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Technical Assistance Consultant’s Report

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Project Number: 40389 May 2011

Pakistan: Punjab Cities Improvement Investment Program (Financed by the TA Special Fund and WFF-Multidonor TF)

Prepared by GHK Consulting Ltd.

Punjab, Pakistan

For Planning & Development Department, Government of the Punjab

Punjab Cities Improvement Investment Program Final Report Table of Contents

GHK Consulting Limited J40252334

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TABLE OF CONTENTS

ACRONYMS & ABBREVIATIONS ....................................................................................... V

EXECUTIVE SUMMARY ...................................................................................................... 7

1.0 INTRODUCTION ..................................................................................................... 11

1.1 ADB Sector Experience and Assistance Program for Pakistan ........................................ 11

1.2 Context .................................................................................................................................... 11

1.2.1 Unreliable ................................................................................................................................. 12 1.2.2 Financially Unsustainable ........................................................................................................ 12 1.2.3 Environmentally Unsustainable ................................................................................................ 12 1.2.4 Unaffordable to Lower Incomes Groups .................................................................................. 12 1.2.5 Unaligned to Customer Demands ............................................................................................ 12

1.3 Scope and Objectives of PCIIP ............................................................................................. 12

1.4 PPTA Approach ...................................................................................................................... 13

1.5 Guiding Principles ................................................................................................................. 13

1.6 Structure of the Report .......................................................................................................... 14

1.6.1 Section 2: Key Outputs Part A - Investment Program Facility Preparation ............................. 14 1.6.2 Section 3: Key Outputs Part B -Tranche 1 Preparation ........................................................... 14 1.6.3 Section 4: Key Outputs Part C - Capacity Development Support for Accelerated Program

Implementation ......................................................................................................................... 14

2.0 KEY OUTPUTS PART A- INVESTMENT PROGRAM FACILITY PREPARATION . 16

2.1 Information Collection and Situation Analysis ................................................................... 16

2.1.1 Objective .................................................................................................................................. 16 2.1.2 Scope ....................................................................................................................................... 16 2.1.3 Methodology ............................................................................................................................. 17 2.1.4 City Profile Findings ................................................................................................................. 17 2.1.5 Service Delivery Baseline Data ................................................................................................ 18

a. Water Supply ................................................................................................................ 18 b. Sewerage and Drainage Services ................................................................................ 18 c. Solid Waste Management Services .............................................................................. 19 d. Urban Transport Services ............................................................................................. 19 e. Human Resources ........................................................................................................ 20

2.1.6 Results ..................................................................................................................................... 20 a. Financial and Economic ............................................................................................... 20 b. Urban Planning ............................................................................................................. 21

2.1.7 Summary – City Profiles Comparative Analysis....................................................................... 22

2.2 Urban Sector Analysis ........................................................................................................... 25

2.2.1 Introduction .............................................................................................................................. 25 2.2.2 Policy Statements .................................................................................................................... 25 2.2.3 Studies, Projects and Programs .............................................................................................. 27

a. Studies .......................................................................................................................... 27 b. Projects and Programs ................................................................................................. 30

2.2.4 Success Factors and Constraints ............................................................................................ 33 2.2.5 Policy Analysis ......................................................................................................................... 34 2.2.6 Tariff Policies ............................................................................................................................ 35 2.2.7 Effectiveness of Procurement Procedures............................................................................... 36 2.2.8 Private Sector Involvement in Service Provision ..................................................................... 37

2.3 Urban Sector Road Map ........................................................................................................ 38

Part A: Urban Planning and Municipal Financial Management ............................................................ 41



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Part B: Water Supply, Wastewater Management and SWM ................................................................ 41 Part C: Urban Transport and Traffic Management ............................................................................... 41 Part D: Operations and Transition Support Funding ............................................................................. 41 Part E: Program Management Support ................................................................................................. 41

2.4 Policy Framework: Reform Action Plan ............................................................................. 44

2.5 Institutional Effectiveness Plan ........................................................................................... 45

2.5.1 Strategy for Management Contract .......................................................................................... 51 2.5.2 Service and Asset Management Agreement ........................................................................... 60 2.5.3 Independent Verifier ................................................................................................................. 60 2.5.4 Capacity Development Program through Part A and Part E .................................................... 60

a. Part A - Urban Planning and Municipal Financial Management ................................... 64 b. Part E - Program Management Support ....................................................................... 64

2.5.5 Institutional Arrangement for the Transport Component .......................................................... 68

2.6 Investment Program Preparation ......................................................................................... 68

3.0 KEY OUTPUTS PART B -TRANCHE 1 PREPARATION - SIALKOT CITY ............ 76

3.1 Strategic Development Plan Framework and Action Plan-Sialkot .................................... 76

3.2 Water Supply Strategy and Action Plan – Sialkot .............................................................. 78

3.2.1 Description of Works for the First and Second Tranches ........................................................ 79 a. First Tranche ................................................................................................................. 79 b. Second Tranche ........................................................................................................... 81

3.2.2 Costs of the Works for the First Tranche ................................................................................. 81 3.2.3 Willingness to Pay (WTP) ........................................................................................................ 81

a. Households ................................................................................................................... 81 b. Commercial Enterprises ............................................................................................... 81

3.3 Wastewater Management Strategy and Action Plan – Sialkot .......................................... 85

3.3.1 Description of Works for the First and Second Tranches ........................................................ 86 a. First Tranche ................................................................................................................. 86 b. Second Tranche Sub Projects ...................................................................................... 87

3.3.2 Costs of the Works for the First Tranche ................................................................................. 88 3.3.3 Willingness to Pay .................................................................................................................... 88

3.4 Solid Waste Management Strategy and Action Plan - Sialkot ........................................... 88

3.4.1 Description of Works for the First and Second Tranches ........................................................ 91 a. First Tranche ................................................................................................................. 91 b. Second Tranche Sub Projects ...................................................................................... 93

3.4.2 Costs of the Works ................................................................................................................... 93 3.4.3 Willingness to Pay .................................................................................................................... 93

a. Households ................................................................................................................... 93 b. Commercial Enterprises ............................................................................................... 93

3.5 Urban Transport Strategy and Action Plan – Sialkot ......................................................... 93

3.5.1 Description of Works for the First and Second Tranches ........................................................ 96 a. First Tranche ................................................................................................................. 96 b. Tranche 2 Sub-Projects ................................................................................................ 97

3.5.2 Costs of the Works as per the Agreed Financial Model ........................................................... 98

3.6 Tranche 1: Sub-projects Preparation: Feasibility Studies and Preliminary Designs ..... 98

3.7 Implementation Schedule and Arrangement ...................................................................... 98

3.8 Operational Support Funding Mechanism Component ................................................... 103

3.9 Institutional Effectiveness Component ............................................................................. 105

3.10 Due Diligence Analysis and Documentation ..................................................................... 105

3.10.1 Surveys .................................................................................................................................. 105 3.10.2 Financial Management, Financial Analysis, and Financing Plan ........................................... 106



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a. Financial Projections for SWSC ................................................................................. 107 b. Financial Internal Rate of Return (FIRR) .................................................................... 108 c. Tariff Assumptions and Affordability ........................................................................... 108 d. Summaries of RRP and FAM ..................................................................................... 110

3.10.3 Economic Analysis ................................................................................................................. 114 a. Approach and Methodology ........................................................................................ 114 b. Calculation of EIRRS and other Variables ................................................................. 114 c. Distribution of Benefits ................................................................................................ 115

3.10.4 Social Development ............................................................................................................... 115 3.10.5 Environmental Safeguards Analysis and Planning for Investment Program ......................... 117 3.10.6 Social Safeguards Analysis and Planning for Investment Program ...................................... 119

3.11 Consultation and Communication ..................................................................................... 120

4.0 KEY OUTPUTS PART C - CAPACITY DEVELOPMENT FOR ACCELERATED PROGRAM IMPLEMENTATION SUPPORT ......................................................... 123

4.1 Program Support/Institutional Effectiveness .................................................................... 123

4.2 Advance Action, Procurement Planning and Land Acquisition ..................................... 123

4.3 Preparation of Facility Administration Manual ................................................................. 124

4.4 MFF Monitoring and Results Measurement ...................................................................... 124

FIGURES

Figure 1: Overall Weighted Score ..................................................................................... 24 Figure 2: Overall Weighted Score ..................................................................................... 24 Figure 3: Organization Chart for the Water and Sanitation Company Limited ................... 53 Figure 4: Facility Implementation Organization Chart........................................................ 62 Figure 5: Organization Chart for the Urban Unit Executing Agency and Implements ........ 63 Figure 6: Organization Chart for Tehsil Municipal Administration ...................................... 73 Figure 7: Financing Plan and Disbursement Modalities .................................................. 104 Figure 8: SWSC Operating Cashflows–Consolidated ..................................................... 107 Figure 9: Disbursement Arrangements, Part A: Urban Planning and Municipal Financial

Management, Part C: Urban Transport and Traffic Management, Part E: Program Management Support ...................................................................................... 112

Figure 10: Disbursement Arrangements, Part B: Water Supply, Wastewater, and Solid Waste Management ......................................................................................... 113

TABLES Table 1: List of Cities ....................................................................................................... 16 Table 2: Summary of 12 TMAs ........................................................................................ 23 Table 3: Service Provision Targetsa ................................................................................. 39 Table 4: Sector Investment Plan ...................................................................................... 39 Table 5: Sector Financing Plana ...................................................................................... 40 Table 6: Sector Financing Plan 2010-2018 ...................................................................... 40 Table 7: Subsector Investments by Tranche – Indicative Schedule ................................. 42 Table 8: Punjab Cities Improvement Investment Program ............................................... 47 Table 9: Details and Costing of Management Contract Cost for SWSC ........................... 57 Table 10: Cost of Independent Verifier .............................................................................. 60 Table 11: Details of the Consultants for Part A and Capacity Building Program ................ 65 Table 12: Costing for Part E (for International Consultants and Individual Consultants to be

hired by the Urban Unit) ..................................................................................... 68 Table 13: Details and Costing of Water Supply Sub Projects............................................. 82 Table 14: Details and Costing of Wastewater Sub Projects ............................................... 89 Table 15: Details and Costing of Solid Waste Management Sub Projects ........................ 94



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Table 16: Details and Costing of Urban Transport Sub Projects ........................................ 99 Table 17: Indicative List of Packages Required Under the Project – Tranche 1 ............... 100 Table 18: Weighted Average Cost of Capital Calculations ............................................... 108 Table 19: Financial Internal Rate of Return Calculations ................................................. 108 Table 20: Tariffs for Improved Services ........................................................................... 109 Table 21: Affordability of the Water Supply Tariff ............................................................. 109 Table 22: Summary of Economic Viability........................................................................ 114 Table 23: Economic Costs and Benefits (PRs. In Million) ................................................ 116 Table 24: Key Tasks for an Environmental Monitoring Plan ............................................. 119 Table 25: Costs Allocable to Gender, Environment, and Social Safeguards .................... 121 ANNEXURE Annex A1: Water Supply Sub Projects (Tranche 1) ........................................................ 128 Annex A2: Wastewater Management Sub Projects (Tranche 1) ..................................... 134 Annex A 3: Transport Component Sub Project (Tranche 1) ............................................. 136 Annex A 4: Sialkot District and City ................................................................................. 138 Annex A 5: Sialkot-In the National Trade Corridor ........................................................... 141 Annex A 6: Projected Built-Up Area ................................................................................ 144 Annex A 7: Proposed Planning Area ............................................................................... 147 Annex A 8: Proposed Outline Development Strategy Plan .............................................. 149 Annex A 9: Implementation Schedule for Tranche 1 and Future Tranches ...................... 151 Annex A 10: Gender Action Plan ....................................................................................... 158 Annex A 11: Stakeholder Consultations Undertaken For PCIIP ........................................ 161 Annex A 12: Summary Poverty Reduction And Social Strategy ........................................ 184 Annex A 13: Environment Management Plan (for the Entire MFF) .................................... 188 Annex A 14: Environment Management Plan (for SWM Component) ................................ 198 Annex A 15: Environment Management Plan (for Urban Transport Component) ............... 202 Annex A 16: Baseline Indicators For Sialkot ...................................................................... 212 Annex A 17: PCIIP Documents Developed as Part of PPTA ............................................. 214

Punjab Cities Improvement Investment Program Final Report Acronyms & Abbreviations


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ACRONYMS & ABBREVIATIONS ADB Asian Development Bank ADF Asian Development Fund AOA Articles of Association BCR Benefit-Cost Ration CBD Central Business District CBOs Citizen Based Organization CCBs Citizen Community Board CCQAD Customer Care and Quality Assurance Division CPS Country Partnership Strategy PCPS Pakistan Country Partnership Strategy CRC Citizen Report Card DBOT Design Built Operate Transfer DG Khan Dera Ghazi Khan DNI Distribution Network Improvement DNI Distribution Network Improvement EA/IA Executing Agency/Implementing Agency EARF Environmental Assessment and Review Framework EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMP Environmental Monitoring Plan ERD European Report on Development FAM Facility Administration Manual FGD Focus Group Discussions FIRR Financial Internal Rate of Return FMIS Financial Management Information System FY Financial year GDP Growth per capita GIS Geographic Information System GoP Government of Pakistan GRAP Gender Reform Action Plan HH House Hold HRM Human Resource Management HUD & PHE Housing Urban Development and Public Health Engineering ICS Individual Consultant Selection IEE Initial Environmental Examination Intl International IPDP Indigenous People Development Plan KPIs Key Performance Indicators LAR Land Acquisition Act LARDDR Land Acquisition and Resettlement Due Diligence Report LARF Land Acquisition and Resettlement Framework LG&CD Local Government and Community Development LGD Local Government Department LICCCC Low-Income Community Customer Care Center MC Management Contractor MCUs Motor Control Units MDGs Millennium Development Goals MFF Multitranche Finance Facility MOA Memorandum of Association MTA Municipal Transport Authority MTDF Medium-Term Development Framework NB Net Benefits

Punjab Cities Improvement Investment Program Final Report Acronyms & Abbreviations


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NCB National Competitive Bidding NGO Non-Government Organization NPV Net Present Value NRW Non Revenue Water NSUSC North Sindh Urban Services Corporation O&M Operation and Maintenance OCR Ordinary Capital Resources P&D Planning and Development P&DD Planning and Development Department PATA Provincially Administered Tribal Areas PCIIP Punjab Cities Improvement Investment Program PHED Public Health Engineer Department PHPPD Punjab Housing and Physical Planning Department PKAA Punjab Katchi Abadi Act PLGO Punjab Local Government Ordinance PMDFC Punjab Municipal Development Fund Company PPP Public-Private Partnership PPTA Project Preparatory Technical Assistance PRs Pakistani Rupees PSC Program Steering Committee QCBS Quality and Cost Based Selection RFP Request for Proposal RoW Right of Way SAMA Service and Asset Management Agreements SEBCON Socio-Economic and Business Consultants SOE Statement of Expenditure SOP’s Standard Operating Procedures SWM Solid Waste Management SWOT Strengths, Weaknesses, Opportunities and Threats SWSC Sialkot Water and Sanitation Company TA Technical Assistance TMAs Tehsil Municipal Administrations TOR Terms Of Reference UIPT Urban Improvable Property Tax UU Urban Unit WA Withdrawal Application WACC Weighted Average Cost of Capital WC Water Connection WHO World Health Organization WS Water Supply WSCs Water Supply and Sanitation Companies WSC Water and Sanitation Companies WSS Water Supply and Sanitation WSP Water and Sanitation Program WTP Willingness-To-Pay WWM Wastewater Management

Punjab Cities Improvement Investment Program Final Report Executive Summary


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EXECUTIVE SUMMARY This report is the final output of the Project Preparatory Technical Assistance (PPTA) under the Asian Development Bank (ADB) funded Punjab Cities Improvement Investment Program (PCIIP). The PPTA was aimed to design the investment program following the ADB guidelines to prepare a program comprising physical and non-physical investments for financing under ADB's multi-tranche financing facility (MFF). Overview The PCIIP aims to support urban planning, management and infrastructure investment for several of Punjab's larger intermediate cities. It will assist Government of Punjab (GoPb) to develop intermediate cities with clear vision and with integrated, efficient, and sustainable systems and services. Punjab Cities will support more effective implementation and management arrangements, including stronger municipal management, professionalized service providers, and private sector partnerships. Impact and outcomes: PCIIP sets the foundation for ADB's long-term urban sector engagement in Punjab. The program will: Benefit about 6 million persons in 11 cities through better quality, more reliable, and

accessible basic urban services Increases access to potable, continuous water supply, improved sanitation, and

improved urban transport Enhances the quality of life and yields environmental and public health benefits Size, term and sectors: The ADB through this loan program will provide $300-$500 million over 6-8 years financing physical and non-physical investments in: urban planning and municipal financial management water supply and waste water management solid waste management urban transport (public transport and traffic management) Design of the PCIIP The PCIIP aims to assist 12 intermediate cities,1 selected on the basis of their population size and potential to act as economic drivers of regional growth.. Six cities will benefit from infrastructure investments, while the remainder will receive capacity development support to prepare them for future assistance. The investment will be made in five tranches and Tranche 1 will focus on Sialkot City, a progressive business centre in northeast Punjab. Sialkot is well-positioned to lead innovation and jumpstart MFF implementation, pilot the management operator contract, and develop a workable model that Punjab can roll-out to new regions or divisions in subsequent tranches. City and subproject selection criteria will guide sequencing of subsequent tranche investments. The PCIIP is designed to support new approaches to urban service delivery based on the creation of autonomous urban utility companies, organized on regional or divisional basis to harness economies of scale to attract more professional management and skilled staff. It

1 These 11 cities include Sialkot, Gujrat, Sargodha, Chiniot, Sheikhupura, Kasur, Okara, Sahiwal, Jhang,

Bahawalpur and Rahim Yar Khan. In addition, Rawalpindi will be supported for wastewater improvements.



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also supports performance-based management contracts for utility company operation at two levels, a contract with a private operator to bring international operations expertise to Pakistan and a Service and Asset Management Agreement between the service provider and the local government. It is considered that such arrangements are critical to clarify roles and responsibilities and de-link local governments from day-to-day service provision and shift government’s focus to regulatory and monitoring functions. As per the approach, regional public Water Supply and Sanitation Companies (WSCs) will be created under the company ordinance 1984, with mandate to provide water supply, wastewater, and solid waste services in the Tehsil Municipal Administrations (TMAs). These services will be provided on behalf of individual TMAs or their successor municipal organizations, which will continue to own assets and be responsible for delivery of the services. PPTA Outputs The PPTA had three parts: Part A: Investment Program Facility Preparation The part sets out the information collection and situation analysis for 11 program cities (Rawalpindi is not covered for information collection), urban sector analysis, road map for the investment program, as well as the policy framework, reform action plan and investment program with a financing plan (broken down by tranche). Design of the PCIIP also comes under this part, which includes setting and designing the institutional setup for the implementation and execution of the PCIIP MFF. A program for non physical support is designed to undertake capacity building activities to strengthen the urban planning, municipal planning and financial management functions at the local level. Due diligence frameworks, for social and environmental aspects have been covered in this part to ensure the MFF is compliant with the ADB's monitoring and evaluation systems’ requirements. PCIIP has the following five parts: Part A: Urban Planning and Municipal Financial Management – this part will support the urban planning and municipal finance functions, including preparation of municipal plans in Sialkot and 2 other cities. Capacity building will be provided for all program cities, in both these sectors. Part B: Water Supply, Wastewater Management and SWM - In the first tranche, extension, rehabilitation, and improvement of urban water supply, wastewater management, and solid waste management infrastructure and services will be undertaken in Sialkot, including support to the Sialkot Water and Sanitation Company under a management contract for operations, including capital works design and implementation. In the future tranches, these services will be improved in six cities, may be in clusters (e.g. Sargodha division). Part C: Urban Transport and Traffic Management - In the first tranche, extension, rehabilitation and replacement of urban transport and traffic management infrastructure and services will be undertaken for Sialkot city. In the future tranches, urban transport and traffic management improvements will be undertaken in six cities. Part D: Operations and Transition Support Funding - This component will provide operational support funding to bridge the short-to-medium term operational cash shortfalls of



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Sialkot Water and Sanitation Company in the first tranche and for other regional utilities in the other tranches. Part E: Program Management Support - Establishment of Program Management team with capability and funds to handle surveys and consulting services for subprojects preparation, including technical design, contract bidding, evaluation and award; construction supervision, audit, social and environmental assessments; monitoring and reporting; and third party monitoring/independent verifications for the future tranches come under this part. Part B: Tranche 1 Project Preparation – Sialkot City This part includes the following: Developing Strategic Development Plan Framework and Action Plan plus

complimentary and integrated strategies and action plans for water supply, wastewater, solid waste management and urban transport for Sialkot

Design and feasibility study of the infrastructure subprojects included in Tranche 1 of the investment program and included in the above strategies

Design of institutional reform and development activities to improve city management, enhance service delivery, and support sustainability of physical investments

Due diligence of the Tranche 1 investments to ensure project design compliance with the ADB's and Government of Pakistan requirements

A communication strategy has also been developed for the program. All sub projects included in the above strategies have been gone through social, economic, financial and environmental due diligence to ensure their compliance with the ADB and Government of Pakistan’s rules and regulations. Part C: Capacity Development Support for Accelerated Program Implementation The final part included the following: Program support and institutional effectiveness support Advance action, procurement and land acquisition support Prepare the Facility Administration Manual Program monitoring and results measurement Under this part, for various packages for all parts of the project, terms of reference, expression of interest and request for proposal documents are being finailised. Facility administration manual was also developed. No land acquisition support was required for the first tranche investments in Sialkot as none of the sub project required land acquisition. Under the program support component, drafts of the legal documents have also been developed for establishment of Sialkot Water and Sanitation Company. Detailed implementation schedule for the entire MFF was developed along with detailed cost estimates for all interventions of the project. For program monitoring and result measurement, design and monitoring framework was developed. The road map and action plan for reform sets the targets for result measurement of the program. The rest of the component related to capacity building of the consultants could not be implemented because the loan agreement was not signed within the time period available to the consultants.

Details of deliverables against these objectives are presented in the next sections of this report.

Punjab Cities Improvement Investment Program Final Report

Section 1 Introduction


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1.0 INTRODUCTION 1. This is the final report by PPTA consultants, GHK Consulting Limited, for the ADB funded Punjab Cities Improvement Investment Program (PCIIP). The report presents an overview of the program and key deliverables of the PPTA.

1.1 ADB Sector Experience and Assistance Program for Pakistan

2. ADB has been engaged in Pakistan’s development for almost 40 years and has established itself as a credible, value-adding, and responsive development partner. ADB assistance to water supply and sanitation (WSS) and other urban development in Pakistan to date totals over $1.2 billion across 16 projects and about 30 TA projects.

3. The ADB’s PCIIP initiative is consistent with Pakistan’s Medium-Term Development Framework (MTDF 2005-2010) to support priority investments in key sectors to deliver on the longer-term Government strategic development Vision 2030 and, in turn, the ADB’s country partnership strategy (CPS) to support Pakistan’s efforts to promote economic growth of intermediate cities in Punjab.

4. The CPS calls for the ADB doing fewer but larger projects through pivotal non-physical and physical investments to promote structural change and transformation to improve water, wastewater, solid waste management and urban transport service delivery. Structural change and inclusiveness require an enabling environment for the private sector; credible regulatory frameworks; efficient financial intermediation; critical infrastructure and services; and institutional effectiveness and capacities.

5. Other development partners assisting Pakistan’s urban sector include the World Bank; the governments of Japan (through JICA and JGF assistance), Kuwait, Netherlands, France, the United Kingdom; United Nations organizations; and the World Bank’s multipartner Water and Sanitation Program (WSP).

1.2 Context

6. Punjab is both the most populous and most urbanized province in Pakistan, and continues to experience rapid urban growth, despite poor urban planning and a failure of urban services to keep pace with urban growth. Inadequate urban planning and urban service failure constrains economic growth and deters new investment. This results in haphazard development, a polluted urban environment, and, for many households, a poor quality of life.

7. Water supply, wastewater management, solid waste management (SWM), urban transport and other urban services operated by the Tehsil Municipal Administrations (TMAs) in Punjab are highly inefficient. Access to piped water supply is from 14% to 55% of urban households and these water supplies are intermittent. Sewerage coverage ranges from 20% to 50%; there is no treatment. Only about 50% of households municipal SWM services with no waste treatment being undertaken currently. In summary, the situation of the urban services is in the following:




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1.2.1 Unreliable

8. Services are intermittent; piped water is frequently available for only a few hours per day and is frequently contaminated; solid waste collection is sporadic or non-existent; and transport services highly inefficient and poorly regulated.

1.2.2 Financially Unsustainable

9. User charges are insufficient to cover operation and maintenance costs ─ for example; collections are erratic, and operations are financed mostly through operating subsidies and development grants from the provincial government.

1.2.3 Environmentally Unsustainable

10. Leakages in distribution pipes lead to wasteful pumping and treatment costs; many customers develop their own groundwater supplies to rectify the poor public service and contribute to the depletion of the aquifers; raw sewage is disposed in receiving bodies without prior treatment; and solid waste is dumped indiscriminately.

1.2.4 Unaffordable to Lower Incomes Groups

11. Who adopt unsafe substitutes to public supply, and often deal with their own disposal of solid waste.

1.2.5 Unaligned to Customer Demands

12. The capacity to shift the focus from ‘simple extension of infrastructure’ to ‘improvement of service’ is limited by an institutional framework that offers no accountability to customers nor financiers. Staff qualifications and capabilities are mostly oriented towards engineering design, and technical staff pay little attention to day-to-day operational needs or the wider concepts of service provision. 13. The key objective of the ADB assistance to Pakistan for the PCIIP is to transform urban service delivery in the intermediate cities of Punjab. Such a transformation is essential if the urban services are to support economic growth and enhance the quality of life. The objective of this ADB assistance is to provide investments combines with a service delivery policy and institutional reform package.

1.3 Scope and Objectives of PCIIP

14. The PPTA financed the design of PCIIP and capacity development for its timely launch and sound implementation.

15. PCIIP will assist up to 12 intermediate cities,2 selected based on population size and potential for fuel regional growth.. Six cities will receive transformative infrastructure investment, while the remainder will receive capacity development support to prepare them for future assistance.

16. The ADB’s support will be provided in the form of Multitranche Finance Facility (MFF) and the investment will be made in five tranches. Tranche 1 will focus

2 These 12 cities include Sialkot, Gujrat, Sargodha, Chiniot, Sheikhupura, Kasur, Okara, Sahiwal, Jhang,

Bahawalpur and Rahim Yar Khan. In addition, Rawalpindi will be supported for wastewater improvements.




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on Sialkot City, a progressive business centre in northeast Punjab. Sialkot is well-positioned to lead innovation and jumpstart MFF implementation, pilot the management operator contract, and develop a workable model that Punjab can roll-out to new regions or divisions in subsequent tranches. City and subproject selection criteria will guide sequencing of subsequent tranche investments. Physical sub projects will provide incremental improvements in water supply, sanitation, solid waste management, transportation and urban planning.

17. The institutional reform process will support the rationalisation of the institutional systems, strengthening of implementing agencies, improvement of financial management and cost recovery systems and enhance support mechanisms for attracting private sector investment.

18. The objective of the technical assistance provided by the PPTA Consultant, was to assist the Government of Punjab and the Asian Development Bank prepare an investment program consistent with agreed design principles and in a form that is suitable for the ADB financing. To this end, the consultants followed the ADB Operational Manual guidelines for the preparation of this program which comprise physical and non-physical investments for financing under MFF.

19. The assignment has mainly three parts:

Part A: Investment Program Facility Preparation Part B: Tranche 1 Project Preparation – Sialkot City, and Part C: Capacity Development Support for Accelerated Program

Implementation

1.4 PPTA Approach

20. While improving urban management institutions, capabilities and infrastructure is essential, neither capacity development nor physical investment is sufficient. Hence, in undertaking the PPTA, the consultants also focused on ways to incentivizing well-planned, cost effective and sustainable infrastructure and more effective institutions. The options for corporatization and professionalization of urban service providers and opportunities to harness private sector efficiencies and skills were investigated and a model for this was developed.

21. The PPTA employed a series of stakeholder consultation meetings to ensure involvement of urban stakeholders in analysis of problems and design of solutions.

1.5 Guiding Principles

22. A number of guiding principles were set out at the commencement of the PPTA, that include the following: Simplify program design; phased approach while harnessing economies of

scale Quick, measureable "wins" to build urban residents' trust and confidence Target results; focus on services delivered, not simply infrastructure built Get "incentives right" - align incentives to performance through contracts Introduce tools for accountability-performance-based contracts and

benchmarking Tap private sector expertise, incentive structures and investment Develop professional, properly structured service providers; informed,

satisfied, paying customers




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Increase financial accountability; "ring-fence" accounts, quantify subsidies, promote cost recovery

Better resourced, professional MFF implementation, including larger bid packages, turnkey contracts

Advanced contracting and procurement planning for timely MFF launch and faster impacts

Substantive communication and consultations to tap local knowledge, educate and build support for reforms

Pro-poor, environmentally sensitive and gender-inclusive designs and approaches

1.6 Structure of the Report

23. The structure of this report reflects the scope and logic of the sequencing of work as set out in the original terms of reference. This Introduction constitutes Section 1of the report, Section 2, 3 and 4 present the ‘Key Outputs’ against three key areas of the terms of reference:

1.6.1 Section 2: Key Outputs Part A - Investment Program Facility Preparation

24. This part included the following tasks:

i. Information Collection and Situation Analysis ii. Urban Sector Analysis iii. Urban Sector Road Map iv. Policy Framework: Reform Action Plan v. Institutional Effectiveness Plan vi. Investment Program Preparation

1.6.2 Section 3: Key Outputs Part B -Tranche 1 Preparation

25. This part of the TOR included undertaking detailed design of the Tranche 1 investments for Sialkot and included:

i. Strategy and action plan documents:

a. Strategic Development Plan Framework and Action Plan - Sialkot b. Water Supply Strategy and Action Plan - Sialkot c. Wastewater Management Strategy and Action Plan - Sialkot d. SWM Strategy and Action Plan - Sialkot e. Urban Transport Strategy and Action Plan – Sialkot

ii. Tranche 1 Subprojects Preparation: Feasibility Studies and Preliminary Designs

iii. Implementation Schedule and Arrangement iv. Operational Support Funding Mechanism Component v. Institutional Effectiveness' Component vi. Due Diligence Analysis and Documentation vii. Consultation and Communication

1.6.3 Section 4: Key Outputs Part C - Capacity Development Support for Accelerated Program Implementation 26. This part included undertaking the following:

i. Program Support/Institutional Effectiveness ii. Advance Action, Procurement Planning and Land Acquisition




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iii. Preparation of the Facility Administration Manual iv. MFF Monitoring and Results Measurement.


Section 2 Key Outputs Part A – Investment Program Facility Preparation


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2.0 KEY OUTPUTS PART A- INVESTMENT PROGRAM FACILITY PREPARATION

27. Key output of the PPTA is the complete design of the entire program under the MFF and detailed preparation of the tranche 1 investments. 28. Under part A, following are the key outputs:

2.1 Information Collection and Situation Analysis

2.1.1 Objective

29. To carry out an existing situation review of 12 intermediate cities with populations between 350,000 and 750,000 with the objective of carrying out a comparative analysis of their economic development potential and preparedness to be candidates for urban development financing. 30. The following nine cities in north and central Punjab and two in south Punjab were the subject of this review (Table 1):

Table 1: List of Cities

Sr. No. City 1 Chiniot 2 Gujrat 3 Sargodha 4 Bahawalpur 5 DG Khan 6 Jhang 7 Okara 8 Sahiwal 9 Rahim Yar Khan

10 Kasur 11 Sheikhupura 12 Sialkot

2.1.2 Scope

31. The scope necessary to carry out a comprehensive review of recent trends and existing conditions in the intermediate cities were succinctly set out in the PPTA ToR which included the following factor considerations: geographic conditions, including physical features and spatial

organization demographic data land use and settlement patterns incidence of waterborne and hygiene-related disease Collect and analyze service delivery baseline data Analyze the organization, planning and management of the municipal

infrastructure and services, including capacity, systems and procedures Analyze the municipal staff assignment and recruitment process,

including staffs responsibilities and qualifications by city, performance monitoring and evaluation, compensation and incentive structures, in light of civil service rules, including deputation and contracting policies

Analyze financial condition of 11 cities, including operating and development budgets, revenues and expenditures since 2003. Compile, analyze and summarize urban service-related revenues, expenditures




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and capital investment, breaking-out information by subsector (water supply, sewerage and drainage, solid waste management, urban transport). More detailed analysis required for Sialkot;

Analyze the financial management of the municipal services in each city, including the revenue collection efficiency, the accounting systems, and the budget planning process.

Analyze the competitive advantages/weaknesses and the economic potential of each city, prepare a concise SWOT analysis and city profile, including economic development recommendations for each city.

Assess the capacity of the provincial government, local governments, and current urban service providers to provide sustainable urban services and/or to implement the investment program.

2.1.3 Methodology

32. A detailed questionnaire was prepared for the collection, collation and analysis of the required data from the 12 target cities (Rawalpindi was not included for data collection). The data collected was primarily sourced through field visits to the TMAs. Additionally, all relevant departments at the provincial level were consulted, including the Director General Health Services and Public Health Engineering Departments. 33. Despite the generally cooperative response at the local and provincial level, the team encountered inadequacies due to a lack of a systematic approach to collection, recording, collation, irregular up-dating and processing. In particular, in relation to water supply and quality considerations, no information was available in respect of the incidence of waterborne and hygiene-related disease. Data shortfalls were mainly due to the lack of institutional capacity at the TMA level.

34. The raw data was maintained in project data files of the completed questionnaires and the analysis was compiled into a series City Profiles. All the City profiles had the same structure to facilitate comparability and where data was unavailable is noted in the profiling report. 35. The existing situation findings from the City Profiling were assessed and summarised in an aggregate form under a number of factor categorise to comparatively evaluate their relative competitive advantage and economic potential to act as economic drivers and candidates for future tranches of ADB physical and non-physical investment support. 36. A summary of the findings from the City Profiles are described below

2.1.4 City Profile Findings 37. Each of the city profiles captures comparative data and information on the following subjects: socio-economic, environment, geographic conditions, physical features, spatial organization, demographic trends, land use and settlement patterns, major projects and future development as well as human resource capacities, institutional organization, and management of urban planning and for the provision and delivery of municipal infrastructure and services, including capacity, systems and procedures and financial condition. Health service indicators also included the incidence of waterborne and hygiene-related diseases.




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38. In the following, a brief accumulative analysis of the main features compiled from the 12 city profiles is presented3. 39. Please see the City Profiles for further details.

2.1.5 Service Delivery Baseline Data a. Water Supply

40. Secondary sources and field information revealed that none of 12 intermediate cities has 100% coverage of water supply system. The average population in all 12 cities having pipe water services was 52%. In only 3 cities was the service coverage at a reasonably acceptable level of 70-80%, but even in these cities the reliability of services was poor with water being supplied on an intermittent basis and at variable pressure. The quality of water supplied at any point in the distribution systems was not known since no regular sampling and analysis by the TMA is carried out but intermittent supplies and pressure losses are likely to pose significant problems in this regard. 41. None of the cities has metered connections. Generally, industrial units and large commercial identities have their own water supply arrangements. b. Sewerage and Drainage Services

42. The sewerage and drainage service converge varies considerably from city to city. On the average, from all 12 cities about 54% populations had sewerage facilities. Variation in coverage is exemplified by the fact that whilst 4 cities registered coverage of between 82%-90%, another 40% - 50% or less having access to sewerage with Kasur4 registering a pitiful 1% and surprisingly, only 25% for Sialkot. 43. In all cities, waste water is mostly discharged to open drains, which are connected to a nearby sewer system, a collector drain or, on the outskirts of towns and cities, directly to agricultural land and/or agricultural drains. Of concern is that a significant portion of wastewater is used for irrigation, sometimes directly but more often after extraction from main drains. 44. Field investigations indicated that most urban households in 12 cities have in-house toilet facilities. In most cases, where there is no sewer, it is common to connect the house WC to a small septic tank located in the public right-of-way. Unfortunately, WC connections are also often made direct to open drains as is sullage water where there is no sewer. Almost all cities dispose untreated waste water to nearby waterways or discharge areas. 45. Poor maintenance was observed in all cities often resulting into overflows to low lying areas and problems compounded by farmers blocking sewers and drains in order to raise wastewater levels to a point that can be diverted to irrigate fields.

3 Further details are available in the individual City Profile Reports. 4 Kasur has a combined effluent treatment plant to serve tanneries but it s capacity is inadequate and does not receive flows from smaller businesses resulting in widespread wastewater pollution.




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46. In most of cities, poor planning and piecemeal extensions are observed. Most have combined systems of sewerage and storm water resulting in surface flooding and ponding during periods of heavy rainfall. c. Solid Waste Management Services

47. Even though SWM services in all cities are managed by the TMAs, there are is no effective collection or disposal system in any city except Chiniot where PMDFC has recently completed a landfill site. Informal scavenging is carried out in all cities but it is reported that practices in many of the cities includes the collection of clinical waste which is re-cycled and sold locally. 48. The failures of the SWM system can be attributed to the following key factors: TMA SWM departments are poorly resourced, are significantly understaffed in

the management and skilled labour categories, resulting in inadequate planning capacity, poor information and weak financial management

TMA budget allocations are only sufficient to cover salaries and basic equipment operations for a small percentage of their municipal waste demands

Institutional roles, responsibilities and operational functions are fragmented, lack a clear division of responsibilities and suffer from inadequate planning, management and enforcement capacity

A national legal and regulatory framework is in place but even a basic level of compliance cannot be met.

d. Urban Transport Services

49. Local Government Ordinance 2001 provides all powers and responsibilities to the TMAs to deliver Transport Planning, Development and Planning Control functions but lack of competency and non-availability of technical manpower in general is a major constraint in the functioning of these organizations. 50. Technical manpower is made available to District Governments through hiring the professionals from C&W Department who are executing city works but all TMAs are deprived of this facility. 51. As a result the following organisation and institutional problems exist for all cities: Organizations at the provincial level suffer from their multiplicity, overlapping

responsibilities, lack of competitiveness and poor service performance Urban transport management in all cities suffers from lack of technical

capacity and jurisdictional, functional and operational coordination amongst organizations

Lack of trained manpower with local agencies in transport sector and understanding towards basic road engineering field is a major issue that leads to usually poor decision making and adverse consequences

Public transport planning and regulatory control / operations are usually mixed in the absence of trained staff and availability of professional manpower

None of city has any urban transport plans and there is no intention to develop these in future




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52. Regardless of the above shortcomings, it was found that road infrastructure in most of the cities was essentially adequate to serve existing needs. But, the effective capacity of the major roads are reduced by poorly designed and engineered road junctions, inadequate traffic signals, poor traffic management, compounded by a lack of discipline and poor compliance with traffic regulations on the part of drivers, and the mix of motorised and non-motorised traffic on all roads. 53. Compounding thee inefficiencies the movement of people and goods the cities mainly rely on auto rickshaws and motor cycle rickshaws, there is no urban bus or van service and only in a few cities are small pick-up vans been gradually introduced as urban transport. But in general private sector involvement in urban transport is generally limited to the provision of urban transport services and there is limited public awareness. 54. The resulting traffic congestion, together with a large number of vehicles producing high levels of exhaust emission, has serious environmental implications and reduces the economic performance and competitiveness of the cities. e. Human Resources 55. Staffing levels for the past three years for key TMA management designations at different levels in the organisation were analysed according to post filled through by permanent or contract or vacancy by period contract according to sanctioned job positions. The tabulated data tables compiled were analysed to provide an indication of the human resource status of each city’s TMA office.

2.1.6 Results 56. Analysis was also carried out on the municipal staff assignment and recruitment process, including staffs responsibilities and qualifications, performance monitoring and evaluation, compensation and incentive structures, in light of civil service rules, including deputation and contracting policies. 57. It was evident that for all the cities the concept of Human Resource Management is new in Local Government and not understood by most government officials. There is little or no experience of human resource (HR) management, either at the corporate level, or within the service areas, i.e. departments in TMA. The HR management at the centre is mainly involved in the administration of the transfers, postings, and recruitment processes. Departments do not have any specifically identified staff engaged in the HR work. However budgets are devolved to departments in accordance with their staffing complement and departments are then responsible for payment of salaries and benefits. a. Financial and Economic 58. At the inception and post inception phases of the project, the finance team visited Sialkot, Sargodha, Gujrat and Sheikhupura to obtain the overall financial picture of the key service providers and also conducted the literature review of the major documents and studies conducted by other donor agencies. Due to time constraints the consultant team could not visit the remaining intermediate cities of Punjab. However, the team did manage to collect the secondary financial data from their budget books and conducted from which the overall financial situation analysis of the 12 cities was undertaking in a systematic way to facilitate comparative evaluation. The data and information collected and summary findings are:




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Collection against Demand 59. 5 out of the 12 cities recorded good performance for revenues collected against customer water rate billing, indicating an effective TMA departmental performance and a willingness to pay by the consumer. No data was available from 3 of the cities and the remaining 3 had a poor performance Meeting Operation and Maintenance Costs 60. Only 2 cities recorded that revenues generated were sufficient to cover operation and maintenance costs (O&M)., 6 fell short and for and for the remaining 4 no data was available. Noteworthy is the fact that in practice repair and maintenance costs are not included in O&M and the costs are met from development expenditure. Investment in Service Provision 61. In general those cities with a good collection against demand record and revenues at per above 75% of O&M costs, tended to have managed their budgets within their financial envelopes and generated surpluses. Theoretically, surpluses could be used for the improvement of infrastructure related to water supply/sanitation and other municipal services but in practice in the past5 it was difficult for local governments in Punjab to spend on development projects and this has resulted in poor utilization rates. Procedures have now changed and approval does not have to be through the council giving the TMAs full leverage to finance infrastructure projects. But it is understood that due to shifts in the provincial government policies it often remains difficult for the TMAs to finance mega infrastructure projects without the financial assistance from provincial/ federal governments, donors or private investors. 62. Overall, and not surprisingly, the utilisation for non-development revenue expenditures is more reasonable than the development side. This indicates that there is a need to harmonise provincial and local government policy mechanisms and to establish municipal finance systems whereby the under expenditure trends could be discourage and the limited financial resources could be used for improving the urban services. b. Urban Planning 63. The implementation of planning criteria set by the government is weak and the concept of integrated planning approach does not exist. The finance departments of TMAs are of the view that the ‘road map’ of the provincial government is generally not strictly followed and decisions are influenced by other factors such as political priorities that influence the distribution of financial resources and pose some of the core problems for the TMA planning process. 64. The Punjab Housing and Physical Planning Department (PHPPD) prepared outline development plans for each city to facilitate the control and guidance of urban development and future provision of municipal infrastructure and services, Most of these plans are not comprehensive and out of date. Only a few TMAs (Gujrat, Kasur and Jhang) have revised and updated their outline development plans but generally the priorities identified remain, although valid, over ambitious in their assumptions and operationally impractical to guide and control development.

5 Previously TMA development and capital expenditure under the PLGO 2001 had to be approved by the

concerned local government. And when it came to the council the elected representatives generally had their own priorities the counted against using PPP arrangements for the execution of major infrastructure projects.




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65. Under a World Bank financed initiative (1993-94), Urban Master Plans were also prepared for ten intermediate Punjab cities: Gujranwala, Sialkot, Sheikhupura, Sargodha, Rahim Yar Khan, Bahawalpur, Sahiwal, Vehari, Burewala and Mian Channu and the related feasibility studies remain a good source of information on municipal services.

