Pl 2 7-SCIP Hanif Channa

7/28/2019 Pl 2 7-SCIP Hanif Channa

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Sindh Cities ImprovementProgramSCIP

Planning & Development Department, Sindh


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Basic Municipal Infrastructure and

Services in Sindh

On average, some 55% of urban population in

Sindh outside Karachi has access to piped water, but

the water is of poor quality and flows intermittently

Limited access to sewerage and sanitary drainage(open drains)-only 1% of waste water is treated

Only some 37% of the population is served by

garbage collection systems No sanitary landfill site in the Province

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Water Supply-Major Cities(WSP Seminar Assessment)

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Institutional Analysis

Multiple Players(implementing agencies)-PHED,

WASA, Cantonment Boards,

Overlapping jurisdiction and roles

Dis-joint in asset creation and asset management

Poor Management/Governance Structure

Lack of Accountability

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Separate contract awarding and implementing

agencies-procurement problems

Inadequate Financing and lack of funding

Conflict of interest

Absence of water rights and market

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Economic Analysis

Supply driven asset creation

Absence of economies of scale

Low water tariffs and poor collection efficiency

People willing to pay higher

Informal private sector charging much more

Poor Cost Recovery hence not conducive for private

sectors participation

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Socio-cultural

Water is public good and it should free

Poor culture of payment to public sector for

goods and services

Lack of ownership for public assets

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Separation of Role8


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Economic Cost of Poor Infrastructure

higher business and household costs,

Higher Hepatitis and infant mortality

damage the urban environment

diminishing quality of life, and

decrease the attractiveness of these cities to

potential investment

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Anchor towns are defined as contiguous urban

areas having a 1998 census urban population in

excess of 150,000. Other towns within 100 km of

the anchor town, having 1998 urban populations inexcess of 50,000, may join the cluster. For inclusion

in the program, the cluster should include an

aggregate urban population of more than 350,000

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ClustersTMA Based

SOUTH CLUSTER(Tentative)

Mirpurkhas Umerkot Badin Thatta

CENTRAL CLUSTER(Tentative)

BenazirabadNaushero

ferozMoro Sanghar

TandoAdam

Shahdadpur

NORTH CLUSTER

Sukkur New Sukkur Rohri Khairpur Shikarpur Larkana

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Reforms in LGs

New Local Government Ordinance 2001

Section 54(2)-(f) The Taluka Municipal

Administration may:

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 suchfunctions shall continue to vest with the Taluka

Municipal Administration.

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Two Stage Reform Process

The program supports a two-stage reformprocess;

First stage reforms build on the provisions of SLGO(section 54 (2) (f)) which allows for participatingTMAs to jointly establish regional utility;

This utility is North Sindh Urban ServicesCorporation (NSUSC).

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NSUSC

First Regional Urban Services Corporation of South

Asia

Responsible for asset creation and management

Owned by six regional towns

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First Stage Reform

NORTH SINDH URBAN SERVICES CORPRATION

Operations, maintenance & infrastructure delivery oversight

TMA

ASSETS

Service & AssetManagement

Agreement

TMA

ASSETS


Agreement

TMA

ASSETS


Agreement

CUSTOMERS

Receive WSS & SWM Services

Payments

Services

NSUSCestablished

under

Companies

Ordinance

1984

NSUSC providesmunicipal services

& oversight of

infrastructure

delivery

Customer

Service Compact

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Governing Laws/Agreements

Memorandum of Association and Articles of

Association

Service and Asset Management Agreement

Tripartite Financing Agreement

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NSUSC

Will aggregate TMAs water, wastewater andSWM operations in a single institution toleverage economies of scale, introduce newskills and management, and increase focus on

operations, maintenance and financialmanagement; Implementing agency for the WSS and SWM

subprojects; Preparation of annual plans and budgets for

submission to the NSUSC Board; Reports on progress of the subprojects to the

NSUSC Board and Provincial Government;

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Based on corporate governance structure with

Board of Directors coming from TMA and Private

sector

Chairman of BoD from private sector Management hired from market

Registered with Securities and Exchange Commission

of Pakistan

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Can hire from open market for skilled managers and

staff

Can provide monetary rewards for improved delivery

Multiple ownership reduces risk of capture Skills-based Board can enhance accountability

Facilitates ring-fencing of WSS and SWM costs &

revenues

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Second Stage Reform

NSUSC would enter into performance-basedmanagement contracts with specialized privatesector providers;

Thus WSS & SWM operations will be outsourced;

NSUSC assumes a greater role in managementcontracting.

Private sector will be engaged through PPPprocurements

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Thank you

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Documents

Pl 2 7-SCIP Hanif Channa