MANAGEMENT FINAL PROJECT INSTRUCTOR : SYED IJLAL HAIDER SUBMITTED BY :M.

HAIDER KHAN ZEESHAN HAIDER MAKEN MUHAMMAD BIN KHALID ALEEM TAYYAB MUHAMMAD JUNAID HASSAM BBA-1F DATE : 04/01/2011

Historical Background
Nature has blessed Pakistan's northern regions and Kashmir valley with striking landscapes of lofty snow clad peaks, sparkling glaciers, lush green meadows, breathtaking valleys, roaring rivers, silvery lakes, garrulous waterfalls, thickly wooded forests, flowers of unbelievable hues and awe inspiring mountain passes. All these combined, make the north of Pakistan, a paradise on earth. It was the morning of October 8, 2005, the fury of the nature that shook the calmness and tranquility of the serene north of Pakistan, brought anguish and woes to the lives of over 3.5 million souls. The earthquake caused massive loss of precious lives as well as livelihood to the victims, while dipping all essential facilities and infrastructure to dust and debris. The Government and people of Pakistan as well as the international community responded in an unprecedented manner to this tragic calamity. The relief activity began, right after the rescue efforts, wherein the Government and people of Pakistan, humanitarian organisations and international community participated enthusiastically to restore life in the affected areas. In a mere six months time, by March 31, 2006, the relentless efforts of the nation, and international community culminated in successful completion of relief and recovery phase that was followed by reconstruction and rehabilitation activities, which are still going on.

Establishment of ERRA
The Government of Pakistan established the Earthquake Reconstruction and Rehabilitation Authority (ERRA) on October 24, 2005 to take up the mammoth task of rebuilding in the earthquake affected regions spread over 30,000 square kilometers of nine districts of NWFP and AJ&K. The nucleus staff of ERRA comprises a hybrid of civil servants, armed forces personnel and international consultants. ERRAs prime task is to strategize and approve projects together with the provision of funds to SERRA and PERRA to undertake the reconstruction and rehabilitation works in their respective areas. The idea behind the creation of ERRA was to bring all efforts and activities, pertaining to post disaster damage assessment, reconstruction and rehabilitation in the affected areas under one umbrella, with a view to providing a fast track and seismically safe reconstruction regimes and solutions.

Mission
ERRAs mission is to Convert this Adversity into an Opportunity by reconstructing the lost and destroyed facilities, while following highest standards of reconstruction and rehabilitation with the obligation to Build Back Better.

Mandate and Role

Main role of ERRA is macro planning, developing sectoral strategies, financing, project approval and monitoring and evaluation. Additionally, it ensures the required coordination and provides facilitation to implementing partners, whereas physical implementation of the projects is the responsibility of respective governments.

Scope of Reconstruction and Rehabilitation

ERRA has intervened in 12 different sectors, 3 cross-cutting programmes, and is required to reconstruct over 13,000 projects, (at a cost of over US $ 5 billion) located over more than 30,000 esq. of nine districts of AJ&K and NWFP.

Earthquake Reconstruction and Rehabilitation Authority Ordinance

To cope with the peculiar circumstances arising from the devastating earthquake of October 8, 2005, the Government of Pakistan established ERRA on October 24, 2005, under an Ordinance. The Authority is responsible for all reconstruction, rehabilitation, early recovery programmes and projects in the affected areas, and towards this end, it is assigned to perform the following functions:

i) To conduct surveys to assess damage and carry out future planning in the affected areas. ii) To formulate a comprehensive umbrella development programme for: Reconstruction of the government buildings and offices, utilities and services, infrastructure, roads, bridges, potable water, drainage systems, health and education facilities, tourism, irrigation and agriculture facilities in the affected areas. Environmental protection and rehabilitation. Restoration of economic activities and livelihood. iii) To prepare resettlement and rehabilitation plan for the affected population in consultation with the respective governments of the affected areas. iv) To approve projects, programmes and schemes, identified, prepared and submitted by the respective governments of the affected areas. v) To take steps for monitoring and evaluation of' the approved projects, programmes and schemes. vi) To prescribe cost effective technologies, building codes or construction guidelines, architectural designs, specifications and construction materials for housing and other buildings in the affected areas to safeguard against future seismic threats. vii) To facilitate the establishment of the reconstruction related industry and businesses in the affected areas in consultation with the respective governments. viii) To perform such other functions supplemental, incidental or consequential to the purposes and functions aforesaid and any other function assigned to it by the Federal Government in accordance with the purposes of this Ordinance. To perform these functions the Authority is empowered to undertake any work, incur any expenditure, procure plants, machinery, services, equipment, vehicles and any other moveable or immovable property and stores required for the implementation of approved development projects, programmes and schemes. It is authorised to seek and obtain from any department or agency (including the armed forces) advice and assistance to discharge its functions.

