KHYBER PAKHTUNKHWA GOVERNANCE (KPG) PROJECT MONTHLY PROGRESS REPORT

MAY 2017

MAY 2017

This publication was produced for review by the United States Agency for International Development. It was prepared by DAI.

USAID/ GOVERNANCE (KPG) PROJECT

MONTHLY PROGRESS REPORT

MAY 2017

Program Title: Khyber Pakhtunkhwa Governance Project

Sponsoring USAID Office: USAID/Pakistan

Contract Number: AID-391-C-15-0006

Contractor: DAI

Date of Publication: May 31, 2017

Author: Javaid Hasan

DISCLAIMER

This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents are the sole responsibility of KPG and do not necessarily reflect the views of USAID or the United States Government

ACRONYMS

AMEP Activity Monitoring and Evaluation Plan COR Contracting Officer's Representative DLG Da Las Gul DAI Development Alternative Inc. DDGS Direct Distribution of Goods and Services EOI Expression of Interest GoKP Government of Khyber Pakhtunkhwa (Province) IMS Institute of Management Sciences KP Khyber Pakhtunkhwa (Province) KPG Khyber Pakhtunkhwa Governance Project LGE&RDD Local Government Elections and Rural Development Department M&E Monitoring and Evaluation NADRA National Database and Registration Authority NGO Non-Government Organization NXP Non Expendable Property P&D Planning and Development (Department) PCSW Provincial Commission on the Status of Women PDMA Provincial Disaster Management Authority PDMF Provincial Disaster Management Fund PIO Public Information Officer RFP Request for Proposal RFQ Request for Quotes STTA Short Term Technical Assistance UPS Uninterruptible Power Supply USAID United States Agency for International Development VSU Vetting Support Unit WPC Women Parliamentary Caucus CERD Center for Excellence and Rural Development ADP Annual Development Plan

TABLE OF CONTENTS

ACRONYMS ...... 1 TABLE OF CONTENTS ...... 2

1. PROJECT BACKGROUND ...... 3

2. HIGHLIGHTS FROM THE PERIOD ...... 4

3. ADMINISTRATION ...... 5 DELIVERABLES ...... 5 WORKPLAN ACTIVITIES ...... 5 Active Grants...... 5 Proposals under Consideration ...... 13 Concepts Developed ...... 21

4. ACTIVITIES BUDGET SUMMARY ...... 22

5. COMING UP ...... 22

1. PROJECT BACKGROUND

DAI was awarded the four-year, $22.6 million Khyber Pakhtunkhwa Governance (KPG) Project on March 2, 2015. The main purpose of KPG Project is to strengthen the ability of local state institutions to deliver essential services in conflict-afflicted areas of the Khyber Pakhtunkhwa (KP) Province in Pakistan. KPG is designed as a quick and responsive mechanism for supporting transitional activities in the KP Province of Pakistan that reinforce stability, counter extremism, promote democratic advances, strengthen the ability of the provincial government to be responsive to citizen needs, and create opportunities for gender equality and women’s empowerment. In 2014, the Government of KP adopted a four-year Integrated Development Strategy (IDS) that integrates government priorities under one framework, and provides a roadmap for achievement of the targets agreed to in the SPDF framework. Working with the Government of KP, KPG will focus on supporting the achievements of relevant priority objectives.

DAI will deliver KPG results by developing complementary packages of assistance that reinforce both the supply and demand side of governance, through four main instruments: grants under contract, programmatic short-term technical assistance, direct distribution of goods and services, and training.

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2. HIGHLIGHTS FROM THE PERIOD

During the month of May 2017, activities continued as planned on seventeen grants including six approved by USAID during the same month. In addition, four grant proposals were submitted to USAID for approval whereas another seventeen grant proposals were in different stages of preparation and will be submitted to USAID in the near future. Last but not the least, approval was received from USAID for three concept notes. A brief summary of each approved grant is provided as follows: 1. Automated Information and Reporting System for Information and Public Relations Department (G-PES-006): technical backstopping and troubleshooting is being provided on regular basis. Request received from the Department for additional technical training for the staff is being considered finalized. 2. Strengthening Provincial Disaster Management Authority (G-PES-007): stakeholders’ consultation on Civilian Victim Support Fund was held and the final report is being prepared after which, the grant will be closed. 3. Bridging Gaps between Citizens and State (G-PES-008): grant activities progressing smoothly and reports/deliverables submitted on time. 4. Strengthening Excise, Taxation and Narcotics Control Department (G-PES-009): Oracle software procurement in progress after which data migration and staff training will be completed. 5. Good Governance through Gender Mainstreaming (G-PES-011): grant activities progressing smoothly. Gender analysis completed and report shared with concerned stakeholders. 6. Transforming Inclusive Local Government (G-PES-012): grant activities progressing smoothly and reports/deliverables submitted on time. 7. Establishing Local Government Good Governance Index for Peshawar City District Government (G-PES-013): grant activities progressing smoothly and reports/deliverables being submitted on time. 8. Support to Sehat Sahulat Program on Awareness Campaigns for Insaf Health Card (G-PES- 016): grant activities progressing smoothly and reports/deliverables being submitted on time. 9. Digital Youth Summit 2017 (G-PES-017): grant activities completed. Grant closeout in process. 10. Eliminating Sexual Harassment through Empowering Transgender (G-PES-018): grant agreement will be signed next month. 11. Citizen State Engagement through Theatre and Radio Program (G-PES-020): grant activities progressing smoothly and reports/deliverable being submitted on time. 12. Strengthening the Local Councils Association of Khyber Pakhtunkhwa (G-PES-021): grant activities progressing smoothly and reports/deliverables being submitted on time. 13. Strengthening Social Cohesion and Peace through Sports and Extra Curricular Activities (G- PES-22): grant activities progressing smoothly and reports/deliverables being submitted on time. 14. Training of Local Government Representatives in District (G-Pes-023): grant activities progressing smoothly and reports/deliverables being submitted on time. 15. Strengthening Citizen State Engagement for Peace (G-Pes-024): grant activities progressing smoothly and reports/deliverables being submitted on time. 16. Orientation Workshop on Development Project Management System (G-PES-025): grant activities started however the orientation session is moved to July 2017 due to Ramadan. Accordingly, a request for no cost extension in period of performance was submitted to USAID. 17. Promoting Peace in District Peshawar through Sport Events (G-PES-026): grant activities progressing smoothly and reports/deliverables being submitted on time.

