Punjab Intermediate Cities Improvement Investment Project (ADB-46526-007)

  • Pakistan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 19, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Government of Pakistan
The holder of the loan, grant, or other investment.
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Loan Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 20, 2020

Disclosed by Bank Sep 26, 2017

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Project Description


The project will improve the quality of life of the residents in the two intermediate cities of Sahiwal and Sialkot in Punjab Province, making these cities more livable and sustainable. This will be achieved by improving urban infrastructure and services, and operations and maintenance capacity for urban service delivery.


The Government of Pakistan has realized the importance of making its cities, particularly the intermediate cities, more livable and has put the urban sector at the forefront of its national development strategy. Pakistan's Vision 2030 and Framework for Economic Growth envisage livable cities as engines of national growth and centers of economic activity, culture, and knowledge. The Framework recognized the advantage of the local governments in managing the urban development on the ground, as they are closer to the beneficiary population with an informational advantage in identifying citizens' preferences, as well as essential flexibilities to respond rapidly to evolving city's needs. Under these circumstances, the government amended its constitution to decentralize the role of urban services to the provincial governments. The project will support the two city governments of Sahiwal and Sialkot to improve key urban services delivery.


Living standards, health, and economy in Sialkot and Sahiwal improved.


All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Consultants support will be provided under the project to the executing agency and Project Management Unit (PMU). This support will include project management, financial management, procurement, contract administration, safeguards implementation, and monitoring and evaluation. Two consulting firms will be engaged to provide specialist technical support in the technical design and engineering aspects of solid waste management, procurement of civil works and goods contracts, and construction monitoring and supervision. In addition to the PMU consultants, four consulting firms will be recruited for the following subprojects (i) operational design and business model, (ii) audit and finance, and performance monitoring, (iii) technical support studies and Integrated City Development Strategy implementation, and (iv) operation and maintenance of Sahiwal Sewerage Treatment Plant. The project also provides technical support, through a firm, on the capacity building for the design of training programs and its implementation. Given the envisaged technical complexities and the requirement for high quality, all consulting firms will be engaged using the quality- and cost-based selection method with a quality cost ratio of 80:20 in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).


Procurement capacity assessment of the implementing agency has been undertaken and included as a linked document. Based on the findings of the assessment, the thresholds for procurement of goods and works as well as consulting services have been defined, and the degree of ADB oversight (prior and post review) has been recommended. These are set forth in the underlying procurement plan.

Investment Description
  • Asian Development Bank (ADB)
Contact Information

Local Government and Community Development Department, Government of Punjab
Muhamad Ali Gardezi
Dir Gen/P
6th Floor Local Government Complex
Sanda Road, Lahore


The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main