Khyber Pakhtunkhwa Rural Investment and Institutional Support Project

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The project is being implemented under a Multiphase Programmatic Approach (MPA) as an Investment Project Financing (IPF) instrument. Over an eight year period, the proposed MPA will include two phases, focused on key areas that address the most pressing development challenges in the Newly Merged Areas (NMA) of Khyber Pakhtunkhwa, including emergency reconstruction in the first phase related to damages caused by catastrophic 2022 floods. During Phase 1, interventions will prioritize building citizen state relationships through strengthening the lowest tier of government and extending state systems and government presence to the NMA to as to facilitate and ease service delivery challenges. The project has the following five components:(a) Component A: Multisectoral Investments and Improved Service Delivery (US$90 million). The objective of this component is to address critical gaps in service delivery to the merged areas, by focusing both on investments in infrastructure as well as the missing delivery systems that hinder effective service delivery. The component will finance multisectoral infrastructure investments in water supply and sanitation, rural roads, and agriculture sectors with a view to identify high priority and critical infrastructure investments to improve connectivity, economic productivity, and human capital outcomes. The component will also extend district facilities to the merged areas.(b) Component B: Institutional Development of Merged Areas (US$55 million) This component will finance investments to bolster state responsiveness to citizens, focusing on lower tiers of government and service delivery. It will include (B1) institutional strengthening and capacity building of village councils and communities for participatory planning, budgeting, monitoring, strengthening social accountability systems, and community development and behavioral change outreach; (B2) conditional grants to village councils to finance local infrastructure priorities in line with community preferences; and (B3) local public service delivery centers at the sub district level to facilitate access to services, especially of civil and vital records(c) Component C: Emergency Flood Response (US$50 million). The objective of this component is to support the GoKP in flood recovery and reconstruction efforts as well as to improve climate resilience in the NMD. The component will finance reconstruction and rehabilitation of public infrastructure damaged by floods, and invest in climate resilient flood protection infrastructure. (d) Component D: Project Management, M&E and Technical Assistance (US$5 million). This component will support the Government of KP to effectively implement the project, and to coordinate all project related activities, monitoring, technical assistance, and training.(e) Component E: Contingent Emergency Response (US$0 million). Following an adverse natural event that causes a major natural disaster, the GoKP may request the World Bank to re-allocate project funds to support response and reconstruction.