

300

350

400

450

Small Dams/Power

Minerals Skills Development

Industries Research & Development

Special Initiatives

356

200

124

8055

31

300.837

52.893 59.877

0.076 9.045 0.272

SECTOR WISE FINANCIAL UTILIZATION

Allocations

Releases

Expenditure


5.1 Satisfactory Performance of ADP 2008-09

Despite unfavorable situation in FATA, work on various projects especially small dams in

N.W/S.W Agencies, was carried out smoothly. During the course of implementation of projects, a

number of issues/disputes cropped up but these were amicably resolved and the work was not

affected. Governor NWFP, on many occasions, appreciated the efforts of FATA DA for satisfactory

works despite the disturbed environment. Appreciations/remarks of Governor are recorded under the

relevant projects in the Sectoral Chapter of the report.

In a detailed presentation to Governor on ADP 2008-09 held on 21-08-2009, he appreciated

and expressed his satisfaction over the performance of FATA DA on the successful implementation of

development projects during the year.


5.2 Projects funded by FATA LDP

After a series of meetings with the management of USAID sponsored programmes, the

following projects were decided to be funded by FATA LDP: -

S.No Name of Scheme Estimated Cost

(Rs. in million)

Upper FATA LDP (North)

i. Gandao Dam, Mohmand Agency. 197.00

ii. Construction of Motto Shah dam in Mohmand Agency. 400.00

iii. Construction of Zao Dam, Khyber Agency. 200.00

iv. Construction of Wuch Tangi dam, Khyber Agency. 350.00

v. Widening & black topping of 22 Km main Barang road, from Km No.

41.3-63.3, Bajaur Agency.

355.00

vi. Const. of 8 Kms shingle road from Bazawano Shah to Tatareen

Skhaoba mines, Mohmand Agency.

80.00

vii. Establishment of Skills Development Cell. 10.00

viii. Field Internship program for 6 months for 500 youth trained by FATA

DA.

30.00

ix. Promotion of footwear and leather Sector (study). 8.00

Total 1495.00

FDP LD (South)

i. Construction of Nanoki dam Orakzai agency. 300.00

ii. Construction of Parwara dam FR D.I Khan. 350.00

iii. Improvement of 08 Km road from Lower Dauli to Chapper Mishti in

Orakzai Agency.

80.00

iv. Const. of shingle road from Darwazgai to Tapo Khawar mineral

bearing area (03 Km), Orakzai Agency.

30.00

v. Field Internship Programme for 6 months for 500 FATA youth trained

by FATA DA

30.00

vi. Establishment of Skills Development Cell. 10.00

vii. Promotion of Footwear and leather sector (Study). 8.00

Total 808.00

Grand Total 2303.00

The above projects are at different stages of implementation by FATA LDP.

SMALL DAMS/POWER SECTOR


6. SMALL DAMS/POWER SECTOR

Federally Administered Tribal Areas (FATA) mostly consists of mountains, inter-mountain

valleys, piedmonts, and plains. Having a population of 3.138 million, FATA has only 0.193 million

acres of irrigated land and thus there is a population pressure of 16 persons per acre as compare to

the national average of 2.5 persons per acre.

In the past as well the Government was assigning importance to the development works in

water sector but such works were limited only to the improvement of existing small irrigation system

and investigation/development of ground water at feasible sites.

It is imperative to investigate new avenues for enhancement of agriculture which is the main

occupation of tribals. Water being the vital component for agriculture development, the Government,

therefore, has a plan to construct Small Dams to store the flood water and utilize it beneficially. This

would also control soil erosion and inundation of fertile agriculture land by floods in the local streams

resulting also in the ground water recharge.

It is estimated that by construction of small dams at suitable locations and through better

management of available water resources, an additional area of about 0.443 million acres can be

irrigated easily. A large number of small dam projects are also found feasible in FATA, which can

benefit both FATA and NWFP. The recent long spell of drought has further necessitated better

management of limited water resources. To achieve this goal, FATA DA is moving systematically by

carrying out feasibility studies, detailed designs and construction of various dam projects throughout

FATA.

SALIENT FEATURES OF WATER SECTOR ACTIVITIES IN 2008-09:

6.1 Dandy Small Dam in N.W. Agency

Approved Cost: Rs. 490.840 million

Date of commencement: November 2008

Date of completion: June 2011

Expenditure during 2008-09: Rs. 136.101 million

Cumulative expdr: up to June 2009: Rs. 168.830 million

Physical achievement: 25%

Height of dam: 101 feet

Crest length: 1766 feet

Command area: 2000 acres

Storage capacity 4820 acre feet


Physical Progress of Dandy dam

0

10

20

30

40

50

60

Main Dam Spill Way Intake & Outlet works

Irrigation network

Other items

3336

60

0 0

39

8

27

0 0

Pe

rce

nta

ge P

rogr

ess

Target Achievement

0

10

20

30

40

50

60

70

80

90

100

No

v-0

8

Dec

-08

Jan

-09

Feb

-09

Mar

-09

Ap

r-0

9

May

-09

Jun

-09

Jul-

09

Au

g-0

9

Sep

-09

Oct

-09

No

v-0

9

Dec

-09

Jan

-10

Feb

-10

Mar

-10

Ap

r-1

0

May

-10

Jun

-10

Jul-

10

Au

g-1

0

Sep

-10

Oct

-10

No

v-1

0

Pe

rce

nta

ge p

rogr

ess

Target

Achievement


Work on Embankment of Dandy dam is in progress

Construction work is in progress despite adverse law and order situation in the project area.

NESPAK is providing supervisory consultancy in addition to the supervision of the construction being

done by field engineering staff of FATA DA.

Local labours (skilled and unskilled) are working on the machinery deployed for construction

of the dam. The locals working on the projects have gained sufficient expertise in the related fields of

construction activities. The command area is capable of growing all types of vegetable, grains &

orchards. On construction of dam, agricultural activities and livestock sectors will get a boost. In

addition, other benefits like fisheries, mitigation of flood hazards, and control of soil erosion and re-

charge of the ground water in the downstream area of the dams will also accrue.

6.2 Dargai Pal Small Dam in S.W.Agency


Date of commencement: April 2008

Date of completion: April 2010




Height of dam: 84 feet


Command area: 688 acres

Storage capacity 4078 acre feet


Physical Progress of Dargai Pal small dam

DARGAI PAL DAM, SW AGENCY

0

10

20

30

40

50

60

70

80

90

100

Saddle Dyke

Intake Structure

Main Dam

Embankment

Spill Way Irrigation System

100 100

65

50

30

89

55

89

30

0

Per

cent

age

Pro

gres

s

Target

Achievement

0

10

20

30

40

50

60

70

80

90

100

Ap

r-0

8

May

-08

Jun

-08

Jul-

08

Au

g-0

8

Sep

-08

Oct

-08

No

v-0

8

Dec

-08

Jan

-09

Feb

-09

Mar

-09

Ap

r-0

9

May

-09

Jun

-09

Jul-

09

Au

g-0

9

Sep

-09

Oct

-09

No

v-0

9

Dec

-09

Jan

-10

Feb

-10

Mar

-10

Ap

r-1

0

Pe

rce

nta

ge P

rogr

ess

Target

Achievement


Excess water escapes through a temporary cut in spillway

Work on Main Embankment Dargai Pal dam is in progress

Construction work is in progress despite critical law and order situation in the project area.

Progress and quality of work is satisfactory. Local labours (skilled and unskilled) are working on


machinery deployed for construction of the Dam. The local tribesmen have gained sufficient skills as

Operators, Lab Assistants, mechanics, masons and drivers.

About 300 families will be benefited due to irrigation of the command land owned by them.

The downstream population residing on the banks of Dargai Pal Nullah will be protected from frequent

floods in the Nullah beside gulley erosion of cultivated lands on both banks of the Nullah. Fish farming

culture in the area is also likely to develop.

6.3 Gandao Dam in Mohmand Agency:




Height of dam: 105 feet.


Storage capacity 810 AF

This is a drinking water supply project. Detailed design has been finalized. Project

documents including design, tender documents & construction drawings have been handed over to

LDP who will execute the project.

The dam site is located across Gandao Khwar at a distance of 3 Kms towards south of

Agency Headquarter Ghalanai. The headquarter town is facing acute shortages of drinking water,

therefore, the growing requirements of drinking water will be met by harnessing the surface water

potential of Gandao Khwar by construction of this dam. The stored water in the reservoir will be

supplied for domestic use. The dam will serve a population of 88168.

6.4 Detail Feasibility Study, Preparation of PC-I and Design of 25 Nos Potential Dams

Approved cost: Rs. 188.692 million

Dated of commencement: May, 2008

Date of completion: June, 2011




FATA-DA has taken up feasibility studies, detail design of 25 Nos. small dams throughout FATA and adjoining FRs. Under this project, four Packages consist of Twenty-one (21) dams out of 25 dams have already been awarded to various Consultants, as per below details:

PACKAGE NAME OF DAM AGENCIES/FR CONSULTANCY

AWARDED TO

Package-I

Churak dam Bajaur

BAK consulting Engineers

& AGES

Nawagai dam Bajaur

Moto Shah dam Mohmand

HassanKhel dam F.R Peshawar

Jabba dam Jamrud Khyber

Zao dam Bara Khyber

Package-II

ManiKhel dam Orakzai

BAK Consulting Engineers

& AGES

Kirman dam Kurram

Khan Mir Kill dam Orakzai

Nanokai dam Orakzai

Shinki dam FR Bannu

Shaktu dam FR Bannu

Package-III

Chow Tangi dam SWA

NDC&CA(JV)

Barabalai dam SWA

Sheen Kach dam FR Tank

Parwara dam FR D.I.Khan

Dana dam SWA

Kuhi Pewar dam FR D.I.Khan

Package-IV

Machi Khel dam NWA

NDC&CA(JV) Khand dam NWA

Sarobai dam NWA

Package-V Yet to be done Yet to be done Yet to be done

Review report of 13 dams as a result of reconnaissance visits and 9 Nos. inception reports

based on detailed topographic survey have been received during 2008-09. Geotechnical

investigations of two (2) dams in Khyber Agency and F.R-D.I.Khan have also been completed. Based

on geotechnical study and related field investigations NDC Consultants have submitted draft

feasibility report for Parwara dam site in FR D.I.Khan.

It is estimated that feasibility study and detail design of the following dams will be completed

during the financial year 2009-10 & subsequently construction of these projects will follow:

1. Parwara Dam, F.R-D.I.Khan. 2. Zao Dam, Bara, Khyber Agency. 3. Moto Shah Dam, Mohmand Agency. 4. Chao Tangi Dam, SW Agency. 5. Kand Dam, NW Agency. 6. Sheen Kach Dam, F.R.-Tank.


6.5 Raghagan Small Dam (Bajaur Agency)

Estimated Cost: Rs. 300.00 million

Dam site is located at a distance of 14 kilometers from the Agency Headquarter Khar towards

its east. Feasibility study of this project has been finalized. For detail design, Consultants are being

hired. On construction, this project will irrigate 3500 acres of land.

