Annex 1: Workplan Narrative Template

BNWP South Asia Regional Block Implementation period: June 1, 2008 - March 31, 2009

Overview block hopes that the planning process undertaken in WASA-G can serve as an example to be successfully Punjab is Pakistan’s most urbanized province with roughly carried out in the other five major cities in Punjab. 31% of its population living in urban areas. It faces major challenges regarding urban infrastructure development in general and provision of Water Supply and Sanitation Content (WSS) in particular. The Government of Punjab (GoPunjab) is fully committed to improving the performance The South Asia block is organized into two components, of WSS provided in the urban centers of the Province and both designed to support the aforementioned GoPunjab has initiated ambitious and gradual reforms of its WSS sector reform and development program for WASA- institutions which include transforming the existing Water G. More specifically, these components are: and Sanitation Agencies (WASAs) into autonomous, efficient, customer-oriented and financially viable WSS utilities. 1. Performance Improvement Action and Gujranwala, a city with a population of about 1.5 million MeetingInvestment the MDG Water Plan & Sanitation for Gujranwala, Target. WHO Punjab & UNICEF (2006) with a very low piped water and sewer connection ratio and intermittent water supply service, has been selected as a This component aims to develop a business plan, including pilot city by GoPunjab for the above-mentioned investment a mid term action and investment plan, geared at improving and reform. Gujranwala’s WASA (WASA-G) has Gujranwala’s WSS coverage and service delivery, and a traditionally experienced severe operational and financial short term rehabilitation plan. The component will include difficulties in providing WSS and service levels are an assessment of the current status of Gujranwala’s WSS currently at a critical low. service, identify the main constraints of WASA-G, and formulate strategic options for performance improvement. There will also be a dissemination workshop to share the Objective findings.

BNWP funds will be used to continue supporting 2. Institutional reform and restructure of WASA-G Gujranwala’s WASA (WASA-G) pilot including (i) finalization of the corporatization of the utility; (ii) This component aims to assist GoPunjab (Urban Unit) and preparation of a institutional reform and restructuring plan; Gujranwala WASA in restructuring and re-engineering the and (iii) preparation of a business plan which includes an institutional framework of WASA-G, and preparing a investment plan for the city of Gujranwala in WSS detailed action plan towards an effective new corporate infrastructure and services improvement. In addition, the structure. This component will include the creation of an operation assessment report, corporate statues and a Total World Bank Lending Associated with BNWP delegation agreement for WASA-G and GoPunjab , as well Lending as an implementation plan, including measures for capacity building. USD millions for FY2006 to present Source of Worldwide Lending in lending Lending SAR BNWP Loan 1.9 0.110 Total World Bank 2371.3 50 Loan South Asia, Population se rve d (%) w ith im proved WSS in 2006 and Outcomes M DG targets for 2015 The overall Block aims to setup a pilot urban WSS 100 institutional reform and infrastructure investment agenda e 80 g a t 60 n e

c 40 r e

P 20 0 Improving Water and Sanitation Services for the Poor The missionRural ofUrban the TotalBank-NetherlandsMDG Rural Urban WaterTotal PartnershipMDG (BNWP) is to improve delivery of water supply and sanitation services to theTarget poor. The partnership Targetenhances performance of World Bank operations in the water supply and sanitation sector and supports a broad sector reform agenda with a strong poverty focus. BNWP activities center (% of on population) providing support (% to of solve population) immediate problems with actual cases, testing policy and delivery information,Access and to plugging improved w gaps ater inAccess existing to improved knowledge sanitation in the water sector as a whole. for Gujranwala city, which could then be replicated in other major cities in Punjab, with the objective to improve urban WSS services and access. With the achievement of these components, GoPunjab will have a stronger capacity in WSS services management. More specifically, component 1 is to support the GoPunjab to establish a WSS business plan with investment options for service improvement, while component 2 is to assist WASA-G on a new, corporate institutional structure. Achievement of outcomes will be measured by:

 Improved investment and action plan for better WSS service and access;

 Improved capacity in WSS management;

 Improved corporate structure for WASA-G;

 Improved partnership among service provider, regulator, and customer;

 Improved capacity for Gujranwala and WASA-G in WSS management; and

 Improved capacity in GoPunjab to formulate business plans for utilities.

On a broader scale, the South Asia regional block will also contribute to:

 Growth of the World Bank WSS portfolio: Both component 1 and component 2 will support the Bank WSS portfolio in Punjab;

 Shifts in World Bank WSS policies and portfolio towards a stronger focus on MDGs: Both components give strong focus to setting up the right institutional framework and investment for improved water services, improved access to WSS, and achievement of WSS MDGs; and

 Direct impact enhancement of World Bank Projects.

Operational budget per component Components Budget

Pakistan: Performance improvement action and investment plan for Gujranwala, Punjab $150,000

Bank-Netherlands Water Partnership – WaterPakistan Supply: Institutional and Sanitation reform and Windows [email protected] of WASA-G $66,000 Total $216,000