Pakistan: Peshawar Sustainable Bus Rapid Transit Corridor Project

Sovereign Project | 48289-002 Status: Approved

The proposed project will help develop a sustainable urban transport system in Peshawar by delivering the city's first integrated BRT corridor, directly benefiting 0.5 million people. The project will comprise two interlinked outputs: (i) the construction of a 26-kilometer (km) BRT corridor and associated facilities, and (ii) effective project management and sustainable BRT operations through institutional developments. The project is economically justified by major time savings for future BRT passengers, vehicle operating cost savings, better air quality, and carbon emissions savings, which will improve the health of Peshawar's citizens and mitigate climate change. The project will also make Peshawar more livable and safe, boost private sector investment, and foster gender equity.

Project Details

Project Officer
Margonsztern, David C. M. Central and West Asia Department Request for information
Approval Date
  • 30 June 2017
Country
  • Pakistan
Modality
  • Loan
Sector
  • Transport
  • Water and other urban infrastructure and services
 
Project Name Peshawar Sustainable Bus Rapid Transit Corridor Project
Project Number 48289-002
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3543-PAK: Peshawar Sustainable Bus Rapid Transit Corridor Project
Ordinary capital resources US$ 335.00 million
Loan: Peshawar Sustainable Bus Rapid Transit Corridor Project
European Investment Bank US$ 75.00 million
Agence Francaise de Developpement US$ 75.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Transport - Transport policies and institutional development - Urban public transport - Urban roads and traffic management

Water and other urban infrastructure and services - Urban flood protection

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project will help develop a sustainable urban transport system in Peshawar by delivering the city's first integrated BRT corridor, directly benefiting 0.5 million people. The project will comprise two interlinked outputs: (i) the construction of a 26-kilometer (km) BRT corridor and associated facilities, and (ii) effective project management and sustainable BRT operations through institutional developments. The project is economically justified by major time savings for future BRT passengers, vehicle operating cost savings, better air quality, and carbon emissions savings, which will improve the health of Peshawar's citizens and mitigate climate change. The project will also make Peshawar more livable and safe, boost private sector investment, and foster gender equity.
Project Rationale and Linkage to Country/Regional Strategy

Peshawar is the capital city of the northwest province of Khyber Pakhtunkhwa in Pakistan. A 2-hour drive from the national capital of Islamabad, Peshawar sits in the Indus valley near the Afghan border. Although the last census was conducted in 1998, the city's population was estimated at 1.8 million in 2016, and is projected to reach 3.0 million by 2030 based on current growth rates. Internal displacement and Afghan refugee migration has driven rapid population growth, and there is significant pressure to maintain infrastructure development and service provision in accordance with the growing demand for housing, transport and basic urban services. Car and motorcycle ownership remains low but is increasing due to a growing middle class. Combined with other factors such as inefficient public transport and weak traffic management to organize competing modes, motorization is exacerbating congestion and increasing air and noise pollution. Traffic conditions on key arterial roads have declined to unmanageable levels, with average peak hour travel speeds as low as 11 km per hour. No notable investment in public transport has occurred in decades. In contrast, recent large investments in various flyovers reflect the prioritization of private road transport. Due to its limited infrastructure, the city's urban transport system fails to provide mobility for all.

Poverty is widespread in Peshawar, with an incidence of 40%. The unemployment rate is about 10% for men but 90% for women, who have fewer opportunities to achieve economic independence. The poorest people and women travel mostly on foot or via informal public transport mainly comprising pickup trucks and large and medium-sized buses from the 1980s and 1990s. Altogether, these vehicles serve around 70% of the total demand for motorized transport, but represent only 43% of total traffic. In response to the high market demand, many operators without permits are plying the city's key corridors in a disorganized and inefficient manner. There is no effective public oversight of supply and demand or of the quality of public transport vehicles, bus stops are rudimentary and lack schedule and itinerary information, the ticketing system is obsolete, and operators compete for passengers, worsening congestion and impairing safety. The incidence of traffic collisions is increasing, mainly affecting pedestrians, and 84% of surveyed passengers complain about crowded and unsafe conditions during the rush period and the improper behavior of drivers and conductors. A well-designed and accessible public transport system in Peshawar would therefore substantially benefit the urban poor and women.