2.1.7 Summary – City Profiles Comparative Analysis 66. Each city profile includes a summary in the form of a SWOT tabulated analysis that provides an inter-city profile comparative performance evaluation. This ‘snapshot comparative summary groups all factor considerations for all cities under four groupings: economic, technical, financial and management. The factors were registered as actual numerical values/ranges or inference values drawn from evidence-based information. The factor assessments were then scored comparatively against a range of values and, to the aggregate scores, a group weighting applied to enable the cities to be ranked according to their competitive advantage potential to act as economic drivers and their relative merit to be considered candidates for future tranches of ADB physical and non-physical investment support. 67. The summary comparative analysis of the city profiles is presented in Tables 2 and Figure 1 displays of the weighted score distribution by the four key factor groupings (Ref: Box 2.1) and Figure 1 and 2 shows the overall aggregate weighted scores weighted score and resultant relative ranking of the 12 cities.

BOX 2.1: KEY FACTOR GROUPINGS ECONOMIC Connectivity: Based on distance and available transport networks to major urban centers. Population 2010: Figures from Urban Unit. Poor = 300k-400 Fair = 400-600 Good = 600+ Population 2020: Estimates from Urban Unit Poor = 0-400 Fair = 400-600 Good = 600+ Economic Activity: the overall level of economic activity and the degree of economic

diversification. Transport: the degree to which urban transportation infrastructure was generally considered

adequate for existing requirements.

TECHNICAL Sewerage: Percent of population with sewerage and drainage services provided by TMA Waste: The overall condition of solid waste management in the city. Water: Percent of population with registered water supply provided by TMA Collection against demand: The overall collection from water supply services against demand

(2005-2009)

FINANCIAL Collection against demand: Meets O&M Cost: Is the revenue collected generally sufficient to meet the operation and

management cost (2005-2009) Investment in services: The overall state of investment in public services (2005-present)

MANAGEMENT Collection Against Demand: Capacity to provide -a qualitative assessment of section 3F of the

city profiles TMA Management: Taken by the percentage of filled months for all five positions over the

total number of months in the reporting period (07/08-09/10) TMA Staff: Taken by dividing the total number of vacancies over the sanctioned strength.




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Table 2: Summary of 12 TMAs

City

Economic Technical Financial Management

Connectivity Population Population Economic

Activity Service Delivery (Coverage) Collection

Against Demand

Meets O&M Cost

Investment in

Services

TMA Management

Filled

TMA Staff Filled 2010 2020 Transport Sewerage Waste Water

Chiniot Good 304,917 357,722 Fair Yes 50% Poor 75% Good Yes Poor 80% 88% Kasur Good 404,550 495,082 Good Yes 1% Fair 70% Fair No Poor 93% 70% Sheikhupura Good 503,817 623,852 Good No 30% Poor 40% - - Poor 83% 99% Okara Fair 447,779 519,319 Fair No 55% Fair 70% Poor - Poor 92% 82% Sahiwal Fair 406,681 482,775 Good Yes 90% Poor 90% Good No Poor 95% 87% Rahim Yar Khan Fair 468,431 581,173 Good Yes 85% Poor 40% Good Yes Fair 85% 76%

Bahawalpur Fair 644,872 822,276 Good Yes 82% Poor 3% Good No Fair 48% 90% Sargodha Good 692,250 862,227 Good Yes 85% Poor 70% - - - 73% 94% Gujrat Good 421,211 500,515 Fair Yes 50% Poor 70% - - - 96% 96% Dera Ghazi Khan Fair 421,308 539,310 Fair No 60% Poor 80% Poor No - 54% 92%

Jhang Fair 466,121 551,707 Fair Yes 80% Poor 25% Poor No Poor 68% 52% Sialkot Good 809,588 1,007,390 Good Yes 20% Poor 35% Good No Good 83% 92% Source: GHK analysis based on data collected for developing city profiles

Good Fair Poor




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Figure 1: Overall Weighted Score W

eigh

ted

Scor

e

Cities

Source: GHK analysis based on data collected for developing city profiles

Figure 2: Overall Weighted Score

Source: GHK analysis based on data collected for developing city profiles




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2.2 Urban Sector Analysis 2.2.1 Introduction

68. The urban sector analysis required doing the following:

A review of policies and policy statement Study of the existing and completed studies, projects and programs An assessment of the success factors and constraints Analysis of policies, including their impact and covering existing and

proposed regulatory arrangements A review of tariff policies An assessment of procurement procedures A review of private sector involvement in water supply, wastewater collection

and disposal and solid waste management. Estimate total sector infrastructure and institutional support/capacity building

needs to reach these objectives for the period 2010-2030 (this is covered in the Road Map)

2.2.2 Policy Statements

69. The Government of Pakistan has prepared an Interim Poverty Reduction Strategy Paper. Based on data obtained in 2001 from the combined Household Income-Expenditure Survey (HIES) and Pakistan Households Integrated Survey (PHIS), this estimated the distribution of households as follows: non-poor, 15.3%, transitory non-poor 32.2%, transitory vulnerable 20.4%, transitory poor 20.1%, chronically poor 10.4% and extremely poor 1.6%.

70. Pakistan's Poverty Reduction Strategy Paper, the 2005 Medium-Term Development Framework (MTDF 2005–2010), and Vision 2030 identify economic growth, improved governance, devolution and human development as being essential to the reduction of poverty. The MTDF also prioritizes investments in balanced rural and urban development, upgrading physical infrastructure.

71. Vision 2030 for Pakistan, and the Punjab Chief Minister’s 2020 Vision for the urban sector identify a need to create world–class infrastructure and services, supporting modern urban centres. Strengthened systems of urban governance and significantly improved urban planning and management frameworks are required to achieve these objectives. These, in turn are seen to require increasing competition, private sector involvement, efficiency, equity of access to services, transparency, environmental sustainability, and value for money in both capital investment and operation and maintenance. Punjab cities are growing beyond their strict jurisdictional boundaries. Institutional structures are required which can strengthen city-regional planning and support improved and equitable levels of service provision in both urban and peri-urban areas.

72. The Federal Government Ministry of the Environment has produced a National sanitation Policy, (available at (www.environment.gov.pk/NEP/SanitationPolicy.pdf). This has been officially adopted by the Federal Government. The overall aim of this policy is to eliminate open defecation. It includes several ideas derived from the thinking of the Orangi Pilot Project in Karachi, for instance requiring adoption of the OPP’s component sharing model and suggesting that successful sanitation projects should be ‘model’ training centres for government officials, NGO representatives and other stakeholders.

http://www.environment.gov.pk/NEP/SanitationPolicy.pdf




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73. The Federal Ministry of the Environment has produced a National Drinking Water Policy (www.environment.gov.pk/actrules/d_national_drinking_water_policy.pdf).This emphasises that access to water is a right and requires that the role of the State be balanced between its functions as service provider and regulator. The policy includes the dubious goals of ensuring that water filtration plants are provided in each District and Tehsil and that water treatment plants are established in all urban areas by 2015. In practice, treatment other than chlorination would appear to be unnecessary for areas relying on non-saline groundwater, which is the situation in large parts of Punjab. The policy requires that Provincial and Area Governments will be responsible for developing policy guidelines at their own levels.

74. In 2007, the Urban Unit produced a draft urban water and sanitation policy (available at http://www.urbanunit.gov.pk/downloads/pl-puwsp.pdf). This emphasises the concepts of sustainable development, community participation and capacity-building among others. It promotes the role of the private sector in aspects of service provision and requires that the Government of Punjab should notify a legal and regulatory framework to transform WASAs and other public sector water providers into independent utilities with optimum levels of administrative, financial and legal autonomy. The policy calls for the promulgation of a Punjab Urban Water Act, a WASCO act to establish corporate independent Water and Sanitation Utilities in cities and a Punjab Municipal Services Regulatory Act for the establishment of a regulator for water and sanitation services. More recently, the Government of Punjab has funded efforts to develop a regulatory framework that would provide more detail as to how this objective can be achieved in practice. 75. Local Government and Community Development Department of Government of Punjab has notified Punjab Municipal Solid Waste Management Guidelines (2007) which only cover the municipal waste. The guidelines encourage the landfill sites as final disposal of biodegradable items. The guidelines also emphasize the importance of imparting training to the solid waste workers, encourage door to door collection, and emphasizes waste hierarchy i.e. reduce, reuse, recycle and recover should be encouraged. A daily record of the quantity of solid waste collected to be maintained is also mentioned in the guidelines. 76. Punjab Landfill site Policy 2008, draft by Government of Punjab in 2008 is to facilitate, guide and support local governments in establishing proper landfill sites in the province based on the concept of waste hierarchy that is waste reuse, reduction, recycling and recovery in the province. The policy provides an overarching framework that would address the legal, regulatory, institutional, administrative, environmental issues and challenges faced by the stakeholders. The main objective of the Punjab Landfill site Policy 2008:

To minimize externalities associated with unregulated waste dumping To establish and strengthen the institutional arrangements for landfill site development, operation, maintenance and post closure To improve the overall solid waste management system in the cities by

providing well managed sanitary landfill sites

77. Punjab Municipal Solid Waste Management Policy developed by the Government of Punjab in 2008 is a Draft. This policy revolves around four goals for moving towards the vision for Municipal Solid Waste Management in Punjab:

Goal 1: To manage municipal solid waste with focus on protection of environment

and public health with an ultimate aim to conserve natural resources.

http://www.environment.gov.pk/actrules/D_NATIONAL_DRINKING_WATER_POLICY.pdf

http://www.urbanunit.gov.pk/downloads/pl-puwsp.pdf




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Goal 2: To implement waste hierarchy (reduce, reuse, recycle and recovery) to ensure waste diversion from landfills. .

Goal 3: To manage waste in a manner to optimize environmental benefits and minimize environmental cost to be borne by the citizens, businesses and taxpayers.

Goal 4: To make waste producers, who use or benefit from the system, bear cost of the Solid Waste Management systems.

78. Punjab Municipal Solid Waste Management Rules have also been developed by the Government of Punjab in 2008 but still are a Draft. 79. Transport in Punjab is regulated through Provincial Motor Vehicles Ordinance (MVO), 1965, Provincial Motor Vehicles Rules (MVR), 1969, Motor Vehicles Act, 1939, Fatal Accidents Act 1955 and National Highways Safety Ordinance, 2000. 80. MVO,1965 deals with licensing of drivers, registration of motor vehicles and control of Transport Vehicles, Road Transport Corporation, Construction, Equipment and Maintenance of Motor Vehicles, Control of Traffic and Offences and Penalties and Procedure. The term ‘’Motor Vehicle’’ as used in MVO1965, means mechanically propelled vehicles adopted for use on road, whereas ‘’Transport Vehicle” are public service vehicles to be used on hire basis. The Ordinance provides mandatory registration of motor vehicles and licensing of drivers. Transport vehicles are required to obtain fitness certificate prior to registration and licensing for route permit by regulatory authorities. MVO provides for traffic control but does not cover all aspects of Road Traffic Control, Regulation and Public Road Space Management. The Motor Vehicles Rules (MVR), 1969 provide mechanism clauses for carrying out the provisions of MVO, 1965.

81. Recognizing the ineffectiveness of present urban planning practice in Pakistan, the Punjab Land Use Rules (2009) were prepared in an effort to learn from the past by creating a comprehensive system for the classification and reclassification of land use, formally introducing concepts such as plan maps, peri-urban local plans and road corridor plans, reclassification and redevelopment schemes, and linking the planning process with land use conversion permissions. The Rules have been notified province-wide and are in use in Lahore. Training is being provided to staff of other cities in their use, and land use classification mapping is underway. Although the Rules, as intended, create a comprehensive planning system, they would, if fully implemented in the near future also require resources that are far in excess of many intermediate cities of Punjab. Other relevant studies include the following: 1. The Punjab Development of Cities Act, 1976 2. Punjab Local Government Ordinances 2001 3. Punjab Private Housing Scheme & Land Sub Division Rules 2010 4. Urban Property Tax Reforms (Guidelines & Recommendations)

2.2.3 Studies, Projects and Programs

a. Studies

82. One of the most important recent studies on urban water and sanitation was that carried out by the German consultant Fichtner, with funding provided by the World Bank. This involved detailed investigations in a number of cities and towns and recommendations as to reforms to be delivered in order to facilitate better




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sector performance. The towns and cities studied included four with WASAs – Faisalabad, Gujranwala, Multan and Rawalpindi – and four systems managed by TMAs – Bahawalpur, DG Khan, Sargodha and Sialkot. In addition to detailed studies of water supply and sanitation services in the eight towns, the study included specialised studies on tariffs and institutional options. The intention was that the study would provide the Government of Punjab with clear guidelines as to how to reform the sector so as to provide improved services that were both affordable and sustainable. 83. To upgrade drinking water supply in the major cities of the Province of Punjab, the Pakistani Government has set up a reform program for guidelines and institutions in this sector. Under this program, Fichtner investigated options for upgrading the effectiveness of drinking water supply and sanitation services by entering into contractual agreements and public-private partnerships as well as providing financial incentives. On the basis of the assessment of these options, rules for fixing utilization costs were prepared, and measures for monitoring the quality of water supply and sanitation services defined. These standards make an important contribution to improving the quality of life in Pakistan’s most highly populated province.

84. A report prepared for the PHED in early 2010 recommends models for the provision of water supply and sewerage/drainage services to small towns (normally classed as CO towns under the 2001 PLGO but previously the responsibility of either town or municipal committees. The report also sets out a strategy for improving services in these towns, emphasising the need for support and guidance from higher-level organisations and suggesting that this support and guidance might be provided by a Provincial-level organisation set up under the Companies Ordinance. No action has been taken on this proposal to date although it is clearly influencing Government thinking.

85. Studies confirm that poverty is greater in southern Punjab than in central and northern Punjab. One consequence of this has been direction of projects towards south Punjab. One example is the ADB’s South Punjab Basic Urban Services Project, which covered 21 TMAs in South Punjab and also included a component for wastewater treatment in Multan. Sub-projects financed through the loan covered solid waste management, including landfills, wastewater collection and disposal and water supply among others.

86. A study on wastewater treatment options for Punjab was carried out through the ADB-funded Punjab Devolved Social Services Program (PDSSP). This covered cities, medium and small sized towns as well as villages. The Urban Unit will publish the report and recommendations from this study. 87. In recent years, there have been several studies on aspects of solid waste management. Most important of these studies include Punjab Solid Waste Management Reforms undertaken by the World Bank in 2007 and Solid Waste Management in Punjab, Pakistan by Korean International Cooperation Agency ( KOICA) and World Bank in 2007. 88. The World Bank study of 2007 has been developed after extensive stakeholder consultations in nine cities of Punjab (Lahore, Faisalabad, Rawalpindi, Multan, Gujranwala, Sargodha Sialkot, Bahawalpur DG Khan). The report highlights some common issues in all these nine cities:




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Insufficient collection and transport of waste to official dumpsites Inefficient street sweeping Lack of proper bin and container-based pick up system Shortage of vehicles and equipments Limited use of composting plants ( Lahore and other in Multan) Lack of properly designed and operated sanitary landfill Lack of departmental step-up of SWM department within Municipal

authorities except CDG Lahore Shortage of management and planning capacity Required to increase skilled and qualified professionals Proper Private sector partnership 89. The study undertaken by KOICA-World Bank jointly (Solid Waste Management in Punjab, Pakistan) in 2007 is very comprehensive documented into five main sections including two case studies conducted on SWM in Lahore and Sialkot. The report highlights the key issues in the solid waste management sector in Punjab. 90. JICA has recently completed Basic Study on Solid Waste Management of Gujranwala, Sargodha, Faisalabad, Lahore, Rawalpindi, Multan and Sialkot. The key objective of the study was to understand the overall solid waste management sector development polices, plans, strategies and programs of Government of Punjab, to investigate and analyze present status and problems of solid waste management sector in each of the seven focused cities and to identify one potentially promising candidate city for long term and integrated JICA support in the field of solid waste management

91. World Bank in 2010 has completed “Establishing Integrated Solid Waste Management in the Large Cities of Pakistan”, in Multan. A very detailed analysis of the Solid Waste Management Systems prevailing in Multan was undertaken from technical, institutional, and finance perspectives. Major economic, institutional, social, environmental, and governance issues and opportunities including options for private provision of solid waste management services were also covered. 92. In 2009, Infrastructure Project Development Facility (IPDF) has completed a very detailed study for Faisalabad City to; examine and review existing legal, organizational, technical, environmental, social and financial aspects of Solid Waste management and to recommend cost recovery mechanisms and targets, to design /develop Public Private Partnership models and to design a comprehensive monitoring and evaluation mechanism 93. Pakistan Urban Sector Strategy Study has been developed under ADB support in 2000. The study covered overall issues of Urban Sector and also identified number of Strategies for consideration and pursuance by the government and which may attract support from external agencies.

94. The World Bank has also supported Feasibility Studies and Urban Master Planning of ten cities of Punjab (1996). The plan period was 20 years (1994-2019) The following cities were covered in the master Plan Sialkot, Sheikhupura, Gujranwala, Sahiwal, Rahim Yar Khan, Bahawalpur, Sargodha, Vehari Booreywala, and Mian Channu. 95. There is not sufficient literature and study work relevant to Urban Transport at the level of intermediate cities in Punjab. However, some useful studies are




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available for Provincial Metropolis of Lahore and some minor work in case of other large cities. However, following urban transport related studies have been reviewed:

Urban Unit, Planning and Development Department, GoPb, Urban Transport

Policy Study for Five Cities of Punjab Province, Dainichi Consultant Incorporated, 2008.

Institutional Development of Traffic Management Unit for Ferozepur Road Pilot Project, MVA, 2007.Urban Unit, Planning and Development Department

Comprehensive Study for Transportation Systems in Lahore, JICA, 1990, Traffic Engineering and Transport Planning Agency (TEPA)

Urban Regeneration Study for CBD, an on-going study analysis, Al-Imam &TTEC, Lahore.2010, TEPA, Lahore

96. A pre-Feasibility Study for Urban Transport and Industrial Waste Management has been undertaken in Faisalabad. The main objective of Pre-Feasibility Study was to: prepare coordinated Pre-Feasibility Studies for infrastructure investment projects in the areas of urban transport and industrial waste management for the city of Faisalabad and pursue potential infrastructure financing through domestic, international or private sector lending institutions for investment projects. Examine potential for overall impact on improving the urban environment as well as contributing to poverty reduction. The study was financed by CDIA-ADB. 97. 94. Key findings of above mentioned urban transport studies are that rapid urbanization in Punjab has accelerated growing urban transport issues and levels of urban transport delivery are low. The public transport services are inadequate and poorly regulated. Road infrastructure also suffers from premature pavement failures as a result of poor road drainage, heavy loadings and ineffective controls and traffic regulations. Absence of any relationship between land use and transport system and transport plan, ineffective traffic regulations, inappropriate traffic mix, poor driver behaviour, low levels of traffic supervision, growing problem of uncontrolled road side parking and illegal road occupations also add to the road congestion, emission levels and environmental pollution. Passenger transfer activity at Bus Stations is significant but their operational management is poor, unhygienic conditions prevail and control is deficient. Goods terminals are scattered and often operating on road side reserves. b. Projects and Programs

98. The Punjab Resource Management Program (PRMP), which aimed to improve short to medium-term fiscal management in the province, also had a strong southern focus. Its outputs were intended to include (i) better strategic programming for poverty reduction, and (ii) restructured and strengthened government, administration and human resource development. The project was designed to impact upon local government in the southern districts of Punjab. As such, it was designed to impact on local government in Bahawalpur, Bahawalnagar and Rahim Yar Khan Districts.

99. The Punjab Municipal Services Improvement Project (PMSIP) is working with TMAs to both build capacity and provide infrastructure services. It receives funding from the World Bank and is administered by the Punjab Municipal Development Fund Company (PMDFC). PMDFC is a public company, set up under the Companies Ordinance. Its Managing Director is a senior Government civil servant with most other posts recruited on merit from the private sector. PMDFC is




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governed by a Board, consisting of both Government and non-government representatives with the latter including prominent persons from the business community. The project has the following two components; Institutional & Infrastructure Development of TMAs: This component includes

capacity building sub projects consisting of training/workshops for TMA staff, infrastructure building and database and benchmarking of TMAs and an introduction to modern techniques of spatial planning and mapping. The project also aims at introducing Performance management systems and financial management systems at the TMA level. These activities are aimed at strengthening human resource development of TMAs, manage growth of cities using spatial planning as a tool and increasing the capacity of TMAs to effectively deliver and measure urban and municipal services.

Capacity Building of Punjab Municipal Development Fund Company,

Government of Punjab, and the Urban Unit: Capacity building initiatives with the mentioned departments include trainings on performance management, appraisal, supervision and monitoring of grants, support of human resource management and effective implementation of projects aimed at overall efficiency gains in urban services.

100. Southern Punjab Basic Urban Services Project (SPBUS) is another Asian Development Bank funded program. The projects geographical focus was in 21 towns in Southern Punjab including towns in Multan and Bahawalpur. SPBUS has the following two components:

Development of infrastructure for basic urban services including community

development and participation Institutional Development including development of municipal management

system for local government agencies, support of project implementation and incremental administration support

101. Rawalpindi Environment Improvement Project (REIP) is funded by the Asian Development Bank. The project began in 2005 and is currently being implemented by the Rawalpindi Development Authority. The project focuses primarily on area in and around the City District of Rawalpindi. Its major sectoral focus is on Environment and Environmental Management. The project comprises the following components: (i) environmental sanitation; (ii) water supply services; and (iii) institutional development, including financial management system, database development for the TMA 102. A number of different projects are being implemented in Punjab relating to solid waste management. The Urban Unit is implementing a number of projects related to solid waste management. Below are some of the completed and ongoing projects:

Integrated Solid Waste Management Plan in Rahim Yar Khan and Sahiwal Scoping of the proposed Landfill site of Sahiwal Solid Waste Management Plan for Kallar Kahar, Choa Saiden Shah and

Gujjar Khan Capacity Development for Solid Waste Management in Punjab Development and Management of Waste Disposal Site (LFS) in Rawalpindi Management Contract for Collection, Transportation and Disposal of Waste

of Faisalabad City




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Establishment of Work Transfer Stations (WTSs) / Resource Recovery sites in 8 Towns of Faisalabad

Development and Management of Waste Disposal Site (WDS) in Rawalpindi

103. Few of their ongoing projects include capacity building on waste management, establishment of Solid Waste Management Academy, preparation of solid waste management plans of Murree, Pasroor and development of guidelines.

Lahore Waste Management Company (LWMC) has been established to

dispose the waste of Lahore on scientific basis and for making the city cleaner and pollution free. LWMC is developing and extending its services to meet the modern day challenges, and is committed to the principle of sustainable waste management.

Faisalabad Area Upgrading Project (FAUP) was a project funded by the Department for International Development. The project was initiated in 1991 and completed in 2003 and worked in urban areas of Faisalabad.

104. Strengthening Decentralized Local Government in Faisalabad project was funded by DFID. The project had a strong focus towards improving the urban service delivery to the citizens through establishing establish efficient and effective local government in Faisalabad district which is responsive to the needs of local communities and priorities of poor people, and which can be replicated elsewhere in country. 105. Punjab Housing and Physical Planning Department developed outline development plan about over 100 towns of Punjab. These plans were developed after detail survey of land use and other relevant technical surveys like traffic study etc. Towns have not used these plans in their planning purposes and most of these plans are now outdated.

106. Lahore Urban Transport Project (LUTP)- is funded by the World Bank. The Project consists of the following components

Traffic Management and Road Infrastructure Expansion: Intersection improvements and traffic management measures New road links Traffic Signals Bus route improvements Design and Supervision Road agency strengthening Transport master planning Traffic Safety program Transport Regulatory Body and Bus network planning Transport Infrastructure Maintenance: Road, sidewalk, and drain rehabilitation Design and supervision Maintenance management system

107. One issue that has clearly emerged from these projects is the lack of service management capacity at the TMA level. Experience in Punjab and elsewhere in Pakistan is that it is difficult to guarantee ongoing operation of wastewater treatment plants and it is not clear how many of the solid waste landfills proposed under SPBSP have actually been constructed and are now operational. PMSIP has emphasised the need to develop improved management and operational practices




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and has piloted improved water supply operational systems in Kasur and Jhelum. In Kasur, term contracts with local workshops have been introduced to cover repairs and major maintenance activities for tubewell pumps and motors. Improved operational procedures in both towns involve routine monitoring of tubewell pump running times, metered discharge and electricity consumption. This enables the performance of each pump set to be monitored and prompt action to be taken in the event that a problem (perhaps higher electricity consumption in relation to water pumped) is identified.

108. The Kasur approach involves separate contracts for the supply of (a) parts and materials and (b) labour and machinery required to carry out essential maintenance of tubewells. The contract for the supply of parts and materials is based on the need to keep stocks in the newly introduced TMA stores system at a minimum level. That for the provision of labour and machinery is with a local workshop. The faulty item (typically a pump or a motor) is inspected by representatives of the TMA and the workshop and the work required is agreed. The parts required to carry out the work are then issued from the store and the contactor (the workshop) then carries out the work or arranges to have it carried out by a specialist workshop in Lahore, at the rate agreed in the contract. The rationale for the separation of the two contracts is that this reduces the potential for corruption.

2.2.4 Success Factors and Constraints

109. The Vision 2030 for Pakistan suggests that the key success factors for improved sector performance are (i) improved alignment of urban institutions; (ii) better mechanisms for accountability; and (iii) improved urban management capacity. These factors underpin strategic sector objectives. For water supply, wastewater management and SWM, the stated aim is to improve the quality, coverage and reliability of services. For urban transport, the objective is to support public transport facilities and to extend the reach, coverage and continuity of public and non-motorised transport services and improve traffic management to increase convenience, and reduce pollution, noise and traffic accidents. The key issue is, of course, how to turn these general aspirations into concrete and measurable achievements. This, in turn, requires attention to constraints.

110. Related constraints include the lack of technical expertise at the TMA level and the relatively small number of consultants with good planning and design capabilities in the water supply, wastewater disposal and solid waste management sectors.

111. Inspection of designs and project documents produced by TMAs and the PHED suggests that government technical departments have suffered from de-skilling in recent years. The quality of drawings and calculations produced by both are very poor and certainly not of sufficient quality to be used for large and complex projects. There is a general reluctance to consider the use of materials and methods that are in widespread use in other countries. For instance, polyethylene is not used for water supply mains and is only being used for water connections for the World Bank-funded PMSIP. The reason given for this is that polyethylene is too expensive but analysis shows that it is actually cheaper than galvanised steel pipe and comparable with Class B and C PVC for smaller diameter mains.

112. This deskilling of the government technical departments arises in part because political factors have resulted in a proliferation of small schemes since devolution in 2001. One aspect of this is a tendency to respond to symptoms rather than causes and a failure to produce overall plans for service improvement.




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113. Though significant urban investment is made for developing road infrastructure and in many cases oversupply of road space but little goes for traffic management, appropriate road space management, safety of vulnerable road users and priority for pedestrians, NMT and Public Transport. Resultantly road infrastructure remains inefficient, congestion prevails, traffic controls are inadequate and in many cases are missing. Mobility of urban masses suffers; cities remain less productive, uncompetitive and job deficient. 114. The institutional framework for urban planning is still marred by overlapping jurisdictions and powers. The legal provisions for planning, review, approval and monitoring arrangements are not streamlined. There are no institutional coordination mechanism particularly to link the decision making processes about budgets, and infrastructure improvement and development with those of land management.

2.2.5 Policy Analysis

115. There is a clear problem in that some policies and programmes have been initiated at Federal level with apparently limited buy-in from Provincial and lower level stakeholders. The National Sanitation Policy is a good example of this. Its theoretical requirement for a component-sharing approach is not widely followed in practice and indeed most local government officers and WASA officials are unaware of it.

116. Another Federal policy which would not necessarily have been promulgated by the Punjab Government is that of providing water filtration plants in every union council. Such plants are unnecessary where supply is from groundwater via tubewells and little thought appears to have been given to how the plants will be maintained. Regardless of this, providing relatively small quantities of water at central locations, from which it has to be carried back to the house in containers, is likely to have very limited public health benefits.

117. Some recent rulings at the Provincial level have constrained change. In particular, an instruction some years ago from the Local Government and Community Department (LGCD) that bill collection services were not to be contracted out stopped at least one promising initiative based on contracting out these services to the private sector.

118. There is arguably a need for government departments to play a more proactive role in supporting service delivery improvement initiatives. For instance, the initiative to improve tubewell operation in Kasur, will have to be widely replicated if it is to lead to lasting change. The best way to ensure that this is done will be for LGCD to require that all TMAs follow a similar approach, while providing the guidance that they need in order to be able to follow the approach.

119. Regarding solid waste management, it appears that there is lack of comprehensive and integrated waste management policy which covers all aspects of waste management. Local Government and Community Development Department of Government of Punjab has notified Punjab Municipal Solid Waste Management Guidelines (2007) but these only cover municipal waste. All other policy documents and solid waste management guidelines and rules are in draft version and not finalised/notified.

120. There is absence of clear vision, urban transport policy and strategy at the provincial, regional and city level which is a core issue and this has impacted urban transport delivery. The institutional arrangements for urban transport are




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fragmented, agencies role overlap and lead to duplication of efforts while some important aspects are ignored like road safety.

121. In the absence of a coherent transport policy, the licensing for operation is erratic and without any regard to system efficiency, sustainability and transparency. Weak regulatory structure combined with spawning Para- transit operators leads to unhealthy practices and poor service delivery of urban transport.

2.2.6 Tariff Policies

122. In the absence of metering, water supply charges are levied on a monthly basis. WASAs charge according to the size of the plot expressed in marla (equivalent to 272 square ft). Most TMAs charge a flat tariff, typically in the range Rs30 to Rs100 per month. In some cases, for instance Sialkot, there is a higher tariff for areas receiving a better level of service.

123. The tariff structures that apply for the WASA are in theory aimed at protecting the poor against high water bills by allowing cross subsidies between various categories of customers. Since industrial and commercial customers usually rely on their own sources, cross subsidies mostly occur within the “domestic customer” category, as better off households reside on larger plots: average tariffs are typically 2 to 2.5 times higher than the lowest bands and the higher bands are typically 3 to 5 times higher than the average tariffs.

124. Connection fees are typically in the range PakRs 400 to 750 (US$6.7 to 12.5). Despite the fact that consumers are responsible for all costs incurred in laying a pipe from the connection to the house, these connection fees are low and are not perceived as being an impediment for accessing piped water, even by lower income households. A greater problem may be the fact that water mains are not laid in all streets so that some households have to lay long connections to access the piped systems.

125. The Fichtner survey carried out in five cities conclude that:

• Connected households spend an average PakRs.135/month

(US$2.25/month) on their water bill and an average PakRs. 85/month (US$1.4/month) for sewerage (in cities where a separate sewerage bill is issued)

• Connected households typically spend an additional PskRs.115/month (US$1.9/month) to complement the piped water service from another source, either booster pump and roof tank, well or borehole fitted with motorized pump, water vendors or bottled water; this means that the average household water budget is in the range of PakRs. 250/ month (US$4.20/month)

Households relying solely on wells/boreholes equipped with motorized pumps and filtrating drinking water would spend an average PakRs.350/month (US$7.75/month); if they boil their water, they would spend an additional PakRs. 520/month (US$8.7/month)

• Households buying water from vendors spend an average PakRs. 725/month (US$12.1/month) and those few buying bottled water PakRs. 1,040/month (US$17.35/month)




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126. Solid waste management is one of the costly urban services. Waste collection is an important service that benefits all residents. Currently there are no solid waste management charges in Punjab and if the collection systems of waste start and continue to operate in a cost free environment, households have no incentive to reduce the waste. It might not be feasible to finance the complete waste management system through user charges immediately, but direct household contribution for door to door collections can be started very soon.

2.2.7 Effectiveness of Procurement Procedures

127. Procurement procedures in Punjab are well defined and understood by Government officials, consultants and contractors. The normal practice is to produce cost estimates on the basis of the Standard Schedule of Rates. In recent years, this has been posted on the Finance Department section of the Government of Punjab portal. A separate schedule is given for each District and the schedules are updated at three monthly intervals. The system is well known by government engineers but has limitations. For instance, there are no schedule items for polyethylene water pipe, no schedule for Class C PVC water pipe and the size range for PVC pipes is limited.

128. Since devolution in 2001, TMAs have received a development budget, most of which is spent on small schemes, which rarely exceed PakRs5 million in value and mainly fall within the range of PakRs 0.5 million to PakRs 1.5 million. Recent investigations in connection with PMSIP suggest that most of these small schemes are completed on time but they are deficient in other respects. Documentation, particularly drawings, are at best basic and TMA engineers complain about the difficulty of adequately supervising a large number of small scheme spread over the whole TMA area.

129. The provincial line departments, particularly the PHED, implement larger schemes, some with an estimated cost of Pak. Rs. 500 million ($6 million) or more. Inspection of some of these schemes reveals that drawings and other supporting documentation are often poor. Problems also arise because the funds required to complete projects are not always made available in full, leading to delays part-way through contracts as more funds are found to cover uncompleted portions of the work. For this and other reasons, larger contracts are frequently delayed.

130. Most contracts let by TMAs and line departments are priced on the basis that the contractor submits a bid a given percentage above or below the Engineer’s Estimate. This system removes some of the responsibility for making a realistic estimate of costs from the contractor and may contribute to the poor quality of many contractors, who are often entrepreneurs with limited technical knowledge.

131. One key constraint that has emerged in the course of PMSIP is the limited planning capacity of small and medium-sized contractors. Although contract conditions require that contractors produce and update work plans, neither contractors nor consultants initially took this requirement seriously. Partly as a result of this, most of the first tranche of PMSIP projects experienced long over-runs and some had to be terminated. PMDFC has learnt from this experience and a greater emphasis on planning and eliminating possible causes of delays (for instance non-availability of land) has meant that the implementation progress of subsequent projects has been much better than that of the first tranche. Nevertheless, it is important to recognise the significant PMDFC resources that have been needed to achieve this outcome. The total infrastructure spend on PMSIP projects to date is




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less than $20 million and this suggests that there will be difficulties in spending the much greater amounts proposed under PCIIP.

132. For Government projects, eligibility to bid for a contractor is normally restricted to contractors who are on the relevant Department’s select list. A number of lists are prepared for contracts falling within different ranges of value. The disadvantage of this system is that a contractor may be on the list for some years without being required to update his information to show that he is still eligible to be on the list.

133. Internationally funded projects often rely on either prequalification or post-qualification. The disadvantage of pre-qualification is that it tends to restrict the number of contractors eligible to bid for work and may result in price fixing and hence increased prices. The World Bank-funded PMSIP has used post qualification with reasonable success. This system requires the contractor to submit two envelopes when bidding, the first with details of his bid and the second providing information in a standard format to show that he is competent to carry out the work. Some problems were experienced in the early stages as contractors were not familiar with this system and later some contractors have performed badly, despite being theoretically qualified. However, the system is now working fairly well and could usefully be adopted by other projects.

2.2.8 Private Sector Involvement in Service Provision

134. Some Punjab-based companies provide water supply and wastewater treatment services to private sector companies. There are a few treatment plants for industrial effluent in Pakistan. Most of these appear to be small, with capacities less than 100m3/day but some are rather larger. For instance, Monnowal Dyeing in Mianchanu is operating a mechanical aeration plant with a capacity of 30m3/hr. Another relatively large plant is that installed for Packages Limited for its new Bulleh Shah Paper mill in Kasur. This consists of two circular primary clarifiers and two secondary clarifiers, as well as floating surface aerators and spray coolers for the paper company's biological wastewater treatment facility6. A potentially interesting aspect of the initiative is that the contract with Siemens Pakistan includes provision for Siemens to provide ongoing service and maintenance as well as design and construction. So, it appears to be a true design build and operate contract. 135. In Punjab, service providers organization have undertaken different initiatives for SWM improvement through Private Sector Involvement. The lesson learnt shows successes and failure of private sector involvement:

Lahore Compost (Pvt.) Ltd, has set up its first composting plant at Mahmood

Booti under an agreement with the City District Government Lahore (CDGL). The project has been setup on Build‐Operate‐Transfer basis, whereby the project will be transferred to CDGL after a period of 25 years. This is the first public‐private project in Pakistan on such a large scale in the area of Municipal Solid Waste (MSW) recycling. Compost (Pvt.) Ltd handling a compost plant in Lahore since more than 6 years and no issue of water, air pollution and pest hazard had been observed. The plant has a capacity to produce 600,000 bags of 50 kg annually i.e. over 30,000 metric tons per annum. The project is successfully running.

6 The secondary clarifiers use Siemens proprietary Rim-Flo/Tow-Bro system, which is claimed to be more

efficient than conventional clarifiers but this claim needs to be checked.




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A waste management contract was signed between TMA Gujrat and Waste Management Pakistan (Pvt.) Ltd., in 2004. The Company was responsible for primary & secondary collection, transportation and final disposal of the municipal, healthcare, construction and industrial waste. Project failed due to non cooperation of stakeholders, negative role of media, political interference, and poor infrastructure, pilferage of fuel, high repair & maintenance cost and lack of capacity building by the company.

A franchise contract was signed between Lahore Cantonment Board and

Waste Busters (Pvt.) Ltd in 1996. Waste Buster is responsible for door to door collection of waste, transportation of waste and final disposal. The project is successfully running.

A waste management contract was signed between Cantonment Board

Walton and M/s. Babar & Umer (Pvt.) Ltd., GHS (Pvt.) Ltd., Waste Management Pakistan (Pvt.) Ltd., in 1999. Project is successfully running to date.

In 2007 TMA Sargodha outsourced the responsibility of cleaning and care of

Sewerage system to Waste Buster Management Pakistan (Pvt) Lahore. TMA and Waste Buster Management Pakistan (Pvt) Lahore signed the contract but after very short period the contract was terminated after payment Rs 16.396 million due to litigations between both parties

136. The above analysis indicates that SWM sector has been well studied and private sector involvement can work. 137. In the urban transport sector, private sector participation is currently limited to Public Transport services and freight that needs to be enhanced for major infrastructure and rapid transit projects to relieve the government of the investment pressure. It requires planning and regulatory arrangements for private sector participation. For achieving sustainable urban transport, capital investments need to be supported by policy, legal, regulatory, and institutional reforms; capacity building, and innovative financing that facilitate provision of sustainable, high quality transport infrastructure and services.

2.3 Urban Sector Road Map

138. The urban sector road map is to improve the integrated service delivery in Punjab and specifically to improve the quality, coverage and reliability of water supply, wastewater management, SWM and transport infrastructure through (i) an enabling policy framework for service delivery reform; (ii) the creation and building of effective institutions and provision of professional management for service delivery; (iii) investments in improving and expanding infrastructure networks; and (iv) sustainable financing of urban services.

139. The program interventions of PCIIP aim to improve these services in Sialkot and subsequently in several other Punjab cities. The proposed investments will improve the urban environment, public health, and economic opportunities for an estimated 11 million people by 2018. This will be achieved through a program of institutional reforms and investments in infrastructure rehabilitation and improvements.




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140. Based upon the basic objectives of improving urban services and achieving millennium development goals, targets are set for the short, medium and long term for service provision and are presented in Table 3.

Table 3: Service Provision Targetsa Item 2010 2018 2030

Water Supply

% population served by household water supply connections

24 60 98

Average hours supply per day 6-11 18 24 % unaccounted-for water 40 30 15 Cost recovery as % 0&M for water services 60 80 100 Wastewater Management Served by underground sewerage/covered drainage 17 45 80 Wastewater treated 3 15 80 Solid Waste Management % of households with covered bins 0 30 100 % waste generated collected 30 70 95 % waste generated disposed to landfill sites 30 70 95 Cost recovery as % 0&M for SWM services 0 50 100 Urban transport and traffic management Adequate and well maintained road network 30 50 95 Adequate traffic management and public transport

facilities 30 50 95

%=percentage, <=less than, >more than. O&M= operations and maintenance, SWM = solid waste management. a Based on existing service levels and incremental increases in service levels; subsector performance targets for Punjab intermediate cities urban population. b Charged as a percentage.

141. Based upon these targets, sector plan investment costs have been derived whereas achieving these targets will require institutional reform. The costs are based on (i) elevating service levels for those already served, to acceptable levels of service; (ii) addressing the service backlog in terms of serving those currently unserved (in both existing urban areas and peri-urban areas); and (iii) serving future additional urban populations (occurring through natural growth and in-migration). Based on these assumptions, Table 4 provides an estimate of investments required for each subsector over the short-to-medium term (2010-2018) and the long-term (2019-2030).

Table 4: Sector Investment Plan

Subsector Investment Requirements to 2018 and 2030 ($ million; constant prices)

Item 2010-2018 2019-2030 2010-2030 Water supply 240 350 590 Wastewater management 360 410 770 Solid waste management 109 31 140 Urban transport and traffic management 331 414 745 Urban planning and municipal financial management

40 60 100

Total Urban Sector Investment 1,080 1,270 2,350 a Based on population projects and incremental unit costs of service delivery.

142. The Table indicates that the largest intermediate cities in Punjab will require nearly $2.4 billion equivalent for infrastructure investment in water supply, wastewater and SWM and transport, including related 2030 reforms, through year 2030, including some $1.5 billion through year 2030 for water supply, wastewater management and SWM services. Likely sources of this funding are presented in Table 5. ADB expects to finance about 20% of these overall requirements through the PCIIP.




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Table 5: Sector Financing Plana Likely Sources of Subsector Funding to 2030

($ million; constant prices) Item GoP ADB Othersb Total

Water supply 200 190 200 590 Wastewater management 320 210 245 770 Solid waste management 30 50 60 140 Urban transport and traffic management 500 25 220 745 Urban planning and municipal financial management

50 25 25 100

Total Urban Sector Investment 1,100 500 750 2,350 ADB=Asian Development Bank, GoP = Government of Pakistan. a For 11 intermediate cities under PCIIP, adjusted for wastewater treatment needs in Rawalpindi. b Indicative amount representing potential private sector investment and other development partner

financing.

143. In the light of the above estimates, PCIIP provides funding for the priority elements of this Investment Plan, targeting clusters of secondary cities (Table 6).

144. PCIIP proposes a major sector reform which is establishment of public Water Supply and Sanitation Companies (WSCs) that will provide water supply, wastewater, and solid waste services on behalf of individual TMAs or their successor municipal organizations, which will continue to own assets and be responsible for delivery of the services. This will be done through signing agreements between participating municipal administrations and WSCs covering the terms under which service provision is assigned to the WSC, and including statements on the actions to be taken to improve service quality, reduce costs, increase revenue and reduce subsidies. WSCs will hire a management contractor in the first instance to (i) take responsibility for WSC operations and delivering service improvements and (ii) designing and supporting implementation of infrastructure improvements and equipment procurement.

Table 6: Sector Financing Plan 2010-2018

ADB Investment Program Indicative Allocation 2010-2018 ($ million; constant prices)

Item Investment

Plan 2010-2018

MFF 2010-2018

MFF Share (%)

Water supply 240 190 18 Wastewater management 360 210 19 Solid waste management 109 50 5 Urban transport and traffic management 331 25 2 Urban planning and municipal financial management 40 25 2

Total Investment Program 1,080 500 46 Financial Sources Asian Development Bank 500 85 Government 90 15

MFF = Multitranche Financing Facility

145. Regional transport authorities or similar organizations will also be established to plan, build and maintain urban transport infrastructure, including bus stops, shelters, bus lanes and markings, signage, bus terminals and interchanges and transfer terminals. These agencies are seen as transitional arrangements before the second stage reforms that seek to introduce more comprehensive public private partnerships. Here these agencies will seek private sector involvement through a variety of performance-based contract arrangements.