6.6 Detail Design of Bara Dam in Khyber Agency

Estimated cost: Rs. 226 million

Feasibility study of this project has been completed by NESPAK Consultants. Detail design of

the project is being carried out by WAPDA. However, the design cost will be borne by FATA-DA, for

which PC-II prepared by WAPDA has been cleared by FATA DA BoD at a total cost of Rs. 226.00

million. The Dam will benefit 41000 acres of cultivable land, in addition to generating 5.8 MW power.

6.7 Jabba Small Dam (Khyber Agency)

Estimated cost: Rs.1500.00 million.

BAK Consulting Engineers & AGES Consultants have been engaged to conduct feasibility

study and detail design. The inception report has proposed that the dam will serve drinking water

supply to a population of one million.


6.8 Machi Khel Small Dam (N.W Agency)

Estimated cost: Rs. 185.00 million.

NDC & CA consultants have been engaged for feasibility study and detail design of the dam.

They have submitted a review report based on reconnaissance visit. However, clearance could not be

obtained for further study from the Political Administration owing to law and order situation and social

problems at the dam site.

6.9 Kand Small Dam (N.W. Agency)


Feasibility study of this dam project is in progress. So far the Consultants have submitted

review report and inception report. Topographic survey of the reservoir is also completed. Drilling

machinery for geotechnical investigation was shifted but unfortunately it was seized by unknown

miscreants. However, consultant is arranging another machine to conduct geotechnical investigation

and other investigations that are pre-requisites for feasibility study & design of the dam.

6.10 Sarobi Small Dam (N.W. Agency)


Due to law & order situation in the area, Political Administration could not provide security

clearance to Engineers and Consultants. If the prevailing situation continues, the project could be

deferred.

6.11 Parwara Small Dam (F.R.-D.I.Khan)


Feasibility study of this project is in progress. Consultants have submitted review report,

inception report and draft feasibility report so far. Consultants have been asked to finalize feasibility

and go ahead for detail design. It is believed that construction of the dam will commence in next

financial year.


6.12 Nanoki Small Dam (Orakzai Agency)


The consultants in the inception report have recommended a weir instead of the dam

because of small storage reservoir. The deliverables received from the consultants have been handed

over to the FDP LD a subsidiary of USAID who will complete the feasibility study and detail design of

the weir. It will also finance and execute this project.

6.13 Provision of Solar Energy to Villages in FATA


During the year 2008-09, Feasibility study for the use of solar energy in FATA awarded to

NUST Consulting, which covers seven (07) Agencies & six (06) FR‟s. The consultant is conducting

feasibility study in 450 villages for Solar Lighting Systems whereas 250 villages will be surveyed for

Solar Water Pumping Systems. This study also consists of installation of pilot projects in 03 villages of

FATA.

So far NUST Consulting has surveyed 158 villages during 2008-09. Feasibility study of 43

villages is completed and PC-1 of 23 villages & 20 villages submitted by consultants are being

processed for approval which will be followed by implementation of the project during 2009-10.

FEASIBILITY STUDY FOR USE OF SOLAR ENERGY

0

50

100

150

200

250

300

350

400

450

Data collection

Inception Report

Draft Feasibility

Report

Final Feasibilty

Report

PC-I Installation of SHS

Installation of SPS

450450 450

450 450

60

1

158

68

15 15 150 0

Nu

mb

ers

Target

Achievement


6.14 Problems Encountered and Tackled:

The terrain of FATA is difficult due to its topography. Access to various project sites is time

consuming because of poor communication network. The deteriorated law & order situation has

compounded the problems. The FATA DA Engineers usually risk their lives by travelling to far flung

areas to oversee the ongoing projects. Following illustrates and reflect difficulties faced during

construction supervision of ongoing projects.

i. Dandy Dam in N.W.Agency

Construction of two Nos. dykes immediately up-stream of the left abutment and right

periphery of reservoir were reported to be essential for completion of the project. The initial cost

worked out for these dykes was about Rs. 30 million. Again a team of FATA-DA Engineers along with

consultants left for site despite unfavorable situation but were stuck-up in a Government School at

Mirali area for more than 72 hours. Finally, the team managed to reach the project site and carried out

survey of the maximum conservation level along the periphery of the reservoir. After that it was

proposed that no such dykes are required except some surface treatment at the left side in a short

stretch of length. The proposal was agreed upon. These efforts of the visiting team were also

appreciated by the Governor NWFP with the following remarks on the inspection report.

“Initiative taken to inspect Dandy dam is appreciated”

ii. Dargai Pal Dam in S.W.Agency A panic was created due to inflow of an early seasonal flood of moderate intensity on March

18, 2009, while the dam was still under construction. It was reported that fear exists that the flood

might over top the dam embankment which created tension amongst the locals as well as political

administration. A team of FATA DA Engineers was dispatched to the site who explained the factual

position to the locals as well as Political Administration during separate sessions that the dam body is

intact and there is no chance of overtopping. The team further explained that the reservoir is water

tight as no seepage or leakage was observed downstream. Since no diversion tunnel or any other

sort of such arrangement was planned in the design to pass the excessive flood water, therefore, the

field staff was directed to provide temporary cut at spillway to allow the excessive flood water and

thus secure the embankment.

The Governor NWFP appreciated the efforts. His remarks on the inspection report are

reproduced below:

a. Good Report. I would like to visit.

b. Please issue a press note with pictures of the dam and water lake.


6.15 Lessons Learnt:-

Proper Supervision and monitoring of the projects in present circumstances is possible only

with the assistance of beneficiaries/local elders who can facilitate the journeys of the touring officers

by providing escort.

a) To avoid undue alteration and variation at construction stage like inclusion of dykes

and other structures, provision for topographic survey will be provided in the TOR of detailed

design and the consultants would be asked to include cost for such survey in their bid.

b) The detail design and construction supervision should be accomplished under one

contract and awarded to the same firm as one package to avoid subsequent conflicts and

complications.

It would be suggested that in future only those dam sites should be awarded for feasibility

study where the local people can pledge that they would cooperate with the survey team / consultants

during feasibility study and the contractor at the construction stage.

MINERALS SECTOR


7. MINERALS SECTOR

Approximately 85% of the entire FATA has been geologically surveyed. Geological

investigations reveal that the tribal belt has a varied geological configuration with a number of zones

hosting different base & precious metals, industrial rocks, precious, semi-precious and building

stones. As a result, world-class deposits of marble, magnesite, soapstone and potential prospects of

copper, manganese, chromites, coal and gemstones were discovered.

Preliminary geological studies during the past indicated presence of 24 different minerals out

of which 12 minerals have been explored in detail. The available geological information provides

ample evidence that FATA has fairly good mineral potential as exist in similar geological

environments elsewhere in the world. This mineral potential can be well utilized for sustainable socio-

economic development of local population in mineral bearing areas. The Government has, therefore,

launched a major policy initiative to expand mineral development activities in FATA, enhancing

contribution of this sector in providing support to the social uplift programs and poverty alleviation.

Despite many handicaps of the private sector and the prevailing social conditions in the

region, Minerals Sector has recorded tremendous growth in production. The average annual growth

rate of mineral production and revenue generation during the last five years has been 40% and 60%

respectively.

In order to further enhance the mineral development potential, FATA DA has initiated a

number of mineral exploration, infrastructure development and private sector facilitation projects

which would provide sound basis for planning mineral sector activities on scientific lines. This will

restore the confidence of private sector and would lead to investment in FATA, resulting in generation

of employment opportunities and supply of indigenous raw material to the local industry.


7.1 Exploration and Evaluation of Precious Stones in Bajaur & Mohmand Agencies.


Date of commencement: May 2007





Geological studies conducted in FATA have established that all the fundamental geological

elements and rock formations hosting the world finest emerald deposits of Swat and the adjoining

areas extend through Bajaur and Mohmand Agencies. In this context, it is pointed out that emerald

mineralization has been reported from Tora Tiga of Mohmand agency and Amankot, Barang area of

Bajaur agency. Besides, garnet and epidote have also been reported from the same area.

Keeping in view the evidence of emerald mineralization at a number of places and existence

of favorable geological environment, there is every possibility of discovering new emerald deposits in

the area. In order to explore and evaluate gemstone potential of the area, more than 100 sq. km area

has been investigated in Prang Ghar area of Mohmand Agency, while studies in other areas remained

in progress.

Bastnasite Zegi Mountain, Mallagori, Khyber Agency


0

10

20

30

40

50

60

70

80

90

100

Hiring of HR Procurement of equipment

Reconnaissance survey

Regional scale resource

mapping

Prospect scale mapping

Petrographic studies

100 100 100

70

100

70

90

70

30 3020

30

Pe

rce

nta

ge P

rogr

ess

Target

Achievement

25

1217

2025

3540

5054

65

7580

89

9598100

0

10

20

30

40

50

60

70

80

90

100

Qtr 4 06-07

Qtr 1 07-08

Qtr 2 07-08

Qtr 3 07-08

Qtr 4 07-08

Qtr 1 08-09

Qtr 2 08-09

Qtr 3 08-09

Qtr 4 08-09

Qtr 1 09-10

Qtr 2 1 09-10

Qtr 3 1 09-10

Qtr 4 1 09-10

Qtr 1 10-11

Qtr 2 10-11

Qtr 3 10-11

Qtr 4 10-11

Pe

rce

nta

ge P

rogr

ess

Target

Achievement


7.2 Investigation & Evaluation of Manganese Prospects in Bajaur & Mohmand







Geological exploration conducted in Bajaur Agency resulted in locating a number of

manganese prospects at various places. Studies reveal that the rock formations bearing manganese

prospects also extend to Mohmand Agency, exploration activities were, therefore, extended to the

adjoining areas of Mohmand Agency. Reconnaissance survey in about 600 sq. km areas of both the

Agencies, resulted in locating more than 08 manganese prospects. Beneficiation studies on Takht

manganese were successfully carried out in collaboration with PCSIR Labs. Peshawar. Work in Prang

Ghar area of Mohmand Agency, remained in progress, where 6 prospects have been located.


0

10

20

30

40

50

60

70

80

90

100

Regional Geological

mapping

Prospect scale

mapping

Geochemcal survey

Benificiation studies

Aditting Trenching Geochemical studies

Geophysical survey

Constr: of approach

road & site hut

100 100 100 100

50 50

75

100 100

40

55

25

50

0

50 50 50

80

Pe

rce

nta

ge P

rogr

ess

Target

Achievement

0

10

20

30

40

50

60

Qtr 1 04-05

Qtr 2 04-05

Qtr 3 04-05

Qtr 4 04-05

Qtr 1 05-06

Qtr 2 05-06

Qtr 3 05-06

Qtr 4 05-06

Qtr 1 06-07

Qtr 2 06-07

Qtr 3 06-07

Qtr 4 06-07

Qtr 1 07-08

Qtr 2 07-08

Qtr 3 07-08

Qtr 4 07-08

Qtr 1 08-09

Qtr 2 08-09

Qtr 3 08-09

Qtr 4 08-09

Pe

rce

nta

ge P

rogr

ess

Target

Achievement


7.3 Model Quarry for Marbles in Mohmand Agency


More than 7000 million tons of good grade marble deposits exist in FATA. Presently an

average of about 1.5 million tons marble is annually mined through primitive methods, causing more

than 75% wastage and degradation of these deposits. To minimize this wastage and increase the life

of the marble deposits, mechanized modern block cutting technology is required. In order to introduce

such mechanized mining technology, work on this scheme was initiated. Sites for establishment of the

model quarry were identified in collaboration with Pakistan Stone Development Company (PASDEC).