Project preparation. In May 2014, the Cities Development Initiative for Asia completed a prefeasibility study to improve Peshawar's urban transport system. The Asian Development Bank (ADB) subsequently provided technical assistance to prepare Peshawar's BRT corridor. ADB also approved a $10 million project design advance (PDA) loan from ADB's ordinary capital resources (OCR) in November 2016 to prepare detailed engineering design, facilitate operational planning, and undertake advance procurement for civil works and equipment. Tendering for the first civil works' packages has begun in May 2017. Project readiness is demonstrated by the fact that contracts are expected to be signed and contractors mobilized to begin works once the proposed loan is approved and declared effective, likely in the fourth quarter of 2017.

Alignment with country strategy. The project is consistent with the Government of Pakistan's Vision 2030, Framework for Economic Growth, and National Climate Change Policy. It supports the priorities set out in the Khyber Pakhtunkhwa Integrated Development Strategy 2014 2018, and is aligned with ADB's country partnership strategy and Sustainable Transport Initiative. The project design includes lessons from past assistance, notably the need for strong political consensus, and a robust governance structure. Coordination with development partners has been ensured, particularly with expected cofinanciers such as the AFD and European Investment Bank (EIB). Private sector participation is being considered for the BRT operations (para. 20), but not for construction as globally few mass transit systems recover their capital costs through revenues alone, especially as fares must be affordable and socially acceptable.

ADB's assistance to the project adds value via the following:

(i) Organizational and institutional developments. ADB supported the legislation for (a) the Khyber Pakhtunkhwa Mass Transit Ordinance, which established the Khyber Pakhtunkhwa Urban Mobility Authority (KPUMA) and was approved in September 2016; and (b) a special purpose vehicle called TransPeshawar, which was licensed in December 2016. The KPUMA is responsible for developing policies and regulations, and planning, coordinating, and funding urban transport at the provincial level. TransPeshawar will own the BRT infrastructure and assets, and is responsible for the BRT operations and management of service contracts.

(ii) Project design and innovation. ADB's intervention resulted in innovative design features such as (a) the promotion of nonmotorized transport through universal accessibility, the inclusion of bicycle lanes along the BRT corridor, and a bicycle sharing system at Peshawar University; (b) _lane strip_ pavement for BRT-dedicated lanes; (c) a modern fare collection system using smart cards to enable distance-based fares; and (d) the use of satellite imagery to map the corridor and facilitate the engineering design.

(iii) Operational planning and financial sustainability. ADB promoted a third-generation BRT system using a _direct service_ operational model allowing BRT vehicles to travel along the BRT corridor in the busiest parts of the city and off-corridor in less congested areas. This approach expands the system's reach and capacity, lessens passenger transfers, and increases ridership and financial sustainability. The project was designed primarily to limit required operational subsidies, and create additional sources of revenue through parking and commercial activities.

(iv) Stakeholder engagement and bus industry transition. ADB strongly emphasizes engagement with the existing bus industry, and established a negotiation process enabling existing operators to participate in the new BRT system. The project design includes a fleet scraping program and compensation mechanism for nonparticipating operators. A large stakeholder engagement and participation plan is also being implemented to ensure buy-in from the communities impacted by the project.

Impact

Safe, affordable, comfortable, and environment-friendly transport system in Peshawar achieved

Quality of life in Peshawar improved

Project Outcome

Description of Outcome Quality of public transport in Peshawar improved, benefiting a population of half a million
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Peshawar's first sustainable BRT corridor and associated facilities constructed

Effective project management and sustainable BRT operations established

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

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design TBD
During Project Implementation TBD

Business Opportunities

Consulting Services

All consultants will be recruited according to ADB's Guidelines on the Use of Consultants

(2013, as amended from time to time)

The terms of reference of the consultants for engineering design, procurement and

construction management (EPCM) under the project design advance loan indicate that Phase 2 of

the EPCM assignment will include construction supervision of the civil works in the ensuing loan.

