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Arshad Public School (azad Kashmir)
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Roohi Abdullah



Joined: 07 Oct 2005
Last Visit: 08 May 2007
Posts: 4
PostPosted: Tue May 08, 2007 11:42 am    Post subject: Reply with quote

Khurram raises a good point. Asset (school building) would depreciate over the life (20-30) years. However, that being said, in Pakistan of prime value is the land not what has been built on it. And land price would appreciate over time. Apparently, we cannot quantify the social gains of the project.

Investment is (greater than/less than) children educated

I think as long as he is not selling the land and the the investment of 5,000-10,000 dissolves itself in the community over 20 years then I think the social gains would equal the investment cost.

Maybe putting a clause that he should not sell the land for a minimum of 20 years.

Best,

R.
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Tarim Wasim



Joined: 28 Jan 2005
Last Visit: 17 Apr 2011
Posts: 160
Location: San Francisco
PostPosted: Tue May 08, 2007 3:28 pm    Post subject: Reply with quote

You guys raise a good point. The depreciation should match the actual useful life of the structure. I think we should pick a value between 20 and 30 years (i.e. 3% to 5% a year of depreciation) and specify the formula very clearly in our contract.

As for appreciation, it will be driven entirely by the land value, since the value of a building depreciates over time. In my view, Basharat deserves to keep any appreciation in value since he is presently the land owner. We are only constructing the building, so we should get reimbursed only for its remaining value.

I also take a lot of comfort from two others facts:

1) We will have approval rights on any sale per the Trust agreement, and
2) The Trust agreement will require that this land can only be sued for a school unless ADP approves it

Best,
Tarim
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Khurram Jamali



Joined: 12 Jun 2005
Last Visit: 10 Oct 2011
Posts: 78
Location: Beijing, China
PostPosted: Tue May 08, 2007 11:58 pm    Post subject: Reply with quote

Hey guys,

I agree - depreciation over 20 - 30 years would satisfy me as well. Let's try to spell this out beforehand so that no issues arise.

Best,

Khurram K. Jamali
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Mubarik Imam



Joined: 08 Feb 2005
Last Visit: 28 Aug 2011
Posts: 82
Location: San Francisco, CA
PostPosted: Thu May 10, 2007 2:22 am    Post subject: Reply with quote

I am comfortable with only taking into account depreciation and not worrying about any appreciation of the land. I agree that ADP shouldn't benefit from any appreciation of the land as our social investment is to provide education and ensure that the building is put to good use not profit from it.

5% depreciation would mean the building investment (~$18000) is worth ~$4000 after 30 years. Does that sound reasonable to you guys?

Thanks,
Mubarik
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Khurram Jamali



Joined: 12 Jun 2005
Last Visit: 10 Oct 2011
Posts: 78
Location: Beijing, China
PostPosted: Thu May 10, 2007 4:21 am    Post subject: Reply with quote

I am completely on board with just a depreciation rate of 5%
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talha mujaddidi



Joined: 20 May 2006
Last Visit: 08 Oct 2007
Posts: 7
Location: karachi, pakistan
PostPosted: Thu May 10, 2007 4:55 pm    Post subject: Reply with quote

the project seems fine to me, my only concern is the basic question of credibility of the individual and his future intent.
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Tarim Wasim



Joined: 28 Jan 2005
Last Visit: 17 Apr 2011
Posts: 160
Location: San Francisco
PostPosted: Sat Jun 09, 2007 7:03 pm    Post subject: Reply with quote

Just an update in case folks were wondering what was ging on with APS. Natasha and my father have been working with Basharat to develop an approproiate building plan and agree on a Trust agreement. Attached are draft versions of the building plan and the agreement. Next step is for Basharat to get the plan signed off by an architect and the local authorities, and for Natasha to have a lawyer take a look at the Trust agreement. We are hoping to arrange a site visit and approve the project some time in July.

Best,
Tarim
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Tarim Wasim



Joined: 28 Jan 2005
Last Visit: 17 Apr 2011
Posts: 160
Location: San Francisco
PostPosted: Fri Aug 24, 2007 1:15 am    Post subject: Reply with quote

I spoke to my father today on this. Here's the update:

1) He spoke to Basharat this week. Basharat is comfortable with our proposed bulding plan. Since municipal jurisdiction does not extend to the village, there are no official approvals required.

2) My father will have an architect flesh out the construction details since those will be needed by the contractor to give an estimate.