ERRA Council
The general directions in all matters of policy and administration of the Authority and its affairs are vested in the Council, headed by the Prime Minister of Pakistan, with following composition: Prime Minister of Pakistan Chairperson Prime Minister AJ&K Member Chief Minister NWFP Member Minister for Kashmir

Affairs & Northern Areas Member Finance Minister Member Chairman ERRA Member Deputy Chairman Planning Commission Member Deputy Chairman ERRA Member/Secretary

ERRA Board
Under the provisions of this Ordinance a Board comprising the following is provided for the implementation of the approved policy decisions, plans, programmes, projects and schemes, with such administrative and financial powers as provided in the Ordinance or delegated by the Council: Chairman ERRA Chairperson Deputy Chairman ERRA Member/Secretary Chief Secretary NWFP Member Chief Secretary AJ&K Member Additional Finance Secretary Member (Expenditure) Representative - Ministry of Defence Member Additional Secretary Planning Division Member Additional Secretary Economic Affairs Member Division (EAD) Six Representatives from Civil Society Members The Chairman of the ERRA Board, appointed by the Federal Government, is responsible for the policy matters, performs such functions, and carries out such responsibilities as delegated to him by the Council or the Board. The Deputy Chairman provides strategic guidance, executes prgrammes, carries out operational management, and exercises financial and administrative powers, delegated to him by the Council or the Board, including the powers of the Principal Accounting Officer.

Policy Planning
A comprehensive consultative process is followed, while formulating the policies. All the major donor organisations, whose funds are involved in the reconstruction programmes, are consulted

before conceiving a policy. The draft policies are discussed with the representatives of both the governments i.e. Government of AJ&K and NWFP and subsequently placed before the ERRA Board and/or ERRA Council for the final decision.

Policy Role of Provincial and State Governments

Besides policy formulation, ERRA has restricted its role to developing sectoral strategies, project approval, financing, coordinating, monitoring and evaluating the reconstruction activities in the affected areas. The implementation of the approved strategies is governed through a devolved mechanism with maximum powers resting with the Provincial/State and District governments. At the Province and State level, both the governments have created Provincial Earthquake Reconstruction and Rehabilitation Agency (PERRA) and State Earthquake Reconstruction and Rehabilitation Agency (SERRA), respectively. They act as Secretariats for the Provincial/State Steering Committees. These committees are headed by the respective Chief Secretaries with representation of secretaries of all the relevant line departments and a representative of the Planning Wing of ERRA. These forums have the mandate to approve the Annual Work Plans of their respective governments received by them from each of the affected districts. They have the financial powers to approve any reconstruction project costing up to Rs.250 million. The basic mandate of implementation of all reconstruction projects rests with these forums.

Role of District Governments

The Provincial and State Governments have created District Reconstruction Units (DRUs) in each of the affected districts. These DRUs act as Secretariat to the District Reconstruction Advisory Committee (DRAC), which is headed by the District Nazim in each district of NWFP and Deputy Commissioner in AJ&K with representation of all the relevant line departments of the district and elected representatives. Each DRAC has the powers to approve projects up to Rs.100 million and prioritize the reconstruction activities as per their needs and requirements. They develop the Annual Work Plan and submit the same to PERRA/SERRA, as the case may
be.

ORGANOGRAM

1.Executive Wing
Executive wing, the secretariat of the Deputy Chairman ERRA, is managed by the Chief of Staff (COS). Since its creation, ERRA has passed through certain organizational changes with a view to enhancing its overall efficiency, output and functioning. Most recently executive wings has been re-organized, and it now consists of different offices, which operate under the overall direction and guidance of the COS. Rural Housing, Internal Audit, Coordination Cell and Project Implementation Coordination Unit (PICU) directly report to the COS.

