37220-033: Sindh Cities Improvement Investment Program - Tranche 2 | Asian Development Bank

Pakistan: Sindh Cities Improvement Investment Program - Tranche 2

Sovereign (Public) Project | 37220-033 Status: Active
Project Name Sindh Cities Improvement Investment Program - Tranche 2
Project Number 37220-033
Country Pakistan
Project Status Active
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
concessional ordinary capital resources lending / Asian Development Fund US$ 74.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
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
Project Rationale and Linkage to Country/Regional Strategy
Project Outcome
Description of Outcome
Progress Toward Outcome The Project physically closed on 31 August 2017 as per original schedule. However, the project outcomes have not been achieved because of non execution of planned works for improvement of water supply, waster water, and solid waste management services.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

The loan closing date passed on 31 August 2017, and the Project stand physically closed on the same date. There is a four month's winding up period until 31 January 2018 - for; (i) payments of all eligible expenditure for the work done until the loan closing date of 31 August 2017, and (ii) full liquidation of the imprest advance, and closing the loan accounts in ADB books of accounts.

Implementation Challenges:

The Project has historically been facing many implementation challenges. The issues mainly stemmed out of; (i) lack of political commitment to implement the project as per originally design, (ii) lack of ownership of the Project within the Sindh bureaucracy , (iii) too much politicization of Board of Directors (BOD) of the North Sindh Urban Services Corporation (NSUSC) - the implementation agency of the Project, (iii) NSUSC's inability to deal with its negative image within the policy makers and general public, (iv) lack of professionalism and corporate culture within the NSUSC, and (v) lack of effective leadership skills within the NSUSC's management.

Procurement of Works and Goods:

The Project could only award one civil works contract though international competitive bidding, (for Sukkur Water supply Intake), 10 goods contract for procurement of solid waste, and waste water disposal equipment (one through International competitive bidding, and nine through shopping).

Hiring of Consultants:

Three consulting firms were hired under the Project. One (Independent Verifier) by the Project support Unit in PnD, Karachi, (i) one for construction supervision of Sukkur water supply intake project, (iii) one design and construction supervision of water supply, wastewater, and solid waste management subproejcts. In addition few individual consultants were also hired by the Project Support Unit, having expertise of Monitoring and Evaluation, Public Finance, Human Resources, and Municipal Services specialists for Water supply and waste water.

Apart from the implementation challenges as noted earlier, the NSUSC had a serious capacity gap in procurement and recruitment of consulting services. ADB did its best to fill the capacity gap and supported NSUSC by providing services of a staff consultant - Procurement and contract management specialist, who helped NSUSC in preparing bidding documents, RFPs, bid evaluation reports, technical and financial evaluations, and contract documents. This pushed the Project and things started maturing. Bidding documents were approved by ADB, four contracts were at the advance stages i.e. bid evaluation reports were approved and in some cases, contracts were about to be signed, when all of a sudden Supreme Court (SC) of Pakistan issued a court order for closure of NSUSC on 16 March 2017. The SC issued these directives through its verdict on Constitution Petition No. 38, and directed the Sindh Government to withdraw all municipal functions (i.e. water supply, sanitation and solid waste disposal) of all the cities within the purview of NSUSC, and wind it up after completion of the two ongoing subprojects. The SC also advised that the project investments be routed through PHED instead of NSUSC.

The constitution petition was moved by a practicing layer from Shikarpur Sindh, complaining about performance of NSUSC and other government entities involved in urban services in the province of Sindh.

The ADB requested Government of Sindh to communicate through EAD, its decision about future course of the Project. so that timely actions are taken and any further loss of investments and its returns are avoided. However no response from the Government was received despite many follow-ups. The only thing communicated to ADB was that the Government and NSUSC were going to file a review petition before SC. However, no further progress was reported to ADB. In the given circumstances, ADB decided to close the Project on its original completion date, which ADB was ready to extend upon the request of the borrower, before the SC's verdict was announced.

In short, the NSUSC is closed, the staff gone, the operations transferred back to TMAs, the Sukkur intake works completed, and ADB closed the Project physically on 31 Aug 2017.

Geographical Location Ghotki, Jacobabad, Khairpur, Larkana, Rohri, Shikarpur, Sukkur
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 was proposed on vacant government land where feasible. However, due to substantial delay in land acquisition, no work on landfill sites could be designed and executed. The land for one landfill site was acquired following the appropriate procedures. For the remaining three sites, the process could not be completed by the loan closing date. Updated Land acquisition and resettlement plans (LARPs) for subprojects of Part C were prepared, in accordance with ADB guidelines, for those subprojects under the second tranche.
Indigenous Peoples The subprojects in the second tranche of the Facility were supposed not have any 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 were 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 ADB Officer Shafi, Mian S.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Planning & Development Department, Sindh
Parvez Ahmed Seehar
[email protected]
Sindh Secretariat
Karachi, Pakistan
Concept Clearance -
Fact Finding -
Approval -
Last Review Mission -
PDS Creation Date 13 Jan 2010
Last PDS Update 26 Sep 2017

Loan 2975-PAK

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 6.90 0.00 27%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2012 6.76 0.00 27%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

Loan 2976-PAK

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 20.76 0.00 31%
Counterpart 40.70 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2012 19.84 0.00 29%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan