146 PDF

comprising
Pre Feasibility Study (PFS)

Medium Term Integrated Climate TA 8556 REG
Resilient Urban Infrastructure Integrated City Development Strategy (ICDS)

P46526 PAK
Investment Program Climate Risk and Vulnerability Assessment (CRVA)

SC 105335 PAK
and Pre-Feasibility Study
Final Report – Sahiwal, Pakistan

April 2016
This Consultant’s Report does not necessarily reflect the views of ADB or the CDIA or the Government concerned, and ADB,
CDIA and the Government cannot be held liable for its contents. All the views expressed herein may not be incorporated into the
proposed project’s design
Medium Term Integrated Climate Resilient Acknowledgements
Urban Infrastructure Investment Program
and Pre-Feasibility Study of Sahiwal, Pakistan
Acknowledgements
The Team wishes to acknowledge with thanks and appreciation the support they have received
(individually as well as collectively) throughout the completion of this assignment. A special thanks
is owed to the Urban Unit under the very capable and dynamic leadership of Dr. Nasir Javed. A
special thanks is also owed to Ms. Nargiza Talipova and Mr. Shaukat Shafi of the Asian
Development Bank, and Mr. Nadir Ehsan of the Cities Development Initiative for Asia (CDIA).
Whilst we cannot name them all here, our particular thanks go to Mr. Khalid Masood Chaudhry
(Secretary Local Government and Community Development Department, Punjab), Mr. Shahid
Farid (Deputy Secretary Local Government & Community Development Department, Punjab),
Mr. Kashif Muhammad Ali (Administrator TMA, Sahiwal and Dr. Syed Murtaza Bukhari (Project
Director Transport Planning Unit, Lahore).
The PICIIP Urban Unit counterparts under the direction of Abid Hussainy and Rizwan ur Rehman
have worked tirelessly to support the ADB, CDIA and the three study Teams, in any and all
matters necessary for the achievement of initial outputs. Other staff and team members from the
Urban Unit including Dr. Kiran Pharhan, Ms. Sani Zahra and Engineer Reza Ali Rao have all
provided exceptional assistance and support to the Teams.
We are further thankful to the counterparts of this project for their continuous support and
professional technical guidance since its start. We would also like to thank the communities,
elected representatives, Chambers of Commerce and the entire range of stakeholders and
participants in Sahiwal that we met with. The Teams are very grateful for all those who have
provided guidance and assistance throughout the MTIIP process.
page 1
Medium Term Integrated Climate Resilient Team Composition
Team Composition
Nadir Ehsan, Overall CDIA Team Leader and Project Coordinator
Pre-Feasibility Study (PFS)

 Azim Manji, PFS Team Leader and Economist/Urban Planner
 Nick Allen, SWM Specialist
 Ross Kearton, WatSan, Sewerage and Drainage Specialist
 Stuart King, Municipal Finance Specialist
 Peter Turner, Transport Specialist
 Don Audet, Public Utilities Management Specialist
 Jawad Quereshi, Sahiwal SWM Specialist
 Kashif Bashir, Sialkot SWM Specialist
 Munim Khan, Sahiwal Water Supply, Sewerage and Drainage Specialist
 Ahsan Paracha, Sialkot Water Supply, Sewerage and Drainage Specialist
 Waseem Masood, Sahiwal Financial Specialist
 Muhammed Rehan, Sahiwal & Sialkot Financial Specialist
 Hameed Abdul, Sahiwal & Sialkot Social Development Safeguard Specialist
 Waqar Ahmad, Sahiwal Social Development Safeguard Specialist
 Muhammad Shahid Alvi, Sialkot & Sahiwal Institutional Development Specialist
 Arif Pervaiz, Sialkot & Sahiwal Climate Change Specialist
 Umar Farooq, Sialkot & Sahiwal Transport Specialist
 Umair Ahmed, Sialkot & Sahiwal Municipal Finance Specialist
Integrated City Development Strategies (ICDS)

 Rob Story, ICDS Team Leader and Urban Planner
 Izhar Ul Haq, Urban Institutional Specialist
 Wijnand Langeraar, Geographic Information Specialist
 Kim Harboe, Urban Climate Change Resilience Specialist
Climate Risk and Vulnerability Assessment (CRVA)

 Wei Ye, CRVA Team Leader and Climate Scientist
 Mohammad Ali Shaikh, Engineer/Urban Planner
 Huma Daha, Engineer/Urban Planner
page 2
Medium Term Integrated Climate Resilient Acronyms and Abbreviations
Acronyms and Abbreviations

ADB Asian Development Bank
ADP Annual Development Program
ADWF Average Dry Weather Flow
ATO Assistance Technical Officer
BOD Biological Oxygen Demand
BOO Build Operate Own
BOT Build Operate Transfer
CAS Country Assistant Strategy
Cantt Cantonment
CB Capacity Building
CCB Citizen Community Board
CCTV Closed Circuit Television
CDG City District Government
CDIA Cities Development Initiative for Asia
CDM Clean Development Mechanism
CDS City Development Strategy
CH4 Methane
CO Chief Officer
CO2 Carbon Dioxide
COI Corridor of Impact
CRVA Climate Risk and Vulnerability Assessment
CTS Complaints Tracking System
DAR Desk Appraisal Report
DFID Department for International Development, United Kingdom
DMA District Metering Area
DMZ District Metering Zone
DPL Development Policy Loan
DPR Detailed Project Report
EA Environmental Assessment
EIA Environmental Impact Assessment
EMD Environmental Protection Plan
EMP Environmental Management Plan
EO Environmental Officer
EPA Environmental Protection Agency
EPD Environmental Protection Department
ERR Economic Rate of Return
ESF Environmental and Social Framework
FAR Field Appraisal Report
FMS Financial Management System
FRP Fiber Reinforced Plastic
FSL Fixed Spread Loan
GCISC Global Change Impact Studies Centre
GDP Gross Domestic Product
GHG Greenhouse Gases
GI Galvanized Iron
GIS Geographical Information System
GoPb Government of the Punjab
GRP Glass Reinforced Plastic
gpcd gallons per capita per day
Gpd gallons per day
GT Road Grand Trunk Road
HR Human Resources
HQ Head Quarter
HUD&PHED Housing, Urban Development and Public Health Engineering Department
page 3
I&S Infrastructure and Services

IA ID Implementing Agency Institutional Development
ICDS Integrated City Development Strategy
IEE Initial Environmental Examination
IPCC Intergovernmental Panel on Climate Change
ICR Implementation Completion Report
ID Institutional Development
KPI Key Performance Indicator
LAR Land Acquisition and Resettlement
LARP Land Acquisition and Resettlement Plan
LARU Land Acquisition and Resettlement Unit
LG Local Government
LG&CDD Local Government and Community Development Department
M&E Monitoring and Evaluation
m/s meter per second
mg/L milligrams per litter
MBBR Moving Bed Bio filter Reactor
MC Municipal Corporation/Committee
MDG Millennium Development Goals
MFF Multi tranche Finance Facility
MGD Million Gallons per Day
MNC Multi-National Corporation
MoA Memorandum of Agreement
MoU Memorandum of Understanding
MS Mild Steal
MSW Municipal Solid Waste
MTIIP Medium-Term Infrastructure Investment Program
MTR Mid-Term Review
NEQS National Environmental Quality Standards
NSUSU North Sindh Urban Service Company
NGO Non-Governmental Organization
O&M Operation and Maintenance
ODP Outline Development Plan
OFWM On-Going Water Management
OHR Overhead Reservoir
OM Operational Manual
P&D Planning and Development
P&DD Planning and Development Department
PAD Project Appraisal Document
PDWF Peak Dry Weather Flow
PEPA Pakistan Environmental Protection Agency
PFS Pre-Feasibility Stage
PHA Provincial Housing Authority
PHED Public Health Engineering Department
PICIIP Punjab Intermediate Cities Improvement Investment Program
PIFRA Project to Improve Financial Reporting and Auditing
PIP Performance Improvement Plan
PLGO Punjab Local Government Ordinance
PMDFC Punjab Municipal Development Fund Company
PMS Performance Management System
PPIAF Public Private Infrastructure Advisory Facilities
PPTA Project Preparation Technical Assistance
PSP Private Sector Participation
PVC Poly Vinyl Chloride
RCC Reinforced Concrete Cement
REA Rapid Environmental Assessment
ROW Right of Way
page 4
RTU Remote Telemetry Unit

RUA Rapid Urban Assessment
SBR Sequence Batch Reactor
SCADA Supervisory Communication and Data Acquisition
SDG Sustainable Development Goals
SDWCL Sustainable Development of Walled City of Lahore
SEA Strategic Environmental Assessment
SIL Specific Investment Loan
SOP Standard Operating Procedure
SME Small and Medium Enterprises
SWCW Sialkot Water and Sanitation Company
SWM Solid Waste Management
SWOT Strengths Weakness Opportunities and Threats
SWMC Solid Waste Management Company
TMA Tehsil Municipal Administration
TMO Tehsil Municipal Officer
TO Technical Officer
TO (F) Tehsil Officer (Finance)
TO (I&S) Tehsil Officer (Infrastructure and Services)
TO (P&C) Tehsil Officer (Planning and Coordination)
TO (R) Tehsil Officer (Urban Regulation)
UASB Up flow Anaerobic Sludge Blanket
UC Union Council
UFW Unaccounted for Water
ULC Urban Local Council
UU Urban Unit (Punjab)
WAPDA Water and Power Development Authority
WASA Water and Sanitation Authority
WASTAN Water and Sanitation
WBI World Bank Institute
WCLA Walled City of Lahore Authority
WHO World Health Organization
WSSP Water and Sanitation Services Peshawar
WWT Wastewater Treatment
WWTP Wastewater Treatment Plant
page 5
Medium Term Integrated Climate Resilient Preface
Preface
Cities in Pakistan are the economic, social and innovative core of the country, generating the
majority of its revenues and home to the majority of its population. As cities continue to grow,
their role in Pakistan’s social and environmental systems becomes ever more crucial. This trend
is set to increase in the coming decades.
This Report highlights the shortage of infrastructure in Punjab’s intermediate cities and shows how
some of these deficiencies have resulted in poverty and other urban vulnerabilities in Sahiwal. The
World Bank estimates that in developing countries, 1.5 billion people live without electricity, 1
billion have no access to all-weather roads, and 2.5 billion have no access to sanitation.
Pakistan’s share of the global burden is substantial. Such infrastructure is also critical to improving
resilience of the poor to climate change impacts. Economic infrastructure such as sewage
treatment plants, inner-city roads, urban marketplaces, warehouses and other such productive
facilities remain inadequate; restricting economic and social growth across the Province as well as
in its intermediate cities. Firms cite poor infrastructure as the single largest barrier to doing
business in Punjab’s most promising urban centers. As a result, private enterprise is restricted,
leading to fewer jobs, less services and fewer tax revenues.
Nationally, estimates are that Pakistan will achieve a 5.5% growth rate in 2016. To meet planned
targets, infrastructure investment will need to increase significantly from just under 3 per cent of
GDP to well above 8 per cent of GDP in 2016-17. Ideally, nearly half of this investment should
come from the private sector, but (for various reasons as outlined in the Report) this is highly
unlikely. Given the current regulatory and policy environment, the domestic private sector is
reluctant to engage further in municipal infrastructure, and is reaching the limits of its ability to
finance investment anyway. Current estimates suggest an overall financing shortfall of almost
$100bn in the next 5 years. Finance requirements at the aggregate level remain an enormous
challenge for the infrastructure sector and there is active scoping currently for newer sources of
capital.
Financing aside, the rate-limiting step in the vast majority of intermediate cities is a delivery-mind
set and a culture of treating citizens as customers. The formal private sector approaches that
have fueled much of the economic growth of Pakistan have not percolated through to local levels,
particularly in intermediate cities in Punjab. Technical or financial innovation in cities, however
novel, will only have a limited impact without an accompanying behavior and cultural change within
service delivery organizations, that are presently the responsibility of municipal government.
This Report presents a series of integrated and comprehensive investments in physical

infrastructure. The challenge will be to tackle the remaining policy and capacity bottlenecks, to
ensure effective delivery through incentivized staff, efficient systems and processes. This will
need to be integrated and matched to the ability of municipalities to mobilize alternative (including
private) investment, especially in high poverty impact sub-sectors in sustainable urban
development, roads and renewable energy, amongst others.
Agencies such as The World Bank, the U.K. Department for International Development (DFID) and
Japan International Cooperation Agency (JICA) are also heavily active in the infrastructure sector.
They are largely deploying sovereign loans to government partners across the country, with limited
direct investment in capacity building, streamlining municipal delivery mechanisms or unlocking
financial instruments at municipal levels. Such actions would complement the portfolio of
assistance by the ADB.
This Final Report starts from the premise that efficient delivery mechanisms at the city level
(meaning a range of alternative investment and financing instruments, incentivized and technically
qualified staff and appropriate delivery structures capable of responding to city-stakeholder needs)
are to be seen as investments which will yield social, environmental as well as economic dividends
in parallel to the infrastructure investment packages proposed here in. In this sense, the benefits at
page 7
Medium Term Integrated Climate Resilient Preface
the city level are quantifiable in terms of fostering inclusion, enhancing competitiveness and
building resilience.
The various consultations and detailed studies of the ICDS (Integrated City Development
Strategy), CRVA (Climate and Vulnerability Risk Assessment) and PFS (Pre-Feasibility Study)
Teams undertaken from May 2015 through January 2016 confirm this. The details of these studies
are presented here. The findings have been packaged into a series of medium-term investments
suitable for ADB (and other) financing for the city of Sahiwal, Punjab to be taken forward.
A significant component of this Report has resulted in the Medium Term Infrastructure Investment
Program (MTIIP). This has been agreed through a collaborative process with the Government of
Punjab commencing from November 2015 through to January 2016.
page 8
Medium Term Integrated Climate Resilient Table of Contents
Table of Contents
ACKNOWLEDGEMENTS ...........................................................................................................1
TEAM COMPOSITION ...............................................................................................................2
ACRONYMS AND ABBREVIATIONS ............................................................................................3
PREFACE ...............................................................................................................................7
INTRODUCTION AND OVERVIEW ....................................................................................... 15
A. Introduction to the Assignment ................................................................................. 17
B. Background and Rationale ....................................................................................... 18
C. Impact and Outcome ................................................................................................ 21
D. Outputs..................................................................................................................... 21
E. Study Components & Structure ................................................................................ 21
F. The Problem Tree..................................................................................................... 23
G. Approach and Methodology ...................................................................................... 25
H. Strategic Approach to the Multi-Tranche Finance Facility for Intermediate Cities in
Punjab ............................................................................................................................. 27
I. PICIIP Components and Conceptual Clarity in Addressing MFF Issues ................... 38
J. Approach to Delivery of Services .............................................................................. 40
K. Cross-Cutting Themes .............................................................................................. 41
L. Risks and Assumptions ............................................................................................ 44
M. Building on Initial City Priorities and Needs............................................................... 48
N. Methodology and Assessment of Priorities and Proposals........................................ 49
O. Structure of This Report............................................................................................ 52
STRATEGIC CONTEXT ........................................................................................................ 53
A. Urbanization and Economic Development ................................................................ 55
B. Institutional and Policy Context ................................................................................. 56
RAPID URBAN ASSESSMENT (RUA).................................................................................. 61
INTRODUCTION ..................................................................................................................... 63
A. Purpose or Rapid Urban Assessment (RUA) ............................................................ 63
B. Policy Context .......................................................................................................... 64
C. Approach and Methodologies in Preparing the RUA ................................................. 64
SOCIO-ECONOMIC CONTEXT ................................................................................................. 65
D. Demographics .......................................................................................................... 65
E. Employment ............................................................................................................. 66
F. Social Facilities ......................................................................................................... 67
G. Urban Poverty .......................................................................................................... 67
URBAN SITUATION ............................................................................................................... 70
I. Urban Centers of Sahiwal District ............................................................................. 70
J. Sahiwal City Geography ........................................................................................... 70
K. Urbanization Process and Evolution ......................................................................... 71
L. Existing Land Uses and Settlement Patterns ............................................................ 77
M. Land Use Issues and Analysis .................................................................................. 80
N. What Needs to Be Done? ......................................................................................... 81
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O. Settlement Patterns .................................................................................................. 82

P. Existing Development Plans ..................................................................................... 83
Q. Infrastructure ............................................................................................................ 83
R. Review of Institutional Arrangements........................................................................ 89
S. Organizational Structure of Tehsil Municipal Administration ..................................... 91
T. Regulations .............................................................................................................. 93
U. Primary Economic Growth Drivers ............................................................................ 94
CITY COMPETITIVENESS ENABLERS ...................................................................................... 96
W. Competitiveness Disadvantages............................................................................... 97
X. Institutional Capacities and Development Constraints .............................................. 97
Y. Urban Infrastructure and Service Delivery .............................................................. 100
Z. Operations and Maintenance .................................................................................. 101
AA. Financial Management and Procurement ............................................................... 101
BB. Transparency and Governance .............................................................................. 102
INITIAL CLIMATE-CHANGE RESILIENCE ASSESSMENT ........................................................... 102
CC. Introduction to Climate Change .............................................................................. 102
DD. Climate Change Threats and Impacts for Sahiwal .................................................. 102
EE. Initial Vulnerability Assessment .............................................................................. 105
SUMMARY OF DIAGNOSTICS ................................................................................................ 106
CLIMATE RISK AND VULNERABILITY ASSESSMENT (CRVA) ....................................... 109
INTRODUCTION ................................................................................................................... 111
BACKGROUND ................................................................................................................... 111
METHODOLOGY .................................................................................................................. 112
CLIMATE CHANGE SCENARIOS ............................................................................................ 113
CLIMATE CHANGE AND CITY DEVELOPMENT ........................................................................ 113
A. Climate Change and City Energy Systems ............................................................. 113
B. Climate change and water ...................................................................................... 114
C. Climate change and flood ....................................................................................... 116
D. Climate change and wastewater ............................................................................. 116
E. Climate change and solid waste management ........................................................ 117
F. Climate change and urban transportation ............................................................... 117
G. Climate change and human health ......................................................................... 118
ECONOMIC EVALUATION OF ADAPTATION OPTION ............................................................... 118
CONCLUSION ..................................................................................................................... 119
INTEGRATED CITY DEVELOPMENT STRATEGY (ICDS) ................................................. 121
INTRODUCTION ................................................................................................................... 123
OBJECTIVES OF AN INTEGRATED CITY DEVELOPMENT STRATEGY (ICDS) ............................. 123
POLICY CONTEXT ............................................................................................................... 123
APPROACH AND METHODOLOGY - CITY DEVELOPMENT CONCEPTS AND STRATEGIES ............ 123
URBAN DEVELOPMENT PRINCIPLES & CONCEPTS ................................................................ 124
A. Urban Development Best Practices & Principles..................................................... 124
B. Sustainability and Resilience .................................................................................. 125
C. Urban Development Form & Processes .................................................................. 126
D. Two Elements of Urban Development .................................................................... 129
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E. Urban Development Components ........................................................................... 130

F. Urban Development Project Cycle .......................................................................... 130
URBAN PLANNING, INSTITUTIONS & MANAGEMENT .............................................................. 131
G. Governance ............................................................................................................ 131
H. Institutional Development – A Tool to Gain Competitive Advantage........................ 131
I. Cascaded Urban Planning ...................................................................................... 134
J. How is ICDS Integrated and Institutionalized? ........................................................ 135
K. Proposed ICDS Municipal Management Structure .................................................. 136
L. Union Councils and Mahallah Level Governance:................................................... 137
M. Land Management.................................................................................................. 137
N. Participatory Budgeting........................................................................................... 137
O. Participatory Budgeting and ICDS – A Policy Framework ....................................... 140
P. Sustainability & Urban Revenue Generation ........................................................... 140
SECTOR CONCEPTS & STRATEGIES .................................................................................... 141
Q. Basic Urban Structure ............................................................................................ 141
R. Mobility (Transport) Strategy .................................................................................. 142
S. Green Public Space Strategy.................................................................................. 143
T. Social Development Strategy.................................................................................. 144
U. Economic Development Strategy............................................................................ 146
V. Water Supply Strategy ............................................................................................ 149
W. Sanitation & Sewerage Strategy ............................................................................. 150
X. Drainage Strategy................................................................................................... 151
Y. Solid Waste Management Strategy......................................................................... 151
Z. Resilience Strategy................................................................................................. 152
AA. Expanding the City - New Mahallahs ...................................................................... 152
SAHIWAL URBAN DEVELOPMENT STRATEGY - CONTEXT ...................................................... 154
BB. Summary Sahiwal SWOT Analysis ......................................................................... 154
CC. Sahiwal’s Vision...................................................................................................... 155
DD. Sahiwal - Existing Situation - Summary .................................................................. 155
SAHIWAL URBAN DEVELOPMENT STRATEGY ....................................................................... 157
EE. Physical Development & Growth Options ............................................................... 157
FF. Preferred Development Option and the Strategy .................................................... 159
GG. Revised Urban Boundary........................................................................................ 160
HH. Sahiwal Inter-Jurisdictional Joint Planning .............................................................. 161
II. Urban Form Strategy .............................................................................................. 161
JJ. Urban Regeneration, Redevelopment and Densification......................................... 163
KK. Infrastructure .......................................................................................................... 165
LL. Population, Housing, Land & Infrastructure............................................................. 169
MM. City and Regional Economy Strategy............................................................... 169
NN. Institutional Strategy ............................................................................................... 172
OO. Urban Design & Green ........................................................................................... 172
PP. Climate Change Resilience Strategy ...................................................................... 173
SAHIWAL - STRATEGIC SUMMARY ....................................................................................... 173
IMPLEMENTATION PLAN - ICDS ........................................................................................... 173
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QQ. Integration .............................................................................................................. 173

RR. ICDS and Supporting Plans .................................................................................... 174
SS. Notional Urban Budget ........................................................................................... 174
SECTOR ASSESSMENT, STRATEGIES AND ROADMAPS .............................................. 175
INTRODUCTION TO THE MTIIPS ........................................................................................... 177
SAHIWAL INSTITUTIONS AND GOVERNANCE ......................................................................... 180
A. Theoretical-Conceptual Framework and Historical Lessons ................................... 180
B. Relevant Institutions ............................................................................................... 184
C. Political Accountability ............................................................................................ 192
D. Institutional Analysis ............................................................................................... 194
E. Organizational Analysis .......................................................................................... 202
SOLID WASTE MANAGEMENT .............................................................................................. 216
F. Sector Assessment - Sahiwal Solid Waste Management ........................................ 216
G. Sector Strategy - Solid Waste Management ........................................................... 229
H. Guiding Principles................................................................................................... 230
I. Sector Goals and Objectives .................................................................................. 231
J. Sector Roadmap - Solid Waste Management ......................................................... 232
K. Environmental and Social Safeguard Considerations ............................................. 254
L. Indicative SWM Investment Costs .......................................................................... 260
M. Indicative Implementation Schedule ....................................................................... 261
WATER, SANITATION, SEWERAGE AND DRAINAGE ............................................................... 263
N. Sector Assessment - Water, Sanitation, Sewerage and Drainage .......................... 263
Water Demand and Wastewater Production .................................................................. 269
O. Water Supply and Sewerage Design Criteria .......................................................... 269
P. Water Demand and Wastewater Production ........................................................... 269
Current Status of Infrastructure ..................................................................................... 271
Q. Water Supply .......................................................................................................... 271
R. Sewerage ............................................................................................................... 275
S. Operation and Maintenance of the Water Supply, Wastewater and Drainage Systems
279
T. Services in Low Income Areas................................................................................ 281
U. Urban Poor Areas in Sahiwal .................................................................................. 283
V. Stakeholder Consultations ...................................................................................... 286
W. Community Needs and Priorities ............................................................................ 287
X. Overall Community Response for Proposed Project Interventions .......................... 288
Y. Sector Strategy - Water, Sanitation, Sewerage and Drainage................................. 288
Key Issues with Current Infrastructure ........................................................................... 290
Z. Sahiwal Application to CDIA ................................................................................... 290
AA. SWOT Analysis ...................................................................................................... 290
BB. Water Supply Issues in Sahiwal.............................................................................. 293
CC. Sewerage and Drainage Issues in Sahiwal ............................................................. 296
DD. Roadmap - Water, Sanitation, Sewerage and Drainage.......................................... 298
EE. Infrastructure Development Options ....................................................................... 298
FF. Medium Term Infrastructure Investment Plan ......................................................... 309
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Pre-Feasibility Study for Medium Term Investments...................................................... 312

GG. Component 1 – Water Supply Infrastructure ........................................................... 313
FF. Component 2- Sewerage and Drainage Infrastructure ............................................ 317
GG. Component 3 – Operation and Maintenance Facilities and Equipment ................... 322
HH. Summary of Costs .................................................................................................. 330
II. Implementation Schedule ....................................................................................... 330
TRANSPORT ....................................................................................................................... 332
JJ. Sector Assessment - Transportation Planning ........................................................ 332
KK. Sector Strategy - Transportation Planning .............................................................. 345
LL. Transport Sector Roadmap .................................................................................... 355
MM. Transport Sector Preliminary Cost Estimates ................................................... 363
INSTITUTIONAL DELIVERY MECHANISMS .............................................................................. 370
NN. Sector Strategy – Institutional Delivery Mechanisms .............................................. 370
OO. Sector Roadmap – Institutional Delivery Mechanisms ............................................ 372
PP. New Approaches to Organizations and Service Delivery ........................................ 373
QQ. Institutional Options for Water and Sanitation Management in Sahiwal .................. 375
MUNICIPAL CORPORATIONS: A NEW WAY FORWARD ........................................................... 386
RR. Asset Management................................................................................................. 387
SS. Strategy and Policy................................................................................................. 387
TT. Communication ...................................................................................................... 387
UU. Economic Development and Partnerships .............................................................. 388
VV. Human Resource Management .............................................................................. 388
SAFEGUARDS & CROSS-CUTTING THEMES .................................................................. 393
POVERTY, GENDER, SOCIAL DEVELOPMENT AND INCLUSION ................................................ 395
A. Project Benefits ...................................................................................................... 395
B. Land Acquisition and Resettlement Impact ............................................................. 395
C. Mitigation Measures for Negative Impacts .............................................................. 398
D. Conclusions ............................................................................................................ 398
ENVIRONMENT AND CLIMATE CHANGE ................................................................................ 399
E. Introduction............................................................................................................. 399
F. The Project ............................................................................................................. 399
G. Policy, Legal, and Institutional Framework, for Environmental Protection ............... 400
H. Environmental Categorization of Proposed Projects ............................................... 406
I. Environmental Risk Assessment and Climate Change Resilience Appraisal .......... 408
J. Institutional Arrangements for Environmental Management .................................... 428
K. Budget for Implementation of Environmental Management Plan............................. 429
SAHIWAL MUNICIPAL FINANCE ....................................................................................... 431
INTRODUCTION ................................................................................................................... 433
OVERVIEW ......................................................................................................................... 433
METHODOLOGY FOR FINANCIAL ASSESSMENT ..................................................................... 436
WATER / WASTEWATER / DRAINAGE SECTOR INVESTMENT .................................................. 436
A. Water Sector Assessment ...................................................................................... 436
B. Sahiwal Wastewater / Drainage Sector Investment ................................................ 440
C. Transport ................................................................................................................ 443
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D.Solid Waste Management ....................................................................................... 447

E.Institutional Cost ..................................................................................................... 450
F.Environmental Cost ................................................................................................ 452
G.Land Acquisition, Resettlement and Social Rehabilitation Cost .............................. 452
H.City Investment and Financing overview ................................................................. 453
ECONOMIC COST BENEFIT ANALYSIS .................................................................................. 456
I. Economic Benefits .................................................................................................. 456
J. Economic Analysis Methodology ............................................................................ 456
K. Measurement of Economic Benefits ....................................................................... 457
L. Economic Net Present Value (ENPV) & Economic Internal Rate of Return (EIRR) . 463
M. Economic Sensitivity Analysis................................................................................. 464
IMPLEMENTATION ............................................................................................................. 465
DESIGN MONITORING FRAMEWORK ..................................................................................... 467
A. Background and Concept ....................................................................................... 467
B. Medium Term Infrastructure Investment Plans (MTIIP) ........................................... 480
page 14
REG-8556
Medium Term Integrated Climate Resilient Urban Infrastructure
Investment Program and Pre-Feasibility Study
CHAPTER I
Introduction and Overview

April 2016
This Consultant’s Report does not necessarily reflect the views of ADB or the CDIA or the Government concerned, and ADB, CDIA
and the Government cannot be held liable for its contents. All the views expressed herein may not be incorporated into the proposed
project’s design
Medium Term Integrated Climate Resilient
Urban Infrastructure Investment Program Chapter I
and Pre-Feasibility Study of Sahiwal, Pakistan Introduction and Strategic Context
A. Introduction to the Assignment
1. The ADB and the Cities Development Initiative for Asia (CDIA) are partnering with the
Government of Punjab Province (GoPb) in Pakistan to undertake the Punjab Intermediate Cities
Improvement Program (PICIIP). The PICIIP is an initiative that will avail resources via the Asian
Development Bank’s (ADB’s) Multi-Tranche Financing Facility (MFF).1
2. The initiative is tasked with improving the quality of life of residents living in selected
cities in the Punjab, Pakistan’s most populous province. The first two cities selected for
improvement are Sialkot and Sahiwal (Figure I-1 and I-2). This Medium Term Integrated
Climate Resilient Urban Infrastructure Investment Program and Pre-Feasibility Study
Report (the Report) integrates the findings of the Pre-Feasibility Study for Sialkot and
Sahiwal Cities (PFS) (REG-8556) with the work of the Integrated Cities Development
Strategy (ICDS) (P 46526 PAK) and Climate Risk and Vulnerability Assessment (CRVA) (SC
105335 PAK).
3. This Report follows previous consultations, submissions, and reviews for each
component. It also represents the Draft Final submission for the PFS phase of the work prior to
proceeding with detailed project design in the Project Preparatory Technical Assistance phase
(PPTA).
4. The objective of the PFS (the Study) is to assist the GoPb to prepare an integrated,
climate-resilient urban environmental infrastructure investment program underpinned by
necessary institutional and financial management support for the intermediate city of Sahiwal.
The resulting investment program, coupled with a focus on treating citizens as customers, the
necessary range of cultural and behavioral reforms, and an emphasis on cost recovery, should
enable Sahiwal to better respond to the strategic imperatives as established by Government;
namely ensuring resilience, competitiveness, and inclusion.
5. Conceptually, the Team’s thinking (as encapsulated in this Report and all further Reports
to follow) is based on translating these three strategic imperatives into programs, actions, and
delivery mechanisms on the ground. It is based on the approach that the role of Government is to
enable the conditions necessary for promoting inclusion, ensuring competitiveness, and
responding to vulnerabilities in a way that builds resilience. This does not necessarily mean that
the Government should be providing services directly; although there is an understanding that in
the immediate term it may have to in Sahiwal.
6. The development of the MTIIP builds on Sahiwal’s initial priorities as articulated by its
original application to the CDIA. For reference, this has been provided in Annex 1. The work of
the Study and contents of this Report adheres to the protocols established by the ADB and the
CDIA. It follows the guidelines established by the CDIA, emphasizing pro-poor development,
environmental sustainability, climate change adaptation, and good governance.2 To this end, the
format of this Report adheres to the specificity, requirements, and detail as required by the CDIA
PFS manual.3
7. Our methodological approach to delivery of the PFS and achievement of the three
imperatives is noted in the overleaf in Figure I-12 and Figure I-13. These figures graphically
1
The PICIIP is a ten-year duration multi-tranche financing facility with a budget of US$ 500 million, to be
disbursed in four investment tranches of between US$ 100 million and US$ 150 million each.
2
As specified in the Pre-Feasibility Study Guidelines, CDIA, March 2011, and the Pre-Feasibility Studies
User Manual for Cities and National Partner Organizations, CDIA, October 2012.
3
Full details of the requirements and contents of a Pre-Feasibility Study can be found in the CDIA Manual
available online
page 17
depict how the infrastructure and other resulting initiatives proposed will unlock the potential of
Sahiwal to make it more inclusive, resilient, and competitive, in line with government strategy.
8. The summary of investments resulting from the work of all three Teams and detailed
further in this Report (see Chapter VI and Chapter VIII) is presented below in Table I-1. Tranche
1 investment costs for the sectors were agreed with the Government of Punjab in a number of
final working sessions with officials in Lahore from 7-11 March 2016. These late changes
affected the medium to long term cost projections. They should be revisited in tranche 2.
Table I-1: SAHIWAL INVESTMENT SUMMARY

SECTOR Tranche 1 Medium Term Long Term
0-2 years 0-5 years 5-10 years
(M USD$) (M USD$) (M USD$)
Institutions & Governance 5.15 - -
Water, Sanitation & Drainage 38.24 30.37 21.24
Solid Waste Management 23.15 18.32 31.16
Transportation Planning 4.74 4.74 11.44
Soft Urban Improvements4 4.0 4.00 6.00
Lalamusa LG Training Academy 3.0 - 4.50
Other (ICDS and Social 5.0 2.00 4.77

Development)Development)
TOTAL 83.28 59.43 79.11
9. The PICIIP's readiness for ADB financing is expected in late 2016. In order to accelerate
the PICIIP development process, the GoPb, the District Government of Sahiwal City, and the
Tehsil Municipal Administrations (TMA) of Sahiwal requested CDIA assistance to undertake the
PFS and supporting components in order to prepare both a Medium-Term Infrastructure
Investment Program (MTIIP) and accompanying urban infrastructure investment packages for
the two cities, Sahiwal and Sialkot. Being completed ahead of the PPTA, the pre-feasibility work
will therefore provide a valuable foundation for the subsequent PPTA analyses, ensuring that
these activities coordinate seamlessly within the overall development process.
10. A year by year breakdown of these costs is presented in Chapter VIII of this Report.
B. Background and Rationale

Punjab Urban Context
11. Punjab has been the most rapidly urbanizing province in Pakistan, accounting for over
53% of the country’s urban population and over 50% of the national GDP. 5 Punjab’s rate of
4
As these were determined at the conclusion of the ICDS process, only a provisional allocation for this
exists at the time of writing. Detailed feasibility will determine the specific scope and value of investments
required, but a budgetary allocation has been provided as an indication of the scale of likely investments.
5
The province includes five large cities (with populations between 1.9 to 9.0 million), 13 intermediate cities
(with populations between 0.25 to 1.0 million), and over 150 towns and urban settlements (with
populations of up to 0.25 million).
page 18
urbanization 2014 was 32% (32 million out of 100 million) and is estimated to increase to 40% by
2030 (59 million out of 150 million) at a rate of almost 3% per annum. 6,7 Rural-urban migration
driven by a youthful population’s desire for the amenities and opportunities of the city is the main
factor in the rapid rate of urbanization. Urban areas are the economic hubs, house the major
social facilities, and are the centers of government. As the country transitions to a more
industrialized nation, even greater emphasis will be placed on urban areas.
12. As a result of the lack of investment in urban management and infrastructure, Punjab’s
cities face challenges providing green livable environments for their residents that are safe,
resilient, sustainable, and competitive. Development is constrained by:
 inadequate infrastructure
 inadequate regulatory framework
 inconsistent urban statistics
 limited local governance capacity
 isolated planning standards
 limited professional knowledge of urban service financing, keeping costs high and
qualities low
 limited development control
Figure I-2: Sahiwal and Sialkot and Environs
Source: Urban Unit
Figure I-3 illustrates Pakistan’s population density with considerable urban concentration in the
northeast part of Punjab.
6
Punjab Development Statistics, 2014
7
Urban Unit, ADB and ICDS Team calculation
page 19
Figure I-3: Population and Urban Concentration
Infrastructure & Economic Impact
13. While population growth has stressed the urban environment, urban infrastructure
and services have not kept pace. Since 2001, total public sector investment in urban
infrastructure and service delivery has declined. Punjab’s intermediate city infrastructure
investment currently averages only $4 per capita. This compares with $10 in Lahore, $17 per
capita in India and upwards of $200 per capita in many developed nations. 8 The health
impacts, and therefore economic growth impacts, are high. An estimated 150-200 children per
day are dying of diarrheal diseases as a direct result of deficient water and sanitation.9 The
economic cost of inadequate sanitation and related water supply in Pakistan is estimated at
$5.7 billion per year equal to almost 4% of GDP in lost productivity and related health costs.10
That is equal to approximately $30 per capita which means that poor sanitation may be
costing Sialkot close to $30 million per year and Sahiwal close to $15 million per year.
Climate change is already creating some serious water challenges, which have a direct
correlation with sanitation services, and it is easy to anticipate the severity of economic loss if
climate change resilience measures are not built into future water and sanitation investments
beginning now. The WHO estimates that a $1 investment in improved sanitation generates a
$5.50 economic return, which would definitely have significant positive impacts on all of
Punjab’s cities.11
14. On average, Punjab’s cities are providing tap water to only 45% of their residents.
Sewage for 54% of the population flows in open drains and is discharged untreated into
natural water bodies or onto agricultural lands. Municipal solid waste collection covers only
40% of urban households with no engineered sanitary landfills in most cases. In addition,
poor public transport, weak traffic management, and almost non-existing street activity
management, constrain urban mobility. Many of these problems are exacerbated by the lack
8
See http://www.mckinsey.com/insights/mgi (various(
9
UNICEF, 2013
10
World Bank WSP, 2012
11
WHO, 2012 WHO/HSE/WSH/12.01
page 20
of comprehensive urban planning and development control that results in unsustainable urban
sprawl as the de facto form of urban growth. The combination of these urban issues directly
results in an unhealthy urban environment adversely affecting the quality of life of the urban
residents, their livelihoods, productivity, and economic growth. Overlaying all of these issues
are the increasing impacts of climate change that are already affecting cities and which they
are ill equipped to cope. Collectively, these issues provide the rationale for the proposed
PICIIP.
C. Impact and Outcome

15. The impact of the investment program will be an improved quality of life for the residents
of the selected cities of Punjab province. The program outcome will be an improved quality of
urban services available to the residents of those cities supporting economic growth, social
development, and improved urban environment. Key outputs will include:
 Introduction of integrated, strategic urban planning
 Improved institutional framework for urban services at the city level
 Strengthened business processes of urban utilities
 Improved urban infrastructure
16. More specifically, the investment program aims to produce outcomes that make Punjab
cities:
 Inclusive
 Safe
 Environmentally Conscious
 Livable
 Sustainable in an Economic, Social, and Financial sense
 Resilient
 Competitive
17. Furthermore, the proposed investment program will develop model cities demonstrating
the methodology for achieving the objectives of the Punjab Growth Strategy 2018 and the Punjab
Urban Development Sector Plan 2018.
D. Outputs
18. The key outputs will be:
 Introduction of integrated urban planning;

 Improved institutional framework for urban services at the city level;
 Strengthened business processes of urban utilities;
 Improved urban infrastructure.
19. In addition, the program will:
 Introduce the over-arching application of climate change adaptation measures to all

urban programming;
 Institutionalize multi-sector stakeholder participation through all phases of program
planning, implementation, and management.
E. Study Components & Structure

20. To achieve the Program’s goals, this pre-feasibility work comprises three inter-
related components, which are consolidated into this Final Report as illustrated in Figure I-4.
This Study then leads into detailed project preparation (PPTA) and implementation resulting
in the outcomes listed above.
page 21
Figure I-4: PICIIP Structure
1. Integrated City Development Strategies (ICDS)

Establishes the planning and development frameworks to guide sustainable
development through the short, medium and long-terms. This component
includes:
 Rapid Urban Assessments (RUA) and
 Integrated City Development Strategies (ICDS) for both cities.
2. Climate Risk Vulnerability Assessment (CRVA)

Provides critical crosscutting guidelines to ensure all program components
incorporate appropriate actions to address anticipated climate change impacts
thereby contributing to city resilience.
3. Pre-Feasibility Study (PFS)

Based on the ICDS work, and incorporating full CRVA considerations, the PFS
presents a series of Sector Assessments and Roadmaps for selected priority
page 22
infrastructure investment components. These include background analyses,

needs, justification, conceptual design, and costing. Investments are summarized
in short, medium and long-term packages.
F. The Problem Tree

Figure I-5 illustrates the Problem Tree, highlighting the constraints to liveability, resilience, and
competitiveness of Punjab’s intermediate cities. Urban sprawl could be included as both a major
symptom and cause of many of the current urban challenges.
page 23
Figure I-5: Problem Tree
page 24
G. Approach and Methodology

21. This Section provides an overview of the approach and methodologies employed
throughout the preparation of this MTIIP. Detailed methodologies are further described in the
various technical sections.
Overall Approach
22. The overall approach proposed for the preparation of the MTIIP is highly integrated
and participatory as illustrated in Figure I-6. This acknowledges the multi-sectoral, integrated
nature of the PICIIP and the MTIIP as illustrated in Figure I-7. More specifically, the MTIIP
highlights the importance of urban resilience in enabling economic, and therefore social,
development.
Overall Methodology
23. The overall Approach outlined above will be applied throughout the completion of this
assignment. In addition, specific Methodologies will be utilized in completing the detailed
tasks and achieving the overall objectives of the assignment. These Methodologies are
interconnected and include:
23.1. Document Identification and Review

The identification and review of existing documents is a key starting point for the effective
completion of the work. The analysis of existing strategies, policies, programs, plans, and
projects at national, regional, and local levels will give our team a solid background for
the planning exercise. The GoPb and the Urban Unit have excellent documentary and
GIS data that will greatly ease the work. The work will also draw upon related global best
practices.
Methods: work with the client to identify relevant documents; prepare a list and officially
submit the request to the client (hard copy and digital); review documents.
23.2. Field Data Collection

Project field offices were established to support comprehensive field reconnaissance
missions to complement and crosscheck data gathered from existing documentation,
workshops and interviews. The teams worked in close collaboration with local
governments to undertake the fieldwork spending time in both urban centers. We used
the opportunity to engage with a cross-section of stakeholders seeking multi-dimensional
understandings of the local situation while identifying issues, opportunities and
constraints.
Methods: document review, field reconnaissance, interviews, stakeholder working
sessions.
23.3. Working with the Local Authorities - Building on Their Priorities

While guided and supported by higher authorities, urban planning, development, and
management ultimately becomes the responsibility of local authorities. The teams
interacted closely with TMA officials in the respective urban centers, and through a series
of Stakeholder Participation Workshops ensured the participation of community leaders
and others who advise local authorities.
Methods: regular interaction with Tehsil Municipal Administration officials and local
Urban Unit officials.
page 25
Figure I-6: Integrating Complementary PICIIP Components
Figure I-7: Integrated Urban Development
page 26
23.5. Stakeholder Participation - Engagement

One of the keys to developing appropriate locally accepted and ‘owned’
recommendations and investment programs, is the active participation of all stakeholders
throughout the planning and implementation processes. Working with the Urban Unit and
city administrations, the teams undertook a series of Stakeholder Workshops bringing
together a full cross-section of public sector, private sector, Non-Governmental
Organizations (NGO), Community-Based Organizations (CBO), and other interested
parties; offering opportunities for the diverse range of interests to be incorporated into the
PICIIP exercise.
Methods: Workshops with local support (NGO or identified authority) will be undertaken.
A comprehensive and on-going IEC (Information, Education, and Communication)
program will be recommended subject to available resources for on-going and
widespread engagement and information dissemination.
23.6. Global Best Practices

The teams incorporated locally adopted global best practices into the work based on
team members’ extensive international experience incorporating inputs from CDIA and
ADB.
H. Strategic Approach to the Multi-Tranche Finance Facility for

Intermediate Cities in Punjab
Infrastructure and Cities as Powerful Development Tools:
24. Delivering well planned infrastructure and productive cities are some of the best
investments that Pakistan can make in support of long-term and inclusive growth. Indeed, no
country has sustained rapid economic growth without both considerable public investments in
infrastructure (See Figure I-8), and the development of its primary urban centers. While this
correlation between the built environment and growth is strong, it masks a more complex
backdrop.
25. ‘Real world’ experiences of urbanization produce both winners and losers. This range of
outcomes is linked to urbanization being more than a physical transformation
26. As discussed in Chapter II and Chapter III of this Report, it is also a complex and
interdependent social, economic and environmental change process.
Figure I-8: All nations 1960-2013: Correlating economic maturity with urbanization levels
Economic maturity
% Urbanized
page 27
27. Unchecked and unplanned for, these linkages can break down and result in negative
impacts that affect social structures and norms, harm the environment and reduce or delay
economic growth.
28. Urbanization can be a powerful force for good as well serviced, efficient, and connected
places or activities, and strengthen or accelerate economic development. But this growth is not
automatically inclusive, particularly where active cultural, ethnic, geographical, and political
forces exist.
29. Punjab’s strategic imperative to focus on inclusive growth as well as build climatic
resilience and foster economic competitiveness are well aligned to the objectives of assisting
cities for the Asian Development Bank. Through its country programming and international
cooperation, the ADB has an opportunity to assist GoPb decision-makers focus on infrastructure
development and cities as engines of growth and poverty reduction. With the PICIIP facility, the
GoPb will have a platform to act, influence and lead on improving the responses to the challenge
of delivering more sustainable and catalytic infrastructure in intermediate cities for inclusive
economic development.
30. A window of opportunity exists during which the PICIIP can help intermediate cities in
Punjab to capture the long-term inclusive benefits that infrastructure and cities can bring.
Targeted intervention in the Provincial urban context can offer the best Value for Money return
for Government-led, private sector supported investment coupled with ADB underwriting.
31. The rationale is threefold:

31.1. First, infrastructure and cities that are planned and delivered today will ‘lock-in’
long-term patterns of growth. Infrastructure that is delivered today will guide
future development by setting patterns of settlement, trade, industrial and urban
growth. For many intermediate cities in the province, the most important spatial
and economic decisions need to be made now.
31.2. Second, many intermediate cities in Punjab have access to a huge demographic
dividend. Very large populations of young people are entering the workforce and,
given the opportunity, can take active and productive roles in the economy.
Intermediate cities and emerging urban areas are essential to absorbing this
working population and there is a corresponding risk of destabilization if such
employment opportunities are not achieved.
31.3. Third, the enabling environment is holding back investments in sustainable and
inclusive infrastructure and cities. Rather than a lack of political will, capital or
even expertise, it is the lack of evidence, strategy, capacity, prioritization,
transparency, regulatory structures, and institutions that constrains progress.
These enabling environment challenges are discussed in more detail in Chapter
III and Chapter V of this Report.
32. As discussed in Chapter II and Chapter III, Punjab needs better-planned cities, but also
improved infrastructure, which links these cities and maximizes their combined potential. One of
the most important functions of good infrastructure is to efficiently connect national and regional
centers of social and economic activity, which agglomerates in cities. The PFS Team therefore
see that infrastructure and cities must work together around related synergies, for example
‘provision and access’, ‘growth and inclusion’, ‘production and export’ and ‘connection and
distribution’. The PICIIP brings these two complementary areas together and sees a
considerable range of long-term benefits (as discussed in Chapter V) in doing so. The next two
sections briefly identify some of the challenges and opportunities, both Sahiwal and Sialkot, as
well as Provincial government and Punjab society at-large face in their efforts to realize the
benefits of infrastructure and cities for economic development.
page 28
Key Challenges Addressed by the MFF
33. Punjab needs support to foster more competitive economic strategies for its intermediate
cities. Infrastructure and cities are at the heart of this, both enabling and reciprocating growth.
The PFS Team have identified 5 key issues that the MFF responds to in the proposed MTIIPs
that are detailed in Chapter V of this Report. These are:
33.1. Strategic and integrated planning – The process of urbanization through the
development of infrastructure and cities must reflect and support national economic
planning as well as physical, social and environmental constraints. This is a key
weakness and undervalued attribute of better planning processes. The
institutionalization of the ICDS process as proposed in Chapter IV and Chapter VI is a
direct response to this challenge.
33.2. Inclusive growth – One of the most important questions that the MFF addresses
through the various MTIIPs detailed in Chapter VI is how the design of infrastructure and
cities can most effectively include the poorest, vulnerable and other marginalized groups
in the growth of intermediate cities.
33.3. Urban governance – As detailed in Chapter VI, from the point of provincial
strategies, planning guidelines and related economic infrastructure, through to local and
city levels, the overall system of governance in Punjab needs to be supported to focus on
the specific needs of the built as well as the rural economy. Chapter III outlining the
Rapid Urban Assessments of Sahiwal details this nexus more specifically.
33.4. Infrastructure finance – How will Punjab pay for these ambitious growth plans?
What are the sources, models and strategies that attract capital and build sustainable
revenues to underpin infrastructure financing and urban service provision? This is
discussed in more detail in Chapter VIII of this Report.
33.5. Resilience – Climate, disaster, and social resilience need to be bound together
with infrastructure, urban, and economic planning whilst also improving stewardship of
resources and protection of the environment. These issues are discussed throughout this
Report as they underpin all of the work of the PICIIP. The assessment of the viability
from a resilience as well as poverty perspective is discussed in Chapter VII of this
Report.
34. The work of the PICIIP and resulting MFF will respond to these challenges by acting as a
catalytic platform. It will enable GoPb as well as the cities concerned to harness the power of
managed urbanization and coordinated infrastructure service delivery for poverty reduction and
inclusive growth. The MFF will seek to address constraints in the enabling environment for
infrastructure service delivery. It will improve planning and management of the built environment
at city and provincial levels simultaneously to more closely support economic development
planning. This will render intermediate cities more economically efficient and socially inclusive
(in planning, delivery, and use phases). In time, this will help government to focus on other
intermediate cities within the province and move towards a sustained economic platform, and
ultimately, to budgetary independence.
35. Effectively planned infrastructure and well-governed cities have the potential to yield not
only economic growth for all, but also to form the basis for resilient systems, effective mitigation,
and adaptation to climate change. As is shown in Chapter VI of this Report, infrastructure for
energy, water and sanitation, waste management, and transportation can all be designed in
ways that contribute to climate change mitigation through increasing efficiency and reducing
carbon emissions.
36. As was seen during the Inception Phase, rapidly growing cities in Punjab are clearly
susceptible to a range of climate-change related hazards, but have not realized this. Warming
page 29
trends, extreme temperatures, drying trends, extreme precipitation, damaging cyclones, sea level
rise, and flooding affects cities in Punjab. The MFF makes use of proactive and targeted
approaches to climate change and environment issues by strengthening urban infrastructure,
economic and social systems.
37. The preliminary social, gender, and environmental analyses detailed in Chapter VII are
an important dimension of the design of the MFF and are integral to its success. The PFS has
undertaken the various analyses for Chapter VII as well as for the IDIA summaries as required
by the CDIA Checklist. Some of this work has relied on the AWARE tool for assessing climate
risks.12 Similar tools and methodologies as well as focus group discussions (FGDs) have been
used for undertaking detailed gender and social analyses. Through these assessments, an
appreciation of the correlation between urban infrastructure, inclusion, resilience, and
competitiveness have been factored into the MTIIPs. Ensuring the participation, voice, and
perspectives on social inclusion to large scale programming as noted in Chapter IV ensures that
MTIIP investments are inclusive and gender sensitive. Our initial thinking on how the MFF
integrates gender includes:
37.1. The creation of a gender strategy for the PICIIP under the work of the
forthcoming PPTA;
37.2. The creation of gender and social inclusion guidelines and assessments as
required by the ADB;
37.3. Consistently revising gender-sensitive approaches within resulting MTIIPs;
37.4. Developing principles that provide for specialist and timely input to scoping and
design of investments; and
37.5. Robust quality and review processes that have included important roles for
crosscutting issues to be incorporated into investments.
Fostering Infrastructure That Reaches the Poor
38. Beyond construction, services, and physical presence, infrastructure has the potential to
unlock growth, lower transaction costs, and when done well, reduces vulnerability and saves
lives. However, the ability of city and provincial government (and society) to keep up with and
finance infrastructure demand, particularly at the last mile and in the poorest cities, is often
compromised because of finance, planning, and delivery capacity.
39. Most significantly, the poor can benefit directly by using the services infrastructure
provides, such as lighting, transport, sewerage, electricity and water for irrigation. Transport and
ICT services allow poor people to access markets, health and education facilities. The poor can
also benefit indirectly from the spill over effects of economic growth stimulated by infrastructure
services including jobs. New, cheap, and reliable infrastructure services lower production and
transaction costs, and allow cities and their businesses to grow whilst reducing prices. Rising
consumption stimulates demand and can reciprocate growth.
40. Access is most limited for the poorest people and families, and these deficits are severe
constraints to economic and human development. Tariff inequities where costs are not sufficient
to ensure sustained maintenance and investment, as well as poorly developed distribution and
connection arrangements, can mean that only industry and the wealthy or middle classes can
access reliable energy transport and local utility services. Moreover, those that can or are willing
to pay will often allocate a large proportion of their income to purchase these services, or rely on
informal providers in light of poor municipal provision. This may further accentuate their
vulnerability to other risks such as having to seek informal work at low or zero pay, or being
forced to displace and break apart households in search of incomes.
12
See http://www.acclimatise.uk.com/index.php?id=4&tool=1
page 30
41. Conscious, deliberate and multidisciplinary planning is needed for infrastructure

to realize better socio-economic gains. Effective planning demands evidence, data, and skills.
The PFS Team have therefore sought partners and experts who bring experience and lessons in
creating inclusive infrastructure policies and programs, and these have been factored into the
MTIIPs as presented in Chapter VI. Planning at an integrated and systems level (national,
regional, and local) allows for the role of infrastructure to support development outcomes. It also
needs to combine the physical (‘hard’) aspects of human settlements with issues relating to
social cohesion and governance (‘soft’), helping communities and cities to understand and
prepare for highly disruptive natural hazard events and accumulating stresses.
Cities Offer Previously Untapped Development Gains
42. Historically, most urban development has been a product and consequence of economic
development – the MFF supporting the PICIIP have an opportunity to better shape intermediate
cities in Punjab. The PFS approach for design of the MFF is founded on the perspective that
sustainable economic development is underpinned by cities that facilitate more concentrated and
productive interactions between businesses, governments, and citizens. The Team is of the view
that at their best, cities are an important tool for broadening social mobility and making
infrastructure more inclusive, ‘user friendly,’ and affordable. Compact, connected and
coordinated cities in particular are often advocated as principles for improved urban
development.13 These approaches carry many good principles (see Table I-9 below). The PFS
Team have urged contextualization of topics such as density which can both mean something
different and may not always be the best solution for certain places.
Table I-9: How Better Cities Can be a Force for Good

Economic Benefits Environmental Benefits Social Benefits
Lower cost urban development Cities can be efficient both in Compact cities reduce urban
and management that makes their consumption of natural sprawl by limiting
better use of space, transport, resources and in services development to areas in ways
utilities and public services. provision, allowing more people that don’t reduce housing and
to access services and reducing employment options for the
the impact on climate and the poor.
environment
Intensive regional markets in Low-carbon and Urban areas offer Effective
urban areas can support environmentally sensitive distribution and access to
agricultural products and growth patterns can emerge social infrastructure and
processed goods over time. services such as healthcare
and education.
Greater capacity for high- value Opportunities for community More democratic structures of
economic functions such as action and cooperation and government and governance,
financial and professional more socially inclusive and greater diversity and tolerance
services and secondary/ tertiary gender equitable societies.
or even high-tech manufacturing.
Economies of scale are higher.
Talent is attracted to better cities.
Compact and well planned cities
can be more resilient to natural
hazards and shocks.
43. Despite significant investments by all orders of government in Pakistan, more needs to
be done to address current and emerging municipal infrastructure needs. It is for this reason that
the GoPb, in partnership with the CDIA and the ADB, have committed to work with intermediate
13
New Climate Economy (2014): Better Climate, Better Growth.
page 31
cities to establish a package of investments to unlock the latent potential that many cities have
shown.
44. The future prospects for cities in Punjab will be determined by the management of three
closely interrelated aspects of their sustainability:
44.1. competitive and economic sustainability: the ability of intermediate cities to

attract profitable businesses and grow as centers of production -- to attract investment,
create jobs, facilitate efficient communications and linkages, and enable continuing
improvements in productivity and standards of living both within themselves as well as
contributing to Provincial growth;
44.2. resilience and environmental sustainability: the ability of cities to provide a

resilient habitat – shelter, safe water, air quality, waste management, energy efficiencies,
climate change adaptation, and mitigation measures -- necessary for healthy, productive,
satisfying lives for their citizens now and into the future; and
44.3. inclusion and social sustainability: the ability of intermediate cities to

provide a safe, vibrant community where the opportunities and benefits of economic
growth are equitably shared, broad community views are incorporated in decision--‐making,
community leaders are accountable, laws are applied impartially and are inclusive of
women, marginalized, vulnerable, and diverse ethnic and religious groups. Cities in
Punjab must create opportunities and vertically bridge different sectors of the
population, enabling individuals and groups to interact, thereby strengthening social
cohesion.
45. Building sustainable cities in this period of Punjab’s rapid economic and population
growth will always be a work in transition. The ability of intermediate cities to anticipate
growth by managing outcomes across these three areas of sustainability and to plan,
finance, and deliver services is largely dependent on the capacity and effectiveness of urban
governance. Urban governance comprises the formal national, regional, and local
government jurisdictions and arrangements with responsibilities for city management and
services, and the formal and informal arrangements for community, business, and civic
engagement in decision--‐making. The structure, effectiveness, and inclusiveness of urban
governance vary greatly between cities in Punjab. Frequently, effectiveness and
coordination is dependent on the drive and vision of particular city leaders. Inaction, poor
planning, and prevarication are costly as urban growth inexorably continues. Haphazard
development including the development of flood prone or otherwise unsuitable land and
occupation of potential infrastructure corridors can have legacy costs for decades.
46. While there is considerable variation across the Province, there are core problems
with the planning, financing, and management of urban systems and the delivery of efficient,
sustainable outcomes. These problems are complex and have resulted from the interplay of
governance and resource issues, particularly at the Tehsil levels; these issues are not easily
resolved, and their impacts are exacerbated by the speed of change.
46.1. At the provincial government level, urban policies and strategies are often
ambiguous about urban growth; urban planning systems and laws are antiquated
with urban planning delinked from both budgeting and long term financial planning.
Decentralization and devolution policies are frequently not aligned with the tax bases
of different levels of government and do not create sufficient incentives for cities to
improve their own revenues. Property rights are often unclear with limited control
over corruption and manipulation of public land assets.
46.2. At the city level, planning, management, and financial skills are in short supply;
participatory governance is often weak with limited community and business involvement
in setting priorities. Land management and administration is also often inadequate and
compounded by confusion over responsibility on the urban periphery. This in--‐turn
page 32
can lead to uncertainty, forced evictions, speculation, and inflation in local land markets
which in the absence of planning for growth, constrains the supply of both housing and
infrastructure and results in the continued growth of slums.
47. In response to the above, a number of donors in the urban sector have identified the
various channels through which investment in infrastructure can contribute to sustainable
growth. These are summarized as follows:
47.1. Reducing transaction costs and facilitating trade flows within, between, and
across city regions and across national and provincial borders;
47.2. Enabling economic actors – individuals, firms, governments – to respond to new

types of demands by a variety of new and emerging users in different places;
47.3. Lowering the costs of inputs for entrepreneurs and industries, or making existing
enterprises more profitable;
47.4. Creating employment, including in public works (both as social protection and as
a counter-cyclical policy in times of recession);
47.5. Enhancing human capital, for example by improving access to schools and health
centers; and,
47.6. Improving environmental conditions, which link to improved livelihoods, better

health and reduced vulnerability of the poor.
48. A long-term, cooperative effort among all three orders of government will be required to
address the challenges of current and emerging municipal infrastructure needs. The MFF
strategy that is presented herein is guided by the following principles:
48.1. Intermediate cities in Punjab are the stewards of the infrastructure they own. The
Province has an obligation to help Tehsils and cities to address their own (self-
articulated) development challenges.
48.2. Comprehensive asset management plans should guide investment decisions.

Indeed, this is the focus of the MFF approach.
48.3. Those who benefit directly from Tehsil level investments should pay for the
services, whenever feasible.
48.4. Opportunities should be pursued to provide infrastructure more efficiently by

forging partnerships with other communities or consolidating services where
possible.
48.5. Maintaining roads, bridges, water, sewerage and wastewater in a manner that is
sensitive to changing social, economic and environmental factors is key to
ensuring longer term sustainability of services, and should therefore be a top
priority.
48.6. All communities face unique challenges that require tailored solutions and Tehsils
need to accept and respond to this in a meaningful manner.
48.7. 4
49. The above are further detailed and elaborated by the PICIIP Imperatives presented in the
previous Section of this Report. As part of the Sectoral Strategies and accompanying Road Maps
(see Chapter VI) detailed in this Report, activities in the following three areas have been
discussed at city as well as Provincial levels with a variety of stakeholders:
page 33
49.1. Making asset management planning and public reporting on investments

universal.
49.2. Making optimal use of the full range of budgeting and infrastructure financing
tools as provisioned by law in Pakistan.
49.3. Addressing the structural challenges that are confronting fledgling municipalities.
50. Resolving municipal infrastructure challenges for intermediate cities in Punjab must begin
with improved asset management. The GoPb views this as a prerequisite for a productive
discussion about solutions, including permanent funding for municipal infrastructure.
51. Throughout Provincial Departments, government has stated that City Administrations
seeking infrastructure funding must demonstrate how proposed projects fits within a detailed
asset management plan. This will help ensure that limited resources are directed to the most
critical needs and directly respond to ensuring inclusion, competitiveness and resilience (as
described above). Indeed, the institutionalization of the ICDS process demonstrated in the
PICIIP (and discussed in detail in Chapter II and Chapter III) will ensure that such behavioural
changes are permanent and change the dependency culture of municipal administrations.
5
52. Chapter VI of this Report sets out the information and analysis that supports such
investments for Sahiwal. Such analysis should be mainstreamed as processes that all
municipalities should undertake. The MTIIP approach (as with the ICDS approach) should be
mainstreamed, and the work of the PICIIP has served to demonstrate how the GoPb can make
this happen in a very practical way.
53. Government is moving in the direction of standardizing the MTIIP approach for municipal
asset management planning. Aside from Lahore, there are no cities in Punjab that have detailed
asset management plans. Financing strategies are a key component of an MTIIP. The GoPb as
well as City Administrations must be open to all available revenue and financing tools, and at the
time of writing, there are only a limited number of options available for Pakistani cities. For
example, there may be a need for some cities in Punjab municipalities to revisit their zero debt
policies. Debt financing, such as debentures, loans, and construction financing agreements, help
to spread the cost of expensive capital projects over time so that both current and future users of
services share the burden. In addition, some cities may need to revisit their policies regarding
user fees, such as water rates. The prices of water and wastewater services. These fees do not
often consider the role of many essential urban services as both economic as well as social
goods. Such issues are further detailed in Chapter VIII of this Report.
54. The below table (Table I-10) provides reference to the principles and approaches
identified above and elaborates the detail where the specifics of the MFF can be found in this
Report.
Table I-10: PICIIP requirements and their detail in this Report

Reference Chapter in
PICIIP MFF Requirement
this Report
1. Road Map
The PICIIP MFF contains sectoral Road Maps for Solid Waste Chapter VI
Management, Water, Sanitation, Sewerage and Drainage as well as
Transport. The financing of improvements in the urban core of Sialkot
and Sahiwal do not yet contain a detailed investment plan, but Road
Maps emerging from the strategies resulting from the ICDS process are
presented in Chapter V.
All the investments noted in the Sectoral Road Maps of Chapter VI are Chapter VI
page 34
further summarized and costed in Chapter VIII and assessed in Chapter

VII.
As required by the ADB MFF guidelines, the Road Maps provide Chapter VI
preliminary detail on:
 the strategic directions for Solid Waste Management, Water,
Sanitation, Sewerage and Drainage as well as Transport in Chapter VII
Sahiwal;
 the list of success factors for better performance; and Chapter VIII
 these are then evaluated and assessed for viability from an
environmental and social perspective. These evaluations stress
the importance of the Road Maps to growth, poverty reduction,
gender and development, and inclusiveness (or the extent to Chapter I
which it is a binding constraint).
Chapter VI
The Road Map builds on the detailed assessments of physical and
nonphysical conditions in Sahiwal. These assessments highlight the
main investment and non-investment bottlenecks, risks, and mitigation
conditions prevalent in the city. Such information then informs the
strategic context, policy framework, and investment programs (the so-
called enablers), as well as the interventions needed and their
sequencing.
2. Strategic Context
The PICIIP provides a clear strategic context, which has been Chapter I
developed through the work of the ICDS and CRVA.
The MFF sets out a long-term partnership for the chosen sector(s) and Chapter VIII
thematic areas.
The strategic context also details the principles and imperatives that Chapter I
the MFF builds on.
3. Policy Framework
The PICIIP MFF builds in the national and local policy framework that Chapter VI
goes beyond the relevant technical or operational aspects. It summarizes
the strategic vision for each sector, and summarizes the principles
and targets for change.
Chapter VI
The policy framework also summarizes the main challenges and
operating conditions in the relevant sectors to ensure efficiency, cost
recovery, sustainability, and competition, as appropriate. This information
leads to reforms proposed over the short, medium, and long term that
help create the right environment for public and private investment.
Chapter VI
The changes or reforms proposed further address financial, economic,
commercial, legal, regulatory, and institutional matters.
The PICIIP MFF finances physical and nonphysical investments.

Although nonphysical investments can include policy changes, these
should occur only within an existing policy platform.
4. Sectoral Investment Programs and MTIIPs
The MFF provide implementation and costing detail in the form of an Chapter VIII
MTIIP. The MTIIP is an investment program based on a set of sector-
specific projects and activities that are eligible for financing under an MFF Chapter VII
over time. Individual investments within the investment program are
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comprised of both physical investments, such as civil works, equipment,

or rolling stock, and nonphysical investments or activities, such as
capacity development and advisory work.
5. Financing Plans
The MFF identifies initial financing options for the overall MTIIP. It Chapter VI
does not provide detailed plans as these will be developed at PPTA
stage. Where feasible, the financing options have specified the sources Chapter VIII
of finance, availability, period of financing, and amounts.
55. Without a clear implementation plan, the above strategy will remain mostly academic. There
is a need to consider the implementation arrangements which will assist in the translation of
the above strategy into an implementable action plan.
56. ChapterVI of this Report takes the overall PICIIP-wide strategic approaches noted above,
coupled with the imperatives and translates these to Sector Startegies for Solid Waste
Management; Water, Sanitation, Sewerage and Drainage and Transportation Planning.
These Sector Strategies start with Sectoral Assessments and then highlight the
connectivity to the work of the ICDS compoenent as presented in Chapter V of this Report.
The connectivity between the Sectoral Assessments and the Strategies result in the Road
Maps for each of the aforementioned infrastructure components. Finally, these result in a
series of programmed investments for each sector, the Medium Term Infrastructure
Investment Plans (MTIIPs).
57. The considerations by which the MTIIP processes have resulted in a programme of
investments as scheduled in Chapter VI is depicted below in Figure I-11.
Figure I-11: Mainstreaming MTIIP Processes into the MFF
58. As clearly articulated above, the key to the implementability of the MTIIPs will be their
governance arrangements. It is for this reason that a considerable amount of emphasis of this
Report has been devoted to the delivery mechanisms by which investments might materialize.
These governance arrangements are essential to ensuring that the implementability of proposed
investments are provided every opportunity to ensure their success. Chapter VI therefore starts
and ends with considerable discussion on Governance. This is both deliverate an intentional, as
it will be these arrangements (their existing context as well as their proposed reforms) will drive
the success of the PICIIP.
59. With such a concentration of key assets condensed into small areas, the significance of
preparing intermediate cities for unexpected challenges and crises becomes increasingly
evident. While natural disasters have always been a risk in Pakistan, the economic and societal
page 36
costs of extreme weather events in intermediate cities in Punjab have been steadily increasing
in recent decades and will continue to increase as its cities continue to grow.
60. This is also due to the fact that extreme weather events resulting from climate change
in the Himalayas and the Arabian Sea coupled with seismic events have become more
frequent, more intense and are projected to further increase in the future, posing
unprecedented threats to cities.
61. Traditionally, climate change adaptation strategies have been tailored to specific local
contexts. As each city has a unique set of needs, vulnerabilities and characteristics, it is difficult
to identify one-size-fits-all adaptation measures. However, crises in Pakistani cities resulting
from extreme weather events inevitably affect not only the location in which the event took
place, but have a cascading effect in neighboring cities and regions, as well as on markets and
commerce, with consequences spreading far beyond city borders.
62. It is mutually beneficial for intermediate cities in Punjab to support one another in their
resilience development and it is efficient for any accumulated knowledge to contribute to
practices elsewhere. This needs to be coordinated at the provincial level and the PICIIP
presents a significant opportunity to play such a coordinating role. Furthermore, many of the
challenges intermediate cities in Punjab face are shared, such as rising temperatures and
increasing flooding, and many existing characteristics and patterns are also shared, such as
types of canal systems, building materials and technologies, citizens’ use of utilities, and
changing populations.
63. Infrastructure plays an important role in sustaining the development and requirements of
a growing number of intermediate cities in Punjab. It provides critical social and economic
services not only to the city where they are located but also to regions beyond that. Infrastructure
assets such as roads, bridges, drains, water, and power supply networks, buildings, etc., are
seen to have a long operational lifetime and are vulnerable to climate impacts like storm surges,
earthquakes and floods. Because of the historical legacy of these investments in Sialkot and
Sahiwal, they were not originally designed with a climate resilient purpose in mind. The type,
location and engineering detail of investments proposed in Chapter VI of this Report are based
on probable climate change impacts. Investments will need to be maintained and managed such
that it they are also prepared to withstand climate impacts that Sialkot and Sahiwal may be
subjected to during their operational lifetime. This has been discussed in Chapter IV and
Chapter VII.
64. In determining the range of infrastructure investments presented in this Chapter, the PFS
Team have considered the following key issues in how Sahiwal can propose a climate sensitive
package of investments to respond to the dual aims of economic development and poverty
alleviation on one hand, whilst responding to climate change on the other. The range of issues
that have been considered in the program of investments proposed in the key sectors include:
i. The ability of city and provincial government to facilitate progress in adapting PICIIP
investments to better respond to current and longer term impacts of climate change;
ii. Establishing and mainstreaming climate sensitive mechanisms in economic and
regulatory models and strategies;
iii. Refining formal and emerging (i.e.: ICDS) planning systems to include climate-
sensitive responses;
iv. Sensitizing planning systems for city infrastructure to adapt to the impacts of climate
change;
v. How to ensure municipalities and their partners can form collective responses to
reduce the risk of climate impacts;
vi. Increasing the adaptive capacity in infrastructure companies and others (e.g.
investors) to enable robust and cost effective climate change adaptation decisions to
be made;
page 37
vii. Improving municipal decision-making to factor aspects of climate change in all that is
done;
viii. Taking specific action at the municipal level to improve the access to specific climate
information and research through better information sharing, disclosure of risk and
evidence, especially for industries within the city;
ix. Defining a program of commitments to wards climate specific goals at the household
as well as industrial levels;
x. Monitoring the progress made in adapting infrastructure to more climate sensitive and
responsible changes; and
xi. Defining a pathway to integrate city level actions on climate change with more
national level ones.
I. PICIIP Components and Conceptual Clarity in Addressing MFF

Issues
65. With the above in mind, the Study Teams consider that the PICIIP must be able to
influence and impact the following areas that will emerge from the resulting list of investment
programs noted in Chapter VI of this Report. Again, the objectives of engaging in the range of
interventions is to improve competitiveness, resilience and inclusion through:
65.1. Infrastructure and essential urban services: this is seen as the key issue to
unlock the development potential of Sahiwal. The initiatives selected by Government
from the listed initiatives in this draft MTIIP will aim to address the complex issues noted
above through a three-pronged methodological approach. The first will focus on technical
project development with an emphasis on implementing immediate infrastructural service
improvements in key Union Councils (UCs) of the city. Based on the implementation of
works in these UCs as well as on a citywide level, the second key area will be to explore
the potential options for phasing-in of additional improvements to meet the demands of
urban constituents for the longer term as articulated in the ICDS visioning and strategic
processes. The third integrated and corresponding area will be to identify the main policy
issues, based on previous Pakistan and Punjab experiences and potential options
developed for increasing decision-making and other necessary actions at the Municipal
Council level and the simultaneous strengthening of civil society on governance matters.
The overall approach of this focus area is to provide an integrated strategy for the
upgrading and rehabilitation of essential urban services. Rather than sect orally
addressing a number of sub-projects in various technical disciplines, they will be dealt
with in an integrated and iterative manner, with a view of increasing the overall efficiency
of the city on a neighborhood-by-neighborhood basis. Essentially the goal of this
component is to move towards treatment of essential urban infrastructure as both an
economic and social good, ensuring that services have a balance of social provision and
economic cost recovery. The PFS Team accept that cost recovery is only possible
where improvements in services are both tangible and visible. This tangibility and
visibility of improvements must come first and only then can residents be expected to
pay for the improved levels of service they see. Coupled with the political willingness to
drive such change, this element is crucial to ensuring the longer-term viability of Sahiwal
and the management of its infrastructure on a proactive (rather than a reactive) basis.
65.2. Tax, public financial management, budget support and institutional

development: the ability to influence public spending directly on the priorities
established by the Sahiwal (and its stakeholders) will be a top priority, given the central
importance of these issues for achieving Government priorities14. This is also important
14
Strategic documents consulted and incorporated into the MTIIP include the following:
 ADB Urban Operational Plan (2012-2020), ADB Pakistan Country Partnership Strategy (2015-2019)
and the ADB Urban Sector Strategy
 Pakistan 2025: One Nation - One Vision
 Punjab Growth Strategy 2018
 Punjab Urban Development Sector Plan 2018
page 38
for state/society relations, and hence broader political development. From the work of
the ICDS, it is already clear that the GoPb must be able to strategize for longer-term
needs of its city constituents and think through the links between budget support, better
PFM, stronger institutions and domestic accountability. In the process of the (currently
underway) local government election process and the expected national elections in
2018, there is a risk that this necessity will be overlooked because of the unwillingness to
make necessary changes in fear of political backlash and the loss of popular appeal.
The cost recovery of services is becoming a reality that the government must respond to.
Wholesale subsidization of services is an expensive way to win political favor. A well
maintained, efficiently delivered service regimen that responds to the needs of city
residents is a better measure of how well government is doing and also responds to the
priorities as determined in the GoPb strategies.
65.3. Public service reform and capacity building: closely aligned to the above is
the necessity for traditional, ‘top-down’ approaches to building technical capacity in core
civil-service institutions, particularly those managing public services. This is discussed in
more detail in various parts of Chapter VI of this Report. Most importantly, this includes
individuals at the city level from the forthcoming Sahiwal Municipal Corporation. This has
also been acknowledged and recognized by Government as essential to the long term
realization of the improvements which infrastructure is meant to catalyze.
The LG&CDD have made significant gains in addressing the needs of poor and
marginalized communities, but such thinking now needs to be shared by all departments
working at the urban level. The restructuring of the Tehsil to a Municipal Corporation and
the Study’s proposals to align the structure so it directly responds to the imperatives of
inclusion, resilience and accountability will allow government to connect strategy with
implementation. This has been largely missing in previous reforms. Our consultations
with GoPb (via the ICDS workshops and meetings with the Urban Unit and LG&CDD as
well as the TA of Sahiwal) have helped to inform thinking on how to better align formal
public institutions (at the State, market and civil society levels) with informal social
institutions and norms. This suggests more realism about timescales, and more
recognition of underlying constraints to reform (for example work done on the political
economy of pay reform in the civil service) may still be required in order to find the right
alignment of incentives to tackle urban services and the incentivizing of staff towards a
more delivery and customer focused mentality. The challenge will be to find more and
more incremental approaches such as the PICIIP that take account of social and political
realities, while still supporting a longer-term, strategic direction of change towards more
rules-based delivery institutions. There is considerable existing work to draw on in
Pakistan and the region, some of it championed by the GoPb, as well as an ever
increasing and comprehensive research base15.
65.4. Service delivery: the United Nation’s World Development Report as well as
Transparency International have highlighted some of the political constraints hampering
essential service delivery in Pakistan specifically. Both reports also acknowledge the
significant gains that have been made over the past decade. Service delivery is
essential to support both economic development and poverty alleviation at the household
(and therefore city) level. Working in a very context-specific way at local levels will yield
better and longer-term results, especially as Sahiwal is undergoing extensive political
and social change. There are also more generic lessons to be gleaned from looking at
what has worked elsewhere that has been distilled into our list of projects for
consideration at the city level. This is further discussed in Chapter VI and then again in
Chapter VIII of this Report.
 Millennium Development Goals (MDG)

 GoPb Mid-Term Development Framework 2013-2016 (MTD 2013-2016)
15
Merilee Grindle and John Thomas, "Public Choices and Policy Change: The Political Economy of Reform
in Developing Countries", 1991
page 39
65.5. Collective action around public goods: Both the ICDS and PFS teams have
reviewed and revisited current approaches to working with civil society, with a broader
focus to include more groups (for example, the private sector) which have capacity to
organize and consider how services can catalyze the strategic priorities as earlier
identified. In both Sialkot and Sahiwal, these actors also have strong interests in a range
of public goods which potentially support an inclusive growth agenda. This is identified
and discussed in more detail in Chapter VI and Chapter VIII of this Report. The Study
has also incorporated the need to think about the potential for specific issues (for
example climate change and social exclusion) to provide entry points for alliances
between elite and poor groups: indeed, both the PFS and CRVA Teams have used this
approach to engage community groups and conduct Focus Group Discussions (FGDs) in
Sahiwal. More thought needs to be given to the role of faith-based organizations,
particularly as these play a pivotal role in the lives of many in Pakistan. Women's groups
may also provide a focus for action which crosses class and cultural barriers in most
intermediate cities, including Sahiwal.
65.6. Leakage, Corruption and Transparency: This is often a sensitive issue in

Pakistan, particularly when working with (or through) government. Considering the
forthcoming local government elections, there is a need for frank, open and candid
dialogue on the issue if it is to be addressed. One top priority for the Municipal
Corporation, especially considering the likely institutional changes that may arise, and
the management sourcing of delivery contracts that could emerge, will be to address this
issue openly. There is a high level of demand for ADB funding resources, and therefore
an even better understanding of the political economy around corruption, leakage and
graft is necessary alongside the institutional reforms proposed.
66. The above 6 considerations in line with the aforementioned technical areas and
disciplines have been included in this report as they are key target areas to ensure Sahiwal is
more inclusive, resilient and competitive.
J. Approach to Delivery of Services
67. The above issues and requirements have been distilled into our six imperatives (below)
around which the Medium Term Infrastructure Investment Plans presented in Chapter VI have
been framed. These imperatives have allowed the draft initiatives previously presented to be
finally agreed and ratified with Government in January 2016. These agreed initiatives are meant
to unlock Sahiwal’s potential at the Macro (city-wide) as well as Micro (UC) levels
simultaneously. Throughout the development, agreement and selection of initiatives suggested in
the MTIIP, the PFS Team will aim to:
imperative i. develop saleable investments with objectives for improving inclusion, enhancing
resilience and encouraging competitiveness whilst at the same time reducing
poverty within the medium term;
imperative ii. promote city-based, demand-driven, consensus-based approaches using
rigorous social mobilization techniques in order to deliver the strategic
imperatives discussed. Furthermore, by bringing excluded groups (like the urban
poor) to the centre of the city development agenda, the MTIIP will undertake to
map priorities and set goals so that this process can continue over the long term,
thereby enabling Sahiwal to be more proactive in its development agenda.
Central to this is treating all urban stakeholders (and particularly the poor) as
clients and subjects (referred to herein as constituents) instead of merely objects
or recipients;
imperative iii. ensure service and development constraints are addressed based on their
multiple causes rather than just delivering infrastructure or hardware solutions.
This ensures that responses suggested in the MTIIP are holistic and consider the
range of options for improving the way Sahiwal works and functions, not just
page 40
providing hardware solutions where software ones may be required. MTIIP

interventions and partnerships that build and guarantee discernible impacts on
the lives and livelihoods of all city residents are what is needed in order to satisfy
GoPb’s commitments to the strategies listed earlier;
imperative iv. enable all households (irrespective of their income levels) to obtain some level of
urban services. Of course service and delivery levels will vary based on
affordability and their progressive tariff structures, but this does not mean only
those who can afford services will be provided them. Here the imperative that
urban services are delivered as both a social as well as economic good. The
duality of this approach allows for a differentiation in service levels based on
affordability. Pro-poor urban services (which recognize the needs of the poor to
have access to service in support of livelihoods) will focus on their direct
involvement in identification planning, designing, executing and operating as well
as perhaps even maintaining schemes. Rainwater harvesting, for example is a
cost effective way of providing more of the urban poor with opportunities for
water supply;
imperative v. develop the overall PICIIP with an ultimate view of ensuring the eventuality of the
entire network of intermediate cities as a learning laboratory, where cities can
share experiences with each other. Within government, there is already a good
informal fraternity of key individuals at grade 19 or above. This needs to now
occur between cities so that key personalities within cities can also assist one
another and learn from shared experience. This will allow the PICIIP to be
implemented with a longer-term view of it being learning and regulating to ensure
sustainability long after international support is phased-out;
imperative vi. ensure the entire PICIIP network of cities is aware of the evolving needs of
intermediate cities in Punjab and the challenges they face on a day-to-day basis.
Only in this way can immediate and effective responses to urban inclusion,
competition and resilience be built and institutionalized.
68. Figure I-12 and Figure I-13 are therefore crucial to understanding the approach that all
three Teams have taken to convergence on delivery of the PICIIP Program and preparation of
the investment packages for city-level improvements.
K. Cross-Cutting Themes
69. There are a number of cross-cutting themes integrated into and across all of the project
components. Core ones responding directly to ADB’s Safeguard and social development policies
(See Chapter VII) include consideration of poverty reduction, environment and gender. Equally
important within the context of this project are stakeholder participation, inclusiveness, resilience,
climate change responsiveness and competitiveness. All of these are discussed throughout the
report and integrated into all planning and investment strategies.
70. Poverty reduction and gender considerations are addressed through all of the
infrastructure investments aimed at improving urban living conditions and providing a stronger,
more competitive environment for private sector investment and job creation. Planning strategies
beginning at the Mahallah level ensure that small-scale, direct household benefits are provided
across the full socio-economic spectrum with a focus on the lower-income and kaatchi abadi
core city locations. Directing infrastructure benefits down to the community and household levels
has direct benefits to women with their daily household management needs.
71. A comprehensive discussion building on issues presented in the MFF Strategy detailed
earlier in this Chapter and further elaborating the crosscutting environmental considerations and
actions is provided in Chapter VII. These directly impact the health and well-being of the lower-
income population groups and greatly assist with women’s prime responsibilities of maintaining a
healthy family. Improved environmental management also strengthens the cities’
competitiveness and helps attract private investment and the skilled employees required to
create local employment.
page 41
Figure I-12: Simplified Approach to the PICIIP
page 42
Figure I-13: Pathways to Achieving Competitiveness, Inclusion and Resilience
page 43
72. Climate change will have significant implications for the resulting investments proposed
in the MTIIPs of Chapter VI. As the MTIIP infrastructure investments proposed herein have long
operational lifetimes, they are sensitive not only to the existing climate at the time of their
construction, but also to climate variations over the decades of their use. For example, a
substantial proportion of the PICIIP infrastructure built as a result of this program over the next
five years, will still be in use long after 2030. To increase the resilience of both new and existing
infrastructure, investments have been planned ahead and their impacts managed according to
the findings of the CRVA as noted in Chapter IV. This is an important part of Pakistan’s transition
to a green economy, and Sahiwal’s transition to a bigger engine of Punjab’s (as well as national)
growth. Achieving more climate resilient infrastructure requires the impacts of climate change to
be a key consideration in the way that the PICIIPs have been planned; but this must also follow
through to commissioning and maintenance and persist long after the PICIIP teams have moved
on.
73. This Report’s sections on Climate Risk and Vulnerability address additional cross-cutting
environmental recommendations which are also integrated into all planning and investment
components. This is also detailed in the IDIA Checklist as presented in the Annexes. Flooding
and water resources are two of the main climate-related concerns addressed here aimed at
building greater resilience for the cities.
Box I-14: Challenges for Intermediate Cities in Pakistan Addressed by the PICIIP
The ADB have identified (in previous studies) key challenges which act as barriers to
economic and social development at the city level for Pakistan. These are:
i. low levels of awareness on emerging urban agglomeration patterns to form
appropriate development frameworks, policies and strategies;
ii. lack of institutional and organizational knowledge on potential benefits and

economic gains which can be captured from clustered approaches to
development;
iii. fragmented administrative boundaries hindering intergovernmental coordination

across regions and sub sectors for effective development approaches;
iv. less developed legal/institutional instruments to address the needs of growing

intermediate or clustered cities in a sustainable manner;
v. voiceless and powerless poorer groups within growing urban nodes, leading to
little possibility of sharing development benefits; and
vi. smaller towns and cities suffering more from weaker financial and institutional
capacity to provide public infrastructure than larger agglomerations
74. All investment recommendations are the result of a comprehensive stakeholder

participation program gathering inputs from a cross-section of public sector, private sector, NGO
and community residents to support an integrated approach to the work.
75. Details of crosscutting theme activities will be expanded upon through the subsequent
PPTA work expected in Q2 of 2016.
L. Risks and Assumptions

62. The following is a list of the assumptions made for the preparation of this Report:
page 44
Definition of Poverty16
63. The accepted definition of poverty for use within the PFS is based on income and
consumption as a proxy for income. According to Pakistan Economic Survey, 2013-14 (Chapter
15, Poverty and Social Safety nets), per capita poverty line adjusted for inflation for 2014-15 is
Rs.2447.59/- below which the PFS will consider individuals to be poor. Individuals within 10%
higher than this number are considered to be near-poor as poverty is seen to be a dynamic and
therefore shifting problematique.
Population Projections
64. Design considerations presented herein have been based on the population projections
of Sahiwal as prepared by the Team and agreed by government. These projections presented
in Table I-15 below accept that populations within Sahiwal will grow exponentially not merely
based on biological or historical growth trends but also due to the agglomeration and absorption
of surrounding areas and because intermediate cities in Pakistan will continue to attract a
growing share of urbanization. This has been factored into the projections provided. The
following are the population data used for Sahiwal in determining the MTIIP and other features in
this Report:
Table I-15: Population Projections for Sahiwal
Sahiwal Population Population Population Population Population Population

Urban 1998 2015 2020 2025 2030 2035
Population
Estimate
208,778 392,242 432,815 477,595 527,021 581,574
65. The above includes the addition of population created by two new Union Councils for
Sahiwal for the 2015 elections. It also includes the notional urban boundaries to 2035 as agreed
with government and presented below.
66. It is expected that from 2015 through 2035, Sahiwal will need to accommodate for an
estimated 189,332 new urban residents. This will result in a total urban population of 581,574 by
2035. To accommodate these, based on existing trends, an additional 2,465 acres (or 10.0 km2)
of land over the existing 7,916 acres (32.0 km2) will be required. However, the relocation of the
prison from within the city area to far outside the city will liberate a considerable amount of land
and present significant opportunities for Sahiwal in terms of both development as well as
revenue.
67. All of the population data cited in this Report use the above figures for the calculation of
preliminary infrastructure designs and financial data and accompanying estimates.
Notified Boundaries of TMA/MC Areas
68. Although the Election Commission of Pakistan have confirmed the boundaries for
Sahiwal, what is more important is the notional boundary for 2035 as this is vital for planning
purposes. As noted above, the idea that the prison will be relocated out of the city area is vital to
ensuring improved densities, the liberation of urban land for new development and revenue
opportunities for the city.
16
Government of Pakistan, Ministry of Finance. Adapted income poverty line taken from Pakistan Economic
Survey 2013-2014, Chapter 15. Edited by M. Shamim Wazir, Joint Economic Adviser. Karachi, 2014.
page 45
Projected Future Boundaries
69. If densification and consolidation of urban sprawl is better managed, Sahiwal will grow
laterally as well as vertically. This will place less pressure on valuable agricultural land on the
periphery of the city and make better use of urban land. However, there is a need to consider
the outward growth of the city and where potential boundaries might be in the medium to longer
terms. This is a highly predictive data, based on many unknown factors that cannot now be
reasonably foreseen. As an intellectual exercise however it must be done to show where
services might possibly be required in the medium to longer terms. For planning purposes, a
notional boundary has been agreed with government, and this is presented below in Figure I-16.
Collection of Primary Data versus Use of Existing Data Sources
70. For the vast majority of the analyses presented in this Report, there has been a reliance
on secondary data. No primary data is required for the preparation of a PFS as per the CDIA
guidelines. However, the government has been supportive and provided the means and
resources to confirm existing data, and where gaps exist, have also provided measures to fill
these. Primary surveys have been conducted by the pro-poor and social development teams in
Sahiwal and these results are presented in this Report. Water, Sanitation and Sewerage surveys
have begun their procurement processes to determine the extent of rehabilitation required in the
water and sewerage networks.
Figure I-16: Sahiwal Urban Boundaries

(the 2035 Boundary being the sum of the outline red, purple and yellow boundaries)
page 46
Documents Consulted
71. The PFS considers the below documents as the key strategic imperatives, evidence and
information bases, policies and guidelines upon which the MTIIP will be based. These will be
blended with stakeholder consultations to determine the final mix of programs and projects
proposed by the MTIIP:
 Pro Poor Urban Infrastructure Investment, CDIA’s guidelines for Municipalities (2012);
 CDIA PFS Preparation Manual and Checklists for Inclusive Urban Infrastructure
Development (2013);
 Pakistan 2025: One Nation - One Vision;
 Punjab Growth Strategy 2018;
 Punjab Urban Development Sector Plan 2018;
 GoPb Mid-Term Development Framework 2013-2016 (MTD 2013-2016);
 ADB Urban Operational Plan (2012-2020);
 ADB Pakistan Country Partnership Strategy (2015-2019);
 ADB Urban Sector Strategy;
 Punjab Local Government Act, 2013
 District Census Report for Sahiwal District, 1998;
 Punjab Development Statistics 2014;
 Punjab City Improvement Investment Program Report (2011) by GHK International and
the Government of Pakistan;
 Sialkot Water Supply, Sewerage and Drainage Strategy and Action Plan (2010) by GHK
International and the Government of Pakistan;
 Sahiwal Base Map prepared by the Government of Pakistan, 2015;
 Urban Planning in Sialkot, 2011 by GHK International and the Government of Pakistan;
 Hand Book on Poverty and Social Analysis (A Working Document);
 Urban Water Supply and Sewerage Reform Strategy, Government of Punjab, Final
Report (2006);
 Punjab Katchi Abadis Act (1992) and successive amendments;
 Urban Planning in Sialkot: Punjab city improvement investment program (2011);
72. The following is a list of internal risks (rather than externalities) associated with the
preparation of the MTIIP and draft Mid-Term Report:
Political Will
73. Considerable emphasis is placed on the subject of cost recovery in the proposals of the
MTIIP and other sections of this Report. With the completion of local government elections in
Sahiwal, there is considerable uncertainty if the new Chief Officer of the Municipal Corporation
will want to raise tariffs for essential services. This is further complicated by the impending
national elections expected for 2018, and the less than likely scenario that the present
government will approve or sanction rate hikes in advance of the election. Rather, government
wants tangible and visible delivery of urban improvements on the one hand, but will likely defer
rate hikes until their political certainty is confirmed after 2018.
Genuine Devolution
74. Genuine devolution is another concern closely associated with political will. In the past
few years, there has been a retraction of the willingness of authority and responsibility from the
provincial to local governments, and the reasons for this are well established and clear. The lack
of capacities in many local Tehsils has rendered it more efficient to manage intermediate cities
and small towns from a provincial base. This is hopefully a temporary step whilst government
builds the capacities for intermediate cities to develop their own abilities to plan, manage and
deliver essential urban services. A return to the track of devolution is necessary if provincial
government is to remain focused on ‘driving’ strategic processes whilst towns and cities are
given the responsibility for actually ‘implementing and delivering’ these changes.
page 47
Timing
75. The timelines for all of the MTIIP assume the same start date of June 2016 being Month
1 of implementation for delivery of the first initiative. This is for indicative purposes only. The
PICIIP will adopt a phased approach where initiatives will be tested, scaled and expanded over
time on a sector-by-sector basis. This will need to occur concurrent to the rebuilding and
engineering of municipal capacities, and inculcation of a service-orientated culture within the new
MC.
Behavior Change within the Municipal Corporation
76. By far the single most significant impediment to the delivery of longer term services will
be the reform of the work culture within the Municipal Corporation. At the moment, the MC does
not see residents as customers who are entitled to consumer protection rights as other
customers are. The creation of municipal level Service Charters will clearly spell out the specific
obligations the municipality has to its residents. Staff within the new MC will need to be bound to
this Service Charter. It is hoped that such an ethic will allow the reform of a work and service
culture which treats residents as customers, putting their needs first, rather than as recipients or
beneficiaries who must accept what they are given. The Service Charter is a first step to
considering city residents as having rights and entitlements to essential services, rather than
mere recipients.
Institutionalizing Community-Centered Approaches
77. Despite the well-known advantages of participation, the lack of ethical and political
convergence between local governments and communities has led to a great deal of questioning
about the wisdom of involving governments in participatory endeavors. Concerns are quite
rightly raised that increasing government involvement will compromise the quality and output of
participatory processes achieved through focused, skilled initiatives. While this is true to some
extent at least, it is necessary to work with the TMA to bring about the scale of initiatives likely to
have broad impacts on all of Sahiwal’s residents, including the poor. The other primary reason
for pursing community participation and community partnerships with the TMA is that it is time to
dismantle ineffective prescriptive approaches to service delivery. Not only will the continuation of
top-down, supply-led approaches continue to produce inappropriate and unsustainable
infrastructure, the inertia of this perspective will continue to undermine the participatory efforts of
other, smaller, actors.
M. Building on Initial City Priorities and Needs

78. The orientation of the PICIIP is such that it seeks to provide a framework for
infrastructure to act as a catalyst for achievement of broader imperatives as articulated by
government policy and strategy.
79. In doing so, it must work with the full range of urban actors to identify ways that the
existing priorities and needs can be better met. This includes working with existing local
institutions, agencies and organizations at the city level that can assist the MC/TMA to better
respond to the challenge of economic development and rapid urban growth. The anticipated
impact is a better integrated, more efficient and more accountable city that is closely aligned and
linked with the provincial and national urban policy context that supports such development in
intermediate cities throughout the province.
80. The ICDS as well as stakeholder interviews and FGDs have developed key priorities that
have been documented in this Report.
81. The institutional component of this report (see Chapter VI) has defined a system of
taking felt needs and priorities, and acting on these by Sahiwal. This is a revolutionary and
page 48
innovate step for Pakistan in that it now directly links urban strategy with implementation and
delivery at the city level. It further means that strategy can be budgeted at the provincial as well
as city levels, thereby measuring the benefits achieved for investments.
82. The objectives of linking the prioritization of urban needs with delivery and strategic
options is to:
82.1. Provide a longer term enduring and trackable framework to streamline and
strengthen regional planning and development in Sahiwal (and other intermediate cities)
though directly linking priorities with strategy and implementation functions;
82.2. Provide a clear, coherent and integrated basis for rationalizing the system of
urban planning through a review of various strategic and policy instruments and a
monitoring framework which can track their achievement against targets and milestones;
and
82.3. Make recommendations and improvements to existing legislation to create an

enabling policy framework for strategies to be achieved and implemented at the city level.
This would necessitate the need for learning from experiences and creating feedback
loops to inform policy from the delivery of activities at the city level. Again, this is an
innovation that has not yet been factored into the function of cities, but has been
considered in the proposals of the MTIIP as presented in Chapter VI and Chapter VIII;
N. Methodology and Assessment of Priorities and Proposals

83. The Methodologies for each technical task have been presented in individual Sections
and Chapters. Overall however, the PFS Team’s approach to the PICIIP has addressed the
complex issues noted above through a three-pronged methodological approach as identified in
Figure I-12 and Figure I-13 as well as Figure I-17 overleaf.
84. The first will focus on technical project development with an emphasis on selecting
initiatives likely to show immediate improvements in the lives of Sahiwal’s residents.
85. Based on these early successes, the second key area will be to explore the potential
options for phasing-in of additional initiatives (through existing initiatives in Punjab through other
assisted programs or best/better global or regional practice), which can be shown to meet the
demands of Sahiwal’s constituents and exhibit a potential for rapid testing and scaling-up. This
means the crowding in of other resources from the private or donor sector will need to piggyback
onto existing PICIIP initiatives, rendering them technically legitimate and economically prudent at
the same time.
86. The third (and longer-term) integrated and corresponding area will be to identify the main
policy issues, which serve as a barrier to city inclusivity, resilience and competitiveness. This
has been referred to in Chapter III and Chapter IV and Chapter V of this Report, where feeding
back of city experiences should help inform policy so as to encourage economic growth, asset
accumulation and reduce dependencies.
87. Overall, the aim is to explore options for mainstreaming the needs of Sahiwal’s residents
that would otherwise not be addressed. This includes exploring better ways of reaching
excluded individuals and groups, not just through infrastructure, but by other processes and
systems that Sahiwal Municipal Corporation is responsible for.
page 49
Figure I-17: Three-Pronged Methodological Approach for PICIIP
Improved Competitiveness, Inclusion

and Resilience
In Sialkot and Sahiwal
To devise participatory planning processes,

providing accurate and accessible information
to stakeholders so that informed decisions
on interventions can be made.
The processes should serve as a guideline for implementation
of sustainable economic, planning, policy development,
and economic development strategies in Sialkot and Sahiwal
Integrated Strategic Approach to Development,

Planning, Inst/Policy Framework and the Economy:
With a Particular Focus on Consultation and Sustainability
Through: bottom-up (working with civil society) and
top-down (working with Government)
Development Institutional Strengthening,

Support for
Planning, Improved Services Organisational Development
Social Inclusion
Management towards and Support to City Level
and Building Resiliences
Human Development Decision-Making
How? How? How?

Participatory Planning, Private & ‘Third’ Sector as Dialogue at GoPb and City
Financing and Prioritisation Participants in City Economy Levels
of Urban Investments
Physical/Social/Institutional Open discussion on
Package of Physical and Improvements for lack of city-wide co-ordination
Social Investments Enhanced City proposed mitigation
Prepared for ADB Financing Competitiveness strategies and measures
City Development
Management Programmes Awareness Raising Formal/Informal Capacity
Goal Setting Improvements,
Adopting International Prioritised Investments Policy Reform
Best Practice Alternative Financing Models and Change Management
Participatory Budgetting
88. In order to address these three above issues simultaneously during the three Teams’
involvement in the PICIIP, the assignment considers the following methodological approach:
88.1. technical tasks and implementation of the PICIIP requirements and the PFS
specifically focusing on initializes that are likely to have a measurable impact on
improving inclusivity, competitiveness and resilience. This will be followed by testing
selected initiatives against articulated priorities and needs. Innovative approaches to
reaching urban residents (solar lighting, municipal reform, underpasses and signal-free
corridors, for example, have all been identified, though not yet selected). In all cases, the
page 50
collective foci must be on striking a balance between what is affordable, what satisfied
the strategic priorities versus what is required to directly respond to felt needs.
88.2. socio-economic, financial analysis and policy issues meant to broaden the impact
to government, private and ‘third’ sectors in the catalytic role that urban infrastructure
plays within Sahiwal.
88.3. institutional development and sustainability issues meant to mainstream the

needs of all urban residents of Sahiwal.
89. The overall approach of the component is to provide an integrated strategy for exploring
both innovative as well as conventional approaches likely to benefit the needs of Sahiwal’s
residents directly.
90. Rather than attempt trickle-down approaches, the MTIIP will confirm the viability,
sustainability, cost-effectiveness and impact of programmatic priorities within an integrated and
iterative framework.
91. The overall view will be to increasing the overall efficiency and effectiveness of delivering
measurable benefits in economic and social terms to all city residents. The monitoring
framework proposed for the Final Report will ensure that benefits are tracked, captured and
quantified.
92. The MTIIP implementation process entails the following basic methodological steps for
delivery of the Mid Term Report to ensure the remainder of the work is both legitimized and on-
time:
92.1. initial assessment of potential initiatives, programs and sub-projects required for
catalyzing economic productivity, reducing environmental or social vulnerability or
mitigating marginalization with an overall target of improving city competitiveness whilst
reducing household poverty;
92.2. rapid review of priority problems perpetuating a worsening urban condition and
identifying some of the underlying causes;
92.3. identification of development objectives, infrastructure capabilities, social and

environmental responses, market and social safety-nets, responses to ameliorate
marginalization and the resulting available technologies, surveys, technical capacities
necessary to create positive changes in the lives of urban residents. This should
encourage city stakeholders and government alike to finalize and agree a list of priority
interventions that will respond to the three strategic objectives identified previously;
92.4. assessment of priorities and defining the ‘do-able’ in high priority pilot projects
likely to deliver greatest benefit at city-wide as well as neighborhood (Mahallah) levels;
92.5. identifying and providing detailed, costed and measurable projects, programs and
interventions for priority projects responding to needs as articulated by Sahiwal
stakeholders through the various consultation mechanisms identified and employed; and
92.6. Defining a longer term program of institutional and policy reforms and technical
assistance emerging from the experiences of various delivery agents (including the
private sector) for stakeholders participating in the PIIIP process.
93. Throughout this initial process aiming to provide the quick-wins, the PFS team will remain
cognizant of the distinction between the feasibility and acceptability. For whilst the feasibility of
technical solutions can be judged from experience elsewhere, acceptability always refers to the
local cultural, political and socio-economic context and climate specific to Sahiwal’s residents
page 51
and its administration. Part of the success of the PICIIP will depend on accurate judgments of the
latter, and the Team has been sensitive to the context of both cities, their stakeholders and
government at the provincial level in making specific applications on behalf of the stakeholders
the MTIIP is ultimately aimed at.
O. Structure of This Report

94. This Report combines the work of the ICDS, CRVA and PFS components into one
comprehensive document:
Chapter I: Introduction and Overview

Chapter II: Strategic Context
Chapter III: Rapid Urban Assessment
Chapter IV: Climate Risk and Vulnerability Assessment
Chapter IV: Integrated City Development Strategy
Chapter V: Integrated City Development Strategy - Sahiwal
Chapter VI: Sector Assessments and Safeguards
Chapter VII Safeguards & Cross-Cutting Themes
Chapter VIII Municipal Finance
Chapter IX: Implementation
page 52
REG-8556
Final Report - Sahiwal, Pakistan
CHAPTER II
Strategic Context
April 2016
project’s design
Urban Infrastructure Investment Program Chapter II
and Pre-Feasibility Study of Sahiwal, Pakistan Strategic Context
A. Urbanization and Economic Development

Punjab Growth Strategy
1. Punjab is aiming for an annual GDP growth rate of 8% by 2018 which is double the
current national rate of just over 4%. Punjab also wishes to create 1 million quality jobs during
the same period. To achieve these goals two of the key sectors to be focused on are industrial
development and urban development including17:
 Improving the investment climate with upgraded infrastructure, institutional and
governance reforms, better functioning cities and urban clusters
 Revival of investment by the private sector
 Focus on employment-intensive sectors and creation of quality jobs
 Focus on export-oriented economic growth
The Urban Role
2. Cities are globally recognized as the ‘engines of growth’ and Punjab clearly
acknowledges this in its Punjab Urban Development Sector Plan 2018. Globally, cities on
average are responsible for 70% of national GDP 18 with individual city contributions largely
attributed to whether they are at the lower regional market/service-provision level or have grown
to being a production and export-oriented city. Sialkot is very much an export production city,
although also providing significant local services and market opportunities, while Sahiwal has the
potential to transition from a market/service city to an increasingly production-oriented one.
3. The key to economic growth is job creation, and cities provide those opportunities if they
can create an attractive enabling environment both institutionally and physically. The focus is
often on attracting the large multi-national firms (MNC) with the resources to provide for many of
their own needs if the environment is right. However, the vast majority of urban jobs are created
by small and medium domestic firms (SME) who rely heavily on the collective resources of an
urban area for their growth and survival. Successfully competitive cities are the ones who are
able to establish and maintain that attractive enabling environment, and provide the resources
needed by the job creators. Some of those needs are discussed below.
Urban Needs to Support Economic Growth
4. To be competitive cities and create the jobs, raise productivity, and increase incomes that
are the indicators of a competitive city 19 , both Sialkot and Sahiwal need to have in place a
number of elements:
 Efficient, effective and transparent governance including approval processes
 Competent city management
 A well-functioning land market
 Adequate infrastructure and services including power, transport and water. To
sustainably provide these requires a city that is:
o compactly planned with effective development control
o largely self-financed through appropriate levels of taxation and user-fee
collection
 The right labor force. To attract and maintain that labor force, needs a city that
has:
o well-functioning and affordable infrastructure and services
o adequate social amenities - health, education and recreation
o access to a full range of economic amenities and opportunities
o affordable housing
17
Punjab Growth Strategy 2018
18
World Bank
19
IBID60
page 55
o affordable and efficient transport

o a pleasant ‘livable’ urban environment
 Resilient adaptations to climate change and resulting environmental impacts
5. Providing all of these competitive city needs relies on the capacities, efficiency and
integration of institutions through all levels of government.
The PICIIP Contribution
6. PICIIP’s goal is to support the creation of competitive cities that will drive Punjab’s growth
to the levels it desires. PICIIP is doing this by:
 Introducing and institutionalizing the Integrated City Development Strategy (ICDS)
approach to urban planning development as the development framework.
 Undertaking a Climate Risk Vulnerability Assessment (CRVA) along with required
mitigating actions to deal with the impacts of projected climate change.
 Developing a series of Sector Strategies and accompanying Road Maps
 Supporting municipal management reform that is the key to sustained urban growth
including increased self-reliance as both the province and the nation move away from
urban subsidies and transfer more responsibility onto the beneficiaries
 Providing access to training to build municipal management capacities
 Supporting improvement of prioritized physical infrastructure to both provide
improved services and justify collection of increased taxes to maintain the city
 Creating a competitive city model that can be replicated throughout Punjab’s
intermediate cities.
7. The details of how these needs are being addressed are presented in the following
sections.
B. Institutional and Policy Context

8. The Project, including The PFS, ICDS and CRVA components, is prepared within the
context of, and to provide full support to, a number of higher-level Government policies and
guided by ADB and CDIA development policies. Figure II-1
Pakistan and Punjab
 Pakistan 2025: One Nation - One Vision

 Punjab Growth Strategy 2018
 Punjab Urban Development Sector Plan 2018.
The underlying principles of this Plan recognize that cities are the Engines of
Growth; are central to Punjab’s long-term growth strategy; and will only fulfill
those roles is they concentrate on Density and Conglomeration. These two
words are fundamental to all that follows.
 Punjab Mid-Term Development Framework 2013-2016 (MTD 2013-2016)
Pakistan Vision 202520
9. Unlike the past versions, Vision-2025 also provides implementation aspects. It

encompasses a road map and an implementation strategy for Pakistan for the next one decade.
Pakistan Vision 2025 is designed to represent an inspirational destination. It will serve as a
critical guidepost for the development of an effective strategy and road map to reach the national
goals and aspirations. It is not meant to represent the resultant strategy and program itself. The
20
Source: Pakistan 2025, One Nation – One Vision, Planning Commission, Ministry of Planning,
Development & Reforms, Govt. of Pakistan, 2015.
page 56
Vision will be realized through strategies and programs defined in associated five-year and
annual plans. The seven pillars of Vision-2025 are:
 People First: Developing social and human capital and empowering women
 Sustained, indigenous, and inclusive growth
 Governance: Democratic governance: institutional reforms and modernization of the
public sector
 Security: Energy, water, and food security
 Entrepreneurship: Private Sector and entrepreneurship-led growth
 Knowledge Economy: Developing a competitive knowledge economy through value
addition
 Connectivity: Modernizing transport infrastructure and regional connectivity
Figure II-18: Policy & Planning Framework
Punjab Growth Strategy21
10. For sustained improvement in living standards, the growth strategy has to be private
sector-led, employment intensive and export intensive, regionally balanced and environmentally
sound. The strategy for growth, furthermore, has to address the unsatisfactory health and
education outcomes that lower living standards of the poor. Punjab’s growth strategy also has to
provide, in tandem with initiatives of the Federal Government, an adequate safety net for the
bottom quintile of the population.
21
Source: Punjab Growth Strategy 2018, First Draft, Planning & Development Department, Govt. of Punjab,
Lahore, 2013.
page 57
11. The Government believes that for sustained job creation and improvement in living
standards, we must tap into several drivers of growth, which underpin the proposed Growth
Strategy 2018. Economic growth in Punjab must be:
 Led by the Private sector
 Based on improvements in Productivity of resources
 Focused on employment intensive job creation
 Anchored in better functioning urban clusters
 Bolstered by better skilled and more employable youth by addressing critical gaps in
human capital
12. The instruments for implementing the Punjab Growth Strategy 2018 are:
 Public funds in the Provincial Annual Development Program (ADP), including Donor
assistance.
 Provincial capacity to forge public-private partnerships in the provision of physical
and social infrastructure.
 Provincial regulatory framework that affects Punjab’s investment climate and
encourages productivity-led growth.
 Engagement with the Federal Government to enhance the enabling environment for
Punjab’s growth (i.e. sound macro-economic management, conducive trade policy,
adequate energy, efficient logistics and connectivity).
 Engagement with the Federal Government to improve the Federal regulatory
framework that affects Punjab’s investment climate (i.e. tax policy and tax
administration).
Punjab Urban Development Sector Plan, 2018
13. A central principle of the Sector Plan is that ‘density’ and ‘agglomeration’ is central to
economic development, higher productivity, social equity and human development. To make
Punjab competitive for investment and development, cities are going to play a vital role, because
they can benefit from a large and skilled labor force, economies of urban scale, and economies
of agglomeration (i.e. Efficiency resulting from clustering of firms in a given industry or related
industries), and the resulting demand for goods and services.
14. Further, rural-urban migration and urbanization can only lead to higher income if
manufacturing and services grow fast enough to absorb the supply of labor. Pakistan will have to
invest in many cities at the same time to ensure a more geographically balanced rate of
urbanization. And create a system of cities that are an efficient network of urban centers, whose
manufacturing and services industry are connected. Harnessing and promoting this approach of
‘system of cities’ will lead to faster job creation and higher growth of productivity.
15. Placing urban development (with an emphasis on density and commerce) at the Strategy
has several advantages: dense multi-function urban areas create jobs and are free from barriers
to entry and exit; and density attracts investment and helps the growth of the construction of
industry as well as commerce, which are employment friendly.
Asian Development Bank (ADB)
16. In addition to ADB’s overall mandates, at the urban level investment support is guided by
the Urban Operational Plan 2012-2020, which recognizes cities as the keys to social and
economic growth and stresses the need to achieve a more integrated “3E” approach to urban
investment:
 Environmental (Green)
 Equitable (Inclusive)
 Economic (Competitive)
page 58
Cities Development Initiative for Asia (CDIA)
17. CDIA’s mandate is to contribute to sustainable and equitable urban development, leading
to improved environmental and living conditions for all in Asian cities. CDIA full recognizes the
value of an Integrated City Development Strategy as the platform for inclusive, competitive and
resilient cities. The current project is guided by their expertise.
Global
18. The UN’s newly released Sustainable Development Goals (SDG) follow upon the
previous MDGs and are targets for the year 2030. They provide overall urban development
guidance for the Governments of Pakistan and Punjab, and the ADB.
Goal 1: End poverty in all its forms everywhere.

Goal 2 End hunger, achieve food security and improved nutrition and promote
sustainable agriculture.
Goal 3 Ensure healthy lives and promote well-being for all at all ages.
Goal 4: Ensure inclusive and equitable quality education and promote lifelong
learning opportunities for all.
Goal 5: Achieve gender equality and empower all women and girls.
Goal 6: Ensure availability and sustainable management of water and sanitation for
all.
Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for
all.
Goal 8: Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all.
Goal 9: Build resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation.
Goal 10: Reduce inequality within and among countries.
Goal 11: Make cities and human settlements inclusive, safe, resilient and
sustainable.
Goal 12: Ensure sustainable consumption and production patterns.
Goal 13: Take urgent action to combat climate change and its impacts.
Goal 14: Conserve and sustainable use of the oceans, seas and marine resources
for sustainable development.
Goal 15: Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainable manage forests, combat desertification, and halt and reverse
land degradation and halt biodiversity loss.
Goal 16: Promote peaceful and inclusive societies for sustainable development,
provide access to justice for all and build effective, accountable and
inclusive institutions at all levels.
Goal 17: Strengthen the means of implementation and revitalize the Global
Partnership for Sustainable Development.
page 59
REG-8556
CHAPTER III
Rapid Urban Assessment (RUA)
April 2016
project’s design
Urban Infrastructure Investment Program Chapter III
and Pre-Feasibility Study of Sahiwal, Pakistan Rapid Urban Assessment
Introduction
A. Purpose or Rapid Urban Assessment (RUA)
1. This Rapid Urban Assessment (RUA) presents an overview of the urban conditions in
Sahiwal as the baseline for the next-step preparation of a City Development Strategy. The RUA
addresses Socio-Economic, Environmental, Land Use, Infrastructure and Institutional conditions
in an integrated and broad over-view level. The parallel PICIIP Pre-Feasibility Study (PFS) and
Climate Risk and Vulnerability Assessment (CRVA) provide greater detailed assessments in
those areas, and RUA should be read in conjunction with those Reports. All of these are aimed
at creating a sustainable, climate change resilient and ‘green’ city. These, in turn, will create a
socially and economically resilient city.
Figure III-1: Location – Sahiwal
page 63
B. Policy Context
2. The RUA must also be read in conjunction with the national and provincial policy context
reviewed in the Inception Report and including:
 Pakistan 2025: One Nation - One Vision22
 Punjab Growth Strategy 201823
 Punjab Urban Development Sector Plan 201824
 Millennium Development Goals (MDG)
 GoPb Mid-Term Development Framework 2013-2016 (MTD 2013-2016)25
C. Approach and Methodologies in Preparing the RUA

3. As presented in the Inception Report, the entire ICDS work is based on an understanding
of urban areas as an integrated series of processes all relying on each other and all influencing
each other. Preparation of the RUA is based on the same premise (seen in Figure III-3).
4. Two main methodologies were employed: Secondary data review and Field Work. The
focus was on fieldwork centered on a highly participatory Stakeholder Workshop (Figure III-2). A
cross-section of public sector, private sector and NGO participants engaged in a wide-ranging,
mind-mapping discussion of Sahiwal’s existing situation, key issues, prime opportunities and
major constraints. Finally, thoughts on Sahiwal’s future vision were received.
5. The findings of these sessions are incorporated into this Report.
Figure III-2: Sahiwal - Participatory Stakeholders’ Workshop
22
Pakistan 2025, One Nation-One Vision, Planning Commission, Ministry of Planning, Development &
Reforms, Government of Pakistan.
23
Pakistan Growth Strategy 2018, Planning & Development Department, Government of Punjab, 2013
24
Source: ibid, Page 32.
25
Source: ibid, Page 33
page 64
Figure III-3: RUA Integrated Components
Socio-Economic Context
D. Demographics
6. Punjab’s population in 2014 was 32% urban (32 million out of 100 million) 26 and is
estimated to increase to 40% by 2030. (59 million out of 150 million)27 at a rate of almost 3% per
annum. Rural-urban migration is the major driver of Punjab’s urban population growth. Sahiwal is
following a similar pattern although with a slightly lower urbanization rate than the province as a
whole. This would be expected, as the provinces larger urban centers will draw a larger share.
Sahiwal District had an estimated population of 2.37 million in 201428, which if projected to 2035
at the provincial average of 1.93% will result in a District population of 3.5 million. Of the
2.37million an estimated 1 million (42%) was urban.
7. Table III-4 summarizes existing and projected populations for Sahiwal Urban Area
through to 2035 at an average urban growth rate of 2.4% 29 . This indicates that Sahiwal’s
population will more than double in the next 20 years. This highlights the need for significant
urban investment and strategic planning to meet rapidly expanding demands. Particular note
must be taken of the potential growth impacts of the new China-Pakistan Economic Corridor
(CPAK) currently under development and passing through Sahiwal. The full impacts cannot be
projected at this point, but with new power sources being developed in the vicinity and improved
transportation facilities, it can safely be assumed that industry and trade will expand with the
associated increase of urban population. This may push Sahiwal’s urban growth rate above
historical rates.
26
27
ADB and consultant calculation
28
29
Consultant estimate between 1.93% and 3.00%
page 65
Table III-4: Sahiwal Population Projections

Sr. UC 1998 2015 2020 2025 2030 2035
No1 Sahiwal-1
Name 15,41 23,06 25,97 29,24 32,92 37,06
2 Sahiwal- 4
24,77 8
37,07 3
41,73 2
46,99 4
52,91 9
59,57
3 2Sahiwal- 1
22,07 2
33,04 9
37,20 4
41,88 1
47,15 2
53,09
4 3Sahiwal- 8
15,85 1
23,73 1
26,71 5
30,08 8
33,87 6
38,13
5 4Sahiwal- 7
16,91 1
25,31 9
28,50 3
32,09 0
36,13 5
40,68
Urban 6 5Sahiwal- 7
22,19 8
33,21 5
37,40 4
42,10 4
47,41 4
53,37
Union
Council 7 6Sahiwal- 6
18,04 8
27,01 0
30,41 9
34,24 0
38,55 9
43,40
s 7
8 Sahiwal- 8
26,53 0
39,71 1
44,71 0
50,34 0
56,67 4
63,81
8
9 Sahiwal- 5
23,25 2
34,79 1
39,17 1
44,10 8
49,66 4
55,91
1 9
Sahiwal- 0
23,71 5
35,48 6
39,95 8
44,98 2
50,64 4
57,02
0
1 10
Kamir 2
20,49 7
30,66 5
34,52 5
38,87 9
43,76 5
49,27
1
Grand Sharif 1
208,77 6
392,24 7
432,81 4
477,59 9
527,02 9
581,57
Total
Source: Punjab Development 8 2 5 5 1 4
Statistics
Note: Growth rate of 2.4% assumed based on overall at 1.93% (www.pwd.punjab.gov.pk 2011-12) and overall urban at
3.00%.
8. Note, however, that these projections are based on the current urban boundary and
therefore as boundaries change, as they likely will, the official distribution of the future (2035)
District total of nearly 6 million will also change. Furthermore, if the proposed City Development
Strategy is implemented, it is likely that those recommendations will alter settlement patterns as
well with a reduction in growth in ad hoc peri-urban areas, many of which represent
unsustainable urban sprawl. Subsequent Phases on Sahiwal’s Development Strategy will further
assess these scenarios. The average household size in Punjab is 6.2 persons30 with housing
implications as further discussed later in this Chapter. According to the 1998 National Census,
Sahiwal’s average household size was 6.9 persons. This reduction in household size is
consistent with global trends in which an urbanizing population tends to have smaller households
than a rural one. Population density is discussed in Chapter I of this Report.
E. Employment
9. Employment characteristics are important for the ICDS in helping to identify the types,
quantities and locations of various land uses that should be planned for, along with the nature of
the supporting infrastructure. Employment may also be an indicator of potential environmental
assets or constraints to be taken into consideration. The last formal, detailed employment
statistics for Sahiwal date back to the 1998 Population Census and quoted in several other
publications including the Sahiwal Urban Profile 201031. A number of related and more current
employment figures that are indicative of Sahiwal’s urban situation include32:
 Labor force participation in Punjab is 55.4%, the highest of all 4 provinces
 Industry engages 23.9% of formally employed.
 There were 220 reported factories in Sahiwal District in 2013 employing
approximately 8,200 workers.
 76.5% participated in the informal sector economy. Based on other employment
sector statistics, this suggests that a proportion of those formally employed also
engage in informal sector economic activity, a situation common in most emerging
economies
 Approximately 26% were employed as Service Workers, Shop and Market Sales
Workers.
 Another 27% were employed as Craft and Related Traders Workers.
 Approximately 14% were employed as unskilled workers.
 Just over 6% were employed as Professionals.
30
Poverty and Social Impact Analysis, 2008, for Urban Unit by Semiotics Consulting (Pvt) Ltd.
31
GHK for the Urban Unit
32
www.pbs.gov.pk; Punjab Development Statistics 2014; District Level Employment Trends, 2009-2010,
GoPk.
page 66
 Another 6% were employed as Plant and Machine Operators.
10. The high percentage of those engaged in the informal sector is of particular importance
to future urban planning for Sahiwal and will be highlighted in the City Development Strategy.
This is an economic sector that dominates central streets, contributes to several urban
infrastructure and service issues, including congested roads and malfunctioning drains. At the
same time, it dominates the urban economy, it is utilized by 100% of the population, is an
essential part of residents’ daily lives, and yet receives little or no formal urban planning
consideration.
F. Social Facilities
Educational
11. Sahiwal has a number of higher secondary educational institutes including33:

 13 Arts and Science Degree Colleges with over 15,000 students enrolled, including
the Sahiwal Medical College and the Government College of Technology
 4 Vocational Institutes with over 500 students
 1 Technical/Polytechnic Institute with almost 3,000 students
 6 Commercial Training Institutes with over 3,000 students
Additional institutes of higher education, particularly those directly targeting support to local
industry and employment needs are always desired. These also become important means of
keeping the youth from migrating to the major cities.
Health Facilities
12. Sahiwal District has 9 hospitals 34 , but with a total of slightly under 1,300 beds. In
addition, there are 6 Regional Health Centers and 42 Basic Health Units. As in most secondary
urban centers, one of the challenges is retaining qualified staff in both the health and education
sectors who often migrate to a major city to avail the advantages it offers. The better the overall
urban environment, quality of life, and social and economic amenities the more likely they are to
stay.
G. Urban Poverty
13. The Poverty and Social Impact Analysis (PSIA), 200835 assesses conditions in urban
Punjab, but not specifically Sahiwal. There is little reason to indicate the conditions are
significantly different. Poverty assessments were based on a range of conditions beyond just
simple income with:
 Overall consumption/income poverty: 33% compared to national 32%
 Punjab Urban Poverty: 26%; rural 36% almost equivalent to national averages
 46% of income on food, another 45% on non-food and almost 5% on transport, the
costliest urban service. Almost nothing was spent on water, sanitation and solid waste
reflecting, at least in part, the low availability of those services among the poor, and the
low rates that are charged to those who are paying
 Cost of transport increased by 250% in the 5-year period prior to this study and is
increasingly an unaffordable burden on low-income households
 61% of households had only one person generating income.
14. Further details on this including the poverty maps for Sahiwal are presented in Chapter
VII of this Report.
33
34
Punjab Development Statistics, 2014, Government of Punjab, Lahore
35
for Urban Unit by Semiotics Consultants (Pvt) Ltd.
page 67
H. Housing
15. No specific housing statistics were obtained for Sahiwal, but conditions appear to be
similar to those sampled in the PSIA:
 Average household size 6.2
 30% of demand met by formal housing
16. Of the remaining 70%:

 25% in Katchi Abadis (informal settlements)
 60% by informal subdivision of agricultural land (a major urban development
impact discussed throughout this report, and a key issue to be addressed in
future planning
 15% through increasing density (infill) of existing inner city land parcels
17. The study further points out that:

 No mechanisms are in place to ensure that targeted low-income housing
schemes actually benefited the target group
 Limited formal housing finance available since construction is incremental over
time. Some NGO activity but far short of need
 80% are owners, 18% renters and 2% shared accommodation. The high level of
ownership is a solid start for wealth accumulation and investment opportunities if
the land registration and supporting documentation systems are functioning
efficiently. According to the Sahiwal TMA, the vast major of properties are
officially titled with records currently being digitized. These will be tied into the
Urban Units extensive GIS database.
18. Since housing - residential land use - typically accounts for 60-70% of the urban
footprint and generates a proportionate amount of the need for infrastructure investment,
housing-related strategies become a major consideration when addressing the future
development of an urban area. Issues such as urban sprawl, appropriately serviceable land,
proximity to social and economic amenities, affordability and environmental impacts are all key
considerations.
19. Housing in Sahiwal is virtually 100% low-rise of no more than 2 stories, in-line with
cultural preferences and traditional norms. This results in extensive urban sprawl and other,
higher density housing typologies will have to start being introduced if servicing and land
acquisition are to remain sustainable.
Formal Private-Sector Housing
20. According to Sahiwal officials there are currently 90 private sector ‘Housing Societies’
developed or being developed around Sahiwal. These are virtually all conversions of agricultural
land and none of them fall under the approval of an official Urban Development Plan. Some,
although not all, have officially applied for planning approval or sought Revenue Department
approval (detailed statistics not available). However, the prevailing trend is simply ad hoc
development as desired by the property owner. The TMA office lacks the resources, human and
otherwise, to manage the situation, and the political will to control this unsustainable urban
sprawl is absent. In fact, politicians are more likely to support the ad hoc development as a short-
term expedient at the long-term cost to Sahiwal as they represent votes. To quote a TMA official,
‘there is no planning in Sahiwal’. Similarly, there is no control over the provision or quality of
services provided: access, water, sanitation, etc. The result is that TMA comes under pressure to
provide the services, whether or not these developments fall within their official mandate.
21. Housing Society schemes tend to target the upper-middle and higher-income groups
where better profits can be realized. No statistics are available, but this report can assume,
based on similar situations elsewhere, that these formal housing efforts provide for less than
10% of Sahiwal’s annual actual housing demand. The vast majority of housing units will continue
page 68
to be built informally by individuals on their own agricultural land, as densification on existing

urban plots, or illegally in kaatchi abadi situations.
Housing Need Projection
22. A very simplistic housing demand projection based on population growth as presented in
page 69
Table III-5 is as follows:
Table III-1: Housing Demand Based On Population Projections

Urban Population Growth: 2015 – 2035 211,000
Number of new households (6.2 per/HH) 34,000 new housing units to 2035
23. Land required, assuming individual homes on a modest 400m2 plot (0.1 ac) and
allowing 30% for infrastructure results in 7 units/acre. Total new serviced land required to 2035
assuming this housing typology would therefore be 7,400 ac, which is a 650% increase from
what is currently officially designated residential. The land and infrastructure cost implications are
significant. The implications of other housing typologies and densities will be explored in the
subsequent Development Strategy. However, a preliminary look at the official statistics and
suggested future impacts raises some questions about validity and need to be re-validated
during subsequent phases of the work. Existing residential land appears to be significantly more
than is officially recorded, due in part, it is assumed, to data entry being still in progress by the
Urban Unit .
Urban Situation
I. Urban Centers of Sahiwal District
24. There are 7 other urban centers in Sahiwal District other than Sahiwal itself. These are
Qadirabad, Iqbalnagar, Kassowal, Noorshah, Harappa, Kameer and Ghaziabad (Figure III-6).
These account for approximately 22%36 of the District’s population and are closely integrated
economically. There are close economic links between many of these centers. Various aspects
of agricultural production, inputs, processing and shipping also link these centers. Figure III-26
conceptually illustrates some of these linkages.
J. Sahiwal City Geography

25. Sahiwal town is situated at a distance of about 18 miles from the left bank of the river
Ravi, 187 Km west of Lahore and 200 km east of Multan. The Grand Trunk Road and the main
railway line connecting Peshawar-Lahore with Karachi pass through the town. The Lower
Bari Doab Canal separates the town into two parts. Its approximate height above sea level is 500
feet. Sahiwal lies 30°39'52. 16" N latitude and 73°6‖30.54"E longitude37.
26. Geologically the area does not have any outstanding features. Saltpeter, which is made
from saline earth called kalIar, is found when the water table is high. In the east of the town it is
found to consist of common salt mixed with a less quantity of sulphate of soda and addition very
small quantity of lime and magnesium salt.
27. Sahiwal topography is a flat semi-arid plain. Its fertility is through extensive canal
irrigation. The Lower Bari Doab is the main source of irrigation in the area and it is fed by a
link from the Chenab River. From the topographical point of view, the semi-arid plain is
remarkably homogeneous. The only noticeable relief is that of flood plain bluffs and belts of
ravines and bad lands formed by gully erosion along the Lower Bari Doab and its distributaries.
Generally, the natural slope is North-East to South-West. The average natural gradient is about
1/2474. On the whole, it is flat area.
Figure III-6: Urban Centers in Sahiwal District
36
Source: Calculated from Punjab Development Statistics 2014, Table 209, Page 293
37
Sahiwal City Profile, Punjab Cities Improvement Investment Programme, GHK/Urban Unit, 2011, Pages
16-17
page 70
Source: Urban Unit
K. Urbanization Process and Evolution

28. Sahiwal has the distinction of being in the cradle of the oldest urban civilization in the
history of mankind, the Indus Valley. The Indus valley civilization flourished around 3000 BC.
Harappa is a small town about 20 Kms from Sahiwal. Extensive excavations made in the earlier
part of the century led to the discovery of the ruins of a large and well-developed city. In the
centuries proceeding the Christian era, Alexander invaded the sub-continent and captured
existing Sahiwal area.
29. In 1524 AD, the great Mughal emperor Babar occupied it during his 4th raid on the sub-
continent. From the period of Nadir Shah’s invasion to the arrival of the British, people of the
area knew no peace.
30. Another big challenge occurred in the middle of 18th century when River Bias and the
nalahs dried thereby greatly reducing the available cultivable area. Consequently, the agricultural
tribes were forced to adopt predatory habits.
31. Punjab was annexed to British Empire in 1849, and a separate District was formed with
its headquarters at Pakpattan. With the advent of railways, the headquarter was shifted to its
present site in 1864-65.
32. Sahiwal was previously a barren area but with the introduction of canal system, it
became one of the most fertile areas. The real achievement was the Lower Bari Doab Canal
constructed in 1913.
33. Due to influx of refugees from India, and recent industrialization it attracted considerable
population; consequently, a number of sub-towns in its vicinity cropped up.
34. With the passage of time, physical growth continued particularly in the post 1947 period.
The growth trend was largely in the northern direction; expansion remained limited towards south
page 71
because of the railway line and canal.
35. Later, expansion took place towards west and after 1960s the town started expanding
wherever vacant pockets were available.
36. Sahiwal has a vital location considering that it is around 2-3 hours of drive from three
major cities of Punjab i.e. Lahore, Faisalabad and Multan. Sahiwal will gain even more
significance when Pak-China Economic Corridor starts taking shape, as the City is located within
the corridor38. Sahiwal’s growth over the past 100 years is illustrated in Figure III-7.
37. Field observations have shown that growth occurs through two processes: expansion
and densification. This is common for almost all urbanizing centers. The key to sustainable urban
growth is achieving the correct balance of expansion and densification to make most efficient use
of land and infrastructure investments. And by maintaining convenient access to social and
economic amenities, ensuring the viable establishment and maintenance of public transport,
private commercial investments, and major public sector social facility investments.
Figure III-7: The Physical Growth of Sahiwal
Time Period Urbanized Average Average

(Years) Land (Acres) Urbanized Urbanized
Land/Year Land/Year (%)
(Acres)
1900-1947 512 10.8 2.11%
1947-1960 946 72.7 7.68%
1960-1972 153 12.6 8.23%
1972-2015 2031 47.23 2.33%
Source: Sahiwal Urban Profile, 2010, GHK
38
Adapted from ‘Outline Development Plan, Sahiwal’, Housing & Physical Planning Department,
Government of Punjab, 1973, pages 1, 2; and ICDS Consultants field visit in September 2015.
page 72
38. In the case of Sahiwal, it appears this balance has not been achieved with the majority of
growth happening through expansion in the directions illustrated in Figure III-8. Although there is
a higher population density in the core, low-rise building density remains common throughout
raising questions about the most economical use of land and core infrastructure investments. To
Sahiwal’s credit, however, some of the lower inner-city density is due to preservation of open
green space planned into the city during British colonial times. These areas remain public assets
and contribute to a more pleasant microclimate and urban environment, but require re-
investment to regain their full potential. This opportunity will be expanded upon during
subsequent phases of the work Figure III-9 and Figure III-10.
Figure III-8: Sahiwal’s Current Growth Trends
Source: Urban Unit base map, Consultant analysis
39. Average density within the Urban Area is calculated at 108 persons per acre based on an
official urban area of 12.81 sq. km. (3,164 ac) and a current population of 343,119. Figure III-11.
40. Sahiwal’s growth trend is clearly focused on expansion, although not to the extent found
in more dynamic centers such as Sialkot. Figure III- 12 gives some idea of how far the built-up
area extends beyond the official boundaries, although scattered ad hoc expansion goes well
beyond. Virtually all of this expansion is unplanned with the exception of a number of private-
sector housing estates (90+), which are internally planned, but not integrated within a
comprehensively planned urban context. This issue of continued ad hoc expansion must be a
focus of the Strategy Development planning, as it is not financially nor environmentally
sustainable.
page 73
Figure III-9: Low-Rise Sahiwal Core - Colonial Base
Source: Google
Figure III-10: Low-Rise, Mixed-Use Congested Core
page 74
Figure III-11: Sahiwal Urban Density
page 75
Figure III-12: Sahiwal Built-Up Area
page 76
L. Existing Land Uses and Settlement Patterns

41. The Land Use profile of a city portrays the relationship of human activities and spatial
uses. Economic forces control the land use pattern in Sahiwal, mobility of residents and
changes/adjustments that occur in the dynamic urban scene.
42. Like all urban areas, the land use pattern in Sahiwal is also a reflection of two elements;
i) the nature of land uses and their location, and ii) the level of spatial accumulation, which
indicates their intensity and concentration. Central areas have a high level of spatial
accumulation and corresponding intensity of land uses, while peripheral areas have lower levels
43. Originally the city was designed as a planned town. It had an oval as the main focal point.
The roads radiated from it into residential and commercial areas. Administrative and educational
uses were planned around the residential and commercial parts of the city. After independence,
the city gained further development and emerged into a major administrative, industrial and
commercial town. Since no comprehensive plan was available, land in the town was utilized for
various uses and was mostly based on expediency rather than the principles of land
development. As a consequence, the present day city is a mixture of various uses. Except for
newly planned areas, there has been intensive mix up of land uses. Figure III-13, although
difficult to read details at this scale, gives a good indication of the general land use patterns. Note
that data entry is not yet complete on that figure, but is being continuously added to and updated
by the Urban Unit’s GIS Department. Table III-14 presents the areas and proportions of various
land uses in Sahiwal:
44. The main reason for the above phenomenon is absence of a city strategy map for the
present day scenario and lack of development control. Sahiwal will benefit from stronger land use
controls to prevent potentially harmful activities from being located near residential areas and
vice versa. Of particular concern is the dumping of solid waste, disposing of wastewater and
encroachments.
Table III-14: Land Use Distribution in Sahiwal

Area
Sr.
Land use Sq. % of Total Area
No. Acre
Km.
1 Residential 1,143.14 4.63 36.1%
2 Commercial 139.97 0.57 4.4%
3 Agricultural 520.35 2.11 16.4%
4 Public Buildings 357.86 1.45 11.3%
5 Religious 23.32 0.09 0.7%
6 Education 416.14 1.68 13.1%
7 Health 18.72 0.08 0.6%
8 Industry 55.97 0.23 1.8%
9 Graveyard 53.34 0.22 1.7%
10 Parks/Open Spaces 160.46 0.65 5.1%
11 Vacant Area 175.70 0.71 5.6%
12 Mixed Land use 99.97 0.40 3.2%
Total Area 3,164.94 12.81 100%
Source: Urban Unit data
page 77
Figure III-13: Sahiwal Land Use
page 78
45. There is a well-established small and medium enterprise industrial estate (SME) located
within the western part of the city near Medical College Road and adjacent to the Government
College of Technology (Figure III-15), but most of the larger industries such as Engro Food,
Philips Morris Tobacco, dairy product plants and other agro-based industries are situated along
Multan Road south of the canals and along ribbon developments outside the municipal limits.
46. Intense and active fruit and vegetable markets are active in the city core. These serve
both wholesale and retail functions at different times of the day. Consequently, they attract
different forms of traffic at different times of the day. Stakeholders expressed feelings that these
markets, along with the SME, should be relocated outside the city because of congestion and
solid waste management issues. However, the point was raised that these are key economic
functions used by many and form an important part of the socio-economic life of the city. The
issue is not its location, but a failure of urban management to address transport, solid waste and
other underling issues. Relocation will not solve these and only require expensive new
infrastructure while disrupting the life of the city. Furthermore, relocation would be counter to
Punjab’s Urban Development Sector Plan 2018, which clearly calls for promotion of compact
cities and reduced sprawl.
47. There is considerable local concern that agricultural conversion is not following a strategy
or plan, but is driven ad hoc by individual developers raising a number of ‘good-practice’
concerns: how to protect the agriculture? how to viably service these developments? how to
viably provide convenient access to social and economic amenities? how to support more
climate-change resilient public transport? how to protect the overall environment in the absence
of all the above? Figure III-16.
Figure III-15: Inner City SME Estate
Source: Google
page 79
Figure III-16: Ad Hoc Agricultural Land Conversion/Commercialization
Source: Google
M. Land Use Issues and Analysis

48. As Figure III-15 clearly shows, the land use pattern in Sahiwal has some well-defined
areas dating back to the original formal planning, but is increasingly becoming undefined and
haphazard. Some of the main causes are rapid population increase, unregulated spatial growth,
and lack of enforcement of whatever meager regulatory measures are available. The mixture of
incompatible land uses is a common phenomenon adversely affecting the quality of life.
Enforcement of zoning and land use regulations is necessary to promote public safety, health,
convenience, and general welfare of the community.
49. Currently there are no zoning practices being enforced in Sahiwal TMA, and only scanty
land use regulations39. The non-existence or lack of land use and zoning regulations - or the
enforcement of those that do exist - is one root cause of physical and environmental degradation.
Zoning and land use regulations form the legal basis through which the TMA applies planning
control. These regulate the overall spatial structure of a settlement. The guidelines will help the
TMAs to formulate their own specific regulations, as these are presented in a readily adaptable
format to the varied requirements of various TMAs. The proposed regulations and guidelines
allow flexibility for easy incorporation of changes over time.
50. Uncontrolled urban sprawl is not only consuming prime agricultural land; but also resulting
in increased cost of infrastructure, longer travel distances/time, increased fuel cost, higher traffic
volumes and pollution. There is no planned industrial estate except one, which was established
decades ago. As a result, industrialists have no choice but to establish industries outside the
formal, serviced city (along Multan Road to the south as one example) resulting in leapfrog
development, negating the desired concept of a compact, smart city.
51. There is no public consultation about planning decisions. In fact, stakeholders have stated
there ‘is no planning in Sahiwal’ Without such consultation, it will be difficult, except in the most
extreme circumstances, to frame planning decisions that will have the desired impact on
development. Unless public consensus underlies planning decisions, powerful investors will
seek, and receive, special treatment, because decisions made based upon technocratic
39
Consultants Discussions with officials of TMA Sahiwal
page 80
considerations will always be weaker than decisions based on political and financial influence.
Institutional capacity and recognition must achieve the level at which ad hoc political decisions
can no longer arbitrary over ride approved polices, plans and technical recommendations.
52. Planning and development is always challenged by a series of competing interests,

‘agendas’ (Figure III-17). All have valid components, but need to be balanced and integrated to
achieve the most sustainable and resilient results for all.
Figure III-17: Competing Urban Development Agendas
N. What Needs to Be Done?

53. Zoning facilitates effective and meaningful control of land uses. Zoning identifies the best
areas for residential, commercial, civic, industrial, institutional, recreational and miscellaneous
purposes. This is done to avoid incompatibility of land uses. Some zones may further be sub-
divided into different categories. For example, residential may be sub-divided into high, medium
and low-density zones. Similarly, industrial zones may be divided into light- medium and heavy
sub-categories.
54. Agricultural lands need to be protected from ad hoc conversion in such a way that this
core industry retains or gains in strength in a healthy environment. Urbanization will require some
conversion, but this must be systematically done in a minimal fashion with least productive lands
identified first and integrated into an overall urban development strategy.
55. In the existing built-up areas, there should be a gradual shifting of non-conforming uses
from a particular zone so as to cause minimum hardship to the owners of nearby conforming
uses. The non-compatible industries are priorities for shifting. Figure III-18 is one example of
brick making within the urban centre that cannot be considered compatible with surround
residential, commercial and institutional uses.
56. The land use zones so established are likely to change overtime because of
developmental pressures, and participatory planning processes at local, TMA and District levels.
Changes are an integral part of a Development Strategy with the key being well-managed and
integrated transition respecting a full spectrum of needs.
page 81
Figure III-18 Incompatible Inner-City Brick Making
57. When the land use zones have been established, all land within the TMA will be brought
under development control. For each zone, land uses permitted and those not permitted (under
Punjab Land Use Rules 2014) will be applied. This process only functions with strong institutional
capacity, something that is currently missing in Sahiwal and most other Pakistan cities.
58. Planning needs to be participatory, involving the community in prioritizing the projects
and to coordinate developmental activities. It is also necessary to ensure participation of the
marginalized groups i.e. women, minorities, and laborers/peasants.
59. Funding is only one aspect of project identification and implementation. Stakeholders’
cooperation, coordination and management are equally important. Community and other
stakeholders have fresh perspectives and may see problems in new ways. Their involvement
helps to deliver programs, which are more responsive to local needs. Such programs and
projects have better acceptability and much greater chances of sustainability.
O. Settlement Patterns
60. As already stated, Sahiwal has the oldest urban civilization in the history of mankind.
Harappa a nearby town flourished around 3000 BC. In the post 1947 period, the growth trend
was largely in the northern direction. After 1960s in-fill developments started in the town. In the
original planned city, Sahiwal had an oval shaped road in the centre, and roads radiated from it in
different directions. With the increase in population, and without a comprehensive plan/planning
control, town began to expand haphazardly. As a result, the town has now an admixture of land
uses, some non-compatible. Besides, the city canal is not being taken care of, and is being used
to dump solid waste along it, disposing sewage into it and by not controlling encroachments.
61. Although there is a small industrial estate in the town, larger industries have been
developed along Multan Road and the trend is continuing.
page 82
62. The dominant and most problematic current settlement pattern is unplanned and
uncontrolled sprawl. This takes 3 main forms: individual industrial developments, primarily along
major traffic arteries; small-scale commercial or individual houses developed in an ad hoc
manner, and the larger-scale ‘housing societies’ where significant sized pieces of land are
converted from agriculture to multi-unit private residential development. These again occur
without planning approval40.
P. Existing Development Plans

63. The growth of Sahiwal since 1973 has been guided by the following planning
interventions:
64. An Outline Development Plan and Zoning Plan, covering the period 1973-1988; It is a
rigid plan, prepared without stakeholder consultations, with high emphasis on physical planning
but ignoring strategic aspects such as economy, regional linkages, and socio-cultural aspects.
Most of its recommendations pertaining physical aspects could also not be implemented
because of reasons stated earlier.
65. The Master Plan of 199641 was prepared under World Bank Funded ‘Feasibility Studies
and Urban Master Planning of Ten Cities of Punjab’ The plan period was 20 years (1994-2019).
The Plan aimed to maintain its cultural and industrial nature and its westward growth. The plan
recommended the placement of functional uses on a natural growth axis to the south and west
following a policy of concentrated growth rather than a possibly costlier policy of dispersed
growth. A series of concentric roads were proposed to encourage contiguous, economic and
compact city development.
66. Based on a professional assessment of the on-the-ground reality, past efforts at planning
in Sahiwal have failed, and present capacity for planning and development control is limited and
ineffective. The main reasons for these failures and shortfalls is the lack of public involvement in
planning, unrealistic planning, lack of a governance system that engages the skills and
knowledge of the private sector, and lack of implementation mechanisms consistent with the
capacity of planning agencies. Many of the building blocks for an effective planning process are
in place, but they lack a framework within which they can be effectively integrated into a planning
system.
Q. Infrastructure
67. The overall PICIIP is assessing urban infrastructure in Technical, Institutional and
Resilience perspectives. The three are, of course, fully integrated, but areas of focus differ. This
Rapid Urban Assessment focuses less on the detailed technical aspects and more on their
overall conditions, levels of service, resilience and climate change response as they impact
overall urban growth and development patterns. Related institutional aspects are also touched
upon. This sets the framework for more technical Pre-Feasibility work by helping to ensure that
infrastructure investment proposals are in full support of the city’s long-term visions and
development directions.
68. The PICIIP is focusing on investments in priority urban water supply, sanitation and solid
waste management. These systems are only effective, efficient and sustainable if they consider
the socio-economic, cultural, environmental and overall urban development contexts in which
they operate. Infrastructure highlights with particular impact on a City Development Strategy are
presented below. For details refer to the accompanying Pre-Feasibility Report.
40
Discussions with TMA Officials.
41
Department of Housing & Physical Planning, Government of Punjab, Lahore.
page 83
Transportation/Access
69. Efficient mobility of people and goods is fundamental to a healthy economy both
within the city and connections to other areas. Sahiwal is well served by connecting surface
transportation infrastructure. The national N5 (AH2) highway between Lahore and Karachi
passes through Sahiwal, with a combination of the more local Multan Road, which is a major
inter-city artery, and a by-pass to the south (Figure III-19). Both are attracting uncontrolled
industrial development, which if left un-checked, will rapidly degrade the transportation efficiency
of these important corridors. Two main overpasses link these major roads to the inner city,
passing over both railway and two canals. These limited access points, and the fact that they are
not friendly to all modes of transport, create some bottlenecks and challenges. A broad gauge
railway line, again linking Lahore with Karachi, passes through the city just south of the core and
is an important piece of economic infrastructure. Sahiwal has no air linkage. Sahiwal’s location
along the Pak-China Economic Corridor will see all of this linking infrastructure upgraded and will
undoubtedly enhance its transport connections and Sahiwal’s economic opportunities.
Figure III-19: Sahiwal’s Major Transport Linkages
70. At the local, inner-urban scale, transport is less efficient. However, as a result of early
colonial-era planning, Sahiwal does have numerous major, wide thoroughfares cross-cutting the
city providing the framework for efficient inner-city mobility and the potential for efficient public
transport. To take advantage of these assets a much more rigid and comprehensive traffic
management program needs to be implemented and institutionalized. The unmanaged multi-
modal/user nature of the streets, including commercial encroachment, leads to further
congestion. Much of this congestion could be alleviated through a comprehensive and well
thought-out traffic management program including modal separation. At the moment, ad hoc
prevails. Before heavy investment is made into new physical infrastructure, all efforts should first
be made to maximize the use and efficiency of the existing infrastructure investments through
improved management.
page 84
71. Much of Sahiwal’s (and Pakistan’s) daily economic activity is pedestrian-based as

residents conduct their business with vendors and small shop owners. Much of this business
currently takes place along narrow inner-city streets competing with the full range of conflicting
transport activities (Figure III-20). A careful look needs to be taken at establishing a road
hierarchy and whether or not all modes of traffic need to be allowed on all streets without control.
Segregated uses in a managed street hierarchy may limit some to pedestrians only during
business hours, and motorized delivery and waste management during non-business hours, etc.
The City Development Strategy will further explore these low-cost options that can also greatly
improve the quality of the urban environment and the quality of residents’ experience within it.
Figure III-20: Unmanaged Inner Streets
72. Major roads in and out of Sahiwal would benefit from construction of parallel service
roads where they do not already exist. Without regulated service roads, the commercial sprawl
that exists along these roads impedes traffic flow and safety with ad hoc parking, traffic
movements, and commercial encroachments.
Public Transport
73. Sahiwal’s internal public transit consists almost entirely of informally operated small
buses/vans and auto rickshaws. As noted above, the absence of any significant traffic
management means that transit operations are not efficient resulting in road congestion being
caused by the multiple road users. For inter-city transport there are however bus terminals,
including the Daewoo Terminal on Sahiwal Bye-pass handling luxury bus connections to Lahore,
Multan and other urban centers.
Drainage
74. Drainage apparently is not a major determinant of road network efficiency and overall
environmental health of Sahiwal at the large scale. Flooding in the city has not been reported to
be a major climate-related hazard, at least in the recent past, although short-term, post-rain flooding
does occur in localized areas. The irrigation canals running through the city are well controlled and
are not a flooding theat. The Ravi River, the nearest natural water body, is almost 20 km away.
However, a network of formal storm water drains along roadways is required, in a well-
engineered and comprehensive manner with a well-defined hierarchy of channels.
75. Public awareness, attitude and actions: many, if not most, of the existing drains do not
function due to filling-in by adjacent shop owners and/or use of drains for dumping solid waste.
page 85
Water Supply42
76. Ground water is the sole source of portable water exploited in Sahiwal. Good quality
water is abstracted from the sandy deposits below 30 feet that vary from fine to coarser material
having layers of calcareous kankar modified by limestone / sandstone weathering. The water
table averages about 40-50 feet below the ground level and upper level produce limited
quantities of mineralized water. At depths of 450-500 feet greater quantities of good quality
ground water are available and this is where the city‘s supplies are derived.
77. The water supply is based on ground water and tube wells, which are 46 in number. The
water supply network covers 90% of the city and serves 90% of the total population according to
the Sahiwal Urban Profile, 2010 by GHK. However, that assumes full functionality, which is not
the case. Networks are more than 30 years old, and suffering from deterioration, leakages and
cross-contamination from adjacent sewerage pipes43. Areas to the south are not formally served.
Refer to the accompanying PFS for details.
78. The distribution system consists of 8 overhead reservoirs of 450,000-gallon capacity.

Distribution is by a looped network, which is made of different type of materials including A.C.,
P.V.C., MS., and duct Iron pipes. The sizes of pipe vary from 3 to 12-inch diameter.
Major Issues:
 No proper record keeping.
 Illegal connections.
 Tax evasion
 Corruption by lower officials in recovery of water rate
 Rusty pipes
 Very low rates
79. Political resistance to increasing rates prevents adequate maintenance and network
expansion.
Sewerage/Sanitation
The existing system officially covers 90% area of Sahiwal through an approximately 40 km long
sewerage network according to recent studies44. However, from Figures III-21 and III-22, it can
be seen that coverage may actually be less and is rapidly falling behind urban expansion. Again,
the age and lack of maintenance mean that although the system is theoretically in place, it is not
functioning, as it should. The wastewater is generally disposed of to the nearby canal systems,
which are not only polluting the environment but also causing many water borne diseases
Major Issues:
 Much room growth of housing colonies without any master planning and proper approval
of Tehsil Municipal Administration
 Sewer is laid down quite often by other agencies and no proper map/records are
available with T.M.A.
 Encroachments
 Plastic bags
 Open drains also take silt in the sewerage system
 Theft of Manhole covers
 Cattle dung
 Damaged sewerage lines
 Poor monitoring & Supervision
42
Urban Planning in Sialkot, GHK, 2011
43
Sahiwal stakeholder comments.
44
Sahiwal Urban Profile, 2010, GHK
page 86
Figure III-21: Water Supply Pipe Coverage
Data source: Urban Unit
Figure III-22: Formal Sewerage Coverage
Data source: Urban Unit
page 87
Solid Waste Management
80. The existing solid waste management (SWM) system of Sahiwal is not well managed
and is falling well short of current needs and global good practice. A lack of adequate collection
services and lack of adequate land fill sites results in much of the waste material simply being
dumped along the canals, one of the worst possible locations given the potential for wide spread
contamination (see Figure III-23). The Tehsil Municipal Administration (TMA) is responsible for
SWM. The existing solid waste collection in general is divided into primary and secondary
collection system.
81. Sahiwal city comprises of 10 union councils, each union council has peculiar land use
and characteristics with respect to composition of waste generated. The amount of waste
generated and extent of pollution varies UC to UC. The allocation of sanitary staff in UCs
does not commensurate with the workload resulting in the presence of huge heaps of waste in
streets and open places. The Sanitation Staff therefore is required to be rationalized on need
basis.
Figure III-23: Solid Waste Dumping Along Canals
82. With increase in population, environmental degradation is on the rise in the country and
Sahiwal city is no exception to this phenomenon. Increased economic activities in agriculture,
manufacturing and commercial sector overtime have aggravated environmental problems in
Sahiwal city which need timely resolution.
83. Presently primary collection of waste by TMA is carried out by hand carts and taken to
road side open places / heaps followed by secondary collection through Tractor Trolley and final
dumping at Ratti Tibbi dump side. Under present Scenario only 32 % of solid waste is being
collected, transported and disposed of
Major Issues
 Present practice of waste disposal by TMA is not specific as there is no landfill site
available for proper dumping of the waste.
 The collected waste is being disposed of at designated dump site at Ratti Tibbi without
making any arrangements for environmental safeguards.
 Inadequate staff
page 88
Power
84. Sahiwal like rest of the country does not have adequate, reliable and uninterrupted
24/745-power supply. Interruptions are frequent, forcing industries, other businesses and many
residents who can afford it to rely on back-up diesel generators. These are costly,
environmentally degrading and generally a poor second option. Power generation and primary
distribution is generally beyond a single urban centre’s capacity to manage and relies on
provincial and national government support. Any city with reliable power enjoys an
immediate competitive advantage. Solar options are increasing in popularity and should be
promoted for institutional and residential use, but the technology has not reached the stage
whereby it can be the sole source for heavier industry.
Green Building
85. No specific examples of Green Building initiatives were pointed out during fieldwork in
Sahiwal, even though it is a well-known among officials as a potential contributor to improved
climate change resilience.
86. Resources are not available to implement upgrading at the moment, but
recommendations will be made to encourage government to serve as the leader demonstrating
innovative models of green development. The private sector is even more aware of the
advantages to their businesses, and recommendations will be made as part of forthcoming
Urban Development Strategies to provide incentives for green building development.
R. Review of Institutional Arrangements

87. Under the devolved system, the local governments in Pakistan have three tiers i.e.
District, Tehsil and Union. Each of these has its own functions, as mandated by the Local
Government Ordinance, 2001. The District Government looks after more than 11 sectors, for
each of which there is an Executive District Officer. The Tehsils mostly look after the municipal
services including water supply, sewerage, drainage, solid waste management and street
lighting, etc., while the union councils are mainly concerned with operation and maintenance of
local level municipal services.
88. Figure III-24 illustrates how these administrative tiers apply to Sahiwal.
89. Under the Punjab Local Government Ordinance, 2001 46 , a number of provincial and
(formally defunct, now restored) divisional departments were decentralized to the District
Government. The District Government manages and controls these offices. District Nazim heads
the District Government and is assisted by the District Coordination Officer. The District Council
approves long term and short term development plans, annual and supplementary budgetary
proposals of the District Government and, where required, intra-district fiscal transfers47.
90. Under the Local Government Ordinance 2001, many of the provincial functions have
been devolved to local level. These include spatial planning, zoning/land use control and
development control regulations, which have been entrusted to Tehsil Municipal Administrations
(TMAs). However, a crucial deficiency is the lack of capacity of TMAs to carry out these
functions. To make the TMAs responsive to their functions, it is important to have a closer look at
their administrative set-up. Spatial Planning functions of the Tehsil Municipal Administration are
summarized below:
45
Meaning constant, uninterrupted, high quality power supply for 24 hours per day, 7 days per week.
This infers no need for generators or load shedding.
46
The pre-2001 system of Local Governments is likely to be restored to restored soon, in which urban areas
will be looked after by urban councils such as Municipal corporation/Municipal Committee/Town
Committee etc. while the rural areas will be the responsibility of District Council.
47 th
Punjab Local Government Ordinance, 2001 (amended up to 13 April, 2002), Section 39(c).
page 89
Figure III-24: Sahiwal Administrative Boundaries
page 90
91. Preparation of Tehsil spatial plans, Land use, Zoning;
 Exercise control over land use, land-subdivision, land development and zoning
 Enforcement of municipal laws/rules/bye-laws;
 Compilation of information provided by union and village councils of prioritized projects in
the Tehsils.
92. The role of District governments in the approval process for spatial, land use and zoning
plans needs to be highlighted. Under the devolved system, Tehsil is of course, the focus of
planning attention, and major spatial planning inputs will go into the Tehsil plan. However, a
Tehsil plan cannot be a ‘stand-alone’ document, and it is highly desirable that the TMAs should
submit their respective Tehsil plans to the District Government, so as to address the inter-Tehsil
and cross-territorial issues. The amalgamation of Tehsil plans should take form of a loose District
Structure Plan. These District Structure Plans will form the basic building blocks for formulation of
a provincial spatial strategy. The District Plan based on Tehsil plans will also provide an efficient
district-level transportation network and a physical framework for the settlements lying within the
district. The Tehsil plan, besides providing upward linkages with the district plan, will also provide
a framework for the preparation of local plans for union councils.
93. See detailed discussion of Institutional under Chapter VI.
S. Organizational Structure of Tehsil Municipal Administration

94. Figure III-23 illustrates the overall structure of the TMA. The elected Tehsil Nazim who is
responsible to ensure that the business of the TMA is carried out in accordance with the
provisions of the PLGO 2001, heads the TMA. He provides:
 vision and direction for efficient functioning of the municipal administration;

 formulates strategies for the development of its municipal infrastructure, and
improvement of delivery of the municipal services to the Tehsil;
 oversees formulation and implementation of long term and annual municipal
development programs;
 oversees the delivery of services by the TMA and implementation of the laws
governing the municipal services;
 presents the budget proposal to the Tehsil Council for approval;
 supervises the utilization of the funds allocated to the TMA, and ensures their proper
accounting;
 establishes and supervises the working of the Internal Audit Office; and
 represents the TMA on public and ceremonial occasions (Section 57).
95. The Tehsil Municipal Officer (TMO) is the focal person in the TMA. He assists the
Tehsil Nazim; acts as the co-coordinating and administrative officer in-charge of the offices and
units of the TMA; and is the Principal Accounting Officer of the TMA.
96. There are four Tehsil offices of the TMA including (i) Planning and Co-ordination; (ii)
Municipal Regulations; (iii) Infrastructure and Services; and (iv) Finance. A Tehsil Officer heads
each Tehsil office. In order to provide integrated services in the urban areas of the Tehsil where
formerly an urban local council (ULC) functioned, a separate unit has been set up. Each such
unit is headed by a Chief Officer and referred to as the CO Unit, which works under the TMO.
97. The TMA Rules of Business provide for an Executive Committee headed by the TMO
and comprising of all the four TOs and the COs. This Executive Committee deals with all matters
concerning two or more offices, administration, and financial or public policy; facilitates co-
ordination among the offices of the TMA; provides avenues for consideration of matters of
common interest and tenders advice for cases that are referred to the Tehsil Council or the
Tehsil Nazim.
page 91
Figure III-25: Organizational Set Up of TMA Sahiwal
98. Tehsil Officer, Planning and Co-ordination [TO (P&C)]: is responsible for spatial
planning, zoning, land-use and building control. Development planning includes co-ordination of
projects of the Union Administrations and Village/Neighborhood Councils in the Tehsil with other
local governments.
99. The Tehsil Officer, Municipal Regulations [TO(R)]: is responsible for licensing,
regulation and enforcement of municipal laws; and the management of municipal properties,
facilities and enterprises.
100. The Tehsil Officer, Infrastructure and Services [TO (I&S)]: is responsible for water,
sewerage, drainage, solid waste, municipal roads, streets, street lighting, fire-fighting and parks
in the Tehsil.
101. In the urban areas these services are delivered through the CO Units. Therefore, it is
envisaged that the main responsibility of this office will be to develop new capital works jointly
with the CO Unit, and provide it technical support. In addition, this office provides all engineering
related support to other offices of the TMA (and where requested to the Union Administration).
page 92
102. The Tehsil Officer Finance [TO (F)]: is responsible for budget, revenues and accounts,
including survey for surveillance and revenue potential.
103. In general, the urban institutional capacity in Sahiwal is weak. This is the major cause of
ad hoc urban development, infrastructure and service delivery challenges, and the main
constraint to long-term resilience and adaptation to climate change. A further assessment of
institutional constraints on city competitiveness is presented in Chapter V.
T. Regulations
Private Housing Schemes, 2014
104. These rules are for private housing schemes including farm housing and land-
subdivision. It provides the following information to sponsors: the procedure for planning
permission, documentation required, planning standards to be followed, scheme layout, fees and
fines etc.
Lahore Development Authority Land Use Rules 2014

105. Although these rules are for the Lahore Development Authority, if necessary, they are
also used by other planning agencies in Punjab. These rules deal with land use classification
(residential, commercial, industrial; institutional, mixed use; peri-urban, special development
zone, agricultural, and notified area). The rules also specify uses that are permitted, permissible
and prohibited within each land use category. And deal with re-classification of land uses and re-
development.
Punjab Local Government (Commercialization) Rules, 2004

106. These old rules were promulgated in 2004. There have been time-to-time amendments,
but the gist remains the same. Commercialization, as defined under these rules, means change
in the use of land or building, from residential to commercial, against the uses prescribed in the
approved plan. Under these Rules, the land use shall be regulated in accordance with the land
use plan prepared under the approved plan notified by the Tehsil Municipal Administration and
vetted by the Housing, Urban Development and Public Health Engineering Department,
Government of the Punjab. The commercialization committee formulated in a city will decide
whether roads need to be commercialized, after analysing various aspects such as prevailing
growth pattern of the area, anticipated future development potential, predominant commercial
land use, traffic volume, road width, and any other factor considered relevant by the
Commercialization Committee.
The Infrastructure Development Authority Of The Punjab Ordinance, 2015

107. An Ordinance dated 24th August 2015 has been issued to provide for founding the
Infrastructure Development Authority of Punjab. The Authority’s duties include planning,
designing, construction and maintenance of infrastructure in Punjab, in line with the best
international practices in order to cope with the futuristic development needs; and for hiring
international and local consultants, contractors for execution, management, operation and
maintenance thereof. The Authority shall be a body corporate, having perpetual succession and
a common seal, with power to enter into contracts, and acquire or dispose of property.
The Punjab Safe Cities Authority Ordinance 2015

108. The Ordinance was issued in July 2015, to establish the Punjab Safe Cities Authority. Its
purpose will be to manage the construction, development and maintenance of a citywide
integrated command, control and communications (IC3) system in the major cities of Punjab to
ensure the safety and security of its people.
page 93
U. Primary Economic Growth Drivers

City’s Contribution to National/Economic Growth
109. Sahiwal is a major agricultural centre in one of the richest wheat and cotton producing
areas of Punjab. There is a good base of agro-based industrial development with significant
room for expansion as infrastructure improves and the linkage benefits improve with the
construction of the China-Pakistan Economic Corridor. Although a controversial development, a
new coal-fired power generation could attract further industry. Industrialization and growth of
urban centers are both key pillars of Punjab’s Growth Strategy 2018.
Dominant Economic Activities
110. Sahiwal District is an agricultural area. Major crops include wheat, cotton, sugar cane,
maize and rice, with dairy being another major component. In addition to direct export of raw
produce to other parts of Pakistan and, subsequently internationally, there is a growing amount
of local value-added agro-processing and related agricultural-based industry expanding around
the city of Sahiwal. These industries include: cotton ginning, textile spinning and weaving, dairy
products, pharmaceuticals, cooking oil mills, flour mills, and food processing/manufacturing48.
111. Figure III-26 schematically illustrates some of Sahiwal’s economic linkages.
Figure III-26: Sahiwal - Economic Linkages
48
www.punjab.gov.pk
page 94
112. Both wholesale and retail trade in crops and produce are key components of the local
economy along with distribution of agricultural equipment to surrounding towns and villages. An
active wholesale grain market is one such facility attracting crops from the region for onward
selling. In some respects, it is well located centrally, adjacent to the railroad, but it must be
accessed through congested surrounding informal neighborhoods with no room for expansion.
Being only a wholesale facility not relying on nearby customers, it is one that could be re-located
to an industrial area. Figure III-27.
Figure III-27: Sahiwal’s Grain Market
113. The Sahiwal Chamber of Commerce is active in promoting business and industrial
development and has one of the largest interests in seeing efficient, well-managed urban
development taking place. The Chamber has expressed a strong desire for formally established,
well serviced, industrial parks. These would help to reduce the current ad hoc urban sprawl and
agricultural land commercialization.
114. Some of Sahiwal’s leading private-sector industries include: Mitchell’s Fruit Farms
Limited, Montgomery Biscuits, Engro Foods Limited, Beakers Land and Sweets Factory, Ittefaq
Sugar Mills Limited, Baba Farid Sugar Mills Limited, Lackson Tobacco, Philip Morris Tobacco,
Fauji Fertilizer Company, Habib Oil Mill among others49.
49
www.slcci.com.pk
page 95
115. As with every urban centre in Pakistan and in most emerging economies the informal
sector likely accounts for the vast majority of the economic activity, although by its very nature
statistics do not usually capture this. A simple look at any street is indicative of the high level and
importance of the informal sector in which, by Punjab average 50 , approximately 70% of the
population are actively engaged and probably 100% participate. At the same time, their dominant
presence in the urban setting is ignored from a planning perspective with the resulting street
chaos evident everywhere. This was discussed above in relation to traffic and transport, and will
be addressed as an important part of future City Development Strategies.
City Competitiveness Enablers

V. Business Environment and Comparative Advantages
Sahiwal in the Pak-China Economic Corridor
116. In theory, Economic Corridors are described as transport (or trade) corridors with under-
utilized economic potential in their environs, the development of which would be explored
through different development projects. They are therefore seen as a means of prioritizing and
promoting inter-related infrastructure, and large-scale economic sectoral investments in defined
geographic areas and optimizing the use of infrastructure.
117. The Pakistan-China Economic Corridor (CPEC) is an ongoing development mega

project which aims to connect Gwadar Port in south-western Pakistan to China’s north-western
autonomous region of Xinjiang, via a network of highways, railways and pipelines to transport oil
and gas. Other than transport infrastructure, the economic corridor will provide Pakistan with
telecommunications and energy infrastructure.
118. Sahiwal lies within this Corridor, and thus would be a direct beneficiary. In this Corridor,
Two Coal Power Plants are to be built in Qadirabad, which is located around 19 Kms from
Sahiwal on Multan Road (N5) in the direction of Lahore. Work has already started on this Project,
which will generate 1,320MW of electricity and to be completed in 30 months with China’s
assistance.
119. It is worth mentioning that Pakistan only produces approximately 10% electricity from
hydro power plants in Pakistan while Pakistan can produce a lot more (90% resources are not
being used). It is the cheapest means of producing electricity. Some quarters have indicated ill
effects of coal power plants in terms of pollution etc., but Chinese have assured proper mitigation
measures.
Harappa Archaeological Site as Tourist Attraction

120. Harappa is one of the two main cities of Indus civilization, and is located at a distance of
about 20 km west of Sahiwal. The site is a major tourist attraction and contains ruins of a Bronze
Age fortified city. The city is believed to have had as many as 23,500 people living there, which
can be considered a large population for that time (2500 BC).
121. The Harrapan civilization, with a script of its own, urban centers, and diversified social
and economic system, was rediscovered in the 1920s. The archaeological site at Harappa was
partially damaged in 1857. Its current state is sadly not satisfactory.
122. Harappa is generally characterized as having differentiated living quarters, flat-roofed

brick houses, and fortified administrative or religious centers. Although copper and bronze were
in use, iron was not yet employed. Cotton was woven and dyed for clothing; wheat, rice, and a
variety of vegetables and fruits were cultivated; and a number of animals, including the humped
bull, were domesticated.
50
page 96
Sahiwal Dairy Cattle Breed
123. The Sahiwal breed is the best dairy breed of humped cattle. Professional herdsmen once
kept them in large herds. However, with the introduction of irrigation in the region they began to
be kept in smaller numbers by the farmers of the region, who used them as draft and dairy
animals. It is tick-resistant, heat-tolerant and noted for its high resistance to parasites, both
internal and external. Cows average 2,270 kg of milk during lactation while suckling a calf, and
much higher milk yields have been recorded. Sahiwal demonstrates the ability to sire small, fast
growing calves and are noted for their hardiness under unfavorable climatic conditions.
Regional Transportation
124. Sahiwal town is situated at a distance of about 18 miles from the left bank of the river
Ravi, 187 Km west of Lahore and 200 km east of Multan. The Grand Trunk Road and the main
railway line connecting Peshawar-Lahore with Karachi pass through the town. The Lower
Bari Doab Canal separates the town into two parts. Its approximate height above sea level is 500
feet. Sahiwal lies 30°39'52. 16" N latitude and 73°6‖30.54"E longitude.
W. Competitiveness Disadvantages
Power Supply
125. The industrial and agricultural sectors have suffered millions of rupees’ production losses
due to hours of load shedding carried out in Sahiwal like rest of Pakistan.
Environmental Degradation
126. The under construction coal fired power plants in Qadirabad near Sahiwal haunt some
people for their possible negative impacts on environment. It is important that Government keeps
a close watch on this aspect and ensures that proper mitigation measures in this regard are
taken.
X. Institutional Capacities and Development Constraints

Overview of Urban Planning in Punjab
127. One of the fundamental issues impeding the proper planning and development control of
urban areas such as Sialkot and Sahiwal is the general lack of integration between urban spatial
planning instruments, such as Outline Developments Plans (ODPs), Overall Strategic Plans/Five
Year Plans etc. and the project preparation and implementation stream using the PC-151 or PC-2
instrument. The persistent lack of proper planning, programming and the use of spontaneous or
ad- hoc planning principles can be traced to52:
 Lack of inappropriately placed and constituted agency to ‘own’ and pursue urban
planning as an integral sector of overall economy. A large number of agencies are
involved in various aspects of the urban planning process. As a result, projects cannot be
identified and prepared in consonance with the spatial and economic growth strategies of
specific towns.
51
The acronym PC denotes the Planning Commission. The Planning Commission have developed a number
of formats such as the PC-1, PC-II etc. The PC-I is the basic form on which all donor assisted
projects/schemes within Pakistan must confirm to and be drawn up and framed in. The PC-II is required
for conducting surveys and feasibility studies, in respect of larger projects. Both are necessary to get the
full justification for undertaking the project before large resources are allocated to them by government.
52
Based on consultations with TMA officials, stakeholder’s meetings and observations of ICDS Consultants.
page 97
 Partly owing to the above, there is no clearly stated urban development policy and as a
result the urban planning involved in Master Plans cannot include specific guidelines for
effective development control. An integrated process therefore, cannot be initiated.
 Lack of local government’s awareness of Integrated City Development Strategy, its

processes and procedures.
 The curriculum of professional institutions needs to be more relevant to the operational

planning practice. Urban Planners and Engineers in Pakistan need to be trained to
prepare feasible projects, and to understand and undertake Strategic Planning. So that
when they take up their positions in an organization such as TMAs responsible for urban
planning, they should be able to prepare realistic plans keeping in mind strategic aspects
such as social, economic and cultural dimensions.
 The outcome of the planning policies should be such that implemented projects can be
measured against a pre-set scale to gage its level of success. A good performance
measure would state yes, whereas a poor performance would say no. However, it is not
as simple as that; planning policies operate within a set of parameters and criteria.
128. The following parameters are examples of overall goals of an urban service
management:
 Effectiveness of communication and co-ordination linkages between the implementing
agencies and intended beneficiaries
 Effectiveness of commercial linkages between implementing agencies
 Impacts of the economic and political environment on the effectiveness of project
implementation
 Effectiveness of internal monitoring and management information systems
 Satisfaction of intended beneficiaries with inter-agency co-ordination, and in particular its
outputs
129. The accountability for quantity and quality of urban services will not achieve the desired
benefits until the more fundamental barriers to performance at TMA level have been addressed.
Until that time, provincial government will achieve greater economic benefits from retaining
scarce resources of skilled manpower at a central level, and using them to support TMAs.
130. Before TMAs are allowed greater autonomy they must first be brought up to a higher
standard of management in terms of planning, organizing, staffing, control, governance and
measured accountability. When this improved status has been achieved then increased
autonomy through devolution will achieve the maximum benefits. However, until municipalities
can demonstrate this increased core competence, there is a risk that funding will not be used to
the best advantage.
131. The overriding goal must be to establish an environment where the standard and level of
urban services to the citizens of Sahiwal and Sialkot is improved in a sustainable manner. The
Program Loan should provide the mechanism and funding to improve the skills and capability of
staff, organization structures, procedures and working practices, and to ensure that the total use
of resources in the urban sector is used to its maximum advantage.
132. Improvements in the urban planning process will not, however, be achieved simply by
restructuring. They require changes in organization culture, or ‘the way things are done’. The
vision for TMAs must be that in a few years they have advanced to the stage where they can
successfully manage many of the urban planning activities themselves.
133. Instead of rigid urban master plans, which are usually un-implementable and encourage
sprawl, the aim should be to prepare an integrated urban development strategy for the towns of
Sahiwal and Sialkot. This statement would include a sector policy statement, a time bound action
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plan for institutional reforms, a prioritized investment plan and a financing plan through a
participatory process.
City Development Planning and Implementation
134. A lot needs to be done to remove institutional weaknesses and build capacities of local
government institutions particularly TMAs. Some of the present constraints are as below:
Lack of Development Control
135. Lack of development control and indiscriminate land use changes without TMA’s
approval are causing not only substantial revenue losses to TMAs, but also resulting in
haphazard expansion of built-up areas, wastage of prime agricultural land, admixture of non-
compatible land use, ribbon developments along main communication routes and environmental
degradation.
Outdated Master Plan
136. Development control tools and land use regulations are of little value, unless there is a
plan to implement. For the regulations to be meaningful, it is essential to have an up to date plan,
rather than following an obsolete plan prepared in early 1970s, which is the case in Sahiwal.
Indiscriminate Commercialization
137. Commercialization has become a fad. Originating from Lahore, this is being spread
throughout Punjab. Due to resource crunch, it is a handy tool to generate revenue. But
indiscriminate use of this tool is creating problems in terms of increased traffic, parking problems
and environmental degradation. Commercialization needs to be allowed with dexterity, on a
case-to-case basis, and only where it is appropriate and environmentally permissible. Parking
provisions must be an integral part of any commercial establishment.
Lack of Inter-Departmental Coordination
138. To ensure proper planning control, the concerned authorities should not approve the
electricity, telephone, gas connection etc. unless the approved building plan is attached with the
application. At present this is not the case.
Untapped Revenue Generation
139. TMA Sahiwal has significant unexploited potential to enhance their sustainability through
better revenue generation. In most cases, potential sources of revenue have not been effectively
tapped. In general, revenue collection should be more affective at local level, as the potential
sources of revenue are better known. Besides, taxpayers are usually more willing to pay taxes as
the utilization of money is obvious to them, and the public entities managing such tax revenue
are within their reach in terms of political supervision and control. Decentralized management of
public funds creates an opportunity not only for increasing total revenue but also for spending
these funds more wisely and more effectively, including benefit to the disadvantaged groups,
provided systems of adequate checks and balances are institutionalized.
Rigidity in Urban Plans
140. A Spatial Plan should aim at providing framework for orderly and organized growth of
human settlements over a number of years. The individual projects or schemes (physical
infrastructure and others) should stem from the strategic spatial plan. In practice however, this is
not the case, since Sahiwal like most TMAs have no long-term strategic spatial plan.
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Lack of Public Consultation
141. At present there are no public consultations for planning and development of projects in
TMA Sahiwal. For encouraging public participation, TMA requires support in community
mobilization, community empowerment, participatory reflection and action.
Lack of Land Use-Infrastructure Integration
142. Land use planning and infrastructure investments should be integrated otherwise land
use planning is bound to fail. Spatial planning can make substantial differences. The guidance it
can give regarding the timing, location, quality and size of an infrastructure project offers greater
efficiency and effectiveness when investing the scarce resources. The motives for spatial
planning are not to control but to provide knowledge of opportunities and costs. It seeks to alert
and be responsive to the occasions when its advice can be of value, especially during the
selection and prioritization of urban infrastructure projects.
Lack of Concept about Human Resource Management
143. Most government officials do generally not understand the concept of Human Resource
Management in TMA Sahiwal. 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.
Lack of Planning Staff
144. There is only one qualified Town Planner in TMA Sahiwal. The ratio of planners to
population in Sahiwal is therefore about 1 per 500,000 persons, whereas in a typical city in the
developed world it may be on the order of 1 per 10,000 persons, giving the developed world city
50 times the capacity of Sahiwal. Besides, only about 20% of building projects are being
submitted for review, therefore, further illustrating the ineffectiveness of the present system. The
posts of 83% management staff and 92% of other staff are filled.
Y. Urban Infrastructure and Service Delivery

145. The key competitive constraints facing this sector are multiple. TMA Sahiwal faces
challenges of capacity, financial resources and equipment for improving the services and to
respond to residents’ and industry’s needs for infrastructure and service delivery. The city is
unable to cope with the demands placed on its resources, nor offer suitable solutions and
institutional arrangements.
145.1. 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 pays little attention to day-to-
day operational needs or the wider concepts of service provision.
145.2. There is lack of a systematic approach to collection, recording, collating, updating

and processing of data. As an example, in relation to water supply and quality
considerations, no information is available on the incidence of waterborne and
hygiene-related disease. Data shortfalls are mainly due to the lack of institutional
capacity at the TMA level.
145.3. Considering the congestion on roads caused by high traffic volumes of private
cars, auto-rickshaws and other similar needs of transport in Sahiwal, there is a need for
doing fewer but larger projects through pivotal non-physical and physical investments
to promote structural change and transformation to improve urban transport service
delivery. Structural change and inclusiveness require an enabling environment for the
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private sector, credible regulatory frameworks, efficient financial intermediation, critical

infrastructure and services, and institutional effectiveness and capacities.
145.4. The SWM department is poorly resourced and significantly understaffed in the
management and skilled labor categories, resulting in inadequate planning capacity, poor
information and weak financial management. Institutional roles, responsibilities and
operational functions are fragmented, lack a clear division of responsibilities and suffer
from inadequate planning, management and enforcement capacity.
145.5. The institutional framework for the delivery of transport services and
infrastructure in Sahiwal is confused, with numerous agencies having overlapping and
sometimes conflicting roles. The resulting problems are compounded by a shortage of
capacity, in particular technical capability, and limited budget.
145.6. There is also a lack of institutional coordination mechanisms to integrate

decision-making processes regarding budgets, infrastructure improvement and
development with those of land management. It is important to provide non-physical
support to undertake capacity building activities to strengthen the TMA for better
provision of urban infrastructure.
Z. Operations and Maintenance

146. Many of the municipal services provided in Sahiwal do not generate sufficient
revenue. Revenues from user charges are insufficient to cover even operations and maintenance
(O&M) costs of service provision, because of low tariffs, high technical and commercial losses
and poor collections. This could suggest that operations of the facilities are inefficient, requiring
private sector partnerships to reduce costs. The Sialkot Administrator53 indicated he has been
able to raise water tariffs from 35% of the economic cost to 50% of the economic cost. Political
resistance prevents higher cost recovery and achievement of the full economic costs.
147. Collections are erratic, and operations are financed mostly through operating subsidies
and development grants from the provincial government. Good cost recovery performance
of the municipal water supply operations provide a solid basis for the introduction of
private sector partnership corporatization initiatives.
148. In practice, repair and maintenance costs are not budgeted for, and the costs are met
from development expenditure. There is need for an automated maintenance management
system as well as a computerized maintenance management system to establish a dynamic
asset inventory.
AA. Financial Management and Procurement

149. Collection against demand and investment in services is good but does not meet O&M
costs. 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. Improvement in municipal services will have
impact on city financial outlay, service delivery improvement, improved health of citizens, and
less strain on the sewerage capacity. This has a significant impact on the urban poor who rely on
the public sector water supply, sewerage and solid waste improvement.
53
This Administrator remained in post until May, 2016. He was not transferred because of increasing the
tariffs. It is assumed he was promoted as a result of his dedication and good work.
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BB. Transparency and Governance

150. Transparency, or rather the lack of it, is a major development constraint not unique to
Sahiwal. In Sahiwal’s case, it impedes rational urban planning decisions, limits development
control, impacts collection of fees, limits implementation of regulations aimed at safeguarding the
urban environment and is generally a major constraint on the city’s ability to develop in a
sustainable manner. Noted examples include extensive property development without official
planning approval in line with approved plans; failures to pay development fees and other taxes
to support the city’s operations; encroachments on environmentally-sensitive lands that should
not be developed with limited power to remove, etc. In an environment where institutional
capacities are limited and the culture of adhering to rules, regulations and approval processes
not fully institutionalized it creates the situation where political agendas easily over-ride technical
advice; and other development/business ‘obstacles’ can be easily overcome by informal
payments. In short, corruption remains one of the major impediments to orderly, sustainable
urban management, and all suffer the consequences.
151. Sialkot’s top officials fully recognize this problem and are taking measures to improve the
way they respond to the needs of its citizens by involving them in decision making. Historically,
the approach adopted by city officials has been to limit consultation and decision-making to
political and business elites. This only serves to widen the gap and respect between citizens and
government. Sialkot is now working on improved IEC programs (Information, Education and
Communication) as part of its efforts to address many issues including pollution and dumping of
refuse. There are other efforts to open up communication and participation. Local NGO initiatives
are working with the TMA and introducing participatory budgeting as one example. There is an
improvement in the Complaints and Grievances procedures within the TMA’s management
system. Some attempts for improvement in the services and mapping of the systems aiming to
improve planning and management processes are also being made.
Initial Climate-Change Resilience Assessment
CC. Introduction to Climate Change

152. Climate change is no longer a distant possibility but a current reality, substantiated by
scientific documentation. Global temperatures have recorded unprecedented increases. The
length and timing of seasons are changing. The frequency and severity of floods and cyclones
accompanied by rising sea levels are increasing. In short, climate change has become one of the
most important challenges of this century for policy-makers, industry, and civil society. It is now
an overarching development parameter, which affects most sectors in all countries.
153. There are also natural variations of weather patterns within limited time periods, which
cannot be characterized as climate change, and which have always been experienced and
coped with. The ICDS concentrates on the long-term climate-change related impacts and
resilience needs, as they will affect the overall future strategic development of Sahiwal.
154. This Section must be read in conjunction with the accompanying Climate Risk
Vulnerability Report (CRVA).
DD. Climate Change Threats and Impacts for Sahiwal

155. The key objective of the Initial Resilience Assessment for Sahiwal is to identify the
particular vulnerability towards climate change impacts, which affect Sahiwal’s urban
management and built environment now and in the coming 25-30 years. This 25-30 years’
timeframe is deemed to be in accordance with the horizon for the City Development Strategy to
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be proposed by the ICDS Team and for the investments, which are expected to follow as a result
of the PICIIP.
156. Resilience building measures include policies, planning principles, design standards and
proposals for physical constructions. However, the ICDS Team will focus on measures that are
applicable to the strategic development themes including sustainable urban development forms
and enhancement of the city’s competitiveness rather than detailed technical engineering
aspects.
Natural and Climate Conditions of Sahiwal
157. The Province of Punjab is located in the north-eastern part of the Indus River plain and
the climate is semi-arid. In general Sahiwal shares the basic natural and climate conditions that
prevail in Punjab.
158. Relatively low-lying plains characterize the terrain of Punjab, with several rivers
traversing the area from northeast to southwest feeding into the Indus River. The Ravi River is
closest to Sahiwal, but at a distance of nearly 20km. It has no history of being a flood threat to
the city.
159. Figure III-28 presents climatic data for Sahiwal. The summer monsoon rainfall in Sahiwal
is concentrated to July only, when the city receives almost 2/3 of its total annual rainfall. The
hottest month in Sahiwal is June with an average temperature of 34.7C.
160. The most challenging weather phenomenon in Sahiwal are the winds called ‘Loo’, which
blow during the day in the predominately hot and dry summer, as described in the Sahiwal’s
CDIA application:
161. “The dust from the dry parched earth rises, the air becomes laden with it, and out-door
work is difficult. Trees shed their leaves to avoid the loss of moisture and where there is no
canal, or well, the countryside presents a very dreary aspect. Occasionally the hot weather is
broken by thunderstorms and dust storms. The heavy rainfall, which the thunderstorms bring,
and light rain which follows the dust storm, produce a slight decrease in temperature. This
temporary relief from the excessive heat is welcome.”
Climate Change Threats and Impacts for Sahiwal
162. The main climate change threats and impacts facing Punjab Province and Sahiwal are
higher temperatures and increasing monsoon seasonal rainfall along with increasing frequency
and intensity of extreme weather events.54.
163. A slight increase of 1.13% (± 3.95) of annual precipitation by 2080 for Northern Pakistan
is projected55 56 along with increased variability of monsoon rains and enhanced frequency of
heavy rainfall.
164. The projected temperature change will likely be more significant, increasing in the range
of 4.4 to 4.9 °C by 2080 for Northern Pakistan.
165. An analysis of data from 52 meteorological stations in Pakistan over a 40-year period
(1961-2000) shows that the frequency of occurrence of highest daily temperature and heaviest
rainfall events in 24 hours have increased in the past decades (GCISC, 2009)57.
54
CVRA Draft Inception Report: “08312015 CRVA Inception Report ver 4”
55
Green house gas
56
The scientific calculation models, which are used in projections of future climate changes, build on trend
analyses of past climate observations and take various GHG emission reduction scenarios into
consideration
57
Quote from CVRA Draft Inception Report
page 103
Figure III-28: Climatic Data for Sahiwal

Temperature
Rainfall
166. The heavy monsoon rainfall in Pakistan, which historically have caused severe urban
flooding and led to damages and failures of the urban infrastructure systems, will continue to
increase in intensity for Sahiwal as well as for other cities in Punjab. To Sahiwal’s benefit,
however, it does not have local rivers that threaten regional flooding. Sahiwal’s challenge will be
dealing with localized flooding resulting from inadequate or poorly maintained storm water
drainage. In addition, heat waves with high temperatures will also continue to increase in
intensity.
Impact of Temperature Increase
167. In general, higher temperature causes impacts on natural environments, agriculture,

forestry and fishery, which have impacts on urban economies. Higher temperature is also a
threat for Sahiwal, but not considered as leading to serious impacts for the city in general.
However, higher temperatures may increase discomfort and lead to increased energy
consumption for cooling. It also represents an added health risk, particularly for the elderly and
other vulnerable groups. Increased energy consumption will further constrain limited electricity
supply.
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168. The so-called ‘heat island’ phenomenon, which occurs during particularly hot periods in
large, densely built cities with extensive use of air-conditioning, can have serious health impacts
for the population. But these characteristics do not apply to a medium size city like Sahiwal.
Thus, higher temperature is not considered to be a main climate change impact for Sahiwal.
Impact of Increased Monsoon Seasonal Rainfall
169. As discussed above, the main physical impact on Sahiwal of increased rain and storm
events will be the challenges of handling storm water drainage to avoid road flooding and
increased health hazards from stagnating pools of accumulated water.
170. A more significant potential impact, beyond the scope of this Study, is the potential
impacts on local agricultural production. Some traditional crops may no longer be viable and new
ones may need to be introduced. This could result in significant economic impact and simply
underlines the economic resilience needed to diversify and not rely so heavily on agricultural and
related industries as the city currently does.
EE. Initial Vulnerability Assessment

Elements Being Assessed
171. Referring to the strategic development themes of sustainable urban development,

enhancement of the competitive qualities and urban consolidation, there are three types of
elements in Sahiwal, for which resilience is of key importance:
1. Existing assets
2. Future growth areas
3. Particularly exposed and vulnerable communities
172. The existing assets include infrastructure components: the road network, storm water
drainage, solid waste management facilities, water supply systems, sewerage and other
sanitation systems and power supply networks; as well as all built commercial, social,
institutional and residential facilities. An asset of perhaps even greater value is Sahiwal’s
surrounding agricultural land. These need to be protected not only from potential climate change
impacts such as increased rainfall with related salinity or erosion threats, but also protected from
urban conversion to maintain a level of economic resilience.
173. The resilience of future growth areas should be much easier to achieve than retrofitting
existing areas with awareness of climate change issues now fully integrated into City
Development Strategies including where and in what form that growth should occur.
174. Urban flooding is not historically a problem for Sahiwal as the irrigation canals running
through the city are well managed with flow controls in place. Obviously, regional level attention
must be paid to maintain these controls in the event of increased rainfall patterns. At a local level,
increased urban rainfall with poor drainage increases the threat of pollution entering the existing
tube wells and aquifers upon which Sahiwal relies. Poor urban development control has also
resulted in canal-side katchi abadi developments without adequate sanitation or solid waste
management, and increasing rain events will only exacerbate the pollution runoff from these
locations.
Micro-Climate and Temperature Management
175. As discussed above, increased temperatures will become a reality and will be felt
strongly in urban areas. Microclimates develop with the combination of hard surfaces, reflective
buildings, vehicle and building heat emissions, lack of shade and urban green. Figure III-29
clearly shows the lack of vegetation within urban Sahiwal, although it is considerably better than
Sialkot, the other city included in this study. Improving Sahiwal’s green environment will make
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major contribution to enhancing the city’s livability, and will be one recommendation of the City
Development Strategy.
Summary of Diagnostics
176. The main issues, opportunities and constraints confronting Sahiwal as it desires to
develop its future in a more sustainable and resilient manner can best be captured by analyzing
inputs received from a cross-section of residents in Sahiwal: public sector, private sector and
NGO. A dynamic, participatory Workshop held in Sahiwal during preparation of the RUA
highlighted the following issues raised by participants:
 Weak municipal (TMA) institutional capacity as the major obstacle to a well-managed,
prosperous, safe and healthy city. Nearly all other issues were related to institutional
weaknesses.
 ‘We have no planning’.
 Urban sprawl must be contained. (90 unplanned housing developments exist around the
city)
 Developments need to happen in accordance with plans and transparent approvals.
 Water and power services need to provide a 24/758 service.
 Better management of roads is required to relieve congestion.
 Industrial and domestic pollution of waterways, ground water and the general urban
environment must be eliminated. Efficient solid waste management is required.
 New, serviced Industrial Parks are needed to take advantage of new power and the
China-Pakistan Economic Corridor development.
 Sahiwal needs a clear vision to guide development of its future.
 One vision statement speaking to the desire for greater citizen participation and
government transparency: ‘People owning the city’.
Figure III-30 below captures all the comments received during the Workshop.
58
Meaning constant, uninterrupted, high quality water supply for 24 hours per day, 7 days per week. Future
references to the term 24/7 within this Report shall be understood to mean the same.
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Figure III-29: Sahiwal Vegetation Coverage
page 107
Figure III-30
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REG-8556
CHAPTER IV
Climate Risk and Vulnerability

Assessment (CRVA)
April 2016
project’s design
Urban Infrastructure Investment Program Chapter IV
and Pre-Feasibility Study of Sahiwal, Pakistan Climate Risk and Vulnerability Assessment
Introduction
1. The Punjab Intermediate Cities Improvement Investment Program (PICIIP) is an initiative
of the Asian Development Bank (ADB), which aims at improving the quality of life of the residents
via improved quality of urban services available to the residents of selected cities of Punjab (city
populations between 250,000 and 1,000,000) in Pakistan. One important component of PICIIP is
the urban infrastructure development. The objective of CRVA is to carry out climate change
impact assessment to serve the broad PICIIP objectives. This Report summarizes the CRVA
findings for the city of Sahiwal. The Sahiwal urban population is expected to double by the mid of
this century. The lag-behind urban infrastructure and weak capacity in integrated urban planning
and poor response mechanisms have made Sahiwal a high risk to future enhanced climate
hazards. Climate change will likely exacerbate the climate risks. The public infrastructure system
is the foundation for a city’s socio-economic activities. However, climate risks threaten the normal
operation, or even cause substantial damage to the infrastructure system, particularly for
systems that have already been outdated or poorly maintained. One of the primary objectives of
the PICIIP is the design and construction of a climate change resilient infrastructure. The
purpose of the CRVA assignment is characterizing and quantifying the projected impacts and
associated risks from climate change on Punjab’s intermediate cities and on important urban
service delivery sectors, in order to assist the efforts of PICIIP in promoting climate resilience of
its investment projects.
2. A top-down approach was adopted in the impact assessment. Based on the IPCC AR5
GCM outputs and historical observation, quantitative climate scenario projections and their
associated uncertainty for the key climate variables were generated. From such quantitative and
other relevant information, it is possible to identify adaptation options that could enhance the
resilience of the climate sensitive project components of PICIIP at design and construction. This
study conducted a sector-by-sector assessment of climate change impact on city energy system,
water resource, solid waste management, human health and transport system. Several
adaptation options are discussed based on the impact assessment and other relevant
information. A cursory Cost-Benefit Analysis (CBA) of the flood protection was carried out. It was
found that the adaptation together with upgrading the outdated flood protection system would
bring in substantial net benefits to Sahiwal by reducing the flood damage. Cost-benefit analysis
could be applied to evaluate other adaptations when supporting data is available.
Background
3. Sahiwal is a city in central Punjab. It location is 30°39'52.16"N in latitude and
73°6”30.54"E in longitude. The estimated 2015 population is about 375,000, and is the 22nd
largest city in Pakistan. The city features an arid climate with hot summers and cold winters. The
annual average rainfall is around 200 mm. In general, climate related disasters are rare in
Sahiwal. Sahiwal town is situated at a distance of about 29 Km from the left bank of the Ravi
River. The Lower Bari Doab Canal separates the town into two parts.
4. The city is in the densely populated region between the Sutlej and Ravi rivers.
Agriculture is important to the local economy, particularly the growing of cotton, grain, potato,
wheat and rice exported all over Pakistan and around the world. The region is also famous for
animal husbandry of cattle and sheep farming, and water buffalo milk. Hence Agro-based
Industries is the most important industry for Sahiwal, which include beverage & food processing,
fertilizer manufacture, cotton ginning & pressing, textile weaving/spinning, and others.
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5. Ground water is the sole source of potable water exploited in Sahiwal. The water table
average is about 40-50 feet (9 – 15 meters) below the ground level and the upper level produces
limited quantities of mineralized water. At depths of 130-150 m (450-500 feet), greater quantities
of good quality ground water are available and this is where the city‘s supplies are derived.
6. The wastewater is generally disposed of into the nearby water bodies via sewer system,
which are not only polluting the environment but also causing many water borne diseases. The
existing system covered 90% of the area of Sahiwal, through about a 40 km long sewerage
network. The residential area is rapidly expanding to the north side of the town as well as slowly
to the east side, which has led to a proportional reduction of over-all facility coverage of
approximately 20-30%.
7. South Sahiwal lacks sewerage infrastructure, hence, raising various socio-economic

issues. There are no separate storm water drains in the city, which results in excessive pressure
on its sewerage system in the rainy season. The sewerage lines burst frequently due to
insufficient capacity. South Sahiwal is planned without adequate sewerage infrastructure. The
current solid waste generation of Tehsil Sahiwal is about 140 tons/day or 51,150 tons/year (PFS
Inception Report, 2015(b)). Due to its population growth and increase in its economic activity,
Tehsil Sahiwal’s solid waste generation is expected to accelerate to about 166 tons per day
(60,601 tons/year) by 2020 and about 233 tons per day (85,061 tons/year) by 2030 (PFS
Inception Report, 2015(b)). This is a massive amount of municipal waste for Sahiwal. In the
future, this may prove catastrophic, unless a plan is devised and implemented at the earliest to
address this uncollected waste.
8. Sahiwal’s challenge is the lack of integrated planning, capacity and funding to improve its
dilapidated urban infrastructure. For example, the city lacks a sewerage disposal system.
Methodology
9. The construction of a climate change scenario involves the development of the baseline
climate condition and future climate projections. Such a projection is subject to considerable
uncertainty. The impact adaptation criteria by which decisions are assessed must take careful
account of the degree of uncertainty, long time horizons and a range of possible outcomes. One
important aspect in CRVA is to comprehend such an uncertainty range in decision-making and
policy planning processes. A combination of different Representative Concentration Pathways
(RCPs) and climate sensitivities could be used to characterize a future climate change scenario
as well as associated uncertainty range (Table IV-1). To account for the uncertainty of the
difference between GCM simulations for given regions or locations, a pattern scaling method was
adopted and applied.
Table IV-1: Three climate projections and their input conditions represent
the uncertainty ranges
Climate projection Representative Concentration Pathways Climate sensitivity
Mid scenario RCP6.0 Mid
Low scenario RCP4.5 Low
High scenario RCP8.5 High
10. Site-specific climate change scenarios with finer temporal scale are required for impact
assessment at city scale. The site-specific temperature change scenario was constructed by
perturbing the station observed daily data using the normalized GCM monthly pattern value for
the GCM grid where the climate station is located. Pattern scaling, together with the general
extreme value (GEV) distribution function, was also used for scenario generation for site specific
extreme rainfall analysis.
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11. For a target project component, it is also quite possible that a range of adaptation options
could be identified. Though the effects of engineering based adaptation options could be easily
accounted, it is generally difficult to quantify the effects of non-engineering ‘soft’ adaptation
options, particularly when they are combined with other adaptation options.
12. An economic evaluation is required to prioritize adaptation options. Economic

justifications must be an integral part of urban development plans, evaluations and decisions for
the implementation of structural and non-structural measures. All adaptation options except a few
require continuous actions such as maintenance and repair of engineering structures. The key to
the sustainability of adaptation, is hence relying on the continuous buy-in of its stakeholders. It is
then important that the cost and benefit of the adaptation results are equally shared. Therefore,
an economic evaluation is firstly needed to ensure that a planned adaptation option reaches the
intended beneficiaries. Secondly the economic evaluation determines economic feasibilities,
which in turn provides the basis for efficiently distributing costs and benefits to different users and
project purposes.
13. The cost-benefit analysis (CBA) is an effective tool for organizing the pros and cons of
any planning project, especially for long-term capital-intensive urban development projects. The
CBA, if properly conducted, will identify the winners and losers from a public project because it
includes estimates of social and environmental gains and losses.
Climate Change Scenarios

14. Temperature and precipitation are the two key climate variables for CRVA. Sahiwal will
expect an annual mean rainfall increase of 3.1% by 2050 with uncertainty range of 2.4 to 7.0%;
the annual average mean temperature is likely to increase by 0.8C with uncertainty range of 0.6
to 1.8C. In terms of temporal pattern change inside a year, the temperature increase is likely to
be consistent and unified. In contrast, the rainfall increase for the wet months of July and August
is much more pronounced than the increase in the rest of the months. Some dry months are
projected to have decreased rainfall, including January, April and December for Sahiwal. This
indicates an enhanced flood risk during the monsoon on the one hand and an increased drought
risk on the other.
Climate Change and City Development

15. The climate change impact assessment was conducted, sector by sector (that are
relevant to PICIIP), i.e., energy, water, solid waste, transport and human health. Although the
assessment was carried out for each sector separately, it should be noted that impact
consequences often occur across sectors. For example, a flood not only causes damage to
housing and transport systems, but also is related to human health issues through the link with
vector and water borne diseases. Thus climate change impacts on one sector will most likely
have cross sector consequences. Therefore, any adaptation measure will lead to shared benefits
by multiple sectors.
A. Climate Change and City Energy Systems

16. Climate change can impact on both energy supply and demand. Without considering
climate change, the electricity demand will increase ca. 50% for Sahiwal by 2035. The climate
change requires a further demand increase by 0.7 to 2.0% (Table IV-2). With regards to energy
supply, climate change will impact on hydroelectricity generation through its influence on the river
discharge. It was reported that a 1% reduction in stream flow could reduce electricity output by
roughly 3% (Laghari, 2013). Generation rates will be high in the spring but lower in the summer,
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when energy is most needed for cooling. Furthermore, careful attention should be paid to the
impact of hydropower sites to the regional environment and ecosystems.
17. Intermittent power cut is common in Sahiwal. The lack of access to adequate, reliable
energy services precludes the social welfare and economic growth, and seriously affects the
cities’ economy. Hence, in future energy supply planning, the climate change impact on
electricity demand needs to be considered carefully to avoid further power insufficiency.
Table IV-2: Baseline and projected temperature and electricity demand change.
2035 scenario
City Variable Baseline Without climate With climate change
changeLow Mid High
Annual maximum
32.01 32.01 32.76 33.07 33.97
temperature (C)
Sahiwal
Annual electricity
165.2 247.7 249.5 250.3 252.5
demand (GWh)*
*estimated based on annual consumption of 450 kWh/year per capita.
B. Climate change and water

18. Climate change is altering the regional hydrological cycle and therefore having a
profound impact on water scarcity and floods in Pakistan. This will bring additional challenges in
the current already complex water resources management task. The current water demand is 10
Millions of Gallons per Day (MGD) (37,854 m3/day) for Sahiwal. Population growth will dominate
the future water demand. However, the economic development and temperature increase have
additional effects on water demand. Table IV-3 lists the results of water demand change of
Sahiwal considering both the population size and the temperature changes. By 2035 the
population growth will lead to water demand increase by 48% without considering the climate
change. Further 5 to 13% more water may be needed by 2035 due to the temperature increase
(mid-range projection is about a further 9% increase from the baseline).
Table IV-3: Water demand of Sahiwal: present and future projection

Consumption rate
2015 demand 2035 demand projection
(m3/day/person)
Demand with
Popu- Demand
climate
Popu Water lation without
City 2035 projection change
Base -lation demand projec climate
3 (x1000
-line (x100 (x1000m /d t-tion change
3 m3/day)
0) ay) (x100 (x1000m /d
0) ay) Lo Mi Hig
Low Mid High
w d h
Sahi 0.09 0.09 0.10 373 52
0.095 35 552 54 55 56
wal 8 9 2
19. Two factors affect water supply: the available water resources and the supply systems. In
terms of water resources, groundwater is the only source of portable water in Sahiwal City. The
groundwater level at Sahiwal is about 12 to 15 m depth from ground (GHK, 2010). The water
supply system consists of 12 overhead reservoirs (OHRs) with total capacity 18,170 m 3 (480,000
gallons), but 4 OHRs are non-functional so the current available capacity is 12,113 m3 (320,000
gallons). The groundwater is directly pumped into the system. Sahiwal’s existing water
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production is 0.095 m3/day/person or 25 gpcd, which is less than that for most other cities in
Pakistan.
20. The Ravi River, Lower Bari Doab, rainfall and various water bodies are the sources of
groundwater recharge. The Ravi River is a trans-boundary river of India and Pakistan. It is an
integral part of the Indus River Basin and located at the headwaters of the Indus basin. In
addition to rainfall, snow and glacial melt is also a major contributor to the Ravi River discharge.
Climate change will affect the Ravi River discharge through its impact on the glaciers. An
important factor that affects the Ravi River discharge comes from the human intervention to the
river system. The hydraulic projects on the India part such as the Thein Dam in the upstream of
Madhopur head have dramatically altered the natural flow down-streams, which have severely
affected the groundwater recharge. Recharge from rainfall varies from 10 to 24% of the total
annual rainfall. Climate change impact will lead to rainfall increase, but it is unknown if this
increase will benefit the groundwater recharge. Given the main recharge source being dried out,
analysis of groundwater observation indicates that overall groundwater level has been dropping
at on average of 0.36 m/year from 1987 to 2008 (Figure IV-4). Considering the climate change
impact on the Ravi River discharge, it is expected that the groundwater resource will further
deteriorate. Without proactive adaptation measures and proper water resource management,
Sahiwal will be threatened by consistent water resource shortage for the next half of this century,
particularly during any prolonged droughts in the area.
21. In terms of infrastructure in water supply, there is a supply surplus at present in water
production of 11.5 MGD (43,532 m3/day) for Sahiwal. However, a gap starts to emerge by 2035
(Table IV-5). The gap will further increase in the long term when population keeps growing and
climate change impact effects become even more pronounced.
22. Climate change will likely impact on urban water consumption from both the demand and
supply. Thus adaptation options should be identified for both demand and supply sides as well.
The rate of increase in domestic per capita water use could be reduced by continuing
improvements in the efficiency of water use. In addition, the water use legislation and tax
systems are important in the water demand control. On the supply side, to meet the future water
demand, careful water supply infrastructure planning and management is required to maintain a
safe urban water supply.
Figure IV-4: Observed groundwater depth of Sahiwal
Source: CRVA Hydrologist Report
23. However, further investment becomes inevitable in the long term, in order to overcome
the larger demand/supply gaps. The new infrastructure projects development provides the best
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opportunity to take into account the climate change impact and adaptation assessment to build in
water conservation. Given the threat of depletion of the groundwater under climate change
impact, alternative water resources need to be exploited such as the introduction of rainwater
harvesting and water reuse. Efforts should also be made to maintain the groundwater levels.
Artificial recharge has been experimented. A hydraulic project is under planning to diverse water
from other rivers to the Ravi River, which will help the groundwater recharge at Sahiwal.
24. With the current socio-economic setting untouched, it will be very hard for groundwater to
restore to a sustainable level. For example, the Agriculture sector uses the largest amount of
groundwater. It is estimated that 1.5 billion m3 is withdrawn annually from the aquifer purely for
agriculture production. Thus great effort should also be made to improve water use efficiency in
agriculture production. International tested advanced water saving technologies should be
studied and introduced for crop production.
Table IV-5: Gap between water demand and supply: baseline and projection
Current 2035 scenario

Water Without
City Baseline
Production climate Low Mid High
(m3/day) change
Rate
0.095 0.095 0.107 0.114 0.124
Sahiwal 43532 (m3/day/person)
Gap (m3/day) -7570 7570 15520 19684 24984
**Negative values denote surpluses.
C. Climate change and flood

25. Flooding is not a serious problem for Sahiwal. Urban flooding happens occasionally due
to insufficient storm drain capacity under an extreme rainfall event. Climate change will impact
the intensity of rainfall, hence enhancing the urban flood risk. No climate data was available for
Sahiwal, so its storm capacity was evaluated using the average rainfall data from Lahore and
Multan. The estimated baseline 5-year ARI maximum hourly rainfall (18.56 mm) produces
5,655,405 m3/day (1494 MGD) of storm water. The present absorption capacity of the drain
system is 431,537 m3/day (114 MGD). Such an event would cause 0.3-meter deep flood water
level inside the city for certain periods until water recedes at downstream points. On average
climate change will enhance the storm intensity by about 14% (range from 10% to 25%) by 2050;
and by 22% (range from 14% to 49%) by 2100. Even though serious flood rarely takes place in
Sahiwal, the short-period urban water ponding may become a serious issue for Sahiwal.
D. Climate change and wastewater

26. Sahiwal has a combined wastewater and storm water drain system. The current capacity
of wastewater/storm is approximately 114 MGD, which is well above the current wastewater
generated estimated at around 13 MGD.
27. On general, the wastewater drain system has sufficient capacity. The biggest issue is the
lack of treatment and overloading during flood events. The possible climate change impact on
wastewater management is, therefore, from its impact on flood. The impact on flood has been
discussed in detail in the previous section. The recommendation for the wastewater management
is generally on options that are not directly linked with climate.
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Adaptation
28. As aforementioned, the wastewater issue is related to flood, so climate change

adaptation options on flood prevention will also benefit the wastewater management for both
cities. In addition, other adaptation options should be also considered. At first, Sahiwal should
provide a sewer system for unserved areas including peri-urban and slums. Non-functional
sewers should be replaced. Future socio-economic development and climate change impact
should be considered in the new system project design or the replacement project. Further
wastewater treatment plants (WWTP) are highly recommended. Furthermore, the government’s
wastewater discharge legislation and policy must be effectively implemented, with support of
regular monitoring scheme.
E. Climate change and solid waste management

29. Climate change impact on solid waste management is mainly reflected in the flood
impact on the disposal location selection and disposal plant design. Flood prone areas, either
present or under future climate conditions, should be avoided. The solid waste disposal location
should be prevented from flood. The flood protection must be established according to the
suitable facility standard, though currently there is no clear regulation of constructing flood
protection in solid waste disposal in Pakistan. As a reference, the solid waste disposal regulation
in China is that it must be prevented from 50 year ARI flood, and in design the volume of the
leachate pond, the maximum 7 day 2050 projected rainfall should be used to verify the
sufficiency of the pond capacity, in order to avoid storm caused overloading.
F. Climate change and urban transportation

30. Transport systems are the lifeline for a city’s socio-economic activities. The quality of
transportation planning and management is critical for the functioning of a city, and thus issues of
urban climate change adaptation and mitigation require attention. Within the Pakistan
intermediate cities, transport is mainly referred to land based road systems, so the climate
change impact assessment is focused on the road systems in cities. In Punjab, the impact of
climate change on transport is primarily from temperature and rainfall related change. High
temperature places stress on road infrastructure, softens the asphalt causing traffic rutting and
potentially resulting in pavement cracking. Extreme heat can also stress the steel in bridges
through thermal expansion and movement of bridge joints. In comparison to temperature, the
rainfall related water damage is generally more severe and difficult to manage. The intensified
and more frequent floods can damage the subgrade or even completely wash away a road
section; overload drainage systems resulting in flooding on roads, causing more wear and tear of
the road infrastructure.
31. The climate change information needs to be related to road infrastructures that are
sensitive to the climate, to support the vulnerability assessment and adaptation options selection.
In this context the target climate variables that affect sensitive infrastructure components include:
 Change in maximum temperature;
 Change in the heavy rainfall intensity which will affect the drainage design; and
 The change of 100 year ARI flood water level and 50 year ARI flood height, which are the
criterion generally applied for key transport infrastructure design such as big bridges.
32. Extreme heat places stress on road infrastructures, softens the asphalt causing traffic
rutting and potentially resulting in pavement cracking. The pavement temperature has a linear
relationship with the air temperature, so the increase in air temperature will lead to increase of
pavement temperature. The potential increase of heat wave risk in future is significant.
Furthermore, transport system needs to be equipped with sufficient drain capacity for flood water.
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G. Climate change and human health

33. Heat waves are a continuous stretch of persisting temperature above certain threshold
for a specified time period. In the recent past, heat waves have been associated with high
morbidity and mortality in the world. In June 2015, a heat wave swept Sindh Province and
Karachi City. It caused a heat stroke for more than 65,000 people, and an estimated death toll of
1300. The poorest and elderly residents were affected disproportionally by the heat wave, with
many having to work outside or have poor health and unable to access cool environments. Heat
wave is related to temperature and humidity. Sahiwal may expect more frequent and intensified
heat wave in the future.
34. The second climate related health threat are vector borne diseases. Mosquito-borne
diseases are rapidly spreading during the last decade, threatening thousands of people due to
prevailing peculiar socio-economic conditions and epidemiological situation in Pakistan (Jahan et
al., 2010). Climate change impact on dengue fever is mainly reflected on vector habitat condition
changes. Dengue is transmitted by several species of mosquito within the genus Aedes (Ae.).
The influence of temperature on the vectors can be described by four temperature criteria: the
lower and upper temperature tolerance (T min and T max) and lower and upper optimum
temperature (T opt low and T opt high). Certain heat accumulation is needed during warm
months in a year for the vectors to complete each stage of the reproductive cycle. Rainfall
provides water for breeding sites as well as required humidity, hence plays an essential role in
the lifecycle of mosquito species. The dengue fever may not be a high risk to Sahiwal due to its
dry climate, even in the second half of this century, because the low humidity will still not be
suitable for mosquitoes to survive and breed.
35. Another human health risk to Punjab cities is the water-borne disease. Water pollution
has become a very serious problem in Pakistan because of the rapid growth in population and
the growth of the industrial sector. Water is unsafe for human consumption due to both bacterial
and chemical contamination. The most common sources of water contamination are a result of
human activity such as discharges from factories, leaky and rusty underground water pipelines,
storage tanks, cross-connections between the leaking water supply lines and sewerage drainage
pipelines (Haydar and Qasim, 2013), improperly treated sewage disposal, agricultural chemicals
and pesticides trickling and seeping in to underground water aquifers. Climate change impact on
water-borne diseases is highly related to water supply and wastewater management, which are
discussed previously.
36. Climate change impact on human health is a typical crosscutting issue hence requires an
integrated solution. Besides human behavior change, to be able to access cool environment and
sufficient clean water is the key to alleviate heat wave effects, which are related to energy and
water issues.
Economic Evaluation of Adaptation Option

37. Adaptation is costly, and could be expensive sometimes for those engineering based
‘hard’ options. Hence the implementation of an adaptation option must be economically justified.
However, conducting an economic evaluation of adaptation options is often difficult because of
the uncertainty in future climate change and the lack of data to support such an exercise.
38. A major decision-supporting tool commonly used for economic evaluation of projects is
cost-benefit analysis (CBA). CBA is used to organize, appraise and present the economic costs
and benefits, and inherent tradeoffs of projects taken by public sector authorities like local,
regional and central governments and international donor institutions to increase public welfare
(Kopp 1997). In a standard economic project appraisal, benefits and costs are discounted over
time in the calculation of the net present value (NPV), benefit/cost (B/C) ratio or internal rate of
return (IRR). One important issue is the selection of the discount rate, for which values of 0-20%
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exist in literature and often 12% is used in project practice, following the ADB guideline. Another
issue is the selection of the lifetime of a project: the longer a project can be assumed to be in
existence, the higher the benefits will be, assuming that the project is still delivering benefits; and
assuming that costs of its maintenance and replacement do not overtake benefits.
39. Proactive adaptation usually can bring in substantial positive returns in terms of the
reduction of potential adverse disaster impacts, given it is properly planned and implemented.
Monetary measurement, which is at the heart of CBA, is easier for projects with ‘hard’ data (e.g.,
the value of avoidance of loss of physical structures) compared to less tangible benefits such as
enhancement of human health, gain in productivity, and a perceived increase in the feeling of
safety due to emergency plans. In order to do a more comprehensive economic evaluation, some
of the following data have to be collected:
 more meteorological and hydrological data for historical flood events;
 more comprehensive data of the damage information, including private sectors and
indirect damage cost, etc.;
 more information of social effects, such as loss of life and increase in diseases after
flood;
 data of the cost of engineering project for flood protection.
40. As discussed by Mechler (2005), there are several limitations to CBA. At first it is difficult
to account for nonmarket values. Secondly it is the lack of accounting for the distribution of
benefits and costs in CBA. Thirdly there is the question of discounting benefits and costs.
Applying high discount rates expresses a strong preference for the present while potentially
shifting large burdens to future generations. It is then recommended that the CBA and economic
efficiency considerations should not be the sole criterion for evaluating projects or policies, but
rather be part of a larger decision-making framework also respecting social, environmental,
cultural and other considerations. It is then recommended, if necessary, to include uncertainty in
parameter estimates into the analysis. Furthermore, we assume a linear relationship
associatively between the broad city-wide damage estimation and the flood intensity in the CBA.
This assumption may only hold for some simple flood protection systems but modern flood
protection infrastructure is rather complex and the damage function may very likely be nonlinear.
Detailed damage and its associated flood information is required to build a more accurate
damage – flood relationship for economic analysis. Nevertheless, CBA is a useful tool, which has
its main strength that it is an explicit and rigorous accounting framework for systematic cost-
efficiency decision-making (Mechler, 2005).
41. Besides ‘hard’ engineering based adaptation measures, it is envisaged that the method
can be applied to ‘soft’ ones such as implementing capacity building and flood early warning
systems, given the monetary values can be reasonably assigned to the non-tangible and indirect
impact effects, as well as the benefit obtained.
Conclusion
42. Efforts have been made through this CRVA to provide knowledge and methods for
effective mitigation and, more importantly, adaptation decision-making. The report was
organized in a sector-by sector approach with qualitative and quantitative climate change
information that is likely to be of practical benefit for city planners.
43. For Sahiwal, climate change will lead to increase in energy demand and potentially
increase GHG pollution if a shortsighted solution was sought. The water sector will be heavily
impacted by climate change with increased water demand due to temperature increases but
decreased groundwater resource to the supply, due to the effects of the shrink of the glacier to
the river discharge; increased urban flood risk put urban housing and other city infrastructure and
agriculture sector under threat. Cities are subject to unique health risks since larger populations
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and higher population density amplify the potential for negative outcomes. Climate change is
likely to exacerbate existing heat wave, water-borne disease health risks in Sahiwal.
44. One specific reason that the intermediate cities of Punjab are most vulnerable to climate
change impact is resulted from their lag-behind, inadequately planned and poorly maintained
urban infrastructures. The insufficient storm drain in both cities, non-functional portable water
storages, leakage in water supply systems, non-existence of wastewater and solid waste
treatment etc. has all contributed to the vulnerability of the city to climate change impact. Given
the financial constraints and other social limitations, effective and efficient adaptation is the only
way for the cities to accomplish a sustainable and prosperous future development. Adaptation in
new infrastructure development is relatively easy and straightforward: an embankment project
could use the 2050 flood information to determine the design flood discharge and water height; a
new road development could rely on 2100 flood projection for bridge height design and 2050
temperature in selection of the proper heat-resistant asphalt, which are just a few examples.
However, adaptation on existing urban infrastructure is more difficult. It perhaps can be best
achieved through stages by rehabilitation of present infrastructure at first, but keep the
designation of other remedial measures for future when and where the condition becomes
possible. The key of this process is that the rehabilitation and future design should be performed
in a manner that integrates adaptive responses to climate change with sustainable environmental
stewardship and minimization of the adverse effects of urbanization.
45. Adaptation is also a cross-cutting issue which requires joint efforts from governments at
various levels and dialogue between different sectors. For example, the solution of the future city
water crisis may come from the reform in agriculture sector. Agriculture is the biggest
groundwater consumer in Sahiwal. Climate change impact and indiscriminate pumping for
agriculture in the area may drop water levels to unsustainable level. Any improvement in water
use efficiency in agriculture may dramatically improve the water safety in city. Putting restrictions
on agriculture irrigation will not only help the groundwater resource conservation, but also
increase the water use efficiency as a whole for the local community, because the water use
productivity is usually higher in other sectors than agriculture. However, a careful designed
compensation mechanism must be in place to ensure the equal sharing of the cost as well as
benefit for such an adaptation implementation.
46. Cities are also generally the biggest GHG emitters, hence is also responsible for cutting
back GHG to mitigate climate change. Because of a city’s natural setting, its urban form and built
environments are relatively static factors, but they are subject to future modification through
urban planning and management. It is in this planning and management, new concept and
advanced technologies should be taken on board. Future cities should thrive on low-carbon
society and low-carbon communities with green construction materials, easy access public
transport system, renewable energy and sustainable ecosystems. Cities under PICIIP have the
good opportunity not only being able to access necessary funds for long-awaited urban
infrastructure improvement, but also to readjust the ways of city’s life so that economic
development and sustainable management can be combined.
47. This report is based on the best available information and research results up to this
writing. However, climate change impact, being a multi-sectoral and multi-faceted issue, requires
in-depth data/information on different meteorological, scientific, social and institutional aspects.
There is limited scientific data and information available with regards to precipitation, temperature
and other associated aspects including river flows, economic damages etc. More efforts should
be made to collect and analyze the relevant data to support CRVA and subsequently the
sustainable city development for the PICIIP cities in the future.
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REG-8556
CHAPTER V
Integrated City Development Strategy

(ICDS)
April 2016
project’s design
Urban Infrastructure Investment Program Chapter V
and Pre-Feasibility Study of Sahiwal, Pakistan Integrated City Development Strategy
Introduction
1. The Governments of Pakistan and Punjab recognize the importance of well-developed
urban centers for the future social and economic health of the nation. A number of forward-
looking policies are in place guiding urban growth, and the GoPb must now put those into
practice. Intermediate cities are considered to be of particular importance. The introduction of an
Integrated City Development Strategy (ICDS) approach as a framework for urban planning,
implementation and management is a first step. GoPb, through the Department of Planning and
Development and the Urban Unit is preparing the first two of these for the cities of Sialkot and
Sahiwal. Furthermore, GoPb recognizes the need to incorporate measures to strengthen climate
change resilience into all aspects of urban development, and is preparing a parallel Climate Risk
and Vulnerability Assessment (CRVA). Both the ICDS and CRVA provide integrated guidance to
an initial series of proposed infrastructure investments in the two cities supported by a Pre-
Feasibility Study (PFS). This City Development Concepts and Strategies for Sahiwal is the
third phase of the ICDS and was finalized during January 2016 following completion of the
Inception Report, Rapid Urban Assessment (RUA) and Draft ICDS Report.
2. Punjab’s background urban situation is outlined in Chapters I and II along with the
overall goals and objectives of the Program.
Objectives of an Integrated City Development Strategy

(ICDS)
3. An Integrated City Development Strategy (ICDS) provides the short, medium and long-
term umbrella frameworks for social, economic and climate-resilient city development, while
promoting the concept of cities that are competitive, green, inclusive and livable. More
specifically, the ICDS, through a participatory process, begins with the city’s ‘vision’ and
establishes the integrated, strategic framework, prioritized actions and investments, both hard
and soft, required to achieve that vision.
Policy Context
4. The City Development Concepts and Strategies are prepared within the context of a
number of higher-level Government policies and guided by ADB and CDIA development policies
as presented in Chapter I and Chapter II.
Approach and Methodology - City Development Concepts

and Strategies
5. Preparation of the City Development Concepts and Strategies continued to build on the
participatory stakeholder process initiated during the Inception and RUA stages with additional
participation sessions held with residents, TMA and Cantonment officials. Inputs were sought
from a wide range of interest groups, field work was continued, and more examples of global
best practices woven in with appropriate adaptations for the Punjab context.
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Urban Development Principles & Concepts

6. This Chapter presents a series of urban best practices and principles applicable to all
cities in Punjab and Pakistan. Then at a more specific level, it presents a series of Sector
Development Strategies applicable to both Sahiwal and Sialkot. These are the ‘building blocks’
for preparation of the overall City Development Strategies. The Sector Development Strategies
are designed to be applicable to upgrading the existing city, incorporating and formalizing
surrounding peri-urban areas, and planning new expansion areas.
A. Urban Development Best Practices & Principles

7. Preparation of this Urban Development Strategy is guided by a series of Global Best
Practices, internationally applied Urban Development Principles, a series of typical urban
development processes and appropriate development concepts for the Punjab context.
8. A number of guiding ‘Best Practices’ are currently accepted world-wide as fundamental

to successful and resilient urban development. These apply equally to the urban centers of
Punjab as they strive to achieve their Visions of healthy, competitive, inclusive, livable and
resilient. Figure V-1 illustrates some components of a successful city.
Figure V-1: Successful Cities
Source: HABICO
9. Application of the following Guiding Principles will further ensure that Punjab’s cities
achieve their vision. These may also serve as monitoring and evaluation references to check that
individual planning and development proposals are supportive of individual city’s goals.
 Cities must be ‘inclusive’ making appropriate provision for all socio-economic
groups.
 Plan preparation must be consultative and participatory involving a full range of
stakeholders.
 Plan preparation must integrate planning and development needs across all
levels of government, civil society and the private sector.
 Plan preparation must integrate all sectors: social, cultural, economic,
environmental, institutional, financial and physical (land, infrastructure, building).
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 Planning proposals must be locally appropriate, acceptable, implementable

and affordable.
 Planning proposals must recognize the needs of the full spectrum of socio-
economic groups.
10. Planning proposals must provide for the needs of the full range of both formal and
informal economic sectors.
 Planning proposals must encompass consideration of environment, gender,
sustainability and resilience.
 There must be a balance between development and nature to protect the health
of all.
 There must be a balance between heritage and development;
 Development must provide convenient access for all to a full range of economic
opportunities and social amenities;
 Planning proposals must recognize that a city needs a ‘heart and soul’ in
addition to roads, pipes and buildings.
 Planning proposals should build on the good to take full advantage of existing
strengths.
 Maximum use should be made of existing (or rehabilitated) infrastructure in
existing built-up areas before new land is developed. i.e. urban sprawl should be
minimized;
 Development must be strictly managed in all parts of the Plan Area to eliminate
inefficient land use, destructive invasion and ad hoc expansion;
 Elements of a city must be integrated so that the goals of one sector support the
goals of another.
11. Another set of Principles to be considered that focus more specifically on sustainable and
resilient urban development include: 59
 Sustainability (Resilience): committing to environmental management;
 Accessibility: facilitating ease of movement;
 Diversity: maintaining variety and choice for all;
 Open Space: maintaining natural systems to make cities green;
 Compatibility: maintaining harmony and balance;
 Incentives: to renew and redevelop declining areas;
 Adaptability: able to accommodate change;
 Density: design compact cities with appropriate transit;
 Identity: create and preserve a unique sense of space.
B. Sustainability and Resilience

12. Pakistan and Punjab are particularly concerned with developing strongly resilient cities to
address both climate change and economic impacts. This is also one of three main points of
ADB’s Urban Operational Plan 2012-2020. One set of resilience/sustainability goals applying not
only to cities, but nations as a whole is illustrated in Figure V-2.60
13. The UN describes 4 Pillars of Sustainable Cities61 (Figure V-3), all of which have direct
application to future of Sahiwal and Sialkot and the Development Strategies prepared to support
them.
59
"City Building", Kriken, John Lund, 2010
60
Urban Gateway
61
UN/DESA, Development Policy and Analysis Division
page 125
Figure V-2: Sustainable Development Goals
Figure V-3: UN Pillars of Sustainable Cities
C. Urban Development Form & Processes

14. All urbanizing areas grow in two fundamental ways: densification and expansion.
Sustainable cities grow through a managed combination. Within these two broad categories are
a number of more specific development processes influencing growth and the form of the city.
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The following describes examples of common development processes that will be found in
various combinations and proportions in all Growth Strategies. Figure V-4.
Figure V-4: Urban Growth Processes
The Drivers
15. Urban areas grow as a result of social and economic demands driven by private sector
interests, formal and informal, and desirably with public sector support. The benefits of close
proximity and collective synergies are what allow cities to exist and thrive. Trying to keep a
balance between public and private initiatives is the underlying key to efficient, sustainable urban
management, and will clearly be seen as an underlying theme throughout this document.
Upgrading and Rehabilitation
16. One of the key principles of sustainable urban economics is to make maximum use of
existing investments in infrastructure and serviced lands. This mandates that already serviced
properties be put to best use in order to justify the costs of infrastructure and create the capacity
to pay property taxes and service fees to maintain infrastructure - assuming the required
municipal management practices are in place. Large portions of built up and previously well-
serviced areas in both of the Project's urban centers have been allowed to decline through failure
to adequately invest in infrastructure management and maintenance, or development controls.
Along with service decline comes a decline in the quality of development on the adjacent
properties with accompanying challenges to the overall health, safety and economic well-being of
residents.
17. In general, upgrading and rehabilitation is the most cost-effective way of improving urban
social, economic, physical and environmental conditions. However, for many under-resourced
local and provincial government agencies, and for many funding agencies, rehabilitation is
considered too complex to coordinate and not politically attractive enough to be a priority. New,
easier, more visible, but typically more expensive ‘green field’ developments are chosen instead.
Redevelopment and Regeneration
18. Redevelopment may apply to individual property improvements, i.e. buildings, or to whole
sections of a city including infrastructure, public spaces and buildings. In many situations
throughout the Project's urban centers poorly constructed, dilapidated, under-utilized, incomplete
or abandoned structures occupy otherwise well-serviced and potentially productive sites. These
structures represent poor use of infrastructure investments, may be health or safety hazards,
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reduce the vitality of a community and are generally an impediment to efficient and sustainable
urban growth. There are numerous reasons for the abundant number of these structures
including limited owner resources, limited access to development finance, weak land
management and development control, and lack of property tax motivation. However, putting in
place mechanisms to encourage the redevelopment of underutilized sites either for their original
purpose or something more appropriate in current conditions is essential to affordable and
sustainable urban development. The more holistic regeneration of sections of the city will
enhance city revenue potential and improve residents’ quality of life.
Infill
19. Returning to the fundamental principle that economically efficient urban development
must make maximum use of existing infrastructure investments, it is imperative that serviced
urban lands be put to the most appropriate productive use. Many sites sit vacant in all parts of all
the Project's urban centers. The reasons again are varied and include traditional cultural values,
but the absence of a free, fully functioning land market and measures to encourage
development, such as effective property tax, make it both difficult and not worthwhile to either
develop or sell undeveloped lands.
20. Urban areas cannot afford to support empty land while forcing new developments to
spread outwards with the associated infrastructure costs, inconvenience and environmental
impacts. An overview look at both Sahiwal and Sialkot (without detailed calculation) suggest
that much of projected urban population growth in the two over the next 15-20 years could quite
easily be accommodated within the current built-up boundaries if vacant or underdeveloped
lands were fully utilized.
Densification and FAR
21. Densification simply refers to maximizing the use of existing land and infrastructure by
increasing the resident or working population in a given area. This inevitably means more
building and vertical building, and is tied to the infill, redevelopment and regeneration methods
discussed above. The economics of densification are based on making the best and maximum
use of a given piece of land and its supporting infrastructure. Densification is controlled at a
planning level through allowable Floor Area Ratios (FAR), which also limits building heights. A
FAR of 1.0 on a site of 1,000m2 allows construction of a total floor area of 1,000m2, which may
be divided over a number of stories depending on height restrictions. Allowable FAR obviously
affects the value of the land as it controls an investor’s potential return. Increasing allowable FAR
is a tool to promote urban density, increase property values, investor returns and potential tax
revenue. Properly managed densification also contributes to the viability and vitality of urban life,
infrastructure, services and other commercial activities. Restrictions of FAR lead to sprawl as
development must go out rather than up. FARs in Punjab cities are currently very low and vertical
living is not yet part of the culture, but a review of current policies is needed.
Expansion
22. Regardless of the amount of rehabilitation and infilling, there will always be legitimate
requirements for some amount of urban expansion. At some point population growth will exceed
the amount of developable land within the current built-up area, or new opportunities not
anticipated in previous planning and appropriate for expansion lands will emerge. Typically,
expansion should either be contiguous with existing built-up areas, infrastructure and services for
economic sustainability, minimized new transportation needs, etc. or clearly defined and well
planned satellite development. Random sprawl must be avoided. Long-term planning for urban
development must take this into account by exerting some level of control over a broad adjacent
planning area to ensure that ad hoc development does not preclude orderly expansion and
economic servicing when the need arises. The current situation in both Sahiwal and Sialkot is
one of ad hoc sprawl, which is going to present difficulties for future managed, competitive and
resilient growth.
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Satellite
23. Satellite development refers to going outside of an existing built-up urban area, skipping
over an area of undeveloped or underdeveloped land, and establishing a new development
node. This may be functionally specific as in the development of an industrial satellite, or it may
take the form of a ‘New Town’ comprising the full range of social and economic amenities
required by the new local population. The concept of satellite developments is sometimes
perceived as a solution to the problems of existing built-up areas and the complexities of trying to
rehabilitate them: ignore past mistakes or inefficiencies and attempt to start over again. However,
it is typically far more economically viable to rehabilitate than it is to start over again. The urban
centers of Punjab are already seriously lacking in municipal resources to maintain existing
infrastructure and services. Developing a new satellite means full new investment in complete
infrastructure, housing, and social and economic amenities - something that Punjab is ill
prepared to afford at the moment. However, new capital expenditures and their related large-
scale contract opportunities are typically, and unfortunately, more attractive to decision makers
than rehabilitation and maintenance expenditures. In other instances, there may be a particular
economic opportunity that lies outside of the main urban area and development of a supporting
satellite makes sense. This is certainly the case with desired industrial development and
improvements in both Sialkot and Sahiwal. These are discussed under their respective
Development Strategies.
Consolidation
24. This term applies to the combination of upgrading, rehabilitation, infilling and
redevelopment. Collectively it is typically the most socially, economically and environmentally
viable first approach to addressing the needs of an urban area. Consequently, consolidation
features prominently in the Cities Development Concepts and Strategies.
D. Two Elements of Urban Development

25. Urban development includes the two elements of ‘software’ and ‘hardware’, which must
be carefully integrated.
‘Software’
26. ‘Software’ refers to the institutional components: governance at all levels, management,
administration, political will, legal and regulatory, and community involvement. These are typically
the most difficult components of sustainable and resilient urban development to establish
efficiently and maintain, often the most ignored, the most easily abused, and by far the most
important for sustainable urban growth and management.
‘Hardware’
27. ‘Hardware’ includes the physical components such as roads, water supply, sanitation
systems, power supply, drainage channels and buildings. These are essential capital expenditure
items, the most common requests and usually the focus of urban development. These cost a lot
and require constant management and maintenance to protect the investments and ensure
continued benefit to the community. These are also the easy parts and the ones most politically
attractive.
28. The Development Strategies presented here illustrate more of the hardware, but stress
the fact that without fully established, institutionalized, trained, dedicated and adequately
resourced institutional components, the hardware elements will fail to deliver the desired social
and economic benefits.
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E. Urban Development Components

29. Figure I-7 in chapter I illustrates the major integrated components comprising a city. To
develop a resilient, competitive and inclusive city all must be developed and mutually support
one another. The ‘glue’ to hold these together is institutional capacity and political will, while the
process is based on participation. Strategies for developing and integrating these sectors are
presented in Chapter VI.
F. Urban Development Project Cycle

30. Every project or program, including those proposed by PICIIP, requires attention to the 3
stages of Plan, Implement and Manage. Figure V-5. The ‘Manage’ stage includes ongoing
monitoring and evaluation, which identifies beneficial modifications and puts the process back
into the Plan stage for improvement before continuing to implement. Too many urban projects
are considered and funded only through the first two stages. The result is a rapid depreciation of
capital assets through lack of maintenance, and/or continuation of projects/programs that are not
being successful. Resilience, inclusiveness and competitiveness are threatened. Adequate
attention, resources and political will are essential for all stages. As stressed throughout,
Institutional strength and institutionalization of processes are the key. The next Chapter
discusses Urban Management.
Figure V-5: Urban Project Cycle
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Urban Planning, Institutions & Management

31. The urban institutional structures, capacities and processes, as stressed throughout the
PICIIP, are the keys to successful cities. This Chapter reviews the current Institutional Structure,
identifying issues and opportunities; discusses ‘governance’ at both formal and informal levels;
pays specific attention to Land Management recognizing that land is the foundation for urban
development; and presents some suggested revised structures for institutionalizing urban
management consistent with the proposed paradigm shift to an Integrated City Development
Strategic approach.
Figure V-6: Urban Structure
G. Governance & Governance
32. Governance of a city happens at a range of levels,

formal and informal. Figure V-6. All must be considered if the
city is going to respond inclusively to its full set of needs. The
stress on ‘participation’ during the planning and development
process is a reflection of this.
H. Institutional Development – A Tool to