To conduct the Phase 2 assignment, the use of the single source selection (SSS) method may be

considered to recruit the same consulting firm as the one selected for Phase 1, subject to

satisfactory performance of such firm under Phase 1. Otherwise, quality and cost-based

selection method will be used to recruit the supervision consultants with a quality-cost ratio of

90:10. An estimated 396 person-months (108 international, 288 national) of consulting services are

required to supervise the quality of civil works under the project.

Procurement

All advance contracting and retroactive financing will be undertaken by Peshawar

Development Authority and TransPeshawar in conformity with ADB Procurement Guidelines (2015,

as amended from time to time) and ADB's Guidelines on the Use of Consultants (2013, as

amended from time to time). The issuance of invitations to bid under advance contracting and

retroactive financing will be subject to ADB approval. The borrower, Peshawar Development

Authority (PDA) and TransPeshawar have been advised that approval of advance contracting and

retroactive financing does not commit ADB to finance the project.

Advance contracting. Advance contracting will be undertaken for construction of BRT

corridors and buildings, specifically Package 1 (Chamkani to Bala Hisar Fort), Package 3

(University Road Hayatabad Ring Road), Package 4 [(Lot 1) Hayatabad bus depot and Park

and Ride, (Lot 2) Chamkani bus depot, Park and Ride, TransPeshawar office and BRT control

center and (Lot 3) Dabgari staging facility, commercial area, and Park and Ride,], and Package 5

(multi-storey parking plaza for Lady Reading Hospital. Prior to loan effectiveness (i) bid documents

will be drafted and agreed, (ii) invitation for bids will be advertised and (iii) evaluation of proposals

will be carried out.

Retroactive financing. Retroactive financing will be applied for payment of the maximum

amount of eligible expenditures up to $97 million, the equivalent of 20% of the total ADB loan,

incurred before loan effectiveness, but not more than 12 months before the signing of the loan

agreement.

All procurement of goods and works will be undertaken in accordance with ADB's

Procurement Guidelines (2015, as amended from time to time).

International competitive bidding procedures will be used for civil works contracts estimated

to cost $15 million or more, and supply contracts valued at $2 or higher. Shopping will be used for

contracts for procurement of works and equipment worth less than $0.10 million.

Responsible Staff

Responsible ADB Officer Margonsztern, David C. M.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Khyber Pakhtunkhwa Urban Mobility Authority
Khyber Pakhtunkhwa, Pakistan
TransPeshawar (The Urban Mobility Company)
[email protected]
Transport and Mass-Transit Department,
Civil Secretariat, Peshawar, Pakistan

Timetable

Concept Clearance 15 Dec 2014
Fact Finding 20 Feb 2017 to 10 Mar 2017
MRM 17 Apr 2017
Approval 30 Jun 2017
Last Review Mission -
Last PDS Update 03 Jul 2017

Loan 3543-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jun 2017 - - 31 Dec 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 587.00 Cumulative Contract Awards
ADB 335.00 30 Jun 2017 0.00 0.00 0%
Counterpart 102.00 Cumulative Disbursements
Cofinancing 150.00 30 Jun 2017 0.00 0.00 0%

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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Loan No. 48289-PAK: Peshawar Sustainable Bus Rapid Transit Corridor Project [ICB/PSBRTC-PDA-CW/P-2] Invitation for Bids Closed 30 May 2017 11 Jul 2017
Loan No. 48289-PAK: Peshawar Sustainable Bus Rapid Transit Corridor Project [ICB/PSBRTC-PDA-CW/P-I] Invitation for Bids Closed 09 May 2017 29 Jun 2017
PAK: Peshawar Sustainable Bus Rapid Transit Corridor Project Advance Notice Active 04 May 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan