REPORT ON SOCIAL & INSTITUTIONAL Public Disclosure Authorized ASSESSMENT Public Disclosure Authorized

M., Public Disclosure Authorized

Public Disclosure Authorized November 26, 2003

Pakistan: NWFP Community Infrastructure Project-II (CIP2) 2

Table of Contents

Chapter # Topics Page

Acknowledgement 5 List of Acronyms 6 Executive Summary 7

Chapter 1 Aims and Objectives of the Study

1.1 Aims and Objectives 11 Methodology of social and Institutional Assessment 11

Chapter 2 Socio-Economics Overview of NWFP

2.1 Demographic Characteristics 13 2.2 Income and Poverty 15 2.3 House Hold Size & Land Ownership 18 2.4 Household Assets 19 2.5 Employment /Occupation & Expenditure 19

Non-Income Social Dimensions 2.6 Home Ownership 20 2.7 Water and Sanitation, Electricity 20 2.8 Education 21 2.9 Health 23 2.10 Road & Communications 25 2.11 Local Conflict Management 26

Chapter 3 Gender Assessments 3.1 General 27 3.2 Gender in NWFP 27 3.3 Education and Health 27 3.4 Gender in Politics 28 3.5 Violence and Gender 29 3.6 Legal 29 3.7 FATA 30 3

Table of Contents

Chapter # Topics Page#

3.8 Gender in CIP I 30 Chapter 4 Institutional Arrangement . -

4.1 Government Devolution Plan 32 4.2 Administrative Setup 32 4.3 Structure of District Administration 33 4.4 Tehsil/ Town Municipal Administration (TMA) & its role 33 4.5 Union Councils 45 4.6 Citizen Community Boards (CCBs) 36 4.7 Civil Society and Non Government Organizations (NGOs) 37

Chapter 5 Review of other Project(s)- CIP I 5.1 Introduction to CIP 39 5.1.1 Aims and Objectives 39 5.1.2 CIP Components 39

5.2 Reviews and Evaluations of CIP 41 5.2.1 * Mid Term Review 41 5.2.2 * Supervision Mission 42 5.2.3 * Third Part Evaluation 42 5.2.4 * Pre-appraisal mission 43 5.3 Lesson Learned 43 5.3.1 Other Lessons Learned 45 Chapter 6 CIP II 6.1 Objectives and Scope 46 6.2 components 47 Chapter 7 Monitoring and Evaluation 7.1 Types of Monitoring 49 7.2 M&E framework 7.3 M&E Indicators 50 Chapter 8 Social Safeguards 8.1 Stakeholders 52 8.2 Consultation & Participation framework 53 8.3 Risks and Mitigation 53 Annex A Third Party Evaluation(Comparison) Annex B Social Assessment Format Annex C Social Assessment (ToR) and CIP-II Baseline 4

List of Tables Table 1 Area and Population of NWFP Table 2 NWFP at Glance Table 3 Mean Consumption, Inequality and Poverty: 1991/99 Table 4 Incidence of Poverty by Province and Region Table 5 Poverty Headcount by Household Size Table 6 Rural Poverty Headcount by Household Land Ownership (1998-99) Table 7 Poverty Headcount by Literacy/& Education of HH Head (1998-99) Table 8 Distribution of Population by Expenditure /Occupation of HH Head (%) Table 9 Access Sanitation, Drinking Water, and Electricity (1998/99) Table 10 Safe Drinking Water Coverage by Districts Table 11 Access to Education (1998/99) Table 12 Literacy and Education (1998-99) Table 13 Access to Health facilities in Rural Area by province (1998-99) Table 14 Health Professionals in NWFP (2000) Table 15 NWFP Government Health Facilities, 2002 Table 16 Road and Communication 5 Acknowledgement

This Social Assessment (SA), has been prepared for the preparation of the proposed Pakistan: NWFP Community Infrastructure Project (CIP2), and has provided us the opportunity to review and revisit the relevant social information and development strategies.

This report has been a proven example of coordinated efforts by all its stake holders. The report has been prepared for the Local Government and Rural Development Department of the North West frontier Province for its CIP II. We would like to express our appreciation for the support and guidance provided by our World Bank Counterparts especially Ms. Zia Al-Jalaly, from World Bank Islamabad, and Ms. Julie Viloria- Williams from Washington DC, both of whose advice and inputs have been valuable in the finalization of this report.

The LG&RDD officials and staff actively participated in the preparation, especially in stakeholder consultation. Their contribution have been valuable in facilitating the field study and their experiences has given us good insights into the dynamics of NWFP's social conditions. Furthermore, they have been very helpful in secondary data collection. We appreciate and value their inputs and contributions.

The participation and contribution of the community groups, especially the local community based organization, and the local government officials (TMAs) in organizing the consultation process made the whole field work possible. Because of their involvement the people took the discussion seriously and gave concrete inputs and recommendations for the consultation process design. They also helped verify the secondary data and explained and elaborated on the service delivery options. We thank them for their kind help. Finally, the contribution of Waseem and his team from the Institutional Strengthening Program (ISP); and Mohammad Akbar, a Local Resource Specialist also made this report completed in time and spirit.

Director General & Staff Management Unit Community Infrastructure Project, LG&RDD 6 List of Acronyms

AJK Azad Jammu & Kashmir BoS NWFP Bureau of Statistic CBO Community Based Organization CCB Citizen's Community Board CD Community Development CFA Community Financial Agreement CIP Community Infrastructure Project CBWO Community Based Women Organization GOP Government of Pakistan DC District Council D&I Design and Implementation GoNWFP Government of North West Frontier Province FSO Female Social Organizer FY Fiscal Year HH(s) House Hold(s) HIES Household Income Expenditure Survey IDA International Development Agency ISP Institutional Strengthening Program LGE&RD Local Govt. Election & Rural Development LGO Local Government Ordinance LFA Logical Frame Analysis MICS Multi Indicators Cluster Survey MOU Memorandum of Understanding NGO Non Government Organization MTR Mid Term Review M&E Monitoring and Evaluation NWFP North West Frontier Province PDWP Provincial Development Working Party PIHS Pakistan Integrated Household Survey PE&D Planning, Evaluation and Development P&CD Planning and Community Development- CIP PRB Project Review Board PCSB Provincial Consultant Selection Board PSC Project Steering Committee PM Process Monitoring PMU Project Management Unit PIU Project Implementation Unit PCSU Project Coordination & Supervisory Unit Rs Pakistan Currency - Pak Rupees SAR Staff Appraisal Report SDC Swiss Agency for Development Corporation SO Social Organizers SSO Senior Social Organization TMA Tehsil Municipal Administration O&M Operation and Maintenance UNICEF United Nation Fund for Children and Education UC Union Council 7

Executive Summary

This Social Assessment is part of the project preparation exercise for the NWFP: Community Infrastructure Project II (CIP2), that builds on the successful experience of CIP I and other complementary programs in the NWFP, but adapts them to the devolution. The Social Assessment aims to provide an understanding of: the project area and its people ( socio economic perspective); status of gender; an evaluation of social and institutional organizations and institutional arrangement under devolution; a review of CIP 1 components, M&E of the proposed project along with a consultation framework, and assessment of social safeguards and critical risks and mitigation.

The study has drawn upon primary and secondary information through consultation workshops with all stakeholders including TMAs, Tehsil Nazims, NGOs, CBOs, Government of NWFP, staff of LGRDD, communities of CIP 1 and some CIP2 and civil society. Studies, and surveys were also used for collecting primary data while project reviews, third party evaluation and reviews of various documents were used as secondary source.

The total area of the province is 74,561 square Km and has boundaries with Afghanistan, the Northern Areas, Azad Jammu and Kashmir and the Punjab province. The population is 18.6 millions people made of different tribes and ethnic groups along with a large number of Afghan refugees. From the point of the topography, the Province is usually divided in to three main geographic domains. They are the North (mountainous), The Southern Districts and the Center (rich irrigated areas). The main rivers are Kabul, Bara, Kurram, Tochi and Gomal. Agriculture is considered the backbone of the province where about 70% of the population depend on it.

The average income per day per capita of the population is about Rs. 20, while Rs 24/day has been reported in the 1998-9 PIHS and Rs. 26/ day in the 1998-9 HIES respectively for NWFP. The infant mortality rate (IMR) was 79 per 1000 and the under- five mortality rate (U5MR) was 116 per 1000 live births in 1998, (by the United Nations' Q5 method). Over one-third of children (38%) under age five years are underweight. Only 39% of children of primary school age (5-9 years) in NWFF are enrolled in primary school. Enrolment is much higher in urban, as compared with rural (51% vs. 37%) and for boys as compared with girls (44% vs. 32%).

About two-thirds (63%) of the population has access to safe drinking water, 88% percent in urban and 59% in rural areas. Although 68% of households have toilets but less than half (39%) have any sanitary means of excreta disposal, that is again higher for urban areas. Kohistan and Upper Dir have the lowest levels (3% and 11 % respectively). Safe drinking water is a basic necessity for good health. Unsafe drinking water can be a significant carrier of enteric diseases (including cholera and typhoid) and parasites, such as roundworm. Women on an average, spend 3.7 hours in collecting water. The proposed project will enable women to use the time saved from carrying water for other economic/social activities or for rest/leisure. 8

The Government of Pakistan has announced a Gender Policy to improve the status of women. The National Commission on the Status of Women has also been created by the Government to provide policy advise. However, despite these efforts the social indicators for women lag behind that of men. During recent elections, women have been elected to the Assemblies of Pakistan and the NWFP where 4,452 women have been elected to the local bodies in NWFP. However, NWFP still remains a patriarchal society and social segregation of gender through "purdah" is a common practice. Moreover, the Hadood Ordinance discriminates against women. Under CIP I efforts had been made to involve women and ensure they benefited from project interventions. Female Community Based Organizations were formed to provide women with a forum to address their needs. Activities related to health, hygiene, micro credit etc. helped women, while the supply of water benefited women greatly.

Administratively, the province is divided (in the devolved scenario) into 24 Districts, 61 Tehsils/Towns (Tehsil Municipal Administrations) and 957 Union Administrations (Union Councils) with approximately 11000 villages. With the Implementation of Local Government Ordinance (LGO) 2001, Local Governments have come into existence at all the three levels and are functional. The District is governed by the District Nazim and is coordinated by a District Coordination Officer, while the Tehsil or Town governments are headed by Town or Tehsil Nazims and Coordinated by Tehsil Municipal Officers. The Union Councils have Nazims and Naib Nazims, 21 Councilors and a UC Secretary from the administrative set up. The Devolution Plan of the government has changed the implementation process and mechanism where the traditional line departments within the provincial government's set-up to plan, execute and maintain such facilities has been abolished, and a new structure based on Town/ Tehsil Municipal Administration (TMA) introduced to provide WES and infrastructure related services.

NGOs play an important role in development . According to an estimate there are about 2,300 NGOs which are registered under the Social Welfare Ordinance 1960. There are also a large number of unregistered CBOs and Village Organizations.. Under LGO 2001, Citizen Community Boards are being established, and presently, there are about 400 CCBs in the province that have been assisted mainly from the on-going Institutional Strengthening Program of CIP 1. A review of CIP I provided lessons learned, the important ones are the following:

* Considerable institutional capacity is required in the provincial government to implement the large decentralized program; * Community development is an essential pre-requisite for project investment in local communities; * Development of adequate human and institutional capacity is essential at all levels; * Project needs to be flexible and responsive to community needs; * women's participation needs to be an intrinsic part of the project; and * Project rules and criteria need to be clearly stated and correctly applied, this will ensure transparency;

The CIP II aims to involve active participation of a wide variety of stakeholders including members of the local communities, existing CCBs and NGOs, private firms and 9

groups, government agencies and elected officials at all levels. The formation of new CCBs is a highly participative process involving as much of the local community as possible including its women and other less advantaged groups. The elected local council will also be involved in this process. The approach involves the following: (i) local members of the community are encouraged through information dissemination campaigns to define the problems, devise practical solutions and form CCBs in a community action planning process; (ii) selecting communities based on human, financial and O&M commitments; (iii) integrating physical, social and economic components with the leadership of the CCB; and (iv) continuing to incorporate and strengthen the role of women in all aspects of the program. Implementation arrangements would be documented in a Memorandum of Agreement (MOA) between the CCB and the tehsil government.

The community has indicated its willingness to undertake the responsibility for the operation and maintenance of the scheme. They will be supported with training and institutional support, which will enhance their ability to manage their own development. Focused groups discussions with community members in 29 rural communities and 9 urban communities show:

* water supply, roads, primary school upgrading (especially for girls) and improvement in health facilities as the main need.

* a strong willingness to participate by the TMAs and communities with up- front contribution of funds. Almost all the communities visited have a tradition of self-help for development.

* a tradition of voluntary land donation for public benefit where CIP-I has shown good experience of community contribution.

* a growing concern about quality of water, disposal of human and domestic waste, overgrazing and deforestation etc. The dry period of the last three years has created the realization for the need for water conservation and in many of the sites where RWSS schemes are complete, water-rationing practice was visible.

* The poor viewed infrastructure development, especially water supply and roads as contributing to poverty alleviation, provided income generation activities are linked to it and supported. Improvement of health facilities, especially preventive practice were seen as cost saving in CIP-I.

* Participation issues were: (i) scattered pattern of settlement that restrict outreach; (ii) conflict between groups due to political and social competition (iii) consultation and participation framework being complicated and time consuming (iv) people being left out due to poverty reasons i.e. too poor to contribute and therefore not selected (v) willingness to contribute and (vi) elite capture.

* No indigenous communities were found. 10

The M&E framework lays out a number of monitoring indicators to cover the social aspects of the program. The system suggested includes external ( Process monitoring, baseline etc.) and internal monitoring by stakeholders.

Social safeguards do not apply. The project envisages the use of donated land only where the project will ensure that

* Land will be identified by the community (ensuring its appropriateness for project activity);

* The voluntary nature of the donation will be verified from the person(s) donating and;

* There should be no encumbrances on the land; and

* In situations of loss of income or displacement, verification will be obtained from affected parties that community devised mitigation measures are acceptable.

* Land transfer will be officially recorded in revenue registers through 'Iqranamas'.

A consultation framework has been evolved along with a risk and mitigatory matrix. Chapter One

Social Assessment

Social Assessment (SA), is a process for ensuring that the World Bank-financed development operations are informed by and take into account relevant social issues.

This social assessment is a part of the project preparation exercise of Community Infrastructure Project 2 (CIP2), being undertaken by the Government of NWFP and the World Bank. The proposed CIP II builds on the successful experiences of the first CIP and other complementary programs in the NWFP, but adapts them to devolution. The project aims to improve the well being of the low income communities in NWFP.

