Public Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized. Report No.

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Project Name Region Sector Project ID Borrower Implementing Agency Report No. PID7735 Pakistan-Lahore Urban Transport... Project (LUTP) South Asia Urban PKPE10539 Government of Pakistan Date PID Prepared December 14, 1998 Date Initial PID Updated March 17, 1999 Projected Appraisal October 4, 1999 Projected Board Date March 28, Metropolitan Corporation of Lahore (MCL),Town Hall, Lahore. (Tel: , , Fax: ) 2. Transport Department (TD), Government of Punjab (GOPunjab) 1st Floor, Old State Bank, Aiwane-Auqaf Building Lahore (Tel: ) 3. Traffic Engg. and Transport Planning Agency (TEPA) Lahore Development Authority, 4-C Lytton Road, Lahore (Tel: ) 1. Country and Sector Background: Lahore, the capital of Pakistan's populous Punjab province, has about 5 million inhabitants, making 9 million daily trips to work, shopping or recreation, other than walking. Average urban population growth is around 4.7w per annum. The transport network in Lahore is poorly developed and is under-maintained with insufficient traffic regulation and enforcement. This is exacerbated by the diversity of the traffic mix in Lahore which includes pedestrians (pushed off-sidewalks onto streets), animal-drawn vehicles, bikes, motorbikes, motor-rickshaws, cars, vans, mini-buses, inter-city coaches and trucks. Public transport services dominated by 18-seater mini-vans, are inefficient, overcrowded, unreliable, and unsafe, and are the cause and victim of congestion. Both current and capital spending for transport infrastructure have been haphazard, and have lagged behind urban expansion and traffic growth, especially secondary and tertiary road/drainage networks in lower income parts of the city have been neglected which become impassable in the rainy season for pedestrians and vehicles alike. Institutional responsibilities for the road network are fragmented between Lahore Metropolitan Corporation (MCL), Lahore Development Authority (LDA) with its urban development wing and its traffic wing (Traffic Engineering and Planning Agency - TEPA), and the state/federal road agencies. Institutions are weakly co-ordinated, lack functional autonomy and stable budgets. With the exception of traffic engineering

2 (TEPA), the level of technological, financial and planning capability in Lahore's transport institutions is low. Due to assistance from earlier Bank projects, TEPA has developed some traffic engineering and traffic management skills. An urban transport strategy for Lahore was developed in 1991 with assistance by Japan International Cooperation Agency (JICA) but there is little capacity within TEPA, or any of the institutions involved in roads [within Lahore], to receive, implement, monitor results and dynamically adjust the strategy. 2. Objectives In response to challenges brought on by the city's growing population and economy, the overall objective is to improve the performance of Lahore's transport system in a sustainable manner. Specific objectives are to: Increase traffic capacity and improve road network condition in the Lahore Metropolitan Area Improve performance of institutions, which have jurisdiction over the delivery of transport infrastructure and services Institute sustainable financing arrangements for urban road maintenance and expansion 3. Project Benefits The direct project benefits include: increased mobility/ reduction in travel times, due to strategic upgrading of intersections on selected arterial roads and in the inner area [and other densely trafficked localities], integrated traffic engineering, management and signal control improvements, revitalized transport planning for the Lahore metropolitan area, and improved public transport services improved access and safety due to more effective road, street and sidewalk maintenance and rehabilitation; improved public transport implementation of a traffic safety program; and improved public transport, through bus route improvements and introduction of higher quality services on major corridors, using modern bus fleets. This will also provide expanded access to public transport especially for women, children and the elderly, and improvements in environmental quality. Integrated traffic engineering and signal control improvements, upgrading of intersections will reduce engine idling time and hence pollution from vehicle emissions, as would the phased replacement of poorly maintained minibuses by modern buses. Comprehensive road, sidewalk, and drain repairs in selected neighborhoods will improve overall environmental conditions in those areas. 4. Project Risks The project risks narrow down to the following aspects: (1) delays in implementation of the up-front institutional reforms and resource mobilization measures that are pivotal to the project implementation and sustainability of assets developed under the project; and, (ii) - 2-

