Pakistan: MFF - Sindh Cities Improvement Investment Program (Facility Concept)

Sovereign Project | 37220-013

Summary

The combination of physical and non-physical investments under the Program aim to improve quality, continuity and coverage of urban infrastructure services in water supply, wastewater, and SWM while incentivising and supporting effective management and sustainable financing of urban service providers. This in turn will help improve quality of life for residents in Sindh?s provincial cities, including the poor, and address growing regional development imbalances within Sindh Province.

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Project Name MFF - Sindh Cities Improvement Investment Program (Facility Concept)
Project Number 37220-013
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0028-PAK: MFF - Sindh Cities Improvement Investment Program (Facility Concept)
Asian Development Fund US$ 150.00 million
Ordinary capital resources US$ 150.00 million
TA 7209-PAK: Improving Efficiency and Accountability of North Sindh Urban Services Corporation Limited
Technical Assistance Special Fund US$ 2.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Water and other urban infrastructure and services - Transport policies and institutional development
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The combination of physical and non-physical investments under the Program aim to improve quality, continuity and coverage of urban infrastructure services in water supply, wastewater, and SWM while incentivising and supporting effective management and sustainable financing of urban service providers. This in turn will help improve quality of life for residents in Sindh?s provincial cities, including the poor, and address growing regional development imbalances within Sindh Province.
Project Rationale and Linkage to Country/Regional Strategy
Impact Improved health, quality of life in and economic competitiveness of participating towns
Project Outcome
Description of Outcome Increased quality, reliability and coverage of water supply, wastewater and solid waste management services in participating towns
Progress Toward Outcome

Loan and Project Agreements signed on 6 February 2009. Loan effectiveness on 6 March 2009.

Institutional reforms underway with good progress on establishment of North Sindh Urban Services Corporation Ltd.(NSUSC), a regional utility to focus on WSS and SWM service delivery. Too soon to report on outcome pending investment in infrastructure to support institutional and management reforms. However, improvement in services observed (hours water provided and frequency of street sweeping) with simple improvements in services management through NSUSC. Future Urban Services Corporations anticipated for Central and South Sindh.

Implementation Progress
Description of Project Outputs

Part A. Improved Urban Service Management and Planning

A.1 Creation of effective and sustainable urban services providers

A.2 Urban Policy and Strategic Planning Unit (UPSPU/Urban Unit) sustainable; Program Support Unit

sustainable throughout Investment Program implementation, providing effective support to Local Government Department/TMAs

A.3 Performance-based contracts with private sector pursued

Part B: Investments in Water Supply and Wastewater Management Improvements

B.1 Rehabilitation and expansion of existing piped water supply systems, water works and treatment facilities in participating towns; groundwater quality monitoring system developed in participating towns

B.2 Rehabilitation and expansion of sewerage and drainage networks and wastewater treatment completed in participating towns

Part C: Investments in Solid Waste Management Improvements

C.1 Development of sanitary landfills and provision of secondary collection (including equipment and services)

Status of Implementation Progress (Outputs, Activities, and Issues)

Loan and Project Agreements signed on 6 February 2009. Loan effectiveness on 6 March 2009.

North Sindh Urban Services Corporation Limited (NSUSC) operational; additional Urban Services Corporations planned in Central and South Sindh.

Urban Unit notified in 2009; positions advertised and operationalization expected in 2011. PC-2 approved.

Performance-based contracts to outsource small services being developed for NSUSC.

Infrastructure investments in WSS/SWM in 6 TMAs ongoing. Tranche 2 investments likely in 2012, with focus on central Sindh.

Geographical Location First Phase: Urban areas in Northern Sindh (Sukkur, New Sukkur, Rohri, Larkana, Khairpur and Shikarpur); Subsequent phase location to be determined as per agreed criteria
Summary of Environmental and Social Aspects
Environmental Aspects

Category B

Initial environmental examinations show positive net environmental benefits. An environmental assessment and review framework has been prepared to guide environmental assessment of subprojects during implementation.

The provision of potable piped-water supply plus wastewater and SWM improvements will improve the environment in each participating town. The design involves simple, appropriate, low-cost technology and does not pose any significant adverse environmental consequences. Potential negative environmental impacts for each project are mainly short-term in nature during the construction period and can be easily minimized by the proposed mitigation measures and environmentally sound engineering and construction practices. An environmental assessment and review framework (EARF) was prepared following ADB procedures. For each PFR, the USCs will prepare initial environmental examinations (IEEs) or environmental impact assessments for each subproject or for groups of similar subprojects in the same subsector, as appropriate. The IEEs for the first tranche show no significant adverse environmental impacts. As these IEEs, including environment management plans, were prepared based on field reconnaissance survey and secondary reports, they will be improved during the detailed engineering design stage. ADB's review and clearance of the revised subproject IEE, including the environment management plan, will be a condition precedent for release of relevant tender documents.