1.1 Aims and Objective of the Social Assessment (SA) for the CIP2

The main objective of this Social Assessment (SA), is to have a clear understanding of the Project Area, demographic characteristics, its people, tribes and races, their access to basic services including Infrastructure, health and education etc., institutional assessment, identification of relevant social and institutional issues, and mapping of a framework for participation of key stakeholders.

In this context, Social Assessment is a Process, which helps in ensuring that the Government and the Donor assisted development operations are informed by and take into account the relevant issues. Following are the areas covered under this Social Assessment:

* understanding of the project area and its people, including a review of social and organizational structure in the Project area * identification of stakeholders and their stakes * identification of key social development and participation issues * evaluation of social and institutional organizational issues * framework for consultation and participation

1.2 Methodology of Social & Institutional Assessment

The assessment is based on primary and secondary social and institutional data of the project area, obtained through consultative workshop, focus group meetings, and meetings and discussions, with stakeholders including all the TMAs, Tehsil Nazims, NGOs and CBOs, GoNWFP, staff and communities of CIP I, civil society, etc. While secondary data sources were published socio-economic data and profiles, and review of documents, and other projects. Specifically following sources were used to collect primary / secondary data:

* Review of 1998 Census for NWFP 12

* Third Party Evaluation report of the CIP- 1 * Multiple Indicators Cluster Survey conducted by the Planning and Development Department of NWFP and UNICEF * Safe Drinking Water, Sanitation, Latrine and Waste Management in Pakistan and Review Analysis * Assessment of 6 Tehsil Municipal Administrations (TMAs), which worked as partners in the Pilot project offered by CIP * Review of Findings from TMA Consultative Workshops facilitated by the ISP component of CIP on October 04, 2003. * Literature review and stakeholders consultation * Discussion and meetings were held with TMOs and Tehsil Nazims of the nine TMAs where Project activities will be carried out during the 1st year. * 1998 Census Report of NWFP * Process Monitoring Studies and Reports * Banks report on Poverty Alleviation * Pakistan Devolution: WB Note In Support of the Development Policy Review, May 1, 2002 With July 2002 Update * Review of other projects---CIP and AJKCISP (on going) 13

Chapter TWO Socio-economic Overview of NWFP

2.1 Demographic Characteristics of NWFP

The North West Frontier Province (NWFP), is situated in the north-western part of Pakistan. Till 1901, NWFP was a division of the then Punjab Province consisting of Peshawar, Hazara and Kohat Districts. On its separation from Punjab in 1901, its headquarters was established at Peshawar.

Total area of the province is 74,561 square Km and is bounded on the north-west by Afghanistan, on the north-east by Northern Areas, on the east by the Azad Jammu and Kashmir and the Punjab province, on the south by Dera Ghazi Khan District of Punjab and in the west by Federally Administered Areas (FATA).

The province has an estimated population of about 18.6 millions people ( see table 1), 17 % in urban areas while the 83 % lives in rural/semi urban settlements, which contains several ethnological strata, representing the deposits formed by different streams of immigration or invasion. Most numerous and important are the Pathans (73.9%) who regard themselves as the dominant class and form the majority of agricultural population in Peshawar, Kohat, Bannu and Malakand, while beyond the administrative border they are in exclusive possession from Chitral to Gomal. This is followed by Saraiki and Punjabi. The remaining groups are the Hindko, Balochi, Gogars, etc.

The topography of NWFP consists of three main geographic domains, namely, the North (Malakand, Dir, Chitral, Buner, Swat, Mansehra, Abbottabad and Batagram); the South (Kohat, Karak, Bannu, Lakki, Hangu and DIKhan and Tank );and the Centre (Peshawar, Charsada, Nowshera Mardan and Swabi). The main rivers in the province are Indus, Swat, Kabul, Bara, Kurram, Tochi and Gomal.

Agriculture is considered the back bone of the province where about 70% of the population are dependent on its produce. The main crops grown in the area are wheat, sugarcane, tobacco, maize, various species of vegetables and orchards of different fruits grown in the plains and hilly areas of center and northern NWFP. In the South the main crops are wheat, Barley and Gram etc.

According to the 1998 Census report, the Annual growth rate in the province is 2.82% while the density per square km is 250 persons. With respect to Urban and Rural settlements, 83% of the population is living in rural areas while the remaining 17% are in urban.

The main tribes residing in the province are Yousafzais of Bajaur, Swat Dir and Malakand Agencies, Afridis of Khyber Agency, Kohat and Peshawar, Mohmands of Mohmand Agency, Orakzais of Orakzai Agency, Turis and Bangash of Kurram Agency, Waziris of North Waziristan Agency, Mahsuds and Urmars of South Waziristan Agency, and Bhittanis and Sheranis in Tank and D.I. Khan Districts. The Khattak tribe of the well 14 known warrior-poet Khushal Khan Khattak is also one of the well known tribes of Peshawar and Kohat border. There are other smaller tribes such as Shinwaris, Mullagoris, Shilmanis, Safis, Zaimukht, Muqbil, Mangal, Zadran, Para Chamkani, Kharoti, Jadoon and Daur etc.

Table 1: Area and opulation of NWFP Item Year Unit Pakistan N.W.F.P % Share of N.W.F.P

AREA - Sq-Kms 796095 74521 9.4

POPULATION TOTAL 1998 Thousand 130580 17738 13.6 ______(Census) (P) Persons Male -do- -do- 67840 9086 13.4

Female -do- -do- 62740 8652 13.8

Urban -do- -do- 42459 2994 7.1

Rural -do- -do- 88121 14744 16.7

Estimated Population 1999-2000 -do- 136010 18666 13.7

Population density -do- Persons Per 171 250 Sq-Kms ______

Map of North West Frontier Province

v - _1 15

*2.2 Income and Poverty

The pattern of income distribution was distinct across work sources: government staff with around Rs 3000/month, private sector workers were more widespread and laborers clumped in the lower ranges of under Rs 80/day. As expected, of the farmers, owner- cultivators had higher incomes. It is likely that under-estimates of farmers' incomes occurred in the reporting of data. The pattern for urban-rural reflects the different work sources in these areas.

It is found that the average income per day per capita of the population is about Rs 20. compared with Rs 24/day income reported in the 1998-9 PIHS' and Rs26/ day reported in the 1998-9 HIES2 respectively for NWFP. The average income reported in the Multi Indicators Cluster Survey (MICS) was higher for urban, as compared with rural areas (Rs 26 vs. Rs 18); in literates compared with illiterates ( Rs 139 vs. Rs 85) and by work source. District comparisons range from Rs 37 in Kohat to Rs 12/day in Shangla. Some of the differences may be due to remittances from abroad, especially for the higher ranked districts where a high percent of household members work overseas. Poverty, Inequality and Poverty Gap

Poverty in NWFP should be understood in the broader context of poverty in Pakistan3 . In addition, understanding issues specific to poverty in the province also requires examining the concentration of poverty across areas within NWFP, which will help inform policymakers by identifying priority needs and target groups for intervention. The recently conducted Multi-Indicator Cluster Survey (MICS) 2001, is a first attempt to get district-level representative estimates in the NWFP. The preliminary results form MICS show that there is considerable variation within the province in terms of poverty and social indicators . Districts of Kohistan, Upper Dir, Bunner, Batagram, Shanga and Tank are among the poorest six districts in NWFP, ranking extremely low in terms of social indicators. More detailed assessment of within-province poverty and social development would be possible in the future, once the MICS data is available for analysis and the survey is repeated every 3-4 years as planned.

Among the major provinces of Pakistan, NWFP is by far the poorest, with an overall incidence of poverty substantially higher than that for the country as a whole. Poverty headcount for NWFP is 44%, compared to 33% for Pakistan (see table 2). Both urban and rural poverty in NWFP are higher than that for the entire country. According to Table 4, poverty headcounts for urban and rural NWFP are about 31 % and 47% respectively, while for Pakistan the data is 24% and 36% respectively. Moreover, depth and severity of both urban and rural poverty, measured by poverty gap and squared poverty gap respectively, are relatively higher for NWFP than for the rest of the country. Consistent with the poverty estimates, average per-capita consumption expenditures are also lower

1 PIHS,1998-99 Table C2 pg 160 2HIES, 1998-99-Table 2.5C, pg 11 3 The source for all data, unless otherwise specified, is the Pakistan Integrated Household Survey (1998/99). 16 for NWFP vis-a-vis the rest of the country ( See Table 3). Inequality in NWFP, as measured by the gini coefficient for per equivalent adult consumption, is very similar to that for the country, in rural and urban areas alike.

Tale 2: NWFP at Glance NWFP Pakistan GSNP/GDP 300 429 Average Annual Growth %age 2.8 2.6 Poverty % of population below poverty line 44 33 Source: Gross Domestic Product NWFP 1998-99, Pakistan integrated household survey - 1998-99

The overall picture of consumption /income poverty in NWFP thus corresponds closely with that of Pakistan as a whole reflecting higher concentration of the poor in rural areas, with lower average consumption levels in rural areas, and relatively higher inequality in urban areas. Moreover, as Table 4 shows, the 15 percentage point rural-urban gap in headcount rates for NWFP in 1998-99 is higher than that for the whole of Pakistan and second only to Sindh among all provinces. The high rural-urban gap has all the more significance for overall poverty in NWFP, since the province is much more rural than the country as a whole.

Table 3:: Mean Consumption, Inequality and Poverty: 1991/99 1 Urban IRural Overall 1. Mean per-capita monthly consumption (current Rs) All Pakistan 1193 819 924 NWFP 1071 735 785 2. Inequalitypini44) (Consumption All Pakistan 0.35 0.25 0.31 NWFP 0.35 0.25 0.25 3 Poverty Headcount (%) All Pakistan 24.2 1 36 32.7 NWFP 21.2 46.5 44.3 4. . Poverty Gap All Pakistian in5.0n7.9 u 7.0 NWFP 6.6 10.5 9.9 5 Severity of poverty (squared poverty gap) dns All Pakistan 1 .5 2.5 2.2 NWFP 12.2 3.4 3.2

Table 4 also shows how poverty in NWFP has changed over the decade. From 1990-91 to 1998-99, urban poverty in NWFP declined substantially (close to 6 percentage points) which is more than the decline in national urban poverty. Meanwhile, incidence of poverty in rural NWFP increased by more than 4 percentage points over the same period, although rural poverty headcount for the country actually fell slightly over the same period. Unlike Punjab, the largest and most populated province in Pakistan, where rural and urban poverty alike have shown modest declines over the decade, poverty reduction in the 1990s in NWFP appears to have occurred only in urban areas. However,

equivalent 4 Gini coefficient for per equivalent adult consumption expenditure (using scale I child = 0.8 adult) 17

despite the decline in urban poverty in NWFP during the decade of the 1990s, urban areas in this province still remain the poorest in the country by a large margin.

Table 4: Incidence of Poverty by Province and Region 1998-99 1990-91 Urban Rural Over all Urban Rural Over all Punjab 26.5 34.7 32.4 29.4 38.5 35.9 Sindh 19.0 37.1 29.2 24.1 30.8 27.6 NWFP 31.2 46.5 44.3 37.0 40.6 40.0 Balochistan 28.4 24.0 24.6 26.7 20.9 22.0 AJK 14.5 15.7 15.6 Northern Areas 22.6 37.9 36.5 Fata 44.5 44.5 National 24.2 36 32.7 28.0 36.9 34

Poverty Headcounts by Literacy and Education

Poverty, as expected, is strongly associated with lack of human capital, measured by the education and literacy status of the head of the household. Poverty headcount among those living in households with literate heads is around 54% in NWFP, compared to 26% for households where the head is not literate.

Moreover, poverty headcount in NWFP as well as in the country as a whole declined steadily with increase in the education of the head of the household (Table 5). Finally, it appears that for NWFP and the entire country alike, poverty declines more steeply with literacy and increased levels of education, especially for relatively higher levels of education of middle school and above ( in urban areas than in rural areas). This is expected, since returns to education are likely to be higher in urban areas, where better opportunities to utilize the skills provided by education are likely to exist.

Table 5: Poverty Headcount by Literacy of HH Head (1998-99)' Urban % Rural % Overall % Pakistan NWFP Pakistan NWFP Pakistan NWFP Non Literate 39.5 43.9 42.9 54.8 42.3 53.653.6 Literate 15.4 18.7 25.1 27.9 21.3 25.9 Never attend School 39.8 44.0 43.3 54.8 42.5 53.6 Cl 1-5 (Primary 26.8 41.2 30.7 33.7 29.6 34.9 Cl. 6-9 (secondary) 18.7 30.9 25.8 34.2 23.3 33.5 C1. 10-11 (metric) 13.0 12.2 20.0 26.7 16.8 23.2 Cl. 12 (intermediate) 8.2 3.1 17.6 21.2 12.1 14.8 College and above 4.5 0.6 6.5 5 9.8 5.3 6.3 a) Literacy rates have been calculated here for population 15 years and above. 18

2.3 House Hold Size & Land Ownership

An assessment of poverty includes inter alia a definition of poverty by lack of consumption, and an examination of the characteristics of poor households to identify the non-income dimensions of poverty. In this context a correlations between consumption/income poverty and various household characteristics is useful to enable an understanding of who the poor are, with reasons for being so.

Table 6: Poverty Headcount by Household Size in NWFP Household Size Urban % Rural % Overall % 1-2 0.00 2.7 2.3 3-5 8.4 20.8 18.9 6-7 18.3 37.2 34 8-10 44 49.9 49.1 11-15 40.1 60.0 56.9 >=16 39.4 61.6 58.6

Firstly, the poor are more likely to live in largerhouseholds (Table 6). Poverty incidence is found to increase rapidly as household size increases from a headcount rate of well below 21% for households of size 5 and below, to 57% for those of size 11 and above. While these simple calculations do not take into account the "scale factor" in consumption, but differences in poverty incidence in Table 6 are large enough to show a negative correlation between household size and poverty5.

Poverty is also seen to be strongly associated with lack of asset ownership, an important component of which is agricultural land in rural areas. The average size of agricultural land owned by poor households is 0.25 hectares in rural NWFP, compared to 0.71 hectares for the non-poor. Rural poverty headcount falls as the size of land holding increases. However, table 7 further suggests that small and marginal landholders are almost equally poor as those who own no land, while poverty among large landowners is significantly lower.

