Pakistan : Khyber Pakhtunkhwa Cities Improvement Projects - Project Readiness Financing

Sovereign Project | 51036-003

The Khyber Pakhtunkhwa Cities Improvement Projects (KPCIP) will improve the quality of life of the residents of at least four cities, including Abbottabad, Kohat, Mardan, and Peshawar, directly benefitting about 3.5 million of urban population. The KPCIP will help selected cities improve their access to quality urban services through two interlinked outputs: (i) enhanced municipal infrastructure and public urban spaces, and (ii) strengthened institutional capacities and efficiency of provincial, municipal and city governments and urban service companies. The project readiness financing (PRF) will finance the preparation and engineering design of the KPCIP and possible future pipeline of urban projects in KPK. The PRF will ensure high project readiness of the KPCIP, thereby facilitating the timely and cost-effective achievement of the project outcomes.

Project Details

  • Project Officer
    Shah, Syed Umar Ali
    Sectors Group
    Request for information
  • Country/Economy
    Pakistan
  • Sector
    • Water and other urban infrastructure and services
Project Name
Khyber Pakhtunkhwa Cities Improvement Projects - Project Readiness Financing
Project Number
51036-003
Country / Economy
  • Pakistan
Project Status
Active
Project Type / Modality of Assistance
  • Grant
  • Loan
Source of Funding / Amount
Grant 6016-PAK: Khyber Pakhtunkhwa Cities Improvement Projects " Project Readiness Financing
Source Amount
Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility US$ 2.00 million
Loan 6015-PAK: Khyber Pakhtunkhwa Cities Improvement Project - Project Readiness Financing
Source Amount
Ordinary capital resources US$ 7.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
  • Regional integration
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
Description
The Khyber Pakhtunkhwa Cities Improvement Projects (KPCIP) will improve the quality of life of the residents of at least four cities, including Abbottabad, Kohat, Mardan, and Peshawar, directly benefitting about 3.5 million of urban population. The KPCIP will help selected cities improve their access to quality urban services through two interlinked outputs: (i) enhanced municipal infrastructure and public urban spaces, and (ii) strengthened institutional capacities and efficiency of provincial, municipal and city governments and urban service companies. The project readiness financing (PRF) will finance the preparation and engineering design of the KPCIP and possible future pipeline of urban projects in KPK. The PRF will ensure high project readiness of the KPCIP, thereby facilitating the timely and cost-effective achievement of the project outcomes.
Project Rationale and Linkage to Country/Regional Strategy

The cities in Pakistan's Khyber Pakhtunkhwa Province generate about 80% of the province's wealth and are home to about 20% of the province's population. The province's cities are developing fast, and the urban population has grown by 74% since 1998 at an average annual growth rate of 3%. This has caused the urban environment to expand rapidly in an uncoordinated, unplanned, and unregulated manner. Basic urban services such as water supply, wastewater collection and treatment, storm water drainage, and urban transport facilities are increasingly unable to respond to the population pressures and economic demands. This has increased the demand to develop the provincial economy in a sustainable manner and to make the cities more livable, with better living standards and improved public health.

Since 1977, ADB has financed 19 urban-water projects in Pakistan. Key lessons learned from the past project is the importance of high project readiness before the approval of ensuing urban sector projects. When the urban project is approved based on preliminary design, significant time is required to complete detailed engineering design, prepare bidding documents, and address environmental and social safeguards issues once a loan becomes effective. Cost estimates are also less accurate when detailed engineering design is undertaken after project approval. Low project readiness often results in the need for extensions in project closing dates and additional financing when actual costs deviate from estimated costs and can ultimately reduce the development impact of ADB operations. To reflect this important lesson, ADB and the Government of Pakistan process the PRF to finance the preparation and engineering design of the KPCIP. The PRF will result in a procurement-ready project, enabling contract awards and disbursements immediately after loan effectiveness of the KPCIP, and potentially saving about 2 years from loan effectiveness to the mobilization of contractors during the initial phase of implementation.