Gain Competitive Advantage
33. The institutional situation is directly linked with City
Competitiveness and ease of doing business.
34. Investors desire a location with a clear, transparent,

consistent and predictable regulatory and approvals
environment. That currently does not exist in Punjab’s cities.
There is also a need to tie functioning Institutions to
sustainable urban management: full and sustainable tax and
user fee collection, budgets based on reality and actually
used/managed as planned – that would set the base for both
city and private sector growth.
35. It is therefore important to address the issue of

institutionalizing the ICDS and find a ‘home’ to entrench the
ICDS into the province and cities’ planning/ development
processes. Efficient integrated planning and development has
not been occurring and the CDS is suggesting ‘go forward’
improvements. These will take place within existing (or
revised) legislative instruments including:
Local Government Ordinance - 2001
36. Past performance of TMAs across the country has not

been satisfactory. Headed by an elected Nazim (presently
appointed Administrators in absence of elected House),
under whom are a Tehsil Municipal Officer, and four Tehsil
officers: an Engineer, Urban Planner, Finance officer and
Regulations officer62, and the staff below them. The existing,
typical city TMA Organization Chart is presented in a
simplified form in Chapter II and illustrates four departments that tend to work in isolation with
62
Their official designations in the same order are Tehsil Officer Infrastructure, Planning & Coordination,
Finance and Regulations.
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little interaction or coordination. In the present set-up, there is no centralized Planning &
Coordination Department, nor any monitoring and evaluation system to support a paradigm shift
to Integrated Strategic Planning.
37. Many of the provincial functions have been devolved to local level. However, a crucial
deficiency is the lack of capacity of TMAs to carry out these functions. The Government is
reverting back to Pre-2001 Local Government System under Local Government Ordinance 2013,
which is closer to Local Government Ordinance of 1979.
Punjab Local Government Act 2013
38. The Provincial Government intends to establish an elected local government system to
devolve political, administrative and financial responsibility and authority to the elected
representatives of the local governments; to promote good governance, effective delivery of
services and transparent decision making through institutionalized participation of the people at
local level; and, to deal with ancillary matters. The municipal institutions under the Act have not
yet been established and the old system continues.
39. The ‘municipal services’ to be provided under this act include urban planning and
development control, all intra-city infrastructure networks, fire-fighting, roads, bridges and
pedestrian ways. Parks and public green spaces are also municipal responsibilities.
 Districts are divided into urban area and rural areas in the following categories:
 Metropolitan Corporation
 Municipal Corporation (Population more than 500,000)63
 Municipal Committee (Population 30,000 to 500,000)
 District Council for the rural area of a District
40. Some functions may be further devolved to Union Councils for improved and efficient
service delivery to the citizens. Similarly, a local government may assign any of its functions to a
public or private organization or enter into public-private partnership for efficient performance of
any of its functions.
41. Of particular importance to the adoption and implementation of the strategic CDS
approach to city management is the need to formally and consistently coordinate plans between
the various levels.
42. Detailed responsibilities of the various local bodies are contained in the Local
Government Act 2013 and need not be repeated here. A summary of their potential roles,
responsibilities, and integration into the ICDS process is presented in Table V-7. Responsibilities
in the structure of local bodies under the Local Government Act 2013 is discussed below:
Table V-7: Municipal Governance & the ICDS Approach

Municipal Municipal Relation to ICDS
Union Councils Relation to ICDS Relation to ICDS
Committees Corporations
Community ICDS Process - Prepare spatial ICDS Process – Approve spatial ICDS Process –
mobilization for IEC Unit plans for the local Land use cell plans, master Physical Planning
maintenance of government, plans, zoning, Unit
UC level land use plans
Infrastructure.
tree plantation & ICDS Process - execute and ICDS Process – environment ICDS Process -
landscaping Environmental manage Planning & control, Environmental
Management development Development Cell environment,
63
At divisional headquarter, an urban area having a population less than five hundred thousand to be a
Municipal Corporation, and an urban area having a population less than thirty thousand to be a Municipal
Committee.
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Unit. plans; Management

Unit.
Prevention/remov ICDS Process – exercise land use ICDS Process – urban design, ICDS Process –
al of Development and zoning Development urban renewal Physical Planning
encroachments Control Unit. control Control Unit Unit
provide and ICDS Process- Provide/maintain ICDS Process – ecological Environmental
maintain rural Infrastructure public open Physical Planning balances; Management
water Services Cell spaces, Cell Unit.
graveyards, public
supply/sources of
gardens and
drinking water in playgrounds;
coordination with
community
organizations,
Arrange for ICDS Process - enforce all ICDS Process – implement rules ICDS Process –
registration of Social services municipal laws, Magistrate, Legal and bye-laws Physical Planning
births, deaths, for public health rules and bye- aspects. governing land Unit
and welfare. laws regulating its use, housing,
marriages and
functioning; markets, zoning,
divorces
support relief ICDS Process - regulate affixing Development prepare budget, Planning &
measures in the Social services of sign-boards Control Unit approve taxes Development
event of for public health and and fees; manage Unit,
and welfare. advertisements; properties, assets
emergencies/
financial
natural Entire City statements and Finance &
calamities. Administration present them for Taxation
internal and
external audit in
the manner as
may be
prescribed;
identify ICDS Process – provide, manage, ICDS Process – prevent and ICDS Process –
deficiencies in Infrastructure operate, maintain Infrastructure remove Development
delivery of Services Cell. and improve the Services Cell encroachments; Control Unit.
municipal regulate affixing
services
infrastructure and of sign-boards
services and
advertisement
Execute ICDS Process – firefighting; parks, ICDS Process – provide, manage, ICDS Process –
development IEC Unit play grounds, Physical Planning operate, maintain Infrastructure
works in the open spaces and Cell. and improve the Services Cell
arboriculture; municipal
prescribed
slaughterhouses; infrastructure and
manner; and services,
maintain such
statistics and data
as may be
prescribed and
disseminate
information on
matters of public
interest.
prevent and ICDS Process – environmental ICDS Process -
remove Development control, urban Environmental
encroachments Control Cell design and urban Management
renewal Unit.
programs;
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prepare budget ICDS Process – conserve ICDS Process -

and long term Planning & historical and Environmental
municipal Development Cell cultural assets; Management
development undertake Unit.
programs landscape,
maintain a ICDS Process -
comprehensive GIS Section
data base and under Physical
information Planning Cell
system
approve taxes ICDS Process – establish and ICDS Process –
and fees; collect Financial maintain regional Planning &
approved taxes, management & markets and Development Cell
fees, rates, rents, taxation commercial in coordination
tolls, charges, centers; with District
fines and Government.
penalties;
manage ICDS Process – maintain a ICDS Process –
properties, assets Financial comprehensive GIS under
and funds vested management & data base; Physical Planning
in the local taxation Unit
government;
develop and ICDS Process – infrastructure and ICDS Process –
manage Physical Planning public utilities; Infrastructure
schemes, Cell Services Cell
including site
development;
maintain ICDS Process – exercise control ICDS Process –
municipal records GIS under over land-use, Physical Planning
and archives; Physical Planning land-subdivision, Unit
Unit land development
and zoning
conserve ICDS Process -
historical and Environmental
cultural assets; Management
Unit.
assist in the ICDS Process -
provision of relief Social services
in emergencies/ for public health
natural calamities, and welfare.
Entire City
Administration
prepare financial ICDS Process –
statements and Finance &
present them for taxation
internal and
external audit in
the prescribed
manner.
I. Cascaded Urban Planning
43. The - integrated - part of ICDS also includes setting an individual city plan within the
context of a hierarchy of cascading plans. Plans cannot operate in isolation, but must be
informed by policies and plans at both higher and lower levels. Figure V-8 illustrates the
‘cascading’ planning context within which the Sialkot and Sahiwal ICDSs and subsequent PICIIP
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project investment plans are set. Plans must be consistent with those above, and experience
gained below must be fed back up the hierarchy to make appropriate revisions as conditions
change. Failure to institutionalize the process results in the ad hoc approach to development that
dominates at present. The process of preparing, operationalizing and enforcing a cascaded
planning regime is a critical institutional requirement that cannot be over-emphasized for the
successful achievement of PICIIP’s desired outcomes.
Figure V-8: Cascaded Urban Planning
J. How is ICDS Integrated and Institutionalized?
44. ICDS sits under the umbrella of two Departments, i) Department of Local Government,
which is ICDS’s ‘Policy Home’, and ii) Department of Planning & Development, (Urban Unit),
which is ICDS’s ‘Technical Implementation Home’. The ‘Operational Home’ of ICDS is in the
cities with an important need to integrate planning and development with their respective
Districts.
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Figure V-9: Integrating ICDS
K. Proposed ICDS Municipal Management Structure
45. Secondly, that process must be translated down to the District and City levels with City-
level detailed suggestions for re-structuring presented in Figure V-10. However, at present the
Local Government Ordinance 2001 is in force, soon to be replaced by Local Government
Ordinance of 2013. This is an opportunity to introduce further CDS-supportive amendments. The
Provincial Government has established three transition teams (Provincial, Divisional and District)
to guide the transition of local governments to the new proposed one (Metropolitan Corporation,
Municipal Corporation, Municipal Committee, District Government etc.)
46. The transition teams have representation from a full cross-section of different provincial
departments. These teams will finalize the new administration setup, finalize organizational chart
for local governments, establish parameters for distribution of assets and liabilities amongst
successor local governments, finalize the parameters for deployment plan for adjustment/
distribution of existing employees in local governments and employees of health and education
department in the authorities.
47. The existing municipal management structure is not conducive to a policy driven,
integrated, strategic development approach to urban development. The current structure results
in ‘siloed’ ad hoc activities without the coordination vehicles in place. This is an opportune time to
introduce suggested restructuring to achieve those goals while transitional plans are being made.
Figure V-10 illustrates a proposed municipal structure that will support a strategic and integrated
planning and development approach. The necessary umbrella structure is suggested to promote
integration and inclusive thinking. The proposed Planning and Development unit, something that
is missing in the current structure, will have the major technical coordinating role. Three other
new key units are introduced: a Strategy and Policy Unit; a Communications unit to develop and
implement a robust IEC (Information, Education and Communication) program within government
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agencies, key decision makers and the general public promoting participation; and an Economic
Development Unit to serve as a city promotional unit as well as a one-stop-shop for interested
investors.
L. Union Councils and Mahallah Level Governance:

48. Union Council comprise of Mahallahs or wards in the case of urban areas. There are
formal wards at Union Council level, but there can also be informal community based
organizations to address local issues. These informal Mahallah level organizations are an
important part of city governance. Community leaders, Mosque Imams, school teachers, retired
soldiers etc. are important and for many people may be more relevant and part of daily life than
formal city government is. Detailed functions of the Union Council are given in Local Government
Act of 2013.
M. Land Management
49. Land is the physical foundation for urban development and managing it requires
consideration of a complex mix of hard and soft factors. Figure V-11. It is largely the deficiencies
in institutional capacity to deal holistically with land management that has led to the root problem
of urban sprawl facing both cities now. As institutional capacity building proceeds, considerable
attention will be required on land as a starting point.
N. Participatory Budgeting
50. Participatory budgeting is a process of democratic deliberation and decision-making, in
which ordinary people decide how to allocate part of a municipal or public budget. Participatory
budgeting allows citizens to identify, discuss, and prioritize public spending projects, and gives
them the power to make real decisions about how money is spent. If Participatory budgeting is
taken seriously and is based on mutual trust, local governments and citizens can benefit equally.
It may even raise people's willingness to pay taxes. Participatory budgeting generally involves
several basic steps: (1) Community members identify spending priorities and select budget
delegates (2) Budget delegates develop specific spending proposals with help from experts (3)
Community members vote on which proposals to fund (4) The city or institution implements the
top proposals.
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Figure V-10: Proposed ICDS City Management Structure
page 138
Figure V-11: Land Management
page 139
51. The purpose of institutional reforms under PICIIP-ICDS is to strengthen local city
governments. This will be achieved through (1) enhanced and gender sensitive enabling
environment for local governments and citizen participation; (2) more effective, inclusive,
responsive and equitable local government decision-making and resource use and management;
and (3) improved, accessible, accountable and sustainable service delivery at the local level.
52. In Local Governments there has always been a deficiency in developing, implementing
and sustaining an effective planning and management system. Most of the development planning
and decision-making is based on how much development funding these governments receive
from the provincial government. More often than not, the annual budget allocations set the
direction for development schemes without due consideration of citizen needs and priorities. At
present (and in the past) resources available to the local government are not allocated as to
where and how to spend. As a result, all local governments (regardless of their fiscal resources)
are at loss when it comes to the development needs of the area, and funds are utilized in a
manner that does not always correspond to citizen needs. This will change under an ICDS
process.
O. Participatory Budgeting and ICDS – A Policy Framework

53. The City Chairman should invite City Council members (who are also chairmen of the
Union Councils falling in the city jurisdiction) to submit proposals for development initiatives for
their respective UCs. These proposals should be based on discussions with residents in their
respective Union Councils. The list of proposed initiatives should then be forwarded to the City
for compilation before submitting to the City Council for consideration, and inclusion in the
Annual Development Plan of the City. At all stages the public must be encouraged and enabled
to transparently follow the process. An important part of the review and approval process will be
relating proposals back to the overall direction of the ICDS to ensure they are contributing in an
integrated and forward manner.
P. Sustainability & Urban Revenue Generation

54. Urban areas have significant unexploited potential to enhance their sustainability through
better revenue generation. In most cases, potential sources of revenue have not been effectively
tapped. In general, revenue collection needs to be more effective at the local level where the
potential sources of revenue are better known. Taxpayers are also more willing to pay taxes if
the utilization of their money is obvious to them, and the public entities managing such tax
revenue are within their reach in terms of political supervision and control. Decentralized
management of public funds creates an opportunity not only for increasing total revenue, but also
for spending these funds more wisely, inclusively and effectively, including benefit to the
disadvantaged groups. This, however, requires adequate systems of checks and balances to be
institutionalized.
55. The current sources of revenue include property taxes, land use change/registration fees,
signage & hoarding, building permits and service user charges. The main source of revenue
should be property taxes. However, these are nominal at present, not applicable in rural areas
and are currently politically difficult to levy at the rate required for sustainable urban growth and
management. Addressing this issue is likely the key to on-going resilient and competitive growth.
Contributions from other sources as listed above are not significant, but have potential to be
increased subject to political will. Property Tax is administered under the Urban Immovable
Property Tax Act of 1958. However, rates and processes require an overview and updating to be
more robust and reflective of the increased urban requirements.
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56. Fines for encroachments and non-compliance with buildings by-laws etc. are low and the
recovery rate is poor. Fines need to be enhanced with more effective mechanisms for recovery.
In summary, collection against demand and investment in services does not meet O&M costs.
57. Cities also need to improve the way in which they openly respond to the needs of its
citizens in a transparent fashion. To date, the approach adopted by many city officials has
typically been to limit the access provided to residents to the way the city does its business.
There are examples of improvements in Sialkot and Sahiwal in the complaint management
systems, and some attempts at improvement in the services and mapping of the system that can
be further developed to enhance transparency and stakeholder participation. As a start, physical
access to TMA offices should be open, prominent, inviting and celebratory of their prime role in
managing the city. This is not the case in either Sahiwal or Sialkot.
Sector Concepts & Strategies

58. A city is the composite of a series of sectors as discussed above. Each have their own
physical as well as institutional needs, and each must consider integration with the others. The
following presents a schematic series of Sector Strategies applicable to the typical, largely
residential, UC and Mahallah in any Punjab city. Inner city business core UCs are slightly
different and are discussed under the respective city strategies. The Mahallah level is not a
notified planning level, but is selected for these strategies because it is the urban level those
residents live in and most closely relate to. If Mahallah concepts align with people’s needs and
aspirations, the resulting higher-level official plans will also. The Mahallah-level Sector Strategies
also go beyond purely government responsibilities and address those aspects of urban
development and management that should really be the responsibility of individuals, their
communities or the private sector.
Q. Basic Urban Structure

59. Officially, Punjab cities comprise a series of administrative Urban Council Units.
However, the real life of the city takes place within the cultural norm of ‘Mahallahs’-
neighborhoods. These are where people live, interact, do much of their shopping, play and
possibly work. They take all sorts of physical forms but are typically centered on the mosque with
some nearby commercial areas, a community hall, a school, perhaps a health facility, and in the
fortunate ones, some recreation space. The Strategies developed for Sialkot and Sahiwal use
the Mahallah as the building block, while knowing that they are comprised of neighbors and
families, and in turn make of UCs and Tehsils. A strong sense of ‘community’ is the key to
development, and paying attention to community-level needs is fundamental to building a
resilient city. Figure V-12.
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Figure V-12: Conceptual UC - Mahalla Structure - The Base
R. Mobility (Transport) Strategy
60. The ease of movement of people and goods - mobility - is key to social and economic
development. The infrastructure supporting mobility is also typically the main physical framework
of a city. Inclusive and competitive cities must acknowledge and accommodate a variety of
mobility/transport modes: motorized and non-motorized. Sialkot and Sahiwal are, for the most
part, struggling to manage the full range of transport modes with, as in most places, the motor
vehicle dominating and pedestrians relegated to whatever space they can find. Not healthy, safe,
efficient or supportive of more resilient, climate-responsive non-motorized modes. Figure V-13
schematically illustrates an inclusive Mobility Strategy providing segregated spaces for motor
vehicles, public transit, non-motorized vehicles and pedestrians in a network that provides easy
inclusive access to the social and economic amenities that citizens need. Details of how this can
be physically accomplished by ‘managing the street space’ are conceptually illustrated in the next
Chapter.
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Figure V-13: Mobility Strategy
S. Green Public Space Strategy

61. Public green space serves a number of critical functions within a city, but is often
sacrificed due to a municipal government’s inability to dedicate the resources in the face of other
priority needs such as water supply. Without a strong sense of community, or in the absence of
development control, public awareness and other supporting services, intended open green
spaces tend to become dumping grounds or are encroached on for other purposes. However, a
good network of open green spaces can serve as healthy community meeting spaces, add to the
‘lungs’ of the city with vegetation, can play important functions in storm water management and
generally contribute to a more livable city. Figure V-14 illustrates a Green Space Strategy that
also integrates with the Mobility Strategy. The creation and retention of public green spaces
needs to start with physical planning, be valued by residents, but can be a good PPP opportunity
for private sector entities to adopt and maintain in exchange for some advertising rights.
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Figure V-14: Open Green Space Strategy
T. Social Development Strategy

62. Social Development is the underlying reason for focusing attention on city development.
All other strategies are aiming to support this. Very specifically, the Social Development Strategy
is concerned with key elements of community, housing, health, education and recreation. At the
physical planning and development level this first requires provision of space for the desired
facilities. Mahallah Centers either need to be planned in new parts of the city or created within
existing parts of the city to serve as the social hubs. The mosque is central for most. Related and
nearby space should be provided for other Mahallah meetings, a primary school, local health
facility and recreation space. The Mahallah Centers support stakeholder participation in the
affairs of the city, support inclusion of all members of society, serves as both formal and informal
IEC (Information, Education, Communication) centers. Figure V-15.
63. Housing - safe, healthy, affordable, appropriate - is perhaps the first social need for a
family and may be considered a basic human need and right. Housing and its related
infrastructure typically cover 60-70% of a city’s built-up footprint and is one of a city’s major
challenges. It is housing that is largely responsible for the uncontrolled sprawl that presents
Sialkot and Sahiwal with their most challenging issue. Housing must be inclusive and serve a full-
range of socio-economic needs. The housing component of the Social Development Strategy
calls for providing a range of densities and housing typologies to reduce sprawl, provide options,
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focus development around infrastructure for more efficiency, reduce travel distances and
generally put cities into more sustainable and resilient positions. Higher density housing
development/redevelopment is proposed around major transportation corridors and hubs, around
major economic, employment centers, and at a smaller scale close to Mahallah Centers.
64. At the present time, the provision of health and education services is a District
responsibility, but space must be logically provided through city-level planning. It is also
suggested that basic Public Health services become part of a city’s responsibilities providing
Mahallah-level health education and awareness, and perhaps special local services for children,
the elderly and other vulnerable groups who are not mobile.
Figure V-15: Social Development Strategy
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U. Economic Development Strategy

65. The Mahallah-UC level Economic Development Strategy is aimed at two inter-related
dimensions: (i) supporting the local everyday needs of residents, including employment and
access to goods and services; and (ii) promoting the city’s level of competitiveness within the
province, the country and international markets. Being ‘competitive’ revolves around creating an
attractive ‘ease-of-doing-business’ environment. That quality of that environment is determined
by the quality of physical infrastructure and land available, and the ease, efficiency,
completeness and transparency of institutional elements including legal and regulatory, taxation,
physical planning, development approvals, and security. Pakistan ranks 128th out of 189
surveyed countries in 201564 so individual cities are starting from a challenging position. On the
positive side, of the 13 Pakistan cities surveyed, the top 3 were all in Punjab: Lahore, Faisalabad
and Multan, although Sialkot ranked 11th. Sahiwal was not surveyed. City-level Economic
Development Strategies are also discussed in this Report.
66. Figure V-16 conceptually illustrates a Mahallah-level Economic Development Strategy.

The guiding principle is that formal spatial and service provision must be made for both the
formal and informal economic sectors. Traditional urban planning, and decision making, typically
ignores the inform sector considering street vendors and hawkers as inconvenient intrusions in
the city. However, the reality is that 76% of Sahiwal’s and 70% of Sialkot’s employment is in the
informal sector65. Although no statistics are available, it is likely that an even greater percentage
of the cities’ total economy rests in the informal sector with 100% of the population somehow
involved. From an urban planning perspective at the Mahallah-UC level, the Economic
Development Strategy includes:
 Convenient access to employment opportunities, goods and services at city, Tehsil,
District, Mahallah and home levels are fundamental.
 Formal, appropriately serviced urban space for the informal economic sector is required
to both support their livelihoods and reduce the street congestion caused by not having a
space to operate close to their market. Many cities have attempted to relocate the
informal sector to remote locations, which never work. It breaks the proximity link
between provider and customer and would deprive vendors of their livelihood if they
accepted the move. However, they cannot afford to accept relocation and are typically
soon found back in their original, carefully assessed location. The solution is not
relocation, but acceptance and management.
 Infrastructure and services as discussed in other strategies are obviously essential
support for economic activity and all should be aiming at affordable 24/7 services.
 Transparent and equitable preparation and institutionalized application of regulations,
licensing and inspection services are essential for both formal and informal sectors. The
informal vendor’s licensing process should not consist of paying the local policeman on a
daily basis.
64
World Bank Ease-of-Doing Business Survey, 2015
65
Punjab Development Statistics 2014
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Figure V-16: Economic Development Strategy
67. There are several wholesale and retail levels in the informal sector supply chain. Each
one needs urban space, good connectivity (Mobility) and varying levels of supporting services.
Figure V-17.
68. Managing and providing for the informal sector is also key to improved Mobility, as much
of the current street congestion in Punjab’s intermediate cities is due to conflicts between traffic
and vendors who have no other space in which to operate. The provision of formal space for
informal economic activity will help both. Figure V-18 is a schematic of how this space can be
created while also providing enhanced public space.
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Figure V-17: Informal Sector Hierarchy
Figure V-18: Providing Space for the Informal Sector
Source: HABICO
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V. Water Supply Strategy
69. The proposed UC and Mahallah level Water Supply Strategy is based on the overall goal
of delivering 24/7 safe and healthy water. It also takes guidance from the existing system and
system improvements being proposed by the overall PICIIP program with the further addition of
longer-term climate-change resilience components.
70. The existing water supply system is already locally based on a series of tube wells and
overhead reservoirs rather than relying on one large water treatment facility and major trunk main
distribution. The locally based system lends itself well to a more sustainable, resilient and
affordable water supply that integrates nicely into the UC-Mahallah base for other proposed
sector strategies. It has the flexibility to expand or be rehabilitated without worry about a single
main supply facility.
71. The main concern is the climate change impact on the water source as the Himalayan
and Karakorum glaciers melt, rivers become less reliable and aquifers drop. This is projected to
be accompanied by increasingly severe and unpredictable storm events. These will present a
flooding and damage threat, but should also be considered an opportunity to harness a new
water source as a resilience response. For this, the Water Supply Strategy encourages the
introduction of rainwater harvesting. Demonstrating and promoting the potential should be led by
the public sector with installations made on public buildings, and encouraged for individual
households. Sahiwal and Sialkot both have a dynamic private sector, which is already
responding to environmental standards required by international customers, and are another
excellent demonstration point. Public demonstrations of rainwater harvesting could be integrated
into the suggested PPP Green Space initiatives helping to re-charge aquifers. Mahallah Centre
rainwater harvesting should be the starting point as they will be visible to all, are of a
manageable scale and can demonstrate benefits for mosques, schools, green spaces,
commercial facilities, with excess going to aquifer re-charge. Figure V-19 illustrates the
integration of both approaches. Integral to sustainable water supply and the cities’ climate
change resilience response is public awareness and education. This is partly why a
Communications Department is proposed within the new City Management Structure, and why
Public Health initiatives are proposed to be added to city responsibilities.
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Figure V-19: Water Supply Strategy
W. Sanitation & Sewerage Strategy
72. The main Strategy point is that cities must start to fully treat their sewage and industrial
effluents before disposing of them into water bodies or allowing them to percolate back into
underground aquifers. The existing high levels of pollution being directly discharged into the
environment are unacceptable and unsustainable. The proposed Sanitation and Sewage
Strategy follows the current smaller locally based treatment facility approach, as opposed to a
shift to one large central system (Figure V-20). The city-specific ICDS creates special Industrial
Parks where industrial effluent can be separately treated without mixing with domestic, as is
currently the case. The benefits of smaller, local systems include ease of expansion by adding
new small systems as new Mahallahs/UCs are developed, less costly, and easier to devolve
maintenance/management responsibilities if that were to be suggested as an administrative
change. Technical details of what is required in terms of system upgrading, replacement or
expansion are covered in the accompanying PFS Report. As part of integrating this infrastructure
component into the overall ICDS approach to planning and development, it is proposed that the
city develop a Public Health Department with Mahallah-level offices to promote good health and
hygiene, awareness of using and looking after sanitation and drainage infrastructure and address
health aspects of water use and solid waste management systems. This may be done through
the schools and special community events.
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Figure V-20: Sanitation & Sewage Strategy
X. Drainage Strategy
73. Much of the flooding occurring in urban areas is the result of degraded or non-existent
storm water drainage systems. The infrastructure itself has been allowed to deteriorate or be
modified by adjacent property owners who also, and through a lack of awareness or other SWM
options, use drains as garbage dumps. Both hard and soft components of the issue need to be
addressed. At the same time, there are opportunities to transform storm water from a problem to
an opportunity by introducing storm water retention/management ponds throughout the city,
which can be used for small-scale irrigation at the Mahallah level to reduce consumption of
treated water, and/or as contributions to aquifer re-charging.
Y. Solid Waste Management Strategy

74. The absence of efficient and effective SWM systems in these intermediate cities has
numerous negative health, environmental, social and economic impacts. Addressing SWM is a
priority and one that can be accomplished relatively quickly at reasonable cost. An appropriate
hierarchy of waste collection steps fits very nicely into the Mahallah/UC structure used as the
ICDS building block. The existing narrow streets in many locales do not permit large vehicle entry
so small-scale, perhaps private operators are required to gather solid waste to central points for
truck collection (Figure V-21). This also provides opportunities for separation at source or at the
Mahallah collection points for re-cycling. Re-cycling is already extensively practiced by the
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informal sector, but significant revenue potential is being lost by not formalizing the processes at
Mahallah, UC or City levels. Re-cycle revenue could do a lot to support Mahallah-level social
facilities and activities. Technical details are presented in the accompanying PFS Report.
Figure V-21: SWM Strategy
Z. Resilience Strategy
75. At the Mahallah-UC level, increasing resilience to climate change starts with a robust
program of public awareness and local political leader support. The concept of increasing the
prominence of social facilities at Mahalla centers is directly related to improving Mahallah
residents’ interaction and communication. At the technical level, increased resilience depends on
implementing the coordinated combination of the various small initiatives outlined under each
sector. In turn, these must, of course, be integrated into the overall city-level components of the
same sectors.
AA. Expanding the City - New Mahallahs

76. At some point the city will have to consider formal expansion. Advance planning is
essential to prevent the continued ad hoc development that characterizes the cities today. When
all of the principles, concepts and sector strategies are combined from the beginning it will be
much easier to develop inclusive, resilient, livable, and competitive Mahallahs building the city.
Figure V-22 is a conceptual example with size based on easy walking distance to all facilities.
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Figure V-22: Conceptual Example of a New Mahallah
Source: HABICO
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Sahiwal Urban Development Strategy - Context

77. Sahiwal’s existing situation, unique characteristics and current role as an intermediate
central-Punjab city is presented in the accompanying Sahiwal Rapid Urban Assessment. The
following presents highlights upon which the proposed ICDS for Sahiwal is based. It should be
kept in mind throughout that overall guidance in the preparation of this Strategy is drawn from the
main principles stressed in Punjab’s Urban Development Sector Plan 2018 of supporting cities to
be ‘engines of growth’ based on being ‘dense’ and ‘agglomeration’.
BB. Summary Sahiwal SWOT Analysis

78. Table V-23 presents a summary SWOT analysis resulting from fieldwork and stakeholder
participation sessions held in Sahiwal. Other details are presented in the accompanying Rapid
Urban Assessment Report for Sahiwal.
Table V-23: Summary SWOT Analysis – Sahiwal
Strengths Weaknesses Opportunities Threats
Formally planned urban Underdeveloped municipal Use colonial planning Resource, development
core dating from colonial infrastructure: water base to develop a model competition from other
era. Solid planning and supply, power, drainage, of efficient, well- China-Pak Corridor urban
development base. sanitation, public transport organized, compact urban centers.
restricts competiveness. development.
Prime location along Sprawling, unplanned Develop Punjab model Climate change impact on
planned China-Pak urban growth hindering examples of efficient, future water supply.
Development Corridor efficient infrastructure livable, inclusive streets
provision, unsustainable including pedestrian-only
land-uses and loss of zones & efficient public
agriculture. transit
Well established start to Limited urban planning, Implement a model ICDS Failure to gain
agro-processing industrial development and approach to urban competitive advantage in
base. management institutional management. absence of strong
capacity at city level. supporting infrastructure.
New nearby power Limited local revenue Build on existing start to Failure to bring unplanned
generation attractive to generation to support agro-processing industrial urban sprawl under
new industry urban services base taking advantage of control will lose
prime agricultural area, productive agricultural
strengthened land and create
transportation, new power unsustainable municipal
sources. service demands.
Solid urban support Develop a model of
available from the Punjab improved ‘good
Urban Unit. governance’, revenue
generation, sustainability,
resilience adaptations
A Chamber of Commerce Demonstrate pro-active,
ready to be more integrated climate change
involved with urban impact resilience
development mitigation measures as a
model for Pakistan.
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CC. Sahiwal’s Vision
79. Based on the SWOT analysis, the residents of Sahiwal have started to formalize a Vision
for their future as the over-riding guide to future development. Some of the suggestions that have
been put forward as possible components of a Vision include:
 ‘A model city’
 ‘A city owned by the people’
 ‘A clean, well-managed city’
80. Sahiwal does have the opportunity to achieve all of these, and is particularly well placed
to become a model city, as an industrial and transport hub, displaying the best of a green and
well planned and managed place.
DD. Sahiwal - Existing Situation - Summary
Urban Form
81. Sahiwal’s official boundary currently encompasses an area of 12.81 km2. However, the
actual ‘urbanization’ area is quite different as illustrated in Figure V-24. Uncontrolled, low-rise
sprawl is the easiest way to describe the city’s urban form and one that is central to most of its
planning, development, sustainability and resilience challenges.
Demography
82. Sahiwal’s City’s population in 2015 is estimated at just under 290,00066 and projected to
reach over 420,000 by 2035 (within the current boundary). Note that Urban Boundaries are being
revised as discussed, and this captures more existing population with the result that the total
urban population by 2035 is estimated to be 581,574. At the same time, Punjab’s urban
population will increase from 32% to 40% (59 million out of 150 million). Within the urban area
this translates into an average density of 95 persons per acre, which because of the predominant
low-rise building form, is congested in some areas. The average household size is also quite
large at 6.2 persons67.
Employment
83. Formal employment is centered around the more than 220 factories, of varying sizes,
located in Sahiwal and its environs68. These are providing some 8,200 jobs. Agro-related industry
is of particular importance as an employment generator. The following summary points are of
particular interest with respect to Sahiwal District. The share of employment in the informal sector
is over the national average at 76.5% for Sahiwal compared to 72.9% nationally.69 This is a key
point considered in the future planning of Sahiwal where, as in most cities, no formal space is
being provided for this major employment sector.
66
Punjab Development Statistics 2014, extrapolated.
67
Poverty and Social Impact Analysis, 2008, for Urban Unit by Semiotics Consulting (Pvt) Ltd.
68
Sahiwal Chamber of Commerce
69
District Level Employment Trends 2009-2010, Gov’t. of Pakistan, Federal Bureau of Statistics unless
noted.
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Figure V-24: Sahiwal’s Existing Urban Form
Urban Poverty
84. The Poverty and Social Impact Analysis (PSIA), 2008 70 assesses conditions in urban
Punjab putting urban poverty at 26%, almost equivalent to the national average. Sahiwal is not
specifically assessed, but there is little reason to indicate the conditions are significantly different
despite the high level of industry.
Housing
85. Housing and related infrastructure occupies approximately 60% of Sahiwal’s urban
footprint. According to the PSIA only 30% of Sahiwal’s housing is provided through the formal
sector with the other 70% developed informally and primarily on converted agricultural land
without planning approval. In 2015 there were over 90 private sector ‘illegal’ housing societies
(estates) developed or being developed around Sahiwal. Only 15% of the informal housing is
through infill and densification within the city boundaries. 80% are owners, 18% renters and 2%
shared accommodation. The high level of ownership is a solid start for wealth accumulation and
investment opportunities if the land registration and supporting documentation systems are
functioning efficiently. According to the Sahiwal TMA, the major of properties are officially titled
with records currently being digitized. These will be tied into the Urban Units extensive GIS
database.
Economy and Role in Punjab and Pakistan
86. Sahiwal is a major agricultural centre in one of the richest wheat and cotton producing
areas of the Punjab. There is a good base of agro-based industrial development with significant
70
for Urban Unit by Semiotics Consultants (Pvt) Ltd.
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room for expansion as infrastructure improves and the linkage benefits improve with construction
of the China-Pakistan Economic Corridor. Although a controversial development, a new coal-
fired power generation could attract further industry, if real negative impacts and perceptions can
be overcome.
87. The Sahiwal Chamber of Commerce is active in urban affairs and fully supportive of
additional development that will help build their competitive advantage.
88. As with every urban centre in Pakistan and in most emerging economies the informal
sector likely accounts for the majority of the economic activity, although by its very nature
statistics do not usually capture this. A simple look at any street is indicative of the high level and
importance of the informal sector in which 76.5% in Sahiwal71 are actively engaged and probably
100% participate. At the same time, their dominant presence in the urban setting is ignored from
a planning perspective with the resulting street chaos evident everywhere. The ICDS pays
particular attention to the inclusive needs of this major group by providing appropriate formal
urban space and encouraging their participation in planning and development decisions.
Competitiveness Enablers
89. Sahiwal is located in a prime location along the new China-Pakistan Economic Corridor,
and has a pro-active and entrepreneurial private sector interested in the city, leading its industrial
economic base, and ready for more PPP participation to move the city forward. Good road and
rail transport connections exist and are now have the potential to be greatly enhanced as part of
the China-Pak Corridor. The CDS is building on this opportunity.
90. Establishing a leading ‘ease-of-doing-business’ environment is an essential competitive

need. The existing lack of equitably applied and transparent development planning, approval and
inspection processes are not conducive to investment. Significant institutional reform is required.
At the same time 24/7 water and power with efficient solid waste management and public
transport would be strong competitive advantages.
Sahiwal Urban Development Strategy

91. This Chapter is structured with an initial discussion of the overall growth option concepts
that could be pursued by the future Sahiwal. Each is presented with its advantages and
disadvantages in the Sahiwal context concluding with a recommended growth option. The option
is then developed and presented in greater detail as Sahiwal’s proposed Integrated City
Development Strategy (ICDS). Key features of the ICDS are discussed.
EE. Physical Development & Growth Options
92. The generic set of urban growth options are presented in Chapter VI. In this Section they
are reviewed within the specific context of Sahiwal.
Continued Multi-Directional Expansion
93. This approach would, in essence, see a continuation of the current situation and is not
sustainable. The built-up footprint of Sahiwal is already double that of its official boundaries. As
pointed out, unplanned sprawl is environmentally degrading, very inefficient and expensive to
service, consumes valued agricultural land, creates long and costly travel for residents, reduces
the ability of the city to manage a robust program of building resilience to climate change impacts
and generally prevents Sahiwal from attaining the inclusive, green and competitive status it is
striving for. This option will not be pursued.
71
District Level Employment Trends - 2009-2010, Gov’t. of Pakistan, Federal Bureau of Statistics
page 157
Densification
94. The Punjab Urban Development Sector Plan 2018 stresses the importance of density
and agglomeration for cities if they are to achieve their roles as leading engines of growth.
Pursuing this principle underlies the ICDS. Density is the key to providing affordable
infrastructure and services; sustaining viable public transit; reducing the built-up urban footprint
thereby preserving agricultural land and other natural habitats; makes the best use of land that is
built-up; provides proximity to social and economic amenities without lengthy and costly travel
and creates sustainable markets for commercial activities. Increasing density is recommended as
one of Sahiwal’s growth options.
95. There are several mechanisms for increasing density in Sahiwal while also improving the
quality of life for its residents. These include regeneration, redevelopment, infill and upgrading.
Among the major development opportunities identified are the relocation of the existing,
predominantly wholesale Grain Market to an expanded Industrial Zone with enhanced
transportation access, and re-location of the Prison which currently occupies over 160 ac of
prime inner-city land which could be much more productively and sustainably used for mixed-use
residential, commercial and open-green recreational activities.
Concentrated & Managed Expansion
96. Although densification can and should accommodate a significant amount of urban
growth, there will also be a need at some point for expansion as populations increase, new
economic opportunities develop, or some current land uses need to be relocated. The key to
expansion is careful planning and management to ensure resilient, environmentally sustainable
and compatible site selection, ease of servicing, access to the transport required for the intended
land use, and proximity to other social and economic amenities appropriate for the expansion. As
a general rule, expansions should be contiguous with existing development for efficiency of land
use and infrastructure provision. Expansion should not be used as a replacement for efficiently
managing the inner core. Too often cities attempt to ‘leap-frog’ over their problems planning to
start over in a new location. This is seldom a socially, economically or environmentally
sustainable approach.
Satellite
97. Developing a satellite centre or ‘new town’ is an expensive option for accommodating
growth, but may sometimes be appropriate. A satellite normally requires another full set of
investments in all forms of infrastructure, social and economic facilities, and perhaps even
separate administration. Again, it should not be seen as a ‘leap-frog’ solution to existing city
woes. Satellite development does not appear necessary or desirable for Sahiwal. A policy of
compact, contiguous development should be pursued.
Combination of Densification and Expansion
98. Every growing city is likely to need a combination of densification and expansion to
adequately address all of its needs and opportunities. Sahiwal is no different, but a balance is
needed. One rule of urban management tied to land and infrastructure economics is that
maximum use should be made of existing land and infrastructure before expansion is
considered. This means a concentration on densification as a priority first step. Densification may
be more difficult to achieve given the need to have in place a strong strategic plan; fully
functioning land market; appropriate taxation; the ability to upgrade infrastructure as needed
(though typically less expensive than building new infrastructure); ability to attract the private
sector investment that will implement densification; full institutional support and understanding;
and a robust communication and stakeholder participation process. However, the longer-term
resilience, sustainability and therefore competitive advantages are considerable. Two city-level
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planning regulations that affect densification are height restrictions and Floor Area Ratio (FAR)
limits as discussed above.
FF. Preferred Development Option and the Strategy

99. Following an assessment of Sahiwal’s situation and aspirations, the potential growth
options available to it, and participatory reviews with Sahiwal and Urban Unit officials, a preferred
growth option was decided upon for development into the Sahiwal Development Strategy. Five
major prioritized elements are included, all in support of achieving an inclusive, competitive,
resilient, green and livable city:
 Industrial Park and logistical support development including new Multi-Modal Transport
Hub.
 Managed upgrading, redevelopment, regeneration and densification of the city’s core
 Upgrading and selective redevelopment and densification of existing Mahallahs as the
key community-based urban building block;
 Selective incorporation and upgrading of surrounding unplanned Mahallahs;
 Limited and contiguous expansion with well-planned and serviced new Mahallahs.
100. Figure V-25 conceptually illustrates these 5 elements.
101. The overall Development Strategy comprises a series of sub-strategies similar to those
presented at the Mahallah-UC level, but expanded to a citywide scale.
Figure V-25: Sahiwal Urban Development Concept
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GG. Revised Urban Boundary
102. A key step in beginning to implement a new urban strategy is to clearly define an urban
boundary - the line within which new investments and developments will be concentrated. This
does not correspond to the currently existing official Administrative Boundary. The components
of the new proposed urban boundary are illustrated in Figure V-26 with the final urban boundary
for Sahiwal illustrated in Figure V-27. The boundary is based on the key principles of
densification and agglomeration with calculations of land required to accommodate population
growth with their required social, economic and infrastructure needs, and projected industrial
growth. For Sahiwal, the new land requirement is based on Scenario 3, which assumes 75% of
population growth will be accommodated within the existing built-up area, and 25%
accommodated on new serviced lands. It must be noted, however, that this proposed Urban
Boundary still remains conceptual. To confirm a boundary in detail requires an extensive
technical exercise combining fieldwork, City-District-Provincial consultations and a careful
assessment of existing Maua 72 boundaries, which will be used to establish the detailed final
boundary.
Figure V-26: Proposed New Urban Boundary Components
72
The smallest revenue/census land unit.
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Figure V-27: Proposed Sahiwal Urban Boundary - 2035
HH. Sahiwal Inter-Jurisdictional Joint Planning
103. At present there is little or no planning coordination between TMAs and their surrounding
District. One of the consequences is the proliferation of un-planned and under-serviced
settlement sprawl around cities, including Sahiwal. It is strongly recommended that an Inter-
Jurisdiction Joint Planning mechanism be established to manage that interface between urban
and the largely rural surrounding District. All planning and development decisions that may affect
the other require consultation and joint agreement.
II. Urban Form Strategy

104. Figure V-28 conceptually illustrates the proposed Urban Form Strategy within a new
Urban Boundary. The overall urban form strategy, as discussed several times elsewhere if based
on ‘density’ and ‘agglomeration’. To rapidly help prepare Sahiwal for a competitive advantage
along the China-Pak Corridor, priority is given to development of a comprehensive Industry zone
to the south of the main city. Second priority is given to beginning the process of upgrading and
redeveloping the existing core for maximum compactness and best use of land and
infrastructure. This will be a lengthy exercise relying on private-sector investment within a
government-led framework. Expansion is achieved through selective absorption and upgrading of
adjacent Mahallahs, and in the longer-term, new contiguous ones will be formally developed. The
relatively low-density of Sahiwal, particular the western parts, provide the opportunity to
accommodate significant growth within the existing built-up area. It is further proposed that the
existing city jail, which occupies approximately 94 acres of prime inner-city land, be relocated
outside of the city. This facility is not necessary in the middle of the city and makes poor use of
the land potential when Sahiwal aims to become a compact, more livable and resilient city.
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Figure V-28: Sahiwal’s Development Strategy - Urban Form
page 162
JJ. Urban Regeneration, Redevelopment and Densification

105. The social, economic and environmental benefits of giving priority to urban regeneration
including renewal, redevelopment, infill and densification are discussed above. The overall desire
is to maximize the potential of inner city lands and infrastructure. Sahiwal has one low layer of
development spreading across the city with many land parcels undeveloped, underdeveloped or
in derelict condition. There is significant development potential here if the business environment
is in place to encourage that mobilization of capital. At present there is little incentive and
numerous disincentives to private sector investment in many of these areas. Low taxation
creates no need to develop. The congested streets, lack of public transport and poor condition of
other infrastructure and services do not invite investment. However, Sahiwal will have trouble
resiliently and sustainably developing in a competitive manner unless it begins to address these
issues. Sahiwal is growing and has a growing need for developed real estate. Spreading to the
outside may look like an easy alternative but it is diminishing the city’s sustainability. Land taxed
at its full potential value based on an adopted Land Use Plan will create the incentive to either
develop or sell to one who can.
106. Figure V-29 illustrates an example of how a typical existing Mahalla can be upgraded
with minimal redevelopment to provide improved social and economic amenities, infrastructure
services and enhanced quality of urban space and environment. These initiatives are all in
support of making Sahiwal more livable, green, and therefore more sustainable, resilient and
competitive. By targeting upgrading at the Mahalla level across the city, investments will also be
inclusive providing benefits to all socio-economic groups.
107. Figure V-30 suggests redevelopment of the current Grain Market and portions of the
existing railway lands, as a new (proposed) Multi-Modal Transport is developed in the proposed
Industrial Park area to handle increased freight traffic along the new China-Pakistan Economic
Development Corridor. The existing station remains for convenient passenger traffic. The present
Grain Market is largely a wholesale operation and does not require a congested inner-city
location with the related transport access problems. The site is prime for development as a
comprehensive Mahallah Centre for the surrounding residents.
108. An Approach to Urban Regeneration: The skills and resources required to undertake
comprehensive urban regeneration typically exceed those available at municipal/TMA level.
Global practice favors the establishment of separate Urban Regeneration Companies, or similar
special purpose vehicles to undertake these complex initiatives through a variety of PPP
arrangements. Funding urban regeneration requires strong public-private partnerships merging
the resources of both for sustainable implementation. The public sector brings the planning and
regulatory frameworks, prime infrastructure and potentially seed capital to the partnership, while
the private sector provides technical and managerial skills and collective access to far more
financial capital than Punjab’s cities have on their own. There are numerous global examples of
Urban Regeneration programs 73 established by provincial, regional or city governments to
promote urban regeneration by providing seed capital and an integrated umbrella under which to
operate. Focal areas include infrastructure, public spaces and housing. One of the key
requirements for implementation of these programs is well functioning, transparent and equitable
planning and approval processes in order to gain the confidence of private investors.
73
Examples: UK, “Homes and Communities”, a series of housing and infrastructure support funds; Australia:
“Infrastructure Partnership Australia”; Canada, “Places to Grow Implementation Fund”
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Figure V-29: Upgraded Mahallah
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Figure V-30: Grain Market/Rail Redevelopment
KK. Infrastructure
Mobility - Transportation Strategy
109. There are three components proposed under this strategy in addition to the generic ones
discussed previously:
Street Management - Livable Streets
110. Addresses the management of the wide variety of activities that take place in the city’s
street spaces: public transit vehicles, motorized private vehicle traffic, non-motorized vehicle
traffic, parking of both, pedestrian traffic, informal sector commercial activity, access to formal
sector commercial activities, and social interaction. The streets are also, typically, the corridors
for other urban infrastructure including water, sewerage, drainage and power. These are all
legitimate street activities but can be in conflict if each is not given its own space, rules and
supporting equipment. At the moment there is very little street management other than some
attempts to manage the vehicle component of it. The Strategy calls for re-structuring some of
Sialkot’s major street arteries to provide designated space for each activity. Figure V-31 is a
conceptual illustration of how this may be achieved with little expense while greatly improving the
quality of life along those streets for all involved.
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Figure V-31: Conceptual Street Management
111. In addition to managing the main traffic arteries there are opportunities to greatly
enhance the quality of life on some of Sahiwal’s small-scale streets. The existing inner-core fruit
and vegetable market streets are prime examples. These play an important role in the city’s daily
economic activity, but are not managed. All modes of traffic are allowed, congestion is rampant,
customer and vendor environments are poor, access and egress for products in and waste out
are challenges, wholesale and retail activities mix. The situation is poor leading to calls to have
these facilities re-located to the far edges of town. This would be a mistake as they are central to
the daily economy of the city and need proximity to customers. Management is the answer, not
re-location. There are opportunities to demonstrate a much more livable, green, sustainable and
efficient model. The majority of customers are pedestrians, and much of the last steps in product
delivery are by small handcarts or other small-scale vehicles. Some streets could be
pedestrianized throughout the retail portion of the day, with larger wholesale delivery and solid
waste removal activities scheduled at other hours. Figure V-32 illustrates a pedestrianization
example.
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Figure V-32: Pedestrianized Market Street
Traffic Management
112. Improved traffic management can only be effectively achieved when the streets are
properly managed. Details of proposed intersection, signage and related management details are
discussed in the accompanying PFS Report.
New Transport/Mobility Modes and Facilities
113. A number of specific new initiatives are proposed as part of the strategy to improve
Sahiwal’s competitive advantage and improve the overall urban environment:
 Develop efficient urban public transit (refer to PFS Report);
 Establish a new multi-modal rail-road in conjunction with an Industrial Park development;
 Re-locate current rail freight activities out of the city centre to the new multi-modal;
 Develop new long-distance bus terminals at two major entries to the city connected to
improved urban public transit;
 Develop a small-scale, local public-transit hub adjacent to the current rail passenger
terminal for inter-modal ease.
Water Supply
114. The main objective is to provide residents of Sahiwal with a reliable 24/7 healthy water
supply for domestic use, and the same for industry, to boost its competitive advantage. Detailed
proposals for technical and managerial improvement of Sahiwal’s water supply are discussed in
the PFS Report. From the broader Development Strategy and climate-change resilience
perspectives, Sahiwal has an opportunity to start looking at alternative, longer-term water
sources as the existing aquifers, Sahiwal’s sole source of water, are depleting. The traditional
Himalayan glacier sources are melting as a result of climate change, and more intense storms
and increased rainfall are forecast. To tie the two together, Sahiwal should be working with the
page 167
District and Province to develop a series of upstream watershed storm water

catchment/harvesting facilities to supplement future water supply
Sewerage and Sanitation
115. As with water supply, the overall sanitation strategy is to provide 24/774 safe, healthy and
environmentally sound services. At the moment there is little or no functioning sewage treatment
with effluent being discharged directly into the city’s two canals or directly onto adjacent lands
with all related negative environmental and health impacts. The situation is unacceptable and
unsustainable, and fully recognized as such by the residents and leaders of the city. As industry
and export expand, Sahiwal will find itself under international pressure to establish a greener
industrial environment if it wishes to gain a competitive advantage. Developing planned, serviced
and managed Industrial Parks is one proposal to address this issue so that industrial effluent can
be segregated and properly treated. Adding a community-based Public Health service as part of
the city’s responsibilities is another. Technical details of other sanitation recommendations are
presented in the Water and Sanitation section below.
116. One of the stated stakeholder visions for Sahiwal is to have ‘a clean city’. The proposed
strategy for solid waste management (SWM) is simply based on that. SWM challenges continue
to grow in magnitude with increased population and consumerism, and crosscut a wide range of
urban concerns: health, urban image, quality of life, drainage and environmental degradation
among them. A great part of the challenge is to instil a culture of collecting. That culture is
missing, for the most part, in all Punjab cities where the tendency is to simply toss waste into the
drains, onto the street or into the landscape. Public awareness and an attitude shift is the first
step. Secondly, SWM logically breaks down into a hierarchy of steps that can be quite easily
implemented starting at a household and community-based level. The Mahallah-UC strategy for
SWM is discussed in Chapter IV and applies appropriately to Sialkot. The strategy also
recognizes the considerable re-cycling economic potentials with SWM. Considerable recycling is
taking place in Sialkot by the informal sector. Carts loaded with empty drink containers and
cardboard can be frequently seen. At some point these collections enter the more formal sector
as they are consolidated and transported to recycling facilities. Sahiwal could be tapping into this
economic potential by beginning to formalize separation and collection at the Mahallah level
where revenue could then be directly applied back into improving Mahallah public services. In
general, solid waste must be taken out of the drains, off the streets and away from ad hoc
dumping. Technical details of SWM including the major engineering challenge of establishing a
properly managed disposal site(s) are discussed in the SWM section below.
Drainage
117. In addition to the obvious need to have drainage systems working, maintained and not
used as garbage dumps, there are opportunities to enhance the approach to storm water
drainage in support of the city’s climate change resilience efforts. At the moment, storm water is
a problem and a loss. The introduction of upstream catchment area reservoirs would help control
flooding and also become an alternative source of water supply as the traditional ones disappear.
Storm water retention ponds can also be introduced throughout the city as a smaller-scale
version of the same control mechanisms with water used for urban agriculture and other non-
potable applications. The strategy also suggests the promotion of rainwater harvesting as
another climate-change resilience response at Mahallah and household levels, which would
further contribute to both drainage management and water supply. The Sahiwal CDS also
proposes that the 2 existing irrigation canals running through the city be developed and exploited
as public green space city assets rather than solid waste dumping sites.
74
Meaning constant, uninterrupted, high quality water supply for 24 hours per day, 7 days per week.
page 168
LL. Population, Housing, Land & Infrastructure

118. Residential land and associated infrastructure and services account for approximately
60% of a typical city’s land use. Consequently, the impacts of growth on land and infrastructure
are a major part of the CDS. The discussion on urban densification versus expansion comes into
play here. Table V-33 presents some facts and 3 sample growth scenarios. Figure V-34
illustrates the new serviced land requirements under the 3 scenarios compared to the size of
existing Sahiwal.
119. In summary, if the same average settlement density is applied to accommodate all
projected population growth on new serviced land it will require a total of 1,398 ac (175 Kanal or
4.7 km2). Servicing this land is estimated at a total cost of almost Rs 2 billion ($ 21 million)75, or
an average of Rs 16,425 per person ($ 164) (Table V-35). If 50% of the new population is
accommodated through densification, the amount of new land required obviously falls in half, as
does the need for new infrastructure and the environmental impact. However, infrastructure cost
per person is even lower, as the cost of providing upgraded infrastructure for densification may
be as little as 50% that of new infrastructure (highly variable, depending on starting condition)
and that infrastructure benefits all existing residents as well. Cost per beneficiary in this case
may fall to Rs 6,116 ($ 61) if 75% of new growth is absorbed into the existing city. These are very
indicative estimates only, but do illustrate the benefits of densification over expansion.
MM. City and Regional Economy Strategy

120. All of the physical and institutional improvements discussed above contribute to a
stronger and more competitive environment for economic development in both formal and
informal sectors. All recommendations contribute to creating a more conducive ‘ease-of-doing-
business’ environment. Government’s own resources, their levels of human, technical and
financial capital, are dwarfed by those of the collective private sector. Government’s role is to
establish a conducive environment in order to promote the mobilization of private sector capital in
all its forms: cash, creativeness, sweat equity, skills and entrepreneurship in both the formal and
informal sectors. The proposed Economic Development Strategy strongly promotes a more
inclusive role for the private sector in city development. Sahiwal has an opportunity to distinguish
itself along the China-Pakistan Corridor with its central location and agro-processing industrial
potential. PPP initiatives need to be explored and built upon to capture the private sector’s
resources for the benefit of all. It is solidly in the private sector’s interest to have a well-
functioning, resilient city. PPP cannot only benefit large-scale infrastructure projects, but can
support small-scale social facilities such as parks and green spaces, and a wide range of
community-building civic events. Municipal government capacity is needed to effectively develop
and implement additional PPP activities.
.
75
Source: Lahore School of Economics, 2000, extrapolated to 2015 at 15% inflation
page 169
Table V-33: New Residential Land Requirements

Conversions 1 Marla = 225.0 sf (urban) 20.9 m2 0.05 Kanal (K)
1 Kanaal = 4,500.0 sf 418.2 m2 20 Marla (M)
1 ac = 36,000.0 sf (Pak urban) 3,345.7 m2
1 km2 = 10,760,000.0 sf 1,000,000.0 m2 247 ac
1 ac = 8 Kanaal (K)
1 ac = 160 Marla (M)
Standards Marla Sq Feet Sq Metres Acres Kanal Sq Km

Average urban lot size 7.5
Gov't. Project Max. Lot Size 20.0
Privat Project Max. Lot Size 40.0
Average HH Size (Persons 6.2
Land to Add for Infra/Services 40%
Sahiwal Population Growth 2015 2035 Pop. Change

Population 288,948 421,021 132,073
New HH at 6.2/HH 21,302
Sahiwal Urban Area (2015) 3,164.0 12.81

Sahiwal Density (2015) p/ac 91
Sahiwal Land Required to 2035 Marla Sq Feet Sq Metres Acres Kanal Sq Km
Scenario 1:
100% Expan. 0% Densification
Density p/ac 91
Popul. Absorbed in Existing City 0
Population on New Lands 132,073
New Existing City Population 288,948
Land Req'd at Average Lot Size 159,765 35,947,187 3,340,817 999 124.8 3.3
Add 40% for Infra/Services 63,906 14,378,875 1,336,327 399 49.9 1.3
Added Popul. as % of Existing 0
Total New Land Required 223,671 50,326,061 4,677,143 1,398 174.7 4.7
Scenario 2:
New Density Existing City p/ac 112
Popul. Absorbed in Existing City 66,036
Total New Land Required 111,836 25,163,031 2,338,572 699 87.4 2.3
Scenario 3:
New Density Existing City p/ac 123
Popul. Absorbed in Existing City 99,054
Total New Land Required 55,918 12,581,515 1,169,286 349 43.7 1.2
page 170
Figure V-34: New Residential Land Requirements to 2035
Table V-35: New Infrastructure Cost Estimates
Infrastructure Costs Land to Serv. Rupees US$
New Infrastr. Cost per ac 1,500,000 15,000

Average Cost/Person @ 100 p/ac per benefic. 16,425 164
Upgraded Infrastr. Cost per ac assume 50% 750,000 7,500
New Land Infrastr. Cost(ac)

Scenario 1 1,398 2,096,919,217 20,969,192
Scenario 2 699 1,048,459,609 10,484,596
Scenario 3 349 524,229,804 5,242,298
Per Beneficiary Cost

Scenario 1: density 100 pers/ac per benefic. 16,425 164
Scenario 2: density 123 pers/ac per benefic. 6,685 67
Scenario 3: density 135 per/ac per benefic. 6,116 61
page 171
NN. Institutional Strategy

121. The ICDS-supportive institutional strategy for Sahiwal is as described in Chapter III and
further detailed in Chapter VI. It warrants repeating that institutional capacity - human, technical
and financial - and the full institutionalization of all related policies, plans, regulations and
procedures lies at the heart of an ultimately resilient, sustainable, inclusive and competitive city.
OO. Urban Design & Green

122. In addition to the various specific land use elements, infrastructure and facilities required
in a city, there needs to be an integrating sense of character, human scale, and features that
make life pleasant for its inhabitants.
Creating a City Centre - A Sense of ‘Place’
123. Every city benefits from having a recognized centre, or focal points for residents and
visitors alike. Sahiwal has an historical advantage over many Punjab cities due to its historical
planning that created a centre and large green space in the central oval. However, the real
centre of activity has shifted to the east leaving this and several other once prominent spaces
less central. Greater use should be made of these assets as public amenities. The TMA office is
another obvious landmark that should be celebrated as the centre of governance for the city.
However, at the moment public access is denied except through a back alley creating
unwelcoming impression rather than the open, welcoming and participatory one that should be
promoted to citizens. There are also major intersection points that could be developed as more
meaningful focal points. PPP opportunities should be explored to develop and maintain these
landmarks.
Street Landscaping
124. Most of Sahiwal’s main streets would benefit from focusing on the improved quality of
pedestrian space, adding urban furniture including benches and lighting, sculptures, landscaping,
controlled street crossings, and limited and carefully managed street vendors. This will all be
integrated with improved vehicle traffic flow and public transit facilities. Figure V-39 presents a
conceptual illustration of a typical opportunity. The detailed planning, design and development of
new roads and Mahallahs should continue to incorporate public green space and pedestrian
consideration.
Green Space
125. Urban green space is essential for the health of the community and enjoyment of the city.
Sahiwal has an advantage over many cities with its historical green spaces. These are valued
heritage assets and should be taken full advantage of as open public spaces through
rehabilitation and added vegetation and public space facilities. Vegetation, as well as improving
the overall livability of the city serves as a significant cooling and air filtering mechanism.
Vegetation is also rainwater harvesting/flood control instrument as part of countering climate
change and increasing city’s resilience.
Heritage
126. Development needs to seek a balance with a place’s heritage; Sahiwal is surrounded
with history dating back thousands of years including the nearby ruins of Harappa. More recent
history includes a wealth of colonial area planning and buildings. The city has the opportunity to
develop a program of managing, protecting and promoting its valued heritage assets, physical,
cultural and natural.
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PP. Climate Change Resilience Strategy

127. A Climate-Change Resilience Strategy needs to be treated as an umbrella crosscutting
strategy rather than a separate initiative. It starts with the need for strong public awareness and
political commitment. The various contributing technical and administrative elements of the
Strategy are found in, and must be embedded in, every individual sector of the city’s planning
and development. Accepting the culture of climate-change resilience as an integral crosscutting
need is essential.
Sahiwal - Strategic Summary

128. The overall goal of Sahiwal’s ICDS is to promote a highly livable, economically strong city
equipped to manage the risks associated with climate change in a resilient, green manner while
strengthening its competitiveness regionally and nationally. This will be achieved in support of
Punjab’s recognition that urban centers are the engines of growth and must emphasize compact,
dense growth patterns to fulfill that role. Sahiwal has the opportunity to build on its existing agro-
processing industrial base, and its prime location along the new China-Pakistan Economic
Development Corridor. These goal will be achieved through strengthening the institutions
responsible for the city’s planning, development and management including the
institutionalization of stakeholder participation and an ICDS approach; improving the
infrastructure (transport, water, sanitation, SWM) required to support social well-being and
expanded, modern industry including development of dedicated industrial parks; and provide the
social amenities allowing all residents easy access to health, education and recreation facilities in
an improved urban environment.
129. Sahiwal has the vision of becoming a model of good urban planning for Punjab and the
nation. To achieve this will require economic growth by providing the investment environment
needed to attract valued entrepreneurial and technical skills. Increased attention must also be
paid to the pending impacts resulting from climate change already affecting some agricultural
crop types in Punjab and possibly leading to a re-structuring of the key agricultural industry.
Climate change is also going to impact traditional water supplies calling for some forward
thinking on alternatives. Through activities highlighted in the many sub-strategies above, Sahiwal
must work to increase its climate change resilience as well as its economic growth and
competiveness resilience. In order to achieve all of these goals improved municipal revenue
collection, budget management, development planning, control implementation and transparency
are required. A significant amount of new growth will be accomplished through urban
regeneration, redevelopment and densification of the city’s existing built-up areas. Consideration
will be given to establishing a special purpose Urban Regeneration entity to manage this
complex process.
Implementation Plan - ICDS
QQ. Integration
130. Implementation of the Sahiwal Integrated City Development Strategy is an on-going
process. It begins with institutionalization of the concept and process; develops the necessary
capacity at all levels; and proceeds with a prioritized and integrated series of specific sector
initiatives beginning with more detailed physical planning and financial management. Throughout
is the need for continuous top-down and down-up coordination and dialogue, particularly
between Province, District, City and residents. Also essential are robust and on-going IEC and
Monitoring and Evaluation Programs. Together, these provide the mechanisms for mid-course
correction to individual projects and ensures a continuous participation process by all
stakeholders. Figure V-40 sets out an indicative Short, Medium and Long-term ICDS
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Implementation Plan, subject to continuous monitoring and revision. This should be read in
conjunction with the overall Implementation Plan presented in Chapter VIII.
RR. ICDS and Supporting Plans
131. The ICDS is not a replacement for the traditional detailed land use and zoning maps
theoretically used to control urban development. A comment concern of municipal officials used
to the historic processes is that the ICDS may contradict their present land use regulations. The
point of the ICDS is to instill a more inclusive, strategic approach to all aspects of urban
development. Existing land use plans, detailed plans and development controls may not support
the integrated ICDS approach and will have to be revised accordingly with the accompanying
paradigm shift. This will likely create some discomfort and concern amongst long-term civil
employees and require some training and transition time.
SS. Notional Urban Budget
132. To enable the implementation of a first set of the softer urban improvements discussed
above including street management and enhancement, street pedestrianization, and public green
space development, a budget of USD 4 million has been notionally ring fenced. Because of the
ICDS process occurring concurrent to the PFS process, no MTIIP for this allocation has been
prepared. This allocation will be detailed during the PPTA. The allocation has also been noted in
Chapter I. The detailed selection and design of specific soft components will be determined
through further participation with the city, residents and government officials at a later stage, but
it is important to ensure that the amount is allocated for and duly considered at the PFS
budgeting stage here.
page 174
REG-8556
CHAPTER VI
Sector Assessment, Strategies and

Roadmaps
April 2016
project’s design
Urban Infrastructure Investment Program Chapter VI
and Pre-Feasibility Study of Sahiwal, Pakistan Sector Assessment, Strategies and Roadmaps
Introduction to the MTIIPs

1. Infrastructure investment is a key ingredient of successful growth and development in
developing countries. Improved transport infrastructure – roads, ports, airports and rail –
facilitates productive investment in agriculture and industry by connecting producers to markets.
More reliable and lower cost power, telecoms, water and other infrastructure services lower
producers’ costs and thereby raise producers’ incomes and reduce poverty directly.
2. As noted in Chapter II and Chapter III, in Punjab there is far too little infrastructure
investment. The profitability of production for export and domestic consumption is held back by
the high cost and poor quality of infrastructure services. This in turn is contributing to the low
levels of investment in agriculture and agribusiness ventures in the rural Punjab economy as well
as in key niche sectors where cities like Sahiwal and Sialkot have demonstrated a comparative
advantage.
3. Over the past 40 years, government-led efforts to build a stronger physical infrastructure
in Punjab have been met with varying results and marginal successes. Despite major support
from donors, in many parts of Pakistan, infrastructure services in support of productive city
activities have not kept pace with urban needs or industrial demands. Public capital has been
poorly allocated, badly spent and many of the assets have deteriorated without adequate
ongoing maintenance.
4. There are four key problem areas that have plagued infrastructure investment in the past.
These have been addressed by the proposed MTIIPs that follow in this Chapter.
4.1. Co-ordination problems: The inter-dependency of investments along long

supply chains causes real problems for investments in each segment of the chain.
Investments in urban services require complementary packages of all urban utilities,
rather than investments in one sector or another. The entire portfolio of urban services
needs to be improved if cities like Sahiwal and Sialkot are to be rendered more
competitive. If each link in the production-supply chain is successfully delivered on time,
then all links are predicted to be productive. However, if just one link fails then investment
in each of the links will fail.
4.2. Front-end costs and risks: Most infrastructure investments require a

considerable amount of time and managerial commitment to pre-development activities
before major investments can be financed. Indeed, it is for this reason that the PFS
process is being embarked upon by GoPb. Before financing can be arranged agreements
with governments, regulators and management organizations (as proposed herein) must
be negotiated and agreed. ‘Front- end’ project development activities during this ‘pre-
financial close’ periods such as those proposed in this PFS are subject to very high risk
for several reasons. First, because of the inter-dependency problem noted above. The
timing for reaching financial close on the infrastructure investment is often reliant on
developments in a number of complementary but separate investments. Second,
because the investor is captive to actions which the government and/or the utility may or
may not take late in the pre-development process.
4.3. Legacy issues: Poor macro-economic and sector policies in the past have left a
legacy, which affects behavior by the Municipal Corporations/Cities, even if Provincial
government policies have subsequently improved. That legacy includes the perception of
high political and regulatory risks associated with certain services (i.e.: Sewage
Treatment) The result of this is that: (i) it deters corporate investment because
organizations fear a change in the ‘rules of the game’ and regulations after capital has
page 177
been sunk; (ii) raises the cost of finance and therefore the charges that users are willing
to or will be forced to bear, often to levels that are unaffordable by poor urban residents;
and (iii) shortens the tenor of loans that lenders are willing to make, when what is needed
in municipal infrastructure is long term finance coupled with adequate cash-flow to
ensure a maintenance regime . Another legacy of poor macro-economic policies in the
past is often high local currency real interest rates which discourage borrowing in local
currency and cause investors to choose to finance in dollar terms, thereby increasing
exchange rate risks borne by Municipalities and GoPb and ultimately by users.
4.4. Incentives and sustainability: When anything is free people want as much of it
as they can get. There is no rationing according to the value to the recipient. In the past a
lot of development assistance in municipal infrastructure was provided in the form of
grants or loans, which did not need to be repaid. One entirely predictable result is that the
allocation of urban services was not made according to the value attributed to the
resource by the beneficiary, and a great deal of the development finance proved to be
unproductive and was wasted. A second equally predictable result is that grant supported
activities often turned out to be unsustainable – as soon as the grant support ended the
activity degraded because there was no longer the money to sustain it. Many grand
infrastructure projects in Pakistan and elsewhere built over the past several decades
have suffered this fate. The third entirely predictable result was corruption. Those with
the power to hand out money that does not have to be repaid will always be subject to
the temptation to allocate it according to who makes it most worth their while. The
distortions induced by provision of grant funding need to be addressed in the PICIIP
taking account of the affordability issues noted above.
5. The program of investments proposed herein therefore recommended a multi-pronged

approach improving the urban condition in Sahiwal. This includes both technical assistance and
investment support. Overall the PICIIP proposes to use assistance to city and Provincial
government that will aim to tackle the bottlenecks associated with service delivery bottlenecks in
intermediate cities that cause further bottlenecks. The methods of intervention proposed in this
Chapter include technical assistance services; capacity building and training; knowledge sharing
platforms: and analytical research and dissemination. This will not be tied to the capital
investments made by GoPb. The approach to which the package of investments has been
determined is reiterated again in Figure VI-1 overleaf.
page 178
Figure VI-1: Approach to Determining the MTIIP Package of Investments Proposed
INADEQUATE CITY ENABLING ENVIRONMENT INNOVATION &

RESOURCES
governance arrangements and drivers, CONSULTATION
including regulatory framework, socio- alternative financial and delivery
finance, appropriate technology, economic, financial & policy models and priorities set by key
planning & engineering issues implications constituents & stakeholders
ICDS and CRVA Assessments

Review and Prioritise
Stakeholder Consultation: Improved Competitiveness via Priority Setting & Partnerships

Stakeholder Priorites
Rapid Appraisal Underlying Causes
What are the problems? Who is affected and how? Why do problems occur?
What are the priority sector areas?
DETERMINING APPROPRIATE URBAN SOLUTIONS
PRIORITIZATION : What is Important?

REVIEW, DESIGN AND PREPARATION OF INVESTMENT PACKAGES (MTIIPs) LIKELY TO LEVER GREATEST
CITY-LEVEL BENEFITS IN INCLUSION, RESILIENCE and COMPETETIVENESS
Design MTIIP Sub Projects for ADB Financing
Creating Rapid Consultation Mechanisms (RUAs)

Verifying Agreed Priorities with Cities, GoPb, Private & Third Sectors
SAHIWAL
Preparation of sub project investments resulting from critical analyses of Intermediate cities
based on:
vision of the city, Existing and emerging urban strategies
types of longer-term Investments required for ensuring competitiveness, inclusion, and
resilience
priority PICIIP investments & policy reforms in support of the above will change the landscape
Improved Ability to Plan,

Good Governanvce and Manage, Finance and
Improved Services and
Municipal Management Enable Desireable
Service Options
Effeciencies Economic and Social
Development
TOWARDS IMPROVED REGIONAL and NATIONAL COMPETITIVENESS

Improved Awareness and Sensitivity to Role of Sahiwal in National and Regional Economy
Promotion of Intermediate Cities in Punjab for Cities as Engines of Growth
Protection from Vulnerability and Poverty
Opportunities for Protection from Adverse Effects of Climate Change / Adaptation to Climatic Irregularities
page 179
Sahiwal Institutions and Governance
A. Theoretical-Conceptual Framework and Historical Lessons

Decentralization: Lessons and Challenges
6. Decentralization refers to moving functions done nationally or regionally to a more local

form of government or perhaps from a federal level of government to a state level of government
in countries that adopt a federal system. The reasons for adopting this policy vary from country to
country. In Pakistan from 2000-2008 decentralization was used to consolidate political power at
the local level as a counterweight to opposition forces at the centre. Notwithstanding this, some
argued that the drive to decentralize and devolve government in Pakistan at the time was unlike
previous attempts. A greater effort was exerted in ensuring the policy was implemented but its
success remained questionable. Now that new local government reforms are being ushered
across Pakistan this will shape the policy environment in which PICIIP will be implemented in
Sahiwal and Sialkot.
International Perspectives
7. Decentralization is often referred to as a pathway to better accountability, citizen

participation, effective resource management and improved service delivery. 76 The UK
Government’s work on voice, and accountability in developing countries finds that periodic
elections are often the sole means of citizen participation and accountability. This is inadequate
because often local elections have a tendency to be dominated by political elites and ethnic/tribal
loyalties. Evidence suggests a role for civil society to supplement local elections as a means of
ensuring participation and accountability.77 For instance, the Brazilian municipal experience of
participatory budgeting is a successful example of citizen participation. Though not without its
own shortcomings, it at least presents an opportunity for those on the margins of local
government decision-making to become part of the process.
8. Countries that have embarked on decentralization face significant capacity issues

particularly in resource management. Most developing countries face problems with public
expenditure management (PEM). Traditional input based budgets are unrealistic with inflated
revenue forecasts, weak financial management and accounting skills.78 This is true of TMAs such
as Sahiwal and Sialkot. Investment in the capacity to manage resources more effectively should
be a key aim of PICIIP. Ultimately decentralization is about service delivery. International
agencies view decentralization as key to improved service delivery and essential to achieving the
Sustainable Development Goals and poverty reduction. This is premised on the belief that
decision-making is closer to service beneficiaries. However, evidence from a number of studies
from several countries including Pakistan shows impact from decentralization to be mixed.79 In
Pakistan political devolution and administrative decentralization are thought to have produced
better results than the last round of fiscal decentralization measures. However, evidence of
service effectiveness remains questionable.
9. Other work on the impact of decentralization on poverty has reached similar conclusions.
An OECD-DAC review of twenty country studies concluded that the impact of decentralization on
poverty was contingent on policy makers ensuring that devolution was pro-poor. It also
concluded, where states were failing to fulfil their basic functions, that decentralization could be
76
Local Democracy and the Challenges of Decentralizing the State: An International Perspective, Local
Government Studies 35,2 November 2006.
77
Decentralization and Local Governance: Comparative International Perspectives and the Pakistan Case;
Background Paper for the Commonwealth Secretariat, 2006
78
Ibid
79
J. Ojendal & A. Dellnas: The Imperatives of Good Local Governance: Challenges for the Next Decade of
Decentralization, UN University Press 2013
page 180
counter-productive. Where countries were fulfilling their responsibilities decentralization was a

powerful tool for poverty reduction, improving the representation of the poor and better targeting
of service delivery.80 These findings resonate with Pakistan’s experience of decentralization and
devolution in the past.
Pakistan’s Experience
10. In 2000 Pakistan’s local government reforms were based on three key elements; fiscal
decentralization, administrative decentralization and political devolution. The aim being to
improve service delivery and planning by elected governments, through decentralization. In
essence the bureaucracy was placed under the authority of elected governments headed by
Nazims (mayors) at the district, Tehsil/town (sub-divisional) and union council levels. District
elections at the union council level and reservation of seats for minorities and women provided
statutory representation for those traditionally ignored in local politics. While the arrangements
provided an opportunity for improved service delivery, policy and structural flaws undermined the
potential to deliver.
11. Several years after implementation its impact was viewed as patchy. 81 Structural
impediments undermined the policy. Some of the most significant weaknesses included the lack
of decentralization of federal powers (such as taxation) to provincial governments. Secondly, the
lack of constitutional protection fed the perception – this policy is temporary. Thirdly, there was
no significant increase in fiscal powers for local governments. Large districts were heavily
dependent on provincial transfers for operational funds. These shortcomings undermined
confidence in the policy and characterized provincial-local relations. In key policy areas such as
HR (staffing, posting and transfers) decisions are made by the provincial government. This
presented challenges at the local level with respect to staffing. Senior members of the
administration cited their lack of enthusiasm for the policy on the basis that it lacked legal cover.
12. Previous efforts to implement local government reforms showed resistance among the
bureaucracy and politicians. Firstly, those reforms were part of the wider strategy to centralize
power in the hands of the military. Secondly, holding local government elections on a non-party
basis excluded political parties from active involvement, and thirdly competition from newly
elected mayors (Nazims) to provincial politicians. The lack of political support weakened the
ability of districts, towns and Tehsil governments to supply better services. Despite these gaps
there were successes, which should be drawn upon for the current round of reforms.
13. There were notable successes in the 2001-2008 reforms. 82 It led to political
empowerment, fostered greater inclusiveness (increasing women’s participation) and provided
significant platform for community involvement. More importantly, local governments were given
greater social service planning autonomy. Decentralization also led to predictability in the flow of
funds, incentivized equitable distribution and more targeted social sector spending. In the last
decade of local government change, TMAs have been considered the weak link in the
governance chain. Responsibility for water supply and sanitation services, traditionally a function
of TMAs remained unclear in Pakistan. In Punjab most large-scale municipal water supply
schemes are run by independent water and sanitation agencies (WASA). Decentralization and
devolution made little difference to their operations. In Punjab and other provinces, provincial
governments reclaimed control over delivery of rural water supply on the basis of inadequate
TMA capacity and service provision.
14. Pakistan’s experience of decentralization echoed that of other developing countries.

Evidence points to impact being mixed. No single factor determines whether decentralization as
80
Decentralization and Poverty in Developing Countries: Exploring the Impact: OECD, Working Paper No:
236 August 2004
81
Morianni, F (2007): Is Decentralization helping to make Social Services work for the Poor? ADB Forum on
Inclusive Growth and Poverty Reduction in the New Asia Pacific
82
Naqvi, K and Robinson M (2004) Pakistan Drivers of Change: Synthesis and Policy Implications,
Department for International Development (DFID) UK
page 181
a policy instrument will be successful. Findings from Pakistan point to notable successes but also
deep-rooted challenges. These will come to the fore again as Pakistan moves in the direction of
resurrecting local government reforms.
15. The above issues are summarized in the below in Figure VI-2 Government
problem/solution tree. These have been previously presented in the Mid Term Report and the
RUA section of this Report.
Figure VI-2: Government Solution Tree
Performance, Incentives Maintenance, Competitive pay and benefits,

Operation and
and Accountability rehabilitation and recycling Open market recruitment,
maintenance efficiency
IMPACTS Private sector
Better environment
Sustainability Capacity development
participation and Improved coverage and Consumer education and
Improvement sanitation
investment supply awareness
CORE SOLUTION IMPROVED GOVERNANCE
Tariffs and user fee for full

Regulatory mechanism Transparent Policies and Civil Society and
CAUSES and effective body Procedures
cost recovery and
Consumer involvement
improvement
New Public Management (NPM)
16. NPM is described as a collective term for a set of management techniques and practices
mostly in origin from the private sector for use in the public sector.83 It has emerged as body of
managerial thought based on ideas generated in the private sector. With origins in the UK, NPM
seeks to replace traditional bureaucracies with market based public administration and
managerialism. Since 1980’s and 90’s NPM entrenched in theory has been advanced in many
developed countries (UK, Australia, New Zealand, USA and Singapore) and in the last decade
across developing countries.
17. NPM emphasizes a cultural shift in public administration from an instructive mode of work
to performance, outputs and the three E’s of – efficiency, economy and effectiveness.84 Reforms
initiated in the UK under the Thatcher Government concentrated on moving government from
being ‘administered’ to being ‘managed’. A similar agenda was deployed in the USA (customer
focus, more for less) with international organizations such as the OECD, World Bank and IMF
following suit. The imperatives for NPM reform are theoretically underpinned. Critics of the state
and the role of the public sector attacked the traditional Weberian model – the bureaucracy
viewed as a liability i.e. lack of responsiveness, expensive to maintain and unable to deliver
services effectively.85 This attack on the public sector was grounded in new economic thinking
espoused by the principal agent, principal-choice theories. Notions have questioned whether
traditional bureaucracies characterized by self-interest, poor incentives and lack of monitoring
could yield better performance or accountability. However, NPM is not without criticism.
18. Some have suggested that NPM is a passing fad, undermining accountability and failing
to improve services or efficiency. 86 However, other schools of thought suggest internal and
external drivers must be considered before assessing the impact of NPM based reforms and
83
McLaughlin K Osborne, S and Febrile E (2006) New Public Management: Trends and Future Prospects.
Rutledge
84
A. E. Sarkar (2006) New Public Management in Developing Countries: An Analysis of Success and
Failure, International Journal of Public Sector Management
85
McLaughlin K, Osborne S and Febrile, E (2006) New Public Management: Trends and Future Prospects.
Rutledge
86
Ibid
page 182
these will vary from country to country. Notwithstanding the debate, on its value, some lament
that NPM puts a particular emphasis on seeking to solve problems to do with governance.
International Perspectives: Relevance for Sahiwal TMA
19. The polemics of NPM continue. Some view NPM in developing countries with scepticism
while others make the point that it offers important lessons and successes, especially from
Africa. Where management tools have been provided for operational efficiency the results have
been significant. In Pakistan, NPM prescriptions were successfully attempted in Faisalabad
(2004-2008) under the DFID Strengthening Decentralized Local Government in Faisalabad
District Project. Key elements focused on strengthening performance and management capability
at operational and service delivery level. However, challenges remained and it was unclear if
service effectiveness was ever achieved. The projects reform program was halted and city and
provincial authorities failed to continue with the change management program.
20. Other experiences suggest caution with NPM based reforms in developing countries.
Lamenting that NPM is in its infancy in many developing countries and it is too early to arrive at
any firm conclusions. Efforts to increase citizen participation have been widespread as part of
improving the quality of public services through better response mechanisms. In Brazil, Jordan,
Uganda and Pakistan initiatives such as Public Complaints Bureau and Citizen Charters have
been adopted following the UK model. There is however, suggestive evidence from at least two
countries that these programs may not ultimately translate into service delivery improvements.
21. Africa’s experience of NPM public sector reforms appears more positive. Efforts have
targeted inefficient state bureaucracies through public sector management reforms. These
reforms embraced privatization, capacity building, managerial efficiency and accountability. Many
countries including Angola, Botswana, Ghana, Kenya and South Africa have undergone
privatization programs, resulting in a fall in the number of public enterprises in Africa by 37% in
the last decade.87 Training is viewed as integral to build capacity for reform. Many countries have
institutes dedicated to public administration or training their civil servants. Botswana for example
set up a specialized training centre in productivity and quality improvement.
22. Other reforms have centered on improving efficiency, employment measures and
accountability. In Botswana, Uganda and South Africa performance management systems aimed
at improving productivity, and quality of public services have been introduced. This has included
making management more effective through better human and financial resource management.
Public service managers have been provided with better management information systems, inter-
departmental communication systems and information technology.88 Similar reforms have been
attempted in Pakistan in the last 15 years with the support of different international agencies
(ADB, DFID and CIDA). The ADB provided a large assistance program to support
decentralization efforts from 2004 – 2008. Currently, the World Bank is also supporting the
Punjab Cities Governance Improvement Project by strengthening resource planning, fiscal
accountability, public transparency and procurement practices across 5 large cities (Faisalabad,
Rawalpindi, Gujranwala, Multan and Lahore). These efforts demonstrate an appetite to transform
public sector management practices in Pakistan.
23. The Government of Punjab’s reform initiatives with the help of international agencies and
the ADB PICIIP are theoretically underpinned by concepts of organizational change, new public
management and decentralization as a policy context. PICIIP will be grappling with attempts to
transform traditional public administrations i.e. TMAs in Sahiwal and Sialkot, in the Weberian
mold, into modern public sector agencies governed by a new set of dimensions and principles. In
Pakistan, like elsewhere in the developing world, implementing decentralization policies is
controversial. Local governments struggle to come to terms with the pace of change needed to
87
Sharma, C K (2007) New Public Management Challenges and Constrains: Botswana -University of
Botswana
88
Rosta, M (2011) What Makes New Public Management Reforms Successful? An Institutional Analysis,
Corvinus University of Budapest, Hungry
page 183
deliver improved services and development impacts. Under-developed capacity and expertise
undermine reforms.
24. There are several lessons for policy makers and practitioners alike when devising and
implementing municipal reforms as part of decentralization policies. These lessons draw on
Pakistan’s previous attempts to improve local governance and international perspectives.
Provincial dynamics is an important consideration for districts, Tehsils and towns wishing to
embark on municipal reform. Provincial governments have continued to exercise command and
control over important policy areas like human resource and public expenditure management
including operational matters. In the new local government elections and structures, it is
imperative that cities are given the freedom to liberate themselves and fulfill their potential as
modern public sector organizations when they can set their own policies and develop indigenous
performance management systems with appropriate structures. Once cities/towns have the
power to control front line activities, effective service delivery may materialize.
B. Relevant Institutions
25. The bureaucratic machinery of the province is headed by a Chief Secretary who
coordinates and supervises functions of various Departments headed by Departmental
Secretaries except for Planning and Development which is headed by the Chairman Planning
and Development Board. The Secretaries are assisted by Additional Secretaries, Deputy
Secretaries, Section Officers and support staff. The Departments have attached departments
and autonomous or semi-autonomous bodies to look after various functions. The Province is
divided into 9 divisions with Sahiwal Division being the newest and a total of 36 districts. Sahiwal
division comprises 3 districts and 7 Tehsils.
26. The overall institutional landscape of Punjab is reflected in Figure VI-3 and VI-4 focusing
on provincial, divisional, district and Tehsil level departments / institutions responsible for solid
waste, water and wastewater, sanitation, urban transport and infrastructure development. Key
departments are discussed in the subsequent section.
Provincial Level
(i) Planning and Development Board

27. The Government of Punjab’s Planning & Development Department is the principal
planning organization at the Provincial level. It is headed by a Chairman. It is responsible for the
coordination and monitoring of the overall development plans of the Province. It coordinates and
monitors the programs prepared by the Provincial departments concerned with provincial
development. The department also prepares an overall provincial economic growth strategy,
urban sector plan, medium term development framework, the annual development program, and
public sector development programs (PSDP). It acts as a catalyst between different departments
in order to improve the pace and quality of economic development in the Province.
(ii) The Urban Unit

28. The Urban Unit was established in 2006, as a Project Management Unit (PMU) of the
Planning and Development department under the Government of Punjab. In 2012, it underwent
significant transformation and converted into an independent private limited company, registered
with the Securities and Exchange Commission of Pakistan (SECP). The objective of The Urban
Unit is to provide guidance and support to Government departments in developing urban sector
reforms and to coordinate the implementation of the reform program.
29. Thematic areas of coverage include GIS, urban planning and design, solid waste
management, water and sanitation, urban transport, Municipal finance and urban economics,
information and communication technology, management information system, capacity
development and social and environment safeguards, and monitoring and evaluation (M&E). It is
an important partner and interlocutor for PICIIP activities in Sahiwal and Sialkot.
page 184
Figure VI-3: Existing Institutional Framework of Sahiwal

Chief Secretary Punjab
Local Government and Housing, Urban Development Communication & Works Industries, Commerce and
Planning and Development & Public Health Engineering Finance Environment Protection Transport Department Excise & Taxation Board of Revenue Home Department
Community Development (C&W) Investment
Department (HUD & PHED)
Provincial Level
The Urban Unit Punjab Local Government Other Provincial Departments Police
Board Punjab Housing and Town Agriculture, Auqaf and Religious Affairs, Chief
Transport Planning Unit
Planning Agency (PHATA)
Minister’s Inspection Team, Cooperatives, Energy,
Provincial Local Government Food, Forestry, Wildlife and Fisheries, Health, Higher
Commission Education, Human Rights and Minorities Affairs,
Public Health Engineering Provincial Transport
Department (PHED) Authority Information and Culture, Labour and Human
The Walled City of Lahore
Resource, Law and Parliamentary Affairs, Literacy
Punjab Saaf Pani Company Authority
and Non Formal Basic Education, Livestock and Dairy
(PSPC) Development, Management and Professional
Bahawalpur Development
Authority Development , Mines and Minerals, Population
Welfare, Public Prosecution, School Education,
Punjab Municipal Development Services and General Administration, Social Welfare
Fund Company and Bait-ul-Maal, Special Education, Women
Development, Youth Affairs, Sports, Archeology &
DG Local Government and Punjab Local Government Tourism, Zakat and Ushr Irrigation
Community Development Academy, Lalamusa
Commissioner Sahiwal
Divisional Level
Division
Divisional Director LG&CD

Sahiwal Waste Regional Police Officer
Cattle Market Management Additional Commissioner Additional Commissioner Additional Commissioner Additional Commissioner Management Company
Company Sahiwal Division Coordination Development and Finance Revenue Construction Chief Engineer
District Coordination
District Government Officer / District Collector of
Sahiwal 1. Okara
Assistant Director Local )
2. Pakpatan DSP Traffic Police
Government (ADLG
District Level
District Coordination
Officer / District Collector
District Regional Transport

Authority (DRTA)
Executive District Officer Executive District Officer Executive District Officer Executive District Officer Executive District Officer Executive District Officer Additional District
Health Education Finance and Planning Community Development Agriculture Roads Collector (ADC)
District Officer
District Officer District Officer Excise District Officer District Officer District Officer District Officer
Enterprise and District Officer Roads
Finance and Budget and Taxation Planning Accounts Building Environment
Investment Promotion
Tehsil Municipal
Administration Sahiwal
Tehsil Level
Deputy District Officer Deputy District Officer Deputy District Officer Assistant
Roads Building Environment Commissioner (AC)
Tehsil Municipal Officer Manager Operations
Sahiwal Sahiwal
Assistant Manager
Tehsil Officer Infrastructure Operations
Tehsil Officer Finance Tehsil Officer Regulation Tehsil Officer P&C
and Services (TO I&S)
UC Level
Union Council Administration

(at each Union Council)
page 185
Figure VI-4: Institutional Framework of Sahiwal in The Punjab LGA 2013
Chief Secretary Punjab
Local Government and Housing, Urban Development Board of Revenue Industries, Commerce and Communication & Works
Planning and Development & Public Health Engineering Finance Transport Department Excise & Taxation Environment Protection Home Department
Community Development Investment (C&W)
Department (HUD & PHED)
Provincial Level
The Urban Unit Punjab Local Government

Other Provincial Departments Police
Board Punjab Housing and Town
Transport Planning Unit Agriculture, Auqaf and Religious Affairs, Chief
Planning Agency (PHATA)
Provincial Local Government
Minister’s Inspection Team, Cooperatives, Energy,
Commission Food, Forestry, Wildlife and Fisheries, Health, Higher
Public Health Engineering Provincial Transport Education, Human Rights and Minorities Affairs,
The Walled City of Lahore Department (PHED) Authority Information and Culture, Labour and Human
Authority Resource, Law and Parliamentary Affairs, Literacy
Punjab Saaf Pani Company and Non Formal Basic Education, Livestock and Dairy
(PSPC) Bahawalpur Development Development, Management and Professional
Authority Development , Mines and Minerals, Population
Welfare, Public Prosecution, School Education,
Punjab Municipal Development Services and General Administration, Social Welfare
Fund Company and Bait-ul-Maal, Special Education, Women
Development, Youth Affairs, Sports, Archeology &
Punjab Local Government DG Local Government and
Tourism, Zakat and Ushr Irrigation
Academy, Lalamusa Community Development
Divisional Level
Commissioner Sahiwal
Division Regional Police Officer
Sahiwal Waste
Management Company
Divisional Director LG&CD Cattle Market Management Additional Commissioner Additional Commissioner Additional Commissioner Additional Commissioner
Chief Engineer
Company Sahiwal Division Development and Finance Coordination Revenue Construction
Assistant Director Local )

Government (ADLG
District Collector DSP Traffic Police

Sahiwal
Municipal Corporation
Sahiwal
Additional District
District Regional Transport Collector (ADC)
Chief Officer Sahiwal
Authority (DRTA)
Assistant
Commissioner (AC)
Spatial plans, master plans, land use Water sources and reservoirs , water
Manager Operations Budget and planning, properties, Regulation of dangerous and
control, zoning, express ways, fly- supply, sanitation, solid waste public transport, mass transit, traffic
Sahiwal assets, internal and external audit, offensive articles and trades, licenses,
overs, bridges, roads, under passes, collection and sanitary disposal of planning, engineering and
taxes, fees, rates, rents, tolls, permits, grant permission,
District Level
streets, lighting, parks, playgrounds, solid, liquid, industrial and hospital management, parking places, stands
charges, fines and penalties, small encroachments, enforcement,
billboards, hoardings, firefighting, wastes, landfill site and recycling and and terminals,
and medium size enterprises, environment
Assistant Manager slaughterhouses treatment plants District Education Authority District Health Authority
Operations
Municipal Committee
Urban Union Councils Chichawatni
Urban Area Of Sahiwal District
District Council
Sahiwal
Rural Union Council
Rural Area of Sahiwal District
page 186
(iii) Local Government and Community Development (LG&CD)

The Local Government and Community Development (LG&CD) department is the administrative
department of local governments in Punjab and has a supervisory role to oversee local
governments perform their functions within the provincial framework and adhere to the federal
and provincial laws. The Department is assigned with the responsibility to implement Punjab
Local Government Ordinance (PLGO) 2001 and its successor the Punjab Local Government Act
2013.
30. The department is also responsible for the formulation of public policy and its
promulgation, updating of laws, rules and guidelines for the working of local government
department, coordination with Federal/Provincial Government departments and allied agencies
as well as all the three tiers of local governments on the issues pertaining to the local
government system.
31. The Department has 6 attached departments: Punjab Local Government Board,
Bahawalpur Development Authority, Provincial Local Government Commission, Punjab Municipal
Development Fund Company, The Walled City of Lahore Authority, and Directorate General
Local Government and Community Development
32. The Punjab Local Government board is responsible for the service matters of members
of Local Council Staff (LCS) and TMA cadre, postings/transfers of all officers in the TMAs,
conduct disciplinary proceedings against LCS/TMA cadre officers, recruitment by the
Government on the basis of written examination conducted by the PLGB, maintenance of
pension fund, and maintenance of accounts received from Local Governments.
(iv) Housing, Urban Development and Public Health Engineering

33. The Housing and Physical Planning Department (H&PP) was created in 1972 going
through frequent changes and finally given the name of Housing, Urban Development & Public
Health Engineering Department (HUD&PHED) to depict Urban Development Authorities and
Public Health Engineering Department as its main organs.
34. The Public Health Engineering Department (PHED) is a sub department of Housing,
Urban Development and Public Health Engineering which plans, designs and implements water
and sanitation facilities in rural and urban areas, except areas under the jurisdiction of WASAs.
Allocations for rural areas and some large projects are directly given to PHED, which is the
planning and executing agency for most WSS investments. PHED’s Technical and Community
Development staff provides technical and management support to Community Based
Organizations (CBOs) who are operating & maintaining functional rural water supply schemes on
self-help and self-financing basis89. Punjab Housing and Town Planning Agency (PHATA),
Development Authorities, Water and Sanitation Agencies (WASAs), Traffic Engineering and
Transport Planning Agency (TEPA), and Parks & Horticulture Authorities (PHA) are also come
under the administrative control of Housing, Urban Development & Public Health Engineering
Department (HUD&PHED).
(v) Punjab Saaf Pani Company (PSPC)

35. The Punjab Saaf Pani Company (PSPC) was incorporated in March 2014 under Section
42 of the Companies Ordinance 1984 to improve water supply in terms of, both, access and
quality of drinking water. It is mandated to conceive, plan, design, execute and manage projects
for provision of safe drinking water to the communities living in rural and peri-urban areas of the
province.
36. It is currently preparing an integrated Master Plan for sustainable safe drinking water
solutions. This brings PSPC to the challenge of institutional redesigning of the entire water
supply sector in rural and peri-urban areas, which are not covered by WASAs in metro cities, or
by TMAs in small and medium-sized towns.
89
Investing Wisely Sanitation and Water Saving lives; Sanitation and Water for All (SWA) PAKISTAN Sector
Status Report 2012
Page 187
(vi) The Punjab Transport Department

37. The Punjab Transport Department is responsible for public transport policy and planning
in the Province. It was established in 1987 under the West Pakistan Motor Vehicles Ordinance
1965. The current set-up of the transport department includes the secretariat, attached
departments, Transport Planning Unit (TPU) and Lahore Transport Company. The Transport
Planning Unit (TPU) is a technical body, which develops policy and oversees transport planning,
and implementation of plans, throughout the province.
38. The department is responsible for the licensing of public transport services through the
Provincial Transport Authority (PTA). It is also responsible for the implementation of government
policies for provision of affordable, comfortable and efficient transport services across the
province, preparation and implementation of development plans, initiation of special public
transport initiatives like subsidies, environment friendly transport, and fixation and regulation of
public transport fares. It was instrumental in launching the Lahore BRT project and subsequently
the Rawalpindi-Islamabad Metro Bus Project.
(vii) Communications and Works Department

39. This provincial Department was set up in 1962 in compliance with the West Pakistan
Highways Ordinance 1959. This department is responsible for planning, execution, development
and maintenance of all provincial roads and bridges through annual development program, sugar
cane cess and foreign assistance. With regard to highways, it carries out the following functions:
 Defining standards and specifications for various types of roads and bridges;
 Planning, designing, construction, maintenance, repairs and improvements of roads,
bridges, culverts, causeways and motorized launches;
 Administration of road and bridge tolls and the lease of land for filling/service stations;
 Road research and materials testing;
 Execution of works on behalf of other agencies; and
 Engineering training.
(viii) Environment Protection Department

40. Punjab is the first province where an Environmental Protection Agency (EPA) was
created in 1987. In 1996, a separate administrative unit, Environment Protection Department
(EPD) was formed under the Government of the Punjab. EPA Punjab was then detached from
the HP&EP Department and now works as functional unit under the EPD, Punjab.
41. Provincial Environment Protection Agency (EPA) is afforded statutory cover through the
Pakistan Environmental Protection Act (PEPA) 1997. According to PEPA Section 26 the Federal
Government may delegate any of its or of the Federal Agency's powers and functions to any
Provincial Government or any Government Agency. Moreover, the Provincial Government may
delegate any of its or of the Provincial Agency's powers to any Government Agency of such
Provincial Government or any local council or local authority in the Province.
42. Under section 16 of the 1997 PEPA the Federal Agency or any Provincial Agency that is
satisfied that the discharge of any waste in violation of the provisions of the Act is likely to occur
or occurring are empowered to direct the responsible person to take necessary measures. The
provincial EPAs have been empowered to issue an Environmental Protection Order to deal with
an actual or potential adverse environmental effect following a violation of the provisions of the
Act. This may include immediate stoppage of pollution, installation of pollution control devices
and action for disposal of waste and restoration of environment.
Divisional Level
(i) Commissioner Sahiwal Division

43. The Commissioner’s office was abolished along with that of the Deputy Commissioner at
the time of the introduction of the local government system in 2001. However, the Punjab
Government, in October 2008, revived the post of Divisional Commissioner and proposed
amendments to various laws to make it an effective office of coordination and control. The
Page 188
Commissioner at the Sahiwal division level is the prime agent of the Provincial Government,
overseeing the functions of line departments. The position is mainly responsible for three
important functions: coordination, magistracy and land revenue collection.
44. The Commissioner is supported by the District Collector (DC) and Additional DC for land
revenue and appellate matters at district and Tehsil level. The District Coordination Officer (DCO)
as the head of district administration also holds the additional post of District Collector in charge.
(ii) Cattle Market Management Company Sahiwal

45. Cattle Market Management Company Sahiwal is recently established at divisional level
under section 42 of Companies Ordinance 1984 to reform operation of cattle markets and their
management to discourage extortion, corruption, role of middlemen and official mafias. It will take
over the operations of the existing cattle markets from TMA Sahiwal and other local governments
in Sahiwal district and others districts in Sahiwal Division. In total there are nine cattle market
management companies being established in each division.
District Level
(i) Works and Services Department of District Government Sahiwal

46. Works and Services department of District Government Sahiwal, under the Executive
District Officer, is conceived as the main agency responsible for the management of the urban
street system. Most of its senior staff were transferred from the Government of Punjab
Communication and Works Department and, in many ways, remain in closer coordination with
the provincial agency. Headed by the EDO Works and Service (EDO W&S) who also carries the
title of Chief Engineer, is responsible for the construction, improvement and maintenance of all
roads and public buildings in Sahiwal City.
47. The EDO supervises the functions of three District Officers, who look after roads,
buildings and environment. As he and most of his senior road staff had been transferred to
CDGF from the Provincial Communications and Works Department, it is perhaps natural that
their professional links remain closer with the Government of Punjab C&W Department than with
the local agencies.
(ii) District Officer Roads

48. The district’s road department is the sub department of Works and Services department
of District Government Sahiwal, which is headed by District Officer Roads. This department is
responsible for the management of all primary roads in Sahiwal as well as the secondary roads
in other Tehsils of Sahiwal district. It is also responsible for the construction and maintenance of
roads, sidewalks and street lighting.
(iii) Environment Department of District Government Sahiwal

49. The district’s environment department is the sub department of Works and Services
department of District Government Sahiwal and is headed by the District Officer Environment.
The major functions of the department include:
49.1. To assist Provincial Environment Protection Agency (EPA) in the discharge of its
functions under the Pakistan Environment Protection Act, 1997
49.2. Regulate motor vehicles subject to the provision of the Pakistan Environment
Protection Act, 1997 and the rules and regulations made there under
49.3. To ensure, guide and assist the proponents of new projects in submission of
initial environmental examination (IEE)/ Environmental Impact Assessment (EIA)
to the DG Punjab EPA for approval.
49.4. Identify the needs for legislation in various sector of the environment
Page 189
49.5. Ensure the implementation of environment protection and preservation measures

in all development projects at the district level and to sensitize government
agencies on environmental issues
(iv) District Excise & Taxation

50. The District’s Excise and Taxation department is a sub department of the Finance and
Planning department of District Government Sahiwal which is headed by District Officer Excise &
Taxation. It is responsible for discharging motor vehicle registrations and payment of the token
tax for the entire district of Sahiwal. The motor vehicle registration and payment of the token tax
in Sahiwal is automated and computerized, along with all the other districts in Punjab province.
This is a considerable achievement and will offer lessons for municipal governments in Sahiwal,
as they need to adopt ‘systemic’ reforms.
(v) The Deputy Superintendent of Police (DSP) Traffic Police, Sahiwal District
51. The Deputy Superintendent of Police (DSP) Traffic Police, Sahiwal District comes under
the District Police Officer (DPO). The Traffic Police has the prime responsibility to regulate and
enforce the smooth flow of traffic and is also in-charge for the issuance of the traffic licenses for
the Sahiwal District. They are a key actor to effective traffic and transport management and as
such should be involved in developing transport sector strategies, plans and investments.
Tehsil Level
(i) Tehsil Municipal Administration Sahiwal

52. Since the local government reforms in 2001, several services previously the domain of
urban or rural local councils have been spatially and functionally integrated at the Tehsil level in
Sahiwal. Services provided by the Local Government and Community Development (LG&CD)
and the Housing, Urban Development (PHUD) and Public Health Engineering Department
(PHED) have been devolved from the Province to the Tehsil level. The devolution of these
departments has ensured that the provision of municipal services is now the sole functional
responsibility of the Tehsil Municipal Administration. Amongst them are key municipal services
such as water supply, sewerage, sanitation and drainage.
53. Tehsil Municipal Officer (TMO), the highest-ranking official in the Tehsil Municipal
Administration, heads the executive branch of the Tehsil government. The TMO performs
coordination functions similar to those of the DCO at the TMA level. The executive branch is
divided into 4 departments and a Tehsil Officer (TO) heads each of the departments (Finance,
Planning and Coordination, Regulation and Infrastructure and Services) to carry out its functions.
The Chief Officer and his staff are responsible for the Operation and Management of Water and
Sanitation services. Details are as follows;
53.1. Tehsil Officer Municipal Regulations is responsible for licensing, management of

municipal lands, estates, properties, facilities and enterprises and enforcement of
relevant municipal laws, rules and bye-laws.
53.2. Tehsil Officer Infrastructure and Services is responsible for water, sewerage,
drainage, sanitation, roads, other than Provincial and district roads, streets and street
lighting, firefighting and park services.
53.3. Tehsil Officer Planning is responsible for spatial planning and land use control;
building control; and coordination of development plans and projects with Union
Administration, Village Councils and other local governments.
53.4. Tehsil Officer Finance is responsible for budget, revenue and accounts.
(ii) Proposed Sahiwal Waste Management Company by Urban Unit

54. A Sahiwal Waste Management Company is proposed at regional/divisional level in
Sahiwal Division. The Tehsil Municipal Administrations of whole division will share their SWM
Page 190
resources with this regional entity, which will take responsibility for waste management on the
regional scale or for the whole Sahiwal Division. It will be registered with Securities and
Exchange Commission of Pakistan (SECP). A Services and Asset Management Agreement
(SAMA) will be signed between participating TMA and Sahiwal WMC. The company will have
specialized full time staff for smooth operations of the company. Management structure of
Sahiwal WMC is mentioned in Figure VI-5.
55. The Waste Management Company will be responsible for the provision of the following
services:
55.1. Formulation and execution of the solid waste management plans and strategies
55.2. Collection of the waste from the primary collection points of each of the Tehsil of
the Sahiwal Division and transferring it to the transfer station.
55.3. Transfer of the waste from Transfer stations to the Sahiwal Waste processing and
disposal station
55.4. Environmentally sound recycling and resource recovery from the MSW for the
revenue generation to make the solid waste management service sustainable.
55.5. Environment friendly disposal of the solid waste
55.6. Clearance of the vacant plots filled with solid waste
55.7. Capacity building of the TMAs through providing technical assistance.
Figure VI-5: Organizational setup of Sahiwal Waste Management Company

Board of Directors
Chairman BOD
Managing Director
Legal Advisor Personal Assistant
Company Secretary and

GM HR & Admin GM Operations GM P&C Chief Financial Officer
Manager Legal
Assistant Manager
Manager HR Manager Planning Manager Operations Manager Contract
Corporate Affairs Manager Accounts
Assistant Manager HR AM Planning AM Operations Assistant Manager

AM Contract
Accounts
Manager Segregation and TMA Chief Sanitary

Manager Admin Manager Procurement Manager Finance
Composting Inspector
Same staff composition for each

Assistant Manager AM Segregation and TMA (Sahiwal, Okara, Chichawatni, Assistant Manager
AM Procurement
Admin Composting Depalpur, Renala Khurd, Arifwala, Finance
Pakpattan) Total 21 Positions
Manager Landfill Site Manager Workshop
AM Landfill Site AM Workshop
Manager GiS Manager IT
AM GiS AM IT
Manager Marketing Manager Communication
AM Marketing AM Communication
Source: The Urban Unit PC-I Sahiwal Waste Management Company
Page 191
56. The capacity of solid waste wing of TMA’s will also be strengthening for
56.1. Door to door collection of the municipal waste
56.2. Assisting company in transferring waste from primary collection bins/containers to
the transportation vehicles.
56.3. Road sweeping and washing of the main roads,
57. The company will be managed through a board of directors, which will be represented by
all municipalities, government allied department and communities. Suggested board of directors
in PC-I for the company are mentioned below:
Chairman BOD Commissioner Sahiwal Division