Prequalification of suppliers/contractors advertised in the press. Agreement with the investor has

been finalized and an expression of interest for supply of the required machinery invited. The scheme

will be completed during 2009-10.

7.4 Establishment of Mines Rescue/Safety/Labour Welfare Centre at Orakzai Agency


Date of commencement: March 2005





More than 5,000 mineworkers, mostly raw hand/unskilled, are engaged in various

underground coalmining activities in F.R. Kohat, Orakzai and Kurram Agencies without any training

facility and rescue/safety cover, thus there exist chances of fatal accidents/mishaps. Establishment of

such centre is mandatory under the Mines Act, 1923, extended to FATA in April, 2000, so as to

provide prompt rescue & safety facilities to the miners at the time of accidents and disasters in

addition to arranging training and refresher courses for mine workers, ensuring availability of efficient

and trained workers to deal with emergencies and develop mines on scientific lines to increase

productivity of mines.

A centre for the purpose was established, equipped with the state of art machinery/equipment

and qualified staff. Since its inception, more than 52 abandoned mines due to fires and noxious gases

have been restored, 20 unconscious miners were evacuated with the help of resuscitation, 12 dead

bodies were recovered and 442 mine workers were trained on mine rescue equipments and

techniques. The work of the Centre has also been commended by the Honorable Governor NWFP

and attained a wide appreciation in the electronic and print media, nationally as well as internationally.

Though the project has been completed, however, it has been continued in the ADP till its conversion

to current budged.


0

10

20

30

40

50

60

70

80

90

100

Procurementof Ambulances

& transport

Procurementof rescue

machinary & equipment

Constructionof

Rescue Centre

100 100 100100 100 100P

erc

enta

ge P

rogr

ess

Target Achievement

0

20

40

60

80

100

120

Qtr 1 04-05

Qtr 2 04-05

Qtr 3 04-05

Qtr 4 04-05

Qtr 1 05-06

Qtr 2 05-06

Qtr 3 05-06

Qtr 4 05-06

Qtr 1 06-07

Qtr 2 06-07

Qtr 3 06-07

Qtr 4 06-07

Qtr 1 07-08

Qtr 2 07-08

Qtr 3 07-08

Qtr 4 07-08

Qtr 1 08-09

Qtr 2 08-09

Qtr 3 08-09

Qtr 4 08-09

Pe

rce

nta

ge P

rogr

ess

Target

Achievement


7.5 Construction of 91 Kms Shingle Roads in Mineral Bearing Areas of FATA


Expenditure 2008-09 Rs. 206.000 million


Physical Achievement 25 Kms

Most of the minerals identified in FATA are located in far flung inaccessible corners of the

tribal belt. Improved infrastructure in mineral bearing areas is, therefore, a prerequisite for accelerated

exploration and development of the mineral potential. Work on 86.5 kms roads in different Agencies

remained in progress out of which 25 kms road has been constructed during the period under report,

which resulted in mineral production and revenue generation of 1.931 million tons and Rs.50.850

million respectively. Construction of the remaining roads will further enhance mineral production,

revenue and generate economic activity in the region. Work on the roads in all Agencies commenced

on different dates & remaining works will be completed in June, 2011.


7.6 Exploration and Resource Estimation of Coal in Shirani Area, FR DI Khan


Date of commencement: June 2007





In order to discover and establish additional potential coal bearing areas, FATA DA, in

collaboration with PMDC, launched geological studies in Shirani area, FR DI Khan, where the coal

bearing formation of Baluchistan extends. In this context, regional geological map of 350 sq. km on

1:50,000 scale with structural features, coal seam horizons and location of trenches etc. has been

prepared. Detailed geological map of 70 sq.km area on scale 1:10,000 was also prepared and

digitized. In addition, Survey Contour Plan covering 35 sq.km area on scale 1:10,000 prepared and 8

trenches were excavated from which 26 selected samples were analyzed, showing encouraging

results. Work on delineating promising coal bearing zones for additing and drilling has been initiated.

Completion of the above investigations might result in developing new coal clusters in the area.


0

10

20

30

40

50

60

70

80

90

100

Hiring ofHR/Procurement of

machinery

Regional scale mapping

Outcrop mapping Trenching Drilling Aditting &sampling for

commercial testing

100

80 80

50 50 50

95

80

70

50

0 0

Pe

rcen

tage

Pro

gres

sTarget Achievement

0

10

20

30

40

50

60

70

80

90

100

Qtr 1 06-07

Qtr 2 06-07

Qtr 3 06-07

Qtr 4 06-07

Qtr 1 07-08

Qtr 2 07-08

Qtr 3 07-08

Qtr 4 07-08

Qtr 1 08-09

Qtr 2 08-09

Qtr 3 08-09

Qtr 4 08-09

Qtr 1 09-10

Qtr 2 1 09-10

Qtr 3 1 09-10

Qtr 4 1 09-10

Qtr 1 10-11

Qtr 2 10-11

Qtr 3 10-11

Qtr 4 10-11

Pe

rce

nta

ge P

rogr

ess

Target

Achievement


7.7 Exploration and Development of Copper in N.W. Agency







Geological investigation revealed presence of copper resource of 35 million tons, out of which

8 million tons reserves with 0.8% copper content have been established. In order to enhance the

proven reserves to the tune of about 50 million tons, geological studies have been undertaken in

collaboration with PMDC.

So far contour maps of 16 sq. km in Shinkai area on different scales have been prepared.

Geochemical studies of rock and core samples have shown the presence of 0.2-1.7% copper, 0.26-

0.81 ppm gold and 2.5% nickel. Geophysical survey was conducted on 3 copper prospects in Shinkai

area and the data was processed for delineating subsurface mineralized zones and planning

/designing strategy for further drilling, contract for which was awarded. In addition, the available data

of 33 drill holes has been computerized and interpreted for delineation of mineralized zones for future

reserves calculation.


0

10

20

30

40

50

60

70

80

90

100

Geological mapping of

prospect

Geochemical sampling

Geochemical analysis

Geophysical survey

Drilling/Aditting

100

30 30

50

30

100

30

20

30

0

Pe

rce

nta

ge P

rogr

ess

Target

Achievement

0

10

20

30

40

50

60

70

80

90

100

Qtr 1 06-07

Qtr 2 06-07

Qtr 3 06-07

Qtr 4 06-07

Qtr 1 07-08

Qtr 2 07-08

Qtr 3 07-08

Qtr 4 07-08

Qtr 1 08-09

Qtr 2 08-09

Qtr 3 08-09

Qtr 4 08-09

Qtr 1 09-10

Qtr 2 1 09-10

Qtr 3 1 09-10

Qtr 4 1 09-10

Qtr 1 10-11

Qtr 2 10-11

Qtr 3 10-11

Qtr 4 10-11

Pe

rce

nta

ge P

rogr

ess

Target

Achievement


7.8 Source Rock Mapping and Exploration of Hydrocarbon Potential in FATA







Preliminary geological studies indicated oil and gas potential in the tribal areas and the idea

of existence of both the source and petroleum reservoir rocks in FATA was further strengthened by

the presence of encouraging geological indicators and discoveries of hydrocarbon in Kohat, Hangu,

South Waziristan and parts of Baluchistan. However, in order to ascertain the potential up to the

confidence of the intending investors in oil & gas sector, FATA DA plans to generate certain base line

geotechnical data required to the Oil & Gas industry in collaboration with National Centre of

Excellence in Geology, University of Peshawar.

In this regard, the available data on the area has been compiled, 21 topo-sheets/maps were

scanned, cropped & geo-referenced and 22 topo-sheets/maps on 1:250,000 and 1:50,000 scales

were digitized. Geological and geochemical studies were conducted on 4 oil seeps. Further field and

laboratory studies remained in progress.


0

10

20

30

40

50

60

70

80

90

100

Literature review

Field surveys

Labortory reasearch

Interpretation of data

Compilation of data

100

10 100 0

100

10 10 0 0

Pe

rcen

tage

pro

gres

s

Target Achievement

0

10

20

30

40

50

60

70

80

90

100

Qtr 3 07-08

Qtr 4 07-08

Qtr 1 08-09

Qtr 2 08-09

Qtr 3 08-09

Qtr 4 08-09

Qtr 1 09-10

Qtr 2 09-10

Qtr 3 09-10

Qtr 4 09-10

Qtr 1 10-11

Qtr 2 10-11

Qtr 3 10-11

Qtr 4 10-11

Qtr 1 11-12

Qtr 2 11-12

Qtr 3 11-12

Per

cen

tage

pro

gres

s

Target

Achievement


7.9 Provision of Safety & Other Equipments for Scientific Coal Mining in FATA


Date of commencement: August 2008




Most of the mine workers engaged in underground coal mining activities in F.R. Peshawar,

Orakzai and Kurram Agencies, extracting about 0.260 million tons coal annually, are working in

primitive conditions, without safety equipments. Thus they are perpetually exposed to a number of

health hazards like skin / respiratory /eye diseases, head injuries and tuberculosis etc. resulting in

reducing their working life or early deaths.

The Governor NWFP during a briefing on FATA Coal directed that the mine workers who

receive training at the “Mines rescue/safety/labour welfare centre at Orakzai Agency” should be

provided the essential safety equipments. The scheme envisaged provision of such equipments i.e.

safety helmets, dust masks, torches, gaggles, safety lamps, miners outfits etc. for 500 miners, already

trained in different rescue/safety techniques. The scheme stands completed during 2008-09.

0

20

40

60

80

100

Procurement of safety equipment

100 100

Pe

rcen

tage

Pro

gres

s

Target

Achievement


7.10 Exploration and Investigation of Precious/Base Metals in SWA


Restricted geological investigations in South Waziristan Agency indicated the presence of

sulphide and other metallic minerals at a number of places. However, in an attempt to confirm these

occurrences and explore more such zones, a team of geologists from Minerals Department, FATA DA

carried out preliminary studies in about 800 sq. km area. As a result, various mineralizations at more

than 12 different places in the western parts of the Agency were located. Geochemical studies of the

selected samples gave encouraging results and gold was reported in some samples for the first time.

Based on the encouraging field and laboratory studies, it was deemed advisable to conduct detailed

geological studies in the area to explore its mineral potential. The scheme envisages regional

geological mapping on 1:50,000 scale, resource mapping on 1:10,000 scale with cross sections of

mineralized zones, geophysical studies for identification of sub-surface behavior of mineralization,

and geochemical / petrographic studies of selected surface and trench samples. Work is expected to

be started in 2009-10.