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3. ADMINISTRATION

SECURITY Security situation remained calm comparatively in terms of terrorism, and no major incident reported across the region. Overall increase in pre-emptive raids, intelligence based operations, and search & strike operations were noticed over the reporting period. Law enforcement agencies have apprehended dozens of suspects during search operations conducted across the country under “Operation Raadul Fassad”.

These security incidents have had no direct impact on KPG project activities to date. Even though the security situation has been relatively calm, keeping in view the possibility of threats and eruptions, KPG’s Security Advisor continues to issue security recommendations to all staff on a number of security protocols, including avoiding law enforcement agency (LEA) offices; refraining from driving close to LEAs vehicles; carefully planning travels and seeking security clearance before commencement of movements; reducing movement and avoiding travel after dark; maintaining low profile; keeping cell phones on/charged 24/7; and reporting any incident immediately to the KPG Security Team.

OPERATIONAL CHALLENGES AND REMEDIAL ACTIONS The legal compliance of zoning laws in University Town, Peshawar where KPG Peshawar office is located, was finally resolved as the Peshawar High Court accepted Government of KP suggestion to convert parts of the residential area into commercial in the next five years. Pursuant to court judgment, the University Town Administration allowed all offices (including KPG office), health clinics, restaurants and other non-complying businesses to resume their operations.

DELIVERABLES

A meeting was held with USAID to review the Activity Monitoring and Evaluation Plan (AMEP) and it was agreed to revisit and revise the targets for various indicators. As such, a revised version of AMEP was submitted to USAID. KPG also submitted the Quarterly Progress Report during the month. The 5th Six Month Workplan was prepared and is being reviewed by DAI Home Office after which, it will be submitted to USAID.

WORKPLAN ACTIVITIES

Currently, there are seventeen active grants, four proposals submitted to USAID and fifteen proposals in various stages of completion. In addition, three concepts are being reviewed internally and if accepted, will be submitted to USAID for approval. The details of these activities are as follows:

ACTIVE GRANTS 1. G-PES-006 Automated Information & Reporting System for Information and Public Relations Department ($270,519)

A grant agreement was signed with the Information and Public Relations Department on 22 June 2016 for a 10 month period (later extended for additional 6 months) to upgrade its Automated Information and Reporting System which will enable the Department to monitor print, electronic and social media around

KPG MONTHLY REPORT MAY 2017 5 the clock and promptly shares the latest updates and reports about provincial government performance with the chief minister, provincial ministers, government department heads and other important functionaries along with analytical and sector-wise public perception. In addition, the system will collect public grievances and opinions and report these to the concerned authorities for appropriate action. Last but not the least, linkage with media will be created via a media portal for ease of access to information through dashboards created for them thus bringing efficiency to the news dissemination.

During the reporting period, technical backstopping and troubleshooting continued as planned. KPG held discussions with the Department on additional technical training and a proposal is being considered. 2. G-PES-007 Strengthening Provincial Disaster Management Authority ($62,638)

A grant agreement was signed with the Provincial Disaster Management Authority on 15 June 2016 for a 4 month period to carry out a comprehensive assessment of District Disaster Management Units (DDMUs) in order to identify areas for improvement in preparedness, response and rescue operations, and to develop a roadmap for operationalization of the Civilian Victims Support Fund. The assessment of DDMUs was completed which was shared with key stakeholders and after incorporating their feedback, the report was approved by the Authority. The roadmap for the Fund was completed but the stakeholders’ consultation could not take place due to preoccupation of the provincial government and as such, a no cost extensions totaling 8 months were approved by USAID to complete this activity.

During the reporting period, the stakeholders’ consultative workshop on the Operationalization of Civilian Victims Support Fund was held in Islamabad. Final grant report is expected soon after which the grant will be closed.

Figure 1: Background presentation on CVSF

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Figure 2: Plenary session

Figure 3&4: Participants Sharing their Views

3. G-PES-008 Bridging Gaps between Citizens and State ($97,657)

A grant agreement was signed with Khwendo Kor, a local NGO, on 15 July 2016 for an 18 month period to strengthen the capacity of citizens of Peshawar to engage with the local government to improve their service delivery and accountability and to identify issues and needs that often go un-noticed by the duty bearers/service providers. It will also help the local government in identifying citizens' needs and priorities and help them in better planning and resource allocation. Under the grant, citizens groups and steering committees were established at neighborhood, town and district levels to discuss local issues and explore mutual options for their solution. These groups have taken initiatives on local issues through coordinating and collaborating with different government departments and projects.

During the reporting period, the 5th social audit was held in a primary school of Sufaid Dheri Union Council in which 9 male and 4 female participated, In addition, the 5th exchange visit for ECG members were organized in the Town Municipal Administration on Enrollment Campaign Day in which 7 female and 8 male members participated. A cultural event was also held to commemorate Mother’s Day.