Vice Chairman The Urban Unit
Director Planning & Development Department
Director Local Government
Director Chamber of Commerce
Director Lahore Waste Management Company
Director Punjab Municipal Development Fund Company (PMDFC)
Director University of the Punjab
(v) Key Institutional Changes in the Punjab Local Government Act 2013
58. On August 23, 2013, the Provincial Assembly passed the Punjab Local Government Act,
2013 (XVIII of 2013), by replacing the Punjab Local Government Ordinance, 2001, (XIII of 2001).
Later, on 13th September 2013, vide Notification No. SOR (LG) 39-20/2013, issued under sub-
section (3) of section 1 of the aforesaid Act, all previsions of the Act except section 154 thereof
dealing with repeal of 2001 Ordinance were enforced with immediate effect. This is an interesting
notification, which on paper implemented new Punjab Local Government Act 2013, but section
154 is yet to become operational, meaning thereby that the Punjab Local Government Ordinance
2001 is still operational.
59. The new legislation introduced several levels of Local Governments and Authorities at
local level in Sahiwal district, and also created urban rural divide. Some of the key changes are
mentioned below:
59.1. Abolishment of District Government Sahiwal
59.2. Abolishment of Tehsil Municipal Administration Sahiwal and Chichawatni
59.3. Creation of Municipal Corporation Sahiwal for urban area of Sahiwal City
59.4. Creation of Municipal Committee for urban area of Chichawatni
59.5. Creation of District Council for the rural area of Sahiwal District
59.6. Creation of District Education Authority for Sahiwal District
59.7. Creation of District Health Authority for Sahiwal District
60. A Mayor will be the executive head of the Municipal Corporation Sahiwal. The Chief
Officer (CO), the highest ranking official in the Municipal Corporation Sahiwal will head the
executive branch of the Municipal Corporation. The Chief Officer will coordinate and facilitate the
performance of functions assigned to the Municipal Corporation under the supervision of the
Mayor.
C. Political Accountability
Lack of representation
61. A fundamental characteristic of the current structure of governance at Tehsil level is the
lack of local representation. However, this is expected to change with new local government
elections earmarked for late 2015. Without a political head or town Nazim political accountability
and the principle of representation is undermined. In the previous local government system
between 2001- 2008 Nazims were elected through an electoral college consisting of directly
elected union councilors. While the system was skewed in favor of politicians serving the
interests of union councilors rather than the wider electorate some semblance of political
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accountability existed. A system was in place allowing albeit a narrow constituency to hold those
in public service to account for poor municipal performance.
62. New local government elections scheduled in December 2015 will take place on a party
basis and offer greater political accountability. Nazims at district and Tehsil level will be able to
hold executive heads of government departments responsible and accountable for appropriate
service provision and delivery. It remains to be seen to what extent this will be exerted in
practice. Adequate representation and a clear mechanism for accountability will be essential for
effective reform of the local government system. The challenge will be to establish a system that
avoids elite capture and reflects broad-based representation - where union councilors represent
a concentration of local elite interests, as is common across Pakistan.
Competing interests
63. The representative nature of local government will further be called into question by the
existence of powerful local political factions, in the shape of Sahiwal MPAs and MNAs all of
whom will have strong traditions of holding political office and whose origins will be from
established political families and connections. With strong grassroots support, they may claim to
have greater popular legitimacy than the Tehsil Nazims, as was commonly the issues across
Pakistan in the previous local government system. From 2001- 2008 with considerable
resources and leverage at their disposal, MNAs and MPAs posed a significant challenge to local
government. They often carried out parallel development functions or lobbying heavily for local
government spending to be channeled in a given direction. Such tensions led to a breakdown in
cooperation over development proposals to the extent that both district and Tehsil governments
often refused to provide infrastructure maintenance for projects funded through MPA/MNA
budgets.
64. The new system and reforms could also face similar challenges for competing resources
and development initiatives. It will be important in the new system for TMAs/Municipal
Corporations to navigate these in a way that there is greater cooperation and consensus
between political representatives and municipal executives about Sahiwal’s overall goals,
strategies and investment programs. It will be essential for all political and non-political agents to
plan accordingly. The troika of MCs, political representatives and private sector/citizens will need
to work together in Sahiwal to achieve success, especially if the culture of operating in such a
way is not common practice.
Accountability of decision-making
65. In spite of these challenges, a devolved system is nevertheless more accountable than a
non-devolved one. Previously town/Tehsil Nazims reported to their councils directly. They were
empowered to hold TMA staff to account and were given the responsibility for monitoring service
delivery, though it is widely acknowledged that this process was executed imperfectly and not
always in the spirit of the 2001 local government ordinance. Nevertheless, it gave ordinary
citizens a voice in the debate over issues of public service provision and substantially increased
the channels for complaint. Issues raised at the union council level were debated at the
Tehsil/town council level.
66. Since 2008 TMOs have reported to a non-elected provincial secretariat through their
executive heads or administrators. The framework for citizen voice and public accountability was
weakened, though other channels such as the use of non-government organizations, MPAs and
MNAs remained routes for raising concerns around failing public services. However, this is
limited in scope and it is now hoped that new local government elections will offer ordinary
people in Sahiwal the opportunity to hold to account newly formed municipal corporations. It is
essential to have a formal framework for accountable-decision-making as soon as possible. The
local government elections in December 2015 may usher in such a framework.
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Provincial- local relations
67. The character of the relationship between provincial government and local authorities
varies from time to time. From 2001-2008 substantial powers were transferred from the province
to the districts and Tehsils, however there was no devolution from the federal to provincial level.
Consequently, the responsibilities of the province were reduced, which was the cause of much
consternation between provincial and local authorities. However, in the current system with
administrators in charge of key decision-making and framework planning, these relations have
been far more harmonious. The TMAs report to the provincial local government and community
development department. In Sahiwal have occasionally raised concerns how the relationship will
unfold once the new municipal governments are in place and reporting/accountability
mechanisms are redrawn. A return to the pre-2008 environment is envisaged. From the
perspectives of the Administrators there are no serious issues between province and Sahiwal
TMA.
68. However, the provincial government is in the driving seat for new local government
elections and reforms and with the support of specialized entities such as the Urban Unit TMAs,
and in the future municipal corporations will have considerable support from the province to
implement new plans, programs and initiatives to improve public service provision. This is
discussed in more detail in the section on benchmarking and new approaches and models for
urban service delivery.
Excessive Powers
69. The main focus of provincial-local tension is the authority retained at the provincial level
to determine staffing levels, transfers and promotions. This was true in the past and remains the
case today. DCOs, Administrators and TMOs and Nazims previously believe that the spirit of
devolution was never fulfilled and is unlikely to until the province devolves autonomy to the
TMAs/ Municipal Corporations for setting the size of its establishment.
70. Sahiwal has been particularly disadvantaged in this respect from the outset. Many
positions remain vacant since the TMAs sanctioned staffing at its creation in 1993. The provincial
ban on recruitment from time to time which followed various stages over the last two decades
has meant that the Tehsils/towns suffers from a legacy of trying to fulfill their functions and
responsibilities with a workforce that today amounts to just 50 per cent of its sanctioned strength.
71. Senior officials in town administrations view the inability of provincial government to fill
key posts, as a serious challenge. There is a perception of a lack of responsiveness on the part
of the Services & General Administration (S&GA) and Finance departments to the problem of
filling the many vacancies that persist despite numerous representations by the TMAs.
Compounding this are the short-term horizons and lack of motivation that arise out of the
provincial propensity for transferring or promoting key officers, often inexplicably and at short
notice.
72. Provincial line departments also exert considerable influence particularly in the
Infrastructure and Finance departments. Here, departmental contact with the province is primarily
through local MNAs and MPAs who are able to influence provincial departments to issue
directives for the implementation of schemes falling outside the Tehsil development plan. In
effect, the department finds itself trying to please two separate taskmasters – with plenty of
scope for conflicting interests to surface.
D. Institutional Analysis
Legal Framework
73. Constitutionally, Pakistan remains a two-tier federal state: the 1973 Constitution initially
did not recognize local governments as the third tier of government. This meant that local
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governments do not have the constitutional right to a share of provincial revenues that the
provinces have to a share of federal revenues. Two factors have contributed to this. First, it was
not until 1958 (11 years after Pakistan's independence) that political leaders and parties agreed
on a constitution, which was subsequently amended twice. Second, the military took the
country's reins at several critical junctures and experimented with various forms of local
government, primarily surrogates for a parliamentary form of democracy. However, in 2010 the
18th Amendment to the Constitution of Pakistan has made it mandatory. Article 140(A) of the
Constitution explicitly states: “Each Province shall, by law, establish a local government system
and devolve political, administrative, and financial responsibility and authority to the elected
representatives of the local governments”.
Policy Framework
74. In August 2001, Pakistan initiated its devolution program with a set of changes to the
structure of local government that created some 6,500 new local governments with responsibility
for a broad range of devolved functions and services. The changes included the abolition of the
existing three levels of provincial administration (divisions, districts and Tehsils) and the creation
of a new tier of local governments comprising districts & city district, Tehsils & town (Tehsil in
districts and towns in city districts) and union administrations, and the replacement of the existing
municipal bodies by these new local governments. These arrangements apply to all provinces,
but not to the Cantonment (military) areas of towns and cities, or the Federally Administered
Tribal Areas, or Jammu and Kashmir.
75. The Commissioner’s office was abolished along with the Deputy Commissioner at the
time of the introduction of the local government system in 2001. However, the Punjab
Government, in October 2008, revived the post of Divisional Commissioner and proposed
amendments to various laws to make it an effective office of coordination and control. Thus
rendering local governments loyal provincial subjects, the constitutional protection to LGO 2001
was time barred. This meant that the Punjab province could not amend or change LGO without
seeking approval of the president. The constitutional protection to the current local government
system ended on 16th October 2009 and term of Nazims ended on the same day. However,
subsequent to that Punjab provincial government was free to legislate on the form of local
governments they sought to retain. Thus, with the change of national and provincial governments
after the elections in 2008, local government elections were stalled across the province including
Sahiwal.
Post 2008 Framework
76. On August 23, 2013, the Provincial Assembly passed the Punjab Local Government Act,
2013 (XVIII of 2013), by replacing the Punjab Local Government Ordinance, 2001, (XIII of 2001).
Later, on 13th September 2013, vide Notification No. SOR (LG) 39-20/2013, issued under sub-
section (3) of section 1 of the aforesaid Act, all previsions of the Act except section 154 thereof
dealing with repeal of 2001 Ordinance were enforced with immediate effect. This is an interesting
notification which on paper calls to implement the new Punjab Local Government Act 2013 but
section 154 is not operational, meaning thereby that the Punjab Local Government Ordinance
2001 is still in the field.
77. This new legislation is more akin to the framework established in 1979, rather than the
devolution and decentralization system promulgated in 2001. It introduces several levels of local
governments and authorities as well as retaining several provisions of the 2001 Ordinance, but
no administrative office has been devolved to the local governments and critically there appears
no provision for citizen voice. One of the key strengths of the 2001 Act was the provision of local
community organizations (CCBs) empowered and entitled to access funds for community
initiatives including the provision of community infrastructure. Though problems persisted around
the release of funds for CCBs and the considerable amount of funds that were underutilized,
there was a formal framework for citizen participation and voice. This is missing in the 2013 Act
and may undermine TMAs/Municipal Corporation credibility in the eyes of consumers and service
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end users i.e. citizens. The onus will be on urban union councils in Sahiwal to ensure they
adequately represent a broad electorate and hold the Sahiwal municipal corporation accountable
for civic services.
78. The new act affords local governments the ability to levy and raise local taxes and
financial control. However, there is little detail as to what this will mean for Sahiwal as a
municipal corporation. The act says very little on the ability of the new municipal corporations to
appoint and remove staff from the executive. This historically remains the preserve of the
provincial government and it would seem it is unlikely to change in the near future.
Sahiwal TMA
79. The local government reorganization in 2001 established three tiers of local government
in Sahiwal at district, Tehsil and union level. Each level of government is supported by an
administration. At Tehsil level the administration comprises a Nazim, Naib Nazim, Tehsil
Municipal Officer (TMO), and staff in the Finance (F), Municipal Regulation (R), Planning and
Coordination (P&C) and Infrastructure and Services (I&S) sector.
80. Since the local government reforms in 2001, several of the services that were previously
the domain of urban or rural local councils have been spatially and functionally integrated at the
Tehsil level in Sahiwal. Services provided by the Local Government and Community
Development (LG&CD) and the Housing, Urban Development (PHUD) and Public Health
Engineering Department (PHED) have been devolved from the Province to the Tehsil level. The
devolution of these departments has ensured that the provision of municipal services is now the
sole functional responsibility of the Tehsil Municipal Administration. Amongst them are key
municipal services such as water supply, sewerage, sanitation and drainage schemes. This was
a change from the previous system, where these services were simultaneously provided by both
the rural and urban local councils and by the provincial line departments.
81. A Tehsil Nazim, assisted by the Tehsil Municipal Officer, heads the Tehsil Municipal
Administration Sahiwal. However, since 2009, local government in the Sahiwal has remained in
limbo. New elections were deferred while provincial legislators talked about various options. In
the absence of elected representatives, the post of provincial Administrator heads the TMA
Sahiwal.
82. The Tehsil Municipal Officer (TMO), as the highest-ranking civil servant in the Tehsil
Municipal Administration, heads the executive branch of the Tehsil government. The TMO
performs coordination functions similar to those of the DCO at the district level. The executive
branch is divided into 4 departments and a Tehsil Officer (TO) heads each of the departments
(Finance, Planning and Coordination, Regulation and Infrastructure and Services) to carry out its
functions. The Chief Officer and his staff are responsible for Operation and Management of
Water and Sanitation services.
83. The TMA has inherited staff from the former urban councils, the rural district councils and
also from various Provincial level departments. The TMA Sahiwal has 1,040 sanctioned posts of
which 71% (741) are filled and 29% (299) are vacant (Figure 3). Majority of the staff (70.8%) are
working in Infrastructure and Services (I&S) wing of TMA at operational level such as Sanitary
Worker (41%), Lorry Filler - Sanitation (4.6%), Assistant Tube Well Operator (4.9%) and
Chowkidar Water Works (4.5%). Octroi Clerk and Naib Qasid are also a considerable portion of
the TMA establishment and represent 6.7% and 9.9% respectively. For budgeting purposes, the
sanitation staff is allocated under the Infrastructure and Services (I&S) wing, but they are
managed by the Chief Officer, which is directly reporting to the Tehsil Municipal Officer.
84. The vacancy situation does not seem to be a major problem but in relation to key
positions it is a considerable issue. There is no chief officer, 22% of sub engineer, 33% of
sanitary Inspectors, 48% of Octroi clerk, 35% (151) of sanitary workers, 46% of lorry filler –
sanitation and 47% of sanitary worker sewer man positions are currently vacant. Not all
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employees (especially sanitary workers and other field and sanitation staff) are working on their
assigned tasks. They are working (informally) on special assignments or attached to other
departments. It means technically only 29% seats are vacant but de facto, because of the
redeployment of operatives, there is a higher vacancy / shortage of staff than is indicated by the
superficial situation and a significant shortfall of staff available to undertake the Sanitation work.
Goals, strategies and objectives
85. Goals, objectives and strategies are fundamental to the effective functioning of any
organization. They give shape to the main purpose of an organization and constitute a model
around which norms, rules, behavior, processes and working patterns revolve.
86. The development of goals, objectives and strategies, however, is at a very rudimentary
stage in Sahiwal. There is a weak understanding of what goals and objectives – the foundation
stones of strategic planning – should be. As a result, there was limited scope for analysis of
strategic management within Sahiwal TMA, other than the work completed by the Urban Unit and
ADB PPTA team in 2008-2010. We begin with a review of what strategic management is, and
what level of strategic management might be appropriate for Sahiwal TMA, followed by a brief
audit of the extent of understanding of goals, objectives and strategies across the TMA.
Strategic management
87. Strategic management is a term that has been used to indicate a move in the focus of an
organization away from a primary concern with routine activities, work processes and inputs
(human, financial and technical) to a focus on outputs, objectives, outcomes and goals. Strategic
planning and management is concerned with defining and implementing a clear set of goals,
objectives and activities based upon the central aim or purpose of an organization within the
context of the wider political, social and economic environment within which the organization is
located. As such, it represents an essential part of the performance improvement process of any
organization and should be seen as a critical part of local and municipal governments and
corporations in Pakistan.
88. One of the main concerns of strategic management relates to performance improvement,
defined in terms of internal performance (i.e. operations) and external performance (i.e. outputs
and outcomes that impact on the surrounding environment of the organization). Some
organizations refer to this as ‘results-focused’ management in an attempt to give even greater
emphasis to what is being achieved by the organization, rather than how it is achieving it. The
main issue here is that the content of any strategic planning and management approach has a
strong emphasis on results.
89. At the heart of any strategic planning and management process must be a system of
measuring performance in some form. But it must be more than just a numerical, data analysis
mechanism. Performance management should also involve acting on the information that
emerges from the system, so that actions can be modified where necessary to achieve improved
results, introducing the idea of continually responding to new information to improve performance
leading to continuous improvement. In simple terms this means a commitment to driving
performance forward by measuring results properly and using that information to achieve higher
standards in the future.
90. In a setting such as Sahiwal, like any other, this process would need to be viewed as an
internal management tool and would need to be associated with a development of a
management style that focuses more on the local citizens and their needs. This has implications
for the way that local government managers work and the way that the organization
communicates with local citizens. In this way, a mutually supportive structure can be
implemented in which strategic planning is people-centered, budgeting is directed at achieving
results, assessment of performance identifies whether results are being achieved, and in all
cases the citizen has both information and the opportunity to contribute. This contribution would
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go much further than periodic voting in local elections, and greater opportunities would need to
be provided by the Tehsil officials and their senior line staff for the public to influence, comment
on and monitor outcomes designed to achieve the strategic goals and objectives of the town
administrations/municipal corporations and councils in a meaningful way.
91. At present, there is a complete lack of strategic orientation within Sahiwal. In spite of the
fact that the provincial government prepared its own strategy documents and sector
assessments, these have not trickled down to Sahiwal. Work carried out in 2008-2010 (an urban
profile for the city was prepared) by the provincial government with ADB support seems not have
been advanced by TMA staff. For example, the perception within TMA staff is that the provincial
government will provide further support to develop this aspect of municipal performance. Efforts
currently underway as part of this project aim to address this very issue. Strategic planning is a
process that enables an organization to achieve significant changes in direction and activities by
reassessing the goals and objectives of the organization and the types of outputs, activities, and
inputs required to meet any redefined goals and objectives.
92. Such a reassessment may lead to recommendations for change in organizational

direction that may be difficult to implement in the short term. It is important that strategic planning
processes include a method for the town administration to choose how it is going to allocate its
resources over the long term, and to be sure that its choices are implemented by its managers.
At the same time, a good strategic planning process should include arrangements for the
district/Tehsil administration to secure economy, efficiency and effectiveness in all activities and
outputs. This process is now underway through the work of the ICDS team as part of this project.
However, this should be viewed as long term.
Defining goals
93. Strategic planning will usually begin with the definition of the main goal/s of the
organization that will, in turn, enable it to articulate a vision or mission. Whilst the main goal of
any private organization can be easily defined in terms of maximizing profits and hence the value
of shares, the goal of a public sector organization will be more difficult to define. This is mainly
due to the fact that government’s main purpose is to maximize public wellbeing and equity
requiring a careful balance of policies that will achieve development for the largest number whilst
protecting those most in need including the poor, vulnerable and minority interests.
94. This same goal or purpose can be applied to a town administration such as Sahiwal
within the context of a more limited range of services. Goals should be expressed in terms of the
high-level outcomes that the organization aims to deliver and reflect the fundamental purpose of
the organization. Care should be taken to ensure that the goals of the organization are not
expressed as a simple statement of what an organization currently does. Goals should be set
against a benchmark or standard that recognizes stakeholder needs.
95. Goals should be formulated in such a manner that they take account of the likely
available resources to achieve the goals. This may lead the organization to modify its goals and
expectations of what is achievable. The following questions will help the organization to formulate
goals that are realistic and achievable:
95.1. Where does the organization want to be in x years?
95.2. What actions would be required to achieve this?
95.3. What is the cost of those actions in financial terms?
95.4. What can the organization afford to achieve during the life of the strategic plan?
96. When these questions have been answered it will be possible for the organization to draft
its goals. Goals should incorporate measurable features such as: ‘what’, ‘where’ and ‘when’. This
means moving from a mere expression of where the organization would like to be in future to
introducing a timeframe within which goals can be achieved. This will in turn help to formulate a
phased plan of actions over a number of years to achieve the expressed goals. This process
commenced with the ICDS work but will need to continue for the foreseeable future.
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Expressing a vision
97. Once the main goal of the organization has been agreed it is considered good practice to
articulate a set of guiding values and principles that will help towards the realization of goals.
This is especially the case for government departments and agencies where choices affect the
general public. District or Tehsil councils need to communicate what they hope to achieve as part
of an explicit vision or mission of the future that will help to translate the council’s political
intentions into actions. While a ‘vision’ represents the situation the organization is trying to create
or aspires to, a mission is an obligation or desire to reach that achievement. In this sense the
vision and mission are best viewed as two aspects of the same basic concept, rather than as two
separate aspects of planning. Here the mission describes an object that has, as its output,
achievement of the vision.
98. The most important feature of a vision statement covers the following:
98.1. Based on agreed organizational values which act as a set of guiding concepts
98.2. Expressed in broad but concise terms
98.3. Memorable and easily understood by all staff
98.4. Express aspirations and expected future achievements of the organization
99. Since the formulation of a vision, as an expression of the values and principles of the
district or Tehsil council, needs to be attractive to voters it will need to reflect people’s needs.
Thus before a local government can express a vision, it needs an understanding of what is
important to its people.
Strategic plan
100. Once organizational goals, vision and/or mission have been formulated it is possible to
prepare a detailed city development strategy and action plan based on a set of priority objectives
that will help to realize the goal within a defined time period. Most strategic plans are considered
medium-term instruments and may typically cover a five-year plan period. This is distinct from an
annual action plan that will define the activities to be prioritized for any one particular year. In
Sahiwal, for example, whilst TMA has not previously formulated a city development strategy nor
a medium-term investment plan, they have formulated annual action plans and budgets but these
do not relate to any clearly defined strategic objectives, vision or goals.
101. In order to formulate an integrated city development strategy and plan in Sahiwal it would
be necessary to build the capacity of staff at TMA level to undertake the following activities:
101.1. Identification of the main needs of the area in terms of physical and social
development to address service gaps, deficiencies and opportunities – taking into
account economic, social and financial demands or constraints. Here, it is important to
focus on key needs so as to avoid a typical problem of identifying a long ‘shopping list’ of
needs that cannot be met within likely resource constraints. To define needs the
government has to adopt norms or standards so it can assess any gaps between what is
needed and what is currently provided. These norms have traditionally been based on
professional assessments although there are several international organizations that set
standards and report on country conditions against nationally derived standards.
101.2. Identification of the main changes in services required to meet the priority needs
of citizens with an emphasis on improving access to services for all groups, especially
the poor and vulnerable, that the organization plans over the next few years. Once again
it is important at this stage to focus on the key changes likely to make real differences in
outcomes to ensure that the plan is achievable and can be implemented.
101.3. Formulation of performance standards to be provided including the quantity,

quality and coverage of services to meet agreed objectives and goals. This should
include a statement of how the organization (and, by implication, the public) will achieve
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these service standards and how they will be monitored and evaluated. Service
standards should be defined in terms of the results to be achieved (i.e. percentage
increase in coverage rather than x quantity or time of human resource input).
101.4. Allocation of resources (human and financial) to meet service changes with a
variance analysis showing differences in requirement from past budgeted allocations and
a revenue plan and forecast to identify the sources of required revenue. This should
ideally include a cash flow projection showing critical assumptions about developments
outside the direct control of the organization including the level of federal or provincial
government support, wage and cost inflation and main financial risks.
101.5. This analysis should begin with a review of likely available revenue and an
assessment of the expenditure implications of the objectives and actions proposed in the
integrated city development strategy and action plan.
102. The completion of each of these activities will result in the formulation of a strategic
document - in this case an Integrated City Development Strategy for Sahiwal. The existence of
such a document is, in itself, of little use unless it is owned and communicated by the Sahiwal
TMA, political representatives and staff. The process should ideally include participatory
discussions and consultations with key stakeholders, councilors, officers and employees
representing all levels and grades of the respective local government workforce. This is currently
underway and raised considerable interest amongst a diverse range of stakeholders.
Monitoring and review
103. The ICDS and medium term investment plan needs to be subject to regular monitoring to
ensure it remains relevant to the local context of Sahiwal TMA. The plan needs to take account
of shifting political priorities, emerging local needs and demands, and technical developments.
The monitoring and review process required for this is usually undertaken as part of strategic
budget monitoring and internal review ensuring that resources are allocated to policy priorities
and to areas that have been shown to be effective. They should not simply cover the allocation of
additional resources (or cuts); rather they should provide an opportunity to re-examine the
continued appropriateness of all expenditure under the organization's control.
Goals objectives and strategy in Sahiwal: A local audit
104. Sahiwal TMA like others in Pakistan has a weak strategic vision and in a number of
instances there is no articulation of goals or strategic methods. Clearly, there are a number of
endogenous and exogenous problems, compounded by considerable capacity constraints, which
have resulted in weak planning, chronic short termism and a focus on only the most immediate
and pressing of government tasks. The articulation of appropriate goals and formulation of a
simple strategic vision, as described above, will be a critical first point of intervention in
strengthening public management in Sahiwal.
105. Early questions to senior officers at TMA levels revealed that the concept of using goals
and strategy as a tool of proactive management remains largely undeveloped, and even
misunderstood. Generally, there was little conception of departmental objectives as something
separate from the functional responsibilities of the department (for instance, as listed in the
Punjab Rules of Business) or the duties of the department’s senior officers. Where clear
responses were elicited from the departments of the TMA, on their understanding of what
constitutes a goal or objective the responses were as follows:
Sahiwal TMA
 TO Planning and Regulation: To ensure planning regulations are observed.
 TO I&S: Supervision and provision of basic amenities; To carry out development
works and improvements in financial infrastructure
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106. TMA offices have therefore drawn their understanding of their objectives in general from
their functional tasks and targets as defined in the Rules of Business. While a number of the
areas of ‘Allocated Business’ identified in the Rules of Business are objective-like in nature they
do not amount to strategic objectives as defined in the foregoing section. The reliance on
provincial descriptions of functional responsibilities as the definition of departmental objectives
underscores the weak formulation of goals and objectives, and a general absence of formal,
succinct and cohesive statements of objectives. There appears to be limited understanding of
whether or how this could be achieved, or even of the relevance of drawing up formal objectives.
107. The reliance on provincial descriptions of functional responsibilities as the definition of

departmental objectives underscores the weak formulation of goals and objectives, and a general
absence of formal, succinct and cohesive statements of objectives. There appears to be limited
understanding of whether or how this could be achieved, or even of the relevance of drawing up
formal objectives. However, recent advancements made by the provincial government in
developing economic growth and urban development strategies also appear not to have trickled
down to TMA officials in Sahiwal. Infrastructure strategies and plans prepared in 2010 were
either not referenced or officials failed to recall that such documents existed. This highlights the
need for focused efforts to build capacity and embed strategic management capability across the
TMAs/Municipal Corporations in the coming months and years.
108. While Tehsil officers were generally positive about the idea of setting common objectives
and targets for each department, some expressed reservations about the practicality of such an
approach. Strategic goal setting would need to be driven by the executive and corporate
management and would need to factor in provincial-local relations for departments such as
infrastructure, finance and planning. Moreover, with the establishment of new municipal
corporations anticipated work on this would need to transcend the changes expected once the
elections are over and local political representatives in place.
Changing the dynamics of Governance: Connecting with customers and citizens
109. Mechanisms to involve local representatives in policy and program formulation appear
severely restricted from a TMA perspective since devolution was abandoned in 2008. The citizen
community board (CCBs) initiative suspended after the LGO 2001 was repealed after the 2009
national elections. There is little evidence that Sahiwal actively relies or engages with civil society
organizations or local community groups to assist with providing services or indeed monitoring
services if they reach their intended target groups. Since 2008 formal mechanisms for citizen
voice and accountability have been limited. Formal communication with external constituents is
absent.
110. The study team found there is little to no engagement with customers and citizens on
how service provision can be improved. There is no formal mechanism or function within the
TMA that allows it to share success stories or inform the public of a mandate (beyond a
rudimentary website) to serve and deliver civic services. For example, discussions with officers
from water department revealed that while a key aspect of their work was connecting with
customers they saw little other opportunity to invest in a strategic partnership and address ways
in which services could be improved or the service experience enhanced. Officers in the water
supply team said they could see the benefit of sharing information through vehicles such as
websites but the TMA lacked expertise, and with no computer operator positions filled within the
TMA, they saw little opportunity to develop a communication function using automated online
mechanisms.
111. New local government elections and the new Act of 2013 offer an opportunity for Sahiwal
and other TMAs to begin work on improving civic engagement. One way this can be achieved is
to create a specialized communication function within the new Municipal Corporations once they
are operationalized. This department would be responsible for marketing and communicating the
business of government with internal and external constituencies. Something akin to the work
that is being undertaken by the World Bank Punjab Large Cities Program, where e-governance is
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a key component of open and transparent local government. This will require provincial
government support through the provision of human and financial resources and eventually sign
off. If implemented, it could aid service responsiveness within TMAs and ultimately improve how
services are delivered to citizens and customers alike.
E. Organizational Analysis
Organizational structure
112. The background to the evolution of the organizational design of TMAs highlights how
local governments across Pakistan were established according to a very uniform model, which
reflects neither the size of the population served, nor the size of the budget at the TMAs disposal.
A key department such as Planning and Regulation illustrates some of the issues related to
trying to apply a standard model to a TMA such as Sahiwal.
113. The present situation indicates a number of vacant positions. In Sahiwal over a 1000
posts have been sanctioned and while over 70 per cent of positions are filled the vast majority of
these happen to be in the infrastructure and services department. Almost 30 per cent of positions
within the TMA remain unfilled. The TMO does not feel the vacancy levels unduly undermine the
ability of the TMA to carry out its main functions, however, vacancies in key strategic positions do
make the task harder and it is difficult to achieve optimal performance. In comparison to Sialkot
TMA, Sahiwal appears to be in a better human resource position. Nevertheless, as is the case
with Sahiwal TMA, organizational design suggests that there is room for streamlining the
structure and combining some of the clerical and junior posts to take out the replication that
occurs across different departments.
114. The nature of business allotted to Finance in the Rules of Business and LGO, and the
organizational structure carved out under the enabling rules clearly indicate that the Finance
department has been created on the basis of specific ‘purpose’ and to support ‘process’. Its
objective is to promote effective financial management of existing resources through prudent
financial advice and control. Theoretically, therefore, the department consists of technical and
management support groups. However, their design needs to be readjusted in the light of the
distinct realities from one TMA to another.
Staff and staffing strength
115. When compared to Sialkot TMA, Sahiwal seems to have been more fortunate in securing
staff for vacant positions. Nevertheless, key characteristics distinguishing Sahiwal are that they
lack a Chief Officer, almost a third of all sub-engineering staff have not been recruited;
approximately half of the positions available for octroi staff and frontline staff such as sanitary
remain vacant. The significance of which is felt in areas of finance and waste management.
Critically the TMA is unable to operate as modern local government with all positions for those
with IT and computing skills still vacant. To meet staff shortages, the TMA deployed strategies to
deploy staff on short- term contracts, especially field staff such as sanitary workers. This draws
attention to operational problems facing Sahiwal TMA.
116. Although the staffing establishment has been standardized across TMAs, Sahiwal still
lacks many resources. Officers would typically expect not to find at their disposal such as
adequate facilities, equipment and vehicles to deliver civic services. As discussed below,
therefore, the current staffing position is therefore only partially a function of the organizational
structure. It is also partly a function of the lack of resources in the TMA and the general political
economy, which acts as a disincentive to potential entrants to the TMA.
117. Staffing is the one thing that the officers of Sahiwal TMA are unanimous about. TOs
frequently expressed satisfaction with the system and organizational structure, which they
believed would function smoothly if only the province could assist with recruiting and placing
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would do something about filling the many vacant positions that persist across the TMA. The key
staffing problems faced by the TMA are problems of staffing strength, turnover and capacity.
Turnover
118. Staffing shortages are exacerbated by typically high rates of turnover, a problem that has
been endemic to the civil service in Pakistan. From time to time bans on postings and transfers
have been in place but political leaders are still able to lobby for exceptions to the ban, and freely
instigate postings in collaboration with supporters at the provincial level. Officers can be
transferred at short notice, critically shortening the planning horizons of both individuals and the
organization. Staff turnover rates in Sahiwal appear high among senior officials - the TMOs and
the TOs. Like the occupancy records of TMO post shows that it was filled 9 times during the last
5 years of which 6 (67%) times for less than one year (Figure VI-6). The combined problems of
staff shortages and turnover rates is particularly damaging when the TMA is trying to develop a
long-term approach to development planning and investment.
Figure VI-6: Tehsil Municipal Officer: Length of Employment in Sahiwal
33%
35%
30%
25% 22%
Percentage
20%
15% 11% 11% 11% 11%

10%
5%
0%
0%
Less than 1-4 4-6 6-9 9-12 12-24 Over 24
1 Month Months
Spans of control
119. Reporting lines and related spans of control are determined by the organizational
structure and indicate the number of subordinates reporting directly to a line supervisor or
manager. There is a general correlation between the span of control and the number of layers
found within an organizational structure. Analysis of the reporting lines within TMA departments
of Sahiwal demonstrates a relatively high ratio of supervisory staff to subordinates. This indicates
the presence of low or narrow spans of control in all spheres of local government with a
corresponding ‘tall’ organizational structure that is typical of a multi-layered, hierarchical
organization such as those found in government.
120. The organizational structure for Sahiwal TMA is based upon a standard bureaucratic
template that provides for a high level of supervisors to maintain close control over a relatively
small number of subordinates, at almost every level of the organization. This conforms to
classical management theory that propounded the ideal span of control as representing one
supervisor to every five or six subordinates. Low or narrow spans of control reflected in this
system are usually accompanied by multiple organizational layers and represent a command and
control approach to management that has been enshrined in many public sector organizations.
Although a low span of control will enable managers to supervise staff at close quarters, many
management theorists argue that it represents an inefficient system with too many supervisors
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operating through too many layers of bureaucracy. Low or narrow spans of control also reflect a
basic lack of trust in subordinates, and this was in fact found to be a dominant attitude amongst
managers during investigations of organizational culture.
121. Analysis of the organizational structure of the main target departments at TMA level
demonstrates the importance given to a low span of control, with one supervisor for around 10 or
15 subordinates in the prescribed organizational structure of most departments. A similar
situation exists in Sahiwal presently. The prescribed structure for the TO Finance for example,
specifies one Assistant TO post for 15-20 officers. In the Tax Branch department, a Collector
supervises almost 20-30 staff. As one proceeds down this organizational structure, there is a
sharp decrease in the span of control subordinates per supervisor. The Infrastructure and
Services Department also demonstrates a similar structure and span of control, with between 15-
20 subordinate staff per supervisor. This is higher than optimum.
122. This PFS identifies a range of problems associated with low spans of control and
organizational hierarchy. These include the slow processing of files and work, information
distortion, ineffective decision-making and lack of action arising from the general preoccupation
with supervision rather than implementation. At the same time the emphasis on supervision, in
the absence of motivation, within a bureaucratic culture, has failed to produce a well-disciplined
and managed workforce capable of delivering results. The low spans of control found in almost
every department have resulted in other inefficiencies arising from information distortion through
multiple layers of management, slow decision-making, and a high degree of
compartmentalization and insulation.
123. Recent management literature recommends higher or wider spans of control. Flatter
organizational structures are more conducive to internal operational efficiency and enhanced
productivity, with a balanced focus on the means to achieve performance rather than the means
to supervise performance. Wider spans of control are particularly relevant to those work
situations where a large number of staff perform similar functions, as is the case in many local
government organizations. It should be noted that any formal change to shift local government
departments from low spans of control and multiple layers to higher spans of control and flatter
structures, would require provincial intervention regarding fundamental issues of organizational
design.
124. At the same time, whilst staff shortages may have assisted with a process of informal
transformation from low to higher spans of control, in reality this needs careful consideration
since some staff shortages are clearly going to be more critical than others and the ad hoc nature
of staffing means that there is no automatic link between staff shortages and higher spans of
control. A more strategic approach to this issue would indicate the need for professional
organizational design to determine the optimal span of control for different activities and posts. It
would be possible to introduce structural changes, for example, by reducing the number of
supervisory posts and converting these to operations.
Management information systems
125. Sahiwal will need to develop a centralized information system to support key decision-
making processes that underpin development strategies. The following section examines the
degree to which management information systems in Sahiwal are coordinated with strategic
planning, and the degree of clarity on ‘what’ information needs to be captured by the system and
‘why’. A general rule is that the volume of data should be kept to a minimum, and should be
proportional to the capacity of staff to operate and use the system, if it is to be an effective
instrument of control.
126. In Sahiwal, not one single department claims to have an automated management
system. The PMDFC did develop a financial management information system for the TMA
however it was not adopted and operationalized by the TMA. In part this might be explained by
the fact that all posts for ‘computer operator’ in Sahiwal remain vacant. Therefore, each
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department within the TMA maintains simple inventories of work progress consisting of manual
file-based systems. Word processing is used to write communication on behalf of the TMA.
Budgets are prepared in excel files. Nevertheless, the Government of Punjab, through the Urban
Unit established a ‘city implementation unit’, which provides support services to the TMA in GIS
mapping, land use record management. This is a valuable resource, working closely with officers
and providing regular feedback to the TMA management updates on service provision
throughout the city.
127. More broadly, in the absence of information and communication technology, the TMA
relies on archaic and traditional systems of information and communication exchange. There is
no email system and departments communicate through letters, memos and occasionally by
telephone. TMA offices send all communication to the provinces by post, which can take days
and weeks to register with the recipient. Such means of communication are not only costly but
delay decision-making, thereby contributing to inefficiency.
128. It also provides opportunities for duplication of work, particularly where information from
the province is being requested frequently. Members of the public do not have access to
information, rarely is information processed into a product – with the exception of the ADP and
the annual budget there are no annual departmental reports, studies or surveys being conducted
by TMA itself, unless supported by the Government of Punjab. It is also true that departments
lack the technical expertise to present information for public consumption or internal use. The
way information is currently processed by department results in inequitable information flows,
where officers and managers make decisions based on limited choice and information as
highlighted in Figure VI-7. This hinders TMA effectiveness.
Critical Issues
129. It is important for the TMA and provincial government to try to tackle some fundamental
issues associated with IT upgrading. We already know that the departments have not been able
to fill sanctioned posts for computer operators. Departments rely on administrative support from
non-technical staff for word processing and other computer-based tasks. Similarly, to ensure that
such any IT/E-governance program has as many beneficiaries as possible, an extensive training
program for all junior and senior officers will need to be developed.
Figure VI-7: Poor Information Management – Undesirable Outcomes
Poor information management
Inefficiency Poor information aw areness

Poor planning Duplication of information
Poor monitoring
Restricted information flow s Absence of/poor use of

Lack of transparency and information technoloty
accountability
130. A major hurdle will be to change the mind-set that prevails with senior officers
(TOs/Assistant TOs) who require IT training. We know that clerks and junior clerks carry out key
administrative work (writing letters, memos, preparing expenditure statements). In all likelihood,
even with the aid of technology, junior staff will continue with current practice whereby they follow
instructions on drafting and re-drafting communication and sending information to other
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departments. TMA executive management will need to take a lead in trying to change mind-sets
and working practices in this regard.
131. Planning will become essential for computerization and this will require considerable
impetus from corporate management. Traditional work practices and methods remain entrenched
in local government culture in Sahiwal and beyond. All stakeholders will need to see the value
and widespread benefits of information and communication technologies. Staff will need to
realize that as a result of the newly acquired systems there will be greater accountability,
transparency across the organization and a more robust working culture.
Human Resource Management
132. Improving efficiency and effectiveness must be linked closely to personnel development
policies, and encourage a culture of reward and recognition. A personnel management
information system that is appropriate for the functions, objectives and customer-orientation of an
organization is therefore a basic requirement for a strategic, equitable incentive management
program that yields results. In Sahiwal TMA, there is at present no formal human resource
management.
133. Since the province retains control of most staffing matters including cadre requirements,
the number of sanctioned posts for each cadre position and the filling of vacancies for senior
grades, local government has relatively limited autonomy over the deployment of human
resources. Although TMA has positing transfer authority in the offices working under the control
of Tehsil Administration, except for TOs and CO, it can neither create a post nor fill a vacancy
without the consent of the province (Table VI-8). At the same time, the freeze on recruitment, as
well as the general tendency on the part of the provincial Finance department to rein in
expenditure, means that it is difficult to exercise much control over the size and shape of the
establishment.
Table VI-8: Posting transfer power in the offices under the control of TMA
Category of Officers/officials Authority

1 BS-12 and above (except TOs/COs) Tehsil Nazim
2 BS-11 and below (except TOs/COs) Tehsil Nazim
Source: The Punjab Tehsil/Town Municipal Administration Rules of Business, 2002
Recruitments and appointments
134. Under a system of complete administrative devolution, all authority for personnel
management would be found at the same level of government where staff is located. In practice
it is not the case. The five features of the employer functions described in Table VI- 9 provide a
summary of the extent of devolution of the employer function into the TMA Sahiwal. Overall, as
can be seen, TMA Sahiwal has little de facto employment authority over staff located in the TMA
including their recruitment and selection. Appointing authority for most of the positions rest with
the Secretary Local Government, with few exceptions where the DCO has power to appoint staff
up to a certain level within TMA Sahiwal. Detailed list of positions and their appointing authority is
mentioned in Table VI-10.
TableVI-9: Employer Function
Sr. No Main Employer Sub Function TMA & Province Shared

Function District
1 Resourcing Control over staff position / numbers (increasing P
or decreasing staff positions)
Positing and transfer S
Authorized to hire D P
Oversight of merit P
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Legally recognized employer S

2 Career Management Offering promotion S
Upgrading positions P
3 Performance Directing and supervising activities and tasks TMA
Management Conducting Performance Evaluations S
Undertaking discipline or dismissal of staff P
4 Pay and Benefits Setting overall pay rates and policies P
Setting allowances P
Gratuity, pension and insurance S
GP and benevolent fund P
5 Budget control Paying salaries from its own budget TMA
Authority to dismiss surplus staff P
T= TMA has primary Authority, D= District has primary authority, P= Province has primary authority, S= Shared
135. While numerous officer posts at Tehsil level remain unfilled, there has been some
support from the province for the recruitment of certain frontline positions such as sanitary
workers. Similarly, the option to employ contract staff, with the assent of the province, provides
some recruitment flexibility for the TMA. Among Sahiwal TMA/TOs it is seen very much as a
contingency given particular problems of loyalty and commitment among contract staff. It is
therefore an option which is used very much only in case of pressing need – most notably in the
Infrastructure and Services Department. Among other departments, contract staff are limited to
just one or two per department.
Job descriptions
136. Job descriptions should clearly set out each staff member’s roles and responsibilities,
reporting lines, objectives and criteria for appraisal. In Sahiwal, however, job descriptions remain
a rudimentary tool for management. Very few appear to exist, and those that do are old. The
general absence of job descriptions partly explains why there appeared to be a relatively low
level of understanding among the officers as to what a job description should contain. In the
Infrastructure & Services department, senior staff confused job titles with job descriptions, and
explained that the title of the post provided a sufficiently clear indication of what the job entails.
Table VI-10: Appointing Authority for TMA staff
Section Name and Scale of the Post Appointing Authority

1 Administrative Chief Officers and Assistant Superintendents (BS-14) DCO
2 Chief Officer, Superintendents Council Officer ATO (R) (BS-16) Secretary LG&CD
3 Administrative TMO, TO (R), Chief Officer, ATO (R) AOs, PLGB Secretary LG&CD
Superintendents Council (BS-17)
4 Administrative TMO, TO(R), Chief Officer (BS-18) Secretary LG&CD
5 Administrative TMO, TO(R), Chief Officer (BS-19) Secretary LG&CD
6 Accounts Accountant (BS-14) DCO
7 Accounts ATO (F) BS-16 Secretary LG&CD
8 Accounts TO (Finance) ATO (Finance) (BS-16) Accounts Officers(BS-17) Secretary LG&CD
9 Accounts TO (Finance) ATO (Finance) (BS-18) Secretary LG&CD
10 Accounts TO (Finance) (BS-19) Secretary LG&CD
11 Engineering Sub Engineers 39[(BS-11)] DCO
12 Engineering Senior Sub-Engineer (BS-16) Secretary LG&CD
13 Engineering TO (I&S)/ATO(I&S) (BS-17) Secretary LG&CD
14 Engineering TO (I&S) DTO (I&S). (BS-18) Secretary LG&CD
15 Engineering AT (I&S) ATO (I&S). (BS-17) Secretary LG&CD
16 Planning Building Inspectors (Bs-14) DCO
17 Planning AT (P&C) ATO (P&C). (BS-17) Secretary LG&CD
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18 Planning TO (P&C) ATO (P&C). (BS-18) Secretary LG&CD

19 Planning TO (P&C) (BS-19) Secretary LG&CD
Supervision and discipline
137. Most staff are supervised on the basis of their execution of established tasks and duties.
Time keeping and work attendance are, in theory, monitored through the maintenance of an
attendance register. This may be manipulated at times, although TOs generally felt that the
scope for regular false entries is limited. Most technical staff are supervised on the basis of
routine monthly progress reports and meetings, which provide supervising staff with some control
over physical and financial progress of assigned activities. This kind of supervision is clearly
easier for project-based work than it is for many kinds of support activity.
138. The work of staff in Sahiwal is monitored through progress reports delivered at monthly
meetings and submitted to the Administrator and, where relevant, other officials. An accounts
record is checked on a daily basis, and the head clerk maintains an attendance register. Tehsil
Officers admit to latitude for lateness in government departments. Almost all departments say it
is more difficult to monitor the work of frontline field staff. It is a problem, which critically affects
key service delivery sectors such as infrastructure and services. The main procedure for
supervising the work of field staff consists of routine monthly progress reports or maintenance of
registers and forms relating to client visits. Whilst there is a process for verifying these reports
there is ample scope for improvement.
139. Although these reporting requirements provide for some degree of overall supervision,
they do not enable a manager to monitor incremental progress. At present there are no
systematic work planning schedules, which identify physical and financial targets, and the
indicators by which incremental progress can be more routinely monitored. The rules governing
supervision and discipline of staff are contained within the Punjab Employees Efficiency,
Discipline and Accountability Act 2006. Disciplinary measures include calling for an explanation
for inadequate performance or neglect of duties, request for improvement, or reporting the
member of staff to a higher authority within the provincial department. An officer may be served
with a Shaukaz notice, asking him to rectify irregularities in his performance within a certain
period. In practice, discipline is often exerted through informal discussions.
140. In extreme circumstances, a department may dismiss a member of staff. Other

disciplinary measures range from temporary stopping of salary and/or increments and censure to
simple verbal or written warnings and calls for apology. As with dismissals, the number of
disciplinary penalties reported was very low in TMA Sahiwal. There is a strong consensus that it
is extremely difficult in practice to carry out any major disciplinary action as it may be difficult to
gather sufficient evidence of poor performance, especially in cases involving difficult to monitor
field staff, to overturn the political support which is almost invariably invoked in such cases. The
political pressures that are brought to bear on the disciplining officer will most often result in
some more lenient compromise solution. In extreme cases, council members may pass a
resolution of no confidence in the disciplining officer. Given such circumstances, most senior
departmental staff in the Tehsil feel, they have extremely limited scope for enforcing discipline in
an effective manner.
Promotions, transfers and turnover
141. The main criterion for promotion is seniority, as determined by post and years of service.
However, the comments from the ACR/PER of the candidate are also considered. Although
qualitative judgment and personal assessment do carry some weight, seniority rules will almost
always take precedence. The TO Infrastructure & Services argues that while departments were
given greater devolved responsibility for promotions within the Tehsil under the LGO 2001, over
the past few years this eroded.
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142. Transfers occur periodically in response to a variety of reasons, including disciplinary

action, filling vacancies elsewhere in the provincial administration or requests for relocation
closer to the staff member’s permanent residence. Since senior staff is seconded to the TMA
they are liable to routine transfer on expiry of their term of duty (three years). In practice, it
appears that turnover of seconded staff occurs far more frequently, with a number of posts being
filled for periods of less than two years. This lack of continuity causes serious disruption to
routine work processes and has an impact on the efficiency of departments.
143. Strategic transfers also take place when a staff member is considered to be ineffective,
disinterested or family circumstances intervene. This action may be instigated by a senior officer
but will usually require the support of the executive head. Although transfers are considered to be
one of the main forms of discipline, in practice they are often difficult to achieve due to the
practice of rallying local political support to prevent transfer.
Pay and incentives
144. The TMA has no authority to modify the service rules that govern the terms and
conditions of employment. This severely limits the administration’s ability to tailor remuneration in
line with local needs and to provide the right incentives to attract the right staff. The Finance
department has identified this issue as a particular problem, preventing it from attracting a
sufficient number of suitably qualified personnel to the Tehsil. The department argues that
flexibility to offer higher salaries would enable it to attract at least some suitably qualified
personnel, even if it means that there will be insufficient funds to fill all vacant positions.
Strategic human resource development
145. Human resource development strategies depend on four basic good practice principles:
145.1. Development of medium-term HR philosophy
145.2. Invest in people
145.3. Empower employees
145.4. Redesign work
Development of medium-term HR philosophy
146. Given the overall lack of control over staffing decisions in the TMA, there is little incentive
to formulate a staffing plan that would guide the administration in the tasks of recruitment and
deployment in line with the specific objectives of each department, and their current capacity to
implement those objectives. In the absence of a proper staffing plan to align human resources to
local physical and financial resources, as well as organizational requirements, a number of
serious anomalies arise. In the Infrastructure and Services Department, for example, government
has approved posts for technicians where there are inadequate training facilities. Departments
have computers but no computer operators, or drivers but no cars.
Invest in people
147. The core mechanism of the staff appraisal process is the Annual Confidential Report
(ACR), or Performance Evaluation Report (PER), which is standardized across government. The
report is based on a pro forma, which is to be filled out for every officer on an annual basis. After
the controlling officer has completed it, post holders are invited to make comments on the
relevance and veracity of the assessment, and to sign the report. If he does not agree with the
report he may appeal to the countersigning authority, that is the next higher authority (i.e. if a
TMO is the controlling officer, the Administrator is the countersigning authority).
148. The pro forma has some 50-55 fields, although controlling officers who are pressed for
time (for instance if a PER is requested on an emergency basis) may just write a general
assessment. Three fields are critical for promotions:
 Is the officer fit for promotion?
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 Integrity
 Overall grading
149. The pro forma does not encourage the post holder to reflect on his or her own
performance, to establish performance targets or identify career development opportunities. Nor
is the process the outcome of a mutual deliberation and discussion between a superior and
subordinate. As such, the PER is more of a preventive instrument, which is perceived as a ‘stick’
method for exerting control. The incentives are weighted so that officers are primarily concerned
with avoiding negative comments on the report being taken into consideration by any future
promotion board. At the more senior levels, the PER does take on a more symbolic and political
function. In the previous devolved system, the Tehsil Nazims responsibility for writing the report
of the TMO was a function of their formal accountability to the executive head.
Capacity building and training
150. Tehsil officials lament a general lack of capacity among their staff to fulfill their allocated
tasks, let alone those of vacant positions. The provision of training since the introduction of
devolution has been meager, and the available pool of labor are inadequately qualified for a
number of the most critical vacant roles in government. Similarly, there is a low level of
awareness as to what their role should be. Staff do not always understand the importance of
reporting, which has consequences for accuracy, reliability and timeliness. The shortage of
technical staff in finance or infrastructure services means that the propensity for mistakes in
technical and consistent assessments increases. The backbone of the system for information
gathering is the draftsman or sub-engineer, however these are underpaid and undervalued –
they are not made aware that they are an integral part of service provision.
Problems with current training provision
151. There is an urgent need for proper training of staff at the Tehsil level. The provision of
training reported to the study team is minimal, only TMO and TOs have undertaken training
programs. However, the Government of Punjab through the Urban Unit and with JICA support
recently established a training facility, the Al-Jazari Water and Sanitation Academy for the
development of staff of WASAs and the public water sector workers in Punjab. This facility will
offer pre and post service training to several grade officers in the sector - from Basic Pay Scale
(BPS) 11 to 20 - in technical and broader business areas. In addition, on-the-job training will also
be arranged for junior officials belonging to BPS 10 and below.
152. Similarly, Local Government and Community Development have its own training facility
by the name of the Punjab Local Government Academy, Lalamusa (PLGAL) that was established
in 1953. It provides training to staff belonging to Local Government Departments, Local Council
Service (BS 5 to BS 17), and the elected represented Nazin / Chairmen / Naib / Nazim / Vice
Chairmen /Councilors of the Local Councils. This institute was mandated to provide better
training services to the employees of Local Governments and elected representatives of Local
Governments, but have limited capacity in terms of staff, infrastructure & budget.
153. Certain departments have established training institutes for technical and specialized
staff, but due to lack of interest in training, the institutes are given low priority over the provision
of necessary services. Following are the major areas of training, which are being covered by
training institutions of different departments in Government of Punjab.
Department / Organization Key areas of Training

1 Management & Professional Development Management
Department
2 LG&CD Department’s Lala Musa Training Local government system
Academy
3 The Urban Unit’s Al-Jazari Water and Water sector related courses
Sanitation Academy
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4 Social Welfare Department Social welfare related courses

5 Labor Department Industrial workers related courses
6 Cooperative Department Cooperative societies related courses
7 IT Department IT related courses
8 Education department Teacher training
9 Law Department Judicial officers training
10 C&W Department Testing laboratories
11 Health Department Doctors, nurses, paramedical staff
12 Irrigation Department Irrigation system
13 Agriculture Department Food technologies, pest control, water
management, production of crops
14 L&DD Department Livestock production
15 Tourism Department Tourism, hotel management
16 Forest Department Courses in forestry
17 Fisheries Department Fish farming
18 Home Department Jail staff courses
19 TEVTA Technical training
154. Problems with current training provision can be divided into two broad categories; firstly,
perceptions held within local government that job training is not important or critical (demand-side
problems) and secondly, the quality of training provision through institutions (supply-side
problems). It should be noted that it is beyond the capacity of the present study to undertake any
detailed assessment of supply-side problems, as this would require a specialized assessment.
However, it is possible to report perceptions of staff in Sahiwal concerning the quality of routine
training provision within the province at Tehsil level.
155. There is a complete absence of any formal training needs assessment (TNA) being
undertaken by employers either within the TMA or beyond. Training appears to be conducted on
an ad hoc basis, and often in response to specialized program based funding (often with external
assistance) rather than as a routine part of human resource development. TMA staff argued that
they would like training to address specific areas of local government management, and for
training to relate to the actual work situation faced within a Tehsil. Bearing these points in mind, it
is possible to identify the following broad problems with the current situation:
Demand side problems
156. The low priority given to human resource development and training by all departments in
the Tehsil. Although staff of Finance, Taxation, I & S Planning have received basic training in
their respective qualifications, there is no institutional mechanism for departments to support
refresher training, or any foundation to update knowledge and skills and develop new managerial
capabilities. New learning or continued training on the job is seen as having a low priority within
departments. There is also a lack of interest exhibited by many government officials in attending
training courses. In summary:
156.1. Wider organizational problems that inhibit the use of the knowledge and skills
acquired through training.
156.2. Lack of effective choice due to the limited information on training options
available to potential trainees.
156.3. Personnel policies based on seniority and length of service rather than
performance and achievement, which mean that there are few incentives for staff
members to undertake training.
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157. The low priority given to human resource development results in a perceived
ineffectiveness, which in turn is a consequence of an unresponsive system and procedures, and
the lack of any link between knowledge gained and potential for promotion.
Technical training needs
158. A brief assessment of training needs in the Infrastructure & Services at Tehsil level
revealed the following needs:
158.1. An integrated technically sound and socially appropriate approach to the planning
of infrastructure facilities within the Tehsil. The planning approach adopted must be
grounded in an assessment of current deficiencies in target areas but must address off-
site deficiencies in so far as these affect services within target areas.
158.2. A technically sound and socially responsive approach to the design of local
infrastructure facilities within and around target areas (‘on-site’ infrastructure and local
‘off-site’ facilities).
158.3. Planning for Tehsil-wide infrastructure facilities. The focus here should be on
developing plans that utilize existing facilities and resources, address deficiencies in
operation and maintenance and identify schemes that both address immediate needs
and are consistent with long-term requirements. Training courses would be sector based,
covering water supply, drainage and solid waste management, and would benefit Tehsil
engineering staff.
158.4. The design of secondary infrastructure facilities – sector based and covering
roads, drains, water supply, drainage and solid waste management. The focus would be
on how to design in situations characterized by incomplete information, physical
constraints and resource constraints.
Supply side problems
159. Staff at Tehsil level identified a number of problems associated with training that has a
direct bearing on the quality and capacity of training institutions. Although it would be necessary
to undertake a more detailed assessment of institutional training provision before making any
definitive judgments on the quality of existing training provision, it has been possible to identify
the following weaknesses as identified by different staff in the district. These include:
159.1. Lack of availability of in-service training courses on a regular and updated basis
for managerial and technical staff, frontline staff interfacing with citizens, and junior and
clerical staff. It was widely felt within the various district and Tehsil departments that all
grades require routine refresher courses on the main competencies required to
undertake their tasks as well as technical inputs to improve knowledge and skills.
159.2. The lack of relevance of many training courses for staff who felt courses they had
attended in the past rely largely on ‘standard’ materials, with little attempt being made to
tailor training to their work needs.
159.3. Training methods and materials were outdated, and fixed with no scope for
amendment in the light of feedback from trainees. It was also reported that most of those
involved in training are professionals, who know their jobs but have had no exposure to
training methods. The result is a preponderance of didactic, as opposed to student-
centered, training methods.
159.4. A variety of training methodologies have emerged over the years that engage
participants in serious learning processes and provide them with occasional respite from
the otherwise rigorous training environment. Discussions with staff having attended
training revealed that classroom lecturing (called interactive lecture sessions by some
training institutes) still remains the predominant training methodology. Methods such as
role-play, group discussion, syndicate groups, exercises, case studies, training games
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and visits to good practice sites have not yet been incorporated into the training
curriculum.
160. It was reported that few training institutions have developed any training manuals for staff
to use. Lack of manuals adversely affects sequential structuring of the learning process. Staff
has little idea about back-up material and readings on various training modules. The training
institutions do not practice the concept of training modules. This leads to randomly structured
learning events. It was reported that training institutions supplement the absence of training
manuals by distributing training materials that are generally prepared by the staff concerned.
161. Although it is not possible to assess the causes of these problems without undertaking a
detailed analysis of training institutions and providers, there are a number of possible causes that
the Government of Punjab and ADB may like to investigate at some point in the future. These
possible causes could include:
161.1. Deficient training infrastructure and lack of institutional training resources to

respond to the demand. Only now are supply-side arrangements or resources to address
this problem being acknowledged.
161.2. Most training institutions in the Punjab have insufficient financial autonomy to
operate more efficiently and to market their courses effectively. This is a significant
barrier to the adoption of a demand-based approach.
161.3. Training institutions may have little control over staff appointments. Training
institutions may not have an adequate permanent faculty and may rely instead on part-
time training staff from other departments. Second, when permanent staff are appointed,
they may be drawn from the ranks of the parent department and do not automatically
have an interest in or commitment to training.
161.4. Training institutions may have limited professional resources but are burdened
with a large number of ancillary staff, and most of them cannot contribute meaningfully to
the efficient operation of the organization.
161.5. Training institutions are often tied to providing training to a particular organization
or program, and operate at full capacity only when external funding is available to support
a particular initiative. The root of this problem lie, at least partly, in the lack of autonomy
of most training institutions, but could be related to the lack of informed demand by the
organizations.
Future requirements
162. In summary, discussions with staff revealed (i) a lack of concern for training of municipal
functionaries at different levels, (ii) the absence of administrative arrangements within the local
government for assessment of training needs and doing the needful in this regard, and (iii) a lack
of any exposure to training for a majority of staff. Only occasionally did the study team come
across functionaries who had attended any training program either within the province or outside.
It is clear from the above that changes in approach towards training will probably be needed in
relation to some or all of the following:
162.1. an increased emphasis on collecting and analyzing information on existing

conditions and facilities in order to develop cost-effective training schemes that
incorporate existing facilities wherever possible
162.2. the adoption of a flexible planning approach, which recognizes that physical and
financial constraints mean that it may not be possible to develop an ‘ideal’
solution
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162.3. the development of a balanced approach that considers the possibilities for both
new facilities and improving the operation of existing facilities in an integrated
way
Punjab Local Government Academy Lalamusa (PLGAL)
163. There is a need to improve the quality and relevance of training for employees belonging
to local government department, local council service, and the elected represented of the local
councils. This can be achieved by strengthening institutional infrastructure, delivery, incentives
and standards of training by expanding and upgrading the Punjab Local Government Academy,
Lalamusa (PLGAL). Its role may also be redefined by LG&CD department on the basis of training
needs and in consultation with the Urban Unit.
164. PLGAL cannot cater for training needs of all employees and elected representatives - of
the province at Lalamusa - with existing infrastructure and resources. Moreover, it may not be
cost effective for the local councils to send their employees and elected representative for
training to the Lalamusa campus. Therefore, the need for establishing regional campuses of
PLGAL arises. At a start, perhaps at least one regional campus of PLGAL could be established
at Lahore. It will ensure provision of uniform training nearer to the workplace, and importantly
training needs of a large portion of local council employee and elected representative would be
addressed.
165. The Training budget should also be set at level, which is able to cover the expenses of all
training activities undertaken in the PLGAL including structured development program, short
courses and on the job training. The Training budget should be reviewed against a
benchmarked figure of high performing organizations of developed countries around the world.
166. Some other initial recommendations for improving the efficiency of PLGAL include:
 Restructure PLGAL and provide optimum manpower, so that it can provide quality
training. Arrange capacity building of faculty members to equip them with modern
training techniques, provide market based salary packages and incentives for staff.
 Develop and introduce training policy and procedure.
 Develop training and development strategy, and annual training calendar to circulate
to all local councils.
 Training alone will not bring about sustainable change. Local government department
and local councils must introduce and implement the HR practices for the complete
impact of training to be materialized.
 Promotions should be linked to mandatory trainings. Unless the employee has

attended mandatory training he/she should not be eligible for promotions. Those who
have attended the trainings should qualify for training marks/scores, which should
become part of the quantifications of ACR/PERs.
 TNA be embedded as a permanent feature and conducted regularly after an interval

of two years to identify the gaps in knowledge, skills and attitudes/abilities, in relation
to the strategic objectives at the departmental and organizational level.
 It is necessary that on the job training programs should be planned and conducted
especially for front line staff and councillors.
 Development of Training Management Information System (TMIS) to facilitate

information sharing and fast processing of training data for training needs, promotion
and performance monitoring.
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Empower employees: Motivation
167. Motivation is undoubtedly low among the majority of workers in the TMA. The TO
Infrastructure & Services remarked that no one is happy with the system and that there is a
pervasive climate of disinterest and lack of enthusiasm, resulting in a high number of empty
desks every day, which has worsened in recent years. At the same time, with such a high
number of vacancies in the department, it is difficult to motivate people to perform: the obstacles
to fulfilling departmental tasks result in a fatalist, resigned attitude to the extent that even
prospects of promotion fail to motivate.
168. Faced with these problems, there is a limited understanding of how to engage in effective
motivation of staff across most parts of the TMA. Motivation appears to be generally confused
with discipline and supervision. When questioned about opportunities for motivation and
techniques adopted, senior staff spoke mostly of control mechanisms – warnings and threats of
disciplinary action – as the common means employed. The TO Finance spoke of discipline and
shouting as useful motivating techniques, while other senior staff spoke of the careful explanation
of staff duties and warnings.
169. Some departments, such as Planning and Regulation, also pointed to frustrations with
not being able to resort to the threat of supervisory or disciplinary action by higher authorities
such as the provincial administration. The TO Planning and Regulation pointed out that after the
new elections and establishment of Nazims, the absence of close monitoring by the province
might result in a decline in motivation, performance and productivity, as staff feel less threatened
by the supervisory powers of the Tehsil Nazim than those of provincial authorities.
170. While some departments showed a low level of understanding of methods for motivating
staff, or were simply not interested, departments could pay close attention to strategies for
raising morale, productivity and performance. The main tools of motivation include:
170.1. Meetings to address staff on performance

170.2. Meetings to compare performance of different categories of staff
170.3. Letters of appreciation
170.4. Comments in registers and visitor’s books on staff
170.5. Support for transfers requested
170.6. Sponsorship on training programs and visits
170.7. Incentives such as agreeing a transfer to a staff member’s home district in time
Redesign work
171. As a matter of necessity, Sahiwal too (like Sialkot) has had to engage in a smaller degree
of redesigning its work simply to be able to fulfil its functions in spite of its shortage of human and
financial resources. This provides a potential starting point for a program of intervention, which
looks at redesigning work structures and organization within the TMA. The assignment of
additional charges and other forms of multi-tasking, for instance, may point in the direction of
task- and function-related synergies, and may suggest effective and efficient means of
streamlining the division of labor mandated by the sanctioned establishment and organizational
hierarchy.
172. More substantially, there is significant opportunity for interventions designed to

restructure the incentives on both senior and junior officers in local government. While provincial
control over the size of the establishment and remuneration remains a constraint, the general
absence to date of any form of strategic human resource management leaves considerable room
for small adjustments which have the potential to make a big difference to the attitudes,
motivation, routines, effectiveness and efficiency that prevail among the staff of Sahiwal.
Page 215

F. Sector Assessment - Sahiwal Solid Waste Management
Waste Generation and Characteristics
173. It is important to define the term municipal solid waste (MSW), which is the focus of this
initiative. MSW is a general term for non-hazardous solid waste, which is the waste with which
most people are familiar. Households generate MSW, as do commercial and institutional
establishments such as shops, offices, schools, and public and government buildings. MSW also
includes other wastes, such as non-hazardous wastes from industrial facilities, green waste from
landscaping activities, street sweeping wastes (of significant relevance in Pakistan), and a
relatively small amount of household hazardous wastes, such as residue chemical containers
and cartridges. In addition to MSW, Sahiwal also generates limited amounts of hazardous
wastes from manufacturing and industrial processes, as well as medical wastes from hospitals
and other medical facilities. Although the management of medical and other hazardous wastes
is extremely important, it is only MSW that is considered in this assessment
174. Although there are yet to be detailed waste characterization surveys performed in
Sahiwal in order to ascertain the characteristics and volumes of its MSW, a survey was
completed in 2010 on the MSW being generated in Sialkot, a city within Punjab Province that is
also included in this Project. This was completed as part of an earlier ADB intervention90. For the
purposes of this pre-feasibility assessment of Sahiwal therefore, the results of this previous
survey in Sialkot are referenced in order to provide a broad indication of the characteristics and
amounts of MSW being generated in Punjab cities, being reflective of the situation in Sahiwal
(Figure VI-12). Waste surveys are scheduled for implementation during the PPTA.
Figure VI-12: Waste Survey Implementation (2010)
175. The results of the recent survey conducted under the PICIIP indicated that Sahiwal’s
MSW contains excessive amounts of organic waste (largely food waste and green waste), of the
order of 40 percent of the total waste stream: a common finding for Asian MSW. Next in quantity
are conventional recyclable materials, including plastics (13 percent), paper and cardboard (13
percent) and glass (8 percent). Wood comprised about 4 percent of the waste stream, metals (3
percent), leather and rubber (3 percent) and E-waste just over 1 percent. The balance of about
90
The waste survey was completed for Sialkot during Apr-2010 and May 2010 as an integral part of the ADB
PAK-7321: Punjab Cities Improvement Investment Program, but the characteristics were confirmed to be
similar for Sahiwal and are therefore applicable here. The original survey included the analysis of the
MSW generated by 100 higher, medium and lower income households in each of the three Union
Councils (UCs) of Model Town, Shahabpura and Bonkan. During the assessment, MSW was collected
daily for a period of one week, where it was transported daily to a processing center to be segregated into
individual waste components and carefully weighed. The MSW from selected commercial and institutional
establishments was also assessed as part of the survey in order to assess its overall composition.
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15 percent was comprised of largely indiscernible constituents, including street sweepings and
other generally inert wastes. Figure VI-13 shows this graphically.
Figure VI-13: Sahiwal Municipal Solid Waste Characteristics (Households)
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176. The survey also evaluated the MSW being generated by a selection of commercial and
institutional establishments in Sialkot, which due to their different types of activities naturally
indicated a wide variation of waste composition. Markets and restaurants were found to include
high fractions of food and organic waste, offices and schools include paper and cardboard waste,
and hospitals and clinics of plastics, paper and cardboard, and also food and organic waste.
177. The survey in Sialkot also assessed the amount of MSW being generated in surveyed
Union Councils (UCs). This revealed that the overall average per-capita daily household MSW
generation rate equates to approximately 0.30 kg/capita/day, ranging from about 0.28
kg/capita/day in lower income households to about 0.35 kg/capita/day in higher income
households. Assuming that institutional and commercial MSW generation in the city equates to
25 percent of household generation, and also that street sweepings equate to a further 10
percent, then the overall average MSW generation in Sahiwal (2010) was about 0.41
kg/capita/day equivalent. Moreover, during the five-year period from survey implementation
(2010) to the present (2015), and assuming a nominal per capita increase in MSW generation of
1 percent per annum, it is therefore inferred that Sialkot’s MSW generation is currently of the
order of 0.43 kg/capita/day equivalent. Assuming at this initial stage of analysis that conditions in
both cities are broadly similar, then given Sahiwal’s current population of 392,242 and assuming
a per capita generation rate of 0.43 kg/capita/day, the city is generating of the order of 170
tons/day or 62,000 tons/year.
178. Figure VI-14 overleaf presents initial MSW projections for Sahiwal to the year 2035. This
is based on a range of assumptions, each of which can be modified as further assessment
refines the relevant data. Based on this initial analysis, the assumptions include (i) a current
population of about 392,242, increasing to about 581,574 by 2035, (ii) a per capita MSW
generation rate of 0.43 kg/capita/day equivalent, increasing at 1 percent annually to account for
economic growth, (iii) an assumed current (informal sector) recycling efficiency of 15 percent,
rising to 20 percent (2018) and on to 25 percent (2020) due to recycling efficiency improvements,
and (iv) in the density conversion from tons to m3 for MSW disposal, an in-place compacted
density of 0.70 tons/m3. On this basis:
178.1. The current annual MSW generation for the city of about 62,000 tons/year is
conjectured to increase to over 110,000 tons/year by 2035.
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178.2. Based on the assumed recycling efficiencies being achieved, recyclable material
capture in 2015 of about 9,000 tons/year is predicted to increase to over 25,000
tons/year by 2035.
178.3. The residual MSW, in other words the amount of MSW left after the recycled
materials have been captured, is estimated at this stage at around 52,000
tons/year currently, an amount that is conjectured to increase to over 80,000
tons/year by 2035.
178.4. The disposal volume required to adequately dispose of residual MSW, assuming
that the MSW is not subject to further treatment or recycling beyond that stated
above, is currently of the order of about 75,000 m3/year, increasing to about
120,000 m3/year in 2035, for a total disposal volume demand over this period of
the order of 2 million m3 (Figure VI-14).
Figure VI-14: Indicative Sahiwal MSW Generation
REG-8556: Pre-Feasibility Study Sialkot and Sahiwal Cities

MSW Generation (Preliminary: Subject to Change)
01-Dec-15
SAHIWAL
Population (2015-01) 392,242 Recycling efficiency

Per cap MSW gen. 0.43 kg/person/day 2015 15 percent In place density 0.70 tons/m3
Per cap gen increase annum 1.00 percent 2016 15 percent
2017 18 percent
2018 20 percent
2019 23 percent
2020 beyond 25 percent
Year Population Per Cap Gen. Total Gen Total Gen Recycling Recycl Capture Residual MSW Residual MSW
kg/day tons/day tons/year percent tons/year tons/year m3/year m3/cumulative
1 2015 392,242 0.43 169 61,562 15 9,234 52,328 74,754 74,754

2 2016 400,040 0.43 174 63,414 15 9,512 53,902 77,003 151,757
3 2017 407,993 0.44 179 65,322 18 11,758 53,564 76,520 228,277
4 2018 416,104 0.44 184 67,286 20 13,457 53,829 76,899 305,176
5 2019 424,377 0.45 190 69,310 23 15,941 53,369 76,241 381,417
6 2020 432,815 0.45 196 71,395 25 17,849 53,547 76,495 457,912
7 2021 441,421 0.46 201 73,543 25 18,386 55,157 78,796 536,708
8 2022 450,198 0.46 208 75,756 25 18,939 56,817 81,167 617,875
9 2023 459,151 0.47 214 78,035 25 19,509 58,526 83,609 701,484
10 2024 468,282 0.47 220 80,382 25 20,096 60,287 86,124 787,608
11 2025 477,595 0.47 227 82,801 25 20,700 62,101 88,715 876,323
12 2026 487,094 0.48 234 85,292 25 21,323 63,969 91,384 967,707
13 2027 496,782 0.48 241 87,858 25 21,965 65,894 94,134 1,061,842
14 2028 506,663 0.49 248 90,502 25 22,626 67,877 96,966 1,158,808
15 2029 516,741 0.49 255 93,225 25 23,306 69,919 99,884 1,258,692
16 2030 527,021 0.50 263 96,031 25 24,008 72,023 102,890 1,361,582
17 2031 537,505 0.50 271 98,920 25 24,730 74,190 105,986 1,467,568
18 2032 548,198 0.51 279 101,897 25 25,474 76,423 109,176 1,576,744
19 2033 559,104 0.51 288 104,964 25 26,241 78,723 112,461 1,689,205
20 2034 570,228 0.52 296 108,122 25 27,031 81,092 115,846 1,805,050
21 2035 581,574 0.52 305 111,377 25 27,844 83,532 119,332 1,924,382
Existing Physical Systems and Infrastructure

179. The PFS assessment of the existing SWM system in Sahiwal is based on physical
surveys, field reconnaissance and meetings and discussions with TMA officers, sanitary workers
and the general population. TMA employees have also been interviewed to better understand
existing departmental practices and the existing organizational structure (Figure VI-15). Primary
and secondary collection system components have been assessed, as have the active
dumpsites.
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Figure VI-15: Sahiwal TMA Meetings
(i) Waste Generator Awareness and Source Management

180. Field assessment has revealed significant differences in community SWM practices
throughout Sahiwal. While many lower-density, planned communities are able to maintain
adequate levels of source and community SWM, many high-density areas continue to suffer from
deficiencies. Illicitly dumped waste is extensive throughout the city, with MSW being discarded in
streets, vacant lots, drainage ways and lakeside areas. Historically, in addition to the lacking
municipal SWM system to collect the MSW in the first place, the situation also reflects directly on
the level of awareness and engagement of communities in Sahiwal. In many areas, it is clear
that waste minimization is still an unknown concept, and that source segregation is ad hoc and
being stimulated only by commercial gain from recycled material revenues. The capability and
willingness of residents to store and properly dispose of residual MSW in many areas of Sahiwal
is low.
(ii) Waste Collection and Transfer
181. Overall, it is estimated that only about 30 percent of the MSW being generated in the city
actually enters the municipal SWM system, the balance being disposed of by generators
themselves through burning, burying and dumping within communities: practices that significantly
impact on communities and their respective populations. This is a major issue that is completely
inappropriate for a growing, expanding city such as Sahiwal.
182. There is no door-to-door collection of MSW in Sahiwal, apart from in Fareed Town that is
managed by the private administration of the town. Where a service is provided, inhabitants
themselves dispose of MSW at the nearest communal containers or dumping sites. As a general
practice, street sweepings are placed on the sides of the streets, roads and railway tracks, and in
open heaps. Handcarts are of poor design and low capacity, and are mostly being used to carry
sludge from sewers and drains. Sweepers are hardly provided with any replacements for
damaged tools and equipment. Figure VI-16 shows typical 0.2 m3 roadside bins used for the
onsite storage of MSW. The MSW from these roadside bins is collected by a garbage compactor
during its scheduled trip or otherwise loaded in handcarts and transported to 5 m 3 arm-roll
containers.
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Figure VI-16: Damaged Roadside Bins
183. On site MSW storage infrastructure in Sahiwal comprises of 35 arm-roll containers of

5 m3 size, and eight masonry concrete containers. This infrastructure does not accord to
standard design or practices. There is a lack of uniformity between storage bin types used
throughout the city (Figure VI-17 and Figure VI-18). The physical condition of most of the arm-
roll containers is poor. Some arm-roll containers are placed at entirely inappropriate locations.
Figure VI-17: Arm-roll Container
Figure VI-18 Masonry Container
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184. The number of communal containers and their capacities are inadequate for the existing
demand, resulting in the formation of numerous heaps of MSW spread in different areas of
Sahiwal, an example of which is shown in Figure VI-19.
Figure VI-19: Solid Waste Heap
185. Informal recyclers scavenge for paper, cardboard, glass and metal from the storage
points. Many of the storage points create a nuisance to the surrounding areas due to their
unsanitary state. These locations have also become breeding grounds for flies and mosquitoes.
MSW spreads into the surrounding areas, especially through the scattering of waste components
during windy times. MSW is extensively burned, resulting in significant air pollution.
186. Sahiwal’s municipal SWM collection system is currently divided into three collection
zones (Figure VI-21 overleaf). Information regarding the collection equipment assigned to each
zone is shown on Table VI-20. Appendix SW attached to this report shows the existing
locations of the secondary containers in the system.
Table VI-20: Solid Waste Management Machinery in Different Sanitation Zones

of Sahiwal City
Primary
Zone* Secondary Collection Dumping Site
Collection
Zone-A Nil Armroll Trucks (1 No.) Dumpsite near canal and
Tractor Trolleys (3 No.) railway track
Garbage Compactor Trucks (1
No.)
Zone-B Nil Armroll Trucks (4 No.) Dumpsite near canal and
No.)
Zone-C Nil Armroll Trucks (1 No.) Dumpsite near canal and
No.)
187. Table VI-22 provides an approximation of the amount of MSW that can be collected by
the existing MSW collection vehicles being employed in Sahiwal. As shown, the theoretical
amount that can be collected is of the order of 45 tons per day, or only about 30 percent of the
170 tons per day of MSW generated in the city.
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Figure VI-21: Existing Sanitation Zones
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Table VI-22: Municipal System Collection Efficiency

Solid Estimated
Solid Waste No. of
Sanitation No. of Capacity Capacity Waste MSW
Collection Trips
Zone Machinery (m3) (Kg) Collected Collected per
Machinery per day
per Trip Day (Tons)
Zone A Tractor Trolley 3 5 1,500 4,500 1 4.5
Armroll Truck 1 5 1,500 1,500 2 3
Compactor
Truck 1 4 2,000 2,000 2 4
Zone B Tractor Trolley 6 5 1,500 9,000 1 9
Armroll Truck 4 5 1,500 6,000 2 12
Compactor
Truck 1 4 2,000 2,000 2 4
Zone C Tractor Trolley 2 5 1,500 3,000 1 3
Armroll Truck 1 5 1,500 1,500 2 3
Compactor
Truck 1 4 2,000 2,000 2 4
Total Solid Waste Collected per day in the Served Areas of Sahiwal City 46.5
Collection Efficiency 28%
188. It is clear therefore that the existing equipment compliment is wholly insufficient to
provide an adequate service to the city, even if all equipment is operating at full capacity. The
manual loading and unloading of the vehicles is un-economical in terms of time and effort. Waste
workers are exposed directly to the waste for long time periods, potentially increasing health
risks. Littering is also being exacerbated by MSW escaping from vehicles due it not being
covered properly during transportation.
Waste Treatment and Disposal
189. Two dumpsites are currently designated for the disposal of MSW in Sahiwal, the
locations of which are shown on Figure VI-23 overleaf. These dumpsites are unplanned,
uncontrolled facilities that lack engineered environmental protection systems. In these
dumpsites, wastes are piled directly onto the natural ground surface or on top of one another,
and permanently left uncovered and exposed. Anyone in contact with these wastes faces
potentially serious health risks. Particulate and dust levels can be high at dumpsites such as
these. As dumpsites decompose and degrade, and rainfall penetrates the exposed waste,
contaminated liquids form inside. These liquids, known as leachate, contain organic and
inorganic contaminants, including heavy metals, and represent a significant threat to humans and
the environment. Any downstream uses of these contaminated waters can impact humans
directly.
190. Leachate is also most likely percolating through the bases of these facilities and into the
underlying geologic materials. Here, it can mix with and contaminate the groundwater within
these materials. If this polluted groundwater is later extracted through wells and ingested, it can
cause illness (Figure VI-24). The decomposing waste also produces landfill gas, including
methane, carbon dioxide, and other gas contaminants. These gases are potentially toxic,
explosive, and are potent greenhouse gases that contribute significantly to global warming.
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Figure VI-23: Existing Dumpsites
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Figure VI-24: Dumpsite Leachate and Landfill Gas Impacts
191. The potential impacts from the two active dumpsites are conjectured to be acute due to
their locations and physical circumstances. The dumpsite annotated as Dumpsite 1 is an
elongated fill site, directly adjacent to a primary irrigation canal that traverses in an east-west
direction through the city. At this site, MSW is being placed directly on the natural ground
surface, in some cases only several meters from the canal itself. This not only presents the
potential of atmospheric and subsurface contamination impacts, but could also impact directly on
the canal itself. The dumpsite annotated as Dumpsite 2 is a relatively large, flat area that is
surrounded by urban developments, with similar environmental concerns (Figure VI-25). Both
these dumpsites are destroying otherwise valuable lands, and directly impact on their
surroundings.
Figure VI-25: Solid Waste Dumpsite Near Fareed Town
(iv) Recycling Initiatives
192. Field observations have revealed that there is a significant amount of informal recycling
being conducted throughout the city and at virtually every point in the system: at the households,
at the community collection bins, from the roadsides and at the dumpsites. These informal
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operations include the manual segregation, collection and consolidation of materials by informal
recyclers known as rag pickers, for on selling to recycling traders, where more detailed sorting is
carried out. Hence metals, plastics and paper such as newspaper and magazines are
segregated (Figure VI-26). Although the informal recycling operations are highly efficient in
being able to segregate, consolidate and sell recycling materials, many of these operations
operate under unhealthy, often dangerous conditions that do not meet acceptable health and
safety standards. These issues are particularly acute at the dumpsites.
Figure VI-26: Recycling Operations
Regulations and Enforcement

193. In Pakistan, SWM is the responsibility of municipal governments. The Government of
Punjab passed the Local Government Act 2013, which describes the constitution of local
governments, structure and functions of district councils, municipal committees, and metropolitan
and municipal corporations. According to the Act, Sahiwal is the designated municipal
corporation, with the Mayor as its executive head, and with the Deputy Mayor performing these
functions during the Mayor’s absence. The Chief Officer coordinates and facilitates functions
assigned to the municipal corporation. Subsection K of Section 87 of the Act provides that
services including sanitation, solid waste collection, the sanitary disposal of solid, liquid,
industrial, and hospital wastes, including landfill sites and recycling are the responsibility of
municipal corporations. Previously, Section 54 of Punjab Local Government Ordinance 2001
envisages the powers and functions of the TMA regarding SWM.
194. In March 2005, the Government launched its National Environmental Policy (NEP), which
provides an overarching framework for addressing the environmental issues facing Pakistan,
particularly the lack of SWM, the pollution of freshwater bodies and coastal waters, air pollution,
deforestation, natural disasters and climate change. Section 5 of the policy recommends the
integration of environmental concerns into development planning as an instrument for achieving
the objectives of the policy. This applies to SWM, where it encourages the reduction, recycling,
and reuse of municipal and industrial wastes, the development and enforcement of rules and
regulations for MSW management, and development and implementation of strategies for
integrated waste management91.
91
http://environment.gov.pk/NEP/Policy.pdf
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195. The Pakistan Environmental Protection Act (PEPA) was promulgated on 6 December
1997, by repealing the Pakistan Environmental Protection Ordinance of 1983. Guidelines for
SWM are notified under PEPA. This act describes the establishment of the Pakistan
Environmental Protection Council, environmental protection agencies on federal and provincial
levels, and environmental tribunals and their functions and powers. Section 11 of this act
prohibits the discharge of waste pollution, while section 12 relates to IEE and EIA
implementation. Due to the passing of the 18th Amendment to the Constitution of Pakistan, the
Federal Ministry of Environment was devolved to the provincial level on 30 June 2011. Other
relevant regulations are summarized as follows:
195.1. Punjab Municipal Solid Waste Management Guidelines, 2007: There is no

consolidated Act regarding SWM; however, these guidelines provide general guidance to
provincial Government departments, local governments, private operators and other
agencies that operate SWM activities in urban areas. The present set of guidelines is
aimed to cover only MSW. Various components of SWM such as waste generation and
collection, waste transfer, recovery of useful components, waste incineration,
composting, bio-gas generation and land filling are covered in these guidelines. They
provide technical guidance to minimize environmental impacts. For the disposal of waste
(landfilling), they provide general design and operational guidelines and explain the
pollution control systems necessary for landfill sites with design details. As far as
environmental monitoring is concerned, the guidelines also prescribe the national
environmental quality standards for municipal and liquid industrial effluent and
groundwater quality monitoring standards.
195.2. Hospital Waste Management Rule 2005: This rule defines the responsibilities of
hospital waste management to hospitals, including the team composition for waste
management and the duties and responsibilities of the team. It also provides guidance in
the preparation of hospital waste management plans and procedures for the segregation,
collection, storage and disposal of waste and the issuance of licenses to contractors
handling waste.
195.3. Hazardous Substance Rules, 2003: This rule deals with the handling, storage,
transportation and health and safety procedures to be followed in the workplace. This
includes the generation and handling of any kind of hazardous substance (solid, liquid
and gas) as listed in Schedule I of the rules. There are also guidelines in the act for the
provision of safety plans, waste management plans, hazardous material transportation
procedures as well as reporting mechanisms in case accidents take place.
195.4. National Environmental Quality Standards (NEQS), 2010: In order to control

environmental pollution, the NEQS furnishes information on the permissible limits for
effluent parameters for municipal and industrial discharges. In this case, the standards
for air quality, noise and wastewater quality are relevant. This information is available at
the official website of Pak EPA.
195.5. Canal and Drainage Act, 1873: This act contains provisions for the prevention of
pollution of natural or man-made water bodies. It prohibits the discharge of any solid or
liquid or combination of both from any source into any river, canal or drain including
natural channels (Sec 59A (4)).
195.6. SMART Rules, 2001: SMART Rules or Self-Monitoring and Reporting by

Industry Rules, 2001 are applicable to all industries releasing effluents and gaseous
emissions into water bodies and the atmosphere. According to the type of industries, the
environmental monitoring of effluents and gaseous emissions is required monthly,
quarterly or biannually.
195.7. Factories Act, 1934: This law governs the employment of labor, working hours,
working conditions and facilities to be provided in the workplace. Sections 14 to 33 of the
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act cover issues related to the work environment of laborers including ventilation (sec
14), drinking water conditions (sec 11), all the issues related to working environment of
laborers including ventilation (14), drinking water conditions (19), precautions against fire
hazards (sec 22) or other hazardous operations within working areas (sec 33).
195.8. Antiquities Act 1975: This Act protects Pakistan’s cultural resources. Antiquities
are defined in the Act for example as ancient products of human activity, historical sites,
sites of anthropological or cultural interest, and national monuments.
195.9. Land Acquisition and Resettlement Act, 1894: This law regulates the
acquisition of land for public purposes and provides compensation in the form of cash, an
alternative land allocation or through other equitable arrangements (Sec 31).
195.10. Building Code of Pakistan 2007: The provisions of the Building Code are
applicable for the engineering design of structures and related components.
Institutions
196. Since the local government reforms in 2001, several services previously in the domain of
urban or rural local councils have been spatially and functionally integrated at the Tehsil level in
Sahiwal. This ensures that the provision of municipal services is now the sole functional
responsibility of the Sahiwal TMA. Within the TMA, the Tehsil Municipal Officer (TMO), the
highest ranking official in the TMA, heads the executive branch of the Tehsil government. The
executive branch is divided into four departments, and a Tehsil Officer (TO) heads each of the
departments (Finance, Planning and Coordination, Regulation and Infrastructure and Services)
to carry out its functions. The Chief Officer and staff are responsible for the operation and
management of municipal services.
197. The existing SWM staff of the TMA are however insufficient in both numbers and training
to properly manage the existing SWM system, and as previously indicated, also lack the
equipment and systems needed to provide a functioning system to meet current demand. As
shown on Figure VI-27, the department is understaffed in key managerial positions, and also in
sanitary workers, where each sanitary worker services a population of well over 1,000 people,
which is well above the region’s average of between 500-700 population.
Figure VI-27: Existing Solid Waste Management Staff

Position (Management) Staff Position (Operations) Staff
Administrator 1 Chief Sanitary Inspector 2

Tehsil Municipal Officer (TMO) 1 Sanitary Inspectors 1
Tehsil Officer (Finance) 1 Assistant Sanitary Inspector 0
Sanitary Supervisors 12
1
Tehsil Officer (Infrastructure & Services ) Sanitary Workers 277
Tehsil Officer (Planning & Coordination) 1 Drivers 10
Tehsil Officer (Regulation ) 1 Water Carriers 18
Lorry Fillers 48
Spray Man 8
Office Staff 5
Total 6 Total 381
Summary of Current Sector Performance
198. In its current form, the SWM system of Sahiwal is wholly incapable of addressing the
immense challenges facing the SWM sector: tasks that are considered vital in order to ensure
adequate public health and environmental protection standards going forward. As Sahiwal’s
residents are acutely aware, SWM is a critical issue that currently manifests itself in the
widespread illicit dumping of wastes throughout the city. This section highlights the magnitude of
the waste problem by summarizing current sector performance and key deficiencies.
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Waste generation is growing: it’s a serious issue
199. Preliminary projections infer that the city’s annual residual MSW generation rate of about
52,000 tons/year is conjectured to increase to over 80,000 tons/year by 2035, resulting in a total
disposal volume demand over this period of the order of 2 million m3. The ‘do-nothing’ scenario
for the city would therefore be serious, as all of this MSW would be dumped throughout the city,
severely impacting on public health and the environment, and contributing significantly to climate
change-related atmospheric emissions.
Regulations are fragmented: enforcement is poor
200. Although national and provincial regulations provide a basic level of SWM sector
regulation, regulatory enforcement capabilities are extremely weak, resulting in SWM violations
going virtually unchecked, notably the improper handling of MSW, and widespread illicit dumping
of wastes throughout the city.
Institutional transition to the Sahiwal WMC is needed urgently
201. The TMA’s existing SWM operation is grossly understaffed, lacking the managerial,
technical and financial capabilities as well as the basic equipment and systems needed to
provide even a rudimendary service to meet current SWM demands. Establishment and
extensive capacity development of the proposed Sahiwal WMC is needed at the soonest time, in
order for it to evolve into a fully functioning, self-sustaining and highly efficient utility, operated on
modern principles of utility management.
Municipal service delivery is extremely weak
202. SWM service delivery is heavily constrained at virtually every level of SWM system
provision, including extremely low levels of MSW collection, inefficient MSW transfer, the
complete lack of environmentally compliant treatment and disposal facilities, the abandonment of
dumpsites, and overall, the lack of public awareness of and involvement in SWM and related
environmental practices throughout the city.
Informal recycling is effective, but the impacts are severe
203. Although existing informal recyclers divert and recycle valuable components of the waste
stream that provides livelihood for low income and disadvantaged groups and results in
significant cost savings in MSW transfer and disposal, the operations cause acute, negative
environmental and public health impacts for the city. Informal recycling sector workers are
exposed to the potentially serious public health risks related to improper waste management
practices and there is a lack of enforcement of occupational health and safety regulations and
standards in the sector. These practices also cause considerable environmental damage
throughout the city, largely through the practices of itinerant waste scavenging, which results in
the scattering of wastes at waste collection points, within the streets and vacant land areas.
G. Sector Strategy - Solid Waste Management

204. The SWM component of the PICIIP is a major contribution to developing Sahiwal into the
inclusive, safe, green, liveable, resilient, sustainable and competitive city that it strives to be. To
effectively achieve this, SWM must be approached within the over-arching guiding frameworks of
the city’s Integrated City Development Strategy (ICDS) and Climate Risk Vulnerability
Assessment (CRVA) as presented in Chapter IV and Chapter V of this report respectively. The
three are mutually supportive, as are the linkages between SWM and the other proposed
investment components of water, sanitation and drainage, transport, and institutional
development. Figure VI-28 illustrates these linkages.
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205. In summary, the ICDS establishes the urban form, settlement patterns and land use
patterns that will reduce sprawl and create a more compact city supporting a more efficient and
economical approach to SWM. The ICDS recognizes the need to address SWM from the human
community-based level and proposes strategies that support this. It also proposes urban
development that addresses CRVA climate change responses, in which SWM plays a critical role
by helping to protect water source quality, prevent flooding through managed garbage disposal
and promote waste minimization, recycling and environmentally compliant residual MSW
treatment and disposal in order to reduce greenhouse gas and other contaminant emissions. The
overall aim is a healthier, more economically productive city leading to improved social
conditions. The institutional component integrates all of this through policy, regulation, plans at
various levels, agency management and municipal financial management.
H. Guiding Principles
206. The purpose of this SWM roadmap is to guide policy, planning, investment programming
and implementation for the SWM sector over a medium term planning horizon in order to improve
sector performance, progressively achieve intended outcomes and support the city’s overall
development goals. It takes into consideration key aspects of the existing system and its
stakeholders, including the various levels of Government, the private sector including informal
recyclers, and the over 350,000 residents of Sahiwal, on whose sustained involvement and
support the system relies.
Figure VI-28: Integrating SWM into the PICIIP
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207. The SWM sector roadmap is guided by the following principles:
 MSW is a resource.
 All individuals must assume responsibility for the MSW they generate.
 Source segregation is key to any sustainable solution.
 The informal sector plays a critical role in the management of MSW.
 Prevention, reduction and recovery for recycling and reuse should be a priority focus.
 Active public participation is essential.
 Private sector participation should be encouraged and an enabling environment
created.
 Economic incentives need to be established.
 All sectors and levels of Government have different roles and responsibilities in
ensuring an effective SWM system, and these should be integrated.
 A regional solution to the SWM challenges in Sahiwal Division should be prioritized.
I. Sector Goals and Objectives
208. SWM services in Sahiwal can be improved significantly by building on the existing
system and moving progressively towards an integrated, transparent and efficient system that
over time will meet internationally recognized standards and practices. This vision includes:
208.1. An effective legislative and regulatory framework for the environmentally safe and
healthy management of MSW generated in Sahiwal.
208.2. Developing a SWM solution for Sahiwal city that can be progressively expanded
to other cities and urban areas of Sahiwal Division, eventually creating a fully integrated
regional solution to the division’s SWM challenges over the long term.
208.3. Establishment and development of the Sahiwal Waste Management Company

(Sahiwal WMC) supported by efficient and coordinated institutions in order to effectively
manage the city’s SWM sector over the long term.
208.4. An involved and environmentally-aware Sahiwal public, able and willing to

progressively reduce total waste generation, maximize waste segregation for subsequent
recycling, and willing to promote efficient and sustainable community collection, improve
community health conditions and progressively eliminate illicit dumping.
208.5. A sustainable and equitable primary collection system serving all areas of
Sahiwal, with the gradual expansion of direct house-to-house collection using appropriate
motorized vehicles wherever possible, and a highly organized secondary storage
collection point system where it is not, with the gradual elimination of waste picking in the
streets and burning and illicit dumping in vacant areas.
208.6. An efficient and expanding MSW collection service covering all the communities
of Sahiwal, with regularized collection and the efficient and environmentally safe transfer,
treatment and disposal of MSW.
208.7. A vibrant and sustainable recycling system, building on the existing habits of
primary source segregation (at households and commercial and institutional
establishments) and improved secondary segregation, where the recycling of MSW is
optimized within a healthy and safe working environment.
208.8. Creating an enabling environment and supporting private sector involvement in

the segregation, recycling, collection, transfer, treatment and disposal of wastes, and
prioritizing the involvement of lower income recycler groups wherever possible.
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209. In this context, Table VI-29 provides outline performance indicators for the SWM sector,
with indicative targets for a medium-term (2021) milestone.
Table VI-29: SWM Sector Performance Indicators

SWM Sector Performance Indicators
Indicator Performance Target

2016 2021
MSW Reduction and Recycling
Recycled MSW as a percentage of total MSW (Tons). < 15 percent 30 percent
Number of Sahiwal residents aware of and involved in SWM < 10 percent 80 percent
issues as a percentage of total population.
MSW Collection, Transfer and Disposal
Percentage of MSW generators serviced by the MSW municipal < 60 percent 95 percent
collection system (residential, institutional and commercial) as a
percentage of total MSW generators.
Percentage of residual MSW reaching the proposed 0 percent 95 percent

environmentally compliant treatment and disposal facility as a
percentage of total residual MSW generation.
Number of missed or late MSW collection cycles as a percentage > 40 percent < 10 percent
of total cycles.
Institutions/Cost Recovery
Percentage of Sahiwal WMC personnel that are fully trained 50 percent 100 percent
Percent of SWM generators paying a SWM tariff. 0 percent 80 percent
J. Sector Roadmap - Solid Waste Management

210. Driven principally by the Planning & Development Department and the Urban Unit,
Government now proposes major reforms to Sahiwal’s SWM sector, not only for the city of
Sahiwal itself, but also of Sahiwal Division’s six other key urban areas of Okara, Pakpattan,
Chicawatni, Depalpur, Renala Khurd and Arif Wala. It is proposed that this is to be achieved
through the establishment of a new regional/divisional entity, the Sahiwal WMC, which will be
responsible for SWM services within the urban areas of Sahiwal Division, in conjunction with the
respective Tehsils92. It is also proposed that these TMAs will share their SWM resources with
this regional entity, which will take responsibility for SWM on a regional scale. The arrangements
are to be formalized through a Services and Asset Management Agreement (SAMA), to be
signed between participating TMAs and the Sahiwal WMC. Registered with the Securities and
Exchange Commission of Pakistan (SECP), the Sahiwal WMC will be guided by a Board 93 and
92
Government’s proposals to establish the Sahiwal WMC are detailed in the Sahiwal Waste Management
Company Project Document, dated Jul-2015, prepared by The Urban Unit.
93
It is envisioned that the Board will be chaired by the Commissioner of Sahiwal Division and include senior
representation from The Urban Unit (vice-chair), Planning & Development Department, Local
Government, Chamber of Commerce, Lahore Waste Management Company, Punjab Municipal
Development Fund Company (PMDFC) and the University of the Punjab.
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have a full staff compliment as shown on its proposed organization chart (Figure VI-30). The
proposed functions of the Sahiwal WMC include the following:
 Formulate and implement SWM plans and strategies.

 Collect MSW from community collection points in Tehsils and transfer it to transfer
stations.
 Transfer MSW from the transfer stations to the regional waste treatment and disposal
facility.
 Undertake sustainable recycling and resource recovery initiatives.
 Dispose of residual MSW in an environmentally appropriate manner.
 Undertake waste clean-up operations.
 Provide technical assistance and capacity building to involved TMAs.
Figure VI-30: Proposed Sahiwal WMC Organization Chart
Board of Directors
Chairman BOD
Managing Director
Legal Advisor Personal Assistant
Company Secretary and

GM HR & Admin GM Operations GM P&C Chief Financial Officer
Manager Legal
Assistant Manager
Manager HR Manager Planning Manager Operations Manager Contract
Corporate Affairs Manager Accounts
AM Operations Assistant Manager

Assistant Manager HR AM Planning AM Contract
Accounts
Manager Segregation and TMA Chief Sanitary

Manager Admin Manager Procurement Manager Finance
Composting Inspector
Same staff composition for each

Assistant Manager AM Segregation and TMA (Sahiwal, Okara, Chichawatni, Assistant Manager
AM Procurement
Admin Composting Depalpur, Renala Khurd, Arifwala, Finance
Pakpattan) Total 21 Positions
Manager Landfill Site Manager Workshop
AM Landfill Site AM Workshop
Manager GiS Manager IT
AM GiS AM IT
Manager Marketing Manager Communication
AM Marketing AM Communication
211. In turn, it is proposed that the involved TMAs will then continue to implement their
respective primary collection systems, that is, collecting the MSW from each MSW generator
(residence, commercial or institutional establishment), transport it to the community collection
points, and then assist to transfer the MSW from the collection points to the secondary collection
system operated by the Sahiwal WMC. This will necessitate vast improvements to the existing
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primary collection systems in the cities in order to improve overall collection efficiencies from the
currently low efficiencies (characterized by Sahiwal’s current 30 percent efficiency) eventually to
efficiencies approaching 100 percent. It is also proposed that the TMAs will also retain street
sweeping and road cleaning operations within their jurisdictions.
212. Technically, the proposed Sahiwal Division regional SWM system is a relatively
pioneering concept for Pakistan, as until now, SWM systems in the country have been largely
restricted to individualized systems serving a single city or urban area. As outlined above, the
regional concept is based on the development of a large regional MSW disposal facility that can
be shared by many urban areas, and progressively over the long-term, by peri-urban and even
rural areas within the vicinity. SWM systems and disposal facilities in particular need economies
of scale: the World Bank estimates that under normal considerations, the minimum population to
be served by a sanitary landfill should be at least 400,000 residents, an opinion that is shared by
this Project team. As the combined populations of the city of Sahiwal and the Division’s six other
urban areas exceeds 1.3 million, then centralizing a single facility will be of significant advantage
going forward. As shown on Figure VI-31, the seven urban areas in Sahiwal Division included in
the proposed Sahiwal WMC service area are spaced uniformly between 10 km and 35 km apart,
but up to about 100 km (road distance) between Depalpur and Chichwatni. It is therefore logical
that a regional facility is located between these points, and wherever possible nearer to the
primary MSW generation areas, for example, within the Sahiwal-Okara-Depalpur-Pakpattan
quadrangle.
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Figure VI-31: Sahiwal Division Project Area
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213. A SWM system based on a single, centralized regional disposal facility approach is
however heavily reliant on realistic, cost efficient transport logistics. This is particularly relevant in
the case of the Sahiwal WMC’s service area, as it extends over an area of at least 80-km east-
west and up to 40-km north-south. Effective transport logistics is therefore the key to the
solution. It is also important to note that Sahiwal Division has a reasonably well-maintained
arterial road backbone, notably the N5 highway that traverses northeast to southwest along the
Sahiwal WMC service area’s northerly extent, passing directly through Chichawatni, Sahiwal,
Okara and Renada Khurd. Passable roads that serve Depalpur, Arif Wala and Pakpattan also
provide connectivity to this backbone. The regional transport system will also need to incorporate
transfer stations located strategically within each of the urban areas, together with large-capacity
transfer truck fleets that will provide efficient, long haul transfer of MSW to the regional facility.
214. This section therefore presents the PFS-level technical findings for the Sahiwal SWM
system as so far identified, which represents the first phase of analysis towards development of
the regional Sahiwal WMC initiative. The section is divided into the following subsections, in
order to explain the various physical components and support programs of the proposed system
and first tranche investments:
Section VI-4.1: The primary MSW collection system that will serve the city of Sahiwal, for
potential replication to the Division’s other cities. Due to urban density and accessibility
variations within the city, three types of collection system are proposed, as discussed in
this section.
Section VI-4.2: The MSW treatment and transfer system that potentially includes
centralized recycling together with a transfer system to transfer residual MSW to the
centralized disposal facility.
Section VI-4.3: A strategically located regional disposal facility, designed to initially

accept the residual MSW of Sahiwal city, and later to progressively accept the MSW of
other urban areas in the Division as they are commissioned into the system.
Section VI-4.4: A dumpsite remediation program, in order to progressively remediate

and close existing and abandoned dumpsites in the city.
Section VI-4.5: Sector support programs in order to assist in the formation and capacity
building of the Sahiwal WMC, strengthen the primary collection operations of the Sahiwal
TMA, improve public awareness and engagement, and support recycling initiatives.
Primary MSW Collection System
215. MSW collection systems in many parts of the world involve the direct collection of
residual MSW from households or commercial and institutional establishments by collection
vehicles for immediate transport to transfer stations or disposal facilities. This is usually the most
efficient system of collection on a cost-per-ton collected basis. In parts of Asian cities however,
this collection method is just not possible or feasible due primarily to the high density of
development, extreme narrowness of streets and heavy traffic congestion. This is the case in
Sahiwal, where although certain areas can be served by door-to-door collection directly (albeit
utilizing smaller collection vehicles), most of the city has to be served by a two-step primary
collection system. This two-step system involves: (i) the collection of MSW directly from the
generator source by manual handcarts, or small-scale collection equipment (known in Pakistan
as ‘mini dumpers’) for transfer to a community collection point for temporary storage, followed by
(ii) collection from the community collection points by waste collection vehicles for direct transfer
to a transfer station or disposal facility. As a result, it is necessary to adopt a three-system
approach to Sahiwal’s primary collection system, summarized as follows:
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216. System 1: A manual door-to-door MSW collection system where in each collection area,
a worker will collect segregated MSW and recyclable materials on a daily basis utilizing a human-
powered handcart (0.2 m3) as shown in Figure VI-32, and transport it to a designated community
collection point. A 4m3 size waste compactor truck will then collect the MSW from the collection
point for transfer to a transfer station or disposal facility.
Figure VI-32: Concept Design: Handcart (0.2 m3)
217. It is proposed that each 0.2m3 handcart will consist of two cabinets each of volume 0.1m 3
in which containers will be placed. Once the containers are filled with MSW, the sanitary worker
will lift the container and unload it into a 0.8m3 communal container at a community collection
point for later pick up (Figure VI-33).
Figure VI-33: Community Container
218. System 2: An automated door-to-door collection system where in each collection area, a
two-person team will collect segregated MSW and recyclable materials utilizing a motorized ‘mini
dumper (1m3) as shown in Figure VI-34. One worker will drive the dumper and the other will
collect MSW door to door along the streets. Once a mini dumper is filled, the MSW will be
transferred to a 7m3 waste compactor vehicles for transfer to a transfer station or disposal facility.
219. System 3: A direct, door-to-door collection system utilizing 4m3 waste compactor
vehicles (Figure VI-34), where MSW is collected directly from the curbside adjacent to each
MSW generator for direct transfer to a transfer station or disposal facility. Up to four sanitary
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workers will operate each garbage compactor: one as a driver and the others to collect, load and
unload the MSW.
Figure VI-34: Proposed Collection Equipment
Mini Dumper (1 m3) Garbage Compactors (4 m3)
220. Defining the precise number of each of these systems needed to serve the entire city of
Sahiwal will obviously require a detailed analysis of the conditions of each street in terms of
accessibility and the possible locations of community collection points. Defining these systems
will also require liaison with local UC officials and other stakeholders, as in addition to technical
considerations, other considerations are necessary in defining these areas. This includes for
example obtaining approvals from residents to locate community collection points near to their
residences. At this PFS stage however, an initial planning-level analysis has been conducted in
order to provide an ‘order of magnitude’ assessment of the approximate ratio of each of the three
systems required to serve the city. This has included initial analysis of street widths from
available satellite imagery and CAD information, supported by cursory observations of field
conditions. Figure VI-35 shows the indicative collection areas for UC 45 in Sahiwal, which has
been utilized as an example.
221. On this basis, it is inferred at this preliminary stage that 15 percent of Sahiwal’s
generated MSW will be collected utilizing System 1, 45 percent utilizing System 2 and 40 percent
utilizing System 3. Based on local field performance estimates provided by the Urban Unit, at this
conceptual level, this in turn equates to approximately 72 individual systems for System 1, 62
individual systems for System 2, and 41 individual systems for System 3. As part of the
investment project, it is also proposed to strengthen street sweeping and cleaning operations
within the collection areas, where on the above basis, an estimated 86 street sweepers and 3
mechanical sweepers will also be needed for the system.
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Figure VI-35: Indicative Collection System Areas for UC 45
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222. The primary collection system will also support informal recycling initiatives implemented
throughout the city. Through the proposed public awareness and engagement program, MSW
generators will be encouraged to optimize source segregation of their MSW to facilitate recycling.
The primary collection equipment (carts, motorized collection vehicles and collection point
storage bins) can also be ‘multi-compartmentalized’ to allow for the segregated storage of
recyclable materials and residual MSW. To facilitate this, each household is to be provided with
suitably designed collection containers for the safe storage of recyclable materials and MSW.
MSW Treatment and Transfer System
223. The Government is also currently proposing to establish a centralized segregation plant
(referred to in Government reports as a waste segregation, treatment and disposal facility, or
‘STD facility’) in Sahiwal in order to centralize the segregation, diversion and recycling of
fractions of the city’s MSW stream delivered to it by the primary collection system. The concept,
as presented in a technical report prepared by The Urban Unit, is currently for Government
consideration. As presented in the report, the proposed semi-mechanized facility consists of
three primary components: a segregation plant, windrow area and composting plant, in order to
segregate, divert and sell recyclable materials, following which the finer organic materials will be
composted utilizing windrow technology in order to produce a compost also for sale on the open
market.
224. As outlined in the Report, it is proposed that MSW trucks arriving at the facility will be
weighed over a weighbridge. MSW will then be placed on a tipping floor where bulky items
such as cardboard will be removed. A front-end loader will then load the waste into a loading
area where it will enter an inclined conveyor, with a rotating drum with tines controlling the
waste flow. The MSW will then load onto a horizontal conveyor, where sorters will manually
remove target recyclable materials and place them in ducts leading to containers, following
which the materials will then be transferred to larger containers for haulage. A magnetic
separator will then remove metals from the residual MSW on the conveyor, following which
the MSW will be screened to remove organics less than 100-mm diameter. The larger
material from this process is to be considered as refuse derived fuel (RDF), whereas the finer
materials are to be composted utilizing windrow technology to produce compost. The
proposed facility layout plan is shown on Figure VI-36
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Figure VI-36: Proposed STD Facility Layout Plan
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225. The capital cost of the facility is estimated by the Urban Unit to be PKR 123.69 million
(US$ 1.17 million equivalent). Annual operation and maintenance costs are estimated at
PKR 30.82 million (US$ 293,000 equivalent), not including capital cost repayments or
depreciation. As shown in Table VI-37, the revenues from the facility are estimated by the
Urban Unit to be PKR 42.68 million (US$ 405,000 equivalent).
Table VI-37: Estimated Revenues

Sr Waste Waste Waste Selling Yearly
No. Composition Recovered Recovered cost Revenue
Component 0.80 Tons/year kg/year Per Kg generated
Segregation (Rs-
Efficiency Million)
i Plastic & Rubber 2.40 760 760,320 7.00 5.32
ii Metal (Iron) 1.60 507 506,880 16.00 8.11
iii Paper 4.00 1,267 1,267,200 3.00 3.80
iv Cardboard 4.00 1,267 1,267,200 7.00 8.87
v Glass 2.40 760 760,320 2.00 1.52
vi Wood 4.00 1,267 1,267,200 5.00 6.34
vii Bone 1.60 507 506,880 4.00 2.03
viii Organic/compost 32.00 10,138 2,027,520 3.00 6.08
ix RDF 16.00 5,069 5,068,800 0.12 0.61
x Inert Construction Debris 12.00 3,802 3,801,600 - -
Revenue Generated per Year 42.68

Revenue Generated per Month 3.56
226. Although the report includes details of the technical design of the STD facility, there is
little information regarding both the long-term availability of suitable recyclable components in
Sahiwal’s residual MSW stream that would enter the facility, or the long-term economic viability
of secondary markets for the recycled materials. In Sahiwal as in many parts of Asia, the
informal recycling sector is highly organized, in that although they often operate under unhealthy
and sometimes dangerous public health conditions, they are astute in targeting, segregating and
capturing high value components of the MSW early in the waste chain by purchasing materials
directly from generators at source, capturing materials during primary collection activities, and
scavenging for recycled materials at the community collection points. Due to these informal
activities, it is therefore likely that many of the higher value recyclable materials in Sahiwal’s
waste stream have already been diverted from the waste stream by the time that the MSW trucks
arrive at the facility. This could affect system viability.
227. It is therefore imperative that during further recycling facility feasibility assessment,
sufficient field surveys and technical analysis is performed on the residual MSW that is proposed
to be processed at the facility, in order to be sure that the estimated recyclable targets can
actually be achieved as planned on a long-term, sustainable basis. In this regard, further
analysis should be an activity of the subsequent PPTA including for example, conducting field
surveys of incoming MSW in order to further ascertain recycled material quantities and quality.
As common in many parts of Asia, secondary markets for the resale of recycled products can
also be extremely volatile, especially relating to the more price-marginal recycled materials and
particularly compost, and this therefore also needs careful evaluation. In addition to compost
processing costs, the costs of the transportation and retailing of this product also need to be
factored in. Also, if the facility is commissioned as planned, it would most likely affect the
existing informal recycling subsector in Sahiwal by for example increasing product supply, and by
impacting on the operations and livelihoods of certain existing rag pickers by capturing materials
that they would normally collect. As these people are often among the poorest, socially
disadvantaged, and economically fragile, it may therefore be necessary to mitigate their loss of
livelihood by for example, integrating them into the new recycling system in some way.
228. Although the above feasibility and due diligence activities are needed in order to confirm
the viability of the STD facility, for PFS assessment purposes, it is assumed that the STD facility
will be included as an integral component of the Project.
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229. The residual MSW arising from the STD facility and/or the primary collection system
needs to subsequently be transferred to the proposed centralized disposal facility (discussed
later). In this regard, the location of the STD facility and the type of transfer system adopted is
largely dependent on the distance of the disposal facility from Sahiwal city. If the disposal facility
is located close to the city (usually up to about 15-km), then the STD facility could actually be
located within the disposal facility site area itself, as it would be close enough to be within
economical reach of the primary collection waste trucks. In this scenario, following processing,
the residual (unsegregated and unrecycled) MSW from the STD facility could easily be
transported over the short distance from the STD facility to the disposal area within the disposal
site utilizing conventional loaders and dump trucks.
230. If, however the disposal facility is located farther away from the city, beyond the
economically feasible hauling range of the primary collection vehicles, then the STD facility would
need to be located at a separate location close enough to the city to be within economical range
of the primary collection vehicles. In this scenario, it would also be necessary to develop a
transfer station adjacent to the STD facility so that the residual MSW from the STD facility could
be transferred into larger container vehicles for economical transfer to the regional disposal
facility. This is further discussed later.
Disposal System
(i) Initial Siting Assessment

231. As previously discussed, a single, international-standard centralized disposal facility is
planned in order to accommodate the residual MSW of the city of Sahiwal and subsequently and
progressively, the six urban areas of Sahiwal Division over the long term. Based on estimates
from the Urban Unit’s Sahiwal WMC Project Document, the Division’s current cumulative service
population of around 1.3 million is destined to increase to about 2.6 million by 2035, and through
further extrapolation, to about 5.8 million by 2060. Although largely conjectural at this stage, this
infers a regional MSW disposal demand of around 8 million m 3 by 2035 and more than 30 million
m3 by 2060, or 45 years from now.
232. Such a regional facility would be different than is usual in Pakistan, in that instead of
spreading residual MSW in thin layers over a large area as is the conventional practice, the MSW
in the landfill will be densely compacted in specific cells to form a single pyramid of waste, and
incorporating a full suite of modern engineered environmental protection systems, as described
later. This type of configuration is preferable as the surface morphology in the Sahiwal area is
basically flat to slightly undulating94. Initial estimates indicate that by 2035, the entire facility,
including the landfill footprint and ancillary areas, would be around 50 hectares in size, growing
to about 100 hectares or more in size by the year 2060. The challenge therefore is to now
identify and develop a suitable site that is capable of accommodating such a facility.
233. From satellite imagery review and cursory field observations conducted in the PFS, it is
apparent that the land use within virtually the entire Project area of Sahiwal Division is either
agricultural or urban development. Outside of the urban areas, these agricultural lands are vast,
with almost all the available land being utilized for agriculture. Figure VI-38 shows a typical
agricultural area within Sahiwal Division. As shown, it is characterized by villages (chaks) that
are spaced at distances generally between 0.5 km to 1.5 km apart, with smaller settlements and
individual dwellings being interspersed between them. As shown also, virtually the entire area is
covered in agriculture. Superimposed on the map is a white square of approximately 1 km
(1,000 m) dimensions, which represents, at this stage, the envisioned size of the proposed
regional disposal facility for Sahiwal Division. Given that such a facility should be located away
from existing developments, preferably at least 500 m distance from them, it is clear that siting a
facility in this location would be problematic, and this is reflective of the entire area. Firstly,
94
Between Renala Khurd and Chichiwatni, a distance of about 90 km, the elevation difference is 25 meters,
computing to an average gradient of 1 vertical to 3,600 horizontal. Between Sahiwal and Pakpattan, a
distance of about 40 km, the elevation difference is about 10 meters, computing to an average gradient of
about 1 vertical to 4,000 horizontal.
Page 243
regardless of how it would be designed, it would require the involuntary resettlement of existing
households, and the conversion of 100 hectares (one million square meters) of existing
agricultural lands, resulting in significant loss of livelihood. In addition, fitting such a large facility
in an area such as this would inevitably result in the facility being close to one or several villages,
and this is also likely to cause impacts of potential significance. The siting, permitting,
construction and operation of such a facility in a location such as this therefore appears to be a
daunting and lengthy proposition, and of questionable success.
Figure VI-38: Typical Agricultural Area Within Sahiwal Division
234. An initial site reconnaissance has therefore been conducted as an integral part of the
PFS in order to attempt, in the limited time of the PFS, to identify sites that are potentially
suitable as the location of the regional disposal facility. This reconnaissance has revealed
however that there are very few suitable sites that would not result in major involuntary
resettlement, access and other constraints. Indeed, siting such a facility is usually a complicated
and lengthy undertaking, often taking several years to complete.
235. Repeated again in Figure VI-39 is a recent satellite image of Sahiwal Division. As
shown, although almost the entire region is characterized by agriculture, shown in various
shades of green, there is a feint, light colored band that traverses northeast to southwest through
the Division, located to the south of the Chichawatni, Sahiwal, Okara and Renala Khurd urban
areas. This band is marked between the two white arrows. On observation, it generally
represents geographic areas where agriculture is either sparse or absent.
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Figure VI-39: Sahiwal Division Project Area
236. Two potential areas have been identified within this band that have relatively sparse
populations, limited agriculture, are potentially of sufficient size to accommodate a major regional
facility, and are close to main arterials. These are shown on Figure VI-39 as Site A and Site B,
and described as follows.
Site A is located on the Gaimbar-Pakpattan Road, approximately 21 km east of the center of

Sahiwal city, 19 km southeast of Okara, and about 8 km due south of the main N5 arterial. At its
maximum dimensions, the area extends about 2.5 km north-south and 1.6 km east-west,
containing an area of over 200 hectares (Figure VI-40). Its surface gently undulates at
elevations between 165 m and 170 m above ordnance datum. The area is characterized by
scrubland with sparse intermittent vegetation. Cursory field observations indicate that surface
geologic materials include fine-grained silts and clays. The Gaimbar-Pakpattan Road traverses
through the site in a north-south direction, and the east-west trending Sahiwal Gunno Road
traverses its immediate southerly border. A power transmission line also traverses through the
site. Agricultural areas exist adjacent to the site along its eastern, southern and western
borders, while reportedly a military installation bounds its northern border. The nearest village
(chak) is located about 150 m immediately to the southeast of the southeastern corner of the site.
Other villages are located at a distance greater than 1 km from the site.
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Figure VI-40: Site A General Location Plan
237. The distance to the facility from the center of Sahiwal is approximately 24 km. This
requires travel east along the N5, from which there are three potential access options to the site
(Figure VI-41):
Option 1: from the N5, southeasterly along Bagri-Yousafwala Road for 6 km, then
easterly along Sahiwal-Gunno Road for about 8 km.
Option 2: from the N5, south-southeasterly along an unnamed road for 8 km (to the west
of Chak 55/5L) then east for 1.5 km along Sahiwal-Gunno Road.
Option 3: from the N5, south along Pakpattan Road for 7.5 km.
Initial analysis of road conditions indicates that Option 1 may prove advantageous to Options 2
and 3, as they would require relatively major upgrades, especially for Option 3 at the Gamber
intersection with the N5. It is likely that Option 1 would however require minor road widening
along the Sahiwal-Gunno Road for a distance of about 8-km.
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Figure VI-41: Access Options for Site A
238. Site B is located approximately 17 km (road distance) south southeast of Sahiwal city
center. Extending over maximum dimensions of 1.5 km north-south by 1.0 km east-west, it forms
an irregular shape and has an area of approximately 100 hectares. The site is virtually flat,
undulating between elevations of 159 and 160 m above ordnance datum. It is immediately
bounded by a canal/waterway along its western, northern and eastern boundary, beyond which is
agricultural land. To the south of its southern boundary is also agricultural land. The nearest
village is 600 m away from the site’s southwestern boundary, and other villages exist about 900
m to the west of the site and 1 km to the south (Figure IV-42).
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Figure VI-42: Site B General Location Plan
239. Road access to the site from Sahiwal is by way of the Pakpattan-Sahiwal road that
traverses within 1 km to the west of the site (Figure VI-43). Although access to the site does
currently exist, a new, dedicated access would be required for vehicle movements. The site is
currently utilized for agriculture and is sparsely populated, most likely due to the presence of the
waterway that has limited crossing points to adjacent areas.
Figure VI-43: Access to Site B
240. During a PFS fact-finding mission in Mar-2016, and subsequent to completion of the PFS
facility siting assessment, the Government revealed another site for consideration as the
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potential location of the regional disposal facility. This site, Site C, is shown on Figure VI-44, as
prepared by the Urban Unit.
241. Site C is located approximately 6-km east of Sahiwal city, on the Sahiwal Bunga Hayat
Road, about 2-km east-southeast of the N5 junction. Reportedly located on Government-owned
land, it covers an area of about 65 acres (28 hectares). The site area is generally flat, at an
elevation of approximately 170 meters above ordnance datum. Current land use is agricultural.
Access to the site from the N5 is along the paved Sahiwal Bunga Hayat Road, which is
accessible by trucks. One bridge crossing exists near to the N5 junction. The northwest to
southeast trending Sahiwal Bunga Hayat Road divides the site into two portions, a southerly
portion and a northerly portion. Although reported differently during the recent reconnaissance
visit to the site during the recent fact finding mission, the northerly portion is reportedly of size 45
acres (about 18 hectares) and the southerly portion about 25 acres (about 10 hectares) 95 .
Although not visible on Figure VI-44 below, a northwest to southeast trending power
transmission line traverses through the northerly portion of the site.
Figure VI-44: Site C General Location Plan
242. Prior to the identification of Site C during the fact-finding mission, a technical comparison
was undertaken of Sites A and B in order to ascertain which site is preferable, and based on this,
Site A was considered to be preferable to Site B96. From the initial reconnaissance to Site C
95
During the reconnaissance visit to the site during the Mar-2016 fact-finding mission, it was however
reported that the southerly portion of the site was of size 45 acres and the northerly portion of size 25
acres, with the northerly site being planned as the location of the TSD facility and disposal facility ancillary
areas, and the southerly portion for the sanitary landfill facility.
96
Site A is 24 km from the city of Sahiwal, has reasonably good access and a choice of access, has
sufficient area (around 250 hectares), limited current land use, and is relatively sparsely populated with
only a few settlements adjacent to it. By comparison, Site B is significantly smaller in plan area, is
Page 249
during the fact finding mission however, consensus was reached between Government, the ADB
and the Project team that, subject to further due diligence, Site C in turn is preferable to Sites A
and B. The primary reasons for this is that Site C is located on Government-owned land rather
than on privately owned land, that it is considerably closer to Sahiwal city than the other two
sites, and that it already has suitable access including a connection to the N5. As Site C is only
around 6-km from Sahiwal city, it would also therefore be possible to locate the potential STD
facility at the site, therefore negating the need for a transfer station and transfer truck fleet.
Conversely, it is also important to emphasize two potential constraints with Site C that need to be
considered in the next feasibility assessment phase: firstly that site development will likely
require the relocation of the transmission line in the northern portion and possibly the Sayat
Bunga Hayat Road: and secondly, that the site would require substantial expansion (including
the acquisition of a substantial amount of land adjacent to the facility) in the future if it is to serve
as a major regional disposal facility for the additional cities of Sahiwal Division. It is therefore
recommended that Government now proceed as a priority to verify the availability of Site C for
use as a regional disposal facility, and proceed with further due diligence and feasibility
assessment through the PPTA.
(ii) Proposed Regional Disposal Facility Design
243. It is recommended that the landfill be designed, constructed and operated to accord with
modern international landfill standards and include the following key features:
243.1. Landfill Liner System: The landfill base should be prepared and then covered
by a composite liner system incorporating a specially manufactured high-density
polyethylene (HDPE) layer and a mineral layer (clay, loam or permitted substitute) with
very low hydraulic conductivities. The HDPE liner will be welded with a double seam. On
top of the HDPE liner will be a protection layer of geotextile or permitted substitute,
placed to avoid puncture of the liner by sharp items. The objective of the liner system is
to prevent the escape of contaminated liquids (leachate) from the base and sidewalls of
the facility. This proposed system is an international standard system that is utilized the
world over (Figure VI-45).
Figure VI-45: Typical Schematic Diagrams of Multi-Barrier System
waste surface sealing

system
mineral sealing layer

substrate: base sealing system
geological barrier
Illus. 10
243.2. Leachate Collection and Treatment System: In Sahiwal, although leachate
generation is expected to be low due to the limited precipitation and relatively high
evapotranspiration rates, sound engineering practice dictates that preventive measures
should be established to virtually eliminate any leachate contamination potential. For this
reason, it is recommended that the facility design include a leachate collection and
treatment system as an integral component of the base liner system. In this system, the
entire base and sidewalls of the facility will be covered with a 30 cm gravel layer directly
bounded by a waterway, has a number of existing dwellings within it, is currently utilized for agricultural
purposes, and would require construction of an access road. It does however have the advantage that the
Pakpattan Sahiwal main road is already able to accommodate the proposed transfer truck movements,
unlike Site A, where upgrades would most likely be required to the Sahiwal-Gunno Road.
Page 250
above the liner system in order to divert any leachate percolating onto the liner by gravity
to a nearby drainpipe. This would then transmit the leachate out to a storage pond;
thereby ensuring that there are no leachate pools on the liner system.
243.3. In order to achieve this, the landfill base will have a two to three percent gradient
profile to allow the leachate to flow into the collection pipes. These pipes are also placed
on a gradient to transmit the leachate to collection shafts. The leachate collection pipes
will be perforated, reinforced and usually have a diameter of about 30 cm. The
reinforcement is necessary so that they can withstand the superimposed loading of the
waste mass above. A leachate treatment system will also be incorporated into the
design in order to treat leachates to a quality that is suitable for discharge.
Figure VI-46: Typical Clay Liner and Geotextile Liner under Construction
243.4. Landfill Gas Collection and Treatment System: Gases that form in the landfill
mass as a result of microbial decomposition of organic materials in the MSW are
collectively termed as ‘landfill gas’ or LFG. These contain the greenhouse gases of
methane and carbon dioxide and other harmful substances. In accordance with
international directives, an LFG collection and utilization system should therefore be
installed for the waste-filled areas. The LFG collection system will prevent the
proliferation of gases emanating from the landfill site, as well as in the adjacent areas. It
will comprise of gas wells, suction pipes, collection stations, transport pipes, a vacuum
station and a distribution system to feed an LFG power plant or a flare system that burn
the gas.
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Figure VI-47: Schematic of a Typical Landfill Gas Collection and Utilization System
gas well
covering system
gas collecting
station
electricity for public power

supply
waste
leachate high temperature

collector flare
combined technical geological

barrier barrier
heat ( hot water)
combined heat
and power
station (CHP)
243.5. Landfill Cover System: In addition to the covering of all MSW on a daily basis,
and providing interim cover systems for areas that are not being utilized for a certain time
period, the facility should be designed with a final cover system that will completely
encapsulate the entire waste mass once the facility is full. This cover system will
comprise of several layers, normally including a foundation layer, sealing layers that can
include very low density polyethylene (VLDP) welded sheets, protective layers and a
vegetation layer to allow for the planting of vegetation over the landfill mass surface in
order to improve its stability and overall aesthetics.
243.6. Auxiliary Facilities: The facility will also require the following facilities: (i) a
weighbridge to allow for the accurate weighing of MSW vehicles entering and leaving the
facility, (ii) an office and staff buildings, (iii) roads and vehicle hard surfaces for heavy
equipment loadings, (iv) a vehicle and equipment workshop and fuel storage facility, (v)
at least four monitoring wells to monitor groundwater quality around the perimeter of the
site, and (vi) a gatehouse entrance and perimeter fence to control access to the facility.
244. During the operational phase, MSW collection trucks will deliver MSW to the Sahiwal
facility. After completing formal entrance inspections, these trucks will be ushered to the
appropriate disposal area. The precise registration of MSW delivered will be carried out through
the proper documentation of the type and weight or volume of waste, and the specific location in
the landfill where the waste will be deposited. Once at the designated depositional area, the
vehicles will unload their MSW, which will then be spread and compacted utilizing landfill
compactors and other equipment (Figure VI-48). At the completion of the daily activities, the
entire area of exposed MSW will then be covered with a layer of earth materials.
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Figure VI-48: Landfill Compaction Equipment
Dumpsite Remediation Program
245. All the existing and previous dumpsites in Sahiwal need to be eventually closed and
remediated. Conventionally, dumpsite closure works will (i) contour (by excavation and filling)
waste mass outer surfaces, (ii) cover all exposed waste surfaces with a specially designed cover
system, (iii) ensure adequate drainage, (iv) as much as is practicable, capture and treat leachate
(contaminated liquids) and gases emanating from the facility, (v) regularly test for and remediate
where necessary any further contamination identified adjacent to the facilities, (vi) provide
protective vegetation and landscaping to exposed areas, and (vii) provide security and fencing to
prevent unauthorized access. Once the facilities are ‘closed’, they will need to be monitored and
maintained into the future. A dumpsite remediation program is therefore included as an integral
part of the overall Project.
246. There are however two specific issues relating to Sahiwal’s dumpsites. Firstly, to
properly close and remediate all the dumpsites in the city may be beyond the current financial
capacity of the city, as dumpsites closures can be complex and expensive. In the interim, and as
a shorter-term measure, it may therefore be possible to devise an interim remediation program,
where certain actions are taken to reduce their level of impacts, and until such time that the city
can proceed with full closure and remediation. These measures include for example, grading the
surfaces, placing a compacted soil layer over exposed waste mass areas, installing simple
surface drainage features, installing fencing, gates and signs to prohibit unauthorized access,
implementing basic environmental monitoring programs, testing nearby wells for potential
contamination and providing alternative water supplies where necessary. This should be
designed during the PPTA phase.
Page 253
Figure VI-49: Solid Waste Dumping Site Near Railway Track and Canal
Capacity Support Programs
247. In addition to the above physical investment components, the following capacity support
programs are considered essential in order to implement the SWM sector reform program in
Sahiwal. These are described as follows.
247.1. Institutional Support Program: An assistance package to assist in the

establishment and early operations of the Sahiwal WMC. This should provide for
example, (i) management training for senior management posts, (ii) formal and ‘on-the-
job’ training for technical and operational staff, (iii) customer service training, (iv) the
provision of specialist consultant technical assistance, and (v) establishing international
twinning arrangements with similar public utilities for knowledge sharing and professional
support.
247.2. Public Awareness and Engagement Program: A citywide program is proposed

in order to raise awareness and increase capabilities at the community level to: (i)
minimize waste, (ii) segregate and store recyclable materials, (iii) responsibly handle,
store and dispose of residual waste, (iv) maintain community cleanliness, (v) reduce illicit
dumping and report offenders, and (vi) eventually, to pay SWM tariffs.
247.3. Recycling Support Program: A program is envisioned to firstly improve on a

short term basis, informal recycler and waste worker awareness, engagement and
working practices: and secondly, to support the recycling sector to progressively improve
recycling efficiencies and sustainability.
K. Environmental and Social Safeguard Considerations

