Pakistan: Sindh Cities Improvement Investment Program - Tranche 1

Sovereign Project | 37220-023

Summary

ADB is helping the Pakistan province of Sindh improve water and sanitation infrastructure in secondary cities under a multitranche financing facility. The project supports urban sector reforms and capacity development, and priority investment in water supply, wastewater, and solid waste management. The first tranche focuses on six towns: Sukkur, New Sukkur, Rohri, Larkana, Khairpur, and Shikarpur.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Sindh Cities Improvement Investment Program - Tranche 1
Project Number 37220-023
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2499-PAK: MFF - Sindh Cities Improvement Investment Program - Project 1
Asian Development Fund US$ 38.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Finance - Inclusive finance

Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management - Urban water supply

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 should 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 Sindh's second-tier cities are under increasing stress of population growth and urban poverty. The provision of urban infrastructure and services has not kept pace with the population. Inadequate planning and management of infrastructure services keeps costs high and quality low while impeding Sindh's economic competitiveness. Deteriorating urban services add to business costs, damage the urban environment, diminish the quality of life, and discourage potential investment. Devolution reforms have had disappointing effect since 2001. While providing scope for more effective service provision, improvements are hindered by continuing overlaps and fragmentation of responsibilities between the taluka municipal administrations (TMAs) and provincial-level agencies. Alternative approaches to service provision, including infrastructure planning and construction, are needed to address the challenges facing Sindh's second-tier cities. Service delivery needs to be separated from system regulation and political interest. Service provision needs to be progressively placed on a commercial and self-sustaining basis, leveraging private sector expertise and incentive structures as appropriate.
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 The loan closing date was extended from 31December 2013 to 30 June 2014 to enable completion of the civil works contracts but two major civil works contracts for rehabilitation of 3 water treatment plants and waste water facilities, and improvement of water supply system in selected towns were still incomplete at the loan closing date of 30 June 2014.
Implementation Progress
Description of Project Outputs

NSUSC provides effective and more sustainable services in participating towns

More informed urban policies and planning

Timely and transparent operations support funding for NSUSC to cover eligible shortfall

Improved water supply, wastewater and solid waste management services in participating towns

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

Output 1:NSUSC provides effective and more sustainable services in participating towns

Progress:

The performance of NSUSC has been better compared to that of the tehsil municipal administrations (TMA). However, it is neither of the desired standards, nor is sustainable at the moment.

Output 2:More informed urban policies and planning

Progress:

No significant work on improved urban planning and institutinal reforms has been witnessed under the Project.

Output 3: Timely and transparent operations support funding for NSUSC to cover eligible shortfall

Progress:

NSUSC has been getting the operations support funding from ADB during the Project implementation period.

Output 4: Improved water supply, wastewater and solid waste management services in participating towns

Progress:

There is some improvement in the provision of municipal services under Tranche I, though not upto the envisaged levels. The EA has reported the following achievements;

(i) Increase in households with Piped Connections from basline of 37% to 45% at project completion.

(ii) Increase in households with access to Solid Waste Collection from baseline of 37% to 70% at project completion.

(iii) Increased in waste collection from baseline of 46% to 65% at project completion.

A Project comletion review Mission will be fielded in August 2015 to assess proeject performance and validate the above achievements.

Geographical Location First tranche focus on urban areas in 6 towns: Sukkur, New Sukkur, Rohri, Larkana, Khairpur, and Shikarpur
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

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. The Investment Program has been categorized as B for the purposes of environmental safeguards. 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) prepared following ADB procedures is in Supplementary Appendix L of the RRP. 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 (Supplementary Appendix M). 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.

