Supporting Local Government and SMEs for Improved Water and Sanitation Service, Pakistan

Timeframe:  July 2005 – June 2008

Implemented by WSP

Partners: SDC/NRB/World Bank/ADB/DfID/RNE

Desired Project Outcome:

Improved delivery of decentralized WSS services through strengthened capacity of TMAs and SMEs

Project Description

Post the promulgation of the local government ordinance in 2001, the heavily contested perspectives over the design of the decentralization process have resulted in a protracted period of transition. This project shall seek to support the implementation of the LGO 2001 to address the capacity deficit of local governments in common districts to manage municipal service delivery - with a focus on Tehsil governments in NWFP. While enhancing the capacity of Tehsil LGs to perform their legislated functions is the end goal of this project, the capacity constraints experienced by Tehsil LGs can be attributed to disabling policy and fiscal frameworks at the Provincial level. For instance, the weak capacity of the TMAs is not attributable to a lack of capacity in the sector per se, but rather that the capacity in the sector is accountable to the wrong tier of government. Enhancing the capacity of the TMAs therefore is primarily an issue of bringing sector capacity (funds & functionaries) ‘in line’ with the assignment of functions under LGO 2001. In a similar manner, unsupportive Provincial government frameworks restrict the autonomy of Tehsil Governments in setting tariffs, passing bye-laws and establishing performance incentives for staff. This suggests that strengthening municipal service delivery is as much about addressing the disabling Provincial incentives, as it is about training Tehsil Governments to undertake their role.
In this context, it is proposed to that WSP will support four activity streams in NWFP:
(1) Promote mechanisms to improve sectoral co-ordination: to enable WSP to advocate for a single government-led programme with clear and unambiguous assignment of roles and responsibilities - for all sector players.
(2) Develop institutional incentives to improve municipal service delivery: through forging partnerships with Tehsil and Provincial level governments to change the legal, fiscal, regulatory environments within which Tehsil LGs operate.
(3) Explore alternate service provision options: Develop models through which TMAs can access sector capacities (i.e. SMEs, CBOs, technical colleges, retired government officials, reformed PHED).
(4) Enhance capacity of TMAs: through strengthening the partnerships between TMA functionaries and sector capacities.

Assumptions:

1. Systems and procedures in place for local governments and TMAs to explore innovative solutions.
2. Willingness and capacity of small scale private sector to venture into the WSS sector.
3. Availability of donor funding to support scaled-up sector reform efforts.

Indicators of Outcome:

1. The Government of NWFP aligns the capacity already existing within the sector (PHED, NGOs, Private Sector) with the allocation of functions under LGO 2001 – Jun 08

2. The Government of NWFP adjusts the PFC formula (quantum and quality) commensurate with the responsibilities allocated to the tehsil government under LGO 2001 – Jun 08

Project Milestones

Government of NWFP includes municipal service delivery vision, including institutional and financing arrangements consistent with devolution, in provincial reform program – December 2007.

You can access the description of the programme through the database of WSP activities.