Table 7: Rural Poverty Headcount by Household Land Ownership (1998-99) Land ownership Poverty Head count % age of poverty in category Category Rural Pakistan Rural NWFP Rural Pakistan Rural NWFP No Land Owned 40.3 47.7 61.4 54.9 0-1 hectare 33.8 44.9 18.4 35.6 1-2 hectare 29.5 43.6 5.9 4.4 2-4 hectare 22.4 33.3 7.0 3.7 > 4 hectare 12.8 11.5 7.3 1.5

There are a few observations that can be made on comparing the pattern of landholdings in NWFP vis-a-vis the rest of the country. Table 7 suggests that inequality in land ownership in rural NWFP is lower than the average for the rest of the country. For the

equivalent 5 The "scale factor" of the household is not taken into account, since consumption is computed on a per would mean adult basis. In other words, the possibility that larger households enjoy economies of scale in consumption is that these may actually be less poor than the calculations here reveal. Adjusting for this kind of bias, however, from difficult, since it will require detailed knowledge of consumption of individual household members - not available standard household expenditure surveys. 19

country as a whole, about 61% of the rural population own no land while about 6 % has landholding of about 2 hectares, while the numbers for NWFP are about 55% and 4% respectively, suggesting that land ownership in NWFP is less concentrated than for Pakistan. Moreover, majority of landowners (36% of the rural population) in NWFP belong to the category of small and marginal farmers, namely those who own between 0 and 1 hectares. The table further reveals that there are relatively few large land owners. The implications of less concentration of land ownership, and the prevalence of small landholdings for agriculture productivity and poverty is important to consider, particularly in the context of the high rate of rural poverty observed in NWFP.

2.4 Household Assets

A series of indicators were examined for relevance to standard of living of residents. Results indicated wide disparities between urban and rural areas: pakka house (urban 50% vs. rural 18%), electricity (98 vs. 82%) and gas supply (46 vs. 4%), phone connection (27 vs. 8%) and at least three of the following 'possessions - refrigerator, television, radio, washing machine, motorcar and motorcycle (46 vs. 16%).

The degree of urbanization, for Peshawar is 49% while the districts without any urban areas are Battagram, Shangla and Kohistan. These also have low values for household asset indicators as well as consistently low values for key indicators, such as infant mortality, primary school education, adult literacy, safe water and adequate sanitation and income per capita.

2.5 Employment /Occupation & Expenditure

Occupationalstatus of the household head is another important factor likely to be associated with poverty (Table 8). In urban NWFP, employment of the household head as related to poverty does not show clear patterns, partly due to lack of detailed employment data. However, it is important to note that for the rural areas the proportion of households in the bottom quintile of expenditure represents heads of the households working as paid employees, as compared to the urban population as a whole. In the urban sector a large proportion of the paid employees are normally engaged as wage labor in the informal sector, which is known to provide significant employment while in rural NWFP, poor households are relatively more likely to be headed by individuals working as a paid employee, and found to be wage labor in farms. 20

Table 8: Distribution of Population by Expenditure & Occupation of HH Head (%)

Owner Owner Share Consumption Not Employ Self Un paid Paid Owner Owner cultivator cultivator cropper Expenditure Group Workg er employ family employee cultivator cultivator >4hectare ______worker

Non-Income Dimensions of Poverty: Human Development

The multidimensional nature of poverty takes into account not only low levels of consumption, but also low human capital which may explain the nature and extent of deprivation and the lack of capability to enhance future economic opportunities. The education and health indicators reveal the relatively low levels of human development in the NWFP.

2.6 Home Ownership

Home ownership rates in Pakistan are high and stand at about 89% . In NWFP, the rural home ownership rate is around 90%, but the urban home ownership rate is only about 66%, the lowest of any province.

2.7 Water and Sanitation, Electricity

The poor in NWFP also suffer from a lack of access to a number of services, which has direct implications for their human development.

As Table 9, portrays the poor have relatively low access to safe drinking water and sanitation facilities; they are less likely to use closed sources of drinking water and be connected to a drainage system. They are also less likely to be connected to electricity.

Furthermore, urban renters, who occupy 28% of urban dwellings, are more likely than owners to draw their drinking water from a piped source outside the unit, to use kerosene for cooking, and to lack a kitchen. 21

Table 9: Access Sanitation, Drinkin g Water, and Ele tricity (1998/99) Closed Pipe source for Connected to Connected to Electricity Dinking 6 drainage system ___ _ NWFP Poor 50.1 28.3 72.1 Non Poor 64.7 40.2 81.7 Rural 53.6 27.3 74.5 Urban 85.4 80.1 94.6 Overall 58.3 35.1 77.5 All Pakistan Rural 74.1 30.7 63.3 Urban 94.2 89.1 92.4 Overall 79.8 47.1 71.5

The additional 6% of urban households who occupy their units rent-free depend on wells outside their units for drinking water, use dung-cake, wood, and other (non-gas, non- kerosene) sources for cooking, and to lack kitchens, bathrooms, and latrines. The availability of the safe drinking water by districts is given below:

Table 10: Safe Drinking Water Coverage by Districts % Coverage Districts Below 50 Kohistan, Shangla, Chitral, Upper Dir 51-60 Swat, Tank, Karak, Batagram, Laki Marwat, Lower Dir 70-89 Bunner, D.I. Khan, Abbottabad, Manshera, Haripur Bannu, Kohat, Hangu 90 and above Malakand Protected Area, Nowshera, Swabi, Charsadda Mardan, Peshawar

2.8 Education

Table 11 shows that in urban and rural areas alike, poor households have lower literacy rates among members ( about 23% of all poor are literate, compared to 41% of the non- poor), and lower net primary enrollment rates (38% among the poor, compared to 59% among the non-poor).

Includes piped water, and outside, closed water sources. These sources of drinking water are potentially safer than the alternative: "outside, open" source. However, access to potentially safer sources does not guarantee safety of the drinking water from these sources. The proportion of population with using piped/outside open sources is thus merely indicative of the proportion of the population with access to safe drinking water. Includes underground, as well as open drain systems. 22

Table 11: Access to Education (1998/99) ______literacy Net Enrolment rate NWFP Poor 22.7 38.0 Non Poor 40.7 58.9 Rural 30.2 45.8 Urban 50.2 66.5 Overall 33.4 48.6 All Pakistan Rural 33.5 45.2 Urban 63.1 66.5 Overall 42.5 50.5

In the NWFP (see table 12), almost every education or health indicator for females is found to be lower than that for Pakistan. For instance, female literacy rates in rural and urban NWFP are 11% and 35% respectively, compared to 17% and 52% respectively for Pakistan; Rural-urban gaps exist for all indicators in NWFP, but tend to be smaller than those for the country as a whole and mostly caused by its urban areas lagging behind the rest of the country, rather than by the rural areas doing better than the rest of the country.

Table 12: Literacy and Education (1998-99) Male Female Male Net Primary Female Net Primary Literacy % Literacy % Enrolment Enrolment

Rural ______NWFp 51.5 11.4 57.9 32.8 Pakistan 51.0 16.8 53.6 36.4 Urban NWFP 65.5 35.2 73.4 59.3 Pakistan 73.2 52.3 68.5 64.6 Overall NWFP 53.8 15.1 60.0 36.4 Pakistan 58.0 27.2 57.2 43.6 a) Literacy rates have been calculated here for population 15 years and above.- conducted in 2001. b) In Annex G, the contraceptive prevalence rate is shown as 21% which is based on a family planning survey

Comparing the education indicators of NWFP with the country makes it apparent that while adult literacy rates in the province (33 %) are found to lag behind those for Pakistan ( 43%), the gap for enrollment rates is however, marginal ( 49% for NWFP and 51 % for Pakistan). But while male net primary enrollment rates for NWFP are higher than the corresponding country averages for both rural and urban areas, female enrollments still lag behind those for Pakistan.

For human development indicators across the spectrum, a consistent pattern is visible both for rural and urban areas alike in NWFP that compare poorly with the corresponding areas of the rest of the country. Among the factors that constrain human development in rural NWFP, access to facilities is important, and also measurable from existing data sources. 23

2.9 Health

Regarding access to health facilities, ( see table 13 a &14) rural NWFP enjoys better availability than rural Pakistan on an average 7. Around 76% of the rural population of NWFP live in villages with some kind health facility or health worker, which is the highest among all provinces. Access to family planning services is however slightly low for NWFP than for rural Pakistan as a whole.

Thus on the whole, rural NWFP compares well with the rural parts of the country as a whole in terms of incidence or availability of health and education facilities. This is expected to lead to better education and health indicators in the long run. However, presently, the relatively high availability of facilities do not seem to translate into better outcomes in health and education as compared to the country as a whole. Moreover, female primary enrollment in NWFP lags behind rural Pakistan, in spite of higher incidence of girls' schools in the province.

Table 13: Access to Health facilities in Rural Area by province (1998-99) % of Rural Population with health facilities in % off Rural with PSU/village Family Planning Hospital / Hospital Any health facility - 3 km of .Dispensary/ /Dispensary/ facility or PSU Clinics8 Clinics worker worker9 Punjab 38.2 54.4 70.8 79.6 Sindh 36.9 56.5 62.5 65.3 NWFP 54.3 63.5 75.9 72.1 Balochistan 54.9 58.1 60.4 60.9 AJK 55.9 68.1 71.3 81.7 Rural 42 56.4 69.1 73.5 Pakistan

During the 1990s for Pakistan, the Infant Mortality Rate declined from over 120 deaths per thousand live births in early 1990s to about 85 per thousand in 199910. The Total Fertility Rate (the average number of children born to a woman over her lifetime) declined from 6.4 at the beginning of the decade to around 5 towards the end of the decade. Despite the decline both the rates continue to be high by regional standards. An analysis of the burden of disease (measure of losses of healthy life in the form of disability and premature death) in 1996 showed Pakistan at an early stage in its epidemiological transition with preventable or readily treatable diseases affecting

7 Various definitions of health facilities include combinations of hospital, dispensary, clinic, health worker, private practitioners, and nurses. All public and private hospital, dispensaries and clinics (including BHUs, RHCs, Mother & Child Clinics, and Family Welfare Clinics). Includes private practitioners and nurses 10 PIHS data. Pakistan's own estimates using administrative data suggest a higher GER of 89%. 24 primarily young children and women of reproductive age, accounting for a dominant share of mortality and morbidity. The pattern is similar for the NWFP.

Progress is visible in polio eradication, strengthening the tuberculosis control program, and contraceptive prevalence. However, the immunization program does not show expected results. The status of HIV/AIDS also needs to be monitored where it is known that prevalence of HIV infection can increase rapidly.

Table 14: Health Professionals NWFP (2000) Institutions Pakistan N.W.F.P % NWFP Doctors 91823 3774 4.11 Nurses 37623 1486 3.95 Lady Health Visitors 5619 828 14.74 Population per Hospital/ Disp: Bed 1495 1593 - Population per Doctor 1529 4946 -

Number of community-based health workers has risen and the availability of female doctors and paramedics has improved significantly in all provinces. Results would have been visible if the quality and effectiveness of government health services had been higher. The social sectors are characterized by relatively low government expenditure, low efficiency, and governance problems. In addition, much of the public spending is directed towards tertiary care facilities at the expense of primary and secondary tiers especially in rural areas.

Table 15: NWFP Govemment Health Facilities, 2002 Institutions No Beds Hospitals Tertiary Hospital 7 3580 District Hospitals 15 3237 Tehsil Hospitals 10 377 Other Hospitals(matemal/TB/mental) 124 6879 Sub Total 156 14073 First Level Care Facilities Rural Health Centers 80 886 Basic Health Units(BHU) 848 0 Dispensaries 415 112 Mother Child Health Center(MCH) 94 16 Sub Total 1437 1014 Grand Total 1597 15087 Source: BoS, GoNWFP 25

2.10 Roads and Communication

The NWFP has total road network of 10134 km, which is 4.1 % of the total for the country. Besides, there are 2005 post offices ( 16.6 % of the total) 44 Telegraph offices, offices and 10 % of total telephones in the country. About 22% of the population have access to television (see table 16).

Table 16: Road and Communication _

Items Year Units Pakistan NWFP % of NWFP Roads Total 30-6- Kms 247484 10134 4.1 1999

High Type -do- -do- 137352 7431 5.4 Low Type -do- -do- 110132 2703 2.5

Road Per -do- -do- 0.31 0.13 - ______SqKm_ _ _ _ Communications Post Offices 1998-99 Number 12854 2005 15.6 Telegraph 1999 3344 12 Offices 2000 -do- 393* 44 11.2 Telephones 1999- Telephones 2000 -do- 3035200* 316820 10.4

Population -do- -do- 45 59 - Telephone

Televisions 1998 -do- setsIIII 273620 60665 22.2 Source:-Pakistan Railway Divisional Office, Rawalpindi., Chief Engineer, North and South Wings, C&W Deptt: NWFP, Peshawar, Northern Telecommunication Region I & II, NWFP, Peshawar & D.I.Khan, Post Master General, North-west Circle, Peshawar.

2.11 Local Conflict Management Mechanism

Jirga is the name of a collection or body of individuals where an equal number of persons are nominated by the two disputing parties for arbitration and settlement of quarrels and disputes. The body provides a decision and oversees the implementation of its decision. The nomination of the Jirga is either initiated by the elders of the area or by one of the parties involved for the settlement of the dispute. On agreement of both the parties that the Jirga should decide their case, the elders of the area or the concerned malik collects the names of the members of the Jirga in equal numbers from the two parties. Proceedings are started immediately thereafter to settle the dispute. 26

A Jirga functions as a judicial and an executive institution in rural and tribal areas. Its powers include the imposition of a fine (where no killing is involved). Meetings are held in a neutral place and both the feuding parties present their case and subsequently are asked to leave. The Jirga then reviews and discusses the arguments presented and arrives at a decision by consensus. The decision is binding on both parties and failing which fines are recovered. Minor disputes are settled without imposing any fine.

Another variant of the Jirga is one followed in the Tribal Areas where the Jirga is nominated by the Political Agent (PA), from among the tribes. The Jirgadecides the case and sends its recommendation to the PA for action.

Jirgasare not meant to be permanent bodies and their primary focus is for the, settlement of disputes. Furthermore, they do not function as a political forum nor do they interface with government line departments. Their interface is either with the disputing individuals and parties or with the Political Agents.

There is a variation in the role of the Jirga system in the Tribal Area where the Jirga is the sole decision making body and has full rights to implement its decision. However, in settled areas, the Jirga's decision may not be implemented fully, depending upon the individual parties. 27

Chapter three Gender Assessment 3.1 General

The constitution of the Islamic Republic of Pakistan gives equal rights to both men and women. However, in practice men are more equal than women. The reality gives a picture where women rarely appear in positions of power. According to the Human Development Report 1999 of UNDP, the Gender Empowerment Measure (GEM) ranks Pakistan at 100 among 185 countries registered with UN. The GEM quantitatively measures the empowerment of women on a country basis. This indicator includes the measure of inequality in control over earned economic resources, participation in political decision-making and economic decision-making.

Supporting the GEM is the low Gender Related Development Index (GRDI) rank of Pakistan among the UN registered countries. The GRDI reflecting gender inequality in terms of life expectancy, educational status and income of a country.

