PL 2 7-SCIP Hanif Channa
PL 2 7-SCIP Hanif Channa
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
Institutional Analysis
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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
Separate contract awarding and implementing agencies-procurement problems Inadequate Financing and lack of funding Conflict of interest Absence of water rights and market
Economic Analysis
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Supply driven asset creation Absence of economies of scale Low water tariffs and poor collection efficiency
People
Poor Cost Recovery hence not conducive for private sectors participation
Socio-cultural
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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
Separation of Role
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 in excess 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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NORTH CLUSTER
Sukkur New Sukkur Rohri Khairpur Shikarpur Larkana
CENTRAL CLUSTER(Tentative)
Benazirabad Naushero feroz Moro Sanghar Tando Adam Shahdad pur
SOUTH CLUSTER(Tentative)
Mirpurkhas Umerkot Badin Thatta
Reforms in LGs
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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 such functions shall continue to vest with the Taluka Municipal Administration.
The program supports a two-stage reform process; First stage reforms build on the provisions of SLGO (section 54 (2) (f)) which allows for participating TMAs to jointly establish regional utility;
This utility is North Sindh Urban Services Corporation (NSUSC).
NSUSC
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First Regional Urban Services Corporation of South Asia Responsible for asset creation and management Owned by six regional towns
TMA
ASSETS
Service & Asset Management Agreement
TMA
ASSETS
Service & Asset Management Agreement
TMA
ASSETS
Service & Asset Management Agreement
NORTH SINDH URBAN SERVICES CORPRATION Operations, maintenance & infrastructure delivery oversight
Customer Service Compact
Payments
Services
Governing Laws/Agreements
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Memorandum of Association and Articles of Association Service and Asset Management Agreement Tripartite Financing Agreement
NSUSC
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Will aggregate TMAs water, wastewater and SWM operations in a single institution to leverage economies of scale, introduce new skills and management, and increase focus on operations, maintenance and financial management;
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
NSUSC would enter into performance-based management contracts with specialized private sector providers;
Thus WSS & SWM operations will be outsourced;
NSUSC assumes a greater role in management contracting. Private sector will be engaged through PPP procurements
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Thank you