3 implementation delays on account of weak institutional capacity. (See attached Table 1). 5. Description GOPunjab has confirmed that urban local bodies (ULBs) are the prime institutions for the provision of urban services. To give ULB's the needed autonomy, management and technical capacity, and the necessary financial resources to carry out their functions, GOPunjab has agreed to decentralize decision-making, streamline provision of services, and give responsibility and accountability to strengthened local institutions. GOPunjab has also agreed to strengthen its own transport and financial institutions to enable them to provide enhanced support to urban local bodies including MCL. LUTP supports the implementation of such reforms in Lahore. The eligibility criteria agreed for inclusion of individual schemes under the project would help promote prudent metropolitan management and efficient implementation arrangements. The Project consists of the following components: Traffic Management and Road Infrastructure Expansion: Intersection improvements and traffic management measures. New road links Traffic Signals Bus route improvements Design and Supervision Road agency strengthening Transport master planning Traffic Safety program Transport Regulatory Body and Bus network planning Transport Infrastructure Maintenance: Road, sidewalk, and drain rehabilitation Design and supervision Maintenance management system The project will proceed in two phases. The first phase will include: (i) robust intersection improvements, traffic signals; bus route improvements; road infrastructure maintenance and rehabilitation in pilot zone; (ii) technical assistance to strengthen the newly consolidated road agency; continue development and implementation of the maintenance management system; update the Lahore Transport Master Plan; initiate traffic safety program; continue assistance for public transport reforms, etc. In the second phase, the choice of sub-projects and TA will be guided by the overall urban strategy for Lahore emerging from the Master Plan update. Bank funds would flow from the GOP to GOPunjab, which in turn will onlend these to MCL in the form of a loan/grant mix. MCL will use these funds to finance eligible sub-projects and technical assistance/studies, and will be responsible for servicing the resulting debt. As part of project preparation, an assessment is currently being made of MCL's and GOPunjab's ability to service the debt. The project size will be adjusted to match these findings, taking into account proposed new - 3-

4 resource mobilization measures, as well as the institutional capacity to implement the project. The Traffic Management and Road Infrastructure Expansion Component would support GoPunjab's measures to clarify institutional roles and responsibilities for transport infrastructure in Lahore, remove functional overlaps to better manage infrastructure programs and to improve public transport services. The component would include gradeseparated and at-grade intersection improvements, traffic management and traffic signals along bus routes, traffic management and other related improvements in the inner area and other densely trafficked localities, new high priority road links, and technical assistance for consolidation of road agency functions under a strengthened MCL road wing, transport planning, strengthening the regulatory environment for public transport, enforcement of traffic regulations and for implementing a traffic safety program. The Transport Infrastructure Maintenance Component would support institutional and revenue sharing arrangements for ensuring adequate funding for maintenance and rehabilitation, implementation of an efficient maintenance management system, and competitive bidding (through private contractors) for undertaking the maintenance and rehabilitation programs. The component would include road, street, sidewalk and drainage rehabilitation and associated technical assistance for instituting a maintenance management system. 6. Financing The following amounts are indicative, and will be finalized based on an assessment of the Borrower's debt servicing and implementation capacity. Source Local (US$ mil) Foreign (US$ mil) Total (US$ mil) GoPunjab/MCL Cofinanciers IBRD IDA Total Implementation The project design provides the Lahore authorities with flexibility by establishing eligibility criteria for selecting rehabilitation and capacity expansion sub projects (similar to the proposed Punjab Municipal Development Fund Project). Detailed preparation of the program to be started in the first phase would be completed by appraisal so that implementation could begin in FY Selection of sub projects for the remainder of the project period would be based on eligibility criteria to be finalized by appraisal. The Traffic Management and Road Infrastructure Expansion component will be implemented through TEPA - presently part of LDA, but to be integrated into a strengthened MCL road wing. The first-phase program includes bus route improvements, traffic signaling and grade separation at priority intersections. The terms of reference for preparation of detailed designs and bid documents have been agreed and selection of consultants is underway. The TOR for the remaining elements will be agreed by appraisal and financed under the loan

5 The component would also include technical assistance for strengthening the consolidated MCL road wing, for the public transport regulatory agency, for development and implementation of a traffic safety program in coordination with the traffic police and related sector agencies, and for developing transport planning capacity at the city level, in cooperation with the University of Engineering and Technology Lahore, for which TOR would be agreed by appraisal. A strengthened MCL road wing will implement the Transport Infrastructure Maintenance component. This component will start with one zone in Lahore, and will continue for other zones during the project. Preparation of engineering designs, bid documents and eligibility criteria (for selecting the candidate projects and for prioritizing selected projects, within a zone) is under preparation and will be ready by appraisal. MCL will invite bids for routine and periodic maintenance contracts for at least one zone through a competitive process, and award contracts before Board presentation. To streamline its maintenance arrangements, MCL is undertaking an Institutional Alignment Study through consultants to recommend (a) the institutional structure for MCL road operations; (b) reforms and procedures within MCL and associated utility providers to ensure efficient management and delivery of MCL's expanded road functions; (c) a policy framework and code of practice for cross utilities coordination, (d) procedures for contracting road and street maintenance, and (e) training needs for MCL staff. The study to be completed before appraisal, will provide the appropriate institutional framework and identify specific reforms needed for efficient, transparent and sustainable maintenance of Lahore's roads and streets. 8. Sustainability The project design incorporates time bound action plans for policy, institutional, and resource mobilization reforms needed for sustainable improvements in Lahore's transport system. In addition the project supports greater participation of the private sector in infrastructure maintenance and also in the provision of modern bus services. 9. Lessons learned from past operations in the country/sector The lessons from Urban Sector Projects in Pakistan include: Project design should be simple, focus on specific sub-sectors, and have modest objectives; Borrower commitment should be sought through up-front actions; Lack of borrower absorptive capacity is reflected in disbursement lags and cancellations of undisbursed loans. Many infrastructure projects were too large and complex for the limited planning, engineering and implementation capacity of the implementation agencies. Previous projects have also been hampered by: (a) complicated administrative processes for the award of contracts; (b) difficulties with land acquisition and encroachment; (c) difficulties with physical relocation of public utilities; and (d) slow establishment of project units and coordinating mechanisms. - 5-