The government of Pakistan has been making efforts to support gender. In this context the Ministry of women's Development announced the Gender Policy in 2002 aimed at providing support to the development of and empowerment of women including improvement of socio economic indicators, development of skills and employment and support for micro credit facilities. The Government of Pakistan has also established the Commission on the Status of Women with representation from Government, legal, civil society and other relevant sectors, as members, and tasked with the responsibility to provide advise on policy matters relating to gender.

3.2 Gender in NWFP

The NWFP society is predominantly patriarchal. Men and women are conceptually divided into two separate worlds where the home is defined as a woman's ideological and physical space, while a man's sphere of interest is the world outside the home. This demarcation between public and private, inside and outside worlds is maintained and strengthened through the concept of "honor" and the institution of "purdah". Moreover male honor is closely linked with women's sexual behavior as a result, female sexuality is an indicator as well as a potential threat to the honor of the family. Therefore, women's mobility is strictly restricted and controlled through the system of purdah, sex segregation and resultant isolation and control over them.

The Government of NWFP has passed the Shariah bill which is under implementation in the province. Although it mentions women's rights but the form it will take is not yet clear. 28

3.3 Education and Health:

Gender gaps are significant for all relevant indicators in NWFP, as they are for the country as a whole. As discussed in the preceding chapter, following the pattern seen in the country, gender gaps tend to be wider in rural areas than in urban areas of NWFP. Bearing in mind the socio-political environment in NWFP, the need to provide health awareness along with family planning services and education of girl children has always been critical. There are also considerable inequalities in literacy rates among the four provinces, especially disparities between men and women that suggests that under present conditions in NWFP, gender gaps in educational attainment are likely to persist, and even widen in the future,"1 unless corrective action is taken. Large gender gaps necessarily translate into particularly low literacy and enrollment rates among poor women, with adverse implications for future human development - since women's education is known to be especially critical for child health and education. Similarly, the low health status of women is the result of women's lower social, economic, and cultural standing. Social and familial control over women's sexuality, their economic dependence on men, and restrictions on their mobility determine differential access of males and females to health services.

Intra household bias in food distribution leads to nutritional deficiencies among female children. Early marriages of girls, excessive childbearing, lack of control over their own bodies, and a high level of illiteracy adversely affect women's health. Institutionalized gender bias within the health service delivery system in terms of lack of female service providers, and neglect of women's basic and reproductive health needs, intensify women's disadvantaged health status

3.4 Gender in Politics:

The nature of politics in the country also affects the role of gender where there is a realization among women and women's rights groups that to bring any substantive change in their lives they need to be physically present in political decision-making bodies and directly participate in political processes. Recently, with the launch of Local Government plan of the government of Pakistan, the issue of good governance for social delivery and economic development has also emerged as a key area of challenge for the province. A closer look at women's share in the development of the province as well as implementation of the local government ordinance carries several milestones.

For the first time in Pakistan, civil society organizations initiated a collective campaign for womens' representation and training in local government. The initiative was started and supported by various advocacy NGOs and the initiative was named " Citizens Campaign for Women's Representation in Local Government". This campaign greatly impacted upon the motivation of women to play their role in local government, bringing them out to vote and contest elections.

percentage points respectively, The gender gap in net primary enrollment rates in rural and urban NWFP are equal to 25 and 14 compared to corresponding gaps of 18 and 4 percentage points for the country 29

During the elections of 2002 for the first time 33 percent seats were reserved for women in the local elections leading to the election of 4452 women in the local bodies in the NWFP. There are however, no women Nazims or Naib Nazims. About 17 percent of seats were reserved for women in the Assemblies leading to the election of 22 women in the NWFP Provincial Assemble, while 8 women represent the NWFP in the National Assembly and 4 in the Senate. This included women representatives from all the major political parties ( liberal and conservatives). However, for most of these women, legislation and representation are a totally new phase in their lives, unknown ground whereon they have not trodden. Moreover, the familial an political party allegiance somewhat marred their independent entry in the policy making and legislation arena. 3.5 Violence against Women

Women of all ages and in all parts of the country, are reportedly killed in the name of honor or as a result of domestic violence. The lives of millions of women in Pakistan are circumscribed by traditions which enforce extreme seclusion and submission to men, many of whom impose their virtually control over all aspects of their lives. In the recent past exposure to media, the work of women's rights groups and a greater degree of mobility have seen the beginnings of women's rights awareness among women at least in the urban and peri- urban areas. The curve of honor killings has however, risen parallel to the rise in awareness of rights. State indifference, discriminatory laws and the gender bias of much of the country's police force and judiciary have ensured virtual impunity for perpetrators of honor killings.

3.6 Legal

The Hudood laws were introduced in the country under the Islamization agenda in the late 70s and 80s. The implementation of the laws have been discrimatory towards women. Women are frequently charged under the Hudood laws for sexual misconduct, such as adultery. Any case of rape that cannot be proven tends to be judged as a case of adultery and men accused of rape sometimes are acquitted and released while their victims are held for adultery or fornication. In 1998 about one-third of the women in jails in Lahore, Peshawar, and Mardan were awaiting trial for adultery. Most women tried under the ordinance are acquitted, but the stigma of an adultery charge alone is severe. Hudood laws meant to deter false accusations is enforced weakly, and one human rights monitor claimed that 80 percent of adultery-related Hudood cases are filed without supporting evidence. The Commission of Inquiry for Women recommended that the Hudood laws be repealed as they are based on an erroneous interpretation of Shari'a. This is further marred by the limited representation of women in the judiciary e.g. as per 1995 statistics, the NWFP Bar Council had total 6,750 members of which only 112 (i.e. a mere 2%) were women. Similarly, the gender composition in the subordinate judiciary shows that only 12 female judges in NWFP in 1998. 30

3.7 FATA:

FATA comprises 7 Tribal Area namely Mohmand, Khyber, Bajaur, Orakzai, Malakand North and South Waziristan. These are of significant strategic importance due to their geographical location straddling the area between Pakistan and Afghanistan, their isolation, tribal culture, minimal state presence and political importance. FATA is considered among the most deprived area of Pakistan in terms of access to and availability of basic amenities such as education, health and infrastructure development. The extent of under-development in the area can be gauged by an example of one of the Agencies. The Mohmand Agency - one of the 7 Agencies in the region - is spread over 2,296 sqkm with a population of approximately 401,057 people. The literacy ratio for men is 19.11% whereas for women it is merely 1.92%. There are only 3 small hospitals with 108 beds and given the geographical location of the area metal roads still do not reach the entire Agency.

Overall the population of FATA is estimated at 3 million people, which is approximately 2.4% of the population of Pakistan. The literacy rate of FATA is a mere 6.3%, of which female literacy rate is again approximately only 1%, whereas only 43% of the population of FATA has access to potable water. The overall lack of development in FATA has placed women and girls in the most marginalized position. Under these circumstances gender does not receive any focus in development and most gender indicators are either non existent/un-reported or where reported, they are dismal.

3.8 Gender in CIP

The 1996 Staff Appraisal Report (SAR) included a section on "Women's Involvement" that recognizes the likely difficulties in fully involving women in CIP. The SAR recommended special outreach to women to reflect their view in project design, and to make certain that CIP benefits reach women and children. This component was to be undertaken in close coordination with UNICEF, the Social Welfare Department and the Women's Division of the government of Pakistan. A range of activities including micro- credit schemes and non-formal education were recommended. At project inception, the vision included recruitment of Female Social organizers (FSOs) for each of the Project Implementation Units (Pies), and three Women Field Research officers (WFROs), as middle management staff.

It should be recognized at the outset, that GoNWFP was initially resistant to, and suspicious of the whole idea of community development, and especially, women's involvement. The approach required much discussion, time and efforts. Eventually, the government became supportive, but it was achieved only by a sensitive approach, which would have failed if an "in your face" mode was adopted.

The gender related matters were well -promoted and implemented. They were also monitored and recorded, but mainly in field implementation and process monitoring report, and less so in the formal M&E report. In CIP, the system had tried to incorporate the concept of tracking activities and benefits on a gender-differentiated basis. Gender- 31

differentiated information on achieving goals was not appropriately incorporated due to several reason among others a lack of M&E /MIS at early stage when project strategies were finalizing, lack of staff for M&E etc. This conceptual problem was multiplied by implementation difficulties.

However, prominent changes had been observed toward meeting those gender priorities. Initially the CBO both men and women were combined but the Process Monitoring recommended a separate Community Based Women Organization to voice women's choices in the project. These recommendations were in made to account for the sensitive social & cultural context of NWFP with segregation of women and men being a norm. All activities related to women regarding health and hygiene, micro credit, and special programs for women and children were carried through the female Community Based Women Officers (CBWOs).

In the NWFP sub-cultures, women can only be included in project discussions through the agreement of the male head of household. It was thus essential that the understanding and support of the male was solicited, and this was actively undertaken in all communities. In almost all the communities, it was agreed that a separate women's Community Based Organization (CBO) would be formed. Where formed these were sometimes more active than that of the men's CBO. 2 . Most project components, benefited women and children equally, if not more, than men (water supply, sanitation, access ways, TBA, health education, micro-credit training and referrals etc).

In general, the gender-related matters were well-promoted and implemented. They were also monitored and recorded, but mainly in field implementation and process monitoring reports, and less so in the formal M&E reports, which mainly dealt with highlighting implementation problems to upper-level management. Most of the day-today problems, including gender matters, were resolved through discussions between the process monitoring staff and the field operations staff.

12 See Process Monitoring reports 32

Chapter Four Institutional Arrangement

4.1 Government Devolution Plan Until August 14, 2001, Pakistan was divided into four de-concentrated tiers: federal/central, provinces, divisions, and districts. The districts and divisions were distinct legal entities (created by the provinces per the 1973 Constitution); but unlike the Provinces they lacked constitutional status. Under this system of de-concentration the center defacto governed all three of the "subnational" administrative units.

The process of devolution was initiated in March 2000 with a National Reconstruction Bureau (NRB) discussion paper that called for a series of bold structural changes to be implemented by August 2001; and the deadline was met. The changes included (i) the abolition of three levels of provincial administrative units, divisions, districts and tehsils; (ii) the creation of three country-wide local governments: districts (called city districts in the four provincial capitals, tehsils (called towns in the four city districts) and union councils; and (iii) the replacement of the existing municipal bodies by these new local governments. Thus, while one uses similar names for mainly unchanged geographical entities; the reality underlying these names has changed. The system applies to all provinces, but not to the Cantonment (military) areas of towns and cities which remain under the control of non-elected boards headed by military commanders.

Financial and Administrative Rules of Business (RoB) were framed and activated as part of the devolution process for the decentralized line departments at the district level as part of the newly established local government structures. In NWFP some thirty government line departments were decentralized to the district level under LGO 2001 into eleven grouped offices.

4.2 Administrative Set up

The 2001 local government elections were held throughout the country, except FATA. Local governments in the four provinces of Pakistan were formed at three tiers, namely, Union Council, Sub-district (tehsil), and District. At the same time, as part of the devolution process, government line departments were decentralized to the district level and made responsible to a DCO(District Coordination Officer) who in turn reports to the elected head of the District Council (Nazim). Thus a major first step was taken leading to line departments no longer having to report to their Provincial heads except for personnel matters relating to promotions and transfers. Another important milestone is where the highest ranking civil servant at the district level now reports to the elected District Nazim.

In the Context of the Devolution Plan of the Government, the NWFP province is divided into 24 Districts, 61 Tehsils/Towns (Tehsil Municipal Administrations) and 957 Union Administrations (Union Councils). Following the notification of Local Government Ordinance (LGO) 2001, local governments have come into existence at all the three 33

levels and are now functional. The District is governed by the District Nazim supported by a District Coordination Officer, while the Tehsil or Town governments are headed by the Town or Tehsil Nazims and Coordinated by Tehsil Municipal Officers. The Union Councils have Nazims and Naib Nazims, 21 Councilors and a Union Council (UC) Secretary.

4.3 Structure of District Administration

The District Administration comprise the district offices, including sub-offices of the Departments of the Government, now decentralized by the provincial Government and other offices set up by the Government and grouped under the Executive District Officers and coordinated by the District Coordination Officer.

4.4 Tehsil/ Town Municipal Administration (TMA) and its Role

Prior to devolution, at the provincial level, the PHED and LG&RDD were the main implementers of water supply schemes and had most of the sector's budget to implement the WES programs. LG&RDD was generally responsible for implementing WES schemes in relatively small rural communities, while the PHED was responsible for relatively large and complex water supply and drainage schemes in larger settlements.

The devolution was formally introduced on August 14, 2001, and has revamped the public sector water supply and sanitation services delivery system. Most of the administrative and financial management functions of the offices of the Department of Local Government and Rural Development and Department of Housing, Urban Development and Public Health Engineering, which were providing services at the regional, zonal, circle, divisional, district and Tehsil levels, have been entrusted to Tehsil or Town Municipal Administration, as the case may be, along with the employees working in such offices.

Under the Devolution Plan, the traditional line departments within the provincial government's set-up to plan, execute and maintain such facilities has been abolished, and a new structure based on Town/ Tehsil Municipal Administration (TMA) introduced to provide WES and infrastructure related services. In essence, the devolution plan has shifted the entire planning, execution, implementation and monitoring to the Tehsil and below in the new local government structure.

The current WES and infrastructure related roles and activities of various tiers of local government institutions are the following: water supply and sanitation is considered to be a municipal function and has been devolved to Tehsil level. The Executive District Officer (Works and Services) does not have any District Officer (WES) under him. The District Officer (Buildings and Roads), apart from other functions, is also responsible for Water Supply and Sanitary Works but limited to Government Buildings and Estates. The Tehsil Nazim is the head of the Tehsil Council and. Tehsil Municipal Officer (TMO) heads the Municipal Administration and acts as coordinating and administrative officer in charge of the four Tehsil Officers (TOs): 34

* TO (Infrastructure and Services) * TO (Planning and Coordination) * TO (Finance) * TO (Regulations)

The allocated business to Tehsil Officer (Infrastructure and Services) focuses on the provision, management, operation, maintenance and improvement of the municipal infrastructure and services, including:

* Water supply and control and development of water resources, other than systems maintained by the Union and Village Councils. * Sewage and sewage treatment and disposal * Storm water drainage * Sanitation and solid waste collection and sanitary disposal of solid, liquid, industrial and hospital wastes.

TMAs are legally bound to provide technical assistance to Union Councils ( UCs) on request. Small schemes initiated/identified by the Union Council, are to be financed by the UC. However, due to of lack of technical capacity, the Union Administration may request the Tehsil Administration to depute a sub-engineer for costing/supervision of the scheme. If a scheme is beyond the financial capacity of the Union Council, it can send it to the Tehsil requesting for approval and funding. If approved, the finances are borne by the Tehsil. At the same time technical aspects (such as site identification, costing, designing, supervision etc.) are the responsibility of the engineering staff of the TMA, Funds are not transferred to Union Administration but are spent by TMA directly.

