Pakistan Punjab Cities Governance Improvement Project

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The development objectives of the Punjab Cities Governance Improvement Project for Pakistan are to support the province of Punjab's cities in strengthening systems for improved planning, resource management, and accountability, and to improve the province of Punjab's capacity to respond promptly and effectively to an eligible crisis or emergency. There are three components to the project. The first component is performance grant. This component focuses on two areas of urban governance: resource planning and management, seeking to improve decision making, consolidate revenue sources and strengthen resource mobilization; and transparency and voice in the preparation, monitoring and evaluation of plans and programs in urban areas. This component will provide an annual grant to the project cities, based on achievement of specified annual targets against a set of Disbursement Linked Indicators (DLIs) in selected governance areas. The second component is project implementation and capacity building. This component supports the cities and province through technical assistance and capacity building to achieve the DLIs and enhancement in revenue. The Urban Sector Planning and Management Services Unit (USPMSU), and a City Program Unit (CPU) in each of the five cities will be responsible for providing this support and the corresponding costs will be financed from this component. The third component is contingent emergency response. This component will support preparedness and rapid response to disaster, emergency, and/or catastrophic events, as needed. The provisional zero cost for this component will allow for rapid reallocation of credit proceeds from other components under streamlined procurement and disbursement procedures. This component could also be used to channel additional funds should they become available as a result of the emergency.