Figure 5: Mother’s day Celebration

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Figure 6 & 7: Social Audit & Exchange visit to town Municipal Administration

4. G-PES-009 Strengthening Excise, Taxation and Narcotics Control Department ($273,531)

A grant agreement was signed with the Excise, Taxation and Narcotics Control Department on 26 August 2016 for an 11 month period to upgrade the existing software, replace the old obsolete hardware, improve working conditions by providing office furniture, equipment and power backup, establish an automated human resource management system, and provide training and capacity building to enable the Department to carry out its mandated functions more efficiently and transparently and to enhance its revenues. All equipment, furniture and power backup (including solarization of three offices on pilot basis) has been completed whereas the latest version of Oracle software is being procured. Due to the introduction of vetting requirements by USAID, the software procurement was delayed considerably. As such, a no cost extension of 6 months was approved by USAID. The grant activity is now scheduled for completion by mid October 2017.

During the reporting period, procurement of oracle software was initiated. Data migration and staff training will take place once the software is delivered and installed. 5. G-PES-011 Good Governance through Gender Mainstreaming ($119,117) A grant agreement was signed with Pak Women, a local NGO, on 2 November 2016 for an 18 month period to strengthen the Khyber Pakhtunkhwa Women Parliamentary Caucus and the Provincial Commission on the Status of Women to play a more strategic role for gender mainstreaming in the province and build a sustained response mechanism to women issues and cases in order to promote women empowerment and gender equality in the province.

During the reporting period, three-day gender sensitization workshop was held and two talk shows for the promotion of WPC, PCSW and ZAMA AWAZ were prepared to be aired soon on Sabaoon TV Channel.

Figure 8 & 9: Workshop on Gender Sensitization

6. G-PES-012 Transforming Inclusive Local Government ($85,945) A grant agreement was signed with Integrated Regional Support Program, a local NGO, on 4 November 2016 for a 12 month period to bring together all key stakeholders especially the citizens in to play a proactive role in the planning and implementation of the District Annual Development Program. This relationship is expected to benefit the interest of each one of these stakeholders i.e. line departments in the district, elected representatives as well as communities, therefore making the whole process inclusive and accountable. In addition, this will provide an opportunity to the citizens to monitor their area development in a more effective and efficient way.

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During the reporting period, pre budget seminars on Annual Development Program were held at the district and tehsil levels. In addition, a research study on District Annual Development Program was also conducted and reviewed.

Figure 10 & 11: Pre-budget Seminar on ADP

7. G-PES-013 Establishing Local Government Good Governance Index ($131,697) A grant agreement was signed with Schunaizia Relief and Development Organization, a local NGO on 9 January 2017 for a 12 month period to measure the performance of Peshawar City District Government and its subsequent impact on the citizens and to formalize public opinion and feedback mechanism. Once the Index is developed, the grantee will engage community groups and local government elected representatives in gathering information that can be fed into the Index which will then rate the local government based on public opinion. This information will be shared with the local government in order to inform it of public perception about local government performance and will also be disseminated for increased public awareness and performance evaluation of local government. This will not only improve local government-citizens contact and interaction but will also improve overall transparency and accountability of the local government. Furthermore, this activity will improve local government service delivery based on public feedback and performance evaluation which will lead to improved public perception about governance. Due to vetting requirements of USAID, the grant activities could not be started as planned and as such, a no cost extension of 4 months was approved by USAID.

During the reporting period, five meetings were conducted with community members.

Figure 12 & 13: SRS meeting with IT professional

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8. G-PES-016 Support to Sehat Sahulat Program on Awareness Campaigns for Insaf Health Card ($ 22,514)

A grant agreement was signed with Asia Humanitarian Organization, a local NGO, on 24 April 2017 for a 3 month period to o raise awareness among the people of Mardan for better utilization of Insaf Health Card which will enhance citizens' satisfaction over provision of health services delivery by the KP Government. This in turn will not only improve their perceptions about governance and create a positive image of the government’s responsiveness to their basic needs but will also lead to poverty reduction. Both these elements of positive perception and poverty reduction will contribute to resilience in the society and an increased level of stability in the KP province.

During the reporting period, 8 awareness sessions were held at the community level.

Figure 14 & 15: Sehat Shaulat Card awareness session.

9. G-PES-017 Digital Youth Summit 2017 ($ 35,964)

A grant agreement was signed with the KP Information Technology Board on 26 April 2017 to support a digital youth summit in order to provide an opportunity to a large number of young job seekers and potential entrepreneurs from the province to come under one roof and interact with national and international businesses and IT experts. This will pave the way for future jobs and business opportunities for youth in the province, one of the top priorities of the KP Government. By doing so, the capacity of youth will be built and they will be more resilient towards violent extremism thus contributing to a more stable society in the province.

During the reporting period, all grant activities were completed and close out is in process.

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Figure 16 & 17: Digital Youth Summit

10. G-PES-018 Eliminating Sexual Harassment through Empowering Transgender ($ 21,298)

A grant agreement will be signed with a local NGO Da Hawwa Lur to build the capacity of transgender in to ensure their safety against sexual harassment and improve their space in political, social and economic activities.

During the reporting period, grant agreement was prepared and will be signed soon. 11. G-PES-020 Citizen State Engagement through Theatre and Radio Program ($ 22,347)

A grant agreement was signed with a local NGO, Human Empowerment and Liberty Program on 3 May 2017 to engage citizens and state actors right from identification of issues to awareness as well as understanding of the role and limitation of both the parties. Engagement through street theaters will provide a platform for both the parties to hold further discussion and to create a relationship that shall minimize barriers in their effective engagement which will contribute to enhanced capacity of citizens to engage public sector

During the reporting period, grant agreement was signed and 4 male and 2 female Jirgas were held. Based on issues identified in these Jirgas, the organization conducted one street theater.

