Project Name Khyber Pakhtunkhwa Cities Improvement Projects - Second Project Readiness Financing
Project Number 55107-001
Country / Economy Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 6042-PAK: Khyber Pakhtunkhwa Cities Improvement Projects - Second Project Readiness Financing
Ordinary capital resources US$ 15.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Transport / Urban public transport

Water and other urban infrastructure and services / Other urban services


Khyber Pakhtunkhwa Cities Improvement Projects (KPCIP) - Second Project Readiness Financing (PRF) will finance eligible project preparation and design activities of ensuing urban development and mobility projects agreed in the country operation business plan 2021-2023 and indicative country pipeline and monitoring report 2022-2024 (planned) for Pakistan. The ensuing projects will assist the Government of Pakistan to improve the quality of life of urban residents in Khyber Pakhtunkhwa province (KPK). It is anticipated that the ensuing projects will consist of 3 projects: (i) Khyber Pakhtunkhwa Sustainable Urban Mobility Project 1, (ii) Khyber Pakhtunkhwa Sustainable Urban Mobility Project 2, and (iii) Khyber Pakhtunkhwa Cities Improvement Project 2.

The PRF will ensure high readiness of the ensuing projects in the urban sector in KPK, by delivering the following outputs:

Output 1: Due diligence and detailed engineering designs completed, and procurement activities supported. The PRF 2 will support the due diligence of ensuing projects by covering the following aspects: technical, economic, financial, environmental and social safeguards, gender, climate change assessments, institutional framework, private sector participation opportunities, and integrity. It will also support financial and procurement capacity assessments to identify risks and formulate mitigating measures. Due diligence will include the review, validation, or upgrading of preexisting and ongoing studies and due diligence. The PRF 2 will support the preparation of detailed engineering designs for civil works and goods. This includes support for surveys, studies, geological and hydrological investigations, and other technical assessments necessary for detailed engineering designs. Climate and natural disaster resilience measures and innovations will be integrated into the designs. The PRF 2 will support procurement, including preparation of bidding documents, in line with the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

Output 2: Project readiness financing implementation support provided and capacity of executing and implementing agencies improved. The PRF 2 will finance consulting services to (i) support the executing and implementing agencies in implementing the project; and (ii) strengthen their capacities to sustainably operate the planned investments. Support to implementing agencies will include the following aspects: technical, project management, financial management, procurement, gender, environmental and social safeguards. The PRF 2 will also conduct capacity development needs assessments and formulate capacity development programs for implementing agencies and government officials.

Project Rationale and Linkage to Country/Regional Strategy KPCIP PRF 2 will support the government's efforts to improve the quality of life of urban residents in KPK, by building on the lessons learnt from the long-term engagement of the Asian Development Bank (ADB) in this region of the country. The Peshawar Sustainable Bus Rapid Transit (BRT) Corridor Project that was started in 2017 and commissioned in August 2020, initiated the transformation of KPK cities through sustainable urban mobility initiatives. The first KPCIP PRF approved in 2019 focuses on institutional reforms, municipal services and green growth covering five selected cities and supports the ensuing KPCIP planned for Board approval in 2021. Building on these projects, the government has proposed to continue this systematic approach to planning, higher quality of project readiness, and institutional reforms for sustainable project operations. The PRF 2 will build on success of the first PRF by financing the preparation and detailed designs of series of sustainable urban mobility, municipal services and climate resilience projects in KPK, benefiting an additional 4 million people across multiple cities. All subprojects will be tailored to city-specific features and urban environments.
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Khyber Pakhtunkhwa
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Lu, Xijie
Responsible ADB Department Sectors Group
Responsible ADB Division Water and Urban Development Sector Office (SG-WUD)
Executing Agencies
Planning & Dev.Dept.,Gov't of Khyber Pakhtunkhwa
Concept Clearance -
Fact Finding 31 May 2021 to 07 Jun 2021
MRM 03 Aug 2021
Approval 29 Nov 2021
Last Review Mission -
Last PDS Update 29 Nov 2021

LoanĀ 6042-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Nov 2021 15 Dec 2021 13 Jan 2022 31 Dec 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 17.12 Cumulative Contract Awards
ADB 15.00 21 Jul 2023 5.86 0.00 39%
Counterpart 2.12 Cumulative Disbursements
Cofinancing 0.00 21 Jul 2023 1.55 0.00 10%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
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