7.11 Major Incident and Strategy to Avert

The Mining Engineer and other staff of the Kurram Soapstone JV Project, taken hostage by

the warring sectarian factions, were released after two months of strenuous efforts of the General

Manager (Minerals). Similarly, a project vehicle snatched by militants in Orakzai Agency was retrieved

safely. This happened for the first time that government property has been recovered from militants.

7.12 Constraints

The mineral sector projects lagged behind their schedule mainly due to legal issues, law &

order and management issues. An environment of flexibility and decentralization can increase the

performance and enhance the output.

7.13 Lessons Learnt

1. The locals should be involved in all developmental activities. They can be provided

employment in the projects so as to develop their stakes.

2. Outsourcing rather than execution by department yield good results and lead to promptness.

SKILLS DEVELOPMENT SECTOR


8. SKILLS DEVELOPMENT SECTOR

Lack of skills is one of the reasons impeding development in the tribal region. Semi-literate and

educated youth of FATA have no opportunity of acquiring skills which they can use as a means of

getting employment or starting their own business. FATA youth, both male and female, if provided

necessary skills, will get a better alternative and will be able to play an active part in society. The

training will also enable them to enter the mainstream of Pakistani society.

The male youth, after getting training in market need-based skills, will find jobs in the country

and in the proposed Reconstruction Opportunity Zones. They can also go abroad to the flourishing

markets of the Middle East and can get jobs in the reconstruction activities in neighboring

Afghanistan. The youth will send remittances to their families and, hence, will improve the social and

economic environment of FATA. They can also start their own businesses and thus, generate more

jobs for the skilled youth of the area.

Female youth, if provided appropriate skills, will be able to contribute to the income of the family

and also get a degree of economic self dependence.

In view of the above-stated situation, FATA Development Authority embarked on a fast-track

strategy for skills development of FATA youth and has launched the following three projects: -

FATA Youth Skills Development Programme (Institution-Based)

FATA Youth Skills Development Programme (Field Internship)

Establishment of 70-Govt Women Skills Development Centres in FATA

8.1 FATA Youth Skills Development Programme (Institution-Based)



Date of completion: December 2009



Physical achievement: 1102 youths trained

Youths drawn from all over FATA, selected on merit, are sent for short-duration training

courses to vocational training institutions of good reputation all over the country, not only to gain

employable skills but also to get an opportunity of mixing with people from other parts of the country.

During the training, efforts are made to closely monitor the training programme so that training of

good quality, according to the needs of the industries and service organizations, is imparted


8.2 FATA Youth Skills Development Programme (Through Field Internship)


Date of commencement: December 2007




Physical achievement: 392 youths trained

The FATA Youth Skills Development Programme (Institution-based) provides short-duration

training in vocational training institutes. Soon after launching the first batch of trainees, it was realized

that this is not enough to give them an entry into the job market or to start their own businesses.

FATA Youth Skills Development through Field Internship Programme” was designed to give the

youth “on-job” training (OJT) in order to get hands-on experience and provide an opportunity to

employers to observe and assess their skills and performance. It was hoped that this training would

improve the youths‟ chances of getting jobs in the same or other organizations. It could not take off

successfully as Industries did not respond. Skills Development Section of FATA DA has managed to

place some trainees in FWO and other organizations for on-job training. Some of these youth have


found employment. The other trainees have realized the importance of on-job training and are waiting

to be called.

Interaction with employers in the construction sector has provided encouraging feedback

regarding the prospects of employment for the trainees after OJT. In order to take advantage of the

situation, it was decided to use the resources of the USAID-funded programmes in this regard.

Accordingly lists of the passed-out trainees have been provided to FDP-LD (South FATA) and Upper

FATA LDP (North FATA). These organizations are now being helped in arranging OJT for the youth.

Some of the youth have been placed in OJT.


8.3 Estab: of 70-Govt Women Skills Development Centres in FATA Approved Cost: Rs. 182.091 million

Date of commencement: 2003




Physical achievement: 6275 women trained It is an established fact that women in FATA have not been able to keep pace with their

counterparts in other parts of the country. Women in tribal areas lack in education and technical skills.

They do not enjoy their due status in society and continue to be the least empowered segment of

society in FATA. Per capita income in FATA is far less compared to other parts of the country. That

for women is even lesser than for men.

Traditionally, women have not played any active role in the financing of households. The

project aims to empower women and strengthen other efforts for them to be able to play a more active

role in society. The area is backward, with limited economic and educational opportunities for all but

especially for women. Women do not have many opportunities. If provided necessary skills, they will

get a better alternative and would be able to play active part in society. On completion of their training

they will enhance skills and capabilities. The women will be able to earn their own livelihoods and set

up their own businesses as well as take part in the industrialization of FATA.

70 Nos Women Skills Development Centers were established by FATA Secretariat in 2003-

04. They were imparting training in traditional vocational skills such as hand knitting & embroidery,

machine knitting and embroidery and dress making techniques. There was a great demand from the

tribal people for continuation of these centers and creation of more centers. However it was observed

that these centers had not been able to deliver the required results. Efforts have been started to

streamline the working of these centres in order to achieve the desired objectives.


8.4 Lesson Learnt The two FATA youth skills development schemes for male FATA youth and one scheme for

skills development of female FATA youth have their own peculiar problems. An effort is being made

to tackle these problems as possible under the existing circumstances.

Lack of staff at FATA DA and other factors has prevented achievement of some objectives

pertaining to quality of training. Training in the vocational institutes has been, largely, left only to the

institutes. Quality of training, which is the basis for success in getting employment, could not be given

the attention it deserves by any of the organizations involved. Training arrangements, efforts and

capability of the service providers in this regard have to be improved. Our own capacity has also to be

increased. Our strategy for the future is being revised to provide the missing links and design

activities in light of the lessons learnt.

Besides FATA DA, skills and livelihood development activities are being conducted by other

organizations like NAVTEC, FATA Secretariat, Upper FATA LDP and FDP LD etc. Although the core

objectives of all the organizations are the same, the implementation strategies differ. This often

results in repetition, duplication and overlapping of activities, causing wastage of resources. The

emphasis generally remains on numbers, with little focus on quality and much-needed post-training

support in terms of placement of trained people. There is a lack of co-ordination amongst the on-

going programs.

Organizations like Overseas Employment Corporation (OEC), Ministry of Youth Affairs, and

National Training Bureau (NTB) etc also offer opportunities in placement and other spheres. The

provinces like Punjab and Sind take advantages of these opportunities because they have

organizations like TEVTA already established. FATA has no such organization which can coordinate

with these organizations and thus, unable to benefit from the advantages which can accrue from such

linkages.

8.5 Strategy for Tackling Problems

FATA Youth Skills Programme

As mentioned above, many organizations are working in the skills development sector. To

overcome the shortcomings, it was decided to pool the financial and human resources of FATA DA,

Upper FATA LDP and FDP LD and devise a joint strategy. In this respect MoU for formation of the

Skills Development Cell was signed by these three Organizations. A Management Committee headed

by the General Manager (Technical) FATA-DA and a representative each of Upper FATA LDP and

FDP LD has been formed. This will oversee the operational matters of the Cell. An overall Executive

Committee, headed by the Chief Executive of FATA-DA, and comprising DGs of the FATA LDP and

FDP LD and Agreement Officer‟s Technical Representative (AOTR), has been formed which will

oversee the Management Committee.


Women Skills Development Centres Evaluation of the working of the Women Skills Development Centres showed that they were

being run in an ad-hoc manner without any rules and regulations, dedicated staff, proper evaluation of

services and delivery, curricula, examination procedure etc. Moreover, it was also observed that the

centers were providing only rudimentary skills to the students and that there was an urgent need to

enhance and diversify the training program.

Lack of staff in the skills development section of FATA-DA affected the monitoring activities of

the GWSDCs. There was very little check on the training activities, attendance of the staff and other

aspects of the GWSDCs. As a result, the conditions of the GWSDCs further deteriorated. This state

of affairs continued for almost one year. The problems encountered in the GWSDCs pertain to the

following aspects:

The staff working in the centres is, generally, not residents of FATA and is faced with various

logistic problems. This affects their attendance and efficiency.

The women attending the centres are, generally, uneducated and lack basic literacy and

numeracy skills. This affects their ability to learn skills.

Many GWSDCs remained non-operational from time to time because of low enrolment. Some

had to be closed after having met the demand of the surrounding area. However, due to

various reasons, such GWSDCs could not be shifted to other places as conceived in the

original plan. ( A detailed centre by centre exercise is required to make a decision regarding

relocation of the centres)

After completion of training, most of the women are only able to work at home. The social

environment of FATA is such that not much can be expected with regard to undertaking work

on a commercial basis. However a few enterprising women are making efforts to establish

linkages with the market. ( Such women should be encouraged and facilitated)

Efforts were made to overcome these problems and streamline the affairs of the GWSDCs. In

order to identify the areas needing attention and remedial measures, a survey was carried out with

the help of the ACOs to ascertain the status of these Centers. In the light of this survey, the following

decisions were taken:-

S. No Decision Number

1. Centers to be continued 36

2. Centers to be closed 16

3. Centers to be kept under observation 19

4. Staff to be terminated 61

5. Staff to be transferred to other centers 42

Efforts were continued to streamline the affairs of the GWSDCs and a PMU was established in

FATA DA and in some aspects in which headway has been made include collection of baseline

information required for taking remedial measures and formulating future strategy.


CONCLUSION

Skills Development Sector is receiving attention at the federal Govt. level. NAVTEC has

started initial work on „Skilling Pakistan---A Vision for National Skills Strategy‟ with assistance

from EU, DFID and GTZ. It has started work on establishment of competency standards in four

sectors, including construction. Plans for starting work on other aspects of skills development are

also being prepared. In FATA DA, after the establishment of Skills Development Cell, jointly by Upper

FATA LDP and FDP LD, it is hoped that skills development programmes for FATA youth will benefit

from the initiatives taken so for. This will enable FATA women to join the main stream of society of

the country.

INDUSTRIES SECTOR


9. INDUSTRIES SECTOR

Industries are driven by comparative advantage, with adequate incentives and favorable

regulatory environment. Yet Pakistan remains at a comparative disadvantage while FATA is at

comparative disadvantage in relation to the rest of Pakistan.

Industrial activity in FATA is restricted primarily to small owner-financed units, operating without

government oversight. According to a conservative estimate FATA currently have around 1082

operating industrial units which include stone processing, Marble, textile weaving and Hunting &

Sporting arms in cluster form and scattered units of vegetable ghee (Hydrogenated Cooking Oil)

PVC pipes, flour mills, furniture, sweet and confectionaries. However, poor infrastructure, shortage

of skilled labour, locational disadvantage, absence of lending, security concerns, and on top of all

absence of Regulatory Framework is causing high cost of doing business.

Industrial development in FATA occupies high priority in FATA sustainable plan. The overall

strategic objective is to create employment opportunities and economic uplift of the people and area

and create value addition to the available natural and human resource. The main elements of the

strategy to promote industrial growth in FATA are envisioned as:

Development of required infrastructure and Industrial Estate to attract investors;

Work on a legal frame work with the aim to establish a well-defined regulatory regime with

the consultation of local people for formulating laws to create a conducive investment

climate;

Focus on the industries processing locally available raw materials;

Establish a knowledge base regarding investment opportunities, cost of doing business,

marketing prospects and export options for investors.