Environmental Considerations
248. Of the components proposed for the Sahiwal SWM system, the proposed regional MSW
disposal facility is expected to result in potentially significant environmental impacts that will
require mitigation. Table VI-50 outlines these primary environmental/health risks and proposed
mitigation measures, which are relevant to the sites currently being considered. Expansion of
these issues is detailed in Chapter VII. This assessment will be further refined during the PPTA
phase.
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Table VI-50: MSW Disposal Facility Environmental Risk Assessment and Mitigation
Measures
Screening Questions Mitigation Measures
A. PROJECT SITING
IS THE PROJECT AREA
 DENSELY POPULATED? The proposed landfill site is surrounded on all sides by

village settlements of varying sizes and population
densities. Including all possible precautionary and
mitigation measures will require these communities to be
‘brought on board’, using participatory processes, vis-a-vis
the proposed project.
B. POTENTIAL ENVIRONMENTAL
IMPACTS
WILL THE PROJECT CAUSE…
 impacts associated with transport of Noise and related disturbances from trucks carrying MSW
wastes to the disposal site or are likely to be a major cause of concern for and opposition
treatment facility? from residents along the route from Sahiwal and other
towns to the landfill site. Measures such as using larger
capacity trucks during work/business hours and ‘buy in’
from community leaders in early stages of project
development will be crucial.
 degradation of aesthetic and property Likely to be some reduction in value of land in the vicinity of
value loss? the landfill site. This may require some kind of compromise
development project of special need of the nearby localities
to be initiated by the Government as a way to get ‘buy in’ of
the communities.
 nuisance to neighboring areas due to Adequate odor and insect/rodent control measures will
foul odor and influx of insects, rodents, need to be part of detailed project design.
etc.?
 dislocation or involuntary resettlement The proposed landfill site will entail resettlement of some
of people? people, who will need to be adequately compensated
according to ADB and GoPb policies, rules, and
regulations.
 disproportionate impacts on the poor, There is the likelihood that those most affected by the siting
women and children, Indigenous of the MSW facility belong to marginalized
Peoples or other vulnerable groups? groups/categories, and as such, might need to be
compensated to the maximum allowable under ADB and
GoPB policies and rules.
 risks and vulnerabilities related Development and operationalization of an occupational
occupational health and safety due to health and safety plan will be made compulsory during
physical, chemical, biological, and project construction period and beyond that during the
radiological hazards during project operational phase.
construction and operation?
 public health hazards from odor, Comprehensive public health and safety measures will
smoke from fire, and diseases form part of the design of the project facility standard
transmitted by flies, insects, birds and operating procedures during the operational phase.
rats?
 deterioration of water quality as a Detailed project design will include provision for a base
result of contamination of receiving liner system and a leachate collection and treatment
waters by leachate from land disposal system to prevent leachate from contaminating
system? groundwater.
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 contamination of ground and/or Detailed project design will include provision for a base
surface water by leachate from land liner system and a leachate collection and treatment
disposal system? system to prevent leachate from contaminating
groundwater.
 land use conflicts? To avoid the occurrence of such an eventuality, early ‘buy
in’ from the surrounding communities and other concerned
stakeholders – and documentation of the same in the form
of a legal agreement - will be crucial.
 pollution of surface and ground water Detailed project design will include (i) provision of a base
from leachate coming from sanitary liner system and a leachate collection and treatment
landfill sites or methane gas produced system to prevent leachate from contaminating
from decomposition of solid wastes in groundwater and land; and (ii) a landfill gas capture and
the absence of air, which could enter treatment system to capture carbon dioxide, methane, and
the aquifer or escape through soil other harmful gases. These will then either be flared and/or
fissures at places far from the landfill used to generate electricity.
site?
 inadequate buffer zone around landfill Current settlements around suggested landfill site location
site to alleviate nuisances? do not leave enough room for a safe buffer zone and,
hence, some of these settlement dwellers will need to be
resettled after due compensation.
 road blocking and/or increased traffic The construction contractor will be required to develop and
during construction of facilities? implement a road traffic management plan, in collaboration
with local authorities, to minimize such inconveniences
during the construction phase.
 noise and dust from construction The construction contractor will be required to develop and
activities? implement a noise and dust minimization plan.
 temporary silt runoff due to Runoff will be minimized/avoided through a ‘runoff
construction? prevention plan’ to be developed and implemented by the
construction contractor.
 hazards to public health due to Loan agreement between ADB and the GoPb will include
inadequate management of landfill site mandatory provisions for financial resources and
caused by inadequate institutional and institutional mechanisms to be in place to prevent hazards
financial capabilities for the to public health arising out of landfill site operations.
management of the landfill operation?
 emission of potentially toxic volatile Detailed project design will include (i) provision of a base
organics from land disposal site? liner system and a leachate collection and treatment
system to prevent leachate from contaminating
groundwater and land; and (ii) a landfill gas capture and
treatment system to capture carbon dioxide, methane, and
other harmful gases. These will then either be flared and/or
used to generate electricity.
 surface and groundwater pollution Detailed project design will include (i) provision of a base
from leachate and methane gas liner system and a leachate collection and treatment
migration? system to prevent leachate from contaminating
groundwater and land; and (ii) a landfill gas capture and
treatment system to capture carbon dioxide, methane, and
other harmful gases. These will then either be flared and/or
used to generate electricity.
 loss of deep-rooted vegetation (e.g. ‘Greening’ of landfill site through plantation of indigenous
trees) from landfill gas? species of plants and trees will be undertaken throughout
the project life to compensate for any loss of vegetation, to
increase aesthetic appeal of the site and to enhance its
physical integrity.
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 contamination of air quality from A landfill gas capture and treatment system to capture
incineration? carbon dioxide, methane, and other harmful gases will be
part of the project. Captured gases will either be flared
and/or used to generate electricity in line with permissible
air quality standards of the Environmental Protection
Department of Punjab.
 public health hazards from odor, Comprehensive public health and safety measures will
smoke from fire, and diseases form part of the design of the project and facility standard
transmitted by flies, rodents, insects operating procedures during the operational phase.
and birds, etc.?
 health and safety hazards to workers Construction contractor will be required to institute a
from toxic gases and hazardous workers’ health and safety program for the duration of the
materials in the site construction period.
 large population influx during project Provision of adequate facilities for anticipated construction
construction and operation that causes staff and facility personnel will form part of detailed project
increased burden on social design.
infrastructure and services (such as
water supply and sanitation systems)?
 social conflicts if workers from other To the extent possible, the construction contractor will be
regions or countries are hired? required to hire local staff and/or institute measures to
prevent unnecessary issues.
 risks to community health and safety ‘Workers health and safety’ and a ‘safe handling of
due to the transport, storage, and use volatile/dangerous materials’ program will be made part of
and/or disposal of materials such as detailed design of the facility and included in the agreement
explosives, fuel and other chemicals with the construction contractor and facility standard
during construction and operation? operating procedures guidelines and training of personnel
 community safety risks due to both Health and safety of construction workers, facility
accidental and natural hazards, personnel, and the wider public will be ensured through
especially where the structural development and implementation of workers and public
elements or components (e.g., landfill health and safety plans and procedures that will be part of
or incinerator) of the project are the standard operating procedures guidelines and training
accessible to members of the affected during different phases of project life.
community or where their failure could
result in injury to the community
throughout project construction,
operation and decommissioning?
249. Table VI-51 provides a preliminary appraisal of the MSW facility’s climate change
resilience potential.
Page 257
Table VI-51: MSW Disposal Facility - Climate Change Resilience Appraisal
Climate Change Adaptation and MSW Disposal Facility

Mitigation Considerations
Is the project sensitive to climate change Yes, the project is fairly sensitive to climate change impacts
impacts? in terms of its operations and construction and running
costs.
How does expected climate change Increase in duration and intensity of temperature may
impact the project? contribute to higher than expected production of leachate
and landfill gases (CO2, CH4, etc.); and increase the costs
of necessary remedial measures such as for flood
protection. Increase in temperature and precipitation
(including flooding events) may also disrupt operations of
the facility and increase cost of operations.
What are the climate change implications Extreme weather events may result in higher than expected
for future environmental performance of production of leachate and landfill gases.
project?
Does the project emit significant Yes, the proposed landfill facility is expected to produce
amounts of GHG? Does the project significant quantities of CO2 and CH4 amongst other
plan/encourage reduction of GHG? gases. Detailed design of the project will include provision
of a landfill gas collection and treatment system, which may
include the production of electricity so as to offset grid
electricity consumption by the facility. Detailed design of the
project will also explore the viability of having the municipal
waste carrying trucks run on CNG or Biofuels to minimize
CO2 emissions associated with facility operations.
Are there any demographic or socio- Villages/settlements surrounding the proposed site are
economic aspects of the Project area inhabited by small farmers, who tend to be socially and
that are already vulnerable (e.g. high economically marginalized. Special measures will need to
incidence of marginalized populations, be taken both at the design and project implementation
rural-urban migrants, illegal settlements, stages to ensure there is no damage to agricultural and
ethnic minorities, women or children)? related livelihoods of communities living near the site.
How will the long-term and cumulative Detailed design of the project will factor in possible climate
effects of climate change impact the change related weather scenarios and the possible range
project impacts? Does the project / plan of their impacts on the proposed project, and what the
help to prepare for the effects of climate implications of these might be for construction and
change? operational costs and efficiencies.
Social and Resettlement Considerations
250. Initial social and resettlement considerations have been evaluated during the PFS of the
two potential sites Site A and Site B, and the results of these evaluations follow. Due to the late
identification of Site C, the evaluation of this site will be completed during the subsequent PPTA
activities.
250.1. Site A is located on the Gaimbar-Pakpattan Road, approximately 21 km east of

the center of Sahiwal city, 19 km southeast of Okara, and about 8 km south of the main
N5 arterial. The consultant has repeatedly visited the site and has made the following
observations;
250.2. Most of the site (170 ha) belongs to the Pakistan Army (and may do construction
in the near future). Generally, the army will not allow a project to be located within 1.6
km of the cantonment area, however negotiations to use the land have not yet been
Page 258
initiated, and it is therefore not known at this stage whether or not the land can be
appropriated for the project.
250.3. Although population centers are close to the overall site area, the site is so large
that it may be possible to locate the landfill footprint within the site in a location to provide
a buffer of at least 500 meters away from the nearest village.
250.4. The private land (other than the land occupied by the Army) is not enough for the
project.
250.5. Only 50 hectares is required for the facility to 2035, leading to 100 hectares by
2060 for the eventual full build out. The facility does not therefore require the entire 200
hectares (170 of which belongs to a Pakistan Army cantonment), therefore it can most
likely be positioned efficiently to minimize resettlement impacts and maintain a minimal
(500m) buffer around the facility footprint, including the cantonment area.
251. Site B is located approximately 17 km (road distance) southeast of Sahiwal city. It is

easily accessible from the Sahiwal-Pakpattan road. The consultant visited the site regarding land
acquisition and resettlement. The project has an impact on 250 acres including 210 acres of
prime agriculture land (owned by 26 farmers), 6 tube wells (owned by 6 families), 1 farmhouse
(owned by 1 family), and 15 wood trees (owned by 5 families). In addition, the project has
severe effects on the livelihood of displaced persons, especially 62% (16) of the respondents
who are entirely dependent on the agricultural land to maintain their livelihood, since they
possess no other source of income. However, 38% of the DPs have multiple income sources,
other than farming, they run small businesses and have other jobs in the private sector. Although
the full extent of the project has not yet been communicated, especially how this facility will be
developed and the details of compensation to be provided, people shared their views after
consultation, which are discussed below:
 People are reluctant to give up their land, as agriculture is their main source of income.
 The Government should acquire the non-agricultural land for the proposed project or limit the
project to non-agriculture land (40 acres) only.
 The government should get the land in the north of Sahiwal city, where non-agricultural land
(near the Ravi River) is available.
 They had apprehensions that the Government will not give them the market rates.
 The prevailing market rate is on average Rs. 800,000/acre.
 The DPs should be provided an alternate source of income prior to the acquisition of the
land.
 The tenant was not reported to be in the proposed project area.
 The surrounding population will also be disturbed by the bad smell produced by the site, so
the Government should shift the landfill site to a remote area, away from population centers.
 The project is intended for the welfare of the people of the area, however neither the
displaced persons nor those from the surrounding area are happy with the SWM practices.
 The affected people have been settled here for centuries so the project will cause greater
social disturbances in addition to disrupting their sources of livelihood.
252. The preliminary cost of land acquisition and resettlement was worked out based on the
replacement cost of affected land and structures as required by SPS SR2, Para 10. For this
purpose, a market survey was carried out in order to reach the market based unit rate to be paid
to DPs. However, the rates need to be confirmed during the feasibility and detailed design stage.
Total resettlement cost worked out is Rs. 203.23 million, including 2.33 million for the restoration
of livelihood.
Page 259
L. Indicative SWM Investment Costs

253. Outline, indicative capital expenditures for the proposed SWM system are shown in
Table VI-52. As indicated, the total cost at this stage is estimated to be PKR 2.336 billion,
equivalent to approximately US$ 22.682 million. This amount includes the capital costs of the
primary collection system, the street sweeping system upgrades, the STD facility and transfer
system, initial regional disposal facility landfill development, the dumpsite closure and
remediation program, and the sector support programs.
Table VI-52: Conceptual Cost Estimate

Sahiwal SWM System: Conceptual Cost Estimate
REG-8556: Pre-Feasibility Study Sahiwal and Sahiwal Cities
Total
PKR PKR US$ US$
1. MSW Primary Collection System 566,956,178 5,504,429

System A: Manual Handcart 43,011,840 417,591
System B: Mini Dumper 224,127,982 2,176,000
System C: Garbage Compactor 224,816,356 2,182,683
Equipment Yard Restoration 50,000,000 485,437
Design and Construction Monitoring 25,000,000 242,718
2. Street Sweeper System 124,214,552 1,205,967

Sweeper System A 2,210,880 21,465
Sweeper System B 5,711,440 55,451
Sweeper System C 105,000,000 1,019,417
3. MSW Treatment and Transfer System 160,985,000 1,562,961

STD Facility 123,690,000 1,200,874
Residual Transfer System 22,660,000 220,000
4. MSW Disposal System 922,356,534 8,954,918

Land 140,000,000 1,359,223
General Facility 82,196,640 798,026
Landfill Facility 516,309,300 5,012,712
Resettlement 100,000,000 970,874
5. Dumpsite Remediation Program 200,000,000 1,941,748

Dumpsite Remediation Program 200,000,000 1,941,748
6. SWM Support Programs 149,350,000 1,450,000

A. Institutional Support Program 72,100,000 700,000
B. Public Awareness and Engagement Program 46,350,000 450,000
C. Recycling Support Program 30,900,000 300,000
Subtotal 2,123,862,264 20,620,022

Contingency (10 percent) 212,386,226.38 2,062,002
TOTAL 2,336,248,490 22,682,024
254. Regarding regional disposal facility development, it is emphasized that the estimate
shown on Figure VI-55 assumes the cost to develop the initial phase of a subsequently larger
regional facility in order to initially accommodate the MSW from the city of Sahiwal only. This
includes the establishment of the basic facility, and the construction of an initial landfill cell to
accommodate the city’s MSW for the first five years of operation. Beyond this timeframe,
additional cells would then be developed in order to progressively accommodate additional MSW
from Sahiwal and potentially the other urban areas as they are commissioned into the system. It
is also noted that at this stage, this cost is shown as an outline, indicative cost for a facility
located in any of the three locations, as it is considered that the costs would be broadly similar for
these locations. At this stage, the estimate does not include the costs of any necessary road
upgrades from the city to the facility, or in the case of Site C, the cost of the relocation of the
Page 260
power transmission line or the Sayat Bunga Hayat Road that currently traverse through the site
area.
255. Although an economic analysis of the proposed Sahiwal SWM investment program has
not been conducted during the PFS, as this is scheduled for subsequent PPTA activities, initial
observations infer that the major economic benefits of the rehabilitation of Sahiwal’s SWM
system will arise from the provision of vastly improved SWM services, the increased recycling of
MSW and improved working conditions, and the establishment of a new MSW disposal facility,
operated to international standards. Considerable secondary benefits are also expected to arise
from an improved and efficient SWM system through reduced negative environmental and public
health impacts (lower medical costs, fewer sick days, increased productivity and reduced air
pollution), and potential CDM benefits.
256. In the absence of the project improvements, the average cost of MSW collection and
disposal would continue to increase as the aged, inefficient and obsolete MSW collection
equipment breaks down, has higher operation and maintenance (O&M) costs and is out of
service more often. The Sahiwal WMC would be forced to continue to utilize the dumpsites,
furthering environmental pollution and threatening public health. The project would also be
expected to result in several other benefits including the prevention of the illegal dumping of
waste that is currently a major issue, with the associated risk of negative health effects. The
avoidance of informal burning and incineration of waste contributing to air pollution with
associated respiratory health effects would be another positive benefit. Deteriorating SWM would
impact on the quality of life and appeal of the city.
M. Indicative Implementation Schedule

257. Figure VI-53 presents a draft implementation schedule for the proposed medium-term
investments for the Sahiwal SWM sector. As shown, it is envisioned that the entire physical
system can be designed permitted, constructed and placed into operation as early as mid-2019,
if anticipated progress can be achieved in the system’s overall development. Although the
schedule will be continually refined through the PPTA phase, it is included here to provide an
overview of how the sector development can occur.
Page 261
Sahiwal: Draft Medium Term Infrastructure Investment Program

Figure VI-53: Sahiwal Draft Medium Term Investment
Solid Waste Sector – Solid Waste Management Sector
ManagementPlan
Financing Co- Expected Loan Expected Loan Expected Financing Total Medium Term Total Medium 2016 2017 2018 2019 2020
Implementing
Sector Component Entity
Commitments Disbursement Disbursement Required in Longer Term Financing and Long Term
and Budget in Years 1 - 2 in Years 3 - 5 after Year 5 to Year 10 Requirement (US$) Financing Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Medium Term Investments Long Term Investments 5 Year Horizon 10 Year Horizon
PICIIP MFF Process
MFF Approval
GoPb 500.00 million
PPTA Procurement
PPTA Implementation
MFF Loan Negotiations
MFF Implementation
MSW Collection and Sweeper Systems Sahiwal TMA 5.17 million 2.21 million 7.38 million 7.38 million
Collection System Feasibility Assessment
Collection System Final Design
Equipment Procurement and Manufacture
Equipment Yard Rehabilitation
Commissioning and Long Term Operations
MFF Approval
MSW Treatment and Transfer System Sahiwal WMC 1.20 million 0.52 million 1.72 million 1.72 million
Treatment and Transfer System Feasibility Assessment
Treatment and Transfer System Final Design
Equipment Procurement and Manufacture
STD Facility and Transfer System Development
Commissioning and Operations
MFF Approval
MSW Disposal System Sahiwal WMC 3.94 million 5.91 million 5.00 million 9.85 million 14.85 million
Disposal System Feasibility Assessment
Disposal System Final Design
Permitting
Procurement
Construction
MFF Approval
Dumpsite Closure and Remediation Program Sahiwal WMC 0.53 million 1.60 million 1.00 million 2.13 million 3.13 million
Dumpsite Closure and Remediation Program
Sector Support Programs Sahiwal WMC 0.48 million 1.12 million 1.60 million 1.60 million
Institutional Support Program
Public Awareness and Engagement Program
Recycling Support Program
Potential SWM System Expansion Sahiwal WMC
Legend: GoPb=Government of Punjab, MFF=multitranche financing facility, MSW=municipal solid waste, PPTA=project preparatory technical assistance, Q=quarter (three-month period), SWM=solid waste management, TMA=Tehsil Municipal Administration, Sahiwal WMC=Sahiwal Waste Management Company.
Page 262
Water, Sanitation, Sewerage and Drainage

N. Sector Assessment - Water, Sanitation, Sewerage and Drainage
Policy Framework
(i) National Urban Water Supply and Sanitation Policies
258. National policies related to the urban water supply and sanitation sector are summarised
in Table VI-54
Table VI-54: National Urban Water Supply and Sanitation Policies

Policy Objectives/Targets
National Drinking Water Policy Improve the quality of life by reducing the incidence of death and illness
2009 caused by water-borne diseases;
Provide safe drinking water to the entire population at an affordable cost in
an impartial, efficient, and sustainable manner. Ensure reduction in the
incidence of mortality and morbidity caused by water-borne diseases.
Provide a supportive ground and legal framework that could facilitate
sustainable access to and provision of safe drinking water.
It highlights the constitutional responsibility of the provincial and local
governments (towns and TMAs) to provide drinking water.
It underlines that the right to water for drinking takes precedence over rights
to water for all other uses (agriculture, industry, and so forth).
Ensure participation of the vulnerable and poor in decision making for the
sector at all levels, recognizing the key role that women and communities
play.
Provides a financial framework within which the provision of water supply can
be undertaken in a cost-effective, equitable, and sustainable manner and that
water treatment will be an integral part of all drinking water supply schemes.
It also provides a set of policy instruments and strategies to achieve the
objectives of the policy.
National Sanitation Policy Provide adequate sanitation coverage, an environment necessary for healthy
2006 life, and meeting the MDG targets.
Improve the quality of life of the people and their physical environment.
Ensure an open defecation-free environment; safe disposal of liquid and solid
waste; and the promotion of health and hygiene practices.
Develop guidelines for the evolution of an effective institutional and financial
framework and for linking sanitation programs with environment, housing,
water, and city and regional planning policies and programs.
It supports programs that are implementable within available resources and
enhanced capacities of institutions and communities.
Supports and accept the role that communities, NGOs, and the formal and
informal sectors are stakeholders in sanitation provision.
The policy emphasizes the development and use of technologies that are
simple and cost-effective to install and maintain; it ensures the involvement in
the planning of sanitation schemes of those departments/agencies
responsible for operations and maintenance (O&M).
Priority to be given to the needs of women and children at all levels of
planning and implementation.
Pakistan EPA Act 1997 Provides the basis for the Environmental Protection Agency (EPA) for the
establishment of water quality standards and ensure enforcement of the
National Environmental Quality Standards.
National Climate Change Key policy measures recommended relating to water supply, sanitation (and
Policy 2012 solid waste) are:
Make installation of wastewater treatment plants an integral part of all
sewerage schemes.
Introduce local rainwater harvesting measures
Ensure separate collection, disposal and re-use of recyclables, composting
and biodegradable waste, preferably at source
Page 263
(ii) Punjab Province Urban Water and Sanitation Policies
259. Punjab Province policies related to the urban water supply and sanitation sector are
summarised in Table VI-55.
Table VI-55: Punjab Province Urban Water Supply and Sanitation Policies
Policy Objectives/Targets
Punjab Local Government Act Provides for responsibilities of Metropolitan and Municipal Corporations.
Municipal Committees, District Councils and Union Councils with respect
to drinking water sewerage, solid waste and drainage.
Draft Punjab Municipal Act Categorizes water into potable domestic for drinking, non-potable
domestic, institutional, commercial, industrial, amenity, environmental and
remedial use. Proposes a regulatory authority called the Water
Commission. Requires the local governments to prepare a Water and
Sanitation Master Plan.
Punjab Urban Water and Provides the framework to guide and support provincial institutions,
Sanitation Policy 2007 District Governments, Water Utilities and communities for improving water
and sanitation services in accordance with the National Sanitation Policy
2006 and the National Environmental Policy 2005
Punjab Drinking Water Policy The policy has the following key policy objectives related to water supply
and sanitation:
To enact the Punjab Municipal Act;
To provide institutional reforms in the Urban Water Services Provincial
Government Agencies;
WASAs are to be financially viable by 2016;
WASAs to have 100% consumer meters by 2016;
Investment in managing wastewater treatment facilities to be made in all
WASAs;
Reduce NRW and leakages in all WASAs;
TMAs to take appropriate measures through legislation and administrative
initiatives to ensure rationalisation of tariffs and improvement of capacity
in TMA.
Draft Punjab Sanitation Policy Provides policy principles for the improvement of sewerage and sanitation
for urban and rural areas.
(iii) Sustainable Development Goals
260. According to the Joint Monitoring Program (JMP) of WHO and UNICEF, Pakistan is on
track to achieve the national water supply Millennium Development Goal (MDG) target—reaching
92 percent of the population as compared to the targeted 91 percent—but off track with respect
to the national sanitation MDG target (48 percent versus targeted 63 percent). In the urban
subsector the water coverage in 2010 is just below the 2015 target of 97 percent; sanitation is
well below with 2010 coverage of 72 percent versus a 2015 target of 86 percent. In both water
supply and sanitation, the coverage (in total and by type of service), as a percentage of urban
population, has hardly changed for 20 years, indicating that providers are keeping up with urban
growth but making little improvement.
(iv) Country Water Supply Status97
261. The method of providing drinking water to urban residents varies considerably within the
provinces. For example, in Punjab about 46 percent of the population has access to tap water
through pipe networks, 8 percent by hand pumps, 37 percent by motor pumps, and 8 percent
other.
97
This section draws heavily on Urban Water Supply and Sanitation Study, World Bank, AusAID, WSP, April
2013
Page 264
262. There is no city in Pakistan with a continuous 24/7 water supply. Intermittent supply is the
rule. Coping mechanisms by users range from installing ground or roof tanks for collecting water
when it is available and hoarding it, buying water from tankers, or using shallow wells and/or river
water. Some private tankers are licensed by water utilities, but all tanker owners’ benefit from the
intermittent water supply. There are many reasons for the intermittent supplies. One may be
power blackouts because of insufficient power system capacity or targeted load shedding by
power utilities given slow payment by water utilities. More likely is an evolution of intermittent
service delivery to combat high levels of leakage and to ration supplies.
263. Water supply technical operations efficiency can be measured by reference to the levels
of nonrevenue water (NRW). The high levels of NRW reported by the WASAs (24–68 percent)
reflect low operational efficiency. These figures are only approximate, given the low levels of
production and customer metering in the WASAs, both of which are essential for calculating
NRW. Water supply technical operations efficiency can be measured by reference to the levels of
nonrevenue water (NRW). The high levels of NRW reported by the WASAs (24–68 percent)
reflect low operational efficiency.
(v) Country Sewerage/Sanitation Status
264. The 2006 World Bank Environmental Assessment Report states that most surface water
pollution is associated with urban centers. Typically, nallahs and stormwater drains collect and
carry untreated sewage, which then flows into streams, rivers, and irrigation canals, resulting in
widespread bacteriological and other contamination. It has been estimated that around 2,000
million gallons of sewage is being discharged to surface-water bodies every day. This lack of
adequate sanitation comes at a cost. Water, sanitation, and hygiene-related diseases cost the
Pakistani economy about Rs. 112 billion (US$1.3 billion) per year in terms of healthcare costs
and lost earnings. Estimates are that diarrhea was the leading cause of loss of disability-adjusted
life years (DALYs) in Pakistan. Infant mortality is high at 70 per 1,000 live births, and child
mortality is still higher at 86 deaths per 1,000 live births.
265. As reported by the WASAs in 2011, two of the countries nine major cities, Islamabad and
Peshawar, had 100 percent sewerage coverage. These were followed by Lahore with 87 percent
coverage and Karachi with 80 percent. The five remaining cities had coverage ranging from 12
percent (Quetta) to 70 percent (Faisalabad). The apparently high urban coverage likely hides the
fact that the proportion of urban households with individual connections to piped sewerage trails
aspirations by a good deal.
266. Coverage of public sewerage has hardly increased over the past decade, and as a result,
the share of the sewage generated that reaches the wastewater treatment plants has increased
only slightly. Although some sewerage collection systems exist, typically discharging to the
nearest water body, collection levels are estimated to be no greater than 50 percent nationally,
with only about 10 percent of collected sewage being treated effectively.
267. Although treatment facilities exist in about a dozen major cities, some have been built
without the completion of associated sewerage networks, and the plants are often either under
loaded or abandoned. In effect, only a few percent of the total wastewater generated receives
adequate treatment before discharge to the waterways. Three of the smaller cities, Rawalpindi,
Multan, and Gujranwala, have no treatment facilities whatsoever. Peshawar has four plants,
none of which are operating, due to a lack of sufficient operational and maintenance resources
and high energy costs. Quetta has a plant under construction. Faisalabad has a primary and
secondary treatment plant with a capacity of 33 m3/year but this is insufficient providing treatment
for just 6 percent of the total collected wastewater of 587 million m3/year. Islamabad with four
plants providing primary and secondary treatment is the only city with adequate treatment
capacity. Lahore has facilities enough only to provide primary screening. Karachi has three
plants providing primary and secondary treatment that treat only about 2.5 percent of the sewage
generated.
Page 265
268. Low levels of wastewater treatment and inoperable plants reflect the prevailing mind-set
among state engineering entities emphasizing asset creation rather than service provision as
well as the weak financial condition of all the service providers. Unfortunately, there is no simple
solution to the challenge. There is increasing pressure to collect and treat waste, in order to
avoid the obvious environmental pollution that currently exists; yet the service providers suffer
from a weak governance environment and have no financial capacity—and limited technical
capacity—to operate the facilities once completed. In areas where there is abundant surface
water for households to extract (such as in parts of Punjab), the lack of treatment adversely
affects the quality of those supplies. Hence, wastewater treatment becomes much more
important as a means to protect a low-cost water source in these areas, as opposed to other
areas where water supplies are costlier and have lower pollution levels.
Targets for Water Supply and Sanitation
269. The Punjab WASH Sector Development Plan (2014-2024) established targets for water
supply and sanitation in the Province. The targets and the current status in Sahiwal are outlined
in Table VI-56 and Table VI-57. The proposed status in Sahiwal after implementation of the
MTIIP is also shown in Table VI-56
Table VI-56: Water Supply Targets (Punjab WASH Sector Development Plan (2014-2024)
Indicator Target Sahiwal

Medium Long Term Current Proposed
Term After MTIIP
Dysfunctional tube wells 50% 80% 90% 100%
rehabilitated and operating
Functional tube wells working 85% 90% 50% 100%
at rated capacity
% of old infrastructure 20% 40% 0% 90%
rehabilitated/replaced.
Distribution network coverage 70% 80% 90% 90%
% of tube wells where bulk flow 40% 60% 0% 100%
meters and pressure gauges
installed
TMAs where additional 25% 50% 0.5 hours 3 hour storage
overhead storage provided storage provided
provided
% of tube wells/overhead 60% 90% 0% 100%
reservoirs where chlorination
facilities installed
% of tube wells where monthly 50% 75% Irregular 100%
water quality tests conducted
% of distribution system where 60% 90% Irregular 100%
quarterly water quality tests
conducted
Level of NRW Less than 15% Less than 10% 40% 20%
(estimated)
Percentage of high income 60% 90% 0% 100% in pilot
areas with metering in place zones (2 no)
Reduced water Consumption Reduce and Reduce and Production 80 150 L/cal/day
maintain water maintain water galls/capita/day
consumption of consumption of
65L/capita/day 65L/capita/day
Page 266
Table VI-57: Sanitation Targets (Punjab WASH Sector Development Plan (2014-2024)
Indicator Target Sahiwal
Medium Term Long Term Current Proposed
After MTIIP
% of drains de- silted and 30% 30% Periodic Periodic
cleared per quarter
% of TMAs equipped with 60% 90% Has basic New equipment
sewerage maintenance equipment provided
equipment
Phased replacement of old Ongoing Ongoing No program 12 km of sewer
sewer lines to be replaced,
rehabilitated or
new sewers
provided.
Sewerage coverage 70% 82% 80% 90%
% of pumping stations where 60% 90% 0% 100%
phased rehabilitation plan in
place
% of open drains replaced with 25% 50% 0% Sewers
sewers and WWTP installed upgraded and
WWTP provided
% of new schemes with 50% 75% 0% 100%
wastewater treatment plants
No. of treatment facilities in 1 1 (with re- 0 1
intermediate cities use/recycling
facility)
Conduct of wastewater testing Ongoing Ongoing Not conducted Laboratory to be
and public reporting of established
industrial pollution
Percentage industrial 3-5% 6-10% Minimal Will depend on
wastewater treated. incentives
provided to
industry
Road Map for Achieving Targets
270. Sahiwal TMA has been unable to deliver public goods and services adequately, and this
justifies intervention in the sector. In order to gradually achieve national and state targets on
water supply and sewerage a 10-year road map for selected indicators has been prepared as
part of the Medium Term Infrastructure Investment Plan as shown in Table VI-58. The road map
assumes that by 2025 the service area will remain largely the same. Expansion of the service
area into the proposed 2035 boundaries will occur beyond 2025.
Page 267
Table VI-58: Road Map for Water Supply and Sewerage Development in Sahiwal (2015-
2025)
Indicator Proposed Achievement
Current (2015) Medium Term Longer Term
(2020) (2025)
Population in service area (‘000) 288 350 474
Water Supply
Population covered by water supply (‘000) 260 320 474
HH with water connections (%) 31% 45% 100%
Water Production (MGD) 15 25 30
Water Loss (MGD) 6 (40%) 7 (35%) 5 (20%)
Continuity of water supply 10 16 24
Sewerage
Population with sewerage coverage (‘000) 230 280 350
HH with sewerage connections (%) 37% 50% 80%
Volume of wastewater collected (MGD) 15 18 21
Treatment capacity available (MGD) 0 20 27
Sector’s Importance to Sahiwal’s Liveability, Competitiveness and Resilience
271. The sector will bring about the following positive influences in livability, competitiveness
and resilience in Sahiwal
Table VI-59: Impact of Sector on Livability, Competitiveness and Resilience

Areas of Impact Nature of Positive Impact
Livability Although a planned city, livability in Sahiwal is especially hampered by the
status of the water supply, sewerage and drainage systems. While sufficient
water is being produced from the tube wells, the poor condition of the piped
network, inadequate storage and lack of system control results in an
intermittent supply of water which impacts on the quality of water being
delivered to the residents. This impacts most severely on the low-income
communities who have less coping mechanisms than the high-income
residents. Replacement of 80% of the piped network, the move towards 24/7
water supply, the proposed increase in storage, the installation of a centrally
controlled water supply system and the institutional changes in the
management of the sector will result in better living conditions for the residents.
The poor quality of the environment resulting from the discharge of raw sewage
to the water bodies and to land for irrigation makes Sahiwal an unattractive
place to live and also presents severe health risks to the population. The poor
condition and lack of pumping capacity at some of the disposal stations results
in surcharging of the sewers, especially during rainy periods. The conversion of
the disposal stations to pumping stations of adequate capacity, together with
the provision of treatment facilities, will prevent untreated wastewater being
discharged to the water bodies and to land and significantly reduce the health
hazards and the degradation of the environment
Competitiveness Sahiwal is essentially an agricultural centre, although its location and the
current construction nearby of a coal fired power plant provide potential for
significant future economic development. Its origin as a planned city provides
the basis for the development of an attractive city with which investors will want
to do business. However, this will also be dependent on the availability of a
reliable water supply and significant improvement to the environment. The
project will address both these factors by improving the water distribution
system and the reliability of the water production facilities with the objective of
eventually providing 24/7 water supplies. The environment will be improved
through the elimination of direct discharge of untreated wastewater to the water
bodies and the reduction in health hazards by the replacement of raw sewage
for irrigation with treated wastewater.
Page 268
Increasingly international and domestic customers are taking into account a

range of factors when determining the most appropriate place to do business.
The environment is one of the key factors that will be considered and to
compete with other manufacturing cities, Sahiwal will need to show that it is not
putting its citizens at risk by neglecting the environment. Industries will also
need to show corporate responsibility by treating its waste thereby contributing
to the improvement in the quality of the water bodies.
The outcome will be a cleaner city, which will demonstrate to local and
international customers that Sahiwal is at the leading edge in city development
which will enable it to compete with other cities that understand the importance
of a clean and healthy environment for its citizens.
Resilience Sustainability of water supplies will become a serious risk to Sahiwal should the
level of the water table continue to decline as it has over the past decade. This
is likely to be exacerbated by the impact of climate change with more severe
droughts and reduction in the recharge of the aquifers. The project will address
this risk through increasing the efficiency of the water supply system, water loss
reduction programs and demand management practices thereby reducing
abstraction from the aquifer. In addition, alternative approaches to provision of
water supply such as aquifer recharge and surface water supplies will be
considered for the longer term.
Water Demand and Wastewater Production

O. Water Supply and Sewerage Design Criteria
272. The Public Health Engineering Department (PHED) Design Criteria 1998, modified in
2008 98 is currently used for the design of all Public Health Engineering structures for water
supply, sewerage and drainage. The principal criteria for water supply and sewerage is
summarised in the separately bound Annex accompanying this Report.
273. In general, these criteria have been used in the PFS concept designs, with the exception
of the per capita water consumption. Based on experience of similar cities to Sahiwal and
Sialkot, the team believes that the per capita water consumptions outlined in the above design
criteria are too high, particularly over time, as demand management policies such as water
pricing begin to have an impact. For this study, a per capita consumption of 150 litres/capita per
day (33 gallons/capita/day will be adopted. A 20% allowance for Unaccounted for Water (UFW)
will be added to this per capita consumption.
274. The CRVA team has developed revised design criteria that will give consideration to the
impacts of climate change. These criteria have also considered a per capita water demand of 33
gallons/capita/day.
P. Water Demand and Wastewater Production

Water Demand
275. Based on the current and projected populations for the TMA, and the proposed water
demand of 33 gallons per capita per day, the current (2015) water demand and future (2035)
water demand is estimated to be a shown in Table VI-60 below. These are based on
assumptions of commercial, institutional and industrial water use. Industrial water demand is
assumed to be only 10% of domestic use as Sahiwal is not highly industrialised and it is
assumed that any larger industrial establishments have a private water supply. Commercial and
98
Technical and Service Delivery Standards for Water Supply and Sanitation Services, April 2008, Punjab
Devolved Social Services Program
Page 269
institutional water demands are assumed to each be 15% of domestic demands. There are
several large educational and other institutional establishments in Sahiwal.
Table VI-60: Sahiwal Water Demands

Demand Source 2015 Water Demand (MGD) 2035 Water Demand (MGD)
Pre 2015 Peripheral Total Pre 2015 Peripheral Total
boundaries Areas boundaries Areas
Domestic 9.52 3.42 12.94 13.93 5.27 19.20
Commercial 2.20 0.79 2.99 3.21 1.22 4.43
Institutional 2.20 0.79 2.99 3.21 1.22 4.43
Industrial 1.46 0.53 1.99 2.14 0.81 2.95
Losses99 6.35 2.28 8.63 4.64 3.51 8.15
Total 21.73 7.81 29.54 27.85 12.29 40.13
276. The estimated daily production in Sahiwal based on the installed capacity and pumping
hours is 15 MGD (see below) which correlates fairly well with the above estimated demand given
that not all the current urban area is covered and only 31 % of the population is connected. The
nominal rating of all the tube wells is 63 cusecs or 40.7 MGD (see Table VI-54), although this is
expected to now be less than this given the lower water table and the condition of the pumps.
Sewage Generated
277. Wastewater flows have been estimated for 2015 and 2035 based on the water demand
estimates and these are shown in Table VI-61.
Table VI-61: Sahiwal Wastewater Production 2015 and 2035

Component 2015 Wastewater Flow (MGD) 2035 Wastewater Flow (MGD)
Current Peripheral Total Current Peripheral Total
Average Dry 13.49 4.85 18.34 19.73 7.46 27.19
Weather Flow
Peak Dry Weather 26.98 9.71 36.69 39.46 14.93 52.39
Flow
Infiltration 1.35 0.49 1.84 1.97 0.75 2.72
Stormwater 6.74 2.43 9.17 9.86 3.73 13.59
Infiltration
Peak Wet Weather 35.07 12.62 47.69 51.29 19.40 70.69
Flow
278. Sewage treatment plants will be designed to receive 2 times Average Dry Weather Flow
with excess flows being bypassed to the water bodies. This will limit the cost of treatment
facilities and ensure that they operate within an acceptable range of full capacity.
99
Losses are assumed to be 40% at present, reducing to 20% by 2035
Page 270
279. The BOD loading on the treatment plant will be based on per capita BOD production of
50g/capita/day, which is considered a reasonable value for Pakistan conditions. Commercial and
industrial effluents are assumed to be pre-treated to a domestic standard of 250 mg/L. BOD
loading based on the total wastewater treatment requirements are shown in Table VI-62.
Table VI-62: Sahiwal BOD Production 2015 and 2035

Source 2015 BOD Production 2035 BOD Production
(tonnes/day) (tonnes/day)
Current Peripheral Total Current Peripheral Total
Domestic Wastewater 14.42 5.19 19.61 21.10 7.98 29.08
Commercial and 5.40 1.95 7.35 7.90 2.98 10.88
Institutional Wastewater
Industrial Wastewater 1.80 0.65 2.45 2.63 1.00 3.63
Total 21.63 7.78 29.41 31.64 11.97 43.61
280. Significant quantities of bio-solids will also be produced depending on the treatment
process adopted. Transport and disposal of these bio-solids can be costly and needs to be taken
into account when determining options for wastewater treatment.
Current Status of Infrastructure
Q. Water Supply
Water Source and Abstraction
281. Water for the Sahiwal Water Supply system is abstracted from deep tube wells with
depths below 500 ft. Currently there are 52 tube wells in the service area, 44 of which are
operational. The rated capacity of all 52 tube wells is 63 cusecs, but the current operating
installed capacity is 53.5 cusecs. The nominal discharge of the wells is shown on Table VI-57
and their location is shown in Figure VI-63. The water table is in the order of 40-50 ft. below
ground level, but has reported to be dropping by about 1 ft. per year or 15 to 18 feet in the past
10-15 years. This reduction in the water table is confirmed by data from the Irrigation
Department. The natural recharge for the tube wells is from the Ravi River and the LBDC Canal.
Table VI-63 – Tubewells Supplying Sahiwal Water Supply System
Agency No. of No. Tube wells Nominal Rating Hours Pumping

Responsible Tubewells Operational
TMA 02 02 0.5 cusecs 8
TMA 27 22 1.0 cusecs 8-13
TMA 22 19 1.5 cusecs 8-13
TMA 1 1 2.0 cusecs 8
Total 52 44 53.5 cusecs
Source: Sahiwal TMA, August 2015
Page 271
282. The tube wells either pump directly into the distribution system or fill the overhead
reservoirs. The pumping patterns for the tube wells are indicated below in Table VI-64. Based on
the average pumping hours of 8-13 hours/day, the current operational installed production is
about 15 MGD, which is only about 75% of the current demand (including losses).
Table VI-64 – Pumping Patterns for Tubewells
Pumping No. Of No of Total Functional Pumping Current

Pattern Tube wells Functiona Design Design hrs per Production a
l Tube Capacity Capacity day day (MGD)100
wells (cusec) (cusec)
Direct 32 27 36.5 31.5 8 7

Pumping
Pumping 20 17 26.5 22 13 8
Capacity
for Filling
OHR
Total 52 44 62 53.5 15 MGD
283. An initial condition assessment of the tube wells suggests that 8 are non-functional, 5
operate inefficiently, 14 need replacement or rehabilitation of motors & pumps, 26 need new
Motor Control Units (MCUs) and 14 pump houses need to be repaired.
284. A survey of each of the tube wells in Sahiwal is proposed to determine the condition of
each installation, the power consumption, current pump discharge and the availability of bulk
meters, pressure gauges and chlorination facilities. Further conclusions regarding the tube wells
will therefore be available once this survey work has been completed. Based on the information
to date, the following conclusions can be reached:
 It is likely that the actual discharge from the tube wells is significantly less than the rated
capacity as the pumps are old and in apparently poor condition. The water table has
reported to have fallen over the past years such that the required pumping heads will
have increased.
 The tube well installations pump both directly into overhead storage reservoirs and the
distribution system with a fixed daily operation. Pumps are operated at certain times to fill
the tanks and switched off at times while the tanks supply the distribution system. This a
manual operation based on fixed timings
 There is no integrated control system such as a SCADA for the tube well installations or
pressure gauges at the sites, which would enable some pumps to be switched off when
not required.
285. Clearly the reported lowering of the water table in recent years is a cause for concern.
While this may be addressed in the short term by modifying the pump duties, a longer term
solution would be to counter the rate of lowering of the water table. Several means may be
considered to achieve this as discussed below:
 Regulate groundwater abstraction by developing an inventory of all private wells

in Sahiwal and initiating and enforcing a permit system for the development of
new wells.
100
Based on the number of pumping hours and rated capacities of pumps.
Page 272
 Undertake a groundwater study to establish the optimum yield and appropriate spacing of
wells to prevent groundwater depletion through matching abstraction with recharge. This
may require the abandonment of some wells and drilling of new wells to meet the spacing
requirements.
 Provide artificial re-charge through rainwater harvesting or the use of treated wastewater.
 Consider supplying a portion of the water demand from surface water thereby reducing
the amount of abstraction of groundwater.
Water Quality and Treatment
286. Chlorination facilities at the tube wells are currently out of order so no disinfection is
provided to the water before it is distributed to the consumers. Given the reported contamination
of the water supplies from sewage and sullage, resulting from the proximity of the water supply
and sewerage pipes, and at times the negative pressures in the water pipes, clearly this
represents a health risk.
Water Storage
287. There are twelve overhead storage reservoirs within the water distribution network in
Sahiwal, eight of which are operational according to the information collected during the survey.
The total storage capacity is reported to be 480,000 gallons, of which 320,000 gallons is
functional storage. This represents 0.72 hours at the current demand and 0.47 hours at the
projected demand in 2035. Table VI-65 provides details of the reservoirs. The reservoirs are an
important element of the operational strategy of the water supply system with specific times
being allocated to filling of reservoirs such that they can provide supply during peak demand
periods.
Table VI-65 – Details of Overhead Reservoirs in Sahiwal

Sr. No. Name of OHR Capacity Functional/Non
Functional
1 City OHR 50,000 F
2 Thana Fateh Sher Gujjar Haata
50,000 F
OHR
3 Tariq bin Ziyad Colony OHR 50,000 N.F
4 Bhutto Nagar OHR 30,000 F
5 Jhal Road Hazuri Park OHR 30,000 F
6 Androon Ghala Mandi OHR 30,000 N.F
7 Small Industries OHR 30,000 F
8 Jahaz Ground Niazi Park OHR 30,000 N.F
9 Scheme 3 Farid Town OHR 30,000 F
10 Stop-7 Farid Town OHR 50,000 F
11 Saleem Park Farid Town OHR 50,000 F
12 Scheme 2 Farid Town OHR 50,000 N.F
288. In addition to the dysfunctional reservoirs, a number of the functional reservoirs are also
in poor condition and require repairs. There are currently 13 existing water supply zones in
Sahiwal (within the current TMA boundary), 8 of which contain overhead reservoirs. However
even within these 8 zones, direct pumping into the distribution system is practiced. This indicates
that the available reservoirs have inadequate capacity such that direct pumping is required to
Page 273
cater to the demand as well as maintain pressure during supply. The remaining five zones are
entirely dependent on direct pumping feed with no overhead reservoir.
Distribution Network
289. The current water distribution network in Sahiwal is shown below in Figure VI-66. Pipe
materials utilised in the distribution system are cast iron (C.I), galvanised iron (G.I), asbestos
cement (A.C) and PVC. Pipe diameters range from 3 inch to 16 inch and the total length of the
network is 153 km. This includes about 89 km of A.C pipe work. The coverage of the distribution
network within the municipal boundary is almost 90%, but the pipe network is poor and outdated,
and sewage intrusion occurs in non-supply hours when the system is not pressurised. Currently
there are 14,734 active connections out of a total of 41,209 households, suggesting that much of
the population either has an illegal connection or a private well although given the low water tariff
of PKR 400 per annum there seems little benefit in having a private well. As a result, revenue is
low which impacts on operation and maintenance as well as system rehabilitation.
290. The system is operated intermittently (8 hours per day) with times allocated to fill the
reservoirs and other times to supply consumers from the reservoirs, during which time the tube
wells are kept running until the supply cycle is completed. There are no valves within the system,
so supply is regulated by opening and closing the tube well pumps.
291. There are twelve filtration stations located around the town that supply drinking quality
water to consumers. People tend not to drink water supplied through the distribution network, but
prefer to drink either the water obtained from the filtration plants or bottled water.
Page 274
Figure VI-66 – Sahiwal Water Distribution System
R. Sewerage
Collection System
292. The sewerage collection system for Sahiwal is shown below in Figure VI-67. The system
comprises 250 km of 9 inch to 48-inch diameter sewers as shown in Table VI-68, serving 90% of
the city population and covering 80% of the city area. This is a combined system carrying both
stormwater and wastewater and there are no separate major drains inside the city boundaries.
Despite the reported high coverage, there are only 15,406 sewerage connections from 41,209
households, with other wastewater and storm water being conveyed through open drains into the
sewerage system or through manholes, which are opened during heavy rain to assist in relieving
local flooding. The pipe network is reported to be old, in poor condition and suffers from frequent
blockages and collapsed sewers. There is reported to be contamination of the water supply
system from sewage due to the poor condition of both the water and sewerage network, the
proximity of the water supply and sewerage pipes, and since the water supply pipelines are at
times not pressurised.
293. An assessment of the sewer diameters indicates that they are sufficient to cater for the
projected 2035 sewage flows.
294. A sewerage tariff is charged based on plot size as follows.
Page 275
Plot Size (marlas)101 Sewerage Tariff

1-5 180/annum
6-10 480/annum
11-19 600/annum
1K-2K 720/annum
>4K 1200/annum
295. The principle of charging for a sewerage service is encouraging. This will assist in the
development and implementation of future tariff structures. Implementation will lead towards cost
recovery for the water supply and wastewater systems.
Figure VI-67 – Sahiwal Sewerage System
Source: Sahiwal Sewerage System, ADB/Urban Unit 2015
101 2
1 marla = 272 ft
Page 276
Table VI-68: Sahiwal Sewer Lines Diameter & Length

Sewer Lines Dia (Inch) Length (Km)
6 28
9 107.6
12 51.2
15 12.8
18 7.3
21 2.5
24 16.3
27 3.7
30 0.8
33 5.2
36 9.5
42 2.2
45 1.1
48 1.8
Treatment and Disposal
296. All combined wastewater and stormwater is conveyed to ten separate disposal stations
(4 major and 6 minor) that pump the raw sewage into several water bodies. No sewage treatment
is undertaken. The location of the disposal stations and the catchment areas served is shown in
Figure VI-70. The major disposal stations are Manzoor Colony, Fareed Town, 89/6R and Katcha
Paka Noor Shah. Most disposal stations deliver raw sewage to nallahs and then to agricultural
fields. Manzoor Colony Disposal Station discharges effluent into the 9-L irrigation canal and has
been the subject of a case at the Environmental Tribunal. With assistance from PHED, the City
has proposed a scheme to pump the wastewater to another water body 13 km south of the city at
a cost of Rs 670 million. A more sustainable solution might be to treat the waste prior to disposal
rather than shifting the problem to another location.
297. Further details of the disposal stations are shown in Table VI-69 below
Table VI-69: Details of Sewage Disposal Stations

Disposal Station Type Current Discharge
Estimated Inflow
(cusecs)
Manzoor Colony Major 11.7 Two deliveries to 9-L irrigation canal
and to field.
Fareed Town Major 13 Two deliveries – nallah to fields and
direct to agricultural lands through
lined drain
KachaPacca Noor Shah Major 6.0 Nallah to scarp drain
89/6R Major 8.4 Nallah to agricultural fields
Mohalla Noor Park Minor Wet well of Manzoor Colony
Disposal Station
Imamia Colony Minor LBD canal
Rajpura Minor Water courses to agricultural fields
Bashir Colony Minor Water courses to agricultural fields
Dosehra Minor LBD canal
Small Industries Minor Inlet sewer of Fareed Town
Page 277
298. The condition of two of the major disposal Stations, Manzoor Colony & Fareed Town is
poor in terms of machinery, pumps, electrical accessories, backup support, and wet wells. The
condition of two other major disposal stations, Kacha Pacca Noor Shah and 89/6R is relatively
fair as both were installed in recent years. However, Kacha Pacca Noor Shah electrical
accessories require attention. The condition of all minor disposal stations is poor. Fareed Town
disposal station has the largest catchment area, but in terms of disposal capacity, Manzoor
Colony is the most critical.
299. While TMA services are generally restricted to the Municipal limits, the urban settlements
beyond the Municipal limits are using the TMA wastewater infrastructure by connecting their
sewer networks to the TMA operated disposal stations.
Industrial Wastewater
300. As an agricultural centre, there is limited industrial development in Sahiwal although

there are some tanneries and other polluting industries that discharge wastewater into the water
bodies and the drainage/sewerage system. Waste from a leather factory is reported to be coming
into the wet well of Rajpura Disposal Station.
Stormwater Drainage
301. There is no separate stormwater drainage system in Sahiwal. There are small open
drains in the streets which direct stormwater into the combined sewerage/drainage system or to
the nallahs. The city does not believe it to be appropriate to construct a separate stormwater
drainage system since rainfall is minimal for 9-10 months of the year, and the drains would
collect dust and other debris during the dry season, such that they would become blocked prior
to the rainy season. It is probably more appropriate to continue to utilise a combined system, and
in the longer term dispose of excessive stormwater through overflows while providing treatment
facilities for combined flows below 2-3* Average Dry Weather sewage flow. The excess
combined wastewater discharged at the overflows would be within the current effluent discharge
requirements unless it was heavily polluted by industrial wastewater.
Flood Assessment and Risk
302. No flood risk assessment maps have been identified for Sahiwal. Advice from the TMA is
that flooding is not a major issue in Sahiwal. There is some ponding, which generally dissipates
after a short period. This should be further addressed by improvements to the combined
sewerage/stormwater drainage system.
Page 278
Figure VI-70: Catchment Areas of Disposal Stations
Source: Sahiwal Sewerage System, ADB/Urban Unit 2015
S. Operation and Maintenance of the Water Supply, Wastewater and

Drainage Systems
303. The TMA is responsible for the operation and maintenance of the water supply,
sewerage and drainage systems within the current Sahiwal City urban boundaries.
304. There is a need for a professionalized arrangement for managing water supply and
wastewater collection and treatment systems in Sahiwal. Efficiency is the key issue in the
assessment of existing water and wastewater institutions in Sahiwal since it has been argued
that private sector involvement promotes efficiency. There are many reasons for current
inefficiencies in the sector, poor governance is one of them and besets the water supply sector,
particularly in service coverage, (especially among the poor), prevalence of water vendors,
intermittent supply, collection efficiency, water accountability, Non-Revenue Water (NRW) and
the continued pollution of water bodies in the city. Key causes and impact of poor governance
are summarized in the governance problem tree depicted in Figure VI-71.
Page 279
Figure VI-71: Governance Problem Tree
Poor service delivery,

High NRW, low water Poor Infrastructure
deteriorating environment Low financial
accountability, low construction,
IMPACTS and quality of life, low accountability
supply and service maintenance and
consumer awareness and Low tariffs
coverage operations
expectation
CORE PROBLEM POOR GOVERNANCE
Capacity and Rigid HR

Strategic Management Political, Regulatory and
CAUSES Constraints
Policies and Procedure
Autonomy constrains
Institutional Constraints
Constraints
Lack of strategic direction – Political resistance to tariff

Lack of technical capacity in Lack of specialized institution
focus is in on day to day and user fee and little for urban water and waste
existing staff
business political support for cost sector
recovery
Standard Organizational
Disconnect between planning, Structure - no provision for Low tariff and revenue
construction and operations sector specific skill and man Week regulatory mechanism collection, flat charging
power – government is owner, system for services.
regulator, and operator
Lack of information system
for effective planning and No incentive for capacity Week performance
decision making development – not linked to Pressure and interference in management and
career and performance development schemes and accountability mechanism
Week coordination between management budget preparation
policy maker and Service Weak sector policy and
provider Diploma engineers prepare performance targets
and supervise scheme while Formal and informal control
senior engineers restricted to over appointments, Outdated rules, regulation,
Weak accountability clerical tasks design and codes
promotions and transfers
mechanism and enforcement
Difficulty to recruit suitable
staff on standardised pay Lack of planning culture
Political involvement in
Operations and Management scale and benefits
technical matters
Lacks Priority Lack of clear division of
Weak Knowledge about responsibilities among various
rules, regulation, codes and service providers
Insufficient / poor regulatory Vested interest in status quo
current best practices
control Rent seeking behaviour/
culture to overlook design and
standards
305. One of the most important considerations in the operation of water and wastewater
infrastructure is the autonomy of the utility to manage its business affairs efficiently and
competently, without fear of political recriminations. Utility services, certainly in Pakistan’s
context cannot always avoid political interference. However, there will be a need to discourage
elected and bureaucratic officials from becoming involved in the day to day operations, to the
extent that they begin to exert control over management, or exercise patronage over staffing in
the company.
306. Under current municipal arrangements in Sahiwal, the management of human resources
is weak and there is a lack of skilled staff, clear job descriptions are non-existent and promotions
are based on age, length of service and personal connections, and are generally not on merit. As
a result, there are few incentives for staff to perform well. Recruitment is also slow and with
recruitment bans imposed by provincial government a regular feature. The net effect is vacant
positions and overall lethargy in organizational performance. Key goals and objectives are not
met and poor services the consequence. The TMA have very limited qualified technical and
engineering professionals, and even their skills largely go untapped in the climate of low
autonomy, accountability transparency and indifferent management. O&M is a poor relation to
development in the absence of incentives, and low tariffs do not help. Operational staff can often
collude with customers to create their own incentives.
307. Non-Revenue Water (NRW), intermittent water supply and low service coverage are
direct results of the lack of autonomy and accountability, and are indications of poor governance.
Part of the governance problem lies in having a single entity as owner, regulator, and operator.
Page 280
Self-regulation can work only in a mature and disciplined society where governance frameworks
are in-grained into society and where the principles of separation of powers are upheld.
Changing the way these are services are delivered and the very organizations tasked with the
responsibility to deliver will be essential. A focus on customers, citizens and public service
management is needed to reverse poor governance in urban service provision. A clear
framework for citizens to have their say in how their services are provided will go some way to
redressing the balance. Government must ‘steer’ and not ‘row’ is the approach that should be
adopted and strikes at the very heart of the question about the changing role of government in
service provision.
308. Appropriate legislation and regulation is necessary but an insufficient panacea, this must
be coupled with ‘enforcement’. Policy transparency is fundamental and civil society must hold
government accountable for implementing policies successfully and unsuccessfully. The water
and wastewater section of the TMA, on the other hand, needs autonomy, accountability,
incentives, and the ability to perform. Key contributors and impacts of improved governance are
summarized in Figure VI-72.
Figure VI-72: Governance Solution Tree

Operation and
Better environment

cost recovery and
improvement
T. Services in Low Income Areas

Social Impacts of Water Supply and Sewerage in Sahiwal
309. The anticipated social benefits and impacts of the PICIIP are directly related to key
economic social and cultural issues. The project will have a direct impact on employment and
economic activity, benefits in the provision of community infrastructure and pressures on their
use: pressures on natural resource: and long-term sustainable development within the city. The
assessment of the public health impacts of the PICIIP will encompass direct and indirect impacts
related to the health, and well-being of people living and working in the city and region of
influence of the project. There will be a decrease in water related diseases, an improvement in
health conditions and wellbeing in local communities.
Water Supply
310. Safe drinking water is a basic necessity, for every individual and as such is one of the
key targets for improved coverage in the PICIIP. It is also vital for sustainable environmental
conditions and for combating water-borne diseases. The main project strategy in the area
regarding water supply is to improve the performance and operation of local water supply
systems by promoting community responsibility to participate in management and maintenance
of systems. Figure VI-73 shows the common diseases prevalent in Sahiwal as identified during
the PPTA field survey conducted between September and November 2015, of which diarrheal
diseases and typhoid fever rank highly.
Page 281
Figure VI-73 – Common Diseases Prevalent in Sahiwal
311. Presently there are 14,734 registered water connections in operation. Besides these
registered water connections there are many unregistered water connections installed by the
residents without any permission from the concerned department/TMA. These unregistered
users are not in the records of TMA neither are they paying any tariff. Further there are a number
of households who are not availing the facility in spite of the availability of the network. Many
residents complained that the quality of water is not adequate for drinking purposes and some of
them responded that the pipes are broken or choked and unable to supply water. People who do
not use the water facility get water from boreholes, some get it from their neighbors, others fetch
drinking water from the filtration plants scattered around the town. Higher income communities
use bottled water for drinking purposes. It was assessed through survey that at present 69% of
the households use the TMA water supply facilities in some form. Out of these 54% showed
their satisfaction while 46% showed their dissatisfaction as indicated in Table VI-74 below.
Table VI-74: Access to Social Amenities in the Project Area
Services Water Sewerage Health Electricity School Gas

Supply
Available 69% 72% 66% 100% 96% 69%
Deprived 31% 28% 34% 0% 4% 31%
Satisfactory 54% 33% 38% 58% 64% 82%
Non 46% 67% 62% 42% 36% 18%
satisfactory
Source: Sample survey
Sewerage
312. The sewerage system was established during the years 1977 to 1985 in three phases.
However, although the coverage is good (80% of the city), the age and limited maintenance of
the system is such that it is no longer in good operational condition and is creating many
problems for the inhabitants. Despite the coverage, several areas of Sahiwal city are still facing
serious problems related to poor sewage disposal that not only causes contamination but also
makes life for the residents miserable throughout the year. Some of these areas are, Fathe Shar
Colony, Nai Abadi, Scheme No 2 and 3, Muslim Bin Aqeel Colony, Labor Colony, Ghala Mandi,
Peoples Colony, Anayat Colony, Farid Town, Jinnah Chowk, Ghouri Chowk, Goal Chakker,
Amamia Colony and Amato Colony. Although the system is old and many pipes are broken or
choked, the TMA staff are finding ways to manage it despite limited manpower resources and
equipment.
Page 282
313. Through field survey, it was assessed that almost 72% of the population are connected
with the sewerage system. Among these 67% are not satisfied, due to blockages and other
reasons while 33% showed their satisfaction as presented in Table VI-74. Heavy rains cause
extensive local flooding and storm water mixes with raw sewage, spreading contamination in the
area. Due to rains and storm water low line areas are facing drainage problem. Due to over
flowing in few areas, sewerage system causes diseases, bad smell, un-hygienic conditions, and
loss to aesthetic values.
Willingness to Pay for Water and Sewerage Services.
314. The willingness to pay (WTP) and social surveys conducted by the project team have
shown that presently people are generally dissatisfied with the quality of water supply and
sewerage services. Consequently, they are reluctant to pay their bills and there is a very low
level of collection of user charges. However, the survey has also shown that customers would
pay more than the present level of charges for better service quality. On average the willingness
to pay for the water and sewerage services is assessed at Rs. 100 per month per household for
each service.
U. Urban Poor Areas in Sahiwal
Katchi Abadis
315. Rapid urbanization and population increase have been responsible for the growth of
cities and towns. The PFS team with the TMA staff identified the 34 Katchi abadies in the area as
shown in Table VI-75 and Figure VI-76. (according to the Revenue Department Punjab)
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Table VI-75: Katchi Abadis in Sahiwal.

S No Name of Katchi Abadi S.No
1. Behind General Bus Stand 18 Fateh Sher Colony

2. Amato Colony 19 Mohallah New Farid Ganj
3. Christian Colony, Karbala Road 20 Dosehra Ground
4. Mohallah Farid Ganj 21 Junejo Colony
5. Gau Shalla, Ghallah Mandi 22 Khilji Colony
6. Jehaz Ground 23 Oad Colony
7. Imamia Colony, Ext. 24 Sharif Colony, Ext.
8. Ahata Bedian 25 Fateh Sher Colony
9. Christian Colony, Gujjar Ahata 26 Christian Colony Near DPS School
10 Mohallah Salamat Pura 27 Dastagir Colony, Amjad Park
11. Ghausia Colony/Rehmat Colony 28 Ghallah Mandi West
12. Opp: Boys Degree College 29 Inayat Elahi Colony
13. Ghallah Mandi East 30 Imamia Colony
14. Sharif Colony 31 Fateh Sher Colony, Ext.
15. 32 Christian Colony, Noor Shah Road(Esa
Bhutto Nagar/Nusrat Colony
Nagri)
16. Islam Nagar 33 WAPDA Colony
17. People’s Colony 34 Ghallah Mandi South
Figure VI-76: Katchi Abadi Map of Sahiwal
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Poor Areas of the City
316. Poverty is wide spread in Pakistan and is particularly predominant in rural areas. The
unemployment, law and order situation, increase in inflation and power crises are the main cause
of poverty in the country. According to SDPI’s study on poverty in Pakistan, every third Pakistani
is living below the poverty line. In Punjab, 19 % of the population is living below the poverty line.
The poor areas are located throughout the city as shown in Table VI-77 and Figure VI-78. The
scattered nature of the poor areas indicates that most of the poor communities are close to
access to water supply and sewerage services, although they most likely do not have
connections
Table VI-77: Poor Areas in Sahiwal City.
S No Name of the S Name of the S No Name of the Community

Community No Community
1 Anayat Elahi Colony 24 Mohalla Noor Park 46 Christen Abadi Gujar
Ahatta
2 Ghala Mandi Janobi 25 Oad Colony 47 Quarter Basti
3 Sarki Bazaar 26 Jhaz Colony/Ground 48 Labor Colony
4 Kot Khadam Ali Shah 27 Ghousia Colony 49 Muhammad Purra
5 Bhutto Nagger 28 Qurashi Mohallah 50 Peoples Colony
6 Fathe Sher Colony 29 Sindhi Mohalla 51 Sharif Colony Sharqi
7 Junejo Colony 30 Essa Nagri 52 Manzoor Colony
8 Mohalla Tulliana 31 Islam Naghar 53 Husain Colony
Wala
9 Gool Chaker 32 Mohallah Raj Purra 54 Dispensary Wali Abadi
10 Sharif Colony 33 Salamat Pura 55 Behari Colony
11 Bashir Colony 34 Merath Colony 56 Abadi DPS Road
12 Machar Colony 35 Gujar Ahata 57 Chand Mari Road
13 Sabir Colony 36 Wapda Colony 58 Christien Abadi Farid Gunj
14 Amamia Colony 37 Dosehra Ground 59 Ahatia Beadian
15 Amato Colony 38 Dastgeer Colony 60 Abadi Opposite Boys
College
16 Mohallah Fareed Khelji Colony 6162 Ghalla Mandi Gharbi
Gunj
17 Oad Abadi Fathe 39 Katchi Abadi Raj 62 Ghalla Mandi Sharqi
Shair Wah
18 Baba Farid Park 40 Kot Allah Din 1 64 Muhammad Husain Colony
19 Husain Abad Colony 41 Shah Zaman Colony 65 Ali Meher Colony
20 Zahis Town 42 Barkat Town 66 Muhamdia Town
21 Gas Pal Colony 43 Bhutto Nagger 67 Awan Town
85/6R
22 Ali Afzal colony 44 Kot Ghulam 68 Shah Nawaz Block
Muhammad
23 Rasool Pur, Aziz 45 Shahbaz Town 69 Mohallah Pir Bukhari
Abad Colony
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Figure VI-78 - Poverty Map of Sahiwal City.
Source: Developed by UU Lahore
V. Stakeholder Consultations
317. Stakeholder consultation is about initiating and sustaining constructive external
relationships over time in collaboration with ADB’s and PFS Project Preparation Specialists.
Consultation meetings were conducted with identified primary, secondary and key stakeholders.
Discussion points of the meetings focused on gathering information on the organization’s set up,
to conceive their strengths and weaknesses; their priority related issues and concerns;
willingness to support the project and its activities including possible assistance. Listening of
stakeholder concerns and feedback was a valuable source of information that improved project
related aspects and outcomes, and helped to identify and control external risks. In this regard
meetings were conducted with TMA authorities such as the Administrator, TMO, TO Finance, TO
Infrastructure &Services and TO planning, to brief them regarding the project objectives, and to
obtain feedback regarding the available resources with TMA Sahiwal. In addition, meetings were
conducted with NGOs and civil society activists who are involved with different aspects of
development in Sahiwal. The main NGOs in the area, such as Finca, Kashaf Foundation, U-
Micro financing, Waseela, Tameer Bank and Akhoot were consulted to get the social and
economic set up of the area.
318. The meetings with stakeholders assessed the existing infrastructure practices, problem
identification, root causes associated with them, needs, demands and priorities and explored the
different options for future coordination amongst the stakeholders.
319. The main topics discussed were:
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 Availability of poor urban infrastructure services with the old and outdated water supply
system which does not perform efficiently;
 Non-availability of the landfill sites for proper dumping of the solid waste;
 Blocked and choked sewage lines at various places;
 Lack of Social and Resettlement Expert to manage the LAR issues during the project
execution;
 Community ignorance regarding the city cleanliness;
 Community willingness to participate in the project activities in terms of monetary and
physical participation;
 The TMA will replace the various sections of water supply line and restore the
abandoned bores under the PCIIP;
 The TMA will upgrade the damaged sections of the sewage pipelines under the PCIIP;
 District Government (through the Revenue Department) will identify the landfill site.
 NGOs will help the project proponent in identification of problematic areas in terms of
poverty and gender issues;
 The Resettlement Expert will build the capacity of the concerned department to address
the safeguard issues in concurrence with the ADB’s Safeguard Policy Statement (SPS)
2009;
 Local people will get the employment on a priority basis under the project
 There will be provision in the contract that movement of the local population should not
be hindered, especially the working class/students and women.
W. Community Needs and Priorities

320. Needs can be defined as the gap between what is and what should be. An individual, a
group, or an entire community can feel a need. It can be as concrete as the need for food and
water, or as abstract as improved community cohesiveness. Assessing need and defining their
priority helped the PFS Team to gain a deeper understanding of the local community in Sahiwal.
Each community has its own needs and priorities, as well as its own culture and social structure.
The community needs assessment was done in regard to project specific goals. These goals not
only help to uncover their needs and priorities, but the underlying culture and social structure that
facilitates understanding of how to address the community's needs and utilize the available
resources. Table VI-79 describes the level of priorities.
Table VI-79: Community Needs and Priorities.
S No Priority for services Priority Level

High Medium Low
1 Water Supply 69 % 13% 18 %
2 Sewerage 67% 18 % 15%
3 Health 48% 29% 23%
4 Education 40% 27% 33%
5 Solid Waste Management 29% 24% 47%
6 Road Infrastructure 19% 31% 50%
7. Land ownership 18% 31% 51%
Source: Sample survey
321. Through the field survey and FGDs it was revealed that drinking water is the highest level
priority and the sewerage system is the second priority of the Sahiwal residents.
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X. Overall Community Response for Proposed Project Interventions

322. Initial social assessment meetings were arranged with the residents/beneficiaries of the
areas. They were interviewed to obtain the community’s response to the proposed investment.
People were asked about the potential benefits / problems related to the execution of the Project.
They were also consulted to understand their views regarding the alternatives to determine any
adverse impact of the project. None of the respondents responded regarding project alternatives
but emphasized on the implementation of the project. They said that this project would be
beneficial for the community in the future. Implementation of the water supply and sewerage
component will result in a good impact on their socio economic status and quality of life.
Y. Sector Strategy - Water, Sanitation, Sewerage and

Drainage
323. Poor sanitation and related water supply, both of which are impacted by the quality of
solid waste management, may be costing Sialkot as much as $30 million per year, and Sahiwal
in the order of $15 million per year in lost economic activity (see Chapter I and Chapter II). It is
obvious that the Water, Sanitation and Drainage component of the PICIIP is a major contribution
to developing Sahiwal and Sialkot into the inclusive, safe, green, livable, resilient, sustainable
and competitive cities that they strive to be. To effectively achieve that contribution, Water,
Sanitation and Drainage must be approached within the over-arching guiding frameworks of the
city’s Integrated City Development Strategy (ICDS) and Climate Risk Vulnerability Assessment
(CRVA) as presented in Chapter IV and Chapter V of this Report. The three are mutually
supportive, as are the linkages between Water, Sanitation and Drainage and the other proposed
investment components of Solid Waste Management, Transport, and Institutional development.
Figure VI-80 illustrates these linkages.
economical approach to the provision of water and sanitation services, and promote effective
drainage. The ICDS recognizes the need to address Water and Sanitation from the people-
oriented, community-based level and proposes Mahallah strategies that support this. The ICDS
proposes urban development that addresses CRVA climate change responses in which Water,
Sanitation and Drainage play critical roles by helping protect water source quality, promote
alternative sources such as rainwater harvesting and conservation to replace dwindling
traditional sources, and prevent flooding and related health impacts through well-managed
drainage systems. In connection with the Water, Sanitation and Drainage component, ICDS
addresses the severe problem of industrial effluent treatment by proposing consolidated
industrial parks where dedicated treatment plants can handle segregated industrial wastes to the
standards required to maintain environmental integrity. The Institutional component integrates all
of this through policy, regulation and plans at various levels, agency management and municipal
financial management.
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Figure VI-80: Integrating Water, Sanitation and Drainage into the PICIIP
Sahiwal
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Key Issues with Current Infrastructure
Z. Sahiwal Application to CDIA102

Water Supply
325. While it is considered that the water supply network has sufficient coverage, the city is
concerned regarding:
 Excessive groundwater abstraction from private wells that is depleting into the water
table;
 The distribution system is old, resulting in excessive leakage and much of the network
needs to be replaced;
 Frequent power outages restrict pumping from the tube wells, and therefore the hours of
supply. Standby generators are required at the tube wells.
Sewerage and Drainage
326. The City considers that the current sewerage network coverage is adequate, but requires
the following infrastructure investments:
 The sewer system is under capacity, especially during the rainy season as there is no
separate drainage system. Sewer replacement in defective sections may be required.
 The sewage disposal stations are now largely in the residential areas due to the
expansion of the city. Further, disposal sewers are pumping raw sewage into the canals
or on to land. A case regarding disposal of raw sewage to the canals has been raised to
the Environmental Tribunal. As such a strategy needs to be developed for the
appropriate treatment of wastewater. The city/PHED has developed a proposal to divert
sewage to Sem Nallah, some 13 km south of the city.
AA. SWOT Analysis

SWOT Analysis for Water Supply, Sewerage and Drainage
327. Based on discussions with local officials and an assessment of the current status of
water supply, sanitation and drainage facilities, a SWOT analysis was undertaken for water
supply and sewerage infrastructure in Sahiwal as shown in Table VI-81.
102
CDIA Application and Assessment Form
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Table VI-81: SWOT Analysis for Water Supply and Sewerage Infrastructure in Sahiwal
Strengths Weaknesses
Good water supply and sewerage networks with Only 35% of households have regular water
high area coverage. connection and 37% with regular sewerage
Structure in place for charging for water supply connections despite high area coverage of
and sewerage. system.
Some sewage disposal stations may be able to Infrastructure old, not well maintained and
be converted into sewage treatment plants. under capacity.
Good awareness of city officials of the Low water supply and sanitation tariffs cannot
infrastructure issues facing the city. cover operation and maintenance.
GIS Mapping available Commitment of TMA to increasing charges is
not clear.
Raw sewage being discharged to water
bodies and land resulting in pollution and
health hazard.
No control over discharge of effluent from
industries to water bodies or sewers resulting
in pollution and increasing cost of treating
municipal wastewater.
No storm water drainage system resulting in
surcharge of sewers during period of high
rainfall.
Lack of training and development of TMA
technical staff.
Lacking Consumer survey or data base
Inadequate Offices & Equipment
Opportunities Threats
Good quality water available from aquifer in Substantial development in peri-urban areas
sufficient quantities. outside city boundary creating high demand
Some government land may be available for water supply and sanitation facilities.
outside city boundaries for location of sewage Over abstraction of water resulting in lowering
treatment plants. of water table, thereby increasing pumping
Limited rainfall for 8-10 months of the year limits costs and impacting on sustainability of
the need for a separate storm water drainage supply.
system. Many unregulated private wells pumping at
unrestricted rate.
EPA has already prosecuted a case at the
Environmental Tribunal regarding discharge
of raw sewage into a canal.
328. This leads to the problem tree as shown in Figure VI-82.
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Figure VI-82: Problem Tree-Sahiwal Water, Sewerage and Drainage

Low coverage, poverty,
Decline in service quality Absence of integrated urban
deteriorating quality of life, poor Wastage and inefficient use of
IMPACTS standards and revenue
environmental and health available resources
development approach, unplanned city
collection expansion and growth
conditions
CORE Poor Urban Water, Wastewater and Drainage Infrastructure and

PROBLEM Service Delivery
Institutional capacity and Demographic and Social

CAUSES regulation constraint
Resource Constraint
Issues
Urban Planning Constraints
Inadequate and insufficient

Absence of service delivery High rate of rural to urban Lack of urban development plans and
human and financial
standards migration master plans
resources
Population growth requiring

Absence of performance based Inadequate investments in rapid investments in sector Political driven development
incentives infrastructure
Low investments on Lack of coordination among

Political interference Local culture and norms
Operation and Maintenance departments
Poor enforcement of regulation Lack of training plan and

Security constrains Lack of updated and validated data
and policies resources
Insufficient regulatory
Absence of advanced tools city population to double in
Outdated rules and regulation control over municipal
and machinery next 20 years
growth
Absence of water regulator

Overage infrastructure
and accountability mechanism
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BB. Water Supply Issues in Sahiwal

Water Source
(i) Analysis
329. Based on the current estimated population of Sahiwal City and assuming a per capita
water demand of 33 gpcd, the current water requirement is 22 MGD, increasing to 40 MGD in
2035 (including the peri-urban areas outside the current TMA boundary). This translates to a
current average design flow of 34 cusecs, increasing to 61 cusecs in 2035. At present, Sahiwal
City has 52 Tube wells of varying capacities ranging from 0.5 to 2 cusecs, with a total rated
production capacity about 63 cusecs. Currently 44 tube wells out of total 52 are operational and
the production of operational tube wells as per their rated capacities is 53.5 cusecs. This is
based on the rated capacity of the tube wells, although even if it is assumed that the tube wells
available are running at half of their rated capacities, the production capacity is 31.5 cusecs,
which is sufficient for the present demand and the required production up to 2035 for areas within
Municipal Limits. Assuming that all 52 tube wells are in working condition, and producing water
according to their rated capacities, and the total production is 63 cusecs, the analysis suggests
that for the area within the municipal limits, each tube well would have to run 13 hours daily to
meet the demand of water at present, and around 16 hours to meet the demand in 2035. Thus
according to the analysis the current production of water meets the demand within municipal
limits up to 2035. However, in practice, at present, the tube wells assigned to fill the OHRs are
running 13 hours a day, and the tube wells supplementing the gravity supply through direct
pumping are running 8 hours a day, which indicates that the tube wells are producing half of their
rated capacities. Thus although the production capacity at present is sufficient to meet the
demand within municipal boundaries up to 2035, it will be necessary to refurbish all tube wells
and rehabilitate those which are not functional in order to extract at least the rated capacity.
330. Based on the survey conducted for the physical assessment of all 52 tube wells, it is
observed that 8 tube wells are completely non-functional and 5 are in extremely poor condition
such that that they are assumed to be abstracting 30% to 40% of their rated capacity. However,
during the survey, some physically assessed good condition tube wells were examined by
applying flow meter devices, and it has been recorded that even those extracted only 0.7 cusecs
instead of the rated capacity of 1.5 cusecs. Thus in addition to rehabilitation of non-functional and
poor condition tube wells, it is essential to refurbish all tube wells in order for them to operate at
least at their rated capacities.
331. However, the sustainability of the groundwater supply is at risk given the reported
depletion of the water table by 15 to 20 feet in last 10 to 15 years as discussed above. This
average drop in water table levels of 1.5 feet per year will impact on pumping costs, water quality
and groundwater yields if not addressed. In order to mitigate the water table depletion, strict
regulatory measures need to be adopted to control the abstraction of water by private users. In
addition, a ground water study needs to be undertaken to determine the optimum yield and
appropriate spacing for wells and to determine the trend analysis of depletion. Moreover, the
rainwater-harvesting method may be considered for artificial recharging of wells. Taking the
surface water as a source for water supply will also provide respite for the water table depletion.
332. In summary, the water source has two major issues; (i) non-functional bores and poor
condition of machinery and pumps, and the reduced production of water as per rated capacity;
and (ii) depletion of the ground water table.
333. The quality of the groundwater abstracted from the wells has not been tested but based
on the taste it appears that the Total Dissolved Solids (TDS) are within the permissible limits of
the Pakistan Standards of Drinking Water Quality.
334. Based on the above analysis, the major issues with water production and the source are
as follows;
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 Production of all functional Tube wells is assessed at less than the rated capacities.
Reference is the assessment made by applying flow meters, which determined that only
half of the capacity is being abstracted.
 There are eight (8) non-functional tube wells which need to be rehabilitated
 Five (5) tubewells are running at around 30-40 percent efficiency as assessed during the
survey.
 Functional tubewells also require new motors and electrical accessories, and civil repairs
of the pump houses.
 All these measures are essential to keep the production sufficient up to the requirement
of 2035, and also to restrict the pumping hours to between 8 and 13 hours.
 SCADA system for central control and water quality laboratories are also required.
Water Storage
(i) Analysis
335. The Sahiwal TMA manages the water supply system only within the municipal limits. It
does cover the peripheral settlements beyond municipal limits, which consist of colonies, urban
town schemes etc., even though these areas house a rapidly increasing population. There are 12
Overhead Reservoirs (OHRs) within the Sahiwal municipal limits in different areas of the city.
The existing water supply system in Sahiwal comprises 13 zones, 5 zones of which are supplied
through direct pumping, with 8 zones having OHRs as well as direct pumping to supplement
pressure in the gravity supply. The total storage capacity of OHRs is 480,000 Gallons. Out of 12
OHRs, eight are functional and 4 have been non-functional over a long period. Thus the
functional storage capacity at present is only 320,000 Gallons. If all 12 OHRs were operational,
the total storage capacity considering the current demand is 0.8 hours. However, as the
reservoirs are located in different zones, the available storage capacity is not uniform across the
city. For example, Fareed Town with 4 OHRs and a total storage 180,000 Gallons has a storage
capacity of 3.7 hours. Jahaz Ground zone with one OHR of 30,000 Gallons storage capacity has
a storage capacity of only 1 hour. Thus the storage capacities in each zone are different. Table
6.2 shows the storage capacity of each zone for the current demand and the projected demand
in 2035.
Table VI-83: Available Storage Capacity per Zone in Sahiwal

Zone No. Of Storage Present Flow Duration for
OHRs Capacity Population based requirements storage
(gallons) on density as per 33 gpcd
demand (gal/hr)
2015 2035 2015 2035 2015 2035
City Zone 2 100000 36450 46385 50243 63779 2 hrs 1.5 hrs
Jahaz 1 30000 21274 27018 29251 37150 1 hr 0.80 hr
Ground Zone
Tariq bin Ziad 1 50000 10393 13199 14290 18148 3.5 hrs 2.75 hrs
Colony
Bhutto Nagar, 1 30000 7957 10105 10940 13894 2.7 hrs 2 hrs
Muslim bin
Aqeel colony
Jhaal Road 1 30000 4547 5775 6252 7940 4.8 hrs 3.7 hrs
GhalaMandi 1 30000 16240 20624 22330 28358 1.34 hrs 1.05 hrs
Small 1 30000 11368 14437 15631 19850 2hrs 1.5 hrs
Industry
Fareed Town 4 180000 35565 45167 48901 62104 3.7 hrs 2.9 hrs
336. The five remaining zones have no OHR, therefore reducing the overall storage capacity
to 0.8 hours.
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337. The minimum storage capacity should be about 3 hours to provide for peak demand, and
to sustain supply during load shedding periods. Based on Table 6.2 above, storage capacity will
need to be increased in 6 zones.
338. New storage will also be required in the five zones that rely entirely on direct pumping.
Furthermore, it is likely that by 2035 some of the peripheral areas outside the municipal limits will
come under the jurisdiction of the TMA/Municipal Corporation, in which case water supply
infrastructure, including OHRs, will need to be provided in the medium to long term in a phased
manner.
339. Eliminating direct pumping into the distribution system and requiring all tubewells to
pump directly to the OHRs, will enable the water supply system to operate more efficiently as
well as saving on energy and pump life. For example, for Fareed Town with 4 OHRs with total
capacity of 180,000 gallons and with the tubewell pumping rate of 6 cusecs, it will take one hour
to fill the OHR which will provide supply for three hours, thereby requiring only 6 hours of
pumping per day.
340. The required investment in storage is therefore to enhance the capacity in 6 existing
zones and provide OHRs in the 5 remaining existing zones in order to avert direct pumping feed.
And over time to provide additional reservoirs as part of the developing water supply
infrastructure to the peripheral areas beyond the current municipal boundaries of the TMA.
341. In addition, it will be necessary as a priority to rehabilitate the four non-functional OHRs
to bring them into working condition. However, in Ghala Mandi zone there is only one OHR,
which is not operational because of some litigation issues with the Ghala Mandi Market
Committee, and which can only be made functional provided the litigation matter is resolved.
Otherwise a suitable site will need to be identified for erection of a new OHR for the Ghala Mandi
Zone. Ghala Mandi storage requires one additional OHR to provide the requisite 3 hours’ storage
so identification of a new site is necessary in any case for erection of this new OHR.
342. Based on the above analysis the major issues with storage are as follows;
 Insufficient storage capacity for the entire city within the municipal limits
 Four non-functional OHRs for rehabilitation
 Repair of functional OHRs
 Need for additional OHRs in zones already being fed through gravity.
 Need for additional OHRs in zones being fed through direct pumping.
 Need of OHRs in areas beyond the municipal limits.
Distribution System
(i) Analysis
343. The distribution network of Sahiwal city is estimated to be 153 km comprising pipelines of
diverse materials i.e. AC, C.I, PVC and G.I. of varied diameters ranging from 3” to 16”. This
distribution network is laid out within the municipal limits of the city excluding some compact
urban settlements located beyond the municipal limits. The current distribution network covers
almost 90% of the population within the municipal limits. However, there are only 14,734
connections, which is only 35% of the estimated total households within the municipal limits of
the city.
344. Furthermore, the proportion of AC pipe in the entire network is 88.9 km out of total 153
km. Although the condition of the AC pipe is generally fine, the longer term objective should be to
replace the entire AC pipe network with PE Pipe.
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345. During the survey and discussions with the water supply staff of TMA, several locations
were identified where the pipe network condition is poor. This results in excessive leakage and
contamination with sewage through cross connections with damaged pipes when the system is
not pressurized. Due to this reason, in such areas people rejected the TMA water supply and
opted for private wells and pumps in their household, which has led to the reduction of water
connections. This is one of the major reasons for the low number of water supply connections in
city. As a result of domestic pumping by the bulk of the population in such areas, and due to the
poor condition of pipes, excessive unaccounted for water occurs during supply hours. Thus the
replacement of pipes in such areas needs to be a priority investment to attract consumers and
enhance the number of connections with quality supply to the consumers as an objective. The
replacement of these poor condition pipes in such areas will also discourage the use of domestic
pumping in houses, with a consequent reduction in energy consumption.
346. It is likely that incorporation of the peripheral settlements outside the current municipal
limits within the TMA/Municipal Corporation is inevitable by 2035. Hence, in long term, the
provision of water supply infrastructure in the urban settlements adjoining the Municipal
boundaries of city will need to be designed and implemented.
347. Based on above details, the issues with distribution networks are as follows;
 Replacement of pipelines which are identified as outdated or in poor condition.

 Replacement of AC pipe networks in phases PE Pipes
 Provision of new distribution network in areas beyond the current municipal limits (to be
incorporated in TMA services in future)
Water Quality
348. Currently the TMA does not undertake water quality testing. However, it is considered
that based on the depth of abstraction and taste of water being supplied, that the ground water
TDS levels of water abstracted from the tubewells is within the permissible limits of the Pakistan
Standards for Drinking Water Quality. However, for chemical parameters, water quality laboratory
tests from water supplied at the tubewells should be undertaken.
349. However, water delivered at the household, as discussed above, is reported to be of poor
quality resulting in particular from the poor condition of the pipe network. Despite this, no
disinfection prior to distribution is being carried out. Thus the chlorination prior to distribution to
the tap needs to be introduced.
350. The key intervention required regarding water quality is therefore provision of disinfection
prior to distribution of water.
CC. Sewerage and Drainage Issues in Sahiwal

Sewerage Collection System
(i) Analysis
351. The sewerage collection system of Sahiwal city is 250 km in length comprising a diverse
range of pipe diameters from 6” to 48” with coverage of almost 80%. In densely populated peri-
urban areas of the city, surface drains also exist which convey sewage into connecting sewers at
different locations. Thus the coverage of sewerage throughout the city and its environs is
generally good. Furthermore, it is a combined system addressing stormwater and wastewater
during periods of rainfall. However, despite the good coverage, the numbers of connections for
sewerage services are only 15406 in total, 37% of the total estimated number of households
within the municipal limits of city. The tariff for waste water services varies as per size of the plot
i.e. for 5 Marlas,> 5 Marlas up to 10 Marlas, > 10 Marlas, it is 180/annum, 480/annum and
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720/annum respectively. Collection of revenue for sewerage services in Sahiwal is encouraging

as compared with many other cities of Punjab where no charge for sewerage services is made.
352. The condition of the sewerage network is mostly fair except in a few areas identified
during the survey where water supply is being contaminated by sewage intrusion due to
leakages in both networks. During the survey, 9 inundation/ponding areas were identified for
analyzing the reasons for ponding either during rainfall or as a routine situation. Out of these nine
ponding areas, four are minor in occurrence and 4 are nominally acute in severity. Out of these
nine ponding areas, 4 are in the catchment area of Fareed Town Disposal Station, another four
are in the catchment area of Manzoor Colony Disposal Station and one is lying in the peri-urban
area of Noor Park Mohalla, and attached to the catchment area of Noor Park Mohalla Disposal
Station. However, the sewer lines existing in these ponding areas are generally 9” or 12”
diameter, are in fair condition and sufficient for conveying sewage in these areas. The main
reason observed to be behind these inundations is poor operations (frequent sewer cleaning),
poor performance and capacity of the disposal stations. Both Manzoor Colony Disposal Station
as well as Fareed Town Disposal station has large catchment areas, and the load of wastewater
is high at both Disposal Stations. In addition, both disposal stations have outdated pumps,
machinery and inadequate electrical accessories as well as wiring, and insufficient backup
support for tackling the load in peak hours or in the wet weather flow period. It has been
observed during surveys that sewer capacity is not an issue in Sahiwal except in few places. The
priority issue is rehabilitation of the four main disposal stations.
353. As discussed above, there are 6 minor disposal stations each having one pump room
and a wet well, receiving wastewater from small pockets of the catchment area. The condition of
these disposal stations is extremely poor, and they seem ill planned, for example where the
delivery of Mohalla Noor Park Disposal station (minor) falls into the main sewer conveying
wastewater to Manzoor Colony Disposal Station (major). The delivery of the Small Industries
Disposal Station is directed into the main sewer conveying wastewater to the Fareed Town
Disposal Station. The delivery of the other 4 minor disposal stations is either direct to agricultural
lands or to the LBD Canal, without treatment. Rather than retaining these minor disposal
stations, a detailed study is required for diverting the sewage flow from the minor disposal
stations, and conveying through gravity to the main disposal stations. The minor stations can
then be abandoned.
354. Furthermore, the delivery pipes at all disposal stations are generally in an extremely poor
condition and need replacement in order to sustain the pressurized flow from disposal stations.
355. Based on above analysis the sewerage system in Sahiwal has issues as follows;
 Cleaning of blocked sewers

 Replacement of faulty sewer lines
 Rehabilitation of main disposal stations.
 Rehabilitation or abandonment of minor disposal stations.
 Provision of conveyance system for diverting the sewage from Minor Disposal
Stations into Major Disposal Stations.
 Replacement of delivery lines of main disposal stations.
356. Currently wastewater reaching the disposal stations is pumped without treatment either
to canals, agricultural fields or to a scarp drain in one case. This is an unacceptable situation
regarding water quality in the water bodies in Sahiwal as well as a health hazard for agricultural
works and consumers of crops irrigated with untreated wastewater. The EPA has already filed a
case against the Sahiwal TMA for discharging untreated wastewater from Manzoor Colony
Disposal Station to the L-9 canal. An urgent priority for Sahiwal is to provide treatment to the
wastewater in accordance with Pakistan effluent discharge standards prior to discharging to the
water bodies. Treatment may be provided on a decentralized basis at the four main disposal
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stations, or all wastewater could be conveyed to a centralized treatment located outside the
municipal limits. Current analysis shows that there is insufficient space at the four main disposal
stations, but primary treatment could be provided as an interim measure in the short to medium
term. In the longer term, a suitable site could be found outside the municipal limits to convey all
wastewater to a single treatment plant where secondary treatment, and ultimately tertiary
treatment may be provided.
357. The overriding issue is that wastewater treatment must be provided.
Industrial Effluent
358. Since Sahiwal is not as industrialized compared with many other intermediate cities of
Punjab, industrial effluent is not a serious issue in the present context. However, in the future,
Sahiwal is expected to be the hub of the main trade route coming from the Economic Corridor
with China. Industrialization in Sahiwal can be foreseen, but the scale of industrialization and the
nature of industries cannot be presumed or determined at present. During the survey, it was
observed that wastewater from a leather factory was directed to the wet well of Rajpura Disposal
Station (Minor Disposal Station). Given the potential industrialization of Sahiwal, it may be
prudent for the TMA/Municipal Corporation to develop zones for industrial development such that
industrial wastewater can be conveyed to a common treatment plant before it is either
discharged to the sewer or to adjacent water bodies. Protocols could also be established to
require industries to pre-treat wastewater to domestic standards prior to discharging to the
sewer. A licensing and effluent discharge fee system could be established to provide a
framework for charging industries for discharges, which do not meet, prescribed standards. The
TMA/Municipal Corporation should liaise closely with EPA with the establishment and monitoring
of these protocols.
Stormwater Drainage
359. While discharge of industrial effluent is not a major issue in Sahiwal at present,
the TMA/Municipal Corporation should plan for the future with the establishment of industrial
effluent discharge protocols.
360. At present Sahiwal has no separate storm water drainage infrastructure to cater for
rainfall runoff. The TMA administration does not believe that a separate storm water drainage
system is required given that rainfall is minimal for 9-10 months of the year.
DD. Roadmap - Water, Sanitation, Sewerage and Drainage

EE. Infrastructure Development Options
Water Supply
(i) Water Source Development
Tubewells
361. Although the water supply facilities in Sahiwal generally meet the demand within the
current municipal boundaries, the system requires improvements and rehabilitation to continue to
satisfy demand up until 2035. In addition, the city is rapidly expanding with urbanised settlements
beyond the municipal boundaries such that considerations for extending water supply services to
these urban settlements beyond the municipal limits lies needs to be addressed.
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362. The aim should be to ensure a 24/7 continuous supply with the focus on improving
services within the existing Municipal limits, that comprise ensuring abstraction of the required
production of water, ensuring a continuous 24/7 supply within existing boundaries and increasing
the number of connections within the existing boundaries. In addition, measures for provision of
new water supply systems in the urban settlements beyond the municipal limits should be
undertaken. Thus the focus of the strategy includes both components; i.e. improve the existing
arrangements and extension of services in expanded areas beyond the municipal limits.
363. In terms of the tube wells, the production capacity at present is compatible with the
demands of the population within the current municipal boundary up until 2035, thus there is no
requirement to install new production facilities within the existing boundaries. However, there is a
need to rehabilitate non-functional tube wells and existing tube wells that are running inefficiently.
This includes the provision of new motor control units, disinfection facilities, bulk meters and
pressure gauges at each tubewell for better water management and control. In the first instance,
bulk meters and pressure gauges should be provided at each production facility to determine the
actual rate of production and its use. Moreover, the bulk meters may be provided in some
strategic locations on the distribution network for assessing the use patterns within the
distribution system. Provision of disinfection units in all tube well facilities is also a necessary
requirement.
364. Based on the analysis in the Sectoral Assessment presented previously in this Chapter,
the options are as follows;
 Eight non-functional tubewells to be replaced with new bores, tubewells, pumps and
associated machinery and pipe work.
 Rehabilitation of the 5 functional tube wells, which are running at about 30%-40%
efficiency.
 Repair and rehabilitation of all functional tube wells by replacement of motors, pumps or
assemblies and MCUs etc. for bringing production up to the level of the rated capacity.
 Provision of bulk meters and pressure gauges in all 52 tubewell facilities.
 Provision of disinfection units in all Tube well facilities or at OHRs.
 Provision of household meters in selected zones in the first instance.
 Provision of new Tube wells of total capacity around 10 cusecs in the settlements beyond
the municipal boundaries (Long term).
Surface Water
365. Due to the depletion of the groundwater table and the high pumping costs from the
tubewells, other options for a water source for Sahiwal such as rainwater harvesting and surface
water might need to be considered in the future. In addition to other counter-measures for
addressing the issue of depletion of ground water, there is the possibility of a surface water
source for water supply through the Lower Bari Doab Canal. It is the perennial irrigation water
distribution canal having a design discharge of 9841 cusecs, with 8600 cusecs present carrying
capacity in kharif season. The canal is passing across the city, and it is reported to be closed
once a year for a month, for de-silting purposes.
366. There is an option to convert the groundwater source to a surface water source by taking
raw water from the Lower Bari Doab Canal, and construction of an 18 MGD Rapid Sand Gravity
Filters Water Treatment Plant in the city with provision of expansion in future for catering
demands in 2035. This 18 MGD Water Treatment Plant will meet the demands up to 2020, and
the subsequent expansion by provision of additional filter beds and mechanical equipment will
serve the purposes compatible with 2035 demand. In this regard the identification of suitable land
for constructing the Water Treatment Plant may be undertaken and the space required for pre-
settling basins, clarifiers, flocculators etc. must be considered while identifying the suitable land
space for this purpose. However, consideration of the one-month shutdown of the canal must be
included in the design arrangements, with provision of suitable stand-by during this period
possible by maintaining the original groundwater system to operate during this period.
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367. Alternatively, a smaller surface water system of up to 9 MGD could be installed such that
water would be supplied partially by groundwater and partially by surface water. This would
reduce the demand on the groundwater and redress the water table depletion and at the same
time possibly make some saving on power costs (although there will be additional chemical costs
for the surface water treatment plant). But by retaining the tubewell operations, it will ensure the
tubewells are in operating conditions and can be pumped for additional hours during the one-
month closure of the LBDC Canal.
368. Based on above option the short term measures required is to undertake Ground Water
Study to examine the trend analysis of depletion before considering a surface water source.
Rainwater Harvesting
369. Another option for meeting water demands is rainwater harvesting. Since the annual
rainfall in Sahiwal is only about 200 mm per year and it experiences long dry periods every year,
the option of rainwater harvesting for reducing dependence on ground water is unlikely to have a
significant impact. However, rainwater harvesting is being practiced in Islamabad where the
average annual rainfall exceeds 1100 mm. If a household level project is considered, it will
require space to be available at the household for storage of rainwater. Moreover, roofs in most
households are generally flat and not always in good condition so often there is not a suitable
surface to harvest rainfall for potable use. It may be more feasible in areas such as Fareed
Town and Tariq Bin Ziad Colony, but in these high income areas people have installed their
domestic bores for emergency and surplus use of water, thus they will not need to go for rain
water harvesting. If there is a limited demand for rainwater harvesting, public money cannot be
invested in a project, which will be operated at the level of individual households. Thus for these
reasons, rainwater harvesting options do not seem viable in Sahiwal. At best an incentive
program might be considered whereby people would be provided with subsidies for installing a
rainwater harvesting facility since it would result in water conservation.
370. However, rainwater harvesting can play a significant role in ground water recharge, as
groundwater levels in Sahiwal are dropping and this raises the question as to (a) whether natural
groundwater recharge is decreasing and (b) whether some means is available to increase
groundwater recharge rates. The answer to the first question can be provided by carrying out a
study on the natural recharge of ground water. Sahiwal city is situated at a distance of about 18
miles from the left bank of Ravi, and a perennial canal of Lower Bari Doab Canal is passing
across the city, thus both these water bodies are supposed to be the source of recharge for
ground water. Flows in the Ravi are virtually non-existent, thus the recharge from the river is
likely to have reduced. Recharge from Lower Bari Doab Canal is likely to have been unchanged
on the grounds of its being unlined. However, only a detailed hydro geological study can illustrate
the trend analysis of natural ground water recharge in Sahiwal.
371. One option for increasing the rate of recharge will be to create storm water holding areas,
which will serve the dual purpose of attenuating peak storm flows and allowing recharge, but it
will be complex due to the limited space available in all areas of the city. Options for taking this
approach would appear to be best in open spaces lying near Jahaz Ground area in Sahiwal. It
does not appear to be viable for the areas where there is lack of open space. However, it should
be considered as an integral part of the design of any parks provided as part of the overall
planning approach. In addition, recharge tubewells can serve the purpose of recharging deep
aquifers or injection wells can be provided for recharge through percolation. Recharge through
abandoned dug wells can be another option and recharge trenches can be built where
permeable strata is available at shallow depths. However, converting from a ground water source
to a surface water source is the most suitable way to address the alarming scale of ground water
depletion.
372. Based on above option, the measures to be taken are as follows

 Undertake a Groundwater Study for examining the trend analysis of depletion.
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 Subject to the outcome of the study, consider utilising failed bores for recharge.
 Include ponds in development of open space area and parklands to act as
stormwater retention basins and also to provide additional aquifer recharge.
(ii) Storage Reservoirs
Rehabilitation of Existing Reservoirs
373. There are 12 OHRs within Sahiwal municipal limits in different areas of city. The existing
water supply system in Sahiwal comprises 13 zones. There are only 8 zones having OHRs and
also direct pumping within these zones to supplement pressure in the gravity supply. Total
storage capacity of the OHRs is 480,000 gallons. Out of 12 OHRs eight are functional and four
have been non-functional for a long period. Thus the functional storage capacity at present is
only 320,000 gallons. In this regard the rehabilitation of the 4 non-functional OHRs is the priority
investment. However, in the Ghala Mandi zone, there is only one OHR and that is not operational
because of some litigation issues with GhalaMandi Market Committee and can only be made
functional, provided the litigation matter is resolved. Otherwise a suitable site needs to be
identified for erection of a new OHR for GhalaMandiZone. The required storage capacity in
Ghala Mandi storage duration is such that two OHRs are needed, so a new site will need to be
identified in any case.
New Reservoirs
374. The analysis indicates that there is a requirement for additional reservoirs to provide for
storage capacity of at least 3 hours. These additional OHRs are required in a) areas where
already there are OHRs but storage capacity is less than 3 hours; b) areas or zones where there
is no OHR available i.e. the 5 zones where there is direct pumping into the distribution system;
and c) areas which are beyond the municipal limits but which may be incorporated into the
municipal limits by 2035.
375. Table VI-84 shows the additional requirement for OHRs in zones already having OHRs
but without the required storage capacity.
Table VI-84: Additional Storage Capacity Required in Existing Zones
Additional Flow
Projected
Storage Capacity requirements as Duration for
Zone population in
(gallons) per 33 gpcd storage (2035)
2035
required demand (gal/hr)
City Zone 100000 46385 63779 3 hrs
Jahaz Ground
80000 27018 37150 3 hrs
Zone
Tariq bin Ziad
10000 13199 18148 3 hrs
Colony
Bhutto Nagar,
Muslim bin Aqeel 15000 10105 13894 3 hrs
colony
GhalaMandi 55000 20624 28358 3 hrs
Small Industry 30000 14437 19850 3 hrs
376. Table VI-85 indicates the requirement for OHRs in zones that currently rely entirely on
direct pumping into the distribution system.
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Table VI-85: Additional Storage Requirement in Zones Relying on Direct Pumping

Storage Flow
Projected
Capacity requirements as Duration for
Zone population in
(gallons) per 33 gpcd storage (2035)
2035
required demand (gal/hr)
Bilal Colony 32000 7529 10352 3 hrs
InayatIllahi
40000 9707 13347 3 hrs
Colony
Shareef Colony 50000 11888 16346 3 hrs
FatehSher
110000 26548 36503 3 hrs
Colony
377. For peri-urban area outside the current city limits, which may be included in the city limits
by 2035, additional OHRs will be required as shown in Table VI-86. This is not a current priority,
but could be included in phases in the medium to long term.
Table VI-86: Storage Requirement in Peripheral Areas Outside Current City Limits
Zone Storage Projected Flow Duration for

Capacity population in requirements as storage (2035)
(gallons) 2035 @ 1.92% per 33 gpcd
Required growth rate demand (gal/hr)
89/6R,gunj shaker 90000 21437 29475 3 hrs
colony, M.S.Homes
Chak 93/6R 30000 6658 9155 3 hrs

Chak 86/6R, Pak 200000 45472 62524 3 hrs
Avenue Colony
Habib Town, 150000 34104 46893 3 hrs
KotKhadim Ali Shah
colony, Sultan
Town, Hussainabad
colony, Bashir Town
Manzoor Colony, 180000 42873 58950 3 hrs
Hussain Colony,
Shadab colony
Abubakar block
Chak-82/6R 90000 21437 29476 3 hrs
Chak-95/6R 60000 13641 18756 3 hrs
378. Based on the above, the interventions required are as follows;
Rehabilitation:
 Rehabilitation of 4 non-functional OHRs.
 Repair of all remaining 8 functional OHRs.
New OHRs:
 Based on above analysis the storage capacity required in total within the municipal
limits is 1 Million Gallons to meet the demand of 2035. This represents an additional
520,000 gallons in storage which is a priority investment.
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 Areas beyond the existing municipal limits have a requirement of 0.8 Million Gallons
storage capacity.
 Thus 800,000 Gallons of additional OHRs may be constructed in the peripheral areas
as a medium to long-term investment.
(iii) Water Distribution System
Replacement of existing defective pipelines
379. Following discussions with water supply staff of TMA, several locations were identified
where the pipe network condition is poor, resulting in excessive leakage and contamination with
sewage, through cross connections with damaged pipes when the system is not pressurised.
Due to this reason, in such areas people opted for domestic pumps in their houses and rejected
water supplied by the TMA that led to a reduction in the number of water connections. As a result
of domestic pumping by the bulk of the population in these areas, and due to the poor condition
of pipes, excessive unaccounted for water occurs during supply hours. Thus the replacement of
pipes in such areas is a priority investment to attract consumers and enhance the number of
connections with the quality of supply to the consumers as an objective.
380. In addition, the AC pipe proportion in entire network is 88.9 km out of total 153 km.
Although the condition of AC pipe is generally satisfactory, in long run the aim should be to
replace the entire AC pipe network with PE Pipe.
381. The following measures are required for the water distribution network;
 Replacement of defective water supply pipelines (Priority)
 Replacement of AC pipe network in phases (Medium Term)
Upgrading of under capacity mains
382. In Sahiwal the distribution network is of adequate size, thus there is no reason for
upgrading the sizes of the mains.
Expansion into unserved areas
383. This distribution network for Sahiwal is laid within the municipal limits of the city and
excludes the highly populated urban settlements beyond the municipal limits. The network
currently covers almost 100% of the population within the municipal limits and further expansion
into areas beyond the current municipal limits may be implemented in the medium to long term
as these areas become incorporated into the TMA/Municipal Corporation.
384. The measures required are as follows;
 Provision of new Distribution Network in settlements beyond the current Municipal

Limits. (Phased over the medium to long term)
Development of DMA Zones
385. There are clear health advantages in providing a continuously pressured water supply. A
continuous or near continuous supply is also more equitable as it ensures that poorer
households, without household storage tanks, have reasonable access to water.
386. The aim in Sahiwal should be to provide a continuous supply in as many areas as
possible, at the earliest possible time. Nevertheless, it will be difficult to ensure a 24/7 supply
while power cuts continue at the present rate with one hour of power being followed by one hour
without power. Given the high cost of increasing storage volume and pumping capacity to cater
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for this situation, the aim should be to ensure that 24/7 water supply can be maintained other
than when there are frequent power cuts. This assumes that the present poor electricity supply
situation will be improved in the future.
387. In first phase, two DMA zones in Sahiwal are proposed based on their potential as a pilot;
 Fareed Town
 Tariq Bin Ziad Colony conjunction with Muslim Bin Aqeel Colony
388. The rationale for selecting these areas as DMA zones is;
 Both areas are high income areas, thus less resistance to metered supply is
expected.
 Both areas have availability of adequate storage at present with few exceptions such
as in Tariq bin Ziad Colony, adequate pumping except in Tariq bin Ziad Colony, and
an adequate and relatively strong distribution network except in Tariq Bin Ziad
colony.
 Inadequacy of infrastructure in Tariq Bin Ziad colony is addressed in the above
sections of storage, distribution network and pumping.
389. Based on above information the following measures are proposed;

 Infrastructure Improvement in selected DMA zones in the first phase.
Household metering
390. Household metering is often opposed by water users. However, maximum benefits from
household metering is in high income areas and commercial areas where the water use is high
and cost recovery can be maximised. Metering should probably be less opposed in middle and
low income areas and probably it can be less opposed in middle income areas where the use
patterns are lower and thus the rate of recovery based on meters does not much affect the water
users. When considering household meter provision, the replacement of house connections must
be considered. In a first instance the household metering may be introduced in proposed DMA
zones for obtaining best possible benefits.
391. The following measures are proposed for household metering;

 Household meters for DMA Zones
 Household Connections for DMA Zones
Sewerage and Drainage
(i) Collection System
Replacement of existing defective pipelines
392. Sewerage collection system requires sewer replacements in areas where leakages or
settlement of the sewer line is reported. These areas of sewer replacement are shown in Table
VI-87.
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Table VI-87: Proposed Sewer Replacement Requirements
Sr. No From to Dia Length (Km)

1 Jogi Town Mission Hospital 24" 1.5
2 MazdoorPulli Dr Daud Chowk 18" 1
3 Ghausia Colony 9" 1.66
4 New Mohalla Fareed Gunj 9" 2.36
Muslim bin Aqeel Colony
5 9" 6.35
&Labour Colony
393. Based on above information following measures are required;
 Replacement of sewer pipes as shown in Table 6.5. (Priority)

 Rehabilitation of main disposal stations. (Priority)
 Rehabilitation of minor disposal stations. (Priority)
 Provision of conveyance system for diverting the sewage of minor disposal Stations into
major disposal stations. (Medium Term)
 Abandonment of minor disposal stations (Medium Term)
 Replacement of delivery lines of main disposal stations. (Priority)
Upgrading of under capacity sewers
394. Sewer sizes in Sahiwal are appropriate and do not need upgrading.
Expansion into unserved areas
395. The sewer networks in urban settlements beyond the municipal limits exist and have
been developed by real estate developers and builders. The suitability of these sewer networks
will require thorough assessment by the TMA/Municipal Corporation before accepting them as
part of their network while taking over their services. After this assessment, the extent of
necessary sewer network expansion required in those areas can be determined.