1.1 Rural Housing ERRA's flagship programme of Rural Housing Reconstruction, alter running full steam, is nearing completion and is expected to achieve the best ever completion rate of over 90% in contemporary similar post disaster programmes. After having nearly accomplished the assigned task, the Rural Housing Sector is functioning under a Programme Manager, who is responsible to COS. 1.2 Internal Audit Cell Internal Audit Cell has been created with the objective to examine and evaluate whether ERRA's framework of risk management, control and governance processes is adequate and functioning properly. It is also mandated to ensure financial and operational transparency, to safeguard assets, and to ensure compliance to rules and regulations. The Cell is responsible for maintaining all records and information of ERRA offices, preparing and issuing periodical audit reports to the management, assisting the external auditors to perform their duties in a manner that facilitates independent, impartial and effective professional judgments and recommendations as well as internal audit of ERRA on a regular basis. 1.3 Coordination Cell The Coordination Cell is a part of the Executive Wing. It comprises one Director and two Deputy Directors. It coordinates all internal and external official engagements, meetings of the Chairman/Deputy Chairman with the concerned stakeholders. It documents minutes of the meetings to maintain a record of actions on the decisions taken in such meetings. 1.4 Project Implementation and Coordination Unit (PICU) PICU is headed by a Chief Coordinator; who has Provincial Coordinator in NWFH State Coordinator in AJ&K and one Zonal Coordinator in each district, under his command. The need to establish PICU was felt to eliminate delay caused in successful and timely accomplishment of ERRAs projects in the Earthquake Affected Areas. Major tasks of PICU are trouble shooting and fast tracking the development projects in the earthquake affected areas.

2. Planning Wings
There are four Planning Wings; composition and functions of each Wing is given in the succeeding paragraphs. 2.1 Planning Wing-I (P-I) Headed by a DG, P-I focuses on economic development and micro level planning. P-I is looking after the Social Sectors: Livelihood, Environment, Gender and Transitional Relief Cell (TRC). The Wing, through its Programme Managers, plans, monitors and prepares brief reports on completion of projects while establishing an effective mechanism for monitoring timelines. 2.1.1 Economic Activities Communities Livelihood Rehabilitation Plans (CLRPs). Ensure community-government partnership to identify and implement village level micro projects. Watershed Management. To mitigate damages to watershed and slopes by introducing long term sustainable measures for improved watersheds and stable mountain slopes. Agriculture and Livestock Supports. To construct facilities like veterinary dispensaries, agricultural research centers & laboratories, along with the reconstruction of damaged infrastructure of Agriculture & Livestock Departments. 2.1.2 Social Protection Rural Landless Programme. Provides alternative land and grant for reconstruction of seismically safe houses for people who have lost their land due to landslides of earthquake 2005 or their lands are located in high hazard areas. Targeted Vulnerability Survey (TVS). The Survey was conducted to identify vulnerable people, persons with disabilities, orphans and senior citizens requiring support in earthquake affected areas. Women Development Centre/Social Welfare Complex (WDC / SWC). These facilities are being established in all nine affected districts to provide legal, medical, psychological counseling, referral services and vocational training as well as residential facilities to vulnerable women, children and the elderly. 2.1.3 Gender Equality Gender Team, a part of P-I Wing, focuses on capacity building and provision of technical advice to senior management, programme managers, relevant line departments and parmer organisations for gender mainstreaming in all areas. Gender Team also provides technical advice for the establishment of Women Development Centres (WDCs) Social Welfare Complexes (SWCs), Gender Reconstruction, and Rehabilitation Network (GRRN) in all affected districts. 2.2 Planning Wing-II (P-II)

