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A. Background
1. Pakistan is one of the most urbanized countries in the Asia Pacific region, with an urban
population of over 70 million. The Asian Development Bank (ADB) Central and West Urban and Water
division strategy focuses on identifying opportunities in Khyber Pakhtunkhwa (KP) Province and
scaling up project preparatory work in the Punjab. The current ADB-Pakistan Country Partnership
Strategy (CPS) 2015-2019 envisages an increased focus on national, provincial and city-level policy
and planning within the context of the ADB urban operational plan. For KP, the Country Operations
Business Plans (COBP) 2016-2018 includes a policy and advisory technical assistance (PATA ) in
2016, and a project preparatory technical assistance (PPTA) in 2017 for preparing the proposed KP
Intermediate Cities Investment Improvement Program (KP-ICIIP) in 2018.
2. Within the framework of the envisioned KP-ICIIP, Cities Development Initiative for Asia (CDIA)
received applications from the cities of Peshawar, Mardan and Abbottabad, KP Province to help these
cities prepare a 15-year City Development Plans and subsequently prioritize projects for
investment. After approval of this support CDIA and ADB now plan to commence with their agenda to
implement inclusive growth through more livable cities.
3. CDIA is a regional initiative established in 2007 by the ADB and the Government of Germany, with
additional core funding support from the governments of Sweden, Austria, Switzerland and the
Shanghai Municipal Government. The Initiative provides assistance to medium-sized Asian cities to
bridge the gap between their development plans and the implementation of their infrastructure
investments. CDIA uses a demand driven approach to support the identification and development of
urban investment projects in the framework of existing city development plans that emphasize
environmental sustainability, pro-poor development, good governance, and climate change.
4. Guidance for this assignment is provided through the Government of KP (GoKP) Planning and
Development Department (P&DD) Integrated Development Strategy 2014-2018 which states “Effective
management of urban services is envisioned so as to convert cities into centers of economic
activity and sources of employment generation”. This is further reinforced in “Reclaiming
Prosperity in Khyber Pakhtunkhwa 2015-2018” which recommends four “possible paths available for
growth: 1) increased transfers from federal government, 2) urban agglomeration, 3) regional trade,
and 4) remittances from abroad. In addition, the strategy recommends focus on sectors that can
attract private sector investment such as “industry, construction, agriculture, livestock, mining,
and tourism through private sector-friendly policies”. The urban sector is highly relevant to this
strategy as it plays a critical role in three of these paths (except transfers from federal
government) for harnessing private sector potential in all the sectors of focus.
5. Peshawar is the administrative and commercial capital of KP. The city draws people from all over
the province in search of work and a better way of life. The population is currently over 1.27
million and expected to grow to 5 million by 2030. Like all cities in Pakistan, Peshawar’s growth
is unplanned. It is estimated that the city is also home to almost 80% of the 1.7 million Afghan
refugees in Pakistan and a large number of internally displaced people. The city’s economy is based
on trade, health and education. Peshawar city has a historic core. This creates a huge burden to
provide basic urban and social services including housing. The city district comprises 4 towns with
92 union councils (local wards).
6. The provincial and city government are currently carrying out detailed feasibility work for the
Peshawar MRT project. This $200M project is being supported by the ADB and the Pre-Feasibility
Study (PFS) was carried out by CDIA. However, other key urban services such as housing, urban
regeneration, water, waste management and sewage treatment are in a poor state of affairs.
Improvements are needed to enable Peshawar to provide public services and enhance the overall
quality of life for its citizens. For example, we estimate water services coverage to be as low as
40%, sewage treatment even lower at 30% and solid waste collection approximately 45%. Transport is
the only sector where we can expect service coverage to be in excess of 80%. In the lead up to the
2018 elections, road infrastructure investments and other transport provision are also a priority.
7. Mardan is a city of around 350,000 people. Economic sectors include agro-business and mining.
Service and infrastructure provision in Mardan is poor. Water service coverage in the urban areas
is around 50% at best and approximately 30% in rural areas. The city does not have an underground
piped sewerage and drainage system. There is no wastewater treatment facility in Mardan. All
untreated sewage is disposed into open drains and local canals. There is also no landfill site.
Municipal, liquid and hospital waste are dumped openly in. With a growing urban population there is
an emergence of informal settlements and katchi abadis . Fourty two (42%) percent of the population
live below the poverty line making it one of the poorest districts in Pakistan. There are 12
offcially registered slums in the city.
8. Abbottabad city is located in the Hazara region of KP province and has an approximate population
of 200,000. It is situated in the Orash valley, about 120 km North of Islamabad and 190 km east of
Peshawar. The city is well known throughout Pakistan for its pleasant weather and high-standard
educational institutions and as an education hub. It remains a popular hill station attracting
hundreds of thousands of tourists every year. In recent years the city has seen rapid urbanization,
urban sprawl and deforestation in the surrounding hills. Years of underinvestment have left public
services severely depleted. For instance, almost 30 tons of waste is generated daily with 25%
approximately burnt and the remaining amount dumped at various sites on the outskirts of the city.
The city has no official landfill site. The city does not have a sewage treatment plant. The road
network combined with poor traffic management has led to the city having some of the worst
congestion of any city in Pakistan. Abbottabad’s 65km of road network is in disrepair and faces
pressure from considerable through traffic to the North of Pakistan.
B. Objective
9. CDIA, in close cooperation with the ADB, is seeking the assistance of a qualified consultancy
firm that can help the Government of KP to strategic city planning within a regional context and
identify physical infrastructure investments required to enhance inclusiveness, resilience and
competitiveness within the cities of Peshawar, Mardan and Abbottabad and their regional context.
Priority should be given to infrastructure investments which stimulate job creation and private
sector development.
10. The PFS will have the following purposes:
a) Prepare City Development Plans for Peshawar, Mardan and Abbottabad (which will include
institutional, financial, economic, climate change analysis and approaches for urban sub-sectors),
b) Identify potential priority urban infrastructure investments in these cities and prepare 10-15
year investment plans,
c) Recommend institutional arrangements for the implementation of the PFS
d) Carry out a PFS for the prioritized urban infrastructure investments identified in these cities ,
e) Identify possible sources of financing for the prioritized investments including community
financing, NGO support, and PPP options as part of the ADB supported KP Intermediate Cities
Investment Improvement Program,
f) Enhance the capacity of relevant stakeholders to facilitate the sustainable development and
management of prioritized urban infrastructure investments.
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