MARDAN CITY DEVELOPMENT PLAN MARDAN CITY DEVELOPMENT PLAN Draft Final Report Draft Final Report

Home , Kohi Barmol, Makori, Mardan District, Mardan Division, Mardan Tehsil, Par Hoti

KP-SISUG Sector Road Map – Draft Final Report

Pakistan: Provincial Strategy for Inclusive and

Sustainable Urban Growth in Khyber Pakhtunkhwa

MARDAN CITY DEVELOPMENT PLAN MARDAN CITY DEVELOPMENT PLAN Draft Final Report Draft Final Report

January 2019 February 2019

KP-SISUG Mardan City Development Plan – Draft Final Report

CURRENCY EQUIVALENTS

(as of 01 January 2019)

Currency unit – Pakistan Rupee (PKR) PKR1.00 = $0.0072 $1.00 = PKRs 138.85

ABBREVIATIONS

ADA - Abbottabad Development Authority ADB - Asian Development Bank ADP - annual development program AP - action plan BOQ - bills of quantities BTE - Board of Technical Education CAD - computerized aided design CBT - competency based training CDIA - Cities Development Initiative for Asia CDP - city development plan CES - community entrepreneurial skills CIU - city implementation unit CMST - community management skills training CNC - computer numerical control CNG - compressed natural gas CPEC - China-Pakistan Economic Corridor CRVA - climate resilience and vulnerability assessment DAO - District Accounts Office DDAC - District Development Advisory Committee DFID - Department for International Development (UK) DFR - draft final report DM - disaster management DRR - disaster risk reduction EA - executing agency EFI - electronic fuel injection EIA - environmental impact assessment EMP - environmental management plan EPA - Environmental Protection Agency [of Khyber Pakhtunkhwa] ESMS - environmental and social management system FATA - Federally Administered Tribal Area

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FATA-DA - Federally Administered Tribal Areas Development Authority GIK - Ghulam Ishaq Khan Institute of Engineering and Technology GIS - geographic information system GIZ - Deutsche Gesellschaft für Internationale Zusammenarbeit (gmbh) [German international development agency] GM - General Manager GoKP - Government of Khyber Pakhtunkhwa GoP - Government of Pakistan GPS - global positioning system GRM - grievance redressal mechanism HIES - Household Integrated Economic Survey HR - human resource HRD - human resource development HTV - heavy transport vehicle HVAC - heating ventilation and air conditioning IA - implementing agency ICT - information and communication technologies IEE - initial environmental examination IFIs - international financial institutions IT - information technology KP - Khyber Pakhtunkhwa KP-EZDMC - Khyber Pakhtunkhwa Economic Zones Development and Management Company KPCIP - Khyber Pakhtunkhwa Cities Improvement Project KPPRA - Khyber Pakhtunkhwa Public Procurement Regulatory Authority KSSUP - Khyber Pakhtunkhwa strategic sustainable urban plan LCs-PUGF - local councils provincial unified group of functionaries LGA - local government act LGE&RDD - Local Government, Elections and Rural Development Department [of Khyber Pakhtunkhwa] M&E - monitoring and evaluation MDA - Mardan Development Authority MDTF - Multi Donor Trust Fund MER - monitoring evaluation and research MIS - management information system MNDA - Mansehra Development Authority NAVTTC - National Vocational and Technical Training Commission NCs - neighborhood councils NDMA - National Disaster Management Authority NEQS - national environmental quality standards NER - net enrolment rate NIM - National Institute of Management NIUIP - National Institute of Urban Infrastructure Planning NOC - no objection certificate

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NUML - National University of Modern Language and Sciences NVQF - national vocational qualification framework NVQS - national vocational qualification system O&M - operation and maintenance P&DD - Planning and Development Department [of Khyber Pakhtunkhwa] PAC - public accounts committee PARD - Pakistan Academy for Rural Development PCNA - post crisis needs assessment PDA - Peshawar Development Authority PEFA - public expenditure and financial accountability PER - public expenditure review PFM - public financial management PGD - post graduate diploma PGR - population growth rates PIFRA - project for improvement in financial reporting and auditing PMU - project management unit PPP - public-private partnership PSISUG - provincial strategy for inclusive and sustainable urban growth RAC - refrigeration air conditioning RDP - regional development plan RPL - recognition of prior learning SAMA - services and assets management agreement SAP - strategic action plan SDC - skill development council SDC - Swiss Agency for Development Cooperation SDG - sustainable development goals SECP - Security and Exchange Commission of Pakistan SIPF - sustainable integrated planning framework SME - small and medium enterprises SP - spatial plan SPS - safeguards policy statement [of ADB, 2009] TEVTA - Technical Education and Vocational Authority TMA - Tehsil Municipal Administration TMO - Tehsil Municipal Officer TNA - training needs assessment TOR - terms of reference ToT - training of trainers TTB - Trade Testing Board TVET - technical and vocational education and training UET - University of Engineering and Technology [Peshawar] UN - United Nations UNDP - United Nations Development Program UPS - uninterruptible power supply URA - urban resilience assessments

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USAID - United States Agency for International Development VCs - village councils WB - The World Bank WSSC - Water and Sanitation Services Company WSSP - Water and Sanitation Services Peshawar

NOTES

(i) The fiscal year (FY) of the Government of the Islamic Republic of Pakistan and its agencies ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2019 ends on 30 June 2019.

(ii) In this report, “$” refers to US dollars.

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Contents

A. Introduction ...... 1 A.1. Background ...... 1 A.2. Vision ...... 1 A.3. Report outline ...... 1 A.4. Sustainable planning approach ...... 2 B. The City and Regional Context ...... 5 B.1. Physical and environmental setting ...... 5 B.2. Socio-economic setting ...... 6 B.2.1. Employment...... 6 B.2.2. Poverty ...... 7 B.2.3. Education ...... 7 B.2.4. Health ...... 8 B.3. Regional influences and linkages ...... 9 B.4. Future opportunities and economic conditions...... 10 C. Key Factors and Drivers for Urban Development in the City ...... 13 C.1. National and provincial plans, planning policies and strategies ...... 13 C.2. Population growth and demographic factors ...... 14 C.2.1. Push and pull factors ...... 15 C.2.2. Analysis of population patterns ...... 15 C.2.3. Projections of population growth ...... 17 C.3. Land use and physical planning ...... 18 C.3.1. Pattern of growth and regional potential ...... 18 C.3.2. Existing spatial structure and land use in Mardan ...... 18 C.3.3. Urban expansion...... 20 C.4. Ongoing developments ...... 21 C.5. Planned or future developments ...... 21 C.6. Climate change and disaster resilience ...... 22 D. Analysis and Needs Assessment ...... 23 D.1. Present infrastructure and municipal service levels ...... 23 D.1.1. Water supply ...... 23 D.1.2. Sewerage and drainage ...... 26 D.1.3. Solid waste ...... 27 D.1.4. Other infrastructure ...... 30 D.2. Current institutional and organizational arrangements for service delivery ...... 31 D.3. Assessed future requirements and needs ...... 32

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D.3.1. Population projections ...... 32 D.3.2. Land development and land allocation ...... 33 D.3.3. Expansion of the area classified as urban ...... 34 D.3.4. Target levels of municipal service delivery ...... 35 D.3.5. Funding of municipal services and investments ...... 37 D.3.6. Public sector governance...... 38 D.3.7. Capacity development ...... 38 E. Strategic Action Plan For Urban Development ...... 41 E.1. Integrated urban sector development and spatial planning ...... 41 E.1.1. Key planning principles and application ...... 41 E.1.2. Integrated urban sector development...... 43 E.2. Strategic priorities and actions ...... 45 E.2.1. Key infrastructure investments and priorities ...... 46 E.2.2. Sustainable service delivery ...... 57 E.2.3. Public sector governance and reforms ...... 60 E.2.4. Capacity development ...... 62 E.2.5. Disaster and climate change risk management ...... 63 E.3. Action plan ...... 64 E.3.1. Short-term (up to 2025)...... 65 E.3.2. Medium-term (up to 2030) ...... 71 E.3.3. Long-term (up to 2035) ...... 75

TABLES

Table 1: Educational institutions in Mardan District 7 Table 2: Enrolment, transition and survival rates in public and private schools in Mardan District (2017-18) 8 Table 3: Number and types of health facilities in Mardan District as of 2017 9 Table 4: Approximate increase in jobs 12 Table 5: National and provincial policies, legislation and guidelines relevant to urban planning 14 Table 6: Trends in urban growth from 1998 to 2017 in Mardan Tehsil 16 Table 7: Area, population, density and household size in Mardan Tehsil (2017) 16 Table 8: Mardan urban tehsil population projections and growth rates[1] 17 Table 9: Trends in urban growth in Mardan Tehsil from 1998 to 2017 21 Table 10: Municipal water supply system under WSSCM responsibility 24 Table 11: Recorded active water connections for the month of Sep 2018 25 Table 12: Current operational collection and street cleansing fleet, WSSC Mardan 28

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Table 13: Population projections 2019 to 2035 for the current urban area 32 Table 14: Population projections and city area requirement for the currently designated urban areas (47.71 km2) 33 Table 15: Population projections and city area requirement for the expanded urban areas in future (120.45 km2) 33 Table 16: Potential expansion of the urban limit 34 Table 17: Population projections 2019 to 2035 for the expanded city limits (120.45 km2) 35 Table 18: Proposed target service levels for municipal water supply 36 Table 19: Proposed target service levels for municipal sewerage system 36 Table 20: Proposed target service levels for management of municipal solid waste 37 Table 21: Areas proposed for capacity building 39 Table 22: Principles for sustainable and integrated urban planning 41 Table 23: Projected potable water demand for Mardan urban areas[1] 46 Table 24: Projected water production requirement to serve Mardan urban areas[1] 47 Table 25: Projected infrastructure requirements based on abstraction of groundwater 48 Table 26: Assessed length of existing and future pipe network[1] in Mardan urban areas 49 Table 27: Estimated length of sewer network required to be developed[1] 50 Table 28: Sewage treatment capacity and projected flows 51 Table 29: Projected waste generation and collection (tons per day) 52 Table 30: Preliminary assessment of potential equipment requirements for waste collection 53 Table 31: Treatment and disposal requirements for municipal solid waste 55

FIGURES

Figure 1: Overview of key issues and constraints in the urban sector 4 Figure 2: Existing land use within Mardan urban area (Total = 53.5 km2) 20 Figure 3: HR productivity ratio for WSSC Mardan (2018) 40 Figure 4: Conceptual framework for integrated urban sector development 43 Figure 5: Conceptual urban development model for Mardan city 44 Figure 6: Revenue and expenditure for WSSC Mardan vis-à-vis urban population 58

MAPS

Map 1: Khyber Pakhtunkhwa – administrative units 80 Map 2: Mardan District – union councils 81 Map 3: Mardan District – girded population 82

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Map 4: Mardan District – communications network 83 Map 5: Mardan District – built-up area 84 Map 6: Mardan District – unbuilt area 85 Map 7: Mardan District – elevetion 86 Map 8: Mardan District – geology 87 Map 9: Mardan District – hydrology 88 Map 10: Mardan District – river basins 89 Map 11: Mardan District – slope profile 90 Map 12: Mardan District – soil profile 91 Map 13: Mardan District – topography 92 Map 14: Mardan Tehsil – population density of union councils 93 Map 15: Mardan City – urban area 94 Map 16: Mardan City – urban union councils 95 Map 17: Mardan City – land use 96 Map 18: Mardan City – girded population 97 Map 19: Mardan City – communications network 98 Map 20: Mardan City – current urban sprawl 99 Map 21: Mardan City – dwelling units 100 Map 22: Mardan City – current social infrastructure 101 Map 23: Mardan City – current transport infrastructure 102 Map 24: Mardan City – current tube wells 103 Map 25: Mardan City – current water pumps 104 Map 26: Mardan City – current overhead tanks 105 Map 27: Mardan City – current water filteration plants 106 Map 28: Mardan City – current sewage and drainage infrastructure 107 Map 29: Aerial viw of current non-functional sewage treatment plant # 1 in Mardan 108 Map 30: Mardan City – current solid waste management infrastructure 109 Map 31: Mardan City – administrative jurisdiction for municipal services 110 Map 32: Mardan City – proposed infrastructure 111

APPENDICES

Appendix 1: District at a glance 112 Appendix 2: Urban sector stakeholders in Khyber Pakhtunkhwa 113 Appendix 3: Demographic parameters of Mardan District 114 Appendix 4: Population and demographic analysis 121 Appendix 5: Financial public expenditure review 132

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Appendix 6: Institutional and organizational assessment 137 Appendix 7: Capacity builing need assessment and strategy 160 Appendix 8: Climate and disaster risk assessment 167

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Executive Summary

The City Development Plan (CDP) for Mardan aims to promote sustainable city development through integrated and coordinated planning. The CDP for Mardan addresses the key urban development challenges taking into consideration the regional influences and interactions of Mardan in alignment with international urban planning principles. The CDP provides a 15-year planning framework to deliver a better balance between social, economic, environmental and infrastructure physical development, integrating cross-cutting issues with spatial planning.

Mardan, one of the six divisional headquarters in the Khyber Pakhtunkhwa province of Pakistan, is the third most populated city and second most populated district of the province. The population in the urban area of Mardan district is 439,325, with a growth rate of 2.58% between 1998-2017, which is higher than the national average of 2.40% but lower than the provincial average of 2.89%.

Population growth rates over the past two decades have been faster in rural and peri- urban areas than those in urban areas. Consequently, the percentage of the total population living in urban Union Councils (primarily Mardan City) has declined. Seven rural UCs are peri- urban with urbanizing agglomerations and account for a significant portion of the total tehsil population (22.9% in 2017). These UCs show a rapid rise in population from 1998 to 2017, absorbing much of the rural to urban migration as well as out-migration of urban population from the city.

Mardan City comprises a compact and densely populated urban core (city center and adjacent fringe areas), with outlying scattered urbanized nodes among agricultural lands. Beyond the official city limits the urbanization of the rural parts of the tehsil, often in the form of slum developments, is consuming prime agricultural land and giving rise to extensive urban sprawl. The latter form of development is characterized by inefficient land utilization, a high cost for providing infrastructure, a lack of basic water, sanitation and health infrastructure, and a lack of secure tenure. A critical challenge facing Mardan is the expansion of the urban sprawl into the surrounding agricultural area, which is a valuable resource for Pakistan.

Basic municipal services are provided by the Water Supply and Sanitation Company (WSSC) Mardan only to the urban UCs in Mardan City. No municipal services are provided to the rural UCs (peri-urban areas) on the margins of the city.

The provision of municipal services, even within the current service area, is relatively poor, and non-existent outside of this area:

• Potable water supply: relies solely on groundwater, water supply is intermittent, with less than 1 hour’s storage capacity, estimated production is 57 liters per capita per day and estimated system losses are 45% of produced water. Water quality is poor at the point of consumption, often contaminated by faecal matter. Less than 60% of the population is served; • Sewerage and drainage: the existing drainage system is a combined drainage-cum- sewerage system conveying surface water drainage, untreated sewage, waste water and industrial effluents, including hazardous chemicals. There is no functional sewage network nor treatment prior to discharge to land or to surface water courses. 0% of the population served; and

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• Solid waste management: current equipment is insufficient to collect the estimated 250 tons per day of waste generated, only approximately 70-80% of the waste is collected. Uncollected waste is burnt or dumped to land or into the drainage system. Collected waste is disposed to a series of open dumps within the city limits. There is no sanitary landfill or other forms of waste treatment.

Population projections, based on regression analyses using the 1981, 1998 and 2017 census results, have been made for 2025, 2030, 2035, representing potential low, medium and high growth scenarios. By 2035, the population of Mardan city is projected to have increased from 358,604 (2017 census) to between 461,917 (low) and 573,314 (high), with projections made on intercensal growth rates at 535,801; these projections indicate a likely increase of between 28.8% (low) and 59.9% (high) over the 2017 population.

These projected population increases will place severe demands upon already stressed services and infrastructure.

The CDP proposes that city planning authorities will need to:

• Consolidate the role of the city centre and increase urban density in the built-up areas in line with planning standards and norms; • Increase the use of the city floor area for economic use, roads, parking, and public spaces and increase the density in current residential areas, including by building up; • Discourage and/or preclude the conversion of productive agricultural land adjacent to and beyond the Ring Road; • Prohibit development on any land that would impede drainage or is vulnerable to flooding; • Plan future urban expansion towards the south of the District, between Charsadda Road and Nowshera Road, and also towards east of Nowshera Road, and within the southern segment of ring road1 to take advantage of opportunities such as regional development corridors, SEZs and transportation infrastructure; • Change the demarcation of city boundaries to incorporate appropriate peri-urban nodes; and • Increase the proportion of public spaces to at least 15 to 20% in line with international planning norms.

The CDP envisages the expansion of the urban limits to include the urbanized parts of seven rural UCs that are the focus currently of rapid growth. The enlarged urban area would extend to 120.45 km2 from 47.71 km2 currently. The aim of the expansion is to consolidate and formalize these areas as part of the city, whilst at the same time avoiding further uncontrolled urban sprawl. Growth should be directed to existing urban nodes by densifying and intensifying development in these nodes and providing transportation links between the nodes and the core of the city. Growth should be planned and focused on discrete areas of existing urban agglomerations.

The CDP envisages the extension of basic municipal services to all of the area within the expanded urban limits as being a high priority, to be undertaken in a phased (step-

1 Government of Khyber Pakhtunkhwa. 2013. “Land-use Plan: District Mardan (Draft).” Peshawar: Urban Policy Unit, Planning & Development Department, GoKP.

xi KP-SISUG Mardan City Development Plan – Draft Final Report wise) and progressive manner. Extension of services to the current urban area should be the focus of initial investments, followed by expansion into the peri-urban areas.

Priority areas for intervention are identified for:

• Infrastructure (municipal services, transportation and public spaces); • Service delivery; • Public sector governance; • Capacity development; and • Disaster and climate change risk management

The CDP identifies an urgent need to improve water supply by: (i) upgrading water production capacity; and (ii) in parallel, upgrading the distribution system to reduce losses from unaccounted for water and to ensure water quality is fit for consumption at the point of delivery. Details on infrastructure requirements to meet the projected potable water demand up to 2035 are summarized in the CDP.

A new sewer system will need to be established with the following components: (i) trunk (primary) sewers; (ii) tertiary lines connecting to individual properties; and (iii) secondary sewers linking the tertiary connections to the trunk lines. In parallel, it is necessary to develop suitable treatment capacity, to be expanded as the sewage network is developed. Further details on the infrastructure requirements for sewerage are presented in this CDP.

Solid waste systems will need to be expanded and developed by: (i) upgrading the collection system to facilitate mechanical loading of waste into more efficient collection vehicles from compatible containers; (ii) developing the landfill site south-west of the city to provide a facility for the secure and sanitary disposal of solid waste; (iii) over time, exploring alternative treatment options for managing the waste stream. More details on the proposed actions for solid waste are presented in this CDP.

In terms of service delivery for potable water, currently user charges for domestic and commercial connections are collected on a “flat rate” basis in Mardan. The CDP proposes to develop the water supply services by gradually installing meters at user level. Other proposals in this CDP include reduction of non-revenue water, improved communication with customers, development of additional resources and the development of regulatory capacity to support the WSSCM.

Finally, in terms of climate change, there are five main impacts for Mardan that can be derived from available urban resilience and climate change assessments. These are:

1. Increased drinking water demand due to increases in temperatures and decline in ground and surface water availability leading to drought-like conditions. 2. Increased flooding from storms and heavy rainfall resulting in damages to life and assets. 3. Increased mortality and morbidity in the region due to increased water runoff from storms which will increase the incidence of vector-borne diseases. 4. Crop failure in surrounding peri-urban areas that could reduce regional food security. 5. Increased demand for climate-resilient infrastructures such as power plant, roads and other communication infrastructures, along with drainage and stormwater management systems.

The CDP includes proposed measures to address these impacts.

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A. INTRODUCTION

A.1. Background

1. Major cities in Pakistan have experienced rapid urbanization, with an average urban population growth of 4% per year since 1951. By 2030, it is estimated that about 60% of the country’s population will live in urban areas, of which twelve large cities will each have a population of more than 1 million inhabitants.

2. Notwithstanding that economic activities in urban areas produce more than 75 percent of national income (gross domestic product), more than 15 percent of the urban population lives in poverty. Overall the urban infrastructure is inadequate and is aging, with insufficient investments to maintain basic services or stimulate economic growth and create jobs.2

3. A lack of strategic planning combined with inappropriate regulation, weak planning standards, and inefficient resource allocation, has resulted in major urban problems across Pakistan. A summary of key urban sector issues is provided in Figure 1. As the government’s ability to address these challenges is limited, these conditions have contributed to high levels of socio-economic deprivation and constrained productivity and economic growth in urban areas.3

4. The Asian Development Bank’s (ADB’s) country partnership strategy for Pakistan (2015–2019) has stated that ADB will support the government’s priorities for urban renewal, with improved infrastructure and institutions for municipal services at national, provincial, and city-level. In November 2016, ADB approved the policy and advisory technical assistance on Provincial Strategy for Inclusive and Sustainable Urban Growth (PSISUG) in Khyber Pakhtunkhwa (KP) Province4 with the following four primary outputs:

i. Development of a new roadmap document for the urban sector; ii. Preparation of Regional and City Development Plans (RDPs/CDPs); iii. Capacity building program to relevant stakeholders; and iv. Mainstreaming innovations in the urban sector. A.2. Vision

5. The City Development Plan (CDP) for Mardan aims to promote sustainable city development through integrated and coordinated planning in order to regularize the city’s future physical development, promote economic growth and ensure adequate and improved levels of municipal services through necessary and essential investments in infrastructure. A.3. Report outline

6. The City Development Plan for Mardan addresses the key urban development challenges taking into consideration the regional influences and interactions of Mardan in alignment with international urban planning principles. The CDP provides a 15-year planning framework to deliver a better balance between social, economic, environmental and

2 ADB. 2015. Country Partnership Strategy: Pakistan, 2015–2019. Manila: Asian Development Bank. 3 International Growth Centre. 2015. Reclaiming Prosperity in Khyber Pakhtunkhwa: A Medium-Term Strategy for Inclusive Growth. London: IGC. F-37109-PAK-1. 4 TA 9223-PAK: Provincial Strategy for Inclusive and Sustainable Urban Growth.

1 KP-SISUG Mardan City Development Plan – Draft Final Report infrastructure physical development, integrating cross-cutting issues (such as climate change and community resilience, urban-rural planning, regional connectivity, poverty, gender and social issues) with spatial planning.

7. This City Development Plan (CDP) is set out as follows:

• Section A identifies the key principles of a sustainable planning approach, as defined by international norms, and which underpin the preparation of this CDP; • Section B provides the physical, environmental and socio-economic contexts of Mardan; • Section C examines the key factors and drivers that are likely to influence Mardan’s future growth, such as its planning processes, demographic trends, land use and developments and climate change and resilience; • Section D summarizes the findings of sector assessments undertaken under the present assignment of infrastructure and municipal services, land allocation, institutional arrangements, public sector governance and institutional capacities, together with analyses of projected future needs; and • Section E sets out a strategic action plan for Mardan’s future development over next 5, 10- and 15-year timeframes, identifying priority areas for investment, organizational and institutional reforms and a vision for Mardan’s spatial development. A.4. Sustainable planning approach

8. The United Nations’ New Urban Agenda (NUA)5 asserts that the city system and urban planning play a crucial role in managing and achieving the 17 Sustainable Development Goals (SDG) – these focus mainly on setting global city planning standards, and spatial urban planning and design tools. Hence, the NUA stresses the importance of adopting a Sustainable Planning Approach to deliver sustainable development. A sustainable planning approach is a planning process whereby the development of long-term integrated urban and territorial planning and design strategies and spatial frameworks produce positive outcomes for economic development, infrastructure efficiency and the environment.

9. The Government of Pakistan adopted policy initiatives and measures with the National report of Pakistan for Habitat III6 and the Pakistan 2025 – One Nation One Vision – on implementing the NUA. The key issues identified included land and urban planning reform, economic growth, smart design and planning, development of integrated planning, urban resiliency, and urban governance reform. The Government of Khyber Pakhtunkhwa’s Comprehensive Development Strategy 2010-2017 emphasizes urban public services, including water, sanitation, drainage, streets, and the public infrastructure required to accommodate private services in transport, agriculture, and trade.

10. The principles of the sustainable planning approach as outlined in the NUA include:

• Public Participation – Providing safe, equal access for all to physical and social infrastructure, basic services, service delivery and decision-making;

5 UN. 2017. New Urban Agenda. New York: Habitat III Secretariat, United Nations. 6 Government of Pakistan. 2015. National Report of Pakistan for Habitat III. Islamabad: Ministry of Climate Change, GoP.

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• Urban Economies – Ensuring sustainable and inclusive urban economies by leveraging the clustering and agglomeration of well-planned urbanization, including competitiveness, innovation and secure land of tenure; • Urban Sustainability – Promoting clean energy, sustainable use of land and resources, protecting the ecosystem, managing urban sprawl, and building city resiliency by reducing disaster risks and mitigating climate change; • Urban Governance – Strengthening institutions and financial mechanism in cities that include stakeholders, as well as providing coherence in urban development plans to enable social inclusion, sustainable economic growth and environment protection; and • Financing Framework – Promoting effective, innovative, and sustainable financing frameworks and instruments that will enable strengthened municipal finance and local fiscal systems in order to create, sustain, and share the value generated by sustainable urban development in an inclusive manner.

11. Applying the sustainable planning approach requires the sector road map and each city development plan to address the following concerns:

• Facilitate government, stakeholders and civil society to re-consider urban sustainability throughout the planning process and foster improved coordination across urban sectors; • Aim to achieve urban sustainability, community resiliency and improved service delivery; • Inform decision makers on priorities for policy setting and urban sector investment; • Promote financial sustainability of infrastructure assets through improved operation and maintenance (O&M), and innovative mechanisms for financing infrastructure delivery; and • Ensure a robust spatial planning process that produces spatial plans that identifies potential areas and zones for developing and operating physical assets over the planning horizon.

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Figure 1: Overview of key issues and constraints in the urban sector

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B. THE CITY AND REGIONAL CONTEXT

B.1. Physical and environmental setting

12. Mardan, one of the six divisional headquarters in the Khyber Pakhtunkhwa province of Pakistan, is the third most populated city and second most populated district of the province having a population density of 1,454 persons/km2. The Mardan district is spread over 1,632 km2 with a total population of 2,373,061 (7.77% of the province) in 2017. The urban population (439,325) constitutes only 18.51 percent of the Mardan District population. This constitutes around 7.48% of the provincial urban population.7 It is located on the national highway (N-45) heading towards Chitral and also connects to the national highway (N-95) heading to Swat and lies at the confluence of many intercity roads. It is connected by road and rail with Dargai (Malakand Pass), Nowshera, and Peshawar (50 km south-southwest). Mardan has been expanding in all directions, particularly along Nowshera Road and Malakand Road.

13. Geographically, Mardan District is bound by Malakand District in the northwest, District Charsadda in the west, District Nowshera in the south, District Swabi in the southeast and District Buner in the northeast. The district lies at 71°125’, 34°528’ (North), 71°824’, 34°361’ (West), 71°142’, 34°078’ (South) and 72°434’, 34°381’ (East) at an altitude of 310 meters above sea level. Mardan City lies 285 meters above sea level, towards the southern part of the District.

14. Administratively, the Mardan District is divided into three tehsils, i.e., Mardan, Katlang and Takhat Bhai. Mardan District was divided into 75 union councils until 2013. The District is now divided into 178 village councils in rural areas and 53 neighborhood councils in urban areas. Mardan Tehsil comprised 46 union councils (UCs) out of which 15 were designated as urban, including the Mardan cantonment area. The District has two main urban settlements: Mardan City and Takht Bhai. Takht Bhai lies towards western part of the District and towards the north-west of Mardan City. The district government is headed by District Nazim while the tehsils are headed by Tehsil Nazims.

15. Climatically, Mardan features a hot semi-arid climate (Köppen BSh). The average temperature in Mardan is 22.2°C, while the annual precipitation averages 559 mm. October is the driest month with an average rainfall of 12 mm, while the wettest month is August, with an average 122 mm of precipitation. June is the hottest month of the year with an average temperature of 33.2°C. The coldest month January has an average temperature of 10°C.8

16. Mardan district extends north of the Kabul River, comprising the greater portion of the Yusufzai plain. Mardan district’s character is still predominantly rural and its agricultural output is significant. It has one of the largest areas under cultivation in Khyber Pakhtunkhwa (99,841 hectares in 2016/17 or about 61% of the district area), and also one of the largest irrigated areas in the province. The chief crops are wheat, maize, barley, some rice, sugarcane, tobacco, and a large variety of vegetables and fruits.9 Marble deposits are found in the hills.

7 Government of Pakistan. 2017. Provisional Summary Results of 6th Population and Housing Census 2017. Islamabad: Pakistan Bureau of Statistics, GoP. 8 https://en.wikipedia.org/wiki/Mardan. 9 Government of Khyber Pakhtunkhwa. 2017. Crop Statistics 2016-2017. Available at http://kp.gov.pk/uploads/2018/09/Crop_Statistics_KP_2016-17.pdf. Accessed 12 Jan 2019.

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17. The total urban area of Mardan City is about 47.71 km2; approximately 2.9 percent of the district area (1,632 km2).10 Mardan City has a long history as a settlement with its origins traced back to the Gandhara civilization of 1,500 BCE to around 500 CE. Mardan is known for its archaeological sites—Takht Bahi, Jamal Ghari and Shahbaz Garhi.

18. Like many other cities in Khyber Pakhtunkhwa, Mardan is prone to floods from main nullahs, rivers and streams, which are exacerbated by the expansion of paved and roofed surfaces, as well as poorly maintained and inadequate drainage systems. A critical challenge facing Mardan is the expansion of the urban sprawl into the surrounding agricultural area, which is a valuable resource for Pakistan. B.2. Socio-economic setting

B.2.1. Employment

19. Mardan City is part of a regional urban agglomeration comprising the districts of Peshawar, Charsadda, Mardan and Nowshera. Currently, around 27.9 percent of the province’s total population, and 51.1 percent of the urban population, is concentrated in these four districts.11 With the right investments in strengthening regional connectivity and road networks, and developing agglomerate markets, there is potential to develop this agglomeration as a hub of economic activity and employment generation.

20. Agriculture continues to be the economic base of Mardan, with most of the population engaging in agriculture either directly or indirectly. There is potential to expand agricultural- related enterprises and services in Mardan. Mining and manufacturing are also important sectors in the local economy. Mardan is part of a growing industrial center. The city is home to textile and vegetable oil mills, as well as one of the largest sugar refineries in South Asia. Its industries also include the Pakistan Railways Locomotive Factory, small to large cigarette manufacturing industries, as well as flour, marble and paper mills.12 Several financial agencies (banks) have established their presence in the city. While Mardan has some tourism potential with its unique Buddhist historical sites, this can only be explored once the security situation improves.

21. Mardan has also emerged as Khyber Pakhtunkhwa's major resettlement center. The favorable climate of the city and its perceived security as a garrison town have made Mardan a popular relocation destination for military retirees and families from smaller towns and rural areas. It also serves as an emergency center in times of earthquakes and other disasters in surrounding districts, and even for those fleeing deteriorating security conditions in other parts of Khyber Pakhtunkhwa.

22. It will be crucial for Mardan City to develop in the right direction with improved services and civic facilities in order to accelerate growth, attract additional capital investment, and create extra job opportunities for local youth who currently constitute about 40 percent of the entire population. The economic zone being developed as a part of the multibillion-dollar China-Pakistan Economic Corridor (CPEC) near Rashakai in Nowshera District is expected to generate employment, given the proximity of Rashakai to Mardan.

10 As calculated by the project consultant using GIS. 11 Government of Pakistan. 2017. Provisional Summary Results of 6th Population and Housing Census 2017. Islamabad: Pakistan Bureau of Statistics, GoP; and extrapolation by the project consultant. 12 http://kpktribune.com/index.php/en/economy-and-livelihood/76-khyber-pakhtunkhwa/kp-divisions/mardan

6 KP-SISUG Mardan City Development Plan – Draft Final Report

B.2.2. Poverty

23. Data on poverty headcount ratio based on household consumption is not available for the districts. The poverty profile prepared by Benazir Income Support Program, which was based on poverty scorecard surveys in 2010-11, divided districts into five poverty bands: (i) least poor, (ii) vulnerable, iii) poor, (iv) very poor, and (v) extremely poor. According to this study, Mardan was ranked as a poor district with poverty incidence estimated at 36.41 percent of households.

24. Measured in the three core dimensions of education, health and living standards (multidimensional poverty), Mardan’s population appears to be enjoying a slightly higher standard of wellbeing compared to the national average. The Multidimensional Poverty Index (MPI) for Mardan was 0.153 in 2014-15, with the incidence (headcount ratio) of multidimensional poverty estimated at 33.8 percent. Pakistan’s corresponding MPI and headcount ratio were 0.197 and 38.8 percent, respectively for the same year, while Khyber Pakhtunkhwa’s MPI and headcount ratio were 0.250 and 49.2 percent. Nonetheless, this still means that one-third of Mardan’s population is defined as multidimensionally poor.13

B.2.3. Education

25. The government is the largest provider of education. The statistics of public schools are published annually by the Elementary and Secondary Education Department at provincial level. These reports also include estimates of enrolment in private schools (Table 2). According to the Annual Statistical Report 2017-18,14 from primary to higher secondary level, girls’ schools account for only 43 to 55 percent of all public schools in Mardan (Table 1).

Table 1: Educational institutions in Mardan District Education Institutions Government Schools 2016-17 Private Schools Boys Girls Total % Girls’ Schools 2013 Primary Schools 803 616 1,419 43.4% 170 Middle Schools 80 96 176 54.5% 134 High Schools 87 80 167 47.9% 121 Higher Secondary Schools 37 30 67 44.8% 33 Degree Colleges 9 8 17 47.1% - Postgraduate College 1 1 2 50.0% - Mosque/Maktab Schools - - 41 - - Source Government of Khyber Pakhtunkhwa. 2018. Annual Statistical Report of Government Schools 2017-18. Peshawar: Department of Elementary & Secondary Education, GoKP. Government of Khyber Pakhtunkhwa. 2013. Annual Statistical Report of Non-Governmental Schools, Khyber Pakhtunkhwa. Peshawar: Department of Elementary & Secondary Education, GoKP. Government of Khyber Pakhtunkhwa. 2018. Development Statistics of Khyber Pakhtunkhwa 2018. Peshawar: Bureau of Statistics, Planning & Development Department, GoKP. Note: Mosque/maktab schools are established by the government in mosques up to primary level. Along with boys, some girls are also admitted in these schools.

13 Government of Pakistan. 2015. Multidimensional Poverty in Pakistan. Islamabad: Planning Commission of Pakistan, GoP, UNDP and Oxford Poverty & Human Development Initiative. 14 Government of Khyber Pakhtunkhwa. 2018. Annual Statistical Report of Government Schools 2017-18. Peshawar: Department of Elementary & Secondary Education, GoKP.

7 KP-SISUG Mardan City Development Plan – Draft Final Report

26. The educational statistics show that Mardan’s educational system performs better than the provincial average. Enrolment and transition rates in Mardan’s schools are consistently higher at every level than provincial enrolment rates are. However, much improvement is still needed. Gender disparities are stark: less girls enroll than boys, and with increasing grade, more girls drop out relative to boys. At primary level, only 82 girls are enrolled for every 100 boys; and this drops to 60 girls for every 100 boys at secondary level. Compared to boys, less girls make their way through the primary school system up to Class 5: for every cohort that enters primary school, only 84 out of 100 boys and 54 out of 100 girls make it to Class 5: the rest either drop out or stay behind in the lower classes (Table 2).

27. The difference between gross enrolment ratio (GER) and net enrolment rates (NER) at both primary and secondary levels in Mardan indicates inefficiencies in the educational system, such as repetition and overage children. The difference is 21 percentage points for primary education, and 14 percentage points for secondary education (Table 2).

Table 2: Enrolment, transition and survival rates in public and private schools in Mardan District (2017-18) Gross Enrolment Ratio (%) GPI Net Enrolment Rate (%) GPI Boys Girls Total Boys Girls Total Primary (Age group 5-9 years), public and private schools Mardan District 105 86 96 0.819 85 65 75 0.765 Khyber Pakhtunkhwa 102 76 89 0.745 79 57 68 0.722 Secondary (Middle and High, age group 10-14 years), public and private schools Mardan District 62 37 50 0.597 45 25 36 0.556 Khyber Pakhtunkhwa 55 32 44 0.582 40 23 32 0.575 Class 5 to Class 6 Transition Rate (%), public schools only Mardan District 91.79 87.88 90.10 0.957 Khyber Pakhtunkhwa 86.50 88.91 87.45 1.028 Survival rate to Class 5 (%), public schools only Mardan District 84.16 54.41 68.17 0.647 Source Government of Khyber Pakhtunkhwa. 2018. Annual Statistical Report of Government Schools 2017-18. Peshawar: Department of Elementary & Secondary Education, GoKP. Note: At primary level, deeni madaris/institutions are included.

B.2.4. Health

28. Mardan has 83 health facilities, including hospitals and rural health centers, with a combined strength of 826 beds. The hospitals are located in Mardan City and two other urban settlements. Rural health centers, basic health units and dispensaries provide services in rural areas.

29. It is difficult to assess health infrastructure adequacy without comprehensive data on private clinics and maternity centers for which statistics are not available. Table 3 shows that Mardan’s health facility density (3.41) is below the national average, which could be due to the missing data from private facilities. Likewise, the estimation for beds per 100,000 population is about half the national average, which itself is below the world average.

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Table 3: Number and types of health facilities in Mardan District as of 2017 Health Institutions Number of Number Health Facilities per Beds per 10,000 Health of Beds 100,000 Population[3] Facilities Population[3] Hospitals 10 752 0.42 3.17 Govt. Hospitals 8 752 0.34 3.17 Private Hospitals[1] 2 - 0.08 - Rural Health Centers 4 74 0.17 0.31 Basic Health Units 49 - 2.06 - Dispensaries 18 - 0.76 - Maternal and Child Health 2 - 0.08 - Centre TB Clinic 1 - 0.04 - Leprosy Centre 1 - 0.04 - Total 85 826 3.58 3.48 National average for Pakistan, - - 4.87 6.0 2013, all health facilities[2] National average for Pakistan, - - 0.53 6.0 2013, hospitals only[2] World Average - - - 30.0 Source: Government of Khyber Pakhtunkhwa. 2018. Development Statistics of Khyber Pakhtunkhwa 2018. Peshawar: Bureau of Statistics, Planning & Development Department, GoKP. WHO Global Health Observatory Data Repository: Health Infrastructure Data by Country http://apps.who.int/gho/data/view.main.30000 and http://apps.who.int/gho/data/node.main.HS07?lang=en (accessed 2 February 2019). Notes: [1] There may be other private hospitals, not recorded by the Bureau of Statistics, GoKP. [2] For the Pakistan national average, WHO statistics are used to ensure comparability with other countries. [3] All calculations for Mardan are made on the basis of district population 2.373 million (2017 census). B.3. Regional influences and linkages

30. For regions and cities, enterprise development is particularly important in order to increase employment and generate income. With insufficient enterprise development, high prevalence of subsistence-level agriculture, and inadequate technical and vocational facilities, Mardan and surrounding regions suffer from widespread poverty.

31. Khyber Pakhtunkhwa’s relatively young population means that the province is poised to reap a “demographic dividend”15 leading to increased labor supply and savings, economic growth, and poverty alleviation. On the other hand, the demographic dividend will only be realized if timely interventions are made in the education, health, and labor sectors.

32. Further rural-urban migration and urbanization will lead to higher income if manufacturing and services grow fast enough to absorb the supply of labor. This is an issue that needs to be addressed both nationally and at a provincial level. Pakistan will have to invest in many cities at the same time to ensure a more geographically balanced rate of urbanization and the creation of a system of cities—an efficient network of urban centers

15 Demographic dividend is the growth in income per capita that results when the share of working age individuals in a population rises relative to dependents.

9 KP-SISUG Mardan City Development Plan – Draft Final Report whose manufacturing and services industry are connected. Harnessing and promoting this approach of “system of cities” will lead to faster job creation and higher growth of productivity.16

33. Access to credit is critical for the rural poor. Recent years have seen improved credit availability, largely through the intervention of rural support programs (RSPs) and NGOs. Financial institutions, too, have become more amenable to the idea of microfinance but the capacity to utilize credit optimally is still lacking among many communities. Credit facilities have focused on traditional activities such as livestock rearing, commercial establishments (mainly shops and public call offices) and agriculture. Despite high interest rates, poor returns and a focus on already saturated sectors, microcredit extension has so far been one of the successful interventions towards poverty alleviation.

34. Since economic growth is linked to stability, security concerns and the protracted crisis in the region have reduced the influence of Peshawar as an economic hub. Mardan has suffered from the decline of Peshawar, since Peshawar drives the economy of the region. As a perceived safer environment, Mardan may benefit from a transfer of activities from Peshawar, but only to a limited extent. It is difficult to compute the economic losses resulting from the volatility in regional security.

35. Large scale economic development and road infrastructure schemes in the region offer strong prospects for growth and employment generation. The creation of the China-Pakistan Economic Corridor (CPEC), still in the pipeline, will upgrade regional transport links and shape new economic zones and settlement patterns. Related projects include the Peshawar Circular Railway – an inter-regional commuter railway system expected to strengthen the economic conurbation of the Peshawar region by connecting Peshawar to the outlying cities and suburbs of Charsadda, Mardan and Nowshera and potentially Swabi. A Mardan-Malakand Expressway and a proposed Peshawar-Kabul motorway link will also strengthen regional connectivity for economic integration, and influence spatial patterns.