9.1 Activities Related to Reconstruction Opportunity Zones (ROZ) Estimated Cost: Rs. 2,000 million (land cost only)

ROZ envisages development of Industrial Estates/Parks offering International standard

infrastructure facilities and incentives to attract National & International investment with guarantee

and safety of investment. ROZs would be similar to QIZs established in Egypt and Jordan. All

products manufactured/processed in ROZs including textile would be eligible for duty free access to

the U.S market. Existing Incentives/Regulatory Structure for Export Processing Zones in Pakistan

are to be offered to ROZs. A site at Shahkas, Khyber Agency (4 kms from Hayatabad Industrial

Estate, Peshawar) and close to the alignment of the upcoming Torkham- Peshawar Expressway)

has been selected for acquiring 1,000 Acres of land for proposed ROZ, through a joint visit &

consultation with all stakeholders including Trade & Commerce bodies. Detailed presentations to


Governor/Chief Minister, NWFP, provincial ministers and FATA legislators have been held to take

them on board as well as sensitize the relevant government departments.

While awaiting ROZ bill approval from US Congress, FATA DA is currently engaged in

consultation process with all stakeholders.

9.2 Enterprise Development and SME Financing Estimated Cost: Rs. 100.00 million

Despite development in the SME sector, FATA has been completely neglected or ignored

for SME Development. Informal credit is only available in cash at exorbitantly high rates, sometimes

as high as 72% per annum and only men have access to such type of credit. Realizing the need,

urgency of lending vis-à-vis the hesitation of financial institution, FATA DA, in partnership with

SMEDA designed & initiated a scheme in ADP for SME financing to be operated through a

professional commercial bank. Under the scheme, FATA DA will extend a special line of credit to

commercial banks and will provide sovereign guarantee for taking all risks. The offered lending rate

would be ensured to be competitive keeping in view the prevailing market rates. The loan facility will

be for Term Finance upto Rs. 0.5 million as well as Running Finance upto Rs. 1 million, depending

on the need and nature of business. Repayment to be made in a maximum of 2 to 5 years having

payback on quarterly basis, with grace period. Passed out students of FATA DA Skills Development

program, Marble and gunsmithry clusters are focused target of the scheme.

The scheme was ready to be signed with a leading commercial bank but was held up owing

to the observation that development funds cannot be used for lending purpose. Alternatively,

substantive efforts were also made to include the scheme in Livelihood Development Program

(LDP) a USAID project but they too are not forthcoming. However, FATA DA not deterred by this

impasse, is continuously pursuing and finding alternate venues to implement this enormous

employment generally scheme at all Government forums and donor agencies on the strength of the

argument that given the condition in FATA, the area and people needs special dispensation.

Negotiations are underway with the Federal Government & donors.

9.3 Small Industrial Estate at Dara Adam Khel, F.R Kohat.


The scheme inherited from FATA Secretariat, was primarily conceived as a Small Industrial

Estate, meant to bring the un-organized and hitherto scattered small Hunting & Sporting Arms

Manufacturing units to an organized Industrial Estate. After the inception of FATA DA, renewed

efforts were made by involving the Pakistan Hunting & Sporting Arms Development Company

(PHSADC) – A company established by Federal Government for the development of this cluster,

Dara Hunting & Sporting Arms Manufacturers Association (DHSAMA) as well as individual


manufactures to assess their real requirements and expectations from a formal Industrial Estate.

The objective is to provide them necessary infrastructure facilities, Regulatory Framework and to

build their capacity to avail tremendous export opportunities.

The size & cost of plots is to be small so that these manufacturers, mostly small craftsmen

with small cash flows, could afford to purchase plots.

Despite the renewed efforts & endures the land acquisition process was stalled for a long

period, due to reluctance of tribe for selling land for the scheme coupled with worsening law & order

situation. However, consistent efforts were made and finally in a last meeting held on 17/9/2009, the

land owners, agreed to sell their land situated on the back side of Govt College Akhurwal, Dara

Adam Khel to Government for this economically viable scheme.

Land acquisition is in process.

9.4 Survey/Enumerations of Industrial Database & Identifying Constraints


FATA has a reasonable Industrial presence mostly SMEs in clusters form that include

dimensional stone, stone processing, Marble, textile, gunsmithry, furniture, ghee manufacturing,

Flour Mills, PVC pipes, Biscuits & confectionery making. However, the number of Industrial Units

operating in FATA is always estimated and no authentic data is available to substantiate such

estimation. The above stated industrial and service entities have an integral component of labor

force employed therein but like their employers they too are undocumented.

In order to know the present state of Industrial base in FATA there is a dire need to

document the database to identify the following:

a) Nos. of units established, closed and still operating in FATA.

b) Operational issues of running units.

c) Reasons for closure of units.

d) Constraints that hamper or discourage investment.

e) State of labor force in FATA.

The database will provide an insight about the problems and opportunities that will guide

planners to design focused interventions to redress the issues so as to provide enabling and

attractive environment for industrial development in FATA.

After a rigorous consultant selection process, a FATA based survey firm having extensive

experience of surveys for international donors agencies has been selected to conduct first ever such

survey scheduled to be completed in sixth months.


9.5 Feasibility study of Regulatory Regime for Trade, Commerce &

Industry Approved Cost: Rs. 4.020 million

Business, trade and commercial activities in a given economy are undertaken, operated,

protected and regulated under a framework of laws, Rules & Regulation. However, FATA currently

has no primary laws relating to starting business, property rights, contracts, getting credit, collateral,

mortgage, insurance, employing workers and a host of related laws already in vogue in rest of

Pakistan due to its non extension, thus creating a complete legal void. Due to absence of such

regulatory laws, businessmen in general including those hailing from FATA are shy & hesitant to

undertake significant business ventures in FATA.

This survey envisages a study to be conducted by a team of legal & administration experts

to identify and suggest regulatory laws & devise mechanism to implement these laws within the

existing legal framework in FATA. The hall mark of the survey is to conduct a consistent dialogue

with all stakeholders so as to allay their fears with the strategic objective to attract investment to

generate much need employment opportunities in the area.

Consultant selection process is underway.

9.6 FATA Industrial/Engineering Research Unit/Chair


FATA is endowed with abundant natural and agricultural resources. The area has certain

specific resources that need to be taped and exploited. Industries or commercial undertakings that

are based on locally available raw material carry high probability of sustainability and profitability.

FATA DA intends to establish a research Unit in the department of Industrial Engineering of

an accredited University of Engineering and Technology (UET) to identify local endowments in

FATA, maintain a data base of these resources and undertake research for designing innovative

and commercially viable production methods and process with close interactions & guidance from

the industry. The project is conceived to create a chain of following economic activities:

Provide a platform for taking advantage of the resources of FATA.

Attracting investment for setting up of industry based on indigenous raw material.

Generation of employment and trade opportunities in the area


After preparing initial concept and project document, University of Engineering &

Technology, Peshawar was selected to provide lead role for undertaking this scheme. Pakistan

Council of Scientific & Industrial Research (PCSIR) was also taken on board and included to refine

the input for undertaking this unique research project as no such chair exists in the country. Series

of marathon brain storming meetings were held with UET Peshawar which is still not forthcoming

apparently due to absence of research aptitude generally found in our universities. Alternatively,

parlays with HITEC University Taxila through an expatriate US based Pakistani consultant are in

advanced stages.

9.7 Establishment of Common Facility and Training Centre (CFTC) In Dara Adam Khel

Approved Cost: Rs. 5.000 million (Feasibility Study)

Dara Adam Khel, home to historic guns smithery cluster is composed of conservatively estimated 300 family built & mostly self employed cottage units. Due to lack of technical facilities and expertise the clusters could never seize huge local and export opportunities. The CFTC will focus on training local manufacturers as how to read and prepare component drawings, measurement and inspection, standardization and documentation, basic and advance machining techniques, production process, quality control, proofing standards, arms repair and assembly. Responding to the strong demand, FATA DA agreed to declare the existing Government Technical Institute in Dara Adam Khel (situated right in the heart of the existing cluster) spread over an area of 10 Kanals for building state of the art CFTC.

However, no sound proposal/bids received so far, despite twice advertisement in the

newspapers for the study.

During FATA DA Annual Review meeting held on 21-08-2009, the Governor directed to

drop the project of study as PHSADC is already doing it.

9.8 Marble City in Mohmand Agency (Non ADP Project) Approved Cost: Rs. 351 million

Mohmand, Khyber, Bajaur, Orakzai and Kurram Agencies in FATA are the major zones

where huge quantities of Marble are extracted. These deposits have a great variety of colors and

fabrics and thus have vast potential in international Market. About 7000 million tones of good quality

marble ranging from super white, silky and grey varieties exist in FATA. Currently more than 1.5

million stones of Marble are excavated.

In order to process the available marble into products compatible in the international

market, a Marble City is being set-up in Mohmand Agency. An area of 300 Acres has been acquired

and is currently being developed by Pakistan Stone Development Company Islamabad (PASDEC).


The Mohmand Marble City is an industrial estate with tremendous investment and growth

opportunities for the entrepreneurs through infrastructure availability. The Marble City having

following objectives will be equipped with a dedicated infrastructure, regular power & utilities

availability within the same vicinity which will substantially reduce the cost of doing business besides

having a continuity of flow in operations.

Attract new business by providing an integrated infrastructure in one location;

Provide a conducive environment for the Dimensional Stone Industry of Pakistan;

Add value to the existing products, enhance exports and to attract local & international

investment in the Dimensional Stone industry;

Address the environmental and health hazards;

Localized environmental controls that are specific to the needs of an industrial area;

Process innovation according to international standards.

Total amount of Rs. 351 million has been paid to concerned agencies for execution of works as detailed below: -

i. Rs. 108 million to Political Agent Mohmand for payment to the owners of the land.

ii. Rs. 46 million to W&S Department for construction of approach road.

iii. Rs. 197 million to TESCO for construction of Grid Station. It is estimated that in addition to other economic benefits, Marble City will generate more

than 6,000 direct job opportunities in the area where unemployment is rampant.

SPECIAL INITIATIVES


10. SPECIAL INITIATIVES

10.1 Township Development in FATA


FATA does not have a single town or city where the principles of town planning have been

followed. Urban Development has been haphazard, unregulated, unplanned and lacks basic civic

amenities. Resultantly, the local administration is unable to cope with the demands of the rapidly

growing population even in the Agency Headquarters. The situation is worse in the peripheral rural

areas. Consequently, affluent people migrate to down country and major cities which offer some kind

of civic amenities. Similarly Khyber, Kurram, Bajaur, North Waziristan and South Waziristan Agencies

have large tracts of land adjoining the Agency Headquarters, where townships can be developed on a

modest scale, which will not only meet growing housing needs, but will also encourage private

entrepreneurs to invest leading to promotion of this sector.