396. Two options have been considered for wastewater treatment;
Option 1 - A decentralised approach whereby the minor disposal stations are either
abandoned or converted into pumping stations and all wastewater is conveyed to the four
main disposal stations – Fareed Town, Manzoor Colony, 89/6R and Kacha Pacca Noor
Shah. Wastewater is then treated at these locations from where treated effluent is
discharged to the water bodies.
Option 2 – A centralised approach whereby all sewage is conveyed via trunk sewers or
pumping mains to a centralised treatment plant located outside the current city limits.
(i) Option 1 Analysis
397. Due to the space available at the disposal stations, the analysis of a suitable treatment
process was limited to the following options:
 Primary treatment or chemically assisted primary treatment

 Secondary treatment comprising Upflow Anaerobic Sludge Blanket (UASB) followed
by trickling filters
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 Secondary treatment comprising aerobic Sequencing Batch Reactors (SBR)
398. There are numerous other secondary treatment processes that could be considered, but
these are representative of the available options in terms of effluent quality and space
requirements. The inflow into each of the four main disposal stations, assuming that the minor
stations are re-configured to convey wastewater to the major stations, is shown in Table VI-88
for 2015 and 2035. Although coverage of the sewerage system is relatively high, it is estimated
that presently sewage of less than 60% of the population reaches the disposal stations through
the sewerage system.
Table VI-88: Projected inflows and BOD Loading to Major Disposal Stations
Disposal Station Average Dry Weather Flow BOD Loading (tonnes/day)
(MGD)
Current 2015 (full 2035 Current 2015 (full 2035
Inflow coverage) Inflow coverage)
89/6R 0.84 1.73 2.53 1.36 2.81 4.12
Fareed Town 3.50 5.77 8.46 5.69 9.38 13.76
Manzoor Colony 2.01 3.48 5.11 3.26 5.67 8.30
KachaPacca Noor 1.40 4.35 6.38 2.27 7.08 10.38
Shah
399. The area available at each of the four main disposal stations and the area required for
the primary/secondary treatment processes mentioned above is indicated below in Table VI-89.
The area available assumes that the existing disposal station infrastructure would be dismantled
and the entire site is available for constructing a treatment plant
Table VI-89: Area Requirements for Wastewater Treatment Facility

Disposal Area Area Required for Treatment Facility (ha)
Station Available Primary (CAS) Secondary Secondary (SBR)
(ha) (UASB-TF)
Current 2035 Current 2035 Current 2035
Inflow Inflow
89/6R 0.20 0.09 0.25 0.18 0.53 0.15 0.42
Fareed Town 1.0 0.34 0.84 0.71 1.76 0.60 1.5
Manzoor Colony 0.22 0.19 0.51 0.40 1.06 0.35 0.95
KachaPacca 0.17 0.15 0.63 0.31 1.33 0.25 1.15
Noor Shah
400. Table VI-85 indicates that there is sufficient space at the 89/6R and Fareed Town
Disposal Stations for a primary treatment plant to cater for inflows almost up until 2035 and for a
secondary treatment plant for the current inflow only.
401. The Manzoor Colony and Kacha Pacca Noor Shah Disposal Station have sufficient
space for a primary treatment facility for the current inflow but only in the short term. There is
insufficient space at either of these locations for a secondary treatment plant even with the
current inflows.
402. Option 1 would therefore include the replacement of the existing disposal station at each
of the four locations and the installation of a primary treatment plant. This may be capable of
treating wastewater to a primary level for the next 5-10 years after which an appropriate site
would need to be established for secondary treatment.
403. Conventional primary treatment can remove between 25-40% BOD and 50-70%
suspended solids. If chemicals are used to enhance primary treatment, often termed Chemical
Assisted Sedimentation (CAS), BOD removal can range from 40-70%, and suspended solids
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removal between 60-90%. However, the major cost of a primary treatment plant lies in the solids
management. This increases when Chemically Assisted Sedimentation is used. These rates of
removal, especially for CAS, would approach the current Pakistan discharge standard of 80 mg/L
BOD and 200 mg/L suspended solids.
404. Treatment plants along the East Coast of Australia have been upgraded to CAS or
advanced primary, and employ the use of iron salts for this purpose. An advanced primary
treatment plant using iron salts will produce 2 to 3 times more solids than conventional primary
treatment. This can be reduced by using alum instead of iron. In this case the solids still increase
but by only 1.5 to 2 times over the conventional primary treatment.
405. Primary treatment would involve installation of penstocks, mechanical screens, vortex grit
removal facilities, primary sedimentation, separate solids thickening, solids dewatering,
stabilization with lime and possibly a plant-wide odor control system. Bio solids would be treated
with lime, trucked away and possibly applied to farming land.
406. The estimated cost of providing a CAS plant at each of the four disposal sites to treat
wastewater inflows for up to the next 5 years is indicated on Table VI-90.
Table VI-90: Estimated Cost for CAS Installations

Location ADWF Capacity Cost (USD mill)
(MGD)
89/6R 1.20 1.45
Fareed Town 4.00 4.75
Manzoor Colony 2.50 3.00
KachaPacca Noor Shah 2.00 2.35
(ii) Option 2 Analysis
407. Option 2 represents the long term solution to wastewater treatment issues in Sahiwal.
This would involve the construction of a centralised treatment facility to the west of the city with
trunk sewers or rising mains conveying wastewater from the Disposal Stations to a location yet to
be determined. Since a site has not yet been proposed by the TMA, details of this option cannot
be completed at this point in time. However, some basic parameters of the treatment
requirements are outlined below. The assumption at present is that one treatment plant would be
developed. However, it would be possible to provide more than one treatment plant if that was a
more economical solution or if one piece of land of suitable area was not available.
408. The required treatment plant capacities are as shown in Table VI-91. The plants shall be
designed to accept 2 times ADWF, with the balance being overflowed subject to the dilution
requirements required by the Pakistan effluent discharge standards being met. It is assumed that
by 2025, flows from the peripheral areas will be directed towards the treatment plant.
Table VI-91: Treatment Plant Loadings for Sahiwal

ADWF (MGD) Design Flow (MGD) BOD Loading (tonnes/day)
2015 2025 2035 2015 2025 2035 2015 2025 2035
15.0 20.0 27.2 30.0 40.0 54.4 23.5 30.5 43.6
409. The plant could be constructed in two stages – initially a 20 MGD plant to meet 3015
flows, which will be later expanded to a 27 MGD plant.
410. Several treatment process options were considered as follows that could be adopted for
the Sahiwal situation:
Alternative No. 1: Combined covered anaerobic lagoon-aerobic lagoon treatment system
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411. The cover prevents odours and allows biogas collection in the anaerobic lagoon and both
are easy to operate and maintain but the land take is large.
Alternative No. 2: Combined facultative lagoon-aerobic lagoon treatment system
412. This alternative gets rid of the geo-polymer membrane needed for the cover, still retains
the ease in operations and maintenance but the land take is still large.
Alternative No. 3: Combined UASB-aerobic lagoon treatment system
413. This alternative employs the UASB as the chief ‘carbon scrubber’ to remove BOD. There
are few moving parts (apart from the sludge and scum pumps) and biogas is produced and
captured. The UASB, being an intensive system, is more difficult to operate and maintain and
operators need proper training.
Alternative No. 4: Combined UASB-trickling filter treatment system
414. Trickling filters have generally been used after primary sedimentation processes but
there would be only minor differences between using primary sedimentation or an UASB as pre -
treatment to a trickling filter. UASB-TF, Alt. No. 4 would have a smaller footprint than the UASB-
lagoon, Alt. No. 3 design, but still would be less complicated and less expensive to operate than
if an activated sludge system were used after the UASB.
Alternative No. 5: Combined UASB-MBBR treatment system
415. This system would be the ultimate small footprint treatment plant. The combination is
ideal when little space is available. The biogas from the UASB could also potentially supply most
of the energy for the aerobic process. The process would require trained operators and
instrumentation to monitor the dissolved oxygen in the Moving Bed Biofilm Reactor (MBBR).
There would be external blowers and the MBBR would be filled with about 60% plastic, fluidised
packing.
Alternative No. 6: Combined UASB-Sequencing Batch Reactor
416. This system also has a small footprint and is a common approach to activated sludge
treatment. It can handle influents of various volumes and qualities and produces sludge with
good settling characteristics. However, it does require good control systems and skilled
operations as it operates under non steady state conditions and the various operational
sequences need to be adequately controlled
417. Each system has its own attributes that would make them viable in the Pakistan context
as shown in Table VI-92.
Table VI-92: Attributes of Different Treatment Processes

Attribute Anaerobic- Facultative- UASB- UASB- UASB-SBR
aerobic Aerobic Aerobic Trickling UASB
lagoon lagoon Lagoon Filter MBBR
Land-Take Large Large Medium Small- Small
Medium
Operational Simple Simple Medium Medium- Complicated
Complexity Complicated
System Design Simple Simple Medium Medium- Complicated
Complicated
Maintenance Small Small Small Medium Large
Requirements
BIo solids Small Small Small Small Medium-
Production Large
Greenhouse gas Small- Large Small- Small- Medium-
production Medium Medium Medium Large
Potential Odour Small Medium- Medium Medium Medium
Large
Effluent Quality Variable Variable Good Good Excellent
Page 308
418. The land take for each of the alternative processes is shown below on Table VI-93 based
on the inflows and BOD loading shown in Table VI-91 are as follows:
Table VI-93: Land Take for Different Treatment Processes

Treatment Process Land Take (ha)
Stage 1 (20 MGD) Stage 2 (27 MGD)
Anaerobic-aerobic lagoon 52 65
Facultative-Aerobic lagoon 40 50
UASB-Aerobic Lagoon 25 31
UASB-Trickling Filter 3.9 4.6
UASB-SBR 2.8 3.5
UASB MBBR 2.5 3.1
419. The selection of a preferred process is essentially site specific. Anaerobic systems can
often be costlier to build initially and will need an aerobic process to polish up their effluent.
However, lower operating costs, and the possibility that the methane can be used for power
generation, often gives advantage to anaerobic systems after the higher capital costs have been
neutralised by the lower operating costs and power generation. Costs for the lagoon options
have not been included at this stage since it is assumed that the required area will not be made
available within a reasonably close vicinity of Sahiwal.
420. The estimated cost of treatment facilities with these technologies is as follows:
Treatment Process Cost (USD mill)

Stage 1 (20 MGD) Stage 2 (7 MGD
expansion to 27 MGD)
UASB-Trickling Filter 13.0 6.0
UASB-SBR 15.0 6.8
UASB MBBR 16.0 7.3
421. While the SBR and MBBR processes have less land take and provide high quality
effluent, both have higher operating costs and involve large mechanical components requiring
high maintenance. The UASB trickling filter alternative is therefore proposed for Sialkot. The
effluent produced will be well within the current Pakistan discharge standards.
FF. Medium Term Infrastructure Investment Plan

422. Based on the above proposals, the Medium Term Infrastructure Investment Plan is
shown in Table VI-94.
Table VI-94 - MTIIP for Water Supply, Sewerage and Drainage

MTIIP for Water Supply, Sewerage and Drainage
Estimated Expenditure (in Estimated Expenditure
USD) (In PKR)
Medium Long Medium Long
Projects and Sub Projects Term Term Total Term term Total
Water Supply
Production
Provision & Installation of 8 New bores,
Pump sets, Motors, Pump Houses,
0.77 0.77 77.7 77.7
Electrical Accessories etc. Tube wells in
place of 8 Non-functional Tube wells
Rehabilitation of 5 functional Tube wells
0.19 0.19 19 19
which are inefficient in production, by
Page 309

USD) (In PKR)
provision of new pump sets, motor, and
MCUs
Repair and Refurbishment of 14
remaining functional Tube wells to
strengthen the production rate, involving 0.08 0.08 8.4 8.4
rewiring of motors and modifications in
pumps etc., and Provision of new MCUs.
Improving the efficiency of 60%
tubewells after energy audit (VFDs, PFIs,
0.19 0.19 19 19
hour meters, Non return valves, air
release valves, gate valves)
Civil Repair of 14 Pump houses poor in
condition including plastering, white 0.004 0.004 0.4 0.4
wash etc.
Provision of disinfection units in all
0.04 0.04 4 4
Production Facilities
Provision of Bulk Meters and pressure
0.15 0.15 15 15
gauges in all production facilities
Provision of 7 New Tube wells of total
capacity 10 cusecs for peripheral built-up
areas, involving Boring, Motors & Pumps
0.7 0.7 70 70
& Electrical Accessories with Provision of
Bulk Meters and Pressure Gauges and
disinfection unit etc.
Storage
Rehabilitation of 3 non-functional OHRs
of 130,000 gallon capacity, including
replacement of filling pipes, distribution
0.15 0.15 15 15
main pipes and overflow pipes,
replacement of valves and civil repairs
etc.
Repair of all remaining 9 OHRs,
including replacement of valves & pipe 0.085 0.085 8.5 8.5
sections and civil repairs etc.
Provision of 510000 Gallons additional
new OHRs to serve within Municipal 1.02 1.02 102 102
Boundaries (priority)
Provision of 800000 Gallons new OHRs
to serve areas beyond existing Municipal 1.6 1.6 160 160
Limits
Distribution
Replacement of defective water supply
pipelines of 12”dia of 0.46 Km length 0.04 0.04 4 4
(Using P.E Pipes)
pipelines of 10”dia of 0.86 Km length 0.045 0.045 4.55 4.55
(Using P.E Pipes)
pipelines of 8”dia of 1.56 Km length 0.054 0.054 5.4 5.4
(Using P.E Pipes)
0.25 0.25 25 25
pipelines of 6”dia of 11 Km length (Using
Page 310

USD) (In PKR)
P.E Pipes)
pipelines of 4”dia of 2 Km length (Using 0.022 0.022 2.22 2.22
P.E Pipes)
pipelines of 3”dia of 38 Km length (Using 0.25 0.25 25 25
P.E Pipes)
Replacement of remaining AC pipe
0.43 0.43 43 43
network of length 24 Km in phases
Provision of new Distribution Network in
1.165 1.165 116.5 116.5
peripheral settlements
1.4. Development of DNI Zones and
NRW program (Two selected zones)-
7000 hh
1.4.1. DMA-1-Fareed Town- 5000 HH
Provision of 5000 Household meters &
0.52 0.52 52 52
Household connections
Provision of valves & PRV for DMA
0.6 0.6 60 60
networks
Replacement of AC Pipe network 47 Km 0.84 0.84 84 84
1.4.2. DMA-2-Tariq Bin Ziyad Colony
cum Muslim bin Aqeel Colony- 2000 HH
Provision of 2000 Household meters &
0.21 0.21 21 21
Household connections
Provision of valves & PRV for DMA
0.4 0.4 40 40
networks
Replacement of damaged pipes 12 Km 0.1 0.1 10 10
Construction of 1 OHR (10000 gallons
capacity),and pipe Alterations 0.03 0.03 3 3
1.4.3. Development of DNI Zones and

NRW program (12 remaining zones)
Provision & Installation of 51000
5.30 5.30 530.4 530.4
Household meters & connections
Provision of valves for future DMA
5 5 500 500
networks
1-Sub Total (Water) 6.47 13.76 20.23 647.5 1376 2023
Sewerage and Treatment
Sewerage Network Improvement
Replacement of sewer pipes of dia 24
0.07 0.07 7 7
inch of 1 Km Length
0.025 0.025 2.5 2.5
inch of 0.5 Km Length
0.113 0.113 11.3 11.3
inch of 11 Km Length
Sewage Disposal and Treatment
Rehabilitation of Disposal Stations (4.
2.44 2.44 244 244
Main Disposal Stations)
Improvement & renovation of minor
disposal stations 6 in numbers including
0.05 0.05 5.12 5.12
Provision of new Pump, Motors & MCUs
and civil repair of rooms, as a standby
Page 311

USD) (In PKR)
setup for emergency
Provision of conveyance system for
diverting the sewage of Minor Disposal
0.59 0.59 59 59
Stations into Major Disposal Stations.
(Abandoning of Minor D/S)
Trunk Mains from PS to WWTP 3.50 3.50 3500 3500
Provision of centralized waste water
12.50 7.5 20.00 1250 750 2000
treatment plant
Cost of land for centralized WWTP 0.7 0.7 700 70
2-Sub Total (Sewerage and Drainage) 19.99 7.5 27.49 1999 750 2749
Operation and Maintenance facilities,
Tools and Equipment
Provision of Sucker/Jetting Machines two
0.215 0.215 21.5 21.5
in number (one small & one large)
Provision of Dewatering sets 10 in no. 0.02 0.02 2.2 2.2
Provision of Health & Safety Equipment
0.015 0.015 1.5 1.5
for sewerage staff
Workshops, Stores, GPS devices, pickup
0.5 0.5 50 50
and Motorbikes
Provision of Dumper Truck for logistics 0.045 0.045 4.5 4.5
Office space (45000 sq.ft) and systems
0.6 0.6 60 60
and equipment
Provision of leakage detection devices 0.065 0.065 6.5 6.5
SCADA system 0.5 0.5 50 50
3 -Sub total (Facilities, Tools &
Equipment) 1.96 1.96 196 196
4- (O&M Cost) 2.14 2.75 275 275
Grand Total 1+2+3+4 30.56 21.26 51.82 3056 2126 5182
Pre-Feasibility Study for Medium Term Investments

423. The MTIIP shown in this Chapter requires an investment of USD $29.54 million to be
undertaken for water supply and sewerage in Sahiwal in the medium term. The proposed
components of the investment are as follows:
Component 1 – Water Supply Infrastructure
1.1 Rehabilitation of Production Facilities

1.2 Rehabilitation and Provision of New Storage Facilities
1.3 Rehabilitation of Water Distribution System
1.4 Development of DNI Zones and NRW Reduction
Component 2 – Sewerage and Drainage Infrastructure
2.1 Sewerage Network Improvement

2.2 Construction of Sewage Treatment Plants
Component 3 – Operation and Maintenance Facilities and Equipment
Page 312
GG. Component 1 – Water Supply Infrastructure
Component 1.1 - Rehabilitation of Production Facilities
424. The objective of this sub-component is to restore the 52 tubewells to their original design
rating such that a total capacity of 62.5 cusecs can be achieved. In addition, chlorination facilities
need to be provided at all tubewells to ensure sufficient water quality is provided to consumers.
The outcome of this sub-component is that the 52 tubewells will be able to provide sufficient
water to meet 2035 water demands within the existing service area. Instrumentation and valving
will be in place to enable central control of the production facilities resulting in more efficient
operation and cost savings. Figure VI-95 shows the location of the tubewells requiring
replacement and major rehabilitation. The rehabilitation works required at the 52 tubewells within
the existing service area is as follows:
 Eight non-functional tubewells to be replaced with new bores, tubewells, pumps and
associated machinery and pipe work.
 Rehabilitation of the 5 functional tube wells, which are running at about 30%-40%
efficiency.
 Repair and rehabilitation of all functional tube wells by replacement of motors, pumps or
assemblies and MCUs etc. for bringing production up to the level of the rated capacity.
 Provision of bulk meters and pressure gauges in all 52 tubewell facilities.
 Provision of disinfection units in all Tube well facilities or at OHRs.
 Provision of household meters in selected zones in the first instance.
Figure VI-95: Tube Wells Rehabilitation
Page 313
425. A further survey is being undertaken of all tube wells supplying water to Sahiwal City.
This may result in some modifications to the above proposed works. The total cost of these
rehabilitation works is estimated to be USD $ 1,420,000.
Component 1.2 – Rehabilitation and Provision of Storage Reservoirs
426. The objective of this component is to provide 3 hours’ storage in all zones of the
distribution system of the water distribution system to allow for diurnal variations in water demand
and provide some security during load shedding periods. This will provide for more efficient
operation of the distribution system and reduced pumping costs by eliminating direct pumping
into the distribution system. The works to be undertaken under this component are
 Rehabilitation of 3 non-functional OHRs of 130,000-gallon capacity, including

replacement of filling pipes, distribution main pipes and overflow pipes, replacement of
valves and civil repairs. The three reservoirs to be rehabilitated are Tariq bin Ziyad
Colony, Scheme 2 Farid Town and Ghali Mandi.
 Repair of all remaining 9 OHRs, including replacement of valves & pipe sections and civil
repairs.
 Provision of 520,000 Gallons additional new OHRs as shown in Table VI-96.
Table VI-96: New Overhead Reservoirs to be Constructed

Zone Additional Storage Capacity
(gallons) required
City Zone 100000
Jahaz Ground Zone 80000
Tariq bin Ziad Colony 10000
Bhutto Nagar, Muslim bin 15000
Aqeel colony
GhalaMandi 55000
Small Industry 30000
Bilal Colony 32000
InayatIllahi Colony 40000
Shareef Colony 50000
FatehSher Colony 110000
Total 520,000
427. The cost estimate for this component is USD 1.26 million. Note that the cost of
constructing the 10,000-gallon storage in Tariq bin Ziad Colony is included in Component 1.4 –
Development of DNI Zones.
Component 1.3 – Rehabilitation of Water Distribution System
428. The objective of this component is to replace the damaged/rusted pipes that are resulting
in excess leakage as well as all asbestos cement pipes, which are now considered as a health
hazard. This will improve service delivery through maintaining adequate pressures, reducing
water losses and the risk of contamination from sewage and sullage when the pipes are not
pressurised. The reduction in water losses resulting from an improved condition of the piped
network will reduce the stress on the aquifer that has resulted in lowering of the water table
through reducing the quantity of water being abstracted from the tube wells.
429. A total of approximately 54 km of pipeline needs to be replaces as shown in Table VI-96
Page 314
Table VI-96: Priority Areas for Replacement of Water Supply Pipelines

Material Length Streets
S.No Area From to via Dia
(Existing) (km)
Sirki Thana Sirki
1 12" AC 0.46
Road Road Road
Pir Pir
Sirki Sirki 20 streets of
2 Bukhari Bukhari 6",3” AC, PVC 0.4 , 4.6
Road Road Pir Bukhari
Road main
Sirki Thana Jamia Police
3 8" C.I 0.32
Road Road Rashidia Station
LakkarM
Jamia
Sirki JamiaRas andi
4 6",3” AC,PVC 0.5, 1 Rashidia road
Road hidia Gau
streets
Shala
Entire
3",6"1 PVC,AC,A 1,0.61,0.
5 Rajpura Rajpura
0" C 46
Mohalla
Dr
Dispens Sirki Ghausia
Dispensar Naseer 8",10", AC, AC,
6 ary Road 0.5,0.4,6 colony/People
y Road Wala 3" PVC
Road Junction s colony
Chowk
Main
GhalaM
7 Masjid 3" AC 3
andi
Qasim
TMA College Mission
8 City 6" C.I 1.75
Signal Chowk Chowk
Faridia
TMA Karbala Karbala road
9 City Park 6", 3" AC 2,7.6
Tank Road streets
Chowk
TMA 5 ways Metanti Metanti road
10 City 6", 3" C.I 0.79, 3
Signal chowk Road streets
AC, 0.74,
Bhutto 8”,6”,6
11 AC,PVC,P 0.43, 1.5, Entire
Nagar ”,3”
VC 3
Shareef
12 6”,3” PVC,PVC 0.68, 1.2 Entire
Colony
Wapda
13 6” PVC 1.12 Entire
Colony
Muslim
Tariq bin
T.B Ziad Bin 6",4”,3 AC,AC,PV 1.4, 2,
14 Ziad
OHR Aqeel " C 8.2
Colony
Colony
430. All 88.9 km of asbestos cement pipe will be replaced. This includes 24 km of asbestos
cement pipeline that is still in good condition.
431. The cost of rehabilitation of the distribution network under this sub-component is USD
1.09 million. This does not include an additional 57 km of pipeline (including 47 km of AC pipe in
Fareed Town) that is estimated to be replaced under Component 1.4 – Development of DNI
Zones.
Page 315
Component 1.4 – Development of DNI Zones and NRW Reduction
432. The objective of this component is to establish potential DMA zones throughout the
existing water supply service area and then implement an NRW program in two pilot zones with
the aim of reducing losses and providing a 24/7 supply within those zones. The two DMA zones
proposed as pilots are (i) Fareed Town (5000 households); and (ii) Tariq Bin Ziad Colony
conjunction with Muslim Bin Aqeel Colony (2000 households). These proposed pilot zones are
shown in Figure VI-97. Provision of a 24/7 water supply result in a vastly improved service to
consumers than is presently available, will eliminate the risk of contamination from sewage and
sullage that occurs when the system is not pressurised during intermittent supply periods, will
encourage consumers to connect and pay for the improved service, and through reducing water
losses will result in less pumping and therefore address the lowering of the water table.
433. Interventions under this component are as follows:
DMA-1 – Fareed Town
(i) Provision of 5000 Household meters and Household connections

(ii) Provision of valves & PRV for DMA networks
(iii) Replacement of 47 km of AC Pipe network
DMA-2 -Tariq Bin Ziyad Colony/Muslim bin Aqeel Colony
(i) Provision of 2000 Household meters & Household connections

(ii) Provision of valves & PRV for DMA networks
(iii) Replacement of 12 km of damaged pipes 12 Km
(iv) Construction of 1 OHR (10000 gallons’ capacity and associated pipework
434. The estimated cost of this component is USD 2.70 million

Figure VI-97: Proposed Pilot DMA Zones
Page 316
FF. Component 2- Sewerage and Drainage Infrastructure

Component 2.1 – Sewerage Network Improvement
435. The sewerage collection system requires sewer replacements in areas where leakages
or settlement of the sewer line has been experienced. These areas of sewer replacement are
shown in Table VI-98.
Table VI-98: Proposed Sewer Replacement Requirements
Length
S.No From to Dia
(Km)
1 Jogi Town Mission Hospital 24" 1.5
2 MazdoorPulli Dr Daud Chowk 18" 1
3 Ghausia Colony 9" 1.66
4 New Mohalla Fareed Gunj 9" 2.36
Muslim bin Aqeel Colony
5 9" 6.35
&Labour Colony
436. The total cost of these sewer replacements is USD 210,000. Details of the sewers to be
replaced are shown in Figure VI-99.
Figure VI-99: Proposed Sewer Replacements
Component 2.2 – Rehabilitation of Sewage Disposal Stations
437. The four major disposal stations, 89/6R, Fareed Town, Manzoor Colony and Kacha Pacca
Noor Shah will be converted into pumping stations and sewage conveyed through trunk mains to a
centralized wastewater treatment plant (See Figure VI-101). The capacity of the new pumping
Page 317
stations and schematic diagram of the proposed Fareed Town and Manzoor Colony Pumping Stations
is shown in Table VI-100 and Figures VI-101 and VI-102 respectively below.
Table VI-100: Projected inflows to Major Disposal Stations

Disposal Average Dry Weather Flow (MGD)
Station Current 2015 (full 2035
Inflow coverage)
89/6R 0.84 1.73 2.53
Fareed Town 3.50 5.77 8.46
Manzoor Colony 2.01 3.48 5.11
KachaPacca 1.40 4.35 6.38
Noor Shah
438. The estimated cost of conversion of the four main Disposal Stations to Pumping Stations is
USD 2.44 million.
439. The six minor Disposal Stations will be rehabilitated to act as overflows in case of emergency,
but will be taken out of service for normal operation. The sewerage conveyance system will be
modified to enable sewage to flow to the four main Disposal Stations (Pumping Stations) and only in
emergencies flow to the minor Disposal Stations. The estimated cost of these modifications is USD
640,000.
Component 2.3 – Construction of Sewage Treatment Plant and Trunk Mains
440. It is proposed in the medium term to construct one treatment plant to the south-west of
the service area at to where sewage from the existing town boundary will be conveyed. The
existing disposal stations will be converted into pumping stations to pump sewage from the
collection system into the trunk mains conveying sewage to the treatment facilities. A proposed
location for the treatment plant and details of the trunk mains are shown in Figure VI-101 and
Figure VI-102. The required treatment plant capacities and loadings are as shown in Table VI-
100. The plants shall be designed to accept 2*ADWF, with the balance being overflowed subject
to the dilution requirements required by the Pakistan effluent discharge standards being met.
441. The treatment plant will be designed with a capacity of 20 MGD (ADWF) with a proposed
future expansion to 27 MGD. Several alternative processes have been considered as discussed
in this Chapter and elsewhere in this Report and a combination of UASB and trickling filter
process has been recommended. A schematic of this process is shown in Figure VI-103.
442. The estimated cost for the Stage 1 wastewater treatment plant is USD 16.0 million,
including the trunk sewers. The cost of the land is estimated at USD 0.7 million.
Page 318
Figure VI-101 – Proposed Wastewater Treatment Plant Site
Page 319
Figure VI-102 – Proposed Trunk Sewers and Wastewater Treatment Plant Location 1
Page 320
Figure VI-103 – UASB- Trickling Filter Process Diagram
ALTERNATIVE 4: UASB REACTOR-TF TREATMENT PROCESS M FLARE
M Biogas
Kota
Possible Grinder Pump
M Optional Dome for
FLOW Odour Control
TRUCK OFFLOAD Odour
CHAMBER
BALANCE Control
(FOR UASBRs)
OVERFLOW Poss. Sludge Optional Forced Air M
WEIR NaOH M Outlets
M Treated WW to
M M CLARIFIER OR HUMUS TANK Discharge
Domestic Sludge Influent 4
Feed M
WW GRIT Blanket Pipes Air 4
REMOVAL
Optional TRICKLING FILTER Cl2 DISINFECTION

BAR SCREENS Pump
UASB REACTOR M
Water Recycle
Digested Sludge Lines

M Sludge Recycle M Pump Well
Waste Solids
Screenings & To Dewatering

Flows > 2xADWF Grit
Sludge Tank
Page 321
Figure VI-104: Typical Layout of Sahiwal Wastewater Treatment Plant
GG. Component 3 – Operation and Maintenance Facilities and

Equipment
443. For long term operation and maintenance of the infrastructure to improve the water
supply, sewerage and drainage services, additional resources will be required. TMA has acquired
certain machinery and equipment recently especially for the maintenance of the sewerage
system, however keeping in view the volume of services, expected extension and expansion of
services and innovative technologies being proposed, additional resources will be required. The
additional resource requirement was identified in consultation with TMA Sialkot including
workshops, stores space and equipment/machinery requirements, control room equipment for
surveillance, safety equipment, equipment and machinery for maintenance of sewers and the
water supply system etc. A detailed breakdown of operational resource requirement is presented
in Table VI 101.
444. Supervisory Control and Data Acquisition (SCADA) will be installed to facilitate more
efficient water supply system operation. It will allow automatic operation of tube well pumping
stations based on the reservoir levels and system pressure. It will enable real time measurement
of flows and pressures throughout the system, and will enable accurate assessment of water
losses. SCADA is essentially a real-time industrial process control system used to centrally
monitor and/or control remote or local industrial equipment such as valves, pumps, sensors, etc.
133. SCADA is a combination of telemetry and data acquisition, which will perform the
functions of (i) data acquisition; (ii) networked data communication; and (iii) data presentation.
This will be enabled by the following SCADA components:
 Sensors (either digital or analogue) and control relays that directly interface with
the managed system.
Page 322
 Remote telemetry units (RTUs). These are small computerized units deployed in the
field at specific sites and locations. RTUs serve as local collection points for gathering
reports from sensors and delivering commands to control relays.
 SCADA master unit. This is a larger computer console that serves as the central
processor for the SCADA system. Master unit provides a human interface to the
system.
 The communication network that connects the SCADA master unit to the RTUs in
the field.
134. This is illustrated in Figure VI-105 below.
Figure VI-105: SCADA System Schematic
GPRS
Remote Terminal
Unit (RTU)
Flow meter
or Sensor
GPRS
SCADA Master Unit

Remote Terminal
Unit (RTU)
Flow meter
or Sensor
Table VI-106: Operation and Maintenance Facilities and Equipment Requirements
Amount
S. No Description of Job Qty Unit
($)
Sucker/Jetting Machine & Dewatering Sets & Misc. Items
Provision of Combined Sucker/Jetting Machine of
1 1 Item 150,000
8000 Ltr Capacity
2 Provision of Sucker Machine of 4000 Ltr Capacity 1 Item 65,000
3 Provision of Dewatering sets of 1 & 2 cusecs 10 Item 22,000
4 Provision of Dumper Truck for Logistics 1 Item 45,000
Provision of Health Safety equipment for Waste
5 Misc. Misc 15,000
Water/Water Sector Staff
6 Workshops, Stores, pickup and Motorbikes L.S L.S 499,000
Office space (45000 sq.ft) and systems and
7 L.S L.S 600,000
equipment
8 Provision of leakage detection devices L.S L.S 65,000
9 SCADA system L.S L.S 500,000
10 Provision of GPS devices 2 Item 1,000
Total (Short term Investment) 1,962,000
Page 323
Land Acquisition and Resettlement Issues for Proposed Wastewater Treatment Plant Site
(i) Treatment Plant Site
445. The proposed treatment plant site comprises 4.7 ha of which 2.0 ha is on government
land adjacent to the canal with the remaining 2.7 ha on private land. The private land has impact
on agricultural land, has one tube well, one farmhouse and 15 wood trees. It was assessed by
the PFS team that presently the land is used for agriculture and owned by 8 families. While it is
agricultural land, it has commercial value due to its location in the vicinity of Sahiwal city. There is
an issue that the land is not transferred to the legal owners (of the same family), as in the past it
was for sale but some of the owners went to court and the transfer was not affected.
446. The tube-well belongs to four potential DPs (Displaced Persons) and is used for irrigation
purposes. Moreover, the farmhouse is owned by two potential DPs and usually the people keep
cattle on the property. Five (5) families have their sole income from the farming while three (3)
households have the alternate sources of income such as from alternate land and working in the
private sector.
447. During consultation, people shared their views, which are discussed below.
 People are reluctant to sell their land, as they intend to keep it for commercial
purposes;
 They showed the apprehension that the market land rate will not be provided to them,
as the government always provides a lower amount.
 The prevailing market rate is Rs.10,000,000/acre and the Government may not
compensate them accordingly.
 The project is likely to have negative impacts on the surrounding areas as a result of
bad odors, and eventually their life will become more miserable. The project should
be launched away from the population centers.
 The government should buy the land situated towards the north side that belongs to a
single person.
 Since the land is not transferred to the names of legal owners, they may go to court
for a stay order.
(ii) Land Acquisition, Resettlement and Rehabilitation Costs
448. The cost of land acquisition and resettlement was worked out based on the replacement
cost of the affected land, and structures as required under SPS SR2, Para 10. For this purpose,
the market survey was carried out in order to reach the market based unit rate to be paid to DPs.
However, the rates need to be confirmed during the feasibility and detailed design stage. The
total resettlement cost calculated for the site is Rs.100.7 million including 0.3 million for the
restoration of livelihood.
(iii) Mitigation Measures for Negative Impacts:
449. The mitigation measures are proposed based on the typology, extent and the quantum of
impact. These have been addressed in Chapter VII. The mitigation measures are proposed to
normalize the adverse impact of the project on the potential displaced persons. The following
actions are recommended to address and mitigate Land Acquisition and Resettlement (LAR)
impacts.
 The impacts are significant in nature, but the numbers of potentially displaced
persons are less than 200. Hence, the Land Acquisition and Resettlement Program
(LARP) of category “B” as per involuntary resettlement is required as the numbers of
displaced persons are less than 200 persons or 25 families
 Explore all possible design alternatives and select the one that avoids LAR impacts,
and if avoidance is not possible, minimizes the LAR impacts (see Chapter VII).
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 Consult all types of affected persons, including landless people and agree on
compensation and resettlement options, which ensures livelihood restoration and
shifting of temporary or fixed structures out of the corridor of impact (COI) and right of
way (ROW).
 Establish a Land Acquisition and Resettlement Unit (LARU) within the EA (project
management unit and project implementation units), engage land acquisition staff, a
resettlement specialist, male and female social mobilizers to undertake consultation
with DPs about the project benefits, impacts and mitigation measures including
compensation and Restoration & Rehabilitation support.
 In case negative impacts are unavoidable, prepare the land acquisition and
resettlement plan that elaborates the consultation & disclosure, legal framework,
eligibility & entitlement, compensation & rehabilitation plan and payment procedure,
institutional arrangements, monitoring and reporting framework and time bound
action plan.
 Undertake capacity building of the EA to cover all Land Acquisition and Resettlement
(LAR) planning and implementation needs for the duration of the Project, both at
Project Management Unit and at Project Implementation Unit (PIU) in the field.
 Meaningful consultations should be conducted with the entire DPs throughout the
project cycle;
 The interest of vulnerable groups including the woman headed households should be
fully incorporated in the project;
 DPs should be provided assistance in terms of relocation, livelihood disturbance and
vulnerability allowance in case their income is falling below the OPL (official Poverty
Line);
 A detailed socio-economic and impact assessment survey is required at feasibility
level to assess the extent of impact on the displaced persons
Options for Water and Sanitation Management in Sahiwal

450. To have an efficient water supply and wastewater institution in Sahiwal, it has to be
managed as well as any commercial business organization. The water/wastewater institution has
to escape from the vicious cycle of low revenue leading to shortage of consumables and
equipment, and low remuneration of staff which leads to poor standards of service, leading to
even lower collection rates for tariffs and stronger resistance to tariff increases. There are certain
key issues that need to be considered for the organizational design of a water and sanitation
institution in Sialkot. The first is focused on the management of the water cycle with regard to
integrating or separating the water supply, sanitation and sewerage/wastewater functions and
whether this should be managed within the context of a geographically defined area or whether
the utility should simply be focused on an urban or rural district.
451. The second issue considers centralization vs. decentralization. Centralization provides
absolute control, ensuring adherence to policies and enabling the use of common standards.
However, decentralization provides flexibility to meet changing needs at the local level. Within
the decentralization argument is the specific question as to whether urban water supply and
wastewater should be a sub-section of the TMA/Municipal Corporation or whether it should be a
separate utility. What makes water supply different from other businesses is that abstracting,
treating and distributing large volumes of potable water will almost certainly remain a monopoly
institution under the influence or regulation of government. However, within that monopoly
provision there is a whole spectrum of choice.
452. Some activities may be outsourced to allow the water supply/wastewater section of TMA
to focus on its core business activities, provided that outsourcing yields appropriate efficiency
gains that benefit both the utility and the customers. The outsourced activities may include billing
and collection, vehicle maintenance, meter reading (if installed in future), tube well maintenance,
service installation, repair of leaks in the distribution system, treatment plant operation, security
services, and cleaning services. Another possibility is that the TMA (or its water/wastewater
section) should be seen as water wholesalers only. Licensed vendors or community associations
Page 325
become more formally involved as water retailers - taking responsibility for greater or smaller
parts of the distribution system, as they are able. A single 'community water meter' simplifies the
institution's work with a water community taking responsibility for all losses, illegal connections
and tariff collection beyond that point. Within this whole approach is the assumption that
consumers will pay a sufficient tariff for financial viability of the institution, and/or that where there
are subsidies, they are deliberate and measurable rather than simply the result of poor
management.
453. Private sector participation (PSP) is in vogue and very political. The softest forms of
genuine PSP may be a service contract and a management contract, in that order. Build–
operate–transfer (BOT) and build–operate–own (BOO) arrangements for the production of
treated water in bulk for a utility have been popular. The issue here is the take-or-pay provision,
which must be agreed on so that the utility and the private contractor both get what they want. In
Asia, only one of the four concessions in Manila and Jakarta might claim success in PSP. Still,
governments should send clear signals to prospective private operators through policies that
unequivocally state the government’s position on the use of PSP in the water supply sector. If
PSP is involved, a regulator must first be appointed. The creation of a new water utility agency/or
authority like WASA is another option. However, this approach is not encouraging based on the
experience of the Punjab WASAs where the agencies are currently working under respective
development authorities, facing challenges such as dependency, political interference and a grim
fiscal situation, leaving them unable to meet their operating requirements. The Punjab
government is already proposing institutional reform to transform WASAs into independent
entities to be governed by an independent Board of Directors103.
454. A major role of Government is to establish opportunities, effective incentives and

appropriate polices to promote the mobilization of private resources in the course of
development. The process of private sector involvement should not be subject to strong
pressures towards fast privatization of distribution systems but to experiment with two or three
pilot programs before moving forward. Following from this, the 'revolutionary' solution currently
fashionable is 'privatization' - selling off the entire water sector to private individuals and financial
institutions. An evolutionary solution is to introduce an institutional development program, moving
towards greater financial and managerial autonomy whilst remaining under government
ownership. These processes can ensure a steadier progress that may avoid big social problems
and give better resources allocation although they will also imply higher tariffs, reflecting the real
cost of water services.
(i) Proposed approach to developing a Sahiwal Water and Sanitation Company
455. Considering the ‘evolutionary’ approach discussed above, ring-fencing the utility by
making it a state owned company is a first step towards autonomy. This may be achieved
through the creation of a new body, the Sialkot Water and Sanitation Company, under Section 42
of the Companies Ordinance 1984. This body would have full responsibility to construct, operate
and maintain water and sanitation services in the declared urban areas of Sialkot City. This
practice is already happening in Pakistan and examples include the Water and Sanitation
Services Peshawar (WSSP), North Sindh Urban Services Corporation (NSUSC) and solid waste
management companies in Sialkot and Lahore.
456. The current Tehsil Municipal Administration of Sahiwal can entrust its water and
sanitation function to a Sialkot Water and Sanitation Company under sub clause 2 of clause 54 of
the Punjab Local Government Ordinance 2001.
457. Similarly, the Municipal Corporation of Sahiwal, the successor of TMA Sahiwal, can also
entrust its water and sanitation function to a proposed Sahiwal Water and Sanitation Company
under the sub clause 2 of clause 87 of The Punjab Local Government Act 2013. The sub clause
reads as ‘The Metropolitan Corporation and a Municipal Corporation may entrust any of its
functions to a person, an authority, agency or company through a contractual arrangement, on
103
Punjab Urban Development Sector Plan 2018 – Enabling cities to be engines of growth
Page 326
such terms and conditions as may be prescribed. The proposal is that the new company will
have its own senior staff and will take over operational staff from the TMA. Figure VI-107
provides an outline of the technical and management staff required for a Sahiwal Water and
Sanitation Company. The proposed company would be aligned to the Tehsil Municipal
Administration Sahiwal or its successor the Municipal Corporation Sahiwal. As discussed above
the new Punjab Local Government Act 2013 has a provision in this regard and the company
would be an executive arm of TMA Sahiwal or its successor the Sahiwal Municipal Corporation.
The company may extend its operation in other geographical areas by entering into a contract
with neighboring Municipal Committees and the District Council of Sahiwal. The Memorandum of
Association (MoA) and Articles of Association should have this provision where company can
expand its operations in other geographical areas.
458. The technical and professional management staff will be competitively recruited from the
market and tasked to improve service delivery. Incentives will be better aligned with performance
and designed to reward results. The finances of Sahiwal Water and Sanitation (SWSC) will be
ring-fenced, rigorously audited, and not intermixed with TMA/Municipal Corporation’s financial
accounts, thus allowing management to better track service delivery costs and revenues
(ii) Alternate approach for the management of Urban Services in Sahiwal
459. An alternative approach to improving the management of municipal services in Sahiwal is

to create an Urban Service Company for urban water supply, wastewater, and solid waste, under
the section 42 of the Companies Ordinance 1984. The proposed Sahiwal Urban Service
Company (SUSC) will aggregate the TMA/Municipal Corporation’s (successor of TMA) urban
water supply, wastewater, and solid waste operations under a single company to achieve
economies of scale and share the overhead costs of support function (Management, HR,
Finance etc.). With the separate utility for water, wastewater and solid waste, the indicative HR is
66 and with one utility it comes down to 49.
460. A single Urban Services Company and Board of Directors will facilitate the
TMA/Municipal Corporation, local government department and the urban unit, they have to
coordinate and regulate the performance of only one company. North Sindh Urban Services
Corporation (NSUSC) and Water and Sanitation Services Peshawar (WSSP) are examples of
similar initiatives in Pakistan where urban water supply, wastewater, and solid waste operations
are under a single utility. Under the proposal for Sahiwal Urban Service Company (SUSC) we
recommend a separate General Manger, responsible for planning and operations of water,
wastewater and solid waste. Figure VI-108 elaborates the Sahiwal Urban Service Company’s
organization structure.
461. Like the Sahiwal Water and Sanitation Company (SWSC), the technical and professional
management staff will be competitively recruited from the market and tasked to improve service
delivery. Incentives will be better aligned with performance and designed to reward results. The
finances of the company will be ring-fenced, rigorously audited, and kept separate from
TMA/Municipal Corporation’s financial accounts, allowing management to better track service
delivery costs and revenues.
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Figure VI-107: Proposed Organogram of Sahiwal Water and Sanitation Company
Chairman Board of Directors Board Members

Sahiwal Water and Sanitation Sahiwal Water and Sanitation
Company Company
Chief Internal Auditor

(1)
CEO Sahiwal Water and
Sanitation Company
(1)
Executive Assistant to
Company Secretary CEO (1)
(1)
Manager Finance General Manager Operations General Manager Planning and Assistant Manager Customer
Manager MIS / IT
Manager HR & Admin Care and Complaints
(1) and Services Construction (1)
(1) (1)
(1) (1)
Help Line / Complaint

Procurement and Attendant (4) Assistant Manager SKADA
Admin and HR Officer Manager Water Supply Manager Wastewater Manager Planning & Design
Contract Specialist (1)
(2) (1) (1) (1)
(1) Community/Social
Mobilizer
Communication Officer Budget and Accounts Manager Construction and (1) Network Administrator
(1) Officer Assistant Manager Assistant Manager Suprvison (1)
(2) Operations Operations (1)
(2) (2)
Assistant Manager Billing Assistant Manager Asset Database Administrator
and Collection Assistant Manager Water Assistant Manager Management (1)
(1) Production and Lab Wastewater Treatment (1)
(1) (1)
Technical Staff (06) GIS Specialist

(1)
Operational Staff (15)
Management/Admin Staff (17) Research Officer
(1)
Total (38)
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Figure VI-108: Proposed Organogram of Sahiwal Urban Services Company

Sahiwal Urban Service Company Sahiwal Urban Service Company

(1)
CEO Sahiwal Urban Service
Company
(1)
(1)
Manager Planning and General Manager Water and

Manager HR & Admin General Manager Solid Waste
Construction Wastewater Manager Finance
(1) (1)
(1) (1) (1)
Assistant Manager HR
AM Planning and Manager Customer Care and Manager Planning Solid Assistant Manager Finance
(1) Manager Operations Water Manager Operations Manager Operations Solid
Constructions - Water Communication Waste and Accounts
and Wastewater (1) Supply (1) Wastewater (1) Waste (1)
(1) (1) (1)
Assistant Manager Admin
AM Planning and
(1) Assistant Manager Billing
Constructions -Solid Assistant Manager
Assistant Manager Manager Workshop Assistant Manager and Collection
Waste (1) Operations
Operations (2) Assistant Manager (1) Operations (2) (1)
(2)
Customer Care (1)
Assistant Manager Asset
Manager IT Management Assistant Manager Procurement and
Assistant Manager Water Assistant Manager
(1) (1) Wastewater Treatment (1) Help Line / Complaint Contract Specialist
Production Labl (1) Workshop (1)
Attendant (4) (1)
GIS Specialist
(1)
Assistant Manager SKADA Assistant Manager
Manager Segregation and Manager Landfill /
(1) Communication (1)
Composting (1) Dumpsites (1)
Research Officer
Network Administrator (1) Community / Social
(1) Dedicated Water and Wastewater Staff (09) Mobilizer (1) Assistant Manager Assistant Manager
Landfill / Dumpsite (1) Landfill / Facilities (1)
Dedicated Solid Waste Staff (11)
Database Administrator
(1) Shared Technical Staff (14)
Shared Management/Admin Staff (15)
Total (49)
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HH. Summary of Costs

462. Table VI-109 provides a summary of costs for the works being undertaken during the
medium term plan.
Table VI-109 – Summary of Costs for Medium Term Development Plan104

Component Cost Estimate
PKR (mill) USD (mill)
Component 1 – Water Supply Infrastructure
Rehabilitation of Production Facilities 142.0 1.42
1.2 Rehabilitation and Provision of New Storage 126.0 1.26
Facilities
1.3 Rehabilitation of Water Distribution System 109.0 1.09
1.4 Development of DNI Zones and NRW Reduction 270.0 2.70
Component 2 – Sewerage and Drainage
Infrastructure
2.1 Sewerage Network Improvement 21.00 0.21
2.2 Rehabilitation of Sewage Disposal Stations 308.0 3.08
2.3 Construction of Sewage Treatment Plants and 1670.0.80 16.70
Trunk Mains
Component 3 – Operation and Maintenance 196.0 1.96
Facilities and Equipment
TOTAL 2842.0 28.42
II. Implementation Schedule

463. Figure VI-110 below indicates the implementation schedule for the works to be
constructed under the medium term development plan
104
Does not include Contingencies.
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Figure VI-110: implementation schedule
Sahiwal: Medium Term Infrastructure Investment Program

Watsan Sector
Financing Co- Expected Financing Total Medium 2016 2017 2018 2019 2020
Expected Loan Expected Loan Indicative
Implementing Commitments Required in Longer Term Financing
Sector Component Disbursement in Disbursement in Amount (US$) in
Entity and Budget Term after Year 5 to Requirem ent Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Years 1 - 3 Years 4 - 5 Year 15 (US$)
millions
Source
Long Term
Medium Term Investments
Investm ents
MFF Approval
PICIIP MFF Process GoPb 500.00 million
PPTA Procurement
PPTA Implementation MFF Approved
MFF Loan Negotiations
MFF Implementation
Water Supply Source & Production Infrastructure Improvement & Strengthening SMC/SWSC 1.424 0.7 1.424 2.12
Production Infrastructure Improvement feasibility assessment
Production Infrastructure Final Design
Procurement for Rehabilitation
Replacement,Rehabilitation of Production
& Repair Facilities.
of Existing Production facilities (Selected)
Replacement,Rehabilitation & Repair of Existing Production facilities (Selected)
MFF Approval
Water Supply Storage system Improvement & Strengthening SMC/SWSC 1.255 1.6 1.255 2.86
Storage System Strengthening Feasibility assessment
Storage system strengthening final design
Procurement for Storage Strengthening project
Rehabilitation & Repair of Selected Storage Facilities
Water Supply Distribution System Improvement SMC/SWSC 1.09 1.165 1.09 2.26
Water Supply Distribution System Improvement & Extension Feasibility Assessment
Water Supply Distribution System bulk Replacement & Extension Final Design
Procurement for Distribution System bulk replacement & Extension
Replacement of Distribution network (Selected)
MFF Approval
Development of DMA Zones & NRW Reduction Program SMC/SWSC 2.25 0.45 10.3 2.7 13.00
DMA Zones Feasibility Assessment
DMA Zones Final Design
Procurement for DMA zoning
Implementation of Zoning and NRW Reduction Program
Waste Water Sector Improvement (Sewerage Component) SMC/SWSC 2.934 0.354 3.29 3.29
Sewerage Rehabilitation and Improvement Feasibility Study `
Design of Sewerage
Procurement Rehabilitation
for Sewage ConveyanceandImprovement
Improvement
Procurement for Sewerage Rehabilitation and Improvement Improvement
Replacement of Sewers & Renovation of Minor Disposal Stations
Minor Disposal Station Diversion to Main Disposal Stations
Waste Water Treatment & Disposal SMC/SWSC 15.88 7.5 15.88 23.38
Waste Water Treatment Feasibility Study `
Waste Water Treatment Final Design
Procurement for centralised wastewater treatment plant
Land acquisition for centralised wastewater treatment plant
Construction of centralised wastewater treatment plant
Tools and Equipment SMC/SWSC 1.96 1.96 1.96
Procurement of Water & Waste Water Management Tools & Equipments
O&M and Sector Support Programs SMC/SWSC 2.14 2.14 2.14

O&M
Public Awareness and Engagement Program
Institutional Support Program
Legend: GoPb=Government of Punjab, MFF=Multitranche financing facility, PPTA=Project Preparatory Technical Assistance, Q=quarter (three-month period), SMC=Sahiwal Municipal Corporation,SWSC=Sahiwal Water Sanitation Company ,US$=United States Dollar.
Page 331
Transport
JJ. Sector Assessment - Transportation Planning
Transport and its Role in Achieving City Objectives

464. Based on the ICDS workshops and the materials presented in Chapter III and Chapter V
of this Report, Sahiwal aspires to be: A safe, reliable, economical, environmentally friendly city.
It’s well managed, comprehensive and multi-modal transportation system for the efficient
movement of people and goods for the city of Sahiwal is essential to this. Its ability to lever
human as well as economic development and social inclusion activities for the short-term: 2020
and the mid-term 2025 are essential to the city’s vision: The Development of an integrated and
financially sustainable Medium Term Infrastructure Investment Plan (MTTIP) for priority roads
and transport infrastructure investments in Sahiwal is crucial to assisting Sahiwal in delivering
this aspiration.
Figure VI-111: The Need for an Integrated Approach to Transport Planning
465. This is essential as it will help Sahiwal to achieve the levels of economic growth that its
unique position affords the city: it is on the national trade corridor, N-5 and is well connected with
the adjoining cities and towns through regional road network and rail links, but has not yet fully
capitalized on these unique corridor connections.
Activities Undertaken in Defining the MTIIP
466. The following activities have been undertaken in defining the MTIIP components. These
include:
(i) Collaboration with the Stakeholders

467. Close collaboration with the Sahiwal District Government and the relevant departmental
heads to ensure that the MTIIP priorities for the city are in line with the broader city strategies,
plans and policies.
(ii) Analysis through Consultations and Discussions

468. Undertake a stakeholder analysis through extensive consultations individually and
collectively with all the relevant stakeholders at the provincial and the city levels.
(iii) Review and Assessment of Relevant Documents, Data and Policies

469. Review of all relevant documents (plans, strategies, policies and consultants’ reports)
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related to the transport / urban development in Sahiwal.
470. An overview of transport / urban development frameworks and policies at the national
and provincial levels within which proposed investments will be placed. An overview of the
institutional landscape in Sahiwal for the priority areas and service delivery and proposed
improvements need to be made through focused and detail recommendations.
471. A critical review and assessment of all previous urban infrastructure investments
undertaken in the roads and the transport sector to identify gaps and future requirements and
phasing.
472. Review of available data in the priority areas (roads and transport sector).
(iv) Technical Assessments

473. Provide technical assessments and planning of the priority areas in the roads and the
transport sector and clearly identifying the main constraints and plans for the service delivery
improvement.
474. Integrated and Phased Urban Infrastructure and Investment Plan and Program
475. Propose an integrated and phased urban infrastructure and an investment plan and
program for the short 2020 to medium term 2025.
(v) Identification of Priority investments

476. Identification of priority investments in the roads and the transport sector that are
technically, operationally and financially sustainable, using robust criteria to rank and prioritize
investments that reflect the operational priorities as per the city needs as reflected in their
application to CDIA.
(vi) Impact on Poverty Reduction

477. The proposed investments should contribute to the poverty reduction through improved
access to basic services.
(vii) Environmental Sustainability

478. The proposed investments should contribute to environmental sustainability and
mitigation of the climate change effects.
(viii) Any Significant Economic, Financial, Social or Environmental Issues

479. Highlight any significant economic, financial, social or environmental issues, which must
be subject to an in-depth review during Phase 2 (PFS).
(ix) Service Delivery Standards

480. Propose, phased service delivery standards to be adopted by the City based on the
International Best Practices situated in the local context.
Consultants and Counterparts Involved
481. The following stakeholders were consulted repeatedly during the MTIIP process.
Additional consultations continue into the MTIIP process. The details of the contacted
stakeholders are illustrated as under in Table VI-112 below.
Table VI-112: Consultations and Discussions with Key Informants

S No. Name Designation Organization
1 Mr. Mr. Kashif Muhammad Ali ADC TMA
2 Dr. Syed Murtaza Asghar Bukhari Senior Transport Advisor The Urban Unit
3 Mr. Hameed Town Officer (TO) Finance TMA
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4 Mr. Waseem Accountant, Town Officer TMA

(TO), Finance
5 Mr. Nisar Ahmad TO, Infrastructure & TMA
Services
5 Sh. Waheed SDO, Infrastructure & TMA
Services
6 Malik Liaquat TO, Planning & TMA
Coordination
7 Mr. Mushtaq Ahmad Secretary Regional Transport Authority
(RTA)
8 Mr. Basheer Ahmad Reader RTA
9 Mr. Shuaib Assistant RTA
10 Mr. Umar Ch. SDO District Officer (DO), Roads;
Sahiwal district.
11 Mr. Zaheer Ali Shah Head Draftsman District Officer (DO), Roads;
Sahiwal district.
12 Mr. Shafeeq Draftsman District Officer (DO), Roads;
Sahiwal district.
13 Mr. Shakeel Akhtar Head Clerk District Officer (DO), Roads;
Sahiwal district
14 Mian Fateh Muhammad Wattoo SDO Provincial Highways, Sahiwal
district.
15 Mr. Muhammad Hassan SP Traffic Police, Sahiwal district.
16 Mr. Mohammad Arshad Chahal District Excise & Taxation Excise & Taxation, Sahiwal.
Officer
17 Mr. Shahid Ali Gillani District Excise & Taxation Excise & Taxation, Sahiwal.
Officer
18 Mr. Javid Iftikhar Inspector Excise & Taxation, Sahiwal.
19 Mr. Bashir Ahmad Station Master Railway Station, Sahiwal.
20 Mr. Shirazi Sanitary Inspector TMA
Differentiation Between the Two Intermediate Cities

482. The broadly significant differences between the cities of Sahiwal and Sialkot are
highlighted below in Table VI-113.
Table VI-113: Differentiation Between Sialkot and Sahiwal
S. Sialkot Sahiwal
No.
LOCATION
The city of Sialkot is a district head quarter The city of Sahiwal is a division and a
of the Punjab province of Pakistan. district head quarter of the Punjab province
of Pakistan.
It has three sub-divisions (Tehsils), namely It has two sub-divisions (Tehsils), namely
Sialkot, Pasrur and Daska. Sahiwal and Chichawatni.
It is situated in the northeastern corner of It is situated in the mid-eastern side of the
the country, close to the border of the Indian country.
1
held territory of Kashmir.
There is no canal, traversing through the city. The Lower Bari Doab canal, running east-
west is traversing through the city of Sahiwal.
The river Chenab at Head Marala is flowing The river Ravi is flowing east-west at a
at a distance of around 20 km. on the north- distance of around 12 km. on the northern
eastern side of the city side of the city.
The river Sutlej is flowing east-west at a
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distance of around 20 km. on the southern

side of the city.
The national trade corridor, N-5 near The city of Sahiwal is situated on the
Gujranwala is around 53 km. via the Sialkot national trade corridor, N-5.
Road from the city of Sialkot, situated on the
north-eastern.
The national trade corridor, N-5 near

Wazirabad is around 35 km. via the
Wazirabad Road from the city of Sialkot,
situated on the north-eastern.
POPULATION
The city of Sialkot City has an estimated The city of Sahiwal City has an estimated
2 population of around 0.87 million, with an population of around 0.39 million, with an
average annual growth rate of around 2.5 %. average annual growth rate of around 2 %.
CITY CONTEXT
Sialkot became part of the Muslim Sultanate The Sahiwal area is part of the Indus Valley
of Delhi when the Afghan Sultan Shahab-ud- Civilization and Harappa is an archaeological
Din Muhammad Ghauri conquered Punjab in site, about 35 km west of Sahiwal, built in
1185. approximately 2600 BC.
3
The city has sixteen union councils. The city has ten union councils.
The city has a Cantonment on the north- The city has no Cantonment and the nearest
eastern side. one is in Okara at a distance of around 20
km. on N-5 in the north-eastern side.
INDUSTRY
The city of Sialkot is in the ‘Export Triangle The city of Sahiwal has an agrarian economy
of Pakistan’ comprising Gujrat, Sialkot and and potato is a very famous cultivation.
Gujranwala and is internationally famous for
producing and exporting sports goods, The city does not have an export based
gloves, surgical instruments, sports wears, industry.
cutlery, ceramics, and leather garments etc.
The city is also known for the cultivation of
The city of Sialkot is an industrial hub, with a vegetables and Arifwala Tehsil is famous for
major share in the national trade and exports. the agricultural products.
Sialkot is the world's largest producer of Sahiwal is renowned for the breading of high
hand-sewed footballs, with local factories quality cattle and buffalos and the district is
manufacturing 40~60 million footballs a year, famous for ‘Water Buffalo’ milk.
amounting to roughly 70% of the world
production. In the Sahiwal district, there are agro-based
industries. The Engro Corporation has
4
The city of Sialkot has an annual export of developed the food industry and Philip Morris
around US $ 2 billion, about, 6% of the total Pakistan has established a cigarette factory
exports of Pakistan. The city of Sialkot is in Sahiwal area.
probably the only export-oriented city of
Pakistan, where 99% industrial production is
meant for exports.
The per capita income of Sialkot is more than

US$ 1200, which is the highest in Pakistan.
The firms registered with the Sialkot Chamber The Sahiwal division has mainly Agro-based
of Commerce & Industry in key disciplines are Industries and has approximately 1,682
around 6,800. industrial units.
There is a reasonable availability of skilled There is a scarcity of skilled manpower.
labor and there are 15 technical / commercial
/ vocational institutions (10 for men and 5 for
women) imparting training in various trades.
PRIVATE SECTOR PARTICIPATION IN THE DEVELOPMENT PROCESS
The Sialkot Chamber of Commerce and There is no significant contribution by the
5
Industry (SCCI) has a proactive role in the private sector / industry in the city’s
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development of the city, such as financial development.

investments in the construction of roads,
streets and the selected intersections. Also
operating the public transport, through the
SCCI
The private sector in the city of Sialkot has

successfully financed, developed and are
operating the Sambrial dry port and recently
built; the Sialkot International Airport (SIAL).
OVERALL MAJOR TRANSPORT NETWORK
The road network is well laid out and radial in The city of Sahiwal is a planned city.
pattern.
The road network is well laid out in a grid-
iron pattern.
Sialkot is traversed through railway line Sahiwal is traversed through by the railway
dividing, the city into two distinct areas of line and the Lower Bari Doab canal is running
Cantonment and Administrative center in the parallel in the east-west direction.
north and rest of the city in the south,
including old city situated on and around the
historical citadel.
Rail Network Rail Network
The city of Sialkot has a railway station, along There is a railway station in Sahiwal, along
6 with the branch-line rail system. with the main-line rail system. The main,
Lahore-Karachi railway line is passing
through the city in the east-west direction;
along the southern side of the Lower Bari
Doab canal and connecting Sahiwal with the
rest of the country.
Dry-port There is no dry port.
There is a dry port at Sialkot / Sambrial,
which has greatly enhanced the logistics and
freight movement of the export oriented city
of Sialkot. This was the first dry-port in
Pakistan established in 1984 by the private
sector and has run successfully.
Airport There is no airport.
The Sialkot International Airport Limited
(SIAL) is the first airport in Pakistan to be
developed and operated by the private
sector.
The Sialkot International Airport (SIAL) is

positively catering the air cargo and
passenger needs of the districts that have
grown manifold.
Vehicular Growth Vehicular Growth
The city of Sialkot has witnessed more than The city of Sahiwal shows an average
6
17% an average annual growth rate of annual growth rate of 10%, during the last
vehicles during the last three years. three years.
Currently more than 350,000 vehicles are Currently more than 230,000 vehicles are
registered in the district. registered in the district.
Public Transport Public Transport
The public transport is not adequately There is no urban / intra-city transport for the
developed. There are only two urban / intra- city of Sahiwal. So there are no wagons and
city routes of the passenger wagons for the buses for the city.
city, Sialkot - Dalowali and Sialkot - Naikpura.
The Sialkot Transport Company (STC) is
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providing a limited urban public transport on

the Sialkot-Pasrur route.
Bus Terminals Bus Terminals
Apart from the inter-city, C and D-Class Apart from the inter-city, C and D-Class
stands; the main General Bus Stand / stands; the General Bus Stands on N-5 (G.
terminal is situated in the Sialkot Cantonment T. Road), has an area of around 1 acre and
and is spread over an area of 6.5 hectares. situated near, Railway Station.
The Daewoo Bus service has a D-Class The Daewoo Bus service has only an inter-
stand. city halt-over point.
Truck Stands Truck Stands
There are three stands for trucks in the city of There is one truck station for the goods
Sialkot. transport located at the Pakpatan Chowk.
The Deputy Superintendent of Police The Superintendent of Police (SP) is in-
(DSP) is in-charge of the Traffic Police for the charge of the Traffic Police for the Traffic
Sialkot District, under the District Police Police, Sahiwal District, under the District
Officer (DPO). Police Officer (DPO).
Existing Situation
Overall Major Transport Network
(i) City Road Infrastructure

483. Sahiwal is traversed by the railway line and the Lower Bari Doab canal, running parallel
in the east-west direction. The road network is well laid out in a grid-iron pattern. The inter-city
roads are wide enough with sufficient right of ways; however, some of the laterals have marginal
widths and pose problems of congestion in the presence of rough driver behavior, diverging
traffic mix, poor traffic supervision and road space management issues.
484. The following is the general roads situation in the city of Sahiwal105:
 The length of the roads in the city is around 40 km.

 The length of the provincial roads in the city is around 10 km.
 About 12 roads have a good condition and accessibility.
 Around 30% of roads in the city have a poor condition and accessibility.
 The roads are done patchwork by the TMA, otherwise for the bigger roads projects;
provincial assistance is sought.
 There are only two traffic signals on the High Street.
485. All arterial / primary roads with the exception of a few and some of the secondary roads
which carry significant traffic volumes are made dual carriageways with substantial road width,
narrow central medians and footways. The footways usually are encroached; remain occupied by
the roadside merchandise and rarely available for the pedestrian to walk. The substantial
carriageway widths with the marginal indication for the roadside parking and absence of traffic
management / control measures, coupled with complex traffic mix lead to traffic confusion and
delays.
486. The road junction layouts on arterial roads are generally acceptable but lack detailing and
safety considerations. The facilities for the public transport, pedestrian crossings and sign
posting for traffic management are rare like any other city in Punjab. So adequately laid out road
network suffers from efficiency, safety and facilities for NMT and public transport.
105
As per discussions with the administrator, TMA; Sahiwal, on August 2015
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487. The road network in the older parts of the city, where major commercial activity takes
place is congested; traffic management is non-existent and suffers from the vehicular pedestrian
conflicts.
(ii) Inter-city, Roads Linkages

488. The city of Sahiwal city has good road linkage with the surrounding cities and towns
through a network of the inter-city roads with sufficient right of ways, but with strip commercial
development and encroachment on or along the right(s)-of-way(s) (RoW). The links are mostly
radial in pattern and connecting through dual carriageways with surrounding cities including
Okara, Pakpattan Arifwala, Harapa and Kamalia.
489. Some of these cities have been selected as subsequent cities on the PICIIP and so the
physical connectivity of Sahiwal disused here has convergences and synergies with the expected
MTIIPs of these forthcoming cities. These have been raised in Chapter III and Chapter V of this
document.
490. The road pattern of the city is a radial pattern, with the following main roads connecting
key arterials within the city:
 The N-5 (G-T Road), connecting Peshawar, with Karachi; the main transport corridor of
Pakistan traverses east-west through the city.
 The Sahiwal By-pass for the through inter-city traffic on N-5 in a southern loop, originates
at the eastern end of the city on N-5 and terminates at the western end of the city at the
N-5.
 The Pakpattan-Sahiwal Road traverses through the Sahiwal By-pass and connects
Sahiwal at N-5 on the south side.
 The Arif Walla-Sahiwal Road traverses through the Sahiwal By-pass and connects
Sahiwal at N-5 in the south side, on the western side of the Pakpattan-Sahiwal Road.
 The Noor Shah-Sahiwal Road connects Sahiwal at the N-5 on the north-eastern side,
linking the High Street.
 The Harapa-Sahiwal Road connects Sahiwal on the western side and traverses through
the city and terminating at N-5 on the south-western side.
(iii) Intra-city Urban, Arterial / Primary, Roads Linkages

491. The city of Sahiwal itself is laid out in a gridiron pattern, with a mostly perpendicular road
network. The following are the main primary / arterial roads of Sahiwal city:
 The High Street, the main arterial of the city runs north to south on the eastern side and
connects the Noor Shah-Sahiwal Road in the north and terminates in the south at the N-5
with Pakpattan-Sahiwal Road.
 The High Street, crosses through the flyover at the rail line and the Lower Bari Doab
canal, both running closely in an east-west direction.
 The Farid Town / Arra Tufail Road also runs north to south on the eastern side of the
High Street almost to the center of the city. It then terminates at the circular road (at the
junction of Nishter / Church Road).
 The Circular Road (Nishter / Church Road) radiates around the Zafar Ali Cricket Stadium,
Gymkhana Club and other institutional areas.
 The Medical College Road, on the northern side of the city, runs in an east to west
direction.
 The Railway Road, on the north side of the city, parallel to the Lower Bari Doab canal,
traverses the city in the east to west direction, connects Harapa Road in the west and
links the High Street with Jhal Road in the east.
 The Canal Bank Road runs east to west, on the southern bank of the Lower Bari Doab
canal.
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(iv) Rail Network

492. There is a railway station in Sahiwal. The main-line rail system needs to be up-graded
and the scheduling of trains needs to concur with a higher frequency of passenger and freight
movement. The Lahore-Karachi railway line passes through the city in an east-west direction;
along the southern side of the Lower Bari Doab canal and connects Sahiwal with the rest of the
country.
Sahiwal Traffic Patterns
(i) Vehicular Growth

493. The vehicle population in the district and within the city has shown high growth, partly
because of the industrial growth in the city; higher usage and ownership of vehicles; and
because of increased consumption spending by a bourgeoning middle-class. The trend towards
higher vehicle ownership is not expected to decline, but some mitigating measures have been
discussed in the CRVA Chapter of this report, as noted in Chapter IV.
494. Vehicle registration in Sahiwal shows an average annual growth rate of 10%, during the
last three years. Currently more than 230,000 vehicles are registered in the district, as shown in
Table VI-114 below. The majority of these, nearly a quarter of a million vehicles, are operating
within the confines of the city. Road space has not kept pace with the increased reliance on
automobiles, and this has resulted in congestion and a lack of adherence to rules and
regulations. This has also created congestion on the city streets and has put pressure for
investments on road infrastructure improvements.
Table VI-114
Vehicles Registered (Upto 31/05/2015)

Category No. of Vehicles
Ambulance 1596
Bus 38
Delivery van / Pick-up. 13
Double Cabin 7
Crane / Excavator 13
Mini bus / Non-ac Bus. 1
Motor Car 1609
Motor-cycle / Scooter. 225,488
Rickshaw 394
Taxi cab 5
Tractor 9,857
Tractor with Trolley. 742
Truck 118
Wagon 6
Total 230,212
Source: Motor Vehicle Registration Authority, Sahiwal; Excise & Taxation Department, GoPb
495. Vehicular growth rates are mostly due to industrial and economic prosperity. Poor traffic
management, organizational capacities and technical skills add significantly to road congestion,
exert pressure for increased spending on infrastructure improvements and complicate the
efficient management of city road networks.
496. Congestion on city roads is not due to excessive traffic volumes but is a result of the
irrational use of the road space, poor roadway management, absence of clear delineation for
roadside parking and enforcement. These are resolvable through the MTIIP as proposed herein.
497. The high volumes of the pedestrians and non-motorized traffic movements in commercial
areas of the city present a distinct situation that also needs to be properly addressed in the
MTIIP.
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(ii) Road Safety

498. In Sahiwal district, as on Dec. 31, 2013, there were 77 road accidents, out of which 52
were fatal and 25 were non-fatal106.
(iii) Public Transport

499. There is no urban / intra-city transport for the city of Sahiwal. There are no affordable
wagons and buses for the inhabitants of the city, and this has a detrimental impact on the
economic productivity of the population.
500. There is no scope for privately financed public transport systems for Sahiwal, as the
majority of routes have not proved to be commercially viable without some form of cross-subsidy.
Informal polling and focus group discussions have revealed an initial willingness to pay for
improved public transportation services.
501. Most of the city operations are through informal modes, namely two stroke, three
wheelers / Chingchi and rickshaws. These are not documented. Urban public transport is
infested with un-regulated operators creating excessive traffic hazards.
502. Public transport at present is dismal and poorly regulated. It requires improved
management on a prudent and financially sensible basis. This is likely to require an additional
move towards utilization of two-wheeled vehicles over other forms of motorized transport. There
is a sufficient demand to organize bus operations to reduce road congestion and help improve
access to urban transport services.
(iv) Bus Terminals

503. There are two, inter-city bus terminals within Sahiwal: The C-Class as well as the
General Bus Stands on the G. T. Road and also near the Railway Station. The TMA is
responsible for the maintenance of these C-Class stands.
504. There are 18 D-class stands in the district, managed by a private provider. The Rapid
Transit Authority (RTA) from January 2015 through July 2015, issued / renewed around 2,194
route permits for inter-city buses.
505. The Daewoo Bus service has only an inter-city halt-over point in Sahiwal, and there could
be significant opportunities to expand these at some point in the not-too-distant future.
(v) Public Transport Issues

506. The terminal operation is also poorly managed. The layout of the terminal areas in
general is not conducive to high levels of utilization. There is excessive noise and environmental
pollution, it is unclean and unhygienic, and there is considerable encroachment of other traffic in
the area, causing congestion and poor vehicular circulation.
507. There is no regard for balancing passenger convenience with the requirements of bus
movements. The commercial activity is mixed with terminal activities in the same place.
508. There are various organizations with overlapping functions insofar as public transport is
concerned. These organizations have the following broad issues; namely:
 Absence of trained manpower;

 Inadequate competition;
 Poor regulations and enforcement;
 Lack of customer service culture;
 Lack of coherent procedures or formability in documentation;
 All D-class terminals are even more inefficient and neglected;
106
Punjab Bureau of Statistics, 2014
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 Operations are managed by semi-formal actors without a professional approach of

corporate mentality; and
 Weak jurisdictional, functional and operational coordination amongst providers.
509. The TMA has a responsibility for planning and development activities, but is constrained
to improve delivery because of lack of competency and non-availability of the technical
manpower.
510. Public transport regulatory control is managed by the Provincial Transport Authority
(PTA) and the District Regional Transport Authority (RTA). The PTA and RTA have institutional
capacity issues and need reforms for improved and efficient service delivery.
(iv) Truck Stands

511. The truck station for goods transported by lorry/trucks is located at the Pakpatan Chowk.
Road / Transport Related General Issues
512. The road network in Sahiwal remains inefficient and has the following broad issues, such
as:
 Poor road geometry of junction layouts.
 Absence of wider footpaths and pedestrian crossing facilities.
 High degree of encroachments, along the RoW of roads.
 Poor road drainage.
 Absence of traffic signage, direction signs and road markings.
 There are almost no traffic signals in the city.
 Edge to edge road widening at many places is carried without consideration of road
space utility, which has led to confusion and traffic indiscipline.
 There are inadequate facilities for pedestrians. Insufficient footpath widths and
illogical profiles have led to poor utilization forced sharing of road space by
pedestrians and vehicular traffic. This creates serious road safety situations.
 Roadside parking space provisions / controls are not defined and suitably delineated.
There is uncontrolled roadside parking.
 The interaction of roadside activities and moving vehicles has created mobility
issues, and has adversely impacted road efficiency.
 The application of design parameters for the road junction improvement is lacking in
detail. These require repositioning and size adjustments.
 Junction components like traffic islands, medians/footway widths and horizontal
clearances around signal posts and utility poles need to be reviewed and improved.
 Frequent collisions by turning traffic and resultant displacement of signal poles clearly
portray discrepancies and poor engineering practices.
 Road signage and lane markings are mostly absent from the city road network. The
declared one way streets are never posted with no- entry or one-way road signs.
 Irrespective of roadway widths and land usages, roadside parking and commercial
activities including selling of merchandise on road reserves. This poses mobility and
access issues.
 There is an absence of enforcing traffic regulations and motorists therefore feel no
need to comply with requirements.
 Traffic management facilities are inadequate.
 The city has severe staffing and capacity issues related to the management of motor
vehicles and roadways.
Transport Related Institutional Challenges

513. In the proceeding sections, the PFS Team present the existing institutional set up and
related issues. These have also been summarized below.
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(i) Existing Set up / Institutional Overview
514. The transportation related institutional set-up for the city of Sahiwal is summarized below:
514.1. The Town Municipal Officer (TMO), Infrastructure & Services (I&S) under the
Town Municipal Administration (TMA) is responsible for the maintenance of roads and
the street lights and a few traffic signals of the city of Sahiwal. The TMO, I&S has
administrative and technical capacity issues, so in routine they do small repairs and
maintenance works of minor city roads. Although they are responsible for the operation
and maintenance of the streetlights of the city, they are compelled to respond to works
outside their direct responsibility.
514.2. The TMO, Planning & Coordination and TMO Municipal Regulations under the
Town Municipal Administration (TMA) are responsible for the development and building
control along the RoWs and the bus and truck stands. They have not effectively
managed development along the RoWs. This has resulted in a high degree of
encroachments.
514.3. The District Officer (DO) Roads, under the District Coordination Officer (DCO),
Sahiwal manages the district roads and the roads passing through the city.
514.4. The Executive Engineer, Provincial Highways Sahiwal, under the Chief Engineer,
Highways, Communication & Works Department maintains the provincial roads in
Sahiwal District and the roads traversing the city. The department deals with the major
roads, linking to other main cities within the district.
514.5. The major roads within the city, due to the capacity issues of the TMA, I&S are
constructed and are maintained either by the District Officer, Roads or by the Provincial
Highways Department.
514.6. Major road maintenance and development in the city is undertaken through funds
allocated to Members of the Provincial Assembly (MPAs) and Members of the National
Assembly (MNAs). These are executed either through the District Officer, Roads or
through the provincial Highways Department. Sometimes they are managed via the
Local Government & Rural Development Department (LG&RD), GoPb.
514.7. In general, the DO Roads, maintains the main arteries inside the city. These are
managed by the district. The TMA manages minor roads. Sometimes, the Provincial
Highways Department is tasked to execute projects within the city. There is therefore
considerable confusion, an overlapping of functions, a lack of coordination and
resultantly, inefficiency and poor service delivery.
514.8. The Secretary, Regional Transport Authority (RTA), with the DCO as its
Chairman exerts administrative control over the Secretary, Transport Department, GoPb.
The RTA issues intercity route permits and examines vehicle road worthiness. This is for
both commercial trucks and buses for the district. The RTA also manages intercity buses
and truck stands.
514.9. The Sahiwal Transport Company (STC), an autonomous organization, recently

established under the administrative control of the Secretary, Transport Department
launched through the management of the Sahiwal Chamber of Commerce and Industry
(SCCI). The STC has 20 buses operating on the Sahiwal – Pasrur bus route.
514.10. There is no formal urban public transport system in the city and the level of
service of the inter-city bus operations is also low. This is due to the inefficient and out
dated structure of the RTA and a lack of commercial focus. There is a need to revamp
and upgrade public transport facilities to make them more appealing to the masses who
are willing to pay more if service levels improve.
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514.11. The District Excise & Taxation Officer (ETO works under the DCO and is
responsible for the motor vehicle registrations and payment of the token tax for Sahiwal
district.
514.12. Motor registration and payment of the token tax for Sahiwal District by vehicle
type is computerized, along with all the districts of the Punjab province.
514.13. The Superintendent of Police (SP) Traffic Police, Sahiwal District falls under the
District Police Officer (DPO). The Traffic Police have the primary responsibility to regulate
and enforce the flow of traffic and are also in charge for the issuance of traffic licenses for
Sahiwal District. The Traffic Police lack adequate training, staffing, technology, logistics
and infrastructure. The Traffic Police also do not have the capacity to impart proper driver
training and road safety education. The enforcement of regulations is also weak due to
social and political considerations.
(ii) Issues Related to Delivery and Implementation
515. The following are the salient issues related to the delivery and implementation of an
improved program and have been factored into the MTIIP:
Lack of Coordination
516. There is a lack of coordination between the transportation and roads related
departments. They are either working in isolation or sometimes have overlapping functions.
These result in inefficiency, a weak service delivery regime, and poor transport infrastructure.
517. The TO, I&S is under the TMA. The DO Roads is under the DCO. Their staff is deputed
mostly through the Punjab Highways Department, Communication and Works Department,
GoPb. The SDO Highways is under the Punjab Highways Department, Communication and
Works Department, GoPb. The Traffic Police is under the District Police Officer (DPO).
518. All of the aforementioned institutions are working under different departments and
administrative setups and handle various roads and transport / traffic related activities within the
city. The Secretary RTA, deals with public transport and are under the DCO. This agency falls
under the jurisdiction of the Transport Department, GoPb.
519. As discussed in the proceeding sections, only the TO, I&S is part of the TMA. The DO,
Excise and Taxation dealing with motor vehicle registration and taxation is under the DCO. Their
staff is managed by the Excise and Taxation Department, GoPb. These relationships are shown
diagrammatically in Figure VI-115 and show the rather complex and convoluted (as well as
overlapping) nature of agencies responsible for traffic, vehicles and transportation within Sahiwal.
Weak Technical and Professional Capabilities

520. Overall, the institutions dealing with the transportation sector in the city need
strengthening and coordination.
Overlapping of the Functions

521. There is a requirement to eliminate overlapping functions and clearly define the territorial,
and administrative jurisdictions of each agency. There is then a need for an integrated
mechanism for coordination, monitoring and evaluation of performance in the sector based on
one comprehensive vision and strategy, as has been proposed previously in this Chapter.
522. There is also a need for horizontal and vertical integration of institutions. This has also
been highlighted in the preceding section. The institutional re-alignment of agencies to focus
them towards a more efficient and a pro-active transport coordination and delivery system will
help Sahiwal to achieve its vision as articulated in Chapter V of this Report. First and foremost,
this requires better coordination between all the departments tasked with transport, traffic and
vehicle issues in Sahiwal.
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Figure VI-115
EXISTING, Institutional Landscape

Transport Sector - Sahiwal
TEHSIL DISTRICT PUNJAB TRAFFIC

MUNICIPAL COORDINATION HIGHWAYS DEPT. POLICE
ADMINISTRATION OFFICER (DCO) (C&W Dept., GoPb)
(TMA)
Superintending District Police Officer

Engineer (DPO)
Tehsil Tehsil Tehsil
Officer Officer Officer
(TO) (TO) (TO)
I&S P&C Regulati Superintendent of
Police (SP)
District Officer (DO) DISTRICT REGIONAL MOTOR
Roads (On Deputation TRANSPORT REGISTRATION
from the C&W Dept., AUTHORITY AUTHORITY (MRA)
GoPb) (DRTA)
DCO / Chairman DCO / Chairman
Secretary District Excise and

(On Deputation from the Taxation Officer
Transport Dept., GoPb) (On Deputation from the
Excise and Taxation
Dept., GoPb)
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KK. Sector Strategy - Transportation Planning

523. Transportation and the mobility of both people and goods is fundamental to the economic
growth and sustainability of any urban center. At the same time, the hard infrastructure
supporting transportation and mobility also typically forms the physical framework for urban
development. To achieve desired efficiency, economic viability and maximum user convenience
and affordability, the basic urban form must be appropriate. For public transport that means cities
that are dense and compact with a viable population mass. For movement of goods, it means
efficient multi-modal linkages, sufficient traffic segregation to streamline movement, cities that
provide easy linkages for raw materials coming in and export materials going out, and as much
consolidation of city destination points as practical. For all forms of transport utilizing the road
network, heavy reliance is placed on the responsible institutions to ensure those streets are
effectively managed with designated and segregated space for all legitimate users. The
Integrated City Development Strategies (ICDS) for Sahiwal and Sialkot incorporate those needs
into their proposals. The ICDS also recognizes that much of the mobility demand is the daily live-
work commute. Urban form is a major determinant of how efficient that will be.
524. An inefficient transport network also has significant environmental and climate change
impacts. If traffic cannot move, the levels of pollution including greenhouse gas emissions
increase. Poorly managed streets in Sahiwal and Sialkot also lead to poor SWM, and drains that
do not function lead to urban flooding. It is obvious that the Transportation component of the
PICIIP is a major contribution to developing Sahiwal and Sialkot into the inclusive, safe, green,
livable, resilient, sustainable and competitive cities that they strive to be. To effectively achieve
that contribution, Transport planning must be approached within the over-arching guiding
frameworks of the city’s Integrated City Development Strategy (ICDS) and Climate Risk
Vulnerability Assessment (CRVA). The three are mutually supportive, as are the linkages
between Transport and the other proposed investment components of Solid Waste Management,
and Institutional Development in particular. Figure VI-116 illustrates these linkages.
economical approach to the provision of transportation services. The ICDS also recognizes the
need to address Transportation and mobility beginning with the people-oriented, community-
based level and proposes Mahallah strategies that support this. The ICDS proposes urban
development that addresses CRVA climate change responses in which Transportation can play a
critical role in reduction of greenhouse gases through innovation and efficiency. The Institutional
component integrates all of these through policy, regulation, plans at various levels, agency
management and municipal financial management.
526. For multi project investments in city public infrastructure to be most effective,
international best practice often requires a policy based paradigm and supporting Road-map,
which both places the investments into context as well as providing a logic and focal point for the
investments. Included in the Road-map is a set of ‘Key Performance Indicators’ (KPI) which act
as the guiding principles for the ongoing investment and performance monitoring in the short,
medium and long term.
527. A city which has a sector investment Road-map is often better able to engage with the
numerous institutions, involved in driving the economy and future spatial development. These
include both government and non-government interests who will be required to manage and
monitor the outcomes of the investments from a sustainable financial, economic, social and
environmental perspective. The task of implementation and an ongoing compliance with the
intended deliverables of the investments will also depend heavily on the ready co-operation of
the travelling public.
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Figure VI-116: Transportation Integration into the PICIIP
Sahiwal
528. While this is often a challenge in developing countries, for developed countries such
public awareness and consultation helps to minimize the additional effort and costs involved in
achieving the desired outcomes of the investment Road-map. For Pakistan, where such
community consultation is a significant challenge, it is nevertheless a vital component in
delivering success for the investment projects.
529. For the cities of Sahiwal and Sialkot, there is a desire to improve the urban transport
sector. At present, the sector is largely unregulated and with the ongoing growth of the urban
footprints and private vehicle ownership, congestion will continue to worsen. Also without an in-
time intervention, this congestion will require costlier solutions; as the ability to provide at grade
traffic management solutions will become very limited.
530. With the imminent creation of the Municipal Corporations for each city, there is a unique
window of opportunity to begin the interventions as part of the new institutional arrangements
being ushered in. For the future of Sahiwal and Sialkot, it is very important that this opportunity is
capitalized upon.
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National Transport Policy

531. The urban transport sector development vision pathway at the national level is driven by
the objective of improving accessibility, affordability, reliability and safety while optimizing the
road network and the management of resources of the host city. In this respect, a general
transition from a broadly unregulated urban transport system to one of regulated competition is to
be anticipated. This has been stated by the National Government in order to achieve the overall
national vision as is summarized as follows:
Provide a safe, reliable, effective, efficient, affordable, accessible, equitable, sustainable and fully
integrated transport system that will best meet the needs of freight and passenger access and
mobility requirements and will be aimed at improving levels of service and cost effectiveness in a
fashion that supports the Government’s goal of increasing public welfare through economic
growth, social improvement, poverty alleviation and infrastructure development while being
environmentally and economically sustainable and energy efficient.
Source: National Transport Policy, Draft VIII, NTRC, 2009. Ministry of Communications, Government of
Pakistan.
532. For Sahiwal and Sialkot, this means a formal urban transport plan which is to be the
basis upon which the future urban transport sector will be planned, financed and managed via
contracts or concessions awarded and supported by Government. This formal plan and
subsequent transition to a modern urban transport system is to be underpinned by the nominated
seven policy dimensions of (i) efficiency in the form of large buses107 serving improved urban
corridor conditions and modern operational principles (including seamless intermodal transfers)
prevailing, (ii) equity and poverty alleviation which provides targeted benefits for those sections of
the urban population on both a spatial and modal priority basis, (iii) safety and security for all, (iv)
supporting urban development in accordance with internationally recognized processes and
urban form, (v) providing opportunities for employment, health and social benefits so the cities
can grow and prosper, (vi) providing adequate incentives for compliance with rules and
regulations and where needed, the appropriate enforcement, and (vii) providing adequate
supporting institutional infrastructure to deliver the above policy dimensions.
533. As part of these improvements, municipal bus terminals are to be modernized, made
more attractive and better organized with gender considerations. Connecting local bus or coach
services and quality facilities for passengers (i.e. shelters, waiting rooms, and toilets) shall also
be provided as part of this policy position.
534. In accordance with international best practice, the above policy pathway will require a
packaged approach since no single intervention (of itself) will achieve the holistic improvements
being sought. For this reason, a number of complementary investment packages, which are
tailored to each city circumstances, will need to be implemented to drive any future urban
transport MCIIP investment strategy. Furthermore, these investment packages will need to be in
harmony with the following Provincial plans in order to ensure ongoing support for
implementation and beyond.
Punjab Government Urban Transport Policy

535. In accordance with the observations of the Punjab Urban Development Sector Plan
2018108, the cities in the Punjab face many challenges both now and in the future. Among these
shortcomings are inadequate infrastructure and urban management capacities to meet current
and future needs. These challenges are further tested with the ongoing rural-urban migration and
resultant uncontrolled urban sprawl which is (often) not in accordance with the underlying
principle of the Punjab Growth Strategy of ‘density’ and ‘agglomeration’. As has been recognized
107
Smaller public buses and jitney/Chingii vehicles exist in many urban areas. The National Policy
recognizes this and acknowledges the possibility for some of these to be “mainstreamed” as a
complementary mode for the larger capacity fleet being introduced.
108
Government of Punjab, 2015.
Page 347
at the Provincial level, dense multi-function urban areas create jobs, are free from barriers to
entry and exit, and attract investments, which results in ongoing economic growth and prosperity.
For these benefits to be realized, they also require an efficient, well managed and financed urban
transport sector. Such is the objective of this component of the overall MCIIP.
536. In harmony with the National Policies and the Millennium Development Goals, the Punjab
Growth Strategy 2018 has set a focus on accelerating economic growth and improving social
outcomes for all its residents. Nominated objectives include (but are not limited to), achieving an
8% GDP growth by 2018; increasing annual private sector investment in the local economy and
(at the broader level); achieving sustainable development goals by 2018.
537. With the majority of the population under the age of thirty and an urbanization rate of
40%109, there is both an obligation and an opportunity to capture innovation in a number of
areas. In the context of urban transport, a quality urban mobility plan for urban areas will help
residents access the opportunities being created in the cities and this will help create additional
confidence from the private sector that improvements are indeed occurring. Then the appetite for
increased private sector investment will manifest itself in increased GDP levels.
538. One of the nominated priority areas for public investment is public transport as per the
following:
“Priority areas include: providing adequate public transport via well-connected network of mass
transit such as Metro Bus as well as conventional buses to improve the mobility of people. An
endeavor shall be to make the transport convenient for the poor.”
Source: Punjab Growth Strategy 2018.
539. With the increasing effect of globalization on urban centers, the need to remain within the
global economy is becoming more of a priority with each passing year. As key engines of
national growth, the cities of Punjab have a proud history of contributing to Pakistan’s exports.
The emerging CEPEC initiative is an important addition to this opportunity as it helps improve the
links with international markets. Sahiwal is located adjacent to N5, which is planned to be a link
within the broader CEPEC strategy. For the urban population to take full advantage of the
benefits CEPEC and other investments will bring, an efficient and sustainable urban mobility
sector is considered a basic requirement. In this context, the above highlighted policy position is
a wise reflection of this need.
540. For ongoing reference and investment co-ordination, Table VI-117 lists the relevant
urban transport sector outputs, indicators and an indicative timeline for implementation. These
have helped inform the development of the investments developed as part of this project TA.
Table VI-117: Urban Transport Sector Outcomes and Outputs Most Relevant to
Sahiwal
Outputs Years (relevant to Sahiwal & Sialkot)
Indicators
(relevant to
(relevant to Sahiwal and
Sahiwal & 2014/15 2015/16 2016/17 2017/18
Sialkot)
Sialkot)
Outcome 1: ‘improving accessibility by public transport’
1.2 Improved 1.2.3 Number of Buses included in
capacity and the fleet of Sahiwal and Sialkot
quality of (tbc) (tbc) (tbc)
existing public
transport system
1.3 Transit and 1.3.2 Number of Intercity Bus
travel facilities Terminals to be Improved 2
improved
Outcome 2: ‘Ensure safe journey for the commuters’
109
Source: Punjab Cities Investment Program. GHK and The Urban Unit.
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2.1 Public 2.1.1 Percentage of vehicles

Service Vehicles inspected and certified against the 43% 50% 60% 70%
(PSVs) checked total vehicles. (This will apply to (tbc) (tbc) (tbc) (tbc)
for safe journey buses for the short term).
Outcome 3: ‘improve planning for public transport system and better regulatory and
service delivery regime’
3.1.1 Master Plan Studies for major
(tbc)
cities of the province conducted
3.1 Improved 3.1.2 Number of Feasibility Studies/
planning for Route Planning and Realignment
(tbc)
public transport Studies of selected cities
system conducted
3.1.4 Planning wing established in
Continuous
each division headquarter
Source: Punjab Urban Sector Development Plan 2018. Note: tbc = to be confirmed during the MCIIP process.
541. In the context of the policies of both the National and Provincial Governments, the
relevant issues of interest for the Sahiwal and Sialkot MCIIP are discussed below.
City of Sahiwal Opportunities

542. The economy of Sahiwal is derived from its surrounding agricultural setting. Its urban
road network is well planned, it is served by Pakistan Railways and as noted above, the N5
offers a strategic opportunity to link with other cities in Pakistan. With a population of
approximately 380,000, the familiar traffic congestion and resultant urban transport challenges
for larger cities are much less for Sahiwal. In this respect, presently there is a unique opportunity
for cost effective investments in the urban transport sector to be realized.
543. In particular, the presence of a broadly rectangular corridor created by High Street,
College Road, Farid Town Road, Harapa Road and Multan Road provides a base for a public
transport route which in itself is within walking distance of approximately 40% of the urban area.
When complemented by a general upgrading of the alignment to provide for non-motorized
modes, for selected kerbside parking opportunities, and a recognition of the important role the
current quingqi mode can continue to play, much of the city can be transformed. Turning this
opportunity into realty requires a new Smart City approach. This new paradigm is discussed
below as a guide to assisting Sahiwal capture the future opportunities awaiting it and its
residents.
Capturing the Opportunities for Sahiwal
544. For multi project investments in city public infrastructure to be most effective,
international best practice often requires a policy based paradigm and supporting Road-map,
which both places the investments into context as well as providing a logic and focal point for the
investments. Included in the Road-map is a set of “Key Performance Indicators” (KPI) which act
as the guiding principles for the ongoing investment and performance monitoring in the short,
medium and long term.
545. A city which has a sector investment Road-map is often better able to engage with the
numerous institutions involved in driving the economy and future spatial development. These
include both government and non-government interests who will be required to manage and
monitor the outcomes of the investments from a sustainable financial, economic, social and
environmental perspective. The task of implementation and ongoing compliance with the
intended deliverables of the investments will also depend heavily on the ready co-operation of
the travelling public.
546. While this is often a challenge in developing countries, for developed countries; such
public awareness and consultation helps to minimize the additional effort and costs involved in
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achieving the desired outcomes of the investment Road-map. For Pakistan, where such
community consultation is a significant challenge, it is nevertheless a vital component in
delivering success for the investment projects.
547. For Sahiwal, there is a desire to improve the urban transport sector. At present, the
sector is largely unregulated and with the ongoing growth of the urban footprint and private
vehicle ownership, congestion will continue to worsen. Also without timely interventions, this
congestion will require costlier solutions, as the ability to provide at grade traffic management
solutions will become very limited with the passage of time.
548. With the imminent creation of the Municipal Corporations, there is a unique window of
opportunity to begin the interventions as part of the new institutional arrangements being ushered
in. This is irrespective of the role the RTA may play in the short, medium or long term. For the
future of Sahiwal, it is very important that this opportunity is capitalized upon.
Strategic Context
549. For the urban transport sector, the key National and Provincial priorities for Sialkot and
Sahiwal are first and foremost to (i) promote and assist in the economic growth and (ii) deliver
improved social outcomes for the residents.
550. For Sahiwal, a relatively small city and an agrarian based economy is nevertheless, well
planned with a grid pattern urban road network. It does not have a formal public transport system
and with growing rates of private motorization, the current traffic conditions will worsen over time.
With the imminent establishment of the Municipal Corporation, there is an opportunity to begin to
focus on the city at the local level and facilitate the transition to an urban transport sector, which
is properly planned and managed in the interests of future mobility needs of all residents.
551. As can be readily appreciated, to maintain and even enhance competitiveness in the face
of growing international competition, cities need to reduce the cost of doing business. An efficient
and a well-managed urban transport sector is one of the measures, which will contribute to this
need. In this respect, the ability to ensure trip travel times are reliable and not overly excessive,
will encourage additional investment and will help drive the philosophy of the engines of growth.
For this, there are a number of guiding sector performance components to be met. Achieving
these will reinforce the paradigm shift to a ‘Smart City’.
Components of a Smart City

552. From an urban transport sector perspective, the five essential components considered
most relevant in the context of this project are discussed below. In addition, this list also indicates
the order of implementation to achieve success. From this, it can readily be seen that such a
transition will not occur without a sustained commitment to the components of a master plan and
complementary Road-map, especially the aspects of governance and management.
553. The essential components are:
 A City that has a sector Master plan and a Road-map for implementation - to
help guide the path through to a livable, resilient and a competitive future.
 Public buy-in of the sector Master plan and a Road-map – need to see the
benefits, in order for acceptance and elimination of a political opposition, which will
often kill good intentions. This will encourage on going compliance.
 Staged smart technology – it has to be introduced in a phased program, so that the
limited capacity of the government (both financial and human capital) can begin to
cope with the new systems from the outset. This also requires a mindset overhaul in
decision making regarding financial budgeting to accommodate both capital and
operations/maintenance (i.e. capacity development).
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 Smart and inclusive management – If management is good, the public will see it as
a new era and are more likely to support it. For this, the city needs to have a simple
set of messages, distributed to those immediately affected and to the broader city
population, so that everyone understands the benefits. This also requires a ‘mind set
overhaul’ in decision making, project operations, management and maintenance (i.e.
capacity development). This is essential if the public is to begin to support and work
with the government for a Smart City, or else will continue to oppose and drive it
down to a ‘Dumb City’ status.
 Smart and inclusive governance – policies and procedures which are focused on
out-comes, are relevant for the challenges being faced by the city and are both
practical and achievable within the nominated time-frames.
554. While these components may appear simple to

materialize, it remains an ongoing challenge for many cities.
Understanding the nature of these challenges is an
important step in being able to overcome them. For Sahiwal,
and Sialkot, the principle challenge is that of governance. In
this context, sustainable policies, supporting the Master Plan
and a road-map to help the city government achieve success
is the largest hurdle. The impending inauguration of the
Municipal Corporation or a revamped Regional Transport
Authority provides a unique window of opportunity to
address this governance issue, and should not be missed.
555. Once the governance is improved, the management

of the system is the next challenge. As has been observed,
rules are generally not being adhered to, and adequate maintenance of the infrastructure is
lacking. For a sustainable urban transport sector, both compliance and an on-going maintenance
are mandatory. In the Pakistan context, management of these matters is therefore the major
challenge going forward.
556. Once these have been addressed, the additional two components of technology and
finance are relatively simple to implement. In the case of the latter, with good governance,
proven management practices, the appetite for the private sector investment, and IFIs will
increase.
557. In well managed cities, the vision often applied is that ultimately the road network in the
city performs to its optimum capacity. To provide for this, the cities often recognize a policy of
passenger modal priority which is (i) non-motorized, (ii) public transport and (iii) private
transport – in that order. Such a priority is in accordance with the international best practice and
is founded by the knowledge that ‘a city cannot remove congestion by simply building more
lane kilometers in the network’. This is supported by the image in Figure VI-118 where it
shows clearly that high capacity vehicles can dramatically increase the carrying capacity of road
lanes, and thereby reduce congestion, without the need for additional traffic lanes. This is the
basis of the internationally recognized paradigm of ‘move people not cars’.
558. To deliver and maintain the status of a Smart City, and in accordance with the above
discussion, the following vision and strategy components for both Sahiwal and Sialkot will need
to be accommodated in any Road-map going forward.
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Figure VI-118: Passenger Capacity of Lanes per Mode
The yellow bus in the BRT lane above can carry

Internationally recognized standards nearly all those persons from the private cars
for lane capacity. The objective here is (average occupancy of 1.2) in the adjoining
to three lanes.
‘move people – not cars’ The objective here is to ‘move people – not
cars’
Sahiwal Urban Transport Vision and Road-map

559. For a city of approximately 380,000 residents and an annual growth in motorized vehicles
of 10%, the increasingly congested road network will become essentially unmanageable within a
few years. In this respect, a do nothing option will not be a sustainable option if the principles of a
Smart City are to be followed. Intervention is required in a phased manner so that the
implementation is successful, is able to be appreciated and accepted by the residents, and is
able to be properly managed by the government.
560. For this, Sahiwal needs to develop an Urban Transport Master Plan, which clearly
articulates the urban transport vision for the city, Key Performance Indicators (KPI) being sought,
and indicative timelines for achieving these KPIs. To assist in this process, the following
components will need to be implemented on a city wide basis. For the purposes of the Road-map
for this TA, implementation of specific investments needs to be on a corridor by corridor basis.
Improved Pedestrian Facilities

561. Irrespective of the mode, we are all pedestrians at some time in our daily travel. In this
respect and in response, improvements to footpaths need to be addressed if Sahiwal is to begin
the transition to a Smart City. At present, while such facilities exist in a limited form at selected
locations, overall the standard available in Sahiwal needs significant improvement.
562. Initially an upgrading of the footpaths along the proposed initial bus route (see below),
will go a long way towards demonstrating the City government’s/RTA’s commitment to the
wellbeing of the general public. When supported by the street lighting, it can be a cost effective
and a high profile improvement for the general public. It can then pave the way for an increase in
public awareness that improvements are at last being provided. Managed properly, this can be
the start of engaging with the public to create a community wide support for developing a Smart
City. Then, as time progresses and a whole of the city pedestrian plan is developed, a staged
implementation can continue. Figure VI-119 provides an indication of what may be achievable
for a pedestrian footpath.
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Figure VI-119: Pedestrian Facilities
Sahiwal - now Sahiwal – future (potential)

Source: Consultant
563. At the outset, it needs to be acknowledged that although, the City government can
implement policies and deliver Master plan investments with minimal community engagement,
this is a sub optimal option. History has demonstrated on numerous occasions that a willing and
supportive community saves both time and cost. It also provides an ongoing environment for
increased compliance, thereby contributing to a saving in management effort and budgetary
matters. The Road-map needs to have this aspect (i.e. public support) as a foundation of the
overall strategy, going forward.
New Urban Bus Services

564. Bus based public transport will be required in the short term to help the city manage its
growing congestion problems. Based on the results of the site visits, this is blatantly obvious.
565. Ultimately, it is anticipated that the city will require a limited number of bus routes to
serve the major arterials. These will be kerb-side based services, and will be complemented by
dedicated bus stops located in accordance with demand and to maximize coverage of the
surrounding walk up catchment. Buses will be rigid 12-meter low floor vehicles.
566. Bus services will need to be regular and able to meet the demand along the corridor. At
the outset, the government may need to assist with the capital cost in order to instigate a change
in the mindset of the private sector. Then in time and with evidence of the government’s ongoing
support for public transport, the private sector is more likely to have a greater appetite for
investment in urban transport. This will provide a foundation for future contracted public bus
services.
567. The initial bus route proposed and agreed to with the Urban Unit (shown in Figure 4
Annex 12 Interim Report), will provide access for approximately 40% of the existing urban foot-
print. In the future as the Urban Transport Master Plan is rolled out, it is expected that a limited
number of additional bus routes will be added to the network based on (i) demonstrated demand
and (ii) the capacity of the road alignments to accommodate the 12-meter bus specification. For
the short term this initial bus route (if a 12.5 km or a 15 km average operating speed is achieved)
will require a fleet of 9 or 8 buses respectively (including a 10% spare capacity) for a 15-minute
two-way operation. Should a 5-minute headway be demanded, the fleet will rise to between 28
and 23 depending on average operating speed.
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Priority Measures for Bus Services
568. A set of priority treatments will be required to help improve the reliability of the bus
services, and reduce the travel time for the passengers, using the bus network. In this way the
overall capacity of the key arterials will remain enhanced to help accommodate the increasing
travel demand in the years ahead. These priority treatments include (in the short term) signalized
intersections and removal of encroachments from the route alignment to be serviced. In the
longer term, bus priority lanes can be implemented as an aid for increasing bus priority, and
making bus travel the first choice for many residents. At that time, a traffic control center will also
be an addition to help with the ongoing management of the overall road network. As has been
discussed above, these priority treatments will help reduce the size of the fleet thereby reducing
operation costs and any future subsidy payment considerations.
569. Adequate support facilities such as dedicated bus stops, bus depot, refueling and storage
facilities will be part of the investment required for the Road-map in the immediate future. These
have been documented in Annex 12 of the Interim Report.
570. For on-going reference purposes, existing pavement widths have been estimated during
the site visit at the selected sections of the proposed bus route. Including medians (where they
exist) the approximate widths are: High Street at N-5 intersection-18 meters, Over-pass -9
meters, College Road - 9 meters, Katchery Road/Farid Town Road – 9 meters and Hospital
Road – 17 meters. During detailed design, these widths will need to be confirmed through
specific surveys. However, these initial estimates suggest that there is an adequate alignment for
large buses to ply this route.
Secondary Public Transport Services

571. The vision is for bus services operating as the backbone of the urban public transport
system. The bus route network will be complemented by a feeder and complementary network of
licensed rickshaw and qingqi routes which serve the communities where roadways are narrow
and unable to accommodate a two-way bus service.
572. For the rickshaw and qingqi modes, support facilities such as an upgraded layup area,
where drivers can relax during the low demand times; a maintenance and refueling facility where
owners and drivers can access quality facilities; and a network of mini-layup areas at the key
locations along the bus routes, at significant demand locations (such as the hospital) and
adjacent to the bus terminal on N-5, will help these drivers appreciate that the government is
attempting to assist them as well. This will result in less opposition to any changes to the status
quo as a result of the new initiatives listed above. Moreover, it will also demonstrate to the
travelling passengers that improvements are being provided by government for all public
transport modes. This will help reinforce broad public support for government and its vision for
the city.
Inter-modal Integration
573. The ultimate plan is to ensure a quality connection between the bus services at the bus
stand and the future urban public transport network for greater Sahiwal. In this respect, dedicated
paired bus stops with a signalized crossing or at least median pedestrian refuge facility, will be
needed at each paired stop.
574. Complementing this will need to be a local waiting area for rickshaws and qingqi feeders,
where passengers can readily interchange for their ongoing trip. For these facilities, adequate
land will be required. In the case of a kerbside facility, a kerb buildout110, adequate pavement
marking, signage and traffic police presence will be required for the medium term.
110
Kerbside buildouts can also contain a bus stop. In this instance, the dedicated parking sites on either side
of the buildout can be reserved for rickshaw or chingi feeders.
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575. In the future, a formalized connection with the passenger train services will also be
required. However, this will require a significant progress with the city public transport services
before a viable connection can be contemplated.
576.
Figure VI-120: Kerb Buildout – For Parking
Source: Consultant
LL. Transport Sector Roadmap
Summary of Key Actions for Linking the Transport Strategy to the

Roadmap and MTIIP
577. The transition of Sahiwal to a Smart City will be ultimately driven by the successful
compliance with the components listed in the Section above. Driving all of this is a Sector Master
Plan, which has the support of a project champion going forward. Such a champion will need to
possess the political and institutional support to proceed to implementation and an on-going
project management. Whether this is the new Mayor or other person at the District or Provincial
level will be a matter that only time will tell. However, as it has been demonstrated on a number
of previous occasions, the presence of a project champion is a key component of the project
success and ultimately, the transition to a Smart City.
578. For the short term quick win investments, a limited number of initiatives need to be
addressed. These are listed in Annexe 12 of the Interim Report of December 2015, and will form
the basis of improving the conditions in the City, as well as providing valuable learning
experiences for the new Municipal Authority or the Regional Transport Authority111 in the overall
tasks of (i) developing a sustainable Road-map, (ii) implementation and finally (iii) on going
management and maintenance of both the projects and the broader urban transport sector. With
the impending introduction of public transport for the first time, government will require a
capability for contract procurement for cost based public transport services as well as general
maintenance contracts.
579. In this respect, there are many unknown challenges awaiting Sahiwal. For this reason,
the next step needs to include a PPTA which will help government provide the detail required in
the Road-map for the longer term as well as the institutional strengthening needed for
implementation and management is the next important step.
111
Institutional responsibility is yet to be confirmed by government stakeholders.
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Institutional Re-alignment and Strengthening
580. There is a need to strengthen the existing infrastructure. As the Punjab Local
Government Act (PLGA) 2013 encompasses, mostly all the requisite areas and requires
implementation.
581. Institutional capacity building of traffic / road engineering / planning institutions, urban
public transport and traffic police, along with the administration; with an ability to deliver the
urban transport services.
582. There is a need for a unified, consolidated and an independent transportation institution
for the entire city under the Sahiwal City Government / Municipal Corporation with an efficient
capacity to deliver.
583. There is a requirement to consolidate the roads operation, maintenance and

management system under the Sahiwal city government.
584. The provincial departments need to have a more pro-active role as a regulator and a
facilitator to the city governments.
Professional Capacity Building
585. There is an exigency to develop a professional culture in the transport sector and in the
government institutions, by a transparent hiring process, better career enhancement and by
provision of market-based salaries.
586. Also judicious out-sourcing of activities, where feasible can enhance efficiencies.
587. Institutional alignment is very important. There is a need to change the mind-set of the
professionals. There is a requirement for a professional management, award of scholarships for
higher studies and continuous training of the staff in the transport sector.
588. This shall help to develop an effective transportation system.
589. There are institutional and the bureaucratic delays in the system, adversely affecting the
transport sector; which needs to be appropriately addressed.
590. There is a requirement of an administrative, regulatory and financial capacity building of

the Sahiwal City Government / Municipal Corporation.
591. There is a need of professionals at the policy level with the right person for the right job
and clear identification of the responsibility of the assignment.
Routine and Periodic Maintenance of the Transport Infrastructure
592. The maintenance of the transport infrastructure is a major issue. The organization, which
controls the assets, should also maintain them.
MTIIP Sub Projects for Sahiwal Transport Sector
593. The PFE Team, based on the consultations with stakeholders, field visits, team meetings,
feedback and analysis has proposed the following immediate / quick-win projects, which are
required to urgently address acute transport related issues. Many of these issues have caused
major problems to the citizens of Sahiwal in terms of their mobility in form of traffic delays,
causing congestion, pollution, road safety issues and high travel costs. The purpose of the
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proposed projects is to quickly facilitate low cost, safe, efficient and an environmentally friendly
travel in the immediate term.
Immediate / Quick-win Projects
594. The following are the immediate projects, which can be initiated by the city of Sahiwal in
the transport sector:
Bus Route, Improvement / Up-gradation
595. The proposed bus route as shown in Figure VI-121 overleaf starts from G. T. Road
(Pakpattan Chowk - to - Arif Wala Chowk) to Ahmad Murad Road to Nishter Road to Farid Town
Road to DHQ / Civil Hospital Road to Race Course Road to High Street and culminates at
Pakpattan Chowk on Pakpattan Road.
596. The proposed bus route has an approximate length of around 12 km and there are
around proposed 6 designated stops.
597. The consultant has proposed the following items for the improvement / up-gradation of
the bus route; such as:
 Bus Stops,
 Lay-by for Bus Stops,
 Selected sections of roads, with drainage, pedestrian movement, regulatory signage,
marking (road), cat eyes, road pavement construction, curbstones, yellow / black
paint on curbstones.
598. There is a potential to develop Sahiwal Transport Company (STC), with a public-private
partnership (PPP) between the Transport Department; GoPb and the private sector or may be
the Sahiwal Chamber of Commerce and Industry (SCCI) can play a role of a catalyst. There will
be a requirement to provide an incentive by the GoPb; a Bus Station, may be located within the
General Bus Stand (GBS) compound. Also the buses to be provided by the GoPb through bank
financing to the STC, which shall be operated on the intra-urban public transport services within
the city of Sahiwal on designated routes and with fixed stops.
599. The bus operators shall receive a per km operational subsidy as an incentive. There is a
need to encourage the operation of the much required urban public transport operation in the city
of Sahiwal. So the city government should finance for the up-gradation of the bus station, bus
route, including the construction of the designated bus stands, along with the requisite signage,
marking and improvement of the selected road sections as highlighted in the preceding
segments.
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Figure VI-121: Proposed Bus Route for Sahiwal City
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600. The provincial government through the Transport Department should also further
facilitate the bus operators to procure busses, through loans at low interest rates and easy terms.
General Bus Stand, Improvement / Up-gradation
601. The General Bus Stand / terminal is situated on the N-5 (G. T. Road) on the eastern
side at the Arif Wala Chowk and is spread over an area of 1 acre.
the General Bus Stand (GBS), including the STC stand; such as:
 Up-gradation of bus terminals / sheds,

 Bus bays,
 Security cameras,
 Lighting (led w/ solar panel),
 Regulatory signage, marking (road),
 Cat eyes, curb-stone,
 Yellow / black paint on curbstone.
Traffic Signals, Intersections Up-gradation with Signage
603. The consultant has proposed, based on the field visits, stake-holders feed-back and
analysis, the following intersections for traffic signals and up-gradation with signage:
 Pakpattan Chowk - G. T. Road (N-5)

 High Street: Jogi Chowk at Railway Road
 High Street: Chowk at Liaqat Shaheed Road
 High Street: Chowk at Race Course Road - College Road
 Arra Tulla Road Chowk at Naiki Midhali Road Crossing
 Arra Tulla Road Chowk at College Road Crossing
 Ahmad Murad (Harappa) Road Chowk
 Arif Wala Chowk at G. T. Road (N-5)
604. Please see Figure VI-122 below for the location of the proposed traffic signals and
intersections up-gradation with signage.
traffic signals, intersections up-gradation with signage; such as:
 Traffic signals (For a typical intersection - 4 Legged).

 Selected sections of intersection roads, with drainage, pedestrian movement,
regulatory signage, marking (road), cat eyes, street lights, road pavement
construction, curb-stone, yellow / black paint on curb-stone.
Signage on Roads and Lane Marking
606. The consultant has proposed, based on the field visits, stake-holders feed-back and
analysis, the following roads for signage and lane marking:
 G.T. Road (N-5): Pakpattan Chowk - to - Arif Wala Chowk

 Pakpattan Road: Pakpattan Chowk - to - Jogi Chowk (via Pakpattan Fly-over)
 High Street: Jogi Chowk - to - College Road
 Race Course Road: College Road - to - DHQ / Civil Hospital Road
 Arra Tulla Road: Farid Town Road - College Road Crossing - to - Naiki Midhali Road
Crossing
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Figure VI-122: Location of the proposed traffic signals and intersections up-gradation with signage
Page 360
 Farid Town Road: Church Road - Jail Road Crossing - to - College Road Crossing
 Nishter Road: Ahmad Murad Road/ Railway Road Crossing - to - Church Road - Jail
Road Crossing
 College Road: High Street Crossing - to - Farid Town Road Crossing
 Liaqat Shaeed Road: High Street Crossing - to - Sarwar Shaeed Road Crossing
 Church Road: Railway Road Crossing - to - Liaqat Shaeed Road Crossing
 Ahmad Murad (Harappa) Road: Arif Wala Chowk at G. T. Road (N-5) - to - Railway
Road / Nishter Road Crossing
 Railway Road: Ahmad Murad Road - to - Nishter Road Crossing
607. Please see Figure VI-123 overleaf for the location of the proposed signage on roads and
lane marking.
608. The consultant has proposed the following items for the roads highlighted in the
preceding sections, such as:
 Regulatory signage
 Marking (Road)
 Cat eyes
Road-side Parking Up-gradation (Existing)
609. The consultant has proposed, based on the field visits, stake-holders feed-back, needs
and analysis, the up-gradation of the existing road-side parking at different places to be identified
by the city government; with the following broad estimation:
609.1. Estimated site area: 1,700 sq. m (total estimated area divided into more than one
road-side parking spaces at different places).
609.2. Estimated vehicle parking space: 113 (total estimated vehicle parking space
divided into more than one spaces at different places).
610. The consultant has proposed the following items for the road-side / surface parking, such
as:
 Parking bays
 Security cameras
 Lighting (led w/ solar panel)
 Regulatory signage
 Marking (road)
 Cat eyes
 Curbstones
 Yellow / black paint on curbstone
Minimal Concept Design of Immediate Projects
611. The consultant in the proceeding section has given the minimal concept of the immediate
projects, such as:
 General bus station.