36. Mardan’s economic growth potential is hampered by a scarcity of skilled labor, lack of capital, and weak governance. The district is unable to grow its industrial base due to poor access to technology and skilled labor. B.4. Future opportunities and economic conditions

37. Future opportunities are the key mechanism through which the benefits of growth can be distributed to the poorer segments of society. Thus, access to decent, fairly paid work is vital in the process od reducing poverty and income inequality. Provision of employment opportunities depends upon available resources, a stronger technological base, and institutional strategies. Similarly, human resources, skills, and technical competency determine the outcomes of employment, which contributes to achieving sustained economic growth.

38. As previously explained, agriculture is the major component of the economy which generates significant employment and ensures social harmony. It has multi-dimensional direct and indirect linkages, which have spillovers effects on the economy. The industrial sector generates demand for agricultural produce to be used as raw materials and also supplies machines and tools to modernize other sectors of the economy. It is a major source of tax

16 WB. 2014. Pakistan Urban Sector Assessment: Leveraging the Growth Dividend from the Urbanization Process. Islamabad: The World Bank.

10 KP-SISUG Mardan City Development Plan – Draft Final Report revenues and contributes to the provision of job opportunities for the urban and rural labor force.

39. Various services in urban areas such as transport, storage and communication, wholesale and retail trades, finance and insurance, housing, public and private sector activities make important contributions to economic growth. In Khyber Pakhtunkhwa, the services sector has great potential to grow and the government is making best efforts to provide an enabling environment to economic agents to tap this potential. This is reflected in the development of new industries, offices, IT and service centers, industrial estates and parks. There are investments in transportation infrastructure, such as mass transit systems, e.g., the rapid bus transit project in Peshawar. Also, the provision of enhanced health and educational services offer a wider choice of services than are available in rural areas.

40. Urbanization is a global phenomenon and describes the growth and expansion of cities and suburbs and the transformation of surrounding rural areas. In developing cities, urbanization occurs as a result of more work opportunities and better living standards as compared to rural areas. However, the process of urbanization is accompanied by social, health and environmental issues, which need to be addressed by appropriate policies and planning.

41. It is envisaged that as a consequence of the proposed interventions in subsequent chapters, a significant number of new jobs will be generated. This will contribute to an improvement in overall existing socio-economic indicators, such as health, life expectancy, educational attainment and literacy. Improvements in water, solid waste and sanitation systems will enhance the quality of life for people through ensuring pollution-free, disease- free, and environment-friendly towns, and create direct employment for skilled and unskilled labor.

42. The provision of these basic urban facilities will encourage the growth, increase and expansion of economic activities such as local small-scale enterprises, mining, retail and others. The development of these businesses will have a multiplier effect on incomes, employment levels, living standards and well-being.

43. The effect of population growth can be positive or negative depending on the circumstances. A large population has the potential to be a significant driver of economic development. On the other hand, limited resources and a large population put pressures on the resources that do exist and can, therefore, constrain growth and social wellbeing. Measures such as proper city planning and zoning, and public education on health, hygiene and conservation will be needed to alleviate the negative impacts of population growth.

44. Every developmental scheme after its completion requires a certain number of human resources for its routine operation and maintenance activities. Some projects are operated / maintained through already established procedures. However, other schemes are new initiatives and need additional human resources, not only for making the schemes operational but also for subsequent maintenance. Urban development aims to improve existing civic facilities through infrastructural and service improvements and the utilization of additional human resources to ensure that such facilities and services are sustained. It is imperative that all such schemes have an appropriate number of human resources to ensure sustainability.

45. Table 4 sets out estimates of the new jobs that would be generated by particular activities, together with the assumptions used to calculate job increase. In setting out the economic analysis and potential benefits that will accrue from the proposed interventions a

11 KP-SISUG Mardan City Development Plan – Draft Final Report number of assumptions have been made. It is held that these are reasonable in current circumstances and based on existing technical circumstances. Over time, especially given the time frame envisaged in this analysis, it is anticipated that these assumptions will need to be reviewed and amended.

Table 4: Approximate increase in jobs Industries Unit Approximate Assumptions/explanation Jobs Increase Drinking water supply 1 4 persons 4 persons for each water supply scheme serving 1,500 households/day. To run this water supply scheme, 4 person will be required. (1 wall man, 2 chukidar one for night and one for day, and one for maintenance) Wastewater and sewage 1 STP 38 persons Sewage treatment plant for 300,000 to 400,000 people requires 8 staff for management and administration and 30 staff for operations. Total 38 persons required for operating of one STP plant. Sanitation system 1 person 1 per 1,000 Sanitary Workers. One full time worker population and 1 per 1,000 population for door to door per 500 running collection and one worker per 500 meters for street running meters for street sweeping sweepers subject to density of the population. Solid waste management 1 30 people Solid Waste Management requires professional staff and supervisors of sanitary workers.17 Sanitary landfill 100 1 person Staff and equipment required for land tons/day fill: 1 tracked loader Small enterprises 1 20 persons Businesses around the bus terminal Stone and marble 1 15 persons and other activities will provide employment. Retailer 1 5 persons Hotels 1 10 persons Source: Field survey.

17 Among the norms recommended by the SWM Learning Program in India were: Zonal Environmental Engineer/ Chief Sanitary Inspector (one per zone of 400,000 to 500,000 population); Ward Level Sanitary Officer (one per 100,000 Population); Ward-level Sanitary Inspector (one per 50,000 population); Sanitary Sub inspector (one per 25,000 population), Sanitary Supervisor (one per 12500 population). Also 1 supervisor of street sweepers per unit area of 8 Kms road length. http://web.worldbank.org/archive/website01007/WEB/IMAGES/INSTIT-2.PDF.

12 KP-SISUG Mardan City Development Plan – Draft Final Report

C. KEY FACTORS AND DRIVERS FOR URBAN DEVELOPMENT IN THE CITY

C.1. National and provincial plans, planning policies and strategies

46. At provincial level, the Planning and Development (P&D) Department has the mandate for providing policy input for the provincial and sectoral development policies. It appraises all development projects, coordinates, and adds value to the project proposals of all provincial departments. The development of the Provincial Annual Development Program is one of the key functions of this Department. Interaction with international partners is another focus of P&D activities. Monitoring and evaluation of projects, interaction with federal level institutions and long-term planning are all areas which the Department undertakes as part of its duties. Preparation of provincial statistics and planning for districts also lie within P&DD’s mandate. The Department also oversees the Government’s reform initiatives. P&D Department has continued undertaking strategic level planning over the last two years, including the development of an Integrated Development Strategy, a Strategic Development Partnership Framework, and a Provincial Growth Strategy.

47. Appendix 2, and Table 4 and Table 5 in Appendix 6 show the key stakeholders, and institutional roles and processes devolved at various levels (province, district and tehsil) in planning, budget approval, procurement, the gaps, and the overlaps in roles in planning and implementing urban services. There are generally two types of projects:

• Departmental development projects are developed by various departments at province level with coordination by P&D Department, translated into provincial or district development schemes, reviewed by the respective decision-making entities, and upon approval, included in the respective provincial and district Annual Development Programs (ADP). • Special projects are the result of special policy directives of the Government. Such projects may be prioritized over others, if availability of funds is a constraint.

48. The urban and land planning system in Khyber Pakhtunkhwa needs to be strengthened in the following areas:

• The legal framework for urban and land management, which needs to regulate the conversion of land use and environmental concerns; • The actual implementation of policies, plans and legal framework; • Urban land management, to control the high rate of urban sprawl; • The technical and financial capacity of local institutions; • The management of urban services delivery; • The insufficiency in the supply of affordable housing, which results in an increased number of informal settlements; and • The increasing frequency of natural disasters, which call for sound preparedness and enhanced resilience in urban planning.

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Table 5: National and provincial policies, legislation and guidelines relevant to urban planning Sector Title Year Local Khyber Pakhtunkhwa Local Government Act 2013 Government The Khyber Pakhtunkhwa Tehsil and Tehsil Municipal Administration 2015 Rules of Business Water National Water Policy 2018 National Drinking Water Policy 2009 Khyber Pakhtunkhwa Drinking Water Policy 2015 Environment National Sustainable Development Policy 2012 and Climate National Conservation Strategy 1992 Change Pakistan Environment Protection Act 1997 National Environmental Policy 2005 National Disaster Management Act 2010 National Disaster Risk Reduction Policy 2012 Pakistan Climate Change Act 2016 The Khyber Pakhtunkhwa River Protection Ordinance. 2002 The Khyber Pakhtunkhwa River Protection (Amendment) Act 2014. The Khyber Pakhtunkhwa Environmental Protection Act 2014 The Khyber Pakhtunkhwa Climate Change Policy 2016 Khyber Pakhtunkhwa Wildlife and Biodiversity (Protection, Preservation, 2015 Conservation and Management) Act (and Amendment) 2017 Sanitation and Hospital Waste Management Rules 2005 Waste Guidelines for Solid Waste Management 2005 National Sanitation Policy of Pakistan 2006 Housing, National Housing Policy 2001 Zoning and Khyber Pakhtunkhwa Housing Authority Act (and Amendments) 2005, Energy 2014, 2017 National Energy Efficiency and Conservation Act 2016 National Power Policy 2013 National Energy Conservation Policy 2005 Building Code of Pakistan – Seismic Provisions 2007 Khyber Pakhtunkhwa Model Building Bye-Laws 2017 Building Code of Pakistan – Fire and Life Safety Provisions 2016

C.2. Population growth and demographic factors

49. In recent decades, the population census has not been conducted regularly in Pakistan, as shown by the censuses in 1951, 1961, 1972, 1981, 1998 and 2017. The last census was conducted in March to May 2017 and the provisional results were released in August 2017. However, detailed demographic census data has not yet been released due to complaints of undercount by some smaller provinces. So far, only the basic data (population

14 KP-SISUG Mardan City Development Plan – Draft Final Report and households) has been released down to Population Circles while the sex and locale disaggregated data is available for districts only.

50. This section briefly sets out some of the key factors involved in population change in Mardan and identifies potential growth scenarios to be considered in assessing future population. Population projections are a necessary pre-requisite for establishing the potential future demand for municipal services.

C.2.1. Push and pull factors

51. Push and pull factors are the determinants of population movements. Given that the majority of movements are likely to be from rural to urban areas and/or migrants to cities, the factors can be defined as follows:

• Push factors are those that drive rural people out of their areas of origin; and • Pull factors are those in the city that attract rural people to migrate to the cities.

52. Push factors might include, but not necessarily be limited to, the following:

• Lack of job opportunities in rural areas; • Infrastructure development in rural areas that fails to keep pace with increasing population; • Inadequacy of basic health and educational services in rural areas as population grows; • Reduction in agricultural yields and/or produce prices, leading to rising poverty; • Degradation of the local environment, through poor management of pollution and wastes; and • Lack of access to water supply of adequate quality.

53. Pull factors are often the antithesis of push factors and might include, but not necessarily be limited to, the following:

• Economic development and employment opportunities in cities – for example, the development of new industries, offices and service centers, industrial estates or IT parks; • Investments in transportation infrastructure, such as mass transit systems; • Provision of enhanced health and educational services, offering a wider choice of services than are available in rural areas; • Perceived higher standards of living and access to markets, goods and services not available in rural areas; • Better municipal services; and • Access to better housing.

C.2.2. Analysis of population patterns

54. Table 6 shows the population trends in Mardan tehsil, including the city (urban tehsil) and the rural areas of Mardan tehsil (including future urban areas). This shows that population growth rates over the past two decades have been faster in rural and peri-urban areas than those in the urban parts. Consequently, the percentage of total population living in the urban UCs has declined between the two censuses, which could mean lower birth rates and possibly some outward movement to the suburbs. Household sizes (Table 7) are not necessarily

15 KP-SISUG Mardan City Development Plan – Draft Final Report indicative of birth rates since extended families may live together under one roof. The UC- wise demographic parameters are given in Appendix 3.

Table 6: Trends in urban growth from 1998 to 2017 in Mardan Tehsil Mardan City Mardan City (Rural Tehsil)[2] Mardan Tehsil (Urban Tehsil) Future Urban Rural Area (Total) Area[1] Administration Units 14 UCs + 7 UCs 24 UCs 45 UCs + Cantonment Cantonment Land Area (2017) 47.71 km2 109.95 km2 710.58 km2 868.25 km2 Population 1998 245,926 157,558 459,240 862,724 Population 2017 358,604 321,415 723,375 1,403,394 Annual population growth rate 2.01% 3.82% 2.42% 2.59% (1998-2017) % of total population in 1998 28.51% 18.26% 53.23% 100.00% % of total population in 2017 25.55% 22.90% 51.55% 100.00% Source: Computed from 1998 and 2017 census data of the Pakistan Bureau of Statistics. Notes: [1] Future Urban UCs are those rural UCs which manifest urban character but are yet to be designated as urban, as explained in paragraph 55. [2] Between the 1998 census and 2017 census, Mardan Tehsil’s rural boundaries changed when the new Katlang tehsil was carved out. While this did not affect the urban part of Mardan Tehsil, the change makes the calculations for the rural part of the tehsil likely to be less accurate.

55. Of the currently designated (31) rural union councils, seven are actually peri-urban with urbanizing agglomerations; hence, have been classified as “future urban”. These UCs with urbanizing agglomerations account for a significant portion of the total tehsil population (22.9% in 2017). These UCs show a significant rise in population between the two censuses. The trends show that much of the rural to urban migration is likely to be into these seven UCs, with some of the urban population possibly migrating outwards from the city as well. However, the entire area of these UCs may not become urbanized. Hence, after careful deliberations, the future urban area within these seven UCs (66.16%) has been demarcated (Map 20) which will need to be notified as the new city boundary (Table 17).

56. The population growth rate (PGR) of the district (2.58 between 1998-2017) is higher than the national average of 2.4 percent and lower than the provincial average of 2.89 percent Within the district the growth rate is higher (2.44%) for rural than for urban (2.01%) areas (Table 6). This could be due to natural population increase. There are no recent statistics on the total number of migrants in the district. Available estimates show that the majority of the migrants are from other districts of Khyber Pakhtunkhwa, rather than from other areas of the country. Table 7 presents the area and population of the current and potential urban areas. Estimation of the total urbanized area (including the current and future urban area) will help in making more precise estimations of service levels in the coming years (Section D.3.4).

Table 7: Area, population, density and household size in Mardan Tehsil (2017) Locale Area No. of Total Population Household (km2) Households Population Density Size Current Urban UCs 47.71 45,429 358,604 7,516 7.89 (14 + Cantonment) Future Urban UCs (7)[1] 109.95 39,827 321,415 2,923 8.07 Remaining Rural UCs (24)[2] 710.58 93,178 723,375 1,018 7.76

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Locale Area No. of Total Population Household (km2) Households Population Density Size Total (46 UCs, including 868.24 178,434 1,403,394 1,616 7.87 Cantonment Area) Total Urban Area (within 21 UCs + 120.45 75,537 602,087 4,999 8.00 Cantonment Area)[3] Source: Computed from 1998 and 2017 census data of the Pakistan Bureau of Statistics. Notes: [1] Future Urban UCs are those rural UCs which manifest urban character but are yet to be designated as urban, as explained in paragraph 55. [2] Between the 1998 census and 2017 census, Mardan tehsil’s rural boundaries changed when the new Katlang Tehsil was carved out. While this did not affect the urban part of Mardan Tehsil, the change makes the calculations for the rural part of the tehsil likely to be less accurate. [3] This is sum of the 100% area of the currently designated Urban UC and partial (66.16%) area within the future urban UCs, as explained in paragraph 55.

C.2.3. Projections of population growth

57. Three sets of population projections to 2025, 2030, 2035, using the 1981, 1998 and 2017 census results, are based on regression analyses producing low, medium and high growth scenarios. The growth rates derived from these projections are set out in Table 8. Depending on the specific mix of push and pull factors, various growth scenarios are possible. In the low to medium growth scenarios, the potential contributors to the growth could be the continued growth of peri-urban agglomerations beyond the officially designated urban areas, with unregulated housing structures and colonies and undiminished levels of in-migration trends.

Table 8: Mardan urban tehsil population projections and growth rates[1] Projections based on Regressional Analysis[1] Projections based Low Variant Medium Variant High Variant on 1998-2017 Intercensal Trendline Logarithmic Polynomial Exponential Growth Rate Regression Regression Regression R2 value 0.9999 1.0000 0.9863 Population 1981 147,977 147,977 147,977 147,977 1998 245,926 245,926 245,926 245,926 2017 358,604 358,604 358,604 358,604 2025 404,286 407,060 448,756 426,526 2030 433,137 437,649 507,226 477,327 2035 461,917 468,473 573,314 535,801 Growth Rates 2017-2025 1.510% 1.597% 2.843% 2.192% 2017-2030 1.463% 1.544% 2.703% 2.224% 2017-2035 1.416% 1.496% 2.641% 2.256% Source: Calculated using census data for 1981, 1998 and 2017 from the Pakistan Bureau of Statistics. Notes: [1] Based on 3 census data points (1981,1998 and 2017), using different regression equations. [2] The future population is calculated first from a regression analysis which gives the specific formula. The Average Annual (Compound) Growth Rate (GR) is then calculated from the beginning and end population.

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C.3. Land use and physical planning

C.3.1. Pattern of growth and regional potential

58. Urban populations in Khyber Pakhtunkhwa have expanded outside city administrative boundaries as the highways have evolved. “Ribbon” developments have sprung up along these highways, largely as a result of proximity to transport links, and availability of skills and services. The proposed development corridors for Peshawar Valley include the following:18

• Corridor I: Takht Bhai-Mardan-Nowshera-Aman Garhi-Pabbi Corridor which is based on the fact that the second largest city of the Province, i.e., Mardan, and three of the fastest growing urban settlements in the Valley, i.e., Takht Bhai, Aman Garh and Pabbi lie in it. • Corridor II: Jahangira-Swabi-Topi Corridor which lies towards east of the valley and encompasses most fertile agricultural land and high-potential settlements i.e. Topi, Swabi and Jahangira.

59. The growth pattern in Khyber Pakhtunkhwa suggests that future planning should focus on the improvement of these two corridors, which will build on the synergies offered by the districts through infrastructure development.19 In addition, regional growth patterns will be influenced by the new urban agglomerations, new town development, special economic zones (SEZ), industrial estates, transportation infrastructure, and the China Pakistan Economic Corridor (CPEC). The Khyber Pkhtunkhwa government has listed the following as prioritized SEZs under CPEC:20

(i) The Rashakai SEZ is spread over approximately 405 hectares (1000 acres) and is located on the M1 Motorway at Mardan Interchange. It links to CPEC through Burhan interchange on M1 and is on the main road to the Afghan border. (ii) The Hattar SEZ is expanding from the previous 172 hectares (424 acres) to an additional 405 hectares (1,000 acres).

C.3.2. Existing spatial structure and land use in Mardan

60. The city of Mardan is shaped by compact urban development in the city center and its fringe areas, scattered urbanized nodes among agricultural land and the sprawling of infill development, which leads to inefficient land utilization, high cost for infrastructure, poor provision of health and sanitation infrastructures, and lack of secure tenure. The spatial structure in Mardan can be summarized in terms of the following dominant elements:

• The City Core—The commercial hub of the city together with high-density development in the city center. This area lies wholly within UCs classified as urban; • Urban Nodes—A series of residential urban nodes at distances of 4km or more from the main urban center, including townships such as Sheikh Maltoon Town, Green Agres Town, Sowaryan City, Faqir Abad, Mayar, Kanda, Gujar Garhi and Dheray Baba; and

18 Government of Khyber Pakhtunkhwa. 2013. “Land-use Plan: District Mardan (Draft).” Peshawar: Urban Policy Unit, Planning & Development Department, GoKP. 19 Government of Khyber Pakhtunkhwa. 2013. “Land-use Plan: District Mardan (Draft).” Peshawar: Urban Policy Unit, Planning & Development Department, GoKP. 20 http://www.kpezdmc.org.pk/prioritized-sezs.

18 KP-SISUG Mardan City Development Plan – Draft Final Report

• Infill Development—Sprawling, low density residential development on a piecemeal basis infilling between the City Core and adjacent Urban Nodes, developed through unregulated conversion of agricultural land.

61. The following important factors need to be considered for land use planning of Mardan district:

• Vulnerability to floods in the eastern part of the District (Shahbaz Garhi, Garyala, Charguli, Bala Garhi, Mohib Banda, Kot Daulat Zai and Garhi Daulat Zai), • The need to achieve economies of scale and avoid unnecessary land wastage, by preventing haphazard expansion and urban sprawl, • The need to preserve Mardan’s distinct character, which lies in its diversity of land uses, and its physical, economic and cultural characteristics, • The concentration of public and private housing developments towards the south of the District, along Nowshera Road.

62. The 2013 land-use plan has identified the best area for future urban expansion, which is towards the south of the District, between Charsadda Road and Nowshera Road, and also towards east of Nowshera Road, and within the southern segment of ring road.21 The land- use plan also shows that much (55%) of Mardan’s so-called urban area is used for agriculture (Figure 2). However, the urban boundaries used by the land-use plan are not officially designated but based on consultants’ own estimations.

63. For the City Development Plan, the officially designated urban boundaries have been used, which corresponds with the census-defined urban and rual areas. Accordingly, the Mardan urban tehsil has an area of 47.71 km2. The 2013 land-use plan has mapped urban Mardan with a slightly larger total area of 53.5 km2 (a difference in land area of 5.8 km2). For CDP, the area delineated as per census-defined boundaries (47.71 km2) has been used.

21 Government of Khyber Pakhtunkhwa. 2013. “Land-use Plan: District Mardan (Draft).” Peshawar: Urban Policy Unit, Planning & Development Department, GoKP.

19 KP-SISUG Mardan City Development Plan – Draft Final Report

Figure 2: Existing land use within Mardan urban area (Total = 53.5 km2)

Parks/Recreational Places Roads 1.885% 2.918% Industrial Public/Community Uses Uses 0.091% 1.269% Health Facilities Residential Terminals 0.399% 32.909% Commercial 0.109% 0.507% Transportation Graveyards 3.026% 0.163% Forest 0.018% Water Bodies Education 0.725% Facilities 0.489%

Agriculture 55.489% Bushes/Scrubs 0.004%

Source: Government of Khyber Pakhtunkhwa. 2013. “Land-use Plan: District Mardan (Draft).” Peshawar: Urban Policy Unit, Planning & Development Department, GoKP.

C.3.3. Urban expansion

64. Urban expansion may take place guided and regulated by development plans and zoning control, or through spontaneous growth with unplanned constructions, especially along the roadsides and on city fringes, leading to urban sprawl. Urban sprawl has various definitions and indicators. Commonly used criteria to define urban sprawl include: (i) low population density, (ii) scattered, discontinuous (and therefore car-dependent) construction, (iii) the spread of development on to agricultural land, and (iv) suburban development that is disorganized, largely unplanned and poorly serviced.22 The indicators used to measure urban sprawl include (but are not limited to): (i) population density and its reciprocal – per capita consumption of land (residential and non-residential), and (ii) spatial indicators such as openness and contiguity of built-up areas, mainly to measure the extent to which there is room for densification and infill development in cities.

65. Urban sprawl, with its inefficient land utilization, leads to higher costs for infrastructure and service provision, and usually lack of secure tenure. The causes of urban sprawl are summarized as follows:

• A silo approach among several institutions and sectors, leading to a significant degree of fragmentation in planning and development and wastage of resources; • Poor coordination and land use management among different institutions and agencies; • The need to have consistent policies and planning schemes to implement the city expansion;

22 Banai, R. and T. De Priest. 2014. “Urban Sprawl: Definitions, Data, Methods of Measurement and Environmental Consequences.” Journal of Sustainability Education, Vol. 7 (Dec 2014). ISSN: 2151-452.

20 KP-SISUG Mardan City Development Plan – Draft Final Report

• The need to strengthen technical and organizational capacity to keep pace with and respond to rapid urbanization and the consequent demand for new housing; and • A traditional top-down market-oriented approach to attract investment, rather than an investment plan integrated within a long-term planning vision based on institutional realities and service delivery mapping.

66. Mardan City lies in the official urban area (the current city), and comprises urban UCs currently served by the Mardan Tehsil Municipal Administration (TMA). Outside of these official city limits are areas classified as rural, but which are rapidly urbanizing. These two areas are growing at different rates (Appendix 3). The urbanization of the rural parts of the tehsil is consuming prime agricultural land. Table 9 shows that per capita land consumption increases away from the built-up areas to the countryside, indicating less efficient use of land and a greater extent of urban sprawl.

Table 9: Trends in urban growth in Mardan Tehsil from 1998 to 2017 Urban UCs Future Urban UCs[1] Rural UCs[2] Density 1998 5,154 persons/km2 1,433 persons/km2 646 persons/km2 Density 2017 7,516 persons/km2 2,923 persons/km2 1,018 persons/km2 Per capita land consumption 1998 194 m2 698 m2 1,547 m2 Per capita land consumption 2017 133 m2 342 m2 982 m2 Source: Computed from 1998 and 2017 census data of the Pakistan Bureau of Statistics Notes: [1] UCs which manifest an urban character but has not yet been notified as urban, as explained in paragraph 55. [2] Between the 1998 census and 2017 census, Mardan tehsil’s rural boundaries changed when the new Katlang Tehsil was carved out. While this did not affect the urban part of Mardan Tehsil, the change makes the calculations for the rural part of the tehsil likely to be less accurate. C.4. Ongoing developments

67. Currently, some key projects are underway in Mardan which will have significant impact on economy of Mardan. The noteworthy projects are mentioned below:

• Development of Rashakai Economic Zone – it will have the infrastructure of international standards including the facility of one window operation to support the industries. It will be spread over on approximately 400 hectares. The industries are expected to be set up include fruit and food, and textile etc. • Jawar Chowk and Katlang flyovers to ease the traffic flow. • Khyber Institute of Neuro Sciences & Clinical Research (KINAR) in Mardan. • Bacha Khan Medical College. • Integrated Resource Recovery Centers in urban UCs of Mardan. • Swat Expressway C.5. Planned or future developments

68. There are also some projects in the pipeline which will result in significant improvement for Mardan City; including:

• Khyber Pakhtunkhwa Cities Improvement Project (including water supply, sewage, solid waste management and sponge city initiatives) • Development of Mardan Museum

21 KP-SISUG Mardan City Development Plan – Draft Final Report

• Mardan Beautification Project (construction and rehabilitation of Azi Khel Park and Pirano Park, gymnasium, Ladies Park at the venue of Mardan Officers Club, construction of dedicated U-turn and installation of solar lights on N-45 Mardan Nowshera Road, Baghdada Park, Installation of touch screen information machines). • Transport Master Plan and Traffic Management Plan for Mardan City – to analyze the complex and multimodal transportation system and propose a sustainable plan to cater the transportation needs of Kohat City for the next 20 years C.6. Climate change and disaster resilience

69. Earlier assessments have estimated the main impacts of climate change projections for the region from 2011 to 2100. The impacts of climate change are projected to be comparable to other cities in Khyber Pakhtunkhwa in general terms, albeit more severe. The main impacts of climate change projected for Mardan are (i) a marked increase in summer days/heat waves for the short, medium and long term, and (ii) a sharp reduction in precipitation. However, this is projected for the medium-term (after 2040) and not for the 2011- 2040 period.

70. The Urban Resilience Assessment (2017)23 makes the following projections: (i) the temperature increase in both summer and winter will be higher in northern Pakistan than in southern Pakistan, and (ii) the temperature increases in both regions will be higher in winter than in summer. No significant change is observed in the percentage of precipitation. However, there is some precipitation increase in summer, and decrease in winter in southern Pakistan (Table 1 of Appendix 8).

71. Another consequence for Mardan is that because of higher temperatures in the winter months throughout Northern Pakistan, more run-off from snow melt and rain will come from the higher areas surrounding Mardan, possibly requiring investments in broadening and cleaning culverts, bridge underpasses and canals. The run-off is expected be greater in volume and will also come at times when there is normally less run-off (e.g., winter).

72. Mardan lies on relatively flat terrain and is surrounded by large tracts of land with sugar-cane cultivation in rural areas. Consequently, the city has issues with water-logging, high water table and salinization of agricultural areas. Therefore, in terms of climate change impacts, the availability of water during hotter periods with little rain is not necessarily an issue. What is, however, a matter of concern is the water quality. The tube wells of the WSSC extract water from a deeper aquifer, which to date is not contaminated. However, the distribution network is such that water is contaminated during distribution, leading to bacterial contamination in approximately 50 percent of the samples in water tests. With higher temperatures, as predicted by climate change models, bacterial contamination of water would spread faster, so improving water quality in the distribution system is an urgent need. Other impacts of the hotter, drier weather would be a marked increase in electricity use for cooling, and possibly an increase in water-borne disease vectors.

23 ADB. 2017. Urban Resilience Assessment Khyber Pakhtunkhwa, Pakistan: Mardan City. Manila: UCCRTF, Asian Development Bank.

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D. ANALYSIS AND NEEDS ASSESSMENT

73. The major obstacle to a well-managed, prosperous, safe and healthy city is perceived to be the weak institutional capacity of the municipal authorities, which manifests itself through:

• Lack of planning and transparent development in accordance with approved plans; • Lack of enforcement of existing regulations pertaining to planning and building control; • Unregulated slum developments; • Unregulated and unchecked urban sprawl; • Inadequate and reliable provision of water supply of good/acceptable quality; • Inadequate provision of basic sanitation services; • Inadequate provision of services for the management of solid wastes; • Unreliable power supply; • Highly congested and poorly maintained urban roads; • Lack of public transportation facilities and integrated transportation systems; • Pollution of waterways, groundwater and the general urban environment; and • Lack of employment opportunities and economic development.

74. Mardan faces all of the above issues.

75. This Section provides a summary of the current and anticipated future situation up to 2035 as the basis for identifying key issues and problem areas to be addressed. The summary is focused on:

• Municipal services; • Basic physical infrastructure; • Land use requirements; and • Public sector governance. D.1. Present infrastructure and municipal service levels

76. The Water and Sanitation Services Company Mardan (WSSCM) is responsible for providing municipal services (water supply, sanitation and solid waste management) to 14 union councils within the limits of Mardan City. WSSCM’s jurisdiction currently excludes the cantonment.

77. On 1st January 2019, WSSCM took over responsibility for the provision of municipal services in Sheikh Maltoon Town (Mohabat Abad UC) from the Mardan Development Authority (MDA), although this area lies beyond the official limits of Mardan City.

78. As per the 2017 census, 358,604 people in 45,249 households resided in the Mardan City, of which 351,733 people in 44,711 households lived in the service area of WSSCM. The population of the City is anticipated to have increased to 374,205 in 2019.

D.1.1. Water supply

79. The entire water supply system of Mardan City is based on groundwater sources. There are no surface water sources currently tapped. WSSCM has provided details of 36 tube wells within their jurisdiction (transferred to them from the TMA), of which only 25 are currently functional, the remaining tube wells having failed or been abandoned. No details are available

23 KP-SISUG Mardan City Development Plan – Draft Final Report on tube wells that may be operational in the Cantonment or in areas outside of WSSCM jurisdiction.

80. The water supply system comprises both direct pumping from tube wells to the distribution system, as well as a number of overhead reservoirs (OHRs). There are 11 OHRs under WSSCM responsibility, of which only seven are currently functional. Summary details of the municipal water supply system are provided in Table 10.

Table 10: Municipal water supply system under WSSCM responsibility Description Operational Nonoperational Current Total Operating Capacity Tube wells[1] 25 11 • Pumps direct supply 14 - 198,000 gallons/hr (900,100 liters/hr) • Pumps to OHRs 11 - 136,500 gallons/hour (620,500 liters/hr) Overhead reservoirs 7 4 550,000 gallons (2,500,350 liters) Filtration Plants[2] - 13 - Flow meters 11 - - Chlorination units - - - Source: Infrastructure mapping and discussions with WSSCM. Note: [1] Total pumping capacity calculated from pump design discharge and pump motor rating, verified by flow meter measurements. [2] Each filteration plant is of 500 gallons (1,893 liters) capacity.

81. Based on the current conditions, operating capacities and operating hours of the tube wells and associated pumps (typically operating 9 hours per day), the maximum available water supply at the point of production in the municipal system is approximately 15.022 million liters/day (15,022 m3/day). Less than half of the production wells are currently metered.

82. Municipal water supply infrastructure is present in only nine of 14 Union Councils in the service area. Currently, the Union Councils of Guli Bagh, Par Hoti, Rorya and Sikandari Karoona are wholly unserved by the municipal system, whilst only a small area of Bagh-e- Iram is served from infrastructure in the adjacent UC. It is estimated that only 55-60 percent of the current population in the City is connected to the municipal water supply. In the currently served UCs (2019 population 260,900), the potential available water is calculated to be approximately 57 liters per capita per day (lcpd) based on the maximum produced water per day.

83. Information on the water distribution system (pipeline routes, locations, material of construction and pipeline condition) is not readily available with the WSSCM. Some preliminary information was collected by an earlier ADB-supported study24 based on field inspections and discussions with WSSCM field staff; summarized in its Final Report. As is common in many urban centers, the field survey indicated the presence of significant leakage from old and rusted pipes, the need to replace such pipes to reduce high levels of non-revenue water (NRW) and the extensive use of asbestos cement pipes, the latter giving rise to potential health concerns from ingestion of asbestos fibers.

84. Although specific data is lacking on the magnitude of the losses arising from NRW and unaccounted for water in Mardan, based on experience from similar-sized cities elsewhere in

24 Government of Khyber Pakhtunkhwa. 2017. Pakistan – Khyber Pakhtunkhwa Inclusive Urban Growth Program: Final Report. Peshawar: Urban Policy Unit, Planning & Development Department, GoKP and Cities Development Initiative for Asia, ADB.

24 KP-SISUG Mardan City Development Plan – Draft Final Report

Pakistan, it is estimated that current water losses from leaking pipes and illegal connections are likely to be at least 45 percent of the produced water and possibly much higher.

85. Assuming 45 percent water loss from the water distribution system, the available water at consumer level is calculated to be around 30 lpcd. This is well below the service level assumed to be the minimum (50 lcpd) to cater for basic consumption needs and maintain adequate levels of personal and food hygiene.25

86. Due to an insufficient and inadequate distribution system, certain areas even within the served UCs are not supplied with water from the municipal system. Where supplied, water availability is often restricted to three shifts of 3-4 hours duration each day. Accordingly, the supply is intermittent and often very irregular. This ensures that pressure is not maintained in the system, thereby allowing the potential ingress of contaminants into the pipelines giving rise to downstream deterioration of water quality.

87. The number of recorded active water connections in the served area in May 2018 was 3,274; this increased to 5,680 by September 2018 (Table 11). The number of recorded active connections represents only approximately 12 percent of the households in the served area at this time.

Table 11: Recorded active water connections for the month of Sep 2018 Union Council Active Connections Estimated Total Households (Sep 2018) Households (2018) Connected Bagh-e-Iram 171 2,749 6.22% Baghdada 301 3,847 7.82% Bari Cham 1,023 2,835 36.08% Bicket Gunj 904 2,603 34.73% Bijli Ghar 297 3,391 8.76% Dagai 343 2,361 14.53% Gull Bagh 0 3,598 0.00% Hoti 986 4,594 21.46% Kas Korona 453 2,468 18.35% Mardan Khas 486 2,119 22.94% Muslim Abad 716 4,798 14.92% Par Hoti 0 4,222 0.00% Rorya 0 2,896 0.00% Sikandari Karoona 0 3,371 0.00% Total 5,680 45,854 12.39% Source: WSSCM, Sep 2018

88. The estimated water demand in Mardan City (14 UCs and cantonment), based on a minimum requirement of 50 lpcd, is approximately 18,700 m3/day. The maximum available supply in the municipal system, after taking account of estimated losses of 45% for NRW, is only 44 percent of this minimum requirement.26

25 Domestic Water Quantity, Service Level and Health. World Health Organization, 2003. 26 By comparison, in a separate USAID-funded study, the projected domestic water demand for densely populated areas of Peshawar has been assessed to be 164 lpcd. Non-domestic requirements were assessed

25 KP-SISUG Mardan City Development Plan – Draft Final Report

89. Water abstracted for the municipal water supply system is obtained from deep aquifers, at a depth of approximately 115 meter. It is reported that there has been no decline in the water table despite groundwater abstraction.27 Water quality is noted to be good at the point of abstraction, as confirmed by laboratory testing undertaken on behalf of WSSC Mardan. Accordingly, there are currently no disinfection (chlorination) units installed on any of the tube wells or at the OHRs.

90. At the point of consumption, however, approximately 50 percent of the samples tested by WSSC Mardan show fecal contamination and were deemed unsafe for human consumption, as a result of the ingress of contaminated water into the distribution system.

91. Households unserved by the municipal water system rely on shallow tube wells, and motor pumps and hand pumps. Water is reported to be abstracted at shallow depth of only 15 m and is noted to vary on a seasonal basis. Because of the shallowness of the water table it is prone to contamination from poor household sanitation practices and industrial effluents.

92. WSSCM has a program in place to repair and upgrade some of the existing tube wells, to improve pump efficiency and install flow meters, to develop chlorination facilities at OHRs and to rehabilitate filtration plants, as well as to develop an inventory of all the water supply infrastructure with georeferenced data sets.

93. In summary, the present municipal water supply for Mardan:

• Relies solely on groundwater sources; • Has insufficient infrastructure to meet the estimated demand from the urban area; • Does not extend to all of the areas within the municipal limits or the area of responsibility of the WSSC; • Has insufficient pumping and distribution capacity to meet the estimated demand and provides only an intermittent supply; • Meets only about 30% of the estimated demand and provides only an intermittent supply; • Has high water losses in the distribution, the magnitude of which has yet to be quantified accurately; and • Suffers from poor quality water at the consumer level, often unfit for human consumption, because of cross-contamination from other sources of pollution.

D.1.2. Sewerage and drainage

94. Rainwater is drained through natural water channels and a series of irrigation canals crossing Mardan City in a generally north-west to south-east direction. The main drainage system is that of the Kalpani Nullah which flows through the center of the city. The Kalpani receives not only surface water drainage but also untreated sewage, waste water and

to be an additional 25% each for non-residential water demand, and for unaccounted water and fire demand, resulting in a total assessed demand of 246 lpcd. – USAID funded Municipal Services Program. Planning and Engineering Services for Master Plan in Peshawar Khyber Pakhtunkhwa: Drinking Water, Sanitation/Storm Water and Solid Waste Services. National Development Consultants (Pvt.) Limited, Pakistan in association with MWH Global, Inc. US. Executive Summary, April 2014. 27 Government of Khyber Pakhtunkhwa. 2017. Pakistan – Khyber Pakhtunkhwa Inclusive Urban Growth Program: Final Report. Peshawar: Urban Policy Unit, Planning & Development Department, GoKP and Cities Development Initiative for Asia, ADB.

26 KP-SISUG Mardan City Development Plan – Draft Final Report industrial effluents, including hazardous chemicals. The existing drainage system is, thus, a combined drainage-cum-sewerage system.

95. Urban flash flooding, particularly along the Kalpani, is a relatively frequent occurrence due to encroachments of the water channels, extensive siltation, unregulated deposition of municipal solid waste and infrequent maintenance of the waterways. The flows are conveyed mostly by open or covered drains; only a few areas are served by underground sewers (primarily in newer developments outside of the city core). The estimated length of the open and covered drainage system is 310 km.28

96. Primary sewers were laid in the 1990s, together with the development of two waste water treatment plants, as part of the Second Urban Development Project. The sewer system was designed based on gravity flows. No pumping stations were constructed, other than at the waste treatment plants. Tertiary connections, however, to individual properties were never completed; hence, the majority of properties in the city are not connected to the sewer network. The sewer system is essentially non-functional. Where sewers are present, older primary (trunk) sewers are often clogged and not functioning adequately, resulting in the overflow to nearby drains and canals.

97. The wastewater treatment plant constructed near to University Road, extending to approximately 15 hectares (ha), is not functional and is not connected to the sewer network. The second wastewater treatment plant lies adjacent to the Islamabad-Peshawar (M-1) motorway and extends to approximately seven hectares. It is understood that it has also never operated. The design of both plants is based on outdated technology (large oxidation ponds). These plants are beginning to witness the development of residential housing adjacent to the property boundaries.

98. Water supply pipelines are often co-located in, or cross, open sewers and drainage channels which convey untreated waste water. Significant potential exists for poorly maintained and leaking drinking water network to be contaminated by untreated sewage and waste water.

99. Based on the 2019 population estimates, it is estimated that around 10,000-15,000 m3 of sewage and wastewater is discharged untreated to surface water courses and agricultural land every day.

100. In summary, the present sewerage and drainage system for Mardan:

• Is a combined system for drainage and sewerage; • Is highly polluted since it receives untreated sewage and waste water from all sources; • Impacts the quality of the potable water distribution system; and • Provides no treatment capacity for sewage and waste water in the absence of functioning sewage networks and waste water treatment plants.

D.1.3. Solid waste

101. Existing collection systems for solid waste comprise hand carts for primary collection and manually loaded tractor trolleys and mechanically loaded multi-loaders and compactors

28 Government of Khyber Pakhtunkhwa. 2017. Pakistan – Khyber Pakhtunkhwa Inclusive Urban Growth Program: Final Report. Peshawar: Urban Policy Unit, Planning & Development Department, GoKP and Cities Development Initiative for Asia, ADB.