In 2007, the Governor NWFP instructed FATA DA to initiate township development projects in

FATA. The intension was to introduce the tribals to a culture of modern and decent living, in a self-

sufficient unit where all the basic amenities of life are made available, bring about a socio-economic

change in FATA and thus check the problems associated with haphazard urban expansion. Quality

education and improved health services, opportunities for entertainment, clean drinking water, and

sanitation facilities would be provided in a secure environment.

FATA DA launched a study in 2008-09 at a cost of Rs. 5.59 million to identify most suitable

land, preferably located close to the Agency Headquarters. The study was also intended to determine

the social acceptability and economic viability of this concept in FATA. A comprehensive survey was

carried out in all the Agencies by a Consulting firm. A total of 24,000 households were questioned in

all the Agencies and Frontier Regions. Based on the findings of the study, 85% of the sample

households have shown their willingness to the concept of townships in FATA.

Initially, 20 sites were long listed as suitable for township development by the Consultants. A

core Group was created which included experts on township planning and development, Consultants,

Engineers, Environmentalists and tribals. The Core Group then selected four most suitable sites out

of these 20 which were also acceptable to the locals. The four sites are:

i. Akakhel, Mirrikhel, Khyber Agency

ii. Enzar, Wana, South Waziristan Agency

iii. Loesum, Bajaur Agency

iv. Edak, Mirali, North Waziristan Agency

Technical and Economic feasibility of these sites was carried out by the Consultants who

submitted its interim report. The report was examined and was referred back to the Consultants as


most important missing factor was authentic cost of land for the selected sites. Thus, the final report

of the study has been delayed and is expected to be completed by the end of 2009. As only the social

part of the study has been accepted by FATA DA, only 40% of the total contract price amounting to

Rs.2.2 million has been paid to the Consultant while the remaining 60% would be paid upon pre-

determined deliverables for the Technical and Economic part of the feasibility study.

Out of these four sites, detailed feasibility & design of two sites will be carried out, which

would lead to the implementation stage. After purchase of land through the Political Administration,

the townships would be developed according to national town planning standards. Upon development

of townships, plots would be offered to the people of FATA and others who would be interested in

their purchase through lottery at subsidized rates. Those who purchase these plots would then be

allowed to construct houses as per pre-determined building construction bye-laws.

FATA Development Authority plans to involve Private Sector entities in Planning, Designing

and Construction. All residential, commercial and civic amenities plots would be allotted through open

lottery. Upon completion of the development phase, Town Management Agency would undertake

Operation and General Maintenance of the townships. Thus, a Town Management Agency (TMA)

would be created at a later stage.

10.2 Construction of FATA DA Headquarter Building


FATA Development Authority was established in 2006 and is operating from 4 rented

premises. An amount of Rs. 0.5 million per month is paid as rent for these buildings. In 2007, the

project was initiated by the FATA Secretariat in compliance with the Governor‟s directive who later on

transferred it to the FATA DA. The building was designed by W&S Department, through S.F. Nizami

Associates Architects, Lahore at a cost of Rs. 39.959 million. This cost includes cost of designing,

preparation of PC-I, specification and tender documents

The project is proposed on an eight kanal plot owned by FATA Secretariat in Phase-V

Hayatabad which is reserved for Government and commercial office buildings. The building has been

designed in accordance with the building codes of Peshawar Development Authority.

The proposed building comprises of two blocks; the office block and rental offices to fully

utilize the plot potential and the expected growth of the organization. The building is planned to be

constructed in two phases. Phase-1 and both basements are for FATA DA offices. This would be a 5

storey building having space for Chief Executive‟s office and staff, General Managers offices, offices

for Managers and support staff, auditorium to accommodate 120 people, large waiting areas, space

for masjid (for 150 people) in the basement, kitchen and dining area for the staff, parking for 120

vehicles. It also includes construction of boundary walls, pavement area, electric sub-station etc.

Along with FATA DA‟s own offices a block for rental purposes is proposed in Phase-2. Rental

Offices building would be six storey having provision for elevators, large rooms for corporate sector


and business areas. As the new organization grows these rental offices shall gradually be taken over

by FATA DA for its own use. Till then the rental returns shall generate funds for maintenance and

upkeep. With the construction of this building work efficiency shall greatly improve and provide greater

convenience to public. It shall save time and money wasted in to and from communications. The rent

received from this space shall generate additional funds for maintenance and upkeep of building.

The total PC-I cost for phase-I is Rs. 198.696 million which includes cost of civil works,

expenses to be paid to Consultants, establishment of PMU, contingencies, escalation and revenue

cost. The PC-I was approved by the Board of Directors of FATA DA on 10th February 2009. FATA DA

has initiated the process of selection of Contractors and Consultants. A small PMU is being set up to

manage the project. Work is to be completed within 18 months after commencement of works.

Provision has been kept for hiring supervision consultant.

Provision of Rs. 14.419 million has also been made for revenue cost which includes cost of

furniture and furnishing, air-conditioning and heating, security system, close circuit TV, public address

system, micro phone system in auditorium, multi-media, fire alarm and fire fighting system.

It is expected that the first phase would be completed by the end of 2010.

10.3 Study on Tourism Potential of FATA


Economic development strategy of any region would only remain successful if it is built on the

inherent strengths of the region. The high tourism potential of FATA is characterized by dry ravines,

rocky hills; blended with lush green fields and pastures, enchanting valleys, passes and picturesque

landscape; full of natural beauty. Coupled with this mystifying natural beauty is the rich historical and

cultural heritage of this area seen in the shape of old buildings, forts and other historical places. In

addition, the culture and lifestyle of FATA people fascinated the tourists for centuries. All these

attributes place FATA as a strong candidate for developing into an attractive site for domestic and

international tourists.

Despite an impressive range of its superb cultural and natural endowments and the recent

increases in domestic tourism in Pakistan, the region‟s share of tourism remains insignificant. A major

constraint to tourism growth is inadequate connectivity. Road connectivity from settled areas to FATA

and within FATA, is poor. Second constraint is inadequate destination infrastructure. Civic services at

many cultural and natural tourism destinations do not provide attractive environments for tourists. The

situation is aggravated by the absence of any entity for tourism development in FATA to plan,

develop, protect and manage the destinations, as much has not been done on the front of tourism

development in FATA by the policy makers of the country, these tourist attractions have never been

truly opened up.

FATA Development Authority decided to tap the potential of tourism in the tribal areas and

attract local and foreign tourists keeping in mind that tourism should emerge as an important sector

which can serve as an engine for growth and creation of job opportunities.


A 16 week consultancy was launched by FATA DA to carry out a study of the historic, natural,

archeological, geographic tourist spots, the infrastructure available, flora and fauna, the cultural

festivals and sports unique to FATA. Consulting firm from Lahore was hired for developing a FATA

Tourism Development Strategy. Extensive consultations were undertaken with all stakeholders.

Workshops were held which will lead to identification of priority sites to be developed.

An Implementation Plan and Project Proposals would be developed upon completion of the

study to manage and implement the identified projects in accordance with guidelines of the Study.

The plan and proposals would include details of design, supervision, community participation,

environmental and social safeguards, project performance monitoring, heritage planning and

management, ecotourism, institutional development, and financial management. It is expected that

execution phase of the Implementation Plan and Project Proposals would start in the financial year

2009-10.

In addition to the development of a comprehensive Tourism Development Strategy, FATA DA

also made efforts for the revival of the famous Khyber Steam Safari. A private company operated a

safari train, Khyber Steam Safari, for tourists between Peshawar and Landikotal till 2007 when flash

floods damaged the railway track constructed in the early 1920s. In the subsequent year the historic

Takhta Baig bridge was damaged by flash floods adding to the rehabilitation cost.

FATA DA on the directives of Governor NWFP took a number of steps for the revival of

Khyber Steam Safari. Consultations were held with all stake holder and possible donors including

Pakistan Railways, Political Administration, Sehrai Travels and USAID funded FATA Development

Program (FDP). The main issue was financing the rehabilitation of the railway track and the

construction of the historic Takhta Baig Bridge.

Initially the USAID project “Upper FATA LDP” agreed to provide funds for the track

rehabilitation. They also indicated that funds for repair of historic train stations enroute in their original

form would also be restored. Pakistan Railways prepared a cost estimate for Rs 300 million for the

rehabilitation of the track including the construction of the damaged bridge at Takhta Baig. Pakistan

Railways also committed Rs. 100 million in case FATA DA could generate Rs. 200 million for bridge

construction. Upper FATA LDP however later on communicated its inability to finance the project for

being too capital intensive. Thus, despite its best efforts funds could not be arranged. The initiative

was, therefore, shelved temporarily.

Tourism development in FATA would creates jobs, provides new business opportunities and

strengthens local economies and would also help to protect natural and cultural treasures and

improve the quality of life for residents and tourists alike.

AUXILIARY SERVICES

FINANCE DEPARTMENT


11. AUXILIARY SERVICES 11. 1 Finance Department

To facilitate FATA DA management to study the financial health and performance of the

authority, plan judicious utilization of resources and to ensure transparency and accountability the

compilation of Annual Financial Statement is a regular feature of FATA DA since its inception.

As required under Section 36 of the FATA DA Regulation 2006 separate books of accounts

are maintained for development and current budget. During the year 2008-09 against the Revised

Estimates (Current Budget)of Rs.102.689 million an expenditure of Rs. 80.538 million including

investment of Rs. 35.00 million was incurred on FATA DA headquarter and Agency Coordination

Offices. The FATA DA reserves during the year crossed the target of Rs.100.00 million. On

development side, Rs.423.00 million were released for Annual Development Program of FATA DA,

which were fully utilized.

The Annual Financial Statements 2008-09 have been prepared in accordance with

International Public Sector Accounting Standard (IPSAS) of Modified Cash Basis of financial reporting

and provide detail information about the sources of funding, utilization and cash balance at the end of

the financial year. The International Financial Reporting Standard and International Accounting

Manual were consulted where IPSAS does not address any particular issue.

The Annual Financial Statements include the following reports both current and development

accounts: -

Statement of Assets and liabilities

Statement of Receipts and Expenditure

Summary of Appropriation accounts.