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146. The investment program has following five parts: Part A: Urban Planning and Municipal Financial Management

147. In the first tranche, support will be provided to Punjab for urban planning and municipal financial management, including preparation of municipal plans in Sialkot and 2 other cities, enhancement of the financial management system in Sialkot, and capacity building in urban planning and municipal management.

148. In the future tranches, urban planning and municipal financial management reforms will be undertaken in 11 cities (cities will be the combination of clusters). Capacity building services will be provided in 11 cities.

Part B: Water Supply, Wastewater Management and SWM

149. In the first tranche, extension, rehabilitation, and improvement of urban water supply, wastewater management, and solid waste management infrastructure and services will be undertaken in Sialkot, including support to the Sialkot Water and Sanitation Company under a management contract for operations, include capital works design and implementation.

150. In the future tranches, these services will be improved in six cities that may be in clusters (e.g. Sargodha division).

Part C: Urban Transport and Traffic Management

151. In the first tranche, extension, rehabilitation and replacement of urban transport and traffic management infrastructure and services will be undertaken, including traffic signalling and signage, roadside works and road junction improvements, parking facilities, and pedestrian ways for Sialkot city.

152. In the future tranches, urban transport and traffic management improvements will be undertaken in six cities.

Part D: Operations and Transition Support Funding

153. This component will provide operational support funding to bridge the short-to-medium term operational cash shortfalls of SWSC in the first tranche and for other regional utilities in the other tranches.

Part E: Program Management Support

154. Establishment of Program Management team with capability and funds to handle surveys and consulting services for subprojects preparation, including technical design, contract bidding, evaluation and award; construction supervision, audit, social and environmental assessments; monitoring and reporting; and third party monitoring/independent verifications. Program management support will continue for future tranches. 155. Indicative investment of PCIIP by the ADB by tranche and sequencing is shown in Table 7:




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Table 7: Subsector Investments by Tranche – Indicative Schedule Item No. Subsector Base Cost

($ million)

FIRST TRANCHE (2010 to 2016)

Part/Subpart No. A Urban Planning and Municipal Financial Management A-1 Preparation of urban structure plans, local area plans, re-classification

and re-development plans for Sialkot and two other cities. 1.53

A-2 Capacity building for urban planning – training and foreign study support 0.75 A-3 Municipal financial management improvements and institutional design,

including enhancements to FMIS 0.43

A-4 Computers, office equipment, GIS software, furniture and fixtures for Urban Planning

0.11

A-5 Computers, office equipment, GIS software, furniture and fixtures for improved property tax

0.03

Total for Urban Planning and Municipal Financial Management 2.84 B Water Supply, Wastewater and Solid Waste Management Water Supply B-1.1 Rehabilitation of existing tube wells (including flow metering, renovated

control panels and chlorination) 0.65

B-1.2 Replacement of existing shallow and low performing tube wells 0.75 B-1.3 Subdivision of existing central water supply zone for operational efficiency 0.06 B-1.4 Water supply improvements in 3 water DNI zones to provide 27,000

households with 24/7 supply 6.31

B-1.5 Operationalization of Gohadpur water supply scheme to provide 24/7 supply

1.15

B-1.6 Additional elevated reservoir capacity - existing supply area 1.80 B-1.7 24/7 New water Supply Services for 25,000 households in three zones,

areas along Roras Road, Wazirabad Road and Aimanabad Road. 6.60

B-1.8 Water and wastewater equipment for SWSC, including safety and testing equipment

0.20

B-1.9 Small scale emergency repair works of water supply system 0.50 Total for Water Supply 18.01 B-2 Wastewater management B-2.1 Provision of sewer cleaning machines (with jetting and suction functions) 0.35 B-2.2 Rehabilitation of model town wastewater pumping station 0.18 B-2.3 New collector sewer along Khawaja Safdar Road 0.72 B-2.4 Rehabilitation of main pumping station at Mianpura. 0.29 B-2.5 New branch sewers in Fatehgarh,Paris road and Pasroor Road areas 11.00 B-2.6 Small scale emergency repair works of WWM system 0.50 Total for waste water management 13.04 B-3 Solid Waste Management B-3.1 SWM collection and transportation system 3.71 Total for Solid Waste Management 3.71 B-4 Management Operator contract for SWSC 7.63

B-5 Computers, office equipment, vehicles for SWSC and its customer care centers

1.53

B-6 Surveys and Studies - SWSC B-6.1 Energy Audits 0.13 B-6.2 Surveys including geo-technical investigations, hydro-geological

investigations, topographical surveys, etc. 0.10

B-6.3 Ground water quality testing and studies 0.10 B-6.4 Environmental monitoring and mitigation 0.20 Total for surveys and studies – SWSC 0.53

Total for Water Supply, Wastewater Management, SWM and Management Contract 44.45

C Urban Transport and Traffic Management




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Item No. Subsector Base Cost

($ million)

C-1 Traffic management improvements – 6 signalized and non-signalized junction improvements; road signage and markings; road side works

3.00

Total for Urban Transport and Traffic Management Component 3.00 D Operations and Transition Support 12.00 E Program Management Support. E-1 Program management support facility 3.61 E-2 Capacity development for UU (individual/ICS) 1.82 E-3 Capacity development for TMA (individual/ICS) 0.40 E-4 Studies and surveys (including WTP, traffic surveys, hydro-geological

investigations, topographic surveys, energy audit, etc) 0.51

E-5 Independent verifier/third party quality assurance (technical & financial) 0.50 E-6 Computers, office equipment, furniture, fixtures, and vehicles for UU 0.34 E-7 Incremental administration staff and operating costs for TMA/ UU 0.93

Total Base Costs for Component E - Program Management Support 8.10 Total Base cost for Tranche-1 70.39 Taxes and Duties 10.67 Contingencies 16.65 Financing during Implementation 2.29 Total First Tranche Project Cost 100.00 First Tranche ADB Share 89.3% SECOND TRANCHE – FY 2012 to 2018 (Sialkot and Cities -2) A Construction of municipal offices 4 B DNI zones for 24/7 service including source development, storage,

distribution, bulk and domestic metering, house connections in Sialkot 8

B DNI zones for 24/7 water supply including source development, storage, distribution, bulk and domestic metering, house connections in Sialkot

8

DNI zones for 24/7 water supply including pipeline rehabilitation, bulk, commercial and domestic metering, house connections, other water supply improvements, source augmentation, storage, design and construction supervision

12

B Provision of trunk, main and branch sewers, and pumping station in Sialkot

7

B Construction of wastewater treatment plant in Sialkot 4 Wastewater improvements including trunk sewers, main sewers, branch

sewers, lateral sewers, pumping stations, wastewater treatment plants, engineering design and supervision

8

B Construction of sanitary land fill and recycling facilities in Sialkot 7 B Solid waste collection and transportation and related infrastructure,

sanitary landfill construction, engineering design and supervision 8

B Management Operator contracts for WSCs 6 C Extension, rehabilitation and replacement of urban transport and traffic

management infrastructure and services, including bus terminals, traffic signaling, roadside works, road junction improvements, parking facilities and pedestrian ways

7

D Operations and Transition Support 6 Taxes and duties a, contingencies and finance during construction 15 Second Tranche Total cost 100 Second Tranche ADB Share 85 THIRD TRANCHE (2012 to 2016) Rawalpindi Outfall Sewer and Sewage Treatment Plant 100 Third Tranche Total Cost 100 Third Tranche ADB Share 5 FOURTH TRANCHE (2013 to 2018) (All Six Cities) A Preparation of urban structure plans, municipal financial management

improvements, including enhancements to FMIS; capacity development 7

B DNI zones for 24/7 water supply including pipeline rehabilitation, bulk, commercial and domestic metering, house connections, other water supply improvements, source augmentation, storage, design and

38




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Item No. Subsector Base Cost

($ million)

construction supervision B Wastewater improvements including trunk sewers, main sewers, branch

sewers, lateral sewers, pumping stations, wastewater treatment plants, engineering design and supervision

30

B Solid waste collection and transportation and related infrastructure, sanitary landfill construction, engineering design and supervision

12



7

D Operations and Transition Support 15 E Program Management Support/Independent Verifier 1 Taxes, duties contingencies and IDC 20 Fourth Tranche Total Costs 140 Fourth Tranche ADB Share 120

FIFTH TRANCHE – 2014 to 2018 (All Six Cities) B DNI zones for 24/7 water supply including pipeline rehabilitation, bulk,

commercial and domestic metering, house connections, other water supply improvements, source augmentation, storage, design and construction supervision

50

B Wastewater improvements including trunk sewers, main sewers, branch sewers, lateral sewers, pumping stations, wastewater treatment plants, engineering design and supervision

38

B Solid waste collection and transportation and related infrastructure, sanitary landfill construction, engineering design and supervision

9



7

D Operations and Transition Support 10 E Program Management Support/Independent Verifier 1 Taxes, duties contingencies and IDC 25 Fifth Tranche Total Costs 150 Fifth Tranche ADB Share 125 Total cost for All tranches 590 Total ADB contribution for all tranches 500

ADB = Asian Development Bank, DNI = Distribution Network Improvement, FMIS = Financial Management Information System, GIS = Geographic Information System, ICS = individual consultant selection, SWM = solid waste management, SWSC = Sialkot Water and Sanitation Company, TMA = Tehsil Municipal Administration, UU = Urban Unit. a exclude taxes and duties under Part D.

156. Please see the Sector Road Map for further details

2.4 Policy Framework: Reform Action Plan

157. The reform action plan of PCIIP is fully aligned with the Government of Pakistan policy framework and national objectives that include Pakistan's Poverty Reduction Strategy Paper, the 2005 Medium-Term Development Framework (2005–2010), and Vision 2030 which all identify (i) economic growth, (ii) improved governance, (iii) devolution of governance, and (iv) human development, as essential to reducing poverty.

158. The program focuses on (i) the provision of priority infrastructure; (ii) leveraging private sector partnerships for better performance; (iii) interventions to




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assist in achieving the MDGs; (iv) governance reforms, (v) improved physical infrastructure, and (vi) private sector development.

159. The sector policy framework responds to these strategic objectives, and addresses the main challenges and operating conditions which constrain the efficiency, cost recovery, sustainability, and competition in the sector. The reform agenda addresses the key issues of (i) institutional alignment; (ii) accountability mechanisms, and (iii) capacity development. This leads to reforms over the short, medium, and long-term that will help create the right environment and incentive framework for public and private investment. The reform agenda addresses financial, economic, commercial, legal, regulatory, and institutional matters.

160. The reform action plan underpins the interventions of the road map. The milestones set for water supply, wastewater, solid waste management and urban transport and traffic management in the reform action plan will trigger the release of second and subsequent tranches of the investment loan. Achievement of these milestones and institutional reform process will transform the urban service delivery in Punjab.

161. Table 8 presents the reform action plan.

2.5 Institutional Effectiveness Plan 162. A complete design of the institutional set up for the program execution has been designed. The executing agency for the PCIIP will be the Planning and Development Department (P&DD) working through the Urban Unit, Government of Punjab. The Program Steering Committee, chaired by the P&D Board Chairperson, will provide policy guidance, monitor overall progress and facilitate coordination. The committee members will include Chairman, P&D Board, Secretary, P&D Department, Secretary, LG&CD Department, Secretary, HUD & PHE Department, Secretary, Finance Department, Project Director, the Urban Unit (Secretary), and other relevant agencies as specially invited. It will meet quarterly to provide overall guidance and review Investment Program performance. A local level Program Steering Committee will monitor the Investment Program at tranche level, providing feedback on annual investment plans and facilitating compliance with safeguard requirements.

163. The Urban Unit will oversee the overall Investment Program implementation and will also act as the secretariat of the Program Steering Committee (PSC). The Project Director, Urban Unit will be Program Director for PCIIP, and will be supported by a PCIIP Program Manager.

164. Local government-owned water and sanitation companies (WSCs), with regional or divisional coverage, will be established in phases under the 8-year program, beginning with Sialkot Water and Sanitation Company Limited (SWSC).




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Table 8: Punjab Cities Improvement Investment Program Action Plan for Reform and Investment

Component A & C: Urban Planning and Municipal Financial Management

Agency Actions Prior to

Approval Actions Required during Tranche 1a Timingb Actions Required in Tranches 2 - 5 Timing

Strategy 1: Sustain Urban Unit Provincial Level Focal Point P&D Budget for

Urban Unit allocated over Tranche period

Enhance the human resource capacity of the Urban Unit, by hiring the professionals as described and budgeted under PCIIP (FAM).

Q2 2012

Budget for Urban Unit allocated over tranche period Recruit additional urban unit staff as described and

budgeted under PCIIP (FAM).

Thru Q2 2019

P&D LG&CD

Fill in the key vacant posts in LGs; Urban Unit organizing Master degree and short training

courses for newly recruited staff in Sialkot

Q4 2012

Fill in the key vacant posts in LGs Urban Unit organizing Master degree and training courses

for newly recruited staff in cities.

ThruQ2 2019

Strategy 2: Strengthen Capacity for Urban Policy Making, Strategic Planning and Financial Management P&D

P&D, LG&CD

Sialkot LG in collaboration with Urban Unit : Approve and notify city boundary & structure plan as

prepared by PPTA consultants (including base map, land use map & peri urban area in phases); and

Develop GIS based Information Management System for the City of Sialkot.

Q1 2012 Q3 2012

Remaining Cities LGs in collaboration with Urban Unit: Approve and notify city boundary & structure plan as

prepared by PPTA consultants (including base map, land use map & peri urban area in phases); and

Develop GIS based Information Management System for city.

Q3 2018

LG&CD EXnT

Strategy 3: Realignment of Urban Transport Institutions P&D LG&CD Transport Dept.

P&D, Transport Dept

GOPb = Government of Punjab, FAM = Facility Administration Manual, GIS = Geographic Information System, LGD = local government department, P&D = Planning and Development Department, PCIIP = Punjab Cities Improvement Investment Program, PPP = public-private partnership, Q = quarter, TMA = tehsil municipal administration, UIPT = Urban Improvable Property Tax.

a Action plan will be updated and expanded as appropriate with rollout of reforms throughout Punjab Province and as further reform needs emerge. b Time frame expressed on calendar-year basis. c Exact details to be covered by consultants in tranche 1 Source: Asian Development Bank and GoPb.




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Part B: Water Supply, Wastewater and Solid Waste Management Agency Actions Prior to

Approval Actions Required during Tranche 1a Timingb Actions Required in Tranches 2 - 5 Timing

Strategy 1: Establish Corporate Structures, Professional Management Systems and Sound Corporate Governance TMA/ P&DD/ FD/ LGD

SWSC incorporated as public limited company under Companies Ordinance, 1984

Institutionalize transparent and predictable annual allocation of TMA funds for WSCs deputed TMA staff salaries and other costs, based on WSC plan and budget

Q4 2012

TMA/ P&DD/ SWSC

Qualified independent directors appointed to SWSC Board, including one woman

Management Contract/PSP arrangement introduced and signed between SWSC Board and private sector operator

Q2 2012

P&DD Notification regarding SWSC’s exclusive role capital works development and operation in SWSC coverage areas

Service and Asset Management Agreements signed between SWSC and Sialkot TMA

Q2 2012 Notification regarding WSC’s exclusive role capital works development and operation in WSC’s coverage areas

Prior to loan negotiations

SWSC SWSC Board approves business plan and annual budget Q4 2013 SWSC Other regional WSCs

established Q4 2012

Strategy 2: Establish Foundation for Improved Financial Performance and Sustainability P&DD/ TMA/ SWSC/ WSC

Financing agreement signed between SWSC, GoPb, and TMA amended to specify the performance to be achieved through efficiencies and/or tariff adjustments, so that as a minimum the WSCs are able to effect full recovery of their operating costs given reasonable assumption as to collection rates

Q4 2012 Financing agreements signed between TMAs, regional WSCs and GoPb, specifying target performance and/or tariffs adjustments

Q4 2012-Q2 2016

P&DD Provide enforcement powers to independent WSCs to collect payments and disconnect non-paying customers, under a transparent, step-wise process

Q4 2012

P&DD/ WSCs/ TMA

Establish feed-back processes involving citizen report cards, periodic willingness-to-pay studies, and other mechanisms to link service targets, investment plans and tariff levels

Q4 2012 Develop and institutionalize output-based financing approaches to linking provincial subsidy actual service delivery and bills collections

Q2 2013

Strategy 3: Reform Legal and Regulatory Environment and Enhance Accountability Mechanisms P&DD Review regulatory framework needs and options together with public

and private sector stakeholders, identifying necessary conditions for economic regulation

Q3 2012 – Q4 2012




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Agency Actions Prior to Approval Actions Required during Tranche 1a Timingb Actions Required in Tranches 2

- 5 Timing

Strategy 1: Establish Corporate Structures, Professional Management Systems and Sound Corporate Governance P&DD

P&DD Prepare and implement a comprehensive program, based on the upcoming legislation, to achieve workable, independent WSS economic regulation

Q4 2012

P&DD GoPb = Government of Punjab, SWSC = Sialkot Water and Sanitation Company, P&D = Planning and Development Department, Q = quarter, SAMA = service and management agreement, PCIIP = Punjab Cities Improvement Investment Program, SWM = solid waste management, LG = Local Government, WSC = Water and Sanitation Company, WSS = water supply and wastewater sanitation. a Action plan will be updated and expanded as appropriate with rollout of reforms throughout Punjab Province and as further reform needs emerge. b Time frame expressed on calendar-year basis. Action plan initiatives to be replicated for each WSC in subsequent tranches. Sources: Asian Development Bank; GoPB.




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165. SWSC’s legal structure has been designed to accommodate new additional municipalities; subsequent tranche financing requires the WSCs to have organized, as in the case of SWSC, evolve into utilities with broader geographic coverage. The WSCs will implement Parts B and D of the Investment Program. These WSCs will be responsible for the day-to-day management of water supply, wastewater management and SWM services and will implement all water supply, wastewater and solid waste management capital works in their service coverage areas, including subprojects under the Investment Program. The WSCs will have professional management, skilled staff and sound board governance.

166. The WSC will be operated through a Management Contract financed under Part B of the Investment Program. The managing director and key senior management of WSCs will be recruited through this Management Contract, in accordance with ADB consultant recruitment guidelines. The Management Contractor will assemble technical, financial, legal and management resources, to manage operating systems and capital investment programs.

167. The WSC boards of directors will comprise 6 members: representative a share-holding tehsil municipal administration, a provincial representative, the managing director of the WSC, and at least 3 independent directors, of which at least one-third are women. The independent directors should be drawn from the private sector and should all have sound reputations and experience in board governance. They should have at least 10 years professional experience in management, and should bring financial/accounting, legal, and/or engineering skills. Structure of the Water and Sanitation Company is presented in Figure 3:

2.5.1 Strategy for Management Contract

168. The overriding strategy for the management contract is that a competent international utility operator should take over the leadership and key specialist functions of the SWSC so as to provide the necessary strength in depth for the SWSC to be able to fulfil its mandate. This reflects the lack of such skills in the Pakistan market and the need to inject the key operational skills into the SWSC. The Management Contractor (MC) should provide in addition access to its standard operating procedures (SOP’s) which can then be tailored for application in the SWSC. There needs to be a sufficiently long duration for the MC to have the necessary impact in bringing top standard utility operating skills to bear including the management of the capital programme. Normally these contracts last more than 5 years and it is proposed here to allow for a 7 year duration.

169. It is to be expected that the MC will start out with primarily expatriate staff but that this will over time transition to a preponderance of national staff who can be recruited locally. Core MC team of 3 expat senior managers and 3 national senior managers will be recruited. 170. It is envisaged that the performance obligations of the MC will be phased with potentially a transition phase of 6 months followed by a baseline setting period of a further 18 months at the end of which Key Performance Indicators (KPIs) would be set. For the initial period of 24 months, the achievables would be set out as Milestones rather than KPI’s. It is probable that an element of the payment to the MC will be based on achievement of milestones and KPI’s although the quantum will have to reflect the baseline information available and the risk associated with the contract.




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Figure 3: Organization Chart for the Water and Sanitation Company Limited

Implementation Agency for Part B: Water Supply, Waste Water and Solid Waste Management and Part D: Operations and Transition Support

Board of Directors

Managing Director

Director Finance Director Operations & Services

Assistant Manager Budget

& Financial Reporting

Assistant Manager,

Management & Information

Systems

Manager Administration, Inventory & Human

Resource

Manager, Customer

Care & Quality

Technical Manager Water &

Wastewater

Technical Manager Solid

Waste

Manager Capital Works

Low-income community

customer care centers

Assistant Manager, Billing & Collection

Safeguards Unit

Deputed Tehsil Water and Sanitation Staff

Management Contractor

Hired from Market

Deputed by TMA

Legend

Management Contractor (Part B)

Expertise: WSS & SWM operations, engineering design, construction supervision & subproject preparation

Intl pm = 218Natl pm = 748

Int’l = international, Nat’l = National, WSS= water supply and sanitation, SWM = solid waste management TMA = Tehsil Municipal Administration




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171. It is essential that the recruitment process to kick off as soon as possible once loan negotiations start. Detailed terms of reference, EOI documents and request for Proposal (RFP) documents are being finalised now and it is expected that the EOI for the MC would be published on 1st September 2011. 172. The strategy to be followed for the MC for the start up, initial operating period and second operating period is as follows: Start up Period will entail the following: Mobilisation of MC Recruitment of SWSC core staff Implement Financial controls, payroll Logistics – premises, vehicles, IT equipment Appoint and mobilise Board of SWSC if not already done Delegation instrument (authorities for directors, managers etc) At the end of the Start up Period, transfer TMA staff and take over billing and

collection Capital programme implementation starts in earnest Initial Operating Period will include the following: Intensive period of work SWSC in full operating mode while also putting in place many of the essential

plans, policies and strategies Focus is on milestones Baseline and agree KPI’s Major review at end of period Considerable progress on Tranche 1 sub projects, identification of Tranche 2

subprojects Second Operating Period will include the following: Switch focus from Milestones to KPI’s Gradual switch from expat MC leadership to national MC leadership of SWSC Extension to Service Area? Continual improvement in KPI’s Tranche 1 subprojects completed Tranche 2 subproject commenced 173. Total cost for the management contract is US$ 11,418.2 million. Details of the breakdown of consultants in the management contract and their costs are shown in Table 9.

174. Costs of the projects to be done by SWSC are included in the sector strategies in the next section.




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Table 9: Details and Costing of Management Contract Cost for SWSC Management Contract Unit Phasing Total Unit Cost

(US$) Total Base

Cost ('000 $) 2011 2012 2013 2014 2015 2016 1. Management Contract Part a - Routine Contract for SWSC Directors (Int'l) Managing Director/ Utility Expert person months 4 10 8 6 4 - 32 25,000 800.0 Director (Admin & Finance) person months 4 10 8 6 4 - 32 20,000 640.0 Director (Operations and Services) / WSS specialist person months 4 10 8 6 4 - 32 20,000 640.0 Managing Director/ Utility Expert (for Yr 2016,17 and18) person months - - - - 9 - 9 25,000 225.0 Director (Admin & Finance) (for Yr 2016,17 and18) person months - - - - 9 - 9 20,000 180.0 Director (Operations and Services) / WSS specialist (for Yr 2016,17 and18)

person months - - - - 9 - 9 20,000 180.0

Int'l Key Persons SWM Expert person months 2 6 - - - - 8 18,000 144.0 MIS/ Customer Relations Expert person months 2 3 3 - - - 8 18,000 144.0 Procurement Expert person months 1 1 1 1 - - 4 18,000 72.0 Low Income Unit Advisor person months 1 1 1 1 2 - 6 18,000 108.0 Environment Safeguards Expert person months - - - - - - - 18,000 - Resettlement/ Social Safeguards Expert person months - - - - - - - 18,000 - Unallocated Specialized Staff Months person months - 15 10 4 3 - 32 18,000 576.0 Nat'l Utility Management, Customer Service, Billing Expert person months 4 10 10 10 10 - 44 6,000 264.0 Admin, Finance, HR, IT Expert person months 4 10 10 10 10 - 44 6,000 264.0 Engineering/ Assets Management Expert person months 4 10 10 10 10 - 44 6,000 264.0 Utility Support/ Young Professionals person months 16 44 44 44 33 - 181 2,000 362.0 Utility Management, Customer Service, Billing Expert (for Yr 2016,17 and18)

person months - - - - 30 - 30 6,000 180.0

Admin, Finance, HR, IT Expert (for Yr 2016,17 and18) person months - - - - 30 - 30 6,000 180.0 Engineering/ Assets Management Expert (for Yr 2016,17 and18) person months - - - - 30 - 30 6,000 180.0 Utility Support/ Young Professionals (for Yr 2016,17 and18) person months - - - - 22 - 22 2,000 44.0 5,447.0 Consultants' overheads (for firms) 30% overhead

for Int'l and 10% for Nat'l Consultants

1,286.50

Total Management Contract Part a - Contract for SWSC 6,733.5 Management Contract Part b - Design and Construction Supervision etc Int'l WS/ WWM Experts person months 4 8 8 6 - - 26 18,000 468.0 SWM Expert person months 2 2 - - - - 4 18,000 72.0




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Management Contract Unit Phasing Total Unit Cost (US$)

Total Base Cost ('000 $) 2011 2012 2013 2014 2015 2016

Procurement Expert person months - 1 1 1 - - 3 18,000 54.0 Environment Safeguards Expert person months - 2 1 1 - - 4 18,000 72.0 Resettlement/ Social Safeguards Expert person months - 2 1 1 - - 4 18,000 72.0 SWM Recycling system design, monitoring, specialist person months - - - - - - - 18,000 - TBD person months - 3 3 - - - 6 18,000 108.0 Nat'l Design Engineer (Water/ Waste Water Specialist/ Hydraulic Modeller)

person months 4 4 4 4 4 - 20 5,000 100.0

Storm/ Waste Water Specialist person months 4 4 4 4 4 - 20 4,000 80.0 Junior Design Engineers (WSS) person months 4 8 8 8 6 - 34 1,500 51.0 Structural Engineer person months 4 4 4 4 - - 16 4,000 64.0 Planning Engineer person months 2 2 2 2 - - 8 4,000 32.0 Electrical and Mechanical Engineer person months 2 3 3 3 1 - 12 4,000 48.0 Solid Waste Specialist person months - - - - - - - - - Solid Waste Engineer person months - 6 6 2 2 - 16 4,000 64.0 Environment Specialist person months 2 4 4 1 1 - 12 4,000 48.0 Resettlement/ Social Safeguards Specialist person months 2 4 4 1 1 - 12 4,000 48.0 Project Economist person months - 1 1 - - - 2 4,000 8.0 Sociologist/ Community Outreach person months - 2 2 2 - - 6 3,000 18.0 Hydro-Geologist person months 2 3 2 2 2 - 11 4,000 44.0 Geo-Technical Engineer person months 2 3 2 2 2 - 11 4,000 44.0 Survey Engineer/ Quantity Surveyor person months 6 3 3 3 3 - 18 3,000 54.0 Procurement and Contracts Expert person months 2 4 4 4 2 - 16 4,000 64.0 Surveyors person months 8 8 6 6 6 - 34 1,000 34.0 CAD Operators person months 12 12 12 12 12 - 60 1,000 60.0 Construction and Supervision Staff Construction Manager (WSS) person months 2 12 12 12 12 - 50 5,000 250.0 Resident Engineers person months - 6 12 6 - - 24 4,000 96.0 Assistant Resident Engineers (WSS) person months 2 12 12 12 12 - 50 1,500 75.0 Civil works Inspectors person months 6 20 20 20 20 - 86 1,000 86.0 Electro mechanical Inspectors person months 2 6 6 6 3 - 23 1,000 23.0 2,237.0 Consultants' overheads (for firms) 30% overhead

for Int'l and 10% for Nat'l Consultants

392.90

Total Management Contract Part b - Design and Construction Supervision etc 2,629.9 Management Contract for SWSC




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Management Contract Unit Phasing Total Unit Cost (US$)

Total Base Cost ('000 $) 2011 2012 2013 2014 2015 2016

Main Management Contract - Part a (i.e. typical contract for operations related activities) and Part b (Design and Construction Supervision)

9,363.4

Equipment for SWSC Computers & Office Equipment - SWSC (+10 consumer care centres)

000 $ 807.0 32.0 32.0 32.0 32.0 935.0

935.0

Office furniture and fixtures - SWSC 000 $ 245.8 - - - - 245.8

245.8

Vehicles/office transport for SWSC 000 $ 349.0 - - - - 349.0

349.0

1,529.8 WS - Civil Works - Engineering Design and supervision 000 $ - - - - - - - - WS - Equipment Procurement and Specifications Oversight 000 $ - - - - - - - - Surveys and Studies - SWSC Energy Audits and WTP Surveys Lumpsum 0.6 0.4 - - - 1.0 125,000 125.0 Surveys including Geo-technical investigations, Hydro-geological Investigations, Topographical Surveys, maps, etc.

Lumpsum 0.3 0.4 0.3 - - 1.0 100,000 100.0

Ground Water Quality Testing and Studies Lumpsum 0.3 0.4 0.2 0.1 - 1.0 100,000 100.0 Environmental Monitoring and Mitigation - WWM Lumpsum 0.2 0.2 0.2 0.2 0.2 1.0 100,000 100.0 Environmental Monitoring and Mitigation - SWM Lumpsum 0.2 0.2 0.2 0.2 0.2 1.0 100,000 100.0 525.0

Total Cost of Management Contract 11,418.2




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2.5.2 Service and Asset Management Agreement

175. Each participating TMA and WSC will enter into the Service and Asset Management Agreement and other relevant agreement(s) that will set out the terms and conditions for each participating TMA to delegate the provision of water supply, sanitation, wastewater, sewerage, drainage, and solid waste management services to the WSCs. Government of Punjab, each participating TMA, and the WSC(s) will also enter into an agreement which will document the financing to be provided by GoP to WSCs under Parts B and D of the Investment Program. The complete facility implementation chart is shown in Figure 4.

2.5.3 Independent Verifier

176. The Urban Unit will engage an international consulting firm as the Independent Verifier. The Independent Verifier will report to the UU and will be engaged on an intermittent basis for a five year period. The Independent Auditor/ Verifier in all contact with the WSCs, will carry out the following functions:

(i) Monitor the Operations and Transition Support Funding, implemented by the

newly established WSCs, and covering their initial cash shortfalls, to create transparency and accountability in Operations and Transition Support Funding disbursement; and

(ii) Monitor compliance with the Management Contract between SWSC and the MC and the Service and Asset Management Agreement between the SWSC and the Sialkot TMA/other participating TMAs.

177. The primary objective of the independent verifier’s assignment is to facilitate and strengthen the operations of the WSCs by creating and promoting transparency and accountability in the way Operations and Transition Support Funding are disbursed. The cost for independent verifier is presented in Table 10.

Table 10: Cost of Independent Verifier

Description Total Base Cost ('000 $)

Independent Verifier/3rd Party Quality Assurance 500

2.5.4 Capacity Development Program through Part A and Part E

178. Part A and Part E of the investment program aim to provide comprehensive capacity building services for the participating TMAs and the Urban Unit. Through these parts, consultants will be hired, both international and national to develop and implement training programs. Part A consultants will provide capacity building services in municipal financial management and urban planning. The Urban Unit will also hire independent consultants for providing capacity building in urban planning and municipal planning for the TMAs and the Urban Unit. Consultants recruited through Part E will support Part A consultants in capacity building services and will also undertake design of sub projects for future tranches of the program. 179. How these parts will work with the independent verifier and linkage of the Part A and Part E consultants is shown in Figure 5.




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Figure 4: Facility Implementation Organization Chart

Government of Punjab

Provincial Steering Committee

Tehsil Municipal Administration

Implementing Agency – Part C

Executing Agency

The urban Unit Planning and Development Department

Implementing Agency – parts A & E

Tripartite Financing

Agreement GoPb/

WSC/TMA

Company Board

Water and Sanitation Company

Implementing Agency – Part B & D

Local Steering

Committee

Consulting Services Contract

Independent Verifier Consultant under part E

Tehsil Municipal Administration Shareholders

Service and Asset

Management Agreements (WSC and

TMAs)Consumers

Part A: Urban planning and municipal financial management Part B: Water supply, wastewater and solid waste management Part C: Urban transport and traffic management Part D: Operations and transition supportPart E: Program management support

Monitors OperationsSupport, WSC management contracts, and SAMAs

Ser

vice

Use

r Fee

s

GoPb = Government of Punjab, WSC = Water and Sanitation Company, TMA = Tehsil Municipal Administration




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Figure 5: Organization Chart for the Urban Unit Executing Agency and Implements Part A: Urban Planning and Municipal Financial Management and

Part E: Program Management Support

Program Manager (ICS)

Program Director

Program Management Consultant (Part E)

Intl pm = 80Natl pm = 469

Expertise: detail design engineering, supervision, procurement, legal, transport planning/design, WSS, SWM, safeguards, CAD operators, surveyors, structural engineer, hydrologist, PSP, public awareness

Independent Verifier(Part E)

Intl pm = 10 Natl pm = 34

Urban Planning/Municipal Financial Management Consultant (Part A)

Intl pm = 30 Natl pm = 210

Safeguards Technical & Procurement

Finance & Administration

Reform Implementation

Communication & Regional Liaison

Monitoring Evaluation

Resettlement Specialist (ICS)

Environment Specialist (ICS)

Social Development (ICS

Municipal Services Engineer (ICS)

Procurement Specialist (ICS)

Procurement Officers (2) (ICS)

Inventory Officer (ICS)

Program Officer (Admin.)

Accounts Specialist (ICS)

Urban development Specialist (ICS)

Public Finance Specialist (ICS)

TMA Liaisons Program Officer

Program Assistant

M&E Specialist (ICS)

Expertise: Utility operations, finance, auditing and legal; monitors and audits WSCs.

Expertise: city/regional planning, economics, statistics, transport, housing, GIS, environment

ICS = individual consultant selection, Intl = international, M&E = monitoring and evaluation, Natl = national, PSP = private sector participation, SWM = solid waste management, WSC = Water and Sanitation Company, WSS = water and sanitation.




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a. Part A - Urban Planning and Municipal Financial Management

180. The Urban Unit of the P&DD will engage an international consulting firm as the Urban Planning and Municipal Finance Management Consultant to conduct activities under Part A of the Program which include urban planning and municipal financial management. 181. The Consultant hired will:

(i) Provide all required support to the Urban Unit in carrying out activities under

Part A of the Investment Program (ii) Prepare strategic development plans for greater Sialkot and 2 other cities;

and (iii) Support the UU and TMAs in implementing and enhancing financial

management system in Sialkot and additional two cities, and capacity building in urban planning and municipal management of the participating TMAs.

182. The consultants will provide capacity building services for the Urban Unit staff and for the TMAs. Detailed breakdown of the costs required for the capacity building program and the consultants is in Table 11. b. Part E - Program Management Support

183. The Urban Unit will engage an international consulting firm as the Program Management Consultant. The urban unit will also national consultants who will be part of the program management support. They will undertake the following:

(i) oversee and monitor the overall PCIIP, including identification and roll-out of

program to new cities and new regional utility companies; (ii) design and implement all activities7 under Part A: Urban Planning and

Municipal Finance; (iii) design and oversee implementation of Part C: Urban Transport and Traffic

Management; (iv) design infrastructure subprojects under Part B in subsequent tranches where

a Water and Sanitation Company does not yet exist; (v) support the UU to establish new WSCs, including preparing and engaging

management contractors as required;8 (vi) Prepare strategic development plans9 for greater Sialkot and 2 other cities;

and (vii) Support the UU and TMAs in implementing and enhancing financial

management system in Sialkot and additional two cities, and capacity building in urban planning and municipal management of the participating TMAs.

7 Refers to construction and/or renovation of office facilities for the Tehsil Municipal Administrations (TMAs). 8 The newly formed Water and Sanitation Companies (with support from their respective management contractors) will be responsible for implementing this infrastructure that the Consultant has designed. 9 The current planning system in Pakistan does not assure effective and efficient land use outcomes within a rapidly developing, market-driven economy. Plans that do exist are outdated and/or inappropriate for the needs of modern cities. Poor planning and approval mechanisms, and the tenuous linkages between the plan-making and land management processes, mean that the implementation and enforcement of plans is inadequate and ineffective.




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Table 11: Details of the Consultants for Part A and Capacity Building Program Part A: URBAN PLANNING AND MUNICIPAL FINANCIAL

MANAGEMENT Unit Phasing Unit Cost Unit Cost (US$)

Total Base Cost ('000 $) 2011 2012 2013 2014 2015 2016

Urban Planning Urban Planning - Contract through UU Advisory Services and technical support - (Int'l) (firm/QCBS) Int'l Urban and Regional Planner (Int'l) person months 5.00 7.00 5.00 - - - 17.00 22,000.0 374.0 Urban Economic Development Planner (Int'l) person months 2.00 2.00 2.00 - - - 6.00 18,000.0 108.0 Urban Transport Planner (Int'l) person months 1.00 2.00 - - - - 3.00 18,000.0 54.0 Community Development Planning Expert (Int'l) person months - - - - - - - 18,000.0 - Housing Sector Expert (Int'l) person months - - - - - - - 18,000.0 - Urban Statistician (Int'l) person months - - - - - - - 18,000.0 - Communications Specialist (Int'l) person months - - - - - - 16,000.0 - Housing Sector Expert (Int'l) person months - 1.00 - - - - 1.00 18,000.0 18.0 Nat'l Urban/ Town Planners (2) (Nat'l) person months 9.00 13.00 8.00 - - 30.00 4,000.0 120.0 Community/ Social Development Expert (Nat'l) person months 2.00 2.00 2.00 - - 6.00 3,500.0 21.0 Urban Statistician (Nat'l) person months 2.00 2.00 2.00 - - 6.00 2,500.0 15.0 Environmental Specialist (nat'l) person months 2.00 2.00 2.00 - - 6.00 3,500.0 21.0 Urban Transport Planner (nat'l) person months 4.00 6.00 4.00 - - 14.00 4,000.0 56.0 Institutional Development/ Legal Expert (nat'l) person months 0.50 0.50 - - - 1.00 15,000.0 15.0 Housing Sector Expert (nat'l) person months 2.00 2.00 2.00 - - 6.00 4,000.0 24.0 Communications Strategy/ Participation Expert (nat'l) person months 2.00 2.00 2.00 - - 6.00 3,500.0 21.0 Water and Sanitation expert (nat'l) person months 3.00 3.00 3.00 - - 9.00 3,500.0 31.5 SWM Expert (nat'l) person months 3.00 3.00 3.00 - - 9.00 3,500.0 31.5 Municipal Finance Specialist (nat'l) person months 2.00 2.00 2.00 - - 6.00 4,000.0 24.0 Support Staff (including CAD Operators, Surveyors, etc for Urban Planning) person months 12.00 24.00 24.00 - - 60.00 1,000.0 60.0

Consultants' overheads (for firms) 210.2 Total Consultancies under Urban Planning 1,204.2

Operating/ Direct Costs for Urban Planning Contract 000 $ 59.6 104.2 104.2 59.6 - 327.6 327.6 Capacity Building of Urban Planning Staff of TMAs - Contract through UU Foreign Training of Staff for Urban Governance (10 scholarships)

per trainee - 2 2 2 4 - 10 75,000 750.0

Total Capacity Building under Urban Planning 750.0 Computers, Office Equipment, Furniture and Fixtures Desktop computers number 6 - - - -

6 600.0 3.6

Laptop computers number 2 - - - -

2 1,000.0 2.0 Multimedia projectors number 1 - - - -

1 3,000.0 3.0

Video conferencing equipment number - - - - -

- 10,000.0 -




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Part A: URBAN PLANNING AND MUNICIPAL FINANCIAL MANAGEMENT Unit Phasing Unit Cost Unit Cost

(US$) Total Base

Cost ('000 $) 2011 2012 2013 2014 2015 2016 Computer Server number 1 - - - -

1 10,000.0 10.0

Laser printers number 2 - - - -

2 6,000.0 12.0 Consumables for computers and other office equipment package - - - - -

- 15,000.0 -

Plotters number 1 - - - -

1 8,000.0 8.0 Line printers number 1 - - - -

1 800.0 0.8

Photocopiers (heavy duty) number 1 - - - -

1 2,000.0 2.0 Photocopiers number 1 - - - -

1 800.0 0.8

Web cameras number - - - - -

- 200.0 - UPS number 4 - - - -

4 350.0 1.4

Networking set-ups number 1 - - - -

1 1,000.0 1.0 Various Liscensed Software packages package 4 - - - -

4 7,500.0 30.0

Fax machines number 2

2 400.0 0.8 Miscellaneous equipment number

- 1,400.0 -

Telephone system number - - - - -

- 1,500.0 - Sub total for office equipment for Urban Planning 75.4

Office furniture sets (3 chairs, 1 table) set 8 - - - -

8 400.0 3.2 Office storage furniture sets (shelves/racks, bookcases, filing cabinets, safe, etc) set 2 - - - -

2 750.0 1.5

Office set-ups/renovations number - - - - -

- 14,000.0 - Airconditioners number 4 - - - -

4 750.0 3.0

Generators (small) number - - - - -

- 750.0 - Generators (large) number 1 - - - -

1 25,000.0 25.0

Water coolers/dispensers number 4 - - - -

4 250.0 1.0 Office fixtures and fittings number - - - - -

- 1,500.0 -

Sub total for furniture and fixture for Urban Planning 33.7 Total for Computers, Office Equipment, Furniture and Fixtures 109.1

Computers, Office Equipment, Furniture and Fixtures Computers & Office Equipment - 11 TMAs for Urban Planning

000 $ - - - - - - - -

Office Furniture and Fixtures - 11 TMAs for Urban Planning 000 $ - - - - - - -

- Total for Urban Planning 2,390.9

Municipal Financial Management Municipal Financial Management - Contract thru UU Advisory Services and technical support - (firm/QCBS)

Int'l International Financial Management Specialist for enhancement of FMIS (Int'l)

person months - 1 2 - - 3 20,000.0 60.0

Nat'l Financial Management Training Expert for Initial FMIS person months - - - - - - - 4,000.0 -




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Part A: URBAN PLANNING AND MUNICIPAL FINANCIAL MANAGEMENT Unit Phasing Unit Cost Unit Cost

(US$) Total Base

Cost ('000 $) 2011 2012 2013 2014 2015 2016 Training for staff of TMA Sialkot (Nat'l) Financial Management Specialist for Preparation of FMIS Guide (Nat'l)

person months - - - - - - 4,000.0 -

Financial Management Specialist for Post FMIS implementation support (Nat'l)

person months - - - - - - 4,000.0 -

Financial Management Specialist for training and capacity building (Nat'l)

person months - - - - - - 4,000.0 -

Municipal Finance Research Specialist (Nat'l) person months - - - - - - - - Municipal Revenue Specialist for improving own source revenues in 11 TMAs (Nat'l)

person months 2 12 12 4 - 30 4,000.0 120.0

Financial Management Documentation Specialist (Nat'l) person months - - - - - - 4,000.0 - Consultant for design and Implementation of GIS based Reformed Property Tax System in Sialkot

- 3 12 6 - - 21 4,000.0 84.0

- - - - - - - 4,000.0 -

264.0

Consultants' overheads (for firms)

38.40 Total Consultancies under Municipal Financial Management 302.4

Computers, Office Equipment, Furniture and Fixtures - TMA Software and Hardware for GIS/MIS - TMA Installation of PMDFC's FMIS at TMA Sialkot - - - - - -

- - -

GIS system design/ installation/ operation for improved Property Tax and land management - - - - - -

- 700,000.0 -

MIS system design/installation/ operation for public awareness, disclosures and consumer services - - - - - -

- 150,000.0 -

Total Software & Hardware for GIS/ MIS and FMIS - Computers, Office Equipment, Furniture and Fixtures - TMA - Sialkot Computers & Office Equipment - TMA 000 $ - - - - -

-

-

Office Furniture and Fixtures - TMA 000 $ - - - - -

-

- Equipment for Municipal Financial Management (Implementation of Reformed Property Tax)

000 $ 25.0 - - - - 25.0 25.0

Studies and Surveys for Municipal Financial Management Survey of Properties for Implementation of Reformed Property Tax in Sialkot

000 $ 31.3 93.8 - - - 125.0 125.0

Total for Municipal Financial Management 452.4 Total Base Cost for Component A - Urban Planning and Municipal Financial Management 2,843.3




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184. The Consultant will, on behalf of the Urban Unit, also manage all day-to-day operations and issues under the Program as and when required. The Consultant will report to and work under the overall guidance of the Urban Unit and will work in coordination with other consultants, individual as well as consulting firms, engaged by the Urban Unit and the WSCs as required.