27 KP-SISUG Mardan City Development Plan – Draft Final Report for secondary collection. Primary collection is undertaken by several methods, including door to door collection and temporary disposal to street-side collection points and containers, for onward loading into secondary collection vehicles. WSSCM employ 300 primary collection staff and 100 street sweeping staff, with operations conducted over one shift from 7:00 am to 1:00 pm.

102. WSSC Mardan estimate that solid waste generation is more than 250 tons per day (tpd) from residential, commercial and institutional premises, of which approximately 200 tpd per day (80%) is estimated to be collected. There are, however, no independent measurements of waste generated or of waste collected. This estimate is likely to include not only municipal solid waste but also construction and demolition debris and soil and sediment from drain cleaning. The derived per capita waste generation rate (a minimum of approximately 0.66 kg per person per day assuming all of the resident population is served) is deemed to be high by comparison with other cities of similar size in Pakistan and with previous survey results from Mardan.29

103. WSSC Mardan collect 135 tpd using their own equipment, and other hire equipment from the private sector to collect the balance. WSSC Mardan have deployed 40 numbers 0.8- m3 capacity bins and 58 numbers 5-m3 capacity skips and containers for waste collection, with a combined storage capacity assessed to be approximately 320 m3. A number of the larger capacity skips are old and need to be replaced in the immediate future in order to maintain collection capacity. There are currently only 18 numbers new 5-m3 capacity containers.

104. Uncollected waste is burnt, re-used or recycled or disposed into drains and canals. Hospitals and medical clinics generate relatively large amounts of hazardous clinical waste that is not separated from municipal waste.

105. The current collection fleet and equipment (Table 12) is insufficient to collect the volume of waste generated and is incapable of transferring and hauling collected waste beyond the city limits.

Table 12: Current operational collection and street cleansing fleet, WSSC Mardan Item Capacity No. Service Year Acquired ft3 m3 Hand carts 3 0.09 150 Primary Very old Hand carts 10 0.28 156 Primary 2017 & 2018 Tractor Trolleys 200 5.7 2 Primary 1994 Dong feng 50 1.4 2 Primary Old Containers 0.8 40 Primary 2018 Hook lift container (closed) 5.0 18 Primary 2018 Open container 5.0 40 Primary Old Suzuki mini dumper 1.0 10 Primary 2018 Hook lift tractor 1 Secondary Old Arm roll 2 Secondary 2018 Compactor 8 3 Secondary 2013

29 Solid waste generation in Guli Bagh UC was reported to be 0.3043 kg per person per day in 2012. – UN. 2012. Baseline Study for SWM in Mardan Pakistan. Islamabad: UN-Habitat and UN-ESCAP.

28 KP-SISUG Mardan City Development Plan – Draft Final Report

Item Capacity No. Service Year Acquired ft3 m3 Multi loader 8 3 Secondary 2012 (2) & 1994 Loader shovel 1 Secondary 2013 Tractor with blade 2 Secondary 1973 Mechanical sweeper 2 Street cleansing 2012 Jetter/sucker 1 Street cleansing 2012 Road washer 1 Street cleansing 2012 Water tanker (10,000 l) (Hino) 1 Street cleansing 2012 Source: WSSC Mardan

106. All primary collection is undertaken by hand using hand carts, either by door to door collection or from roadside collection points. The vast majority of transfer of waste from primary collection points to secondary collection equipment is undertaken manually. The main vehicles used for bulk waste collection and transfer to the disposal sites are tractor trolleys (Table 12).

107. This system is labor intensive, slow, inefficient and unhygienic, exposing personnel to unnecessary risks. The transfer of uncovered and unconfined waste by tractor trolley results in increased littering during waste collection and transportation. Significant odors are also associated with this method of transportation, affecting urban populations since tractor trolleys travel on main roads through populated areas. The slow speed of collection and travel also increases congestion on the main collection routes.

108. The payload of tractor trolleys is low compared to the use of compactor trucks. In vehicle densities of waste are typically 1.5-2.5 times higher in compactor trucks than in open, uncompacted trolleys. Allied with the greater capacity of medium to large-sized compactor trucks (for example, 8m3 or 13m3 as against 4-5 m3 for trolleys) the waste load carried by compactor trucks is significantly higher than achieved by tractor trolleys. As a result, the use of tractor trolleys is known to be the least cost-effective method of collecting and transferring waste. Tractor trolleys have the highest cost for waste transportation on a per ton basis.

109. Uncollected waste is burnt, re-used or recycled or disposed into drains and canals.

110. Hospitals and medical clinics generate relatively large amounts of hazardous clinical waste that is not separated from municipal waste.

111. There are no transfer stations in the city. Waste transportation is undertaken solely by waste collection vehicles, thus restricting their availability to collect waste.

112. There are no sanitary or controlled landfills for the disposal of waste. Disposal is via unhygienic and unsanitary open dumping at a number of locations within the city limits. There are no formal facilities or systems for the recovery and treatment of solid wastes. Materials that are diverted from the waste stream are limited to those extracted through informal materials recovery at household level and via waste pickers at disposal sites.

113. A landfill site has been identified and acquired in rural UC Maho Dheri. This site is approximately 11 ha. in area and located approximately 12 km by road from the center of the city. Construction and operation of the site as a sanitary landfill is awaiting the development of a waste haulage/transfer system, including procurement of appropriate vehicles.

29 KP-SISUG Mardan City Development Plan – Draft Final Report

114. In summary, the present solid waste management system for Mardan:

• Is limited to primary and secondary collection within the city; • Has insufficient equipment to be able to collect all of the MSW generated daily; • Has no facilities to treat waste in order to reduce the waste disposed to land; and • Relies on unsanitary open dumping of municipal solid waste within the city limits.

D.1.4. Other infrastructure

D.1.4.1. Transportation

115. The main access to Mardan City from the southern parts of Pakistan (including Punjab, Balochistan, Sindh and Southern Khyber Pakhtunkhwa districts) and Islamabad is through National Highway N-45 which connects both the Grand Trunk road (at Nowshera) and M-1 Motorway (at Rashakai Interchange). Nowshera Road (N-45) enters the District (and Mardan City) from the south, Charsadda Road from the west, Malakand Road from the north-west, and Swabi Road from the east, besides a number of other smaller roads passing through the City.

116. Whilst the individual roads have adequate capacity at present, because all the main roads passing through Mardan converge in the central, heavily developed core of the city, this leads to major congestion and traffic problems particularly during rush hour.

117. Mardan City has a ring road (single lane each way) that surrounds the City and connects all of the main roads. It is developed at a distance typically between five km and seven km from the center of the city. The ring road, however, is only comparatively lightly used, with more than 95 percent of traffic flows occurring on the main roads that traverse the City.

118. The majority of roads lack drainage facilities, pedestrian footpath or sidewalks and street lighting.

119. The Swat Expressway is currently under construction. Although its route does not pass through Mardan, it is anticipated that the traffic on N-45 and Malakand road will be reduced after completion of the Expressway, with traffic from Swat to Peshawar, Charsadda, and Nowshera and vice versa diverted from N-45 and Malakand roads.

120. Traffic congestion within the city is compounded by the fact that the major bus terminals (operated by the TMA and by private operators) are located close to the city center on the Charsadda Road. All bus routes traverse through the city center. The Daewoo bus terminal is located on the N-45.

121. The City lacks a public transportation system, as well as a traffic management plan. Informal private vehicles are used for intra-city movement.

122. Mardan has a railway line that runs parallel to the N-45 (Nowshera-Mardan road). The station at Mardan, which occupies an area in excess of 25 ha, still exists, together with the broad-gauge track (51 km in length). There has been significant encroachment along the railway line since it has ceased to be used for more than 10 years. There are plans under consideration to rehabilitate the line and station as part of the CPEC project.

123. There are no intermodal transport hubs.

30 KP-SISUG Mardan City Development Plan – Draft Final Report

D.1.4.2. Energy

124. Peshawar Electric Supply Company (PESCO) supplies energy to all civil divisions of Khyber Pakhtunkhwa, including Mardan. The major grid station in Mardan City is near the Mardan Medical Complex on N-45 (Nowshera-Mardan Road) with the capacity of 220 kV. It is managed by National Transmission and Despatch Company (NTDC).

125. Frequent load-shedding is common in all areas, including in Mardan City. Load shedding impacts the availability of potable water.

126. Gas or diesel run generators supply electric power supply during power outages, which are a source of air as well as noise pollution and add significantly to household expenses.

127. Nowshera-Mardan and Mardan-Mingora transmission network segments are two main transmission lines associated with the Mardan City gas supply. These operate at maximum capacity.

D.1.4.3. Tourism

128. Currently Takht Bhai is a developed tourist spot, which attracts national and international tourists. Takht Bhai is located about 15 km from Mardan and 80 km from Peshawar and is listed as a World Heritage Site by UNESCO since 1980. Takht-e-Bahi is considered one of the most well-structured Buddhist monasteries in Gandhara district. It has ruins of an ancient Buddhist monastery on the top of a hill. The monastery is believed to date back to the 2nd or 3rd century AD. The site has rectangular court and the small shrines that surround the stupa-court. The shrines are classical example of fine design and architecture. The hill offers magnificent views of the surrounding area.

129. Seri-Behlol contains the remains of Buddha along with other antiques. It is situated 15 km away from the Mardan City and is listed as a World Heritage Site by UNESCO.

130. Mardan Museum contains remains and cultural artefacts from the Gandhara civilization and has 22 showcases displaying more than 90 sculptures.

131. The Bacha Khan Monument, in the form of a rose-petal like structure with lighted fountains, is the representative symbol of Pashtun culture.

132. Kashmir Smasts are a series of natural limestone caves situated in Pirsai Sakrah Mountains in Sudam Valley, Mardan.

133. Shehbaz Garhi, located 12 km away from Mardan, was once a thriving Buddhist city surrounded by monasteries and stupas. The town is also the location of ancient rock- inscriptions that are cut into two large rock boulders and written in the Kharosthi script. They appear to be the first examples of writing in South Asia and were constructed during the 3rd Century BC, during the reign of Ashoka. D.2. Current institutional and organizational arrangements for service delivery

134. The Water and Sanitation Services Company, Mardan is an independent corporatized public corporation. Registered with the Securities and Exchange Commission of Pakistan, it is fully owned by the Khyber Pakhtunkhwa Government. Following a Services and Asset Management Agreement (SAMA) signed between the province, the WSSCM and the Tehsil

31 KP-SISUG Mardan City Development Plan – Draft Final Report

Muniicpal Authority, Mardan, the WSSCM took over the water, sanitation, and solid waste management sectors from the TMA on 1 December 2016. The geographical area of WSSC services covers all urban union councils. The WSSCM draws on various sources for its budget. For schemes, the WSSCM uses the budget earmarked for those schemes. The operational budget of WSSCM is provided by the province. A small part (less than 1% in 2018) of the budget derives from household tariffs. The provincial government covers WSSC’s capital expenditure.

135. The Mardan Development Authority (MDA) is tasked with urban development projects. It focuses on housing, planning and delivering associated infrastructure, such as green spaces, parks, city roads, transport facilities, electrification, zoning and land use plans, and town planning schemes. MDA was responsible for municipal services and other functions in Sheikh Maltoon Township, which WSSCM does not cover; however, effective 1 January 2019, the municipal services for the Sheikh Maltoon Township have been handed over to WSSCM.

136. The Tehsil Municipal Administration for Mardan City is responsible for the planning and provision of municipal services, other than those transferred to WSSCM. It is also responsible for managing municipal properties, assets and funds; approving and levying local taxes; developing and approving development schemes for areas under its jurisdiction, enforcing municipal laws, and collecting taxes, fines, and penalties provided under the law. D.3. Assessed future requirements and needs

137. Assessing the magnitude and spatial direction of growth and providing the infrastructure to cater for the population for the next 15 years (to 2035) is vital when formulating any planning strategy. There are four fundamental issues to be taken into consideration:

• Projected population growth for the time period covered by the planning strategy; • Additional land development and allocation requirements, if any, based on the projected population growth; • The need, if any, for expansion of the official urban limits and, by extension, expansion of the service area for core municipal services, to incorporate areas on the margins of the city that have already urbanized to a large degree (even though still classified as rural) or are anticipated to urbanize during the time period covered by the planning strategy; and • Target levels of service delivery.

D.3.1. Population projections

138. Population projections based on intercensal growth rates for the all UCs and the cantonment area currently classified as urban are reproduced in Appendix 3. The projections for 14 urban UCs and the Cantonment are summarized in Table 13.

Table 13: Population projections 2019 to 2035 for the current urban area 2017 Census 2019 2025 2030 2035 Population 358,604 374,205 426,526 477,327 535,801 Households 45,429 47,747 55,619 63,396 72,500 Average Household Size 7.9 7.8 7.7 7.5 7.4 Density (persons/km2) 7,516 7,843 8,940 10,005 11,230 Source: Computations based on population for each UC from the 2017 census and intercensal growth rates for each UC between 1998 and 2017.

32 KP-SISUG Mardan City Development Plan – Draft Final Report

D.3.2. Land development and land allocation

139. Assessing the magnitude and spatial direction of growth and providing the infrastructure to cater for the population for the next 15 years or so is vital when formulating any planning strategy. International norms for city densities range from UN-Habitat’s norm30 of 15,000 persons per km² (or 150 persons/ha) that requires high-rise buildings, to the “European compact perimeter block’ model” which has densities in the range of 3,000 to 6,000 people per km2.31 For Mardan, UN-Habitat’s norm of 15,000 people per km2 (or 150 persons/ha) is assumed. Table 14 and Table 15 set out the ideal city area—for the currently designated urban area and future urban area, respectively—to plan for if Mardan City was to adopt a growth pattern adhering to international urban planning norms.

Table 14: Population projections and city area requirement for the currently designated urban areas (47.71 km2) Year Population Population Density if City Area (km2) Requirement if City Boundaries Remain Boundaries are Redrawn as per UN- Unchanged (Persons/km2) Habitat Norm of 15,000 persons/km2 2017 358,604 7,516 23.91 2019 374,205 7,843 24.95 2025 426,526 8,940 28.44 2030 477,327 10,005 31.82 2035 535,801 11,230 35.72 Source: Population estimates based on calculations from censuses of 1981, 1998 and 2017. Note: UN-Habitat sets a norm of 15,000 persons per km² for population density in urban areas

140. Table 14 shows that the currently designated urban areas can more than accommodate the projected population for 2035. Table 15, however, shows that the potentially urbanized areas can accommodate much more than the projected population for 2035. However, the growth should be managed within a few geographic areas with more people concentrated in the urban nodes rather than spread out in urban sprawl.

Table 15: Population projections and city area requirement for the expanded urban areas in future (120.45 km2) Year Population Population Density if City Area (km2) Requirement if City Boundaries Remain Boundaries are Redrawn as per UN- Unchanged (Persons/km2) Habitat Norm of 15,000 persons/km2 2017 602,087 4,999 40.14 2019 638,713 5,303 42.58 2025 766,802 6,366 51.12 2030 898,698 7,461 59.91 2035 1,059,382 8,795 70.63 Source: Population estimates based on calculations from censuses of 1981, 1998 and 2017. Note: UN-Habitat sets a norm of 15,000 persons per km² for population density in urban areas

30 UN-Habitat. 2014. A New Strategy of Sustainable Neighborhood Planning: Five principles - Urban Planning Discussion Note 3. Available from: https://unhabitat.org/a-new-strategy-of-sustainable-neighbourhood- planning-five-principles/. Accessed 30 Oct 2018. 31 Lehmann, S. 2016. “Sustainable urbanism: towards a framework for quality and optimal density?” In Future Cities and Environment (2016) 2:8. DOI 10.1186/s40984-016-0021-3.

33 KP-SISUG Mardan City Development Plan – Draft Final Report

141. This supports the argument for maintaining most of the agricultural land in between the urbanized nodes. In any case, city planners must prevent urban sprawl consuming yet more agricultural land, and to do this requires revisiting current city zoning laws and spatial plans.

D.3.3. Expansion of the area classified as urban

142. The existing spatial structure of Mardan has been described in Section C.3.2 above.

143. The majority of infill developments are characterized by marginalized, predominantly low income, informal settlements with low levels of social services and facilities, jobs and land use diversity. These settlements are prevalent along and adjacent to the main roads (for example, Malakand Road, Mardan ring road and University Road).

144. The main areas of population growth between 1998 and 2017 have been on, and beyond, the margins of the existing urban UCs (that is, the peri-urban zone), primarily to the south but also to the north-west and north-east of the city core, both in the Urban Nodes and as infill development.

145. The infill developments and Urban Nodes are rapidly attaining urban characteristics, even though they are located in UCs currently still classified as rural. It is inevitable that with continuing unregulated development these locations will become fully urbanized in character over time and will likely be subject to re-classification. It is suggested that this is likely to happen within the next 15 years.

146. These urbanizing areas currently lack basic municipal services since they do not fall within the service area of WSSC Mardan. Once re-classified as urban it is expected that WSSC Mardan will be obligated to expand its service coverage to include such areas.

147. A possible scenario for an expanded city limit incorporating the current and future urban areas is illustrated in Figure 5, together with a suggested expanded urban limit. The revised urban limit incorporates parts of seven existing rural UCs, as summarized in Table 16.

Table 16: Potential expansion of the urban limit S. # UC Name Total Area of UC UC Area Within UC Area Outside % of UC Area (km2) the Expanded the Expanded within the Limit (km2) Limit (km2) Expanded Limit 1 Chak Hoti 12.39 12.16 0.23 98.14% 2 Chamtar 12.59 7.61 4.98 60.44% 3 Ghala Dher 29.76 9.39 20.37 31.55% 4 Gujar Garhi 16.84 11.80 5.04 70.07% 5 Mardan Rural 6.71 6.10 0.61 90.91% 6 Mayar 9.81 5.75 4.06 58.61% 7 Mohabat Abad 21.85 19.93 1.92 91.21% Total 109.95 72.74 37.21 66.16% Source: GIS work performed by the project team.

148. Based on this scenario, the city limits would expand from 47.71 km2 to 120.45 km2, representing a 252 percent increase over the area of the UCs currently designated as urban (Map 20).

34 KP-SISUG Mardan City Development Plan – Draft Final Report

149. Whilst it has been demonstrated in Section D.3.2 above that there is no fundamental requirement to allocate additional land for city development, based on the density of residential development, it is projected that the city limits will need to expand to reflect the increasing urbanized character of the areas on the margins of the city.

150. Given that municipal services will need to be provided to these areas in due course, Table 17 shows the projected populations that might need to be provided with municipal services within the expanded city limits (including the cantonment area).

Table 17: Population projections 2019 to 2035 for the expanded city limits (120.45 km2) 2017 Census 2019 2025 2030 2035 Population 602,087 638,713 766,802 898,698 1,059,382 Households 75,537 80,704 99,036 118,300 142,239 Average Household Size 8.0 7.9 7.7 7.6 7.4 Density (persons/km2) 4,999 5,303 6,366 7,461 8,795 Source: Computations based on population for each UC from the 2017 census and intercensal growth rates for each UC between 1998 and 2017.

D.3.4. Target levels of municipal service delivery

151. The aspiration should be to provide municipal services to all of the population, households and commercial and institutional properties within the service area. The speed at which this can be achieved is dependent primarily upon access to appropriate levels of financial and technical resources.

152. As has been noted in Section D.1, the provision of municipal services within the current service area is relatively low, such as:

• Potable water supply: less than 60 percent of the population served; • Sewerage: zero percent of the population served; and • Solid waste management: approximately 70-80% of the municipal solid waste generated is collected but zero percent is treated or disposed in a sanitary manner.

D.3.4.1. Potable water demand and supply

153. Target service levels for municipal water supply have been developed, at five yearly intervals for the period up to 2035, assuming:

• A progressive increase in supply availability through step-wise investments in water production; • Progressive improvement in the condition of the water distribution system; • Progressive reduction in the number of illegal connections; and • Progressive extension of the municipal water production and distribution system to cover the whole of the current urban area as well as the future urban area by 2035, so as to provide a supply at each individual household available on a 24/7 basis.

154. The targeted levels of potable water supply until 2035 are set out on Table 18.

35 KP-SISUG Mardan City Development Plan – Draft Final Report

Table 18: Proposed target service levels for municipal water supply Year Urban UCs served (2019) Urban UCs unserved (2019) Future Urban UCs Service Supply (lpcd) Service Supply (lpcd) Service Supply (lpcd) Coverage Coverage Coverage 2019 85% 50 0% 0 0% 0 2025 100% 70 33% 70 0% 0 2030 100% 90 100% 90 50% 90 2035 100% 110 100% 110 100% 110

D.3.4.2. Sewerage and waste water collection and treatment

155. As discussed in Section D.1.2 above, the existing sewage network is not functional nor is any treatment provided prior to discharge of sewage and waste water to land or to surface water courses. Rectification of this situation must be a high priority.

156. The fundamental approach should be to develop (i) a functioning sewage system that is separate from the drainage system; and (ii) appropriate treatment facilities, both in terms of process and capacity; with the overall objective to reduce, and ultimately eliminate, the discharge of untreated sewage and waste water to the environment.

157. This objective can be achieved by collecting and conveying sewerage and waste water hygienically away from all residential and commercial areas though the following interventions:

• Rehabilitating existing primary (trunk) sewers; • Developing secondary sewer lines and installing tertiary connections to individual properties; • Connecting the trunk sewers to treatment facilities; and • Over time extending the sewer network into currently unserved areas.

158. Table 19 sets out the proposed targeted level of sewer connections and served population (at five yearly intervals) until 2035.

Table 19: Proposed target service levels for municipal sewerage system Year Urban UCs (2019) Future Urban UCs Overall Expanded City Service Population Service Population Service Population Coverage Connected Coverage Connected Coverage Connected 2019 0% 0 0% 0 0% 0 2025 50% 213,265 0% 0 28% 213,265 2030 75% 357,995 33% 139,055 55% 497,050 2035 90% 482,220 60% 314,150 75% 796,370

159. Appropriate treatment capacity shall be provided to manage and treat all of the sewerage and waste water collected in the service area. Accordingly, treatment capacity will need to be upgraded progressively during each five year interval as the served population increases.

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D.3.4.3. Solid waste collection, treatment and disposal

160. The management of municipal solid waste has shown significant improvement in recent times, particularly in terms of collection capacity. However, there is still considerable room for enhancement of service provision by:

• Additional step-wise investments in collection capacity and operational capability; • Adoption of sanitary methods of waste disposal; and • The progressive dvelopment of programs, systems and facilities to promote resource recovery and to divert waste from final disposal to land.

161. The targeted levels of waste management services until 2035 are set out on Table 20.

Table 20: Proposed target service levels for management of municipal solid waste Year Collection Alternative Treatment/ Sanitary Disposal Existing Urban UCs Future Urban UCs Waste Diversion 2019 70% 0% 0% 0% 2025 85% 25% 10% 100% 2030 90% 50% 20% 100% 2035 95% 75% 40% 100%

D.3.5. Funding of municipal services and investments

162. According to the Budget Abstracts, the total revenue of Mardan Tehsil Municipal Administration (TMA) in 2017-18 was PKR 641 million, including provincial transfers, whilst expenditures were PKR 1,045 million. This resulted in a deficit of PKR 404 million in financial year 2017-18, the majority of which was met from budget savings from previous financial year, leaving a net deficit of PKR 103 million. This will be met eventually from budget savings during the FY 2018-19.

163. Between FY 2016-17 and FY 2017-18, the total revenue reduced from PKR 674 million estimated to PKR 641 million, a net drop of PKR 33 million which was mainly due to reduced PFC share and decrease in own source revenue in 2017-18. The revenue budget increased on average at the rate of 37 percent from 2015-16 to 2017-18 with a large increase of 93 percent in provincial transfers over the same period mainly due to induction of 30 percent PFC share allotted to TMAs in provincial budget.

164. The increase in expenditure budget from PKR 925 million in 2016-17 to PKR 1,045 million in 2017-18 was mainly due to increase in non-development Budget which constitutes about 90% of the current revenues in 2017-18.

165. The Water Supply and Sanitation Company Mardan (WSSCM), is a relatively new addition to the institutional architecture for managing essential municipal services like water supply, waste water and solid waste management. The budget prepared by the WSSCM for 2017-18 show annual revenue from water and conservancy charges of PKR 5.7 million.

166. Information given in Development Statistics of Khyber Pakhtunkhwa 2018 and the available TMA budget abstracts and WSSCM water revenue budget are summarized in Appendix 5. Presently there is a negative resource gap of PKR 398.41 million which is expected to turn into negative resource gap of PKR 401.79 million by 2025 based on

37 KP-SISUG Mardan City Development Plan – Draft Final Report assumptions made for these projections. It is assumed that the number of connections will reach 80 percent of the projected households by 2025.

D.3.6. Public sector governance

167. Poor city planning is undermining progress made in service provision. The lack of land- use planning and zoning regulations, the contamination of water supply and the haphazard unregulated dumping of wastes—including hazardous wastes—need to be addressed.

168. Most of the barriers preventing WSSCM from fulfilling its potential lie in its history. The WSSCM inherited services that were poor to start with, together with poor staff capacities and underperformance. For WSSCM the service quality problems will be insurmountable unless it is provided with the means to resolve the human resource issues.

169. Addressing non-performance in government staff is difficult. Under the rules of the Securities and Exchange Commission of Pakistan, the Board of Directors of WSSCM and the Chief Executive Officer can exercise disciplinary action against WSSCM staff. However, under civil services rules, the punitive actions have to follow lengthy disciplinary procedures. As the WSSCM staff are government employees, implementing sanctions against underperforming staff is not easily undertaken. The emerging trend of taking the matter to courts and obtaining stay orders has made it more difficult. The Government of Khyber Pakhtunkhwa needs to address this so that WSSCM can fulfil its mandate of being a corporate governed utility with high performance standards.32

170. Low compensation levels for key management posts constrain the hiring of well- qualified executives and managers for vacant senior positions. WSSCM’s pay scales are on average about half of those for similar establishments.

D.3.7. Capacity development

171. Elected officials and government staff at local government institutions at district and tehsil levels need capacity strengthening in management, strategic planning, and other areas related to their work. In particular, Township Municipal Officers (TMOs) and the TMAs need to be strengthened in procedures, accounts keeping, audit and internal audit, and tendering and tender processing. The engineering staff within the TMAs need to be strengthened in preparing Bill of Quantities and tender documents, tendering and tender security, and soil testing. Relevant staff also need training related to drinking water, sanitation, solid waste management and building control.

172. WSSC Mardan needs pre- and in-service training in management, administration and finance for relevant staff, as well as technical trainings specific to the water, sanitation, and waste management sectors for other staff (Table 21). Once developed, selected modules from these courses could also be used for training of relevant district and township officials and city development authorities. Because of their operations at community level, WSSCs need to conduct community education on water, sanitation and related issues, and ensure the training of community mobilizers and community support workers (under a Training of Trainers (TOT)

32 Government intervention is needed, since the Federal Government in 2010 repealed the Removal from Service (Special Powers) Ordinance, 2000, which had provided for the dismissal, removal, compulsory retirement, or demotion of government staff for inefficiency, misconduct, corruption, and other traits.

38 KP-SISUG Mardan City Development Plan – Draft Final Report program) to enable them to become water care technicians. To this end, WSSCs will need support in designing TOT modules, which they could implement (Table 21).

173. Mardan Development Authority (MDA) is not fully equipped to discharge its duties of city and development planning, as is seen in the poor management of urban sprawl. The MDA also need to develop the coordination and monitoring skills to provide guidance and direction to local government departments. Overall, the MDA staff also require capacity strengthening in many of the areas listed in Table 21.

174. Major functions of the Mardan Cantonment Board (MCB) cover a wide range of areas: water supply, sanitation, street lights, roads and roadside drains, construction and engineering, education, medical services, fire brigade, horticulture, and revenue collection within the cantonment areas. The MCB already has systematic mechanisms and well-defined jurisdiction.

Table 21: Areas proposed for capacity building Management and administration Environment and social management • Human resources management and planning • Environmental impact assessments • Administration • Social & environmental mitigation • Reporting • Occupational health and safety • Supply and asset management Water resources management & protection • Procurement and procurement procedures • Water safety planning Finance • Water supply sampling/testing • Budgeting and budget management • Waste water sampling • Accounts • Equipment installation • Internal audit • Equipment maintenance • Revenue and billing enhancement • Water resource monitoring Land development Sanitation • Acquisition • Hygiene awareness • Land registry (cadastre) • Sanitation Planning and development • Drainage • Planning • Storm water & wet weather management • Project planning • Flushable wipes & collection systems • Mis/database • Industrial wastewater • Gis operation • Utility management Projects and works • Innovative technology • Planning and project management Solid waste management • Works • Waste collection • Contracts • Clearing of dumps • Geotechnical aspects and earth works • Re-dumping Urban development planning • Solid waste management • Urban infrastructure design • Recovery of recycle items • Urban infrastructure asset management • Sludge treatment and disposal • Control Roads/bridges • Risk management • Roads & roads maintenance Field operations, maintenance and repair • Roadside drains • Training for operators/mechanics • Public transportation management • Training of surveyors, sanitary installers, • Urban transportation planning general fitters, pump mechanics, mechanics and drivers of tractors, and other related vehicles. Source: Management and staff of WSSC Mardan.

175. In judging the adequacy of staffing for the WSSC Mardan, a standard international indicator of human resources (HR) productivity should be used, such as the total number of

39 KP-SISUG Mardan City Development Plan – Draft Final Report water utility staff per thousand people served. Data is available on this indicator for Pakistan (national average) and some other countries.33 A comparison of the HR productivity ratio (Figure 3) shows that WSSCM appears to be over-staffed with regard to total staff, compared to the national ratio and ratios from other countries. However, the ratio of its professional staff is very low.

Figure 3: HR productivity ratio for WSSC Mardan (2018)

2.00 1.80 1.82 1.60 1.40 1.20 1.00 0.97 0.80 0.85 0.88 0.60 0.54 0.58 0.40 0.50 0.51 HR productivity ratio 0.20 0.26 - 0.05

India, 2009 China, 2012 Turkey, 2008 Malaysia, 2007Pakistan, 2016 Singapore, 2008 Uzbekistan, 2010 WSSCM, total staff England & Wales, 2016 WSSCM, professional staff

Sources: Based on assessment of WSSC Mardan professional staff (20) and total staff (666) in 2018. International Benchmarking Network (IBNET) online database (https://www.ib-net.org/) (for Pakistan national level and other countries Note: HR productivity ratio is derived from the number of the employees per 1000 people served by the city development authorities. IBNET notes that “while allocating staff time to either water or wastewater services is useful, this information is sometimes not available. Comparisons are best made between utilities offering the same scope of service in terms both of total size and of mix of water and sewer services. Staff number comparisons should reflect any extensive use of outside contractors.”

176. Education and training of employees are necessary but insufficient – the employee also needs to have a certain measure of job satisfaction, which enhances performance. HR development, therefore, involves not only improving staff competence, but also employment practices, career structures, and professional and financial incentives for proven results. The performance of employees should be linked to both sanctions or incentives (e.g., career progression). In the past, an official undergoing training and qualifying for a "Post Graduate Diploma in Urban Development" would be awarded with two advanced increments in his/her salary. This is not being practiced currently, but incentives for the acquisition of accredited qualifications should be reconsidered, especially for the WSSC, which ideally should be fully corporatized.

33 International Benchmarking Network (https://www.ib-net.org/).

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E. STRATEGIC ACTION PLAN FOR URBAN DEVELOPMENT

E.1. Integrated urban sector development and spatial planning

E.1.1. Key planning principles and application

177. The city development plan should adhere to internationally accepted key planning principles to reduce urban sprawl, inefficient land use, high car dependency and other urban problems. Table 22 shows the five principles promoted by UN-Habitat.34 Incorporation of such principles will help build a sustainable relationship between urban dwellers and urban space, support the provision of local services, and increase the value of urban land.

Table 22: Principles for sustainable and integrated urban planning Principle Explanation Indicators 1. Adequate An adequate level of street network that • 30-45% of land is allocated for roads space for works for vehicles, public transport, and and parking. streets and pedestrians. • At least 15-20% is allocated for open an efficient public space. street • In commercial centres, roads and network parking should be at least 40-60%. • 18 km of street length per square kilometre. • 800-1,000 metre distance between two arterial routes 2. High High density has economic, social and • UN-Habitat model: At least 15,000 density environmental benefits, such as people per km² (150 people/ha) efficiency by having more people per • European compact perimeter block area, better public open spaces, model: 3,000-6,000 people per km² reduced public service costs, better (30-60 persons/ha).35 community service, Increased energy efficiency and decreased pollution. However, good design is required to achieve these benefits. 3. Mixed land Mixed land-use requires some • 40-60% of the floor area for economic use combination of residential, commercial, uses, 30-50% for residential use and industrial, office, or other land-use. 10% for public service use. When different functions are mixed in one neighbourhood, economic and residential activities should be made compatible and well balanced by careful design and management. 4. Social mix Houses should be available in different • 20-50% of the residential floor area is price ranges and tenure types in any distributed to low cost housing. given neighbourhood to accommodate • Each tenure type should be no more different incomes than 50% of the total.

34 UN-Habitat. 2014. A New Strategy of Sustainable Neighborhood Planning: Five principles - Urban Planning Discussion Note 3. Available from: https://unhabitat.org/a-new-strategy-of-sustainable-neighbourhood- planning-five-principles/. Accessed 30 Oct 2018. 35 Lehmann, S. 2016. “Sustainable urbanism: towards a framework for quality and optimal density?” In Future Cities and Environment (2016) 2:8. DOI 10.1186/s40984-016-0021-3.

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Principle Explanation Indicators 5. Limited Economic diversity is the aim. Zoning • Single function blocks should cover land-use regulating the use to which land may be less than 10% of any neighbourhood. specializati put must avoid the creation of single on function neighbourhoods, such as office block neighbourhoods that become deserted at night. Zoning policies need to be adjusted or changed to achieve this aim.

178. The application of international planning principles needs to start with defining official city limits and managing the direction of its spatial growth. The direction of growth will also need to take into account the economic corridors in the region, transport networks and the development of services infrastructure. In particular, to meet international standards for sustainable, livable cities, Mardan will need to implement the following:

• Urgently control and reduce urban sprawl, and implement increased densification and infill development within the current city limits; • Reduce single function blocks (including housing developments) through zoning regulations, and increase the floor area for economic uses, recreational and urban green spaces, and public use. • Avoid expanding on to productive agricultural land, land that is vulnerable to flooding and land that would affect drainage. • Re-define the city limits to accommodate all these concerns and manage the direction of growth. • Review and revise zoning regulations as needed, using international urban planning principles as a guide, and enforce the regulations.

179. In practice, this means that city planning authorities will need to:

• Consolidate the role of the city centre and increase urban density in the built-up areas in line with planning standards and norms. • Increase the use of the city floor area for economic use, roads, parking, and public spaces and increase the density in current residential areas, including by building up. • Discourage and/or preclude the conversion of productive agricultural land adjacent to and beyond the Ring Road. • Prohibit development on any land that would impede drainage or is vulnerable to flooding. • Plan future urban expansion towards the south of the District, between Charsadda Road and Nowshera Road, and also towards east of Nowshera Road, and within the southern segment of ring road36 to take advantage of opportunities such as regional development corridors, SEZs and transportation infrastructure. • Change the demarcation of city boundaries to incorporate appropriate peri-urban nodes. In this strategy, a dense urban core would be linked by efficient public transport networks to dense, mixed use, complementary sub-centersnodes. This would relocate economic activities towards the south, west and east of the city. Mixed use neighborhoods should be planned in line with the indicators shown in Table 22.

36 Government of Khyber Pakhtunkhwa. 2013. “Land-use Plan: District Mardan (Draft).” Peshawar: Urban Policy Unit, Planning & Development Department, GoKP.

42 KP-SISUG Mardan City Development Plan – Draft Final Report

• Increase the proportion of publicly spaces to at least 15 to 20 per cent in line with the planning norms.

E.1.2. Integrated urban sector development

180. Integrated urban planning has the overall aim of realizing a dynamic, economically inclusive and environmentally sustainable city outlines in section A of this report. To this end, provincial and city planning authorities will need to take into consideration the gaps, weaknesses and opportunities that have been identified in the previous sections, and implement strategies that best serve the demands of the growing population of Mardan.

181. There are five strategic areas that address the above objectives and ultimately contribute to the delivery of urban sustainability on an ongoing basis. These five strategic considerations are:

• Efficient urban land development and land allocation. • Infrastructure planning, particularly for municipal services (water and sanitation), traffic and transportation and power supplies. • Preparing the city to be resilient to climate change. • Sustainable funding of municipal services and infrastructure investments, including cost recovery. • Public sector governance, institutional and organizational arrangements for service delivery.

Figure 4: Conceptual framework for integrated urban sector development

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182. Key development strategies proposed for Mardan are explained in the following paragraphs.

183. Decisions on an urban development model. Rather than linear development along the highways or a business as usual scenario, it is recommended that the city authorities adopt a compact monocentric model that concentrates growth in the urban core, priority transformation areas, and key urban and transit-oriented nodes. An example of a concept developed on these principles is illustrated in Figure 5.

Figure 5: Conceptual urban development model for Mardan city

Legend: 1 = monocentric development; 2 = mixeduse development; 3 = urban development boundary; 4 = smart municipal infrastructure; 5 = special planning zone.

= high density urban nodes; = low density urban nodes.

184. The model illustrated in Figure 5 is based on a shift to a more efficient and inclusive compact monocentric development with the urban core (Inner City) connected to a series of sub-urban nodes surrounded by mixed-use areas, achieved by increasing urban density to 8,000-12,000 pp/km2 and moving public services and economic activities to the sub-urban nodes.

185. The model would need to be agreed upon by the various infrastructure and services sectors, and should build up existing developments, but seek to make these more in line with the overall development plan.

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186. Urban growth management. Once a model is adopted, the first step should be effective urban growth management through (a) the demarcation of the future city boundaries and (b) the management of urban sprawl. The city boundaries up to 2035 should be established to meet ultimately the international norms on densities and per capita land consumption set out in Table 15 (population projections and city area required) and Map 20. Once this has been established, urban sprawl needs to be controlled through zoning and regulations. Green spaces should be promoted in the suburban nodes. Peri-urban areas, in UCs such as Mayar, Mohabat Abad, Mardan Rural, and Sikandari Koorona must be prevented from further urban sprawl and instead, built up further and densified in line with international planning norms. Transport networks should be planned to accommodate people commuting from the suburban areas and to reduce dependency on private vehicle travel. Densification of current sub-urban nodes would help in reducing the urban foot print, decongesting much of the city, promoting efficiency in travel, and help to conserve green spaces and agricultural land between nodes (green buffer zones, Figure 5).

187. Development of mixed-used neighborhoods. All neighborhoods should strive to become self-contained areas that meet the diverse needs of local communities in housing, employment and leisure. To this end, a greater proportion of the land use plan should be allocated to community facilities and services than currently. The peri-urban areas can be a major focus for future investments in infrastructure and services; however the development of these areas should observe the planning norms as recommended in this report. Accordingly, the overall plan for every neighbourhood should have targets in terms of population density, street density, green spaces, and land use for 2025, 2030 and 2035.

188. Smart city growth calls for close coordination of spatial planning and infrastructure investment. Once the future city boundaries have been agreed on, key infrastructure sectors will need to plan the elements to meet the planning norms for both the city center and the peri- urban areas. Currently, many large residential urban areas lack basic services and community facilities. Public green space and public facilities should aim to increase the overall resilience of the city, such as the integration of open spaces into storm water management systems, the establishment of water retention ponds, facilities for the re-use of waste water and sewerage, and green infrastructure design (e.g., green roofs). Water-sensitive landscape planning and urban infrastructure design (streets, buildings and services infrastructure) should incorporate social, cultural and economic aspects to reduce fragmentation and support social inclusion. Public facilities should be planned with the catchment areas and capacities used in international planning standards. E.2. Strategic priorities and actions

189. The suggested interventions set out below will, in the short-, medium- and long-term (5 years, 10 years and 15 years), make a major contribution to improving the provision of infrastructure and municipal services, the sustainability of municipal services, enhancing urban governance and, overall, will stimulate economic growth and clustering, at the same time protecting and enhancing opportunities for vulnerable groups and disadvantaged communities.

190. Priority areas for intervention are set out for:

• Infrastructure; • Service delivery; • Public sector governance; and

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• Capacity development; • Disaster and climate change risk management.

E.2.1. Key infrastructure investments and priorities

E.2.1.1. Water supply

191. Based on the target service levels and coverage in Table 18, potable water demand has been calculated for each UC based on projected populations in each UC using the intercensal growth rates recorded between 1998 and 2017. The calculated water demand is summarized in Table 23.

Table 23: Projected potable water demand for Mardan urban areas[1] Year Urban UCs Urban UCs Future Urban UCs Currently Served Currently Unserved Currently Unserved Population Demand Population Demand Population Demand (m3/day) (m3/day) (m3/day) 2019 217,259[2] 10,863 113,321 - 264,508 - 2025 292,143 20,450 134,383 3,136 340,276 - 2030 322,167 28,995 155,160 13,964 421,372 18,962 2035 356,377 39,201 179,423 19,737 523,581 57,594 Notes: [1] This assessment excludes any requirement for fire-fighting and any potential demand from industry. [2] Estimated that 58% of the population within the current urban area is supplied from the municipal system.

192. The projected potable water demand, based on Table 18 and Table 23, is as follows:

• 2025: 23,586 m3/day, 57 percent more than the current production capacity; • 2030: 61,921 m3/day, more than four times the current production capacity; and • 2035: 116,532 m3/day, almost eight times the current production capacity.