Figure 18 & 19: Theater drama on problems of women education

12. G-PES-021 Strengthening the Local Councils Association of Khyber Pakhtunkhwa ($ 107,638) A grant agreement was signed with the Local Councils Association of Khyber Pakhtunkhwa on 15 May 2017 to facilitate elections of district committees, board of governors and its various working committees, and conduct strategic planning and training of board and committees’ members. This support is done in close collaboration and coordination with both GiZ funded Support to Good Governance Program and the EU funded Strengthening Local Government Associations Program. This will bring sustainability to the association in the long run.

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During the reporting period, the grant agreement was signed and the first deliverable comprising of the overall workplan, election schedule for 24 districts and for Board of Governors election, was submitted. 13. G-PES-022 Strengthening Social Cohesion and Peace through Sports and Extra Curricular Activities ($ 55,433) A grant agreement was signed with a local NGO, Peace and Development Organization on 12 May 2017 to engage college level male and female youth in sports and recreational activities. This will set the stage for youth and elected representatives to start actively engaging with each other on matters of mutual interest and will sensitize them on the concept and importance of good governance. It will also provide an opportunity to other community members/parents in general to participate and to interact with youth and elected representatives. Once mobilized, the educated youth will be sensitized on good governance and trained to make their duty bearers and service delivery institutions accountable to their emerging needs. The activity will promote peace, cohesion and integration of young among communities.

During the reporting period, grant agreement was signed but the activities could not be started due to Ramadan and summer vacations in colleges. Activities are now expected to commence in August.

14. G-PES-023 Training of Local Government Representatives in ($ 132,685)

A grant agreement was signed with a local NGO, Centre for Governance and Public Accountability on 12 May 2017 to train local government representatives of Kohat District. The training will enhance awareness and understanding of the elected local government representatives about their respective roles and responsibilities, authorities and limitations so they can contribute more effectively to the development of their own constituencies while managing voters' expectations more realistically. During the reporting period, grant agreement was signed and planning of activities initiated. 15. G-PES-024 Strengthening Citizen State Engagement for Peace ($ 38,220) A grant agreement was signed with a local NGO, Center for Excellence and Rural Development on 12 May 2017 to reintegrate youth and promote peace through sports and recreational activities. The project aims to address the aforementioned gaps through interventions that honor the cultural and traditional parameters and is enthusiastically welcomed by the local communities.

During the reporting period, grant agreement was signed and an inception workshop was held to introduce the project to key stakeholders. 16. G-PES-025 Orientation Workshop on Development Project Management System ($ 21,843) A follow-up grant agreement was signed with the KP Planning and Development Department on 11 May 2017 to support an orientation/training workshop for representatives of line departments and district governments to not only showcase the success of government initiative but build awareness and impart training for system replication in the remaining districts and departments in the province. By presenting the feature and utility of the system, the provincial line department and local government across the province will be able to adopt the system which will increase transparency and timely utilization of development funds across the province. During the reporting period, grant agreement was signed and planning started. However due to Ramadan, the workshop was postponed till July 2017.

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17. G-PES-026 Promoting Peace through Sport Events ($ 38,734) A grant agreement was signed with a local NGO, Health Education Development Society on 12 May 2017 to engage youth in sports and recreational activities in order to identify and harness their potential through active engagement in physical activities their relationship with peers and co-workers, and to strengthen their social skills in organizing events and engage with their teachers, parents, community members and duty bearers. The activity will provide vent to their physical and mental energies, harness their skills and potentials, and make them better citizens.

During the reporting period, grant agreement was signed and activity planning was initiated.

PROPOSALS UNDER CONSIDERATION

1. Public Facilitation Centre in Kohat (P-Pes-009)

In order to facilitate and improve public interactions with various local government departments, improve access and simplify transaction procedures and costs associated with various basic services (i.e. issuance of birth, death, marriage, divorce, domicile and character certificates, computerized national identity cards, learners driving licenses, route permits and FARD, vehicle registration and transfer of ownership, and collection of token tax and traffic fines), the Kohat District Government requested KPG to help assess the viability of establishing a public facilitation centre similar to the ones established in Punjab Province where all these services are provided under one roof. KPG engaged a short-term consultants to carry out a feasibility study. This was followed by preparation of an initial layout plan, interior design, detailed drawings and cost estimates of the required renovation to the government selected building. Based on these, an RFP is being finalized and once the vendor and costs are determined, KPG will prepare a grant proposal for the required renovations. For IT infrastructure, equipment and furniture and training of government staff, separate proposals will be developed and submitted to USAID after the renovation work is completed.

During the reporting period, RFP for the renovation work advertised. 2. Development of Tanda Dam as Picnic and Recreation Site, Kohat District (P-Pes-013)

On the request of Kohat District Government, KPG provided technical assistance to identify possible sites for development into picnic and recreational areas in and around Kohat City. The study proposed Tanda Dam as one of the feasible options. In order to develop Tanda Dam, KPG identified an architect/engineering firm to develop the initial concept and layout design which was shared and agreed with the District Government. The next step is to develop detail design and cost estimates of the development work which will be then used to develop an RFP for the development work. If properly developed and maintained, Tanda Dam offers vast opportunities for water sports and recreation to a much larger population from other parts of KP as well as other provinces. This will also help generate revenues that could be used for development of the surrounding areas.

