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PAD2894 Public Disclosure Authorized INTERNATIONAL BANK for RECONSTRUCTION and DEVELOPMENT FOR OFFICIAL USE ONLY Report No: PAD2894 Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$230 MILLION TO THE Public Disclosure Authorized ISLAMIC REPUBLIC OF PAKISTAN FOR A COMPETITIVE AND LIVABLE CITY OF KARACHI PROJECT June 6, 2019 Social, Urban, Rural and Resilience Global Practice Finance, Competitiveness and Innovation Global Practice Public Disclosure Authorized South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of Public Disclosure Authorized their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2019) Currency Unit = P KR US$1 = PKR 141.65 FISCAL YEAR July 1 – June 30 Regional Vice President: Hartwig Schafer Country Director: Patchamuthu Illangovan Senior Global Practice Directors: Ede Jorge Ijjasz-Vasquez; Alfonso Garcia Mora Practice Managers: Catalina Marulanda; Nabila Assaf Task Team Leaders: Yoonhee Kim; Namoos Zaheer ABBREVIATIONS AND ACRONYMS ADP Annual Development Plan MC(s) Minimum Condition(s) AED Anti-Encroachment Drive MOU Memorandum of Understanding AFS Annual Financial Statements NGO Non-government organization AGP Auditor General of Pakistan NOC No-Objection Certificate APA Annual Performance Assessment O&M Operations and Maintenance APPM Accounting Policies and Procedures Manual OSR Own-Source Revenue ARP(s) Abbreviated Resettlement Plan(s) OZT Octroi and Zila Tax CFMS Computerized Financial Management System P&D Planning and Development CCIS Citizen Complaint & Information System PBG(s) Performance-based grant(s) CSO(s) Civil Society Organization(s) PCR Physical cultural resources CTS Complaint Tracking System PDO Project Development Objective DA Designated Account PIM Project Implementation Manual DB Doing Business PKR Pakistan Rupees DMC District Municipal Corporation PM(s) Performance Measure(s) E&TD Excise and Taxation Department PMU Project Management Unit E&S Environmental and Social PPP(s) Public-private partnership(s) EMF Environmental Management Framework PPSD Project Procurement Strategy for Development EMP(s) Environmental Management Plan(s) PRRP Project Risk Reduction Procedure FM Financial Management RAP(s) Resettlement Action Plan(s) FMIS Financial Management Information System RFP Request for Proposal FY Fiscal Year RPF Resettlement Policy Framework GBV Gender-based violence SBP Sindh Business Portal GIS Geographical Information System SEA Sexual exploitation and abuse GoS Government of Sindh SIA Social Impact Assessment GRM Grievance Redress Mechanism SID Sindh Investment Department GRS Grievance Redress Service SMF Social Management Framework ICT Information and Communication Technology SOP(s) Standard Operating Procedure(s) IFC International Finance Corporation SoRP Statement of Receipts and Payments IBRD International Bank for Reconstruction and SPPRA Sindh Public Procurement Regulatory Authority Development IMF International Monetary Fund STEP Systematic Tracking of Exchanges in Procurement IPF Investment Project Financing SWM Solid Waste Management IT Information Technology SSWMB Sindh Solid Waste Management Board IFR(s) Interim Unaudited Financial Report(s) TA Technical Assistance KNIP Karachi Neighborhood Improvement Project TOR Terms of Reference KMC Karachi Metropolitan Corporation UIPT Urban Immovable Property Tax LC Local Council WB World Bank LGD Local Government Department WBG World Bank Group M&E Monitoring and Evaluation The World Bank Competitive and Livable City of Karachi Project (P161402) TABLE OF CONTENTS DATASHEET ................................................................................. ...........................................i I. STRATEGIC CONTEXT ...................................................................................................... 1 A. Country Context................................................................................................................................ 1 B. Sectoral and Institutional Context .................................................................................................... 1 C. Relevance to Higher Level Objectives ............................................................................................... 4 II. PROJECT DESCRIPTION .................................................................................................... 5 A. Project Development Objective ....................................................................................................... 5 B. Project Components ......................................................................................................................... 5 C. Project Beneficiaries ....................................................................................................................... 10 D. Results Chain .................................................................................................................................. 11 E. Rationale for Bank Involvement and Role of Partners ................................................................... 11 F. Lessons Learned and Reflected in the Project Design .................................................................... 11 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 12 A. Institutional and Implementation Arrangements .......................................................................... 12 B. Results Monitoring and Evaluation Arrangements......................................................................... 13 C. Sustainability ................................................................................................................................... 13 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 14 A. Technical, Economic and Financial Analysis ................................................................................... 14 B. Fiduciary .......................................................................................................................................... 16 C. Safeguards ...................................................................................................................................... 17 D. Gender ............................................................................................................................................ 19 V. KEY RISKS ..................................................................................................................... 20 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 23 ANNEX 1: Implementation Arrangements and Support Plan .......................................... 32 ANNEX 2: Additional Details for Project Components .................................................... 38 The World Bank Competitive and Livable City of Karachi Project (P161402) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Pakistan Competitive and Livable City of Karachi Project Project ID Financing Instrument Environmental Assessment Category Investment Project P161402 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 27-Jun-2019 30-Jun-2024 Bank/IFC Collaboration Joint Level Yes Complementary or Interdependent project requiring active coordination Proposed Development Objective(s) To improve urban management, service delivery and the business environment in Karachi Components Component Name Cost (US$, millions) Page i of 50 The World Bank Competitive and Livable City of Karachi Project (P161402) Performance-based Grants to Local Councils and Capacity Building 169.40 Modernizing Urban Property Tax Administration and System 40.40 Improvement of City Competitiveness and Business Environment 20.20 Technical Assistance for Solid Waste Management 10.00 Organizations Borrower: Islamic Republic of Pakistan Implementing Agency: Local Government Department, Government of Sindh Province of Sindh Excise & Taxation Department, Government of Sindh Investment Department, Government of Sindh PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 240.00 Total Financing 240.00 of which IBRD/IDA 230.00 Financing Gap 0.00 DETAILS-NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 230.00 Non-World Bank Group Financing Counterpart Funding 10.00 Borrower/Recipient 10.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2019 2020 2021 2022 2023 2024 Annual 0.00 12.00 21.00 50.00 70.00 77.00 Page ii of 50 The World Bank Competitive and Livable City of Karachi Project (P161402) Cumulative 0.00 12.00 33.00 83.00 153.00 230.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Social, Urban, Rural and Resilience Global Finance, Competitiveness and Innovation, Governance Practice Climate Change and Disaster Screening This operation has been screened for
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