 Bus stand.
 Signage on roads and lane marking, including cat eyes.
 Traffic signals and junctions’ up-gradation.
 Road-side parking up-gradation.
 Surface parking.
 Street lighting.
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Figure VI-123: DHQ / Civil Hospital Road: Arra Tulla Road - Naiki Midhali Road Crossing - to - Race Course Road Crossing
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612. Also, see the attached Appendix TRANS 2, for the additional supporting information for
the minimal concept design of the immediate projects.
Proposed Sub-projects
613. In consideration of the detailed site visits, stake-holder consultation, feed-back and
analysis, the Team have also broadly proposed the following sub-projects to strengthen the main
components and to make them sustainable in the long term:
Road Safety and Traffic Awareness Education
614. There is a need for a continuous road safety and traffic awareness education and training
in the schools, and at the grass roots levels. In this context, the concerned traffic police and
transport related institutions, in association with civil society and non-governmental
organizations, should play an active part in creating road safety and traffic awareness. The
necessary education should be imparted by training, information and assistance through print
and the electronic media.
Machinery / Equipment and Logistics
615. The existing machinery and logistics of the roads, and the transport related institutions of
the city government does not cater to the necessary requirements of its users. This is especially
true of routine and periodic in-house maintenance functions for roads and transport sector
infrastructure. These institutions need basic levels of logistics such as road-rollers, compactors,
tractors with trolleys, jeeps and motor cycles.
Office Equipment and Logistics
616. The existing office logistics of roads, and the transport related institutions, are minimal
and do not cater to the essential requirements for the routine planning and design for roads and
the transport sector in general. These institutions need basic levels of office and field related
equipment, and other supporting logistical items such as, printers, plotters, scanners, computers,
GPS and related survey equipment.
Strengthening the Logistics of the City Traffic Police
617. There is a need to strengthen and consolidate the traffic police activities. There is a
requirement for facilities such as: enforcement equipment, centralized computer systems for
traffic monitoring, computerized and on-line issuance of drivers’ licenses and an adequate
number of patrol vehicles. The institution for efficient delivery of Police services requires basic
levels of office and field related equipment and supporting logistics such as printers, plotters,
scanners, computers, GPS, jeeps and motor cycles.
MM. Transport Sector Preliminary Cost Estimates
Summary of Costs
618. As has been discussed in the case of Sahiwal, the preferred business plan has not yet
been considered fully by Government at this PFS stage. A decision on the matter can (and
should) be made only when the full facts of the cost and benefit implications are apparent. For
this reason, the upcoming PPTA will be the vehicle to provide this surety. To assist in this
process, it has been assumed that buses will be procured and operated by the private sector,
under a contract with the relevant Government department. In addition, it has been assumed (for
the purposes of this PFS) that the fares will be collected by the bus company (or a third party)
and Government will provide an additional top up subsidy, at least in the interim and as a
precursor to full cost recovery.
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619. In this context, it is to be noted that at this stage of the process, the fare revenue to be
collected is an unknown quantity, and can only be verified by undertaking the relevant passenger
demand surveys. Such an activity (if required) can be addressed in the next phase (PPTA) of the
preparation of the MCIIP. For the purposes of this PFS, and to provide an early indication for
Government, an average bus operating cost of Rs. 200 per km. has been assumed for Sialkot
which is also to be assumed for Sahiwal. This may be higher/or lower than that paid for
contracted bus services else-where (e.g. Lahore and Islamabad) and will ultimately depend on
demand.
620. In this respect, and assuming an average five-minute headway for a 4-hour peak period,
and a 15 headway at other times, an annual 1.55 million service km. may be required for the
initial bus route. At an average total operating cost (including provision for fleet acquisition) of Rs.
200 per kilometer, this will cost approximately Rs. 310.4 million (US$2.94 million). Should a 30%
cost recovery be achieved, the effective annual subsidy required will be approximately Rs. 217.3
million (US$2.06 million) or approximately Rs.140 per km of service. Should the cost recovery
rise to 60%, the required annual subsidy can be expected to reduce to Rs. 124.2 million
(US$1.177 million) or Rs. 80 per km. of service.
621. For the recommended improvements for rickshaw and qingqi operators, a specific
location plan will need to be developed as part of a city wide route strategy. The plan will provide
a basis for linking the modes together as part of a seamless connectivity arrangement for
Sahiwal public transport passengers. This should be undertaken as part of the development of
the citywide sector Road-map. In this respect, the number and locations of such facilities will
need to be confirmed with additional analysis during the PPTA. However, for the purposes of this
PFS, it is considered that up to 15 feeder sites may be required to support the initial bus route. In
addition, some 12 layup sites may be required across the city.
622. For the rickshaw and quingqi bus feeder sites, a cost of Rs. 500,000 per site (assuming
no land acquisition) could be required for basic signage, kerbside buildouts, pavement upgrade
and passenger waiting facilities. In this context, a capital cost of Rs. 7.5 million (US$0.071million)
may be required. In the case of layup facilities, if an average area of half an acre is required per
site and if this needs to be acquired from the private sector then land acquisition will be required.
As has been assessed for Sahiwal, a cost of up to Rs. 40 million per site (US$0.379 million) can
be anticipated. When development of the site (up to Rs. 9 million – US$0.085 million) is taken
into account, an average of Rs. 49 million (US$0.464 million) could be required. Should this be
the case, a total investment approaching Rs. 588 million (US$5.57 million) could potentially be
required.
623. Regarding future park and ride facilities, should there be up to 10 sites required at an
average size of 1 acre, then at an average acquisition cost of Rs. 800.0 million each (US$7.58
million) and a development cost of up to Rs. 9 million (US$0.085 million) per site (sealed parking,
pedestrian walkway, CCTV, lighting etc.), then a total capital cost approaching Rs. 890 million
(US$8.44 million) could be anticipated. If the land to be acquired is currently developed, the cost
could be much higher. In this respect, it is not possible to estimate with certainty as to whether
the sites will be vacant or occupied. In line with the theory of probability, if it is assumed that half
are already developed, then an additional 50% premium on the capital cost may be required. In
this case, the cost for the park and ride facilities could be in excess of Rs. 1,100 million
(US$10.43 million).
624. In summary, these costs – which are subject to confirmation during the PPTA could
amount to Rs. 1,688 million (US$16.0 million) capital cost and an annual operating subsidy of
between Rs. 125 million (US$1.185 million) and Rs. 220 million (US$2.08 million). With additional
analysis during the PPTA, the business case for these required investments can be clarified for
subsequent decision making by Government. At that stage implementation in whole or in part
can then be considered.
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Budgetary Estimates of Immediate / Quick-win Projects
625. The cost estimates for the immediate/quick-win projects are estimated at USD
$3,609,859 (PKR, 384,806,915). The details of this is highlighted in Table VI-124 below.
626. Appendix TRANS3 provides the details of the costs. Appendix TRANS4 provides the
overall summary unit rate analysis of these projects.
627. The combined total, estimated; minimum cost outlay for the longer term projects (5-10
years) is USD $11,440,000 (PKR, 1,206,814,752); as highlighted in Table VI-125 below.
Table VI-124 Preliminary Budget: Sahiwal – Road and Transport Sector

S. No. Item Cost (PKR) Cost $ (USD)* Description
1 Bus Route 23,646,840 224,160 Sahiwal (Est. Route Length: 33 Km.)
2 General Bus Stand 7,797,670 73,918 Including, Up-gradation of Bus Terminals

/ Sheds, Bus Bays, Security Cameras,
Lighting (LED w/ Solar Panel, Regulatory
Signage, Marking (Road), Cat Eyes,
Curb-stone, Yellow / Black paint on
Curb-stone.
3 Traffic Signals, 303,937,920 2,843,261 Including, Traffic Signals (For a typical
Intersections Up- intersection - 4 Legged), Selected
gradation with Sections, with Control Room, Drainage,
Signage (Selected) Foot-path, Regulatory Signage, Marking
(Road), Cat Eyes, Street Lights, Road
Pavement Construction,, Curb-stone,
Yellow / Black paint on Curb-stone.
4 Signage on Roads 46,250,900 438,435 Including, Regulatory Signage, Marking
and Lane Marking (Road), Cat Eyes.
(Selected)
5 Road-side Parking 3,173,585 30,083 Including, Parking Bays, Security
Up-gradation Cameras, Lighting (LED w/ Solar Panel,
(Existing) Regulatory Signage, Marking (Road),
Cat Eyes, Curb-stone, Yellow / Black
paint on Curb-stone.
GRAND TOTAL 384,806,915 3,609,859
* Exchange Rate: 1 USD: PKR 105.4908 (State Bank of Pakistan, Oct. 29, 15)
Table VI-125 Preliminary Budget: Sahiwal – Road and Transport Sector

(Long Term 5 – 15 Years)
Long Term Projects

S. No. Item Cost (PKR) Cost (USD) * Description
1 Bus Route 34,811,964 330,000 Additional New Routes to be
Identified.
2 General Bus Stand 11,603,988 110,000 Including, Up-gradation of Bus
Terminals / Sheds, Bus Bays, Security
Cameras, Lighting (LED w/ Solar
Panel, Regulatory Signage, Marking
(Road), Cat Eyes, Curb-stone, Yellow
/ Black paint on Curb-stone.
3 Traffic Signals, 453,610,440 4,300,000 Including, Traffic Signals (For a typical
Intersections Up- intersection - 4 Legged), Selected
gradation with Sections, with Control Room,
Signage (Selected) Drainage, Foot-path, Regulatory
Signage, Marking (Road), Cat Eyes,
Street Lights, Road Pavement
Construction,, Curb-stone, Yellow /
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Black paint on Curb-stone.

4 Signage on Roads 68,569,020 650,000 Including, Regulatory Signage,
and Lane Marking Marking (Road), Cat Eyes.
(Selected)
5 Road-side Parking 5,274,540 50,000 Including, Parking Bays, Security
Up-gradation Cameras, Lighting (LED w/ Solar
(Existing) Panel, Regulatory Signage, Marking
(Road), Cat Eyes, Curb-stone, Yellow
/ Black paint on Curb-stone.
6 Two - Under-passes 632,944,800 6,000,000 At, locations to be defined.
/ Fly overs
(Including selected
section of approach
roads).
GRAND TOTAL 1,206,814,752 11,440,000
Preliminary Cost Estimates of Proposed Sub-projects
628. The preliminary cost estimates of the proposed sub-projects for road safety and traffic
awareness education component is around USD $94,795 (PKR, 10,000,000) as highlighted in
Table VI-126.
629. The preliminary cost estimates of the proposed sub-projects for machinery / equipment
and logistics (roads and transport related departments) is around USD $247,415 (PKR,
26,100,000). For details see Table VI-126 below.
630. The preliminary cost estimates of the proposed sub-projects for the office logistics (roads
and transport related departments) is around USD $28,723 (PKR, 3,030,000) as also highlighted
in Table VI-126.
631. Also the preliminary cost estimates of proposed sub-projects for the office logistics
(Traffic Police) is around USD $247,415 (PKR, 10,080,000). For details see Table VI-126.
632. The combined total preliminary cost estimates of the proposed sub-projects are around
USD $466,486 (PKR, 49,210,000).
633. Appendix Trans5 provides details of the overall summary unit rate analysis for the
preliminary cost estimates of the proposed sub-projects.
Table VI-126 Preliminary Cost Estimates of Proposed Sub-projects:

Sahiwal – Road and Transport Sector

S. No. Item Cost (PKR) Cost (USD) * Description
1 Road Safety & Traffic Imparting the necessary education
Awareness Education through training, information and
assistance through the print and the
10,000,000 94,795 electronic media. Also road safety and
traffic awareness education and
training in the educational institutions
and at the grass roots level.
2 Machinery / Including, compactor, tractor with
Equipment & Logistics trolley, jeeps and motor-cycles.
26,100,000 247,415
((Roads & Transport
Related Depts.)
3 Office Logistics Including, printers, plotters, scanners,
((Roads & Transport 3,030,000 28,723 computers, GPS and survey equipment
Related Depts.) (total station).
4 Office Logistics 10,080,000 95,553 Including, printers, plotters, scanners,
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(Traffic Police) computers, GPS, jeeps and

motorcycles.
GRAND TOTAL 49,210,000 466,486
Summary of Costs
634. While the ultimate business model has yet to be confirmed by the government for the
purposes of this PFS, it has been assumed that buses will be procured and operated by the
private sector, under a contract with the relevant government department. In addition, it has been
assumed (for the purposes of this PFS) that the bus company will collect fares and Government
will provide an additional ‘top up’ subsidy.
635. Naturally at this stage of the process, the level of fares to be collected is an unknown
quantity and can only be verified with the relevant passenger demand surveys. Such an activity
(if required) can be addressed in the next phase (PPTA) of the preparation of the MCIIP. For
now, an average cost of Rs. 200 per Km has been assumed for Sahiwal. This may be higher
than that paid for contracted bus services elsewhere (e.g. Lahore) and will ultimately depend on
the demand.
636. In this respect, and assuming an average five-minute headway for a 4-hour peak period
and a 15 headway at other times, an annual 0.5344 million service Km would be required. At an
average total operating cost (including provision for fleet acquisition) of Rs. 200 per kilometer,
this will cost approximately Rs. 106.89 million (USD $1.01million). Should a 30% cost recovery
be achieved, the effective annual subsidy required will be approximately Rs. 74.8 million (USD
$0.71million) or approximately Rs.140 per Km of service. Should the cost recovery rise to 60%,
the required annual subsidy can be expected to reduce to Rs. 42.75million (USD $0.405million)
or Rs. 80per Km of service.
637. In relation to the recommended improvements for rickshaw and chingi operators, a
specific location plan will need to be developed as part of a city wide route strategy. This should
be undertaken as part of the development of the city wide sector Master Plan. In this respect, the
number and locations of such facilities will need to be confirmed with additional analysis during
the PPTA. However, for the purposes of this PFS, it is considered that up to 6 feeder sites may
be required to support the initial bus route. In addition, some 5-6 layup sites may be required
across the city.
638. For the rickshaw and chingi bus feeder sites, a cost of Rs. 500,000 per site (assuming no
land acquisition) could be required for basic signage, kerb side build outs, pavement upgrades
and passenger waiting facilities. In this context, a capital cost of Rs. 3 million (USD $0.028
million) may be required. In the case of layup facilities, an average area of half an acre is likely to
be required per site. If government land is not available, land acquisition will be required (and
costs will rise accordingly). Based on local advice, a cost of Rs. 40 million per site (USD $0.379
million) can be anticipated. When development of the site (up to Rs. 9 million or USD
$0.085million) is taken into account, an average of Rs. 49 million (USD $0.464 million) could be
required. Should this be the case, a total investment approaching Rs. 294 million (USD $ 2.787
million) could be required.
639. These costs which are subject to confirmation during the PPTA could amount to Rs. 297
million (USD $ 2.815 million) capital cost and an annual operating subsidies of between Rs.
43million (USD $ 0.408 million) and Rs. 75 million (USD $0.711 million). With additional analysis
during the PPTA, the business case for these required investments can be clarified for
subsequent decision making by Government. At that stage implementation in whole or in part
can then be considered.
640. These figures have been incorporated into the financial analyses included in Chapter VIII
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Figure VI-127: MTIIP Road-map Program Sahiwal
Page 368
Potential Sources of Funding
641. Clearly, Sahiwal needs to invest a substantial amount to ready its city to meet the
challenges described in Chapter V. Construction and development of new facilities and proper
maintenance of the existing roads, streets, public transport and other allied infrastructure is an
imperative. The following domains can be a potential sources of funding for some projects:
642. Introduce a pilot project of resource generation through community participation for area-
wide concessions through privatized and progressive commercialization for construction of roads
and streets. The concept of adopt a road needs further consideration. However, this could result
in improved street signage, improved layouts of roundabouts / intersection up-gradation,
roadside horticulture and other such improvements in roads and transport related infrastructure
through non city/state funding and creative sponsorships. Infrastructure could be dedicated to
whomsoever supports or sponsors it and its maintenance and oversight could also be the
sponsor’s responsibility.
642.1. The Sahiwal Municipal Corporation should devise a properly worked-out concept
for Impact Fees. There is a need for a share of building plan fees, especially from
commercial and institutional developments, to be dedicated for investment in
transport and traffic. A certain agreed share for the roads and transport related
infrastructure should originate from new development.
642.2. There is a justification to introduce a well-planned and properly implemented

betterment fee in key areas. Improvements to road and transport infrastructure in
these areas could be offset (even partially) through such betterment fees.
642.3. The city government of Sahiwal should introduce extensive and properly planned
citywide paid parking facilities. This needs to be complemented by enforcement
and a focus on eradicating corrupt practices by parking control officers.
642.4. The Sahiwal Municipal Corporation must organize resource generation through
properly planned citywide roadside advertisements.
642.5. The public transport bus stations need to be properly regulated and monitored, as
there are reasonable potential sources of funding. At present, these are not
tapped due to leakage and poor management.
642.6. The Sahiwal Municipal Corporation should get an appropriate share of the token /
registration fee of vehicles in the Sahiwal District.
642.7. There is a justification for the Sahiwal Municipal Corporation to get a certain
share of the transport fee on route permits.
642.8. There is a justification to levy a small surcharge of say around 1% on sale of

high-speed diesel and petrol, within the Sahiwal Municipal Corporation area.
Conclusions and Next Steps

643. As is the case with Sialkot, the transition to a Smart City status for Sahiwal as proposed
by the strategy in this Chapter will ultimately be driven by the successful compliance with the
components of a Smart City. From the discussion above (and elsewhere in this Report), it is
readily apparent that a whole of city Master Plan for the urban transport sector is urgently
required. The documentation of the Road-map, coupled with the securing of a Master Plan
champion will help propel Sahiwal into a Smart City. The future Road-map (required to deliver
the Master Plan) will need to have the relevant institutional responsibilities and influence, to
enable the communication and reform strategies to be based on the principle of compliance
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rather than the familiar ‘enforcement’ mantra. Part of this capability will be that of contract
procurement for cost based public transport services, as well as general maintenance contracts.
644. For the short term quick win investments, there have been a number of limited and
focused investments listed in Annex 12 of the Interim Report. For many of these, the initial pilot
corridor of the general bus stand to Pasrur will be a key focus for the quick wins. These include
an upgrading of the general bus stand which will act as one terminus for the route, improved
pedestrian facilities, signage (roadside and pavement markings), new bus stops and signalized
intersections. These will provide a starting point for improvements to the sector on (eventually) a
citywide basis. As is the case with Sahiwal, the experience gained and the lessons learned from
these initial quick wins would be of great benefit in developing improved procedures for project
implementation and management as the Master Plan is rolled out and the status of a Smart City
becomes a reality.
645. For the Master Plan, it is anticipated that a wider perspective may need to be adopted,
where additional road lanes are added to the urban network. With the broad urban road network
of Sahiwal being a radial arterial one, it essentially requires cross-city travel to pass through or
nearby the city center. The resultant traffic congestion is an ongoing problem for circulation within
the city. In some cities, this has been addressed through the ring road approach where
successive ring roads (say at 2, 5 and 10km.) provide a by-pass of the congested inner city area.
Subject to the necessary analysis, such a concept may provide relief for Sahiwal in the future.
However, this will need to be analyzed in depth before a decision can be made on the matter. It
is provided here simply as a concept to consider in the future.
646. In addition, as the number of signalized intersections grows, the number of bus priority
measures expands and quality pedestrian facilities become the norm (and include pedestrian
malls), on going remote monitoring and management will be required. In this respect, traffic
control rooms are created to assist in the task of encouraging compliance across the city.
647. In this respect, and despite the presence of a proactive and committed Chamber of
Commerce, there are many challenges awaiting Sahiwal in the urban transport sector. For this
reason, the next step should involve a PPTA, which will help Government generate a greater
understanding of the design and management obligations required during the roll out of the
Master Plan for the longer term. In this regard, the institutional strengthening, as an integral part
of the Master Plan preparation is the next step to be taken. The program as outlined in the
flowchart and in the transport tables for this Section have been provided for this purpose. This
program focuses on implementing the investments listed in Annexure 12 of the Interim Report as
a first priority. In subsequent years, when the Master plan has been prepared and approved for
implementation then the investments discussed above can be considered.
Institutional Delivery Mechanisms

NN. Sector Strategy – Institutional Delivery Mechanisms
Integrating Institutional Development into the PICIIP

648. Institutional capacity - human, technical and financial - is the foundation of sustainability
and the key to developing Sahiwal, Sialkot and all Punjab cities into the inclusive, safe, green,
livable, resilient, sustainable and competitive cities that they strive to be. Capacity is determined
by the overall structure of responsible institutions and their working relationships; the internal
structures of the individual institutions; the human, technical and financial resources available to
those institutions; and the degree to which their roles and responsibilities are fully
institutionalized and operationalized.
649. In all sectors and at all levels, including most importantly the overall coordination and
integration of those sectors, it is the institutions that determine success or failure based on how
Page 370
well they create and integrate policies, prepare strategies, develop detailed plans, implement
those plans and related projects, and then effectively manage those outputs to achieve the
targeted outcomes. Two cross-cutting imperatives that have traditionally not been given
adequate attention, but are now essential institutional roles critical to sustainable urban
development, are comprehensive stakeholder engagement and climate change risk
management. The importance of stakeholder participation to define appropriate investments and
build ownership is raised throughout this Report, as is the need to overlay measures to address
climate change risks, vulnerability and mitigating actions on all programs and projects.
Investment in institutional development is a priority.
650. Figure VI-128 illustrates these important linkages. Detailed institutional requirements are
further discussed in each technical section.
Figure VI-128: Institutional Integration into the PICIIP
Sahiwal
Page 371
OO. Sector Roadmap – Institutional Delivery Mechanisms

Benchmarking
651. Benchmarking is a tool that supports any continuing drive to achieve improvement in
service delivery by measuring changes in organizational outcomes and outputs arising from
improved organizational performance in service delivery. In this way benchmarking enables an
organization such as district or Tehsil local government to measure improvement over time. This
is done by comparing performance at any given point against either a) earlier performance as
identified in a baseline survey of key indicators or b) performance of other organizations involved
in a similar set of activities or services.
652. Once current levels of performance are identified a benchmarking exercise will enable
the organization to identify strategies for improving performance and milestones for tracking
progress. Benchmarking will help an organization to identify current performance and
comparative performance in relation to other organizations involved in similar activities. It will
assist in defining strategic actions necessary to deliver required levels of performance and
measured in relation to specific indicators of outcome and output.
Good local governance in Sahiwal
653. There are a number of critical elements to improving local governance in Sahiwal as
identified in the assessment. Based on our assessment of organizational strategies, structure,
staffing and systems at Tehsil level, the study has revealed a number of critical elements of
governance that require improvement. These can be summarized as follows:
653.1. Greater responsiveness of local government to citizens needs and demands

through enhanced public involvement and participation in planning, budgeting and
decision-making. This will require an improvement in participatory planning and
implementation of services.
653.2. Greater efficiency and effectiveness of services by maximizing use of resources

to deliver well-functioning services that increase the overall level of public satisfaction.
This will require an improvement in internal management systems designed to monitor
inputs against clearly established and agreed outputs.
653.3. Greater transparency and accountability to the public by increasing the level of
knowledge and awareness of the actual coverage, quality and cost of service delivery in
relation to what was planned and intended. This will require the establishment of
mechanisms to improve reporting on costs and achievements against targets as well as
mechanisms to respond to public feedback and grievances.
Organizational change for good governance in Sahiwal
654. Prior to benchmarking changes in performance it is useful to identify the main dimensions
of` change that need to be addressed in order to bring about sustainable improvements in
services. The main dimensions of change management that impact organizational performance
at Tehsil level in Sahiwal as indicated and would appear to require a focus on the following:
654.1. Improving Customer Relations – Measured against improved customer

satisfaction with service delivery
654.2. Improving Internal Systems Management – Measured against improved

operation of internal management processes (planning, budgeting, service
implementation, monitoring and maintenance)
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654.3. Improving Human Resource Management – Measured against enhanced

competency, knowledge and skills of staff
655. There is a strong correlation between these three dimensions of change and improved
performance, and overall organizational performance improvement will be substantially reduced
if change is absent in any one or more of the above dimensions. Table VI-129 outlines a
framework for benchmarking organizational outcomes and outputs arising from internal
organizational changes for each of the main dimensions of good (local) governance identified for
improvement in Sahiwal.
Table VI-129: Organizational Benchmarking in Municipal Corporation
KEY OBJECTIVES OUTCOME BENCHMARKS OUTPUT BENCHMARKS
Improved Improved targeting of services in line New planning & budgeting

responsiveness of with key deficiencies in service procedures & guidelines being
Sahiwal Municipal coverage, volume and quality followed
Corporation Annual Development Planning (ADP) Maps prepared identifying key service
process reflects greater citizen deficiencies
participation in identification of local Maps prepared identifying location of
needs and project selection poor and vulnerable groups
Greater representation of poor and Mechanisms in place for citizen
vulnerable groups in participatory monitoring of works and services
planning process Grievances and complaints procedure
% Increase in new schemes operational
covering identified deficiencies and
poor groups
KEY OBJECTIVES OUTCOME BENCHMARKS OUTPUT BENCHMARKS

Improved efficiency and Increased % of citizens covered by % Increase in job specifications for
effectiveness of Sahiwal municipal corporation services key posts
Municipal Corporation Increased % of citizens satisfied with % Reduction in absenteeism
service delivery municipal corporation services % Improvement in staff time keeping
Increased municipal corporation Clear performance targets
budget allocation for urban services established for key staff
Increased municipal corporation Regular monthly monitoring of
budget allocation for maintenance of outputs & achievements against
services targets
Mechanisms in place to reward/
commend staff for good performance
Budget allocation for staff training
% Increase in no of staff having
received training
Improved accountability Increased awareness of citizens of ADP proposals disseminated
& transparency of ADP proposals and budgets plans & Annual municipal corporation budgets
Sahiwal Municipal resources (ADP, CLP, TR & own published
Corporation operations revenues) Increased % of projects/ schemes
Increased transparency of project displaying information on project
cost and standards costs and specifications
Improved access to municipal
corporation office and services
PP. New Approaches to Organizations and Service Delivery

656. As preceding sections of the report have highlighted there is an urgent need to re-think
the way local government is currently configured and ask the question whether they are fit for
purpose and bring value for money to consumers, customers and citizens in Sahiwal. This report
makes the case for introducing a new kind of public management and approach to local
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governance and urban service delivery. The following section discusses options for building on
the excellent work undertaken by the Government of Punjab in promoting and launching the idea
of utility companies to deliver solid waste and water supply services. At present water,
wastewater, solid waste management functions rest with the Sahiwal TMA and are likely to be
moved over to the Municipal Corporation once established.
657. Significant capital investments are proposed to extend coverage, upgrade decaying
networks, develop wastewater treatment capacity, and sanitary landfill. However, many
performance weaknesses will not be remedied through extensive capital projects alone. Making
the capital investments sustainable requires effective accountability mechanisms and
governance systems as well as operations and maintenance services. There is a need for a
professionalized arrangement for managing water supply, solid waste and wastewater systems in
Sahiwal. Efficiency is the key issue in the assessment of existing water and wastewater
institutions in Sahiwal since it has been argued that private sector involvement promotes
efficiency. There are many reasons for current inefficiencies in the sector, poor governance is
one of them and besets the water supply and solid waste sector, particularly in service coverage,
(especially among the poor), prevalence of water vendors, intermittent supply, collection
efficiency, water accountability, Non-Revenue Water (NRW), the continued pollution of water
bodies in the city and sanitary disposal of waste. Key causes and impact of poor governance are
summarized in the governance problem tree depicted in Figure VI-130.
Figure VI-130 Governance Problem Tree

Poor service delivery,
High NRW, low water Poor Infrastructure
deteriorating environment Low financial
accountability, low construction,
IMPACTS and quality of life, low accountability
supply and service maintenance and
consumer awareness and Low tariffs
coverage operations
expectation
CORE PROBLEM POOR GOVERNANCE
Capacity and Rigid HR

Strategic Management Political, Regulatory and
CAUSES Constraints
Policies and Procedure
Autonomy constrains
Institutional Constraints
Constraints
Lack of strategic direction – Political resistance to tariff

Lack of technical capacity in Lack of specialized institution
focus is in on day to day and user fee and little for urban water and waste
existing staff
business political support for cost sector
recovery
Standard Organizational
Disconnect between planning, Structure - no provision for Low tariff and revenue
construction and operations sector specific skill and man Week regulatory mechanism collection, flat charging
power – government is owner, system for services.
regulator, and operator
Lack of information system
for effective planning and No incentive for capacity Week performance
decision making development – not linked to Pressure and interference in management and
career and performance development schemes and accountability mechanism
Week coordination between management budget preparation
policy maker and Service Weak sector policy and
provider Diploma engineers prepare performance targets
and supervise scheme while Formal and informal control
senior engineers restricted to over appointments, Outdated rules, regulation,
Weak accountability clerical tasks design and codes
promotions and transfers
mechanism and enforcement
Difficulty to recruit suitable
staff on standardised pay Lack of planning culture
Political involvement in
Operations and Management scale and benefits
technical matters
Lacks Priority Lack of clear division of
Weak Knowledge about responsibilities among various
rules, regulation, codes and service providers
Insufficient / poor regulatory Vested interest in status quo
current best practices
control Rent seeking behaviour/
culture to overlook design and
standards
658. One of the most important considerations in the operation of water and wastewater
infrastructure is the autonomy and authority of the utility to manage its business affairs efficiently
and competently, without fear of political recriminations. Utility services, worldwide cannot
always avoid political interference but there will be a need to discourage elected and
bureaucratic officials becoming involved in the day to day operations to the extent that they begin
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to exert control over management, or exercise patronage over staffing in the company.
659. As discussed in earlier sections of the report, under current municipal arrangements in
Sahiwal, the management of human resources is weak and there is a lack of skilled staff, clear
job descriptions are non-existent and promotions are based on age, length of service and
personal connections and are generally not on merit. As a result, there are few incentives for
staff to perform well. Recruitment is also slow and with recruitment bans imposed by provincial
government a regular feature. The net effect is vacant positions and overall lethargy in
organizational performance. Key goals and objectives are not met and poor services the
consequence. The TMA have very limited qualified technical and engineering professionals and
even their skills largely go untapped in the climate of low autonomy, accountability transparency
and indifferent management. O&M is a poor relation to development in the absence of incentives
and low tariffs do not help. Operational staff can often collude with customers to create their own
incentives.
660. Non-Revenue Water (NRW), intermittent water supply and low service coverage are
direct results of the lack of autonomy and accountability and are indications of poor governance.
Part of the governance problem lies in having a single entity as owner, regulator, and operator.
Self-regulation can work only in a mature and disciplined society where governance frameworks
are in-grained into society and where the principles of separation of powers are upheld.
Changing the way these are services are delivered and the very organizations tasked with the
responsibility to deliver will be essential. A focus on customers, citizens and public service
management is needed to reverse poor governance in urban service provision. A clear
framework for citizens to have their say in how their services are provided will go some way to
redressing the balance. Government must ‘steer’ and not ‘row’ is the approach that should be
adopted and strikes at the very heart of the question about the changing role of government in
service provision.
661. Appropriate legislation and regulation is necessary but an insufficient panacea, this must
be coupled with ‘enforcement’. Policy transparency is fundamental and civil society must hold
government accountable for implementing policies successfully and unsuccessfully. The water
and wastewater section of the TMA, on the other hand, needs autonomy, accountability,
incentives, and the ability to perform. Key contributors and impacts of improved governance are
summarized in Figure VI-131.
Figure VI-131: Governance Solution Tree

Operation and
Better environment

cost recovery and
improvement
QQ. Institutional Options for Water and Sanitation Management in

Sahiwal
662. To have an efficient water supply and wastewater institution in Sahiwal, it has to be
managed as well as any commercial business organization. The water/wastewater institution has
to escape from a cycle of low revenue leading to shortage of consumables and equipment and
low remuneration of staff which leads to poor standards of service leading to even lower
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collection rates for tariffs and stronger resistance to tariff increases. There are certain key issues
that need to be considered for the organizational design of a water and sanitation institution in
Sahiwal.
663. The first is focused on integrating or separating the water supply, sanitation and
sewerage/wastewater functions and whether this should be managed within the context of a
geographically defined area or whether the utility should simply be focused on an urban or rural
district. The second issue considers centralization or decentralization. Centralization provides
absolute control, ensuring adherence to policies and enabling the use of common standards.
However, decentralization provides flexibility to meet changing needs at the local level. Within
the decentralization argument is the specific question as to whether urban water supply and
wastewater should be a sub-section of the TMA/Municipal Corporation or whether it should be a
separate utility.
664. What makes water supply different from other businesses is that abstracting treating and
distributing large volumes of potable water will almost certainly remain a monopoly institution
under the influence or regulation of government. However, within that monopoly provision there
is a whole spectrum of choice. Some activities could be outsourced to allow the water
supply/wastewater section of TMA to focus on its core business activities, provided that
outsourcing yields appropriate efficiency gains that benefit both the utility and the customers. The
outsourced activities may include billing and collection, vehicle maintenance, meter reading (if
installed in future), tube well maintenance, service installation, repair of leaks in the distribution
system, treatment plant operation, security services, and cleaning services. Similarly, some
activities of solid waste could also be outsourced which may include secondary collection, billing
and collection, vehicle maintenance, operation and management of landfill and segregation.
665. Another possibility is that the TMA (or its water/wastewater section) should be seen as
water wholesalers only. Licensed vendors or community associations become more formally
involved as water retailers - taking responsibility for greater or smaller parts of the distribution
system, as they are able. A single 'community water meter' simplifies the institution's work with a
water community taking responsibility for all losses, illegal connections and tariff collection
beyond that point. Within this whole approach is the assumption that consumers will pay a
sufficient tariff for financial viability of the institution and/or that where there are subsidies they
are deliberate and measurable rather than simply the result of poor management.
666. Private sector participation (PSP) is in vogue and also very political. The softest forms of
genuine PSP may be a service contract and a management contract, in that order. Build–
operate–transfer (BOT) and build–operate–own (BOO) arrangements for the production of
treated water in bulk for a utility have been popular. The issue here is the take-or-pay provision,
which must be agreed on so that the utility and the private contractor both get what they want. In
Asia, only one of the four concessions in Manila and Jakarta might claim success in PSP. Still,
governments should send clear signals to prospective private operators through policies that
unequivocally state the government’s position on the use of PSP in the water supply sector. If
PSP is involved, a regulator must first be appointed. The creation of a new water utility agency/or
authority like WASA is another possible option. However, this approach fails to instill confidence
based on the experience of the Punjab WASAs where dependency, political interference and
fiscal insolvency characterize their existence. The Punjab government is already proposing
institutional reform to transform WASAs into independent entities to be governed by an
independent Board of Directors112.
667. A major role of Government is to establish opportunities, effective incentives and

appropriate policies to promote the mobilization of private resources in the course of
development. The process of private sector involvement should not be subject to strong
pressures towards fast privatization of distribution systems but to experiment with two or three
pilot programs before moving forward. Following from this, the 'revolutionary' solution currently
112
Punjab Urban Development Sector Plan 2018 – Enabling cities to be engines of growth
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fashionable is 'privatization' - selling off the entire water sector to private individuals and financial
institutions. An evolutionary solution is to introduce an institutional development program, moving
towards greater financial and managerial autonomy whilst remaining under government
ownership. These processes can ensure a steadier progress that may avoid big social problems
and give better resources allocation although they will also imply higher tariffs reflecting the real
cost of water services.
Option 1: Separate Utilities for Water and Wastewater and for Solid
Waste
668. Considering the ‘evolutionary’ approach discussed above, ring-fencing the utility by
making it a state owned company is a first step towards autonomy. This may be achieved
through the creation of a new body, the Sahiwal Water and Sanitation Company, under Section
42 of the Companies Ordinance 1984. This body would have full responsibility to construct,
operate and maintain water and sanitation services in the declared urban areas of Sahiwal City.
This practice is already happening in Pakistan and examples include the solid waste
management companies in Sialkot and Lahore.
669. With reference to solid waste management, a separate Sahiwal Waste Management
Company (SWMC) has already been proposed at regional/divisional level in Sahiwal Division.
The Tehsil Municipal Administrations of whole division would share their SWM resources with
this regional entity which will take responsibility for waste management on the regional scale or
for the whole Sahiwal Division.
670. The current Tehsil Municipal Administration of Sahiwal can entrust its water and
sanitation function to a proposed Sahiwal Water and Sanitation Company under sub clause 2 of
clause 54 of the Punjab Local Government Ordinance 2001, which states that TMA has power to:
670.1. assign or contract out, on such terms and conditions as are approved by the
Tehsil Council and after inviting public objections, any of its functions to any public-
private, public or private organization:
 Provided that responsibility for discharge of such functions shall continue

to vest with the Tehsil Municipal Administration.
670.2. on such terms and conditions as are mutually agreed, transfer its functions or
responsibilities with regard to providing municipal services to the Union Administration or
Village Council:
 Provided that no function or responsibility shall be transferred without

allocation of corresponding resources and funds:
 Provided further that the responsibility to regulate and monitor such

functions and services shall remain with the Tehsil Municipal
Administration.
670.3. by an agreement and on such terms and conditions as may be mutually agreed,
perform any function of the Tehsil Municipal Administration;
670.4. with funds raised through voluntary contributions or external grant, but without
recourse to additional enhanced taxation, user charges or fees or recourse to any other
sources of public funds and without incurring debt of any nature, undertake any
development project;
670.5. with the approval of the Government and concerned regulatory authorities of the
Federal Government and Provincial Government, set-up, acquire, manage and operate
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any commercial activity on a self-financing basis with no liability to the public exchequer;
and
670.6. set-up a corporate body to perform any of its functions, singly or jointly with other
public or private bodies:
 Provided that responsibility for discharge of such functions shall continue

to vest with the Tehsil Municipal Administration.
671. Similarly, the Municipal Corporation of Sahiwal, the successor of TMA Sahiwal, can also
entrust its water and sanitation function to a proposed Sahiwal Water and Sanitation Company
under the sub clause 2 of clause 87 of The Punjab Local Government Act 2013. The sub clause
reads as ‘The Metropolitan Corporation and a Municipal Corporation may entrust any of its
functions to a person, an authority, agency or company through a contractual arrangement, on
such terms and conditions as may be prescribed.
672. The proposed Sahiwal Water and Sanitation Company would have its own senior staff
and would take over operational staff from the TMA. Figure VI-132 provides an outline of the
technical and management staff required for a Sahiwal Water and Sanitation Company. The
proposed company would be aligned to the Tehsil Municipal Administration Sahiwal or its
successor the Municipal Corporation Sahiwal. As discussed above the new Punjab Local
Government Act 2013 has a provision in this regard and the company would be an executive arm
of TMA Sahiwal or its successor the Sahiwal Municipal Corporation. The company may extend
its operation in other geographical areas by entering into a contract with neighboring Municipal
Committees and the District Council of Sahiwal. The Memorandum of Association (MoA) and
Articles of Association should have this provision where company can expand its operations in
other geographical areas.
673. The technical and professional management staff would be competitively recruited from
the market and tasked to improve service delivery. Incentives would be better aligned with
performance and designed to reward results. The finances of Sahiwal Water and Sanitation
(SWSC) would be ring-fenced, rigorously audited, and not intermixed with TMA/Municipal
Corporation’s financial accounts, thus allowing management to better track service delivery costs
and revenues.
Company Management
674. The company would be governed by an independent Board of Directors (BoD) to provide
strategic and policy guidance and to oversee performance of the utility and its management. The
autonomous board will also act as a buffer between the provincial government, Municipal
Corporation council and the company. Indicative board composition is mentioned below which
will follow 60/40 ratio – 60% members from private sector and 40% from elected and government
officials;
Chairman (BoD) From the private sector – management experience
Director Mayor Municipal Corporation Sahiwal
Director From Local Government and Community Development
Department
Director From the Urban Unit, Lahore
Director From the private sector – financial experience
Director From private sector – legal experience
Director From the private sector – technical focus WATSAN
Director From Civil Society
Non-Voting Member Company Secretary Sahiwal Water and Sanitation Company
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Figure VI-132: Proposed Organogram of Sahiwal Water and Sanitation Company

Sahiwal Water and Sanitation Sahiwal Water and Sanitation
Company Company

(1)
CEO Sahiwal Water and
Sanitation Company
(1)
(1)
Manager Finance General Manager Operations General Manager Planning and Assistant Manager Customer
Manager MIS / IT
Manager HR & Admin Care and Complaints
(1) and Services Construction (1)
(1) (1)
(1) (1)
Help Line / Complaint

Procurement and Attendant (4) Assistant Manager SKADA
Admin and HR Officer Manager Water Supply Manager Wastewater Manager Planning & Design
Contract Specialist (1)
(2) (1) (1) (1)
(1) Community/Social
Mobilizer
Communication Officer Budget and Accounts Manager Construction and (1) Network Administrator
(1) Officer Assistant Manager Assistant Manager Suprvison (1)
(2) Operations Operations (1)
(2) (2)
Assistant Manager Billing Assistant Manager Asset Database Administrator
and Collection Assistant Manager Water Assistant Manager Management (1)
(1) Production and Lab Wastewater Treatment (1)
(1) (1)
Technical Staff (06) GIS Specialist

(1)
Operational Staff (15)
Management/Admin Staff (17) Research Officer
(1)
Total (38)
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675. Chairman BoD will hail from the private sector. One term of the Board of Directors would
be for three years. No person shall be appointed as a director if he is ineligible to hold office of
director of a company under section 187 of the Companies Ordinance 1984. No member /
person shall hold more than one office in the company, such as those of Chief Executive /
director or company secretary. The chairman of the Board shall preside at all meetings of the
Board but, if at any meeting the chairman is not present within them minutes after the time
appointed for holding the same, the directors present many choose one of their members to be
chairman of the meeting.
Option 2: Combined Utility for the management of water supply,

wastewater, and solid waste in Sahiwal
676. An alternate approach to improve the management of municipal services in Sahiwal is to
create an Urban Service Company for urban water supply, wastewater, and solid waste, under
the section 42 of the Companies Ordinance 1984. This option is based on the premise of ‘one
city – one utility’ to address institutional fragmentation, cross jurisdictional issues of water,
wastewater and solid waste. The proposed single company will also achieve economies of scale
and share the overhead costs of support function (Management, HR, Finance etc.). With the
separate utility for water, wastewater and solid waste, the indicative HR is 78 and with one utility
it comes down to 49 (Table VI-133).
Table VI-133: HR Comparison of separate and combine utility

Sahiwal
Category
SWMC SWSC SUSC
1 Water and Wastewater 21 9
2 Solid Waste 13 11
3 Shared Technical Positions 13
4 Support Function (Management, Admin, Finance etc.)
MD/CEO 1 1 1
Company Secretary 1 1 1
Admin & HR 5 3 3
Finance 5 4 3
Procurement and Contracts 5 1 1
Asset Management 1* ** **
MIS / IT 2 4 4
Communication 2 1 1
Marketing 2
Audit 1 1
Other 3 1 1
26 17 16
Individual Utility Total 40 38 49
Overall Total 78 49
Note * It is not in the original PC-I prepared for Sahiwal Waste Management company
** Asset management position is mentioned in Shared Technical Position pool
677. A single Urban Services Company will also help the TMA/Municipal Corporation, local
government department and the urban unit in coordinating and regulating performance and
services. North Sindh Urban Services Corporation (NSUSC) and Water and Sanitation Services
Peshawar (WSSP) are examples of similar initiatives in Pakistan where urban water supply,
wastewater, and solid waste operations are under a single utility. However, water, wastewater,
and solid waste functions will clearly be separated in the company structure, a separate General
Manger will be responsible for planning and operations of water wastewater and solid waste
respectively. Figure VI-134 elaborates the Sahiwal Urban Service Company’s organization
structure.
Page 380
Figure VI-134: Proposed Organogram of Sahiwal Urban Services Company

Sahiwal Urban Service Company Sahiwal Urban Service Company

(1)
CEO Sahiwal Urban Service
Company
(1)
(1)
Manager Planning and General Manager Water and

Manager HR & Admin General Manager Solid Waste
Construction Wastewater Manager Finance
(1) (1)
(1) (1) (1)
Assistant Manager HR
AM Planning and Manager Customer Care and Manager Planning Solid Assistant Manager Finance
(1) Manager Operations Water Manager Operations Manager Operations Solid
Constructions - Water Communication Waste and Accounts
and Wastewater (1) Supply (1) Wastewater (1) Waste (1)
(1) (1) (1)
Assistant Manager Admin
AM Planning and
(1) Assistant Manager Billing
Constructions -Solid Assistant Manager
Assistant Manager Manager Workshop Assistant Manager and Collection
Waste (1) Operations
Operations (2) Assistant Manager (1) Operations (2) (1)
(2)
Customer Care (1)
Assistant Manager Asset
Manager IT Management Assistant Manager Procurement and
Assistant Manager Water Assistant Manager
(1) (1) Wastewater Treatment (1) Help Line / Complaint Contract Specialist
Production Labl (1) Workshop (1)
Attendant (4) (1)
GIS Specialist
(1)
Assistant Manager SKADA Assistant Manager
Manager Segregation and Manager Landfill /
(1) Communication (1)
Composting (1) Dumpsites (1)
Research Officer
Network Administrator (1) Community / Social
(1) Dedicated Water and Wastewater Staff (09) Mobilizer (1) Assistant Manager Assistant Manager
Landfill / Dumpsite (1) Landfill / Facilities (1)
Dedicated Solid Waste Staff (11)
Database Administrator
(1) Shared Technical Staff (14)
Shared Management/Admin Staff (15)
Total (49)
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678. Like the Sahiwal Water and Sanitation Company (SWSC), the technical and professional
management staff would be competitively recruited from the open market and tasked to improve
service delivery. Incentives would be better aligned with performance and designed to reward
results. The finances of the company would be ring-fenced, rigorously audited, and kept separate
from TMA/Municipal Corporation’s financial accounts, allowing management to better track
service delivery costs and revenues.
679. The company may extend its operation in other geographical areas by entering into a
contract with neighboring Municipal Committees and the District Council of Sahiwal. The
Memorandum of Association (MoA) and Articles of Association will have this provision whereby a
company can expand its operations.
680. The company would be governed by an independent Board of Directors (BoD). This
Board will provide strategic and policy guidance and oversee the company performance. We
suggest the following composition of members – 60% from the private sector and 40% from
elected representatives and government officials;
Chairman (BoD) From the private sector – management experience

Director Mayor Municipal Corporation Sahiwal
Director From Local Government and Community Development Department
Director From the Urban Unit, Lahore
Director From the private sector – financial experience
Director From private sector – legal experience
Director From the private sector – technical focus Water and Wastewater
Director From the private sector – technical focus Solid Waste
Director From Civil Society
Non-Voting Member Company Secretary Sahiwal Urban Services Company
681. The chairman of the BoD should always be from private sector and each member cannot
serve on the board for longer than three years. No person shall be appointed as a director if
he/she is ineligible to hold office of director of a company under section 187 of the Companies
Ordinance 1984. No member / person shall hold more than one office in the company, such as
those of Chief Executive / director or company secretary. The chairman of the Board shall
preside at all meetings of the Board but, if at any meeting the chairman is not present within them
minutes after the time appointed for holding the same, the directors present many choose one of
their members to be chairman of the meeting.
682. Preferred Option - The Local Government department, the Urban Unit and TMA
Sahiwal have approved the Combine Utility option for the management of water,
wastewater and solid waste in Sahiwal.
Regulatory Models
683. The establishment of clear and effective regulatory systems is critical to the autonomy of
water service providers. They are established to constrain service providers’ operations so as to
avoid exploitation of the environment and customers in the corporation’s or agency’s pursuit of its
commercial objectives. Frequently the frameworks also have a provision to provide protection to
other stakeholders such as community groups, which are not necessarily customers.
(i) Economic Regulation

684. Competitive markets operate to provide constraints on price and standards of service. In
the water and wastewater industries, however, their physical characteristics are such that they
generally exist as natural monopolies. That is, they do not have competitors to consistently
maintain an economic discipline. The absence of this discipline becomes critical when the natural
monopolies are reformed so that they are autonomous and have clear commercial objectives.
Without the market discipline the monopolies can charge excessive prices or can degrade
standards of service in order to improve profits.
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685. To replace the market competitors, governments set up regulators of various kinds –
685.1. In Britain the privatized companies are controlled by the Office of Water Services
(Ofwat), which sets prices on a 5 and 10-year basis, specifies minimum standards of
service and maintains extensive sets of comparative performance indicators.
685.2. In the U.S.A. regulators vary with the type of service provider. Where services are
provided by private companies, a regulator is set up to set prices on an annual or biennial
basis. Typically, the price is set so as to ensure that providers earn an adequate return
on their investments made. This is known as rate of return regulation.
685.3. In other countries regulators are established which retrospectively review the
performance of agencies over a long period (typically 5 years) and on the basis of the
review renew the licenses of the agencies and/or apply sanctions. This has become
known as light handed regulation. Typically, it has been applied in New Zealand.
685.4. In Australia a range of regulation has been applied in the different states. In New
South Wales the most populous state the Independent Price and Regulatory Tribunal
(IPART) has been established as the regulator.
686. The role of IPART is to:
 Set prices for the urban agencies such as Sydney Water and Hunter Water;
 Develop and update operating licenses;
 Assess service performance against standards specified in the operating licenses.
687. IPART also has a wide brief to advise government in relation to service provision in non-
regulated sub sectors e.g. provision of water services in rural areas. Similar regulatory agencies
have been established in other states including Victoria and Western Australia.
(ii) Regulatory Alternatives

688. Where it is not possible to set up a separate regulatory frame work an intermediate
strategy available is to establish a supervisory committee or board which assesses, against
specific terms of reference, decisions of the corporation in regard to price etc. and performance
of the corporation against specific standards. The supervisory board should be established
outside of the corporation to avoid its autonomy and objectives being compromised.
689. The form of economic regulation applied in any situation depends on a number of factors.
These include the competencies available, the number of corporations and services to be
regulated the resources available etc.
690. In the case of Ofwat in Britain there are 10 private companies to monitor and its
responsibility is only in the water/wastewater sector. Thus there are economies of scale, which
allow Ofwat to develop a high level of competence in the sector. A similar approach has been
taken in the energy and telecommunications sectors. The supervisory approach is to set a price
framework and to continuously monitor service performance of the companies. Sanctions are
only formally applied if major transgressions occur. Each year however a comparison of
performance of each of the companies is published and promoted to the public.
691. The effectiveness of light handed regulation is arguable. If a major failure has occurred
during the period being reviewed there may be public pressure for the regulator to take action
against the corporation being reviewed. Generally, however it has been observed that the only
real sanction available is withdrawal of the corporation’s license to operate and regulators have
been reluctant to take this step. As a result, light handed regulation is considered to be an inferior
alternative structure.
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692. Under rate of return regulation there is little consequence taken of service delivery
performance. Instead the focus is on price. Prices are set on the basis of the corporation
justifying its capital expenditures and operating costs often in a public forum. On the basis of the
cost justification presented the regulator sets prices to provide the corporation with a return on
investment which is deemed to be sufficient for the corporation to maintain its investment. In
reality it has been observed that scope exists in a rate of return environment for the corporation
to manipulate the accounting information provided or to manipulate costs by delaying cost
efficiencies until after prices have been set. Furthermore, in these environments it is common for
the regulator to not have substantial industry knowledge, which would allow it to recognize the
manipulation taking place.
693. The key principle followed by Ofwat in Britain and IPART in Australia is that they are
totally independent of government in their decision making and their determinations of price are
binding.
Asset Management and Contract Management

694. Agencies in the water and wastewater industry recognize that their costs can be roughly
separated into three approximately equal components: -
 Operations maintenance and administration costs

 Capital servicing costs including debt servicing costs and returns to equity providers.
These costs relate to the original provision of assets.
 Depreciation on assets
695. Overall it can thus be seen from Figure VI-135 that over two thirds of costs are in regard
to asset provision, maintenance and replacement. This distribution of costs is common in other
infrastructure industries such as energy and rail. A significant complication arises however in the
water and sewer sector because a large part of the asset set i.e. the pipe network is buried and
thus not readily available for inspection. Particularly in older cities, where networks may be many
centuries old, lack of asset data has led to substantial service failures.
Figure VI-135: Breakdown of Costs
696. Internationally there is an increasing focus on asset management to reduce service

failures and ensure that asset based costs are optimized.
(i) Establishing an Asset Register

697. Asset management is a whole of life approach to the acquisition, operation and
maintenance of the overall asset set. It uses data typically contained in a fixed asset register
(which may initially be produced for financial purposes) on –
 Material
 Location
Page 384
 Length
 Age
 Replacement Cost
 Estimated remaining life etc.
and enhances it for engineering use by adding data on –

 condition
 inspection and maintenance processes etc.
698. Asset management uses this enhanced data to provide whole of life cost information on
which to base asset acquisition decisions. Asset management has a number of other functions
such as –
698.1. Development and assessment of maintenance strategies. An example being

optimum use of water jet cleaning of sewer mains.
698.2. Development of computer based main replacement models. These models are
financial assessments of the tradeoff which has to be considered between the cost of
replacement of assets against the financial and social costs of failure and subsequent
repair.
698.3. Linkage with customer service records of meter consumption, to establish

leakage analyses/ water balances for specific delivery areas.
698.4. Monitoring new and emerging asset technologies. This function is particularly
critical given the developments that have occurred in pipe technologies such as in situ
relining. Recognition of these technologies can have great financial effect.
698.5. An example of this effect is the valuation of assets for depreciation calculation
purposes. Recognition of new refurbishment technologies can significantly extend
remaining asset lives of assets with consequent reductions in depreciation expense.
Contracting Services
(i) Support Services
699. Support services are those components of the organization such as laboratories, design
offices and meter reading which provide technical and administrative functions. Invariably these
services can also be provided by private sector companies and other entities such as
Universities which are outside of the company. There is accordingly clear potential to expose
such services to market conditions.
700. A common approach in the long term, to support services is to create subsidiary
companies i.e. separate legal trading entities which can operate at arm’s length from the core
organization and which must compete for work from the core on an equal basis with all other
providers. The subsidiary as an independent entity will also have a right to compete for work
externally to the company with the potential for priority to be given to this external work ahead of
work for the core.
701. The objectives of this approach are to impose market disciplines on the support services
so as to ensure that these services are provided at best cost/best practice. The approach also
imposes a discipline on the core company in that it must clearly specify the services to be
acquired by the core rather than relying on the support service group to be aware of
requirements through inside knowledge.
702. Where separate legal identity is not possible, an effective strategy is to establish the
support services as separate cost and profit centers i.e. as separate business units.
Page 385
703. Establishing business units places a discipline on management which requires them to
clearly identify the product line (i.e. the goods and services produced by the business unit),
analyze the costs attributable to each product and derive a market equivalent charge for each
(ii) Operational Maintenance

704. A similar approach to general support services can be applied to key operational services
such as civil maintenance and electrical and mechanical maintenance. These services, within
most water sector providers, can also be ultimately provided by external companies and as an
intermediate step by civil maintenance and electrical and mechanical maintenance business
units.
705. Civil, electrical and mechanical maintenance is a significant part of the overall operations
of a water agency. The transfer of maintenance services to external providers thus has a
profound impact on the company from two aspects:–
705.1. The impact on the employees if they are displaced rather than transferred to the
external company.
705.2. The requirement for the core agency to clearly specify the requirements for
maintenance on a contractual basis and ultimately negotiate a contract with the external
supplier, which is in the best interest of the core company.
706. An intermediate step, which can be followed, is to investigate and establish best practice
for the services through contacts with other water agencies. This can then be used as the basis
for drawing up a detailed specification for the work to be undertaken by the maintenance
business units. The performance of the business unit can be measured by maintaining separate
accounts for the sub agency with payments on a notional basis being made to the sub agency
and financial penalties being applied for inadequate performance. Thus the measure for
performance is based on financial profit. This arrangement provides a simulation of open market
conditions and allows both the core company as the contracting principal and the sub agency as
the contractor to develop market related skills in relation to contract negotiation and contract
management. Ultimately both groups can become sufficiently proficient for full market exposure
to be applied by establishing support services as a separate legal entity from the core company.
Municipal Corporations: A New Way Forward

707. The new Punjab local government act of 2013 and elections of 2015 will usher in a new
phase for local governments in Sahiwal and Punjab as a whole. Election for general seats of
local councils has already been taken place. Election for reserve seats, Mayor and Deputy
Mayors are on the horizon and preparations ready to usher in a new phase of managing civic
affairs in Sahiwal. This report draws attention to areas of institutional, organizational and
governance management that need urgent attention. It is essential that well organized,
streamlined and functioning municipal corporations emerge out of the election process and that
the provincial government is focused on learning lessons from over two decades of local
governments’ experiments in Punjab. This is the time to review organizational design, structure
and interplay with the external environment for the benefit of its citizens.
708. This team and report propose a number of notable changes to the way in which TMAs
are configured and how a new municipal corporation representing smaller and medium sized
cities should be designed. This proposed design and structure reflects the findings of the
analysis, which precedes this section of the report. A quick overview of the gaps and
weaknesses in TMAs will help set the context and also offer to explain the teams thinking of why
and where such changes are necessary if municipal corporations are going to play an important
role in providing civic services in a new governance framework.
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709. Firstly, we have observed that Sahiwal TMA is not a local government that lends itself to
being vision and goal oriented, strategic, objective setting with clear short-medium and long term
plans at corporate or operational level. In fairness, this is also a product of the environment in
which it exists. Secondly, there is substantial evidence that the TMA is neither customer oriented
nor citizen focused. There is little or no perception of how to engage in partnerships with different
stakeholders to achieve improved service provision. The lack of internal processes and systems
just do not exist to enable it to engage with an external constituency. Thirdly, the lack of
adequate human resources, issues with staffing, recruitment, spans of control and training mean
the TMA is unlikely to perform and therefore deliver quality urban services. The time is right to
review the organizational configuration of local governments in towns and Tehsils.
RR. Asset Management

710. Over the last 25 years, there has been a greatly increased focus internationally on asset
management. This has come about because of asset failures occurring due to lack of knowledge
concurrently with the development of technologies (such as GIS and CCTV inspection) which
allow restoring that knowledge. A common syndrome is for ‘local knowledge’ to prevail i.e. a key
employee has unrecorded knowledge of an asset and he leaves the organization the knowledge
is lost.
711. Water and sewerage sector performance in particular is driven in the long term by the
quality of its asset management. This is because the asset base is predominantly buried;
drainage and solid waste sector performances are also subject but less so.
712. Effective public management of infrastructure relies on the asset owners having reliable
and comprehensive asset data with asset management systems and sound expertise.
713. The Urban Services Company will be enhanced by immediate formation of a specialist
asset management group. The need for immediacy occurs because of planned asset initiatives
in each sector and the opportunity to capture the asset data as it is built. The group should have:
 Enhanced competence in financial management alongside technical competence;

 Specific responsibility for creation and management of a comprehensive asset
register
 Responsibility for providing advice to senior managers on asset investment decisions
SS. Strategy and Policy

704. The ability to drive the citywide strategic development and consultation process in
Sahiwal will be essential. Therefore, the creation of a strategy and policy function to oversee key
functions is a new imperative for consideration here. Nestled between the role of the Chief
Officer with support from the city implementation units and Chief Administration Officer this troika
will lead and deliver the process for the municipal corporation. The CIU will be an important
resource and will need to work closely with corporate management in setting the framework
given capacity in the area is likely to be limited initially.
TT. Communication
705. This team will be tasked with ensuring that policies, programs and initiatives are
developed and outreach is achieved to share success stories from the work of the municipal
corporation. Moreover, they will need to put into place practices and mechanisms for informing
internal constituents vertically and horizontally within the corporation (fellow departments, local
council and frontline staff) newsletters, public awareness programs and a suitable website will be
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ways in which this can be addressed. The team is expected to be pivotal in supporting the ICDS
process as it unfolds.
UU. Economic Development and Partnerships

706. Previously not considered in any form or function of local government and traditionally
the preserve of provincial agencies. This will help the municipal corporation focus on facilitating
greater competitiveness and growth. This cannot be achieved alone and an approach that looks
to work with Sahiwal’s emerging private sector ought to be harnessed. Though there are
examples of how the TMA and industry have cooperated in areas such corporate social
responsibility to either develop green spaces, lavish roundabouts or other ornamental
investments. However, this needs to be scaled up with formal mechanisms for developing
government to business partnerships. The post could also review the role of the informal
economy and sector in Sahiwal and how this could be integrated into mainstream government
business and processes.
VV. Human Resource Management

707. Traditionally completely absent from the TMA this is possibly the most crucial aspect of
management that needs to be addressed urgently. The key functions of the department will be
workforce planning, job description review, training and capacity development, monitor staffing
allocations, recruitment of contract staff, and performance evaluation reviews/ACRs. They will
identify where gaps exist in skills, devise HR strategies and plans. Furthermore, the department
could be given the responsibility of coordinating all training, capacity and professional
development aspects of running the municipal corporation. It would work closely with the team
charged with the responsibility of developing automated systems and bring business processes
for the corporation online. Support from the CIU will be necessary. Figure VI-136 and Figure VI-
137set out how the new municipal corporations could be configured in the event the provincial
government wishes to retain hierarchy structures for their local governments.
708. To bring efficiency and effectiveness, implement organizational changes and introduce
accountability to customers, the proposed Municipal Corporation Sahiwal will be staffed with
appropriate senior management and technical supervisors, competitively recruited from the open
market on contract basis, in addition to the personnel transferred from the TMA (Table VI-138).
Civil servants can also apply against these positions, however they have to go through the same
selection process. Incentives will be better aligned with performance and designed to reward
result.
Table VI-138: Positions to be filled from open market or with existing civil servants
through completive process
1 Chief Officer Municipal Corporation

2 Executive Officer / Chief Administrative Officer
3 Municipal Officer Economic Development
4 Municipal Officer Asset Management and Development
5 Municipal Officer Finance
6 Municipal Officer Accounts
7 Chief Engineer / Executive Engineer
8 Municipal Officer Urban Transport
9 Municipal Officer Municipal Service
10 Municipal Officer Development Planning, Building Control and Regulation
709. Initially these structural and administrative reforms are only proposed for the Municipal
Corporation Sahiwal and Sialkot. This phased approach will allow time for reforms to be tested,
take root, better aligned with investment in solid waste, water wastewater and transport and
remodel if required and roll out to new Municipal Corporations in Punjab. Additional funding can
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be sought from ADB in the form of institutional support to cover additional pay and benefits for 3-
5 five years, develop job description, person specification, performance indicators, business
processes and capacity development.
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Figure VI-136: Proposed Institutional Structure for Municipal Corporation
Mayor Municipal Corporation
Deputy Mayor Municipal

Corporation
Local Council
Council Admin
Support Staff
Vision
Chief Officer Municipal

Corporation
Executive Officer / Chief Internal Auditor
Administrative Officer
Strategy and Policy
City Implementation
Unit (CIU)
Process Process
ICDS
Other Services Magistrate Administration Finance Planning and Development Communication Social Services Economic Development
Legal Human Resources Management IEC Public health promotion

Fire (information,
Parks taxation education, welfare
Others 1) MO Finance, MO Accounts communication
AMO Municipal Municipal Magistrate Human Resource Officer 2) AMO Budget GIS & Asset 1) Communication and Municipal Officer
Services 3) AMO Accounts Management Complaint Redressal Officer Economic Development
4) AMO Contract and PPP Database 2) Community Mobilization Officer
5) AMO Recovery-Taxes,Fees 3) Information Technology Officer
Infrastructure & Services Physical Planning Development Control Environmental Management
Development permits Education

Road & Water Growth Building permits assessment
Drainage Sanitation SWM & monitoring
Traffic Supply
Land Use
Transport
Authority Urban Service Company Cross - Cutting
All developments & Services
MO Development Planning,
Building Control and Regulation
1) MO Transport 1) MO Municipal Service 1) Chief Engineer
2) AMO Facilities (Bus Stand, 2) AMO WATSAN and SWM 1) AMO Development Planning
2) Municipal Engineer Infrastructure 2) AMO Commercialization and 1) AMO Building Control
Parking) 3) AMO Municipal Services 2) AMO Enforcement (Rules, Environment Officer
4) Urban Transport Planning (Roads, Bridges and Flyover) Advertisement
3) AMO Kachi Abadi Regulations, Encroachment)
and Operations Officer
4) AMO Asset Management and
Heading Development
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Figure VI-137: Proposed Hierarchical Structure for Municipal Corporation
Chief Officer
Municipal Corporation
Internal Auditor
Executive Officer / Chief
Administrative Officer City Implementation Unit
(CIU)
Municipal Officer Municipal Officer Municipal Officer Chief Engineer / Municipal Officer Municipal Officer
Economic Development Finance Accounts Executive Engineer Urban Transport Municipal Service
Assistant Municipal Officer Municipal Engineer

Human Resource Officer Assistant Municipal Officer Accounts Infrastructure - Roads, Urban Transport Planning Assistant Municipal Officer
Budget Bridges and Flyover and Operations Officer WATSAN & Solid Waste
Communication and
Complaint Redressal Assistant Municipal Officer Assistant Municipal Officer Assistant Municipal Officer
Officer Recovery - Taxes, Fees Facilities (Bus Stand, Municipal Services
Parking)
Information Technology Assistant Municipal Officer

Officer Contracts management
and PPP
Municipal Officer
Development Planning, Building Environment Officer
Community Mobilization Control and Regulation
Officer
AMO Development AMO

Assistant Municipal Officer Assistant Municipal Officer AMO Enforcement (Rules, AMO Asset Management
Planning (Spatial / Commercialization and
Land-use Planning) Advertisement Kachi Abadi Building Control Regulations, Encroachment) and Development
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Figure VI-139
Sialkot Sahiwal: Draft Medium Term Infrastructure Investment Program

Institutional, Governance and Capacity Development
Total Medium and
Financing Co- Expected Financing 2016 2017 2018 2019 2020
Expected Loan Expected Loan Total Medium Term Long Term
Implementing Commitments Required in Longer
Sector Component Entity and Budget
Disbursement in Disbursement in
Term after Year 5 to
Financing Financing
Years 1 - 3 Years 4 - 5 Requirement (US$) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 15 Requirement
Source
(US$)
Medium Term Investments Long Term Investments
Development Punjab Local Academy 500.00 million
Phase 1: Upgradation of PLGAL training GoPb 2,000,000 2,000,000

Phase 2: Satellite Campus of PLGAL in
4,000,000 4,000,000
Lahore (As per masterplan of GoPb)
Capacity development of elected 900,000 1,000,000 1,900,000
Capacity Development of elected 400,000 800,000 2,000,000 3,200,000
Technical Training - In house, on campus and 200,000 400,000 1,000,000 1,600,000
Management Development Program - In 50,000 100,000 250,000 400,000
Orientation Programme - In house 50,000 100,000 250,000 400,000
On the job training 150,000 150,000
Restructuring and strengthening of Punjab
Local
Government Academy, Lalamusa 100,000 100,000
Sensitization, service based delivery 150,000 100,000 250,000 500,000
Collaboration with local and international 150,000 150,000 150,000 450,000
Detailed Training Needs Assessment of local 80,000 20,000 100,000
Development and operationalisation of Training
50,000 50,000 100,000
Management Information System (TMIS)
Training and Development Policy 50,000 50,000 100,000
Training and Development Strategy
Institutional Support
Job descriptions, person specifications and 250,000
Information systems - HRMIS, FMIS
250,000
(PMDFC), and RMIS
Complaint management system 150,000 100,000
Consumer and Asset Management survey 250,000
Community mobilization and engagement 150,000 100,000
ICDS studies 250,000
Essential Equipment - Sialkot and Sahiwal 250,000
Utility Establishment and Support fund -
Sialkot 4,000,000
Sahiwal 3,760,000
Central agency Development 500,000 100,000
Legend: GoPb=Government of Punjab, MFF=Multitranche financing facility, MSW=municipal solid waste, PPTA=project preparatory technical assistance, Q=quarter (three-month period), SWMC=Sialkot Waste Management Company, US$=United States dollar.
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REG-8556
CHAPTER VII
Safeguards & Cross-Cutting Themes

April 2016
project’s design
Urban Infrastructure Investment Program Chapter VII
and Pre-Feasibility Study of Sahiwal, Pakistan Safeguards & Cross-Cutting Themes
Poverty, Gender, Social Development and Inclusion
A. Project Benefits
1. The project expects to improve the ‘livability’ of local residents (317,307 individuals) of
Sahiwal city by developing access to potable water supply, improved sewerage and solid waste
systems, and better transport facilities, eventually extending these benefits to Sahiwal’s
surrounding areas. The project will target and benefit poor communities who will have improved
access to reliable SWM services. All residents will also benefit indirectly as a result of (i) reduced
illicit waste dumping, (ii) reduced incidence of waste-related diseases and the resulting reduction
in medical costs, and (iii) reduced pollution loads on air, water, lands and groundwater resources
following improved SWM recycling, collection, transfer, treatment and disposal.
2. The project will benefit the community by developing access to potable drinking water and
improved sewage systems, and thereby eventually reduce the incidences of water related
disease, especially worm disease, malaria and hepatitis. In addition, the project will bolster the
local economy through increased employment opportunities for locals, increase in the income of
adjacent shops/business owners, and boost the value of adjacent land/structures, all major steps
towards poverty alleviation.
3. The community will gain improved road infrastructure, especially in places where frequent
traffic congestion occurs, helping people to reach their destination in a timely manner. In a
statistical breakdown of the population, the project will benefit the entire municipal population
(317,307 residents), including 45% of the population who are considered poor, 22% living below
the poverty line, and other vulnerable groups including widows (1.7% of the population), persons
with cognitive special needs (0.33%), persons with physical disabilities (0.9%), women headed
households (0.61%) and orphans (1%). The project will also benefit those residing in the Kachi
Abadis (71,687 of the Municipal total of 317,307) who do not possess land ownership rights.
These details are shown in IPSA, reflected in Annexure-IV.
B. Land Acquisition and Resettlement Impact

4. In addition to the positive effects, the project is expected to have adverse effects on the local
population in the form of Land Acquisition and Resettlement (LAR). The impact of LAR will result
in the physical and economic dislocation, causing the loss of residential income sources. These
impacts will be addressed as per ADB’s Safeguard Policy Statement (2009), ADB’s Handbook
on Poverty and Social Analysis and Country Safeguard System and will be monitored as per
design monitoring framework, given in Annexure-III. The project is comprised on three
components, hence the LAR impacts are assessed on a component to component basis, as
discussed below;
Component 1: Solid Waste Management

5. At this pre-feasibility level of assessment, two sites have been identified as potentially
suitable as the location of a regional municipal solid waste (MSW) treatment and disposal facility.
These are currently annotated as Site A and Site B. Further assessment of these two potential
sites is now planned during the PPTA, following which one of the sites, or possibly another site if
both are later found to be unsuitable, will be subject to more detailed resettlement and other due
diligence, in accordance with relevant protocol and procedures.
(i) Site – A
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6. Site A is located on the Gaimbar-Pakpattan Road, approximately 21 km east of the center of

Sahiwal city, 19 km southeast of Okara, and about 8 km south of the main N5 arterial. The
consultant has repeatedly visited the site and has made the following observations:
 Most of the site (170 ha) belongs to the Pakistan Army (and may do construction in the
near future). Generally, the army will not allow a project to be located within 1.6 km of
the cantonment area, however negotiations to use the land have not yet been initiated,
and it is therefore not known at this stage whether or not the land can be appropriated
for the project.
 Although population centers are close to overall the site area, the site is so large that it
may be possible to locate the landfill footprint within the overall site in a location to
provide a buffer of at least 500 meters away from the nearest village.
 The private land (other than the land occupied by the Army) is not enough for the
project.
 Only 50 hectares is required for the facility to 2035, leading to 100 hectares by 2060 for
the eventual full build out. The facility does not therefore require the entire 200 hectares
(170 of which belongs to a Pakistan Army cantonment), therefore it can be positioned
efficiently to minimize (i) resettlement impacts and (ii) maintain a minimal (500m) buffer
around the facility footprint, including the cantonment area.
(ii) Site - B
7. Site B is located approximately 17 km (road distance) southeast of Sahiwal city. It is easily

accessible from the Sahiwal – Pakpattan road. The consultant visited the site regarding land
acquisition and resettlement. The project has an impact on 250 acres including 210 acres of
prime agriculture land (owned by 26 farmers), 6 tube wells (owned by 6 families), 1 farmhouse
(owned by 1 family), and 15 wood trees (owned by 5 families).
8. In addition, the project has severe effects on the livelihood of displaced persons, especially
62% (16) of the respondents who are entirely dependent on the agricultural land to maintain their
livelihood, since they possess no other source of income. However, 38% of the DPs have
multiple income sources, other than the farming they run small businesses and have other jobs
in the private sector. Although the full extent of the project was not communicated, especially
how this facility will be developed and the details of compensation to be provided, people shared
their views after consultation, which are discussed below:
 People are reluctant to give up their land as agriculture is their main source of income;
 The government should acquire the non-agricultural land for the proposed project or limit
the project to non-agriculture land (40 acres) only;
 The government should get the land in the north of Sahiwal city, where non-agricultural
land (near the Ravi River) is available.
 They had apprehensions that the government will not give them the market rates;
 The prevailing market rate is on average Rs. 800,000/acre;
 The DPs should be provided an alternate source of income prior to the acquisition of the
land.
 The tenant was not reported to be in the proposed project area.
 The surrounding population will also be disturbed by the bad smell produced by the solid
waste site, so the government should shift the land fill site to a remote area, away from
population centers.
 The project is intended for the welfare of the people of the area, however neither the
displaced persons nor those from the surrounding area are happy with the solid waste
management practices.
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 The affected people have been settled here for centuries so the project will cause greater
social disturbances in addition to disrupting their sources of livelihood.
(iii) Site - C
9. The site is located in the south-east of Sahiwal along Bunga – Hayat road at the village
86/9L. The site is comprised on 70 acres of prime agricultural land and belongs to the
Government. However, the proposed project will impact on the livelihood of 20 households, who
are associated with the land since a long time and used for agricultural purposes. The project
requires the detailed investigation of the impacts at detail design stage followed the proposed
measures (in the form of developing livelihood plan) in case of adverse impact of the project. The
site is more suited for the project owing to its government ownership.
Land Acquisition, Resettlement and Rehabilitation Cost
10. The preliminary cost of land acquisition and resettlement was worked out based on the
replacement cost of affected land and structures as required by SPS SR2, Para 10. For this
purpose, a market survey was carried out in order to reach the market based unit rate to be paid
to DPs. However, the rates need to be confirmed during the feasibility and detailed design stage.
Total resettlement cost worked out for Site B is Rs. 203.23 million including 2.33 million for the
restoration of livelihood.
11. Regarding the livelihood restoration cost of Site C, Rs. 2.26 Million are required for the
livelihood restoration and rehabilitation cost. The detail of the cost is reflected in Annexure-I.
Component 2: Water and Sanitation

12. The proposed project effects 10 acres of land including 5.5 acres are private agricultural
land. The private land is owned by 7 families. While being agricultural land in nature, it has more
commercial value due to its proximity to Sahiwal city. The land has not been transferred to legal
owners of the same family, as the land transfer sales were repealed in court. The government
land belongs to the Punjab Irrigation Department.
13. The owners of land have alternate sources of income. In addition, the three families have an
additional source of income, such as doing jobs in the private sector.
14. Although the full extent of the project was not communicated, especially how this facility will
be developed, people shared their views after consultation, which are discussed below;
 People are not willing to give up their land, as they intend to keep it for its commercial
value and for financial purposes;
 They were worried that the government would not agree to the replacement cost land
rate and instead opt for a lower price.
 The prevailing market rate is Rs. 75,00,000/acre and they are worried that the
government will not compensate them accordingly.
 The project will have a negative impact on the surrounding areas, as it will become
difficult to live with such a bad smell, and eventually their life will become increasingly
miserable, therefore the project should be conducted away from population centers.
 The government should buy the land situated towards the north that belongs to a single
person (Numberdar of the village), however this land has not been transferred to the
names of legal owners, therefore they may go to court for a stay order.
Land Acquisition, Resettlement and Rehabilitation Cost
15. The cost of land acquisition and resettlement was worked out based on the replacement cost
of affected land and structures as required by SPS SR2, Para 10. For this purpose, the market
survey was carried out in order to reach the market based unit rate to be paid to DPs. However,
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the rates need to be confirmed during the feasibility and detailed design stage. Total resettlement
cost worked out for the site is Rs.50.6 million including 0.35 million for the restoration of
livelihood. The detailed cost is reflected in Annexure-I.
Component C: Transport Infrastructures

16. The proposed transport project does not have any land acquisition and resettlement impact,
and falls in category “C” IR (Involuntary Resettlement) Policy, therefore no further safeguard
action is required at this stage, until there is a change in the footprint.
C. Mitigation Measures for Negative Impacts

17. The mitigation measures proposed are based on the typology, extent and degree of impact,
comprised on the three afore-mentioned components. The mitigation measures are proposed to
normalize the adverse effects of the project on the displaced persons. The following actions are
recommended to address and mitigate LAR impacts.
 The impacts are not significant; therefore, the LARP of category “B” as per involuntary
resettlement policy is required for component A of site C (Solid Waste Management). The
outline of Category B LARP is reflected in Annex-II.
 The impacts are not significant in nature for component B (WATSAN), therefore, the
LARP of category “B” as per involuntary resettlement is required. The outline of Category
B LARP is reflected in Annex-I.
 Explore all possible design alternatives and select the one that avoids LAR impacts, and
if avoidance is not possible, select one that minimizes LAR impacts.
 Consult all types of affected persons, including landless people and agree on
compensation and resettlement options, which ensures livelihood restoration and shifting
of temporary or fixed structures out of the corridor of impact (COI) and right of way
(ROW).
 Establish a land acquisition and resettlement unit (LARU) within EA (project management
unit and project implementation units), engage land acquisition staff, resettlement
specialist, male and female social mobilizers to undertake consultation with DPs about
the project benefits, impacts and mitigation measures including compensation and
Restoration & Rehabilitation support.
 In case the negative impact is unavoidable, prepare the land acquisition and resettlement
plan that describes the consultation & disclosure, legal framework, eligibility &
entitlement, compensation & rehabilitation plan and payment procedure, institutional
arrangements, monitoring and reporting framework and time bound action plan.
 Undertake capacity building of the EA to cover all Land Acquisition and Resettlement
(LAR) planning and implementation needs for the duration of the Project, both at Project
Management Unit and at Project Implementation Unit (PIU) in the field.
 Meaningful consultations should be conducted with all DPs throughout the project cycle;
 The interest of vulnerable groups including the woman headed households should be
fully incorporated in the project;
 DPs should be provided assistance in terms of relocation, livelihood disturbance and
vulnerability allowance in case their income is falling below the OPL (official Poverty
Line);
 Detailed socio-economic and impact assessment survey is required at feasibility level to
assess the extent of impact on the displaced persons.
D. Conclusions
18. Regarding the two potential sites for the regional disposal facility, although both sites offer
potential, at this stage, Site C appears to provide clear advantages over Site A and B.
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 The site C being strategically located within the Sahiwal-Bonga Hyat Road, it is only 8 km
from the city of Sahiwal, has reasonably good access and a choice of access. It is of
sufficient area, however initially 70 acres of land is required to locate the planned facility.
 By comparison, although Site B is also located in a favorable location, it is significantly
smaller in plan area (in fact it would only just accommodate the long-term facility even if
all land at the site is available);
 Site B is also bounded by a waterway (which may bring limitations such as mandatory
corridor setbacks), has a number of existing dwellings within it, is currently utilized for
agricultural purposes, and would require the construction of an access road to reach the
Pakpattan Sahiwal main road.
 Site C does however have the advantage that the Sahiwal – Bonga Hayat road is already
able to accommodate the proposed transfer truck movements, unlike Site A, where
upgrades would most likely be required to the Sahiwal-Gunno Road.
 By comparison, Site C does not have Land Acquisition issues (being Government land)
while Site A and B involve significant land acquisition issues.
19. It is therefore recommended that Government now proceed as a priority to verify the
availability of Site C for potential use as a regional disposal facility. Once this is established,
further siting assessment and due diligence can then continue through the PPTA.
Environment and Climate Change

E. Introduction
20. The objective of this Chapter of the PFS is to carry out environmental screening and climate
change resilience appraisal of proposed road and transport, water, wastewater, and solid waste
management sub-projects for Sahiwal city as detailed in Chapter VI above. The CDIA ‘social and
environmental assessment’ guidelines113 suggest preliminary assessment of projects that cover
potential environmental and health impacts, and as assessment of the degree to which proposed
projects make a positive contribution to environmental quality. Resultantly, this report highlights
main risks and proposed mitigation measures using ADB rapid environmental assessment (REA)
checklists. The assessment also covers impacts of and responses to climate change related
weather events, and the extent to which proposed projects incorporate adaptation and mitigation
measures (wherever applicable) under a ‘preliminary climate change resilience appraisal’.
F. The Project
21. The Tehsil Municipal Administrations (TMA) of Sahiwal city, and the Government of Punjab,
requested CDIA to provide technical assistance to help with the preparation of a Medium Term
Investment Plan (MTIIP) and carry out pre-feasibility work on selected priority urban sector
projects. The objective of the PFS was, thus, to assist the Government of Punjab (GoPb) to
prepare an integrated, climate resilient, urban environmental infrastructure investment program
for the city. The resulting investment program is expected to enable Sahiwal to better manage
disruption from weather and climate-change related hazards whilst simultaneously catering to the
basic service needs of its residents. Adopting a highly participatory development process and
incorporating the sectors of water supply, wastewater, solid waste management (SWM) and
urban transport, the PFS has formulated a high-priority, medium-term investment program and
subsequent investment package for the city for further feasibility assessment. The conduct of this
PFS closely followed the protocol and guidelines established by CDIA, emphasizing pro-poor
development, environmental sustainability, climate change adaptation and good governance.
22. Furthermore, the PFS builds upon the work carried out under the Integrated City
Development Strategy (ICDS) study. The ICDS lays out an umbrella framework for urban
113
CDIA Pre-Feasibility Studies User Manual For Cities and National Partner Organizations. October 2012;
and, Pre-Feasibility Study Guidelines. February 2015
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planning and development, establishes a set of principles and planning concepts that, when
adopted, will enable Sahiwal to grow in a manner that is inclusive, climate resilient, competitive,
and enhances livability. The ICDS also dovetails into existing Government of Punjab plans to
introduce effective and futuristic planning framework for its secondary cities. Hence, its adoption
will ensure that the investments in the water and sanitation (WATSAN), SWM, and Roads and
Transport sectors’, and associated institutional capacity building, and social and environmental
safeguards proposed under the PFS, contribute towards its vision rather than prove to be
disconnected interventions. With particular reference to environmental protection, moving
forward, the ICDS will need to codify Strategic Environmental Assessment (SEA) approaches
and measures in planning methodologies and mechanisms that are adopted by city
administrations.
G. Policy, Legal, and Institutional Framework, for Environmental

Protection
Policy Framework
23. The paramount document for environmental legislation and policy is the Constitution of
Islamic Republic of Pakistan, 1973. It safeguards the fundamental rights as to life and health of a
citizen. Since devolution under the 18th constitutional amendment, the subject of environment
has been devolved to the Provinces.
(i) National Environmental Policy
24. Government of Pakistan launched its National Environmental Policy (NEP) in March 2005,
which provides an overarching framework for addressing environmental issues. Section 5 of the
policy commits for integrating environment into development planning as instrument for achieving
the objectives of NEP. It further states in clause (b) of Subsection 5.1 that, Environmental Impact
Assessment (EIA) related provisions of Environmental Protection Act of 1997 would be diligently
enforced for all development projects. It also provides broad guidelines to the Federal
Government, Provincial Governments, Federally Administrative Territories and Local
Governments to address their environmental concerns and to ensure effective management of
their environmental resources.
(ii) National Climate Change Policy
25. The National Climate Change Policy provides a framework for addressing issues that
Pakistan faces or will likely face in future due to changing climate. In view of the Country’s high
vulnerability to the adverse impacts of climate change, in particular extreme events, the policy
focuses on adaptation efforts. Vulnerabilities of various sectors have been highlighted and
adaptation measures spelled out. These include policy measures to address issues in sectors
such as water, agriculture, forestry, coastal areas, biodiversity and other fragile or threatened
ecosystems. Even though Pakistan’s contribution to global greenhouse gas (GHG) emissions is
extremely small, mitigation measures have nonetheless been incorporated for energy, forestry,
agriculture, and livestock sectors. Appropriate measures related to disaster preparedness,
capacity building, institutional strengthening; technology transfer; introduction of the climate
change in higher education curricula; ensuring environmental compliance through Initial
Environmental Examinations (IEE) and EIA in the development process; addressing the issue of
deforestation and illegal trade in timber; promoting Clean Development Mechanisms (CDM); and
raising Pakistan’s stance regarding climate change at various international forums, have also
been incorporated in the policy. The policy, therefore, provides a framework for subsequent
development of Action Plans for adaptation and mitigation initiatives. This policy is a meant to be
a ‘living’ document that can and should be reviewed and updated as needed.
Page 400
(iii) Other National Policies
26. The major national policies of Pakistan related to the environment, and specifically, sub-
sectors under consideration as part of this PFS study are listed in Table VII-1.
Table VII-1: Environment Related National Policies

# Name Year
1 National Water Policy (Draft) 2002
2 National policy for Development and Empowerment of Women 2002
3 National Resettlement Policy (Draft) 2002
4 National Environment Policy 2005
5 National Sanitation Policy 2006
6 National Drinking Water Policy (Draft) 2007
Source: Pakistan Environmental Protection Agency
Laws and Legislations Relevant to Environmental Protection and

Proposed Project Interventions
27. Government of Pakistan has promulgated laws/ acts, regulations and standards for
protection, conservation, rehabilitation and improvement of the environment. In addition to Laws
and Acts, procedures governing development projects have also been developed for EIA. Major
Laws and legislations relevant to environment in Pakistan and for proposed projects are outlined
in Table VII-2. Included under Annex ENV 1 are Federal and Provincial laws that might be
applicable to proposed projects.
Table VII-2: Laws and Legislations Relevant to Environment and Proposed Projects
Purpose Sector Legislation
Environmental The Pakistan Penal Code (1880)
Protection Pakistan Environmental Protection Agency Review of IEE and EIA
Regulations (2000)
Punjab Environmental Protection Act, 2012
Land Use and Land Land Acquisition Act, 1894
Acquisition The Punjab Development of Damaged Areas Act, 1952
The Punjab Soil Reclamation Act, 1952
The Punjab Development of Cities Act, 1976
Water Quality and The Pakistan Penal Code, 1860
Wastewater, and Water The Canal and Drainage Act, 1873
Resources The Factories Act, 1934
On-Farm Water Management and Water User's Associations
Ordinance, 1981
Air Quality The Pakistan Penal Code, 1860
The Factories Act, 1934
The Motor Vehicles Ordinance, 1965 and Rules, 1969
The Punjab Local Government Act 2013
Toxic and Hazardous The Pakistan Penal Code, 1860 
Substances The Explosives Act, 1884 
The Factories Act, 1934
The Agricultural Pesticides Ordinance, 1971 and Rules, 1973
Solid Wastes The Factories Act, 1934
The Punjab Local Government Act 2013
Punjab Environmental Protection Act, 1997  
Transport Development The Provincial Motor Vehicles Rules, 1969
Page 401
Purpose Sector Legislation

The Motor Vehicles Act, 1939 
The Fatal Accidents Act, 1855 
The National Highway Safety Ordinance, 2000
Environmental Standards
28. The Pakistan Environmental Protection Council first approved these standards in 1993.
These were later revised in 1995 and 2000 as National Environment Quality Standards (NEQS).
Subject to the provisions of the Pakistan Environmental Protection Act 1997, and the rules and
regulations made there under, no person shall discharge or emit or allow the discharge or
emission of any effluent or waste or air pollutant or noise in an amount, concentration or level
which is in excess of the NEQS or, where applicable, the established standards. The NEQS
specify the following standards:
28.1. Maximum allowable concentration of pollutants in municipal and liquid industrial

effluents discharged into inland waters, sewage treatment facilities, and the sea (three
separate sets of numbers).
28.2. Maximum allowable concentration of pollutants (16 parameters) in gaseous

emissions from industrial sources.
28.3. Maximum allowable concentration of pollutants (2 parameters) in gaseous

exhaust and noise emission from vehicles.
EIA Regulations
29. The GOP regulations, Section 11 and 12 of the Punjab Environmental Protection Act
(PEPA) dealing with discharge and emissions, and the Pakistan Environmental Protection
Agency Review of IEE and EIA Regulations (2000), which categorize development projects
according to costs and features such as environmental sensitivity (Clause 1, Schedule II, Annex
3) or other factors deemed important (Clause J, Schedule II, Annex 3).
30. The proponents of projects that have reasonably foreseeable impacts are required to
submit an IEE for their respective projects (Schedule 1, See Annexe ENV 2). Projects that can
have significantly adverse environmental impact (Schedule 2, See Annexe ENV 3) are required
to submit an EIA to the respective provincial environmental protection agency.
(i) Approval of IEE/ EIA
31. The Punjab Environmental Protection Department (EPD) must communicate its approval
or otherwise within four months from the date the IEE or EIA is first filed. If the submission is
complete and complies with procedure, but no response is given, then the IEE or EIA shall be
deemed approved. The EPD can, at its discretion, extend the four months’ period if justified due
to the nature of the project.
(ii) Environmental Monitoring and Audit
32. The project proponent will be responsible for ensuring implementation of those
environmental mitigation measures that are recommended in the IEE or EIA. The corresponding
Environmental Management Plan (EMP) should be prepared during the planning phase of the
respective IEE/ EIA. The EMP should include specific mitigation measures, environmental
monitoring requirements, institutional arrangements and its corresponding budget.
Page 402
(iii) Development of EMP
33. The EMP is a crucial document that should be prepared during the planning phase. After
its approval by the EPD, the EMP is to be taken into consideration when defining the contractual
obligation to be imposed on the contractor. The implementation of the EMP while performing the
corresponding construction works is the responsibility of the contractor. The contractor is
responsible for environmental monitoring and reporting activities. The project proponent must
ensure that the performance of the contractor is in accordance with EMP. The contractor should
submit annually a report on EMP implementation (See Section 7 for indicative budget for EMP
implementation and monitoring).
Framing Climate Sensitive Responses

34. According to the 5th Assessment Report of the Intergovernmental Panel on Climate
Change, “Many global risks of climate change (such as flooding, heat stress, landslides, extreme
precipitation, drought, water scarcity) are concentrated in urban areas; and these risks are
amplified for low-income households who typically lack essential infrastructure and services
and/or live in poor-quality housing and exposed areas. Hence, reducing basic service deficits,
improving housing, and ‘weather proofing’ infrastructure systems could significantly reduce
vulnerability and exposure in urban areas”114.
Vulnerability Assessment Framework115
35. To develop resilience to climate change, cities first need to understand the hazards,
risks, and vulnerabilities they face and their adaptive capacity. One rapid vulnerability
assessment method, known as HIGS allows for systematic understanding of urban issues that
shape climate-resilience and helps to identify policies and projects that can address these risks.
The HIGS framework analyzes vulnerability of cities using four sets of variables - which can then
guide action towards building resilience. These four variables are: Hazards, Infrastructure,
Governance and Socioeconomic characteristics (HIGS).
36. The HIGS framework seeks to respond to existing challenges a city may face in carrying
out vulnerability profiles -- such as the lack of time and resources -- by enabling rapid
vulnerability assessment based on secondary data sources; it does not preclude the need for
additional research and data collection to make more robust the overall assessment. This
framework has been tested in twenty Indian cities that have diverse physiographic and
demographic characteristics, and as such, is also relevant to the Pakistani context.
37. Needless to add, there are a number of different approaches to assessing vulnerability
from that of individual communities to an assessment of cities and their systems. However, these
approaches are time- and resource- consuming to a level that would preclude their applicability
for the purpose of this pre-feasibility phase, which is mandated to rely mainly on existing
information. Similarly, the absence of a counterpart at the local government level and the
extremely busy schedule of many of the concerned government officials, made it impossible to
transfer the knowledge and awareness of vulnerability profiling exercise as was originally
envisioned.
114
Impacts, Adaptation, and Vulnerability. Summary for Policy Makers. Working Group II Contribution to the
Intergovernmental Panel on Climate Change. 2014. WMO/UNEP.
115
Vulnerability profiling of cities: A framework for climate-resilient urban development in India. Asian Cities
Climate Resilience, Working Paper Series 8: 2014. International Institute of Environment and
Development (IIED), Rockefeller Foundation, Asian Cities Climate Change Resilience Network
(ACCCRN), and Integrated Research and Action for Development (IRADe). Available at:
http://pubs.iied.org/pdfs/10657IIED.pdf?
Page 403
Vulnerability Assessment of Sahiwal
38. Linking current problems in a city (such as water quality and availability, inadequate
sanitation, drainage, SWM, and transport infrastructure challenges) to longer-term climate
change resilience challenges through dialogue, planning exercises and projects can help arrive
at short-term approaches that contribute to longer-term solutions116. Most cities decision makers
find it difficult to look beyond current challenges, particularly when change is unpredictable.
Planning processes should, therefore, begin by addressing current needs (e.g., water supply or
urban drainage). Building on existing issues and analyzing how climate change might change or
increase existing hazard risk is one way to bring future scenarios into current decision-making117.
39. How cities are structured, i.e. the pattern and layout, land use, transport networks, water
and sewerage infrastructure, public health management systems, and more – not only
determines how well the city functions and copes with unexpected events but also the overall
quality of life of its residents. For instance, groundwater in Sahiwal is intrinsically linked with
River Ravi, Chenab and Bari Doab canals, which are major direct/indirect sources for its
recharge, and which in turn are dependent on glacial melt in the Himalaya’s. Moreover, use of
water from Ravi and Chenab for agricultural purposes has a direct bearing on its ability to
recharge Sahiwal’s groundwater. Similarly, floods – even localized ones - can damage road
infrastructure and can exacerbate hazards to human health by amplifying vector and water borne
diseases through mixing of sewage and solid waste with floodwater. Hence, climate change
impact on one sector will most likely have consequences for others as well. It is therefore
imperative that all units, functions, systems, and elements of a city are seen as an integrated
whole – affecting and being affected not only by others but also by those that lie outside city
boundaries – when planning for adaptation.
40. Urban flooding is a threat for parts of Sahiwal – especially the southern portion of the city,
where low-income households are situated. While the city has separate storm drain and sewage
systems, the former was built as open and above ground, and over time has come to be used by
residents and industries as sewage drain as well. The sewage system was underground and has
not functioned well, mainly due to blockages, poor maintenance and insufficient capacity, and
has contributed in large measure to exposing the city to urban flooding and other climate change
risks. There is also no proper effluent treatment system, which is damaging to local ecosystems
and human health.
41. Groundwater depletion is another major issue, indicated by the gradual decrease in its
level. There is little regulation of groundwater use. It is common for individuals, local businesses,
and industries to freely extract groundwater and no one knows who is extracting how much. Solid
waste management capacity is inadequate. There is no mechanism to prevent seepage, from
existing disposal sites, polluting groundwater. Continued unfettered use of groundwater resource
can become a major source of vulnerability for the city of Sahiwal.
42. The advent of inevitable climate change - in the form of increased temperatures and
higher precipitation - will likely have negative impacts on every major sector in the city. It will lead
to increase in energy demand and potentially increase GHG emissions. The water sector will be
heavily impacted through increased demand (due to temperature increase); and depletion of
groundwater resource (due to overuse and reduced recharge resulting from potential decrease in
River Ravi flows). Parts of the city will also face increased risk of urban floods, from heavy
storms and/or frequent overflow from Nallahs, which will place public and private property and
city infrastructure under increased threat. Also, cities are subject to unique health risks as higher
densities amplify potential for negative health outcomes, such as spread of communicable
diseases. Hence, climate change is likely to exacerbate existing heat wave, water-borne disease
health risks and the vector-borne disease risk in Sahiwal.
116
Ten Cities, Four Countries, Five Years: Lessons on the Process of Building Climate Change Resilience.
Insights from the Asian Cities Climate Change Resilience Network (ACCCRN). The Rockefeller
Foundation. 2008.
117
Urban Climate Change Resilience: A Synopsis. ADB. 2014
Page 404
Resilience Assessment Criteria
43. A climate change resilience review of proposed projects for Sahiwal will be undertaken
once specific projects have been identified. This process will include: determining that projects
incorporate appropriate environmental and climate change considerations, and that these
contain, wherever necessary, mitigation measures; and, determining how the city’s overall
climate resilience will be enhanced as a result of planned investments.
Areas For Further Study And Research
44. Given below are areas for further study and research deemed necessary in formulation of
strategies, plans and projects that incorporate appropriate environmental and climate change
considerations for Sahiwal.
(i) Water
714. There is a need to study groundwater resource to establish optimum yield and
appropriate spacing of wells to prevent groundwater depletion through matching abstraction with
recharge.
715. Also needed is water quality analysis of groundwater and tap water supplies to learn of
the extent of contamination and its links with public health.
716. A study on how rainwater harvesting and water reuse, for direct use (at the household
level) and for groundwater recharge, can be introduced and regulated, will be essential for
developing a comprehensive water sector plan for the city.
(ii) Wastewater Treatment

717. Keeping in mind traditional challenges associated with running and maintaining
expensive and sophisticated treatment facilities, a study needs to be conducted to explore the
feasibility of building a ‘constructed wetland’ to treat Sahiwal’s wastewater.
(iii) Solid Waste Management

718. A detailed study is needed to document the number of scavengers or waste ‘recyclers’ in
the City, their practice, and how their role might be formalized in a way that does not compromise
their livelihood.
(iv) Urban Mobility

719. Infrastructure for and public awareness about non-motorized transport has to form an
integral part of the city’s GHG reduction and mobility improvement strategy. Personal vehicle use
cannot be a viable strategy going forward for a burgeoning population. There is, therefore, a
need to study the feasibility of introducing pedestrian only zones; separate cycle paths; and
adequate footpaths and walkways that meet the needs of citizens who cycle and walk to get
around for work and leisure, and also as an inducement to others to do the same.
ADB’s Environmental Impact Assessment Procedures and Guidelines

45. All the development projects funded by ADB have to adhere to stipulated guidelines for
Environmental Impact Assessment, including potential climate change impact. ADB’s
environmental assessment process starts as soon as potential projects for ADB financing are
identified, and covers all project components whether financed by ADB, co-financiers, or the
Government. All loans and investments are subject to classification for the purposes of
determining environmental assessment requirements. Environment categories are to be
determined using Rapid Environmental Assessment checklists. These checklists consist of a set
of questions relating to (i) the sensitivity and vulnerability of environmental resources in project
area, and (ii) the potential for the project to cause significant adverse environmental impacts.
Page 405
46. The determination of the environment category is to be based on the most

environmentally sensitive component of the project. This means that if one part of the project
carries potential for significant adverse environmental impacts, then the project is to be classified
as Category A, regardless of the potential environmental impact of other aspects of the project.
Similarly, if the most sensitive component is classified B, then the project is to be classified B.
Only those aspects of the project with potential for significant adverse environmental impacts
need to be assessed in detail (See Table VII-3 for details)
47. Projects are tentatively assigned a category during an initial screening of anticipated
potential environmental impacts on the basis of a concept document. However, categorization is
an ongoing process, and the environment category can be changed at any time with the approval
of the chief compliance officer as more detailed information becomes available and project
processing proceeds. This policy provides the Bank to screen projects in order to identify
potential impacts early in the project cycle and categorize projects according to the level of
environmental impacts. The categories trigger varying requirements regarding pre-project studies,
participation, and information disclosure.
48. The borrower is required to conduct assessment(s) and avoid or minimize the identified
impacts of the project and also to examine the project alternatives. Also, the borrower is required
to assess not only impacts on immediate project area, but project's ‘area of influence’ (e.g.,
access roads, power lines, pipelines) as well as unplanned developments (e.g., spontaneous
settlements, flooding) induced by the project.
Table VII-3: ADB Environmental Safeguards Categories118
A proposed project is likely to have significant adverse environmental

Category A impacts that are irreversible, diverse, or unprecedented. These impacts may
affect an area larger than the sites or facilities subject to physical works. An
EIA, including an EMP, is required.
The proposed project’s potential adverse environmental impacts are site-
Category B specific, few if any of them are irreversible, and in most cases mitigation
measures can be designed more readily than for category A projects. An
IEE, including an EMP, is required.
A proposed project is likely to have minimal or no adverse environmental
Category C impacts. An EIA or IEE is not required, although environmental implications
need to be reviewed.
A proposed project involves the investment of ADB funds to or through a
Category FI financial intermediary. The financial intermediary must apply and maintain an
environmental and social management system, unless all of the financial
intermediary's business activities have minimal or no environmental impacts
or risks.
H. Environmental Categorization of Proposed Projects

49. The first batch of proposed investments covers projects in road and transport
infrastructure, water supply, sewage, drainage, sewage treatment, and SWM. Projects have
been categorized based on preliminary assessment of anticipated environmental impacts using
ADB’s REA checklist and overall categorization criteria (see Table VII-3); and on the basis of
project cost and/or size criteria in line with Government of Punjab IEE and EIA requirements (see
sections “D”, “F” and “G” under Annex 2 and Annex 3). Given below in Table VII-4 is an initial
environmental categorization of proposed projects.
118
Source: ADB Website, http://www.adb.org/site/safeguards/safeguard-categories
Page 406
Table VII-4: Proposed Projects Environmental Categorization According to ADB and

Government of Punjab Environmental Protection Department Guidelines
Sector City/Projects ADB GoPb Env.
Project Protection
Category Requirements119
Transport Bus Route, Improvement / Up-gradation C Not scheduled
(Est. Route Length: 12 Km.)
General Bus Stand C Not scheduled
Traffic Signals, Intersections Up- C Not Scheduled
gradation with Signage
Signage on Roads and Lane Marking. C Not Scheduled
Road-side Parking Up-gradation C Not Scheduled
(Existing)
Water Rehabilitation of tubewells, OHR and B
water distribution pipelines IEE/EIA
Provision of new water supply B IEE/EIA
infrastructure
Supervisory Control And Data Acquisition C Not scheduled
(SCADA), bulk metering and distribution
network improvement
Wastewater Rehabilitation of sewerage and drainage B IEE/EIA
network and disposal stations
Construction of trunk sewers and B IEE/EIA
sewerage system extensions
Construction of sewage treatment plants B IEE/EIA
Solid Waste Primary MSW collection system C IEE/EIA
Management Secondary MSW transfer station C IEE/EIA
Regional MSW treatment and disposal A IEE/EIA
facility
Dumpsite remediation program C Not Scheduled
Sector support programs for capacity C Not Scheduled
building, strengthening primary collection
operations, and improved public
awareness and engagement
119
EIA = Environmental Impact Assessment, IEE = Initial Environmental Examination, GoPb = Government
of Punjab.
Page 407
I. Environmental Risk Assessment and Climate Change Resilience

Appraisal
50. This section will detail environmental risk assessment of proposed projects in the roads
and transport, water, wastewater and drainage, and solid waste management sectors that fall
under category A or B using the ADB REA Checklist. Also presented is a preliminary climate
change resilience appraisal of those sub-projects most likely to be affected by expected climate
change related events.
Roads and Transport

51. The consultant has proposed, based on the field visits, level of traffic congestion,
feedback from stakeholders, and analysis, five sub projects for Sahiwal (see Table VII-4).
However, suggested sub-projects are not expected to have any or at the most marginal
environmental impact and neither are these likely to be practically affected by climate change
events.
Water and Wastewater Treatment

(i) Water
52. To provide uninterrupted potable water to existing users and to un-served areas, as well
as factor in improvements in system efficiency, and future demand, three sub-projects have been
proposed for Sahiwal (See Table VII-4). Preliminary environmental risk assessment and
mitigation measures of the two sub projects that fall in category B is given under Table VII-5 and
Table VII-6, respectively, while Table VII-12 includes a climate change resilience appraisal of all
three sub-projects.
Table VII-5: Rehabilitation of Tube-wells, OHRs, and Water Distribution Pipelines -

Environmental Risk Assessment and Mitigation Measures

A. Project Siting
Is the Project Area…
 …Densely populated? Though densely populated, planned project activities
primarily entail rehabilitation of existing infrastructure
and as such are expected to cause manageable
inconvenience.
B. Potential Environmental
Impacts
Will the Project cause…
 …conflicts in abstraction of raw There may be some conflicts with users in
water for water supply with surrounding areas over their use of the same
other beneficial water uses for groundwater source for agricultural purposes.
surface and ground waters? Hence, it will be crucial for government authorities
(district government and irrigation department, etc.)
to formulate a groundwater abstraction regime
through broad based consultation and strictly
enforce the same.
 …over pumping of ground There is a danger of this in the absence of proper
water, leading to salinization formulation and enforcement of a Groundwater
and ground subsidence? Abstraction Regime.
Page 408

 …inadequate buffer zone Rehabilitation works will include provision for noise
around pumping and treatment reduction measures at tube-well points / pumping
plants to alleviate noise and stations.
other possible nuisances and
protect facilities?
 …impairments associated with There is likely to be disruption to walkways and
transmission lines and access traffic flow at some points during the construction,
roads? which will require a ‘public disruption mitigation plan’
to be prepared by the contractor in consultation with
local government authorities and other utility service
providers.
 …health hazards arising from Chlorination is provided but in powdered form, not
inadequate design of facilities gas, and therefore not hazardous.
for receiving, storing, and
handling of chlorine and other
hazardous chemicals.
 …health and safety hazards to Chlorination is provided but in powdered form, not
workers from handling and gas, and therefore not hazardous
management of chlorine used
for disinfection, other
contaminants, and biological
and physical hazards during
project construction and
operation?
 …noise and dust from Likely to result from some of the activities during the
construction activities? construction phase but which can be mitigated
through a noise and dust suppression plan, to be
prepared and implemented by the contractor, prior
to construction.
 …increased road traffic due to In coordination with local traffic officials, district
interference of construction government and other utilities, a traffic management
activities? and diversion plan will be prepared, by the
construction supervision contractor, to minimize
traffic congestion and dangerous road use
conditions.
 …delivery of unsafe water due Water testing regime will be followed to ensure
to poor O&M treatment adequate chlorine residual is available in water at
processes (especially mud tap.
accumulations in filters) and
inadequate chlorination due to
lack of adequate monitoring of
chlorine residuals in
distribution systems?
 …excessive abstraction of There is a possibility that 24/7 water supply will
water affecting downstream increase water use in Sahiwal which may in turn
water users? lead to over abstraction that could affect other
downstream users. Hence, there is a need for an
extensive groundwater hydrological study and
formulation and enforcement of groundwater use
regulations.
Page 409

 …increased sewage flow due Availability of 24/7 water supply likely to increase
to increased water supply sewage generation. Planed construction of sewage
treatment plants expected to account for treatment
of increased sewage flow.
 …increased volume of sullage Planed construction of sewage treatment plants
(wastewater from cooking and expected to account for treatment of increased
washing) and sludge from sewage flow. Feasibility study to detail procedure for
wastewater treatment plant safe disposal of sludge.
 …community safety risks due Construction supervision contractor will be required
to both accidental and natural to develop and implement a public safety plan to
hazards, especially where the reduce the chances of accidents, including, setting
structural elements or up enclosures at construction sites, excavation
components of the project are areas and other dangerous places to restrict public
accessible to members of the access.
affected community or where
their failure could result in
injury to the community
throughout project
construction, operation and
decommissioning?
Table VII-6: Provision of New Water Supply infrastructure – Environmental Risk

Assessment and Mitigation Measures

A. Project Siting
Is the project area…
 Densely populated? It is likely that activities associated with replacement
of water supply infrastructure (digging, movement of
vehicles, construction workers, etc.) in densely
populated, areas will cause some inconvenience.
However, all such inconveniences can be anticipated
and mitigated with proper planning.
Impacts
 conflicts in abstraction of raw There may be some conflicts with users in
water for water supply with surrounding areas over their use of the same
other beneficial water uses for groundwater source for agro-industrial and agricultural
surface and ground waters? purposes. Hence, it will be crucial for government
authorities (district government and irrigation
department, etc.) to formulate a groundwater
abstraction regime through broad based consultation
and strictly enforce the same.
 unsatisfactory raw water Operational plans including strictly monitored
supply (e.g. excessive adherence to SOPs will be needed to ensure
pathogens or mineral adequate disinfection is provided and properly
constituents)? maintained.
Page 410

 delivery of unsafe water to Operational plans including strictly monitored
distribution system? adherence to SOPs will be needed to ensure
adequate disinfection is provided and properly
maintained.
 over pumping of ground water, There is a danger of this in the absence of proper
leading to salinization and formulation and enforcement of a Groundwater
ground subsidence? Abstraction Regime.
 inadequate buffer zone around Rehabilitation works will include provision for noise
pumping and treatment plants reduction measures at tubewell points / pumping
to alleviate noise and other stations.
possible nuisances and protect
facilities?
 Impairments associated with There is likely to be disruption to walkways and traffic
transmission lines and access flow at some points during the construction, which will
roads? require a ‘public disruption mitigation plan’ to be
prepared by the contractor in consultation with local
government authorities and other utility service
providers.
 health hazards arising from This is ok provided gas chlorination is not used.
inadequate design of facilities
for receiving, storing, and
handling of chlorine and other
hazardous chemicals.
 health and safety hazards to This is ok provided gas chlorination is not used.
workers from handling and
management of chlorine used
for disinfection, other
contaminants, and biological
and physical hazards during
project construction and
operation?
 dislocation or involuntary Location of tube wells and reservoirs will be sited so
resettlement of people? as to avoid any involuntary resettlement.
 noise and dust from Likely to result from some of the activities during the
construction activities? construction phase but which can be mitigated
through a ‘noise and dust suppression plan’, to be
prepared and implemented by the contractor, prior to
construction.
 increased road traffic due to In coordination with local traffic officials, a ‘traffic
interference of construction management and diversion plan’ will need to be
activities? prepared, by the construction supervision contractor,
to minimize traffic congestion and potentially
dangerous road use conditions.
Page 411

 delivery of unsafe water due to Water testing regime will be followed to ensure
poor O&M treatment processes adequate chlorine residual is available in water at tap.
(especially mud accumulations
in filters) and inadequate
chlorination due to lack of
adequate monitoring of
chlorine residuals in
distribution systems?
 accidental leakage of chlorine OK provided gas chlorination is not used
gas?
 excessive abstraction of water There is a possibility that 24/7 water supply will
affecting downstream water increase water use in Sahiwal which may in turn lead
users? to over abstraction that could affect other downstream
users. Hence, there is a need for an extensive
groundwater hydrological study and formulation and
enforcement of groundwater use regulations.
 increased sewage flow due to Availability of 24/7 water supply likely to increase
increased water supply sewage generation. Planed construction of sewage
treatment plants expected to account for treatment of
increased sewage flow.
 increased volume of sullage Planned construction of sewage treatment plants
(wastewater from cooking and expected to account for treatment of increased
washing) and sludge from sewage flow. Feasibility study to detail procedure for
wastewater treatment plant safe disposal of sludge.
 community safety risks due to Construction supervision contractor will be required to

both accidental and natural develop and implement a public safety plan to reduce
hazards, especially where the the chances of accidents, including, setting up
structural elements or enclosures at construction sites, excavation areas and
components of the project are other dangerous places to restrict public access.
accessible to members of the
their failure could result in
injury to the community
throughout project
construction, operation and
decommissioning?
(ii) Wastewater
53. The overall sewerage and sanitation strategy for Sahiwal is to provide a 24/7 safe,
healthy and environmentally sound service. At present there is little or no functioning sewage
treatment. The effluent generated is being discharged directly into nallahs with all related
negative environmental and health impacts. Provision of wastewater treatment facilities is
therefore a critical priority for the city.
54. Given below are the proposed sub-projects which have been designed to help improve
system functioning as well as full coverage up to 2035, and also safeguard its functioning in the
face of climate change induced events.
 Rehabilitation of sewerage and drainage network and disposal stations

 Construction of trunk sewers and sewerage system extensions
Page 412
 Construction of sewage treatment plants
55. The proposed WWT plant site will impact 10 acres of agriculture land and affect eight
households. See Table VII-7 for a preliminary environmental risk assessment of the proposed
wastewater conveyance and treatment project, and possible mitigation measures. A preliminary
appraisal of climate change resilience potential of the three sub-projects is given under Table
VII-12.
Table VII-7: WWT Plants - Environmental Risk Assessment and Mitigation Measures