The area of Jurisdiction of engineering staff of TMA is the entire Tehsil, and they may have to visit a large number of Union Councils. At present, their visits are not funded and this results in a drain on their meager resources, along with resultant inefficient and un- productive way of doing business. The mobility of staff thus remains limited.

Institutional Strengthening in the context of Infrastructure & WES Management System includes capacity building and strengthening of local governments institutions, particularly of TMAs.

The degree of autonomy and resources given to local governments are the most important factors responsible for shaping the attitudes and roles of their organs. Greater autonomy of a particular tier of local government will result in their being more resourceful and hence more service-and development-oriented. While the various tiers of local government are autonomous, they are not resourceful. It is important to focus on local resource mobilization of this tier.

It is important to enable TMAs to develop communication mechanisms amongst various local organizations for community based integrated programs and develop long term partnership and a culture of collective action among the various local organizations to enhance their capacity for efficient delivery of local services. The Institutional Support 35

Program of CIP (ISP) has already modeled some training and logistic support in 6 pilot sites (TMAs) and has close working relations with them. This experience will facilitate potential CIP II staff to replicate the process and take it to scale.

TMAs also need to establish networking and a forum for exchange of experiences, ideas, knowledge and information. The forum will allow the communities to articulate their perspectives and concerns. The local governments need to be equipped with technological infrastructure. Presently, most offices have limited facilities even for photocopying. There is a need to create intra and inter- tier forums within local government service where active debate can take takes place. In this context, ISP is working on linkage development and coordination improvement (inter & intra) at TMA level.

4.5 Union Councils

The Union Council's electorate is made up of all registered voters who are Pakistani citizens and over the age of 18. For the latest elections voting age was lowered from 21 to 18. Although registration of voters is often at the place of one's birth, voters may change this to allow registration at their place of residence. However the practice of voting in one's village to support a member of one's biradri (brotherbood or clan) is the common norm. Each Union council is composed of 21 directly elected members elected in a multimember constituency on a non-party basis:

* The Nazim and Naib Nazim (mayor and deputy mayor) are elected on a joint ticket. * The Nazim of the Union Council them becomes ex-officio member of the District council * Naib Nazim of the Union council becomes ex-officio member of the Tehsil council * The remaining 19 seats on the Union Council are allocated as follows: o 12 muslim seats, 4 of which are reserved for women o 6 seats for peasants and workers of which 2 are reserved for women o 1 seat for minority communities

The Union councilors are the electoral college for the District/Tehsil councilors and the District (Tehsil) Nazim and Naib Nazim, none of whom can be Union Councilors. 22 District (Tehsil/Town) councils are composed of the Union Council Nazims (Naib Nazims) plus seats reserved within District and Tehsils Councils for women such that they represent 33% of the total number of Union Councils in the District, and 33% of the total number of Unions in the Tehsil. The Union Nazim heads the Union Administration. The Naib Union Nazim deputizes the Union Nazim during his temporary absence. The Union Secretaries coordinate and facilitate in community development functioning of the Union Committees and in delivery of municipal services under the supervision of Union Nazim. 36

Where there is more than one Secretary of the Union Administration, the distribution of work among the Union Secretaries is as follows:

* Secretary (Union Committees) is responsible for all works relating to the council meetings and the work of all committees and any other function entrusted to him by the Union Nazim. * Secretary (Community Development) is responsible for the community development work of the Union Administration and is responsible for any other functions entrusted to him by the Union Nazim. * Secretary (Municipal Services) functions as per the Local Government Ordinance 2001, include provision and maintenance of public sources of drinking water, (such as wells, water pumps, tanks, ponds), and other works for the supply of water.

4.6 Citizen Community Boards (CCBs):

In addition to the formal political elected structures, Citizen Community Boards (CCBs) are to be established under the Ordinance. Selection and limited franchise election is envisaged for these Boards. These were intended to be closely focused being bodies through which communities mobilized funds to carry out specific goals. Citizen members of civil society (e.g.NGOs, community activists, etc.) are foreseen as members of the CCB.

The interplay between the District Councils and the Citizen Community Boards (CCBs) has the potential for significantly influencing the mix of local services. The concept of the CCB is provided for in the Local Government Ordinance and is seen as a linkage between communities and the local government. CCBs are a vehicle to generate development projects for local community needs and are an institutional remedy for the centralized planning process of the past. It was originally envisaged that 50% of total development expenditures would be reserved for CCBs, financing up to 80% of CCB development expenditures, but this proportion may be reduced. The relationship between the CCBs and the Zila Council may lead to tension as firstly, CCBs will be quasi-public organizations and not fully part of the public sector nor will they be exclusively private operations since they will spend public monies. The Council might feel that it is required to allocate 50% of its scarce development budget to them - and they are not constrained by public sector rules to the same degree. Secondly, it is not clear why CCBs would feel constrained to only support projects where there is adequate recurrent funding for O&M. If they can raise the 20% that they must contribute towards projects, they might be driven towards satisfying short term interests in the very manner that has attracted so much criticism to Provincial Councils. Finally, the Zila Council might feel resentment towards CCBs that tie up development funds. This could occur in some CCBs in poorer communities as the provision for the carry-over of unspent monies means that if a CCB cannot contribute, the funds will continue to be accumulated and would not be available for use by local governments. 37

In NWFP there is slow progress in CCB formation. In 2001-02 the Institutional Strengthening Program under CIP 1 undertook a campaign in collaboration with LG & RDD to inform the public and provide training to District Officers, Social Welfare and Community Development, about CCB formation and registration. Presently, there are 345 CCBs in NWFP mainly working in Swabi, Mansehra, Bunair, Charsadda, Peshawar, Kohat, D.I.Khan, Abbottabad, and Lachi. Most of the CCBs are headed by educated persons and the CCBs are being made broad-based by ensuring active participation of the people of their areas. However, some of the CCBs reportedly were formed only to obtain their share of development-fund. These CCBs have little or no capacity to undertake major development initiatives. Under ISP a Needs Assessment was undertaken and a capacity building plan prepared and tested that may be replicated under CIP II. In Bunair some of the CCBs are involved in project planning and implementation activities. It is expected that Community Development staff of CIP, local governments, and other support organizations would be in a good position to build the capacity of CCBs to implement community schemes successfully.

4.7 Civil Society and Non Government Organizations ( NGOs)

Unlike other countries in South Asia ( India, Nepal, Bangladesh, and Sri Lanka), Pakistan has a weak base for undertaking development related work through civil society organizations. Historically, civil society activities in Pakistan have been confined to institutionalized philanthropy and social welfare activities. Although activities undertaken by development NGOs are a more recent phenomenon starting in the early 1980s, but there is a whole history dating back over the last 60 to 70 years of development in the rural areas through community participation. However, the prime motivation was through government sponsored programs. The last 50 years of such efforts included major programs such as the Village AID Program, Rural Works Program and Integrated Rural Development Programs (IRDP) . In addition there were the politically sponsored programs that included Peoples Works Program, Taamir Watan, and now the Khushal Pakistan Program.

In 1982, two major NGO programs focusing on development activities were initiated. Aga Khan Rural Support Program (AKRSP) in the Northern Areas of Pakistan; and the Orangi Pilot Project (OPP) in the urban slums of Karachi. OPP led to many spin-offs in the NGO sector throughout the country including NWFP, while the AKRSP led to a different development model that is now more commonly known as the Rural Support Programs (RSP).

The National Rural Support Program (NRSP) and the Sarhad Rural Support Program (SRSP), implemented in NWFP, are modeled after AKRSP with some variation from the AKRSP approach. SRSP focuses on developing partnerships with the government and international donors with a package of infrastructure, Natural Resource Management (NRM), HRD and credit related interventions.

The OPP model has been followed even in the rural context by NGOs with limited resources and incorporating elements of proactive advocacy. The examples include 38

PIEDAR in Southern Punjab and SUNGI Development Foundation in NWFP. It may be noted that development NGOs, such as SUNGI Development Foundation have not been able to significantly scale-up like the RSPs. On the other hand, RSPs do not provide advocacy platforms on such subjects as governance, human rights, pro poor activism and gender discrimination related issues that conventionally happen to be a hallmark of the NGO sector.

The NGO sector, as against RSPs, in NWFP is not as well developed as it is in the other two provinces of Punjab and Sindh. One of the major factor is that due to the conservative nature of the society and religious influence in the NWFP, NGO are perceived are western oriented organizations or bodies working on hidden agenda. This issue coupled with the working of some NGOs with non observance of "Purdah by female staff in "very conservative areas" has led to tension. The "Gender policy and strategy of some NGOs along with traveling and social intermixing of males and females in culturally / socially sensitive areas has led to opposition and protest against NGOs. Development project should thus carefully design programs to induce gradual "gender involvement" rather than a radical or revolutionary approach. The NGO sector is thus not sufficiently developed to scale-up the creation and development of CBOs, and undertake development interventions on a large scale. 39

Chapter Five Review of Community Infrastructure Project (CIP-I) 5.1 Introduction

The conclusion of the study of Shelter Project in 1990-91 persuaded the World Bank, SDC and the GOP to focus on the basic infrastructure services / facilities. This led to the initiation of the Community Infrastructure Project (CIP) in North West Frontier Province (NWFP).

The CIP was appraised by the World Bank and SDC in early 1994, negotiated in 1985 and the IDA credit was made effective in July 1996. The Local Government Election and Rural Development Department (LGE&RDD) was responsible for implementing the project through the Project Management Unit (PMU) and its implementing units was located in strategic district centers of the province. The main thrust for the PMU and its implementation units were to develop partnership arrangements with the community groups willing to address their basic infrastructure and community development needs and through a set of criteria and rules of engagement from selection, preparation, implementation and operation and maintenance.

5.1.1 Aims and Objectives

The Development Objective (DO) of the project was to increase the productivity and well being of low-income groups in NWFP through improving their living conditions by provision of basic infrastructure. This was to be achieved by: (a) infrastructure upgrading and community development in existing urban and rural low-income settlements; (b) promoting the use of demand- driven, participatory design procedures and affordable standards for infrastructure; (c) strengthening the ability of provincial and local governments to collaborate with communities to implement low-income infrastructure programs; & (d) promoting sustainable arrangements for operating and maintenance (O & M) of basic services.

5.1.2 CIP Components

(a) Local Infrastructure Upgrading: upgrading of basic infrastructure were carried out in approximately 90 (initially it was planed for 55 communities) urban and rural communities. Infrastructure priorities will be established in consultation with the communities through their CBOs who would participate in all stages of the project cycle. Together with the physical investments, training of communities would also be carried out. Infrastructure to be provided would include water supply, storm-water drainage, flood protection, streets and footpaths, sanitation and solid waste management. Improvement of land registration facilities will be provided when requested by the community. The range of project-financed options for communities to choose from would depend on their needs as determined by community and engineering surveys, and standards would be subject to minimum and maximum limits with cost ceilings. 40

Implementation of the component would be phased over five years based on a conservative assessment of the annual affordability of the respective communities.

(b) Community Development (CD). included: (i) community mobilization/capacity building including information campaigns, CBO formation, orientation and training activities for community action planning, and for government line departments, NGOs and project staff in participatory planning and implementation; (ii) health and hygiene awareness campaigns including orientation and training of health and volunteer workers using participatory approaches, and support to hygiene and sanitation education in schools; and (iii) support to women and children to include action research and demonstration activities to enhance participation of women and young children in project activities in three selected communities before wide-scale implementation. UNICEF was not able to provide the full amount agreed at negotiations because of the change in policy during the implementation of the project. Instead, it provided training and some logistical support including vehicles for the social organizers.

(c) Design and implementation assistance. For project implementation, the government would engage consultants, contract staff and NGOs in addition to appointing incremental staff. This component comprises: (i)the establishment or strengthening of PMU and Project Implementation Units (PIUs); (ii) consultants' services for: (a) assistance with community mobilization, infrastructure planning and design; (b) assistance in establishing systems and procedures for, inter alia, project management, procurement, construction supervision, contract management, project monitoring and reporting, documentation, project accounting, and management of project finances; and (c) training of Government staff, NGOs, and communities as appropriate; and (iii) contracting, through the consultants team, of locally based NGOs/social organizers as extension teams to assist the CBOs at the community level. Social organizers (SO) teams comprising one male and one female SO would assist the government's 14 social organizer coordinators. Expenses of community motivators would also be paid. The GoNWFP terminated the foreign consultant's team after two and a half years of implementation. Funding for the sub-component was increased to engage local consultants and local NGOs for specific activities and also for devolving project staff to lower level units making them more accessible to the community and local councils participating in the project.

Institutional Development and Project Preparation (a) The LEGRRD study was delayed till after the midterm review and then transformed into an Institutional Strengthening Program (ISP), to support the devolution plan of the Government. SDC, increased by 1 million dollars to fund the ISP.

(b) Technical Assistance to the National Housing Authority: The NHA assistance did not materialize and after mid-term review, the NHA study was dropped from the project, and the implementing agency was changed to the Federal Ministry of Environment, Local Government, and Rural Development (MELG&RD ). The government and the Bank, both agreed to broaden the component and included a nationwide information and training in support of newly elected local government officials. 41

(c) Project Preparation. This included studies and technical assistance for provincial and federal government sector institutions, and makes allowance to refinance the project preparation facility. Following were its sub components: (a)LGERDD Study : to review the department's role, functions, responsibilities, and legal mandate; structure and staffing; systems and procedures; and strengthening needs. It would examine related functions and responsibilities of other departments to identify possible areas of overlap, identify options for reassignment of functions and make recommendations for government's consideration:(b)NHA Technical Assistance comprised of technical assistance for: (i) data analysis and sector monitoring; (ii) shelter program monitoring; (iii) program evaluation and dissemination; (iv) building technology evaluation and dissemination; (v) information exchange; (vi) organizational support; and (through the Ministry of Housing and Works or NHA, as appropriate) (vii) policy development..

5.2 Review and Evaluation CIP

CIP has been reviewed and evaluated periodically through the PMU, Supervision Missions, Third Party and independent external studies. The results of the following major evaluation and reviews were concluded into the replication of CIP into CIP2.

5.2.1 Mid Term Review

Under the initiatives of MTR of CIP, five special studies have been completed o examine project impact, project processes, institutional arrangement, and micro-finance in early 1999. At the end of those studies an impact study was conducted to capture the social impact. The study assessed short term impact by the observation of physical infrastructure and taking note of the communities perception with respect to CIP interventions. The short term benefits perceived by all communities were seen to be high.

The main focus of the study was the assessment of sustainability aspect ( long term impacts) and the process to achieve it. It has been observed that CIP was demand based, and services provided to those who expressed demand and were willing to pay up front cash and contribute towards O&M . The study reported that with this willingness is more likelihood that long term impact would be sustained. The study assessed the process of demand orientation by way of which the project promoted community led activities i.e. project initiation, informed choices, community contribution and training.