185. Details of the consultants and the cost for the international firm and individual consultants are given in Table 12:

2.5.5 Institutional Arrangement for the Transport Component 186. For the transport component, the relevant TMAs will be responsible for implementation. This component will be supported by the individual consultants of the Urban Unit, Part E consultants and ICS consultants present at the TMA level. The organisational chart for the TMA to implement this component is given in Figure 6.

187. Regional transport authorities or similar organizations will also be established to plan, build and maintain urban transport infrastructure, including bus stops, shelters, bus lanes and markings, signage, bus terminals and interchanges and transfer terminals in the TMAs. These agencies are seen as transitional arrangements before the second stage reforms of PCIIP that seek to introduce more comprehensive public private partnerships. Here these agencies will seek private sector involvement through a variety of performance-based contract arrangements.

2.6 Investment Program Preparation

188. A detailed medium term (8 year) investment plan has been designed for the ADB financing under its multi tranche financing facility. The plan has been designed for both the physical investments and for non-physical investments and a capacity development program for the 11 participating cities. This investment program will be implemented in five tranches. A complete design for non-physical program entailing capacity development in urban planning and municipal financial management and for undertaking urban planning reforms has been developed. Detailed planning and strategies have been developed for Tranche 1 in Sialkot and are described in the next section. 189. Drawing on a growing body of case studies worldwide, the reasons for cluster formation and the potential productivity, innovation and efficiency benefits of urban clusters, adopting a cluster based approach would be considered for future tranches of the program. 190. To support efficient cities and transform urban services, PCIIP will provide phased, geographically-focused and transformative investments that support a step change in organizational and incentive structures for urban planning, management and service delivery. PCIIP will target 11 larger intermediate cities, for capacity development in urban planning and municipal financial management. Of these cities, PCIIP will target two to three city clusters for transformative investments in urban infrastructure and services. 191. Tranche 1 of the project will be focused on the Sialkot City. There will be five tranches in the investment plan focussing on both the physical and non-physical investments. 192. Achieving the goals included in the road map and the actions identified for achieving these goals will trigger the release of funds for the other tranches. A list of the sub projects for subsequent tranche investments has been developed and has been presented in Table 7.




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Table 12: Costing for Part E (for International Consultants and Individual Consultants to be hired by the Urban Unit) Program Support and Capacity Development Unit Phasing Unit

Cost Unit Cost

(US$) Total Base

Cost ('000 $) 2011 2012 2013 2014 2015 2016 Support for Program Management for UU Advisory Services and technical support - UU (firm/QCBS) Int'l Team Leader (Project Mgt, Engineer and Procurement Advisor)

person months 2 4 4 4 4 18 20,000.0 360.0

Urban Transport Specialist (Int'l) person months 0 3 3 0 0 6 20,000.0 120.0 Municipal Services Engineer/ Advisor WSS/WWM (Int'l) person months 2 3 3 3 1 12 20,000.0 240.0 Municipal Services Engineer/ Advisor SWM (Int'l) person months 0 2 2 1 1 6 20,000.0 120.0 Municipal Service Delivery / Low Income Services Advisor (Int'l) person months

0 0 0 0 0 - - -

Procurement Advisor (Int'l) person months 0 0 0 0 0 - - - Municipal Finance, Tariff and Regulatory Advisor (Int'l) person months 0 0 0 0 0 - - - Financial Management Information System Specialist (Int'l) person months 0 0 0 0 0 - - - Safeguards Advisor - Environment (Int'l) person months 0 2 2 1 1 6 18,000.0 108.0 Senior Transaction Advisor (Int'l) person months 0 3 3 2 2 10 25,000.0 250.0 Transaction Advisor (Int'l) person months - 3 3 2 2 10 16,000.0 160.0 Safeguards Advisor - Land Acquisition and Resettlement (Int'l) person months - 2 2 1 1 6 18,000.0 108.0 Unallocated International Expertise person months 0 2 2 2 0 6 20,000.0 120.0 Nat'l person months 0 0 0 0 0 - - - Transport Specialist/ Design Engineer (Nat'l) person months 2 3 3 2 2 12 5,000.0 60.0 Municipal Services Engineer - WSS (Nat'l)/ DTL person months 4 12 12 12 12 52 5,500.0 286.0 Municipal Services Engineer - SWM (Nat'l) person months 0 3 2 2 2 9 4,000.0 36.0 Legal advisor (Natl) person months 0 1 1 1 1 4 15,000.0 60.0 Monitoring and Evaluation Specialists (Natl) person months 2 2 2 2 1 9 4,000.0 36.0 Project Economist/ Financial Analyst (Nat'l) person months 0 2 2 2 2 8 5,000.0 40.0 Materials/ Site Engineer (Nat'l) person months 0 3 3 3 3 12 4,000.0 48.0 Resident Civil Engineer (Nat'l) person months 0 8 8 8 6 30 4,000.0 120.0 Contract Engineer (Nat'l) person months 1 1 0 0 0 2 5,000.0 10.0 Communications/Public Awareness Specialist (Nat'l) person months 4 4 4 2 2 16 5,000.0 80.0 Junior WSS Engineer person months 5 8 8 6 6 33 1,500.0 49.5 Junior Transport Engineer person months 5 6 6 4 4 25 1,500.0 37.5 Safeguards Specialist Environment (natl) person months 0 2 2 1 1 6 4,000.0 24.0 Safeguard Specialist (Nat'l) Land Acquisition and Resettlement person months

1 2 2 1 1 7 4,000.0 28.0

Senior Transaction Advisor (Nat'l) person months 0 0 0 0 0 - - - Procurement/ Transaction Advisor (Nat'l) person months 2 4 4 4 2 16 5,000.0 80.0 Structural Engineer person months 0 2 2 2 2 8 4,000.0 32.0 Hydro-Geologist person months 0 2 2 2 2 8 4,000.0 32.0




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Program Support and Capacity Development Unit Phasing Unit Cost

Unit Cost (US$)

Total Base Cost ('000 $) 2011 2012 2013 2014 2015 2016

Survey Engineer/ Quantity Surveyor person months 2 6 6 6 4 24 3,000.0 72.0 Surveyors person months 0 12 12 12 6 42 1,000.0 42.0 CAD Operators person months 0 12 12 12 6 42 1,000.0 42.0 Assistant Resident Engineers person months 0 8 8 8 8 32 1,500.0 48.0 Civil works Inspectors person months 0 12 12 12 12 48 1,000.0 48.0 Liaison Officer (Nat'l) person months 0 0 0 0 0 - 4,000.0 - Provisional (TBD) person months 0 8 8 8 0 24 4,000.0 96.0

2,993.0

Consultants' overheads (for - firm)

616.50 Total for (a) 3,609.5

Advisory Services and technical support - UU (individual/ICS) Program Manager person months 6 12 12 12 3 45 4,000.0 180.0 Urban Planner (Nat'l) person months 6 12 12 6 0 36 3,500.0 126.0 Municipal Finance Specialist (Nat'l) person months 6 12 12 6 0 36 3,500.0 126.0 WSS Specialist (Nat'l) person months 6 12 12 6 0 36 3,500.0 126.0 SWM Specialist (Nat'l) person months 6 12 12 6 0 36 3,500.0 126.0 Urban Transport Specialist (Nat'l) person months 6 12 12 6 0 36 3,500.0 126.0 Accounts Specialist (Nat'l) person months 6 12 12 12 3 45 3,000.0 135.0 Procurement Specialist person months 6 12 12 12 0 42 3,500.0 147.0 Procurement Officer person months 6 12 12 12 0 42 2,500.0 105.0 Inventory Controller person months 0 0 0 0 0 - 2,500.0 - Safeguard Specialist (Nat'l) - Environment person months 6 12 12 12 0 42 3,500.0 147.0 Safeguard Specialist (Nat'l) - Land Acquisition and Resettlement

person months 6 12 12 12 3 45 3,500.0 157.5

M&E Specialist person months 6 12 12 12 3 45 3,500.0 157.5 Unallocated National Expertise person months 6 12 12 12 3 45 3,500.0 157.5

1,816.5

Consultants' overheads (for - individuals)

0.00% - Total for (b) 1,816.5

Advisory / Consultant support for TMA Sialkot (individual/ICS) Municipal Finance Specialist for TMA Sialkot (nat'l) person months 6 3 3 - - 12 2,500.0 30.0 Procurement & Contracts Specialist (nat'l) person months 6 12 12 - - 30 2,500.0 75.0 Safeguards Specialist - 1 for environment/ 1 for resettlement/ social (2 persons) (natl)

person months 12 24 24 - - 60 2,500.0 150.0

Reporting & M&E Specialist (nat'l) person months - - - - - - 2,500.0 - HRM Specialist (nat'l) person months - - - - - - 3,000.0 - HRM - Junior person (nat'l) person months - - - - - - 1,500.0 - Urban Planning Specialist (nat'l) person months 6 12 12 - - 30 2,500.0 75.0 Urban Planning Specialist - junior person (nat'l) person months 6 12 12 - - 30 1,000.0 30.0




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Unit Cost (US$)

Total Base Cost ('000 $) 2011 2012 2013 2014 2015 2016

Provisional Allocation (TBD) person months 12 24 24 12 12 84 500.0 42.0 Provisional Allocation (TBD)

402.0

Consultants' overheads (for individuals)

0.00% -

402.0

Studies and Surveys WS WTP Surveys in different cities per survey - 1.0 1.0 - - 2 50,000.0 100.0 Traffic Surveys in different cities per survey - 1.0 1.0 1.0 1.0 4 20,000.0 80.0 Surreys including Geo-technical investigations, Hydro-geological Investigations, Topographical Surveys, GIS Mapping, etc in different cities lumpsum

0.2 0.3 0.3 0.2 - 1 200,000.0 200.0

Energy Audit - in other cities lumpsum - 0.5 0.5 - - 1 125,000.0 125.0

505.0

Computers, Office Equipment, Furniture and Fixtures for UU

Desktop computers number 12 - - - - 12 600 7.2 Laptop computers number 8 - - - - 8 1,000 8.0 Multimedia projectors number 2 - - - - 2 3,000 6.0 Video conferencing equipment number 1 - - - - 1 10,000 10.0 Computer Servers number 2 - - - - 2 15,000 30.0 Laser printers number 2 - - - - 2 6,000 12.0 Consumables for computers package - - - - - - - - Additional IT Resources package 4 - - - - 4 8,000 32.0 Plotters number 1 - - - - 1 8,000 8.0 Photocopiers (heavy duty) number 1 - - - - 1 2,000 2.0 Photocopiers number 2 - - - - 2 800 1.6 Web cameras number - - - - - - 200 - UPS number 6 - - - - 6 350 2.1 Networking set-ups number 1 - - - - 1 1,000 1.0 Various Licensed Software packages package 4 - - - - 4 7,500 30.0 Fax machines number 2 - - - - 2 400 0.8 Miscellaneous equipment number 1 - - - - 1 3,000 3.0 Telephone system number 1 - - - - 1 1,500 1.5

Subtotal Computers & Office Equipment - UU 155.2 Furniture and Fixture for UU Office furniture sets (3 chairs, 1 table) set - - - - 10.0 800.0 8.0 Office storage furniture sets (shelves/racks, bookcases, filing cabinets, safe, etc)

set - - - - 6.0 750.0 4.5

Office set-ups/renovations number - - - - 1.0 14,000.0 14.0 Air conditioners /d number - - - - 10.0 750.0 7.5




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Unit Cost (US$)

Total Base Cost ('000 $) 2011 2012 2013 2014 2015 2016

Generators (small) number - - - - 1.0 750.0 0.8 Generators (large) number - - - - 1.0 35,000.0 35.0 Water coolers/dispensers number - - - - 6.0 250.0 1.5 Office fixtures and fittings (TBD) number - - - - 1.0 5,000.0 5.0 Subtotal Office furniture and fixtures - UU

76.3

Vehicles for UU 000 $ 110.0 - - - - 10.0 110.0 Subtotal Support to Urban Unit - Equipment 341.5

Vehicles Incremental staff for UU Program/ Research Assistants (10) person months 60.000 120.000 120.000 60.000 - 360.000 500.000 180.000 Office Record Keeper person months 36.000 72.000 72.000 72.000 72.000 324.000 200.000 64.800

244.8

Incremental Operating Costs for UU Incremental Operating Costs for UU 000 $ 109.4 218.8 218.8 117.4 16.0 680 680.3

Total Base Costs for Component E - Program Management Support 7,599.50 Note: This does not include cost for Independent Verifier which has been given above.




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Figure 6: Organization Chart for Tehsil Municipal Administration Implementing Agency for

Part C: Urban Transport and Traffic Management

District Development Committee

Subcommittee on procurement3 members: District Coordination Officer TMA Representative Urban Unit Representative (by

special invitation)

Tehsil Municipal Officer/ Tehsil Municipal Administration

Head

Implementing Agency

The Urban UnitExecuting Agency/ Implementing Agency

PCIIP Support within TMA

6 specialists (ICS - National): Senior and junior urban planners Municipal finance Safeguards specialists Contracts specialist

Urban Planning/Municipal Financial Management Consultant

(Part A)

Program ManagementConsultant

including independent Verifier(Part E)

Legend

Coordination & Guidance

Consultant Support

ICS = individual consultant selection, Natl = national, Intl = international, PCIIP = Punjab Cities Improvement Investment Program, TMA = Tehsil Municipal Administration




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193. The implementation schedule for Tranche 1 and the entire MFF has also been developed.

194. Environmental and social safeguard frameworks have been developed to guide the entire MFF. Environmental and social due diligence of the proposed investments for tranche 1 has also been undertaken and is explained in the next sections.


Section 3 Key Outputs Part B -Tranche 1 Preparation - Sialkot City


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3.0 KEY OUTPUTS PART B -TRANCHE 1 PREPARATION - SIALKOT CITY 195. Sialkot was selected as the subject of this study because of its size (population of about 600,000), progressive leadership, pro-active business community, and its established commercial and industrial base. These attributes position Sialkot for success and favoured candidate city to benefit from subsequent tranches of ADB financing. Maps of the Sialkot District and City and its placement in the national trade corridor are presented in Annex A 4 and Annex A 5. 196. Investment subprojects were formulated for inclusion in the Tranche 1 financing. For the identified sub projects, feasibility studies, preliminary engineering designs, detailed costings and procurement plan has been developed for Tranche 1 investments. 197. A strategic development plan framework and action plan has been developed along with the strategy and action plans for water supply, wastewater management, solid waste management and urban transport.

3.1 Strategic Development Plan Framework and Action Plan-Sialkot

198. The Tranche 1 preparation is first and significant step in the process for the preparation of a fully fledged Sialkot Strategic Development Plan (SSDP). Under the auspices of the ADB PCIIP initiative, provision is made for the procurement of contract services to undertake, within the context of this framework and action plan, the comprehensive and detailed preparation of the fully fledged Sialkot Strategic Development Plan (SSDP) which will constitute the Master Plan10 under the definition of GoP Local Government and Community Development Department’s ‘Punjab Land Use Rules (2009). Furthermore, provision is also made for the preparation of an up-dated land use plan for the newly defined ‘planning area’, city and peri-urban structure plans, outline development and/or action area plan(s) for the ‘core city ’11 area that will also include the identification of ‘notified areas’ and the preparation of appropriate land use redevelopment and reclassification plans .12 199. Hence, the proposed Strategic Development Planning Framework and Action Plan for Sialkot acts as a ‘pilot’ initiative that will path the way for lessons learnt for adaptation and application in the other ten priority cities identified under the ADB PCIIP.

200. The document aims to provide a springboard for further incremental action to be taken to drive the reforms and restructuring of the planning system to effectively manage the complex dynamics of future urban growth and change that Sialkot will experience. It should act as a catalyst, providing provocative views and partial answers to such questions as: What are the trends that have shaped Sialkot today and what growth

pressures will it face over the next twenty years? What can be pragmatically done to modify and redirect the future patterns of

development to achieve the desired outcomes – the future ‘vision’ for Sialkot

10 Punjab Land Use Rules (2009): ‘Master Plan’ means a land use plan of an area and includes a structure plan, an outline

development plan, a spatial plan, peri-urban structure plan(s) and metropolitan plan. 11 Ex Municipal Committee Planning Area consisting of 16 Union Councils (ref Figs 7 and 8 12 Punjab Land Use Rules (2009): Ref. Chapters IV and V.




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What changes in the administrative area definitions and institutions need to be considered and adopted to effectively manage the process of growth and change?

201. As such, this document is another step in the many that have preceded it to achieve convergence and ultimately consensus and commitment for concerted action by all stakeholders to join forces and make the planning system for Sialkot a worthy model for replication. 202. It does not profess to be a master plan or a blue print for the future, rather it is a tool that the District and Tehsil Administrations and other key stakeholders such as the Urban Unit, can use to pro-actively plan the future of the region. It is the result of a process that has sought to examine where the state of the urban development and land use management is today, where it might which to be in the future and how to get development onto the trajectory that will achieve the desired outcomes. As such its objective is to provide an integrated cross-sectional analysis of the existing situation and past trends derived from analysis of ground realities and consultations with different stakeholders. From this baseline understanding a synthesis of future options supported by recommended action and implementation measures are presented as a ‘framework’ to be taken-up by the next stage of urban planning procurement under the ADB PCIIP. 203. Broadly, the Sialkot Strategic Development Framework and Action Plan provides a strategic framework within which a more detailed set of plans can be elaborated and, with complementary and supportive administrative development and legislative reforms, will constitute a comprehensive planning and development management system that is able to deliver optimal benefits to today’s and the future generations of Sialkot City. 204. The framework developed recognises that the current forces of unbridled market forces cannot be harnessed in the short-term. Therefore, it aims to provide a pragmatic and strategic development framework within which the more detailed plans will be used to incrementally guide, manage and control future growth towards the creation of a city form that will function better as an urban economy and provide a more liveable city for its citizens. 205. To this end, the model of development advocated is a poly-centric, metropolitan city that will have at its centre a core city with a distinctive identity, efficiently connected through an integrated concentric and radial highway network to secondary and tertiary sub-centres and associated commercial and industrial clusters built-on the competitive advantage of their local economic development profile strengths. 206. It is foreseen that within this overarching structure, that the peri-urban centres and commercial/industrial clusters within the metropolitan planning area will be compact, enabling the release and reservation of interstitial lands as an inter-linked open space system containing recreation and low density metro-level education and health facilities. Two ‘grand plan’ concepts are also advocated for consideration: i) the creation of a Regional Parkway between the Upper Chanab and Marala Ravi canals between the Siakot-Sambrial and Marala-Airport Roads, and ii) that both the Siakot-Sambrial and Marala-Airport Road corridors are considered for the development of rapid transit schemes. Annex A 6 to Annex A 8 present the projected built up area of Sialkot, proposed planning area and proposed outline development strategy plan respectively.




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207. Please see the Sialkot Strategic Development Plan Framework and Action Plan document for details.

3.2 Water Supply Strategy and Action Plan – Sialkot

208. For water supply component, a detailed strategy and action plan has been developed for Sialkot. The action plan has been based upon detailed investigation of the existing service network, its coverage, quality and reliability. A number of surveys were undertaken to collect missing information and all existing information from the surveys and studies undertaken in past was collected and mapped on a base map. Surveys have been undertaken to collect the information on the location of tubewells and water supply zones. Energy audit was also undertaken to assess the efficiency of the existing system. Information was collected for all available plans and strategies and the development projects being implemented through local and provincial resources were reviewed. 209. Based upon the analysis of the existing situation, the Water Supply Strategy and Action Plan sets the desired long-term objective, and a series of investments over the short, medium, and long terms to achieve the objective and the required operational reforms.

210. Extensive consultations were undertaken with the local government, private sector, civil society and citizens to gauge their perceptions and to reach a consensus on the action plan.

211. The proposed long term vision and strategy for water supply in Sialkot is that all inhabitants enjoy access to a continuous 24 hours per day water supply, delivered in adequate quantities at good pressure. The proposed strategy is a stepwise expansion of facilities in a way that matches operational needs to management capacities. There should be a strong initial focus on water supply, with the aim of increasing the percentage of the population connected from about 35% of the urban population at present up to at least 75% by the end of the project period. At least 80% of consumers should have a supply that is continuous (24/7) and meets WHO water quality standards. Proposed sub-projects will involve improvements to existing facilities within the present supply area and expansion into selected areas on the outskirts of the city. In all cases, there will be a strong focus on operability.

212. Following are the important features of the strategy for water supply in Sialkot:

Adopt zoning approach for whole water supply system and bring immediate

improvements Ensure that existing water supply services are operating well Emphasis should be on extending the water reticulation system into peri-

urban areas, particularly the built-up areas that lie outside the old municipal limits

Ensure that every citizen receives an adequate service in terms of quantity, pressure and quality

Reduce unaccounted water, including both leakage and non-revenue water use to an acceptable percentage of total water production

Ensure that facilities are maintained and replaced when they have reached the end of their working life

Achieve staffing levels of around 3 per 1,000 connections for water supply (down from the current level of about 4.5)




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Improve stores and procurement systems and procedures, so as to minimise delays in responding to needs

Provide staff training so that staff with the knowledge and skills work with new systems and technologies13.

213. During the first years of the implementation of Tranche 1, there will be a need

for studies and surveys to establish a more strong baseline about the condition of the existing system.

3.2.1 Description of Works for the First and Second Tranches

a. First Tranche

214. Following are the water-related investments proposed for Tranche-1:

Rehabilitation of existing tube wells and replacement of tubewells Subdivision of existing central water supply zones 24/7 improvements in three existing water supply zones Operationalization of Gohadpur water supply scheme 24/7 new water supply in three zones Additional elevated reservoir capacity – existing supply area

215. Description of works to be carried out for the above projects is the following and these sub projects are shown on the map in Annex A1. 216. Please see the Water Supply, Sewerage and Drainage Strategy and Action Plan-Sialkot for further details.

1. Rehabilitation of Existing Tubewells

217. About 84 tubewells within the city area and 15 tubewells within the Cantonment area are in operational condition but would benefit from rehabilitation and the provision of bulk flow meters, pressure gauges and chlorination equipment. The total number of tube wells to be rehabilitated is 99.

218. Rehabilitation should include complete rewiring and replacement of existing unsatisfactory control units, including provision of MCUs (motor control units) at all tube wells to guard against motor burn-out due to low voltage in the electricity distribution system. It will also involve provision of bulk meters and pressure gauges at every tubewell.

2. Replacement of Existing Tubewells

219. Some Existing tubewells would be replaced because either (a) their depth is less than 150 metres so that they may be subject to contamination or (b) the tubewell is no longer performing efficiently because of clogging of the screens. The number of `tubewells to be replaced is estimated at 15. 3. Subdivision of Existing Central Water Supply Zone

220. At present, the central part of Sialkot, including all or parts of Water Works, Mohammad Pura, Karim Pura, Ahmed Pura, Pura Hiran, Imam Sahib, Shah

13 Distribution coverage will be higher than this – the aim should be to achieve at least 95% area coverage - but percentage coverage in terms of connections will be less than percentage area coverage because some households will choose not to connect.




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Sayyadan, Haji Pura, Shahab Pura and Fateh Garh union councils is served by one undifferentiated distribution system. In order to facilitate management of the system, this will be divided into several separate zones.

4. Improvements in Three Water Supply Zones

221. Water supply improvement in three zones would be carried in such a manner that every inhabitant has access to a continuous 24 hours per day water supply, delivered in adequate quantities at good pressure.

222. This sub-project would include for the replacement of distribution mains and house connections in three zones, 6, 8 and 9. Allowance has been made for replacing up to 112km of mains, just under 60% to 70% of the existing system, together with about 27,600 house connections along with water meters during the first tranche of investment. The main benefit of household metering is that it reduces wasteful use or misuse of water, discouraging people from using expensively produced water to wash cars and water gardens and ensuring that household storage tanks are not allowed to routinely overflow so that water goes straight to waste.

223. In addition, allowance is made for replacing an additional 10km of small diameter water mains to replace bundles of long house connections, which are generally located in narrow lanes.

5. 24/7 New Water Supply in Three Zones- Services Beyond 2001 Municipal

Limits

224. Most of Sialkot’s growth is occurring in the areas outside the old municipal limit and the lack of water supply systems in these areas means that few households have access to piped water supply. New tubewells, storage and distribution mains are required to serve these areas. During Tranche 1, supply will be extended to three built up area outside the municipal limits, zones 11, 14 and 17.

225. Household metering would be introduced in these supply zones. Elevated storage reservoirs would be provided balancing storage to allow for fluctuations in demand, filling during periods of low demand and emptying at periods of peak demand. They can also store sufficient water to allow continued supply for periods when there is no water production in case of Load-shedding. 3 to 4 hours storage would be provided based on average demand.

6. Operationalization of Gohadpur Water Supply Scheme

226. The main objective of operationalize Gohadpur scheme is to provide 24/7 water supply delivered in adequate pressure and quality. The Gohadpur scheme has been designed and implemented by the TMA. It includes five tubewells and distribution mains but as yet there are no house connections. The proposed work comprises laying house connections, fitting MCUs and bulk meters to the five tubewells and providing elevated storage. Initial calculations are based on the capacity of the five tubewells suggest that the scheme will supply up to about 5,200 connections. In addition to house connection, household metering is proposed for this scheme to reduce wasteful use or misuse of water.




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227. Provision has been made for a 20,000 gal (910 cubic metre) capacity elevated reservoir. This will provide almost 3-4 hours storage at average daily demand. Service reservoirs also provide balancing storage to allow for fluctuations in demand, filling during periods of low demand and emptying at periods of peak demand. They can also store sufficient water to allow continued supply for periods when there is no water production.

7. Additional Elevated Reservoir Capacity – Existing Supply Area

228. On the basis of 3 hours storage at average demand, the total storage required to serve the population will be about 1.75 million gallons. Existing storage totals 570,000 gallons so that the total storage required is 1.18 million gallons, equivalent to six 200,000 gallon elevated reservoirs.

229. Six reservoirs, with a total capacity of 1, 200,000 gallons (5,454 cubic metres) are proposed for the first tranche of works. b. Second Tranche

230. During the second tranche, the main proposed projects are the following:

Improvements to the existing water supply distribution system in areas not

included in first tranche works New water supply schemes in peripheral areas

3.2.2 Costs of the Works for the First Tranche

231. The cost of works for the water supply system for the first tranche is presented in Table 13.

3.2.3 Willingness to Pay (WTP)

232. The following WTP figures are from the WTP survey undertaken in Sialkot as part of the PPTA.

a. Households Households with Piped Water Connections 233. The computed mean WTP for monthly bills for improved water supply services is Rs.350. Lower limit is Rs.297 while upper limit is Rs.403. Households without Piped Water Connections 234. The computed mean WTP for monthly bills for new connections to the water supply system is Rs.225. Lower limit is Rs.46.33 while upper limit is Rs.761. b. Commercial Enterprises

Improved Water Supply System 235. The mean WTP for improved water supply system is Rs.444.40. The mean WTP of Commercial entities without piped water system was no longer derived since there were only 10 of them.




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Table 13: Details and Costing of Water Supply Sub Projects PCIIP - Tranche 1 ---- Detail of Project

Components/ Sub-Components Phasing Unit Cost Total Base

Cost ('000 $) Unit 2011 2012 2013 2014 2015 2016 Total (US$) Water Supply Investment Projects Rehabilitation of Existing tubewells 000 $ 1.Bulk meters - Rehabilitation of Existing 99

tubewells /f 143.55 0 0 0 0

143.55 2.Rehabilitation of existing 99 tubewells /f 473 473 3. Chlorination Equipment /f 34.7 34.7 Total 651.25 0 0 0 0 651.25 651.25 Replacement of 15 shallow or poor performing tubewells /h 000 $ 750 0 0 0 0 750 750 Sub-division of existing central WS Zone / d 000 $ 0 30 30 0 0 60 60 Water supply improvements in 3 water DNI zones to provide 27,000 households with 24/7 supply /a 1. Improvement of 3 water supply zones - mains /a - 600.0 1,200.0 1,200.0 - - 3000 2. Rehabilitation of elevated reservoirs (improvement of 3 supply zones) /a - 24 48 48 - - 120 3. Domestic water meters - Improvement of three

zones /a 0 740 740 740 550 2770 4. Commercial Water Meters in existing and new

areas/a 0 84 112 112 112 420 Total 1,448.0 2,100.0 2,100.0 662.0 6,310.0 6,310.0

Operationalization of Gohadpur Road Area WS Scheme /c 1. Operationalization of Gohadpur Road Area WS

Scheme /c 325 0 0 0 0 325 2. Elevated Tanks for Gohadpur Road Area WS

Scheme / c 300 0 0 0 0 300 3. Domestic water meters - Operatonalizatin of

Gohadpur Road Area WS /c 0 520 0 0 0 520 Total 625 520 0 0 0 1145 1145

Additional Elevated Reservoir Capacity - existing supply area /e 000 $ 0 360 1080 360 0 1800 1800 24/7 New water Supply Services for 25,000 hh in three zones, areas along Roras Road, Wazirabad Road and Aimanabad Road /b 1. Water Supply beyond 2001 municipal limits /b 0 500 1000 1000 0 2500




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PCIIP - Tranche 1 ---- Detail of Project Components/ Sub-Components

Phasing Unit Cost Total Base Cost ('000 $) Unit 2011 2012 2013 2014 2015 2016 Total (US$)

2. New elevated reservoirs - water supply beyond 2001 municipal limits/b 0 260 520 520 0 1300

3. Domestic water meters - WS beyond 2001 municipal limits /b 0 0 675 650 620 1945

4. Tubewells - 1.5 cusecs -WS beyond 2001 municipal limits /b 0 350 350 150 0 850

Total 0 1110 2545 2320 620 6595 6595 Small scale emergency repair works of water supply system 1.Small scale civil works for emergency repairs of

water supply system 200 200 0 0 0 400 2.Equipment for emergency repairs of water supply

system 50 50 0 0 0 100 Total 250 250 0 0 0 500 500

Priority Tools, Safety Equipment, etc for SWSC Testing equipments, tools, safety equipment, etc for SWSC WS-WWM 000 $ 140 0 0 0 0 140 140 Water Bowzers 000 $ 60 0 0 0 0 60 60

Total Water Supply 18,011.25 Note: the cost of Management operator contract for SWSC is not included in above figures




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3.3 Wastewater Management Strategy and Action Plan – Sialkot

236. Strategies for water supply and waste management have been developed as one document but a detailed assessment of the existing wastewater system has been carried out. Information on all existing network of sewerage and drainage was collected and mapped on the base map. Surveys have been undertaken to collect information on existing drainage and sewerage system of Sialkot. Energy audit was also undertaken to assess the efficiency of the existing system.

237. Based upon the analysis of the existing system and through drawing from stakeholder consultations, the strategy and action plan for wastewater management has been developed that identifies the actions for short, medium and long term.

238. The long term strategy and vision for Sialkot wastewater management is the following:

All wastewater is removed from residential, commercial and industrial areas

and treated or otherwise managed in a way that prevents harm to the natural environment and removes health risks to the general populace.

Storm water is managed so as to avoid flooding and prevent excessive storm

water flows to sewage treatment works. This will mean separating sewerage and drainage systems as far as is possible. Where complete separation is not possible, the aim should be to slow storm flows into sewers so as to ensure that peak flows are attenuated and the drain capacity is not exceeded.

239. Main features of the strategy are:

Rehabilitation of existing pumping stations and sewers to ensure the

maximum return on investments By 2014, all drains and sewers within the pre-2001 municipal limits are

running freely and sewers do not suffer from surcharging by 2015. This implies that construction/ rehabilitation of pumping stations will be an initial priority

Tertiary drains replaced by sewers over at least 75% of the catchment areas of existing trunk sewers by 2018

New sewerage systems in place in at least 30% of the area outside the 2001 municipal limits by 2018

Treatment works sites identified and land purchased by 2015 and at least 20% of wastewater treated by 2018

All wastewater treatment facilities completed by 2030

240. Achievement of these goals and the strategy will also depend upon the following:

All houses have hygienic sanitation facilities and discharge any wastewater to

functioning sewers, which convey it to points at which it can be treated to an acceptable standard and reused or discharged to a suitable watercourse

Effective wastewater collection and treatment; and good management systems to ensure that facilities are maintained and repaired/replaced as and when necessary

Systems are in place to, as far as is financially and economically feasible, separate foul and storm water at source, convey wastewater to treatment




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facilities and storm water directly or indirectly to the Phalku, Bhaid and Aik Nullahs.

241. The actual rate of progress towards achieving the above strategy will depend on the availability of resources and the state of existing facilities. The proposed timing should be reviewed at intervals and adjusted as necessary in the light of experience.


a. First Tranche

242. The specific physical improvements proposed for Tranche 1 are as follows:

Supply of equipment for Sewer Maintenance Rehabilitation of Model Town wastewater pumping station New collector sewer along Khawaja Safdar Road from Allama Iqbal Colony to

Civil Lines/Jail Road Rehabilitation of the main pumping station New branch Sewers, in Fathegrah, Pasroor and Paris road areas

243. Description of works to be carried out for the above projects is the following and the figures showing these projects are presented in Annex A2. 244. Please see the Water Supply, Sewerage and Drainage Strategy and Action Plan-Sialkot for further details. 1. Supply of Equipment for Sewer Maintenance

245. At present, the TMA has no equipment for sewer maintenance. This deficiency needs to be rectified. A detailed study of needs is required to establish exact needs in relation to management systems. However, it will be appropriate to include some equipment in the first tranche funding. Provision has been made for one 7,000 litre capacity sucker/jetting machine, and a 7,000 litre capacity suction machine, plus basic equipment such as sewer rods etc.

2. Rehabilitation of Model Town Wastewater Pumping Station

246. This pumping station lifts wastewater from the sewers serving Model Town and discharges it into the adjacent Nullah. It was originally designed as a wet well – dry well pumping station preceded by a screening chamber. The dry well has been abandoned, although the structure seems to be in good condition. Wastewater is lifted by one centrifugal pump located at ground level so that it operates with a high suction lift. The result is that the incoming sewer is normally surcharged.

247. The proposed sub-project involves renovating the existing dry well, installing two new centrifugal pumps and providing replacement screening facilities.

3. New Collector Sewer along Khawaja Safdar Road from Allama Iqbal

Colony to Civil Lines/Jail Road

248. This proposed sewer will run alongside the Bhaid Nullah and will pick up flows from existing drains that currently discharge to the Nullah between Allama Iqbal Town and Civil Lines/Jail Road, including the Saddar Bazaar area in the Cantonment. A new pumping station will be provided at Civil Lines/Jail Road. This




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will initially lift wastewater into the Bhaid Nullah but may be adapted later to lift wastewater into the head of a new trunk sewer along General Bus Stand, Kashmir and Gohadpur Roads, which will direct wastewater to the proposed Northern Wastewater Treatment plant.

249. The proposed sewer will run in parallel with the remodelled section of the Bhaid Nullah, which is currently under execution by PHED. After completion of the sewer, this length of the nullah will carry only storm water.

4. Rehabilitation of the Main Pumping Station

250. This pumping station was initially designed to lift sewage from the existing 54” sewer into the Bhaid Nullah. As indicated previously, it has been non-operational for some time with wastewater allowed to back up in sewers and discharge to the Bhaid Nullah through an overflow channel. Operation of this pumping station is required if the main sewerage network for the city is to be rehabilitated and put back into use. So, rehabilitation of the pumping station is a priority project. In the short term, wastewater will continue to be discharged to the Bhaid Nullah. In the longer term, the pumping station will probably be used as an intermediate pumping station, lifting wastewater into a large diameter sewer that will convey it to a new treatment works site north of the city alongside the Phalku Nullah, a short way upstream of its confluence with the Bhaid Nullah.

5. New Branch Sewers, in Fathegrah, Pasroor and Paris Road Areas

251. Both Fategarh and the areas on either side of Pasroor Road fall within the catchment area of existing sewers that discharge by gravity to the Aik Nullah. Both areas will eventually fall within the proposed Southern drainage area, discharging to a Waste Water Treatment Plant to the south-west of Sialkot City. Both areas are partly sewered already but there is scope to provide more branch and collector sewers, thus increasing the number of houses connected to a sewer and reducing the ingress of silt to main sewers. Provision of new sewers providing services to 300 hectare areas are proposed for both Fategarh and Pasroor Road. Precise details of requirements will be decided at the detailed design stage.

252. The areas along Paris road and Katchehri road will fall in the catchment area of proposed collector sewer along Khawaja safdar road. More lateral and branch sewers will be provided in these areas.

253. Sadar Bazar area in the cantonment, and the area along Ghanta Ghar road will fall in the catchment area of proposed collector sewer along Khawaja Safdar raod

6. Small Scale Emergency Repair Works of WWM System

254. This component of subprojects includes small scale emergency repairs during operational and maintenance or during natural disasters, like heavy rain, damages due to low or high voltage or any other construction activities

b. Second Tranche Sub Projects

255. Proposed second and third tranche projects for wastewater management are:

Development of the Northern Sewerage Zone Sewage treatment to serve Northern Sewerage Zone




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New sewers and pumping stations in the Southern Drainage Area, sufficient to bring all sewage to the proposed waste water treatment plant site

New sewers and pumping stations in the Western Drainage Area, sufficient to bring all sewage to the proposed waste water treatment plant site

3.3.2 Costs of the Works for the First Tranche

256. The costs of works for the wastewater related sub projects are presented in Table 14:

3.3.3 Willingness to Pay

257. To be written and updated.

3.4 Solid Waste Management Strategy and Action Plan - Sialkot

258. A detailed solid waste management strategy and action plan has been developed for Sialkot. The plan has been based upon the detailed situation analysis of the existing situation relating to solid waste management infrastructure, systems and processes. Assessment was made of the waste production in the City and the systems being adopted for its segregation and disposal. The role of the relevant departments and agencies has also been assessed for the solid waste management component. Consultations were carried out at the local level to gauge perceptions of the citizens regarding solid waste system.

259. The solid waste management strategy for Sialkot proposes the following:

Provide reliable, sustainable services to every waste generator in the Sialkot

city by introducing house-to-house municipal waste collection services 100% wastes will be collected and dispose off in an environmental safe and

socially responsible manner by 2025 In conjunction with other implementing stakeholders, make progress in

initiating and improving the city’s industrial and medical SWM systems A recycling efficiency of 30% will be achieved by 2025 Enabling environment will be created to support private sector involvement A single SWM facility (including a sanitary landfill facility), which will serve the

needs of the city until 2030 and beyond.

260. The strategy is guided by the following principles: (i) waste is a resource, (ii) individuals must accept responsibility for and cost of their own waste, (iii) resource recovery and recycling is a priority, (iv) source (household) segregation must be maximized, (v) the informal sector plays a critical role in recycling, (vi) public participation is essential, (vii) residual waste must be properly handled, treated and disposed, (viii) the system must be run on incentivized, performance based principles, and (ix) all stakeholders have different responsibilities and each should be effectively integrated.




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Table 14: Details and Costing of Wastewater Sub Projects PCIIP - Tranche 1 ---- Detail of Project Components/

Sub-Components Phasing Unit Cost Total Base

Cost ('000 $) Unit 2011 2012 2013 2014 2015 2016 Total (US$) Waste Water Management Investment Projects/ Construction Contracts Rehabilitation of Model Town WW Pumping Station 1. Rehabilitation of Model Town WW Pumping Station -

Civil Works /j 25 0 0 0 0

25 2. Rehabilitation of Model Town WW Pumping Station -

Pump /j 30 0 0 0 0 30 3. Rehabilitation of Model Town WW Pumping Station -

Electric Works/ Generator etc /j 120 0 0 0 0 120 Total 175 0 0 0 0 0 175 175

Improvement of Trunk Sewers - Khwaja Safdar Road 1. Improvement of Trunk Sewers - Khwaja Safdar Road

- Civil Works /h 0 300 300 0 0 600 2. Improvement of Trunk Sewers - Khwaja Safdar Road

- Pump /h 0 60 60 0 0 120 Total 0 360 360 0 0 0 720 720

Rehabilitation of Main WW Pumping Station 1. Rehabilitation of Main WW Pumping Station - Civil

Works /i 18 0 0 0 0 18 2. Rehabilitation of Main Pumping Station - Pump /i 200 0 0 0 0 200 3. Rehabilitation of Main Pumping Station - Electric

Works/ Generator etc /i 75 0 0 0 0 75 Total 293 0 0 0 0 0 293 293

Cost of new sewers in Fatehgarh, Paris and Pasroor Road areas 000 $ 0 2878.5 2878.5 2878.5 959.5 0 9595 9595 Small scale emergency repair works of WWM system 1 Small scale civil works for emergency repairs of WWM

system 200 200 0 0 0 400 2 Equipment for emergency repairs of WWM system 50 50 0 0 0 100

Total 250 250 0 0 0 0 500 500 Sewer Cleaning Machine 000 $ 350 0 0 0 0 0 350 350 Total Waste Water Management 11633 Note: the cost of Management operator contract for SWSC is not included in above figures




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a. First Tranche

261. The SWM system will be established in two distinct phases. The first phase (Tranche 1) will focus on establishing three key system components:

A city-wide municipal waste collection and transfer system Recycling System Support and Public Awareness Program The detailed siting, permitting, design and contract procurement for

development of a single SWM facility (including a sanitary landfill facility), which will serve the needs of the city until 2030 and beyond.

262. Description of works to be carried out for the above projects is the following. 263. Please see the Solid Waste Management Strategy and Action Plan-Sialkot for further details.

1. A city-wide municipal waste collection and transfer system 264. This will involve the following: i Reliable, sustainable house-to-house municipal waste collection

265. Household, commercial and institutional waste generators to be provided with specially designed waste collection containers under Tranche 1. Constructed from resilient, lightweight high density polyethylene or similar material, the containers will have compartments to allow separate storage of recycled materials from general waste. Containers supplied to commercial and institutional establishments will be larger than household containers due to the additional volume of waste generated by the former.

ii Waste Collection and Transfer System

266. A new municipal waste collection and transfer system is to be introduced in Sialkot in Tranche 1, providing door-to-door collection services for all household and commercial waste generators in Sialkot. It will completely replace the existing sporadic systems operated currently by the TMA’s SWM Department, private individuals and private waste collectors. Due to access and other physical constraints, two different collection systems are proposed:

System 1 - Direct Vehicle Collection System

267. This system consists of the direct collection of municipal waste from the generator source by waste truck, the waste then being transferred directly to the waste disposal facility. This system is common in developed countries, where a waste truck follows a specific routing and time window to collect waste from households and commercial and institutional establishments in a certain collection zone. Due to vehicle access constraints, it is estimated that initially, only 30 percent of waste generators in Sialkot can be served by this collection method.




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System 2 - Manual Community Collection System

268. This system consists of the manual door-to-door collection of wastes from households, commercial and institutional establishments for transfer by hand cart to designated collection containers, strategically located within a given community14.

