ISLAMABAD: The Asian Development Bank (ADB) is likely to finance a Punjab government’s project to improve the quality of life of residents in the selected intermediate cities of the province.

According to official sources, the Punjab government was seeking a loan of $350 million from the ADB to undertake ‘Punjab Cities Improvement Investment Programme’.

Sources said that ADB would send a fact-finding mission to Lahore in mid-September to evaluate the project and select the cities in consultation with the provincial government before approving the loan.

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The programme will address three core causes: absence of strategic vision and integrated urban planning at the cities level; inefficient use of financial and natural resources; and limited financing of infrastructure and maintenance.

Sources further stated that the government has decided to explore the possibilities of creating new organisational modalities for service delivery with a focus on clarifying roles and responsibilities, improving financial management, and corporate governance.

Official data shows that there are 13 intermediate cities in Punjab and none of the cities has metered water connections. Tap water has quality issues and is intermittently available to 45 per cent of urban population. Sewage of 54pc of urban population flows in open drains and is discharged untreated to agricultural and natural water-bodies.

Municipal solid waste collection covers only 40pc of urban households. Poor public transport and weak traffic management render roads heavily encroached and congested. Municipal governance is weak due to overlaps in institutional jurisdiction and poor coordination.

As a result, integrated urban planning is poor and sub-sector planning is done in isolation by respective institutions.

Recognising the need for urban reforms, the Punjab government is implementing reforms in Lahore and four other major cities to improve local government capacity and performance.

The Urban Sector Policy and Management Services Unit has established to provide support in reforms including policy direction, integrated planning, and legislative reforms.

*Published in Dawn, July 20th , 2014 *