11.1.1 Current Account

i. Statement of Assets and Liabilities as on June 30, 2009

Amount in Rupees

2007-08 2008-09

Current assets

Cash and cash equivalents 102,549,163 148,243,148

Receivable 177,362 8,878,682 Prepayments 0

Total current assets 102,726,525 157,121,830

Non-current assets

Physical Assets 23,012,055 38,978,940

Total Non-current assets 23,012,055 38,978,940

TOTAL ASSETS 125,738,580 196,100,770

Current liabilities

Payables 1,471,871 3,058,695

Total Current liabilities 1,471,871 3,058,695

Non-current liabilities

Contractor's security 18,127,263 30,433,082

Total Non-current liabilities 18,127,263 30,433,082

TOTAL LIABILITIES 19,599,134 33,491,777

RESIDUAL EQUITY 106,139,446 162,608,993

TOTAL GRANTS & LIABILITIES 125,738,580 196,100,770


ii. Statement of Receipts and Expenditure 2008-09

Amount in Rupees

Object Particulars 2007-08 2008-09

Opening Balance 51,569 15,950,029

a. Receipts

i) Grant in aid from Federal Govt. 58,327,200 65,388,500

ii) ADP Fund from Federal Govt.

iii) Funds received from FATA Secretariat

b. FATA DA Own Receipts

i) Bank Profit 20,052,781 21,065,785

ii) Miscellaneous Receipts 182,506 107,119

iii) Recovery of Adv: Rent of Office Building 360,000 136,534

iv) Recovery of Adv: TA /DA 49,970 10,828

v) Recovery of Adv: POL/CNG 30,000

v) Investment 50,000,000

Total Receipts 129,024,026 102,688,795

Expenditure

A 0 1 Employees Related Expenses 21,980,056 28,898,184

A 0 2 Project Pre-investment feasibility 1,864,500 0

A 0 3 Operating Expenses 11,800,623 12,437,892

A 0 4 Pension Contribution 1,452,287 1,561,704

A 0 6 Transfer (Entertainment & Gifts) 187,767 173,202

A 0 9 Physical Assets 8,244,465 1,697,993

A 1 1 Investment 67,000,000 35,000,000

A 1 2 Civil Works

i) Approach Road

ii) Irrigation Works

A 1 3 Repair & Maintenance 544,299 769,063

Total Expenditure 113,073,997 80,538,038

Balance 15,950,029 22,150,756

Less:- Mineral Receipts 532,873

Net Balance 21,617,883

Note:-Last year (2007-08) the amount of Rs.532,873/- was taken as receipts and closed to Residual equity actually the amount pertain to Govt. Receipts and was required to be shown as Liability.


iii. Summary of Appropriation accounts

Demand No.112-FATA

Object Particular Original

Grant Revised Estimate

Re-App Final Grant Actual

Expenditure Excess/ Saving

CURRENT EXPENDITURE, HEADQUARTER ESTABLISHMENT

A 0 1 Employees Related Expenses

37,722,000

31,902,000 0

31,902,000

25,436,425 6,465,575

A 0 2 Project Pre-investment feasibility

2,500,000

500,000

500,000

- 500,000

A 0 3 Operating Expenses

21,445,000

17,730,000

17,730,000

11,677,675 6,052,325

A 0 4 Pension Contribution

2,000,000

1,547,000 20,000

1,567,000

1,561,704 5,296

A 0 6 Transfer (Entertainment & Gifts)

300,000

200,000 -20,000

180,000

162,273 17,727

A 0 9 Physical Assets 3,000,000

2,780,000 0

2,780,000

1,499,278 1,280,722

A 1 1 Investment

50,000,000

37,000,000 0

37,000,000

35,000,000 2,000,000

A 1 2 Civil Works

20,000

- 0

- 0 0

A 1 3 Repair & Maintenance

1,702,000

1,042,000

1,042,000

693,339 348,661

Permanent Advance

50,000

100,000

100,000

- 100,000

Total 118,739,000 92,801,000 0 92,801,000 76,030,694 16,770,306

CURRENT EXPENDITURE, AGENCY COORDINATION OFFICERS

A 0 1 Employees Related Expenses

6,896,000

4,987,000 0

4,987,000 3,461,759 1,525,241

A 0 2 Project Pre-investment feasibility 0 0 0

- 0 0

A 0 3 Operating Expenses

3,315,000

1,601,000

1,601,000 760,217 840,783

A 0 4 Pension Contribution

595,000

79,000

79,000 0 79,000

A 0 6 Transfer (Entertainment & Gifts)

35,000

28,000 0

28,000 10,929 17,071

A 0 9 Physical Assets

140,000

3,356,000 0

3,356,000 198,715 3,157,285

A 1 1 Investment - 0

- 0 0

A 1 2 Civil Works -

- 0

- 0 0

A 1 3 Repair & Maintenance

280,000

217,000

217,000 75,724 141,276

Permanent Advance

-

150,000

150,000 0 150,000

Total 11,261,000 10,418,000 0 10,418,000 4,507,344 5,910,656

G. Total 130,000,000 103,219,000 0 103,219,000 80,538,038 22,680,962


11.1.2 Developmental Account

i. Statement of Assets and Liabilities as on June 30, 2009

Amount in Rupees

2007-08

2008-09

Current assets

Cash and cash equivalents 8.2.1 43,439,480 82,509,456

Advances 8.2.2 37,679,127 35,840,662

Total current assets

81,118,607 118,350,118

Non-current assets

Physical Assets 8.2.3 160,341,960 689,708,068

Deposit Works 8.2.4 739,107,376 517,050,409

Total Non-current assets

899,449,336 1,206,758,477

TOTAL ASSETS

980,567,943 1,325,108,595

Current liabilities

Payable to C&W Mohmand 8.2.5

778,063

Cheques & Bills (Uncashed Cheques) 8.2.6 - 81,584,460

Total Current liabilities

0 82,362,523

Non-current liabilities

Unspent ADP Funds 2006-07

80 -


403 -

Unspent ADP Funds of PA Khyber

5,973,001 -


36,541,000 -

Total Non-current liabilities

42,514,484 0

TOTAL LIABILITIES

42,514,484 82,362,523

RESIDUAL EQUITY 8.2.7 938,053,459 1,242,746,072

TOTAL GRANTS & LIABILITIES

980,567,943 1,325,108,595


ii. Statement of Receipts and Expenditure for the year 2008-09

Amount in Rupees

Object Particulars 2007-08 2008-09

RECEIPTS

a) ADP Fund from Federal Govt. 698,799,000 423,000,000

b) Unspent ADP Funds received from PA

Khyber ) 36,541,000 0

c) Funds received from FATA Sect:

d) FATA DA Own Receipts

i) Bank Profit 0 0

ii) Registration Fee/Tender Form Fee

iii) Other Receipts

Total Receipts 735,340,000 423,000,000

EXPENDITURE

A 0 1 Employees Related Expenses 18,518,107 27,059,005

A 0 2 Project Pre-investment feasibility 43,621,839 15,445,859

A 0 3 Operating Expenses 41,442,545 60,424,934

A 0 4 Pension Contribution 5,491

A 0 6 Transfer (Entertainment & Gifts) 18,074

A 0 9 Physical Assets 32,384,592 7,408,910

A 1 1 Investment

A 1 2 Civil Works

i) Building & Structure 383,275,000

i) Approach Road 144,970,000 32,192,000

ii) Irrigation Works 34,535,893 280,285,225

A 1 3 Repair & Maintenance 50,621 157,220

Permanent Advance 3,282

Total Expenditure 698,798,597 423,000,000

Surplus 36,541,403


iii. Appropriation Accounts 2008-09

Demand No. 164-Development Expenditure of FATA

ADP SECTOR Original

Grant Surrender

Final

Grant

Actual

Expenditure

Excess/

Saving

Total Development (ADP # 1-46)

1-13 Small Dams 356,000,000 55.163 300.837 300,837,492 (492)

14-27 Minerals 200,000,000 97.635 102.365 52,892,570 49,472,430

28-32 Skill Dev 124,000,000 - 124.000 59,877,133 64,122,867

33-37 Industries 80,000,000 42.000 38.000 76,680 37,923,320

38-41 R&D 55,000,000 0.202 54.798 9,044,077 45,753,923

42-43

Physical Planning &

Housing 29,000,000 - 29.000 272,048 28,727,952

44-45 Tourism Dev 1,000,000 - 1.000 - 1,000,000

46 SME 1,000,000 - 1.000 - 1,000,000

Total 846,000,000 195.000 651.000 423,000,000 228,000,000

ADMINISTRATION DEPARTMENT


11.2 Regulation, Rules and Standing Orders

11.2.1 The FATA DA, Regulation 2006 – Amendments Therein.

After the notification of the FATA Development Authority Regulation, 2006 vide SRO 1011(1)

2006 dated 28th September, 2006, the Authority started functioning with effect from 3 rd November,

2006 on appointment of its Chief Executive. Also, vide another notificaotin No. CSF/A&C/C-25/540

dated 09-02-2007, Peshawar was declared as the headquarter of the Authority.

In a meeting held on 9th February 2007, in the Governor‟s House, Peshawar, some

discrepancies were pointed out in the Regulation. For instance, the Chief Executive was not included

in the Steering Committee of the Authority provided under Section 4 of the Regulation. Accordingly it

was decided that the Regulation may be reviewed in consultation with the Advisor to the Prime

Minister for FATA, and a consolidated proposal for amending the Regulation may be finalized.

Accordingly, the proposal for carrying out 13 amendments in various Sections of the

Regulation was referred to the States & Frontier Regions Division, Govt of Pakistan on 06.10.2007

with the approval of the Governor. After some correspondence, the SAFRON Division informed that

the Finance Division has not agreed to the proposed amendments in Section 4(1) and Section 29 and

have also advised SAFRON to consult the Economic Affairs Division. The SAFRON has accordingly

desired that the recommendations of the Steering Committee of the FATA-DA should be obtained in

the matter.

The case has accordingly been placed on the agenda of the next meeting of the Steering

Committee.

11.2.2 The FATA-DA Rules/Standing Orders The “FATA-DA Rules of Business, 2007”, “FATA-DA Employeess Appointment, Promotion &

Transfer Rules, 2008” and “FATA-DA Delegation of Financial Powers & Powers of Re-appropriation

Standing Order, 2007”, have been notified and are presently under implementation. In addition, the

following rules were also prepared, during the year under report, which are under process in the

FATA Secretariat for notification with the approval of the Governor N.W.F.P.

(i) FATA Development Authority Employees Medical Attendance Rules, 2008

During the year under report, the draft Medical Attendance Rules were prepared and placed

on the agenda of the 6th meeting of the Board of Directors, held on 22nd April 2008. The Board

discussed the matter and constituted a sub-committee consisting of Secretary Finance FATA,

General Manager (Finance) FATA-DA, Consultant, FATA-DA and an officer of the Provincial Health

Department to scrutinize the draft Rules and submit recommendations.


The rules were examined by the sub-committee sans the member from the Health

Department, and its recommendations were submitted which were considered in the 7th meeting of

the Board of Directors held on 22nd May 2008 and cleared. The draft rules were accordingly forwarded

to the FATA Secretarait on 16th June 2008 for further processing for obtaining approval of the

Governor and its notification.

The case was submitted for Governor‟s approval by the FATA Secretariat on which the Chief

Secretary N.W.F.P appointed a Committee consisting of Additional Chief Secretary FATA, Secretary

Finance FATA, Secretary Establishment N.W.F.P., Secretary Finance N.W.F.P., Secretary Health

N.W.F.P. and G.M (Finance) FATA-DA to examine the draft rules and put up their recommendations.

The case was accordingly discussed in a meeting held on 21-04-2009. The minutes contained a

couple of decisions which were found not agreeable by the FATA-DA and the Additional Chief

Secretary FATA was approached on 16-05-2009 for reconsideration of the disputed decisions by

giving a chance to the Authority to explain its point of view before the final decision. It is expected that

the recommendaitons of the Committee will be finalized soon and approval of the competent authority

will be obtained accordingly.

(ii) FATA-DA Travelling Allowance Rules, 2008.