269. Each container will be placed at a designated location for a 24-hour period, after which time it will be collected by a container truck for transfer to the waste disposal facility, and replaced each day with an empty container. It is estimated that 70 percent of waste generators in Sialkot will be served by this collection method, and both 5 m³ and 10 m³ volume collection containers will be utilized depending on vehicle access.

2. Recycling System Support and Public Awareness Program

270. This component includes a program of activities to support the fledgling recycling industry in Sialkot in order to promote public awareness and household recycling, and accelerate recycling efficiencies. The program is envisioned to include (i) review and inventory of existing Sialkot recycling practices, (ii) national and regional evaluation of recycling initiatives being implemented in other cities for potential replication in Sialkot, (iii) formulation and implementation of a recycling strategy for Sialkot, (iv) mobilization of and support to recycling communities in Sialkot, and (v) piloting waste segregation and recycling innovations. It will also include a targeted public awareness program in order to, (i) raise awareness of environmental and SWM issues, (ii) provide public education and information campaigns on waste segregation and recycling, and (iii) solicit public support to eliminate the illicit dumping of wastes.

3. Solid Waste Management Facility (Siting, Design and Procurement)

271. Landfill siting, permitting, detailed design, and construction procurement for the facility will be completed during Tranche 1. 70- hectare land requirement is envisioned and will contain the following components:

a. Site office. b. Research and development center c. Parking and maintenance facility for all waste collection vehicles d. Designated area for pilot recycling initiatives e. Sanitary landfill, complete with engineered environmental control systems,

including leachate and landfill gas collection and treatment systems f. Earth material excavation areas to provide materials for landfill construction

and to be used an after-use buffer zone

272. The concept design for the landfill is generally based on the California Code of Regulations standards for a Class III sanitary landfill, which also accords with US EPA codes of regulation. 273. This standard is appropriate for the Sialkot facility, and is similar to other standards utilized globally. Basically this is all about liner design, for which a single composite liner is specified for the Sialkot facility.

14 There are several community container systems being used locally; one known as the ‘arm-roll system’

where a truck pulls a wheeled container onto the flat bed of the truck, and one known as the ‘skip system’, where the truck has a specially designed hoist to lift the container onto the flat bed of the truck.




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b. Second Tranche Sub Projects

274. In the tranche 2 the following work will be completed: 1. Construction and commissioning of the SWM facility 2. Acceleration of waste segregation and recycling initiatives, and 3. Assisting industrial groups to develop and implement an IWM strategy and

action plan15; and the Sialkot TMA to further evaluate Sialkot’s MWM sector to develop an MWM strategy and action plan.

3.4.2 Costs of the Works

275. The costs of works for the solid waste management related sub projects are presented in Table 15:

3.4.3 Willingness to Pay

276. The following WTP figures are from the WTP survey undertaken in Sialkot as part of the PPTA.

a. Households Households with SWM System in Community 277. The computed mean WTP for monthly bills for improved garbage collection services is Rs.171.8. Lower limit is Rs.119.15 while upper limit is Rs.235. Households without SWM System in Community 278. The computed mean WTP for monthly bills for a garbage collection to be introduced in communities where there are presently no SWM systems is Rs.129.86. Lower limit is Rs.85.33 while upper limit is Rs.210. b. Commercial Enterprises

Improved Garbage Collection System with SWM system in locality 279. The mean WTP for improved garbage collection system is Rs.188.

3.5 Urban Transport Strategy and Action Plan – Sialkot

280. The strategy for urban transport and action plan has been developed which is based upon a detailed investigation of the urban transport services and investigation in Sialkot. 281. The strategy includes a detailed investigation of the regulations governing the transport sector. Existing infrastructure of transport in Sialkot has been examined. A number of surveys were also undertaken for assessing traffic counts at the main points of the city. Consultations have been undertaken with the government and with civil society on the kind of systems required for urban transport in Sialkot.

15 The Chamber of Commerce has expressed interest to evaluate disposal options for the industrial wastes

generated from their 5,400 member organizations. This will include surveys and analysis of all of Sialkot’s industrial waste and development of an IWM strategy and action plan for future implementation by the private sector.




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Table 15: Details and Costing of Solid Waste Management Sub Projects PCIIP - Tranche 1 ---- Detail of Project


Cost ('000 $) Unit 2011 2012 2013 2014 2015 2016 Total (US$) Solid Waste Management Investment Projects SWM Collection and Transportation System Civil Works - construction Contracts 000 $ 0 75 75 100 0

250 250

Equipment for SWM collection and transportation 1. Arm roll truck and super structure 0 420 420 560 0 0 1400 5. Communications/ tracking system for

garbage vehicles 0 15 15 20 0 0 50 7. Arm Roll Containers - 139.995 139.995 181.17 - 0 461.16 8. Household Collection Containers 0 234 234 315 0 0 783 9. Commercial/ Institutional Containers 0 36 36 48 0 0 120 10. Community Pushcarts 0 66 66 96 0 0 228 13. Waste Collection Trucks 0 120 120 180 0 0 420

Total 1030.995 1030.995 1400.17 0 0 3462.16 3462.2

Total Solid Waste Management 3712.2 Note: the cost of Management operator contract for SWSC is not included in above figures




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282. The strategy is to make improvements in the urban transport services through upgrading the access to mobility of the urban poor that shall contribute towards city economic growth. The main features of the strategy are: Road network of the city to be made efficient through effective traffic

management and controls and utilize the available road infrastructure Comprehensive coverage of city public transport services Efficient intercity passenger transfer facility to cater for passengers comfort

and organized bus movements Organised institutions well capacitated to deliver urban transport services Improve the passenger’s mobility Affordable

City Bus Services for urban poor Encourage the use of private sector expertise and capital to assist in the

development of public sector assets and services as priority Develop institutional capacity of transport organizations to make them

professionally sound, adequately staffed and able to perform and deliver


a. First Tranche

283. Following are the transport related investments proposed for Tranche-1:

1. Traffic Management Improvements

Junction improvements including signaling equipment (12

Junctions) Minor road improvements Road signage and markings( All primary roads) Pedestrian and traffic management in CBD Prepare performance based works procurement contracts for

traffic management schemes and DBOT contract for bus station

2. Developing City Public Transport Services 3. Organization Development

284. Description of works to be carried out for the above projects is the following and Annex A3 presents the map of the area where the junctions to be improved. 285. Please see the Transport Strategy and Action Plan-Sialkot for further details.

1. Traffic Management Improvements

Junction improvements including signaling equipment (12 Junctions) Minor road improvements Road signage and markings( All primary roads) Pedestrian and traffic management in CBD Prepare performance based works procurement contracts for traffic

management schemes and DBOT contract for bus station




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286. Execution of the road related project components is aimed at improving the traffic conditions and circulation, passenger mobility and access to dominant land uses through improving the efficiency of 12 major road junctions, key sections of primary road network through implementation of traffic management schemes with emphasis on improving pedestrian facilities, road drainage and space allocation for road side parking and relevant activities. 287. Road junction improvements shall cover minor changes in layouts, repositioning and improvements of junction components and signal equipment and operational plans. Traffic management improvements on key sections of primary road network that handle significant city traffic volumes shall include improvements of pedestrian facilities, parking control, facilities for bus stoppages, road signs and markings.

2. Developing City Public Transport Services

288. Though this is not part of the financial package in the proposed first tranche of the program, it is suggested that formal public transport operations and in particular bus services in the city are managed and its suburbs including settlements within a radius of 15 to 20 km. Public transport in many shapes is already in operation on these routes. It requires formalizing, properly regulating and making more organized. The objective of initiating this component is to bring the informal operations under the umbrella of regulatory regime, provide support for making it more bus intensive and financing though subsequent program tranche. Total city coverage of bus services by the year 2018, could only ensure access to mobility of the urban poor.

3. Organization Development

289. Establishment of an agency for transport as part of Urban Management Authority Sialkot is under consideration by GoPb. Transport Agency is suggested to cover the tasks related to long and short term transport demand analysis, design, development and operational management of all transport infrastructures. Public transport services are also expected to be managed by this organization. Proposed organization shall be possessing set up containing core expertise to coordinate and promote PSP activities.

290. There will be need to assist the Government of Punjab for establishing these type of agencies, framing of organization structure, job description of individual positions, business processes /operating procedures and task management and monitoring and evaluation processes. A comprehensive training program together with intermittent and continuous professional support is suggested for a reasonable start of these organizations

b. Tranche 2 Sub-Projects

291. Following investments have been suggested for Tranche 2:

Comprehensive public transport improvements with city wide bus service

coverage Procure city bus service contract through cost based competitive bidding

process. Improvements of road junctions on all primary and secondary roads Application of road signage and markings on all city primary and secondary

roads




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Road side parking control on major roads Trained and professionally staffed agencies able to deliver transport

infrastructure and manage transport services in Sialkot. 3.5.2 Costs of the Works as per the Agreed Financial Model

292. The costs of works for the Sialkot Urban Transport and Traffic Management are presented in Table 16.

3.6 Tranche 1: Sub-projects Preparation: Feasibility Studies and Preliminary Designs

293. The sector strategies and action plan documents of the water supply, wastewater management, solid waste management and urban transport and traffic management cover all the terms of reference mentioned in this section. 294. To undertake the situation analysis of the existing situation and to inform the process of identifying sectoral sub projects, a number of surveys were undertaken for all the above sectors. The following is the list of few main surveys: Tubewell inventory survey Waste characterization survey Traffic count/analysis survey and Energy audit Water quality assessment survey Wiliness to pay survey Other field investigations and analysis of the existing infrastructure and

facilities 295. These surveys along with field investigations helped in identifying the needs for the rehabilitation and upgradation of the existing infrastructure of all the relevant sectors. The identified sub projects have been assessed with respect to technical, financial and economic viability. The projects which have been selected and included for implementation in the first tranche are those which fulfilled certain technical and other parameters in the local conditions of Sialkot. 296. As per the ADB guidelines on the project costing, capital and operational costs of the sub projects have been calculated. A financial model has been developed which calculates the costing details of the sub projects. Economic and financial analysis of all sub projects has been undertaken. 297. Based on all these details, preliminary engineering designs of the proposed sub projects have been developed.

3.7 Implementation Schedule and Arrangement

298. For implementation of the entire MFF, an indicative implementation schedule has been developed and is attached as Annex A9. This version of the implementation schedule is still being revised to take into account the latest changes being made in the loan agreement and its effectiveness. 299. A procurement plan has been developed for various parts of the Tranche 1 projects that present procurement packages for tranche 1 projects (Table 17). The procurement plan also presents the selection methods based upon the costing of various packages.




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Table 16: Details and Costing of Urban Transport Sub Projects PCIIP - Tranche 1 ---- Detail of Project


Cost ('000 $) Unit 2011 2012 2013 2014 2015 2016 Total (US$) Urban Traffic Management Improvements Investment Projects Improvement of 6 signalized crossings

1. Improvement of signalized crossings /a 0 180 180 240 0

600 2. Improvement of signalized crossings /a 0 90 90 120 0

300

Total 0 270 270 360 0 0 900 900 Improvement of 6 non-signalized crossings 000 $ 0 180 180 240 0 0 600 600 Road Signage/ Markings 000 $ 0 150 150 200 0 0 500 500 Minor Road Side Works 000 $ 0 300 300 400 0 0 1000 1000 Bus Terminal Improvement 000 $ 0 0 0 0 0 0 0 0 Total Urban Transport Management 3000




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Table 17: Indicative List of Packages Required Under the Project – Tranche 1

General Description Contract

Base Value ($ mn)

No. of Contracts

Proc/Rec Method (Type of

Proposal) Domestic Pref App Ad Date Comments Agency

Part A: Urban Planning and Municipal Financial Management Works None Goods Computers, software, office equipment, FMIS, furniture for UU/ TMAs 0.96 Various NCB/ Shopping Q4 2010 UU

Consulting Services Urban Planning and Municipal Financial Management Support 1.51 1 QCBS (90:10) Q3 2010 UU Total (Part A) 2.47 Part B: Urban Water Supply, Wastewater Management and Solid Waste Management Works Sialkot City WS tube wells rehabilitation 0.65 1 NCB Q4 2010 Priority

Procurement (Package 1)

SWSC Model Town WWM pumping station Rehabilitation

Replacement/deepening of 15 WS tube wells in Sialkot 0.75 1 NCB Q1 2011 Priority Procurement (Package 2)

SWSC 24/7 Operationalizing of WS work, and bulk metering at PHED scheme in Gohadpur road area

1.15

Sialkot City WW main pumping station rehabilitation Environmental Monitoring and Mitigation for WW & WS Subdivision of existing central WS Zone 0.06 1 ICB Q4 2011 SWSC Improvement of 3 WS DNI zones for 24/7 supply WS Additional Elevated Reservoir capacity in existing supply area New WS services for 24/7 supply of water in 3 DNI Zones areas along Roras Road, Amenabad road & Wazirabad Road and bulk metering, etc. in Sialkot City

Environmental monitoring and mitigation for WS Construction work for SWM 0.25 1 NCB Q3 2011 SWSC Environmental Monitoring and Mitigation for SWM Laying of new branch laterals sewers areas along Fatehgarh / Pasroor Road, Paris Road for WWM

9.60 1 ICB Q4 2011 SWSC

Laying of new trunk sewers along Khawaja Safdar Road’s Improvements for WWM

Environmental Monitoring and Mitigation for WWM Goods Computers, office equipment 1.53 Various NCB/ Shopping Q4 2010 SWSC Office furniture and fixtures, vehicles and generators for SWSC and 10 customer care centers

SWM equipment including 1 sweeping machine, 4 hoist trucks with super structure, 20 waste containers

3.46 Various ICB Q4 2010 Priority Procurement (Package 1) -

SWSC

WWM equipment including sewer cleaning machine with jetting and suction




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General Description Contract

Base Value ($ mn)

No. of Contracts

Proc/Rec Method (Type of

Proposal) Domestic Pref App Ad Date Comments Agency

functions Miscellaneous equipment for SWSC SWM equipment and vehicles for NSUSC 3.46 1 NCB Q3 2011 SWSC Consulting Services Energy audits for pre-energy utilization of tube wells and waste water pumping stations and post comprehensive audits for enhanced energy efficiency

0.13 1 CQS Q4 2010 Supports priority package design

SWSC

SWSC Management contract for operations and design, construction supervision, subsequent tranche preparation

9.36 1 QCBS (90:10) Q4 2010 SWSC

Total (Part B) 30.394 Part C. Urban Transport and Traffic Management Works Signalized and non-signalized crossings, road signage, markings, pedestrian ways, parking, and roadside works

3.00 1 NCB Q1 2011 TMA (with Urban Unit support)

UU

Goods None Consulting Services None Total (Part C) 3.00 Part E. Program Management Support Works None Goods Computers, office equipment, office furniture and fixtures, and vehicles for UU 0.34 Various NCB/ Shopping Q4 2010 With support from

PPTA UU

Consulting Services Program Management Support for detailed design, construction supervision, implementation capacity building & tranche preparation for UU

3.61 1 QCBS (90:10) Q3 2010 UU

Studies and surveys for WS- WTP, traffic, energy audits other city, topographical, and geotechnical, etc.

Provisional funds for survey

Program Management Staff Support (UU/TMA) 2.22 1 ICS Q3 2010 UU Independent Verifier (Financial and Technical) 0.50 1 QCBS (90:10) Q3 2010 UU Total (Part E) 6.67 Ad = advertisement, FMIS = financial management information system, ICB = international competitive bidding, ICS = individual consultant selection, mn = million, NCB = national competitive bidding, No. = number, PPTA = project preparatory technical assistance, Pref = preference, Proc = procurement, Q = quarter, QCBS = quality- and –cost based selection, SWSC = Sialkot Water and Sanitation Company, TMA = Tehsil Municipal Administration, UU = Urban Unit .




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300. The advance contracting will be undertaken for the recruitment of all loan consultants, including the Program Management Support Consultants, Urban Planning and Municipal Financial Management Support Consultants and Individual Consultants to be engaged by the Urban Unit and the Management Contractor to be engaged by the SWSC, and tender document preparation, tendering and bid evaluation for various office equipment for the Urban Unit and essential operational equipment for SWSC. 301. A small targeted package of priority projects has been developed so that these projects are implemented soon after the loan effectiveness. Following are the projects which are part of the priority package: Provision of sewer cleaning machines (with jetting and suction function) Rehabilitation of model town pumping station including recommissioning of

disused dry well of new pumps Rehabilitation of existing tubewells Miscellaneous equipment for SWSC (water and wastewater) Miscellaneous solid waste management equipment 302. Tender documents for this priority package have been developed and submitted to the ADB. 303. Please see the tender documents for further details.

3.8 Operational Support Funding Mechanism Component

304. An operational support funding mechanism for the Sialkot Water and Sanitation Company has been designed in a way that government and service providers i.e. SWSC can better measure, control and reduce the cash shortfalls. The operation support funding component has been calculated based upon the financial model which assesses the future revenues and fee for SWSC for its various services. A review of the tariff structures and collection procedures being implemented in TMAs has been undertaken for this purpose. A review of the existing reports (i.e. water supply WTP survey conducted in Sialkot and 4 other cities in Punjab in 200616) was also undertaken for assuming tariff assumptions. 305. The model estimates that SWSC will require funding of about Pak rupees 1 billion ($12 million) under Part D: Operations and Transition Support during its initial operating period from FY2012 to FY2016. Continuing grants from the Government of Punjab for deputed TMA staff costs are assumed in these projections. It is estimated that overall operating performance can be substantially improved over these projections if SWSC operate efficiently and control staff numbers and the skills mix, particularly in SWM.

The disbursement mechanism and modality is explained in Figure 7. It also explains that how different contractual arrangements will work in the presence of an independent verifier.

16 Consumer Preferences for Improved Water Supply and Sewerage Services in Urban Punjab, Pakistan: Final Report. World Bank, 2007. The 2006 WTP survey covered households and commercial establishments. The survey followed a contingent valuation methodology and covered five cities comprising Faisalabad, Sialkot, Rawalpindi, Multan and Bahawalpur, and included a socio-economic survey as well as information on the costs of provision of private water supply facilities. A follow-up survey is underway with ADB funding, following the guidance set out in ADB. 2007. ERD Technical Note No. 23, Good Practices for Estimating Willingness-to-Pay Values in the Water and Sanitation Sector. Manila.




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Figure 7: Financing Plan and Disbursement Modalities

Part D: Operations & Transition Support Funding

Verifies monthly invoice & receipts;

prepares certification for attachment to

WA/SOE to replenish Imprest Account 2


The Urban Unit (Planning & Development)

Executing Agency

Sialkot Water & Sanitation Company

Implementing Agency

Imprest Account # 2

Receipts / Monthly Invoice

Gra

nt A

gree

men

t

Asian Development

Bank

WA/SOE with certification of Independent Verifier

Pro

ject

Agr

eem

ent

Covers Eligible Cash Shortfalls

3 months advance and monthly replenishment Independent Verifier

Con

tract

Entity

Legend

Bank Account

Contract/Agreement

Documents Funds Flow

Adv

ance

/Rep

leni

shm

ent

Related

SOE: Statement of Expenditure WA: Withdrawal Application

Loan and Project Agreements

Ver

ifica

tion/

Cer

tific

atio

n

Cer

tific

atio

n

Cop

y of

WA

Real-time withdrawal & disbursement information available on ADB Loan Financial Information Service (LFIS) via website

Entity




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3.9 Institutional Effectiveness Component

306. This component has been discussed in detail in 2.5 but in brief, an institutional component has been designed for the investment program. All modalities for the implementation of all five parts of the program, in the first tranche and future tranches were finalised and details have been presented in the above mentioned section. Capacity building in financial management and urban planning is a core element of the whole program. The consultants to be hired by the urban unit under Part E and other individual consultants will work on preparing projects for the future tranches and will also be responsible for undertaking due diligence analysis of these sub projects. These consultants will be responsible for the implementation of the future tranches of the program.

3.10 Due Diligence Analysis and Documentation 3.10.1 Surveys

307. After the mutual agreement of the ADB and PPTA, the socio economic survey and willingness to pay surveys were combined into one Willingness to Pay (WTP) survey. The terms of reference for the survey were prepared and the proposals were demanded from interested organisations. The received proposals were evaluated technically and financially and the survey work was sublet to Socio-economic and Business Consultants (SEBCON) (Pvt) Limited, based in Islamabad.

308. Briefing was arranged for SEBCON in Lahore where they were guided on the methodology of the Survey and were asked to refer to the ADB technical note No 23. The sample framework of the survey was agreed with the ADB.

309. Two types of questionnaire were developed for the survey i.e. questionnaire for household survey and questionnaire for the survey of enterprises. The household questionnaire was divided into the following five parts: Part 1: General Household Condition: Demographic information, education, ownership and location of the house, occupation and economic status, connection/services, incidence of diseases. Part 2: Current situation of water supply, sewerage, sanitation and solid waste management services and costs of these services. Part 3: (a) Detailed description of the improved water supply services to be provided in future through the proposed program of investments and improvements; and (b) Contingent Valuation Questions to identify household’s willingness to pay for described water supply services, and debriefing questions. Part 4: (a) Detailed description of the improved solid waste services to be provided in future through the proposed program of investments and improvements; and (b) Contingent Valuation Questions to identify household’s willingness to pay for described solid waste management services. Part 5: Household income, expenditure and assets

310. The enterprise questionnaire was divided into the following four parts:




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Part 1: General information of the enterprise type of business, number of employees, location and type of enterprise building, maintenance, connection/services. Part 2: Current situation of water supply, sewerage, sanitation and solid waste management services and costs of these services. Part 3: (a) Detailed description of the improved water supply services to be provided in future through the proposed program of investments and improvements; and (b) Contingent Valuation Questions to identify enterprise’s willingness to pay for described water supply services, and debriefing questions. Part 4: (a) Detailed description of the improved solid waste services to be provided in future through the proposed program of investments and improvements; and (b) Contingent Valuation Questions to identify enterprise’s willingness to pay for described solid waste management services.

311. Inputs to the finalisation of the survey questionnaire were also provided by GHK.

312. SEBCON provided training to their survey enumerators and the survey was pre-tested in the field. Following training and pre-testing, the data collection was started and was completed over a period of one month.

313. SEBCON submitted the draft report of the survey. The report of the Survey is being finalised now after comments of the ADB with inputs from GHK Manila office as well. 314. Please see the survey report for further details.

3.10.2 Financial Management, Financial Analysis, and Financing Plan

315. A detailed financial management plan and financial analysis has been developed and undertaken for PCIIP. The financial analysis has been prepared in line with ADB’s Guidelines on Financial Management and Analysis of Projects and Financial Due Diligence Methodology Note (2009).

316. The current financial management systems being implemented at the local TMA level like the accounting systems are weak. Financial information on costs of delivering water supply, wastewater management and solid waste management services provided by TMA is limited. The electricity expenses are not properly recorded or segregated by service. In Sialkot, though tariff revenue from water supply covered 48% of the operating costs in FY2008, these revenues cover less than 20% of the operating costs for the three municipal services. The average annual cash shortfall for FY2005 to FY2008 was over Pak Rupees 90 million. TMAs’ current provision of urban services is not financially viable. 317. A financial model has been developed for SWSC and PCIIP which is accrual accounting-based financial model, in local currency and nominal prices. The model calculates SWSC’s projected income, cash flows, and balance sheets. It is also used to estimate FIRR when converted to real prices. The financial model assumes SWSC is responsible for operation, repair, and maintenance costs of the municipal assets, and it includes depreciation on municipal assets.17 Capital investment and operating

17 Under the service and asset management agreements to be signed between SWSC and each TMA, the TMA retains ownership of existing and new assets, while SWSC will manage them.




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costs are adjusted for inflation. The detailed assumptions used for modeling SWSC operations in each subsector and the financial model are available on request.

318. The model assumes inflation of 12% in FY2010, gradually decreasing to 6%.18 Household water consumption is assumed at 136 liters per capita per day, which is consistent with average water consumption in the region. Current annual tariffs of PRs900 (PRs75 per month) are retained for those customers not residing in a distribution network improvement (DNI) zones. Those customers with significantly improved service in the DNI zones are assumed to pay much higher tariff, which eventually rises above PRs300 per month. The assumed tariffs for DNI zones remain lower than estimated willingness-to-pay (WTP) values in Sialkot, and they are less than actual costs of water from alternative sources. Collection rates are based on actual performance but are assumed to improve over time. Similarly, nonrevenue water (NRW) is assumed initially at 45% and to gradually decrease to 23% by FY2021. The reduction in NRW is essential to the efficient operation and hence the competitiveness of the SWSC. Electricity cost is calculated according to water delivered, pumping pressure, and a unit cost of PRs9 per kilowatt-hour. The model assumes wastewater generation at 70% of water consumed, and it introduces a wastewater tariff of PRs50 per month starting from FY2014. The model assumes introduction of an SWM tariff at PRs150 per month from FY2014 that is timed for full operation of a collection and disposal system for individual households.

a. Financial Projections for SWSC

319. SWSC is expected to make a loss during the whole projection period from FY2012 to FY2021. However SWSC performance gradually improves as tariff revenue increases with improved services (such as by the introduction of DNI zones under tranche 1).19 SWSC is not expected to cover its operating cash outflows from its own tariff revenues and government grants for staff salaries, by FY2021 (Figure 8). This gap will be covered by the operational and transitional support funding which will eventually be replaced by part of increased revenues from property taxes, as planned under Municipal Finance reforms. Water supply is the only profitable service of SWSC. Cash flow coverage for water supply services is reached in FY2015. SWM and WWM services are not able to cover operating cash flows from revenues and grants. SWSC will require continuing subsidies to cover the cost of WWM and SWM services.

Figure 8: SWSC Operating Cashflows–Consolidated SWSC

-

500

1,000

1,500

2,000

2,500

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

Cash Inflows -

SWSC

Total Operating

Costs - SWSC

18 Based on ADB ERD estimates. 19 SWSC revenues include the annual government grant for deputed TMA staff salaries and benefits, which

ranges from PRs118 million to PRs256 million ($1.4 million to $3 million) over the 10-year projection period.




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320. The financial model has also calculated the operation and transition support component at about PRs1 billion ($12 million).

b. Financial Internal Rate of Return (FIRR)

321. Basic assumptions used in computing the FIRR are as follows: (i) project investment costs are derived from estimated costs less price contingencies and interest during construction; (ii) capital expenditures are recorded at the time they are incurred; (iii) interest and depreciation are excluded; (iv) real operating cash flows are used; and (v) residual value of asset additions in FY2021 are regarded as a benefit. The calculated FIRR for SWSC is 5.3%. This is higher than the weighted average cost of capital (WACC) of 0.9%. The calculated FIRR values for various scenarios are as follow: (i) 2.9% with a 10% decrease in revenue, (ii) -0.8% with a 10% increase in costs, and (iii) -3.0% with a combined 10% decrease in revenue and 10% increase in costs. Overall, the SWSC is projected to be financially viable at proposed tariff levels however it is very sensitive to variations capital and operating costs. This shows that the company management will need to control costs to make the company viable. It also emphasizes the importance of raising tariffs appropriately and efficient collection.

Table 18: Weighted Average Cost of Capital Calculations

Item OCR ADF Government Amount ($ million) - 90 10 Weighting - 90% 10% Nominal Cost 4.2 1.4 15.0 Inflation 0.7 0.7 11.6 Real Cost 3.5 0.7 3.4 Weighted Component of WACC - 0.6 0.3 WACC 0.9

ADF = Asian Development Fund, OCR = ordinary capital resources, WACC = weighted average cost of capital. a London interbank offered rate US dollar 10-year rate. b Average interest rate based on loan conditions for ADF. c Karachi interbank offered rate 3-year bond rate. d Average international cost escalation forecasts by ADB for 2009–2013. e Average domestic cost escalation forecasts by ADB for 2009–2013.

Table 19: Financial Internal Rate of Return Calculations

Item Year Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21

Revenues and Subsidies

551 737 948 1,059 1,212 1,471 1,771 2,052 2,145 6,809

Costs 1,410 1,665 1,621 829 1,384 1,929 2,313 2,504 1,757 1,864 Net Revenues -860 -928 -673 230 -172 -457 -542 -452 389 4,945 FIRR 5.3%

FIRR = financial internal rate of return.

c. Tariff Assumptions and Affordability

Tariff Assumptions 322. Tariff assumptions are based on data from recent water supply WTP survey conducted in Sialkot and 4 other cities in Punjab in 2006.20 Based on the data

20Consumer Preferences for Improved Water Supply and Sewerage Services in Urban Punjab, Pakistan: Final Report. World

Bank, 2007. The 2006 WTP survey covered households and commercial establishments. The survey followed a contingent valuation methodology and covered five cities comprising Faisalabad, Sialkot, Rawalpindi, Multan and Bahawalpur, and included a socio-economic survey as well as information on the costs of provision of private water supply facilities. A follow-up survey is underway with ADB funding, following the guidance set out in ADB. 2007. ERD Technical Note No. 23, Good Practices for Estimating Willingness-to-Pay Values in the Water and Sanitation Sector. Manila.




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available it is estimated that the willingness to pay for water services in PRs. 425 per month.

323. The model assumes an average21 tariff of PRs. 300 per month for water supply to households throughout the city after progressively rehabilitating the system (Table 20). Until a connection is rehabilitated, the existing tariff will continue and will be increased by inflation. Tariff assumptions for wastewater and solid waste management services are based on socioeconomic surveys and are assumed to amount to 17% of the water tariff for wastewater and 33% of the water tariff for SWM.22

Table 20: Tariffs for Improved Services

TMA Water Supply Tariff

(PRs/month) Wastewater Tariff

(PRs/month) SWM Tariff (PRs/month)

Domestic Commercial Domestic Commercial Domestic Commercial Sialkot 300 500 50 100 100 200

SWM = solid waste management, TMA = Tehsil municipal administration; DNI = distribution network improvement.

324. In addition to the water tariff, a connection fee of PRs 2,500 per residential and PRs 5,000 per commercial connection would also be charged to the new customers. In the case of water supply and sanitation, tariffs would be developed to make service affordable to low income consumers.

Affordability Analysis

325. Applying the proposed average water, sewerage, and solid waste management tariffs, the percentage of average monthly expenditure on these services was assessed with reference to household incomes. Based on the available information, the median household income in Sialkot is estimated at PRs 24,000 per month. The urban poor are assumed to have a household income up to PRs 7,500 per month, while the income of the low income groups would be up to PRs 15,000 per month.

Table 21: Affordability of the Water Supply Tariff

Household Income (PRs p.m.)

Average HH Income (PRs

p.m.)

% of HH

Water cons’n lpcpd

Monthly charge PRs

Affordability (% of income)

0-7,500 5,000 22 60 300 6 7,500-15,000 11,250 28 80-100 300 2.7

15,000-30,000 22,500 26 125 300 1.3 30,000-75,000 52,500 20 150 300 0.6

75,000 and more 150,000 4 200 300 0.02 HH = household, lcpd = liters per capita per day, p.m. = month.

326. Water and sanitation charges would therefore amount to 0.02-6% of income, depending upon income level, while water, sanitation and solid waste management charges would amount to 0.03-10% of income. This shows that most of the population will not have a problem in affording these services. However, the expenditure for poor households is quite high and there is a need to develop tariffs and service solutions for a significant number of poor customers.

21 Exact sector tariff structure and schedules will be developed under a separate PATA. They will be designed to

ensure that services are affordable for all classes of customers. 22ADB. 2004. Technical Assistance to the Islamic Republic of Pakistan for Capacity Building for Environmental

Management in Sindh. Manila (TA 4432-PAK, approved on 12 November). No tariffs are currently charged for WWM or SWM by the municipality.




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327. It is common to set water tariffs at 3% of income and combined tariffs for the three services at 5% of income. In this case the poorest households would spend 6% of income on water supply and 10% on combined services. The World Bank study found that poor families in Punjab spend around 15.2%23 of their income on water supply alone. Therefore, good quality services provided by SWSC would be actually more affordable for the poor in Sialkot than in remainder of Punjab. However, these expenditures are still high for the poor households and Program includes several measures to make these services more affordable, including:

(i) Establishment of a low-income consumer unit within SWSC focused on

adapting pricing schemes and service provision to the needs of the urban poor.

(ii) Development of tariff structure and schedules under a separate water supply and SWM sector PATA. The planned tariff design will ensure there is a mechanism such as life line tariff, cross subsidy or direct subsidy to make the services affordable for the poor. It will conform to Punjab Urban Water and Sanitation Policy 2007, which states the tariffs should reflect costs but the services should be subsidized in low income areas.

328. Overall these measures will make ensure that even the poor are able to afford improved services provided by SWSC.

d. Summaries of RRP and FAM

329. The summaries of the financial analysis and financial management for inclusion in the RRP and FAM have also been developed. 330. Please see the financial analysis for further details. 331. The overall fund flow and disbursement arrangement has also been designed for PCIIP in consultation with the ADB and the Government of Punjab. Figures 9 and 10 present the disbursement arrangements for Part A, B, C and E of the program:

23 Consumer Preferences for Improved Water Supply and Sewerage Services in Urban Punjab, Pakistan, World Bank 2006.




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Figure 9: Disbursement Arrangements Part A: Urban Planning and Municipal Financial Management

Part C: Urban Transport and Traffic Management Part E: Program Management Support

Asian Development

Bank

Legend


WA/SOE Certification to Pay

Agreement

Funds Flow Documents

Entity

Bank Account


Tehsil Municipal Administration

Implementing Agency (Part C)

Contractor Municipal - level

civil works

Consulting Services

The Urban Unit

D

irect

Pay

men

t


The Urban Unit

(Planning & Development) Executing Agency

Imprest Account # 1

Related

Advance/Replenishment

Invo

ices

/Bill

s

Suppliers

Invoices/Bills

Invoices/Bills

Copy of Invoices/Bills

Project Agreement




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Figure 10: Disbursement Arrangements Part B: Water Supply, Wastewater, and Solid Waste Management

Sialkot Water and Sanitation Company

Implementing Agency

WA/SOE/ Certification to Pay

Grant Agreement

Copy of SOE /WA/Certification to Pay

Imprest Account # 2

Adv

ance

/Rep

leni

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Contractors/ Consultants

Contract

Invoices/Bills

Dire

ct P

aym

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Funds Flow Agreement

Entity

Bank Account

Documents

Legend

Asian Development Bank


The Urban Unit

(Planning & Development) Executing Agency

Suppliers Miscellaneous Expenses

Project Agreement

Related

Invo

ices

/Bills

Tehsil Municipal

Administration

Independent Verifier

Copy of SOE, WA & Certification to Pay

Copy of SOE, WA & Certification to Pay

Verifies performance against management contract and SAMAs; reports quarterly to EA with copy to

SWSC and ADB


Real-time withdrawal & disbursement information available on ADB Loan Financial Information Service (LFIS) via website

Feedback and Oversight




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3.10.3 Economic Analysis 332. The benefits of grouping several municipalities into a single organization for urban service provision include economies of scale, sharing the cost of professional management and systems, and balancing the interests among participants. Similarly, multiple ownership can temper politically motivated decisions, help professionalize management, and improve transparency and corporate governance. Perceived advantages include better defined TMA roles under contractual agreements and a convenient venue for municipal joint action. As the service and asset management agreements (SAMA) are designed to accommodate individual city requirements, based on local government commitment to reforms, this allows for more performance-based allocation of resources and discourages free-rider behaviour from municipalities less willing to reform. a. Approach and Methodology

333. The economic analysis is based on Asian Development Bank (ADB) guidelines, including the Guidelines for Economic Analysis of Projects (1997); Handbook for the Analysis of Water Supply Projects – Guidelines, Handbooks and Manuals (1999); and ERD Technical Note 23: Good Practices for Estimating Reliable Willingness-to-Pay Values in the Water Supply and Sanitation Sector (2007). The economic benefits of subsector investments were evaluated for the water supply, WWM, SWM and transport subsectors. Likely benefits, costs, and the calculated economic internal rate of return (EIRR) from subsector interventions for Sialkot are described below.

b. Calculation of EIRRS and other Variables 334. The economic analysis examined subsector investments in water supply, WWM, and SWM by TMA in tranche 1. Investments were evaluated over 30-year period. Costs and benefits are forecast in 2010 prices. For each subsector investment, the EIRR was calculated for the net stream of economic benefits. The net economic benefit was calculated by subtracting the economic costs from the gross economic benefits of the subprojects. Economic net present values were calculated by discounting at 12%.

335. All costs used in the analysis were actual real economic costs. The economic operating costs are based on nominal financial costs used in the financial model deflated to 2010 prices. The real costs were converted to border parity prices using a conversion factor of 0.9. The economic capital costs are based on the financial capital costs used in the investment plan, and exclude all price contingencies, interest costs, taxes, and duties.

336. Table 22 summarizes the results of the economic analysis.

Table 22: Summary of Economic Viability

Subsector Investment

Net Present Valuea

(PRsmillion)

EIRR (%)

EIRR (%) Benefits -

20%

EIRR (%) Costs +20%

EIRR (%) Combined

Sialkot WS 608 23 17 18 12 Sialkot WWM 120 15 13 12 9 Sialkot SWM 223 22 18 16 12.58 Sialkot traffic Management

201 26 21 22 18

EIRR = economic internal rate of return, WS = water supply, WWM = wastewater management, SWM = solid waste management a Present value of net economic benefits discounted at 12%.




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337. Overall, the economic analysis indicates that all of the investments are economically viable in the base case, each having an EIRR above 12%. All of the investments are viable in the worst-case sensitivity analysis scenario, except for WWM. The WWM is sensitive due to relatively lower WTP for this service.

c. Distribution of Benefits

338. The improvements in water supply, WWM and SWM services will benefit the whole of the urban population in Sialkot. Predictable flows of quality water supply, improved wastewater management, and increased solid water collection will have positive impacts on the health of the population, quality of life, and economic prospects in Sialkot. The tariff structures proposed will provide for maximum affordability of each group of the population. Both the Investment Program and attached advisory technical assistance include components to support service improvements for low-income customers. SWSC will have a unit to design pro-poor subsidies and enable all classes of customers to afford improved services. The cost of household treatment will be reduced. This improvement will result in time savings, improved health, and lower coping costs. It is estimated that some households spend about PRs400-PRs800 monthly on alternative water supplies, including pumps, electricity, and water filtration.

339. The reforms under the investment program are expected to have a positive effect on the TMA staff transferred to the SWSC. The deputation will allow for a transition without widespread retrenchment. The staffing of SWSC can be rationalized over time through attrition. Deputed TMA staff will benefit from the incentive-based pay in SWSC. There will be benefits as well from opportunities for training and knowledge transfer.

340. Detailed analysis and summaries suitable for inclusion in the RRP main text and core/supplementary appendices were also developed. 341. Please see the economic analysis for further details.

3.10.4 Social Development

342. To inform the identification of sub projects in Tranche 1, an analysis of the household income, socio economic status and poverty levels in Sialkot was undertaken. A review paper was developed on these issues that presented existing information on household income and expenditure, the poverty line, inflation, and income growth and estimated the Sialkot 2010 household income level and distribution, and identified the existing incidence of poverty. Per capita income levels and household level income was taken from the Fichtner survey of Sialkot undertaken in 200624. These are projected forward to 2010 on the assumption that household income increases in proportion to real GDP growth per capita, adjusted for price inflation of wages and salaries. The paper also estimated the WTP for water supply services for Sialkot.

24 Fichtner Consultants, Consumer Preferences for Improved Water Supply and Sewerage Services in Urban Punjab, Pakistan: Final Report. World Bank, 2007.




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Table 23: Economic Costs and Benefits (PRs. In Million)

Year

WS WWM SWM Traffic Management

Cos

t

Ben

efits

NB

Cos

t

Ben

efits

NB

Cos

t

Ben

efit

NB

Cos

t

Ben

efits

NB

2011 156 0 -156 56 0 -56 0 0 0 0 0 0 2012 252 76 -176 244 16 -228 68 0 -68 64 0 -64 2013 370 136 -235 226 43 -183 63 0 -63 65 0 -65 2014 303 192 -111 194 71 -123 80 0 -80 80 0 -80 2015 117 248 131 63 99 37 15 71 56 6 75 69 2016 64 306 242 5 129 124 32 93 61 6 75 69 2017 64 306 242 5 125 121 32 93 61 6 75 69 2018 64 306 242 5 125 121 32 93 61 6 75 69 2019 64 306 242 5 125 121 32 93 61 6 75 69 2020 64 306 242 5 125 121 32 93 61 6 75 69 2021 64 306 242 5 125 121 32 93 61 6 75 69 2022 64 306 242 5 125 121 32 93 61 6 75 69 2023 64 306 242 5 125 121 32 93 61 6 75 69 2024 64 306 242 5 125 121 138 93 -45 6 75 69 2025 166 306 140 5 125 121 32 93 61 6 75 69 2026 64 306 242 5 125 121 32 93 61 6 75 69 2027 64 306 242 5 125 121 32 93 61 6 75 69 2028 64 306 242 5 125 121 32 93 61 6 75 69 2029 64 306 242 5 125 121 32 93 61 6 75 69 2030 64 306 242 5 125 121 32 93 61 6 75 69 2031 64 306 242 5 125 121 32 93 61 6 75 69 2032 64 306 242 5 125 121 32 93 61 6 75 69 2033 64 306 242 5 125 121 32 93 61 6 75 69 2034 64 306 242 5 125 121 138 93 -45 6 75 69 2035 166 306 140 5 125 121 32 93 61 6 75 69 2036 64 306 242 5 125 121 32 93 61 6 75 69 2037 64 306 242 5 125 121 32 93 61 6 75 69 2038 64 306 242 5 125 121 32 93 61 6 75 69 2039 64 306 242 5 125 121 32 93 61 6 75 69 2040 64 306 242 5 125 121 32 93 61 6 75 69 Total 3,013 8,303 5,290 897 3,370 2,472 1,246 2398 1,152 356 1,953 1,597 EIRR 23% 15% 21% 26% NPV 608 120 223 201 BCR = benefit-cost ration, EIRR = economic internal rate of return, NB = net benefits, NPV = net present value, SWM = solid waste management, WS = water supply, WWM = waste water management. Source: Asian Development Bank

343. To inform the interventions of the Investment program, focus group discussions were also held with male and female groups of the citizens in Sialkot. The important issues highlighted by the citizens included:

Government water supply inadequate and of poor quality High cost of boring private wells and contamination of groundwater near

industrial sites Sanitation and sewerage services are deficient; drains and gutters

blocked or overflowing Majority households lack proper municipal sanitation services Severe shortage of reliable and affordable public transport system for the

poor Lack of awareness about impact of contaminated water and dirty

surroundings Women seldom boil or filter drinking water even when they are aware of

resulting disease




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Women personally clean their open drain only when the situation has

deteriorated to a substantial level.

344. Citizens, especially women pointed out the following points as the impacts of this situation: Women as household managers most disadvantaged by inefficient and

insufficient WSS and SWM service delivery. Lack of transport leads to loss of opportunity related to work, health,

education and leisure especially for the women. Poor service delivery of WSS and SWM leads to household financial

burdens in the form of doctor and medical costs, and loss of working hours.

Issues further lead to household stress and aggression.

345. Gender differentiation need analysis was undertaken based upon the findings from the consultations, Recommendations of women were incorporated in the Gender Action Plan which contains specific gender related interventions to promote the role of women in SWSC and to improve the service delivery for women. GAP is given in Annex A10.

346. Other than GAP, both the Investment Program and technical assistance associated with the program, has special features to support service improvements for low-income customers. SWSC will have a unit to design pro-poor subsidies and enable all classes of customers to afford improved services. This will be called as “Customer Care and Quality Assurance Division (CCQAD)”.

347. An affordability analysis for water and sanitation services was also undertaken which showed that the proposed tariff structures will allow provision of maximum affordability of each group of the population to the services. 348. Due diligence of the project interventions was also undertaken which is explained in the next section. However, there are no indigenous communities in the project areas and so there will be no impacts.

