ISLAMABAD: The International Development Association (IDA) will make an allocation of $200 million as a ‘performance based grant’ to help 16 urban local governments in Punjab to deliver improved urban infrastructure that will help in enhancing economic growth and development, besides ending extreme poverty and promoting shared prosperity.

The ‘Punjab Cities Programme’ has been developed that will support building systems in the 16 selected secondary cities for more transparency, accountability and responsiveness to citizens, putting them on a structured path towards fiscal sustainability and provision of improved municipal services.

In doing so, the programme will support transition to the new local government system introduced through the Punjab Local Government Act (PLGA) of 2013. It will also facilitate the municipal committees to fully comply with the legislation and implement rules of business, budgets and accounts as prescribed in the local government act. The PLGA became effective in January 2017.

A draft report of the World Bank says the proposed programme will strengthen the performance of urban local governments in their management and service delivery.

The 16 cities are: Bahawalnagar, Burewala, Daska, Gojra, Hafizabad, Jarranwala, Jhang, Jhelum, Kamalia, Kamoke, Khanewal, Kot Adu, Muridke, Okara, Vehari and Wazirabad. The average water supply coverage in these cities is only 53 per cent. Variation in coverage is mainly due to the availability of fresh groundwater, housing schemes connection to the network, and capacity of the municipal committees.

The proposed project builds on the achievement of the World Bank-funded Punjab Municipal Services Improvement project which was completed in 2013, and it will strengthen the institutional capacity in the 16 municipal committees with a three-pronged strategy: appointment of required workforce, designation of critical staff, and technical assistance from the completed project.

The report says that the operation will be financed under two modalities: Investment Project Financing (IPF) and Programme-for-Results (PforR). Institutional strengthening will be financed under the IPF and infrastructure investments will be supported under the PforR.

Most of the activities of institutional strengthening will be financed under the IPF, while the PforR financing will be used for infrastructure development, targeting repair of existing infrastructure like water supply, sanitation, roads and streets including lighting and parks, and development of new infrastructure within the existing urban built-up area. Activities of spatial planning, land use planning, and real estate development are not part of the proposed programme.

Published in Dawn, January 28th, 2018