After the MTR, certain changes were proposed and agreed by all the stake holder. While objective of the project remained unchanged, some shift in emphasis towards institutional strengthening took place. Once the GOP passed the Local Government Ordinance in 2001, it led to more local government capacity building and rapid institutional change for financial sustainability.

To support and achieve project objectives, the GoNWFP formulated a policy framework where the main focus were: the provision of integrated physical, social and economic 42 infrastructure; ensuring ownership through a financial commitment by the communities; community contracting of localized infrastructure would be developed according to planning, design and implementation standard, and community management of their infrastructure and community development programs including their responsibility for the Operation and Maintenance (O&M).

5.2.2 Supervision Missions

Supervision missions have taken place at least twice a year with numerous shorter missions and assistance from field staff to rectify special problems and the Bank maintained close liaison with the project authorities through out the project period. During the Mid Term Review the Supervision team made it clear that the project lacked qualified leadership and support from the provincial government; identified the key constraints for improving implementation with a timetable for rectification; and recommended a cancellation of $5 million of the IDA Credit.

Since the Mid-Term Review, the PMU has had good quality leadership that has implemented an effective reorganization with decentralization and reorientation to support the development of local governments. The GoNWFP also delegated considerable responsibility to the PMU and responded rapidly to requests for approvals of budgets and other administrative matters. It has embraced the new devolution strategy of the national government and has strongly supported the reorientation of the CIP to strengthen the capacity of local governments assist in community development. The basic management and monitoring tools are now in place and the quality of staff has improved. High staff turnover and lack of adequate incentives for extension remain problems, which have been raised by supervision staff, but not adequately dealt with by Government.

The supervision missions also played a catalytic role in informing Government officials of the benefits of the CIP approach. This public relations aspect of supervision work was instrumental not only in initiating CIP programs in other provinces, but also had a pronounced effect in blocking previous, nation-wide community programs that did not involve local participation and in the designing of the new devolution program along the lines of the CIP

A major contributor of the positive performance of the PMU was its flexibility toward participatory approaches and its willingness to work with NGO sector. The Government has always remained skeptical about NGO-government partnership due to the different approaches and work style of the two. Keeping in view the resources and capabilities, CIP has performed quite well after the departure of OPCV ( the Technical Assistance firm) when they learned by doing. Process Monitoring, which was not owned by the PMU staff now came to be was considered a part of M&E.

5.2.3 Third Party Evaluation (TPA)

In consultation with CIP officials, the Consultants selected 12 communities including two deepening sites for detailed household survey, using purposive sampling techniques. A 43

Logical Frame Analysis (LFA) was developed. Detailed information was collected through beneficiaries household survey and focus group discussion with community members from sample communities. The outcome of the surveys have been assessed by comparing with baseline and MTR, where available ( see annex A). The beneficiaries house hold survey was carried out by using questionnaire. The questionnaire was designed based on the relevant parameters' 3 . (See annex C). Random sampling techniques was adopted where 5% of the households were surveyed in a number of communities. 14

5.2.4 Pre-appraisal Mission

A pre-appraisal mission for CIP II was carried out in NWFP during the period 25 August to 17 September 2003.: The main objectives of the mission were to review the preparation of the completion report for CIP-1 and pre-appraise the CIP-II, in particular: (i) confirm and deepen understandings of the earlier mission with the Government on the commitment to the proposed program; the program objectives, components and implementation arrangements; any emerging issues; and agree on the necessary next steps to complete appraisal; (ii) hold workshops and consultation to encourage wide participation in the program; familiarize a broad spectrum of the government and the civil society with the program concept; solicit their views and to adjust the program as necessary to reflect comments received and agreements reached with GoNWFP and GoPakistan and, (iii) finalize and agree on the details of a program preparation action plan before expected appraisal, negotiations and effectiveness.

5.3 Main Lessons Learnt

The decentralized, participation-based approach to provision of infrastructures has proven to be successful and is widely replicable. Considerable institutional capacity in the provincial governments is required to implement a large decentralized program of this type. Community development is an essential pre-requisite for project investments in local communities. The CIP model can support the devolution process, but considerable effort will be necessary to build up the capability of the very weak, local governments.

13 socio-economic /demographic profiles; participatory development; water supply reservoirs;road/street pavements;health/hygiene &sanitation; community mobilization &capacity building;and Operation &maintenance. " Ghorazia, Chorlaki, Sheraghund, Kanju Old, Kanju deepening, Hassam, hayat Khail, Hayat Khail Deepening, Gulabad, Havelian, Muslimabad, Tehkal Bala. 44

TRANSFORMATION

.....~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~......

Before After

* Capacity and Commitment: Development of adequate human and institutional capacity is essential at all levels and this was initially a problem in the project. Strong commitment should be ensured from the Government and implementing agencies in termns of minimizing bureaucratic channels ( speedy approval), retain staff for the project duration, flexibility for social development. While this problem was largely resolved, the new local government arrangements and the consequent infusion of inexperienced elected officials and administrative staff creates the need for new/additional capacity building, which is critical to the sustainability of the CIP. The new potential project aims to address this issue. * Innovative, community-based projects must respond flexibly and adapt to the varying demands generated during the community mobilization process. Projects have to learn to be demand responsive and adaptive. Process Monitoring (PM) is a useful tool to enable projects to learn from themselves by identifying, analyzing and communicating problems arising from the complex interactions between projects and communities. * Sufficient time needs to be allowed for awareness building and community development before planning investments. Women's participation in the project is of key importance since it ensures greater sustainability and better implementation. Particular heed should also be paid to health and sanitation matters since they strongly affect the community's well being. The Value of Gender- based- results would be more prominent if the attitude of management reflected directly through the of provision of resources and incentives and, indirectly by ensuring gender sensitivity the M&E system. Female personnel and resources to support them were inadequate and provided late into the CIP I. 45

* Ensure that procurement capacity of the implementing agency is properly assessed during project preparation, steps taken in the project design to strengthen it and that Bank procurement guidelines are fully understood by the Borrower. A procurement plan should be completed prior to negotiations to ensure that disbursements could commence immediately upon effectiveness. * Ensure inclusion of sound financial management system in the project design. Financial management and reporting could be improved in the next phase of the project if the financial management staff are provided training.

5.3.1 Other Lessons Learned:

* Communities, even the poorest ones, can and will pay where standards and service levels are based on their demands and are affordable. This principle although well understood by many non-formal sector initiatives, needs to be understood by the public sector also. In many instances community cash contributions have been fully paid well in advance of the government's share. * Clearly stated project rules and proper understanding of these rules (selection criteria, rules for scheme identification and prioritization) by both Project staff and communities and the correct application of these rules, are essential ingredients of project success. Problems posed by both inadequate or inappropriate understanding of rules, and the rigidity of the rules themselves, negatively affected the Project. * Clear processes and criteria for identification and selection ensures transparency, and demand-responsiveness. Where inappropriate political pressures are not eliminated, this helps to mitigate them. "Community Action Plan" or CAP clearly establishes and documents the roles and responsibilities of all parties and all agreements reached. * Coordination and complementarity between social and technical assessments is critical for project success. The quality of social mobilization has important repercussions for scheme identification and selection, and community development units in the Project need to be properly staffed and functional. * Coordination and consistent policies and strategies are required between government line departments and projects to prevent duplication and wastage of resources and inconsistent messages to communities. * By using community contracting and supervision, the cost of community works can be reduced, while the quality improves. Issues of govemance divert resources from the poor. In the CIP I the new transparency and accountability in community works resulted in cost reductions of up to 40%, and works have frequently been of superior quality to those carried out through government contracting; * An investment in time to undertake a participatory approach (24-36 months are taken to traverse the project cycle; from identification, selection, preparation, confirmation, implementation to transfer for O&M) is necessary to both allow for quality assured processes and community capacity building. 46

Chapter Six Community Infrastructure Project 2

6.1 Objectives and Scope

Based on lessons learned from CIP I and other complementary projects, and feedback from stakeholders the CIP II has been evolved and adapted to devolution. The project will be open to all tehsils that have demonstrated their capacity to manage the program and within these to all communities taking into account the readiness of residents to participate, the level of poverty and current access to basic infrastructure. The project aims to improve the well being of the mostly low income communities by: (i) supporting investments in basic services and small scale, productive infrastructure, utilizing proven and effective participatory approaches; (ii) mobilizing and empowering the CCBs to increase their participation in development activities; (iii) strengthening the role and capabilities of local governments, particularly at the tehsil level, to extend institutional, financial and technical support to CCBs; ; and (iv) encouraging effective governance, particularly in the Local Government and Rural Development Department (LGRDD), through improvements in operational, budgetary and financial, monitoring and evaluation activities. The proposed project will integrate the new, decentralized and participative procedures emanating from the Government's devolution policies.

The immediate outcomes that are expected to result from the project are: (i) provision of improved infrastructure and services to local communities at lower cost with better O&M; (ii) creation and strengthening of CCBs /CBOs enabling local residents to participate more effectively in development; (iii) better performance of newly elected local governments in service delivery and in mobilizing and building the capacity of CBO/CCBs as measured by the number of tehsils qualified to participate in the program; and (iv) more effective governance through improvements in operations, monitoring and evaluation, and financial and budgetary procedures.

6.2 Components of CIP 2

CIP II, has three components, similar to CIP I. These inter-locking components are all essential elements of an integrated, decentralized, participation-based system for providing infrastructure and services to low-income people in local communities:

1 Local Infrastructure & Services: This component would provide matching grants to participating CCBs to support sub-project investments in small scale social programs and productive infrastructure projects.

2 Improving Local Level Performance: This component would have two distinct activities:

a. Institutional Strengthening which would provide technical, assistance, training and equipment to local government institutions, particularly at the 47

tehsil level, to enable them to administer effectively their local service programs, fiscal and budgetary management and plans and programs. b. CapacityDevelopment through Community Development Activities: This component would provide technical assistance, training and equipment to support the activities of CCBs and communities to build the capacity of local residents to support their own development through awareness of and participation in community development approaches, infrastructure development, health and hygiene and special support to women and children.

3 Implementation Support, Monitoring and Evaluation: This would provide technical assistance, training and technical assistance to the LGRDD to improve overall administration and coordination including supervision, monitoring and impact evaluation and to improve local capacity, particularly at the tehsil level.

6.3 Project Implementation Arrangement

The management & implementation of the project will be based on a decentralized, demand driven structure that relies primarily on local CCBs (formally known as CBOs) as the main action arm at the community level, and the lower level of governments. Support for creating and developing these bodies and in preparing and implementing local infrastructure and social programs is being decentralized from the provincial Project Management Unit and Project Implementation Units (PIUs) in LGRDD to the tehsil/union levels consistent with GOP's decentralization plan. The project will continue to utilize the existing structure of the LGRDD for purposes of the overall management and coordination of the project and preparing the tehsil governments and councils to take responsibility for administering the program in communities and creating and working with CCBs within their boundaries. A Provincial Review Board (PRB), an inter-agency group on which all relevant agencies are represented, will provide overall policy guidance, fiscal over- site, review and approve budget for the program activities. The LGRDD will continue to be the main coordinating department at the Provincial level with the following implementing bodies: * Program Coordination and Support Unit (PCSU), led by a Director General from LG&RDD, will provide overall coordination, prepare the project implementation plan, provide technical and professional help to tehsil governments in developing capacity and implementing the program; establish criteria and determine which tehsils have the capacity to participate in the program; and monitor progress preparing consolidated progress reports and other necessary documentation. * Each participating Tehsil or municipal tehsil (TMA) will set up a Planning and Implementation Unit (PIU), and will be responsible for community outreach with the CCBs within its boundaries, selecting those that are to participate in the program, working with them in developing and implementing Community Action Plans and projects and coordinating with the tehsil council and its head, the Tehsil Nazim, each Union Council, and other participating agencies or groups. 48

* CCBs are Voluntary Organizations formed at the community level, which mobilize the local population, prepare Community Action Plans and implement infrastructure projects and social programs. CBOs will be required to register as CCBs, which are legally recognized bodies under the Local Government Ordinance, as a condition of participating in the project. Efforts will be made to ensure that the CCBs are representative, inclusive and participatory in nature. * The PRB will be the policy and fiscal oversight group for the provincial government and will approve annual budgets and make policy decisions affecting the overall direction of the program. It will be chaired by the Additional Chief Secretary (ACS), and its members will include the Secretaries of Finance, P&D, LG&RDD, and Works and Services and the Director General CIP2. Fiscal issues will be in partnership with the mandate of the Provincial Finance Committee (PFC), responsible for the allocation and fiscal transfer and contribution to lower level of governments

The success in adjusting the implementing arrangements will depend on strengthening capacity in two key areas:

* LG&RDD is moving from an organization working directly with communities to one whose role is to assist tehsil governments to undertake these responsibilities. This will require revised procedures, a change in orientation among its staff, some transfer of staff and delegation of more responsibility to the tehsil level. The Operational Manual for the program-have been amended to accommodate these changes, incorporated criteria for tehsil participation and provide for other new operational needs; * Tehsil level administration has often been quite weak and unsuited to the new types of responsibilities tehsils will face. For that reason, LG&RDD will work closely with individual tehsils to build up their capacity and will qualify them for participation when they are satisfied that they are ready to participate effectively.

The project will be budgeted in the annual Public Sector Development Program (PSDP) of the Government of NWFP as an identifiable single head budget item each year showing both the local and foreign resources of funding. Initially, the provincial government Finance Department will make the funds available in advance from the provincial budget resources to meet at least 20 percent of the annual requirement through the Accountant General (AG) in the shape of Revolving Funds to the spending unit at the provincial, tehsil and registered CCBs. This advance will be deposited in a bank account to be operated jointly by the designated officials and adjustable on completion of the respective scheme or completion of the program at the state level. The conditions for the release of the revolving funds include: (i) an approved Annual Work Plan; (ii) copies of administrative approval of schemes by the Secretary, LGRDD; and (iii)evidence that the CCBs have contributed 20 percent share of capital costs of the scheme. 49

Chapter Seven M&E Framework and Monitoring Indicators

7.1 Monitoring and Evaluation

In order to monitor and evaluate the community-based approach, the emphasis is on monitoring to see whether genuine community participation is taking place, and whether benefits of the infrastructure works are reaching all members and particularly the most marginalized people within the communities and in the more remote areas. It also seeks to anticipate and identify problems and risk areas where mitigation processes are not happening (or not happening well), and to feed this information back into a system for improving CIP II implementation and design in subsequent phases. Reporting on a community-based approach will originate from the community level. It is recommended that reporting is made to local community ( by the local community) through public postings and to higher level; photocopies of the original public postings and more detailed reports to be sent through all administrative levels. The CCB Reports to higher levels must be created at clearly defined intervals (monthly) and should include photocopies of the public postings and a brief report on problems encountered in involving the community in the subproject. District and State level should answer the same questions in their reporting.