349. The required text for the RRP and FAM was also developed. Summary Poverty Reduction and Social Strategy has been developed and is presented in Annex A11.

3.10.5 Environmental Safeguards Analysis and Planning for Investment Program

350. In accordance with ADB's Environment Policy and Environmental Assessment Guidelines (2003), and Operations Manual, F l , F2 and F3, an Environmental Assessment and Review Framework (EARF) has been developed which presents the procedures for the environmental assessment of the investment program. The EARF is also in compliance with the National Environment Policy of Pakistan (2005).

351. EARF explains the institutional and legal framework for the investment program and the anticipated environmental impacts of the identified projects and provides guidance on what criteria the subprojects should meet for not having adverse environmental impacts. EARF guides the consultation; information disclosure and grievance redress mechanisms for the citizens and explains the




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institutional arrangements and responsibilities for managing the environmental impacts. EARF also explains the environmental criteria for sub project selection for future tranches. 352. EARF explains that the potential adverse environmental impacts associated with the subprojects can be avoided or minimized through careful location, design and route selection. Specific environmental criteria for subproject selection are:

(i) The subprojects will not disturb any cultural heritage designated by the

Government or by international agencies such as United Nations Educational, Scientific and Cultural Organization, and will avoid any monuments of cultural or historical importance.

(ii) The subprojects will not be located within or near the core zone of any

protected areas such as national parks, nature reserves, or wildlife sanctuaries as designated by the Environmental Protection Agency (EPA).

(iii) The subprojects will have a government and ADB approved IEE (or EIA) and

EMP prior to the letting of any construction contract associated with the project. The subproject EMP must have an implementation and monitoring budget.

(iv) The subprojects will not clear any existing forest resources classified by the

government as forest or watershed or any areas and species that have a protected status. Where unavoidable, tree cutting outside forest resource areas will be minimized and compensatory planting will be conducted in a least a ration of 3:1 (three saplings planted and tended for 5 years for every one tree cut that is greater than 10 cm in diameter). The budget for compensatory planting will be included in the EMP.

353. The subprojects will only involve activities that follow GOP laws and regulations, ADB’s Safeguard Policy Statement (June 2009), the Environmental Assessment Guidelines (2003), and this EARF. 354. Annex A13 summarizes a broad base generic EMP in matrix form that will apply to all subprojects of the MFF. The EMP will need to be updated following submission of IEEs. Additional requirements may be necessary for some sub-projects. The matrix is developed on the basis of environmental assessment for the Tranche 1 subprojects but will apply across all tranches. The mitigation measures for the additional subprojects will be developed in the spirit of the principles agreed upon in this EMP. However the EMP for all subprojects will be a working document and any unanticipated consequence(s) of the project will be documented in the regular quarterly reports. 355. Environmental mitigation measures will be modified to take account of unexpected impacts and continue throughout the implementation period. EMP is a guide that must be used when preparing all EMPs included in this MFF, elements of which should be adopted as appropriate after professional review. The relevant subproject EMP requirement must be incorporated into the contract tendering documents. Construction bids must estimate the costs of compliance with the EMP. Construction contracts cannot be awarded until the IEE (or EIA) and EMP are approved by both ADB and the Environmental Protection Department. 356. Environmental monitoring will be conducted based on the provisions in the subproject EMP. Table 24 presents the summary monitoring plan for a subproject.




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Table 24: Key Tasks for an Environmental Monitoring Plan

Environmental Monitoring Tasks Implementation Responsibility Implementation

Schedule Pre-Construction Phase Receive bidding documents to ensure that IEE or EIA and EMP is included.

Part B: WSC with assistance from engineering design and construction supervision consultant, or the UU with the assistance of program management consultant under part E if WSC does not yet exist. Part A (TMA office construction) and part C: program management consultant firm under Part E, overseeing procurement on behalf of the TMA

Prior to the issue of bidding documents

Audit detailed designs of facilities and locations of components to ensure standard environmental safeguards and mitigation measures (as identified in EMP) have been included.

Part B: WSC with assistance from engineering design and construction supervision consultant, or the UU with the assistance of program management consultant under part E if WSC does not yet exist. Part A (TMA office construction) and Part C: program management consultant firm under Part E, overseeing procurement on behalf of the TMA

Prior to approval of contractor’s detailed designs.

Construction Phase Regular monitoring and reporting of contractor’s compliance with contractual environmental mitigation measures.

Part B: WSC with assistance engineering design and construction supervision consultant. Part A (TMA office construction) and part C: program management consultant firm under Part E, overseeing procurement on behalf of the TMA

Continuous throughout construction period.

Operation and Maintenance Phase Regular monitoring of key environmental indicators and mitigation measures identified in the EMP.

Part B WSC Part A & C, the TMA with support from the program management consultant firm under Part E and its safeguards unit

As outlined in the EMP

EIA = Environmental Impact Assessment, EMP = Environmental Management Plan, IEE = Initial Environmental Examination, TMA = Tehsil Municipal Administration, UU = Urban Unit, WSC = Water and Sanitation Company 357. The sub projects included in Tranche 1 have also been assessed for their environmental impacts. There are no environmental impacts of the water supply and wastewater management components and therefore, initial environmental examinations (IEEs) have not been developed for these sectors. 358. The IEEs have been developed for solid waste management and urban transport components. Extensive consultations have been undertaken while undertaking these IEEs. The IEEs analyse the environmental impacts of the sub projects in both these components and their mitigation measures. Both IEEs have environment management plans. Annex A14 and Annex A15 present the environment management plans for solid waste management component and urban transport component. Estimated costs for implementation of environment management plans have also been included in the IEEs. 359. Please see EARF and IEEs for further details.

3.10.6 Social Safeguards Analysis and Planning for Investment Program

360. To adhere to the social safeguard criteria for the investment program, a Land Acquisition and Resettlement Framework (LARF) is developed. LARF examines the




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legal and institutional framework of the land acquisition. Main features of Land Acquisition Act (LAA) 1894, The Punjab Katchi Abadi (PKAA) Act 1986, and Punjab Katchi Abadies Act 1992 (Amendment Ordinance No. XVIII of 2007) have been included in LARF. The LARF details processing mechanisms, principles, compensation entitlements, organization features, and steps for LAR implementation for the sub projects throughout the complete investment program.

361. Based upon the comparison of Pakistan’s Land Acquisition Act (LAA) and the ADB’s Safeguard Policy Statement 2009, a gap analysis of both has been developed. The key issue that arises out of this analysis is that by following the ADB assessment procedures then the requirements of the Pakistan and Punjab regulatory systems are in compliance. Conversely, if the Government of Pakistan and also the Punjab systems are followed then there are likely to be shortfalls in comparison to the ADB requirements.

362. All sub projects of Tranche 1 have been investigated with respect to the land acquisition requirements. None of the projects included in Tranche 1 require land acquisition and therefore Land Acquisition and Resettlement Plan (LARPs), Land Acquisition and Resettlement Due Diligence Report (LARDDR) and Indigenous People Development Plan (IPDP) are not required.

363. Sections of the RRP including sections on social safeguards and the social safeguards summary were developed and included in the RRP.

364. The costs of the investment program that have been calculated for the social and environmental components and safeguard compliance are presented in Table 25. 365. Please see LARF for further details.

3.11 Consultation and Communication

366. With five sector of the investment program, Sialkot Tranche 1 initiative involves a lot of stakeholders. Therefore, a complete consultative and participative procedure was adopted throughout the PPTA. Other than internal communitarian between the technical team, ADB, the Urban Unit and Planning and Development department, the initiative demanded many other consultations with other government agencies e.g. the relevant TMA and district government, the environment protection agency, and the transport department etc. This also involved consulting with the private sector (e.g. chamber of commerce, bus operators and recyclers), NGOs and other community organisations, and general citizen groups.

367. The technical team had communication with all the above stakeholders. Various groups were involved in various stages of the investment program to bring awareness, involvement and ultimately consensus on the recommended options. 368. The social development team had separate consultations through focus group discussions with citizen groups especially women.

369. The detail of the few of these consultation meetings is presented in Annex A12.

370. A communication strategy is developed for Sialkot water and Sanitation Company which provides guidance for SWSC on its internal and external communication systems and processes. Outcomes from the proposed




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communication interventions are interlinked with each other and would supplement each other and will help SWSC to become more accountable and transparent service provider. The proposed interventions will help all stakeholders to work with each other in collaborative manner i.e. citizens (service users), service provider (i.e. SWSC), private sector and civil society organisations.

Table 25: Costs Allocable to Gender, Environment, and Social Safeguards

Description Totals Including Contingencies (US$ '000) 2011 2012 2013 2014 2015 Total

Part A: Urban Planning National Community/ Social Development Expert

(Nat'l) 8.2 8.9 9.5 - - 26.6 Environmental Specialist (nat'l) 8.2 8.9 9.5 - - 26.6 Part A: WS, WWM and SWM

International Environment Safeguards Expert - 43.4 22.0 22.3 - 87.7

Resettlement/ Social Safeguards Expert - 43.4 22.0 22.3 - 87.7 Sociologist/ Community Outreach - 7.6 8.2 8.6 - 24.4 National

Environment Specialist 9.3 20.3 21.8 5.8 6.1 63.3 Resettlement/ Social Safeguards Specialist 9.3 20.3 21.8 5.8 6.1 63.3 Advisory Services and Technical Support - SWSC

Environmental Monitoring and Mitigation - WWM 23.7 24.1 24.5 24.8 25.1 122.1 Environmental Monitoring and Mitigation - SWM 23.7 24.1 24.5 24.8 25.1 122.1 Energy Audits and WTP Surveys 87.5 63.5 - - - 151.0 Ground Water Quality Testing and Studies 38.3 55.6 29.8 15.8 - 139.5 PART E: Program Support

a. Advisory Services and Tech Support - Urban Unit (Int'l Firm) International

Safeguards Advisor - Environment (Int'l) - 43.4 44.0 22.3 22.6 132.3 Safeguards Advisor - Land Acquisition and Resettlement (Int'l) - 43.4 44.0 22.3 22.6 132.3 National

Safeguards Specialist Environment (natl) - 10.2 10.9 5.8 6.1 32.9 Safeguard Specialist (Nat'l) Land Acquisition and Resettlement 4.7 10.2 10.9 5.8 6.1 37.6 b. Advisory Services and technical support - UU (individual/ICS) National

Safeguard Specialist (Nat'l) - Environment 24.5 53.4 57.1 60.5 - 195.5 Safeguard Specialist (Nat'l) - Land Acquisition and Resettlement 24.5 53.4 57.1 60.5 16.0 211.6 Communications/Public Awareness Specialist (Nat'l) 23.3 25.4 27.2 14.4 15.3 105.6 c. Advisory Services and technical support - TMA (individual/ ICS) National

Safeguards Specialist - 1 for environment/ 1 for resettlement/ social (2 persons) (natl) 35.0 76.3 81.6 - - 192.8 a. Studies and Surveys

Energy Audit/ WTP Surveys - in other cities - 86.9 93.0 - - 179.9 GRAND TOTAL

2,135.1

371. Communication strategy sets the tools that will help in improving awareness levels of the citizens particularly the poor and women living in the deprived and slums areas to voice their concerns on the services to the service providers directly. This public feedback mechanisms would exert pressure on the service providers and policy makers to bring necessary adjustment in the policy or / and in the services plan to calibrate service provision as per the satisfaction and desires of the service users and the citizens. The strategy has the following guiding principles:




Page 122

Universal Right to Know Results-Oriented Client-Centered Participatory Inclusiveness Gender Sensitivity Benefit-Oriented Service-linked Multi-Channeled Communication Advocacy-Related Programmatically Sustainable Cost-Effective Cultural Sensitivity Targeting Marginalized and the Poor Multi-level Partnership Research, Monitoring and Evaluation

372. The communication strategy emphasis the need of educating citizens and provides examples of messages for improving the knowledge of the citizens. Examples of the messages to be communicated by SWSC have been given in the communication strategy. 373. For details, please see the Communication Strategy. 374. The website for the program could not be developed as the implementation on the program has not been started as yet.


Section 4 Key Outputs Part C - Capacity Development for Accelerated Program

Implementation Support


Page 123

4.0 KEY OUTPUTS PART C - CAPACITY DEVELOPMENT FOR ACCELERATED PROGRAM IMPLEMENTATION SUPPORT

4.1 Program Support/Institutional Effectiveness

375. Legal documents for the establishment of the Sialkot Water and Sanitation Company have been developed. Drafts of the constituent documents, Memorandum of Association (MOA) and Articles of Association (AOA) of the proposed SWSC have been shared with the Urban Unit for review. Comments, from them are awaited for the finailisation of these documents. UU has requested relevant authorities for information regarding directors etc for SWSC. After the MOA and AOA are finalized and the outstanding information is provided by the relevant authorities, documents for incorporation of SWSC will be filed with the SECP.

376. Terms of reference, expression of interest documents and RFPs for the consulting services are being finalised. The ADB is being supported in finalising the dates of publishing the EOIs, issuing RFPs and recruiting consultants. 377. Operating protocols and procedures of working of the company and linkage of various parts of the program have been developed. 378. Tender documents for the priority project packages have also been developed and submitted to the ADB. 379. Detailed costs estimated for all capital projects, technical assistance, consultant team and capacity building program have been developed. The costs include details of developing the financial management systems for the participating TMAs.

380. The cost estimates include costs of independent verifiers, budgeting and reporting requirements. 381. Few parts of the TORs, which include the following, were not completed because the loan agreement was not signed within the time frame available to the consultant:

(i) Operationalize the program support unit and other implementing entities,

including support for establishing offices and procuring equipment. (ii) Develop and conduct training programs for key staff to familiarize them

with ADB procurement and safeguard procedures. (iv) Prepare recruitment plans, assist utilities/government to recruit any staffs

and board directors, and document process. (v) Recommend operating protocols and procedures for service providers. (vi) Update or prepare any organizational structures, strategies and business

plans. (vii) Prepare human resources development plans, staffing and training

strategies.

4.2 Advance Action, Procurement Planning and Land Acquisition





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382. For all five components of Tranche 1 of the investment program, detailed TORs have been developed. Expression of Interests documents for all these parts have also been developed while development of RFPs for the following is underway:

Management Contractor Program Management Consultants Independent verifier

383. It is estimated that the EOI for the management contract will be published on 1st September, 2011.

384. Detailed cost estimates for all five parts of the program have been estimated and are included in the above sections of the report. For further details, please see the financial model.

385. There is no land acquisition involved in any of the subprojects included in Tranche 1 and therefore, no follow up was required on this front.

4.3 Preparation of Facility Administration Manual

386. All parts of the facility administration manual, which include the following were developed for the investment program:

i. Project Description ii. Implementation Plans iii. Facility Management Arrangements iv. Costs and Financing v. Financial Management vi. Procurement and Consulting Services vii. Safeguards viii. Performance Monitoring, Evaluation, Reporting, and Communication ix. Anticorruption Policy x. Accountability Mechanism

4.4 MFF Monitoring and Results Measurement

387. Design and Monitoring Framework (DMF) for tranche 1 and the entire MFF have been developed. DMF provides the performance indicators/targets to be achieved by the program with timelines. 388. A baseline table showing indicators of the existing situation of Sialkot has been developed for water supply, wastewater management and solid waste management which shows the current baseline indicators, to be compared against in future. These baseline indicators are presented in Annex A16.

389. The road map and reform action plan also sets the targets for the entire MFF and program, and the release of funds for future tranches will be triggered from achieving these targets.

390. The following components, were not undertaken because the loan agreement was not signed within the time frame available to the technical team:

(i) Train EA/IA staff in MFF monitoring. (ii) Link baseline data to MFF monitoring systems and program evaluation

system.





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(iii) Develop web-based public information sharing system.

391. All documents developed as part of the project are presented in Annex A 17.

TA 7321 – PAK

Government of Punjab Urban Unit

PUNJAB CITIES IMPROVEMENT INVESTMENT PROGRAM

ANNEXURE

May 2011

J40252334

GHK Consulting Ltd.


Annex A1 Water Supply Sub Projects (Tranche 1)


Page 128

ANNEX A1: WATER SUPPLY SUB PROJECTS (TRANCHE 1)

Figure A1-1: Location plan Tubewell




Page 129

Figure A1-2: Existing Zones




Page 130

Figure A1-3: Proposed Zones




Page 131

Figure A1-4: Water Supply Improvement in Zones




Page 132

Figure A1-5: Water Supply Zones 11,17 14


Annex A2 Wastewater Management Sub Projects (Tranche 1)


Page 134

ANNEX A2: WASTEWATER MANAGEMENT SUB PROJECTS (TRANCHE 1)

Figure A2-1: Proposed Wastewater system


Annex A2 Wastewater Management Sub Projects (Tranche 1)


Page 135

Figure A2-2: Sewer Along Khawaja Safdar Road

Punjab Cities Improvement Investment Program - Final Report

Annex A 3 Transport Component Sub Project (Tranche 1)


Page 136

ANNEX A3: TRANSPORT COMPONENT SUB PROJECT (TRANCHE 1)


Annex A 4 Sialkot District And City


Page 138

ANNEX A4: SIALKOT DISTRICT AND CITY

Source: Base map adapted from District Census Report 1998 and information from Punjab Development Statistics 2010


Annex A 5 Sialkot-In The National Trade Corridor


Page 141

ANNEX A5: SIALKOT-IN THE NATIONAL TRADE CORRIDOR

Source


Annex A 5 Sialkot-In The National Trade Corridor


Page 142


Annex A 6 Projected Built-Up Area


Page 144

ANNEX A6: PROJECTED BUILT-UP AREA

Source: GHK assessment, Sialkot base map adopted from Urban Unit.

N

Legend: Existing built -up area

Projected built-up area 2020

Projected built-up area 2030


Annex A 6 Projected Built-Up Area


Page 145


Annex A 7 Proposed Planning Area


Page 147

ANNEX A7: PROPOSED PLANNING AREA

VEG

ETAB

LE

M

ARKET

TALWARA

KOTLI

JAURIAN KALAN

UGGOKI

MOOMAN KALAN

MIANI

HUNDAL

GURHI

SYEDANWALI

PIRANGPUR

FATEH

ADALAT

BHAGWAL

MUZAFARPURGOHADPUR

BOUNKAN

PINDI

RASOOL

LANGRIALI

DALLOWALI

BHARATH

BALLAWALA

PLAURA KALAN

KAMMANWALA

KHAROTA SYEDAN

KOTLI LOHARAN

MOONGAR

PINDI KHOKHAR

SHEEHNI

CHAPRAR

HED MARALA

GONDAL

HABIBPURA

MODEL

WORKS

SHAHABPURA

G

U

J

R

A

T

J A M M

U &

PLANNINGBOUNDARY

MUGHLAN

ARAIYAN

PUR

BEHRAM

WATER

AWAN

GARH

GARH

(2030)

PLANNINGBOUNDARY(2020)

EXISTINGBUILT-UP AREA(2010)TOWN

WATERWORKS

MUHAMMADPURA

NIKKAPURA

PURAHIRAN

AHMADPURAIMAM

SAHIB

SHAHSAYYADAN

SHAHABPURA HAJI

PURA

MUZAFFARPURA

MIANAPURA KARIM

PURA

DOBURJIARRAIYAN

CANTONMENT AREA

CHARIND

SIALKOTAIRPORT

LEGEND:

CORE BOUNDARY

EXISTING BUILT-UPAREA 2010

PROPOSED PLANNINGBOUNDARY 2020

PROPOSED PLANNINGBOUNDARY 2030

FIGURE:10 PROPOSED PLANNING AREA

TEHSIL BOUNDARY

K A S H M I R

Source: GHK assessment, Sialkot base map adopted from Urban Unit.


Annex A 8 Proposed Outline Development Strategy Plan


Page 149

ANNEX A8: PROPOSED OUTLINE DEVELOPMENT STRATEGY PLAN

VEG

ETAB

LE

M

ARKET

TALWARA

KOTLI

JAURIAN KALAN

UGGOKI

MOOMAN KALAN

MIANI

HUNDAL

GURHI

SYEDANWALI

PIRANGPUR

FATEH

HAJIPURAADALAT

BHAGWAL

MUZAFARPURGOHADPUR

BOUNKAN

PINDI

RASOOL

LANGRIALI

DALLOWALI

BHARATH

BALLAWALA

PLAURA KALAN

KAMMANWALA

SYEDAN

KOTLI LOHARAN

MOONGAR

PINDI KHOKHAR

SHEEHNI

CHAPRAR

HED MARALA

GONDAL

HABIBPURA

MODEL

SHAHABPURA

G

U

J

R

A

T

SMALL INDUSTRIAL ESTATE

MUGHLAN

ARAIYAN

PUR

BEHRAM

AWAN

GARH

GARH

EXISTINGBUILT-UP AREA(2010)TOWN

WATERWORKS

MUHAMMADPURA

NIKKAPURA

PURAHIRAN

AHMADPURAIMAM

SAHIB

SHAHSAYYADAN

SHAHABPURA HAJI

PURAFATEHGARH

MUZAFFARPURA

MIANAPURA KARIM

PURA

DOBURJIARRAIYAN

CANTONMENT AREA

CHARIND

TO HEAD M

ARALA

KALLU WAL ROAD

ABI

C R

OAD

GHAZI ROAD

TO KALLU WAL

RO

AD

TO KAJLEY VAL VILLAGE

CA

NTT

. RO

AD

NULLAH AIKRANG PURA

TO BHAGO WALI

BHAGO WAL ROAD

TO KINGRAN

AIM

ANAB

AD R

OAD

TO WAZIR ABAD

RORAS ROAD

NULLAH AIK

TO FATEH

RORAS ROAD

DASKA ROAD

TO D

ASKA

TO A

IMAN

ABA

D TO NAROWAL

PASROO

R ROAD

ROADDEFENCE

RAILWAY LINE

JAMMU ROAD

FAZAL ELHI

WAZIR ABAD ROAD

DEFENCE ROAD

HEA

D M

AR

ALA

RO

AD

KASHMIR ROAD

NULLAH

GOHADPUR ROAD

SHAHAB PUR ROAD

ROAD

GARH

TO NAROW

AL

HE

AD

MA

RA

LA

KHAROTA

ROAD

TO P

IND

SIA

D P

UR

LEGEND:

COMMERCIAL

TANNERIES ESTATE

Figure 9: Proposed Outline Development Strategy Plan

ROADS

GROWTH DIRECTION

REGIONAL PARK

RESIDENTIAL

SIALK

OT

AIRPORT

PROPOSED TANNERYINDUSTRIAL ZONE

REGIONALPARK

PROPOSEDLANDFILL SITE

AIRPORT ROAD

Source: GHK assessment, Sialkot base map adopted from Urban Unit


ANNEX A 9 Implementation Schedule For Tranche 1 And Future Tranches


Page 151

ANNEX A9: IMPLEMENTATION SCHEDULE FOR TRANCHE 1 AND FUTURE TRANCHES




Page 152




Page 153




Page 154




Page 155




Page 156




Page 157


Annex A 10 Gender Action Plan


Page 158

ANNEX A10: GENDER ACTION PLAN

Sr. No. Objective Activity Indicator Target Group Action By

Component A: Urban Planning and Municipal Financial Management, and Component E: Program Management Support 1 Gender-analysis of sex

disaggregated data collection in surveys is used for city planning and financing

Collection and analysis of sex-disaggregated data in all surveys

Analysis of gender disaggregated data used in city planning and financing

Survey instruments designed to produce sex-disaggregated data

Baseline disaggregated data collected and analyzed for monitoring and evaluation and subsequent tranche design

Clients (women and men)

CCQAD of WSC

Component B: Water Supply, Wastewater and Solid Waste Management Improvements 1 Application of gender-sensitive

strategies to maximize women’s participation as program stakeholders

Conduct women-only public consultations through CRC across all income strata (where possible)

Create LICCCCs in low income neighborhoods staffed 50% with women

Percentage of public consultations having women-only sessions across all income strata.

Women’s special needs and concerns are taken into account in meeting project outputs and implementation activities

Number LICCCCs created and each staffed with at least 50% women

Clients (women) CCQAD of WSC

2 Gender Mainstreaming within the Utility WSS/SWM Company and any MTA

Human Resource Management Systems of the WSC and any MTA to include gender sensitive provisions

One third of the Independent Directors of the WSC to be women

Gender sensitive recruitment policies implemented

Adequate paid maternity leave policy implemented

Defined sexual harassment policy and grievance mechanisms implemented

WSC and any MTA

Human Resource Division of the WSC and any MTA

3 Increased institutional capacity of implementing partners to manage effective gender mainstreaming program

Conduct of gender-sensitivity training seminars for staff

Conduct inception workshop with relevant NGOs, GRAP representative and CCQAD

Conduct regular meetings of involved NGOs, CBOs, CCBs, GRAP representative and CCQAD

Incorporate gender perspective in training and capacity building activities

No of staff trained at the HQ customer care services and LICCCCs on gender sensitive

WSC, any MTA for transport, NGOs, government

CCQAD of WSC and any MTA




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Sr. No. Objective Activity Indicator Target Group Action By

issues Regular meetings held, minutes of

meeting documented 4 Providing opportunities for

women to demand effective and reliable urban utility services

Awareness raising campaigns on importance and availability of efficient and reliable urban utility services to be conducted with CBOs, NGOs, schools, through lady health workers, local radio and TV channels

LICCCCs in communities staffed by women from same community

Capacity development of female staff to operate LICCCCs

Ongoing Capacity building of women to use community based customer care services

LICCCCs' staff trained to implement the CRC every 6 months

Regular meeting between HQ CCQAD staff and LICCCCs employees

Women-specific marketing strategies are tested especially through female focused NGOs and CBOs

At least 50% percent of staff of each LICCCCs are women

100% of LICCCCs employees are trained on how to operate LICCCC and on how to provide gender-sensitive customer service

Number of female visits for service demand, complaint or feedback at the LICCCC

Percentage of complaints reported by women.

CRCs evaluated every 6 months Number of meetings of LICCCCs

held at headquarters level

Women of households

CCQAD of WSC and any MTA

CBO = citizen based organization, CCB = citizen community board, CRC = citizen report card, CCQAD = Customer Care and Quality Assurance Division, GRAP = Gender Reform Action Plan, LICCCC = Low-Income Community Customer Care Center, MTA = Municipal Transport Authority, NGO = non-government organization, WSC = Water and Sanitation Company, SWM = solid waste management, WSS = water supply and sanitation, TOR = terms of reference.




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Annex A 11 Stakeholder Consultations Undertaken for PCIIP


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ANNEX A11: STAKEHOLDER CONSULTATIONS UNDERTAKEN FOR PCIIP

Group/Stakeholder Urban Unit Planning & Development Department Participant Urban Unit team:

Project Manager Urban Unit , Senior Urban Planner , Urban Planner, Architect, GIS team, Transport Specialist, Solid Waste Management Specialist, Environment Specialist PPTA Team: Peter Dawes, Tanawwur Ali Hyder , Jawad Rauf, Izhar ul Haq

Location Lahore Date 2 March 2010 Key Issues Discussed: The following was discussed in the consultation meeting:

Meeting started with a presentation by Dr Nasir Javid Project Manager on Urban Unit program

Local government structures were discussed Discussion on current situation of five big cities and including Secondary cities in Punjab Discussion on overall Situation in Punjab’s cities regarding water supply, sewerage, drainage, Solid

waste and urban transport services Overview of Proposed Punjab Cities Improvement Investment Program Geographic coverage of the program


Senior Urban Planner, Urban Planner, Solid Waste Management Specialist, Environment Specialist PPTA Team: Peter Dawes, Jawad Rauf, Izhar ul Haq,

Location Lahore Date 3 March 2010 Key Issues Discussed: The following was discussed in the consultation meeting: Population and growth patterns Sialkot City – Trends and Issues Historical Growth of Sialkot and Sialkot base map Review of old outline development plan None of TMA has base maps or any kind of maps which shows, physical features What information could be obtained from the TMA level Town must have basic tools like base maps, services maps for proper services delivery and future

planning




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Group/Stakeholder Urban Unit Planning & Development Department Participant Urban Unit team: Senior Urban Planner, Urban Planner, Architect,

researchers and Associates PPTA Team: Peter Dawes, Tanawwur Ali Hyder , Jawad Rauf, Izhar ul Haq

Location Lahore Date 4 March 2010 Key Issues Discussed: The following was discussed in the consultation meeting: Conceptual clarity is important to provide coherence and integration of the project components. Urban planners require skill and training In the district Under the Local Government Ordinance 2001, there are two seats at the District level, one

with the title District Officer Housing and Physical Planning and other is District officer Planning & Development.

Most of Planners post are occupied by non planners The Situation in Tehsils are not so different most are vacant or similar position as in the districts In general, one of the main cause of poor services are lack of capacity and financial resources None of TMA has base maps or any kind of maps which shows; physical features Town must have basic tools like base maps , services maps for proper services delivery and future

planning

Group/Stakeholder Urban Unit Planning & Development Department Participant Urban Unit team: Project Manager, Senior Urban Planner, Urban

Planner, Architect, researchers and Associates, Transport Specialist, Finance specialist, Solid waste Specialist, GIS Specialist PPTA Team: Peter Dawes Tanawwur Ali Hyder, Jawad Rauf, Izhar ul Haq, John W. Leonardo, Jeffery Stubbs, Imran Yousaf Zai, Khushal Khan

Location Lahore Date 9 March 2010 Key Issues Discussed: The following was discussed in the consultation meeting: 1. PPTA TORs, detail scope of work 2. Urban sector plays a critical role in economic growth and quality of life of peoples. Hence the

government’s focus on ensuring that the sector gets due attention. 3. UU believe that Government of Punjab has to give equal consideration to infrastructure needs as Punjab

Government do to governance, Finance management, reforms integrated planning and institutional restructuring in the urban sector.

4. Currently, the government is targeting 5 big cities: Lahore, Multan, Faisalabad, Rawalpindi and Gujranwala. In addition, a string of secondary cities are also being accorded importance.

5. Punjab is following a two-pronged strategy: Government of Punjab is dangling the carrot of increased funding and provision of better infrastructure in our cities, but we are also wielding the stick of asking cities to supervise their services better.

6. A sector vision has been outlined backed by clear objectives, projects and implementation plans. The Urban Unit has been established as part of the P&D to lead the process of implementing this sector vision.

7. Punjab Government release funds for investment on basic document call annual development program, Government of Punjab billing it now on medium term basis (the document called medium term development frame work)

8. The LGO 2001 created a new management structure for service delivery agencies, as well as defining new roles. However, these roles have been vague at best and the situation has been compounded by the merging of rural and urban areas. This has resulted in a lot of confusion over who has to do what. Having said that, it is clear that decentralization is the way forward and is required to ensure local level service delivery. What may be needed however is for some changes in the LGO 2001 to be made to ensure a balance of power between the elected representatives and the administration.

9. One of the other gains from the enforcement of the LGO 2001 is that a new political leadership has emerged, which is open to new ideas.

10. PPPs are being promoted by the government as a preferred mechanism for service delivery. Service areas being targeted for this include water supply, solid waste management, sanitation and transport.

11. Transport continues to be a major problem in the big and secondary cities and although we have introduced some improvement and are working with the ADB for the Lahore Mass Transit System, there is




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much that still needs to be done. CNG 4 stroke Rickshaws were introduced in Lahore to provide some respite from environmental pollution, but clearly that is only the beginning for affordable, environment-friendly public transport solutions.

12. There are several government agencies working in the urban sector and the lack of coordination hampers an integrated approach to urban planning. To overcome this issue, a coordination forum in the form of a Metropolitan Planning Committee has been established which includes the Nazim of Lahore, LDA, WASAs, and Provincial Government agencies.

13. Urban Unit is dealing with five sectors which are urban planning, land management, water & sanitation and solid waste management, Urban Transportation and Municipal Finance; a lot of work on policies, frame work has already done.

Group/Stakeholder Tehsil Municipal Administration Sialkot Participant TMA Staff:

Tehsil Municipal Officer , Tehsil Officer Infrastructure &Services, TMA technical staff Sub Engineers, Tehsil officer Finance, Chief officer PPTA Team: Jawad Rauf, Kevin Tayler

Location Sialkot Date 10 March 2010 Key Issues Discussed: The following was discussed in the consultation meeting: Introduction of the program Water supply issues and ongoing projects Sewerage and drainage ongoing projects Figures on water connection discussed with Tehsil officer Finance Water supply time and total duration in Sialkot City was discussed

Group/Stakeholder Public Health Engineering Department Sialkot Participant TMA Staff:

Executive Engineer, SDO and Sub Engineer PPTA Team: Jawad Rauf

Location Sialkot Date 11 March 2010 Key Issues Discussed: The following was discussed in the consultation meeting: Introduction of the program Water supply issues and ongoing projects Sewerage and drainage ongoing projects Estimate and details of proposed work for disposal work The original piped water system in Sialkot dates from 1914 and serves the central part of the town The system was originally supplied from a ground level reservoir, located on elevated ground at the ‘Qilla’ or

fort, adjacent to the present TMA office. This reservoir was destroyed by Indian shelling/bombing during the 1965 war and has been disused since

The Cantonment has its own water supply system which, like that in Sialkot City, is supplied from tubewells The piped water system in Sialkot is supplied by tube wells The aquifer is recharged from the Chenab River, which is located some 20 km north-west of the centre of

Sialkot and from the water channels and bodies within the city.




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Group/Stakeholder Urban Unit Planning & Development Department Participant Urban Unit team: Senior Urban Planner, Urban Planner, Architect,

Transport Specialist, Finance Specialist, Solid Waste Specialist, GIS Specialist PPTA Team: Peter Dawes Tanawwur Ali Hyder, Izhar ul Haq, John W. Leonardo, Jeffery Stubbs, Imran Yousaf Zai, Khushal khan, Nicholas Allen

Location Lahore Date 11 March 2010 Key Issues Discussed:

The following was discussed in the consultation meeting:

Enough studies have been undertaken on the SWM and Water supply, Sanitation and urban Transport.

There was no need for ‘just’ another report on existing situation but required a report that incorporated a practical approach to implementing a new system which is able to provide improved service delivery

Interaction with local politicians and NGOs’ are important GIS maps will be provided by the Urban Unit Solid Waste Specialist of the Urban Unit gave overview of the Solid Waste Management situation in

Punjab and extended full support towards the project. There is a need for long term integrated policy for the improvement of SWM in the cities. More than 50% of urban Punjab is not connected to any WSS network Existing networks are breaking down fast. Inadequate Capacity of Institutions to deliver

Need a policy framework and policy to drive and provide strategic direction for reforms Effective institutional governance and regulation of the water services are essential for the establishment

of sustainable systems A Urban Water & Sanitation Policy was developed to articulate the boarder framework on the sustainable

urban water and sanitation system Currently following are the key missing links in the planning and services delivery :

o A strategic Vision for the urban sector o An overarching Urban Policy o Regulatory framework for Urban Sector o Efficient & Effective urban institutions o Integrated planning o Coordinated Development o Cutting edge technical knowledge with creative use o Innovative Resource mobilization o Proactive & Planned development

The PCIIP was viewed as a new initiative, with the idea of establishing water and sanitation utilities at the TMA level

Discussion was undertaken that how the water and sanitation company can work in the presence of government structures

Group/Stakeholder Tehsil Municipal Administration Sialkot Participant TMA Staff : Administrator, Tehsil Municipal Officer , Tehsil Officer

Infrastructure &Services, TMA technical staff Sub Engineers, Tehsil officer Finance, Chief officer, Tehsil officer Planning and Coordination, revenue staff, PPTA Team: Tanawwur Ali Hyder, Sheher Bano , Jawad Rauf, Izhar ul Haq, John W. Leonardo, Imran Yousaf Zai, Khushal khan, Nicholas Allen, Jeffery Stubbs, Alin Bird,

Location Sialkot Date 16 March 2010 Key Issues Discussed: Welcome remarks by Tehsil Administrator and Tehsil Municipal officer and showed full support towards the

project Brief description of the assignment, objective, scope of work, implementation arrangement by W. Leonardo Overall current situation of TMA Sialkot briefed by TMO and mentioned that problems of coverage , quality

and sustainability of services Key Areas of Intervention of people of Sialkot and its Business Community:

o Sialkot City Development Package.




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o Sialkot International Airport. o Sialkot Tannery Zone. o Child Labour. o Construction of Al-Shams Block at Govt. Sardar Begum Hospital, Sialkot by Philanthropist Haji

Muhammad Bashir. Piped water coverage low Low connection ratio – Sialkot about 35% overall. Supply intermittent and unreliable Limited Sewerage coverage Pumping stations in poor condition No wastewater treated Extend coverage (in Sialkot from present 35% to 75%) Sewage treatment to appropriate level before reuse/discharge Collect secondary data, including maps and satellite images and Consultation with TMA, PHED on issues,

plans Identify scenarios (consolidate vs. expand, rate of change, management options, degree of decentralisation

etc). Prepare and discuss plans and estimates between stakeholders before finalising plans and estimates Surface water needs treatment, transmission mains – GW preferred Distribution – Extent to system should be Zoned House connections, 24/7 water supply system How to maintain supply during load shedding periods? Difficult – analysis shows can only be achieved with

significant extra investment in pumping and elevated storage capacity No treatment other than chlorination Key problematic areas

o Flooding due to non availability of sewer cleaning machines o Sewerage issues due to non operational Model Town wastewater pumping station. Also missing

links of Sewers

Group/Stakeholder District Government Sialkot Participant District Government Staff : District Coordination Officer, Executive

District officer Finance and Planning Tehsil Municipal Officer, District Officer Planning, Executive District officer Works and services District Officer Environment, District Officer Transport PPTA Team: Tanawwur Ali Hyder, Sheher Bano , Jawad Rauf, Izhar ul Haq, John W. Leonardo, Imran Yousaf Zai, Khushal khan, Nicholas Allen, Jeffery Stubbs, Alin Bird

Location Sialkot Date 16 March 2010 Key Issues Discussed: The meeting started with the introduction of the Government and consultant teams. The overall objectives of PCIIP were discussed. The following was discussed: Actual boundary of city area and growth trends Rapid Urban growth and industrialization in Sialkot Need to develop integrated Master Plan for Sialkot city Regional utility company concept and related issues were discussed Non availability of Technical Staff for Spatial Planning. Poor planning due to limited planning capacity and non availability of innovative tools like GIS within district

departments Political and non-political Influences on urban planning Outdated Master plan need to update and also zoning approach need to encouraged Requires Social awareness of the community especially environment, cleanliness, road discipline, building

bye-laws Deficient in urban development expenditure Too many government agencies involved in urban sector management with over lapping responsibilities.-

PHED, DG, TMA and UA responsible for provision of Water Supplies Equal distribution of development funds among all Union Councils causing no money left for any solid

planning work Lack of performance related job specifications Lack of understanding about concept of strategic planning Limited public consultation and involvement in planning process Lack of records and asset management




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Non-availability of affordable land and housing facilities for poorer sections of community Lack of effective public transport policy Poor enforcement of vehicle emission standards Extremely limited provision of land for urban poor Current institutional systems and process Public transport is not adequately developed in Sialkot Two formal bus routes are operating in the city. Intercity bus routes passing through city areas and informally operating vans, institutional transport and three

wheelers carry one fourth of city passenger load. Majority of travellers move on two wheelers adding to the congestion on city streets.

Group/Stakeholder NGOs/CBOs

Participant Local civil society organizations PPTA Team: Sheherbano Burki

Location Sialkot Date 16 march 2010 Key Issues Discussed: 1. Local civil society and NGOs feel that though majority of the people are unwilling to pay for a better

service, experience shows they do not appreciate or value a free good 2. A large number of social sector entities both NGOs and civil society exist in Sialkot, and are willing and

can be leveraged as partners for public awareness campaigns, social mobilization and improved service delivery

3. The NGOs stated that though civil society organizations exist, very few are doing any credible work 4. The willingness to share information in the sector is still low 5. Majority of the respondents demand improvements in service delivery and are willing to pay for higher

quality reliable service provision. Majority of them are also willing to form CBOs to demand and monitor service provision

6. Very few NGOs have ventured into providing water and sanitation services to the urban poor 7. Women are most disadvantaged by inefficient and insufficient service delivery being primarily responsible

for managing water supply, sanitation and waste disposal of the household. 8. Many service providers do not even cover the costs of operation and maintenance due to low tariffs and

poor efficiency 9. The civil society organizations feel that citizens have no sense of public responsibility and are illiterate

about the hazards of contaminated drinking water and dirty surroundings. The feel that a behavior change management campaign needs to be implemented in the city, in addition to improvements in infrastructure and service delivery

10. The NGOs stated that though civil society organizations exist, very few are doing any credible work 11. The civil society organizations and NGOs feel that though majority of the people are unwilling to pay for a

better service, experience shows they do not appreciate or value a free good 12. A large number of social sector entities both government and civil society exist in Sialkot, and are willing

and can be leveraged as partners for public awareness campaigns, social mobilization and improved service delivery

13. The local NGOs stated that though civil society organizations exist, very few are doing any credible work 14. Majority of the respondents demand improvements in service delivery and are willing to pay for higher

quality reliable service provision. Majority of them are also willing to form CBOs to demand and monitor service provision

15. Women are most disadvantaged by inefficient and insufficient service delivery being primarily responsible for managing water supply, sanitation and waste disposal of the household

16. Additionally, power breakdowns, load-shedding, inflation and high utility bills are primary concerns of the households

17. The civil society feels that citizens have no sense of community responsibility and are illiterate about the hazards of contaminated drinking water and dirty surroundings. The feel that a behavior change management campaign needs to be implemented in the city, in addition to improvements in infrastructure and service delivery




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Group/Stakeholder Sialkot Chamber of Commerce & Industry Participant Sialkot Chamber of Commerce & Industry :

Chairman, Executive and general members of SCCI PPTA Team: Tanawwur Ali Hyder, Sheher Bano , Jawad Rauf, Izhar ul Haq, John W. Leonardo, Imran Yousaf Zai, Khushal khan, Nicholas Allen, Jeffery Stubbs,

Location Sialkot Date 17 March 2010 Key Issues Discussed:

The following was discussed in the meeting: Introduction of PCIIP and overall objectives of the project Introduction of the consultant team Need of Urban Reforms Sialkot Chamber of Commerce & Industry (SCCI) role in Sialkot economical and physical development Growth in industrialization and future needs SCCI mega initiatives and their impacts Shifting of Industries from City Centre to industrial zone

How Branding Sialkot as “the” place to do business in Pakistan Socio – economic and environmental aspects of existing solid waste system in Sialkot

Group/Stakeholder Poor, Low income to middle income people (focus group

discussions with almost 110 people) Participant Local residents/citizens

PPTA Team: Sheherbano Burki

Location Sialkot Date 16 march 2010 - 17 march 2010

Key Issues Discussed:

1. Majority of the FGD respondents, representative of the larger poor population of Sialkot, were earning on

average Rs. 7,000/- per month and were of Punjabi ethnicity, predominantly speaking Punjabi. Average household size is 6 to 6.5

2. Majority of them lived in Pucca houses (75.23%) with some form of flush system latrine, some connected to the municipal sewerage and some draining in open street drains. 100% of the households had metered electricity connection.

3. Majority of the respondents were women (84.4%) as they are the principal users of services related to WSS, and SWM. Majority of these women were housewives followed by domestic servants.

4. Respondents were dissatisfied with the sanitation and sewerage services whereby drains and gutters were often blocked or overflowing. A number of households did not have any proper municipal service in this regard

5. Barring a few, which were relatively well off, all respondents disposed off their garbage personally by dumping, burying or burning it. The dumping was primarily the responsibility of the womenfolk.