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 Safeguard Policy Statement (2009), 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. A summary LARF is in Appendix 15, and the full LARF is in Supplementary Appendix K. 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. The subprojects in the first tranche of the MFF will have no impact on indigenous peoples.
Indigenous Peoples Tribal communities existing outside the cultural and legal mainstream of Pakistan society are not present in the SCIP areas. Religious minorities (Hindu upper and scheduled castes and Christians) are present in program aras, but are not anticipated to be negatively impacted.
Stakeholder Communication, Participation, and Consultation
During Project Design

Stakeholder consultations were held throughout the design stage in a total of 14 taluka municipal administrations. At provincial level, several workshops were held with provincial government departments, local government officials, community stakeholders, and nongovernment organizations. At taluka level, focus group discussions involved representatives of schools; labor, women, and religious groups; and the business sector. A socioeconomic survey helped to augment information collected during consultations, including willingness to pay for services.

As project preparation developed and the current design of SCIP emerged, additional consultations were held in North Sindh and tranche 1 towns. Taluka councils were consulted multiple times and passed resolutions to participate in SCIP. Public consultations indicate broad support for the combination of reforms and investment. Further, willingness-to-pay surveying was done in 2008 following ADB guidelines.

During Project Implementation The Project is supported by a piggy-backed TA which included subcomponents for activities on public awareness and outreach, public monitoring of services, and customer relations, and urban service company capacity development.
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). 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 of 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 Pakistan Resident Mission
Executing Agencies
Planning & Development Department, SindhM. Hanif Channapd.scip@gmail.comBungalow No. D-45, Clifton Blk -1, KDA Scheme-1, Karachi
North Sindh Urban Services CorporationImplementing Agency
Bungalow no. A14, Sindhi Muslim Society,
Airport Road, Sukkur, Pakistan
Sindh Cities Imp't Program Planning & Devt DeptImplementing Agency
House No. D-45, KDA Scheme No. 5,
Block 1, Clifton Karachi, Pakistan
Timetable
Concept Clearance 30 Jun 2005
Fact Finding 22 Jan 2008 to 04 Feb 2008
MRM 02 Jun 2008
Approval 19 Dec 2008
Last Review Mission -
PDS Creation Date 11 Apr 2007
Last PDS Update 27 Jul 2015

Loan 2499-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2008 06 Feb 2009 06 Mar 2009 31 Dec 2012 30 Jun 2014 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 38.00 19 Dec 2008 38.23 0.00 98%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 19 Dec 2008 37.17 0.00 95%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - Satisfactory - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Sindh Cities Investment Improvement Program - Tranche 1: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
Sindh Cities Investment Improvement Program - Tranche 1: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
Sindh Cities Investment Improvement Program - Tranche 1: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Dec 2013
Sindh Cities Investment Improvement Program - Tranche 1: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jun 2013
Sindh Cities Improvement Program: Draft Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Mar 2013
Sindh Cities Improvement Investment Program: Semestral Progress Report (January-June 2012) Environmental Monitoring Reports Jun 2012
Sindh Cities Improvement Investment Program: Semestral Progress Report (July-December 2011) Environmental Monitoring Reports Dec 2011
Sindh Cities Improvement Investment Program: Semestral Progress Report (January-June 2011) Environmental Monitoring Reports Jun 2011
Sindh Cities Improvement Investment Program: Quarterly Progress Report (August-November 2010) Environmental Monitoring Reports Nov 2010
Sindh Cities Improvement Investment Program: Quarterly Progress Report (April-June 2010) Environmental Monitoring Reports Jun 2010
Sindh Cities Improvement Investment Program: Shikarpur Sanitary Landfill Resettlement Plans Aug 2008
Sindh Cities Improvement Investment Program Environmental Assessment and Review Framework Aug 2008
Sindh Cities Improvement Investment Program Resettlement Frameworks Aug 2008
Sindh Cities Improvement Investment Program: Khairpur Sanitary Landfill Resettlement Plans Aug 2008
Sindh Cities Improvement Investment Program: Sukkur Area Sanitary Landfill at Rohri Resettlement Plans Aug 2008

Evaluation Documents

See also: Independent Evaluation

No documents found.


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