Headed by a Director General, P-II carries out planning for all construction projects in a cost effective manner. It also develops implementation mechanism to ensure safety of iniastructure being reconstructed. All reconstruction works, including roads, education, health and governance buildings, water & sanitation schemes/projects, power & telecommunication are rmder P-II. The Wing works in liaison with AJ&K and NWFP governments, consultants and contractors. 'lhe Wing encourages consultants and contractors to use fast track latest technologies. 2.3 Planning Wing-III (P-III) Headed by a Director General, the Wing mainly looks after Urban Development/Urban Housing. Moreover, the Wing looks after the matters pertaining to Legal, Board and Council as well as Land Acquisition. 2.3.1 Urban Development ERRA Urban Development Strategy aims at providing a comprehensive and holistic approach for reconstruction and rehabilitation of earthquake affected cities having a level of quality and functionality (with enhanced social services delivery) that existed before the earthquake. The strategy focuses on recovery of damaged buildings and houses, reconstruction of residential areas with standard communication networks, public facilities and structures along with supporting population livelihood through reconstruction of socio-economic infrastructure of cities. Urban Development covers rebuilding of three major cities Muzaffarbad, Bagh and Rawalakot in AJ&K and relocation of Balakot City to Bakryal town , located at a distance of 19 km from the old city, in NWFP. For smooth and effective implementation of AJ&K Urban Development Project, a Steering Committee has been constituted under Deputy Chairman ERRA, which has the mandate to give policy direction to Project Implementation, and to ensure timely and effective coordination of all inputs. 2.3.2 Legal Board and Council Cell. The cell consists of two directorates: Legal directorate, Board and Council Directorate. Legal Directorate is responsible for drafting and developing service regulations for the employees of ERRA and developing procurement rules of ERRA, in consultation with Public Procurement Regulatory Authority. It also undertakes vetting of various legal documents including MoU with foreign governments, domestic and international donor organizations and individuals regarding allocation of development schemes to donors and sponsors. The Board and Council Directorate is a secretariat to the supreme policy- making forums of ERRA including ERRA Council and ERRA Board and ensure implementation of decisions taken in various ERRA Council and Board meetings. It is responsible for handling parliamentary business including preparation of responses and coordination with the Minister-in-Charge of PM Secretariat on questions, resolutions and motions tabled by the members of National Assembly and Senate, with regards to the activities and functions of ERRA. It also coordinates briefings on ERRAs strategies and activities to various Standing Committees of Senate and National Assembly. 2.4 Planning Wing-IV (P-IV)

Headed by a Director General, the Wing has a Special Project Cell, Donor and Sponsors Cell and Disaster Risk Reduction Programme under it. 2.4.1 Special Projects Cell (SPC) Special Projects Cell manages Donors funded mega projects, which are multi-sectoral in nature and do not fall under a single sector. Such mega donor funded projects require planning, withdrawal and reporting procedures that require a specialized management unit. SPC is at the moment handling; i. Saudi Fund for Development Grant for Health, Education and Governance Sectors. ii. Islamic Development Bank funded Integrated Development Project for Shangla& Kohistan. iii. Kuwait Fund for Development Grant for reconstruction of colleges in AJ&K. iv. Japan Bank for International Cooperation (JBIC) firnded projects. 2.4.2 Donors and Sponsors Coordination Cell (D&SCC) Working as a part of P-IV, D&SCC provides a facilitating platform for Donors and Sponsors, foreign embassies and NGOs, desirous of participating in reconstruction and rehabilitation works in earthquake affected areas. Donors and Sponsors Coordination Cell entertains donors/ sponsors request, and approves and allocates projects to the desirous donors/sponsors, after evaluation. Issuance of endorsement letter on completion of work is also D&SSC responsibility. D&SSC maintains a detailed database sponsored projects, and in coordination with the state and provincial governments, makes arrangements for inaugurations and visits of foreign delegations to the EQAAs.

3. Monitoring

and Evaluation (M&E) Wing

Headed by DG Monitoring and Evaluation, the Wing provides real time evaluation and monitoring of ongoing projects and assists in filling gaps by providing technical monitoring inputs. M&E Wing is required to support monitoring and evaluation of ERRA efforts and to provide a set of independent information and analysis on overall progress and effectiveness of reconstruction and rehabilitation process including the social impact. This Wing provides harmonized and robust monitoring and evaluation cover for all stakeholders focusing on results and impacts along with budgets. This not only provides input for mid-course corrections but is also an important tool for accountability. Performance measurement and reporting systems enhance information to all stakeholders, ensuring quality service delivery and success full implementation of strategies. M&E Wing is not a stand-alone activity, it also serves as a decision making tool at all levels.