Impact

NA

Project Outcome

Description of Outcome

NA

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

NA

Status of Implementation Progress (Outputs, Activities, and Issues)
On track. PMU and EDCM team are undertaking DDAs in 5 cities. 50-day deferment granted due to lockdown. Team will try to complete all the tasks by December 2020.On track. detailed engineering designs submitted on 19 Oct.IRCB recruitment ongoing. Contract to be awarded in Q4 2020 . On track.ADB organized project management training to PMU and other staff in Dec 2019. About 150 participants joined sessions on financial management, procurement, safeguards, and integrity. KPCIP team also visited Manila to attend Maynilad Water Academy training with other ongoing project. Another CD may be developed if time and budget allow.
Geographical Location
Khyber Pakhtunkhwa

Summary of Environmental and Social Aspects

Environmental Aspects
Not applicable as this is PRF. Currently PRF consultants are undertaking environmental and social safeguards assessments for ensuring projects.
Involuntary Resettlement
Not applicable as this is PRF. Currently PRF consultants are undertaking environmental and social safeguards assessments for ensuring projects.
Indigenous Peoples
Not applicable as this is PRF. Currently PRF consultants are undertaking environmental and social safeguards assessments for ensuring projects.

Stakeholder Communication, Participation, and Consultation

During Project Design
ADB Pakistan Resident Mission, in consultation with CWUW, will organize consultation on a regular basis.
During Project Implementation
ADB Pakistan Resident Mission, in consultation with CWUW, will organize consultation on a regular basis.

Business Opportunities

Consulting Services

To expedite consultant recruitment process, the government has requested ADB's assistance in selecting the consultants. Once ADB completes the proposal evaluations, the executing agency will negotiate with consultants and sign contracts accordingly.

Using QCBS 90:10 selection method, a detailed engineering design and construction management consulting firm to undertake detailed engineering design and procurement support activities. An institutional review and capacity building firm will facilitate improvements to the business model to ensure operational efficiency and sustainability.

Due diligence and climate change resilient experts will be engaged, using the individual consultant selection method, for a total of 275 person-months.

Procurement
There is no procurement under the PRF.

Contact

Responsible ADB Officer
Shah, Syed Umar Ali
Responsible ADB Department
Sectors Group
Responsible ADB Division
Water and Urban Development Sector Office (SG-WUD)
Executing Agencies
Local Gov't, Elections and Rural Dev. Dept

Timetable

Concept Clearance
19 Dec 2019
Fact Finding
06 Mar 2018 to 16 Mar 2018
MRM
31 Aug 2018
Approval
15 Mar 2019
Last Review Mission
-
Last PDS Update
04 Jan 2021

Funding

Grant 6016-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Mar 2019 29 Mar 2019 30 Apr 2019 28 Aug 2024 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 2.00
ADB 0.00
Counterpart 0.00
Cofinancing 2.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 10 Jun 2024 0.00 2.00 100%
Cumulative Disbursements 10 Jun 2024 0.00 1.99 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - Satisfactory

Loan 6015-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Mar 2019 29 Mar 2019 30 Apr 2019 28 Aug 2024 31 Dec 2025 -
Financing Plan
  Total (Amount in US$ million)
Project Cost 8.00
ADB 7.00
Counterpart 1.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 10 Jun 2024 6.67 0.00 95%
Cumulative Disbursements 10 Jun 2024 5.85 0.00 84%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - 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.

