ISLAMABAD, Dec 21: The Asian Development Bank (ADB) has approved the second tranche release of $150 million for the decentralization support programme (DSP) in Pakistan.

The DSP is a $300 million assistance package approved by the ADB in November 2002. A statement issued here on Tuesday said the first tranche of $120 million had been released in 2003.

The programme was designed to meet various requirements of the current decentralization reforms under the devolution programme. The DSP comprised four components: the main programme loan ($270m), technical assistance local government performance enhancement ($23m), technical assistance gender and governance mainstreaming ($7m) and the ADTA grant ($3.18m).

The DSP focused on enhancing local governments' capacities and strengthen decentralized service delivery systems. The tranche release recognised the achievement of important milestones in reform implementation.

These achievements included approval of gender reform action plans by the federal and provincial governments, promulgation of fiscal transfer rules by all the provinces, institutions of technically-sound practices in inter-governmental fiscal distribution formulas, ensuring transparency and public accountability besides other initiatives.