This feedback will be the trigger, along with other aspects of monitoring, for identifying problems, and for providing appropriate additional supports as necessary. The report should be signed by all Management (and subsequently Maintenance) Committee members. Receipt of satisfactory reports could be the criteria for disbursement of subsequent trenches as well. The five suggested stages after which reporting should be required are:

1. Formation of community organization and development of area development plan 2. Subproject selection; 3. Design and cost estimation approved by community; 4. Construction completed and maintenance plan developed; 5. Six months after completion of implementation works are put into use.

External monitoring should concentrate on: * Process Monitoring * In-depth periodic studies of a sample of the project communities: TORs for each study should cover the issues outlined. * The sample chosen (both urban and rural) should cover all relevant districts and be representative of all sites. In urban areas spot checks will be preferred because of smaller number of sites. * Assess that women along with the poorest and most vulnerable groups are benefiting from the subprojects; 50

* Participation of beneficiaries in all stages of the project cycle. * External Monitoring should occur periodically (quarterly) throughout the project cycle.

7.3 Suggested indicators:

* Memberships reflecting distribution of population by social and occupation group within the village * Percentage of villages (through CCB/CBOs) that applied for sub-project in the Union Council area and the reasons for some communities not applying * Percentage of minority social and occupation group involved in the Village Organization/CCBs. * Any conflicts in sub project /scheme implementation? how resolved? * Separate women organization formed and women consulted and their concern incorporated in the area development plan and the selection of sub projects * Percentage of sub project benefits reaching the vulnerable groups. * Satisfaction of poor and women groups regarding project design, cost, implementation procedure, contribution and distribution * Reasons why women and vulnerable groups are satisfied/not satisfied with the progress/result of the subproject. * Relationship between amount of community contribution and amount spent on labor and local resources. * Role of locals and contribution pledged in Operation and Maintenance, and actual roles and contributions after six months of use.

For Evaluation purposes it is recommended that:

* Baseline information * An internal phase one evaluation (review and adaptation) be conducted at the end of year one; * Similar reviews occur at the end of each year; * A final evaluation is conducted by an independent agency.

The aim of the final evaluation should be to evaluate whether the aims of the project have been met and to make recommendations for further projects similar to the CIP II.

Review and adaptation be carried out to ensure that the project design responds on an ongoing basis to local needs and priorities. A project review should occur at the end of year one and similar reviews to address problems and make necessary adaptations should then occur at the end of each subsequent year.

Processes that should feed into project adaptation include:

o Community reports; o District and provincial reports; o Results of monitoring exercises 51

Chapter Eight

Social Safeguards

Since the size of infrastructure projects will be limited by the eligibility and financing criteria, no large scale impacts are expected. The applicability of the safeguard policies to the project has been determined in the social and environmental assessments. Guidelines for arrangements for the borrower to address safeguard issues have been described in the Environmental Management Framework and detailed out in the project's Operational Manual.

There are no known Indigenous people in the project except for the Kalash in Chitral. The project does not envisage any intervention in this area. Thus OD 4.20 on indigenous people does not apply. This was confirmed at the stakeholders workshops held as a part of social assessment. Furthermore, the Operational Manual and subproject screening and selection process will ensure that OD 4.2 is complied with should any indigenous groups be affected.

OP 4.12 on Involuntary Resettlement is also not expected to apply to this project as only schemes in which land or property is donated or vacated on a fully voluntary basis would be eligible for project financing.

Under CIP I voluntary land donation was a common feature of community development activities in NWFP. This process will be followed under this project also. In cases where land is donated by the community:

(i) Land will be identified by the community (ensuring its appropriateness for project activity); (ii) The voluntary nature of the donation will be verified from the person(s) donating land; (iii) There should be no encumbrances on the land; and (iv) In situations of loss of income or displacement, verification will be obtained from affected parties that community devised mitigation measures are acceptable. (v) Land transfer will be officially recorded in revenue registers through 'Iqranamas'.

Dam Safety Management Plan do not apply in this project. 52

8.1 Stakeholders

The key stakeholders are: low income communities, officials and staff of District, tehsil and union council, NWFP- LG&RDD, other related agencies, NGOs and private firms/groups. It is anticipated that the community members will participate in project activities by joining the CCBs and Community Organizations who may be involved in neighborhood and block activities including arranging and organizing community and neighborhood events.

CIP-plus will largely rely on the approach taken by the first NWFP-CIP, the AJK Community Infrastructure and Services Project, and other successful community driven development programs in Pakistan in terms of i) following the community driven approach where men, women and children define the problems and issues and design practical solutions through a community action planning process; ii) selecting competitively communities based on human, financial and O&M commitments. iii) integrating physical, social and economic components managed and mediated by Citizen Community Boards (CCBs); and, iv) continuing to incorporate and strengthen the role of women in all aspects of sub-project preparation, implementation and operation and maintenance activities. 53

8.2 Consultation and Participatory Framework

Table 16.1 Participatory Framework ACTIVITY STAKEHOLDERS DURATION OUTPUT CONSTRAINTS GoNWFP, LGRDD, CIP I Preparation CN and IM Lack of Clarity on Meetings for staff and of CN and IM implementation on concept note communities through LGO and capacity and IM COs and powers of TMAs

Pre LG & RDD, staff of Till Social and Env Interpretation of Appraisal and CIP 1, World Bank, appraisal assessments, EMF, large data base; Social and Line Department Operational obtaining Env (EPA) NGOs including Manual, agreements bet assessments, women's NGOs, Draft Draft PAD different EMF and Nazims, TMAs and stakeholders on Operational selected communities sharing Manual of power. Project GoP, GoNWFP; LGRDD; 2 days for Awareness and All stakeholders launch district and Tehsil project information about may not be able to workshop Nazims, Officers and launch project, and rules attend Administration; of business. particularly from CCBs, NGOs, women's far flung areas of NGOs, Media, and NWFP Bank. Consultation LGRDD, district Over project Awareness about political fallout, with govt, TMAs, CCBs, cycle project and how to high communities expectation Community, (male and benefit and terms and TMA and female) CIP II of conditions e.g CCBs for staff and NGOs cost sharing dissemination etc.capacity of building as a pre information requisite etc. Application/ Community, LG&RDD, During Initiation of Multiple request from CCBs & TMA, CIP-II scheme process, quantum applications, CCBs selection of response duplication. Lack of clarity about project pre- requisites Consultation TMA/ CIP-II, During Awareness raising, Improper on pre- relevant line scheme dialogue and application of feasibility department, CCB selection application of Operational of Manual scheme Operational selection Manual. Screening LG&RDD, TMAs During Selected CCBs Backlash, scheme resentment among selection non-beneficiaries, political pressures. Lack of capacity of CCBs and TMA Needs CIP-II, TMA, During Community specific Exaggerated assessment demand communities (male design and sub-projects for sub- and female), CCBs preparation identified components in of sub- selected projects communities Implementatio TMA and CCBs Over project MOU with Participation n cycle communities, cost motivation of sharing stakeholders may arrangements wane . Lack of finalized, capacity. construction of works

Participatory CCBs, TMAs, CIP-II From M&E reports, Political monitoring biases, and NGO implementati response of and negative role of on onwards communities and media, evaluation lack of cycle CBO dialogue capacity to carry out the activities. 54

8.3 Critical Risk and Mitigation IRisks lRisk Mlitigation Nleasures RZatino From Output to Objectives is committed to Commitment to devolution (involving fiscal and M The National Government and is undertaking, with assistance administrative decentralization as well as community decentralization training program for local empowerment) is not assured. from IDA, an extensive elected officials. The GoNWFP and its officials are strongly committed to the project, and the state has a strong history of implementing decentralized, participative programs. Fiscal decentralization is currently under study. During the first years of the project, the present system of fiscal transfers to local governments for development projects will continue. ______will provide for extensive capacity The provincial, district, and local governments are unable to M The project training activities at the all levels of develop institutions and procedures to support a decentralized building and The project's proposed mechanisms and participative approach. government. modalities for local action have been tried successfully in NWFP and AJK. elements for project implementation in NWFP are A comprehensive, consistent, and doable institutional L The basic in place. An Operational Manual will codify a set of framework is not adopted and implemented by the government. already clear operational procedures; training in these procedures will be provided to all relevant personnel.

to CCBs should be released in In view of the weak financial, administrative, and technical The funds phase in (e.g., four installments) as per capacity of CBOs and MCs, there is a risk of different The release of funds will be made misuse/misappropriation of funds at their MOA/CFA. the CCBs provide evidence of their level and that these funds may not be accounted for properly. only after contribution in the Joint Scheme Bank Account, and a certification by the AE, LGRDD, of progress of physical work done. The MCs should be paid on submission of "expenditures claim" supported by all documents of physical work done, as certified by the Executive Engineer/Assistant Engineer, LGRDD, and pre-audited by the senior auditors on deputation to the AG's office.

confirmation from the GoNWFP Finance Initial availability of firm in the 'Revolving Fund' bank accounts Written that adequate funds will be disbursed to the at the provincial and District/Municipal levels and in the Department CCBs" Joint Scheme' Bank accounts by GoNWF. Project. participation agreement at the outset and systematic Project is unable to get complete cooperation from municipal M Clear dialogue with all tiers of governments to governments (TMAs) and union councils and continuous explore their expectation regarding coordination and continuous dialogue with all stakeholders Changes in decentralization policies affect project S Systematic makers to perceive in advance possible changes; implementation and policy study technical and institutional changes and maintain a flexible approach and their mobile teams to work with TMAs Sub-projects identified do not target the low income M LGRDD/PCSU to deepen their participatory process at the local groups/rural poor and UCs levels targeting of poor, participatory Capture by local elite and other possible misuse of funds and S Appropriate awareness, informed decisions, careful other grant funds process(maximum, screening, process monitoring of CCBs and individual projects during and post completion will minimize the risk based on implementation plan. Close Disbursement Driven Implementation M Disbursement monitoring and supervision supervision, mandatory financial and performance Financial mis-management M Effective audit, random checking of PMU and community record during field visits processes, process monitoring Government Political Interference S Transparent Measure From Component to Objectives Risk Rating Risk Minimization Community Development and The communities will not develop strong CCBs that can The proposed 55

Rziskls lRisk MIitigation IMa.l%ures Rating prepare and implement high priority projects providing broad capacity building activities would support specific benefits to the community and its members; women members interventions to build the capacity of CCBs and their are unable to participate actively and benefit from project members. Efforts would be made to strengthen the activities; possibility of elite capture not avoided. capacity of local level governments and other support organizations to provide the communities with the necessary organizational and technical skills, and the selective demand driven approach should greatly enhance the chances for success. In order to help ensure the participation of women, the project will require that in addition to be part of the overall CCBs, women members form their own women's groups and, in addition, at least two women will be represented on the CCBs; particular attention will be also given to training women in relevant skills. The risks will be monitored with the following measures built in to the project's policy and operational guidelines: (i) CCBs representation must show that women are represented and that the CAP addresses their needs; (ii) a community map must show plot household size and location, existing services and right of way. Improvements on the types and location will be designed and checked to show how they serve the low income households; and (iii) affordability of member contribution will include a check on low income households' ability to pay or to contribute to the project.

Infrastructure schemes encounter difficulties due to poor M The Project includes a strong training component design; convergence with other government to ensure programs is not that all stakeholders follow the guidelines ensured in a timely manner. and procedures of the Operational Manual, in particular on technical criteria and designs.. A policy framework to align government programs as a condition of negotiation has now been notified with endorsement from the highest level in GoNWFP

Lack of support organizations (local NGOs, private groups, M During project preparation and implementation, training institutions) with adequate a list of capacity to assist in the NGOs and private sector preparation of CAPs. firms, which have experience and capacity to provide assistance to CCBss and local government staff for preparation of CAPs, have been prepared and will be maintained. In addition, the project will also provide training programs for these consultants and service providers. Government and /Municipal level governments are not able to M Major efforts will be made to train government develop an effective system to support district and communities in raising municipal officials, in the techniques awareness, organizing and of community development and develop increasing skills. an effective system to support it, based on existing good practices developed in similar programs in AJK and Pakistan. The governments concerned will be encouraged to outsource many of the technical services required to NGOs and other private organizations. Risk that supply of materials and goods by Suppliers to CCBs M The payment to supplier(s) should only be are not in accordance with the contract specifications and done once they submit the certificates of quality incorrect delivery of quantities and to wrong recipient(s). assurance and quantities duly signed by the AE and CCB's President. Public display of scheme(s) status- receipts and payments and periodic CCBs meetings also enhances the process of accountability. Inadequate or untimely flow of funds M Counterpart funds are mandated by the Federal Government and are currently allocated to the municipalities in relatively clear fashion.. However if it happens, government should promptly consult with IDA and prepare and thereafter implement a remedial action plan, satisfactory too IDA. CCBs are not representative bodies M Clear application of guidelines for registering CCBs to ensure maximum representation of community Information campaign and CD programs are not effective in M Design and implementation of awareness project awareness and promoting social campaign and CD inclusion in particular programs included culturally appropriate women and children and the most vulnerable media to inform project guidelines and policies, stimulate encourage wide involvement of all residents in the municipality. 56

Risks lRisk Nlitigation Nleasures lRatiio technical, finance and CD staff are Unavailability of technical assistance services to TMAs and S Experienced LGRDD CIP 1. Funds are available to finance CCBs available from the implementation support, annual plans include capacity building and technical assistance activities Overall Risk Rating Moderate 57

Third Party Evaluation (Comparisons) Annex A

Baseline MTR TPA Institutional Development CBO formation/registration NA 47% 83% Clear objectives - 72% Awareness About Block formation - 47% 100% Election of Block 40% 90% Perception about the CBO 40% 86% CBO meets regularly 17% 55% BR meet regularly 13% 59% _ CBO created Linkages _ _ 80% 66% _ Awareness about CIP role 83% 93% _ Community involvement in project Cycle - 47% 83% _ Community aware of 20% cash contribution - 83% 93% _Community aware of 3% O&M contribution - 50% 69% Community Based women Organization 0 - 100% Contribution in CBO fund regularly - 48% CNWO communicate with male CBO _ 27% 38% Health and Hygiene H&H campaigns - 52% TBA Training Training to male CBO 48% _ Book keeping 48% _ Recording of minutes Effect of CIP _ Low cost greater benefits 86.2% House building increased 79.3% _ Land Value increased 69% _ Environmental Conditions 89.7% Illness reduced 69% _ Literacy rate reduced 58.6% Overall community out look improved X 96.6% 58

Annex B

Questionnaire Social Screening Checklist for project selection

During project selection, all sub projects will be screened against the following parameters as informed by the social assessment. Thus all sub-projects/interventions will pass through the social assessment over the project cycle. These include screening for the following aspects:

1. Settlement Pattern/Regional Variation. Please tick mark the districts and name sub regions for project intervention

2. Population and Demographic Characteristics:

a. Area it covers (in acres) _b. No/Cluster of villages covered

3. Poverty Focus and Socio-Economic Conditions: Average Income of Target Area:

4. Land Characteristics:

a. Amount of land used by sub project/ intervention(in acres): b. Number of owners for the land to be provided for sub project:

5. Access to Services: Does the sub project area have these facilities? 1. Road YES NO 2. Bridge 3. Public Transport 4. Health centers/dispensary/hospital 5. Education: primary schools (boys) Primary school (girls) Middle school (boys) Middle school (girls) High school (boys) High school (girls) Any other -specify

6. Water Supply: if yes, specify type------7. Sanitation 8. Electricity 9. Telephone/PCO 10. Petroleum/Gasoline Station/ LPG/CNG Supply 59

6. Social Organization:

a. Do CCBs exist? If yes, specify

i. Pashtun: h 11.

iii. Other (specify):_

b. Do they need to be strengthened? Yes F No D

c. Are any of these involved in grievance redressal? Yes LII No If yes. Specify method used------

7. Community Organization:

a. What kind of Community Organizations exist?