Environmental subproject selection criteria ensure that the Investment Program will not have significant negative environmental impacts and will have no impacts on environmentally sensitive areas. Impacts that are potentially significant and/or irreversible will be avoided. Potential negative environmental impacts of typical subprojects are expected to be mostly localized and temporary. These impacts can largely be avoided through proper subproject design (particularly site selection) or through appropriate choice of water and wastewater treatment technologies and process design parameters. Alternatively, they can be mitigated through proper implementation of mitigation measures and environmental management. The EARF will help to ensure compliance with applicable government and ADB environmental requirements and guide the design and implementation of future subprojects. The safeguards cell of each USC will have an environmental safeguard specialist who, with assistance from an international environmental consultant, will apply the EARF. Training will be conducted by the international consultant to pertinent USC, PSU, and TMA staff.

ADB Safeguards team provided Safeguards training to NSUSC and PSU staff in April 2010.

Involuntary Resettlement The Investment Program will minimize resettlement impacts by prioritizing rehabilitation and optimizing work within existing facilities. New construction is proposed on vacant government land where feasible. To ensure compliance with Government and ADB policies and requirements on involuntary resettlement, a land acquisition and resettlement framework (LARF) has been prepared in accordance with ADB's Policy on Involuntary Resettlement (1995), the applicable laws and regulations of Pakistan and Sindh Province, and the operational procedures for MFF processing. The LARF will guide the implementation of subprojects, outlining the objectives, policy principles, procedures for land acquisition (if required), compensation, and other assistance measures for affected persons. Land acquisition and resettlement plans (LARPs) for subprojects in tranche 1 is expected to have non-significant impacts and the tranche is categorized as B; short LARPs have been prepared accordingly. Appraisal of successive PFRs will require preparation of LARPs for all subprojects with land acquisition and resettlement issues, to be presented for ADB approval with submission of the PFR.
Indigenous Peoples The subprojects in the first tranche of the MFF will have no impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive stakeholder consultations have been carried out under the PPTA in 2005 and 2006; further consultations with all stakeholders, including nongovernment organizations, is ongoing. Recent workshops with stakeholders held 23 January 2008 following smaller focus group meetings in December 2007. Workshop with TMA Nazims and TMA staff held 25 January 2008. Further workshops and meetings with local taluka councils held from March - August 2008.
During Project Implementation Under tranche 1, North Sindh Urban Services Corporation (NSUSC) is consulting as required on safeguard matters. NSUSC has organized consultations with TMA staff for deputation to NSUSC and with the media. Citizens Report Card and Customer Serivce Centers having extensive contact with stakeholders is supported. Consultations in North Sindh are documented on NSUSC website at www.nsusc.org.pk.
Business Opportunities
Consulting Services Consultants will be selected and engaged using ADB's quality-and cost-based selection procedures and/or least cost selection procedures in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Quality -based selection may be required in cases where the technical expertise is the overriding requirement. In some cases where it can be reasonably justified, single source selection may be necessary. Each respective entity, the Program Support Unit, Urban Unit, LGD, and the NSUSC or other USCs, will be responsible for processing consultant recruitment, supervising and monitoring consultants' work. Logistical support will be provided to the consultants by the Program Support Unit, Urban Unit, LGD and/or NSUSC/other USCs; outputs will be reviewed and shared among the various entities, as appropriate.
Procurement Procurement financed from the ADB loans under the MFF will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International Competitive Bidding (ICB) procedure will be followed for civil works contracts estimated to cost $5 million or more. Civil works contracts estimated to cost less than $5 million will be procured under national competitive bidding (NCB)[Government of Sindh tendering procedures]. Single-stage two-envelope bidding procedure with post-qualification will be adopted for all ICB and NCB civil works contracts under the Investment Program. ADB has reviewed Pakistan's standard bidding documents and procurement procedures that are used for NCB (civil works and goods) and found them to be consistent with ADB requirements. Water supply and wastewater contracts that may involve civil works combined with supply and installation of equipment and goods will be considered as civil works contracts, regardless of the proportion of costs associated with equipment or goods. ICB procedures will be used to procure goods and services estimated to cost $1,000,000 or more. NCB procedures will be followed for procurement of goods and services estimated to cost less than $1,000,000. For specialized equipment, such as proprietary software and small materials contracts valued less than $100,000, ADB's shopping procedures may be followed.
Responsible ADB Officer Mian S. Shafi
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Planning & Development Department, SindhM. Hanif Channapd.scip@gmail.comBungalow No. D-45, Clifton Blk -1, KDA Scheme-1, Karachi
Timetable
Concept Clearance 30 Jun 2005
Fact Finding 22 Jan 2008 to 04 Feb 2008
MRM 02 Jun 2008
Approval 03 Dec 2008
Last Review Mission -
PDS Creation Date 23 Feb 2006
Last PDS Update 29 Sep 2014

MFF Facility Concept 0028-PAK

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 400.00 Cumulative Contract Awards
ADB 300.00 - 0.00 0.00 %
Counterpart 100.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

TA 7209-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2008 19 Feb 2009 19 Feb 2009 30 Nov 2012 31 Dec 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,500,000.00 0.00 400,000.00 0.00 0.00 0.00 2,900,000.00 03 Dec 2008 2,414,844.16

Evaluation Documents

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