Pakistan: Punjab Intermediate Cities Improvement Investment Program

Sovereign Project | 46526-002

Summary

The Punjab Intermediate Cities Improvement Program (the investment program) will improve the quality of life of the residents living in the selected cities of Punjab, the most populous province in Pakistan. This will be achieved by addressing urban development challenges at city level including integrated planning, improved institutional framework for urban services, strengthened business processes of utilities and improved urban infrastructure and services.

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Project Name Punjab Intermediate Cities Improvement Investment Program
Project Number 46526-002
Country Pakistan
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept: Punjab Intermediate Cities Improvement Program
Ordinary capital resources US$ 200.00 million
Asian Development Fund US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Water and other urban infrastructure and services - Other urban services - Urban policy, institutional and capacity development - Urban sanitation - Urban sewerage - Urban solid waste management - Urban water supply
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Punjab Intermediate Cities Improvement Program (the investment program) will improve the quality of life of the residents living in the selected cities of Punjab, the most populous province in Pakistan. This will be achieved by addressing urban development challenges at city level including integrated planning, improved institutional framework for urban services, strengthened business processes of utilities and improved urban infrastructure and services.
Project Rationale and Linkage to Country/Regional Strategy

About 52% of country's population, around 94 million people, is housed in Punjab. This includes 29 million urban populations, out of which nearly 7 million live in 13 intermediate cities. While population growth has stressed the urban environment, urban service delivery has declined. Urban infrastructure and services have not kept pace with growth. Municipal governance is weak due to overlaps in institutional jurisdiction, poor coordination and unclear roles and responsibilities of key players at city level. As a result, integrated urban planning is poor and subsector planning is done in isolation by respective institutions. The lack of professional management in the use of financial, human, and natural resources keeps urban services cost high and quality low. There are no reliable urban service benchmarking to measures performance and quality of life. Urban statistics are inconsistent and vary considerably with no precise data on services coverage, system handling capacity, demand, quality, production, use, disposal and treatment. None of the cities has metered water connections and utilities lack business and customer focus in services they provide. Tap water has quality issues and is intermittently available only to 45% of urban population. Sewage of 54% of urban population flows in open drains and is discharged untreated to agricultural and natural water-bodies. Municipal solid waste collection covers only 40% of urban households, with no sanitary disposal in most cases. Poor public transport and weak traffic management render roads heavily encroached and congested, constraining urban mobility.

The GoPb recognizes the need for urban reforms and envisions modern and efficiently managed urban centers serving as engines of growth for the provincial economy. It is implementing urban reforms in Lahore, the capital of Punjab, and four other major cities to improve local government capacity and performance, and to address the basic needs of urban population. The GoPb has established the Urban Sector Policy and Management Services Unit to provide support in urban sector reforms including policy direction, integrated planning, and legislative reforms. The GoPb strives to sustain urban investment by increasing efficiency and revenue collection, and optimizing subsidies. The Punjab Municipal Development Fund Company (PMDFC), is spearheading this effort in the five cities and exceeding extending to intermediate cities. The GoPb has explored instruments to incentivize performance, improve governance and management of utilities, streamline processes and increase operational efficiency, yet the dividends in the intermediate cities are marginal.

The proposed investment program will address three core causes: (i) absence of strategic vision and integrated urban planning at the cities level, (ii) ineffective and inefficient use of financial and natural resources, and (iii) limited and unreliable financing of infrastructure and operation and maintenance. This will be achieved by introducing integrated urban planning, supporting institutional reforms and constructing and rehabilitating of facilities and infrastructure of prioritized urban services sub-sectors in the selected intermediate cities. New organizational modalities for service delivery with a focus on clarifying roles and responsibilities, improving financial management, and corporate governance will be explored. The investment program scope will cover urban planning and institutional strengthening in the integrated way and physical investment in the selected manner

Impact Quality of life of the residents of the selected cities of Punjab improved.
Outcome Improved quality of urban services available to the residents of the selected cities in Punjab
Outputs

Integrated urban planning introduced

Institutional framework for urban services at the city level improved

Business processes of urban utilities strengthened

Urban infrastructure improved

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

The main stakeholders of the project are the residents of selected intermediate cities, local governments and beneficiaries and municipal authorities. Participation will be through consultation with government, communities, NGOs and CSOs.

The issues during project design is affordability analysis for cost recovery tariffs; locations of services and facilities.

During Project Implementation The main stakeholders of the project are the residents of selected intermediate cities, local governments and beneficiaries and municipal authorities. Participation will be through consultation with government, communities, NGOs and CSOs.
Responsible ADB Officer Nargiza Talipova
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Local Government&Community Dev't Dep't,Govt Punjab6th Floor Local Government Complex
Sanda Road, Lahore
Pakistan
Timetable
Concept Clearance 30 Jul 2014
Fact Finding 14 Sep 2015 to 26 Sep 2015
MRM 18 Dec 2015
Approval 29 Feb 2016
Last Review Mission -
Last PDS Update 31 Mar 2015

Safeguard Documents

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Evaluation Documents

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