During the reporting period, grant proposal for detailed technical design with environmental assessment was submitted to USAID. 3. Promoting Safe Tourism in Khyber Pakhtunkhwa (P-Pes-016). In order to promote domestic tourism and make Khyber Pakhtunkhwa the preferred tourist destination, the Tourism Cooperation of Khyber Pakhtunkhwa (TCKP) requested KPG to help develop an integrated

KPG MONTHLY REPORT MAY 2017 13 web based system with mobile application that will facilitate registration, grading, inspection, quality monitoring and regulation of various tourist services such as hotels, rest houses, restaurants, cafes, travel agencies, car rental, tuck shops, gas stations, hospitals, pharmacies, emergency services and other tourist attractions. This will greatly facilitate both domestic and foreign tourists in identifying and booking appropriate lodging facilities and avail other available services in the areas. In addition, TCKP would like to streamline its financial and human resource management, strengthen facilitation centres, and develop a communication strategy and campaign to make public and other stakeholders aware of the reforms undertaken to promote and support tourism in the province. To start with, an STTA was engaged by KPG to review IT related requirements and develop system specifications requirements that will be used to develop an RFP. Once the RFP is advertised and a suitable vendor selected, grant proposal will be developed and submitted to USAID. During the reporting period, RFP for software development was being finalized. 4. Strengthening Water and Sanitation Services Peshawar (P-Pes-017). In order to further strengthen and improve drinking water supply, sanitation and solid waste management in Peshawar, the KP Government established a public limited company by the name of Water and Sanitation Services Peshawar (WSSP). The rationale was to amalgamate all drinking water, sanitation and solid waste functions previously provided by different government entities and departments under one corporate entity thus improving their efficiency and effectiveness. USAID played a key role in the initial setup and subsequent institutional strengthening of WSSP through its Assessment and Strengthening Program. Building on this support, KPG agreed to further enhance operational efficiency of WSSP, increase its interaction with the consumers and improve technical capacity of the staff. The support will consist of review and updating of existing policy manuals, development of new manuals in health, safety and environment, development of standard operating procedures, automation of financial and human resource management, and development of an effective communication strategy and communication instruments to raise public awareness about WSSP services, reach out to its beneficiaries for feedback and provide them easy access through real time information and grievance redressal. The support, once completed will be replicated in other companies established in the province and will have a much larger impact on the overall service delivery in water supply and sanitation across the province. KPG has so far helped develop the communication strategy, selected a vendor for manuals and SOPs, and developed system requirements specification for IT solutions.

During the reporting period, proposal for updating/developing policy manuals was being finalized for submission to USAID. 5. Strengthening Water and Sanitation Services Company Kohat (P-Pes-019). As mentioned above, the KP Government has established six more corporate entities in the divisional headquarters of the province after the successful establishment of WSSP in Peshawar. Although the Water Supply and Sanitation Services Company Kohat (WSSCK) is a relatively new entity, the KP Government has already established a Board of Directors to provide policy guidance and hired a full time Chief Executive along with all necessary staff to run the day to day affairs of the company. In addition, the Government has provided an initial grant of Rs. 15 million to WSSCK to establish an office in Kohat and enter into a service agreement with Kohat Tehsil Municipal Administration to take over their relevant operational staff and equipment. WSSCK has requested KPG for technical and financial assistance to procure basic office equipment and furniture, customize and adopt policy manuals along with management systems of the WSSP, and provide orientation and training on the policies and management systems to its staff. KPG is working closely with WSSCK to develop an in-kind grant.

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During the reporting period, proposal for provision of furniture and equipment was being finalized for submission to USAID. 6. Automation of Driving Licensing Regime of Khyber Pakhtunkhwa (P-Pes-020). The Government of Khyber Pakhtunkhwa plans to revamp the entire driving license regime in a bid to improve this key service delivery. For this purpose, the government established a dedicated Transport Department and besides other functions, transferred the issuance/renewal of driving licenses to the Department. Having limited resources, the Department requested KPG to help modernize the entire driving licensing regime in the province by providing appropriate software, a dedicated server with firewalls and terminals in the districts. KPG engaged a STTA to carry out a detailed assessment and mapping of the current business processes of driving license issuance/renewal regime to identify gaps and shortcomings in the existing system and identify areas for further development and improvement. The STTA completed a system requirements specification document which will be used to develop and advertise RFP. Once a suitable vendor is selected, grant proposal will be developed for USAID approval.

During the reporting period, RFP for software development was being finalized. 7. Implementation of KP LGE&RDD Communication Strategy (P-Pes-021). At a time when the governance landscape in KP Province is experiencing an extensive reform process, it is becoming more important than ever to effectively manage state's communication with citizens and other stakeholders. With the implementation of the KP Local Government Act 2013 and subsequent establishment of over 3,500 local governments across the province, the role of LGE&RD Department is also changing. To ensure that communication is managed in a structured and sustainable manner, the Department has developed a comprehensive long-term communication strategy with the technical support of GiZ Support to Good Governance Program. To implement the strategy, the Department requested KPG for technical support to develop a web portal with official email system for the Department and local governments, develop key communication material and help with development of a newsletter. KPG has engaged two STTAs who are supporting the Department.

During the reporting period, both STTAs completed their assigned work and plan to make presentation to the Department Secretary for feedback and way forward. 8. Strengthening of Health Care Commission, Government of Khyber Pakhtunkhwa (P-Pes-023) One of the reform initiatives by the Government of Khyber Pakhtunkhwa in the health sector is the establishment of a Health Care Commission (HCC) to regulate both public and private health care givers in the province. The HCC will not only monitor health care facilities and quality by registering and licensing health care facilities but will also conduct performance audits to ensure that uniform standards are applied in the health care across the province. KPG has agreed to support HCC in its institutional strengthening which includes establishment of an online registration and licensing system, automation of HHC oversight and monitoring functions and development of a patients’ complaints redressal mechanism. This will enhance public confidence in government regulatory role and streamline the working of health care providers and other stakeholders. KPG engaged an STTA to review HCC requirements and develop system specifications requirements that will be used to develop an RFP. Once the RFP is advertised and a suitable vendor selected, grant proposal will be developed for USAID approval.