193. The projected potable water demand excludes any provision for water losses. The production capacity needs to be greater than the projected demand to cater for unaccounted water losses. Accordingly, the required production capacity (Table 24) has been assessed based on the following assumptions:

• 45 percent unaccounted water loss estimated in 2019; • Unaccounted water loss reduced to 35 percent by 2025; • Unaccounted water loss further reduced to 25 percent by 2030; and • Unaccounted water loss of 15 percent assumed by 2035.

194. In order to ensure a safe and adequate potable water supply, it is essential that the municipal water supply system is expanded to cover all of the urbanized area in order to reduce, as far as practicable, the current reliance on shallow groundwater sources that are at risk of contamination. The extension of the municipal water supply system also has the benefit on controlling unregulated abstractions which, as demand increases, could result in uncontrolled groundwater depletion. Future industrial development, and provision for fire- fighting, will also need a suitable and adequate supply of water.

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Table 24: Projected water production requirement to serve Mardan urban areas[1] Year Demand % Water Volume of Unaccounted Total Production (m3/day)[2] Loss[3] Water (m3/day) Requirement (m3/day) 2019 10,863 45 8,887 19,750 2025 23,586 35 12,700 36,286 2030 61,921 25 20,640 82,561 2035 116,532 15 20,564 137,096 Notes: [1] This assessment excludes any requirement for fire-fighting and any potential demand from industry. [2] From Table 23. [3] Target values, requiring a sustained program and specific interventions to reduce leakage from the distribution system and to eliminate illegal connections.

195. There is, therefore, an urgent need to begin to (i) upgrade water production capacity; and (ii) in parallel, upgrade the water distribution system in order to reduce losses from unaccounted for water and to mitigate the potential for cross-contamination from other water sources so as to ensure water quality is fit for consumption at the point of delivery.

196. In addition to reducing water losses to make more efficient use of available production capacity, there are two main ways to upgrade production capacity and water availability:

• Abstraction from surface water sources, allied with additional storage capacity; and/or • Provision of additional tube wells to abstract from the groundwater aquifer, allied with enhanced pumping and storage capacity.

197. Rainwater harvesting could also be adopted, in order to reduce the use of potable water for non-potable uses (for example, laundry, car washing, irrigation/watering of green spaces). However, this will not be a suitable source to cater for potable water demand.

198. Potential surface water sources are available within 15-20 km upgradient of Mardan, either in the Kabul River system or the Kalpani Nullah system. Such sources, if viable and of appropriate quality, would be able to provide all of the additional water demand projected for Mardan to 2035. A feasibility study is required to assess the requirements—take-off points and headworks, plant location, transmission line sizing and routing, treatment process(es), sizing of storage tanks, etc.—for meeting projected water demands from surface water sources.

199. As an alternative, the existing groundwater aquifer could be exploited further by the installation of additional tube wells covering the whole of the future urban area. The number, location and spacing of such wells would need to be determined and verified through hydrogeological assessments in order to avoid over-pumping and subsequent depletion and excessive drawdown of the aquifer.

200. In addition to new tube wells, there is a requirement, and to construct new OHRs to provide a minimum of three hours storage capacity in the distribution system. Whilst, in theory, direct pumping avoids the need for additional storage, it is vulnerable in practice to interruptions from power outages and, therefore, it is recommended to provide additional capacity to meet minimum storage requirements.

201. An assessment of potential infrastructure requirements for meeting projected potable water demand up to 2035 is summarized in Table 25, assuming all demand is met from groundwater sources.

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Table 25: Projected infrastructure requirements based on abstraction of groundwater Year Water Operational Tube Wells Operational OHRs Required[3] Production Required[2] 3 [1] (m /day) Minimum Capacity Minimum Capacity Capacity No. (m3/day) No. (m3) (gallons) 2019 19,750 33 12,758 6 2,728 600,000 2025 36,286 60 22,478 10 4,546 1,000,000 2030 82,561 136 63,180 23 10,320 2,300,000 2035 137,096 226 123,323 39 17,275 3,800,000 Notes: [1] Includes allowance, as per Table 24, for leakage and non-revenue water. [2] Assessed on the basis of an average pumping capacity of 67.5 m3/hour (15,000 gallons per hour), operating 9 hours per day. The minimum calculated values exclude any spare capacity and contingency provisions. [3] Assessed on the basis of 3 hours minimum storage capacity. Each OHR sized at 100,000 gallons (454.6 m3) capacity.

202. Where feasible and economic, the existing dysfunctional tube wells (12 No.) and OHRs (4 No.) should be rehabilitated and brought back into production. However, assuming these non-functional facilities are not capable of being rehabilitated cost-effectively, Table 25 indicates the need for the following minimum additional production facilities based solely on ground abstraction:

• 2019: a minimum of eight additional tube wells (new or rehabilitation of existing tube wells) and 50,000 additional storage capacity; • By 2025: a minimum of 27 new tube wells and an additional 400,000 gallons of storage capacity; • By 2030: a minimum of 76 new tube wells and an additional 1.3 million gallons of storage capacity; and • By 2035: a minimum of 90 new tube wells and an additional 1.5 million gallons of storage capacity.

203. In conjunction with investment in increased production capacity, it is recommended that a community-education program is implemented, targeted on the efficient use of water and the adoption of water conservation measures.

204. All functional tube wells and pumps (existing and new) should be instrumented, including installation of flow meters. Supervisory Control and Data Acquisition (SCADA) systems and equipment for centralized management, monitoring and control should also be provided.

205. In order to ensure appropriate water quality, all production and storage facilities (production wells and OHRs) should also be fitted with disinfection facilities.

206. In addition to the above, by 2035 the existing distribution network will need to be replaced progressively throughout the currently served area and the distribution network expanded to cover all presently unserved areas within the expanded city limit.

207. The new distribution network should be sized based on hydraulic analyses in order to deliver an adequate volume of water to the most hydraulically remote fixture during minimum pressure and maximum flow conditions.

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208. No detailed information exists currently on the location and nature (materials of construction, sizing) of the water distribution network since no records were provided by the TMA when the system was handed over to WSSC Mardan in 2016. However, a preliminary estimate of overall network length has been made based on an assumed pipe length of 30 km per km2 of developed area (Table 26).

Table 26: Assessed length of existing and future pipe network[1] in Mardan urban areas Year Urban UCs Served Urban UCs unserved Future Urban UCs[2, 3] New (as of 2019)[2, 3] (as of 2019)[2, 3] Pipe Length Area Served Length Area Served Length Area Served Length [4] (km2) (km) (km2) (km) (km2) (km) (km) 2019 22.6 509 0 0 0 0 0 2025 26.6 599 7.0 158 0 0 248 2030 26.6 599 21.1 476 36.37 546 864 2035 26.6 599 21.1 476 72.74 1,092 546 Source: Calculations by the project consultants. Notes: [1] Estimated network length includes pipes of all sizes from tertiary connections to primary lines. [2] Area served is derived from the area of each UC and the service coverage as per Table 18. [3] Since around 50% of the currently-designated urban area is under agricultural use it is assumed that even after urban expansion by 2035 at least 25% of the currently-designated urban area (12 km2) and at least 50% of the future urban area (36 km2) would remain under agricultural use. Hence the calculation for pipe network length is based on this assumption. [4] Table 26 indicates the projected need for the following phased improvements to the potable water supply network: • By 2025, rehabilitation and upgrading of 509 km of pipeline within the existing service area and the installation of 248 km of new pipeline to parts of the urban UCs currently unserved; • By 2030, installation of an additional 318 km of new pipeline to currently unserved urban UCs within the city and the installation of 546 km of new pipeline to expand service coverage to half of the future urbanized UCs that lie within the expanded city limit, as per Map 20; and • By 2035, installation of an additional 546 km of new pipeline to expand service coverage to all of the future urbanized UCs that lie within the expanded city limit, as per Map 20.

209. The need for pumping stations to augment pressure in the distribution network cannot be established in the absence of a detailed Feasibility Study of the entire system.

210. Meters should be installed progressively for every consumer as part of the distribution system rehabilitation and upgrade. This will require the number of registered metered conenctions to be increased from 5,700 (Table 11) to approximately 145,000 by 2035.

211. In the period up to 2025, three variants of metering systems—pre-paid, manual postpaid and automatic/digital (SMART) post-paid—can be trialled and the most viable variant deployed in all subsequent installations. It is proposed that trials are undertaken in three District Metered Areas (DMAs) in the UCs of Bicket Gunj (2,650 hh), Bari Cham (2,880 hh) and Muslimabad (5,000 hh).

E.2.1.2. Sewerage and Drainage

212. There are two priority areas for improvement (i) progressive development of a functioning sewage system independent from the drainage system; and (ii) provision of treatment facilities to manage and treat the collected sewage and waste water.

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213. A new sewer system will need to be established with the following components (i) trunk (primary) sewers; (ii) tertiary lines connecting to individual properties; and (iii) secondary sewers linking the tertiary connections to the trunk lines.

214. Existing sewer lines may be rehabilitated if they can be readily located and are assessed to be in a suitable condition. Existing sewer lines, where developed, were designed as a gravity-based system without the use of pumping stations.

215. Based on the target service levels outlined in Table 19, the estimated length of the sewer network to be installed up to 2035 has been assessed based on an assumed pipe length of 30 km per km2 of developed area; the assessed requirement is summarized in Table 27.

Table 27: Estimated length of sewer network required to be developed[1] Year Urban UCs (2019) Future Urban UCs Overall Expanded City New Pipe Service Sewer Service Sewer Service Sewer Length Coverage Length (km) Coverage Length (km) Coverage Length (km) (km) 2019 0% 0 0% 0 0% 0 0 2025 50% 536 0% 0 28% 536 536 2030 75% 805 33% 364 55% 1,169 633 2035 90% 966 60% 655 75% 1,621 452 Source: Calculations by the project consultant. Notes: [1] Estimated network length includes pipes of all sizes from tertiary connections to trunk sewers. [2] Area served is derived from the area of each UC and the service coverage as per Table 19. [3] Since around 50% of the currently-designated urban area is under agricultural use it is assumed that even after urban expansion by 2035 at least 25% of the currently-designated urban area (12 km2) and at least 50% of the future urban area (36 km2) would remain under agricultural use. Hence the calculation for pipe network length is based on this assumption.

216. The exact lengths of each type of functional sewer, including pipe diameter, design flow rates and capacity and the requirement for pumping stations, will be established during detailed design.

217. In parallel with constructing the sewer network, it is necessary to develop suitable treatment capacity, otherwise sewage and waste water will continue to be discharged untreated into the drainage network. Treatment capacity will need to increase as the sewage network is developed.

218. The required treatment capacity up to 2035 has been calculated based on the target service levels outlined in Table 19 and the assessed potable water demand at consumer level in the served areas, as set out in Table 23. The treatment process is assumed to be based on a trickling filter process, a robust system with low investment, comparatively small footprint and energy demand and low odor emissions, although there are many different treatment process options available.

219. Table 28 provides an overview of principal process flows and infrastructure requirements based on a trickling filter process.

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Table 28: Sewage treatment capacity and projected flows Year Population Estimated Primary Trickling Secondary Thickened Connected Dry Weather Settling Filter Tanks Settling Sludge to Sewerage Flow [2] Tanks [3] [3] Tanks [3] Produced [4] [1] m3/day No. No. No. m3/day 2019 0 0 0 0 0 0 2025 213,265 11,700 1 2 1 298 2030 497,050 38,500 3 5 3 696 2035 796,370 87,600 7 8 7 1,114 Source: Calculations by the project consultant. Notes: [1] Refer to Table 11. [2] Assuned at 14 hours per day. [3] All tanks sized based on a tank diameter of 36 m. [4] Thickening assumed to achieve 40% reduction in volume.

220. Treatment capacity will need to be developed in stages, responding to the increase in population, increase in potable water availability/consumption (Table 23) and increase of sewerage connections to the treatment plant (Table 27).

221. The existing non-functional treatment plant site at University Road extends to 13.7 ha. (137,000 m2), whilst the remaining part of the treatment plant site adjacent to the motorway is approximately 5.1 ha in extent (51,000 m2).

222. The gross footprint of the treatment plant infrastructure, excluding provision for buffer zones and drying beds, and based on adopting trickling filters and the dry weather flows set out on Table 28, is estimated to be:

• 1.5 Ha. for the treatment capacity required by 2025; • 3.6 Ha. for the treatment capacity required by 2030; and • 6.9 Ha. for the treatment capacity required by 2035.

223. Sufficient area is available at the two existing plants to develop treatment capacity up to and beyond 2035. It is recommended that the site at University Road is re-developed first to cater for flows from the existing urban area. The second, smaller site adjacent to the motorway should be developed by 2030 to cater for the southern part of the expanded urban limit of Mardan, including the future urban UCs as the sewage network is developed in this area (Map 32).

224. A Feasibility Study should be undertaken to ascertain the viability of resource recovery from the treatment process, based on the principles of circularity. The study should assess the business case for the use and application of (i) digested sludge (organic fertilizer); and partially-treated, nutrient-rich water, to agricultural land under crops (except those crops grown for human consumption).

225. In addition, the anaerobic digestion of sludge will generate biogas which could be used for energy recovery. The optimal local use of any biogas produced needs to be established; this could include, for example, on-site electricity generation to meet treatment plant power requirements, or export off-site for use in industrial processes, for injection in the gas network or for bottling for cooking purposes.

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E.2.1.3. Solid waste management

226. As noted in Section D.3.4.3 above, the management of municipal solid waste requires considerable improvement in service provision in the following areas:

• Collection capacity and operational capability; • Sanitary methods of disposal of municipal solid waste; and • Resource recovery, including diversion of waste from final disposal to land.

227. Suggested key priority interventions to achieve these objectives are set out below, based on the target service levels detailed in Table 20.

228. There are no reliable figures for current waste generation. Based on waste characterization studies conducted in Punjab Province37 for similar sized cities, the current per capita waste generation rate of municipal solid waste is assumed to be of the order of 0.35 kg/day. Commercial and institutional premises usually produce an additional quantity of waste of between 25% and 30% above that produced by city inhabitatnts. Accordingly, an overall waste generation rate of approximately 0.45 kg per person per day can be assumed based on the resident city population, resulting in an estimated total generation of 168 tpd of municipal solid waste38 currently.

229. Projections of waste generation and collection up to 2035, based on the target service levels outlined in Table 20, are summarized on Table 29.

Table 29: Projected waste generation and collection (tons per day) Year Generation Existing Urban UCs Future Urban UCs Rate[3] kg/pcd Population Generation Collection Population Generation Collection [1] (tpd) (tpd) [2] (tpd) (tpd) 2019 0.45 374,205 168.4 117.9 264,508 119.0 0.0 2025 0.50 426,526 213.3 181.3 340,276 170.1 42.5 2030 0.55 477,327 262.5 236.3 421,372 231.8 115.9 2035 0.60 535,801 321.5 305.4 523,581 314.1 235.6 Source: Calculations by the project consultant. Notes: [1] Population from Table 13. [2] Population derived from Table 17. Future urban UCs as per Table 16. [3] Per capita waste generation rates usually increase over time as societies become more affluent and with increasing levels of economic development. A nominal increase of 0.01 kg pcd has been assumed from 2020, representing an increase of approximately 2% per annum.

230. Given the rapid increases in projected waste quantities to be managed up to 2035 (Table 29), there is an urgent need for a detailed review and upgrade of the current solid waste management system in order to meet future demand for cost-effective, efficient and comprehensive services.

37 Government of the Punjab. 2016. Waste Amount and Characterisation Study: Segregation Treatment and Disposal Project, Sahiwal. Lahore: The Urban Unit, GoPb. 38 Municipal solid waste (MSW) is usually considered to comprise waste generated from households, commercial and institutional premises, markets and public spaces, and street sweeping. Construction debris, agricultural waste, industrial waste, clinical waste and sludges are not normally considered to be part of MSW, notwithstanding that some of these may be collected and co-disposed with MSW.

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231. The manual handling of MSW should be minimized as far as practicable. Whilst there are some limitations in this regard with respect to primary collection, it is imperative that secondary collection and waste transfer is undertaken mechanically, on health, efficiency and financial considerations. Accordingly, it is proposed that the collection system is upgraded to facilitate mechanical loading of waste into collection vehicles from compatible containers. One potential scenario for the mix of equipment required is illustrated on Table 30.

Table 30: Preliminary assessment of potential equipment requirements for waste collection Year Waste Containers Collection Fleet [7]

Collected 3 [2] 3 [3] 3 3 [5] (tpd)[1] 1.1 m 5 m Capacity 8m RCV 13m RCV Hook Lift (tpd) [4] [6] 2019 117.9 120 30 120 4 4 5 2025 223.8 240 60 240 8 8 10 2030 352.2 360 90 360 12 12 15 2035 541.0 560 140 560 19 18 24 Source: Calculations by the project consultant. Notes: [1] From Table 29. [2] Standard HDPE or metal container, assumed maximum load 450 kg. Emptied daily. [3] Closed/lidded hooklift or arm roll container, assumed maximum load 2,200 kg. Emptied daily. [4] Refuse compactor to lift 1.1m3 containers, maximum load 5 tons. 3 trips per day to the transfer or disposal site. Assume that collects 50% of waste in 1.1m3 containers. [5] Refuse compactor to lift 1.1m3 containers, maximum load 8 tons. 2 trips per day to the transfer or disposal site. Assume that collects 50% of waste in 1.1m3 containers. [6] Hook lift or arm roll truck for 5 m3 container. Assume 6 trips per day to disposal site. [7] Excludes spares, contingencies and replacements. The exact mix of equipment is subject to detailed analysis and review, the location and length of collection rounds, and travel distance to the disposal site or any intermediate transfer station.

232. Collection system improvements must be integrated with other elements of the solid waste management system, including transfer, treatment and disposal components.

233. The landfill site south-west of the city (Map 30) should be designed and developed as a matter of priority in order to eliminate the haphazard and unsafe disposal of MSW within the city limits.

234. The efficiency of the collection system, with a consequent reduction in investment requirements for collection vehicles, can be improved signficantly through the introduction of intermediate transfer stations. Typically, transfer stations are justified economically where the haul distance of collected waste exceeds 15 km to 20 km. The distance at which transfer stations become economic depends to a large extent on the types of collection vehicles employed (for example, volumetric/load capacity and fuel economy) and the road conditions (for example, level of congestion) which influence travel times between the collection zone and disposal site.

235. For Mardan, it is recommended that two transfer stations are constructed as the quantity of waste to be collected and hauled increases over time. It is proposed that one transfer station serve the current urbanized areas, including the city centre, whilst the second serves the urbanizing UCs in the southern part of the future expanded city. Both transfer stations should be located close to, or along, the ring road to facilitate access to the landfill site and avoid travel on the congested roads through the city centre (Map 32).

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236. The transfer stations should be of modular design, capable of being expanded over time, with initial design capacities of 250 tons per day. The northern transfer station should be developed first in parallel with the construction of the landfill site.

237. It is recommended that the sites of the transfers stations should be of sufficient size to incorporate workshop facilities for vehicle maintenance and for overnight parking of collection vehicles.

238. Each transfer station could also incorporate a materials recovery facility if a policy is adopted by WSSC Mardan to introduce segregation of waste at source as a means of promoting recycling and re-use of materials, and to divert waste from final disposal to land or other forms of treatment. If implemented, it is recommended that segregation should initially be limited to two categories only – dry, recyclable materials (paper, cardboard, glass, metals, plastic, etc.) and wet, general waste. Adoption of source segregation must be accompanied by an extensive information and education campaign over a sustained period of time, including monitoring of the effectiveness of the campaign and the success of source separation.

239. The implementation of segregation at source would require changes to the collection system (collection method and vehicle types) and the associated development of processing facilities and markets to absorb any source separated materials. In the absence of markets for the recovered materials there is no merit in segregating these, since they will ultimately need to be disposed. Accordingly, any decision to implement segregation at source must be founded on a comprehensive assessment of the demand for different recovered materials and detailed plans to develop the capacity to handle and absorb these materials and transform them into useful products.

240. Current recycling efforts are based on informal systems, undertaken primarily by waste pickers, hawkers and collection personnel who sell on recovered materials to wholesale buyers. Although few details are currently available, The quantity of materials recovered daily appears to be low, estimated to be around 4 tons39, comprising primarily paper, plastic, PET bottles, metal and rubber. Limited information on waste composition from 2012 indicated that around 27% of the waste stream at household level comprised dry, potentially recyclable, materials, 20% was vegetable matter, and the balance mixed general waste, the majority of which was reported to be organic in nature.40

241. Implementation of source segregation would effectively prohibit the use of compaction equipment for those dry materials destined for recycling or re-use, requiring different types of collection vehicles than assumed in Table 30.

242. With respect to final disposal of MSW, the available void capacity of the landfill site depends upon the geometry of the cells that are developed and the landfill engineering measures adopted. It is estimated that the available void capacity within the existing site limits lies in the range of 1.355 million m3 to 1.860 million m3.41 The capacity and lifespan of the site could be increased significantly were to be acquired adjacent to the northern boundary of the site.

39 UN. 2012. Baseline Study for SWM in Mardan Pakistan. Islamabad: UN-Habitat and UN-ESCAP. 40 UN. 2012. Baseline Study for SWM in Mardan Pakistan. Islamabad: UN-Habitat and UN-ESCAP. 41 Government of Khyber Pakhtunkhwa. 2017. Pakistan – Khyber Pakhtunkhwa Inclusive Urban Growth Program: Final Report. Peshawar: Urban Policy Unit, Planning & Development Department, GoKP and Cities Development Initiative for Asia, ADB.

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243. Preliminary calculations of the lifespan of the landfill, based on the target service levels in Table 20 are summarized on Table 31. The calculations indicate the site can accommodate the projected quantities of waste to be landfilled up to 2035, assuming the waste diversion targets can be met. Failure to meet the specified target for waste diversion, or by providing alternative treatment facilities for managing the waste, will result in the landfill reaching capacity prior to 2035.

Table 31: Treatment and disposal requirements for municipal solid waste Year Waste Waste Void Space Consumed Cumulative Void Waste Diverted Collected [1] Landfilled [2] [3] Space from Landfilling Consumed [4] [2] tpd tpd m3/year m3 tpd 2019 117.9 0 0 0 0 2025 223.8 201.5 101,130 356,560 22.3 2030 352.2 281.8 141,430 983,100 70.4 2035 541.0 324.6 162,900 1,754,700 216.4 Source: Calculations by the project consultant. Notes: [1] From Table 29. [2] Refer to Table 20. [3] Assumes in situ compacted density of 0.8 t/m3 and 10% provision for daily and intermediate cover, excluding final capping. [4] Assumes landfill begins receiving waste at the beginning of 2022.

244. The lifespan of the landfill site could be enhanced through the progressive adoption of alternative treatment technologies, including, potentially, composting, anaerobic digestion and incineration or other forms of waste-to-energy processes. There is, however, no nformation on the chemical properties of the waste stream that would permit a preliminary assessment of the feasibility of any of these options.

245. Composting of green waste is best undertaken in conjunction with composting of agricultural waste streams. Composting of municipal waste is not recommended unless it is restricted only to source-segregated clean green waste components (for example, tree and grass cuttings). Cross-contamination from other waste components renders ‘compost’ derived from mixed municipal waste unable to achieve certification as compost and, thus, it is unmarketable.

246. Development of anaerobic digestion of organic waste can be undertaken at the landfill site, potentially in conjunction with the digestion of sludges from the waste water plants. Source-segregated food waste is best suited to this method of treatment.

247. In order to achieve the waste diversion targets set out in Table 20, a sustained effort will be required to increase the quantity of materials recovered from the waste stream. However, in itself, this will not be sufficient and it is considered likely that some form of waste combustion will need to be implemented.

248. At present waste quantities collected in Mardan are not sufficient to justify the development of waste-to-energy plants, nor is it clear that the waste has sufficient calarofic value to combust waste economically without extensive pre-treatment and sorting to produce refuse-derived fuel with the required characteristics.

249. Two options are, therefore, available: (i) to develop a regional waste-to-energy facility to which Mardan would be a supplier of waste, together with other cities in the region such as,

55 KP-SISUG Mardan City Development Plan – Draft Final Report for example, Peshawar, Nowshera and Charasadda; or (ii) defer development of a facility for Mardan until waste quantities are sufficiently high to be able to develop and operate a plant at a cost that is deemed to be affordable. The timescale for this latter option is likely to extend beyond 2035.

E.2.1.4. Transportation

250. Mardan, being at crossroads of motorway, national highways and intercity routes, needs integrated and intermodal transporation facilities. As the very first step, the main bus terminal should be shifted to the site acquired on Mardan Ring Road till an intermodal transport hub at the site of the existing railway station is developed along with a second hub adjacent to the motorway/ring road. There is also need to construct parking plazas adjacent to intermodal hubs to facilitate intercity passengers.

251. In parallel, a Feasibility Study to provide public transportation system based on both rail and bus transport should be undertaken to reduce pressure on the city roads along with plans for integrated transport hub at the site of the railway station should be developed. In the wake of the proposed circular railway, encroachments from the right of way of the railway line should be removed.

252. A comprehensive traffic study for road and rail movements, including identifying locations for public stops/interchanges needs to be undertaken. The intercity bus transport should be prohibited from entering the city inside Mardan ring road to relieve traffic congestion and use of electric and hybrid vehicles should be promoted as public transport to reduce air pollution.

253. The current Mardan ring road needs to be upgraded to dual lane each way to divert traffic from the city center. There is also need to construct passenger stations along major roads to facilitate connections between the city core and sub-urban nodes. The key commercial streets in the city core may be pedestrianized to ease the traffic congestion.

E.2.1.5. Public spaces and green buffers

254. To preserve green spaces in Mardan and preclude further urban sprawl, the designation of public spaces should increase from a minimum of five percent to around 15 percent of the urban area. Not only that green infrastructure and public open spaces should be upgraded and developed implementing the Mardan beautification project, the public open spaces should be redeveloped to promote recreational use and integrated with storm water management systems.

255. The current planning regulatory standards (KP Model Building By-laws, 2017) should be strictly enforced to provide nine m2 space per person in residential areas and at least one neighborhoods park of 0.4-1.2 ha at a spacing of 400-800 m. There is also need to develop a green buffer zone up to 50 m wide along the Kalpani River and other main streams. Gradually, the green public spaces should be interlinked thourgh green corridors.

E.2.1.6. Tourism

256. In order to fully expoit tourism potential of Mardan, a comprehensive plan to promote Mardan and surrounding areas as a tourist destination should be developed. There is need to further develop the tourist attractions within and around the city, while a tourism information centre may be set-up at the intermodal transportation hub.

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E.2.2. Sustainable service delivery

257. Sustainable service delivery of utilities is directly related to the degree to which a utility is able to recoup all operational maintenance and capital expenditures from revenues. Only through consistent and secured financial coverage can a utility focus on its core tasks. The revenue may be generated from payments by users, or from payments (subsidies) from government.

258. Beyond the financial sustainability aspect there are of course other issues that bear directly on the ability of the utility to work sustainably, including the political context, access to suitable human resources and effective leadership. This section, particularly, focuses on the cost recovery and financing aspects of sustainability.

259. The Government of Khyber Pakhtunkhwa established an independent corporate utility company—Water and Sanitation Services Company Mardan (WSSCM)—in 2016 with the sole task of taking over the water supply, wastewater and solid waste management facilities from the Tehsil Municipal Administration under a Services and Assets Management Agreement.

260. On the basis of the analysis of the WSSCM Budget 2018-19 as presented by the WSSCM and projections till 2023, the resource gap deficit for the WSSCM is PKR 232.94 million in 2018-19, and will turn into a resource gap surplus of PKR 487.65 million in 2023. The results are summarised in Figure 6 and details are given in Table 2 of Appendix 5. These numbers are based upon assumptions of tariffs based on average monthly household income of PKR 49,91042 and international standard water services tariff affordability rates of three to five percent (WB & UNDP), and subsidization by the Government of Khyber Pakhtunkhwa and TMA. For these calculations an affordability rate of four percent has been used. Actual transfers by the TMA or Government of Khyber Pakhtunkhwa to the WSSCM may differ from projections and may reduce the projected surplus.43

261. In terms of improving sustainability of the WSSCM, there are several approaches that can be considered. These vary from conventional to more innovative approaches.44

42 Government of Pakistan. 2017. Household Integrated Economic Survey 2015-16. Islamabad: Pakistan Bureau of Statistics, GoP. 43 Public Expenditure Review for Mardan, prepared by the project consultant. 44 These approaches and options have been discussed with the management of the WSSCM.

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Figure 6: Revenue and expenditure for WSSC Mardan vis-à-vis urban population

5,000 600

4,500 500 4,000 Thousands 3,500 400 3,000

2,500 300

2,000

PKR in millions 200 1,500 Urban population

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Total Receipts Total Expenditure Urban Population

E.2.2.1. Increasing revenue collection

262. Whereas currently user charges for domestic and commercial connections are collected on a “flat rate” basis in Mardan, it is strongly recommended to develop the water supply services by gradually installing meters at user level. This will provide a more equitable distribution of payments and will allow users to become more aware of the cost of using water. In the first instance the installation of pre-paid meters for all domestic and commercial connections is proposed to be paid out of the ADB funds. This would immediately have the following positive impact:

• Increase revenue collection from users to almost 100%; • Minimize non-payments; • Improve the utility’s cash flow (in terms of quantity and reliability); • Reduce overheads associated with debt collection; and • Allow more resources to be used for promoting efficient use of water and better solid waste/sewerage practices.

263. If the installation of pre-paid meters is considered too complex or expensive at this stage of development of the services of the WSSCM, regular meters may be considered. In this case it is proposed that billing of water use is done concurrently with the billing of services for waste water, solid waste, and ideally also electricity. This would provide a strong incentive for payment, again thereby reducing the effort required for revenue collection by the WSSCM. However, crucial for this is that the WSSCM continues to provide and improve services in order to demonstrate to users that they are receiving good value for their money. It should be noted that the cost and installation of meters has not been included at this stage.

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E.2.2.2. Reducing losses

264. Non-revenue water (NRW) is estimated between 35-45 percent in Mardan.45 Considering the fact that each cubic meter lost, whether through non-recorded use, or through physical losses, is valuable in terms not only as a resource, but also as possible income for the WSSCM. Sustainability of the WSSCM would be greatly enhanced through reduction of NRW.

265. Common approaches to reducing losses are through focused projects in which District Metered Areas (DMA) are delineated. These allow the utility to find and repair leaks and other network bottlenecks. Furthermore, a structured leakage detection and repair process as part of network management would further reduce losses and repair leaks on short notice. This would also improve relationships with users because disruptions to services will be reduced.

266. On the administrative side, the utility needs to be able to identify those users that are allowed to use water from the network but are not charged for this. These often include mosques, schools and other public buildings. From a policy perspective it may be acceptable not to charge these entities for water. This needs to be discounted in the overall pricing and accounting, or charged on appropriate tarrif because of the heavy usage involved.

E.2.2.3. Communication

267. Another vital approach to reducing losses is the introduction of communication measures to inform beneficiaries of WSSCM services of possible disruptions, water quality issues, and most of all, the importance and relevance of water conservation. In the absence of a price initiative to conserve water (water is still relatively cheap), awareness of the scarcity of clean drinking water should be communicated.

268. In recent years, the development of the web and new media (websites, blogs, Facebook, Twitter, YouTube, etc.) has completely altered communication strategies, media tools and contents. The main features of this new media are freedom of choice, dialogue, and participation. This is the reason why the choice of adequate communication tools becomes more and more complex.

269. Another difficult choice is the need to employ new narrative techniques. The digital revolution has enhanced the success of this new media, but social networks are the real turning point in the relationship between brands, communication, and people.

270. This means that a new consumer has shown up; someone who wants to contribute to communication by providing his/her own opinion and telling his/her own experience. Therefore, in order to reach their targets, social and marketing communication campaigns have had to adopt new formats within their narrative systems, providing plenty of information, but also enabling full interaction with consumers. For the WSSCM, adopting these communication tools and improving the customer service experience will allow the company to introduce water conservation measures.

45 Government of Khyber Pakhtunkhwa. 2017. Pakistan – Khyber Pakhtunkhwa Inclusive Urban Growth Program: Final Report. Peshawar: Urban Policy Unit, Planning & Development Department, GoKP and Cities Development Initiative for Asia, ADB.

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E.2.2.4. Additional sources of income for the WSSCM

271. To a certain extent there is a disincentive for the company to generate sufficient additional revenue. By generating revenue through other budget lines than the conventional ones, the WSSCM could find that the TMA will reduce transfers to the WSSCM. It is proposed that TMA transfers are linked to performance indicators such as number of users connected, collection rates and targets for minimising leakages and waste. These indicators should be based on core activities and not take account of initiatives taken by WSSCM to generate other revenue sources. This would mean the level of funding is more assured and the WSSCM has an incentive to be innovative in generating revenue from by-products and other services. This is why a serious consideration of the benefits of developing alternative sources of energy as a by-product for sale may be relevant.

272. A very modest calculation shows that in Mardan, approximately PKR 37 million can be generated from a combination of biogas production from sewage, selling of treated waste (but nutrient-rich) water for agriculture, and use of sludge as fertilizer for agriculture. This would constitute roughly five percent of the current expenses of the WSSCM. Whereas this amount may seem small, the calculation is made on the basis of a very modest assessment of the value of the biogas, treated wastewater and sludge. With more proactive interventions and an entrepreneurial approach, the value of these products could increase and provide more revenue. It must also be remembered that this revenue would be very sustainable. With the expected expansion and population growth the production of these additional resources will only increase.

E.2.2.5. Regulatory capacity

273. In the paragraphs above many (financial) approaches to improving the sustainability of the WSSCM have been proposed. However there are also a number of important approaches to improve the environment in which the WSSCM operates. These recommendations are relevant not only for the WSSCM, but also for the other WSSCs in KP.

274. For the WSSCM to be able to operate within a level playing field, and to provide checks and balances between the TMA, the WSSCM and beneficiaries, a basic form of regulation is required. This means that at the provincial level, a water regulator has to be appointed who oversees the pricing, quality and timeliness of the services provided by the WSSCM. The regulator can also be responsible for setting the performance indicators referred to above. This function cannot be fulfilled by the TMA, as the TMA is a stakeholder in the WSSCM, and also holds its purse strings. The regulator should be independent and equipped with appropriate resources (financial, expert and support staff, office space). Hence it is strongly advised to designate this regulator through a legislative process. The regulator may use licensing, tariffs, benchmarking and performance, and encouraging competition and regulatory incentives as main tools to enhance its regulatory performance.

E.2.3. Public sector governance and reforms

275. Addressing the challenges requires a review of mandates and capacities leading to political and technical decisions. Participation from provincial policy makers will be essential. The reform agenda should consider the following:

• Reaffirmation of WSSC Mardan’s mandate: According to its terms of reference, WSSC Mardan should become a citywide autonomous, corporate-governed utility

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providing high quality services. The review should confirm the mandate and identify the bottlenecks that impede the achievement of this mandate. • Capacities. It needs to acknowledge that staff capacities are a main barrier, and agree on solutions to resolve this. No single solution can address the inadequate human resource capacities and non-performance in WSSC Mardan. Instead, there should be debate, consideration and decision on the best mix of solutions, including (a) legislation that makes it possible to offer performance-based career advancements for government staff, and golden handshakes for non-performers; (b) contract employment, especially of lower echelon staff, as many banks have done, (c) natural attrition of non-performing government staff, and (d) capacity development for staff with potential. • Financial predictability and efficiency. While it is unrealistic to expect WSSC Mardan to become financially sustainable in the short to medium term, it is possible to have more predictable, better-planned financing strategies and greater efficiency than those in the current arrangement, which would help in moving towards the long-term target of financial sustainability. There is need to explore a range of measures and develop a tailored approach including the following: o For greater efficiency in reaching the poor: (a) stratified tariffs for water services for different classes of customers, with cross-subsidization, (b) connection rather than consumption subsidies, (c) pre-paid meters (possibly at subsidized tariffs for the poor) which allow households to control their total expense on the service, and (d) a voucher system or targeted cash transfers for the poor, based on means testing. o For greater financial predictability and more efficient planning: (a) establishment of an endowment fund by the provincial government, (b) provision of a single line grant through an annual transfer from the provincial government to WSSC Mardan, and (c) increased use of technology to improve efficiency, reduce unmetered water and illegal connections.

276. To garner political and public support for the decisions that ensue, such deliberations will require robust data and transparency on losses, revenue and poverty levels. Targeting of poor households could be done through existing social welfare information systems.46 Calculating the transfers needed from the provincial government (whether through annual grant or endowment fund) will require robust data on the losses made by WSSC Mardan, the losses that could be avoided, households’ willingness-to-pay, and the projection of revenue following new tariff structures and greater efficiency in operations.

277. Effective management information systems need to be established and strengthened. The administrative systems need to produce data robust enough for annual planning. Local surveys and censuses are periodically required, to produce disaggregated data. In addition, efficient and transparent complaint response mechanisms are required.

278. Capacity strengthening of the institutions responsible for planning, delivering, and management of urban services is a top priority. Appendix 6 provides further details on the context, challenges, opportunities and the way forward.

46 These include (but are not necessarily limited to) the National Socioeconomic Registry (NSER) of the Government’s Benazir Income Support Programme, an approach that uses poverty scorecard surveys to identify eligible households through proxy means. Available from https://www.pitb.gov.pk/bisp. Accessed 30 Sep 2018.

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E.2.4. Capacity development

279. The Project proposes the establishment and/or strengthening of strategic partnerships with existing institutes that can provide training courses with content, duration and assessment mechanism/certification tailored according to needs, mentioned in Table 21.47 The proposed institutions include:

• The Local Governance School is the training institute of the Local Government, Elections and Rural Development (LGE&RD) Department, Government of Khyber Pakhtunkhwa. It should be used for the training of local government staff and elected officials. The School has the mandate to (i) conduct pre-service and in-service training for all Local Council Service employees and elected representatives, (ii) coordinate all capacity building activities of local projects and development partners with the LGE&RD Department as well as with Tehsil Municipal Administrations (TMAs), and (iii) conduct trainings/orientations for other government officers on local governance and service delivery. However, the School lacks the required resources and facilities for training in the more technical sectors. • The National Institute of Management (NIM) Peshawar is part of the National School of Public Policy—a civil service training institution. The NIM is mandated with training of federal/provincial civil service officers, and mandated to organize Mid-Career Management Courses and Senior Management Courses, as well as other courses in collaboration with national and international organizations.48 It has adequate academic and residential facilities. • The Pakistan Academy for Rural Development (PARD), Peshawar interacts with local, provincial and federal governments, researchers, academicians and non- governmental organizations working for rural development. Its functions include research and capacity building through training. The training modules offered include development planning, public administration, local government, rural development, education and communication, women in development, agricultural extension, social surveys and research, and rural sociology.49 • National Institute of Urban Infrastructure Planning (NIUIP) is the first institute in Pakistan dedicated to urban infrastructure planning and engineering. NIUIP trains service professionals in key areas such as water supply, sanitation, waste management, land use, transportation systems, energy and environment, and GIS Modelling.50 In procurement, NIUIP could engage specialists of the Khyber Pakhtunkhwa Public Procurement Regulatory Authority (KPPRA) for the relevant courses. NIUIP offers state of the art technologies and equipment, such as satellite imagery, simulation modelling for water supply and sewerage systems, GPS and remote sensing tools, digital plotters, fully-equipped GIS lab with GIS scanners and GIS software, statistical analysis software and other applications. The NIUIP would be

47 This has been discussed with the management and instructional staff of the NIM and NIUIP, who have agreed in principle to develop this further. 48 http://nim.gov.pk/index.php. 49 http://www.pard.gov.pk/course.html. 50 NIUIP covers the following areas in its work: infrastructure and utilities planning, urban and regional planning, urban hydrology and hydraulics, land use planning, urban transportation planning., urban environment and energy planning, water supply and sanitation, solid waste management, spatial modelling and GIS applications, infrastructure development and finance, utilities planning & service delivery, environmental laws, land use regulation and enforcement, census data analysis and policy making, urban housing, urban economics, real estate markets, urban development and design, and financing of infrastructure projects.

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willing to provide the facilities for training of staff from WSSCs, City Development Authorities and other project entities. Based on the identified needs, the NIUIP is able to design assessment criteria and obtain approval from its Board to issue formal competency-based certificates/diplomas for the course graduates. The NIUIP is based at the University of Engineering & Technology (UET) Peshawar.

E.2.5. Disaster and climate change risk management

280. For Mardan, the impacts of climate change are projected to be related to an intensification of the current meteorological phenomena. Mardan weather is dominated by monsoon and has two significant seasons (i) summer and (ii) winter, the latter dominated by western, Iran and Afghanistan, precipitation. Because of climate change, the climate-indices analysis predicts an increase in extreme events such as intense precipitation and heat-waves. The most likely effects of these extreme events are sediment transportation, land degradation and flooding due to increased rainfall and, in dry periods, increase in evapotranspiration, water stress and groundwater recharge problems due to rise in temperatures and heat-waves. Future climate projections show that during the period 2011–2100, the maximum temperature could further rise by 1.55°C to 5.5°C, while minimum temperature could increase by 1.96°C to 6.61°C during monsoon season. Summer days, instead, are projected to be raised by 92.6 days during 2011–2100.