3) My father will plan on visiting Muslandy in the next week to 10 days with the goal of accomplishing the following:
- Confirm the # students and the quality of the education being provided
- Talk to parents on how the school is perceived by the community and what sort of community involvement exists. He will also explain that the funding is being given solely for a school building that will be for the benefit of the community (rather than Basharat's personal gain).
- Talk to a contractor that Basharat will line up and hopefully get the budget to under Rs. 1,000 per sq ft.. This will drive the total construction budget (we are expecting $25k+).
- Finalize the details of the Trust Agreement, including selecting a 3rd trustee from the community (probably the Nazim). Major decisions on the property will need the vote of 2 of the 3 trustees, one of which has to be the ADP rep.
- Determine the appropriate milestones to stage our funding

4) Either during or right after his visit, he will report back to us on his findings. We will need a fairly quick ADP vote on the project to make a final decision then, so that a second trip is not necessary if we are going ahead.

5) Once he has sign-off from us, my father will go ahead and execute the Trust Agreement and arrange for delivery of the first tranche of funds.

I will keep folks posted on timing of the visit. Please do let me know your thoughts, especially on what else we would like investigated during the site visit.

Best,
Tarim
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Tarim Wasim



Joined: 28 Jan 2005
Last Visit: 17 Apr 2011
Posts: 160
Location: San Francisco
PostPosted: Thu Sep 06, 2007 6:49 pm    Post subject: Reply with quote

Folks,

I'm happy to announce that ADP approved funding for the reconstruction of Arshad Public School in Azad Kashmir this past week. Based on our site visit, we felt comfortable that there was a strong need for rebuilding a school for the 250-300 children currently studying in temporary shelters. We have initially committed $20,000 to the project, though the final budget is expected to be around $25k-$30k based on construction rates in the area. Work will commence at the end of September and is expected to be completed by March '08. I am attaching a copy of the Trust agreement, description of key terms, highlights of the site visit and a couple of pictures (there will be more coming).

Key Funding Terms
- Land for building donated by school owner (Basharat) to a new Trust called the Ali Asghar Foundation
- $25-$30k to be used for a 4 classroom school building. The budget reflects higher construction costs due to the remoteness of the village (see below)
- Funding will go in 3-4 tranches based on achievement of construction milestones. The first tranche of $3,500 is expected to go by mid-September.
- A Joint Secretary from the state government accompanied my father on the visit and has agreed to help us with periodic monitoring of construction.
- Basharat's salary as Principal has been set at Rs. 20k per month. All other income has to be used for the school's benefit.
- Sale of property will require ADP consent as well as reimbursement of our donated amount plus accrued interest

Site Visit Highlights
- Muslandy village has 4-5k people and is located 16km from Muzaffarabad. Requires travel by jeep followed by 20-25min of rugged hiking.
- Fairly neglected area. Roads from Muzaffarabad were repaired on a self-help basis after the earthquake
- Co-ed school with grades 1 to 6. 250-300 students pay Rs. 100/mth ($1.50) to study. Poorer students study for free or on subsidized rates.
- 16 teachers all belong to the village and are mostly high school graduates.
- Punjab and AJK text book board (govt) books are used
- Currently housed in three different locations after the original building was destroyed. Combination of makeshift shelters and dilapidated tents.
- No other schools in the area except for a cheaper government school which is inaccessible and apparently has only one teacher.
- Met 8-10 fathers of students. All were grateful to Basharat for running the school and eager to have their kids become literate.
- No junior or high schools in the village. Only option is for family to move to Muzaffarabad if they want to continue their child's education.

A big thank you to the volunteers who worked so hard (and long) to get this to the finish line. This was an atypical project for ADP in that the school is not run by an NGO. As a result, Natasha, Sajjad and my father (Wasim Ahmad) did a lot more legwork than usual, from having the building plans drafted to setting up a new Trust. I'm very proud of the work that they put into this.

We'll plan to update everyone on progress in the coming months. If you have questions in the meanwhile, please feel free to write to me.

Best,
Tarim
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Tarim Wasim



Joined: 28 Jan 2005
Last Visit: 17 Apr 2011
Posts: 160
Location: San Francisco
PostPosted: Thu Nov 22, 2007 1:11 pm    Post subject: Reply with quote

Just a quick update: the first tranche of the APS funding (Rs. 2 lacs) was received by Basharat on Monday. The first phase of construction (plinthe level) should be completed by end of December.

I am planning to visit the construction site during my trip to Pakistan around then.

Best,
Tarim
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