During the reporting period, the RFP for software development was being finalized. 9. Strengthening Water and Sanitation Services Company Mardan (P-Pes-024) Following the successfully establishment of Water and Sanitation Services Peshawar, the Government of Khyber Pakhtunkhwa has established a similar company in Mardan City (WSSCM). Although the

KPG MONTHLY REPORT MAY 2017 15 provincial government has approved funding for the operations of WSSCM, it has not provided any institutional strengthening budget to the newly established company. As such, WSSCM requested KPG for technical assistance to customize policy manuals and replicate the management information system and communication strategy that will be developed for WSSP. In addition, WSSCM requested a baseline survey to assess current situation with respect to drinking water supply, waste water and solid waste and plan for future development accordingly. KPG is already supporting WSSP and will customize products that are developed for WSSP. In addition, KPG has agreed to support WSSCM in conducting the baseline survey for which an RFP was advertised and vendor being selected.

During the reporting period, vendor for baseline study was being finalized. 10. Strengthening of Right to Services Commission (P-Pes-027) The Government of Khyber Pakhtunkhwa enacted the Right to Services Act and established a Right to Services Commission (RTSC) to fulfill various requirements under the Constitution. The Provincial Government has so far notified 16 services to be public services and has established a citizen facilitation center on pilot basis to create a point of interface between the citizens and the state. In order to make the RTS more people oriented and effective, the role of elected representatives of all three tiers of local government is also being integrated into the RTS so that these elected representatives can resolve service delivery related issues and problems of their respective constituents. To monitor all this, the RTSC has established a performance management system to monitor services delivery in the province and resolve grievances reported by the general public. The system was established and maintained with donor funding but the funding has ended now. RTSC therefore requested KPG support to upgrade and maintain the performance management system for at least one year so that RTSC staff can gain sufficient knowledge and capacity to maintain it. In addition, RTSC requested technical assistance to develop and implement a province wide communication strategy to raise public awareness about the Act and the Commission. KPG has already provided as STTA to develop communication strategy and is in the process of providing support for the upgradation and maintenance of the performance management system.

During the reporting period, grant proposal for upgradation and maintenance of the performance management system was being finalized for submission to USAID. 11. Strengthening of Khyber Pakhtunkhwa Revenue Authority (P-Pes-035) With the passage of 18th Constitutional Amendment, the powers to collect sales tax on services were transferred to the provinces. To deal with this new responsibility, the Khyber Pakhtunkhwa Provincial Government established an independent body i.e. the Khyber Pakhtunkhwa Revenue Authority (KPRA). However no major efforts were made to fully organize and operationalize KPRA with the result that it has remained more or less dormant with very nominal collection of sales tax. Recently, with the change in top management, KPRA has embarked upon a comprehensive reforms and restructuring program to enhance its internal capacity with respect to tax policy, strategy and implementation. With these reforms, KPRA will be able to significantly improve its operational efficiency, broaden the tax net and contribute substantially to the provincial revenues. To help implement these reforms and restructuring, KPRA requested KPG support to provide technical assistance in institutional development, framing/revising rules of business, developing/improving taxation policies, human resource development and strengthening accounting and financial management. KPG is in the process of procuring STTAs to help KPRA effectively complete the reforms and restructuring efforts. During the reporting period, five out of six STTAs were processed and mobilized whereas one STTA contract was being finalized.

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12. Strengthening of Provincial Housing Authority (P-Pes-036) The rural to urban migration for better civic amenities and economic opportunities, coupled with the influx of refugees and internally displaced people from terrorism affected areas has resulted in an unprecedented but unplanned settlements in Peshawar and other major cities of the province putting significant pressure on the already meagre resources and civic amenities of these cities. Although many private housing schemes have emerged in the past, these often cater to the middle and upper middle class. The KP Provincial Housing Authority (PHA) has embarked upon a very ambitious plan to provide low cost housing to the urban poor especially low paid government servants (both serving and retired) in the province. The plan includes availability of housing units at affordable cost and soft term financing through banks. The Provincial Government has already approved state land near Charsadda Interchange on M-1 Motorway to pilot a low cost housing scheme. Negotiations are also underway with a number of banks to develop low interest house financing products that will encourage public to build their own houses over time. Once successful, the pilot will be scaled up to other urban centres of the province. PHA requested KPG for technical assistance in a number of areas where PHA has no past experience. During the reporting period, one STTA continued to support PHA whereas remaining two will be mobilized once needed by PHA. 13. Customization of Zakat Management Information System (P-Pes-038) The Social Welfare, Special Education and Women Empowerment Department is tasked for the distribution of Zakat among deserving families/individuals in the province. The Provincial Government has established District Zakat Committees in each district which are responsible for the preparation of updated lists of deserving families/individuals and distribution of Zakat in their respective districts. Each year, the Department provides funds to these District Zakat Committees who then distribute these funds among deserving families, individuals and religious institutions as per the laid out rules. However, the current system of Zakat is based on manual records which are maintained in district and provincial offices. With a growing population of Zakat recipients, the manual records are sometimes not maintained properly and are subject to manipulation and abuse. To ensure greater transparency and accountability, the Department has requested KPG to support in automation of the Zakat distribution and management system. A similar system was established in the FATA Secretariat by another USAID funded project which the Department has reviewed and found appropriate. KPG therefore plan to customize the FATA Secretariat's ZMIS for the KP Social Welfare Department, help develop database of existing recipients, provide some basic hardware at the Department and District Zakat Committees and train staff and Committees' members in the operation and maintenance of the system. KPG has engaged an STTA to customize the FATA ZMIS and identify other support needed by the Department.