1. ii.

iV.

b. What are their functions?

1.

ii.

111.

iv.

8. Gender Issues: The planners will need to ensure that women are involved at all stages of the project cycle.

a. What is the social characteristics of women in the target area?

b. What is the level of literacy?

c. What is the level of involvement in community activities so far? 60

d. Are women involved in selecting location for the Stand posts? Yes No

e. Are there any informal women organizations? Yes Ci No D

f. Are there any women's savings committees? Yes fil No D

9. Grievance Redressal Mechanism (GRM : a. Is there a GRM in place? Yes C No LII if yes, how many members , and which group (clan, tribal, etc)do they belong to------

b. How are women problems addressed?

10. Social Risk Management (SRM): Are any of these risks anticipated in the sub-project?

a. Communities will not develop strong CCBs which prepare and implement sub projects Yes----- No----- b.. Elite capture not avoided. Yes----- No---- c. women unable to participate and benefit from sub project Yes---- No---- d. Sub projects encounter difficulties due to poor design Yes---- No---- and implementation obstacles e. lack of support organizations (CCBs/NGOs/service providers) with capacity to assist in preparing CAPs/sub projects. Yes---- No---- f. tehsil and UC government unable to develop effective system to support CCBs in raising awareness, organization and skill development. Yes-----No---- If yes to the above , what mitigatory measure will be taken? ------

11. Social Safeguards - Involuntary Resettlement: Part A If all the land is a voluntary donation, please respond to the following: m a. Does the party donating the land verify it is voluntary? Yes LII No Li 61

b. Is the land appropriate for the intervention? Yes [I] No L c. Will there be any persons losing livelihood due to the donation of land? Yes C No [l if yes, what mitigatory measures have been provided by the community for the affectees?

d. Do the affectees accept the mitigatory measures?

e. The land title has been transferred through "Iqramama" to the Government? Yes D3 No D if No, what is the status?

Part B f. Has the land been acquired leading to involuntary land acquisition and resettlement? If yes, (i) Amount of land: (ii) Number of affectees:

g. Has the Resettlement Framework been evolved? Yes X No D if yes, whether approved by the Bank? Yes F No LI (Note: The sub-project cannot be approved in the case of land acquisition without clearing the Resettlement Framework or the Resettlement Action Plan from the Bank.)

12. Indigenous People: (indigenous people can be identified in particular geographic area by presence in varying degrees of following characteristics: * A close attachment to ancestral territories and to the natural resources in the areas; * Self identification and identification by others as members of a distinct cultural group; * An indigenous language, often different from the national language; * Primarily subsistence-oriented production. * Presence of customary social and political institutions;) C 62 a. Are there any indigenous people in the sub-project area? Yes No if yes, number of persons to be affected by the sub-project? b. What mitigatory measures are undertaken?

c. Indigenous People Framework in place Yes g Noo I or part of community action plan

(Note: If there are indigenous groups identified in the sub-project area, mitigatory measures prepared for them must be cleared from the Bank prior to the sub-project approval.) 63

Annex C

Pakistan NWFP

Community-Infrastructure Project II (CIP2)

Social Assessment (ToR) and CIP-IH Baseline Background to the CIP aims and objectives: The CIP supports the broad objectives of improvements in basic infrastructure by introducing long-term sustainable approaches for low- income communities. Its main components include i) Development of a participatory model for project preparation, implementation and O&M that could be sustained and replicated on a widespread scale ii) Strengthening the capacities of the implementing agencies (PMU & PlU's of CIP and LGE&RDD and TMAs) and the beneficiary communities to jointly work in all stages of infrastructure development and upgrading programs and finally 3) drawing on the demonstration of the project processes of implementation of social & physical infrastructure activities in 90 rural/urban Communities through out NWFP including 8 pilot sites implemented by the partner TMAs (under CIP-1).

Constraints in financial resources are forcing the GoNWFP to consider new policies towards the provision and maintenance of infrastructure. CIP addresses this by seeking up-front cash contributions from the community for the capital costs (of development works) and a firm commitment to manage and fund the operation and maintenance. The strategy is to provide what a community needs, what it feels it can afford and what it is willing to accept. This strategy adds a new dimension to the relationship between TMAs and beneficiary communities. Although the project has made significant progress in operational areas, internal as well as external assessments have demonstrated an urgent need to focus on institutionalization of the processes, the CIP model into the District Govt and Tehsil Municipal Administrations. The project has already taken the challenge at hand by initiating implementation of 8 pilot sites of CIP through the partner TMAs and focusing on the Institutional Development of the TMAs through its Institutional Strengthening Program.

Structure of the Assessment: The first section of the TOR for social assessment is derived from the consultants ToRs, and sets the background. The information required is presented in the list of questions. The information will be compiled in a report that presents the HH information, and assessments made by the ISP and any other info available. Quite a lot of Information is already available with CIP in different places e.g. ISP reports, TPV report, impact assessments etc. The gathered the data needs to be put together and information is to be presented in a coherent manner. The survey and assessment methodology applied under CIP-I is still valid, it needs to be fine-tuned in terms of the use of this information by management and by mid-term evaluators to respond quicker and better to certain deficiencies or omissions in implementation, or weaknesses in project design. In addition to the methodology there is a need to establish updated baselines in the newly targeted areas and communities, to arrive at reliable benchmarks against which CIP-II performance can be measured. Thus the social assessment will include: o Section 1. HH info based on CIP I and priorities for CIP II, including gender programs o Section II. CD info and CBOs/TMAs and CCBs assessments, drawing on ISP data o Section III. Assessment of willingness to pay, based on CIP I experiences and CIP-II proj ections/assumptions 64 baseline SA Workplan: Following the finalization of the ToR for SA, the Social Assessment and round 1 surveys are to be conducted in the 09 TMAs and 86 sites that are earmarked for inclusion of CIP-II. The assessments and surveys need to be completed before June 2004. o Part(A)ToRSA 2004 o Part (B) Preparations/Actions required to conduct socio-econ surveys prior to June

Part (A) Terms of Reference (ToR) Social/Institutional Assessment the quality CIP-II Objectives and Components: The main objective of the CIP-II is to improve approach of life of low-income communities in NWFP through a more effective and sustainable to the provision of affordable basic infrastructure and services, ensuring extensive community project participation and incorporation of social development in low-income communities. The will support development of a participatory framework implemented in context of the Government's Devolution Plan. The above objective is likely to be achieved through:

1. Development of institutional mechanisms to support Community Driven Development (CDD) within the Local Govt. institutions. Institutional mechanisms for not facilitating the partnership between local government institutions and CBOs/CCBs do exist. CIP has developed and perfected a methodology of partnering successfully with CBOs over the seven years of its implementation. The required institutional mechanisms are to be created at the local government level before the project can proceed with the institutionalization of the CDD approach. Adequate time and commitment would be required for this most critical activity. Capacity development of government functionaries at the District, Teshil and Union 2. to levels. Skill enhancement would be focused on (i) Community relations and assistance establish/strengthen CCBs and CBOs, (ii) Advice, investment and evaluation of the CBO/CCB community-level action plans, and (iii) Preparation of Teshil-wide Basic Services Maintenance and Improvement Plans, and (iv) information base for economic opportunities and service delivery, knowledge exchange and cross visits. Where requested (probably by larger towns), assistance and training may be offered in other areas such as financial management and revenue improvement, asset management, land registration, management information systems & methods. (CBOs). 3. CCitizen Community Boards (CCBs) and Community Based Organizations Training in core operations of local community decision-making and management including representation, elections, registration, community mobilization and development planning. 4. Investment Support

a) Infrastructure: b) Community Development: This component would focus on the local residents' capabilities for their own development, and would comprise: Awareness and promotion of community-based development approaches and techniques among stakeholders, Mobilization and capacity-building Health and hygiene awareness Basic literacy and simple business management skills; Skill training and linking interest/user groups to existing local economic development opportunities the social Specific Objectives SA: Baseline Socio-Economic Survey: The specific objectives of are to undertake a detailed baseline-socio-economic survey of a sample of the assessment and potentially affected population (10% percent per sites ) ensuring that different categories 65 groups of people are represented in the sample, and detailing how they are likely to benefit and/or be negatively impacted by the project. The survey is to result in a baseline against which the mitigation measures, support and the project's impacts will be measured of the schemes/communities included in Round 1.The survey will cover the needs and resources of different groups and individuals, including intra-household analysis and gender analysis and draw up on existing demographic, historical, administrative, economic and sociological data. It will also assess the needs and priorities of the affected communities and include the following information: * needs and priorities of communities for basic infrastructure upgrading services; * expressed preference on feasible technical options for infrastructure and services, and * willingness to pay for the services identified. * Special emphasis needs to be placed on gender issues. Additional data will be collected through focus group discussions with women's groups on households, labor allocation, land tenure, ownership and use and disaggregated by gender. * Specific information is required on household characteristics and community level organization, as well as on project preferences, priorities and options, as detailed below Data requirements of the Baseline Socio-Economic Survey: On the basis of the findings TPE of the and in particular the survey formats used in the TPE, and the assessments of the TMAs, 08 pilot the new CIP-I1 survey formats will be prepared, including stronger linkages baseline of the to the M&E system of CIP-JI , to ensure that the CIP-I1 M&E system includes monitors and or periodically assesses progress of these baseline indicators. The following categories of data are required, and these were collected through the existing CIP-I surveys and these now be will collected in a simlar manner under CIP-II -II through; a TMA needs assessment survey, the Community/CCB Socio-economic Survey, the CCB ranking and selection survey, the Block CCB and Household marking Survey, the SO assessments of the CCB social Mobilisation process, and specific thematic surveys or studies that may be undertaken by the project. The indicators fall into the following categories:

1) Household Characteristics & Community Level Organization Household organization: type of house, number of persons by sex and age; literacy level, Size and dependency ratio; Household income ( by source) What economic activities do men and women perform in the area? What would you want the project to provide. (training? Linkage to loans? Cheap technology? Access to market? 2) Institutional community organization: * Type of COs, leadership structure, women's involvement, issues around which communities are willing/likely to organize; * Were there social organizers ( male and female) working in the area before construction of infrastructure under CIP I? Any women COs formed under CIP I ? Any women councilor elected from women's CO? Are COs undertaking O& M for completed sub projects? If no, why not. Are TMAs functional? How many social staff in TMA? Do sub- committees exist? What problems do TMAs face Do CCB's exist. Are they registered? Are they representative of the community? How many staff do they have. Are women represented in CCBs? 66

Have CCBs implemented projects? If so, specify by type. What problems/constraints do CCBs face? Community interest, and relationships, regional (district-town) variations, and relationship with other community groups, local governments and NGOs'/CCBs private groups. Constraints in Present System Local factionalism, Elite capture * How are conflicts in the project resolved? Any other suggestions to resolve conflicts? 3) Household Access to Services * Which of these components of CIP did the site benefit from? do households have access to?: (a) water supply; (b) sanitation; (c) wastewater treatment; (d) solid waste; (e) paving and drainage; (f) access roads; g) women's program (specify) * Did CIP help form COs? * How did Health and Hygiene program help community. * What else would you want in this program? Specify-- Was any training provided for women under CIP I (specify). Would women want any other training under CIP II ( specify) * Any TBAs trained in the area? Do you need more TBA training? Number of women benefiting from CIP program Specify by type in Did community contribute towards infrastructure under CIP I? If yes, how much, what form? 4) Project Preferences, Priorities and Opinions Beneficiaries priority ranking of options will Community take responsibility for O&M? if yes, in what form? ( cash--? Services--? Any other/ Specify)- What infrastructure are community prepared to contribute towards? Specify by type of infrastructure The potential demand for loans for housing improvement etc. The gender differences with respect to project priorities and participation; * The key economic benefits of the project.

2004 Part (B) Preparations/Actions recquired to conduct socio-econ surveys prior to June

to ensure that The following action is to be undertaken to prepare about 86/90 sites in 09 TMAs, upon activation of the WB CIP-LI project, an immediate start can be made with the infrastructure works (primary and secondary) in these 09 TMAs and 86/90 sites, this preparation during 2003/04 requires the following: arrive at o Carry out a social assessment and baseline survey in these 90 sites to (i) clear and reliable benchmarks, to be able to measure the effects, impact and performance of the CIP-II investments against the "before" situation, and (ii) use this experience to further improve the CIP-II baseline survey methodology, to be applied in the other 52 TMAs.

o Carry out during 2003/04 the required community development and CCBs capacity building activities in about 90 CCBs, to ensure that per July 2004 at least 90 CCB have been formed and are capable of commencing and carrying out their tasks and taking on their responsibilities related to the CIP-I1 infrastructure investments that and will be made in their respective communities. This also requires negotiation 67

finalization of amounts and timing of the CCB financial contributions, required to implement the agreed CIP-1I infrastructure works in that community

o Induct by November 2003 and put in place by December 2003 the required CIP-IL staff (two SO per TMA) and SO and CD staff to be posted in the CIP-II Zonal Offices, to carry out and complete prior to June 2004:

* Community/CCB Socio-economic Survey * CCB ranking and selection survey, including detailed assessments against criteria * CCB Block and Household marking Survey * SO assessments of the CCB social mobilization process up to signing of CAP * any specific thematic surveys or studies as required

o Carry out 09 needs assessments - on the basis of the ISP survey/assessment formats - and formulate 09 (TMA tailor-made) capacity-building programs for the 09 TMAs of round 1, to ensure that these 09 TMAs can commence per July 2004 with infrastructure implementation, in close collaboration with the 90 selected CCBs, This also requires negotiation and finalization of amounts and timing of the TMAs and CCBs financial contributions, required to implement the agreed CIP-1I infrastructure works in the 09 TMAs and with about 90 CCBs

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