6. There is a severe shortage of reliable and affordable public transport system for the poors. lack of awareness about impact of contaminated water and dirty surroundings

7. Majority of the respondents were married (77.98%) and had received no formal education (23%). 8. Major monthly expenditures comprise of food and utility bills (primarily electricity) 9. There is high level of dissatisfaction with the quality and quantity of water supply. Where government

connections are available the water supply is inadequate and the quality very poor. Where people access water from private bored wells, there is a substantial cost of running water-pumps to access water, and serious contamination of groundwater near industrial sites

10. Unorganized and infrequent public transport with no safety and quality 11. Additionally, power breakdowns, load-shedding, inflation and high utility bills are primary concerns of the

households 12. All FGD respondents feel that the government and politicians are corrupt and inept and have scant hope

of them solving their problems




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Group/Stakeholder Tehsil Municipal Administration Sialkot Participant TMA Staff : Tehsil Officer Infrastructure &Services, TMA technical staff

Sub Engineers PPTA Team: Tanawwur Ali Hyder, Nicholas Allen, Jawad Rauf, Izhar ul Haq, John W. Leonardo, Imran Yousaf Zai, Sheherbano

Location Sialkot Date 17 March 2010 Key Issues Discussed: The following was discussed in the meeting: The underground water supply distribution network has expired its life and is being contaminated with

sewerage water which causing gastric problem in the area Shortage of trained qualified operational staff Due to intermittent water supply, there is infiltration of sewerage into the water supply system. There is a

serious contamination problem with health risks. 24 hour supply should be reinstated to eliminate the frequent drain down of pipelines and the attendant risk

of contaminated water being sucked in to them Sewerage coverage is low and the system is in poor condition. Severe flooding of highly contaminated

wastewater occurs particularly following heavy rainfall. Large parts of the collection system are Actually open drains, which need to be replaced with piped sewerage. Chocked Sewerage Lines The Sewerage & Drainage system can be improved by increasing man power and machinery for which

funds are the major problem. There is no separate tariff for sewerage. There is frequent overflow of the sewerage due to dumping of solid waste into sewer. Shortage of trained qualified operational staff No regular maintenance program exists; planned and systematic procedures should be introduced

according to appropriate state-of-the art practices for a city of this size and the level of services being provided.

Group/Stakeholder Local People Participant Different community groups from different areas ( Both male &

female) PPTA Team: Tanawwur Ali Hyder, Nicholas Allen, Jawad Rauf, Izhar ul Haq, Imran Yousaf Zai, Sheher Bano

Location Sialkot Date 17 March 2010 Key Issues Discussed: Following are the salient points from the consultation meeting with citizens: The quality of service is not satisfactory In most of the areas, sewerage system are not performing well and especially overflows during rainy days

causing different diseases Mixing of polluted water with the drinking water Main sewerage water carrying drains passing through the thickly populated areas There are areas which are entirely neglected TMAs not sincere in providing quality service Bad planning is the main cause of the poor water and sanitation service People are not aware of their rights During rains the sewerage system collapse The system is not efficient Due to political groupings, the service provision is not equal for all Mixing of polluted water with the drinking water causing many diseases High rate of population increase and services not increasing in similar ratio No check and balance system in place for the staff Officers come late in the office Funds are not properly utilized




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Problem solving only on the basis of personal contacts Political interference in the provision of services Problems in delegation of authority. Managerial capacity is lacking Institutional problems Lack of awareness, on part of the concerned department, about severity of the problem faced by people. Every one denies his responsibility Limited resources and unlimited wants Shortage of staff, especially the technical staff, to deal with O&M issues. Proper planning is lacking Lack of monitoring and supervision Lack of water testing laboratory at Tehsil level

Group/Stakeholder District Government Sialkot Participant District Government :

PPTA Team: Jawad Rauf, Khushal Khan. Tanawwur Ali Hyder John W. Leonardo

Location Sialkot date 18 March 2010 Key Issues Discussed: Organization and budgetary review, Review of current issue of road congestion, safety, working of the signalized crossings, Facilities for NMT and bus terminals

Group/Stakeholder Tehsil Municipal Administration Sialkot Participant TMA Staff : Chief Officer, Chief Sanitary Inspector

PPTA Team: Nicholas Allen, Jawad Rauf, Imran Yousaf Zai, John W. Leonardo

Location Sialkot Date 19 March 2010 Key Issues Discussed: Following points were discussed in the meeting: TMA’s SWM Department is poorly resourced and unable to meet its responsibilities Understaffed in the management and skilled labour categories Budget allocation is only sufficient to cover salaries and basic equipment operations TMA only collects an estimated 25 percent of the municipal waste The balance is being burned, dumped or buried by private individuals and collectors Waste generation is increasing day by day Most municipal waste is dumped on vacant lots, flood plains, drainage channels, and open areas throughout

the city These practices consume, degrade and devalue vast areas of land within the urbanized area, cause

significant environmental damage and threaten the health and safety of nearby communities There are no industrial waste management (IWM) systems in Sialkot Industrial wastes are being comingled with municipal wastes and dumped in the same manner, greatly

elevating environmental and public health risks There is little evidence that the existing medical waste incinerator is operational, or that appropriate MWM

procedures are being followed. Valuable recycled materials are being thrown away due to the lack of a coordinated, sustainable approach to

primary segregation and recycling Employment opportunities are being lost, especially for lower income, marginalized group. Public awareness of environmental and solid waste management issues is low The primary segregation of recycled materials in Sialkot is largely undeveloped There is no sanitary landfill site both in city area and cantonment area

Group/Stakeholder Tehsil Municipal Administration Sialkot Participant TMA Staff : Tehsil Officer Finance

PPTA Team: Nicholas Allen, Jawad Rauf, Imran Yousaf Zai, John W. Leonardo

Location Sialkot Date 19 March 2010 Key Issues Discussed:




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Key issues that were discussed are the following:

1. 53% of the sanctioned positions are filled while 47% are vacant. Over 90% of the vacancies are expected to be filled during the next financial year – but there was the same expectation of filling the vacancies in the previous year also which did not happen.

While 47% of the overall positions are vacant, the position in sanitation is very unfavourable as there 52% of the positions are vacant. 47% of the positions for sanitary workers are vacant.

Women comprise 8.6% of the total staff positions and 16% of the filled staff positions. The Tehsil Office (Planning and Coordination) is headed by a female Tehsil Officer (probably a Town Planner), while there is one sanitary worker under Mechanical Staff and 150 sanitary workers under Chief Officer’s Unit (Health Branch – sanitation staff).

A large percentage of TMA revenues are from its share in the provincial resources allocated by the annual Provincial Finance Commission (PFC) Award.

Water Supply Contingencies Budget include provision for chlorine, bleaching powder, stationery forms, mobil oil, grease, tube well repair, repair of electric installations and pipelines etc

Water Rates Inspector is responsible for billing and collection of user charges on water supply. The office of the TO(P&C) does not inform the Water Rates Inspector about the approval of new building

plans (which obviously need a new water connection also) and approval of land or building use (which suggest that the residential connections need to be changed to commercial connections with a higher monthly rate).

A security is collected from the applicants at the time of approving the water connection. This security does not appear to be accounted for separately (to be shown under the Public Account) and is not refunded when some user requests disconnection of water supply. Security is charged at the following rates:

o Residential 3/8” Rs.600 o Residential ½” Rs.1,200 o Commercial 3/8” Rs.1,200 o Commercial ½” Rs.2,400 o Model Town – Residential Rs.1,890 o Model Town Commercial ¾” Rs.3,780 o Factory Area ½” Rs.1,890 o Factory Area Commercial ¾” Rs.6,900

During 2006-07, collection of water rates was leased out to a contractor. Since 1.7.2007, billing and collection is being done through the Habib Bank Ltd. Computerized billing is managed by the Habib Bank Ltd. An annual computerized bill is issued at the beginning of the financial year Collection is usually received during the first three months of the financial year. After issuing the bills, the bank provides detailed print outs (showing name, address, type of connection,

annual water charges, arrears, surcharge, total demand etc – and the area-wise summaries). These printouts are bound into over 20 volumes.

On deposit of bills in various bank branches, the amount is automatically transferred to the main TMA A/c at the city branch.

The collecting branches prepare a scroll which is obtained by the TMA and collections are marked against the relevant bill in the bound volumes of printouts.

A surcharge is levied in case the bill is not paid till the year end – Arrears at the year end, if any, are mentioned in the bill issued in the subsequent year.

The Water Rates Inspector and his staff have to make repeated visits to the defaulters for collection of bills. On 30th June 2009, there were 9,513 defaulters out of the total 42,082 water connections. The amount in default (receivables) on 30th June 2009 was Rs.10,557,072. This relates to the two years

from 1.7.2007 to 30.6.2009 as receivables were considered as Nil when the system of billing and collection through bank was started.

There are no sewerage charges and so no revenues from sewerage/ drainage

Group/Stakeholder Scavengers and Kabarias Participant Scavengers and Kabarias Different Scavengers groups from

different areas ( Both male & female and Kabarias) PPTA Team: Jawad Rauf , Malik Aslam, Alan Bird

Location Sialkot Date 22 March 2010 Key Issues Discussed: The following were the main issues discussed in the meetings: About 300 Scavengers involved in informal segregation of recyclables from solid waste




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Both male and female scavengers work day and night, including children Men, women, boys and girls of all ages look through waste at all locations Mostly they carry plastic bags or sack to collect various recyclables Mostly they collect rubber and plastic, tin, scrap metal, paper, glass, alkaline batteries and bread. These items are sold to the various kabarias located in the city. Sumara between the age of 32 years, lives with her mother and two brothers. She leaves her home early

in the morning and visit main collection points of Municipal solid waste. She works till late afternoon. She earns daily between Rs.200 to 300.Her father is drug addict and does not work

Tariq is a 12 year’s old boy and earn about Rs 100 for his family by scavenging It is estimated that there are about 100 small scale kabarias in Sialkot There are three different types of kabarias. Small, medium and large scale. They are intermediaries in the

Waste value chain and mostly responsible for sorting and grading of waste purchased or collected by them kabarias purchase supplies from scavengers or direct from households. Then recyclables material is then –

resold to large kabarias. There are about 50 Medium scale kabarias and they have shop located in different part of city. These

shopkeepers have their permanent Scavengers to get their recyclable material on daily basis. The large scale kararias purchase recyclable material from small and medium scale kabarias, scavengers

and individuals. According to the scavengers group they are selling Glass Rs 2 /kg, Plastic Rs 3/kg, Metal Rs 20/kg, bread

10/kg and paper Rs 4/kg

Group/Stakeholder Sialkot Chamber of Commerce & Industry Participant Sialkot Chamber of Commerce & Industry: Chairman, Executive

and general members, PPTA Team: Jawad Rauf, Khushal Khan, Malik Aslam

Location Sialkot Date 26 March 2010 Key Issues Discussed: Discussion on overall working of city transport, Discussion on level of required improvements

Group/Stakeholder Local Transporters and local managers of the bus stops Participant Local Transporters

PPTA Team: Khushal Khan, Malik Aslam Location Sialkot Date 26 March 2010 Key Issues Discussed: Review of overall working of city transport, Working and management issues of bus and freight terminals and possible improvements required

Group/Stakeholder Pakistan Railway Participant Pakistan Railway Staff :

Station Master Sialkot , Gate keepers of Level Crossings Local Transporters PPTA Team: Khushal Khan, Malik Aslam

Location Sialkot Date 26 March 2010 Key Issues Discussed: Review of train timings and working of road level crossings

Group/Stakeholder TMA Sialkot Participant TMATehsil Officier (I&S)

PPTA Team: Khushal Khan

Location Sialkot Date 29 march 2010 Key Issues Discussed: Railway crossings have to be closed more than 12 times a day which stops all movement of

all traffic, including motorists, cyclists and pedestrians. It was considered by some people that undisciplined nature of traffic is due to the lack of

enforcement by local authorities and traffic police. The fact that the traffic police are under the control of the Punjab Government and not the District Government was considered by some people to be a weakness in




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enforcement. The encroachment by people onto the edges of roads is not being controlled and is creating

a range of problems. The very varied nature of both motorized and non-motorized modes of transport, all of which

are using the same road space is causing serious traffic management problems. Modes of transport include pedestrians, bicycles, motorcycles, motorcycle rickshaws, pickup trucks, frequently stopping mini busses, long distance busses and trucks along with animal powered carts.

Some people felt that animal carts should be banned from main roads People do not obey the traffic rules The number of bus stands is insufficient and they lack basic facilities

Group/Stakeholder Tehsil Municipal Administration Sialkot Participant TMA Staff : Tehsil Municipal Officer , Tehsil Officer Infrastructure & Services, TMA

technical staff Sub Engineers, PPTA Team: Jawad Rauf Alan bird

Location Sialkot Date 1 April 2010 Key Issues Discussed: Initial discussion on Land Acquisition and Resettlement Processing Requirements TMO briefed on Land acquisition follow Pakistan Punjab Land Acquisition Rules (1983), the Land

Acquisition Act (1984), and PKAA (1986/1992) Detail discussion on water supply network and water contamination issues Initial discussion about tubewell inventory


Project Manager Urban Unit , Senior Urban Planner , Urban Planner, Finance Specialist PPTA Team: Peter Dawes, Tanawwur Ali Hyder, John W. Leonardo, Imran Yousaf Zai. , Jeffery Stubbs, Izhar ul Haq

Location Lahore Date 1 April 2010 Key Issues Discussed: Key findings of existing studies relating to the urban areas in Punjab for urban planning, WSS, SWM,

urban transport and municipal finance Success factors and constraints in urban development and urban services delivery Policy, institutional, legal and regulatory frameworks; operations and financial management capacity;

service operations and sustainability; capital projects management and implementation capacity, including procurement capacity, capital investment patterns; and pricing and tariff policy

Tariff policies and their implementation and options


Senior Urban Planner , Urban Planner, Transport Specialist, Solid Waste Management Specialist, Environment Specialist PPTA Team: Izhar ul Haq , Jeffery Stubbs, Imran Yousaf Zai.

Location Lahore Date 2 April 2010 Key Issues Discussed: Following are the main points of discussion: Geographic coverage of 11 PCIIP Cities Available information of 11 PCIIP cities with Urban Unit PPTA team should visit to Sargodha, Sheikhpura and Gujrat to get an overview of existing situation




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Senior Urban Planner , Urban Planner, PPTA Team: Jeffery Stubbs, Imran Yousaf Zai, Tanawwur Ali Hyder

Location Lahore Date 2 April 2010 Key Issues Discussed: Following are the main discussion points: Major weaknesses in Sialkot TMA financial management practices Sialkot TMA uses a manual single-entry accounting system. This is inappropriate for a city the size of

Sialkot. The absence of a robust computerized financial management information system is a major impediment to

efficient management of revenues that are determined by the Sialkot TMA under the Punjab Local Government Ordinance. .

The Sialkot TMA budget is prepared in a very simple manner on an input basis. Negligible guidance is

given to departments on budget preparation who have little participation in developing budgets. Own self-revenue forecasts are frequently inflated at the request of local politicians giving rise to revenue and expenditure projections that have little credibility and result in material variations between budgeted and actual revenues and expenditures. The absence of any strategic plan results in no multi-year perspectives being available to guide capital expenditures incorporated in the Annual Development Program. Capital expenditures are consequently allocated across activities based on the preferences of local elected representatives whilst strategic priorities are ignored. Limited funds are allocated to the repair and maintenance of assets.

The quality of accounting and reporting is poor. There are material weaknesses in the reporting of cash balances. There is currently no systematic in-year reporting system for monitoring revenue and expenditure trends. External reporting is poor. Annual development program expenditure is not reported on a segmented basis, consistent with general practice across Punjab TMAs.

No robust cash receipts and payment forecasts are prepared preventing any effective analysis and reporting of cash flows.

A June 2008 special audit report on the Sialkot TMA points to procurement activities being problematic, particularly for Citizen Community Board expenditures.

The Sialkot TMA has failed to comply with the regulatory requirement to establish an Internal Audit Office. The TMA Sialkot Council gives little detailed consideration to the contents of the budget. Public

participation in the budget process is modest and public consultation practice is very limited. At present, the TMA Sialkot Council does not consider any external audit reports.

A financial management improvement program (FMIP) will be required for Sialkot TMA to improve

financial management systems, processes and procedures; build capacity of all financial management staff and introduce an IT culture into financial management in Sialkot TMA.


Project Manager, Senior Urban Planner, Urban Planner PPTA Team: Tanawwur Ali Hyder, Peter Dawes, John W. Leonardo

Location Lahore Date 2 April 2010 Key Issues Discussed: Financial Management issues involved in corporatizing and establishing Sialkot Water and Sanitation

Company Key initial reporting requirements for SWSC should be the following:

1. Monthly, quarterly and half-yearly financial statements; 2. Profit center and cost center reports against budget; 3. Disbursement reports; 4. Capital expenditure reports; 5. Billing and Collection reports; 6. Aged analysis of receivables and payables; 7. Reports to the independent verifier under the asset management agreement, and on operational

support funding.




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Group/Stakeholder Tehsil Municipal Administration Sargodha Participant TMA Staff : Tehsil Municipal Officer, Tehsil Officer Infrastructure & Services, Tehsil

Officer Finance PPTA Team: Imran Yousaf Zai

Location Sargodha Date 7 April 2010 Key Issues Discussed: Secondary financial data (budget books, tax schedule, etc collected and discussed There is no proper HRM practices followed. TO (Finance) is not appropriately trained for efficiently managing the municipal finances Weak link between capacity development and professional growth, poor salary structure and lack of

performance management and insufficient human resources. Implementation of planning criteria set by the government is weak and the concept of integrated planning

approach does not exist. According to the PLGO, the local governments function in accordance with the policies of the provincial government. However, there is no communication/ intimation about the provincial government’s strategy or policy or development direction on any specific issue.

Group/Stakeholder Tehsil Municipal Administration Gujrat Participant TMA Staff : Tehsil Municipal Officer, Tehsil Officer Infrastructure & Services, Tehsil


Location Gujrat Date 8 April 2010 Key Issues Discussed: Following are the main points discussed: No system, staffing or incentives for urban planning and management Weak link between capacity development and professional growth, poor salary structure and lack of

performance management and insufficient human resources. Implementation of planning criteria set by the government is weak and the concept of integrated planning

approach does not exist. According to the PLGO, the local governments function in accordance with the policies of the provincial government. However, there is no communication/ intimation about the provincial government’s strategy or policy or development direction on any specific issue.

Problem of capacity (lack of planning professional); lack of a comprehensive database of municipal schemes and requirements; maps, master plans,

infrastructure development plans and network maps, etc.; lack of consultation in preparing development plans and schemes; Lack of financial resources; and, present allocation process where instead of need-based allocations,

equal amount for development schemes to all councillors is considered to be the ideal criteria (resulting in small scattered schemes usually of around Rs 200,000) which do not have much impact on the overall situation of the city or the tehsil.

Group/Stakeholder Tehsil Municipal Administration Sheikhupura Participant TMA Staff : Tehsil Municipal Officer, Tehsil Officer Infrastructure & Services, Tehsil


Location Sheikhupura Date 9 April 2010 Key Issues Discussed: Secondary financial data (budget books, tax schedule, etc collected and discussed Absent or inefficient municipal service providers; Inadequate infrastructure, inappropriately designed for operational requirements; Little focus on cost recovery and own-source revenue generation, and No system, staffing or incentives for urban planning and management Weak link between capacity development and professional growth, poor salary structure and lack of

performance management and insufficient human resources. Problem of capacity (lack of planning professional);




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Lack of a comprehensive database of municipal schemes and requirements; maps, master plans, infrastructure development plans and network maps, etc.;

Lack of consultation in preparing development plans and schemes; Employees working at their position have not proper knowledge about their duties because no training has

been given to them ever. There is no planning & coordination at any level All the officers have a little knowledge about Local Govt. ordinance 2001. There is no communication at any level Trained expertises are not available, or if available they are not on proper places. No one adopts or knows about double entry system. Local Fund Audit is not effective. Or their observations are not followed. Reconciliation of schemes is not done. TMOs generally not observers that how much they have utilized and do not reconcile... There should be centeralized data base at the provincial level or at federal level so that corruption can be

omitted.

Group/Stakeholder District Government Sialkot Participant District Officer Transport,

PPTA Team: Khushal khan

Location Sialkot Date 1 7 April 2010 Key Issues Discussed: The following are the main discussion points: The use of inappropriate vehicles for many services adds to the problems of the road system. In general

terms the system is able to cope with present requirements, albeit very inefficiently, but with the rapid expansion of the city the system will soon become incapable of meeting requirements unless appropriate measures are taken soon.

A number of measures have been taken in recent years, and others are planned. These include improvements to the transport infrastructure, principally improvements to the road system

Road traffic in the urban areas suffers not only from the deficiencies of the road system mentioned above, but poor traffic management seriously compounded by poor discipline and non-compliance with regulations. There is particularly heavy congestion in the CBD due to intensive commercial activities, and a shortage of proper parking places.

The mix of motorized and non-motorized traffic on all roads in the city (apart from the motorway where regulations are well enforced) reduces traffic flow significantly. In addition to non-motorised traffic such as tongas, donkey and bullock carts, slow vehicles, mainly qingqis and rickshaws, tend to use all lanes of multi-lane roads so that the speed of all traffic is often reduced to that of the slowest.

Driving standards generally are poor also, with a lack of compliance with regulations. In particular, observance of speed limits is almost non-existent, with many vehicles driving at more than double the speed limit, even on congested city roads.

Over-loading of trucks is widespread and creates particularly serious problems. Not only is an overloaded truck very dangerous, but it causes damage to road surfaces, particularly on those which are heavily used by trucks, or minor roads constructed to lower standards.

Unless effective measures are taken, these problems will increase as vehicle ownership and traffic volumes increase: in recent years the number of registered vehicles in Punjab has increased at a rate of more than 10% each year.

Transport impacts on the environment in a number of ways. Atmospheric pollution from exhaust emissions is one of the more obvious issues but noise and visual pollution as well as safety considerations are also significant. All of these have implications regarding public health, and longer-term climatic implications.

The Environment Protection Department of the Punjab Government has already taken measures to reduce exhaust emissions by prohibiting the use of two-stroke rickshaws and qingqis, and by providing loans to owners of two-stroke vehicles to replace their engines with four-stroke CNG-powered engines. However, there are still a considerable number of vehicles with two-stroke engines which are operating illegally.

Poverty alleviation is one of the most important policies of the Pakistani Government and international donors, and good transport is a key factor in this respect. The requirements of women and disadvantaged sectors of the community are also recognised as a key issue. These too have been taken into consideration in selecting suitable projects for possible implementation.

The institutional framework for the delivery of transport services and infrastructure in Sialkot is confused, with numerous agencies with overlapping and sometimes conflicting roles. The resulting problems are compounded by a shortage of capacity, in particular technical capability, and limited budget.




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The regulatory framework has weaknesses also. Several of the traffic regulations are obsolete and ineffective, while enforcement of regulations is extremely weak in many areas.

There is no clear comprehensive national or local policy for transport. The general focus of transport legislation and other interventions indicates that the government is interested in improving the flow of motor traffic throughout the road network, in regulating the supply of public transport through route licensing and control of fares, and to reduce the impact of vehicle emissions through encouraging the use of CNG-powered vehicles

Group/Stakeholder Cantonment Board Participant Cantonment Board Staff : Technical staff /Engineers

PPTA Team: Malik Aslam , Jawad Rauf, Kevin Tayler, Khushal Khan

Location Sialkot date 17 April 2010 Key Issues Discussed: Following are the salient points from the meeting:

Meeting began with the introduction of PCIIP and overall objective of the project with introduction of the

consultant team In the cantonment area Water supply and Sanitation services are being managed by Cantonment Board. No direct link with TMA planning Boundary of Cantonment area was discussed Water supply and sanitation services coverage Water supply and sanitation consumers Details of Water supply and sanitation infrastructures and future plan Water quality and consumers complaints Tariff for municipal services Domestic wastewater is discharged to septic tanks Saddar Bazaar area is mainly commercial and high density. This area is currently drained by open and

covered drains discharging to the Bhaid Nullah. The remaining area is served by a good network of storm drains.

Details of Human and financial resources and utilities bills Process of registration of water connection Urban Transport system in Cantonment areas Traffic Management, Bus / van terminals

Group/Stakeholder Tehsil Municipal Administration Sialkot Participant TMA Staff : Tehsil Municipal Officer, Tehsil Officer Infrastructure & Services, TMA

technical staff Sub Engineers PPTA Team: Malik Aslam, Khushal Kha, Alan Bird.

Location Sialkot Date 1 7 April 2010 Key Issues Discussed: Brainstorming was done on Environmental Criteria for Additional Subproject Selection


Project Manager, Senior Urban Planner, Urban Planner, Solid Waste Management Specialist PPTA Team: Izhar ul Haq , Jeffery Stubbs, Tanawwur Ali Hyder and Allen Bird

Location Lahore Date 1st May 2010 Key Issues Discussed: First draft of Urban planning report was shared and following points were discussed: Maps of Sialkot city Approach of Urban growth analysis




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Projection of Populations Urban Analysis – Development Challenges – Opportunities And Constraints Patterns and Physical Features Punjab Land Use Rules Key Reasons for Past Failures Sialkot Master Plan 1996 Strategic Development Planning Framework Action Plan - Road Map And Delivery Strategy


Project Manager, Senior Urban Planner, Urban Planner, Solid Waste Management Specialist, Environment Specialist PPTA Team: Allen Bird, Nicholas Allen

Location Lahore Date 1st May 2010 Key Issues Discussed: First draft of Solid waste management strategy and Action and action plan was shared and following was discussed: Existing Practices and Challenges Existing dump sites and proposed Landfill sites Key Points on Existing Situation Solid Waste Management Strategy Tranche 1 SWM Investment Package (2010-12) Tranche 2 SWM Investment Package (2013-15) Overview of Action Plan Overview of Proposals Cost Estimates Sialkot Waste Assessment Survey A detailed discussion was undertaken on the Landfill site of Sialkot, its location, technology to be adopted

financial and human resource requirements


Project Manager, Senior Urban Planner, Urban Planner, Solid Waste Management Specialist, Environment Specialist PPTA Team: Jawad rauf, Allen Bird

Location Lahore Date 3st May 2010 Key Issues Discussed: First draft of water and sanitation strategy and action plan was shared and following points were discussed: Maps of Sialkot city Key Points on Existing Situation Vision and strategy Proposed Sub-Projects and Technical Assistance Inputs Potential Constraints and Risks Water Supply Sewerage and Drainage Analysis Water Supply Options Sewerage, Drainage and Wastewater Treatment Options Institutional Options Overview of Action Plan Overview of Proposals

Supply of Equipment for Sewer Maintenance Rehabilitation of Model Town Wastewater Pumping Station New collector Sewer Along Khawaja Safdar Road Rehabilitation of Main Pumping Station at Mianpura New branch Sewers in Fatergarh, Pasroor Road and Paris Road Areas




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Institutional Development Follow-up Initiatives: Water Supply and Sanitation Procurement Approach and Tranche 1 Contract Packages


Project Manager, Senior Urban Planner, Urban Planner PPTA Team: Peter Dawes, Jawad, Izhar ul Haq Alan Bird, Tanawwur Hyder

Location Lahore Date 5st May 2010 Key Issues Discussed: Urban Planning and Municipal Finance

Low planning capacity in TMA and inadequate coordination with higher levels about planning issues No planning framework in TMA to streamline the urban growth No computerised property information system PLGO planning framework is underdeveloped Very weak financial management in TMAs No simple financial management guides available to TMA staff Senior TMA staff have little corporate governance capacity Local government, property tax and related legislation should be modernized


Project Manager, Senior Urban Planner, Urban Planner, Solid waste Specialist PPTA Team: Peter Dawes, Jawad, Izhar ul Haq Alan Bird, Tanawwur Hyder

Location Lahore Date 6st May 2010 Key Issues Discussed: Water, Wastewater and Solid Waste Management No effective accountability in delivery of urban water and SWM services Water and SWM services are not financially viable at present Limited coverage for water and SWM services No proper disposal of household or medical waste


Project Manager, Senior Urban Planner, Urban Planner, Transport Specialist PPTA Team: Peter Dawes, Izhar ul Haq Alan Bird, Tanawwur Hyder

Location Lahore Date 7st May 2010 Key Issues Discussed: Urban Transport Strategy 1: Reduce traffic congestion to and through cities Heavy traffic congestion within cities. Inappropriate use of existing road space Strategy 2 Make the roads Safer for pedestrians and other users Mismanagement of road space leads to vehicle/pedestrian/cyclist conflict Strategy 3: Improve conditions for bus passengers Existing bus station is congested and ill planned, causing delays to operators and passengers Strategy 4: Improve conditions for bus passengers Management of the transport sector is complicated and unclear




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Group/Stakeholder People around road junctions

Participant PPTA Team: Malik Muhammad Aslam

Location Sialkot

Date 13 May 2010

Key Issues Discussed: Different persons available at the site of theses road junction were consulted during the site visit. These persons were vendors, hawkers, day sellers etc. When they were consulted about the Sialkot Urban Junction Project, they replied that they are happy about the developmental work and they will move to the other places as they have no permanent structure over there. They are highly mobile and they keep selling things on cycles, wheeled carts / Mobile stalls on the road side.

Group/Stakeholder District Government Sialkot

Participant DO Environment PPTA Team: Allen Bird, Dr. Irfan Khan

Location Sialkot

Date 13 May 2010

Location Sialkot

Key Issues Discussed: The main environmental concern was the disturbance during constructions, mainly dust and blockage of

access. Mismanagement in water supply has been a common concern. The quality of water supplied to the citizens has deteriorated significantly. The ‘quality’ is mainly indicated

by presence of suspended solid (silt) in the water. The other common concern is contamination from sewer lines. This takes place due to leakages in

pipelines. As the sewer lines are often laid in the same corridor, the wastewater seeped from the sewer gets into the water pipeline when it is depressurized.

Alternate drinking water supply developed in the towns is groundwater wells and hand pumps. However, some respondents indicated that the water table is going down rapidly and if the water supply situation is not rectified, the alternate source may also not be available for very long.

As TMA provides water on rotation basis and most of the supply is through electric pumps, the power outages affects TMA’s supply to various localities scheduled in the power outage duration. Further, the residents are also dependent on power for storage of water to OHT. Lack of power also results affects their ability to store water even if water supply from water treatment plant is provided.

Group/Stakeholder District Government Sialkot Participant DO Environment

PPTA Team: Allen Bird, Dr. Irfan Khan

Location Sialkot Date 13 May 2010 Location Sialkot Key Issues Discussed: Communities living near waste disposal sites are often concerned about its impact. A general concern is

that waste disposal in their neighborhood will be a source of disease. It is often felt that the communities, their children and their livestock would be affected by the spread of diseases.

Odor is normally a concern but the recommended site already has a serious odor problem from the tanneries.

There is often a concern that crops on the surrounding fields may be affected by the waste disposal. The risks to the community associated with the construction work will need to be minimized. Concern is raised about the responsibilities for implementing mitigation measures and how effective these

are likely to be.




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Group/Stakeholder Urban Unit Planning & Development Department Participant Urban Unit Team:

Senior Urban Planner , Urban Planner, Finance Specialist PPTA Team: Azeem Ullah Qureshi

Location Lahore Date 26 May 2010 Key Issues Discussed: Following are the salient points from the discussion: The current practice in TMAs is to divide works into very small packages, typically worth Rs1 to 2 million

and rarely exceeding Rs5 million. In order to ensure that the ambitious project implementation goals are met, there is a need to explore the

options for providing support to contractors and consultants during contract implementation. The PMDFC has worked closely with contractors and supervision engineers to introduce improved project monitoring systems for the PMSIP projects and this has resulted in a clear reduction in contract over-runs. This initiative could be expanded to cover PCIIP contracts.


Project manager Senior Urban Planner , Urban Planner ADB Team: Kathie Julian PPTA Team: Khatib Alam, Jawad Rauf,

Location Lahore Date 26 May 2010 Key Issues Discussed: Following are the salient points from the discussion: Discuss the key requirements for loan agreement document Idea of regional utility company concept and how it could work was discussed in detail Financial disbursement of the loan program was discussed in detail


Urban Planner, Transport Specialist PPTA Team: Khushal Khan

Location Lahore Date 29 May 2010 Key Issues Discussed: Following are the salient points from the discussion: Transport sector project preparatory requirements relevant to Sialkot Assess infrastructure and service delivery conditions of

urban transport systems in the city.

Design commercially sound, sustainable urban transport services systems. Design and organize public-private partnerships for urban transport projects and investments. Plan public transport networks including motorized and non-motorized modes of transportation. Design public transport infrastructure and plan for mass transport systems. Formulate an Urban Transport Strategy and Action Plan, including public transports plan, drawing on city

strategy and setting out the desired long-term objective, and a series of investments over the short-, medium-, and long-terms to achieve the objective, the required operational reforms, and tariff implication.

Assist the team leader in conducting wide-ranging, gender-inclusive stakeholder consultations with Government and civil society, including NGOs and the




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private sector, to reach consensus on Plan

Group/Stakeholder Urban Unit Planning & Development Department and SEBCON Participant Urban Unit and SEBCON Team:

Senior Urban Planner , Urban Planner, Mr Shafi PPTA Team: Jeffery Stubbs, Jawad rauf

Location Lahore Date 29 May 2010 Key Issues Discussed: Following are the salient points from the discussion:

Terms and condition of the WTP survey and SEBCON responsibility Sample size and survey arrangements Work plan and report with analysis Questionnaire developed by SEBCON was shared with the Urban unit and TMA Sialkot


Annex A 12

Summary Poverty Reduction and Social Strategy


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ANNEX A12: SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

Country and Project Title: PAK: Punjab Cities Improvement Investment Program Lending/Financing Modality:

Multitranche Financing Facility (MFF)

Department/ Division:

Central and West Asia Department /Social Sectors Division

I. POVERTY ANALYSIS AND STRATEGY

A. Link to the National Poverty Reduction Strategy and Country Partnership Strategy Pakistan's Poverty Reduction Strategy Paper, the 2005 Medium-Term Development Framework (MTDF 2005–2010), and Vision 2030, together identify economic growth, improved governance, devolution, and human development essential to reduce poverty. The MTDF also prioritizes investments in balanced rural and urban development, upgrading physical infrastructure, achieving the Millennium Development Goals (MDG), and supporting private sector development (PSD). The proposed Punjab Cities Improvement Investment Program (the investment program) is fully consistent with these national objectives. The investment program focuses on (i) developing efficient, and reliable water supply, sanitation (WSS) and solid waste management (SWM) services; (ii) leveraging private sector partnerships (PPP) and PSD for better performance; (iii) contributing to achieving MDGs, especially MDG 7; (iv) supporting governance reforms; and (vi) improving physical infrastructure as required for improved urban services. Improved WSS and WSM contribute to improved living standards including improved health, which are recognized as core elements of human development, and as such are important for urban economic growth. The investment program’s focus on intermediate cities supports economic growth in urban economic hubs, counteracts urban pollution, and secures safe drinking water for an increasing urban population. ADB's Pakistan Country Partnership Strategy (CPS) 2009–2013 supports sustained economic growth and poverty reduction through four main strategic areas (energy, infrastructure, reforms, and urban services), and one cross-cutting area (improving project implementation). The investment program directly links to four of these priority areas: urban services, infrastructure, reforms and improving project implementation. The investment program supports fundamental reforms in policies and institutions responsible for basic urban service delivery and improves related infrastructure in WSS, SWM and urban transport. The CPS also supports key themes, including capacity building, governance, and fiduciary standards, gender mainstreaming, environment and climate change, and PSD. The investment program is fully consistent with these thematic thrusts. B. Poverty Analysis Targeting Classification: Targeted intervention—MDGs (TI-M) Key Issues. United Nations Human Development Report (2009) places Pakistan at 141 out of 182 countries on the Human Development Index (HDI), and at 101 out of 135 countries on the Human Poverty Index (HPI-1).25 Pakistan has a population of 169 million, making it the world's sixth most populous country. 33% of the population lives below the poverty line.26 Poverty Headcount Estimates show that of the four provinces in the country, Punjab has the lowest incidence of poverty, where urban poverty stands at 30%. Punjab is Pakistan's most populous province and its largest economy. The province has a population of 73.6 million, out of which 70% lives in rural areas. According to government sources, poverty varies significantly across Punjab, with the highest incidence in the south. According to the Punjab Poverty Reduction Strategy Paper (2003), the poor tend to have large households characterized by a lack of access to sanitation facilities and safe drinking water. Half of Punjab's total urban population lives in five northern cities that are categorized as being low-deprivation areas and most Punjab districts fall in the medium development range on the HDI. According to official estimates, 95% of the water supply in Punjab is not properly treated and 43% of the population has no access to a sewerage system. SWM facilities are available to only 14% of the urban population. There is no cohesive transport policy in place at the provincial level. Roads are heavily used and have poor safety records. When combined, these numbers reflect a lack of capacity of most Punjab city governments in providing the required levels of sewage treatment facilities, clean water, electricity, and gas and road access to support urban development. The first tranche of the MFF is to serve Sialkot, the third largest industrial city of Punjab and the second largest foreign exchange earner for the country. Situated in the northeast of Punjab, it is a vibrant business center with an existing industrial and agricultural infrastructure, including an international airport and an Export Processing Zone. As a result, Sialkot is officially classified as a low deprivation district in Punjab. According to UNDP classification, Sialkot falls in the medium level of development category with an HDI of 0.6882 and an annual growth rate of 2.4%. Sialkot is also reported to have one of the highest per capita incomes in a Pakistani city, and ranks fifth amongst 36 Punjab districts for low poverty incidence. In 2008, Sialkot had a population of 534,000, which is projected to double in the next 35 years at a population growth rate of 1.98%. The city has grown tremendously, especially the industrial production areas, and is now spread in areas outside the former

25 Government of Pakistan. Population Census Organization. 26 The World Bank. South Asia Data.


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municipal limits putting immense pressure on existing municipal infrastructure, which is inadequate and unable to meet current demand. Design Features.

1. Large scale public awareness and community mobilization plan designed 2. Ten Low-Income Community Care Centers (LICCC) to be established in low-income neighborhoods to

ensure service delivery feedback by the poor especially women 3. Ongoing implementation of a Citizen Report Card (CRC) 4. Willingness-to-pay (WTP) surveys (continuing after project implementation) to inform tariff schemes

(subsidies, staggered payments, tiered tariff structures for varied income groups, etc) to help ensure affordability and to design better targeted subsidies as needed.

C. Poverty Impact Analysis for Policy-Based Lending. n/a II. SOCIAL ANALYSIS AND STRATEGY

A. Findings of Social Analysis Key Issues. Sample results from Punjab intermediate cities show that government pipe connections are available to 14% to 55% of the urban households. The quality of water, however, is largely unfit for human consumption. Only 20% to 50% urban households have access to sewerage systems, while only 50% have municipal SWM services. The sampled intermediate cities however, have neither landfill sites nor any sewerage treatment plants (STP). The cities are further saddled with traffic congestion and underdeveloped public transport systems. Tranche 1 investment of the MFF will focus on Sialkot, a progressive business center, well-positioned to pilot innovation and jumpstart program implementation. Sialkot's rapid population growth rate has resulted in a rising population density that poses some critical problems in the area of provision of urban services. 70% of the population has no proper SWM facility and disposes of solid waste in open spaces. Services provided by the SWM department reach about 20% of the population. For a city that generates solid waste at the rate of 250 tons per day, there are only 0.23 SWM workers per 1000 population. In order to properly dispose of wastewater, only 27% of households are connected to the municipal sewer, 43% connect with open drains while 18% use open fields. The availability of clean water is one of the MDG goals highlighted as being critical to environmental sustainability and human health. Low income localities located near industrial areas specifically tanneries are facing multiple health problems such as gastrointestinal disorders, skin allergy, scabies, and respiratory disorders due to ground water contamination by tanneries effluent. The expansion of water supply and sewerage services and improved SWM and concomitant public and environmental health improvements will spread benefits among all inhabitants of the city, including the poor and especially women, for whom water supply and waste management are among the most critical needs. B. Consultation and Participation A stakeholder analysis and a number of stakeholder consultations were conducted during the poverty and social assessment under the PPTA. The primary and secondary stakeholders included the Sialkot TMA, local NGOs, industry representatives, and households/ end users of the WSS, SWM and transport services mainly in the low-income, middle income and poor localities. A Participatory Rapid Appraisal (PRA) approach has been utilized for the poverty and social impact assessment including stakeholder consultation workshops (conducted under the participation strategy), focus group discussion, and key informant interviews especially in relation to proposed program interventions addressing WSS, SWM, and urban transport. Special care was given to include the voice of the poor and women and solicit their feedback pertaining to the services identified for investment. 2. What level of C&P is envisaged during the project implementation and monitoring?

Information sharing Consultation Collaborative decision making Empowerment This will be achieved through the:

1. Establishment of Customer Care and Quality Assurance Division (CCQAD) at the service provider headquarters 2. LICCC (10 LICCCs) giving access to poor and especially women 3. Establishing an ongoing mechanism of CRC 4. Continuous WTP survey to inform development of appropriate tariff schemes

3. Was a C&P plan prepared? Yes No C. Gender and Development Key Issues. Pakistan ranks 99th out of 109 countries on the Gender-related Development Index.27 Women and girls face several significant socio-economic gender inequalities and have disproportionately low school enrollment rates, literacy rate (59%),28 control over and rights to property, and access to justice and to healthcare facilities. Women’s influential sphere is mostly limited to their reproductive tasks and they are as such responsible for the family’s water supply, food preparation, solid waste disposal, caring for the young,

27 UNDP Human Development Report 2009. 28 http://www.unicef.org/infobycountry/pakistan_pakistan_statistics.html


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elderly and sick. Women depend on the male family members’ income. PCIIP will positively affect women in Sialkot as they are the primary consumers of water, SWM and WSS, and their quality of life will be favorably impacted by more efficiently delivered urban services. Moreover the program will create job opportunities, capacity development and thus empowerment of citizen rights for women. The implementation of the MFF will keep in tune with the need for integrating gender concerns within all major aspects of implementation. An initial analysis of FGDs and field visits indicate that the women in Sialkot specifically belonging to the low-income section of the society are confronted with issues related to and arising from household wastewater disposal and management, disposal of solid waste, and lack of drinking water. ADB’s investment tackling these service delivery and infrastructure needs is critical to reducing women’s time spent on tackling such issues and thus freeing time for engagement in income generating activities and family time beside integrating women as stakeholders of the program and elevated their role from just reproductive to productive and decision making tasks. Women’s needs for reliable WSS and SWM services will be especially addressed in the program design and implementation. Key Actions. In addition to ensuring that a substantial number of respondents to stakeholder consultations are women, program design ensures that gender equality and women empowerment measures are included, such as:

1. Consultation and participation plan to include social mobilization and community participation specifically of women customers

2. CCQAD of service providers to ensure sex-disaggregated data collection and use for marketing purposes

3. LICCC (10 LICCCs) to be staffed at least 50% by women so as to enable neighborhood females to give feedback or solicit assistance without constraint

4. Training and capacity development of female employees 5. Design of public awareness campaign about program benefits especially catering to women as

household managers Gender plan Other actions or measures No action or measure

A Gender Action Plan has been prepared that outlines the strategy for gender mainstreaming in the investment program

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Issue Significant/Limited

/ No Impact Strategy to Address Issue Plan or Other

Measures Included in Design

Involuntary Resettlement

No impact. Resettlement Plan Resettlement Framework Environment and Social Management System No Action

Indigenous Peoples No impact. Indigenous Peoples Plan Indigenous Peoples Framework Environment and Social Management System No Action

Labor Employment

opportunities Labor

retrenchment Core labor

standards

. No impact. Civil works contracts will adhere to applicable labor laws and regulations. Loan assurances will include provisions against differential payment between men and women for work of equal value, and against child labor

Plan Other Action No Action

Affordability Limited impact. To be informed by the WTP survey and to some extent by the Socio-Economic Survey

Action No Action

Other Risks and/or Vulnerabilities

HIV/AIDS Human trafficking Others (conflict, political instability)

Limited impact. Political instability and civil unrest in Punjab Province may hinder timely implementation. MFF modality provides some flexibility in investment timing to accommodate such risks

Plan Other Action No Action

IV. MONITORING AND EVALUATION Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation? Yes No


Annex A 13

Environment Management Plan (for the Entire MFF)


Page 188

ANNEX A13: ENVIRONMENT MANAGEMENT PLAN (FOR THE ENTIRE MFF) The table below is a guide to be used by the Implementing Agencies for preparing subproject EMP under this investment program. Construction contracts cannot be awarded until the subproject EMP is approved by ADB and the Punjab EPA, the latter through the relevant District Office of Environment.