During the reporting period, the STTA continued to customize ZMIS. 14. Facilitation of Families Headed by Women to Obtain National Identity Cards (P-Pes-039) Families that are headed by women due to deceased husbands, fathers and brothers face a lot of hardship in obtaining computerized national identity cards which are mandatory to obtain various public services and benefits i.e. health, education, passport etc. These are also required for opening of bank accounts, obtaining telephone connections and casting votes. In addition, identity cards are needed for identification purposes while traveling within or outside the district. Although the National Database and Registration Authority has set up offices in all district headquarters and use mobile registration vans in the far flung rural areas to facilitate registration of citizens and issuance of national identity cards, families with no

KPG MONTHLY REPORT MAY 2017 17 male in the household are often neglected due to lack of access to these offices/vans and production of required documentation and their verification. The Centre for Excellence and Rural Development has proposed to facilitate and assist families headed by women or without adult male member in the household to acquire computerized national identity cards in an efficient and timely manner. During the whole process, local elected representatives will be accompanied by the project team for facilitation as their role is inevitable in the process.

During the reporting period, grant proposal was submitted to USAID. 15. Youth Skill Development through Public Private Partnership (P-Pes-041) Pakistan and particularly the Khyber Pakhtunkhwa are facing a youth bulge in the population with 60% of population falling in the age group 18-35. Due to limited opportunities in public sector departments, unemployment among the youth is increasing day by day with a resultant unrest in the youth section of the population. With the ongoing wave of terrorism in the country, it is imperative to divert the youth energies to constructive activities and build their positive attitude so that they may not fall easy victim to the terrorist organizations. The skills imparted in the training institutes generally do not match with those required in job market because what the “Ustad’ are doing in the markets are different from what the instructors are teaching in the formal system of training. The industry, therefore, prefer to recruit the skilled manpower trained under the traditional method of ‘Ustad-Shagird’ system. To improve post training employability of the skilled manpower, the Pioneer Institute of Technology and Industrial Services (PITIS) is introducing a new methodology and bringing a paradigm shift in the skill training which is need based, market oriented and setting a new example for the government with a goal to boost post training employability. PITIS has joined hands with the private sector workshops in Hayatabad Industrial Estate to adopt a system of training wherein the trainees, after completing class teaching, could be placed directly in the workshops for learning market based skills with hands on real jobs.

By providing this training, KPG with create a brand new methodology for the government to adopt and replicate in future. By providing a demand driven and market oriented skill to a vulnerable population, this activity will not only minimize socioeconomic risk such as unemployment but will set a new trend for the government for their upcoming interventions in skill training. During the reporting period, grant proposal was being finalized for submission to USAID. 16. Strengthening Rescue 1122 Services in Peshawar District (P-Pes-044) In the last few years, Peshawar in particular has experienced the worst kind of terrorism, earthquakes and floods inflicting enormous losses to both life and property of the residents. Massive bomb blasts, earthquake and flooding in the adjoining areas of Peshawar compelled the Provincial Government to introduce efficient and effective emergency rescue services in line with international best practices. Rescue 1122 service was formally launched in Peshawar in September 2010 and since inception, the service has responded to over 100,000 emergency situations including some 400 bomb blasts, 300 building collapses, 3,000 fire incidents, 30,000 road accidents and more than 65,000 medical emergencies. Seeing the success, the KP Government has started similar service in Mardan, Abbottabad, Swat and D.I. Khan Districts and has recently approved the establishment of similar service in seven other districts of the province. Although Rescue 1122 in Peshawar has performed remarkably well given its limited resources, it needs to augment its tools and equipment to effectively deal with a number of emergencies like smoke during fires, water borne search and rescue equipment during floods and lifesaving equipment after road accidents. As such, KPG has agreed to procure some basic but extremely useful state of the art tools and equipment for Rescue 1122 to strengthen its operational capability.

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During the reporting period, grant proposal was submitted to USAID.

17. Strengthening of Peshawar City District Government (P-Pes-045) KPG provided technical assistance to help the Peshawar City District Government (PCDG) in developing a 4-year strategic plan. The plan was subsequently approved by the city district council and has become part of its long-term planning process. A number of reform initiatives were identified in the plan to help PCDG deliver on its mandate more effectively. One such reform area is the development of free lands/areas in Peshawar City into public parks, amusement parks, picnic areas, parking plazas, shopping malls and other public utilities through public private partnership. This will not only help PCDG provide various urban infrastructure and services to the city residents but will also improve its own source revenues that can be used for further development of the city.

In order to support PCDG, KPG prepared and advertised a request for proposal and selected a consortium of firms in collaboration with PCDG management that is well qualified and suited to conduct a survey of fee land/areas owned by PCDG and propose potential use and development through a public private partnership model most suited for that particular facility. By developing various sites as public facilities through public private partnership, PCDG will be able to provide better public facilities to the citizens of Peshawar. This will enhance PCDG positive image and trust with its citizens and will generate support for continuation of the local government system. At the same time, citizens will have increased trust in government service delivery which will in turn increase their resilience towards alternative narrative i.e. violent extremism.