281. There are several implications for the city of Mardan which need to be taken into consideration in light of these projected changes. There are five main impacts that can be derived from the urban resilience assessments and the climate change documentation available. These are:

1. Increase drinking water demand due to increases in temperatures and decline in ground and surface water availability leading to drought-like conditions. 2. Increased flooding from storms and heavy rainfall resulting in damages to life and assets. 3. Increase mortality and morbidity in the region due to increased water runoff from storms which will increase the incidence of vector-borne diseases including dengue, malaria, and cholera. 4. Crop failure in surrounding peri-urban areas that could reduce regional food security. 5. Increase demand for climate-resilient infrastructures such as power plant, roads and other communication infrastructures, along with drainage and stormwater management systems.

282. Mardan’s situation and environmental vulnerability are worsened by the city historically lack of attention to urban planning. At the municipal level, lack of properly designed and managed systems for water supply, sanitation, transport, sewage, and drainage are critical issues making the city and its population vulnerable to uncertain climatic conditions. Essential municipal services are already under severe stress, and probably they will not be able to withstand the additional pressure exerted by climate change impacts. Furthermore, local government bodies and line departments are not sufficiently equipped to carry out a disaster and climate-resilient planning and urban management approach.

E.2.5.1. Flash floods

283. Most cities in Khyber Pakhtunkhwa fall victim to floods on a periodic basis. The extent of the flooding is usually a function of the following variables:

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• Amount and intensity of rainfall • The drainage system in the specific area; • The extent to which drains and culverts have been maintained and cleaned; • The extent to which excess water can be absorbed by topsoil; and • Siting, design and construction of roads, bridges and buildings.

284. Mardan is located in a valley delimited by mountains at its north. The valley is crossed by many rivers of which run-off are particularly consistent during periods of heavy rain. This run-off often brings with it significant amounts of sediment which is leached from soils higher up in the catchments.

285. The rainwater is drained through natural water channels crossing Mardan city. However, due to uncontrolled urbanization, surface interception has been reduced, as a consequence of this flash floods is increasing. Rivers and streams floods are mainly due to intense rainfalls events, while urban flooding is due to extreme rainfall events as well as the previously mentioned changes in land-use (converting bare soil to concrete-surface during residential area growth). Inadequate sewage and drainage system are also factor contributing to the floods problem. Intense precipitation events increased in the past and are projected to do the same in the next future. Thus, urban flooding caused by extraordinary precipitation events will become more recurrent and severe in the future.

286. There are various ways and means to address these floods in the context of urban planning and operations. However, some of these measures are costly and may have impacts on urban design and landscaping. It is therefore important for a city like Mardan to plan the risks of floods to be able to asses whether the costs and impacts are socially and financially acceptable. This entails a flood risk planning exercise which would result in flood risk mapping for Mardan. Since climate change will bring into play more unpredictable weather patterns, a basic flood mapping exercise and the resulting investments in diversions, culverts and other protection measures will be effective. E.3. Action plan

287. The action plan, with an indicative cost of US$ 603 million, has been segmented into three timeframes:

i. Short-term: from now to 2025 covering mostly the currently designated urban areas; ii. Medium-term: from now to 2030 covering almost all of currently designated urban areas and part of the future urban areas; and iii. Long-term: from now to 2035 covering almost entire expanded urban area.

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E.3.1. Short-term (up to 2025)

Component Strategic Action Time-based Action by 2025 Estimated Cost Intended Outcome (million USD) Land Use Consolidate • Prepare strategic development guidelines and policies 0.50 • Regularize and control Planning development around • Prepare zoning plans for all settlements within 5 km of development. Eliminate further the existing urban Mardan Ring Road unplanned urban sprawl. and sub-urban nodes • Delimit green buffer zones • Designate development areas • Review, update and finalize draft Land Use Plan and provide a basis for planning and optimizing service provision. Safe Water Upgrade water Hydrological study to assess and confirm the potential of 0.14 Provide alternative source of water Supply production capacity surface water sources, including flow capacity and water and reduce reliance on quality. groundwater in order to avoid long- For viable/feasible sources undertake detailed engineering 0.25 term depletion of the groundwater design of intake works and transmission and distribution aquifer. system. Hydrogeological assessment to establish locations, spacing, 0.20 Enhance groundwater production sizing and production rates of new tube wells in 14 No. UCs capacity to 36,400m3 per day to Develop 35 No. new tube wells, with a capacity of 67.5 m3/h 1.40 provide access to clean water for (15,000 gallons/h) each, of which 11 No. will be in 5 No. UCs approximately 41,500 households currently unserved and the remainder in existing served UCs Repair and rehabilitation of 12 No. tube wells, where feasible, 0.24 for standby production capacity Provision of Motor Control Units (MCUs), bulk flow meters and 0.48 pressure gauges in all functioning tube wells (maximum 72 No.) Provision of disinfection units at all functioning tube well 1.08 facilities (maximum 72 No.) Upgrade existing Rebuilding of 4 No. OHRs, each of 4,546 m3 (100,000 gallon) 1.20 Provision and rehabilitation of storage system capacity, sufficient to provide 3 hours’ storage capacity overhead reservoirs with Upgrading of 3 No. existing OHRs to provide 4,546 m3 0.75 disinfection units will provide capacity, for provision of 3 hours’ storage capacity from sustained access to clean water to existing 1 hour 41,500 households

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Component Strategic Action Time-based Action by 2025 Estimated Cost Intended Outcome (million USD) Provision of disinfection units in 12 No. OHRs 0.36 Construction/ Replacement of 509 km existing water supply pipelines by PE 25.45 Provision and replacement replacement and pipes, including connections to individual properties transmission and distribution pipes extension of Provision of new distribution network to the length of approx. 12.40 will ensure sustained supply of transmission and 248 km with necessary accessories for unserved areas clean water to 41,500 households water distribution pipelines Rehabilitate 13 No. filtration plants and provide an additional 2.30 10 No. filtration plants in 5 No. currently unserved UCs Establishment of • Establishment of DMAs in 3 pilot UCs of Bicket Gung 1.25 These interventions will result in District Metered (2,650 hh), Barhi Cham (2,880 hh) and Muslimabad safe water supply to approximately Areas (DMAs) and (5,000). 10,530 households implementation of • Trial installation of 7,500 postpaid meters and 3,030 Non- Revenue Water prepaid meters in the DMAs (NRW) reduction • Undertake NRW program throughout the existing served program area Metered customer • Increase the number of metered connections to 41,500 1.30 Postpaid and prepaid meters will connections households by 2025 ensure revenue collection from approximately 41,500 households Sewage and Provision of sewer • Rehabilitation/construction of approximately 536 km of 56.00 The first step in sewerage drainage system sewers, including trunk, secondary and tertiary sewage treatment is to convey and treat management lines sewage of about half of the city • Construction of pumping stations, as required. comprising UCs of Bicket, Gunj, Bari Cham, Muslimabad and Guli Bagh, and parts of C.D Bijli Ghar, Baghdada, Hoti and Mardan Khas. It will benefit about 213,000 people in the area.

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Component Strategic Action Time-based Action by 2025 Estimated Cost Intended Outcome (million USD) Construction of new • Development of treatment system based on the principles 15.00 Dry weather flow of the STP is wastewater of circularity for resource recovery and re-use estimated at 11,700 m3/d. This will treatment plant • Construction of new treatment system at the existing remove 9,500 kg/d of Biochemical (STP) University Road site, based on the use of trickling filters or Oxygen Demand (BOD) and similar process. Construction of 1 No. primary settling produce an effluent meeting the tank, 2 No. trickling filter tanks, 1 No. secondary settling NEQS for wastewater discharge to tank and 3 No. sludge thickening tanks. inland waters i.e. 80 mg/l for BOD • Provision for sludge digestion and biogas production. and 200 mg/l for suspended solids. • Pump stations for effluent discharge. Maintenance of Acquisition of various items, including suction unit, high 2.50 Preventative maintenance of sewerage and pressure jetter, venching machine, water bowser, combined sewerage and drainage network existing drainage sucker & jetting unit, de-silting grab, high pressure wash systems module and mobile pump/dewatering sets Procurement of Acquisition of gas monitoring equipment and water quality 0.10 Safe operation for workers portable equipment monitoring equipment for health & safety and environmental monitoring Solid waste Extension of service • Extension of primary and secondary waste collection to all 0.50 Collection service extended to management coverage 14 UCs in the current urban limits. 100% of the current urbanized • Take over primary and secondary collection in Sheikh area. Maltoon Town. Improvement of solid • Acquisition of equipment for primary collection (for 8.50 Hygienic, efficient and cost effective waste collection example, push/hand carts and mini tippers) system for the collection of system • Acquisition of equipment for mechanized (secondary) municipal solid waste throughout collection (compactor trucks (16 No.), hook lift trucks (10 the urbanized area serviced by No.)). WSSC Mardan • Acquisition of mechanized street sweeper (2 No.) and road washer (1 No.). • Acquisition of miscellaneous mobile plant including dump trucks (2 No.) and rubber- tired excavators (2 No.). • Acquisition of Industry-standard 240 L wheelie bins (500 No.), 1,100 L containers (240 No.) and larger capacity (4- 5 m3) metal lidded containers (60 No.)

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Component Strategic Action Time-based Action by 2025 Estimated Cost Intended Outcome (million USD) Development of • Undertake design of transfer system requirements 3.75 Improve efficiency of waste waste transfer • Locate and acquire sites for future transfer stations collection system and facilitate system • Develop one transfer station with an initial capacity of 250 materials recovery prior to transfer tpd. Suggested location adjacent to/part of existing railway to landfill site station site on N45. • Develop provision for small materials recovery facility at the transfer station for dry recyclable materials Treatment and • Conduct topographic, geological, hydrogeological and 8.50 Provide hygienic and secure disposal of waste hydrological surveys to confirm site suitability. disposal of all collected municipal • Undertake Environmental Impact Assessment solid waste • Prepare detailed engineering design.of landfill site. • Construct support facilities (office, weighbridge, workshop) and site infrastructure (e.g. perimeter road) • Develop Cells 1 and 2 to provide at least 4 years void capacity • Procurement of operating equipment • Undertake waste composition and characterization 0.25 Determine which alternative forms analysis to determine the viability of alternative forms of of treatment may be appropriate for treatment diverting waste from landfilling • Undertake market assessment for recovered materials and products • Assessment requirements for segregation at source Information, IEC program engaging multiple communication channels 0.20 IEC program to elevate community education and awareness on waste minimization, communications reuse and recycling as well as for program anti-littering campaigns

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Component Strategic Action Time-based Action by 2025 Estimated Cost Intended Outcome (million USD) Transportation • Re-locate main bus terminal to site acquired on Mardan 3.50 system ring road, pending development of an intermodal transport hub at the existing railway station. • Undertake Feasibility Study to provide public transportation system based on both rail and bus transport. • Develop plans for integrated transport hub at the site of the railway station • Remove encroachers from the right of way of the railway line • Complete traffic study for road and rail movements, including identifying locations for public stops/interchanges. • Prohibit inter-city bus transport from entering the city inside Mardan ring road to relieve traffic congestion. • Promote the use of electric and hybrid vehicles to reduce air pollution Public Spaces Upgrade and • Implement Mardan beautification project 6.50 • Preserve green spaces in and Green develop green • Increase the area of designated public spaces to a Mardan and preclude further Buffers infrastructure and minimum of 5% of the urban area urban sprawl. public open space • Re-development of public open spaces to promote • Increase area of green space in recreational use and to integrate with storm water the city. management systems • Adopt current planning regulatory standards (KP Model building by-laws 2017) by providing 9 m2 per person in residential areas (approximately 370 Ha.) and one neighborhoods park of 0.4-1.2 Ha. at a spacing of 400- 800m. • Begin developing a green buffer zone up to 50 m wide along the Kalpani River and other main streams Tourism • Develop plans to promote Mardan and surrounding areas 1.25 as a tourist destination. • Provide tourist information office in the city

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Component Strategic Action Time-based Action by 2025 Estimated Cost Intended Outcome (million USD) Sustainable Enhance revenue • Introduce circularity to waste water management 0.00 service generation and processes – use of partially treated effluent for irrigation delivery collection and production of biogas from digestion of sludge • User charge based on consumption rather than flat rate [costs are already fee covered above] • Regular review of charges to reflect actual operational costs and investments made to improve service delivery Water conservation • Reduce NRW through replacement of leaking pipes 0.30 and minimization • Reduce illegal connections by completing inventory of assets • Extensive communication program highlighting measures to conserve water, reduce waste generation and enhance waste diversion (material recovery and re-use). Governance Promoting the • Capacity strengthening of the institutions responsible for 2.50 and Capacity capacity of WSSCM planning, delivering, and management of urban services Building to deliver urban • Introduction of performance-based career advancement, services with regular performance reviews • Retirement of non-performing staff. • Introduction of effective management information systems • Establishing and/or strengthening strategic partnerships to provide training Total for short-term action plan 158.65

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E.3.2. Medium-term (up to 2030)

Component Strategic Action Time-based Action by 2030 Estimated Cost Intended Outcome (million USD) Land Use Consolidate • Prepare urban development plans for strategic areas of 0.50 • Regularize and control Planning development around the city to guide development and renovation development. Eliminate further the existing urban • Formulate integrated development plans for key sub- unplanned urban sprawl. and sub-urban nodes urban nodes focused on densification of existing built-up • Designate development areas areas and provide a basis for • Re-inforce planning regulations prohibiting conversion of planning and optimizing service agricultural lands to maintain green buffers between sub- provision. urban nodes Safe Water Upgrade water • Construct intake works and transmission and distribution 50.00 Provide alternative source of water Supply production capacity system for surface water source(s) and reduce reliance on • Construct treatment plant and storage reservoir to cater groundwater in order to avoid long- for 20,000 m3/day (approximately 25% of calculated term depletion of the groundwater production) aquifer. Hydrogeological assessment to establish locations, spacing, 0.30 Enhance groundwater production sizing and production rates of new tube wells in 21 No. UCs capacity to 36,400m3 per day to Develop 40 No. new tube wells, with a capacity of 67.5 m3/h 1.60 provide access to clean water for (15,000 gallons/h) approximately 93,000 households Provision of Motor Control Units (MCUs), bulk flow meters and 0.30 pressure gauges in all functioning tube wells Provision of disinfection units at all functioning tube well 0.50 facilities Upgrade existing Construction of 13 No. OHRs, each of 4,546 m3 (100,000 3.90 Provision and rehabilitation of storage system gallon) capacity, sufficient to provide 3 hours’ storage capacity overhead reservoirs with Provision of disinfection units in 13 No. new OHRs 0.39 disinfection units will provide sustained access to clean water to 93,000 households

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Component Strategic Action Time-based Action by 2030 Estimated Cost Intended Outcome (million USD) Construction/ Provision of new distribution network to the length of approx. 45.00 Provision and replacement replacement and 864 km with necessary accessories for unserved areas transmission and distribution pipes extension of will ensure sustained supply of transmission and clean water to 93,000 households water distribution pipelines Establishment of • Extension of DMAs to 14 No. UCs. 2.00 These interventions will result in District Metered • Continue NRW program throughout the served area safe water supply to approximately Areas (DMAs) and 10,530 households implementation of Non- Revenue Water (NRW) reduction program Metered customer Increase the number of metered connections to 93,000 1.80 Postpaid and prepaid meters will connections households by 2030 ensure revenue collection from approximately 93,000 households Sewage and Provision of sewer • Rehabilitation/construction of approximately 633 km of 65.00 Extension of the sewer network will drainage system sewers, including trunk, secondary and tertiary sewage benefit about 500,000 people in the management lines area. • Construction of pumping stations, as required. Construction of new • Expansion of treatment plant at University Road. 25.00 Dry weather flow of the STP is wastewater • Construction of second treatment plant at the site estimated at 38,500 m3/d. This will treatment plant adjacent to the motorway, based on the use of trickling remove 9,500 kg/d of Biochemical (STP) filters or similar process. Oxygen Demand (BOD) and • Construction of additional 2 No. primary settling tank, 3 produce an effluent meeting the No. trickling filter tanks, 2 No. secondary settling tank and NEQS for wastewater discharge to 3 No. sludge thickening tanks. inland waters i.e. 80 mg/l for BOD • Provision for sludge digestion and biogas production. and 200 mg/l for suspended solids. • Pump stations for effluent discharge. Maintenance of Replacement of mobile plant and equipment. 1.50 Preventative maintenance of sewerage and sewerage and drainage network existing drainage systems

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Component Strategic Action Time-based Action by 2030 Estimated Cost Intended Outcome (million USD) Procurement of Acquisition of gas monitoring equipment and water quality 0.10 Safe operation for workers portable equipment monitoring equipment for health & safety and environmental monitoring Solid waste Extension of service Extension of primary and secondary waste collection to all 21 0.50 Collection service extended to management coverage UCs in the expanded urban limits. 100% of the current urbanized area. Improvement of solid • Replacement of, and acquisition of, equipment for primary 10.00 Hygienic, efficient and cost effective waste collection collection (for example, push/hand carts and mini tippers) system for the collection of system • Replacement of, and acquisition of, equipment for municipal solid waste throughout mechanized (secondary) collection (compactor trucks (12 the urbanized area serviced by No.), hook lift trucks (8 No.)). WSSC Mardan • Replacement of mechanized street sweeper (1 No.) and road washer (1 No.). • Replacement of miscellaneous mobile plant including dump trucks (1 No.) and rubber- tired excavators (1 No.). • Acquisition of Industry-standard 240 L wheelie bins (500 No.), 1,100 L containers (120 No.) and larger capacity (4- 5 m3) metal lidded containers (30 No.) • Introduce segregation at source for 50% of the served area. Development of • Develop second transfer station with an initial capacity of 2.75 Improve efficiency of waste waste transfer 250 tpd. Suggested location adjacent to Mardan Ring collection system and facilitate system Road in the south-east part of the city. materials recovery prior to transfer • Develop provision for small materials recovery facility at to landfill site the transfer station for dry recyclable materials Treatment and • Develop Cells 3, 4 and 5 to provide at least 6 years void 4.50 Provide hygienic and secure disposal of waste capacity disposal of all collected municipal • Replacement of operating equipment solid waste

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Component Strategic Action Time-based Action by 2030 Estimated Cost Intended Outcome (million USD) • Monitor waste composition and characterization at least 3.25 Determine which alternative forms yearly of treatment may be appropriate for • Develop treatment plant for diverting organic waste from diverting waste from landfilling landfill and for producing biogas and soil conditioner. Information, Continue IEC program engaging multiple communication 0.20 IEC program to elevate community education and channels awareness on waste minimization, communications reuse and recycling as well as for program anti-littering campaigns Transportation • Develop intermodal transport hub at the site of the railway 12.50 system station and second hub adjacent to the motorway/ring road • Design upgrade Mardan ring road to dual lane each way to divert traffic from the city center • Construct parking plazas adjacent to intermodal hubs • Construct passenger stations along major roads to facilitate connections between the city core and sub-urban nodes • Pedestrianize key commercial streets in the city core Public Spaces Upgrade and • Increase the area of designated public spaces to a 9.50 • Preserve green spaces in and Green develop green minimum of 12.5% of the urban area Mardan and preclude further Buffers infrastructure and • Re-development of public open spaces to promote urban sprawl. public open space recreational use and to integrate with storm water • Increase area of green space in management systems the city. • Create continuous green buffer zone up to 50 m wide along the Kalpani River and other main streams • Begin to link green public spaces by green corridors Tourism • Implement plans to promote Mardan and surrounding 2.25 areas as a tourist destination. • Develop tourist attractions within the city Sustainable Enhance revenue • User charge based on consumption rather than flat rate 0.00 service generation and fee delivery collection • Regular review of charges to reflect actual operational costs and investments made to improve service delivery

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Component Strategic Action Time-based Action by 2030 Estimated Cost Intended Outcome (million USD) Water conservation • Reduce NRW through replacement of leaking pipes 0.30 and minimization • Reduce illegal connections by completing inventory of assets • Extensive communication program highlighting measures to conserve water, reduce waste generation and enhance waste diversion (material recovery and re-use). Governance Promoting the • Continue capacity strengthening of the institutions 1.25 and Capacity capacity of WSSCM responsible for planning, delivering, and management of Building to deliver urban urban services services • Retirement of non-performing staff. • Upgrade management information systems Total for medium-term action plan 244.89

E.3.3. Long-term (up to 2035)

Component Strategic Action Time-based Action by 2035 Estimated Cost Intended Outcome (million USD) Land Use Consolidate • Formalize expanded urban boundary. 1.50 • Regularize and control Planning development around • Update Land Use Plan and identify Special Planning development. Eliminate further the existing urban Zones (SPZ) unplanned urban sprawl. and sub-urban nodes • Designate at least 8% of the urban area as SPZ. • Designate development areas and provide a basis for planning and optimizing service provision. Safe Water Upgrade water • Expand surface water sources to provide at least 50% of 40.00 Provide alternative source of water Supply production capacity total production requirement. and reduce reliance on • Upgrade treatment plant and storage reservoir to cater for groundwater in order to avoid long- 70,000 m3/day (approximately 50% of calculated term depletion of the groundwater production) aquifer.

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Component Strategic Action Time-based Action by 2035 Estimated Cost Intended Outcome (million USD) • Hydrogeological assessment to establish locations, 0.30 Enhance groundwater production spacing, sizing and production rates of new tube wells in capacity to 70,000m3 per day to 21 No. UCs provide access to clean water for approximately 145,000 households • Develop 60 No. new tube wells, with a capacity of 67.5 2.40 m3/h (15,000 gallons/h) • Provision of Motor Control Units (MCUs), bulk flow meters 0.50 and pressure gauges in all functioning tube wells • Provision of disinfection units at all functioning tube well 0.75 facilities Upgrade existing Construction of 16 No. OHRs, each of 4,546 m3 (100,000 4.80 Provision and rehabilitation of storage system gallon) capacity, sufficient to provide 3 hours’ storage capacity overhead reservoirs with Provision of disinfection units in 16 No. new OHRs 0.48 disinfection units will provide sustained access to clean water to 145,000 households Construction/ Provision of new distribution network to the length of approx. 29.00 Provision and replacement replacement and 546 km with necessary accessories for unserved areas transmission and distribution pipes extension of will ensure sustained supply of transmission and clean water to 145,000 households water distribution pipelines Establishment of • Extension of DMAs to 21 No. UCs. 1.00 These interventions will result in District Metered • Continue NRW program throughout the served area safe water supply to approximately Areas (DMAs) and 145,000 households implementation of Non- Revenue Water (NRW) reduction program Metered customer Increase the number of metered connections to 145,000 1.80 Postpaid and prepaid meters will connections households by 2030 ensure revenue collection from approximately 145,000 households

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Component Strategic Action Time-based Action by 2035 Estimated Cost Intended Outcome (million USD) Sewage and Provision of sewer • Rehabilitation/construction of approximately 452 km of 48.00 Extension of the sewer network will drainage system sewers, including trunk, secondary and tertiary sewage benefit about 800,000 people in the management lines area. • Construction of pumping stations, as required. Construction of new • Expansion of 2 No. treatment plants 20.00 Dry weather flow of the STP is wastewater • Provision for sludge digestion and biogas production. estimated at 87,600 m3/d. treatment plant (STP) Maintenance of Replacement of mobile plant and equipment. 1.50 Preventative maintenance of sewerage and sewerage and drainage network existing drainage systems Procurement of Acquisition of gas monitoring equipment and water quality 0.10 Safe operation for workers portable equipment monitoring equipment for health & safety and environmental monitoring Solid waste Extension of service Extension of primary and secondary waste collection to all 21 0.50 Collection service extended to management coverage UCs in the expanded urban limits. 100% of the current urbanized area.

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Component Strategic Action Time-based Action by 2035 Estimated Cost Intended Outcome (million USD) Improvement of solid • Replacement of, and acquisition of, equipment for primary 14.00 Hygienic, efficient and cost effective waste collection collection (for example, push/hand carts and mini tippers) system for the collection of system • Replacement of, and acquisition of, equipment for municipal solid waste throughout mechanized (secondary) collection (compactor trucks (20 the urbanized area serviced by No.), hook lift trucks (12 No.)). WSSC Mardan • Replacement of mechanized street sweeper (1 No.) and road washer (1 No.). • Replacement of miscellaneous mobile plant including dump trucks (1 No.) and rubber- tired excavators (1 No.). • Acquisition of Industry-standard 240 L wheelie bins (500 No.), 1,100 L containers (200 No.) and larger capacity (4- 5 m3) metal lidded containers (50 No.) • Expand segregation at source to 100% of the served area. Development of • Upgrade northern transfer station to 350 tpd capacity. 2.50 Improve efficiency of waste waste transfer • Upgrade transfer fleet collection system and facilitate system materials recovery prior to transfer to landfill site Treatment and • Develop Cells 6 and 7 to provide at least 6 years void 3.00 Provide hygienic and secure disposal of waste capacity disposal of all collected municipal • Replacement of operating equipment solid waste • Monitor waste composition and characterization at least 13.25 Determine which alternative forms yearly of treatment may be appropriate for • upgrade treatment plant for diverting organic waste from diverting waste from landfilling landfill and for producing biogas and soil conditioner. • Trial small waste-to-energy plant Information, • Continue IEC program engaging multiple communication 0.20 IEC program to elevate community education and channels awareness on waste minimization, communications reuse and recycling as well as for program anti-littering campaigns Transportation • Construct additional parking plazas adjacent to intermodal 4.50 system hubs • Pedestrianize key commercial streets in the city core

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Component Strategic Action Time-based Action by 2035 Estimated Cost Intended Outcome (million USD) Public Spaces Upgrade and • Increase the area of designated public spaces to a 5.50 Preserve green spaces in Mardan and Green develop green minimum of 15% of the urban area and preclude further urban sprawl. Buffers infrastructure and • Link all green public spaces by green corridors Increase area of green space in the public open space city. Tourism • Implement plans to promote Mardan and surrounding 2.25 areas as a tourist destination. • Develop tourist attractions within the city Sustainable Enhance revenue • User charge based on consumption rather than flat rate 0.00 service generation and fee delivery collection • Regular review of charges to reflect actual operational costs and investments made to improve service delivery Water conservation • Reduce NRW through replacement of leaking pipes 0.30 and minimization • Reduce illegal connections by completing inventory of assets • Extensive communication program highlighting measures to conserve water, reduce waste generation and enhance waste diversion (material recovery and re-use). Governance Promoting the • Continue capacity strengthening of the institutions 1.25 and Capacity capacity of WSSCM responsible for planning, delivering, and management of Building to deliver urban urban services services • Retirement of non-performing staff. • Upgrade management information systems Total for long-term action plan 199.38

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Map 1: Khyber Pakhtunkhwa – administrative units

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Map 2: Mardan District – union councils

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Map 3: Mardan District – girded population

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Map 4: Mardan District – communications network

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Map 5: Mardan District – built-up area

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Map 6: Mardan District – unbuilt area

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Map 7: Mardan District – elevetion

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Map 8: Mardan District – geology

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Map 9: Mardan District – hydrology

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Map 10: Mardan District – river basins

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Map 11: Mardan District – slope profile

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Map 12: Mardan District – soil profile

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Map 13: Mardan District – topography

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Map 14: Mardan Tehsil – population density of union councils

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Map 15: Mardan City – urban area

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Map 16: Mardan City – urban union councils

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Map 17: Mardan City – land use

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Map 18: Mardan City – girded population

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Map 19: Mardan City – communications network

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Map 20: Mardan City – current urban sprawl

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Map 21: Mardan City – dwelling units

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Map 22: Mardan City – current social infrastructure

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Map 23: Mardan City – current transport infrastructure

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Map 24: Mardan City – current tube wells

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Map 25: Mardan City – current water pumps

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Map 26: Mardan City – current overhead tanks

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Map 27: Mardan City – current water filteration plants

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Map 28: Mardan City – current sewage and drainage infrastructure

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Map 29: Aerial viw of current non-functional sewage treatment plant # 1 in Mardan

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Map 30: Mardan City – current solid waste management infrastructure

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Map 31: Mardan City – administrative jurisdiction for municipal services

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Map 32: Mardan City – proposed infrastructure

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Appendix 1: District at a glance

Source: ADB. 2018. District Mardan: Overview for Resilience Accelerator Singapore with 6 Cities from Pakistan. Singapore: Urban Climate Change Resilience Fund, Asian Development Bank.

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Appendix 2: Urban sector stakeholders in Khyber Pakhtunkhwa

Stakeholder Water Sewage & SWM Transport Urban Tourism Inst. Dev & CB Supply Drainage Spaces Government of Khyber Pakhtunkhwa (GoKP) ◉ ◉ ◉ ◉ ◉ ◉ ◉ Planning & Development Department (P&DD) ◉ Local Government, Elections & Rural Development ◉ ◉ ◉ ◉ Department Culture, Sports, Tourism, Archaeology & Youth Affairs ◉ ◉ Department Water Supply and Sanitation Companies (WSSCs) ◉ ◉ ◉ City District Government (CDG), Peshawar ◉ ◉ ◉ ◉ ◉ ◉ Tehsil Municipal Authorities (TMAs) ◉ ◉ ◉ ◉ ◉ ◉ Neighborhood Councils (NCs) ◉ ◉ ◉ Cantonment Boards ◉ ◉ ◉ ◉ Development Authorities ◉

Asian Development Bank (ADB) ◉ ◉ ◉ ◉ ◉ ◉ ◉ Department for International Development (DFID) ◉ European Union (EU) ◉ ◉ ◉ ◉ International Development Association (IDA), The WB Group ◉ ◉ ◉ ◉ ◉ ◉ ◉ Japan International Cooperation Agency (JICA) ◉ Multi-Donor Trust Fund (MDTF) ◉ ◉ ◉ ◉ ◉ Saudi Fund for Development (SFD) ◉ Swiss Agency for Development and Cooperation (SDC) ◉ ◉ ◉ ◉ US Agency for International Development (USAID) ◉ ◉ ◉ ◉

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Appendix 3: Demographic parameters of Mardan District

3.a. Area, population, households and intercensal growth rates

Union Councils Locale Geographical 1998 2017 1998-2017 1998-2017 2 Area (km ) Population Households Density Population Households Density Population Housing Growth Rate Growth Rate KATLANG TEHSIL Alo UC Rural 33.51 17,899 2,157 534 31,840 3,637 950 3.08% 2.79% Babozai UC Rural 53.76 12,166 1,504 226 18,125 2,300 337 2.12% 2.26% Dheri UC Rural 23.39 22,097 2,597 945 32,808 3,726 1,402 2.10% 1.92% Jamal Garhi UC Rural 18.75 17,056 2,232 910 27,746 3,820 1,480 2.59% 2.87% Kati Garhi UC Rural 22.47 18,428 2,251 820 27,504 3,197 1,224 2.13% 1.86% Katlang-I UC Rural 13.50 15,856 2,005 1,175 24,132 3,064 1,788 2.24% 2.26% Katlang-II UC Rural 17.32 16,114 1,938 930 24,705 3,011 1,426 2.27% 2.35% Kharki UC Rural 45.56 13,466 1,523 296 22,666 2,730 498 2.78% 3.12% Kohi Barmol UC Rural 70.15 21,203 2,800 302 31,605 4,058 451 2.12% 1.97% Qasmi UC Rural 24.02 17,555 2,014 731 28,987 3,375 1,207 2.67% 2.75% Sawal Dher UC Rural 14.90 24,873 3,296 1,669 35,913 4,802 2,410 1.95% 2.00% Shamozai UC Rural 42.35 24,833 2,715 586 37,113 4,210 876 2.14% 2.34% MARDAN TEHSIL Mardan Cantt. Urban 1.90 7,297 745 3,835 6,871 718 3,612 -0.32% -0.19% Babiani UC Rural 13.44 25,858 2,938 1,923 40,962 4,921 3,047 2.45% 2.75% Bagh-e-Iram UC Urban 9.31 17,577 2,066 1,889 22,219 2,710 2,387 1.24% 1.44% Baghdada UC Urban 2.59 18,187 2,312 7,019 29,806 3,750 11,503 2.63% 2.58% Bakhshali UC Rural 11.05 16,838 2,151 1,524 26,279 3,446 2,379 2.37% 2.51% Bala Garhi UC Rural 17.30 13,202 1,651 763 20,933 2,647 1,210 2.46% 2.52% Bari Cham UC Urban 1.16 16,789 2,040 14,481 22,993 2,789 19,833 1.67% 1.66%

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Union Councils Locale Geographical 1998 2017 1998-2017 1998-2017 2 Area (km ) Population Households Density Population Households Density Population Housing Growth Rate Growth Rate Bazar UC Rural 148.81 22,286 2,878 150 39,422 5,016 265 3.05% 2.97% Bicket Gunj UC Urban 0.73 15,013 1,864 20,641 19,528 2,560 26,849 1.39% 1.68% Bijli Ghar UC Urban 1.05 16,111 1,923 15,302 26,443 3,296 25,115 2.64% 2.88% Chak Hoti UC Future Urban 12.39 21,874 2,383 1,765 44,208 5,226 3,568 3.77% 4.22% Chamtar UC Future Urban 12.59 14,077 1,531 1,118 29,437 3,259 2,337 3.96% 4.06% Charguli UC Rural 24.21 19,248 2,498 795 27,788 3,637 1,148 1.95% 2.00% Dagai UC Urban 5.54 15,835 1,903 2,856 17,814 2,336 3,213 0.62% 1.08% Fatima UC Rural 26.18 27,642 2,597 1,056 43,625 5,330 1,666 2.43% 3.86% Garhi Daulat Zai UC Rural 21.58 26,658 3,449 1,235 41,255 5,214 1,912 2.32% 2.20% Garhi Ismail Zai UC Rural 17.88 13,113 1,665 733 19,830 2,923 1,109 2.20% 3.01% Garyala UC Rural 34.22 15,999 2,181 468 21,580 2,881 631 1.59% 1.48% Ghala Dher UC Future Urban 29.76 22,293 2,653 749 36,823 4,546 1,237 2.68% 2.88% Gujar Garhi UC Future Urban 16.84 26,876 3,402 1,596 40,817 5,336 2,424 2.22% 2.40% Gujrat UC Rural 17.21 17,229 2,195 1,001 24,890 3,289 1,446 1.96% 2.15% Gull Bagh UC Urban 5.57 14,522 1,581 2,605 25,972 3,453 4,660 3.11% 4.20% Gumbat UC Rural 28.05 16,833 2,253 600 25,989 3,542 927 2.31% 2.41% Hoti UC Urban 1.63 21,858 2,617 13,389 35,112 4,467 21,508 2.53% 2.85% Kandar UC Rural 32.32 16,024 1,934 496 25,943 3,201 803 2.57% 2.69% Kas Karoona UC Urban 0.85 18,103 2,032 21,199 18,136 2,444 21,238 0.01% 0.98% Kata Khat UC Rural 33.10 18,801 2,244 568 29,489 3,594 891 2.40% 2.51% Khazana Dheri UC Rural 22.74 20,356 2,097 895 34,434 4,108 1,514 2.81% 3.60% Kot Daulat Zai UC Rural 9.01 13,321 1,807 1,478 20,660 3,052 2,292 2.34% 2.80% Machai UC Rural 41.19 13,969 1,888 339 23,740 3,150 576 2.83% 2.73% Maho Dheri UC Rural 18.69 14,160 1,425 758 27,351 3,099 1,464 3.53% 4.17% Mangah UC Rural 17.25 14,022 1,551 813 22,313 2,660 1,294 2.48% 2.88%

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Union Councils Locale Geographical 1998 2017 1998-2017 1998-2017 2 Area (km ) Population Households Density Population Households Density Population Housing Growth Rate Growth Rate Mardan Khas UC Urban 0.65 16,282 2,055 25,034 15,658 2,116 24,074 -0.21% 0.15% Mardan Rural UC Future Urban 6.71 24,250 2,604 3,616 59,422 6,979 8,860 4.83% 5.33% Mayar UC Future Urban 9.81 23,717 3,053 2,417 39,622 5,268 4,038 2.74% 2.91% Mohabat Abad UC Future Urban 21.85 24,471 2,857 1,120 71,086 9,213 3,253 5.77% 6.36% Mohib Banda UC Rural 16.21 20,275 2,392 1,251 34,514 4,327 2,129 2.84% 3.17% Muslim Abad UC Urban 1.17 19,348 2,168 16,548 36,909 4,611 31,568 3.46% 4.05% Palo Dheri UC Rural 81.37 21,137 2,805 260 32,708 4,249 402 2.32% 2.21% Par Hoti UC Urban 7.52 16,122 1,917 2,143 32,919 4,059 4,376 3.83% 4.03% Rorya UC Urban 6.72 14,462 1,709 2,153 22,910 2,821 3,410 2.45% 2.67% Rustam UC Rural 14.70 27,060 3,330 1,841 39,212 5,522 2,667 1.97% 2.70% Shahbaz Garhi UC Rural 15.89 23,087 3,029 1,453 37,295 5,132 2,347 2.56% 2.81% Shahmat Pur UC Rural 17.92 14,802 1,700 826 20,039 2,645 1,118 1.61% 2.35% Skandari Purdilabad Urban 1.31 18,420 2,184 14,093 25,314 3,299 19,367 1.69% 2.19% UC Toru UC Rural 30.25 27,320 3,012 903 43,124 5,593 1,426 2.43% 3.31% TAKHT BHAI TEHSIL Damen-I-Koh UC Urban 9.86 25,094 2,922 2,544 41,733 7,645 4,231 2.71% 5.19% Hatthian UC Rural 13.69 21,455 2,625 1,567 36,392 6,040 2,658 2.82% 4.48% Jahangir Abad UC Rural 26.51 19,973 2,040 753 39,574 5,637 1,493 3.66% 5.50% Jalala UC Rural 16.99 14,571 1,695 857 38,005 4,946 2,236 5.18% 5.80% Kot Jongarh UC Rural 30.50 16,477 1,879 540 29,473 4,325 966 3.11% 4.49% Lundekhwar UC Rural 15.61 25,597 2,901 1,640 46,105 5,757 2,954 3.15% 3.67% Makori UC Rural 13.24 17,793 2,007 1,344 20,959 2,615 1,584 0.87% 1.40% Manday Baba UC Rural 21.20 25,281 2,781 1,193 41,800 6,969 1,972 2.68% 4.95% Mian Isa UC Rural 46.69 27,367 3,117 586 43,951 5,299 941 2.52% 2.83%

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Union Councils Locale Geographical 1998 2017 1998-2017 1998-2017 2 Area (km ) Population Households Density Population Households Density Population Housing Growth Rate Growth Rate Narai UC Rural 23.49 24,530 2,574 1,044 36,397 5,414 1,550 2.10% 3.99% Parkho Dheri UC Rural 38.04 23,350 2,644 614 39,366 6,574 1,035 2.79% 4.91% Pat Baba UC Urban 10.13 24,108 2,587 2,380 38,988 6,308 3,849 2.56% 4.80% Pir Saddo UC Rural 30.32 25,603 2,940 845 42,276 5,632 1,394 2.67% 3.48% Saro Shah UC Rural 22.09 25,733 2,788 1,165 37,176 4,566 1,683 1.96% 2.63% Seri Behlol UC Rural 26.41 22,659 2,499 858 38,079 5,332 1,442 2.77% 4.07% Shergarh UC Rural 18.44 21,845 2,400 1,184 37,342 5,205 2,025 2.86% 4.16% Takar UC Rural 21.41 13,101 1,578 612 18,907 3,240 883 1.95% 3.86% MARDAN DISTRICT 1,632.55 1,458,807 172,278 894 2,373,061 311,868 1,454 2.59% 3.17% Source: Computed from 1998 and 2017 census data of the Pakistan Bureau of Statistics Notes: Urban UCs Future Urban UCs Rural UCs

3.b. Population estimates

Union Councils Locale 2025 2030 2035 Population Households Density Population Households Density Population Households Density KATLANG TEHSIL Alo UC Rural 40,579 4,532 1,211 47,220 5,200 1,409 54,948 5,966 1,640 Babozai UC Rural 21,438 2,750 399 23,809 3,076 443 26,442 3,440 492 Dheri UC Rural 38,748 4,338 1,656 42,995 4,770 1,838 47,708 5,245 2,039 Jamal Garhi UC Rural 34,055 4,790 1,816 38,707 5,517 2,064 43,995 6,356 2,346 Kati Garhi UC Rural 32,555 3,706 1,449 36,174 4,064 1,610 40,194 4,457 1,789 Katlang-I UC Rural 28,800 3,663 2,134 32,166 4,095 2,383 35,925 4,579 2,662 Katlang-II UC Rural 29,575 3,625 1,708 33,095 4,070 1,911 37,034 4,571 2,138