6 10. Poverty Category Not applicable. 11. Environmental Aspects In accordance with OD 4.30 dated June 1990, para 20, "The screening process for an environmental assessment (EA) normally classifies projects involving involuntary resettlement as Category A", the project preparation team's initial assessment has categorised as a Category A project, as it may possibly involve involuntary resettlement. This would be further reviewed based on the findings of a proposed city-wide social and environmental assessment (SEA). Overall Strategy - The sectoral social and environmental assessment (SEA) will be included in the TOR for the Transport Master Plan update that will be completed before the Phase II investments and the Phase I sub-project SEAs (after due diligence) will be collated into a report to the Board before end of appraisal. This report will also include a review of the IAs capability (and recommendations on improvement, if needed) to implement the mitigation measures, and to subsequently monitor and evaluate. An environmental conference will be held during the sub-project SEAs, to raise awareness to SEA issues. The format of the SEA report to the Board will also be finalized during the sub-project SEAs. Sub-project level SEAs - Sub-project-specific social and environmental assessments (SEA) will be undertaken to identify and quantify (and where appropriate, assign a monetary value to the extent possible) the likely negative and positive social and environmental impacts of the proposed LUTP components, as contemplated and suggest the required design changes and measures to be implemented to mitigate the negative impacts of the project. Detailed mitigation plans will be prepared for each project component or sub-project, as appropriate. These subproject level SEAs have already been incorporated in the TORs issued by the IAs for various subproject preparation activities Policy, legal and administrative framework for SEAs - The current policy, legal, and administrative framework--vis-a-vis environmental and social considerations--within which the project will be implemented, is being reviewed as part of the ESR (Environmental and Social Regulatory) framework that is being developed for the Punjab Municipal Development Fund (PMDF) Project. Social consultations/ consultative process - Initial consultation will be undertaken by consultants during individual sub-project SEAs. Subsequent stakeholder consultation will be carried out through a workshop led by the Lord Mayor, once the specific designs are available, and the sub-project impacts are clearly identified. The government maintains that it has already in place an active consultation process that is exemplified for example by the weekly coordination meetings held for the MCL executed Road Rehab program. A similar approach will be used during LUTP implementation. Furthermore the government will provide the Bank information/documents explaining its consultation and grievance redress/mitigation process used in two recently completed bridge and road rehabilitation projects, as evidence of the process already in place. The GoPunjab team emphasized that with an elected provincial and - 6 -

7 local government now in place, that is accountable to its constituents, public participation and consultation will be a natural and continuing process. Identify the institutional arrangements needed for participation and project delivery and capacity building initiatives/plans -. This will be the responsibility of the concerned implementing agencies (TEPA and MCL etc.). Certain capacity already exists as evidenced by their recent implementation record. This is being supplemented through the preparation consultants. Existing capacity will be assessed at appraisal, and if necessary supplemental arrangements will be put in place. Clarify entitlement framework and resettlement policies - including those for encroachers.- A draft entitlement framework has already been sent to GoPunjab for both PMDF and LUTP. Based on an initial review GoPunjab officials have indicated that about 70- of this is already covered by existing Pakistani legislation. For the rest they will send the Bank their comments shortly. This will be discussed and agreed by appraisal. Resettlement related actions (where applicable):- these will be prepared where needed as part of individual sub-project SEAs. Identify and study resettlement sites for approval Prepare resettlement action plan (RAP)/rehabilitation programs Finalize and setup institutional arrangements for resettlement preparation in each phase Establish grievance redress process Prepare environmental management plan (EMP).and prepare implementation schedule, including cost estimates and budgets- This will be based on the EMPs developed at the individual sub-project level. Cumulative impacts e.g. City level traffic diversion plans will be developed to coordinate the construction phase. Set up training, monitoring, supervision, and impact evaluation mechanisms -. Third party supervisory consultants will help monitor and evaluate impacts. Overarching responsibility to be with the Mayor's office. Training needs to be reviewed discussed and finalized at appraisal, based on an institutional capacity assessment, and inputs provided through individual SEAs. Develop an Approval Framework for detailed social and environmental assessment of sub-projects to be included in future phases of the program - This is already being done as part of the PMDF ESR framework. Will also be applicable to LUTP, where draft eligibility criteria have already been agreed and included in the PCD. Furthermore, GoPb has agreed that each major sub-project will have a SEA included as part of its feasibility and detailed preparation. 12. Program Objective Categories - 7-

8 Environmentally sustainable development. 13. Contact Point: The InfoShop The World Bank 1818 H Street, N.W. Washington, D.C Telephone No. (202) Fax No. (202) Task Team Leader Navaid A. Qureshi (Tel: ext. 311) Note: This is information on an evolving project. Certain activities and/or components may not be included in the final project. Processed by the InfoShop week ending May 29, Table available in the InfoShop. -8-