A. Project Siting
 Densely populated? Planned project activities may cause some

inconvenience to nearby residents, which can be
mitigated through implementation of plans to minimize
and/or eliminate such disturbance factors.
Impacts
 interference with other utilities Detailed design of project will incorporate appropriate
and blocking of access to technologies to minimize interference with other utilities
buildings; nuisance to and inconvenience for neighboring areas by maintaining
neighboring areas due to noise, sufficient buffer zones and tree screens and fences to
smell, and influx of insects, restrict public access.
rodents, etc.?
 dislocation or involuntary Depending on detailed design and choice of technology,

resettlement of people? there may be some resettlement necessary. Detailed
design will ensure minimum resettlement and outline
adequate compensation in line with ADB guidelines and
GoPb policies, rules and regulations.
 disproportionate impacts on the Depending on the final design of the project, this may be
poor, women and children, the case. If so, the design process will seek to minimize
Indigenous Peoples or other such an impact and wherever unavoidable, affected
vulnerable groups? people will be sufficiently compensated according to
ADB and GoPb polices and provisions.
 impairment of downstream water Depending upon eventual choice of technology for
quality due to inadequate sewage WWT, there might be the risk of downstream water
treatment or release of untreated quality being impaired. Hence, adequate mitigation
sewage? measures to prevent or minimize such an occurrence will
need to form part of detailed design. During high rainfall
periods when flows are in excess of the treatment plant
capacity, excess flows will be discharged directly to the
water bodies. The treatment plant design will need to
ensure that dilution factors in such cases are in
accordance with Pakistan standards.
 overflows and flooding of There is a danger of this occurring in times of flooding if
neighboring properties with raw adequate safeguards are not built into the design of the
sewage? project.
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 environmental pollution due to Adequate sludge treatment and disposal measures will
inadequate sludge disposal or need to be incorporated into the treatment plant design.
industrial waste discharges Appropriate measures will need to be developed to
illegally disposed in sewers? ensure that industries pre-treat their wastewater prior to
discharge to the sewers and penalties are applied to
industries that discharge wastewater which does not
comply with statutory effluent standards.
 noise and vibration due to This possibility will be reduced/eliminated through
blasting and other civil works? implementation of a noise and vibration reduction plan
by the construction contractor.
 risks and vulnerabilities related to The construction contractor will be required to implement
occupational health and safety an occupational health and safety plan for the project
due to physical, chemical, and during construction period.
biological hazards during project
 discharge of hazardous materials For the sewage system to maintain its integrity and
into sewers, resulting in damage functioning, authorities will have to ensure that whatever
to sewer system and danger to industrial effluent is disposed off in drains and sewers in
workers? Sahiwal is stopped; and industries are required to treat
wastewater before disposing it in municipal drains and
sewers.
 inadequate buffer zone around Construction works will include provision for noise
pumping and treatment plants to reduction measures at project sites and pumping
alleviate noise and other possible stations.
nuisances, and protect facilities?
 road blocking and temporary Construction activities to take place outside rainy season
flooding due to land excavation so as to avoid this situation from arising.
during the rainy season?
 noise and dust from construction Contractor will be required to prepare and submit a noise
activities? and dust suppression plan for the construction phase.
 traffic disturbances due to A traffic diversion plan will be prepared by the contractor,
construction material transport in conjunction with local administration, to lessen/avoid
and wastes? disturbance.
 temporary silt runoff due to Runoff will be avoided through a ‘runoff prevention plan’
construction? to be developed and implemented by the contractor.
 hazards to public health due to Detailed design of wastewater treatment plants will
overflow flooding, and ensure incorporation of elements that provide for
groundwater pollution due to adequate protection to public health from possible
failure of sewerage system? hazards arising out of sewage overflow during flooding,
groundwater contamination, or other similar occurrences.
 deterioration of water quality due Treatment plant installation will prevent untreated
to inadequate sludge disposal or sewage being discharged to land and water bodies.
direct discharge of untreated Treatment plant capacity will be set such that treatment
sewage water? plant bypass operates during flood periods, effluent
discharged will be in accordance with Pakistan
standards. Treatment plant design will allow for
adequate sludge treatment and disposal facilities.
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 contamination of surface and Bio solids would be treated on-site with lime, trucked
ground waters due to sludge away and possibly applied to neighboring farmland.
disposal on land?
 health and safety hazards to The construction contractor will be required to implement
workers from toxic gases and an occupational health and safety plan for the project
hazardous materials which during construction period.
maybe contained in confined
areas, sewage flow and exposure
to pathogens in untreated
sewage and unstabilized sludge?
 community safety risks due to Construction contractor and subsequent to the
both accidental and natural construction phase, the concerned management
hazards, especially where the authority, will ensure development and implementation of
structural elements or a worker and public healthy safety plan with necessary
components of the project are training in Standard Operating Procedures.
accessible to members of the
their failure could result in injury
to the community throughout
project construction, operation
and decommissioning?
Image VII-8: Proposed site for WWT Plant
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Page 417
Table VII-12: Proposed Water and WWT Projects - Climate Resilience Appraisal
WATER WASTEWATER
Rehabilitation of Provision of new Supervisory Rehabilitation of Construction of Construction of WWT
tube wells, water supply Control and Data sewerage and trunk sewers and plants
Overhead infrastructure Acquisition drainage network sewerage system
Climate Change
Reservoirs and (SCADA), bulk and disposal extensions
Adaptation and
water distribution metering & stations
Mitigation
pipelines distribution
Considerations
network
improvement
Is the project Yes Yes Yes Yes Yes Yes
sensitive to climate
change impacts?
How does expected Long-term increases in precipitation may affect network Increased precipitation intensity and Increased
climate change infrastructure, elevate groundwater levels, decreasing the flooding can overwhelm the existing precipitation and
impact the project? efficiency of natural purification processes and increasing combined sewage and drainage extreme flooding
the risk of infectious disease and exposure to toxic infrastructure may damage/ impair the events can
chemicals. performance of the system. overwhelm the
capacity of the
More extreme drought periods may impact upon recharge planned Treatment
of aquifer thereby lowering water table resulting in Plants and affect
increased pumping costs and reduced discharges; and their working.
potentially causing ground subsidence.
What are the climate Future climate change impact in the form of increase Climate extremes may cause erosion, Depending upon
change implications duration and intensity of heat may induce: and, therefore, soil instability may eventual choice of
for future affect the structural integrity of these technology for the
environmental greater demand for water which may result in conflict drainage and sewerage systems. Treatment plant,
performance of between urban, agro-industry, and agricultural users of there might be the
project? (i.e., might groundwater Extreme weather events may impact risk of downstream
current/anticipated working of generators and/or water quality being
environmental Over pumping of ground water, leading to salinization and electricity sub-stations that provide affected as a result
impacts increase, ground subsidence electricity for operating the sewerage of excessive flows
decrease, or remain More extreme drought periods may impact upon recharge system. in the combined
unaffected in light of of aquifer, thereby, lowering water table resulting in drainage/sewage
possible climate increased pumping costs and reduced discharges. system.
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WATER WASTEWATER
Climate Change
Adaptation and
Mitigation
Considerations
network
improvement
change scenarios?)
Extreme weather events may impact working of generators
and/or electricity sub-stations that provide electricity for
operating the water supply network.
Does the project emit No. Though the use of tube wells, pumps, and motors Detailed assessment of energy Yes. Eventual
significant amounts of consume energy, the per annum consumption of electricity consumption for pumping wastewater choice of
GHG? Does the by these is not expected to be significant. will be undertaken during the wastewater
project feasibility stage. This will determine treatment
plan/encourage While energy efficiency improvement measures are part of the level of energy usage and system/technology
reduction of GHG? proposed investments in the sector, there is, nevertheless, corresponding GHG emissions. If will determine if
an opportunity to explore utilizing renewable energy options GHG emissions are deemed to be methane capture
to power the water supply network. significant, renewable energy options and energy
might be considered. generation from it
will form part of
project design.
Are there any A significant number of Sahiwal city residents are not A number of communities/localities are currently underserved
demographic or served by the municipal water supply system. Hence, or un-served by proper sewerage collection and disposal
socio-economic proposed investments in rehabilitation are expected to system. The proposed project will – along with rehabilitation
aspects of the Project reduce the number of communities/households, that are of sewerage and drainage network and construction of truck
area that are already currently un-served. sewers and sewerage system extensions – make available
vulnerable (e.g., high proper wastewater collection and disposal facilities to the
incidence of underserved communities/areas.
marginalized
populations, rural-
urban migrants,
illegal settlements,
ethnic minorities,
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WATER WASTEWATER
Climate Change
Adaptation and
Mitigation
Considerations
network
improvement
women or children)?
Does the project help Groundwater study to be undertaken will evaluate impact of Detailed design during feasibility will Treatment plant
to prepare for the climate change and make required adaptation factor in possible consequences of installation will
effects of climate recommendations including potential alternative water climate change related weather events ensure that these
change? sources such as rainwater harvesting and surface water on performance and integrity of the are not in
sources. system. environmentally
sensitive or fragile
Detailed designing under project feasibility preparation will zones; and prevent
factor in climate change events such as increased untreated sewage
precipitation, flooding, and droughts on water availability being discharged to
and transmission and include relevant measures to land and water
minimize possible disturbances in service delivery. bodies. Treatment
plant capacity will
be set such that
treatment plant
bypass operates
during flood
periods, and
effluent discharged
will be in
accordance with
Pakistan standards.
Treatment plant
design will allow for
adequate sludge
treatment and
disposal facilities.
Pre-treatment of
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WATER WASTEWATER
Climate Change
Adaptation and
Mitigation
Considerations
network
improvement
industrial
wastewater will be
necessary to avoid
direct discharge of
untreated industrial
wastewater.
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and Pre-Feasibility Study of Sahiwal Safeguards & Cross-Cutting Themes
56. SWM sub-projects developed under PFS (See Table VII-4) will allow the proposed
Sahiwal Waste Management Corporation (SWMC) to transform the SWM sector of Sahiwal. The
proposals represent the first phase of feasibility assessment, to be followed by the ADB-funded
PPTA and subsequently, final design. Of the proposed sub-projects, the Municipal Solid Waste
(MSW) disposal facility is expected to have significant environmental impacts.
57. A single, international-standard centralized waste management facility is planned in order

to accommodate all of the residual MSW of the city of Sahiwal and the six urban areas of
Sahiwal Division over the long term. Commencing with the city of Sahiwal, and then
incrementally commissioning the other urban areas into the system, the facility will eventually
serve all cities, which currently have an estimated population of about 1.4 million people,
projected to increase to about 2.6 million by 2035 and to about 5.8 million by 2060; inferring a
regional MSW disposal demand of around 8 million m 3 by 2035 and more than 30 million m3 by
2060.
58. Satellite imagery review and cursory field observations conducted show that land use in
the Sahiwal Division is either agricultural or urban. Agricultural land is characterized by villages
(chaks) that are spaced apart at distances of between 0.5 km to 1.5 kms, with smaller
settlements and individual dwellings interspersed in-between. Regardless of design, there would
be involuntary resettlement of existing households, and conversion of 100 hectares (one million
square meters) of existing agricultural lands, resulting in significant loss of livelihood. In addition,
fitting such a large facility in the area would inevitably result in the facility being close to one or
several villages, and this is also likely to cause impacts of potential significance. The siting,
permitting, construction and operation of such a facility in a location such as this is, therefore, is
likely to pose to be very challenging.
59. Two potential areas (Site ‘A” and Site ‘B’) have been identified that have relatively sparse
populations, and limited agriculture, and potentially of sufficient size to accommodate a major
regional facility. Both are also close to main arterials roads.
60. Although both sites offer potential as the location of a major regional disposal facility, at
this stage, from a SWM and environmental perspective, Site A appears to provide clear
advantages over Site B. Being conveniently located within the Sahiwal-Okara-Depalpur-
Pakpattan quadrangle, is only 24 km from the city of Sahiwal, has reasonably good access and a
choice of access, is of sufficient area (around 250 hectares) within which to locate the planned
100 hectare facility, has little current land use, and is sparsely populated with only a few
settlements adjacent to it.
61. By comparison, although Site B is also located in a favorable location, it is significantly

smaller in plan area (in fact it would only just accommodate the long-term facility even if all land
at the site is available), is bounded by the waterway (which may bring limitations such as
mandatory corridor setbacks), has a number of existing dwellings within it, is currently utilized for
agricultural purposes, and would require the construction of an access road to reach the main
road.
62. From a social and viability perspective, Site A might not be the ideal option because a
large chunk (approx. 170 ha) of the land is under the control of the army which might not be
willing to relinquish control given that a cantonment area is said to be situated at a distance of
around 1.6 kms from the proposed site. Also, the nearby villages are said to be not keen to have
a MSW facility located close to their homes. And while owners of land for Site B also showed
reluctance to sell their land to government and have a MSW facility located close to their homes,
an agreement offering of adequate compensation and environmental safeguards might be
acceptable to them
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63. During the PPTA phase, further investigation and extensive consultation and negotiations
with all stakeholders will need to be undertaken to assess viability and suitability of the two sites
for a regional disposal facility.
64. Table VII-15 below outlines the main environmental/health risks and proposed mitigation
measures which are related to both the sites. This assessment will be further refined during the
PPTA phase. Given under Table VII-16 is a preliminary appraisal of the MSW facility’s climate
change resilience potential.
Image VII-13: Proposed Site ‘A’ for MSW Facility
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Image VII-14: Proposed Site “B” for MSW Facility
Table VII-15: MSW Disposal Facility –b

Environmental Risk Assessment and Mitigation Measures

A. Project Sitting
 Densely populated? The selected landfill site is surrounded on all sides by
village settlements of varying sizes and population
densities. Including all possible precautionary and
mitigation measures will require these communities to
be ‘brought on board’, using participatory processes,
vis-a-vis the proposed project.
Impacts
 impacts associated with Noise and related disturbances from trucks carrying
transport of wastes to the MSW is likely to be a major cause of concern for and
disposal site or treatment facility opposition from residents along the route from
Sahiwal and other towns to the landfill site. Measures
such as using larger capacity trucks during
work/business hours and ‘buy in’ from community
leaders in early stages of project development will be
crucial.
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 degradation of aesthetic and Likely to be some reduction in value of land in the
property value loss? vicinity of the landfill site. This may require some kind
of compromise development project of special need
of the nearby localities to be initiated by the
government as a way to get ‘buy in’ of the
communities.
 nuisance to neighboring areas Adequate odor and insect/rodent control measures
due to foul odor and influx of will need to be part of detailed project design.
insects, rodents, etc.?
 dislocation or involuntary The proposed landfill site will entail resettlement of
resettlement of people? some people, who will need to be adequately
compensated according to ADB and GoPb policies,
rules, and regulations.
 disproportionate impacts on the There is the likelihood that those most affected by the
poor, women and children, siting of the MSW facility belong to marginalized
Indigenous Peoples or other groups/categories, and as such, might need to be
vulnerable groups? compensated to the maximum allowable under ADB
and GoPB policies and rules.
 risks and vulnerabilities related Development and operationalization of an
occupational health and safety occupational health and safety plan will be made
due to physical, chemical, compulsory during project construction period and
biological, and radiological beyond that during the operational phase.
hazards during project
 public health hazards from odor, Comprehensive public health and safety measures
smoke from fire, and diseases will form part of the design of the project facility
transmitted by flies, insects, birds standard operating procedures during the operational
and rats? phase.
 deterioration of water quality as a Detailed project design will include provision for
result of contamination of baseline liner system and a leachate collection and
receiving waters by leachate treatment system to prevent leachate from
from land disposal system? contaminating groundwater.
 contamination of ground and/or Detailed project design will include provision for
surface water by leach ate from baseline liner system and a leachate collection and
land disposal system? treatment system to prevent leachate from
contaminating groundwater.
 land use conflicts? To avoid the occurrence of such an eventuality, early
‘buy in’ from the surrounding communities and other
concerned stakeholders – and documentation of the
same in the form of a legal agreement - will be
crucial.
 pollution of surface and ground Detailed project design will include (i) provision for
water from leach ate coming baseline liner system and a leachate collection and
from sanitary landfill sites or treatment system to prevent leachate from
methane gas produced from contaminating groundwater and land; and (ii) a
decomposition of solid wastes in Landfill Gas Capture and Treatment System to
the absence of air, which could capture carbon dioxide, methane, and other harmful
enter the aquifer or escape gases. These will then either be flared and/or used to
through soil fissures at places far generate electricity.
from the landfill site?
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 inadequate buffer zone around Current settlements around suggested landfill site
landfill site to alleviate location do not leave enough room for a safe buffer
nuisances? zone and, hence, some of these settlement dwellers
will need to be resettled after due compensation.
 road blocking and/or increased The construction contractor will be required to
traffic during construction of development and implement a road traffic
facilities? management plan, in collaboration with local
authorities, to minimize such inconveniences during
the construction phase.
 noise and dust from construction The construction contractor will be required to
activities? develop and implement a noise and dust minimization
plan.
 temporary silt runoff due to Runoff will be minimized/avoided through a ‘runoff
construction? prevention plan’ to be developed and implemented by
the construction contractor.
 hazards to public health due to Loan agreement between ADB and the GoPb will
inadequate management of include mandatory provisions for financial resources
landfill site caused by inadequate and institutional mechanisms to be in place to prevent
institutional and financial hazards to public health arising out of landfill site
capabilities for the management operations.
of the landfill operation?
 emission of potentially toxic Detailed project design will include (i) provision for
volatile organics from land baseline liner system and a leachate collection and
disposal site? treatment system to prevent leachate from
contaminating groundwater and land; and (ii) a
Landfill Gas Capture and Treatment System to
capture carbon dioxide, methane, and other harmful
gases. These will then either be flared and/or used to
generate electricity.
 surface and ground water Detailed project design will include (i) provision for
pollution from leach ate and baseline liner system and a leachate collection and
methane gas migration? treatment system to prevent leachate from
contaminating groundwater and land; and (ii) a
Landfill Gas Capture and Treatment System to
capture carbon dioxide, methane, and other harmful
gases. These will then either be flared and/or used to
generate electricity.
 loss of deep-rooted vegetation ‘Greening’ of landfill site through plantation of
(e.g. tress) from landfill gas? indigenous species of plants and trees will be
undertaken throughout the project life to compensate
for any loss of vegetation, to increase aesthetic
appeal of the site and to enhance its physical
integrity.
 contamination of air quality from A Landfill Gas Capture and Treatment System to
incineration? capture carbon dioxide, methane, and other harmful
gases will be part of the project. Captured gases will
either be flared and/or used to generate electricity in
line with permissible air quality standards of the
Environmental Protection Department of Punjab.
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 public health hazards from odor, Comprehensive public health and safety measures
smoke from fire, and diseases will form part of the design of the project and facility
transmitted by flies, rodents, standard operating procedures during the operational
insects and birds, etc.? phase.
 health and safety hazards to Construction contractor will be required to institute a
workers from toxic gases and workers’ health and safety program for the duration of
hazardous materials in the site? the construction period.
 large population influx during Provision of adequate facilities for anticipated
project construction and construction staff and facility personnel will form part
operation that causes increased of detailed project design.
burden on social infrastructure
and services (such as water
supply and sanitation systems)?
 social conflicts if workers from To the extent possible, the construction contractor will
other regions or countries are be required to hire local staff and/or institute
hired? measures to prevent unnecessary.
 risks to community health and ‘Workers health and safety’ and ‘safe handling of
safety due to the transport, volatile/dangerous materials’ program will be made
storage, and use and/or disposal part of detailed design of the facility and included in
of materials such as explosives, the agreement with construction contractor and
fuel and other chemicals during facility standard operating procedures guidelines and
construction and operation? training of personnel.
 community safety risks due to Health and safety of construction workers, facility
both accidental and natural personnel, and the wider public will be ensured
hazards, especially where the through the development and implementation of
structural elements or workers, public health and safety plans and
components (e.g., landfill or procedures that will be part of the standard operating
incinerator) of the project are procedures guidelines and training during different
accessible to members of the phase of project life.
their failure could result in injury
to the community throughout
project construction, operation
and decommissioning?
Table VII-16: MSW Disposal Facility - Climate Change Resilience Appraisal

Climate Change Adaptation and MSW disposal facility
Is the project sensitive to climate Yes, the project is fairly sensitive to climate change
change impacts? impacts in terms of its operations and construction
and running costs.
How does expected climate change Increase in duration and intensity of temperature may
impact the project? contribute to higher than expected production of
leachate and landfill gases (CO2, CH4, etc.); and
increase the costs of necessary remedial measures
such as for flood protection. Increase in temperature
and precipitation (including flooding events) may also
disrupt operations of the facility and increase cost of
operations.
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Climate Change Adaptation and MSW disposal facility

What are the climate change Extreme weather events may result in higher than
implications for future environmental expected production of leachate and landfill gases.
performance of project?
Does the project emit significant Yes, the proposed landfill facility is expected to
amounts of GHG? Does the project produce significant quantities of CO2 and CH4
plan/encourage reduction of GHG? amongst other gases. Detailed design of the project
will include provision of Landfill Gas Collection and
Treatment System, which may include production of
electricity so as to offset grid electricity consumption
by the facility. Detailed design of the project will also
explore the viability of having the municipal waste
carrying trucks run on CNG or Biofuels to minimize
CO2 emissions associated with facility operations.
Are there any demographic or socio- Villages/settlements surrounding the proposed site
economic aspects of the Project area are inhabited by small farmers, who tend to be
that are already vulnerable (e.g. high socially and economically marginalized. Special
incidence of marginalized measures will need to be taken both at the design
populations, rural-urban migrants, and project implementation stages to ensure there is
illegal settlements, ethnic minorities, no damage to agricultural and related livelihoods of
women or children)? communities living near the site.
How will the long-term and Detailed design of the project will factor in possible
cumulative effects of climate change climate change related weather scenarios and the
impact the project impacts? Does the possible range of their impacts on the proposed
project / plan help to prepare for the project, and what the implications of these might be
effects of climate change? for construction and operational costs and
efficiencies.
J. Institutional Arrangements for Environmental Management
65. Under Local Government Act, 2013, the administrative tiers of District Government and
TMA have been abolished. In the new setup, there is to be a Municipal Corporation (MC) for
Urban areas and District Council f(DC) or rural areas. An elected Mayor will act as executive
head while a civil servant will hold the position of Chief Officer (CO), and serve as the head of
the executive branch. Under the proposed hierarchical structure, there is to be a position of
Environmental Officer (EO) who will report directly to the CO. While details of the role and
responsibilities of the EO have not yet been finalized, it is expected that at the very least, these
will include the
65.1. Assist Provincial Environment Protection Agency (EPA) in the discharge of its
functions under the Pakistan Environment Protection Act, 1997
65.2. Regulate motor vehicles subject to the provision of the Pakistan Environment
Protection Act, 1997 and the rules and regulations made there under
65.3. Ensure, guide and assist the proponents of new projects in submission of initial
environmental examination (IEE)/ Environmental Impact Assessment (EIA) to the DG
Punjab EPA for approval.
65.4. Identify the needs for legislation in various sector of the environment
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65.5. Ensure the implementation of environment protection and preservation measures

in all development projects, including implementation of Environmental Management
Plans, and sensitize government agencies on environmental considerations and issues.
66. For purposes of ensuring environmental protection and related climate change resilience
measures are taken and adhered to in design and implementation of proposed projects,
environmental management support functions will be included in the City Implementation Unit
(CIU), that will oversee and monitor implementation of proposed projects under this PFS.
Support for ensuring adequate commitment, technical capacity, and financial resources for
environmental safeguards, will be ensured by the Urban Unit, which is an important partner and
interlocutor for PICIIP activities in Sahiwal and Sialkot.
K. Budget for Implementation of Environmental Management Plan

67. Given below under Table VII-17 is an indicative budget for costs associated with
implementation and monitoring of an EMP. These estimates will be further refined under the
planned PPTA.
Table VII-17: Indicative Budget for Implementation and Monitoring of EMP

Item Unit Cost (Rs.) Cost (US$)*
Monitoring Staff 2 persons for 48 months @ Rs. 70,000 6,720,000 63,396
p.m.
Audits audits @ Rs. 700,000 per audit 2,800,000 26,415
Monitoring As described under EMP 9,010,000 85,000
Activities**
Transport 1 vehicle rental for 4 years @ Rs. 3,360,000 31698
70,000
Contingencies @ 4% 875600 8260
Total 22,765,600 214,769

US$ 1= Pak Rs. 106
** Monitoring costs include sampling of surface water, groundwater, potable water, wastewater; it assumes 20
samples every 3 months at approximately Rs. 9,000 per sample. Noise meter estimated to cost Rs. 550,000. Air
quality measurements near the landfill sites assume 4 measurements every 6 months at PRs100,000 per test.
Page 429
REG-8556
CHAPTER VIII
Sahiwal Municipal Finance
April 2016
project’s design
Urban Infrastructure Investment Program Chapter VIII
and Pre-Feasibility Study of Sahiwal, Pakistan Sahiwal Municipal Finance
Introduction
1. The objective of this Chapter is to summarize the total capital and operational costs
identified in each of the sector (i.e. water, wastewater & drainage, solid waste and transport).
These sector reports contain a detailed breakdown of the capital investment plans for the city,
but leaves the question as to how the proposed capital and operational costs will be financed. In
addition, program realization is also dependent upon implementing human resource
development, institutional strengthening, environmental management and social support
activities. This Section is not meant to be read as a stand-alone Chapter, but assumes the
reader has to hand the previous Annexes produced from the Interim Report upon which this
Section is expanded and elaborated.
2. As is discussed in the Municipal Finance Annex for Sahiwal, the city has very little money
available for funding capital investment. It also struggles to meet its existing operation expenses,
let alone the additional operational costs associated with the proposed new infrastructure
investments and associated support activities.
3. Presented below is a summary, for each sector, of the capital and operating costs
associated with the proposed investments together with an assessment of revenue streams that
may be available to help cover some (or all) of the ongoing operational costs. Utility service tariffs
are presently only applied in the water sector in Sahiwal, and conservative assumptions are
made as to the likelihood of either city introducing further service tariffs or other taxes/fees for
other sectors.
4. The following section presents a summary of the costs associated with undertaking
institutional, environmental and social support activities to facilitate the implementation of the
sector investment program.
5. Finally, the concluding section presents a summary of the revenues, expenses and
economic benefits / costs for all projects and project-support activities combined.
Overview
6. An updated municipal financial assessment (MMA) has been conducted for the Sahiwal
city as part of Punjab Intermediate Cities Improvement Investment Program (PICIIP). The
outcome of PCIIP is expected to improve urban planning, management and infrastructure
investment for several of Punjab's larger intermediate cities. It will assist 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.
7. The District Government of Sahiwal City and TMA of Sahiwal City, and the Government
of Punjab requested the CDIA to provide technical assistance to help the city prepare MTIIP and
carry out PFS work on selected priority urban sectors. The PFS is being implemented with the
support of Government of Punjab’s Urban Policy and Management Unit (The Urban Unit) and
Services Company (The Urban Unit). The purpose of the PFS is to identify priority sector
investments and bring them to pre-feasibility level so that they can be further developed and
financed in ADB PPTA.
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8. The PFS financial analysis will cover the assessment of public financial and expenditure
management systems of the city and will include project financial analysis and the plan of the
new urban infrastructure investment projects. This methodology is aimed at meeting the objective
of assessing the financial management status and capacity of the local government to undertake
investment projects identified under the PFS.
Municipal Fiscal Evaluation
9. Successful management of municipal finance is the key to the overall progress of service
delivery by TMA Sahiwal. The municipal finance function involves planning, regulation,
infrastructure & services and finance departments working under the municipality. TMA Sahiwal
is a service delivery organization and efficient management of municipal finances is imperative to
service the urban masses. The TMA provides municipal services including sanitation, sewerage
disposal works, water supply and street lights in the urban area of Sahiwal city by utilizing its
available resources. Key sources of revenue consist of taxes, fees and user charges, and Inter-
governmental transfers. Key items of expenditure are staff salaries, establishment charges, and
operation and maintenance of infrastructure. Financial analysis in this report is based on TMA’s
accounts from the financial year 2011-12 to 2014-15.
10. There is little variation in provincial government contributions over the period of analysis.
Estimating revenues from this source is highly uncertain at TMA level. The overall growth rate of
own source income is 21.78 % and the own source revenue is 39 % of the total income and the
external dependency is up to 61% of total revenue. Thus the TMA should attempt to improve its
income from its own sources. Its revenue expenditure is constantly increasing. Establishment
costs have grown at the rate of 10.03% whereas O&M expenses have grown at the rate of
37.76%.
11. The overall growth rate of expenditures remained 14.89%, which is higher than revenue
growth rates. Block allocations are made in the TMA for annual development plans (ADP). The
grant or OSR is not earmarked for any specific sector and can be used to meet any of the
functional responsibilities of a TMA. A major part of the expenses can be attributed to
establishment costs, which reached 49.19 % of revenue expenses and 43% of total revenue
income in FY2015.
12. Establishment expenses have remained between 56% to 49% of total revenue expenses
during the period of analysis. With a high portion of the total costs taken up with personnel
expenses, the funds left for operation and maintenance of and other services declined. The TMA
is legally required to maintain revenue surplus and hence there may not be any shortfall for other
expenses due to increase in personnel expense. TMA Sahiwal should focus on better planning in
order to manage its expenditures or increase income levels by enhancing own sources revenue
(discussed in below section ‘way forward and proposal for change’). The TMA is obliged to
allocate sufficient funds for operations and maintenance of assets as the shortfall will result in
badly maintained assets and will lead to their deterioration and therefore poor service delivery.
The total revenue expenses constitute 84% of total revenue income leaving behind 16% of the
revenue income for development work.
13. An analysis of the municipality’s revenue income and expenditure indicates that revenue
income has a registered compound annual growth rate of 13.47% whereas expenses have
grown at the rate of 9.27%. TMA should focus on increasing the growth rate of its revenue to
extend its capacity for investment in infrastructure development.
14. Municipal financial performance is evaluated on the basis of an operating ratio, which
assesses whether the municipality will be in a position to meet all its expenses from the income
generated. In this case, the ratio of total current expenditures (TE) to total revenues (TR) is 0.65.
This value shows that the TMA can cover its expenses within revenues generated. This ratio
remained 0.53 to 0.65, over the period of analysis. This trend although reflects self-sufficiency in
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meeting current expenditure undermines potential for considering increase in level of expenditure
in major infrastructure investments.
Financing of Past Infrastructure Investments
15. Sahiwal city has financed its past infrastructure investment from multiple sources
comprising: i) Funds from the Government comprising i) funds generated by the local
government from own sources (taxes, fees, rates, etc.), ii) share from Provincial Finance
Commission and iii) special grants from the government. Special provincial and federal grants
are generally made available to the city through elected representatives / members of provincial
and national assembly for specific projects. These funds cannot be used for any other purpose /
project. However, funds generated by the local government from own sources and share from
Provincial Finance Commission are exclusively available to the TMA for utilization for current as
well as future infrastructure development work.
16. However, infrastructure spending in Sahiwal city is not undertaken by TMA alone. For
example, projects from federal and provincial grants are executed by various department keeping
in view scope and nature of the work. Besides TMA, Public Health Engineering Department
(PHED) has also contributed towards development work in the city through funds received from
the provincial and federal governments. Funds are provided to PHED as grant against approved
schemes. Grants are spread into various small schemes over the constituency of the respective
provincial or national representative. Grants are spread into various small schemes over the
constituency of the respective provincial or national representative. An analysis of development
schemes of the TMA and PHED reveals that most of the development budget is spent on small
schemes, which rarely exceed Rs 5 million (equivalent USD 0.05 million) in value. TMA does not
identify any resettlement issues related to these schemes. These schemes being small in scope
and value are mostly completed in time. Meeting with immediate needs of users is a major
success factor of these investments. These development schemes include improvement of
streets, construction of sewerage drains, installation of water supply turbines, laying tuff tiles,
laying water supply pipe lines, and improvement of roads. Given the lack of a forward looking
budgeting process beyond 2016, it will be difficult (and unusual) to incorporate the urban
investment activities proposed under PICIIP.
Municipal Financial Management & Human Resources
17. The TMA’s finance department has insufficient human resources. Internal auditing is an
independent and objective activity designed to provide assurance and improve an organization's
operations. However, the internal auditor’s post under the current organizational framework
reports to the TO-Finance. This arrangement does not enable the objectives of an effective
internal audit function to be achieved. Internal auditor’s position should be elevated and more
staff should be dedicated to this function. There is also a lack of training and development
programs for TMA employees. For example, few of them have received training about the Punjab
Local Government Ordinance, 2001. There are no formal mechanisms to determine and analyze
capacity building needs within the municipality.
Municipal Financial Management Systems
18. There is an absence of adequate information systems provision. Information is still

managed using a manual, paper-based system, which lacks transparency and accountability.
Fiscal management processes are transaction intensive. Retrieving information from manual
records and reclassifying it in an appropriate format or classification can be extremely time
consuming and labor intensive. Automated systems speed up the process and provide the
accurate data required for economic and fiscal management.
19. The TMA uses manual systems in their financial management operations involving:
budgeting, accounting and financial reporting. There is limited use of computers. Basic
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spreadsheets are used in preparing accounts, details, budgeting and work involving numeric
values. A financial management information system package was developed for the
municipalities by the Punjab Municipal Development Fund Company. However, this was not
implemented due to a lack of professional IT staff.
Methodology for Financial Assessment

20. The financial analysis of the proposed sector investments has been carried out in
accordance with the Financial Management and Analysis of Projects of the Asian Development
Bank (ADB). The weighted average cost of capital (WACC) is compared with the financial
internal rate of return (FIRR) to ascertain the financial viability of the project components. WACC
is calculated based on percentage of debt and equity to total investment cost.
21. To compute the weighted average cost of capital (WACC), it is assumed that the
financing of capital cost would consist of provincial government contributions, and ADB foreign
currency loan in the ratio of 10:90, operating cost would be partially financed from available
project revenues, and the shortfall would be financed from the provincial government
contributions. The loan is estimated at 1.46% per annum (London interbank offered rate (LIBOR)
0.86 plus ADB margin (of 0.60%), the cost of counterpart funding is calculated at 8.0%, assuming
a risk-free return rate of 6.0% and a 2.0% margin. Income tax is assumed at 0%. The other
assumptions are a domestic inflation rate of 7.83% (Average of past 20 years’ inflation reported
by State Bank of Pakistan) and international inflation rate of 0.0%.
22. WACC used for analysing various sector investment proposals is calculated in the
following table:
Table VIII-1: Weighted Average Cost of Capital
Computation of Weighted Average Cost of Capital

%
Amount Nominal Nominal Rate Inflation Real
Source Weighting Weighted
($ Million) Rate Tax After Tax Rate Term
ADB Loan 82.89 45.02 1.46 0 1.46 0 1.46 0.66
Counterpart 101.24 54.98 8.00 0 8.00 7.83 0.17 0.09
Total 184.13 100.00 0.75
Real WACC 0.75
23. A detailed review of the 2012–2015 financial statements of the municipality was
undertaken to assess historical financial performance, generation of internal funds to support
current operations, i.e., the ability to service debts to finance a reasonable proportion of capital
expenditures, and the ability to finance the operation and maintenance (O&M) after construction.
24. Net cash flows are determined after income taxes, which are calculated at 0%. The
investment is analyzed over a 15-year period. No residual value is assumed in year 15. An
exchange rate of PKR 105 = $1 is used for the analysis.
Water / Wastewater / Drainage Sector Investment
A. Water Sector Assessment

25. This section presents a summary of the investment program proposed for Sahiwal’s
water sector. Summary cost estimate is provided in the following table and detailed sector
investment program and financing plans are presented on the following page.
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Table VIII-2: Summary Cost Estimates – Investment Program (Water Sector)

Investment Program
(Million)
Item US$ Rs
A. Cost
1 Production (e.g. Tube Wells, Bulk Meters, Pump Rooms) 2.12 224.06
2 Storage (Rehabilitation & New OHRs) 2.86 301.18
3 Distribution (Replacement of Pipes) 2.26 237.99
4 DMA Zones (e.g. H'hold Meters & Connections, OHRs) 13.00 1,371.38
5 Office Space, Tools & Equipment 1.14 120.00
Subtotal (A) 21.37 2,254.60
B. Resettlement and Rehabilitation - -
C Contingencies (5% of Cost) 1.07 112.73
Total 22.44 2,367.33
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Table VIII-3: Water Sector Investment Program

WATER - SAHIWAL Total (Rp) Total ($US) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Number of Connections 8,322 8,322 9,154 10,070 10,070 10,070 11,077 11,077 11,077 11,077
Water Revenue 49,033,571 464,814 33,361 34,362 38,932 44,110 45,434 46,797 53,020 54,611 56,249 57,937
Water Connection Fee 15,435,605 146,322 - 40,356 46,611 - - 59,354 - - -
Total Water REVENUES 64,469,176 611,136 33,361 34,362 79,288 90,722 45,434 46,797 112,375 54,611 56,249 57,937
Capital Expenditure (CAPEX)

Production (e.g. Tube Wells, Bulk Meters, Pump Rooms) 224,062,459 2,124,000 - 712,000 712,000 - - 700,000 - - - -
Storage (Rehabilitation & New OHRs) 301,176,234 2,855,000 - 627,000 628,000 - - 1,600,000 - - - -
Distribution (Replacement of Pipes) 237,987,245 2,256,000 - 467,000 624,000 - - 1,165,000 - - - -
DMA Zones (e.g. H'hold Meters & Connections, OHRs) 1,371,380,400 13,000,000 - 1,800,000 450,000 450,000 - 10,300,000 - - - -
Office Space, Tools & Equipment 119,995,785 1,137,500 - 853,000 284,500 - - - - - - -
Sub-Total 2,254,602,123 21,372,500 - 4,459,000 2,698,500 450,000 - 13,765,000 - - - -
Resettlement and Rehabilitation Cost - - - - - - - - - - - -
Total 2,254,602,123 21,372,500 - 4,459,000 2,698,500 450,000 - 13,765,000 - - - -
Contingency 112,730,106 1,068,625 - 222,950 134,925 22,500 - 688,250 - - - -
Total CAPEX 2,367,332,229 22,441,125 - 4,681,950 2,833,425 472,500 - 14,453,250 - - - -
Operational Expenditure (OPEX)
Production 66,613,172 631,460 56,960 61,420 66,229 99,415 107,199 115,593 124,644
Storage 78,676,872 745,817 12,550 50,200 54,131 58,369 126,939 136,879 147,596 159,153
Distribution 70,763,132 670,799 43,640 47,057 50,742 54,715 105,599 113,867 122,783 132,397
DMA Zones 306,373,494 2,904,267 72,000 95,638 121,126 130,610 552,837 596,124 642,801 693,132
Office Space, Tools & Equipment 57,320,231 543,367 34,120 48,172 51,943 56,011 60,396 65,125 70,225 75,723 81,652
Existing Operational Costs 540,770,307 5,126,232 356,728 384,660 414,779 447,256 482,276 520,038 560,757 604,665 652,010 703,062
Total OPEX 1,120,517,209 10,621,942 356,728 418,780 591,140 749,054 825,705 890,358 1,510,673 1,628,958 1,756,506 1,894,040
Total OPEX + CAPEX 3,487,849,438 33,063,067 356,728 5,100,730 3,424,565 1,221,554 825,705 15,343,608 1,510,673 1,628,958 1,756,506 1,894,040
Table VIII-4: Financing Plan (Water Sector)
Financing Plan
($ Million)
Total Capital Cost Operating Cost
Source Share of Share of Share of
Amount Amount Amount
Total (%) Total (%) Total (%)
Loan 20.20 61.09 20.20 90.00 - -

Counterpart (Municipal Budget / Government Grant) 12.87 38.91 2.24 10.00 10.62 100.00
Total 33.06 100.00 22.44 100.00 10.62 100.00
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Water Revenue
26. The City generates approximately $0.03 million per year from sources including
connection fee and water supply tariff. The planned water sector investments will likely lead to an
increase in this income in several ways. For example, the production infrastructure should
generate an increase in water production leading to new connections (and hence connection fee
income), and investment in water storage will make more water available for supply, which
should result in more water tariff income.
27. There is direct link between the water sector investments and revenue generation. This
water-related income will be available to cover part of the future water supply operating costs.
28. Looking ahead, water tariff can be potentially increased by improving service delivery and
water quality with the proposed investments. It is assumed that waste water connections would
increase by10% in the years following the investments with a tariff increase of 3%. However,
there is presently no commitment from the City to implement incremental tariff.
29. This has important implications for both how Capital and Operational costs will be
funded. Given the lack of municipal funds, the capital costs will need to be financed through a
combination of national / provincial grants and debt (mostly obtained from the ADB as well,
potentially, as other sources). As indicated above, operational costs could potentially (at least
partially) be financed from water-related income sources and municipal budget.
Water Sector Capital Costs
30. A total of approximately $22.4 million in capital costs is estimated to be required to

implement the various water sector projects summarized in the table above. Of these, household
metering and connections, overhead reservoirs make the largest contribution to total costs.
31. These investment activities may be separated into two categories: Short-term projects
relating to DMA zones activities and production, storage activities ($7.6 million) and medium-term
projects which comprise part of the development of DMA zones and some part of storage &
distribution ($13.8 million).
32. Also included in the capital expense forecast are various support activities relating to
enhancing the logistical and operational capability of water supply department through office
equipment and IT investment.
Water Sector Operational Costs
33. Forecast operational costs relate principally to various operations and maintenance
(O&M) expenses as well as some capital investment support activities.
34. The O&M cost forecast is calculated by taking a fixed percentage of capital costs.
Specifically, a 4% rate is applied to all cost elements. These operational cost percentage figures
are based on information supplied by the water supply department of the municipality.
Water Sector Projects Financing
35. The capital costs will need to be financed through a combination of national / provincial
grants and debt (mostly obtained from the ADB as well, potentially, as other sources). Whereas,
operational costs could potentially (at least partially) be financed from project-related income
sources and municipal budget. The financing plan is presented at earlier pages along with
investment program.
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Financial Internal Rate of Return (FIRR) and Net Present Value (NPV) Analysis
36. NPV calculation of the sector investments is presented in the following table:
Table VIII-5: NPV and FIRR (Water Sector)
Capital Operating Operating Net Free

Year
Expenditure Inflows Outflows Cash Flows
2016 - 33,361 356,728 (323,367)
2017 4,681,950 34,362 418,780 (5,066,368)
2018 2,833,425 79,288 591,140 (3,345,277)
2019 472,500 90,722 749,054 (1,130,832)
2020 - 45,434 825,705 (780,271)
2021 14,453,250 46,797 890,358 (15,296,811)
2022 - 112,375 1,510,673 (1,398,298)
2023 - 54,611 1,628,958 (1,574,347)
2024 - 56,249 1,756,506 (1,700,256)
2025 - 57,937 1,894,040 (1,836,103)
Net Present Value (NPV) @ WACC (3,284,279)
37. Net present value of the proposed investments is negative. It implies that the project cash
outflows are more than inflows. Further, keeping in view almost all negative cash flow streams,
FIRR analysis is not relevant.
Sensitivity Analysis
38. A sensitivity analysis for an increase in capital costs, increase in operational costs and
delay in project implementation is undertaken with the results provided in the following table:
Table VIII-6: Sensitivity Analyses

Sensitivity Analysis NPV $ Million
Base Case (3.28)
1 Capital Costs 10% (3.55)
2 Operating Costs 10% (3.35)
3 On year delay in project implementation (1.89)
39. The changes would adversely affect the cash flows of the project.
B. Sahiwal Wastewater / Drainage Sector Investment

water sector. Water sector investment program is presented in the following table.
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Table VIII-7: Drainage / Wastewater Sector Investment Program

DRAINAGE & WASTEWATER - SAHIWAL Total (Rp) Total ($US) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Number of Connections 13,932 13,932 15,325 16,858 18,543 20,398 20,398 20,398 20,398 20,398
Wastewater Tariff 37,298,032 353,567 26,543 27,340 30,074 33,081 36,389 40,028 40,028 40,028 40,028 40,028
Wastewater Connection Fee 26,070,272 247,133 - - 53,250 58,575 64,432 70,876 - - - -
Total Wastewater REVENUES 63,368,303 600,700 26,543 27,340 83,324 91,656 100,822 110,904 40,028 40,028 40,028 40,028

Sewerage Network (e.g. Pipe Replacements, Diversion) 84,181,658 798,000 - 104,000 340,000 354,000 - -
Disposals (e.g. Rehabilitation, Repair) 262,672,092 2,490,000 - 1,245,000 1,245,000 - - -
Treatment Plant (e.g. Land Acquisition, Building Structure) 2,466,374,904 23,380,000 - 8,440,000 7,440,000 - - 7,500,000
Office Space, Tools & Equipment (e.g Dewatering Sets) 86,766,183 822,500 - 616,000 206,500 - - -
Sub-Total 2,899,994,837 27,490,500 - 10,405,000 9,231,500 354,000 - 7,500,000 - - - -
Resettlement and Rehabilitation Cost 100,711,984 954,699 - 954,699 - - - - - - - -
Total 3,000,706,821 28,445,199 - 11,359,699 9,231,500 354,000 - 7,500,000 - - - -
Contingency 150,035,341 1,422,260 - 567,984.96 461,575.00 17,700.00 - 375,000.00 - - - -
Total CAPEX 3,150,742,162 29,867,459 - 11,927,684 9,693,075 371,700 - 7,875,000 - - - -
Sewerage Network 24,098,744 228,444 15,540 29,147 31,429 33,890 36,543 39,405 42,490
Disposals 83,904,626 795,374 21,788 87,150 93,974 101,332 109,266 117,822 127,047 136,995
Treatment Plant 552,745,754 5,239,753 555,800 599,319 908,746 979,901 1,056,627 1,139,361
Office Space, Tools & Equipment 36,260,774 343,734 21,560 30,475.65 32,862 35,435 38,210 41,201 44,427 47,906 51,657
Existing Operational Costs 493,034,498 4,673,720 325,238 350,705 378,165 407,775 439,704 474,133 511,257 551,289 594,455 641,000
Total OPEX 1,190,044,396 11,281,025 325,238 372,265 430,428 543,327 1,154,059 1,244,422 1,604,361 1,729,982 1,865,440 2,011,504
Total OPEX + CAPEX 4,340,786,559 41,148,485 325,238 12,299,949 10,123,503 915,027 1,154,059 9,119,422 1,604,361 1,729,982 1,865,440 2,011,504
Table VIII-8: Financing Plan
Financing Plan
($ Million)
Loan 26.88 65.33 26.88 90.00 - -

Total 41.15 100.00 29.87 100.00 11.28 100.00
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Table VIII-9: Summary Cost Estimates – Investment Program

(Drainage / Wastewater Sector)
Investment Program
(Million)
Item US$ Rs
A. Base Cost
1 Sewerage Network (e.g. Pipe Replacements, Diversion) 0.80 84.18
2 Disposals (e.g. Rehabilitation, Repair) 2.49 262.67
3 Treatment Plant (e.g. Land Acquisition, Building Structure) 23.38 2,466.37
4 Office Space, Tools & Equipment (e.g Dewatering Sets) 0.82 86.77
Subtotal (A) 27.49 2,899.99
B. Resettlement and Rehabilitation 0.95 100.71
C Contingencies (5% of Cost) 1.42 150.04
Total 29.87 3,150.74
Sahiwal Drainage & Wastewater Revenue
41. The City generates approximately $ 0.5 Million per year from sources including
connection fee and wastewater tariff. The planned wastewater/drainage sector investments will
likely lead to an incremental increase in this income in several ways. For example, the
improvement in sewerage network should generate an increase in connections (and hence
connection fee income) and disposal rehabilitation and treatment plant will produce more
wastewater tariff revenues.
42. Revenue from wastewater/drainage investments will be available to the municipality to

cover some of the related operating costs. Looking ahead, there is potential for increasing the
tariff due to improved services. Revenue stream is expected to directly change in relation to the
proposed investments. It is estimated that a 10% growth in number of sewerage connections
would be materialized in the years following the investments, with annual growth rate of 3% in
connection fee. However, there is presently no commitment from the City to implement
incremental tariff.
43. Given the lack of municipal funds, the capital costs will need to be financed through a
partially) be financed from wastewater-related income and municipal budget.
Sahiwal Wastewater Capital Costs

implement the various wastewater/drainage sector projects summarized in the table above. Of
these, the treatment plant and rehabilitation of disposals work make the largest contribution to
total costs.
45. These investment activities are mostly short-term activities.
enhancing the logistical and operational capability of wastewater/drainage operations through
office equipment and IT investment.
Sahiwal Wastewater / Drainage Operational Costs
(O&M) expenses as well as some capital investment support activities
Specifically, a 3.5% rate is applied to all capital cost elements.
Page 442
Sector Projects Financing
grants and debt (mostly obtained from the ADB as well, potentially, as other sources). Whereas
operational costs can potentially be financed from municipal budget. The financing plan is
presented at earlier pages along with investment program.
Table VIII-10: NPV and FIRR (Drainage / Wastewater Sector)

$
Year
2016 - 26,543 325,238 (298,695)
2017 11,927,684 27,340 372,265 (12,272,609)
2018 9,693,075 83,324 430,428 (10,040,179)
2019 371,700 91,656 543,327 (823,371)
2020 - 100,822 1,154,059 (1,053,238)
2021 7,875,000 110,904 1,244,422 (9,008,519)
2022 - 40,028 1,604,361 (1,564,333)
2023 - 40,028 1,729,982 (1,689,954)
2024 - 40,028 1,865,440 (1,825,412)
2025 - 40,028 2,011,504 (1,971,476)
51. Net present value of the proposed investments is in negative. It implies that the project
cash outflows are more than inflows. Further, keeping in view almost all negative cash flow
streams, FIRR analysis is not relevant.

Base Case (6.68)
1 Capital Costs +10% (7.29)
2 Operating Costs +10% (6.75)
53. The changes would adversely affect the cash flows of the project.
C. Transport
transport sector.
Page 443
and Pre-Feasibility Study of Sahiwal, Pakistan Sialkot Municipal Finance
Table VIII-12: Transport Sector Investment Program
TRANSPORT - SAHIWAL Total (Rp) Total ($US) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Project Related Revenues (prkg fee increment) 859,420 8,147 - - 853 896 941 988 1,037 1,089 1,143 1,200
Existing Revenues 398,055,584 3,773,368 300,000 315,000 330,750 347,288 364,652 382,884 402,029 422,130 443,237 465,398
398,915,004 3,781,515 300,000 315,000 331,603 348,183 365,592 383,872 403,066 423,219 444,380 466,599
Intersection Traffic Signals & Signage Upgrading 303,937,920 2,881,179 - 2,189,696 691,483 - - - - - - -
Road Signage and Lane Marking 46,250,900 438,435 - 438,435 - - - - - - - -
Bus Route Improvement / Upgrading 23,646,840 224,160 - 170,362 53,798 - - - - - - -
Equipment and Vehicles 39,209,981 371,691 - 322,208 49,483 - - - - - - -
General Bus Stand Improvement / Upgrading 7,797,670 73,918 - 73,918 - - - - - - - -
Roadside Parking Upgrading (Existing) 3,173,585 30,084 - 30,084 - - - - - - - -
Sub-Total 424,016,896 4,019,468 - 3,224,704 794,765 - - - - - - -
Resettlement and Rehabilitation Cost - - - - - - - - - - - -
Total 424,016,896 4,019,468 - 3,224,704 794,765 - - - - - - -
Contingency 21,200,845 200,973 - 161,235.18 39,738.23 - - - - - - -
Total CAPEX 445,217,741 4,220,441 - 3,385,939 834,503 - - - - - - -
O&M related to Capex (@5%) 241,134,034 2,285,830 - 161,235 200,973 216,710 233,678 251,975 271,705 292,979 315,919 340,656
Road Safety & Traffic Awareness Education 8,000,000 75,836 18,959 18,959 18,959 18,959
Existing operational costs 196,298,899 1,860,815 129,492 139,631 150,564 162,353 175,066 188,773 203,554 219,492 236,679 255,211
Total OPEX 445,432,933 4,222,481 129,492 319,825 370,497 398,022 427,703 440,748 475,259 512,472 552,598 595,867
Grand Total CAPEX + OPEX 890,650,674 8,442,923 129,492 3,705,764 1,204,999 398,022 427,703 440,748 475,259 512,472 552,598 595,867
Table VIII-13: Financing Plan
Financing Plan
($ Million)
Loan 3.80 44.99 3.80 90.00 - -

Counterpart Municipal Budget / Government Grant 4.64 55.01 0.42 10.00 4.22 100.00
Total 8.44 100.00 4.22 100.00 4.22 100.00
Page 444
Table VIII-14; Summary Cost Estimates – Investment Program (Transport)
Investment Program
(Million)
Item US$ Rs
A. Base Cost
1 Intersection Traffic Signals & Signage Upgrading 2.88 303.94
2 Road Signage and Lane Marking 0.44 46.25
3 Bus Route Improvement / Upgrading 0.22 23.65
4 Equipment and Vehicles 0.37 39.21
5 General Bus Stand Improvement / Upgrading 0.07 7.80
6 Roadside Parking Upgrading (Existing) 0.03 3.17
Subtotal (A) 4.02 424.02
B. Resettlement and Rehabilitation - -
C Contingencies 0.20 21.20
Total 4.22 445.22
Sahiwal Transport Revenue
55. The City generates approximately $ 5 Million per year from a variety of sources including
bus fares, parking fees and advertising income. The planned transport sector investments will
likely lead to an incremental increase in this income in several wares. For example, the
improvement in bus operations should generate an increase in passenger traffic (and hence fare
income) and enhanced parking facilities will produce more parking fee revenues.
56. However, there is no direct and easily quantifiable link between the transport investments
and revenue generation and, even more importantly, this transport-related income is transferred
to a general municipal revenue fund with no prescribed allocation for transport services.
57. Looking ahead, there are multiple potential revenue sources that could be introduced (or
enhanced). These include a route licensing fee, roadside advertising, fuel charge levy, an
increase in parking charges and an allocation of a proportion of the car registration fee. The
proposed investments would start generating nominal revenue in the year 2018, which would
grow @5% annually.
partially) be financed from a variety of transport-related income sources but until such time as
such measures are introduced then again a mixture of grant and debt funding will be relied upon
to cover costs.
Sahiwal Transport Capital Costs

implement the various transport sector projects summarized in the table above. Of these, the
work on Intersection Traffic Signals & Signage Upgrading make the largest contribution to total
costs.
60. These investment activities are mainly short-term.
enhancing the logistical and operational capability transport departments through office
equipment and IT investment.
Page 445
Sahiwal Transport Operational Costs
(O&M) expenses as well as some capital investment support activities relating to enhancing
traffic safety awareness and promotion of public transport use.
Specifically, a 5% rate is applied to all cost elements. These operational cost percentage figures
are based on information supplied by Traffic Engineering and Planning Agency in Lahore (part of
the Lahore Development Authority).
Transport Sector Projects Financing
operational costs can potentially be financed from municipal budget. The following table presents
the financing plan.
Table VIII-15: NPV and FIRR (Transport)

$
Year
2016 - 300,000 129,492 170,508
2017 3,385,939 315,000 319,825 (3,390,764)
2018 834,503 331,603 370,497 (873,396)
2019 - 348,183 398,022 (49,839)
2020 - 365,592 427,703 (62,110)
2021 - 383,872 440,748 (56,876)
2022 - 403,066 475,259 (72,193)
2023 - 423,219 512,472 (89,253)
2024 - 444,380 552,598 (108,218)
2025 - 466,599 595,867 (129,268)
66. Net present value of the proposed investments is US$ 1.2 Million in negative. It implies
that the project cash outflows are more than inflows. Further, keeping in view almost all negative
cash flow streams, FIRR analysis is not relevant.

Base Case (6.68)
Page 446
68. The changes would adversely affect the cash flows of the project
D. Solid Waste Management

69. This section presents a summary of the investment program proposed for the solid waste
management sector. Sector investment program is presented in the following table.
Page 447
Table VIII-17: SWM Sector Investment Program

SWM - SAHIWAL Total (Rp) Total ($US) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Projected Tariff Introduction and Development 50,728,222.95 480,878 - - - - 62,325 68,558 75,414 82,955 91,251 100,376
Existing Revenues - - - - - - - - - - - -
50,728,223 480,878 - - - - 62,325 68,558 75,414 82,955 91,251 100,376
MSW Primary Collection System 1,065,639,237 10,101,727 7,071,209 2,020,345 1,010,173 - - - - - -
Street Sweeper System 151,584,603 1,436,946 1,005,862 287,389 143,695 - - - - - -
MSW Secondary Transfer System 455,637,686 4,319,217 3,023,452 863,843 431,922 - - - - - -
MSW Treatment and Disposal System 1,026,734,979 9,732,934 3,893,174 3,893,174 1,946,587 - - - - - -
Dumpsite Remediation Program 225,320,155 2,135,922 533,981 533,981 533,981 533,981 - - - - -
SWM Support Programs 168,257,826 1,595,000 478,500 638,000 319,000 159,500 - - - - -
Sub-Total 3,093,174,487 29,321,746 - 16,006,177 8,236,732 4,385,356 693,481 - - - - -
Resettlement and Rehabilitation Cost 203,225,544 1,926,476 1,926,476 - - - - - - - -
Total 3,296,400,031 31,248,223 - 17,932,654 8,236,732 4,385,356 693,481 - - - - -
Contingency 164,820,002 1,562,411 - 896,632.69 411,836.61 219,267.82 34,674.03 - - - - -
Total CAPEX 3,461,220,033 32,810,634 - 18,829,286 8,648,569 4,604,624 728,155 - - - - -
O&M related to Capex (@20%) 6,952,516,791 65,906,380 - 3,201,235 5,099,239 6,375,580 7,013,484 7,562,640 8,154,795 8,793,315 9,481,832 10,224,259
Total OPEX 6,952,516,791 65,906,380 - 3,201,235 5,099,239 6,375,580 7,013,484 7,562,640 8,154,795 8,793,315 9,481,832 10,224,259
Grand Total CAPEX + OPEX 10,413,736,824 98,717,014 - 22,030,522 13,747,807 10,980,204 7,741,639 7,562,640 8,154,795 8,793,315 9,481,832 10,224,259
Table VIII-18: SWM Financing Plan
Financing Plan
($ Million)
Loan 29.53 29.91 29.53 90.00 - -

Total 98.72 100.00 32.81 100.00 65.91 100.00
Page 448
Table VIII-19; Summary Cost Estimates – Investment Program (SMW)

Investment Program
(Million)
Item US$ Rs
A. Base Cost
1 MSW Primary Collection System 10.10 1,065.64
2 Street Sweeper System 1.44 151.58
3 MSW Secondary Transfer System 4.32 455.64
4 MSW Treatment and Disposal System 9.73 1,026.73
5 Dumpsite Remediation Program 2.14 225.32
6 SWM Support Programs 1.60 168.26
Subtotal (A) 29.32 3,093.17
C Contingencies 1.56 164.82
Total 32.81 3,461.22
Solid Waste Revenue
70. The City does not generate income from solid waste management sector service
delivery.
71. Looking ahead, there are potential revenue sources that could be introduced. These
include a tariff for solid waste management services. The investment plan forecasts a tariff
introduction in the year 2020 starting from about US$ 1.00/household/month with a forecast 10%
increase in the coming years. However, there is presently no commitment from the City to
implement such proposals.
partially) be financed from solid waste-related income sources but until such time as such
measures are introduced then again a mixture of municipal budget allocation, grant and debt
funding will be relied upon to cover costs.
Solid Waste Management Capital Costs

implement the various sector projects summarized in the table above. Of these, the work on
MSW Treatment and Disposal System, and Supplemental MSW Collection and Transfer System,
make the largest contribution to total costs.
74. These investment activities include mainly short-term projects.
75. Also included in the capital expense forecast are support activities relating to solid waste
management support programs.
Solid Waste Management Operational Costs
(O&M) expenses as well as some capital investment support activities.
Specifically, a 20% rate is applied to all cost elements.
Page 449
Solid Waste Management Sector Projects Financing
Table VIII-20: NPV and FIRR (SWM)

$
Year
2016 - - - -
2017 18,829,286 - 3,201,235 (22,030,522)
2018 8,648,569 - 5,099,239 (13,747,807)
2019 4,604,624 - 6,375,580 (10,980,204)
2020 728,155 62,325 7,013,484 (7,679,314)
2021 - 68,558 7,562,640 (7,494,082)
2022 - 75,414 8,154,795 (8,079,381)
2023 - 82,955 8,793,315 (8,710,360)
2024 - 91,251 9,481,832 (9,390,581)
2025 - 100,376 10,224,259 (10,123,884)
80. Net present value of the proposed investments is negative. It implies that the project cash
outflows are more than inflows. Further, keeping in view almost all negative cash flow streams,
FIRR analysis is not relevant.

Base Case (12.21)
82. The changes would adversely affect the cash flows of the project
E. Institutional Cost
83. Summary of the costs associated with undertaking human resource development and
institutional strengthening activities to facilitate the implementation of the sector investment
program is presented in the following table:
Page 450
Table VIII-21: Institutional Costs Summary

INSTITUTIONAL AND GOVERNANCE SAHIWAL Total (Rp) Total ($US) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
- - - - - - - - - - - -
Total REVENUES - - - - - - - - - - - -
Punjab Local Government Academy, Lalamusa 316,472,400 3,000,000 300,000 700,000 1,000,000 1,000,000
Institutional Support 13,186,350 125,000 50,000 50,000 25,000
Utility Establishment and Support fund - Sahiwal 396,613,761 3,759,700 1,329,000 1,160,000 1,270,700
Sub-Total 726,272,511 6,884,700 1,679,000 1,910,000 1,295,700 - - 1,000,000 1,000,000 - - -

Contingency 36,313,626 344,235 83,950.00 95,500 64,785 - - 50,000 50,000.00 - - -
Total CAPEX 762,586,136 7,228,935 1,762,950 2,005,500 1,360,485 - - 1,050,000 1,050,000 - - -
Punjab Local Government Academy, Lalamusa 474,708,600 4,500,000 325,000 435,000 405,000 380,000 455,000 625,000 675,000 450,000 375,000 375,000
Institutional Support 79,118,100 750,000 125,000 300,000 225,000 50,000 50,000 - - - - -
Total OPEX 553,826,700 5,250,000 450,000 735,000 630,000 430,000 505,000 625,000 675,000 450,000 375,000 375,000
Total OPEX + CAPEX 1,316,412,836 12,478,935 2,212,950 2,740,500 1,990,485 430,000 505,000 1,675,000 1,725,000 450,000 375,000 375,000
Table VIII-22: Financing Plan (Institutional)
Financing Plan
($ Million)
Loan 6.51 52.14 6.51 90.00 - -

Total 12.48 100.00 7.23 100.00 5.25 100.00
Page 451
Institutional & Governance Revenues, Capital and Operational Cost
84. Institutional support costs are not likely to generate separately identifiable revenue.
These costs are included in the city net present value and IRR calculations.
F. Environmental Cost
85. The costs associated with the Implementation of Environmental Management Plan are
presented in the following table:
Table VIII-23: Environmental Costs
ENVIRONMENTAL SAHIWAL Total (Rp) Total ($US) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
- - - - - - - - - - - -
Total CAPEX - - - - - - - - - - - -
Implementation and Monitoring of EMP 21,890,000 207,506 - 51,877 51,877 51,877 51,877 - - - - -
Total OPEX 21,890,000 207,506 - 51,877 51,877 51,877 51,877 - - - - -

- - - - - - - - - - - -
Total OPEX + CAPEX 21,890,000 207,506 - 51,877 51,877 51,877 51,877 - - - - -
86. The budgeted costs activities required for implementing and monitoring the
Environmental Management Plan will ensure that proposed sub projects adhere to ADB and
Government of Punjab environmental safeguards. The main costs in the budget are related to
hiring of personnel, independent audit of environmental protection measures in place, testing of
environmental parameters (i.e., water, wastewater, air, soil, etc.) and transport. These costs are
included in the city investment, net present value and IRR calculation tables.
G. Land Acquisition, Resettlement and Social Rehabilitation Cost

87. Land acquisition and social rehabilitation costs are included in respective sector
investment and financing plans.
Table VIII-24: Social Costs
SOCIAL SAHIWAL Total (Rp) Total ($US) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Water sector projects - - - - - - - - - - - -
Drainage / Wastewater projects 100,711,984 954,699 - 954,699 - - - - - - - -
Transport projects - - - -
Solid waste management projects 203,225,544 1,926,476 - 1,926,476 - - - - - - - -
Total CAPEX 303,937,528 2,881,176 - 2,881,176 - - - - - - - -
Operational Expenditure (OPEX) - - - - - - - - - - - -
Total OPEX - - - - - - - - - - - -
Total OPEX + CAPEX 303,937,528 2,881,176 - 2,881,176 - - - - - - - -
88. The cost of land acquisition and resettlement was worked out based on the replacement
cost of affected land and structures in compliance with the ADB’s Safeguard Policy Statement,
2009 (SPS SR2, Para 10). For this purpose, the market survey was carried out in order to reach
the market based unit rate to be paid to Displaced Persons (DPs). Accordingly, PKR 303.93
Million are worked out for the compensation and livelihood restoration cost of WATSAN and
SWM components of Sahiwal city; however, these rates need to be confirmed during the
feasibility and detailed design stage (PPTA level). The detail of Land Acquisition and
Resettlement cost worked out on component basis is discussed as under;
88.1. The cost worked out for WATSAN is PKR.100.70 million, i.e. PKR 100.4 Million
as compensation cost for the loss of land, Tube well (irrigation pump), Farmhouse and
timber trees, while PKR 0.3 Million are calculated for the livelihood restoration and
rehabilitation of DPs.
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88.2. With the same principle of (ADB) compensation as per replacement cost basis,
PKR 203.23 Million were estimated for the SWM component (landfill site). Among the
total, PKR 200.90 Million is calculated as the compensation cost for the loss of land,
timber trees, tube-wells and farm houses while PKR.2.33 Million are calculated for the
livelihood restoration and rehabilitation purposes.
89. As per ADB’s safeguard policy, the compensation and rehabilitation cost will be paid prior
to the commencement of civil work.
H. City Investment and Financing overview

90. The following summary table brings together total revenues and costs for all investment
sectors combined.
Page 453
Table VIII-25: Total Revenue and Cost of All Investments
SAHIWAL CITY PROJECTS Total (Rp) Total ($US) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue
Water sector projects 64,469,176 611,136 33,361 34,362 79,288 90,722 45,434 46,797 112,375 54,611 56,249 57,937
Drainage / Wastewater projects 63,368,303 600,700 26,543 27,340 83,324 91,656 100,822 110,904 40,028 40,028 40,028 40,028
Transport projects 398,915,004 3,781,515 300,000 315,000 331,603 348,183 365,592 383,872 403,066 423,219 444,380 466,599
Solid waste management projects 50,728,223 480,878 - - - - 62,325 68,558 75,414 82,955 91,251 100,376
Institutional - - - - - - - - - - - -
577,480,706 5,474,228 359,905 376,702 494,215 530,561 574,173 610,130 630,882 600,813 631,908 664,939
Water sector projects 2,254,602,123 21,372,500 - 4,459,000 2,698,500 450,000 - 13,765,000 - - - -
Drainage / Wastewater projects 2,899,994,837 27,490,500 - 10,405,000 9,231,500 354,000 - 7,500,000 - - - -
Transport projects 424,016,896 4,019,468 - 3,224,704 794,765 - - - - - - -
Solid waste management projects 3,093,174,487 29,321,746 - 16,006,177 8,236,732 4,385,356 693,481 - - - - -
Resettlement and Rehabilitation Cost 303,937,528 2,881,176 - 2,881,176 - - - - - - - -
Environment - - - - - - - - - - - -
Institutional costs 726,272,511 6,884,700 1,679,000 1,910,000 1,295,700 - - 1,000,000 1,000,000 - - -
Total 9,701,998,382 91,970,090 1,679,000 38,886,056 22,257,197 5,189,356 693,481 22,265,000 1,000,000 - - -
Contingency 485,099,919 4,598,505 83,950 1,944,303 1,112,860 259,468 34,674 1,113,250 50,000 - - -
Total CAPEX 10,187,098,301 96,568,595 1,762,950 40,830,359 23,370,057 5,448,824 728,155 23,378,250 1,050,000 - - -
Water sector projects 1,120,517,209 10,621,942 356,728 418,780 591,140 749,054 825,705 890,358 1,510,673 1,628,958 1,756,506 1,894,040
Drainage / Wastewater projects 1,190,044,396 11,281,025 325,238 372,265 430,428 543,327 1,154,059 1,244,422 1,604,361 1,729,982 1,865,440 2,011,504
Transport projects 445,432,933 4,222,481 129,492 319,825 370,497 398,022 427,703 440,748 475,259 512,472 552,598 595,867
Solid waste management projects 6,952,516,791 65,906,380 - 3,201,235 5,099,239 6,375,580 7,013,484 7,562,640 8,154,795 8,793,315 9,481,832 10,224,259
Environmental 21,890,000 207,506 - 51,877 51,877 51,877 51,877 - - - - -
Institutional costs 553,826,700 5,250,000 450,000 735,000 630,000 430,000 505,000 625,000 675,000 450,000 375,000 375,000
Total OPEX 10,284,228,030 97,489,336 1,261,458 5,098,982 7,173,180 8,547,860 9,977,828 10,763,168 12,420,087 13,114,727 14,031,375 15,100,670
Grand Total CAPEX + OPEX 20,471,326,331 194,057,930 3,024,408 45,929,341 30,543,237 13,996,684 10,705,983 34,141,418 13,470,087 13,114,727 14,031,375 15,100,670
Table VIII-26: Financing Plan (all investment)
Financing Plan
($ Million)
Loan 86.91 44.79 86.91 90.00 - -

Counterpart Municipal Budget / Government Grant 107.15 55.21 9.66 10.00 97.49 100.00
Total 194.06 100.00 96.57 100.00 97.49 100.00
Page 454
91. The following table presents summary cost estimates of all the proposed capital cost of
the city investments.
Table VIII-27; Summary Cost Estimates – All Investment Program

Investment Program
(Million)
Item US$ Rs
A. Cost
1 Water sector projects 21.37 2,254.60
2 Drainage & Wastewater projects 27.49 2,899.99
3 Transport sector projects 4.02 424.02
4 Solid waste sector projects 29.32 3,093.17
Subtotal (A) 82.20 8,671.79
C Environmental - -
D Institutional cost 6.88 726.27
E Contingencies 4.60 485.10
Total 96.57 10,187.10
City Projects Financing
Table VIII-28: NPV and FIRR (All Sectors)

$
Year
2016 1,762,950 359,905 1,261,458 (2,664,504)
2017 40,830,359 376,702 5,098,982 (45,552,639)
2018 23,370,057 494,215 7,173,180 (30,049,021)
2019 5,448,824 530,561 8,547,860 (13,466,123)
2020 728,155 574,173 9,977,828 (10,131,810)
2021 23,378,250 610,130 10,763,168 (33,531,288)
2022 1,050,000 630,882 12,420,087 (12,839,205)
2023 - 739,214 13,114,727 (12,375,513)
2024 - 770,309 14,031,375 (13,261,067)
2025 - 803,340 15,100,670 (14,297,329)
94. Net present value of the proposed investments is US$ negative. It implies that the project
cash outflows are more than inflows. Further, keeping in view almost all negative cash flow
streams, FIRR analysis is not relevant.
Page 455
Table VIII-29: Sensitivity Analysis

Base Case (26.15)
96. The changes would adversely affect the cash flows of the projects
Economic Cost Benefit Analysis

I. Economic Benefits
97. The economic benefits of the projects comprise those gains to the economy that can be
measured in monetary terms as well as those benefits which, though socially desirable and of
great value, cannot be quantified and expressed in monetary terms. The following project
impacts will contribute towards economic benefits:
 Improved living conditions through better urban transport, solid waste, wastewater
and drainage solutions to reduce environmental risks and threats to human health.
 Improved water quality and health conditions for people through improved water
quality and water supply coverage
98. The economic benefits that can be measured and expressed in monetary terms include:
 The tariff revenue from water, wastewater and solid waste management
 Parking fee increments under transport sector
 Saving in operational costs which arise from the water and wastewater projects as
compared to operating the system without the projects; and
 Quantifiable health, environmental and increased economic activity costs/benefits
J. Economic Analysis Methodology

99. The economic analysis of the investments under the proposed projects was undertaken
in accordance with the principles and procedures set out in the ADB guidelines. The analysis
period covered the 10 years from the scheduled start of project implementation in 2016. Costs
and benefits are forecast at December 2015 prices. An exchange rate of $1 = PKR105.4908 was
used when converting foreign exchange costs to the local currency equivalent. All costs were
valued using the domestic price numeraire. The analysis derived the economic costs from its
financial estimates of investment and operating costs, adjusted for transfer payments and other
market distortions. 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 excluding all price contingencies, interest costs, taxes, and duties.
100. For each sector 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. Both costs and benefits were treated as increments
to a without-project situation. The economic viability of the project was determined by computing
the economic internal rate of return and comparing the result with the economic opportunity cost
of capital of 12%. A sensitivity analysis was performed to test the viability of the investments
Page 456
under scenarios in which such key variables as capital costs, operating costs and benefits
changed from those anticipated.
K. Measurement of Economic Benefits

101. Summary of economic benefits are presented in the following table:
Table VIII-30: Economic Benefits

Sector Economic Benefit Calculation Approach Estimated (Y/N)
Water Health:
Reduced incidence of disease – Estimate potential Y
direct health savings + improved reduction in water-related (Note A for
productivity disease cases and health cost
translate this into a health saving)
cost saving plus a
productivity increase from
more work days. Y
Reduced infant mortality (Note B for
Estimate potential productivity
reduction in infant (who increase)
are deemed most
vulnerable) mortality rates
arising from improved
water management and Y
translate this into a value (Note C for
based on Value of mortality saved)
Statistical Life (VSL) data
Operational cost impact:
Reduced Non Revenue Water Estimate potential Y
Lower electricity / other costs reduction in water (Note D)
Better water management by operational costs arising
customers from efficiency
improvements
Service impact – change in Estimate potential number Yes
customer connections (more of new water connections Revenue from
legal and illegal) & water and associated increase new water
consumption in water consumption (and connections is
connection) revenues calculated in
financial terms
and converted in
economic
values.
Direct economic impact:
Increased economic activity / Estimate potential impact No
employment on city economic activity The related
(using city GDP data) economic
arising from the benefits not
improvement in water quantified due to
service that make the city lack of
‘more livable’ quantitative
information at
PFS stage.
Page 457

Wastewater Health:
Reduced incidence of disease – Estimate potential Yes
direct health savings + improved reduction in wastewater- (Note A and B)
productivity related disease cases and
translate this into a health
cost saving plus a
more work days
Reduced infant mortality

Estimate potential Yes
reduction in infant (who (Note C)
are deemed most
vulnerable) mortality rates
arising from improvement
in wastewater
management and
translate this into a value
based on VSL data
Operational cost impact:
Reduced water treatment costs Estimate potential No
Lower electricity / other costs reduction in wastewater
operational costs arising
from efficiency
improvements
improvement in quantified due to
wastewater service that lack of
make the city ‘more quantitative
livable’ information at
PFS stage.
Drainage Avoided cost impact (i.e.
reduced asset damage from Estimate the reduction of Yes
flooding): the number of assets (Note F)
Houses damaged by flooding
Roads waters and assign a value
Industry to these assets (or
Other associated repair costs)
Emergency cost reduction Emergency cost data No

Health:
Reduced incidence of disease – Estimate potential No.
direct health savings + improved reduction in flooding-
productivity related disease cases and
translate this into a health
cost saving plus a
more work days
Reduced mortality
Page 458

Estimate potential No
reduction in flood-related
deaths arising from
improved flood
management and
based on VSL data
Direct economic impact: No
Increased attendance at Estimate the number of
work/school work days lost through
business and school
closures (the assumption
is that a potentially
working parent needs to
stay home with
schoolchildren) and
multiply this by average
salary data
Estimate potential impact No

Increased economic activity / on city economic activity
employment (using city GDP data)
arising from the
improvement in
wastewater service that
make the city ‘more
livable’
Solid Waste Health:
Reduced incidence of disease – Estimate potential Yes
direct health savings + improved reduction in solid waste- (Note A for
productivity related disease cases and health costs
translate this into a health saved)
cost saving plus a
productivity increase from Yes
more work days (Note B for
Reduced mortality improved
Estimate potential productivity)
reduction in infant (who
are deemed most
vulnerable) mortality rates Yes
arising from improvement (Note C for
in solid waste mortality saved)
management and
based on VSL data
improvement in solid quantified due to
waste service that make lack of
the city ‘more livable’ quantitative
information at
Page 459

PFS stage.
Transport Environmental:
Reduced emissions through Estimate reduction in No
increased use of public transport Greenhouse Gases The related
and potentially short travel (GHG) and multiple this economic
journeys vs. more people using by a carbon price benefits not
better roads quantified due to
lack of
information
about any
related
variables.
Operational costs:
Reduced petrol consumption Estimate the reduction in No
(and mechanical costs) through average travel journey Can only be
increased use of public transport time and multiply this by quantified on the
and potentially short travel average fuel consumption basis of traffic
journeys multiplied by the price of and related
vs. fuel and add a small (usage) surveys
more people using the roads component for reduced as part of a
mechanical costs feasibility
vs.
Estimate of the increase

in the number of journeys No
undertaken and May be
associated operational assessed in
and mechanical costs feasibility on the
basis of related
surveys.
Health:
Reduced mortality through Estimate potential Yes
improved road safety reduction in road deaths (Note C)
arising from investments
and translate this into a
value based on VSL data
Increased attendance at work Estimate the improvement No
in work time arising from May be
improved transport assessed in
infrastructure and multiply feasibility on the
this by average salary basis of related
data surveys.
Increased economic activity /
employment Estimate potential impact
on city economic activity No
(using city GDP data) May be
arising from the assessed in
improvement in transport feasibility on the
infrastructure that make basis of related
Page 460

the city more productive surveys.
Notes
(i) Saving in health costs
102. Current coverage of municipal water supply is 30% of the population. Further, 30% of the
Sahiwal population is suffering from water related diseases. This leads to 28,557 persons
(317,307x30%x30%) suffering from water related diseases, which are using municipality water.
An average monthly medical expenditure of Rs. 788 is incurred by a household in a project area.
The proposed investments would lead to a reduction in annual health cost of Rs. 39.71 Million
(788 x 28,557 x 12 / 6.8). Annual economic benefit of Rs. 39.71 Million or equivalent US$ 0.38
Million would therefore arise. However, 50% of this economic benefit amounting to Rs. 19.86
Million or US$ 1.88 Million is attributed to water related projects, and 50% is attributed to waste
water & drainage related projects.
103. Wastewater & drainage projects would not only affect the project area, but would also
impact the whole city. Economic effect on 30% of population has been quantified above.
Remaining 70% would also get direct health benefits due to improved sanitation in the city. By
considering annual saving computed above, and following a conservative approach, it is
estimated that out of the remaining 70% which are not currently connected to water supply
system, 35% would get direct benefits resulting from wastewater & drainage projects in the city
and their health cost will be reduced. Therefore, additional annual economic benefit of at least
Rs. 52.95 Million (39.71 / 30% x 40%), or $ 0.50 Million, would arise due to saving in health cost
as a consequence of wastewater & drainage projects.
104. According to social sector report 5% of the city population currently suffers from Malaria,
whereas another 29% is suffering from respiratory tract infections, another 2% is suffering from
Hepatitis B. However, 20% of the population is considered as suffering from diseases caused by
solid waste management issues. Although waste collection activities would not be covering the
full population, 80% population is expected to get benefit of reduced disease impact due to better
hygiene and health in the city as a consequence of improved SWM practices. Therefore, MTIIP
solid waste management investments are expected to save Rs. 70.60 Million (317,307 x 80%x
20% x 788/6.8 x 12) annually in health cost.
(ii) Economic benefits of productivity increase
105. Average monthly income per household is Rs. 38,700. Average household size is 6.8
persons. It translates into per-day income of Rs. 189.71 per person (Rs. 38,700 per household /
6.8 persons / 30 days). Therefore, economic value of one day of an economically active person
is valued at Rs. 189.71. 1.96 household members have economic activity. Therefore, 91,459
persons (28.82%) out of total population are economically active (317,307 population / 6.8
persons per household x 1.96 economically active persons per household) and 8,231 persons
are economically active out of 28,557 affected persons (Note A). An average four-day per month
productivity increase of the economically active persons would result due to MTIIP investments
from a diversion from medical related activities to economic activities of these affected persons. It
would translate into annual economic benefit of Rs. 74.95 million or equivalent to US$
0.71Million. Assuming that both water and wastewater contribute equally to water related
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diseases, 50% of this economic benefit amounting to Rs. 37.48 Million per year is attributed to
water sector projects whereas 50% is accounted for in the analysis of wastewater economic
benefits.
106. The above productivity increase is calculated for 30% of the population connected to
municipal water supply system. Since wastewater and drainage projects are likely to affect other
people also, it is estimated that out of the remaining 70%, productivity of another 30% would also
increase. Therefore, it would result into annual economic benefit of Rs.74.95 Million due to
productivity increase relating to waste water projects.
107. The persons suffering from diseases caused by solid waste management issues are
20%. This is represented by 18,291 affected persons out of 91,459 economically active persons
of the city. An average four-day per month productivity increase of the economically active
persons resulting from a diversion from medical related activities to economic activities would
translate into annual economic benefit of Rs. 16.56 million (91,459 x 20% x 189.71 x 4) or
equivalent to US$ 1.58 Million.
(iii) Economic Benefits of Mortality Saved
108. According to the WHO statistics, under-5 mortality rate per 1,000 live births in Pakistan in
2015 was 81. Crude birth rate is 26. This leads to 8,250 live births per year in the city (26/1,000 x
317,307) and 2,475 live births (30%) in the community covered by the municipal water supply
system. Out of these live births, under-5 mortality is calculated at 200 (2,475 births x 81 / 1,000).
Since 30% of the persons suffer from water related diseases which are normally life threatening,
this percentage is assumed to prevail in the causes of mortality also. A conservative estimate of
70% reduction in this mortality due to MTIIP investments would save 42 under-5 lives annually in
the project area (200 x 30% x70%). US Department of Transportation estimated economic value
of a statistical life (VSL) in year 2015 at US$ 9.4 Million. By converting this to Pakistan/US GDP
per capita ratio (US$ 1,275.30/53,041.98), it translates into US$ 0.23 Million or Rs. 23.84 Million
per statistical life. Therefore, annual economic value of saved lives due to the water projects is
estimated at US$ 9.50 Million per year or Rs. 1,001.35 Million.
109. The above economic benefit of saved lives is calculated for 30% of the population
connected to municipal water supply system. Since wastewater and drainage projects are likely
to affect other people also. It is estimated that out of remaining 70%, another 30% would also get
direct benefit of improved wastewater & drainage services in the city. Therefore 40% additional
under-5 lives would also be saved due to better wastewater & drainage services. Therefore, it
would result into annual economic benefit of Rs. 1,335.13 Million or US$ 12.66 Million due to
wastewater & drainage projects.
110. WHO’s 2012 data relating to Pakistan reflects that about 20.52% (83.8 out of 408.3)
deaths in children under-4 are caused by infectious and parasitic diseases. Solid waste has huge
impact on hygiene. However, keeping in view other factors, the impact directly relating to solid
waste management is reduced to 18%. There are currently 8,249 live births per year in the city
and by using under-5 mortality rate per 1,000 live births of 81, it is estimated that 153 deaths
(8,249 x 81 / 1,000 x 18%) are caused annually by the above diseases, which are due to solid
waste issues. A conservative estimate of 50% lives saved due to MTIIP investments would result
in saving of 60 lives annually in the city. Therefore, annual economic value of these under-4
saved lives would be US$ 13.56 Million or Rs. 1,430.50 Million.
111. WHO’s 2012 data relating to Pakistan reflects that about 2.3% (30.3 out of 1,332.2)
deaths are caused by road injury. Crude death rate is 6.94. These facts translate to 50 annual
deaths in the city relating to road injury (317,307 population x 6.9/1,000 crude death rate x 2.3%).
The MTIIP coverage to 60% of the population and a reduction of 40% in these deaths would
result in annual saving of 11 lives. The resultant annual economic benefit would be US$ 2.49
Million or Rs. 262.26 Million.
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(iv) Economic Benefits of Operational Costs Saving
112. A 10% reduction in existing operating expenses in water and wastewater sectors is
estimated which would amount to annual economic benefit of Rs. 7.19 Million (Rs. 71,941,200 x
10%).
113. Summary of quantified economic benefits is presented in the following table:
Table VIII-31: Summary of Economic Benefits

Wastewater &
Economic benefits Total Annual - Rs Water projects Solid Waste Transport Drainage
projects
A Health Cost Saving (A) 163,260,051 19,855,952 70,598,941 - 72,805,158
B Productivity increase 316,469,924 37,476,702 166,563,118 - 112,430,105
C Mortality Saved 2,694,098,780 500,673,225 1,430,494,927 262,257,403 500,673,225
D Operating Cost Saving 8,694,120 7,194,120 - - 1,500,000
Total - Rs 3,182,522,875 565,199,998 1,667,656,986 262,257,403 687,408,487
Total - US$ 30,168,724 5,357,813 15,808,554 2,486,069 6,516,289
L. Economic Net Present Value (ENPV) & Economic Internal Rate of

Return (EIRR)
114. The following table provides calculation of EIRR (%) and ENPV ($ Millions) of all the
projects:
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Table VIII-32: EIRR and ENPV Benefits
Water Supply WasteWater / Drainage Transport Sold Waste

Year
CAPEX OPEX Benefits NB CAPEX OPEX Benefits NB CAPEX OPEX Benefits NB CAPEX OPEX Benefits NB
2016 0.00 0.32 0.03 (0.29) 0.00 0.29 0.03 (0.27) 0.00 0.12 0.30 0.18 0.00 0.00 0.00 0.00
2017 4.21 0.35 0.03 (4.53) 10.73 0.31 0.03 (11.02) 3.05 0.28 0.32 (3.01) 16.95 2.88 0.00 (19.83)
2018 2.55 0.48 0.08 (2.95) 8.72 0.34 0.08 (8.98) 0.75 0.31 0.33 (0.73) 7.78 4.36 0.00 (12.15)
2019 0.43 0.58 5.45 4.44 0.33 0.41 6.61 5.86 0.00 0.31 2.83 2.52 4.14 5.15 15.81 6.51
2020 0.00 0.59 5.40 4.81 0.00 0.92 6.62 5.69 0.00 0.31 2.85 2.54 0.66 5.28 15.87 9.94
2021 13.01 0.59 5.40 (8.20) 7.09 0.92 6.63 (1.38) 0.00 0.30 2.87 2.57 0.00 5.28 15.88 10.60
2022 0.00 1.09 5.47 4.38 0.00 1.16 6.56 5.40 0.00 0.30 2.89 2.59 0.00 5.28 15.88 10.61
2023 0.00 1.09 5.41 4.32 0.00 1.16 6.56 5.40 0.00 0.30 2.91 2.61 0.00 5.28 15.89 10.61
2024 0.00 1.09 5.41 4.32 0.00 1.16 6.56 5.40 0.00 0.30 2.93 2.63 0.00 5.28 15.90 10.62
2025 0.00 1.09 5.36 4.27 0.00 0.03 6.56 6.53 0.00 0.53 2.95 2.42 0.00 5.28 15.91 10.63
2026 0.00 1.09 5.36 4.27 0.00 0.03 6.56 6.53 0.00 0.53 2.98 2.44 0.00 5.28 15.92 10.64
2027 0.00 1.09 5.36 4.27 0.00 0.03 6.56 6.53 0.00 0.53 3.00 2.47 0.00 5.28 15.93 10.65
2028 0.00 1.09 5.36 4.27 0.00 0.03 6.56 6.53 0.00 0.53 3.03 2.49 0.00 5.28 15.94 10.66
2029 0.00 1.09 5.36 4.27 0.00 0.03 6.56 6.53 0.00 0.53 3.05 2.52 0.00 5.28 15.96 10.68
2030 0.00 1.09 5.36 4.27 0.00 0.03 6.56 6.53 0.00 0.53 3.08 2.55 0.00 5.28 15.97 10.69
ENPV 7.04 7.09 8.43 19.41
EIRR 28% 19% 52% 24%
115. The ENPV of all the projects calculated at 12% cost of capital is positive with the greatest
value on SWM projects. EIRR of all the projects is also higher than economic cost of capital of
12%. Transport sector projects have the highest EIRR. Therefore, all the projects are
economically viable.
M. Economic Sensitivity Analysis

reduction in benefits is undertaken with the results provided in the following table:
Water Wastewater & Drainage Transport SWM

Sensitivity Analysis ENPV EIRR ENPV EIRR ENPV EIRR ENPV EIRR
$ Million % $ Million % $ Million % $ Million %
Base Case 7.04 28% 7.09 19% 8.43 52% 19.41 24%
1 Capital Costs +10% 5.84 24% 5.24 17% 8.13 48% 17.20 22%
2 Operating Costs +10% 6.56 26% 6.75 19% 8.21 50% 16.55 22%
3 Benefits -10% 4.65 22% 4.18 16% 7.07 46% 12.40 20%
117. All the projects are most sensitive to a 10% reduction in benefits than a 10% increase in
OPEX or CAPEX. However, ENPV of all the projects remains positive within the sensitivity
factors applied and the EIRR is positive compared with the economic cost of capital. Hence all
the projects are categorized as economically acceptable.
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REG-8556
CHAPTER IX
Implementation
April 2016
project’s design
Urban Infrastructure Investment Program Chapter IX
and Pre-Feasibility Study of Sahiwal, Pakistan Implementation
Design Monitoring Framework
A. Background and Concept

1. Demonstrating institutional performance, impact and sustainability of the Sahiwal MC is
critical to the aims and objectives of the PICIIP. Effective measurement of its improved
performance will help to make more informed management decisions over the course of the
delivery of the program.
2. Given the entire lack of M&E capacity within the city beyond the monitoring of physical
and financial targets, the approach will be incremental and focused on key indicators and issues.
Bearing in mind the scale at which the line departments will up take investments made by the
PICIIP, a robust and sustainable system of M&E will depend on being simple, focused and
realistic in this context. While participatory methodologies will be used, particularly in planning
and impact assessments, the focus will be on building partnerships between Sahiwal and the
private sector, its business community and the Chamber of Commerce and Civil Society actors
involved in provision (including NGOs and CBOs). Some of these have greater capacity and
flexibility in using these methodologies. These partnerships will enhance in-house capacity, and
provide for a more participatory and sustainable system for tracking and monitoring results,
rather than over-burdening Sahiwal’s TOs and line departments in an area where they do not
have a comparative advantage. Participatory M&E methods will also be particularly important in
empowering communities. There will be a strong emphasis on engaging women in the process
as identified in the pro-poor growth and social mobilization section of this Report.
3. While M&E activities are as applicable to the domain of individual performance

management as they are to group-wide, cluster or departmental performance management, the
primary focus for the type of system being proposed is on M&E in the context of the latter areas.
Included in the emerging framework and complementary to the delivery of infrastructure is the
need for Sahiwal to establish a rigorous M&E approach, clarity on the key concepts included in
the M&E Framework, and input on how other spheres of government and delivery agents
external to the MC will address this issue.
4. There is also a need to address learnings emerging on the outputs of the activities from
PICIIP (and other city specific) investments and the requirements for a successful M&E
approach.
5. However, new priorities, challenges and changes within Sahiwal, across other spheres of
government, and within broader society have heightened awareness of the importance of
meaningful M&E processes. The City’s policies, procedures and systems associated with the
inter-related areas of performance management, monitoring, evaluation and reporting should
also change in line with the proposed investments. The wider set of policies, procedures and
systems associated with performance management – the domain within which M&E activities fall
– have shifted over time due to the following needs, amongst others:
5.1. The imperative to deliver to Sahiwal’s citizens and to meet commitments made to
its wider spectrum of stakeholders – adapting methods for delivery where necessary;
5.2. Managerial requirements identified as necessary for successful delivery of duties

– e.g. accurate, data-rich information, and ongoing tracking of delivery, to support
continuous and improved provision of goods and services;
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5.3. The need to account and engage in two-way discussion with various
stakeholders;
5.4. Good practice requirements and legislative and regulatory amendments,

necessitating improvements – e.g. to governance arrangements and performance audit
approaches; and
5.5. Changes resulting from revisions to the city’s institutional model, with each
amendment leading to shifts in roles and responsibilities, reporting lines and supporting
systems such as those associated with M&E.
6. In Sahiwal’s efforts to embed performance management practices and with this, practices
related to M&E, a number of challenges may emerge – with each holding the potential to
undermine the original intentions of these related systems. While many of these challenges may
be associated with the broader performance management framework itself, a few of the issues
specific to M&E include the following:
7. The tendency for many to focus primarily on the link between individual performance and
reward when establishing plans of action for the year ahead, with the resulting risk that the
content of plans is potentially driven by reward as the end-focus, rather than the need to ensure
alignment with longer-term outputs and outcomes necessary for delivery on a city-wide strategy
agreed and dovetailed with LG&CDD. With this comes a challenge for M&E activities: a focus on
indicators and targets that do not align with the organization’s long-term direction or objectives.
8. Linked to the above, a particular challenge relates to the question of whether sectoral or
departmental scorecards (if this is the option to be favored and implemented), together, align with
the outcomes defined in Sahiwal’s strategic plan, the city’s MTIIP, the IDP, and long-term plans
promulgated by the government.
9. Losing track of this long-term focus means, ultimately, a misalignment between daily
activities and the objectives committed to through public engagement through (for example) the
ICDS strategic goal setting and visioning exercise.
10. The need for a greater variety of information sources to inform evaluation – e.g. input
from UC representatives.
11. While the above requires a more holistic focus on performance management and
governance, Sahiwal should choose to hone in on M&E, given the potential short, medium and
long-term delivery-related consequences that may result from successful improvement to this
element.
12. Nationally, the benefits to be realized from effective and efficient M&E activities –
particularly in supporting governance and delivery-related objectives in intermediate cities – have
become more apparent. Sahiwal and Sialkot have both acknowledged the need for
improvements to their internal processes, to ensure effective rollout of the PICIIP through greater
alignment between the MTIIP and other government plans, and city level goals and aspirations.
As a result, the core priorities underpinning the PICIIP (i.e. establishment of sustainable services
and settlements; resource security and environmental sustainability; an inclusive economy;
eradication of poverty and enhanced social inclusion) will be used as the foundation for the
proposed governance arrangements for Sahiwal as noted in Chapter VI.
13. Through implementing revisions to their governance structure and ensuring that M&E
tracks progress and informs learning and polity, Sahiwal should aim to establish:
13.1. A city-wide understanding of M&E;
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13.2. A common, standardized language and approach for the application of M&E
principles across the city as a whole;
13.3. Enhanced M&E practices – in terms of M&E methodology and tools, and the
quality, frequency and application of findings;
13.4. Clarity in relation to the roles and responsibilities of all those who are directly or
indirectly involved in delivery of essential services and city functions;
13.5. The means through which to institutionalize M&E – and ensure application of
learnings arising from analysis, for improved delivery and policy basis;
13.6. A mechanism for greater integration of M&E practices within participation,

planning, budgeting, delivery, policy development, oversight, reporting and governance-
related processes and mechanisms; and
13.7. Greater transparency and accountability, through the generation of sound

information – to be used in reporting, communication and the improvement of delivery.
14. The above considerations have been factored into the flowchart that defines how the
Design Monitoring Framework will track the progress of city level investments. This flowchart is
presented as Figure IX-1 overleaf:
15. The PICIIP is expected to identify and support a range of infrastructure activities aimed at
supporting city governments in addressing constraints impeding the efficient and effective
delivery of infrastructure and its related investments. In assisting this process, the PICIIP will
contribute to economic growth, social and cultural inclusion and respond to climate change
through building improved resilience’s.
16. A significant component of the PICIIP needs to consider necessary steps in governance
and innovative financial mechanisms to allow cities to better plan, manage and deliver their own
infrastructure services. Historically, these preconditions for creating an ‘enabling’ environment
for urban services have been missing. They are important steps in infrastructure project
development and implementation, help to reduce uncertainties in the policy and regulatory
environment and improve capacities for city-level infrastructure investment and management.
17. This PICIIP process poses some challenges from an M&E perspective. Experience from
South-Asia as well as elsewhere in Pakistan confirms that there is no pre-determined set of
causal relationships between outputs and outcomes with matching indicators, as would be the
case for a project approach. This is because:
 There are no defined infrastructural outputs or outcomes determined prior to the Study;
these have evolved through the ICDS process and CRVA studies;
 The objective under each component is not those that can be measured using specific
individual indicators, but rather using defined common themes (e.g. evidence of improved
capacity to implement and manage infrastructure, strengthened regulatory and policy
environments and coordination and interaction with other donors supporting infrastructure
investment);
 Activities to be funded under the PICIIP have not been pre-determined but often based
on agreed selection criteria and emerging priorities (in dialogue with various government
and non-State agencies).
18. Funding and implementation of MTIIP investments have been determined by priorities
defined by various stakeholders as noted in Chapter V of the Report. Investments have been
further refined by using activity screening tools that the PFS team have applied in the field.
These have been vetted and discussed with government and other key stakeholders. Once this
has been confirmed, the pre-feasibility and engineering concepts presented in Chapter VI of this
Page 469
Report can then be further detailed at the PPTA stage. The PICIIP level documentation
presented in this Report reflects these levels of details and the corresponding engagement and
dialogue. Overall, the PICIIP process has been designed and applied in such a way so as to:
 Contribute to lessons learned;

 Reflect on the activities that work well and the factors which contribute to this success;
 Promote joint ownership of development outcomes and impacts;
 Use existing systems at all times where possible
 Link in with other multilateral and GoPb funded programs;
 Promote poverty alleviation and climate responsive environmental policies as key
strategic documents guiding implementation and management.
19. Some general points about the Design Monitoring Framework (DMF):
20. The DMF follows a logical sequence that has identified the four PICIIP program
outcomes that have been refined in the original TORs. These should be revised prior to
proceeding to the detailed design stage and the PPTA. Reworked, the four program outcomes
are:
1. Mainstream the delivery of strategic, development and financial planning at city levels;
2. Create improved operating environments for additionality to MTIIP investments, including
a focus on providing international experience and perspectives on regulations and
policies, particularly in sectors with limited governance and delivery experience;
3. Develop increased capabilities at government and non-State levels to formulate
development-oriented infrastructure projects, and to address implementation barriers;
4. Policy-relevant support to reform operating environment and governance landscape. In
particular, strengthen business processes of urban utilities;
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Figure IX-1
outputs to outcomes:
1. Mainstream the delivery of strategic, development and financial planning at city levels;
PICIIP 2. Create improved operating environment for additionality to MTIIP investments including
inputs a focus on providing international experience and perspectives on regulations and
policies, particularly in sectors with limited governance and delivery experience; outcomes impacts
3. Develop increased capabilities at government and non-State levels to formulate
development-oriented infrastructure projects and to address implementation barriers;
4. Policy-relevant support to reform operating environment and governance landscape. In
particular strengthen business processes of urban utilities;
Assumptions, External Factors
 Macro-economic climate does not

deteriorate significantly;
Providing technical assistance and analytical work to support  Political commitment to
regulatory improvements and enhance the scope for deepening infrastructure development and
the market for city investments in infrastructure; growth is maintained at the city
Senior level strategic engagement with government partners, and provincial levels;
financial sector partners and other financial intermediaries for  Credit risk stable especially
supporting municipal investments; pertaining to infrastructure;
 Political will exists to make
Supporting pilot projects through PPP market studies, feasibility necessary decisions and reforms
studies or transaction support to accelerate delivery of proposed
Key PICIIP
Financial: MTIIP investments
New or innovative use of financial products, instruments to Partners
ADB MFF:  Reforms in evidence based
address the risk/challenges in infrastructure sub-sectors
USD > $500M Cities Private sector regulatory changes in
USD $1M in TA (Sahiwal & Enhanced investments infrastructure sub sectors (incl.
System support and capacity building of partner institutions, Sialkot) capacity to and removal of bottlenecks)
Co financing by provincial partners for improved service delivery environment further confidence forthcoming over longer term;
partners, encouraging private sector participation in city-level Urban Unit improve increased in  Provincial level commitments to
including: investments; investment the the sector to incentivize
LG&CDDD climate for infrastructure development e.g. – clearance for
IFC/WBG Assist in putting regulations in place that bring frameworks for cities and sector projects, tax incentives, tariff
Planning & their
improved municipal service delivery in line with what Development structure for private sector/PPP
JICA intermediate cities need and international standards; infrastructure developers in intermediate cities;
Department
DFID investments;
Support analysis and system building that effectively addresses
concerns around dealing with cost recovery and environmental
clearances, in a timely and fair manner;
Platform for stakeholder groups, think tanks and working

groups at provincial and national levels to innovate new
models;
Case studies on successful/innovative interventions;
Analysis on the differential impact that city investments have on
poverty, gender, inclusion, and safety as well as climate
change;
Indirect beneficiaries would be upstream/downstream jobs, users of infrastructure (local businesses, logistic providers and
households) including many women and children
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Key Result Area 1: Mainstream the delivery of strategic, development and financial planning at
city levels
Performance Indicators: Activities implemented according to agreed priorities, work plans and
budgets
Performance Questions: Do cities and others in the PICIIP process understand their roles and
responsibilities as active participants in the planning, delivery, selection and maintenance of
agreed activities? Have the right activities been selected in accordance with priorities? Have all
activities met agreed objectives and deliverables?
Responsibility: Activity selection criteria are the central theme to be measured here.
Responsibility lays with the individual cities as agreed with GoPb to ensure activities are
consistent and align to agreed priorities as determined through stakeholder consensus and
ICDS processes so that resource allocation between sectors and thematic areas is demand-led
and appropriate.
Process: Interaction between technical teams and all other stakeholders (including, but not
limited to government).
Key Result Area 2: Create improved operating environments for additionality

Performance Indicators: Funding allocated to priority MTIIP activities. Improved engagement
with key stakeholders (external and internal) and increased coordination at all levels of
government. Strengthened partnerships between service or activity partners, especially at city
levels.
Performance Questions: Has the PICIIP and MTIIP investments facilitated the creation of new
service delivery partnerships and strengthened existing ones? Are sufficient resources
available to promote improved service delivery or the partnerships that will ensure them? What
influence has improved partnership had on municipal service quality? Have partnerships
created opportunities for new engagements and interactions? Is the purpose and objective of
the PICIIP still consistent and appropriate? Are resources being allocated appropriately? Are
activities adhering to the agreed selection criteria and/or ICDS priorities? Is there evidence of
ongoing improvements to management processes and are good relations with service delivery
partners maintained? Are cross-cutting themes and ADB policies being applied to all
development and investment activities? Is the risk management strategy relevant and
appropriate to responding to inclusion, competitiveness and resilience objectives?
Responsibility: GoPb and its partners are responsible for identifying and exploring new
partnership opportunities. Responsibility for delivery lays with city-level agencies and the new
implementing models to provide appropriate feedback on their perceptions of the investments
and the PICIIP process overall. The PICIIP coordinating office will also be responsible for
reviewing management performance at agreed reflection events during the course of each year
or investment horizon.
Process: PICIIP actors/partners to discuss partnership options and assess quality of
partnerships during reporting phases. Annual review of activities and annual reflection event.
ADB and other like investors to undertake periodic review with PICIIP management and cities.
A specific external evaluation could be considered where relevant and appropriate. Request for
feedback from activity implementers on PFS/PPTA and other PICIIP Teams over the course of
their engagement.
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Key Result Area 3: Develop increased capabilities at government and non-State levels
Performance Indicators: Improved capacity of partners to identify and agree on infrastructure
priority activities. Capacity building initiatives in planning, management and technical areas
should be complementary to this and integrated/mainstreamed as a function of delivery rather
than as a tangential item.
Performance Questions: Is there agreement on all infrastructure priorities? Do PICIIP partners
and all levels of government (especially cities) agree on priority sectoral areas for work? Have
partners made improved choices in selecting activities to finance and implement? Do cities and
the service delivery agents (new or existing) demonstrate strengthened capacity to set strategic
direction? Are activities with capacity building elements contributing to improved awareness
regarding infrastructure investment and management? Is there a clear and explicit response to
climate change?
Responsibility: PICIIP partners (PFS and other Teams as well as government and non-state
actors) are responsible for the selection of sectoral infrastructure activities based on agreed
priorities and work plans emerging from the ICDS and CRVA processes. The newly
institutionalized processes emerging from the first two PICIIP cities help partners improve
capacity, particularly for infrastructure investment and management for remaining cities and for
further downstream investment by ADB and other donors, but increasingly the private sector.
Communities (Mahallahs) see improved services as a justification to undertake their own
initiatives as well as increasingly contribute to municipal revenue sources.
Process: Interaction between PFS and other technical team’s representatives and PICIIP
agencies within government. There will need to be periodic reviews of activities that have
specific capacity building outputs and objectives.
PICIIP Key Result Area 4: Policy-relevant support to reform operating environment and
governance landscape
Performance Indicators: Implementation of improved policies, regulations and institutional
arrangements at city and provincial levels.
Performance Questions: Have agreed policy and regulatory reforms been implemented? Has
the program prioritized non-State and alternatively financed projects, or is there still a reliance on
government-led financing and subsidies at city levels? Have financing arrangements been
expanded, improved and further liberalized? Have policy reviews and regional planning
processes improved? Is the ICDS an institutionalized process? Have reforms contributed to
improved efficiencies and decision-making processes between all constituents and stakeholders,
especially at the city level?
Responsibility: The GoPb will likely be responsible for the management of activities that directly
relate to policy and regulatory reforms, but it should take its direction from demands created at
city-levels. PICIIP partners at GoPb level will be responsible for leading the ongoing reform
process, but cities and change makers at local levels need to have a bigger stake in this.
Development and/or adjustment of policies in light of the changes and deficiencies highlighted in
the CRVA, ICDS/RUA processes need to be considered. These have been further discussed in
the governance section of Chapter VI of the Report.
Process: Consultation between the various technical teams and the government-level PICIIP
personalities and institutions need to focus on regulatory reform and strategies to link reform to
policy improvements. Some of this work has already started with LG&PDD. Specific results from
the PFS and other studies will need to be assessed through the activity level M&E at PPTA stage
which will provide further information for reporting at the program level as the PICIIP is
mainstreamed.
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Figure IX-2: Areas for Investigation and Tools/Techniques to be employed to track

changes resulting from the PICIIP:
POSSIBLE AREAS OF FOCUS POSSIBLE EVALUATION TECHNIQUES
Strategy and Direction: Is the PICIIP Program or Project Memorandum; Work Program;
following a work program that has been Log Frame; Social Network Analysis; Impact
derived from the original PICIIP design Pathways; Modular Matrices
document as agreed with GoPb to
achieve the desired outcomes?
Management: Are systems and ‘Fit for Purpose’ Reviews; ‘Light Touch’ Quality Audits;
processes in place to ensure that the Horizontal Evaluations; Appreciative inquiries
overall PICIIP strategy is carried out
and that high-quality achievement of
the goal and purpose are likely? Are
these evident, followed and accepted
by the Team and being proposed to
cities?
Outputs: Has (or will) the PICIIP likely Randomized sampling and physical verification of
produce tangible and visible outputs; Accounts checks and Audits of various sorts;
improvements in urban services, After Action Reviews
particularly to poor, excluded or other
vulnerable groups? If the specific
improvement at city level is supported
to provide toilets or household water
connections, for example, can these be
counted and triangulated in the field
and with users and reconciled with
municipal budgets?
Uptake: Are constituents accepting and Impact Logs and Life- Diaries; New Areas for Citation
willing to absorb the improvements and Analysis; User Satisfaction Surveys
benefits offered by scheduled MTIIP
investments? What are the responses
from intended users of the improved
infrastructure and urban services?
Outcomes and impacts: What, if any, Outcome Mapping; RAPID Outcome Assessments;
are the changes in the Most Significant Change Mapping; Innovation
incomes/consumptions/expenditures of Histories; Episode Studies/Life-Diaries
behaviors, knowledge, policies,
capacities and/or practices that the
PICIIP has contributed to, directly or
indirectly?
21. Project monitoring activities will be led by the PICIIP secretariat at the GoPb level. The
secretariat, based within the Urban Unit will coordinate M&E activities for all city-level activities at
the provincial level. The information used to manage the M&E process will be derived from the
cities themselves. The Urban Unit has already established this mechanism. At the field level, in
each of the intermediate cities of the PICIIP, M&E data and information will be collected by the
specific city teams who will be managed by the Urban Unit. M&E data will be intrinsic to
identifying lessons learned and the PICIIP M&E systems should be developed from that
perspective, starting with a clear focus on the overriding purpose as stated in the program
document and MFF. There is an acceptance and understanding that while many discrete
activities will be funded over the life of the PICIIP, each activity proposed in the MTIIPs of
Chapter VI is a mechanism to build or forge relationships between the GoPb, intermediate cities
and the non-State actors within the cities as well as civic bodies that have a vested interest in
ensuring resilience, competitiveness and inclusion within the target city. When fully designed
Page 474
during the PPTA stage, the M&E tools will be able to capture information about the extent to
which specific city-level activities contribute to productive partnerships, the inclusion of the
vulnerable and marginalized, and the types of responses that result in tangible and visible
benefits. The GoPb already have considerable experience in using cutting-edge technology for
this end.
Implementation and Delivery Plan

22. The design of the MTIIP implementation and delivery plan is presented overleaf in Figure
IX-3 and is based on the following main considerations and circumstances:
 Commitment to inclusion and city ownership and continuous dialogue: The role of
the PFS Team is to assist cities in formulating the investment and infrastructure
proposals that respond to the priorities as articulated in the ICDS process whilst being
cognizant of the constraints raised by the CRVA. Investments need to be understood
and accepted by those they will ultimately serve, and who will bear the burden of paying
for them. These need to match the genuine needs of each city and its citizenry;
 Commitment to capacity building: The view of the PFS Team is that the PICIIP is
mainly one of long term institutional and capacity building for cities – a greater emphasis
on initiating a process towards delivering sustainable changes via infrastructure
improvements is only the start of a process rather than an end in itself;
 Improvement and access to finance: To enable cities to plan, deliver and implement
services based on felt needs; and
 Donor and partner co-ordination: The PFS Team is concerned to see inefficiency and
overlap in development efforts, because of failures to effectively coordinate initiatives in
the past. The cities benefitting from PICIIP investment and GoPb must make a
commitment to each other to maintain a continuous dialogue with each other and with
other donors involved in the urban sector to achieve a common developmental purpose.
23. The proposed implementation and delivery plans have been presented in Chapter VI.
These have been summarized overleaf. All of these graphic representations of information have
been prepared on the basis of the activities determined from the consultations in the field with
government and other stakeholders at various levels. The implementation plans have also been
costed in the MTIIPs accordingly.
24. The first two months of implementation will be vital to the successes of proposed
investments. Every effort will need to be made to co-ordinate the investments proposed at the
end of the PFS stage with the designs emerging from the PPTA work. It will be necessary to
achieve early successes, as this will enable cities to achieve the credibility required amongst all
stakeholders, thereby obtaining the necessary ‘buy-in’ from all parties that will eventually drive
the PICIIP process. Credibility from taxpayers at the Mahallah level will be particularly crucial, as
their commitment and willingness to pay more based on improved service delivery will be tested.
25. The intention is to fast-track key investments in Sahiwal and Sialkot proposed in Chapter
VI through verifying these with initial reviews and assessments and forward planning exercises
during the early months of the PPTA initiative. This should be planned through the front-loading
of inputs of the PPTA activities. Involving individuals with key experience in the PICIIP sectors
identified and extensive experience of other urban initiatives in Pakistan will ‘flatten’ the learning
curve of the PICIIP teams, and allow results to materialize and percolate to Sahiwal and Sialkot
more rapidly.
Page 475
Figure IX-3: Implementation Plan – Sahiwal

ICDS Approach Adopted Formal external monitoring and evaluation
Design/Plan/Train Implement On-going Implementation/Management
Component 2015 2018 2023 2030 2035

Short Medium Long-Term
National - Provincial Policy Integration

Province-District-City Policy Support & Integration
Provincial Technical Support
On-Going Monitoring and Evaluation
Institutional
ICDS Integration into Planning Processes
Institutional Capacity Building - City Level

Strategic Planning
Financial Management
Planning & Development - City Level

Strategic Growth Planning
Strategic Financial Planning
Land Use Planning - City Level
District Planning Integration
Redevelopment, Densification Planning
Detailed UC/Mahallah Planning
Development Control
Urban Regeneration Vehicle - Establish
Sector Strategies
Social Development
Economic Development
Street Management
Mobility/Transport
Public Transit
Multi-Modal Hub
Existing System Upgrading, Expansion
Climate Change Resilience Responses
Page 476
Component 2015 2018 2023 2030 2035

Short Medium Long-Term
Urban Design, Public Open Green
Water Supply
Sanitation & Sewerage

Drainage

Heritage
Programme, Preserve, Manage
Page 477
Figure IX-4: Design Monitoring Framework
Design Summary Performance Targets Data Sources/ Assumptions

and Indicators Reporting and Risks
Mechanisms
Impact
Improved urban GoPb and Some initial and
Urban populations in services including national key risks identified
key intermediate 24X7 water supply, sample in Figure IX-1
cities have improved improved (affordable surveys above
access to and accessible) road
infrastructure facilities and transportation Customer surveys
that directly respond facilities, and a results from water Provincial and city
to improved cleaner and healthier supply, sewerage, governments
resilience’s, urban environment solid waste commitment to urban
competitiveness and (safer and cleaner management, and sector development
inclusion. sanitary and domestic BRT operators and reforms.
landfills, improved
centralized sewerage Independent and Sustained economic
treatment etc.) periodic reviews growth in Punjab and
based on Pakistan in general
information, data
and baselines Risk
collected during Political and
PFS, ICDS and economic
CRVA instability.
assessments and
as presented in
Chapter VI,
Chapter V and
Chapter IV of this
Report
Outcomes
Baseline and Assumptions
1. Mainstream the completion
delivery of socioeconomic Continued growth
strategic, surveys. in demand for
development and water supply and
financial planning sanitation services
at city levels; FGDs and key to achieve full
informant capacity utilization
2. Create improved interviews
operating undertaken at PFS Risks
environments for level Population and/or
additionality to traffic growth varies
MTIIP Urban water supply significantly from
investments To be agreed and and sanitation estimates
including a focus confirmed at PPTA improvement
on providing stage, but initial program
international targets and indicators reports/surveys
experience and noted above
perspectives on MC/city-level
regulations and customer
policies, satisfaction surveys
particularly in
sectors with Annual reports of
Page 478
limited the PICIIP as

governance and undertaken by an
delivery independent
experience; evaluator
3. Develop Various Punjab level

increased statistical reports as
capabilities at citied throughout
government and this Report
non-State levels
to formulate
development-
oriented
infrastructure
projects and to
address
implementation
barriers;
4. Policy-relevant
support to reform
operating
environment and
governance
landscape. In
particular,
strengthen
business
processes of
urban utilities;
Beyond the PFS Stage and into the PPTA:

26. Based on the work presented in Chapters III through Chapters VI, the way ahead for the
PICIIP as noted in the aforementioned Delivery Plan also needs to take note of the following
recommendations and activities:
 PICIIP cities will need to adopt multi-year capital budgets, adopt fund accounts wherever
possible, use accrual accounting with an annual measure of depreciation or capital
replacement costs, and develop and document asset management programs;
 Capital investments beyond the MFF and PICIIP at city-level should be financed by its
beneficiaries: those who benefit from local infrastructure and the services it provides
should pay for it;
 Starting with Sahiwal and Sialkot, PICIIP cities should adopt demand-management and
conservation-based pricing for their services, by charging for water and sewage
according to usage, and charging for landfill use by weight or volume, and charging for
recreation facilities according to usage. This will start to develop a longer term culture of
paying for essential services as well as recognizing that essential urban services are
being managed as both an economic as well as social good. At the moment, very few
examples of this exist in Pakistan. Without development of such a culture, the longer
term issues noted in Chapter II will unlikely be resolved;
Page 479
 PICIIP cities should consider financing short-lived assets via general revenues, and use
debt to finance more substantial or primary infrastructure that benefits future generations;
 As discussed in Chapter VIII of this Report, PICIIP cities need to consider applying
development charges with variable rates (to capture differences in costs for financing)
and use special charges for projects that benefit specific properties. Earmarked user fees
are appropriate for financing capital projects where specific beneficiaries can be identified
and all costs captured;
 The GoPb, which currently controls some of the revenues of cities, should permit them to
issue revenue bonds for local infrastructure that generates a reliable annual revenue
stream. They should permit municipalities to levy a dedicated municipal fuel tax,
additional taxes on local parking lots, automobile registration fees, and congestion or toll
charges, and introduce legislation permitting cities to employ tax increment financing for
Brownfield remediation, urban redevelopment and infilling;
 And finally, key municipalities should evaluate public-private partnerships (P3s) for
financing and delivering suitable infrastructure projects. This needs to be explored in
much more detail during the PPTA phase or through a separate TA initiative, either by
the ADB or explored through donor partnerships.
B. Medium Term Infrastructure Investment Plans (MTIIP)

27. The spreadsheets noted in the preceding Chapter VI provide an initial draft
implementation schedule for the proposed medium-term investments for the various priority
sectors mentioned in this Report. They are draft and to be used as a basis for discussions only.
Meanwhile, government have agreed to lead the consultations process with the cities and their
various stakeholder groups. The following MTIIPs, as briefly explained as follows, are to be
refined during the draft final phase of the PFS.
27.1. As outlined in this report, and as shown on the schedule, key urban sectors will
be transformed by the resulting investments if there is adequate consultation. If
anticipated progress can be achieved in the agreement of the various proposals and their
prioritization, some of the work can be initiated for detailed design as early as March
2016. This could possibly mean delivery of initiative by 2017. It is therefore important in
the next PFS phase to develop strategies to ensure that delays do not materialize.
27.2. As shown, it is envisioned that the PFS will be immediately followed by

implementation of PPTAs for key sectors (particularly SWM) for the MFF, commencing in
early 2016 and completion by late 2016. Well-structured reviews and approvals could
then possibly lead to approval of the MFF by late Q1 of 2017.
27.3. Many activities are planned for implementation during the overall PPTA
processes. These will vary based on the selection of priority investments agreed and
confirmed during the consultation rounds. Generally following a ‘feasibility assessment,
design, permitting’ development pathway, and leading then into procurement at or just
prior to proposed loan approval. Advanced financing through a Project Design Advance
facility for example, could provide an opportunity to commence implementation of several
of these project development tasks at an earlier time than is currently shown on some of
the MTIIP schedules: this should be discussed in detail during the next PFS phase.
27.4. Due to urgent SWM sector rehabilitation needs in Sahiwal, particularly relating to
the selection of a site for the regional facility, one issue is that the development of the
proposed replacement landfill facility will, even given optimistic assumptions, take until
early 2019 to complete. This potential initiative should also be discussed early in the
next PFS phase.
Page 480
27.5. The implementation of a range of recommended support programs is also shown

on the MTIIP schedules, to coincide with relevant hardware/infrastructure activities of
system development.
28. The proposed schedules will therefore be the subject of priority discussions and
evaluation during the next PFS phase, so that they may be refined and synchronized with
initiatives for other sectors of the overall program.
Page 481

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comprising

Pre Feasibility Study (PFS)

Resilient Urban Infrastructure Integrated City Development Strategy (ICDS)

Investment Program Climate Risk and Vulnerability Assessment (CRVA)

and Pre-Feasibility Study

Final Report – Sahiwal, Pakistan

Pre-Feasibility Study (PFS)

Integrated City Development Strategies (ICDS)

Climate Risk and Vulnerability Assessment (CRVA)

Acronyms and Abbreviations

I&S Infrastructure and Services

RTU Remote Telemetry Unit

This Report presents a series of integrated and comprehensive investments in physical

O. Settlement Patterns .................................................................................................. 82

E. Urban Development Components ........................................................................... 130

QQ. Integration .............................................................................................................. 173

Pre-Feasibility Study for Medium Term Investments...................................................... 312

D.Solid Waste Management ....................................................................................... 447

Introduction and Overview

A. Introduction to the Assignment

Table I-1: SAHIWAL INVESTMENT SUMMARY

Institutions & Governance 5.15 - -

Water, Sanitation & Drainage 38.24 30.37 21.24

Solid Waste Management 23.15 18.32 31.16

Transportation Planning 4.74 4.74 11.44

Soft Urban Improvements4 4.0 4.00 6.00

Lalamusa LG Training Academy 3.0 - 4.50

Other (ICDS and Social 5.0 2.00 4.77

TOTAL 83.28 59.43 79.11

B. Background and Rationale

Figure I-2: Sahiwal and Sialkot and Environs

Source: Urban Unit

Figure I-3: Population and Urban Concentration

Infrastructure & Economic Impact

C. Impact and Outcome

 Introduction of integrated urban planning;

19. In addition, the program will:

 Introduce the over-arching application of climate change adaptation measures to all

E. Study Components & Structure

Figure I-4: PICIIP Structure

1. Integrated City Development Strategies (ICDS)

2. Climate Risk Vulnerability Assessment (CRVA)

3. Pre-Feasibility Study (PFS)

infrastructure investment components. These include background analyses,

F. The Problem Tree

Figure I-5: Problem Tree

G. Approach and Methodology

23.1. Document Identification and Review

23.2. Field Data Collection

23.3. Working with the Local Authorities - Building on Their Priorities

Figure I-6: Integrating Complementary PICIIP Components

Figure I-7: Integrated Urban Development

23.5. Stakeholder Participation - Engagement

23.6. Global Best Practices

H. Strategic Approach to the Multi-Tranche Finance Facility for

31. The rationale is threefold:

Key Challenges Addressed by the MFF

Fostering Infrastructure That Reaches the Poor

41. Conscious, deliberate and multidisciplinary planning is needed for infrastructure

Cities Offer Previously Untapped Development Gains

Table I-9: How Better Cities Can be a Force for Good

44.1. competitive and economic sustainability: the ability of intermediate cities to

44.2. resilience and environmental sustainability: the ability of cities to provide a