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Fundfor Sustainable Development (FSD) in North West Frontier Province (NWFP) by Mohammad Rafiq

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Fundfor Sustainable Development (FSD) in North West Frontier Province (NWFP) by Mohammad Rafiq Profiles ofthe NEFS: North West Frontier Province, Pakistan 103 Fundfor Sustainable Development (FSD) in North West Frontier Province (NWFP) by Mohammad Rafiq I. History alleviation and job creation. In the process, FSD hopes to address the issues of recurring costs, Following on the Pakistan National inefficiency, and governance associated with the Conservation Strategy (NCS), over the past state-delivered development. three years, the Government of NWFP has developed the Sarhad Provincial Conservation There is substantial political and Strategy (SPCS), “Sarhad” being the vernacular bureaucratic support for the fund. However, term for “Frontier.” Extensive public objections by the Finance Department are consultation was an important part of the delaying its establishment. process. A draft SPCS has been approved by the Provincial Cabinet. II. Goals The idea of a Fund for Sustainable The main purpose of FSD is to protect Development (FSD) in NWFP was conceived by the environment by encouraging sustainability in the IUCN-SPCS team working with the the use of natural resources of the province. Government of NWFP in the development of the The specific objectives are: SPCS. The Chief Minister then supported a “Policy for the Grant of Concessions of Mining > Investment in environmental rehabilitation, of Limestone in NWFP” and the SPCS resource conservation, and sustainable document’s recommendation for the development in a flexible, transparent, development of a fund. efficient and responsible manner; The main motivation for the fund was to: > Engendering public/private partnerships; and > Institute an innovative and flexible > Facilitating community participation in mechanism of financing environmental maintaining a healthy and productive improvements; environment. Enable and maintain partnerships between The fund has not done any strategic the public, private and independent sectors planning as yet, but plans to upon establishment. for pursuing sustainable development in NWFP; and III. Legal Structure > Complement existing (but limited) sources of The initial idea was to set up the fund funds for environmental protection. through an administrative order of the Government. However, to ensure stability, FSD The fund is not designed to take over the proponents now prefer that the fund be role of government departments or duplicate established by an Act of the Provincial them. Instead, it will be a complementary Assembly. According to the constitution of mechanism focusing on provision of a healthy Pakistan, environmental legislation can be environment, improved social service, poverty enacted by Federal and Provincial Governments. 104 Profiles ofthe NEFS: North West Frontier Province, Pakistan IV. Governance/Administration V. Funding A Sustainable Development Board The fund will be initiated with (SDB) headed by the Chief Minister ofNWFP, modest allocation from the Government’s own with 13 other members including the Minister for resources. Eventually, an amount of US$23.9 Environment, Minister for Finance, Minister for million will be raised for the fund from different Planning and Development, Chief Secretary, sources in three to five years. Funding for FSD is Additional Chief Secretary, Secretary ofEnvi anticipated from three main sources: ronment, Finance Secretary, two representatives each from the Chamber of Commerce and 1. Contribution from the provincial Annual Industry, the NGOs Coalition, and donors, will Development Program (ADP) which govern the fund. envisages an allocation of US$.27 million for Phase I and similar allocations in subsequent The board will be the policymaking body years. for the fund; will commission and consider the audit reports; and review annual reports. It will 2. An environment tax to be levied. This is meet as often as necessary but at least twice a expected to generate about US$.35 million year. The allocation of grants from the fund shall annually. This will mark the beginning of the be neither its prerogative nor its responsibility. fund. Subsequently, the net of environment This is to save the Chief Minister and Ministers levies will be expanded. These levies will be from undue political pressures for grants from collected by the Finance Department that will the fund. make a grant to the fund each year. Eventually, an allocation of US$.49 million There will be a ten-member Citizens per year is envisaged from this source. Advisory Forum (CAF) with membership drawn from the government departments, NGO While determining the items and rates of community, women’s groups and the general the levy, the following considerations are kept in public. The respective organizations will view: nominate representatives on the CAP, which will have a balanced representation of the various > The main purpose of the environment tax is groups. Its main responsibility will be to review to protect the environment, encourage applications for grants according to sustainable use of the province’s resources predetermined criteria approved by the board, and raise funds to finance environmental and to monitor use of the grants. No grant will rehabilitation projects and programs; be made from the fund unless recommended by the CAP. > The burden of the levy should not be on the common person; The fund will have an Executive Director (ED) appointed for a fixed tenure as determined > People and organizations who have the by the board. A small office with modest ability to pay and who are contributing to secretariat support is envisioned. The ED will be environmental degradation should pay; the custodian of the fund, accountable to the CAP and the board. The ED will expend the > The levy should not require new collection fund according to the recommendations of the mechanisms. Thus, it is an addition to the CAP and draw on the fUnd to maintain and existing levies, and the departments operate the executive office. The Annual Budget responsible for those will also collect the will have to be approved by the board along with new levy. a yearly plan of operation. Profiles ofthe NEES: North West Frontier Province, Pakistan 105 3. Major contributions to the fund will come VIII. Relation to National Environmental I from donors through grants and debt-swaps; Plans 4. The FSD will also be open for contributions NWFP-FSD has a direct linkage with the from the Federal Government, international recommendations ofNCS and SPCS as donors and other interested organizations enshrined in the Five-Year Plan. It is also closely and individuals. linked to other major development initiatives. Therefore, FSD forms an integral part of the FSD will essentially be a revolving fund. sustainable development program of the It will receive and spend funds on a recurrent province. basis. The fund aims to reinforce efforts already VI. Fundraising under way through the SPCS, the Social Action Programs, and other initiatives to improve and See above. strengthen the processes for strategic planning and institutional reforms in the Government. VII. Investment Policy IX. Criteria for Grants The fund will have a separate account administered by the Executive Director, under Eligibility: NGOs, research institutions, the overall guidance and supervision of the professional associations, business organizations, I Sustainable Development Board. All grants from community organizations, and others will be the Finance Department, Public Sector Annual eligible to apply to the fund. The government Development Program, donors, and individuals organizations may also draw on the fund for will be credited to this account. The fund will be joint projects with NGOs or the private sector, disbursed according to an approved annual provided the latter are in a lead role. Conflict of budget. interest rules will be put in place to prevent board and CAF representatives from The surplus of the fund may be invested participating in decisions about their own in profitable but readily accessible ventures such applications. as securities. Funding Limits: To be determined by the The fund will be audited annually by a board. certified Chartered Accountant. The report of the audit will be independently reviewed by the Funding Criteria: The criteria guiding the Auditor General of Pakistan, the CAP and the appraisal of requests for grants by the CAP shall board. be consistent with the aims, objectives, approaches and priorities stipulated inthe The FSD will publish an annual report Sarhad Provincial Conservation Strategy incorporating the results of annual audit of (SPCS). These would include: accounts and performance evaluation. This report will be widely circulated in the A. The projects and programs seeking support interest of transparency. from the fund should address one or more of the following aspects of environment: 106 Profiles ofthe NEFS: North West Frontier Province, Pakistan >- Poverty alleviation involving natural resource D. Track record of successful completion of use and conservation; similar projects in the past and/or proven access to technical capacity to implement the > Municipal and hospital waste disposal; proposed project; ) Recycling and waste minimization; E. Innovative projects and projects of strategic importance (e.g. private sector involvement, > Afforestation and forest conservation job creation, etc.); including urban forestry; F. Any other criteria determined by the board. > Environmental health (clean drinking water, sanitation); Application and Approval Procedure: The CAP will design the application and > Biodiversity conservation; approval procedures.
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