The draft “FATA-DA Travelling Allowance Rules, 2008” were also prepared and after an in-

house review these were submitted in the 10th meeting of the Board of Directors held on 03-11-2008

and were cleared. The draft rules were then sent to the FATA Secretariat on 13-11-2008. The case

was discussed in a meeting in the FATA Secretariat held on 13-01-2009 under the chairmanship of

the Additional Chief Secretary FATA, and attended by the Secretary Finance FATA, Secretary (Admn

& Coord) FATA, the Chief Executive FATA-DA, G.M (Finance) FATA-DA & Secretary FATA-DA. It

was decided in the meeting to seek Governor‟s approval to the draft Rules. Accordingly, the case is

under process in the FATA Secretariat for obtaining approval of the Governor, being the competent

authority under the FATA-DA Regulation 2006.

(iii) FATA-DA Employees (Appointment, Promotion and Transfer) Rules.

As indicated above, “FATA-DA Employees (Appointment, Promotion & Transfer) Rules” have

been since notified to facilitate recruitment against the sanctioned posts in the Authority. The draft

T.A. Rules and draft Medical Rules for the Authority‟s employees were also prepared, approved by

the Board of Directors & submitted to the FATA Secretariat for obtaining Governor‟s approval thereon.

The remaining rules pertaining to the service matters including contract appointments, promotion

criteria, quotas, seniority, probation, lien, leave, retirement, gratuity/pension, performance reports,

record of service, joining time, conduct, efficiency & discipline, appeals & representations, benevolent

fund and group insurance etc are also required to be prepared & got notified.

The preparation of above Service Rules has already been taken in hand during the year and

31-12-2009 has been fixed for finalziation of these rules for approval of the Board. The Provident

Fund Rules will also be taken up after the finalization of the Service Rules.

(iv) Accounting Mannual for FATA-DA.


In order to ensure maintenance of complete and accurate books of accounts as required

under Section 36 of the FATA-DA Regulation, 2006, it was decided to prepare a proper Account

Mannual for FATA-DA. Accordingly, the assignment was entrusted under Board‟s approval, to a

reputed firm of Chartered Accountants, at a remuneration of Rs. 0.100 million, in May 2008. The firm

submitted a draft Mannual and a Committee headed by of Consultant, FATA-DA, and G.M (Finance),

FATA-DA, Dy. Secretary Finance, FATA and Secretary FATA-DA as members, was appointed to

examine the draft & submit recommendations.

The Committee held various meetings and examined the document chapter-wise, which

contained 10 chapters dealing with the Budgeting Procedures, Accounting Procedures, Internal and

External Reporting etc. The draft Mannual was reviewed and revised chapter by chapter in the light of

observations of the Committee made in the meetings.

At the close of the year under report, all the major chapters of the document were already

reviewed and the whole assignment is expected to be finalized shortly for submission to the Baord of

Directors for discussion/approval.

11.2.3 Performance of the Steering Committee during 2008-09

One meeting of the Steering Committee was held during the year under review on 12-08-

2008 in which the following important decisions were taken:-

S.No Decisions

1) Meetings of the Steering Committee shall be regularly convened on quarterly basis.

2) Meeting of the committee constituted in the first meeting of the Steering Committee regarding role

of SAFRON viz-a-viz FATA affairs and representation in the FATA DA Board of Directors, be

convened at the earliest.

3) FATA DA should make efforts for joint ventures of Pakistani and foreign investors.

4) Coordination between WAPDA and FATA DA should be ensured on the proposed Bara multi-

purpose Dam.

5) The dam site of Tora Warai in Kurram Agency shall be considered by the FATA DA for feasibility

study.

6) Pilot study be carried out for precious/base metal to see its commercial viability.


11.2.4 Performance of Board of Directors during 2008-09

The Board of Directors met 4 times during 2008-09 on 30-8-08, 3-11-08, 10-2-09 and 28-5-

09. Decision taken/schemes approved in these meetings are given below: -

S.No Schemes approved/decisions taken

1. Detail feasibility study, preparation of PC-Is & design of 25 Nos. Potential Dams in FATA

including installation of Gauges at suitable locations (Revised) ADP # 04 (FATA-DA ADP 2008-

09)

2. Award of consultancy services for feasibility and detail design of 15 Dam sites in Sothern FATA.

3. Extension of facilities of Benevolent Fund and Group Insurance to the Employees of FATA-DA.

4. “Provident Fund” for the Employees for the Federally Administered Tribal Areas Development

Authority.

5. Construction of Shingle roads in Mineral bearing areas of Northern FATA.

6. Construction of Shingle roads in Mineral bearing areas of Southern FATA.

7. Construction of FATA-DA Head Office Building at Hayatabad, Peshawar. (Phase-I) (Revision).

8. Appointment of Assistant Project Director (Accounts), (PSU) Small Dams, FATA-DA.

9. Appointment of Assistant Mining Engineer for the Project „Investigation & Evaluation of

Manganese Prospects in Mohmand & Bajaur Agencies‟.

10. Exploration & Evaluation of Precious stones in Mohmand & Bajaur Agencies.

11. “Construction of 8 KM shingle road from KRUTH to DAND Coal mines (Central Kurram),

Kurram Agency”-A Sub-Project of the umbrella scheme “Construction of Shingle roads in

Mineral Bearing Areas of Southern FATA.

12. Project “Detailed Design of Bara Dam in Khyber Agency” (ADP # 06-2008-09”).

13. Project “Exploration & Evaluation of precious stones and Base Metals in South Waziristan

Agency FATA-DA ADP 2008-09 Sr. #27 (PC-II)”.

14. Appointment of Assistant Mining Engineer for Minerals Deptt: Project of FATA-DA.

15. Adoption of Federal Govt. pay package for FATA-DA Projects Posts.

16. Adoption of Project Manager for the Project “Construction of FATA-DA Headquarter Building at

Hayatabad (Phase-I)”.

17. Appointment of 03 Assistant Geologists for the Mineral Project.

INFORMATION TECHNOLOGY SECTION


11.3 Information Technology Section

The FATA DA Headquarter as well as Projects offices are provided IT services through IT

section. 2008-09 was a busy year as it involved improving the basic IT infrastructure for its offices.

Apart from its day to day IT operations, the Section had some new plans to initiate for the

development of IT.

In this information driven Internet Age, website of an organization has become an important

tool to portray and publicize its image to all stake holders including the public. The FATA DA official

website (www.fatada.gov.pk) is designed to provide details of development projects carried under

various sectors assigned to FATA DA. The website is also providing updated news related to job

openings, tender notices and events related to the authority. Planning is underway to make the

website dynamic and more interactive.

Owing to the benefits of Email communication, all officers at FATA DA Headquarters have

been assigned official email accounts. The IT section is putting in all efforts to strengthen the email

culture in all other FATA DA offices. Almost 90% of officers have successfully adopted email as

means of communication within and outside the organization.

The IT section is actively involved in assisting the Administration Section in hiring IT related

human resource. The Section conducts written as well as practical tests of shortlisted candidates

applying for such posts. In addition, the Administration Section is also supported in procurement of IT

equipments.

Major interventions of FATA DA in FATA are executed through development projects. It was

felt necessary to equip Project Managers with state of the art Project Management tools. This will help

them manage projects more efficiently and effectively. The tool will help them prepare proper and

complete baseline planning, effectively track the various

tasks and create customized reports for the stakeholders to

monitor progress of the projects. For this purpose, training

on Microsoft office Project is underway for the Project

Managers and their IT Assistants. This training will be

followed by practical conversion of five FATA DA projects.

FATA Development Authority is fortunate to be

supported by USAID funded Capacity Building Project

(CBP). Major focus of CBP is to build the IT infrastructure

of FATA institutions. In this respect, the IT Section of FATA

DA was fully involved with M/S Development Alternatives

Incorporated (DAI), the Executing Agency for CBP.

An MoU was signed between FATA DA and CBP on 4th March, 2009. CBP in this MoU has

agreed to provide support to FATA DA in improving its IT infrastructure. The major interventions will

http://www.fatada.gov.pk/


be conducting IT trainings, provide hardware, software and Human Resource to the IT Section of

FATA DA.

CBP has conducted a TNA for assessing the IT related skills of FATA DA. Based on the

results of TNA, 31 employees of FATA DA got basic IT training while 20 officers and their IT

Assistants got training on MS Project software. Five days focused training on Basic IT Skills for the

Agency Coordination officers is being planned. Advanced level trainings are also planned to be

arranged in near future.

CBP has also assisted FATA DA in placing a wired Local Area Network to supplement its

already placed wireless LAN. To improve the Internet services, FATA DA has replaced its DSL

services with Optical Fiber connectivity and increased its bandwidth to 2 MB. CBP is financing major

part of this upgradation.

FATA DA has also received 30 Desktop and 20 Laptop computers from CBP. This has

provided opportunity for all Officers and Office Assistants to use these systems for their office work

which has resulted in an efficient environment overall. Apart from this equipment, CBP is to provide

Servers, Data Backup hardware and Firewalls. A proper IT server room is being set up in the FATA

DA headquarter for this purpose.

The IT Section aims to introduce different IT services that can help automate processes and

enhance the operational capabilities of FATA DA.


CONCLUSIONS Study of this report would reveal that FATA DA has done fairly well so far. This is not an

exaggerated statement when looked from two angles i.e. the brief presence of FATA DA and the

prevailing situation in FATA. Although FATA DA is still quite young but it has left ineffaceable imprints

on the development horizon of FATA. It has not only maintained a strong financial discipline akin to

any mature organization, the officials of this organization were casted in to a strong team of

professionals working with missionary enthusiasm. Despite visible physical threats, officials of FATA

DA have been travelling to remote locations and performing duties in often hostile environments

sometimes without any security cover from the local administration. The only drive is a commitment

to serve and play their bit in the development of people who are still living in caves in this space age

and where cattle and people continue to share drink from the same pond. Satisfaction to have done

something for the hapless area was a major incentive which motivated the team.

In a brief period of its existence, FATA DA has been able to muster wider local support by

establishing its credibility and earned tremendous goodwill of tribals. It is respected for following merit

in selection of sites and valued for integrity in executing development projects. FATA DA holds this

trust of people in high esteem and considers it a precious asset. Similarly the Governor NWFP on

many occasions praised the hard work put in by the FATA DA team. The FATA secretariat has been

extending all possible help whenever approached. The Additional Chief Secretary FATA has been

directing the field officers to consider FATA DA as an integral part and an extended arm of FATA

Secretariat.

The situation in FATA would certainly change and the current anarchic situation would end

one day; this is the strongest belief of FATA DA. The signs of improvement have started appearing in

some areas. Concepts of militancy, deaths and destructions are gradually waning while the urge for

peace and stability rapidly rebounding. Formation of Quomi lashkars in various areas is a harbinger of

this brewing wind of change.

FATA DA foresees tremendous opportunities ahead. It envisions a key role for itself as a

major development actor. It also understands the importance and scope of its mandated sectors in

poverty alleviation. It is cognizant of its responsibilities and feels quite capable of discharging them.

annual report 2008-09 - waterinfo.net.pkwaterinfo.net.pk/sites/default/files/knowledge/fata da...

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