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Asian Development Bank (ADB) will provide $500 million for Punjab Cities Improvement Investment Programme (PCIIP) to improve urban environment and public health for an estimated four million residents in larger intermediate cities of Punjab Province.
According to an update project report of Asian Development Bank, Asian Development Fund will provide $250.00 million, while $250.00 million will provided through Ordinary Capital Resources.
At first step of programme, Asian Development Fund will provide $60.00 million for Punjab Cities Improvement Investment Programme Tranche-1 for improvement urban environment and public health for an estimated one million residents of Sialkot City. More efficient cities and effective urban services including safe, reliable, and widely available water supply, wastewater, solid waste management services, are other objectives. Under Technical Assistance Special Fund of $1.50 million, Punjab Cities Utilities Reform and Operations Improvement (Piggy-backed with Loan) is actively launched.
The CDTA closely links to ADB's CPS for Pakistan, which is supporting a programme to (i) improve governance and management of basic urban services; (ii) relieve infrastructure deficits constraining urban services delivery; (iii) include public private partnerships to incentivize better urban service delivery; and (iv) benefit women through improved access to, and quality and reliability of, household water supply and community sanitation.
ADB project report revealed that the urban environment, city management, municipal finance and service delivery in Punjab's intermediate cities is exceedingly poor. As a result, water supply and sanitation (WSS); solid waste management (SWM); and urban transport fail on three accounts: physical coverage is limited, quality is poor, and delivery is intermittent. Infrastructure is absent or deteriorating; the concept of sustainable operating systems is missing.
Lack of urban planning and poor service delivery adversely affects quality of life, limits investment opportunities, and hampers economic growth and job creation. Consistent with ADB Country Partnership Strategy, Punjab Cities Improvement Investment Program (PCIIP) aims to (i) improve governance and management of basic urban services; (ii) relieve infrastructure deficits that constrain urban services delivery; (iii) use public-private partnerships to incentivize better urban service delivery; and (iv) benefit women through improved household water supply and sanitation.
The multi-tranche financing facility (MFF) for Punjab Cities Improvement Investment Program (PCIIP) sets the foundation for ADB's long-term urban sector engagement in Punjab Province. PCIIP targets several of province's larger intermediate cities in geographic clusters for streamlined program implementation.
ADB project report explained that the MFF will help these cities develop as engines of growth, with clear vision, integrated planning and efficient, sustainable urban infrastructure and services. PCIIP will finance (i) capacity development of municipal government and autonomous authorities, including capacity development for urban planning, land-use management and municipal finance; (ii) establishment and operation of professionally-managed regional utilities; (iii) improvements in water supply, wastewater, solid waste management and urban transport/traffic management infrastructure; and (iv) introduction of public-private partnerships for more effective urban services.
At city level, PCIIP supports comprehensive city planning and management. At a sectoral level, PCIIP supports a new approach to urban service delivery based on the creation of regional utilities that harness economies of scale to attract more professional management and skilled staff, and private sector expertise.
PCIIP will minimise resettlement impacts by prioritising rehabilitation and optimising work within existing facilities. New construction will be proposed on vacant government land where feasible. To ensure compliance with government and ADB policies and requirements on involuntary resettlement, a land acquisition and resettlement framework (LARF) is being prepared in accordance with ADB's Policy, the applicable laws and regulations of Pakistan and Punjab Province, and the operational procedures for MFF processing. The LARF will guide the implementation of subprojects, outlining the objectives, policy principles, procedures for land acquisition (if required), compensation, and other assistance measures for affected persons. Land acquisition and resettlement plans (LARPs) for subprojects in tranche-1 are expected to have non-significant impacts and the tranche will likely be categorised as B; short LARPs will be prepared accordingly. Appraisal of successive Periodic Financing Requests (PFR) will require preparation of LARPs for all subprojects with land acquisition and resettlement issues, to be presented for ADB approval with submission of the PFR. The subprojects in the first tranche of the MFF will have no impact on indigenous peoples, ADB report added.
However, ADB sources mentioned that the Environmental Aspects Initial environmental examinations are underway. An environmental assessment and review framework (EARF) is being prepared to guide environmental assessment of subprojects during implementation.
ADB further explained that the provision of potable piped-water supply plus wastewater and SWM improvements would improve the environment in Sialkot. The design involves simple, appropriate, low-cost technology and does not pose any significant adverse environmental consequences. An environmental assessment and review framework (EARF) is being prepared following ADB procedures. For each Periodic Financing Request (PFR), initial environmental examinations (IEEs) or environmental impact assessments for each subproject or for groups of similar subprojects in the same sub-sector will be prepared as appropriate.
Environmental subproject selection criteria is being developed to ensure that the PCIIP will not have significant negative environmental impacts and will have no impacts on environmentally sensitive areas. Impacts that are potentially significant and/or irreversible will be avoided to extent possible. Potential negative environmental impacts of typical subprojects are expected to be mostly localised and temporary. These impacts can largely be avoided through proper subproject design (particularly site selection) or through appropriate choice of water and wastewater treatment technologies and process design parameters. Alternatively, they can be mitigated through proper implementation of mitigation measures and environmental management. The EARF will help to ensure compliance with applicable government and ADB environmental requirements and guide the design and implementation of future subprojects.

Copyright Business Recorder, 2010

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