Project activity stage / aspect Subproject Potential impact Proposed mitigation

Measure Parameter to be

monitored Measurement and

frequency Entity

Responsible Implementation

schedule A – Project feasibility and site confirmation Subproject Location

All

Social and environmental alterations

Careful site / route selection to avoid existing settlements. Review IEE and EMP and confirm findings and recommendations

Site location as proposed in the RRP and IEE with respect to nearest sensitive receptors

Check with detailed design engineers and land owners – once during feasibility prior to detail design stage.

IAs Integral part of Subproject detailed design and project preparation.

All

Loss of productive Agriculture

Minimize need to acquire agricultural land

Site selection in urban area or on marginal land on urban fringe (as far as possible not agricultural land).

Consultation with local authorities and land owners during feasibility prior to detail design stage.

IAs Integral part of Subproject detailed design and project preparation

Subproject location changes

All

Non-compliance with subproject selection criteria.

Conduct REA to determine ADB Category. Review IEE and EMP and confirm findings and recommendations.

Categorization and submission of REA to ADB.

Prior to or latest during detailed design stage.

IAs Integral part of Subproject detailed design and project preparation

Subproject boundaries change

All

EMP insufficient to control impacts. Non-compliance with statutory requirements PEPA 1997.

Review IEE and EMP and confirm findings and recommendations. Disclose feasibility designs of subprojects to PEPA in advance to clarify IEE or EIA. Complete the environmental assessment process in line with PEPA and ADB Guidelines.

Submit REA, revised IEE/EIA and EMP to ADB. Obtain waiver for IEE from PEPA OR “Environmental Approval” from PEPA

Prior to signing of construction contracts.

IAs Integral part of subproject detailed design and project preparation.

B – Design phase and pre-construction Layout of facilities

All

Relocation of potential alterations or exposure to noise or safety

Check setback and location of noise sources with respect to sensitive receptors and design in accordance with good

Buffer distance to sensitive receptors sufficient as recommended in

Check setback distances to nearest sensitive receptors – twice during design

IAs Integral part of feasibility survey and detailed design.


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frequency Entity


schedule related risks. principles IEE with respect to

nearest sensitive receptors

and when layout plans are finalized.

Avoid utilities / interface management

All

Interruption of utility services

Utilities management coordinating committee

Maintenance of services

Continuous

IAs Throughout design and construction phases

Buffer Zone /distance Encroached

All

Buffer distance reduced creates potential alterations for neighbors/ sensitive receptors.

Check setback of facilities from sensitive receptors off site and re design in accordance with proposed buffer or include mitigation

% recommended buffer distance achieved. Inclusion of additional mitigation. Residual impacts > predicted in IEE

Twice Feasibility design and detailed design.

IAs Integral part of feasibility survey and detailed design.

Equipment location and design

All

Exposure to noise, Alteration to neighboring properties.

Design and location of subproject to comply with NEQS regulations and World Bank guidelines.

Check potential performance of proposed vehicles/equipment

Check proposed equipment is actually included through purchase and usage inventory

IAs Part of detailed design, commissioning and operational monitoring.

Involuntary Resettlement or land acquisition (if unforeseen requirement emerges)

All facilities Social inequities Compensation paid for temporary/ permanent loss of productive land as per land laws and its process as specified in RAP.

RAP implementation

Consultation with affected parties – once in a quarter.

IAs Prior to Construction phase.

Interference with Drainage patterns /Irrigation channels

All facilities Flooding hazards / loss of agricultural production

Appropriate location of facilities to avoid interference with irrigation channels

Significant distance to nearest flood zone, irrigation channel

Consultation with local irrigation authorities and design engineers - once

IAs Part of project preparation and site selection, detailed alignment survey and design

Release of polluting materials

All plant Equipment

Environmental pollution

Plant and layout designed and equipment selected to ensure compliance with NEQS and prevent runoff.

Equipment specifications with respect to potential pollutants.

Tender document to include detailed specifications - once

IAs Part of detailed equipment design selection and design drawings

Release of polluting

All Environmental pollution

New sites and facilities to include drainage and sewage

Drainage and sewage

Tender document to include detailed

IAs Part of detailed equipment


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frequency Entity


schedule material disposal systems to avoid

offsite land and water pollution. design specifications - once design

selection and design drawings

Equipment submerged under flood

All plant equipment

Contamination of land and water sensitive receptors

Appropriate sitting and facilities constructed above the HFL or design to raise the foundation pad (see also drainage).

Facility design to account for HFL (elevation with respect to HFL elevation)

Base height as per flood design - once

IAs Part of detailed layout and design /drawings

Explosions/Fire All facilities Hazards to life Locate and design facilities to include fire breaks / walls and modern fire control systems/firewalls.

Design compliance with fire prevention and control codes

Tender document to specify detailed design requirements–once

IAs Part of detailed layout and design /drawings

Facility location All Visual impact Facilities not to be located near critical or sensitive areas or national monuments in areas with potential tourist activities. Soft landscaping.

Trees and soft landscaping included in design. Meaningful and appropriate to mitigate visual impact.

Trees and landscaping planted and maintained

IAs Detailed designs And commissioning.

Tree preservation

All Unnecessary loss of trees

Tree survey during detailed design.

Trees identified and marked.

Trees to be retained and maintained


Environmentally responsible procurement

All Operational environmental pollution

Choose non polluting equipment

Checked equipment specifications and performance with company certificates /accreditations.

During product acquisition, prior to purchase

IAs Detailed designs and commissioning.


All Impact at decommissioning. .

Checked equipment specifications and performance with company certificates / accreditations.

Specify equipment not to contain POP, asbestos, other hazardous or toxic components

During product acquisition, prior to purchase.



All Environmental management

Contractor to submit Method Statement and schedule of environmental mitigation measures with tender. Techniques and machinery selection to minimize impacts and duration of works

Check Method Statement and proposed mitigation measures and timing.

During tendering. IA’s Contractor through contract provision.

Tender period

C- Construction


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frequency Entity


schedule Equipment layout and installation

All Noise and vibration.

Construction techniques and machinery selection seeking to minimize vibration through ground disturbance and minimize duration of works.

Construction techniques and machinery in line with contractual requirements and contractors method statements.

Construction techniques and machinery creating minimal ground disturbance - once at the start of each construction phase.

IA’s Contractor through contract provision.

Construction period

Physical construction

All Disturbed commercial and community activities.

Construction activities timed to optimize minimum disturbance and alterations.

Timing mitigation with respect to community activities and requests. Complaints received by local authorities.

Once every month include in progress reports.


Construction period

Mechanized construction

All Noise, vibration and operator safety, efficient operation

Construction equipment to be well maintained with noise suppression / acoustic insulation. Erect local site hoarding as necessary.

Construction equipment – noise levels.

Complaints received by local authorities –once every month


Construction period

All Noise, vibration, equipment wear and tear

Turning off plant not in use. Erect site hoarding.

Construction equipment– estimated noise levels and operating schedules

Complaints Received by local authorities – once every month


Construction period

Excavation by hand tools or other means

All Dust increases.

Erect site hoarding, damp down exposed surfaces and stockpiles to keep moist. Cover open ground / stockpiles when construction not active

Hoarding installation, covering works and frequent damping.

Site check weekly /report monthly

IAs to check weekly and report monthly. (Contractor requirement through contract provisions).

Construction period

Construction of access roads and hoardings

All Increase in airborne dust particles

Use existing roads and tracks for construction and maintenance access to sites wherever possible

Access roads, routes (length and width of new access roads to be constructed).

Use of roads established in contract as suitable – once every month


Construction period

All Increased land requirement for

New access ways should be minimal disturbance and

Disturbance and access width

Every month – include

IA’s Contractor

Construction period


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frequency Entity


schedule temporary access/construction

restricted to a single carriageway width with passing bays and shortest distance from existing road to site.

(meters) as agreed with contractor. Complaints.

in progress report. through contract provision.

Site preparation All Temporary blockage of drainage.

Temporary placement of cleared top soil: Not placed to obstruct drains/canals.

Temporary fill placement (m3) and location.

Check no impact (e.g. on sensitive drainage areas - every month – include in progress report.


Construction period

Site clearance All Vegetation Marking of vegetation not to be removed prior to clearance, and strict control on clearing activities to ensure minimal clearance. Cleared vegetation not to be burned.

Vegetation survey, marking and clearance control (area in m2) – monitor and inspect.

Clearance strictly limited to target route/site and minimum working areas- every month when works are commencing on a particular route/site.

IAs (Contractor required in contracts to provide “site clearance plan” as line item before opening new works) prior to handover.

Construction Period

Trimming/cutting of trees within RoW/site boundary

All Safety hazards and Conservation to be balanced.

Retain trees and maintain trees unless unsafe to do so. Trees allowed to grow unless posing a safety hazard. Trimmings composted not burned.

Number of trees retained compared to the numbers cut.

Retained trees and maintained trees in RoW/ site vs trees identified at design stage – once per quarter


Construction period

All Felled trees and other cleared or pruned vegetation to be disposed of as authorized by the statutory authority but not burned.

Disposal of cleared vegetation as approved by the statutory authorities (area cleared in m2)

Use or intended use of vegetation as approved by the statutory authorities once per site


Construction period

Surplus earthwork/soil.

All Runoff to cause water pollution, solid waste disposal

Soil excavated from sites disposed of by placement along roadsides, or at nearby house / school /hospital gardens if requested by landowners

Soil disposal locations and volume (m3).

Acceptable soil disposal sites - every month in progress report


Construction period

Storage of All Contamination of Materials securely stored Location of Bulk materials stored IA’s Construction


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frequency Entity


schedule materials adjacent receptors

(land, water, air) above high flood level covered when not in use, at end of shift and at night

hazardous material storage.

on site extent covered and retaining boards – every month

Contractor through contract provision.

period

Storage of chemicals

All Accidental spillage of chemicals

Fuel and other hazardous materials securely stored and above high flood level.

Record usage. Spill records (type of material spilled, amount (kg or m3) and action taken to control and clean up spill)

Fuel and chemical storage in appropriate containers in appropriate locations preferably bunded or enclosed– every month


Construction period

Construction scheduling (considerate of Local circumstances).

All Noise nuisance to Neighboring properties. Interference with peak traffic hours on adjacent roads

Construction activities only undertaken during the day. If night working discuss with local communities to keep informed of the construction schedule. Avoid school exam times and religious festivals near schools and mosques

Public consultation and Timing of construction (noise emissions, [dB(a)]). Complaints and results feedback

Monthly audit of day time – nigh time construction scheduling and feedback of public consultation – every month

IAs (Contractor required in contracts to provide “site clearance and work schedule plan” as line item before opening new works) prior to handover.

Construction period

Provision of basic sanitary facilities for construction workers.

All Contamination of neighborhood, open defecation, litter, waste disposal.

Construction workforce facilities to include portable lavatories or arrange proper access to other toilets with adequate sanitation, water supply for washing. Regular litter collection and site waste disposal facilities. Portable chemical toilets acceptable.

Adequate amenities and cleansable facilities to be arranged prior to commencement of construction for workforce. Within 5 (five) minutes walk from all work sites and kept clean at all tines

Presence of proper sanitation, water supply and waste disposal facilities - one for each facility or one for each 500m of pipeline construction.


Construction period

Nuisance to nearby Properties

All Impacts on property value losses to neighboring land

Contract clauses to specify acceptable construction practices to mitigate alterations, noise, vibration

Monitor and enforce implementation of contract clauses versus milestone

Incorporating good construction management practices

IA’s Contractor through contract

Construction period


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frequency Entity


schedule uses. and dust impacts. payments for

mitigation (e.g. per m of hoarding installed effectively.

–once per month for each site/km of line under construction

provisions

All Use existing access effectively as much as possible.

Construction operating procedures and monitor complaints.

Incorporating good design engineering practices – once for each site. Check monthly.

All Productive land will be reinstated following completion of construction

Reinstatement of land status (area affected, m2) if necessary.

Consultation with affected parties – twice – immediately after completion of construction and after the first harvest

IAs Construction Period

All Social inequities Compensation will be paid for loss of livelihood due to construction disruption in line with ADB guidelines.

Prompt disbursement of compensation for lost income in line with RAP entitlement matrix. Monitor amount paid to whom, how and when.

Monthly monitoring with updated report – once in a quarter.


Complaints All Construction Activities

Set up complaints hot line, recording, response and resolution monitoring

Response time to rerecord, respond and resolve complaints

Complaints Received by local authorities – tally once every month


All Alterations to surrounding neighborhood.

Set up complaints hot line and response mechanism

Complaints number, location, validity, fraudulence, review of mitigation measures to improve environmental control.

Monitor total complaints weekly and investigate as soon as possible after complaint (call back within 2 days, site visit within the week). Document action and record resolution

IAs Construction period

Flooding All Flooding and Temporary drainage Submission of Check as line item IA’s Construction


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frequency Entity


schedule hazards due to construction impediments of natural drainage

damage to property, blocking of traffic through roads. Pedestrian access and spread of surface contamination

management plan (TDMP) to be submitted to CRC for acceptance by USC one month before commencement of construction in the relevant sector. Avoid drainage pattern facilities being disturbed / blocked / diverted by the ongoing construction activities. Other drainage mitigation measures, diversions, protection of drains.

TDMP as condition of contract clauses. Occurrence of flooding and any relevant complaints. TDMP to cater for worst case one in five (5) year flooding event. Review mitigation in flooding repeats.

before opening for each section/area of the works. Record flooding events monthly and report quarterly TDMP to be checked by qualified drainage engineer and accepted. Incorporating good construction management practices – monthly for each site.

Contractor through contract provisions

Period

Health and safety

All Injury and sickness of workers and members of the public

Contract provisions specifying minimum requirements for construction camps, if required

Contract clauses covering (number of incidents and total lost work days caused by injuries and sickness)

Contract clauses compliance – once every quarter

IA’s Contractor through contract

Construction period

All Contractor to prepare and implement a health and safety plan.

All Contractor to arrange for health and safety training sessions

First Aid All Minor injuries to workforce go unattended presenting risk to worker injured and co-workers.

First aid posts to be set up wit adequate sanitation (at least washing and dressing facilities) with first aid kits, one for every site or one for every 2km along the routes First aider to be trained in every contractor and sub contractor group to be present onsite every working day, or mobile clinic to be available onsite every with driver/ first-aider and trained nurse to man the mobile clinic. Record cause of accidents and investigate if hospitalization required.

Nomination of first aiders and setting up facilities. Contents of first aid kits. Test run response from mobile clinic. Check records of accidents.

monthly IA’s Contractor through contract provisions

Construction Period


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frequency Entity


schedule Injuries to workforce

All Avoid severe head injuries and foot injuries, especially in areas where overhead construction will take place.

monthly IA’s Contractor through contract provisions

Construction Period

Inadequate construction stage environmental monitoring

All Lack of monitoring may allow noise and dust to escalate, uncontrolled. Impacts may increase. No quantitative feed back prevents improvement of mitigation measures

Training of UU environmental monitoring personnel

Training schedules

Number of programs attended by each person – twice per year

IAs Routinely throughout construction period

All Implementation of effective environmental monitoring and reporting system using checklists of all contractual environmental requirements and EMP.

Respective contract checklists and Remedial actions taken thereof.

Submission of duly completed checklists of all contract requirements for each site – once

All Appropriate contact clauses to ensure satisfactory implementation of contractual environmental mitigation measures.

Compliance report related to environmental aspects for the contract

Submission of duly completed compliance Report for each contract – once

Commissioning All Visual impact

Facilities to have areas with soft landscaping.

Opportunity spaces for trees and soft landscaping to be included in the design.

Check trees and landscaping are planted and have been installed and maintained. Before last payment of contract.

IAs Commissioning.

D- Operation and Maintenance Noise Impacts All Nuisance to

neighboring properties

Facility sited and designed to ensure noise will not be a nuisance.

Noise levels (dB(A) to meet criteria agreed with PEPA.

Noise levels at boundary nearest to properties at intervals (or as agreed with EPA – quarterly in 1st year of operation

IAs During commissioning and 1st year of Operations

Inadequate provision of health and safety

All Injury and sickness of staff /workers

Careful design using appropriate technologies to minimize hazards

Usage of appropriate technologies (lost work days due to

Preparedness level for using these technologies in crisis – once each year

IAs Design and Operation


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frequency Entity


schedule training during operations to staff/workers

illness and injuries)


Raise safety awareness for staff.

Training/awareness programs and safety drills

Number of programs and percent of staff / workers and management covered – three times each year.

IAs Operation


Preparation of fire emergency action plan and training given to staff on implementing emergency action plan

IAs Operation

Operational Environmental monitoring.

All Environmental impacts and alterations are uncontrolled. Unexpected impacts go undetected.

IA’s staff to receive awareness training in environmental monitoring of project operations and maintenance activities.

Training/awareness programs and mock drills for all staff.

Number of programs and percent of staff covered – once each year

IAs Operation

Fire All Hazards to life and environmental pollution

Mandatory ban on any open burning of waste or other materials within site boundaries.

Smoke and burning on site.

Tender document to specify detailed design requirements fir fire suppression – once. Monitoring operator performance monthly

IAs Operational monitoring

ADB = Asian Development Bank, EIA = environmental impact assessment, EMP = environmental management plan, EPA = Environmental Protection Agency, HFL = highest recorded flood level, IA = implementing agency, IEE = initial environmental examination, NEQS = National Environmental Quality Standards, PEPA = Pakistan Environmental Protection, REA = rapid environmental assessment, RRP = Report and Recommendation of the President, RoW = right of way.


Annex A 14

Environment Management Plan (for SWM Component)


Page 198

ANNEX A14: ENVIRONMENT MANAGEMENT PLAN (FOR SWM COMPONENT)

Environmental Concern

Objectives Mitigation Measures (MM) Recommended Timing to Implement

(MM)

Locations to Implement

(MM)

Resp Implement

(MM)

Resp Monitor

(MM)

DESIGN STAGE

1. IEE Approval Compliance with PEPA 1997

Disclose SWM project and design to the EPA and clarify what documents are required to be filed with EPA to ensure compliance with Secion 12(1) of the PEPA, 1997.

Commencement of detailed design

Waste Collection Sites

Design Consultant , SWSC with UU Assistence

EPA

2. Noise, dust and Odor

To avoid adverse impacts due to noise, dust and odor

Noise, dust and odor mitigation measures will be reviewed once the detailed layout has been finalized and the mitigation measures will be revised and updated to take account of any new, modified, increased or unexpected impacts.

Completion of detailed design.

Routes of waste transport

SWSC TMA/EPA

3. Waste Containers

To avoid negative impacs due to waste container location

Wherever possible, waste containers will be positioned away from sensitive facilities such as schools, hospitals, religious facilities and water bodies such as canals, wetlands, and rivers. The waste containers will be located such that they do not block traffic or access to any house, business, or other buildings.

Waste container placement commities

All waste container sites

Design Consultant, SWSC with UU Assistence

EPA

4. Environmen-tally responsible procurement

Avoid operational environmental pollution and impacts upon decommissioning.

Contractor to submit Method Statement and schedule of environmental mitigation measures with tender. Contractor required to include techniques and machinery selection to minimize impacts and duration of works. Choose non polluting equipment. Specify equipment not to contain POP, asbestos, other hazardous or toxic components.

At tender stage and again during product acquisition, prior to purchase.

Tender evaluators to check contractors Method Statements and proposed mitigation measures and timing. Equipment specifications and performance with company certificates / accreditations.

Tender evaluators

SWSC

OPERATIONAL STAGE

5. Monitor project impact

To monitor impact of the project and take appropraite measures in case

Monitoring activities during the operation of the solid waste will focus on (i) volume of waste received; (ii) ambient air quality; (iii) groundwater quality; (iv) biogas emission; (v) efficiency of waste collection system.

Throughout operation period

waste collection sites SWSC TMA/EPA


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(MM)


(MM)

Resp Implement

(MM)

Resp Monitor

(MM) of any unexpected impact on the environment

6. Odor and pest Control odor and pests at the site

The design and other mitigation measures include: -No temporary storage of waste will take place in the open or in an area that is exposed to rainwater. -Unloading of waste will be planned in such a manner that the need for temporary storage at the site is eliminated. All incoming vehicles will unload the waste directly to the active working face. -Periodic disinfection will be carried out at the disposal site.

Operation period Solid waste collection sites

SWSC and management operator

TMA/EPA

7. Waste Dispersal To prevent waste dispersal from trucks and unloading areas

Waste will be transferred only in closed trucks The waste will be covered with soil as soon as possible after unloading In windy season, wind shields will be installed around the active pits.


SWSC TMA/EPA

8. Traffic To minimize impacts of waste collection vehicles on existing traffic

To avoid congestion on the road during operations, the movement of the waste collection vehicles is to be planned and managed in order to avoid peak traffic hours. A traffic management plan will be developed for the operations phase and for community safety. The measures will include: a) All waste collection vehicle drivers will undergo defensive driving training, following which they will have to pass a defensive driving test b) Speed limits will be set for the vehicles on the segments of the road passing through the populated area; c) Waste collection from densely populated areas will be avoided during the night. The following measures will be taken to ensure vehicles are mechanically fit: a) Waste collection vehicles will be designed so that waste


SWSC Traffic Police /TMA


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(MM)


(MM)

Resp Implement

(MM)

Resp Monitor

(MM) does not spill out during transportation b) Vehicles will be periodically inspected to ensure any damage or wear and tear is detected at an early stage c) Vehicles will undergo a periodic maintenance program to ensure that they are mechanically sound in all respects; and d) vehicles will be covered to prevent emission of odours.


Annex A 15

Environment Management Plan (for Urban Transport Component)


Page 202

ANNEX A15: ENVIRONMENT MANAGEMENT PLAN (FOR URBAN TRANSPORT COMPONENT)

Environmental Concern Objectives Mitigation Measures Recommended

Time to Implement


Responsiblity for

Implementation Responsible

for Monitoring

DESIGN STAGE 1. Project disclosure

Ensure statutory compliance with PEPA 1997

Disclose project and design to the Punjab EPA and clarify what documents are required to be filed (if any) with EPA to ensure compliance with Pak-EPA (Review of IEE/EIA) Regulations, 2000.

Commencement of detailed design

All transport sector works in the Tranche 1 program for Sialkot

Design consultant

TMA and Program management support consultant firm at UU

2. Buffer distance Ensure sufficient buffer distance to any sensitive receivers to prevent nuisance and achieve safety criteria.

Detailed designs to assess and include appropriate layout to allow setback of noisy construction machienary from Sensitive Receptors (SRs) to prevent nuisances.


All all sites Design consultant


3. Subproject detailed design.

Ensure EMP is sufficient to control impacts and compliance with statutory requirements of PEPA 1997 and ADB Environmental Policy and Guidelines

Revise IEE and update EMP and obtain written agreement by the Executing Agency (EA) to implement the Environmental Management Plan (EMP). Ensure government clearance certificate for IEE/EMP from Punjab EPA, and other required permits/approvals (tree cutting, etc) are obtained. Review IEE and EMP, if required, and confirm findings and recommendations. Submit the revised IEE and updated EMP to ADB for review and clearance prior to issuance of bidding documents for civil works. Complete the environmental assessment process in line with PEPA and ADB Guidelines. Obtain environmental clearance.


All sites and facilities

Design consultant


6. Retain trees and landscape designs

To avoid negative impacts due to the unnecessary removal of trees

1. Detailed design to avoid tree removal unless justified on engineering, safety and environmental grounds. 2. Landscaping with trees and shrubs shall take place at appropriate places as an enhancement.

1. Detailed design output.

At all sites and facilities

Design consultant


7. Noise control Ensure noise impacts are acceptable in the operational phase.

1. Detailed design stage, sound canopy is to be provided with any noisy machinary in order to prevent nuisance.

1. During designing stage no later than pre-qualification. 2. Include in the contract.

At the places where generators are provided.

Design consultant.



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Time to Implement


Responsiblity for

Implementation

Responsible for Monitoring

8.Traffic Condition Plan to minimize disturbance of vehicular traffic and pedestrians during construction.

1. Avoiding blocking existing road access where possible. 2. Design provisional temporary traffic management plan for updating by the construction contractors one month prior to start of works. 3. Proximity of schools and hospitals to be considered. 4. Installation of traffic warning signs and enforcment of traffic regulations during transportation of materials, equipment and machinery. 5. Plan requirements to assign dedicated traffic control personnel.

During detailed design

The most important locations to be identified and listed in revised EMP. Relevant plans and possible hot-spots to be made available to the Contractor with tenders.

Detailed design engineer.


9. Environ-mentally responsible procurement

Avoid operational environmental pollution and impacts upon decommissioning.

Contractor to submit Method Statement and schedule of environmental mitigation measures with tender. Contractors required to include techniques and machinery selection to minimize impacts and duration of works. Choose non polluting equipment and materials Specify equipment not to contain hazardous or toxic components.

At tender stage and again during product acquisition, prior to purchase.

Tender evaluators to check contractors Method Statements and proposed mitigation measures and timing. Equipment specifications and performance with company certificates / accreditations.

Tender evaluators


CONSTRUCTION STAGE 1. Plans to control environmental and associated impacts.

Avoid impacts from unplanned activities

1. Temporary traffic management plan at crossings. 2. Drainage and utilities re-positioning plan. 3. Waste management plan at contractor’s camp. 4. Compensatory planting plan for tree removal (if needed). 5. Spoil management and reinstatement plan.

Prior to construction activity Submission to ADB

To cover construction at all sites

Contractor. TMA and Program management support consultant firm at UU

2. Loss of trees and vegetation cover.

To avoid adverse impacts due to unnecessary removal of trees and other

1. Removal of trees>10cm DBH (diameter at breast height) to be justified on engineering and safety grounds in tree removal plan.

One month prior to and during construction of

All sites Contractor TMA and Program management support consultant


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Time to Implement


Responsiblity for

Implementation


street foliage. 2. Clearing of trees for construction, cutting trees and other important vegetation during construction will be minimized. 3. Trees that are unavoidably to be removed for construction shall have compensatory planting and replacement and establishment plans for trees that shall be approved by the TMA and agreed with the Contractor one month before existing trees are cut. 4. Payments for site clearance shall be withheld until compensatory tree planting is complete for that sector. Payment linked to tree reestablishment not removal as one of the milestone payments. 5. At least seven (7) new trees shall replace each tree cutdown and they are to be maintained alive for one year as part of the contractual agreement and milestone payments. 6. Landscaping with trees and shrubs shall take place at appropriate locations. The planting of trees/shrubs/ornamental plants to contribute to the aesthetic value of the area. 7. At the conclusion of the project, all debris and waste shall be removed. All temporary structures, including office buildings, shelters and portable toilets shall be removed.

relevant activities.

firm at UU

3. Orientation for Contractor, and Workers

Ensure that the Contractor and workers understand and have the capacity to ensure that the environmental requirements and mitigation measures must be implemented by them.

Contractors tenders shall be required to clearly the resources and funds to be applied to the mitigation measures for environmental impacts. Contractors tenders shall identify named staff to supervise and plan, temporary traffic management, waste management, tree removal and compensatory planting. Contractual clauses shall be included to tie the implementation of environmental mitigation measures in the above plans to milestone payments.

Induction for all site agents and staff before commencement of work or if new to the site. Weekly tool box talks and refreshers at early stages of

All site agent staff. Monthly induction and six month refresher course as necessary until contractors comply/improve.

Contractor and site management to record all details and report quarterly.

TMA and Program management support consultant firm at UU will verify the record


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Time to Implement


Responsiblity for

Implementation


Contractual clauses shall require Contractors to conduct special induction briefing and/or on-site training for the contractors management, contractors staff, subcontractors and workers to cover the environmental requirement of the project. Contractors shall record and report regularly on record attendance and achievement test for all staff and managers. Contractual clauses shall emphasize that financial compensation shall not be allowed as mitigation for environmental impacts or environmental nuisance without written and environmentally justifiable agreement from the relevant environmental authorities. Engineering controls shall be proposed in the first place by the construction contractors and shall be designed as mitigation measures to control the impacts at source in the first place. The TMA shall be responsible for approval of the measures and report the update of the EMP.

construction for all construction employees as far as reasonably practicable. Include with safety talks.

4. Institutional strengthening and capacity building

To ensure that TMA staff and officials are trained to understand and to appreciate the EMP

Capacity building activities Creation of a safeguard unit within the TMA

Initiate at preconstruction and continue beyond project completion

All senior staff in TMA at senior engineer level and above

Specialist traing staff


5. Air quality To minimize air quality impacts effectively and avoid complaints due to the airborne particulate matter released to the atmosphere.

Contol all dusty materials at source. 1. If any area of construction is within 10m of any sensitive receivers, or has given rise to complaints over dust, the contractor shall install segregation between the works at the edge of the nearest the SRs before works commence to provide a barrier to protect the sensitive receivers and passing traffic. The segregation is easily erectable 3 m high tarpaulin hoarding within which all construction works can take place. The hoarding can be moved on from worksite to worksite as the work proceeds and removed when the works are completed to trigger a milestone payment. The design of the hoardings and works layout must also allow for pedestrians to cross the roads and

Before works commence and throughout all construction works

All sites The Contractor should maintain the accepted standards. The TMA will monitor hoardings and wetting and other relevant activities.



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avoid community severance. 2. All heavy equipment and machinery shall be fitted in full compliance with the national and local regulations for emissions. 3. Excavated or stockpiled soil and sand shall be slightly wetted before loading, particularly in windy conditions. 4. Fuel-efficient and well-maintained haulage trucks shall be employed to minimize exhaust emissions. Smoke belching vehicles and equipment shall not be allowed and shall be removed from the project. 5. Vehicles transporting soil, sand and other construction materials shall be covered. Speeds of such vehicles shall be limited on unpaved areas. 6. Open areas of the sites and nearby roads (50m adjacent either side of the active works areas) shall be sprayed at least twice per day with water to suppress dust.

6. Noise To minimize noise level increases and ground vibrations during construction operations.

Install, maintain and monitor all requisite mitigation measures as in contract 1. All heavy equipment and machinery shall be well maintained and fitted in full compliance with the national and local regulations. 2. As a rule, the operation of heavy equipment in residential areas shall be conducted in daylight hours unless agreed otherwise with local residents. 3. Construction equipment, which generates excessive noise, such as compressors, jack-hammers shall be enclosed to prevent noise release. Well-maintained haulage trucks will be used. The contractor shall also maintain and service all equipment to minimize noise levels. 4. Performance criteria during nighttime (10 pm to 7 am) shall be the measured impact noise at the a residential or hospital sensitive receiver shall not be more than 3dB above background noise levels measured at the nearest sensitive receiver (Leq15minutes) two weeks prior to the commencement of works. The contractor shall also

Maximum allowable noise levels at the façade of the sensitive receiver are 1. 70dB(A)LEQ or 2. 3dB(A)LEQ above the background (measured no more than 2 weeks before the commencement of work).

All sites that are within 50m of all hospitals schools and colleges

Contractor should monitor and maintain the accepted standards TMA should monitor relevant activities.



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maintain and service all equipment to minimize noise levels. 5. Near Mosques and schools the contractor shall discuss with the TMA and the school and mosque principals the agreed time for operating the noisy machines and completely avoid machine use near schools during examination times and near mosques during religiously sensitive times.

7. Construction Waste Disposal

To minimize the impacts from the disposal of construction waste.

Waste Management Plan to be submitted to the TMA and approved one month prior to starting works. 1. Estimating the amounts and types of construction waste to be generated by the project. 2. Investigating whether the waste can be reused in the project or by other interested parties. 3. Identifying potential safe disposal sites close to the project or those disposal sites designated in the contract. 4. Investigating the environmental conditions of the disposal sites and recommend which are the most suitable and safest sites. 6. Piling up of inert loose soil based material will be done in segregated/protected areas to arrest washing out of soil. Debris shall not be left where it may be carried by water to down stream drains, flood plains, lagoons etc. 7. Used oil and lubricants shall be recovered and reused or removed from the site in full compliance with the national and local regulations. Oily waste must not be burned. Licensed disposal location to be agreed with PUU 8. Machinery will be properly maintained to minimize oil spill during the construction. 9. Solid waste will be disposed of at an approved solid waste facility 10. Waste shall not be burned under any circumstances. Open burning is contrary to good environmemtal practice

Update once a month and report quarterly.

1. A list of temporary dumping areas identified by the detailed design engineer to be prepared at the contract stage for agreement. 2. The list of waste sites to be reconfirmed and that dumping areas are available as identified by detailed design engineer.

1.Contractor And TMA should supervise and take action to ensure completion of Contractor’s relevant activities according to environmental standards.



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8. Worker canteen and toilet facilities

To ensure that the operation of the works and worker facilities do not adversely affect the surrounding environment and residents in the area.

1. Identify location of worker canteen and toilet facilities in consultation with local communities. Location subject to approval by the TMA. If possible, canteen and toilet facilities shall include drinking water supplies. 2. In order to maintain proper sanitation around construction routes, temporary toilets will need to be provided. Waste shall not be buried (see above) 3. Drinking water and sanitary facilities shall be provided for employees. 4. Solid waste and sewage shall be managed according to the national and local regulations. 5. The Contractor shall document that all liquid and solid hazardous and non-hazardous waste are PEPA rated, collected and disposed of according to the given requirements and regulations. 6. At the conclusion of the project in a particular sector, all debris and waste of a project site, all temporary structures, including office buildings, shelters, waste receptacles and toilets shall be removed. 7. Exposed areas shall be replanted with suitable vegetation in line with the landscape plans and be inspected by the TMA. The TMA report if the site has been vacated and restored to pre-project conditions or as agreed with the TMA.

Update Once a month

Location Map will be prepared by the Contractor.

Contractor TMA and Program management support consultant firm at UU

9. Safety Precautions for Workers and first aid.

To ensure safety of workers

1. Providing adequate warning signs. 2. Providing workers with skull guard or hard hat and protective boots. 3. Contractor shall instruct all workers in health and safety matters, weekly, and require the workers to use the provided safety equipment. 4. Establish all relevant safety measures as required by law and good engineering practices. 5. Contractor shall provide first aid facilities for the workers on each of the sites and also at worker canteens with at least one qualified first-aider or nurse present at all times. It is recommended that the workforce be given access to a trained doctor

During construction

Relevant canteen and worker sanitation facilities.

Contractors TMA and Program management support consultant firm at UU


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at least once per two weeks for routine checks and medical examinations if necessary.

10. Traffic Condition

Minimize disturbance of vehicular traffic & pedestrians during haulage of materials, spoil, equipment & machinery. No blocking access near construction sites.

Submit temporary traffic management plan one month prior to start of works in any area. Formulation and implementation of a construction related traffic management plan and assign traffic control personnel. The Temporary Transport Management Plan will include consideration of the following: Lane availability and minimise traffic flows past the works site. Establish acceptable working hours and constraints. Agree the time scale for the works and establish traffic flow/delay requirements. Acceptability of diversion routes where necessary. Need for road closures and the necessary Orders. Co-ordination with other planned road and street works. Discuss the TMA inspection/monitoring role. Discuss establishment of incident management system for the duration of the works Agree publicity/public consultation requirements (advance signing etc.). The plan will be reviewed by the TMA and approved, if found appropriate. Resources from contractor, TMA, and the traffic police will be provided as per the plan before construction commences. The vicinity of schools and hospitals to be considered. Installation of traffic warning signs. Conducting awareness programs on safety and proper traffic behavior in densely populated areas near the construction sites.

Day time The most important locations to be identified and listed. Relevant plans of the Contractor on traffic arrangements will be available.

Contractor and Engineer with Traffic police


11. Nuisance to nearby properties

Control nuisances and reduce impacts on property value or interruption to

Contractor to agree to monitor and enforcement of implementation of mitigation measures versus milestone payments for mitigation. Contract clauses to specify acceptable

At all times Contractor TMA to monitor, enforce implementation



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neighbouring land uses. construction practices to mitigate nuisances, noise, vibration and dust impacts and liaison with local community on approach to mitigation. No payment unless environmental mitigation measures are implemented and penalty clauses in contract. Incorporating good construction management practices – complaints reported once per month for each site under construction. Set up complaints hot line, recording, response and resolution monitoring.

of contract clauses versus milestone payments. Complaints response time rerecorded. Contractor to respond and resolve complaints.

12 Erosion control To minimize wind and water erosion of exposed surfaces during excavation

The excavation of trenches can result in erosion of the exposed surfaces. This may be particularly significant if the construction work excavation is carried out during summer monsoon. In order to avoid this, the construction work will not be scheduled during the monsoon period (mid June to mid September). In case construction during these months is unavoidable, the excavated material will not be stored in the path of surface run-off. All excavated material will be covered with polyethylene sheets. The sides of the excavated contours will be contoured such the surface run-off from the surrounding areas does not fill the trenches. Location of all trenches will be clearly marked with demarcation tapes.

At all times Contractor TMA and Program management support consultant firm at UU

OPERATIONAL STAGE Noise Noise pollution from

vehicles Pressure horns and other noise generating

vehicles will be controlled by enforcing NEQS All the time Road crossings EPA TMA and Program

management support consultant firm at UU

Vehcular Emission Emmission from vehicles The emission from vehicles will be controlled by enforcing the NEQS

All the time Road crossings EPA TMA and Program management support consultant firm at UU

Rash driving Public safety at roads Road safety will be ensured by enforcing traffic rules by Traffic Police

All the time All roads and crossings

Traffic Police TMA and Program management support consultant firm at UU


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Baseline Indicators for Sialkot


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ANNEX A16: BASELINE INDICATORS FOR SIALKOT General (2010)

Description Value Source Total Area 19Sqkm PCIIP Sialkot City Profile Total Urban 17 Punjab Development Statistics 2010 Literacy rate of the City ( census 1998)

74.8 District Sialkot Census Report 1998

Average Household Size 7.0 District Sialkot Census Report 1998 Population Ex – Municipal Area Information Source

In 1998 376,750 Urban Unit / Punjab Development Statistics 2010 In 2010 471,428 Urban Unit / Punjab Development Statistics 2010

Cantonment In 1998 63,126 Urban Unit / Punjab Development Statistics 2010 In 2010 78,990 Urban Unit / Punjab Development Statistics 2010

Peri-Urban Areas (Urban) In 1998 286,214 Punjab Development Statistics 2010 / GHK Projections In 2010 362,135 Punjab Development Statistics 2010 / GHK Projections

Water Supply (2010)

Description Unit Quantity Source Water supply Network Coverage (old Municipal Corporation limits)

% 65 PCIIP City Profile Sialkot

Population Coverage % 35 % 90 World Bank - Fichtner

Report 2006 Total number of tubewells Numbers 91 PCIIP City Profile Sialkot Total number of functional tubewells Numbers 90 Capacity of functional tubewells Cusec 135 Total Overhead Reservoirs Numbers 9 Capacity of Overhead Reservoirs Million

Gallon 0.57

Approximate pipe length distribution system Km 192 World Bank - Fichtner Report 2006 Water Availability in Winter

in Summer Hours 12 Hours 15

Water losses % 40 Water Consumption per Capita Gallon 50 Water Quality: 30%i water samples were polluted with E.Coli and almost double 70%i of water samples were contaminated with Coliform organism Total Water Connections Numbers 42000 PCIIP City Profile Sialkot

Metered Numbers 0 TMA Sialkot Finance Department Non metered Numbers 42000

Domestic Numbers 39000 Commercial Numbers 3000

Industrial Numbers Water Connection Fee

Domestic (3/8”) Rs. 600 TMA Sialkot Schedule of rate Notification 2010 Domestic (1/2”) Rs. 1200

Commercial (3/8”) Rs. 1200 Commercial (1/2”) Rs. 2400

Industrial (3/4”) Rs. 6900 Industrial (1/2”) Rs. 1890

Water Supply Service Charges Domestic (3/8”) Rs./Yearly 1500 Domestic (1/2”) Rs./Yearly 2500

Commercial (3/8”) Rs. 2500 Commercial (1/2”) Rs. 4500

Industrial (3/4”) Rs. 12015 Industrial (1/2”) Rs. 3670

Water filter plants installed Numbers 24 TMA Sialkot Record


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Water filter plants operational Numbers 24 Staff /1000 water connection Numbers 4.4 PCIIP City Profile Sialkot

Wastewater Management

Description of Service Unit Quantity Information Source Sewerage supply Network Coverage (old Municipal Corporation limits)

% 20 PCIIP City Profile Sialkot

Population Coverage % 55 World Bank - Fichtner Report 2006 Approximate Length of Total sewers Km 180 World Bank - Fichtner Report 2006 Total Effluent/Discharge Cusec 100 World Bank - Fichtner Report 2006 Number of Pumping Stations Number 7 PCIIP City Profile Sialkot Number of Pumps Number 14 PCIIP City Profile Sialkot Total Pumping Capacity Cusecs 39 PCIIP City Profile Sialkot

Solid Waste Management

Description of Service Unit Quantity Information Source Waste Generated Tons/day 350 PCIIP City Profile Sialkot

Tons/day 500 KOICA WB Study 2007 Punjab Tons/day 500 TMA Sialkot Records

Waste Collected Tons/day 88 PCIIP City Profile Sialkot Tons/day 300 KOICA WB Study 2007 Punjab Tons/day 150 TMA Sialkot Records

Generation Rate kg/capita/day 0.28-0.35 PCIIP SWM Strategy and Action Plan

kg/capita/day 0.50 TMA Sialkot Records Waste Generated per HH kg 2.88 TMA Sialkot Records Waste Disposed Off Tons/day 88 TMA Sialkot Records Temporary Disposal Sites Numbers 1 TMA Sialkot Records Sanitary Landfill Site Numbers Nil TMA Sialkot Records Staff per 1000 persons Number 0.94 PCIIP City Profile Sialkot Equipment Hand Carts/Push cart Numbers 150 TMA Sialkot Records Donkey Carts Numbers 18 TMA Sialkot Records Secondary Containers Numbers 24 TMA Sialkot Records Tractor Trolleys Numbers 42 TMA Sialkot Records Tractors with Bucket Numbers 8 TMA Sialkot Records Mechanical Sweeper Numbers 1 TMA Sialkot Records Waste Composition Vegetable, putrescible % 20 KOICA WB Study 2007 Punjab Wood, bones, straw % 19 KOICA WB Study 2007 Punjab Paper, cardboard % 4 KOICA WB Study 2007 Punjab Textiles, rags % 7 KOICA WB Study 2007 Punjab Glass, ceramics % 1 KOICA WB Study 2007 Punjab Pet bottles % 0 KOICA WB Study 2007 Punjab Plastics, rubber % 4 KOICA WB Study 2007 Punjab Shopper bags % 0 KOICA WB Study 2007 Punjab Metals % 1 KOICA WB Study 2007 Punjab Batteries, syringes, etc. % 0 KOICA WB Study 2007 Punjab Miscellaneous inerts, debris % 34 KOICA WB Study 2007 Punjab


ANNEX A 17 PCIIP Documents Developed as Part of PPTA


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ANNEX A17: PCIIP DOCUMENTS DEVELOPED AS PART OF PPTA




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