The Access to Information Policy (AIP) 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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) 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
Climate Change Specialist Individual - Consulting Closed
Urban Planner Individual - Consulting Closed
Third Party Design Review International (Plant Design Expert) Individual - Consulting Closed
Public Private Partnership (PPP) Specialist Individual - Consulting Closed
Smart Cities Developer Individual - Consulting Closed
Third Party Design Review National (Solid Waste Management Specialist) Individual - Consulting Closed
Gender Specialist Individual - Consulting Closed
Organizational Development and Change Management Specialist Individual - Consulting Closed
Third Party Design Review National (Water Supply Specialist) Individual - Consulting Closed
Third Party Design Review National (Sanitation and Sewerage Systems Specialist) Individual - Consulting Closed
Khyber Pakhtunkhwa Cities Improvement Projects - Project Readiness Financing - National Environmental Specialist Individual - Consulting Closed
Third-party Design Review - Structural Engineer (International) Individual - Consulting Closed
Third-party Design Review - Hydrologist (National) Individual - Consulting Closed
Third-party Design Review - Structural Engineer (National) Individual - Consulting Closed
Third-party Design Review - Plant Design Expert (International) Individual - Consulting Closed
Third-party Design Review - Hydrologist (International) Individual - Consulting Closed
Third-party Design Review - Plant Design Expert (National) Individual - Consulting Closed
Institutional Review and Capacity Building (IRCB) Firm - Consulting Closed
Organizational Development and Change Management Specialist Individual - Consulting Closed
Urban Planner Individual - Consulting Closed
Smart Cities Developer Individual - Consulting Closed
Tourism and Cultural Heritage Specialist Individual - Consulting Closed
Climate Change Expert Individual - Consulting Closed
Municipal Finance Specialist Individual - Consulting Closed
Public Private Partnership Specialist Individual - Consulting Closed
National Financial Management Specialist Individual - Consulting Closed
International Financial Management Specialist Individual - Consulting Closed
Project Officer (in-charge of innovation) Individual - Consulting Closed
Project Coordinator Individual - Consulting Closed
Institutional Review and Capacity Building Firm - Consulting Closed
Environmental Specialist Individual - Consulting Closed
Project Director Individual - Consulting Closed
Social Safeguards Specialist Individual - Consulting Closed
Procurement Specialist Individual - Consulting Closed
Monitoring & Evaluation Specialist Individual - Consulting Closed
Engineering Design and Construction Management (EDCM) Firm - Consulting Closed
Institutional Review and Capacity Building (IRCB) Firm - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
ENGINEERING DESIGN AND CONSTRUCTION MANAGEMENT (EDCM) CONSULTANTS Grant 6016 24 Dec 2020 JV OF MINCONSULT SDN BHD AND CREATIVE | AFZAL APARTMENTS JAMRUD ROAD PHASE 3 CHOWK HAYATABAD PESHAWAR PAKISTAN Planning & Dev.Dept.(PD&D) 457,822.39
INSTITUTIONAL REVIEW AND CAPACITY BUILDING (IRCB) CONSULTANT Loan 6015 19 Nov 2020 TRAINING AND TECHNOLOGY TRANSFER LTD. | EQUINOX HOUSE LEVEL 9/111 THE TERRACE, WELLINGTON CENTRAL, LAMBTON 6011 NEW ZEALAND Planning & Dev.Dept.(PD&D) 2,444,949.14 2,435,540.50
PROJECT DIRECTOR Grant 6016 05 Jul 2019 VASIF SHINWARI | HOUSE 72 STREET 12/A ASKARI 6 NASIR BAGH ROAD PESHAWAR PAKISTAN Planning & Dev.Dept.(PD&D) 168,660.00
MONITORING AND EVALUATION SPECIALIST Grant 6016 23 Jul 2019 ATIF MASUD | HOUSE 69 STREET 21 F-10/2 ISLAMABAD PAKISTAN Planning & Dev.Dept.(PD&D) 125,100.00
NATIONAL PROCUREMENT SPECIALIST Grant 6016 05 Jul 2019 SHAFIQ ULLAH KHAN (PROCUREMENT SPECIALIST) | DISTRICT & TEHSIL BANNU POST OFFICE DOMEL VILLAGE JANGI KALLA ZIRAKI KP PAKISTAN Planning & Dev.Dept.(PD&D) 118,500.00
SOCIAL SAFEGUARDS SPECIALIST Grant 6016 05 Jul 2019 ABDUL HAMID | C/O CRESCENT PUBLIC SCHOOL SASHASAUDA SHEIKHUPURA PUNJAB PAKISTAN Planning & Dev.Dept.(PD&D) 105,300.00
ENVIRONMENT SPECIALIST Grant 6016 23 Jul 2019 KASHIF BASHIR | HOUSE 434D EME DHA LAHORE PAKISTAN Planning & Dev.Dept.(PD&D) 105,300.00
PROJECT COORDINATOR Grant 6016 30 Aug 2019 FAISAL ANWAR | 15-A REHMAN BABA ROAD UNIVERSITY TOWN PESHAWAR KP PAKISTAN Planning & Dev.Dept.(PD&D) 139,200.00
ENGINEERING, DESIGN AND CONSTRUCTION MANAGEMENT PACKAGE Loan 6015 29 Jun 2019 MS MINCONSULT SDN BHD MALAYSIA JV WITH M/S | LOT 6, JALAN 51A / 223, 46100 PETALING JAYA, SELANGOR, MALAYSIA MALAYSIA Planning & Dev.Dept.(PD&D) 2,931,064.33 2,919,506.07

Procurement Plan

Title Document Type Document Date
Khyber Pakhtunkhwa Cities Improvement Projects: Procurement Plan Procurement Plans Feb 2019