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Union Councils Locale 2025 2030 2035 Population Households Density Population Households Density Population Households Density Kharki UC Rural 28,222 3,490 620 32,367 4,070 710 37,120 4,746 815 Kohi Barmol UC Rural 37,389 4,744 533 41,531 5,231 592 46,131 5,767 658 Qasmi UC Rural 35,802 4,194 1,491 40,853 4,805 1,701 46,617 5,504 1,941 Sawal Dher UC Rural 41,920 5,626 2,813 46,174 6,212 3,098 50,860 6,859 3,412 Shamozai UC Rural 43,954 5,064 1,038 48,856 5,684 1,154 54,305 6,379 1,282 MARDAN TEHSIL Mardan Cantt. Urban 6,699 707 3,521 6,594 700 3,466 6,490 693 3,411 Babiani UC Rural 49,717 6,115 3,698 56,115 7,004 4,174 63,336 8,022 4,711 Bagh-e-Iram UC Urban 24,523 3,038 2,635 26,083 3,263 2,803 27,743 3,504 2,981 Baghdada UC Urban 36,698 4,597 14,162 41,792 5,221 16,129 47,594 5,930 18,368 Bakhshali UC Rural 31,696 4,202 2,869 35,635 4,757 3,225 40,064 5,385 3,626 Bala Garhi UC Rural 25,417 3,229 1,469 28,695 3,656 1,658 32,396 4,140 1,872 Bari Cham UC Urban 26,248 3,182 22,641 28,513 3,454 24,594 30,973 3,751 26,716 Bazar UC Rural 50,123 6,338 337 58,240 7,336 391 67,672 8,490 455 Bicket Gunj UC Urban 21,814 2,926 29,992 23,377 3,181 32,141 25,052 3,458 34,443 Bijli Ghar UC Urban 32,577 4,135 30,941 37,115 4,765 35,250 42,284 5,491 40,160 Chak Hoti UC Future Urban 59,452 7,274 4,798 71,545 8,944 5,774 86,098 10,997 6,948 Chamtar UC Future Urban 40,160 4,480 3,189 48,764 5,465 3,872 59,213 6,667 4,702 Charguli UC Rural 32,434 4,260 1,340 35,725 4,703 1,475 39,349 5,192 1,625 Dagai UC Urban 18,720 2,547 3,376 19,309 2,688 3,483 19,917 2,837 3,592 Fatima UC Rural 52,866 7,214 2,019 59,610 8,717 2,277 67,216 10,533 2,568 Garhi Daulat Zai UC Rural 49,583 6,205 2,298 55,621 6,918 2,578 62,394 7,713 2,891 Garhi Ismail Zai UC Rural 23,602 3,705 1,320 26,316 4,296 1,472 29,342 4,982 1,641 Garyala UC Rural 24,478 3,239 715 26,483 3,485 774 28,653 3,750 837 Ghala Dher UC Future Urban 45,487 5,703 1,529 51,909 6,571 1,744 59,238 7,572 1,991

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Union Councils Locale 2025 2030 2035 Population Households Density Population Households Density Population Households Density Gujar Garhi UC Future Urban 48,669 6,449 2,890 54,326 7,260 3,226 60,641 8,174 3,601 Gujrat UC Rural 29,060 3,900 1,689 32,014 4,337 1,860 35,268 4,824 2,049 Gull Bagh UC Urban 33,175 4,798 5,952 38,659 5,893 6,936 45,050 7,238 8,082 Gumbat UC Rural 31,204 4,285 1,113 34,983 4,827 1,247 39,218 5,437 1,398 Hoti UC Urban 42,867 5,595 26,259 48,562 6,440 29,747 55,013 7,413 33,699 Kandar UC Rural 31,778 3,958 983 36,074 4,519 1,116 40,950 5,159 1,267 Kas Karoona UC Urban 18,150 2,642 21,254 18,159 2,773 21,265 18,167 2,911 21,275 Kata Khat UC Rural 35,642 4,382 1,077 40,124 4,961 1,212 45,170 5,615 1,364 Khazana Dheri UC Rural 42,965 5,452 1,890 49,339 6,508 2,170 56,659 7,768 2,492 Kot Daulat Zai UC Rural 24,853 3,806 2,758 27,896 4,368 3,095 31,311 5,015 3,474 Machai UC Rural 29,679 3,908 720 34,124 4,471 828 39,235 5,116 952 Maho Dheri UC Rural 36,087 4,298 1,931 42,914 5,273 2,297 51,031 6,469 2,731 Mangah UC Rural 27,133 3,338 1,573 30,662 3,847 1,778 34,649 4,434 2,009 Mardan Khas UC Urban 15,402 2,142 23,681 15,245 2,159 23,439 15,089 2,175 23,199 Mardan Rural UC Future Urban 86,663 10,570 12,922 109,715 13,701 16,359 138,898 17,759 20,711 Mayar UC Future Urban 49,179 6,628 5,012 56,290 7,652 5,737 64,429 8,833 6,566 Mohabat Abad UC Future Urban 111,375 15,084 5,097 147,457 20,527 6,748 195,228 27,934 8,934 Mohib Banda UC Rural 43,179 5,554 2,663 49,667 6,491 3,063 57,131 7,587 3,524 Muslim Abad UC Urban 48,444 6,336 41,433 57,418 7,727 49,109 68,056 9,425 58,207 Palo Dheri UC Rural 39,309 5,061 483 44,095 5,645 542 49,464 6,297 608 Par Hoti UC Urban 44,462 5,567 5,911 53,650 6,782 7,133 64,738 8,262 8,607 Rorya UC Urban 27,807 3,484 4,139 31,385 3,975 4,672 35,425 4,535 5,273 Rustam UC Rural 45,840 6,833 3,118 50,540 7,805 3,438 55,723 8,916 3,790 Shahbaz Garhi UC Rural 45,640 6,408 2,872 51,780 7,361 3,258 58,745 8,457 3,696 Shahmat Pur UC Rural 22,765 3,186 1,270 24,654 3,579 1,376 26,700 4,021 1,490

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Union Councils Locale 2025 2030 2035 Population Households Density Population Households Density Population Households Density Skandari Purdilabad UC Urban 28,940 3,925 22,141 31,465 4,375 24,073 34,211 4,876 26,174 Toru UC Rural 52,262 7,258 1,728 58,933 8,542 1,948 66,454 10,053 2,197 TAKHT BHAI TEHSIL Damen-I-Koh UC Urban 51,700 11,462 5,242 59,106 14,763 5,993 67,571 19,015 6,851 Hatthian UC Rural 45,460 8,579 3,321 52,242 10,682 3,816 60,035 13,301 4,385 Jahangir Abad UC Rural 52,777 8,648 1,991 63,183 11,300 2,383 75,639 14,765 2,853 Jalala UC Rural 56,904 7,764 3,348 73,234 10,291 4,309 94,249 13,641 5,546 Kot Jongarh UC Rural 37,650 6,144 1,234 43,875 7,651 1,438 51,130 9,528 1,676 Lundekhwar UC Rural 59,068 7,683 3,784 68,961 9,201 4,418 80,511 11,020 5,158 Makori UC Rural 22,455 2,923 1,697 23,444 3,134 1,771 24,476 3,360 1,849 Manday Baba UC Rural 51,657 10,260 2,437 58,965 13,066 2,782 67,308 16,640 3,176 Mian Isa UC Rural 53,653 6,626 1,149 60,777 7,619 1,302 68,846 8,760 1,474 Narai UC Rural 42,975 7,404 1,830 47,678 9,004 2,030 52,895 10,950 2,252 Parkho Dheri UC Rural 49,049 9,647 1,289 56,276 12,260 1,479 64,568 15,580 1,697 Pat Baba UC Urban 47,735 9,181 4,713 54,172 11,608 5,348 61,477 14,676 6,070 Pir Saddo UC Rural 52,216 7,405 1,722 59,582 8,787 1,965 67,988 10,426 2,243 Saro Shah UC Rural 43,405 5,620 1,965 47,817 6,399 2,165 52,678 7,286 2,385 Seri Behlol UC Rural 47,382 7,336 1,794 54,317 8,955 2,057 62,268 10,932 2,358 Shergarh UC Rural 46,799 7,211 2,537 53,891 8,840 2,922 62,057 10,838 3,365 Takar UC Rural 22,065 4,386 1,030 24,301 5,301 1,135 26,764 6,405 1,250 MARDAN DISTRICT 2,940,811 406,741 1,801 3,373,337 482,578 2,066 3,879,414 574,803 2,376 Source: Computed from 1998 and 2017 census data of the Pakistan Bureau of Statistics Notes: Urban UCs Future Urban UCs Rural UCs

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Appendix 4: Population and demographic analysis

Mardan division comprises two districts of Mardan and Swabi. Total area of Mardan division is 3,175 Km2 (Mardan district 1,632 Km2 and Swabi 1,543 Km2). Mardan city is the divisional as well as district headquarter. From 1998 to 2017 population of Mardan division increased by 61%, from 2.48 million in 1998 to 3.99 million in 2017. In Mardan division the PGR was 2.53% in 2017.

Mardan is the second most populous district in the province. Its population was 2,373,061 in 2017 census. Population of the district was less than one million (881,465) in 1981 census which increased at PGR of 3.01% and reached 1,460,100 in 1998 census. The PGR has considerably declined to 2.58% in 2017 census. The district comprised two tehsils of Mardan and Takhat Bhai in the census of 1998. The third tehsil of Katlang was created after 1998. The census of 2017 includes three tehsils of Mardan. For the local government district was divided into 75 union councils until 2013. The district is now divided into 178 Village Councils in rural areas and 53 Neighbourhood Councils in urban areas.

Average household size in the district was 8.4 in 1998 which has come down to 7.6 in 2017 which indicates gradual decline in the joint family system. The sex ratio in the district has declined considerably from 107 in 1998 to 102 in 2017 which indicates improvement in enumeration of women. The density of population increased from 985 in 1998 to 1,454 persons per Km2 in 2017.

Mardan City

Mardan was the second largest city in KP in 1998 census with population of 245,926. In 2017 census total urban population of Mardan district was 439,325, which include population of one smaller urban settlements of Takhat Bhai tehsil. PGR of Mardan city was 3.11% in 1998 which has declined to 2.11% in 2017. This sharp decline in PGR could be due to expansion of several other housing colonies outside the municipal limits in Mardan since past three decades.

Mardan city comprised 14 urban Union Councils (UC) that formed the municipal committee of Mardan. In the 2013 Local Government Act, urban UCs were divided into Neighbourhood Councils. Now Mardan city has 39 Neighbourhood Councils and the total urban area is 47.71 km2. In addition to his there is mall military cantonment of about two km2. The population density of the town was 4,870 in 1998 which has increased to 7,318 persons per km2 in 2017.

No study is available about the slum areas and under-served areas in the town.

Urban sprawl in Mardan

Provincial government issued Site Development Schemes Rules in October 2005 to regulate development of housing colonies. The City Development and Municipal Department or the TMA will scrutinise the housing colony application to see that it fulfils the requirement of these rules. The application will be sent to seven-member scrutiny committee for further examination to make decision on its approval or rejection.

Private developers are not seeking government approval for setting up housing colonies as they have neither the capacity nor willingness to follow these rules. The first requirement is that any housing colony must be built on minimum 20 acre land free from any encumbrance and legally in possession of the developers. The housing colony shall be in conformity to the

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‘National Reference Manual on planning and Infrastructure Standards’. The scrutiny committee after its satisfaction about meeting standards will invite suggestions and objection on the housing colony through newspaper advertisement. The application for hosing colony will be granted approval after review of public suggestions and objections.

Figure 1: Population growth in Mardan City

400,000 364,640 350,000

300,000 245,926 250,000

200,000 141,842

Population 150,000 111,366 100,000 73,246 46,322 50,000

0 1951 1961 1972 1981 1998 2017 Census Year

Most private developers have neither the capacity nor willingness to comply with these rules. They announce societies and start selling plots without any government approval. In the meantime, regulators issue notices to these developers and sometimes advertise in papers that these are illegal colonies. This has no effect on buyers who start construction and get electric and gas connections for new houses in illegal housing colonies. Investment in land is very popular and highly profitable in short span of time. This is tenacious problem in almost all districts. This unregulated development of housing colonies in peri urban areas is major cause of haphazard urban development.

The government has not prepared or not enforced any master plan for urban development. There is also lack of political will in regulating housing colonies.

The urban growth in Mardan is unique as new housing colonies are emerging at some distances from the city and in the middle of agricultural farm land. The largest is well planned Shaikh Maltoon town developed by the Mardan Development Authority (MDA) about 3 km to the south of Mardan city on the Mardan-Nowshera road. There are several private housing colonies developed about two km to the west of Shaikh Maltoon town on Mohabat Abad road. Another large private housing colony of 172 acres with name of Green Acres Town is developed to the south east of Shaikh Maltoon town. These all new colonies are not recognised as urban area, perhaps due to their distant location from the city. According to TMA there are six approved and nine unapproved housing societies in Mardan.

Water and Sanitation Services Company Madan (WSSCM)

The WSSC took over water supply and sanitation services from the Tehsil Municipal Administration (TMA) Mardan in 2017. Water supply is provided by WSSC in 10 UCs only as there was no infrastructure in four urban UCs and services were not provided in these four

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UCs by TMA. The TMA transferred records of water connections and arrears of water users to the WSSC.

Total number of water connections in 10 UCs was 5,680 in October 2018. The record of water connections is gradually improving in WSSC Mardan. In May 2018 the WSSCM informed that total number of water connections in the city was 5,518. Out of these 3,274 were reported active and 2,282 connections were reported dead or disconnected. In October 2017 the total number of water connections was 5,680 which means sizeable number of water connections were regularised during past several months. The number of water connections per UC are in range of 171 to 986. The WSSC assumes that there are still an unknown number of water connections which are not listed in the records provided by the TMA. WSSC has not prepared any strategy to systematically track the undocumented water connections.

According to 2017 population there are a total of 49,276 households in Mardan city and total number of water connections are 5,680. This means that only 12% of the households have obtained water connections in the city. A vast majority of the households are drawing water from other sources. The PSLM 2014-15 data indicated that 72% of the urban houses have motor pumps (64%) and hand pumps (8%).

The WSSCM informed that water table is shallow in Mardan city and quality of ground water is good. Small water pumps are installed by households at 50 to 80 feet drilling. The cost of pump installation is in range of PRs. 20,000 to 30,000 in September 2018. Majority of the houses without water connections have installed their own water pumps.

Water rate collection by WSSC

There is no classification of water connections, all commercial and domestic users are charged at flat rate of PRs. 150 per month. Quarterly water rate bills are delivered by WSSC staff and payment is collected in cash from water users. In the first two quarters of 2018 about 70% of the customers paid their water bills.

Shaikh Maltoon Town water and saniatation

In Shaikh Maltoon town water and sanitation services were provided by MDA. MDA charges tariff comprising water rate, sanitation cess and conservancy charges which was PRs. 220 per month for 500 yard2 house, PRS. 145 for 250 yard2 house and PRs. 105 for 125 yard2 house. Total number of houses in the town are 2,723. Recovery of water rates was not provided. MDA informed that ground water quality is not good in the town and all households depend on MDA water supply.

Proper sewerage system is built in Shaikh Maltoon town. The waste water is drained in nearby area. It was planned to link sewerage system with the wastewater treatment plant at Mardan but the plant is non-functional since its completion in 1994. IN 2017 MDA replaced the sewerage line of phase one of Shaikh Maltoon town.

Water and sanitation in housing colonies

Every housing colony is responsible to provide water and sanitation services according to the KP Local Government (Site Development Schemes) Rules 2005. The Tehsil Officer Infrastructure and Services has survey staff to ensure compliance of these rules in approved housing colonies.

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Age and sex composition of population

The age and sex composition indicate very broad base of the population that indicates potential for high rate of population growth. About 44% of the population was young below 15 years. Women in reproductive age group (15-49 years) are 46% of the female population and the men in this age group are also 48% of the male population. This indicates that the high fertility rate of 3.9 will continue for the coming decades because of the largest proportion of population below 49 years of age.

The base of the pyramid (0-4 years age group) shows considerable shrinking from the 5-9 years age group. In Mardan city the population of children under 5 years age group was 2,132 less than the children of 5-9 years age group. This does not indicate sudden reduction in birth rate or fertility in Mardan in five years prior to the census of 1998. This must be the result of under-enumeration of children under 5 years age.

Figure 2: Age-sex pyramid for Mardan District (1998)

75 & ABOVE 70 -- 74 65 -- 69 60 -- 64 55 -- 59 50 -- 54 45 -- 49 40 -- 44 35 -- 39 30 -- 34 25 -- 29 20 -- 24 15 -- 19 10 -- 14 05 -- 09 00 -- 04

25,000 20,000 15,000 10,000 5,000 0 5,000 10,000 15,000 20,000 25,000

Male Female

Sex ratio

Sex ratio of Mardan city indicates excess of male over female. The longitudinal statistics of both sexes indicates gradual increase in the number of females. In 1981 census sex ratio of Mardan city was 108 which decreased to 106.6 in 1998 and came down to 102.5 in 2017 census. This indicates considerable improvement in census enumeration.

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Total fertility rate

The USAID’s Baseline Survey of Mardan (2010)51 indicated crude birth rate at 26 which is lower than national average of 28 and total fertility rate of 3.3 which is lower than the national (3.6) and provincial (3.8) average. The contraceptive prevalence rate was 41% much higher than the provincial average of 28%. Despite all these indicators for decline in natural increase the PGR of Mardan district at 2.58% is higher than the national PGR of 2.4% but it is lower than the provincial PGR of 2.89% in 2017. There is clear trend in declining rate of growth in the district and in Mardan city.

Extent of migration

Internal migration has very little contribution in population growth of Mardan. Total number of migrants in the district in 1998 was 72,416 which is 5% of the native population. Among these migrants 74% were from other districts of KP and 26% from other areas of the country.

Rural-urban distribution of population

Mardan is predominantly a rural district where agriculture is the major economic activity. Agriculture is highly labour intensive because of cropping pattern that includes high quality tobacco and sugarcane. Its rural population remained slightly above 81% since 1972. It has decreased to 80% in 1981 but again increased to its previous level of 81% in 1998 and 2017. Almost all rural settlements are connected with quality roads as the district has the highest level of 0.48 km road per square km of area. Easy accessibility could be the reason for lack of increase in urban population.

Mardan district has two urban localities, namely, Mardan and Takht Bhai. In past three decades several new housing colonies were established by public and private sector. The largest one is Shaikh Maltoon town developed by Mardan Development Authority. All these are urban localities by census definition of above 5,000 population but officially these are not recognised as urban. Persistent urban sprawl outside municipal limits since past three decades could be another reason in lack of urban growth in the district. The new urban localitis are not officially defined as urban area.

Mardan rural

Mardan comprises fertile land endowed with perennial irrigation system that makes agriculture highly profitable. In the 2010 census of agriculture the total farm area of the district was 245,485 acres (99,344 hectares) owned by 69,856 landowners. In the same year cultivated area of the district was 236,741 acres (95,806 hectares). The KP Development Statistics 2018 indicated total cultivated area of the district was 83,865 hectares in 2016. This indicates sharp reduction of 12% in the cultivated area of the district in short span of six year from 2010 to 2016. This indicates that prime agriculture land is rapidly lost and converted into housing and other non-productive uses.

51 USAID. 2010. Baseline Household Survey: Mardan District. Islamabad: Population Council and USAID.

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Land use

The land use statistics of Mardan district published in 2013 indicated that 71% of the total area of the district (1163.78 km2 or 116,378 hectares) comprised agricultural farm land. Total residential area of the district was 117.7 km2 (7.2%), rangeland and forest area were 134 km2 (8.2%), vacant land was 154 km2 (9.4%). Roads, commercial areas, civic facilities, water bodies, etc were 134 km2 (3.9%). There are discrepancies in agricultural farm land data in different government publications, Agriculture Census, 2010; KP Development Statistics 2018; and Draft Land Use Plan of Mardan District (2013).

Distribution of agriculture farm area

The land distribution in rural areas is highly skewed with concentration of small farms and small number of large farms. Landholdings of less than 2.5 acre are about 58% and they account for 20% of the farm area. Landholdings of 2.5 to 5 acres are 19% and account for 18% of the farm area. The landholdings of less than 5 acres are 77% of all farms and account for 38% of the farm area. These small holdings cannot provide subsistence to the farming household. The small landholders either work as tenant or labourers on large farms or become part of the non-farm labour in rural and urban areas. A little less than 3% of the landlords with holdings of above 25 acres own 10% of the farmland.

Table 3: Distribution of farms and farm area in Mardan District Size of Farms Number Percent Farm Area Percent Under 2.5 Acres 40,200 58% 47,703 20% 2.5 to Under 5 Acres 13,185 19% 44,634 18% 5 to Under Acres 7.5 9,161 13% 50,742 21% 7.5 to Under 12.5 Acres 5,282 8% 49,943 20% 12.5-25 Under 25 Acres 1,603 2% 26,811 11% 25 to Under 50 Acres 258 Negligible 7,800 3% 50 to Under 100 Acres 134 Negligible 9,292 4% 100 to Under 150 Acres 6 Negligible 680 Negligible Above 150 Acres 27 Negligible 7,881 3% Total 69,856 100% 245,486 100 Source: Agriculture Census 2010.

Crop production

Production of major crops and area under different crops is shown in Figure 3 below. Fodder and minor crops were grown on small area. Production of sugarcane is given in thousand tonnes. There is sugar mill in Mradan City and the sugarcane was gown on 30,915 hectares and its production was 1,369,273 tonnes.

Livestock and poultry are important part of the farming system. The livestock population of the district comprises 247,445 cattle, 115,841 buffaloes and 252,928 small ruminants. On average several poultry birds are kept by majority of the rural households. Although machines are used for land preparation, ploughing and threshing but farmers also keep camels, horses and donkeys for transportation within the farm area. The farmers own 14,288 donkeys, 1,595 horses, 2,436 camels and 1,166 mules.

126 KP-SISUG Mardan City Development Plan – Draft Final Report

Figure 3: Area and production of major crops in Mardan (2016-17)

Production Area

Others

Fruits

Vegetables

Sugarcane

Tobacco

Rice

Maize

Wheat

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 Area in hectares; production in tonnes; production of sugarcane in 100' tonnes

Source: Government of Khyber Pakhtunkhwa. 2018. Development Statistics of Khyber Pakhtunkhwa 2018. Peshawar: Bureau of Statistics, Planning & Development Department, GoKP.

Economic activities

Agriculture is the major economic activity which employs 42% of work force, followed by community service or employment in government and other establishments which account for 22%. The third major economic activity is construction which employs 16% of the working population.

Table 4: Distribution of Major Economic Activities in Mardan District 1998 and 2017 Major Economic Activities 1998 2017 (Projection) Agriculture, Livestock, Forestry, fishing 98,680 160,111 Mining and quarrying 163 264 Manufacturing 6,272 10,176 Electricity, gas and water 1,785 2,896 Construction 36,828 59,754 Wholesale and Retail trade 19606 26,842 Transport and Storage 12,054 18,260 Finance, insurance Real estate 1,390 2,160 community social and personal services 52,009 84,386 undefined 7,363 11,914 Total 236150 376,736 Source: Extrapolated from 1998 census

Transport and communication

The total network of roads in the district was 781 km of which 771 km is classified as high level and 10 km as low-level roads. The total number of vehicles in the district was 172,124 in

127 KP-SISUG Mardan City Development Plan – Draft Final Report

2016. These include 120,450 motorcycles, 13,239 cars, 9,839 tractors, 3,699 bus and wagons, 1,326 rickshaws, 5,563 vans, 1,978 trucks and 16,054 other type of vehicles.

The total length of railway line in the district was 51 km.

There were 23 telephone exchanges and 17,484 phone connections in the district.

Total number of television sets in the district was 160,190.

Industry

Small industrial estate was set up in Mardan city in 1975 with 100 plots. In this industrial estate there is only one small industrial units which is still under construction. In districts Mardan there are 186 industrial units out of which 10 were reported closed in the 2017 KP Socio- economic Indicators report. The type of industries is not available but there are many marble and stone cutting factories on Mardan-Nowshera road. Total number of industrial workers in the district was 4,112.

Employment

Unemployment rate for the district was not available. According to the FY 2014 Labour Force Survey unemployment rate in KP was 5.98%. Male unemployment rate was 3.75 and female unemployment rate was 2.22%.

Poverty

Planning Commission of Pakistan defined poverty line at 2,350 calories per adult equivalent per day in 2001. Poverty headcount ratio data according to this definition is not available for the districts.

Poverty profile prepared by Benazir Income Support Programme based on poverty scorecard survey of 2010-11 ranked districts into five poverty bands: i) least Poor, ii) vulnerable, iii) poor, iv) very poor and v) extremely poor. According to this study 36.41% households were poor in Mardan district and it as classified as poor district.

The Multidimensional Poverty study of 2016 did not provide data on income poverty. The Multidirectional poverty index for Mardan district was 0.153, headcount ratio in incidence of poverty was 38.8% and intensity of poverty was 45.3% in 2014-15.

Crime statistics

In District Madan following were the reported crimes in 2015. Murder 236, kidnapping and kidnapping for ransom 11, child lifting 5, car theft 37, car snatching 6 and motorcycle theft 98. Total number of police stations in the district was 17.

Housing

Data on estimated number and type of houses is provided in the KP Development Statistics 2018. Kacha houses are made of adobe with thatch roof. Pacca house means constructed with baked bricks and cement concrete or with reinforced cement concrete. Mix kacha and pacca mean house are made with adobe and baked bricks.

128 KP-SISUG Mardan City Development Plan – Draft Final Report

Table 5: Total number of rural and urban housing units in Mardan District Houses by Type of Construction Urban Rural Total Kacha 7,986 52,090 60,076 Pacca 41,073 89,451 130,524 Mix Kacha and Pacca 1,100 4,214 5,314 Total 50,159 145,755 195,914 Source: Government of Khyber Pakhtunkhwa. 2018. Development Statistics of Khyber Pakhtunkhwa 2018. Peshawar: Bureau of Statistics, Planning & Development Department, GoKP.

Tenure of houses

According to Pakistan Social and Living Standards Measurement (PSLM) Survey 2014-15, 80% of the houses in the district were owner occupied, 13% on rent and 7% rent free.

Table 6: Total percentage of house tenure in Mardan District Housing by Tenure Urban Rural Total Owner Occupied 73% 83% 80% Rent 23% 3% 9% Subsidised rent 0% 5% 4% Rent free 4% 9% 7% Total 100% 100% 100%

Water and sanitation

Household water source: tap water means municipal water supply which is available to 24% of the houses in the district. In urban areas 64% use motor pumps and 8% hand pumps which indicates that 72% of households were not dependent on municipal water supply.

About 82% of the hoses have flush toilets in the district and 91% in urban areas. About 10% of the houses have no toilets in the district and 2% in urban areas.

Table 7: Water supply and sanitation in Mardan District

Urban Rural Total Source of Water Tap water 24% 24% 24% Hand pump 8% 25% 20% Motor pumps 64% 44% 50% Dug-well 4% 6% 5% Other 0% 1% 1% Total 100% 100% 100% Type of Toilets Flush Latrine 91% 79% 82% Non-Flush 7% 8% 8% No Toilet 2% 13% 10% Total 100% 100% 100% Source: PSLM 2014-15

129 KP-SISUG Mardan City Development Plan – Draft Final Report

Education

Government is the largest provider of education and statistics of government schools is published annually by the Elementary and Secondary Education Department. The private school census was published in 2013 and this is the latest year for which data are available. All government schools are sex segregated while private schools provide co-education. The statistics of government schools indicate that number of girls’ schools is smaller than the boys’ schools. Girls’ primary schools are 43% and boys’ schools are 57%. Boys have 187 more schools than girls and the gender parity index of primary schools was 0.76. Only the number of girls’ middle schools is larger than boys. Gross enrolment ratio of girls in primary schools is slightly higher than boys while the net enrolment ratio of girls is lower than boys in government primary schools. The net enrolment ratio was computed on population projection of 5-9 years age group.

Table 8: Educational institutions in Mardan District Education Institutions Government Schools 2016-17 Private Schools Boys Girls Total % Girls’ Schools 2013 Primary Schools 803 616 1,419 43.4% 170 Middle Schools 80 96 176 54.5% 134 High Schools 87 80 167 47.9% 121 Higher Secondary Schools 37 30 67 44.8% 33 Degree Colleges 9 8 17 47.1% - Postgraduate College 1 1 2 50.0% - Mosque/Maktab Schools - - 41 - - Source Government of Khyber Pakhtunkhwa. 2018. Annual Statistical Report of Government Schools 2017-18. Peshawar: Department of Elementary & Secondary Education, GoKP. Government of Khyber Pakhtunkhwa. 2013. Annual Statistical Report of Non-Governmental Schools, Khyber Pakhtunkhwa. Peshawar: Department of Elementary & Secondary Education, GoKP. Government of Khyber Pakhtunkhwa. 2018. Development Statistics of Khyber Pakhtunkhwa 2018. Peshawar: Bureau of Statistics, Planning & Development Department, GoKP. Note: Mosque/maktab schools are established by the government in mosques up to primary level. Along with boys, some girls are also admitted in these schools.

Table 9: Enrolment, transition and survival rates in public and private schools in Mardan District (2017-18) Gross Enrolment Ratio (%) GPI Net Enrolment Rate (%) GPI Boys Girls Total Boys Girls Total Primary (Age group 5-9 years) Mardan District 105 86 96 0.819 85 65 75 0.765 Khyber Pakhtunkhwa 102 76 89 0.745 79 57 68 0.722 Secondary (Middle and High, age group 10-14 years) Mardan District 62 37 50 0.597 45 25 36 0.556 Khyber Pakhtunkhwa 55 32 44 0.582 40 23 32 0.575 Class 5 to Class 6 Transition Rate (%) Mardan District 91.79 87.88 90.10 0.957 Khyber Pakhtunkhwa 86.50 88.91 87.45 1.028 Survival rate to Class 5 (%)

130 KP-SISUG Mardan City Development Plan – Draft Final Report

Gross Enrolment Ratio (%) GPI Net Enrolment Rate (%) GPI Boys Girls Total Boys Girls Total Mardan District 84.16 54.41 68.17 0.647 Source Government of Khyber Pakhtunkhwa. 2018. Annual Statistical Report of Government Schools 2017-18. Peshawar: Department of Elementary & Secondary Education, GoKP. Note: At primary level, deeni madaris/institutions are included.

Higher and professional education institutions include one postgraduate college, 15 degree colleges and one university. Professional education institutes include two government colleges of technology/polytechnic institutes, four technical and vocational training centres and three colleges of management science.

Health facilities

Government is the largest provider of health services in the country. Total number of health facilities in Mardan are 83 which includes eight hospitals and for rural health centres with combined strength of 826 beds. Hospitals are in Mardan city and two other urban settlement. Rural health centres, basic health units and dispensaries provide services in rural areas. In government health facilities population per bed was 2,873 in 2016.

In addition to government institutions there are many private clinics, hospitals, maternity centres and private practitioners for which statistics are not available. There also homeopathic and herbal medicine practitioners in every city.

Table 10: Number and types of government health facilities in Mardan District (2017) Health Institutions Number of Health Number of Beds Facilities Hospitals 10 752 Rural Health Centers 4 74 Basic Health Units 49 - Dispensaries 17 - Mother and Child Health Centre 2 - TB Clinic 1 - Leprosy Centre 1 - Private Hospitals[1] 2 - Total 83 826 Source: Government of Khyber Pakhtunkhwa. 2018. Development Statistics of Khyber Pakhtunkhwa 2018. Peshawar: Bureau of Statistics, Planning & Development Department, GoKP. Notes: [1] There may be other private hospital, not recorded by the Bureau of Statistics, GoKP.

131 KP-SISUG Mardan City Development Plan – Draft Final Report

Appendix 5: Financial public expenditure review

The population of Mardan district according to Population Census 2017 is 2,373,061 after merger of FATA, with urban population of 439,325. The overall growth rate is 2,59% over 1998 census with urban population growth at the rate of 2.12%. The total population under TMA Mardan according to Census 2017 is 1,403,394 with urban population of 358,604. The total number of households in TMA Mardan is 178,434 with 45,429 living in urban areas.

The Government of Khyber Pakhtunkhwa (GoKP) established an independent corporate utility company by the name of Water and Sanitation Services Company Mardan (WSSCM). WSSCM was set up in the year 2016 with the express task to take over the water supply, wastewater and solid waste management facilities from Tehsil Municipal Administration.

Financial public expenditure review – TMA budget and projections

According to the Budget Abstracts, the total revenue of Mardan TMA in 2017-18 was PKR 641 million, including provincial transfers, and expenditure of PKR 1,045 million leaving a deficit of PKR 404 million in financial year 2017-18 which was partially met from budget savings from previous financial year leaving a net deficit of PKR 103 million which will be met from budget savings during the FY 2017-18.

Looking at the TMA budget of Mardan for the FY 2017-18, the total revenue was PKR 641 million as compared to PKR 674 million estimated for FY 2016-17 a net drop of PKR 33 million which was mainly due to reduced PFC share and decrease in own source revenue in 2017- 18. The revenue budget increased on average at the rate of 37% from 2015-16 to 2017-18 with huge increase of 93% in provincial transfers over the same period mainly due to induction of 30% PFC share allotted to TMAs in provincial budget under the 18th Constitutional Amendment. The increase in expenditure budget from PKR 925 million in 2016-17 to PKR 1,045 million in 2017-18 was mainly due to increase in non-development budget which increased from 62% in 2016-17 to 86% of the current revenues in 2017-18. Information given in Development Statistics 2018 prepared at the provincial level and the available TMA budget abstracts are summarized in Table 1.

Presently there is a Resource Gap (Deficit) of PKR 404.11 million in the TMA budget 2017-18 which is expected to grow into a Resource Gap (Deficit) of PKR 464.6 million by 2028 but then reduce to PKR 382.01 million by 2035 based on the following assumptions made for these projections (Table 1).

• The TMA budget is expected to grow in line with the average growth rate of provincial budget for the last five years. • The projected revenues from own source, property tax and transfers have been assumed to increase in line with average growth rate over the last five years in provincial receipts at 18%, non-development expenditure at 14% and development expenditure at 16%. • Urban population and households have been assumed to grow at UC based 1998- 2017 intercensal growth rates for current as well as future urban areas, as calculated separately in Appendix 3.

132 KP-SISUG Mardan City Development Plan – Draft Final Report

Table 1: Revenue and expenditure for TMA Mardan (million PKR)

ACTUAL PROJECTIONS Census 2017 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Population Nos. 602,087 620,057 638,713 658,084 678,201 699,097 720,806 743,362 766,802 791,166 816,494 842,829 870,215 898,698 928,329 959,157 991,237 1,024,626 1,059,382 Households Nos. 75,537 78,068 80,704 83,451 86,313 89,297 92,408 95,652 99,036 102,566 106,250 110,095 114,109 118,300 122,677 127,250 132,028 137,020 142,239

RECEIPTS - Own Source 215.06 210.07 231.07 254.18 279.60 307.56 338.32 372.15 409.37 450.31 495.34 544.88 599.37 659.31 725.24 797.77 877.55 965.31 1,061.84 - Property Tax 17.50 20.50 22.55 24.81 27.29 30.01 33.02 36.32 39.95 43.94 48.34 53.17 58.49 64.34 70.78 77.85 85.64 94.20 103.62 - PFC transfers 352.14 287.87 316.66 348.33 383.16 421.48 463.63 509.99 560.99 617.09 678.81 746.69 821.36 903.50 993.86 1,093.25 1,202.58 1,322.84 1,455.13 - Misc. Receipts 89.32 122.81 135.09 148.60 163.46 179.80 197.79 217.57 239.32 263.26 289.58 318.54 350.40 385.44 423.99 466.39 513.03 564.33 620.77

TOTAL RECEIPTS 674.02 641.24 705.37 775.91 853.50 938.86 1,032.75 1,136.03 1,249.64 1,374.61 1,512.07 1,663.29 1,829.62 2,012.59 2,213.86 2,435.26 2,678.79 2,947.68 3,243.36

EXPENDITURE

1. Non-Development Expenditure 420.46 553.28 606.52 664.88 728.86 798.99 875.87 960.15 1,052.54 1,153.82 1,264.84 1,386.54 1,519.96 1,666.21 1,826.54 2,002.29 2,194.95 2,406.16 2,637.68 - Salary 358.85 462.87 507.41 556.23 609.76 668.43 732.74 803.25 880.54 965.27 1,058.15 1,159.97 1,271.58 1,393.93 1,528.06 1,675.09 1,836.27 2,012.96 2,206.66 - Non-Salary 61.61 90.41 99.11 108.65 119.10 130.56 143.13 156.90 172.00 188.55 206.69 226.58 248.38 272.28 298.48 327.20 358.68 393.19 431.03

2. Development Expenditure (ADP) 504.62 492.07 512.65 534.10 556.45 579.73 603.98 629.25 655.58 683.00 711.58 741.35 772.36 804.68 838.34 873.42 909.96 948.03 987.69

- ADP 504.62 287.87 299.91 312.46 325.53 339.15 353.34 368.12 383.53 399.57 416.29 433.70 451.85 470.75 490.45 510.97 532.34 554.62 577.82 - On-going - 198.20 206.49 215.13 224.13 233.51 243.27 253.45 264.06 275.10 286.61 298.60 311.10 324.11 337.67 351.80 366.52 381.85 397.83 - Others - 6.00 6.25 6.51 6.79 7.07 7.36 7.67 7.99 8.33 8.68 9.04 9.42 9.81 10.22 10.65 11.10 11.56 12.04

TOTAL EXPENDITURE 925.08 1,045.35 1,119.18 1,198.99 1,285.31 1,378.72 1,479.85 1,589.40 1,708.11 1,836.82 1,976.42 2,127.89 2,292.32 2,470.89 2,664.88 2,875.71 3,104.91 3,354.18 3,625.37

RESOURCE GAP (251.06) (404.11) (413.81) (423.08) (431.80) (439.86) (447.10) (453.37) (458.48) (462.21) (464.34) (464.60) (462.70) (458.30) (451.02) (440.45) (426.12) (406.50) (382.01)

* Budget Estimates

3. TMA budget is expected to grow in line with avg growth rate of KPK budget. 4. Population is based on Census 2017. UC based 1998-2017 intercensal growth rate has been used for projections for current as well as future urban areas. 5. No. of Household is based on Census 2017. UC based 1998-2017 intercensal growth rate has been used for projections for current as well as future urban areas.

133 KP-SISUG Mardan City Development Plan – Draft Final Report

WSSC Mardan budget and projections

The Water Supply and Sanitation Company Mardan (WSSCM), is a relatively new addition to the institutional architecture for managing essential municipal services like water supply, waste water and solid waste management. The Company was established in 2016 to take over the municipal services activities of the TMA under a Services and Assets Management Agreement (SAMA). Presently the WSSCM is understaffed with only 20 employees, other than field operational staff transferred from TMA, to look after the financial, operational and administrative needs at the Company level. The capacity building and training needs of the Company have been dealt in the capacity building section of the Report.

The present annual revenue from municipal services is only PKR 7.00 million according to WSSC Budget 2018-19 which is expected to grow to PKR 57.46 million in 2023 based on present water tariff of PKR 120 per month. The non-development budget is presently 46% (of which 72% is salary) of the total expenditure of PKR 1,055.9 million budgeted for 2018-19. There is a resource gap deficit of PKR 334.75 million as reflected in WSSC budget 2018-19 which is expected to turn into resource gap surplus of PKR 226.31 million by 2035 based on the current tarrif and the following assumptions made for these projections. It is noted that:

• The TMA budget is expected to grow in line with the average growth rate of the provincial budget for the last five years; • The projected revenues from transfers, non-development expenditure and development expenditure have been assumed to increase in line with average growth rate in provincial receipts at 18%, non-development expenditure at 14% and development expenditure at 16% respectively over the last five years; • Present water rates are PKR 120 per month for domestic connections which is assumed to be constant till 2023 assuming 10%, 20%, 40%, 60% & 80% coverage from 2019 to 2023 respectively; and • Urban population and households have been assumed to grow at UC based 1998- 2017 intercensal growth rates for current as well as future urban areas, as calculated separately in Appendix 3.

The revenue and expenditure analysis based on the current tarrif is presented in Table 2 while the revenue and expenditure analysis based on affordiability analysis is presented in Table 3.

134 KP-SISUG Mardan City Development Plan – Draft Final Report

Table 2: Revenue and expenditure for WSSC Mardan (million PKR) based on current tarrif

ACTUAL PROJECTIONS Census 2017 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 - Population - Urban Nos. 602,087 620,057 638,713 658,084 678,201 699,097 720,806 743,362 766,802 791,166 816,494 842,829 870,215 898,698 928,329 959,157 991,237 1,024,626 1,059,382 - Households - Urban Nos. 75,537 78,068 80,704 83,451 86,313 89,297 92,408 95,652 99,036 102,566 106,250 110,095 114,109 118,300 122,677 127,250 132,028 137,020 142,239

RECEIPTS - Own Source - Water revenue 0.00 5.70 7.00 23.24 48.07 74.57 102.87 106.45 110.19 114.09 118.16 122.40 126.83 131.45 136.28 141.32 146.59 152.10 157.85 - Transfer TMA** 360.54 407.16 447.88 492.67 541.93 596.13 655.75 721.32 793.46 872.81 960.09 1,056.11 1,161.72 1,277.90 1,405.69 1,546.27 1,700.90 1,871.00 - Transfer KPK (ADP) 0.00 100.00 100.00 110.00 121.00 133.10 146.41 161.05 177.16 194.88 214.37 235.80 259.38 285.32 313.86 345.25 379.77 417.75 459.53 - Transfer TMC (Salary) 0.00 171.60 204.49 224.94 247.44 272.18 299.40 329.34 362.28 398.51 438.36 482.20 530.42 583.46 641.81 706.00 776.60 854.26 939.69 - Transfer KPK (Non-ADP) 150.00 ------Misc. Receipts 0.00 1.50 2.50 2.75 3.03 3.33 3.66 4.03 4.43 4.87 5.36 5.90 6.48 7.13 7.85 8.63 9.49 10.44 11.49

TOTAL RECEIPTS 0.00 789.34 721.15 808.81 912.19 1,025.12 1,148.47 1,256.62 1,375.38 1,505.80 1,649.05 1,806.39 1,979.22 2,169.09 2,377.70 2,606.89 2,858.72 3,135.45 3,439.55

EXPENDITURE

1. Non-Development Expenditure - 387.05 486.71 533.54 584.88 641.15 702.85 770.48 844.61 925.88 1,014.98 1,112.64 1,219.70 1,337.06 1,465.71 1,606.75 1,761.35 1,930.83 2,116.62 - Salary - 274.52 348.04 381.53 418.24 458.48 502.60 550.96 603.98 662.09 725.80 795.64 872.20 956.12 1,048.12 1,148.97 1,259.53 1,380.72 1,513.58 - Non-Salary - 112.53 138.67 152.01 166.64 182.67 200.25 219.52 240.64 263.79 289.18 317.00 347.50 380.94 417.59 457.78 501.82 550.11 603.04

2. Development Expenditure - 318.21 569.19 593.01 617.82 643.66 670.59 698.65 727.88 758.33 790.06 823.11 857.54 893.42 930.80 969.74 1,010.31 1,052.58 1,096.62

- ADP - 190.00 460.52 479.79 499.86 520.77 542.56 565.26 588.91 613.55 639.21 665.96 693.82 722.85 753.09 784.59 817.42 851.62 887.25 - On-going ------Others - 128.21 108.67 113.22 117.96 122.89 128.03 133.39 138.97 144.78 150.84 157.15 163.73 170.58 177.71 185.15 192.89 200.96 209.37

TOTAL EXPENDITURE - 705.26 1,055.90 1,126.55 1,202.69 1,284.82 1,373.44 1,469.13 1,572.49 1,684.21 1,805.03 1,935.75 2,077.24 2,230.48 2,396.51 2,576.49 2,771.66 2,983.41 3,213.24

RESOURCE SURPLUS/(GAP) - 84.08 (334.75) (317.74) (290.50) (259.70) (224.97) (212.50) (197.11) (178.41) (155.98) (129.36) (98.02) (61.39) (18.82) 30.40 87.06 152.04 226.31

Assumptions: 1. Budget 2018-19 based on budget documents. 2. Avg growth rate based on budget forecasts under KPK budget strategy paper II 2018-19 applied to projections from 2019-20 and onwards. Expenditure - Non development 10% - Development 4% Receipts 10% 3. Budget is expected to grow in line with avg growth rate of KPK budget. 4. Population is based on Census 2017. UC based 1998-2017 intercensal growth rate has been used for projections for current as well as future urban areas. 5. No. of Household is based on Census 2017. UC based 1998-2017 intercensal growth rate has been used for projections for current as well as future urban areas. 6. Present avg water rates are PKR 120 per month for domestic connections which is assumed to be constant assuming 20%, 40%, 60% & 80% coverage from 2020 onwards. No other charges are levied on account of WW and SWM.