During the reporting period, proposal for provision of public facilities through PPP model was submitted to USAID. 18. Strengthening the Labor Inspection System Labor Department Labor Administration is a key governance function that helps ensure compliance to labor standards and promotion of social justice and industrial peace. The efficiency of labor administration essentially depends upon an effective Labor Inspection System (LIS). LIS is therefore a key element for ensuring the implementation of labor laws and policies through provision of advice to employers and workers and through enforcement, providing feedback and allowing for readjustment of these policies as necessary. The Department of Labor in collaboration with the International Labor Organization (ILO) initiated various joint initiatives that attempted to improve the effectiveness of LIS in the province. Recently a comprehensive Provincial Action Plan was developed that aims to strengthen LIS by means of addressing the resource and capacity deficits. Its successful implementation is pivotal for strengthening LIS functions that will in turn improve the effectiveness and efficiency of this essential public governance function of provincial labor administration. ILO, being a technical agency, has offered all the available technical support in this regard. However, the implementation of this plan requires a significant amount of financial resources for which KPG was approached. The concept for KPG assistance was approved by USAID.

During the reporting period, discussions continued with the department and ILO to develop a proposal.

19. Training of District Nazims & Naib Nazims With the introduction of over 3,500 local governments in the KP Province, the need to strengthen these new institutions has become rather critical. Almost two years into their 4-year term, majority of the elected representatives have so far received only basic orientation training through various donor funded projects. More recently, the KP Government has approved a PC-1 for the institutional strengthening of local governments. However it will be another few months before the actual work can begin. In a recent

KPG MONTHLY REPORT MAY 2017 19 meeting between the US Counsel General and the district Nazims and Naib Nazims of KP, the need for more training especially in the areas of strategic planning, internal resource mobilization and provision of public services through public private partnership was highlighted. In response to the need, the Counsel General agreed to provide these training through the KP Governance Project. It is pertinent to note that KPG has successfully conducted training of over 4,500 local government representatives of Peshawar City District and the training of district Naib Nazims of KP Province. As such, KPG is able to and capable of conducting the three training announced by the Counsel General. These training will further enhance the capacity of district Nazims/Naib Nazims that will lead to improved service delivery by their respective district governments and thus result in better public perception about government and governance in the province.

During the reporting period, technical and financial proposals were received and being evaluated.

20. Policy Formulation for Home Based Workers It is estimated that 75% of those working in the informal sector are women working as home based workers. Even though women work with same efforts and for same hours and contribute equally for their survival, they are often denied their due rights either by their employers or by the government. There is lack of conducive policies and their unacknowledged status paves the way for their social, political and economic exploitation. They are considered helpless in the absence of their rights and security. Before the passage of 18th amendment, a national level policy was formulated and presented to the national assembly. With the passage of 18th amendment in Pakistan, all the decisions/matters related to labor were given to the provinces and now they are responsible to work over their own provincial level policy reforms. Punjab is the first province in Pakistan to pass a law and policy for home based workers, while Sindh is at advanced stage of policy development. However, Khyber Pakhtunkhwa Province is yet to move forward in this direction. Da Hawwa Lur has proposed to work with the provincial government towards the formulation of a policy for home based workers in the province. The policy formulation will be done in collaboration with the provincial government, local governments, civil society (home based workers, lawyers, CSO representative, media persons, union leaders etc.) A concept note for the proposal was approved by USAID.

During the reporting period, grant proposal was being finalized for submission to USAID.

21. Strengthening Planning and Development Department The Government of Khyber Pakhtunkhwa has identified seven mega projects that will be implemented in the province under the China Pakistan Economic Corridor. In order to assess their strategic and economic viability and impact, develop various implementation mechanisms, ensure timely and effective completion, and develop ancillary infrastructure and services to significantly benefit from these projects, the Planning and Development Department requested KPG for short term technical assistance in six areas i.e. economic analysis, infrastructure planning, investment and trade, public private partnership, regulatory regime, and research and documentation. The technical assistance will enable the Department in playing its role more proactively and preparing the provincial government for challenges that lie ahead as these mega projects are implemented across the province. It is expected that these projects, once completed, will contribute significantly to the economic and social development of the province and its citizens by providing numerous opportunities for trade, commerce and employment. This will lead to more prosperous society thus increasing communities’ resilience to violent extremism.

During the reporting period, two STTAs was mobilized whereas contracts for remaining STTAs were being finalized.

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CONCEPTS DEVELOPED

C. # Title District Organization Status

C-Pes-0058 Pekhawar Kho Peshawar Peshawar City Concept approved by USAID Pekhawar De Kana District Government

C-Pes-0059 Khyber Pakhtunkhwa Peshawar Khyber Concept approved by USAID Provincial Government Pakhtunkhwa Enterprise Resource Information Planning System Technology Board

C-Pes-0060 Public Awareness Peshawar Peshawar City Concept approved by USAID Raising about District Ambulance Service in Government Hayatabad PCDG

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4. ACTIVITIES BUDGET SUMMARY

Table 1: Funding and Spending up to the Month of May 2017:

Invoiced to reporting Program Contract Total Obligated period (May 2017)*

Grants Under Contract (GUC) $7,000,000 $3,716,270 $ 1,194,833

5. COMING UP

. Development of concept to establish an IT training centre for women in Peshawar . Development of concept to establish youth leaders assembly in districts . Development of concept to hold women empowerment gala . Development of concept to use mobile agahi centre for public awareness raising . Development of concept to amplify voices of local communities in development planning . Development of concept to hold Pashto Folk Music Festival . Development of concept to build capacity of local governments on Sustainable Development Goals . Development of concept to raise public awareness on Compulsory Primary Education Law . Development of concept to mobilize and register voters before 2018 general elections . Development of concept to promote pro women reforms and legislation . Development of concept to enhance digital work opportunities for youth

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