Pakistan: Sindh Cities Improvement Investment Program - Tranche 2

Sovereign Project | 37220-033 Status: Approved

Summary

The project focuses on priority infrastructure identified by North Sindh Urban Services Corporation Ltd (NSUSC) based on existing master plans and ongoing master planning exercise in Ghotki, Jacobabad, Khairpur, New Sukkur, Rohri, and Shikarpur.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Sindh Cities Improvement Investment Program - Tranche 2
Project Number 37220-033
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2975-PAK: Sindh Cities Improvement Investment Program - Tranche 2
Ordinary capital resources US$ 25.10 million
Loan 2976-PAK: Sindh Cities Improvement Investment Program Tranche 2
Asian Development Fund US$ 74.00 million
Strategic Agendas Environmentally sustainable growth
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 project focuses on priority infrastructure identified by North Sindh Urban Services Corporation Ltd (NSUSC) based on existing master plans and ongoing master planning exercise in Ghotki, Jacobabad, Khairpur, New Sukkur, Rohri, and Shikarpur.
Project Rationale and Linkage to Country/Regional Strategy 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 provincial cities, including the poor, and address growing regional development imbalances within the project area.
Impact Improved health, quality of life in and eocnomic 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 Due to delay in award of consultancy, works, and goods contracts, the progress towards outcome is also affected. The Project faced startup delays of about one and a half year. Main reason for the delays was lack of political will and ownership of the Project and inefficient board and management.
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

Management structure and capacity for WSS operations improved

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

The year 2015 saw a substantial improvement towards the project implementation. Managerial staff of NSUSC was also filled. However, the key positions of Managing Director, Chief Financial officer, Director Operations, and Director Capital Works are yet not filled. Currently an Acting Managing Director is available though.

The critical consultancy contracts of Independent Verifer, and Construction Supervision of Sukkur Intake were awarded. The most critical contract of A-2 - Design and Supervision of Tranche II works were negotiated with the top-ranked consultants, and later on awarded in January 2016. The firm mobilized in February 2016.

One ICB contract for Goods (Solid waste management equipment) worth of $5 million dollar was approved. Moreover, nine packages of shopping of goods (solid waste and waste water management equipment) were also approved for a cumulative value of $1.5 million. Four, out of seven Individual Consultants for PSU were also recruited.

Bidding on two ICB works contracts was done, but only one bid was received in each case, and these bids were non responsive. Hence these contracts will be re-advertised.

The NSUSC's Annual Operation Plans for 2014-2015 and 2015-2016 were received and approved. Long outstanding APFS for FY 2014, and AFS of NSUSC for FY 2012, 2013, and 2014 were also received in 2015. APFS for FY 2015 also received in January 2016.

To improve the Project implementation pace, the following actions (to be taken within next three months) were agreed with EA and IA of the Project as well as GoSindh during loan review mission of Feb 2016.

1. GoS to empower the BOD to elect independent members and take all decisions related to NSUSC.

2. Hire Senior management of NSUSC by 31 March 2015

3. Revision in AoA to make the BOD size manageable, and redefine shares of each city.

4. Separate the BOD (with reduced members) from the general body

5. Induct five Private Sector Nominees on merit and a Chairman with the highest profile in consultation with ADB.

6. deploy the performance benchmarking and monitoring system at each level of service (management, operations and field staff) for each service (water, wastewater and SWM) and different operations of these services (primary secondary and tertiary.

7. Finalize the TOR of the Consulting Package (A3-I) to develop business systems and procedures, further improve performance and system (MIS, M&E, Finance and Operations.

8. Restructure existing tariff and introduce tariff for waste water disposal and solid waste collection from households.

9. Reassess the investment requirements for a complete system overhaul and request relocation of loans proceeds and extension in loan closing date.

10. Provide shortfall of PRs.750 million to NSUSC for OSF during FY 2015-2016.

Geographical Location North Sindh, including Jacobabad and Ghotki

Safeguard Categories

Environment A
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The subprojects in the second tranche of the Facility have been categorized as B for the purpose of environmental safeguards. The EIA for one new sub Project Raw Water Intake at River Indus for Sukkur has been categorized as Category A and this EIA was uploaded over ADB Website on 16 Apr. 2012 for 120 days disclosure period.
Involuntary Resettlement The subprojects to be financed in the second tranche of the Facility were suppose to minimize resettlement impacts by prioritizing rehabilitation and optimizing work within existing facilities with no Land Acquisition in Part B of the Tranche-2 Investments. New construction is proposed on vacant government land where feasible. However, the government has to acquire the land for the landfill sites in four participating towns . The land for one landfill site has alrady been acquired following the appropriate procedures. For the remaining three sites, the process is ongoing and at various stages. Updated Land acquisition and resettlement plans (LARPs) for subprojects of Part C have been prepared, in accordance with ADB guidelines, for those subprojects under the second tranche that are expected to have land acquisition and resettlement impacts.
Indigenous Peoples The subprojects in the second tranche of the Facility will have no impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultations were conducted in Ghotki, Jacobabad, Khairpur, New Sukkur, Shikairpur, and Sukkur City in July 2012.
During Project Implementation Public consultations will be undertaken with beneficiaries during project implementation.

Business Opportunities

Consulting Services

Recruitment of consulting assignments will follow ADB's Guidelines on the Use of Consultants (April 2010, and as amended from time to time).

The following selection method will apply: QCBS (90:10), QBS, CQS LCS, and FBS.

Two consulting packages for detailed engineering, design and construction supervision.

One consulting package each for PFR 4 preparation, independent verifier, and studies/trainings.

Procurement Following procurement modes will apply: ICB for works estimated to cost $5.0 million and above; ICB for goods, equipment, supply and installation (turnkey) for $1.0 million and above; NCB for works below $5.0 million; NCB for goods, equipment, supply and installation for below $1.0 million, and shopping for works and goods below $100,000.

Responsible Staff

Responsible ADB Officer Mian Shafi
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Planning & Development Department, Sindh
Parvez Ahmed Seehar
PD.SCIP@GMAIL.COM
Sindh Secretariat
Karachi, Pakistan

Timetable

Concept Clearance 30 Jun 2005
Fact Finding -
MRM 29 Nov 2012
Approval 18 Dec 2012
Last Review Mission -
PDS Creation Date 13 Jan 2010
Last PDS Update 28 Mar 2016

Loan 2975-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2012 08 May 2013 30 Jul 2013 31 Aug 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.10 Cumulative Contract Awards
ADB 25.10 18 Dec 2012 6.66 0.00 27%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2012 4.32 0.00 17%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

Loan 2976-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2012 08 May 2013 30 Jul 2013 31 Aug 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 114.70 Cumulative Contract Awards
ADB 74.00 18 Dec 2012 20.03 0.00 29%
Counterpart 40.70 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2012 12.64 0.00 19%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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