4. Finance Wing
Finance Wing, headed by a Director General, acts as Financial Advisor to ERRA along with rendering advice on payment of salaries to ERRA employees and payment of funds to ERRA affiliates, i.e. SERRA and PERRA. It acts as a compiler of accounts with following tasks:

i. Payments of personnel and third party claims within the regulatory framework. ii. Reconciliation of accounts with (i) respective DDO (ii) federal treasury (iii) banksand (iv) AGPR. iii. Coordination with statutory audit authorities. iv. Making proposals for re-appropriation of funds. v. Scrutiny of non-development and development estimates. vi. Submission of budget proposals to ERRA Board and ERRA Coimcil for obtaining approval thereof.

5. Senior Management Advisor Finance [SMA (FM)]

SMA (FM) supervises the working of the Project Evaluation Cell (PEC), which examines all PCIs of ERRA projects/schemes to ensure compliance with instructions/guidelines of the Planning Commission. In addition, he oversees and coordinates the development of the new Financial Management Information System (FMIS) in ERRA. Moreover, he also supervises the MRDEA project in addition to rendering advice on broad management and institutional issues as and when required by the ERRA management. 5.1 FMIS Keeping in view the challenges, ERRA's Finance Department has introduced an off`-the-shelf Financial Management Information System (FMIS). This system is capable of processing transactions on real time basis at different locations and has the facility to provide on-line financial reports to strategic management for decision-making purposes. The system has been configured, tested and training has been imparted to various system users. The system is being upgraded by introducing modules for Fixed Assets Management. 5.2 MRDEA Medical Rehabilitation of Person with Disabilities in the Earthquake Affected Areas (MRDEA) is a Rs. 742.41 million project ofERRA, specifically designed to provide comprehensive rehabilitation services to Persons with Disabilities (PWDs) in the earthquake affected areas, which is the biggest project of its kind in Pakistan. Through this Project, ERRA attempts to create and build capacity of PWDs, their families and the community at large. This Project is a combination of Community Based Rehabilitation (CBR) and Institution Based Rehabilitation (IBR). In view of the problems existing in the affected areas the scope of the Project includes infrastructure, training and capacity building both in terms of human resource and equipment that have been designed to cater for the needs of the PWDs and their mainstreaming into the society. 5.3 Project Evaluation Cell (PEC)

The Project Evaluation Cell has been entrusted with the task of scrutiny and clearance of all projects of all the sectors of ERRA. In addition, a number of projects of Social Protection, Environmental Protection and Gender Mainstreaming have also been included in the responsibilities of PEC. All PC-Is, whether falling in the sanctioning competency of District Reconstruction Advisory Committee (DRAC), Provincial/State Reconstruction and Rehabilitation Agency, ERRA Council/ERRA Board or ECNEC are scrutinized in the PEC.

6. Administration Wing
Headed by Director General Administration, the Wing has been recently restructured to deal with Administrative and Procurement matters, Security, MIS and Intern & Volunteer Programmes. Administration Wing looks alter overall administrative issues of the Authority including budget, accounts, transport and procurement of all types of equipment and human resource. The Wing is also responsible to cater for communication needs of the Authority through Management Information System Cell.

7. Media Cell
Media Cell, headed by an Advisor; was created to project the achievements of ERRA, and to handle the press issues on daily basis. The main responsibilities of the Media Cell, which works directly under the Deputy Chairman and also has a direct linkage with the Chairman, are publicity and projection of ERRA's performance, monitoring of print and electronic media in the form of press conferences, interviews of Chairman, Deputy Chairman, other officials, and the visits of media in field.

8. Knowledge Management Cell (KMC)

KMC, headed by an Advisor, manages knowledge by systematic processing and documenting information, experiences, lessons learnt and events as a part of historical evidence. This Cell also directly works under the Deputy Chairman. It identities and highlights accomplishments and challenges faced by ERRA, and the perceptions of stakeholders. It disseminates knowledge by developing a range of products for diverse audiences in the form of Monthly News Bulletin, Quarterly Newsletter, Annual Review, and preparing Sectoral Case Studies. KMC also initiates linkages with research and educational organizations/institutions both at national and at international level, and ensures knowledge sharing and dissemination with partner organizations using electronic database and ERRA Website as a knowledge portal.