Project Description

It involves establishment of a collection point and a cold storage having the following facilities:

Fruit Shed
Vegetable Shed
Auction Shed
Shops
Weigh Bridge
Market Office
Support Offices
Cold Storage having capacity of 1200 Tons
Access Roads
Water Supply & Solid Waste Collection

Location
Batkhela, NWFP

Land Area
8.36 Acres (provided by NWFP Government)

Project Cost (approved)
Rs. 39.490 million

Date of Approval
22-09-2004

EDF Approved Funds
Rs. 36.550 million

Management Set-up

A private limited had been registered with SECP to implement and operate the project. The Board of Directors consists of the directors from PHDEB, NWFP Agriculture Department, TDAP and growers. The day to day affairs of the project will be run by staff to be hired from the market.

Projected Financial Results

The project is expected to generate annual average revenue of Rs. 10.30 million. It is expected to meet its recurring cost through the internal revenue generation and will have a pay back period of 8.4 years.

Current Status

Due to delay in start up of implementation because of various reasons, project cost has considerably increased. Therefore, project execution has been split in two(2) phases. First phase will be restricted to construction of marketing infrastructure, while second phase will cover construction of cold storage building and installation of machinery and completion of left over civil works.

The preparation of Drawings and Tender Documents is presently held-up due to law and order situation in the area. Soil testing for assessing bearing capacity of earth has just been carried out and it is expected that Drawings and Tender Documents may be ready in end March 2008. However, the physical work will only start when conditions in the area improve.

For implementation of Phase II , private sector investors are invited to collaborate with PHDEB on mutually agreed terms. One of the option could be lease of land to the potential investor who will build and operate the cold store on commercial basis.

Expected Project Benefits

• Increased Commercial Activity : The establishment of wholesale market and cold storage facilities would enhance the pace and volumes of business by providing market place for commercial transactions for the domestic and international trade.

• Market Price Stabilization : With appropriate market infrastructure, the supplies would be regulated by moving supplies from surplus to deficit areas and also by holding surplus in cold store and releasing when there is a need. These factors will help create market equilibrium and ultimately price stability to the advantage of both the farmers as well the consumers.

• Increased and Extended Product Availability : Reduction of waste will directly enhance availability of the produce. Further, the cold storage facilities would result in supplies during off-season which otherwise may not be possible.

• Improvement of Quality of Foodstuffs : Timely placement of products in the cold storage will help preserve their quality and improve shelf life. It will also avoid food contamination caused by microbial activity thus assuring availability of quality food products.

• Employment Opportunities : The development and operation of the proposed physical infrastructure will not only create direct jobs but indirect jobs as well resulting in improved per capita income and ultimately a better living standard of people of the area.