135 KP-SISUG Mardan City Development Plan – Draft Final Report

Table 3: Revenue and expenditure for WSSC Mardan (million PKR) based on affordability

ACTUAL* PROJECTIONS Census 2017 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 - Population - Urban Nos. 602,087 620,057 638,713 658,084 678,201 699,097 720,806 743,362 766,802 791,166 816,494 842,829 870,215 898,698 928,329 959,157 991,237 1,024,626 1,059,382 - Households - Urban Nos. 75,537 78,068 80,704 83,451 86,313 89,297 92,408 95,652 99,036 102,566 106,250 110,095 114,109 118,300 122,677 127,250 132,028 137,020 142,239 RECEIPTS - Own Source - Water revenue 0.00 5.70 7.00 386.60 799.52 1,240.42 1,711.07 1,770.68 1,832.85 1,897.69 1,965.33 2,035.92 2,109.60 2,186.51 2,266.82 2,350.70 2,438.31 2,529.86 2,625.53 - Transfer TMA** 360.54 407.16 447.88 492.67 541.93 596.13 655.75 721.32 793.46 872.81 960.09 1,056.11 1,161.72 1,277.90 1,405.69 1,546.27 1,700.90 1,871.00 - Transfer KPK (ADP) 0.00 100.00 100.00 110.00 121.00 133.10 146.41 161.05 177.16 194.88 214.37 235.80 259.38 285.32 313.86 345.25 379.77 417.75 459.53 - Transfer TMC (Salary) 0.00 171.60 204.49 224.94 247.44 272.18 299.40 329.34 362.28 398.51 438.36 482.20 530.42 583.46 641.81 706.00 776.60 854.26 939.69 - Transfer KPK (Non-ADP) 150.00 ------Misc. Receipts 0.00 1.50 2.50 2.75 3.03 3.33 3.66 4.03 4.43 4.87 5.36 5.90 6.48 7.13 7.85 8.63 9.49 10.44 11.49

TOTAL RECEIPTS 0.00 789.34 721.15 1,172.17 1,663.65 2,190.97 2,756.67 2,920.85 3,098.03 3,289.40 3,496.22 3,719.91 3,961.99 4,224.15 4,508.23 4,816.26 5,150.45 5,513.22 5,907.23

EXPENDITURE

2. Development Expenditure - 318.21 569.19 593.01 617.82 643.66 670.59 698.65 727.88 758.33 790.06 823.11 857.54 893.42 930.80 969.74 1,010.31 1,052.58 1,096.62

TOTAL EXPENDITURE - 705.26 1,055.90 1,126.55 1,202.69 1,284.82 1,373.44 1,469.13 1,572.49 1,684.21 1,805.03 1,935.75 2,077.24 2,230.48 2,396.51 2,576.49 2,771.66 2,983.41 3,213.24

RESOURCE GAP - 84.08 (334.75) 45.63 460.96 906.15 1,383.23 1,451.72 1,525.54 1,605.19 1,691.19 1,784.16 1,884.75 1,993.67 2,111.72 2,239.77 2,378.78 2,529.80 2,693.99

* Budget Estimates **The receipts reflected against TMA is the expected amount as per their budget and in case the same is not transferred, the company budget statement shall probably reflect deficit. Therefore, no revenue is assumed in projections. Assumptions: 1. Budget 2018-19 based on budget documents. 2. Avg growth rate based on budget forecasts under KPK budget strategy paper II 2018-19 applied to projections from 2019-20 and onwards. Expenditure - Non development 10% - Development 4% Receipts 10% 3. Budget is expected to grow in line with avg growth rate of KPK budget for last five years. 4. Population is based on Census 2017. UC based 1998-2017 intercensal growth rate has been used for projections for current as well as future urban areas. 5. No. of Household is based on Census 2017. UC based 1998-2017 intercensal growth rate has been used for projections for current as well as future urban areas. 6. Tariff affordability is between 3% to 5% (WB&UNDP) of avg household income (Urban) which in KPK is PKR 49,910/mth and the avg mthly tariff comes to PKR 1,996 which has been used to calculate the projected revenue from household connections assuming 20%, 40%, 60% & 80% coverage from 2020 onwards.

136 KP-SISUG Mardan City Development Plan – Draft Final Report

Appendix 6: Institutional and organizational assessment

Provincial context

Governance and decentralization

Overall, KP’s fiscal and administrative decentralization is characterized by tremendous potential that remains unrealized. Khyber Pakhtunkhwa (KP) devolved political, fiscal and administrative authority to local governments in the 2013 Local Government Act (LGA), enabling the elected representatives of local governments to approve and manage their own budget while making provisions for fiscal transfers and own-source revenue. There are three tiers of local government – (i) District/City District, (ii) Tehsil/Town and (iii) Village/neighborhood councils. The District government has the largest share of key service delivery functions and largest budget in terms of expenditure, transfers and own source revenues. The key functions assigned at each level are shown in Appendices 1 and 2. For economies of scale, additional functions are assigned if the district is notified as a “city district,” Peshawar being the only city district so far. On 31 May 2018, the Federally Administered Tribal Areas (FATA) were officially merged with KP.5253

Fiscal Decentralization

Fiscal transfers comprise the bulk of the resource base at each level. The share of local governments is determined by the Provincial Finance Commission, based on an equalization formula incorporating fiscal needs, capacities, and performance. The Commission has 33 percent representation from the local governments. The 2013 LGA bars local governments from borrowing.

Local government capacities needs strengthening to match the autonomy provided by KP’s fiscal decentralization. Project planning, costing, prioritization, and resource allocation need to be strengthened. Expenditure estimations and allocations are based on inflated revenue targets. Poor revenue estimation can be attributed to the lack of a robust fiscal strategy, while deficiencies in revenue management have kept the dependence on federal transfers high54. Revenue raising has been weak. The increase in provincial own source revenues over the last two fiscal years was due to the devolution of general sales tax on services from central to provincial level: other provincial taxes have not increased correspondingly. In addition, an earlier assessment identified weaknesses in monitoring and evaluation and human resources management.55

The mismatch between the delineation of devolved functions and the actual practice needs to be addressed. The provincial development portfolio includes some devolved functions. This means that the (provincial) Annual Development Program (ADP), which should

52 Hayat, A. 2018. KP Assembly approves landmark bill merging FATA with province. Available from: https://www.dawn.com/news/1410351 Accessed 30 September 2018 53 The amendment in the Constitution was approved by the National Assembly of Pakistan on 24 May 2018, approved by the Khyber Pakhtunkhwa Assembly on 27 May 2018. On 28 May 2018, the President of Pakistan signed the FATA Interim Governance Regulation, a set of interim rules for FATA within a timeframe of two years during the process of the merger. 54 Public Expenditure and Financial Accountability (PEFA) Secretariat, 2017. Khyber Pakhtunkhwa Province, Pakistan: Public Financial Management Assessment Report. Washington DC: World Bank Group 55 Assessment and Strengthening Program – Rural Support Programmes Network (ASP-RSPN). Available from: http://www.rspn.org/index.php/projects/completed/asp-project/nggallery/page/2. Accessed 30 Sep 2018.

137 KP-SISUG Mardan City Development Plan – Draft Final Report focus more on strategic public investments, includes projects that should rest with the local governments, based on the principles of subsidiarity.56

Administrative Decentralization

Many functions have been transferred to local governments. These include district roads and buildings, water supply and sanitation, and coordination of their own human resource management, planning, development, finance, and budgeting functions. A review shows some overlap and lack of clarity in roles and responsibilities for some functions, such as in development planning, infrastructure and land use (Table 5 of Appendix 6).

Opportunities and Challenges

Opportunities

KP’s decentralization was designed with a checks-and-balances system that seeks to promote accountability. The Minister for Local Government, Elections, and Rural Development heads the Local Government Commission,57 the role of which is to support the coherent functioning of local governments. The Commission has the mandate of conducting annual and special inspections of local governments, and social and special audits of any local government, and resolving disputes with or between local governments. Accountability and transparency are ensured through audit functions. Audit reports are reviewed by the Public Accounts Committee of the Provincial Assembly. Furthermore, every district government and Tehsil Municipal Administration (TMA) is required to publish an annual audit report for the public.58

The 2013 LGA aims to empower public representatives at the bottom tiers of governance. In principle, one of its strengths is the extension of decentralization down to the village and neighborhood level, where these councils enjoy considerable powers, and hold the officials of various district line departments accountable. The political process that laid the foundation for decentralization with elections in 2015 was an additional strength, since it led to the increased involvement of political parties in planning, development, and decisions regarding service delivery priorities. This made the political process more responsive and representative. The system appears to have sufficient political ownership at different tiers of local governance, since the local elections were held on a party basis.

The 2013 LGA requires an allocation to local governments of not less than 30 percent of the total ADP.59 However, this varies in practice. Nonetheless, local governments still receive a significant share of the development budget. In FY 2017—2018, some PKR 28 billion was earmarked for local governments’ annual development plans amounting to 22.2% of the provincial ADP (without the foreign assistance of PKR 82 billion for that year).60 Of the funds

56 Subsidiarity means that the central level should perform only those tasks which cannot be performed effectively at a more immediate or local level. 57 The Local Government Commission comprises provincial assembly members, experienced technocrats, and two Government Secretaries (one Secretary from the Law, Parliamentary Affairs, and Human Rights Department, and the other from the Local Government, Elections and Rural Development Department. 58 Buzdar, F. 2016. Local Governments in Khyber Pakhtunkhwa and Punjab: Framework, Current Status, and Challenges. Islamabad: AAWAZ. 59 2013 LGA paragraph 53a states, ‘ … the development grants for local governments shall be so determined that it is not less than thirty percent of the total development budget of the province in the respective year.’ 60 Source: KP government budget provided to project team.

138 KP-SISUG Mardan City Development Plan – Draft Final Report earmarked for local governments, district, tehsil, and village/neighborhood councils account respectively for 29, 26 and 45 percent of this amount. While the funding allocations for local government has decreased by PKR 5.9 billion from the previous year, the proportion of provincial ADP earmarked as development funds for neighborhood and village councils has increased.

Challenges

Limited capacities are the biggest challenge to realizing the full potential and benefits of decentralization. The increased decision-making powers conferred by decentralization require a different set of competencies. The sheer numbers of jurisdictions make it difficult to adequately monitor the use of funds and the implementation at Village and neighborhood council Level.61 Budgeting and the development of plans at the district level are affected by inadequate capacities from provincial level down to district and local council levels. Local governments also need to have sufficient capacity for implementing needs assessments systematically to identify gaps in service quality and access. Sound planning is then required to address such gaps and meet community needs, especially in far-flung and rural districts.

Political friction and increased litigation will need to be resolved. The potential for such friction is high if district governments are in the party in opposition to the provincial government, and if debates over development schemes take place. Such friction diverts focus from service delivery and improved governance. The same applies to the reportedly increased rates of litigation with regard to decisions made at the local level, according to reports in 2016 and 2018.62

Local resource mobilization is still unfamiliar ground for local governments. Local governments will need to mobilize resources locally, using innovative means of financing, developing new public-private partnerships, and using the decentralization rules that empower them to levy local taxes or undertake ventures that generate funds.

Institutional Arrangements

KP’s multilayered administrative machinery reflects the decentralization. At the province level, KP is headed by a Chief Secretary who coordinates and supervises the various Departments led by Departmental Secretaries. The exception is the Planning and Development Department, which is headed by the Additional Chief Secretary for Planning and Development. The Local Government, Election and Rural Development (LGE&RD) Department has an oversight role over local governments (refer to Section 2). Figure 1 shows the overall institutional set-up at provincial level relevant to departments or institutions having key roles in urban planning, water supply, sanitation, solid waste, and infrastructure development. Below province level, each Division is headed by a Commissioner reporting to the Chief Secretary, and each district is headed by a Deputy Commissioner. Figure 1 shows the overall institutional set-up at provincial level, with departments or institutions having key roles in urban planning, water supply, sanitation, solid waste, urban transport, and infrastructure development. Key departments are discussed in subsequent sections and

61 Buzdar, F. 2016. Local Governments in Khyber Pakhtunkhwa and Punjab: Framework, Current Status, and Challenges. Islamabad: AAWAZ. 62 Buzdar, F. 2016. Local Governments in Khyber Pakhtunkhwa and Punjab: Framework, Current Status, and Challenges. Islamabad: AAWAZ. See also Dawn, 2018. ‘Policy devised to reduce govt’s litigation workload’. 11 Mar. 2018. https://www.dawn.com/news/1394469 Accessed 30 Sep. 2018

139 KP-SISUG Mardan City Development Plan – Draft Final Report

Appendices 1 and 2 provide an overview of roles. Some key provincial entities include the following:

Figure 1: Khyber Pakhtunkhwa provincial government departments

Chief Secretary

Additional Chief Secretary

Excise & P&D LGE&RD Housing Transport Other 29 departments Taxation

PCNA/GSP LCB KPRA PHA PTA

SDU Directorate LGRD Excise

Provincial Delimitation M&E Authority

Peshawar Development BOS Authority WSSCs (independent Public Corporation) Urban Policy Unit

Notes: BOS = Bureau of Statistics, KPRA = Khyber Pakhtunkhwa Revenue Authority, LCB = Local Council Board, LGE&RD = Local Government, Election and Rural Development (Department), LGRD:= Local Government and Rural Development Directorate, M&E = Monitoring and Evaluation DIrectorate, PCNA/GSP = Post Crisis Need Assessment /Governance Support Project, P&D = Planning and Development (Department), PHA = Provincial Housing Authority, PTA = Provincial Transport Authority, SDU = Special Development Unit, WSSCs = Water and Sanitation Service Companies.

The Provincial Planning and Development Department coordinates and monitors the development plans and programs prepared by various provincial departments. It acts as a catalyst between different departments to improve the pace and quality of economic development.

The Local Government, Election and Rural Development (LGE&RD) Department has the oversight role over local governments, including the Deputy Commissioners and Assistant Commissioners respectively heading districts and tehsils, ensuring that these entities discharge their functions and adhere to federal and provincial laws.

The Directorate-General of Local Government and Rural Development under the LGE&RD Department is mandated with the administration and management of local government institutions in the province, including in the following areas:

• Oversight, monitoring, evaluation, and supervision of local development schemes, donor-funded development programs, and all umbrella and individual development schemes and programs in the Provincial ADP; • Implementation of laws and regulations relating to local governance in the province; • Coordination among various departments and field offices; and

140 KP-SISUG Mardan City Development Plan – Draft Final Report

• Monitoring and supervision of the functioning of village councils, including birth, death and marriages registration.63

The Local Council Board is mandated with oversight of the administration of local council services and local councils at district and tehsil/town level.

The Provincial Delimitation Authority has the mandate to establish the boundaries of village councils, neighborhood councils and territorial wards for general seats in local government elections.

The Excise, Taxation, and Narcotics Control Department64 is primarily engaged in collection of various provincial taxes, duties, fees, and cess items.

The Transport Department65 aims to connect the central industrial regions with less- developed areas of the province, promote public-private partnerships for new investments in roads and infrastructure, upgrade and maintain existing road and highway networks, extend railway services to the northern parts of KP province, improve road connectivity to railway stations to facilitate passenger and freight traffic, construct trucking terminals at Peshawar, Dera Ismail Khan and Havelian to meet the needs of the trucking sector for the next 30 years, and introduce a mass transit system in Peshawar and other big cities in Khyber Pakhtunkhwa.

The Housing Department and its field arm Provincial Housing Authority aim to provide the public and civil servants with affordable housing, through urban growth policies, land acquisition, the development of plots and housing units, implementation of area development schemes, new townships, and housing loans and investments. The execution of schemes is on a deposit works basis.66

District governance and decentralization

District and tehsil administrations and institutions

The LGA 2013 ensures maximum autonomy in financial management and operational governance at local government (Table 1 and Appendices 1 and 2). The District Nazim, an elected representative, is the executive authority for all the matters in district administration and is assisted by the Deputy Commissioner. At the district level, the Deputy Commissioner is the administrative head of the government, while the line departments are headed by District Officers, who report to the district Deputy Commissioner. In terms of planning, the District Office Finance and Planning translates province plans into district development schemes, reviews and recommends the schemes identified by different stakeholders to the respective authorities. The Assistant Director LGE&RD is the overall responsible for implementation, monitoring, and evaluation of the activities concerned with local Government. The Tehsil Municipal Officer is the representative of the local government at Town/tehsil level, while the

63 The full list of functions is available from: http://lgkp.gov.pk/directorate-general-lgrdd/ Accessed 30 September 2018 64 Excise, Taxation and Narcotics Control Department. Available from: http://www.kpexcise.gov.pk/ Accessed 30 September 2018 65 The KP Government established an independent Transport Department in September 2008. 66 The term "Deposit Work" is applied to works of construction or repair, the cost of which is met, not out of Housing Department funds in this case, but out of funds from other sources. Works executed by the Department for other Government Departments, municipalities and other local bodies, and private firms and individuals fall under this category.

141 KP-SISUG Mardan City Development Plan – Draft Final Report

Tehsil Municipal Administration is the main government entity with a substantial role in municipal services delivery. The Tehsil Nazim is the elected executive authority at the tehsil level (Figure 2).

Table 1: Functions devolved to district governments Education Land Rural Development & Agriculture Primary and Secondary Education Agriculture (Extension) Vocational Education Livestock Special Education On-Farm Water Management Adult Education and Literacy Fisheries Health Rural Development & Rural Works Mother and Child Health Care Centers Cooperatives Basic Health Units Infrastructure Rural Health Centers Communication & Works Hospitals other than District Headquarters District Roads & Buildings Public Health Engineering Coordination of Functions Land Coordination Revenue & Estate Planning & Development Other Welfare Functions Finance & Budgeting Population Welfare Human Resource Management Social Welfare Sports and Culture Source: Local Government Act, 2013.

The District Development Advisory Committee (DDAC)67 in each district plays a determinant role in district development programs. The DDAC comprises members of the Provincial Assembly from the concerned district and other elected representatives, and the heads of attached Departments at the District level co-opted by the Committee for their expert opinion. The functions of the DDAC include assessment and approval of district development programs, and periodic reviews to monitor progress and ensure timely implementation. The DDAC also reviews and approves (i) the proposals for the Annual Development Program of the district, (ii) the schemes to be implemented under the Rural Development Program, other than those of the union councils, including those schemes to be funded from federal grants for that specific purpose; (iii) the location and selection of sites, subject to planning criteria prescribed by Government for development schemes; (iv) the locations of development projects in other sectors included in the district Annual Development Program, including for the electrification of villages; and (v) the allotment of Ration Depots in the respective Districts.

67 District Development Advisory Committees (Amendment) Act, 2015

142 KP-SISUG Mardan City Development Plan – Draft Final Report

Figure 2: District level government departments in Khyber Pakhtunkhwa

DDAC

Deputy District Nazim Commissioner

Excise & District Officer Assistant Director Others F&P LGE&RD Taxation Officer

Notes: DDAC = District Development Advisory Committee; F&P = Finance and Planning; LDE&RD = Local Government, Elections and Rural Development.

Institutional arrangements in municipal services delivery, Mardan

Water and Sanitation Services Company, Mardan

The Water and Sanitation Services in Mardan (WSSCM) is an independent corporatized public corporation. It was incorporated on 6 January 2015 as a public limited company, which is registered with the Securities and Exchange Commission of Pakistan. WSSCM is fully owned by the Government of Khyber Pakhtunkhwa, under section 42 of the Companies Ordinance, 1984. It is meant to be a ring-fenced, fully autonomous, professionally managed and corporate governed utility. The WSSCM took over the water, sanitation, and solid waste management sectors from the TMA on 1 December 2016. The geographical area of WSSCM services covers 14 urban union councils. The WSSCM does not serve the union council managed by the Cantonment Board. However, this union council is within the official urban boundaries.68

The Services and Assets Management Agreement (SAMA) sets out the functions and responsibilities of the provincial government, the TMA, and the WSSCM. Prior to taking over responsibility, WSSCM signed SAMA with the province and Mardan City administration on 10 November 2016. SAMA transfers the responsibility for management and operation of drinking water, wastewater, and solid waste management to WSSCM. This transfer includes all relevant assets, facilities, and control over staff so transferred. The TMA retains part of its staff for the remaining municipal services. SAMA stipulates other requirements for WSSCM, including benchmarking of services, developing key performance indicators and producing a business plan and a budget.69 SAMA provided for an assigned budget from the TMA, together

68 The union councils have now been changed to neighborhood councils (urban) and village councils (rural), and administrative boundaries have changed as well. 69 Finnish Consulting Group Asia Pte Ltd & FCG International Ltd (JV) with PITCO, prepared in partnership with Government of Khyber Pakhtunkhwa Urban Policy Unit, Planning and Development Department, and the

143 KP-SISUG Mardan City Development Plan – Draft Final Report with provincial contributions. Following this, a decision was made in the interests of greater efficiency, whereby the province now transfers the budget directly to all WSSCs, cutting the TMA budget by a commensurate amount. Therefore, while WSSCM coordinates closely with the TMA, it is now independent of the TMAs. As of August 2018, WSSCM had the following staff under the Chief Executive Officer: 5 managers, 10 assistant managers, 15 office staff, 26 field supervisors and 609 field operators, or a total of 666 staff. The role of WSSCM is summarized as follows:

• Exclusive responsibility for planning, designing, construction, operation and maintenance of water supply, sanitation, sewerage, drainage, fluid and solid waste systems and allied services, including their enhancement and improvement; • Management of all activities, facilities, programs, resources and spaces associated with these services previously under the control of the TMA, including machinery, tools and vehicles; • Management and supervision of personnel who had previously been delivering such services under the auspices of the TMA; • Promotion of public awareness on the importance of water conservation, waste reduction, resource recovery and the protection of the environment; • Development of cost recovery measures such as fees and user charges, which it is responsible for implementing on its own; • Establishment of and compliance with performance standards.

The WSSCM draws on various sources for its budget. For schemes, the WSSCM uses the budget earmarked for those schemes, such as the schemes included in the provincial ADP, or those included in the budget of the provincial Public Health Engineering Department for urban areas, or the funds for the schemes adopted by provincial and national assemblies. The operational budget of WSSCM is provided by the provincial finance department under approval from the Secretary, LGE&RD. A small part (about x percent) of the budget derives from tariffs from households deposited in the WSSCM’s account. The provincial government covers WSSCM’s capital expenditure (refer to Section xx – Rashid’s section). The original intent was for the company to improve revenue collection, make efficiency gains, gradually legalize all illegal connections, and levy a fee for solid waste management in tandem with the improvement in services.

Mardan Development authority

The KP Government established Mardan Development Authority in 1976 and further devolved this to District Government under Section 182 of the Local Government Ordinance 2001. Mardan Development Authority (MDA) is tasked with urban development projects, focusing on housing, planning and delivering associated infrastructure, such as green spaces, parks, city roads, transport facilities, electrification, zoning and land use plans, and town planning schemes. MDA is responsible for municipal services and other functions in Sheikh Maltoon Township, which is part of the rural union council Mohabbatabad in Mardan district. MDA is reports to the Secretary of the Local Government, Elections, and Rural Development Department for planning, budgeting, etc., but also complies with the instructions of the Deputy Commissioner of Mardan District.

Cities Development Initiative for Asia. Pakistan: Peshawar, Mardan and Abbottabad — Khyber Pakhtunkhwa Inclusive Urban Growth Program. ADB TA 8556 REG: Supporting the Cities Development Initiative for Asia. Manila: Asian Development Bank.

144 KP-SISUG Mardan City Development Plan – Draft Final Report

Tehsil Municipal Administration, Mardan

In Mardan city, the TMA is responsible for the planning and provision of municipal services other than those transferred to WSSCM (i.e., not including water, sanitation, and solid waste management services). It is also responsible for the development of different zones and plans, and the management of municipal properties, assets, and funds. The TMA approves by-laws for the performance of relevant functions devolved to the district government, approves and levies local taxes, develops and approves long- and short-term development schemes for the areas under its jurisdiction, enforces municipal laws, prepares budgets and collects taxes, fines, and penalties provided under the law. Outside the city limits, in union council areas that are not under WSSCM, the relevant TMA provides water, sanitation, and solid waste management services. The transfer of services from the TMA to WSSCM initially created tensions, especially as the TMA lost staff positions to WSSCM, and stood to lose current and potential revenue. However, the situation is reported to have improved since.70

Other relevant actors

Provincial and district LGE&RD Departments. The Secretary, LGE&RD at provincial level approves the operational budget for WSSCM. The Assistant Director of LGE&RD, responsible for Mardan district, supervises the planning and monitoring of different development schemes. Supervision and monitoring of different schemes also takes place at neighborhood council Level. The schemes are prioritized and implemented at local council level, for which finances are released by the provincial level Directorate-General of LGE&RD.

Provincial Planning and Development Department. The provincial Planning and Development Department of the Government of KP approves the different development schemes that are to be reflected in the ADP. The schemes approved for water supply, sanitation, solid waste management and transport are from the following provincial departments: the Health Engineering Department, the LGE&RD Department, the Communication and Works Department, and the Transport Department. Within the provincial Planning and Development Department, the Director-General of Monitoring and Evaluation is responsible for monitoring the progress on different schemes.

Public Health Engineering Department, Province level. The Public Health Engineering Department at provincial level plans clean drinking water schemes and sewerage systems, and sets and enforces province-wide health and hygiene standards. In practice, this means that the entities providing water and sanitation services in cities, such as WSSCM have to adhere to these standards. The Public Health Engineering Department also independently conducts testing of and research on health-related schemes. The Department also implements its own water and sanitation schemes in rural areas through the district government, since the PHED District Officer reports to the Deputy Commissioner and District Nazim.

Urban Policy Unit. The Urban Policy Unit (UPU) provides support to WSSCM in land use planning. It supports the provincial Planning and Development department and other entities –including WSSCs — in research and development required for the planning, implementation, monitoring, and evaluation of projects that contribute to economic regeneration and growth

70 FCG, 2017. See footnote 18 for complete reference. Khyber Pakhtunkhwa Inclusive Urban Growth Program. Supplementary Appendix S8: Institutional Development and Capacity Building. Cities Development Initiative for Asia. Manila: Asian Development Bank

145 KP-SISUG Mardan City Development Plan – Draft Final Report strategies for urban clusters and areas. The UPU also supports the capacity building for effective service delivery by various stakeholders including WSSCM and other WSSCs, the district government and the Local Government School. The UPU is responsible for evidence collection and dissemination of information on the urban sector, including guidelines on operations and sustainability of urban services provision. UPU advises the Secretary of the Planning and Development Department and the provincial Program Steering Committee on program design and due diligence. It provides due diligence support to the preparation of land acquisition and resettlement framework and plans. It has oversight of the environmental monitoring aspects for different projects related turban planning.

The Local Governance School is the training institute of the LGE&RD Department, Government of KP. Announced in 2008, the Local Governance School has the mandate to conduct pre-service trainings, refresher courses, seminars, workshops for all local council Service employees and elected representatives; coordinate all capacity building activities undertaken by local projects and development partners with the LGE&RD Department, as well as with TMAs; and conduct trainings/orientations for provincial officials on local governance, service delivery, and land acquisition and resettlement framework and plans.

Institutional and governance challenges in urban services provision

Poor city planning, including a lack of land-use planning and zoning regulations, is undermining progress made in service provision. Rapid urbanization is causing the conversion of agricultural land and other periurban areas in the outskirts of the city to be converted into residential property with little or no zoning and land use plans. The largely unplanned and mushrooming growth of residential areas make it difficult to plan for and provide services.

Contamination of water supply and the haphazard unregulated dumping of wastes need to be addressed. Hospitals and other medical facilities generate hazardous waste as do small industries such as for polish, paints, and batteries. In Mardan, industrial waste is also generated by the marble processing industries. Contamination of water supply from agricultural run-off and other human activities is a persistent problem.71 Such issues are linked to the lack of land-use planning, zoning ordinances, and weak or non-enforced legal frameworks.

Most of the barriers preventing WSSCM from fulfilling its potential lie in its history. The WSSCM inherited services that were poor to start with: water of poor quality and intermittent availability, sewage conveyed through open trenches, and a significant proportion of uncollected waste. Most of the population making up its customer base are those who are unwilling or unable to pay, and there is a general lack of basic service data.72 This would have been a challenge for any utility company. However, for WSSCM, the challenges are far greater because together with the poor services, it also inherited non-performing staff.

For WSSCM the service quality problems will be insurmountable unless it is provided with the means to resolve the human resource issues. This is critical for WSSCM to move away from its legacy of a poorly performing government service provider and fulfill its mandate of

71 FCG, 2017. See footnote 18. Khyber Pakhtunkhwa Inclusive Urban Growth Program. Supplementary Appendix S2b: Urban Sector Analysis – Mardan. Cities Development Initiative for Asia. Manila: Asian Development Bank. 72 FCG, 2017. See footnote 19.

146 KP-SISUG Mardan City Development Plan – Draft Final Report becoming an effective, corporate-governed utility that provides services of high quality. The following human resource issues will need to be addressed:

• Poor staff capacities and underperformance: Under SAMA, government staff were assigned on deputation from the TMA to WSSCM. The selection of such staff was not necessarily based on criteria such as performance. This meant that from the start, with the handover in 2016, WSSCM had issues with staff capacity and underperformance. Many field workers coming from the TMA lack basic skills necessary for operations and maintenance of water and sanitation services. A previous report mentions the lack of basic safety precautions when working.73 • Demotivation and absenteeism: A number of field workers had reportedly been `ghost employees’ when working at the TMA, drawing salaries and not attending work. This is a common issue with civil servants in many developing countries; in at least some cases, this is linked to the need for better income or two incomes. This calls for better supervision and other forms of attendance verification, which adds to the workload of supervisors and detracts from the effectiveness of the workforce.

Difficulty in addressing non-performance of government staff: Under the rules of the Securities and Exchange Commission of Pakistan, the Board of Directors of WSSCM and the Chief Executive Officer can exercise disciplinary action against the staff of WSSCM. However, under civil services rules, the punitive actions have to follow disciplinary procedures that are lengthy and complicated. As the staff in WSSCM are government employees, implementing sanctions against underperforming staff is not easily undertaken. The emerging trend of taking the matter to courts and obtaining stay orders has made it even more difficult. Thus, the WSSCM does not have full discretion or control in managing its staff. The Government of KP needs to address this so that WSSCM can fulfil its mandate of being a fully autonomous, professionally managed and corporate governed utility that delivers urban water and sanitation services with high performance standards. It is all the more important to have government intervention in this regard, since the Federal Government in 2010 repealed the Removal from Service (Special Powers) Ordinance74 of 2000, which was adopted in 2001 by all provinces.75 The 2000 Ordinance had provided for the dismissal, removal, compulsory retirement, or demotion of government staff for inefficiency, misconduct, corruption, and other traits. To perform, WSSCM requires full authority over its employment arrangements.

Low compensation levels for key management posts: WSSCM is constrained in hiring well-qualified executives and managers for vacant senior positions, since its pay scales are on average about half of those for similar establishments. Such pay scales are not competitive. The previous study done for CDIA showed that for the top six senior positions, the total compensation package for Mardan amounted to roughly half the median figure (50th percentile) for these six positions drawn from 11 similar companies,76 primarily public sector municipal service or utility companies.

73 See footnote 21.. 74 The Removal from Service (Special Powers) Ordinance, 2000. 27 May 2000. Available from: http://nasirlawsite.com/laws/rso.htm Accessed 30 September 2018 75 The Removal from Service (Special Powers) (Repeal) Act, 2010. ACT No. III OF 2010. Available from: http://nasirlawsite.com/laws/rsra.htm Accessed 30 September 2018 76 The companies selected for comparison with WSSCM and WSSC-Abbottabad were TransPeshawar (The Urban Mobility Company), Urban Unit Punjab, Lahore Waste Management Company (LWMC), Gujranwala Waste Management Company (GWMC), WWF Pakistan, Pakistan Poverty Alleviation Fund (PPAF), Private

147 KP-SISUG Mardan City Development Plan – Draft Final Report

The way forward

Addressing the challenges requires key decisions at province and city level. The recommendations for WSSCM will also apply to the other WSSCs in KP, so consultations are required between policy and decision-makers at province level, the concerned city governments, and the WSSCs. The issues for Peshawar will require city-specific consultations as well.

The consultations should examine mandates, capacities and financial strategies, to address the following issues:

• Reaffirmation of the mandate of WSSCs. It is worth reaffirming the mandate and vision of WSSCs of becoming a citywide autonomous, corporate-governed, and professionally managed utility that delivers services of high quality to all, regardless of their income status. • The bottlenecks preventing WSCCs from realizing their full potential and discharging their mandate. The initial aim of establishing all the WSSCs in KP was to create robust institutions with management and governance structures that would avoid bottlenecks such as the “political interference, inefficient structure, weak performance incentives, nonprofessional management and lack of autonomy.” 77 The ultimate rationale was to deliver improved services to customers, especially the urban poor, at an affordable cost through institutional reforms. The Review thus needs to identify and validate these bottlenecks and agree on solutions to resolve these. • Inadequate human resource capacities and non-performance among government staff. This is the key factor known to be impeding the WSSCs from fulfilling their mandate. The question is what could be done to ensure strong capacities and performance. Currently, government employees have been provided many safeguards in their service rules, which make disciplinary action difficult (refer to paragraph 28). There is no simple or single solution. The Review will need to discuss, consider, and decide a mix of solutions. These could include: a) legislation that makes it possible to offer career advancements for government staff based on performance, and more crucially, golden handshakes for non-performers; b) contract employment, especially of lower staff, as many banks and other public sector organizations have done, c) natural attrition of non-performing government staff, and d) capacity development strategies for staff with potential, including training in other locations as added incentives.

Consultations also need to be held on financial predictability and efficiency. This is a separate issue. It is accepted by all that WSSCM is not economically viable because a significant portion of the city’s population are either unwilling or unable to pay, while the services inherited from TMA, and currently being delivered by WSSCM, are not yet adequate. The current arrangement is that the services are funded by the KP Government (under SAMA). An ADB-funded study of three water companies in Indonesia and the Philippines showed that it took an average of 12 years to double the number of customers,78 and an average of about

Power Infrastructure Board (PPIB), and Punjab Power Development Company (PPDC). See footnote 19 for reference. 77 World Bank, 2015. Strengthen Urban Policy and Institutions and Streamline Sector Investment for Improved Service Delivery in Pakistan (P131971): Water and Sanitation Program. Washington DC: World Bank 78 See footnote 19 for reference.

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15 years to reduce non-revenue water by approximately half.79 Therefore, it would be unrealistic to expect WSSCM to become financially sustainable in the short to medium term. However, it is possible to have more predictable, better-planned financing strategies and greater efficiency than the current arrangement, which would help in moving towards the long- term target of financial sustainability. To this end, the consultations need to explore a range of measures and develop a tailored approach based on better targeting and pro-poor strategies. The current subsidies are too broad, including the non-poor as well as poor. The approach could include some or any of the following:

• For greater efficiency in reaching the poor: (a) stratified tariffs for water services for different classes of customers, with cross-subsidization, (b) connection rather than consumption subsidies, (c) pre-paid meters (possibly at subsidized tariffs for the poor) which allow households to control their total expense on the service, and (d) a voucher system or targeted cash transfers for the poor, based on means testing. • For greater financial predictability and more efficient planning: (a) the establishment of an endowment fund by the provincial government,80 (b) the provision of a single line grant through an annual transfer from the provincial government to WSSCM, and (c) increased use of technology to improve efficiency, reduce unmetered water and illegal connections.

To garner political and public support for the decisions that ensue, such consultations will require robust data and transparency on losses, revenue and poverty levels. Targeting of poor households could be done through existing social welfare information systems, such as (but not necessarily limited to) the National Socioeconomic Registry (NSER) of the Government’s Benazir Income Support Programme, an approach that uses poverty scorecard surveys to identify eligible households through proxy means testing.81 Calculating the transfers needed from the provincial government (whether through annual grant or endowment fund) will require robust data on the losses made by WSSCM, the losses that could be avoided, households’ willingness-to-pay, and the projection of revenue following new tariff structures and greater efficiency in operations.

An additional policy measure is required if WSSCs are to receive annual grants from the provincial government. Receipt of such public funds will require audits of WSSCM by the Auditor General of Pakistan. However, WSSCs are subject to audits by third-party chartered accountants, in line with their registration under the Section 42 of the Companies Act, 2017. To avoid audits by two different bodies at different times, with accompanying disruption of work, a provincial level policy would be required to exempt WSSCs from audits by the Auditor General of Pakistan.

Effective management information systems need to be established and strengthened. The administrative data systems need to be able to produce data within and across sectors robust enough for annual planning. Local surveys and censuses need to be implemented periodically, to generate data disaggregated by urban and rural tehsil, especially given the significant rural to urban migration. Various mechanisms have been developed elsewhere to

79 Calculated from the data provided in FCG, 2017 (footnote 29) 80 This could be registered as a ring-fenced fund under Section 42 of the Companies Act, 2017, which will be subject to audit by third-party chartered accountants. 81 The NSER reportedly covers over 27 million households across the country (Pakistan has 32.2 million households, 2017 census), with the households classified by poverty level and welfare status. National Socioeconomic Registry of Pakistan. Available from: https://www.pitb.gov.pk/bisp Accessed 30 September 2018

149 KP-SISUG Mardan City Development Plan – Draft Final Report design and implement such “quick” surveys and systems. In addition, efficient and transparent complaint response mechanisms are required.

Mardan city authorities and TMA will need capacity strengthening to develop and implement effective land use plans, policies, and a well-designed zoning ordinance. The zoning ordinance, for example, should establish permitted land uses, differentiate between different land use types, avoid incompatible land uses adjacent to one another. In line with Mardan’s vision of an eco-friendly “Sponge City”, the zoning ordinance should also include the designation of low-occupancy areas, such as wetlands, areas suitable for ecosystem-based livelihoods (e.g., urban agriculture) and areas known to function as natural water drainage and storage spaces. Mardan city authorities should eventually be able to establish a planning permit system for changes to the land, with requirements for environmental/social impact assessments, if warranted. City authorities will need exposure to best examples of cities elsewhere. Triangular or south-south cooperation should be fostered between Mardan and cities that exemplify progress towards becoming inclusive, green, resilient, and competitive cities.

Capacity strengthening of WSSCM and the city/tehsil authorities responsible for planning, delivering, and management of urban services is a priority. Section xx (capacity building chapter) summarizes the findings and recommendations for capacity building. Table 2 provides some findings specific to Mardan, and Table 3 provides the complete list of requested trainings compiled from all the WSSCs. The following is a summary of the findings from the WSSCs:

• The top tier of management in the WSSCs and the Board of Directors would require orientations, exchange visits, workshops with other entities within and outside of KP to improve their leadership and strategic roles. The top management also requires exposure to best examples of urban services provision in other countries. • The middle tier of management, largely the heads of department, mentioned community engagement and leadership management skills as top priorities, followed by MIS and data management for informed decision-making. • Field staff make up a diverse group. For these staff, health and safety training is the most important priority due to the nature of their work, which is usually physically strenuous and labor intensive. This is followed by the need to build skills in community engagement and organization, which would enable field staff to effectively negotiate and engage with communities, especially on tariff collection and conflict prevention.

Table 2: Capacity issues specific to Mardan Entity Capacity Challenges Proposed Measures[1] Mardan • Inadequate capacity for integrated • Training of staff on urban planning District and sustainable urban planning • Development of strategic plans and staff Government, • Need for more strategic long term capacity building MDA and planning • Development of SOPs for respective Mardan TMA • Inadequate updated data collection departments regarding role in urban systems on population and planning and development migration • Capacity building and MIS development for real-time data collection and feeding into MIS and informed planning

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Entity Capacity Challenges Proposed Measures[1] WSSCM • No policy for connection to the • Policy recommendations for sewerage system connection to sewerage system • Lack of expertise in segregation • Capacity building to understand of waste different types of waste and their • Inadequate staff capacity in nature monitoring and quality • Capacity building in water supply assurance of safe water supply monitoring • Outdated manuals and asset • Training in water quality testing management procedures techniques • Inadequate capacity to • Training in GIS and other determine/forecast future water technologies for Asset Management needs • Training on forecasting and planning • Need for exposure to corporate future water needs approach at the top (Board of • Training on corporate management Directors) • Training on tariff management • Inefficient revenue generation • Training on resource mobilization Notes: [1] To be viewed in combination with Table 3, which outlines the capacity needs for all WSSCs. GIS = geographic information system; MDA = Mardan Development Authority; MIS = Management Information System; SOP = standard operating procedures; TMA = Tehsil Municipal Authority; WSSC = Water and Sanitation Services Company; WSSCM = Water and Sanitation Services Company Mardan.

Table 3: Training needs of different tiers of staff at water and sanitation services companies Senior Management • Orientations, exchange visits, workshops with • Exposure to best examples of urban services other entities within and outside of KP to provision in other countries improve their leadership and strategic roles • Financial management for non-financial • Resource mobilization and strategic managers partnership building • Transformation from public to corporate • Leadership and good governance management, • Corporate social responsibilities-public • Better understanding of the securities and private partnership exchange commission of Pakistan and related reforms Middle Management General trainings: Planning and monitoring tools: • Exposure to best examples of urban services • Baseline surveys provision in other countries • SCADA systems • Leadership management skills (top priority), • The use of GIS including GIS tracking • Effective communication and advocacy systems and GIS based billing systems (including behavior change communication) • Community engagement and organization Financial and other management tools: • Conflict transformation and management • Internal audit • Occupational health and safety • Tariff management • Assets utilization planning Technical knowledge: • File tracking systems • Management information systems and data • Complaint response mechanisms management for informed decision making • Khyber Pakhtunkhwa Public Procurement (Second priority) Regulatory Authority Rules • Water quality testing • Pakistan Public Procurement Regulatory • Types/composition of waste & management Authority Rules • Recycling/treatment plant management • Management of dumping grounds • Waste to energy planning and implementation

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Field staff • Occupational health and safety • Operations and maintenance • Efficient collection and distribution of bills • Management of dumping grounds • Communication and community engagement • Terminal pressure management mobilization (including behavior change • Water disinfection communication) • Leakage detection Notes: GIS = Geographic Information System; SCADA = Supervisory control and data acquisition system.

Excerpts from Services and Asset Management Agreement (SAMA)

Responsibilities of the WSSC

• Exclusive responsibility for planning, designing, construction, operation and maintenance of water supply, sanitation, sewerage, drainage, fluid and solid waste systems and allied services, including their enhancement and improvement; • Managing all activities, facilities, programs, resources and spaces associated with these services previously under the control of the tehsil municipal administration, including machinery, tools and vehicles; • Managing and supervising personnel, who had previously been delivering these services under the auspices of the tehsil municipal administration; • Promoting public awareness on the importance of water conservation, waste reduction, resource recovery and the protection of the environment; • Developing cost recovery measures such as fees and user charges, which the WSSC can request the tehsil municipal administration to implement or which it can undertake to implement on its own; • Establishing standards of performance and ensuring compliance with such standards.

Responsibilities of the tehsil municipal administration (TMA)

• May assist and support the WSSC and suggest improvements in a non-intrusive manner; • Make timely payments for salaries and other allowances and payments of its employees; • Make transfers to the WSSC for pensions and reimbursements of medical charges for retired regular employees of the TMA; • Carry out regular promotion board meetings for those employees at the disposal of the WSSC; • Take appropriate actions to obtain the necessary amendments to existing laws, bye- laws, regulations and son that would facilitate the WSSC achieving its objectives; • Propose to the province an amendment of the Local Government Act which would make the WSSC a “competent legal body for discharge of its devolved functions independently;”

Responsibilities of the province

• Act as the guarantor of the agreement, ensuring all parties perform their respective duties in their true letter and spirit, with no force allowed to scuttle the free operations of the WSSC with artificial or personal hindrances; • Any dispute or difference between the WSSC and the TMA will be sent to the province and resolved in accordance with the Arbitration Act, having regard to the new concept

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of corporate governance as expressed in the agreement, and the decision shall be final and binding; the same applies in the case of an alleged breach of the agreement, in which case a financial penalty may also be awarded; • Ensure that the amounts payable by the tehsil municipal administration to the WSSC under the agreement are transferred; • Continue to finance the activities of the WSSC related to the development and maintenance of municipal services, capital, operational and establishment cost; • Transfer funds to the WSSC based on an estimate of financial requirements for the financial year prepared by the WSSC.

Further financial provisions

• In the first year, the remaining budget for the performance of water supply, sanitation, solid waste management and hygiene services that was in the tehsil municipal administration’s account was to be transferred to the WSSC, minus any amount retained for residual water and sanitation functions agreed to by the WSSC; • The WSSC is to submit budgetary estimates and budgetary reports to the TMA; • The TMA is required to inform the WSSC at an early stage of the amounts budgeted for the following year for the functions and services devolved to the WSSC.

Transfer of employees

• Regular and contract employees of the TMA carrying out these services (along with their sanctioned strength) are to be placed at the disposal of the WSSC, except those retained to carry out residual functions; • The WSSC can return any employee to the TMA without providing a reason; • The conditions of service of these employees will remain the same as if they had not been assigned to the WSSC, including opportunities for promotion.

Benchmarking and performance indicators

• Within six months after the signing of the agreement, the WSSC is to complete benchmarking of existing services and fix targets for the improvement of services for the following year; • On June 1st of each year, the WSSC shall submit a list of mutually agreed upon key performance indicators, which shall be qualitative as well as quantitative measurements;

General provisions

• The length of the agreement is 20 years and may be extended on mutual consent; • The agreement states, “The following shall be conditions precedents for the effectiveness of this agreement”: • The WSSC will submit a Business Plan to the TMA; • A list of deputed staff has been made available and the deputed staff have been transferred to the satisfaction of the WSSC; • The entrusted assets have been made available and transferred to the satisfaction of the WSSC; • The funds as per other relevant clauses have been transferred to the account of the WSSC.

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Table 4: Political and fiscal decentralization in Khyber Pakhtunkhwa Function Federal Provincial Khyber Pakhtunkhwa Province District Government Tehsil Municipal Village/Neighborhood Council Administration Own Yes, Yes, Yes, District Nazim and Naib- Yes, Tehsil Nazim and Naib- Yes, Village Council (rural) leadership: President Governor (nominal Nazim Nazim Nazim and Naib-Nazim, or appointed by indirectly elected head, designated elected by District Council, Elected by Tehsil Council, who Neighborhood Council (urban) or elected by Parliament82 post) who themselves are elected themselves are elected through Nazim and Naib-Nazim through the through Electoral Chief Minister, elected through local government local government elections Those with the most votes and following College. by provincial elections second-most votes in direct means: Prime Minister, assembly elections: Head of winning Chief Secretary (head party of government) through civil service career progression. Number of 1 4 32 119 3,339 jurisdictions83 Political Federal Provincial assembly District council elections Tehsil council elections Village/neighborhood council process parliamentary members mostly elections republic directly elected, some reserved seats Approves own Yes Yes Yes Yes Yes budget84 % of resource - 92% 99% Details unavailable to date 100% base funded by transfers85

82 National Assembly, Senate, and Provincial Assembly 83 2017 Population Census, modified to include the merger between Khyber Pakhtunkhwa, Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA). 84 See Table 5, row 3. 85 WB. 2017. Khyber Pakhtunkhwa Province, Pakistan: Public Financial Management Assessment Report. Washington DC: Public Expenditure and Financial Accountability (PEFA) Secretariat, World Bank

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Function Federal Provincial Khyber Pakhtunkhwa Province District Government Tehsil Municipal Village/Neighborhood Council Administration Subnational General sales tax on 1. Tax for Education and 1. Local tax on services. 1. Prescribed fees for licensing fiscal systems: services,87 Land Health. 2. Fee on sale of animals in of professions and tax and non- revenue, Agricultural 2. Any other tax authorized cattle markets. vocations in the council tax receipts86 income tax, Motor and by the Government. 3. Market Fees. area. vehicle excise duty, 3. Local rate on lands 4. Tax on the transfer of 2. Fees for civil registration Stamp duty, Electricity assessable to land immovable property. and certification (births, duty, revenue. 5. Urban Immovable Property marriages, and deaths). Revenue from mining, 4. Fees of educational and Tax as specified in LGA 3. Charges for specific oil and gas health facilities 2013.89 services rendered by the exploration, hydel established or maintained 6. Fee for fairs, agricultural Council. generation.88 by District Government. shows, cattle fairs, 4. Rate for the remuneration of 5. Fee for licenses or permits industrial exhibitions, village and Neighborhood and penalties or fines for tournaments and other security. violations. public events organized by 5. Rate for the execution or 6. Fees for specific services TMA. maintenance of any work of rendered by a District 7. Fee for licenses or permits public utility like lighting of Government. and penalties or fines for public places, drainage, 7. Collection charges violations. conservancy and water prescribed for recovery of 8. Fee on cinemas, drama, supply operated by the tax on behalf of the theatrical shows and tickets Council. government, other local thereof, and other 6. Conservancy charges. governments, or any entertainment. statutory authority. 9. Collection charges 8. Toll on roads, bridges, prescribed for recovery of ferries maintained by any tax on behalf of the District Government. Government, other local 9. Rent for land, buildings, governments or any equipment, machinery, statutory authority.

86 Reproduced from Schedule III of KP Local Government Act 2013. 87 Does not include the local council share, which is a fee charged on different services, and is then transferred to the local councils. 88 Nasim, A. 2015. Khyber Pakhtunkhwa Revenue Mobilization. Peshawar: Consortium for Development Policy Research. 89 In principle, the Urban Immovable Property Tax is collected by the provincial government and then transferred to the Tehsil.

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Function Federal Provincial Khyber Pakhtunkhwa Province District Government Tehsil Municipal Village/Neighborhood Council Administration and vehicles owned by 10. Rent for land, buildings, District Government. equipment, machinery and 10. Fee for major industrial vehicles owned by TMA exhibitions and other 11. Fee for specific services public events organized by rendered by a TMA. District Government. 12. Tax on vehicles other than For City District Government: motor vehicles registered in 1. Taxes enumerated as the Tehsil. above. 13. Fee on advertisements, 2. Fee on advertisements, other than on radio and other than on radio and television, and on television, and billboards. billboards. 3. Fee for approval of 14. Fee for approval of building building plans, erection plans, erection and re- and re-erection of erection of buildings buildings. 15. Charges for development, 4. Charges for execution betterment, improvement, and maintenance of works and maintenance of works of public utility lighting of of public utility like lighting public places, drainage, of public places, drainage, conservancy, and water conservancy, and water supply operated and supply by TMA. maintained by the City Town Municipal Administration District Government. 1. Taxes enumerated for TMA from 1 to 12 above. 2. Fee for approval of building plans, erection and re- erection of buildings with the approval of the City District Government.

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Table 5: Administrative decentralization of key functions and roles of government entities Function Central Provincial District Government Tehsil Municipal Village/Neigh- Administration borhood Councils Policy making Planning Commission of Planning and Development District Council/DDAC and regulations Pakistan Department, District regulations to Provincial Secretariats for each implement the province line department formulate policies policies e.g. health, education. Development Planning Commission of Planning and Development District Office Finance & Tehsil Development Village/ Planning Pakistan, Ministry of Planning, Department (except for national Planning. Translates Committee. Planning neighborhood Development and Reform. campaigns, e.g., Polio, human province plans into district of Tehsil level project councils, as per trafficking, & migrant smuggling). development schemes. See plans. authority and Each line department has a DDAC functions in text. budget. planning officer (representative of P&DD) for development of the Annual Development Program. Budget Budget: Ministry of Finance, Budget Finance Department, Budget developed by District Budget for municipal LGRD/LGE&R development Revenue and Economic Affairs Planning and Development Officer Finance & Planning, development D prepares and approval (recurrent budget) and Planning Department (according to Annual with inputs from others. programs by Tehsil budget for Commission (development Development Program). Approval Approval by District Council municipal village/ budget).Input from line by Provincial Development and DDAC administration as per neighborhood ministries Working Party authority & budget. councils. Approval: National Economic Approval by Tehsil Council; Central Development Council. Working Party Administration Ministry of Interior Establishment and Administration Deputy Commissioner, in Assistant Department consultation with District Commissioner (Law Nazim. enforcement & administration) Procurement for Public Procurement Regulatory Authority to procure its own Authority to procure its own Authority to procure its own supplies projects Authority sets public supplies and undertake capital supplies and undertake and undertake capital expenditure procurement law & rules. expenditure. capital expenditure within its within its responsibilities (except Province controls the procurement responsibilities (except Health supplies) and within the of health supplies for economies of health supplies) up to PKR delegation of financial powers rules. scale and quality assurance. 60 million, beyond which

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Function Central Provincial District Government Tehsil Municipal Village/Neigh- Administration borhood Councils provincial approval is Oversight by LG&RD for required. village/neighborhood council level. Statistics, data Pakistan Bureau of statistics Bureau of Statistics Government of 5 Regional field offices of The data compiled by collection KP, Planning and Development Bureau of Statistics KP, each line department Department: Liaison with federal, within the Planning & has tehsil-level provincial, district departments and Development Departments at details and are development partners; training to Peshawar, Abbottabad, shared with regional provincial line departments and Mingora Swat, Bannu and offices of Bureau of district governments; data Dera Ismail Khan.90 Statistics collection, analysis and Primary and secondary data publications. collection and completion.91 Environmental Ministry of Climate Change, KP Environmental Protection EPA presence in Peshawar Assistant Director Protection Environmental Protection Agency92 only.93 Assistant Director EPA covers tehsils (Federal Agency EPA is representative at also authority) district Level. Disaster National Disaster Management Provincial Disaster Management District Disaster Management Commission (policy) Commission (policies and plans) Management Authorities:95 National Disaster Management Provincial Disaster Management planning, coordinating, and Authority (implementation and Authority94 (implementation) implementing disaster coordination). management. Housing, Ministry of Housing and Works: Government of KP, Provincial District municipal offices, Tehsil/town Municipal Village level infrastructure & 3 attached Departments & 3 Housing Authority. City Development Authority development Autonomous Bodies.96 Authorities. works and

90 Pakistan Bureau of Statistics. Available from: http://www.pbs.gov.pk/content/provencialregional-offices-0. Accessed 30 Sep 2018. 91 Pakistan Bureau of Statistics. Available from: http://www.pbs.gov.pk/content/field-services. Accessed 30 Sep 2018. 92 Available from: http://kpcode.kp.gov.pk/uploads/2014_38_THE_KHYBER_PAKHTUNKHWA_ENVIRONMENTAL_PROTECTION_ACT_2014.pdf. Accessed 30 Sep 2018. 93 Amir, I. 2013. “Environment protection body lacks presence in most of KP.” Dawn (https://www.dawn.com/news/1054922). Accessed 30 Sep 2018. 94 Provincial Disaster Management Authority. Available from: http://pdma.gop.pk/drm_institutions. Accessed 30 Sep 2018. 95 Shah, S. H. 2013. The Disaster Risk Management Handbook: A learning experience of the DRM Model Mansehra. Peshawar: GIZ. Available from: http://lgkp.gov.pk/wp- content/uploads/2014/04/The-Disaster-Risk-Management-Handbook-A-learning-experience-of-DRM-Model-Mansehra.pdf. Accessed 30 Sep 2018. 96 Ministry of Housing and Works (http://mohw.gov.pk/frmDetails.aspx). Accessed 30 Sep 2018.

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Function Central Provincial District Government Tehsil Municipal Village/Neigh- Administration borhood Councils municipal Departments: infrastructure services Pakistan Public Works implementation Department Estate Office Management National Housing Authority Autonomous Bodies: Pakistan Housing Authority Federal Government Employees Housing Foundation National Construction Limited Urban Land use/ Capital Development Authority Peshawar Development Authority District government and Tehsil Municipal Identify spatial planning (for Islamabad). (urban) district council: City Administration development (includes some Various other entities LGE&RDD Development Authorities. needs; report rural areas) Provincial Board of Revenue Provincial Board of Revenue violation of land decentralized to additional use plans deputy commissioner in district.97 Transport Ministry of Communications Transport and Mass-Transit Local government for district TMA: municipal Development Department of KP. roads. City Development services and works and KP Urban Mobility Authority Authorities in each city98 infrastructure infrastructure (regulatory body) implementation Notes: DDAC = District Development Advisory Committee; EPA = Environmental Protection Agency; KP = Khyber Pakhtunkhwa; LGE&RDD = Local Government, Elections and Rural Development Department; LGRD = Local Government and Rural Development (Directorate); P&DD = Planning and Development Department; TMA = Tehsil/Town Municipal Authority.

97 “KP unveils administrative arrangements under new local government system.” The News, 29 Dec 2012 (https://www.thenews.com.pk/archive/print/404295-kp-unveils- administrative-arrangements-under-new-local-government-system). 98 Khyber Pakhtunkhwa Local Government Act, 2013. Government of Khyber Pakhtunkhwa. Enacted 7 Nov 2013.

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Appendix 7: Capacity builing need assessment and strategy

Capacity needs

The project assessed the technical and organizational capacity of public entities involved in urban planning and services, with the aim of preparing long-term capacity building programs to equip and re-tool mid-level professionals in urban management and services. This section focuses only on the following organizations for the three districts:99

• The local government institutions (District, Tehsil, Union Council, Village Council and Neighbourhood Councils), • The Water and Sanitation Services Companies, • The Development Authorities (Peshawar Development Authority (PDA), Abbottabad Development Authority (ADA), and Mardan Development Authority (MDA), and • The Cantonment Boards, which are responsible for services in Cantonment areas.

Local government institutions

Elected officials and government staff at district and tehsil levels need capacity strengthening in management, strategic planning, and other areas related to their work. In particular, Township Municipal Officers (TMOs) and the TMAs need to be strengthened in procedures, accounts keeping, audit and internal audit, and tendering and tender processing. The engineering staff within the TMAs need to be strengthened in preparing Bill of Quantities and tender documents, tendering and tender security, and soil testing. Relevant staff also need training related to drinking water, sanitation, solid waste management and building control.

Water and sanitation service companies (WSSCs)

The WSSCs need pre- and in-service training in management, administration and finance for relevant staff, as well as technical trainings specific to the water, sanitation, and waste management sectors for other staff (Table 1). Once developed, selected modules from these courses could also be used for training of relevant district and township officials and city development authorities. Because of their operations at community level, WSSCs need to conduct community education on water, sanitation and related issues, and ensure the training of community mobilizers and community support workers (under a Training of Trainers (TOT) program) to enable them to become water care technicians. To this end, WSSCs will need support in designing TOT modules, which they could implement.

City development authorities

These include the Abbottabad Development Authority (ADA), the Mardan Development Authority (MDA), and the Peshawar Development Authority (PDA).100 The PDA provides urban services in some parts of Peshawar. The City Development Authorities are not fully able to discharge their duties of city and development planning, as is seen in the poor management of urban sprawl and inadequate control of zoning regulations (Section xx on urban planning).

99 The assessments covered eight districts (Peshawar, Charsadda, Nowshera, Mardan, Swabi, Abbottabad, Mansera and Haripur), and also the private sector. 100 Their mandates are provided in Table 4.

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The City Development Authorities also need to develop the coordination and monitoring skills to provide guidance and direction to local government departments. Overall, the City Development Authority staff require capacity strengthening in many of the areas listed in Table 1.

Table 1: Areas proposed for capacity building Management and administration Environment and social management • Human resources management and planning • Environmental impact assessments • Administration • Social & environmental mitigation • Reporting • Occupational health and safety • Supply and asset management Water resources management & protection • Procurement and procurement procedures • Water safety planning Finance • Water supply sampling/testing • Budgeting and budget management • Waste water sampling • Accounts • Equipment installation • Internal audit • Equipment maintenance • Revenue and billing enhancement • Water resource monitoring Land development Sanitation • Acquisition • Hygiene awareness • Land registry (cadastre) • Sanitation Planning and development • Drainage • Planning • Storm water & wet weather management • Project planning • Flushable wipes & collection systems • Mis/database • Industrial wastewater • Gis operation • Utility management Projects and works • Innovative technology • Planning and project management Solid waste management • Works • Waste collection • Contracts • Clearing of dumps • Geotechnical aspects and earth works • Re-dumping Urban development planning • Solid waste management • Urban infrastructure design • Recovery of recycle items • Urban infrastructure asset management • Sludge treatment and disposal • Control Roads/bridges • Risk management • Roads & roads maintenance Field operations, maintenance and repair • Roadside drains • Training for operators/mechanics • Public transportation management • Training of surveyors, sanitary installers, • Urban transportation planning general fitters, pump mechanics, mechanics and drivers of tractors, and other related vehicles. Source: Management and staff of WSSC Mardan.

Cantonment boards

The major functions of the Cantonment Boards cover a wide range of areas: water supply, sanitation, street lights, roads and roadside drains, construction and engineering, education, medical services, fire brigade, horticulture, and revenue collection within Cantonment areas. Generally the Cantonment Boards already have systematic mechanisms and well-defined jurisdiction.

Human resources management

There is a general perception that Abbottabad and Mardan WSSCs and City Development Authorities (ADA and MDA) have low levels of staffing compared to equivalent units in

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Peshawar (WSSP and PDA). However, in judging the adequacy of staffing, the absolute numbers of staff in each institution should not be used, given the different numbers of population served in each city. Table 2 shows an assessment of staff numbers using the standard international indicator of human resources (HR) productivity, which is the total number of water utility staff per thousand people served. Data is shown on this indicator for Pakistan (national average) and selected countries.101 A comparison of the HR productivity ratio shows that all three utilities appear to be over-staffed with regard to total staff, compared to the national ratio and ratios from other countries.

Table 2. HR productivity ratio for WSSCs and for utilities in other countries (2018) Institution Total Staff, Professional District HR HR including Staff Population Productivity Productivity Field 2018 Ratio with Ratio with Operators Total Staff Professional Staff Only WSSC-A 319 22 253,871 1.257 0.087 WSSC-M 666 20 366,297 1.818 0.055 WSSP 4,105 51 2,055,665 1.997 0.025 Abbottabad 13 253,871 0.051 Development Authority Mardan Development 24 366,297 0.066 Authority Peshawar 259 2,055,665 0.126 Development Authority HR productivity ratios for utilities from selected countries (national averages)

China, 2012 0.970

India, 2009 0.850

Malaysia, 2007 0.500

Pakistan, 2016 0.580

Singapore, 2008 0.260

Turkey, 2008 0.510

UK (England and 0.540 Wales only), 2016

Uzbekistan, 2010 0.880 Sources: Project assessments of WSSCs (for Abbottabad, Mardan and Peshawar) for professional staff (HR assessments) and total staff (institutional and governance assessments). International Benchmarking Network (IBNET) online database, https://www.ib-net.org/ (for Pakistan national level and other countries) Notes: HR productivity ratio is derived from the number of the employees per 1,000 people served by the City Development Authorities. IBNET notes that: While allocating staff time to either water or wastewater services is useful, this information is sometimes not available. Comparisons are best made between utilities offering the same scope of service in terms both of total size and of mix of water and sewer services. Staff number comparisons should reflect any extensive use of outside contractors.

Table 3 shows the productivity indicator for professional staff calculated for the three city development authorities.

101 International Benchmarking Network (IBNET): https://www.ib-net.org/

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Table 3: HR productivity ratio for the three city development authorities Institution Professional District HR Productivity Ratio Staff Population 2018 with Professional Staff Only Abbottabad Development Authority 13 253,871 0.051 Mardan Development Authority 24 366,297 0.066 Peshawar Development Authority 259 2,055,665 0.126 Source: Project Assessments of Abbottabad, Mardan and Peshawar Development Authorities. Note: HR productivity ratio is derived from the number of the employees per 1,000 people served by the City Development Authority.

Since the roles and responsibilities of each three city development authority are different from those of others, comparison of the HR productivity ratio between city development authorities may be problematic. PDA does provide urban services to part of the population of Peshawar, and at least part of PDA should be judged by the same measures used for the WSSCs. Therefore, the PDA staff involved in such services (water, sanitation, waste management) will need to be separately calculated to derive an HR productivity ratio for PDA’s services. Currently, a comparison of the ratio for the three city development authorities shows that Abbottabad and Mardan are understaffed relative to Peshawar.

Performance

Education and training of employees are necessary but insufficient – the employee also needs to have a certain measure of job satisfaction, which enhances performance. HR development, therefore, involves not only improving staff competence, but also employment practices, career structures, and professional and financial incentives for proven results. The performance of employees should be linked to both sanctions or incentives (e.g., career progression). In the past, an official undergoing training and qualifying for a "Post Graduate Diploma in Urban Development" would be awarded with two advanced increments in his/her salary. This is not being practiced currently, but incentives for the acquisition of accredited qualifications should be reconsidered, especially for the WSSCs, which ideally should be fully corporatized. At present, the Water & Sanitation Services Company (WSSC) Abbottabad is the only institution that uses "promotion to the next position" and "change of cadre" as an incentive for the re-training and skills development of WSSCs.

Strategic partnerships

The Project proposes the establishment and/or strengthening of strategic partnerships with existing institutes that can provide training courses with content, duration and assessment mechanism/certification tailored according to needs.102 The proposed institutions are as follows:

102 This has been discussed with the management and instructional staff of the NIM and NIUIP, who have agreed in principle to develop this further.

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LGE&RD Department as well as with Tehsil Municipal Administrations (TMAs), and (iii) conduct trainings/orientations for other government officers on local governance and service delivery. However, the School lacks the required resources and facilities for training in the more technical sectors. • The National Institute of Management (NIM) Peshawar is part of the National School of Public Policy, a degree-awarding institution. The NIM is mandated with training of federal/provincial “services” officers, and mandated to organize Mid Career Management Courses and Senior Management Courses, as well as other courses in collaboration with national and international organizations.103 It has adequate academic and residential facilities. • The Pakistan Academy for Rural Development (PARD), Peshawar interacts with local, provincial and federal governments, researchers, academicians and non- governmental organizations working for rural development. Its functions include research and capacity building through training. The areas where training is offered include development planning, public administration, local government, rural development, education and communication, women in development, agricultural extension, social surveys and research, and rural sociology.104 • National Institute of Urban Infrastructure Planning (NIUIP) is the first institute in Pakistan dedicated to urban infrastructure planning and engineering. NIUIP trains service professionals in key areas such as water supply, sanitation, waste management, land use, transportation systems, energy and environment, and GIS Modelling.105 In procurement, NIUIP could engage specialists of the Khyber Pakhtunkhwa Public Procurement Regulatory Authority (KPPRA) for the relevant courses. NIUIP offers state of the art technologies and equipment, such as satellite imagery, simulation modelling for water supply and sewerage systems, GPS and remote sensing tools, digital plotters, fully-equipped GIS lab with GIS scanners and GIS software, statistical analysis software and other applications. The NIUIP would be willing to provide the facilities for training of staff from WSSCs, City Development Authorities and other project entities. Based on the identified needs, the NIUIP is able to design assessment criteria and obtain approval from its Board to issue formal competency based certificates/diplomas for the course graduates. The NIUIP is based at the University of Engineering & Technology (UET) Peshawar.

Table 4: Estimated costs of training of government officials at the Local Governance School Category Numbers of Unit Cost Cost (PKR) Cost (USD) Staff for Training (PKR) District Level 36,000 Average number of professional district staff (9 27 972,000 7,000 per district) District Nazims 3 108,000 780

103 http://nim.gov.pk/index.php. 104 http://www.pard.gov.pk/course.html. 105 NIUIP covers the following areas in its work: infrastructure and utilities planning, urban and regional planning, urban hydrology and hydraulics, land use planning, urban transportation planning., urban environment and energy planning, water supply and sanitation, solid waste management, spatial modelling and GIS applications, infrastructure development and finance, utilities planning & service delivery, environmental laws, land use regulation and enforcement, census data analysis and policy making, urban housing, urban economics, real estate markets, urban development and design, and financing of infrastructure projects.

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Category Numbers of Unit Cost Cost (PKR) Cost (USD) Staff for Training (PKR) District Naib Nazims 3 108,000 780 District Council Members (excluding Nazims + 218 7,848,000 56,520 Naib Nazims)

Tehsil Level Average number of professional staff at Tehsil 36 1,296,000 9,335 level (6 per Tehsil) Tehsil Council Nazims 6 216,000 1,555 Tehsil Council Naib Nazims 6 216,000 1,555 Tehsil Council Members (excluding Nazims + 199 7,164,000 51,595 Naib Nazims) SUB-TOTAL DISTRICT AND TEHSIL 247 17,928,000 129,120

Village/Neighborhood Council Level Village/NH Councils Nazims 175 14,000* 6,300,000 45,375 Village/NH Councils Naib Nazims 175 6,300,000 45,375 Village/NH Council Members (excluding 1,750 24,500,000 176,450 Nazims + Naib Nazims) SUB-TOTAL VILLAGE/NEIGHBORHOOD 2,100 37,100,000 267,200 COUNCILS

TOTAL FOR ALL THREE LEVELS 2,347 55,028,000 396,320 Notes: Calculation assumptions: 3 districts (Abbottabad, Mardan and Peshawar); 6 tehsils and 175 Union Councils—34 for Abbottabad (not including Havelian), 46 for Mardan and 95 for Peshawar. All UCs, both urban and those classed as rural are included. Data is unavailable on village/neighborhood councils. Units costs for this level are less, assuming the trainings are conducted locally. Source: Recalculated from assessments of 9 districts.

Table 5: Estimated costs of training of WSSC officials at National Institute of Urban Infrastructure Planning (NIUIP), Peshawar WSSCs Staff to be Trained in Total Unit cost per Cost (PKR) Cost (USD) Subjects related to Number Participant Urban Management of Staff (PKR) Planning WSSC Peshawar 72 55 127 202,160 25,674,320 184,905 WSSC Mardan 47 24 71 14,353,360 103,375 WSSC Abbottabad 28 19 47 9,501,520 68,430 One-time cost for development of tailored course (training manuals, 2,333,335 16,805 instructor manuals, assessment criteria, procedures etc.) Total 147 98 245 51,862,535 373,515 Source: Recalculated from assessments of 9 districts.

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Table 6: Estimated costs for a two-month residential training course at the National Institute of Management (NIM) and Pakistan Academy for Rural Development (PARD) Development Staff to be Trained in Two-Month Course One-Week Course Authorities Urban Management Total Unit Cost Cost (PKR) Cost (USD) Unit Cost Cost (PKR) Cost (USD) Planning Staff (PKR) (PKR) Peshawar 160 106 266 150,000 39,900,000 287,360 16,000 4,256,000 30,650 Development Authority Mardan 56 38 94 14,100,000 101,550 1,504,000 10,830 Development Authority Abbottabad 57 39 96 14,400,000 103,310 1,536,000 11,060 Development Authority Total 371 247 618 92,700,000 492,220 9,888,000 52,540 Source: Recalculated from assessments of 9 districts.

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Appendix 8: Climate and disaster risk assessment

For Mardan the impacts of climate change are projected to be the same as for Abbottabad in general terms, albeit more severe. Main impacts of climate change projected in Mardan are (i) a marked increase in summer days/heat waves for the short, medium and long term, and (ii) a sharp reduction in precipitation. However, this is for the mid-term range and not within the short term (2041–2070). Table 1 presents the main impacts of the climate change projections for Mardan.106

Another consequence to bear in mind also for Mardan, is that because of higher temperatures in the winter months throughout Northern Pakistan,107 more run-off from snow melt and rain will come from the higher areas surrounding Mardan, possibly necessitating investments in broadening and cleaning culverts, bridge underpasses and canals.108 The run-off will both be more and will also come at times when there usually is less run-off (winter).

One of the major advantages that Mardan has is that it is in flat-terrain and has a large area of sugar-cane cultivation in the rural areas surrounding the city. As a consequence, the city has issues with water-logging, high water table and salinization of agricultural areas. In terms of climate change impacts, the availability of water during hotter periods with little rain is therefore not necessarily an issue. What is however a matter of concern is the water quality. The tube wells of the WSSC abstract water from a deeper aquifer, which to date is not contaminated. However, the distribution network is such that water is contaminated during distribution, resulting in water tests indicating bacterial contamination in approximately 50% of the samples. With higher temperatures as predicated by the climate change models, bacterial contamination of water spreads faster, so there is an urgency to improve water quality at tap level.

Another impact of the hotter, drier weather will be a marked increase in electricity use for cooling, and possibly an increase in vectors for water-borne diseases.

The investment portfolio of the ADB for the KPCIP already includes several interventions that address climate change impacts. In the Table 2 these projects are set against the expected climate change impacts.

106 ADB. 2017. Urban Resilience Assessment Khyber Pakhtunkhwa, Pakistan: Mardan City. Manila: UCCRTF, Asian Development Bank. 107 ADB. 2017. Climate Change Profile of Pakistan. Manila: Asian Development Bank. 108 “Regarding regional change in annual temperature, the study further noted that (i) the temperature increase in both summer and winter are higher in northern than southern Pakistan, and (ii) the temperature increases in both regions are higher in winter than summer. For the percentage of precipitation change, no significant change is observed.” – ADB. 2017. Climate Change Profile of Pakistan. Manila: Asian Development Bank.

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Table 1: Summary of future climate indices for Risalpur (proxy for Mardan City) No. Future Climate Indices Timeframe 2011-2040 2041-2070 2071-2100 1. Number of frost days: Annual count of days RCP 8.5 shows a decline of 7.8 RCP 4.5 shows a decline of 5.7 RCP 4.5 shows an increase of when daily minimum temperature less than 0°C. days. days. about a day. RCP 8.5 shows a decline of 6.8 days. 2. Number of summer days: Annual count of days RCP 4.5 indicates an increase RCP 4.5 indicates an increase of RCP 4.5 indicates an increase when daily maximum temperature greater than of 31.5 days, while RCP 8.5 42.2 days. of 18.9 days. 25°C. shows an increase of 48.4 days. 3. Heat wave duration indicator: Annual count of RCP 8.5 shows an increase of RCP 8.5 shows an increase of RCP 8.5 shows an increase of days with at least 6 consecutive days when 17.8 days. 14.5 days 13.5 days maximum temperature greater than 90th percentile of the 30-year period. 4. Cold spell duration indicator: Annual count of Overall cold spell duration is Overall cold spell duration is Cold spell is expected to days with at least 6 consecutive days when projected to decrease by 4.5 projected to decrease by 4.2 decline by 9.8 days under minimum temperature less than 10th percentile. days under RCP4.5, and 6.4 days under RCP8.5 scenario. RCP 4.5 scenario, while a days decline as per RCP8.5 decline of 13.5 is expected scenario. under RCP 8.5 scenario. 5. Diurnal temperature range A decline of about 0.5°C is A rise of about 0.87°C is A decline of about 0.93°C is expected under RCP 4.5. expected under RCP 4.5 expected under RCP 8.5. scenario. 6. Simple precipitation intensity index: Annual Trends are not significant. A decline of 6.2 days is expected Trends are not significant. total precipitation divided by the number of wet under RCP 4.5 scenario, while a days (defined as PRCP greater than or equal to decline of 5.8 days is expected 1.0 mm) in the year. under RCP 8.5 scenario. 7. Number of heavy precipitation days: Annual Trends are not significant. A decline of 10.7 days is Trends are not significant. count of days when PRCP greater than or equal to expected under RCP 4.5, while 20 mm. 10.1 days per RCP 8.5 scenario. 8. Number of heavy precipitation days: Annual Trends are not significant. A decline of 6.9 days is expected Trends are not significant. count of days when PRCP greater than or equal to under RCP 4.5, while 6.4 days 25 mm. per RCP 8.5 scenario.

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No. Future Climate Indices Timeframe 2011-2040 2041-2070 2071-2100 9. Consecutive dry days: Maximum number of An increase of 50.1 days is An increase of 61.1 days is Trends are not significant. consecutive days with RR less than 1 mm. expected under RCP 8.5 expected as per RCP 4.5 scenario. scenario, while 56.4 days increase is expected under RCP 8.5. 10. Consecutive wet days: Maximum number of Trends are not significant. Trends are not significant. Trends are not significant. consecutive days with RR greater than 1mm. 11. Annual total wet-day precipitation: Annual total Overall precipitation has no A decline of precipitation of Overall precipitation has no PRCP in wet days (RR greater than or equal to 1 significant trend, although around 22 mm is expected significant trend although, mm). interannual variability will during wet days under both inter-annual variability will prevail. RCPs. prevail Source: ADB. 2017. Urban Resilience Assessment Khyber Pakhtunkhwa, Pakistan: Mardan City. Manila: UCCRTF, Asian Development Bank.

Table 2: Climate change impacts on infrastructure Affected Infrastructure District Vulnerability Climate Change Impact Mitigating Measures • Bridges • Very High: Hoti, Kas Korona, • Increased precipitation: +142– Plantation of trees, rainwater collection • Schools Baghdada. 174 mm/year in 2011–2100 systems, construction of sub-surface dams • Health facilities • High: Dagai, Sikandari Korona, (compared to 1976–2005) and water reservoirs. exploitation of more • Transport infrastructure Mardan Khas, Bari Cham, • Increase in vector-borne diseases sustainable green energy resources • Water supply Bagh-e-Iram. (hydropower), raise awareness of the link • Energy infrastructure • Moderate: Par Hoti, Bicket Gunj, between vector-borne diseases. • Irrigation and flood Muslimabad, Bijli Ghar, Rorya. • Increased runoffs/flood: Integrated flood risk management (IFRM), protection system o > piers erosion sediment control and protection measure, • Sewage and drainage o < efficient drainage, flood increment piers depth, raising plinth levels, systems protection, and irrigation increase sewers diameter in critical regions. systems Sediment control structure and appropriate design are needed, using updated/revised scour depths and flood estimates, groundwater exploitation should be minimized.

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• Increased temperature: (2011– Improve design of expansion joints, Heating 2100 compared to 1976–2005) Ventilation Air-conditioning (HVAC), high o Max + 0.1°C - 5.45°C efficiency irrigation system due to increased o Min + 0.94°C - 4.8°C evapotranspiration, exploitation of more sustainable green energy resources (solar power). Source: ADB. 2017. Urban Resilience Assessment Khyber Pakhtunkhwa, Pakistan: Mardan City. Manila: UCCRTF, Asian Development Bank.

Table 3: Proposed projects for Mardan to cope with the climate change impacts Climate Change Impact Relevant Infrastructure Projects in KPCIP Explanation/Comments Increased drinking water demand due to • Upgrading of 33 tubewells (204 m3/h capacity each) From the list of proposed projects, it can be seen increases in temperatures, compounded • Installation of 12 new tubewells (204 m3/h capacity each) that the ADB project addresses possible water by a limited reduction in rainfall. • Provision of motor control units (MCUs), bulk meters, shortages in a very effective manner. pressure gauges for 45 tubewells One of the few items to consider would be to • Rebuilding and upgrading of 11 OHRs (increasing capacity increase capacity building services for the 3 times) management of the groundwater resources to • Repair and rehabilitation of 16 tubewells for standby ensure that the available water remains production capacity sufficient. Increases in bacterial growth in • Provision of disinfection units for all tubewells The proposed investment portfolio also distribution networks for potable water • Provision of disinfection units in all reservoirs effectively addressed the issue of water quality. due to increases in temperature and • Construction of Oxidation Ditch Plant with two secondary Furthermore, rehabilitation of pumping stations more days with higher temperatures, clarifiers (40m diameter and a hydraulic load of 25m3/m2) will help safe drainage of sewage water from compounded by high rates of non- to separate suspended biosolids 200,000 households. revenue water. • Separate sewerage in UC Hoti, and upgradation/rehabilitation of tertiary sewage lines (15 km) • 3 Sewage pumping stations: 1 for main flow, 1 for effluent discharge and 1 additional for sludge recirculation and excess sludge. Periodic flooding (whether flash floods • Construction of regulative ponds, wet ponds and The specific mix of these treatment options will due to insufficient urban drainage, or constructed treatment wetlands. a number of need to be overflowing of river banks due to • pilot bioswales in specific Mohallahs will also be tested. determined during the Feasibility Stage. The excessive run-off) • Taking necessary measures in earthworks and storm water overall objective for the Mardan sponge city is to redirect 30 percent of the rainwater into the groundwater in the first year, gradually expanding

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Climate Change Impact Relevant Infrastructure Projects in KPCIP Explanation/Comments • management through landscape measures, improvement until Mardan is able to redirect 70% of the of water permeation, water detention, water storage, water rainwater into its aquifers within 5 years. purification, water drainage, water conservation, and water reuse. • Landscape-based solutions. Increases in temperature in urban areas • The project does not foresee any interventions in this Re-use of treated waste water for city greens can are compounded by few green spaces regard at present. However, discussions on the “city as a reduce investment costs by x% for the STP, and and shading of roads using vegetation. sponge” concept were held. provide water for the city greens. Increases in temperature in urban areas • Electricity is not part of the project. However other ADB Biogas for electricity generation may provide an will require more cooling capacities or and other donor interventions do address hydropower. additional source of electricity for the city adaptation of building codes to independent of regional sources of energy. incorporate architectural modifications for cooling.

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