Performance Assessment & Business Plan Development WSSP - Inception Report

1. INTRODUCTION

GoKP used the Corporatization as a tool to transform water and Sanitation functions to mimic principles (efficiency, efficacy, autonomy, financial viability and accountability) of a private company. . In 2010 Water and Sanitation Program (WSP) of World Bank, supported the Government of KP (GoKP) through a Technical Assistance(TA) on the utility reform agenda to make an informed decision to improve water and sanitation services in Peshawar. The government of Khyber Pakhtunkhwa established the Water and Sanitation Services Peshawar (WSSP), an urban utility as a public limited company, registered with the securities and exchange commission of Pakistan (SECP), under section 42 of the companies Ordinance, 1984( now the Companies Act 2017) in December 2013 for efficient delivery of water and sanitation services to around 2 million consumers residing in 47 urban Union Councils of Peshawar in the territorial jurisdiction of defunct Municipal Corporation Peshawar. It is Pakistan’s 1st corporate governed and autonomous urban utility company in Pakistan with integrated approach for delivery of water, sanitation and solid waste management services with its head office located in Hayatabad, Peshawar, WSSP has four regional offices appropriately located to be conveniently accessible to the general public. The Chief Executive Officer (CEO) of the utility took over in 2014 and the utility was operationalized in September 2014 after acquiring asset and staff, signing of services and asset management agreement (SAMA) with the city government and recruitment of new managerial staff. WSSP is headed by CEO who reports to the Board of Directors. Board of Director as a governing body is overall responsible for monitoring the performance of WSSP by regularly conducting progress reviews through meetings, allocating required resources, providing guidance to the management in improving the service delivery ensuring the provision of services effectively and efficiently as per mandate of WSSP. The rationale for setting up this company is to amalgamate, under one corporate entity, all drinking water, sanitation and solid waste management services in Peshawar City previously provided by various government entities, departments and sections such as Peshawar Municipal Corporation, Town Municipal Administrations, Peshawar Development Authority and University Town Committees. This integration is expected to significantly improve the overall planning and service delivery in the city through infrastructure development, and making operations and maintenance more efficient and effective. The goal of WSSP is to “bring sustained improvement in water and sanitation delivery to effectively address the basic needs of citizens of Peshawar” Since the startup of the WSSP, the utility has been working tirelessly to upgrade the decades’ old dilapidated service delivery structure. From bringing in change in waste collection services to mechanical overhauling of the pumping machinery; WSSP is pushing its human resource and finances to deliver a better service. With this operational load on WSSP to prove its worth, the utility is somewhat lagging in developing its database and innovative programs for customer oriented service delivery organization.

1.2 CONSULTANT

The Urban Unit was established in 2006, as a Project Management Unit (PMU) of the Planning and Development Department of the Government of Punjab, headquartered in Lahore. In 2012, the Unit underwent transformation and became an independent operating public sector company, registered with SECP. It is a multi-dimensional organization that is centered upon systematic development of urban areas through shared data repository, national and international collaborations with research centers and international donor agencies. The objective of the company is to facilitate government run agencies, private entities and donor agencies in designing sustainable places in balance with aspirations of communities with reliable and legitimate technical advisory services. The aim is to achieve socio-economic goals in public servicing, as cities become engines of growth.

1.3 PROJECT BACKGROUND

The Government of Khyber Pakhtunkhwa (GoKP) is cognizant of “Water Sector” (water resources, drinking water and sanitation) importance and its improvement is one of key priorities of the government. The government has also shown its commitment to drinking water sector by approving Provincial Drinking Water Policy in 2015 and introducing institutional reforms in the drinking water and sanitation sectors. The policy commits to improve access, as per SDG, through financing and institutional reforms. The Swiss Development Corporation (SDC) is supporting GoKP through Khyber-Pakhtunkhwa – Water Governance Program (KP – WGP) to bring visible improvement in Water Governance sector including devising a holistic mechanism for KP’s water sector management. WSSP is one of the recipients of KP-WGP. The TORs” Performance Assessment and Business Plan Development for WSSP” is one of the activity, hereafter wards referred as the Project, under the KP-WGP.

Project Location 67 Union Councils of Peshawar City falls under the Jurisdiction of WSS Peshawar Funding Source /Agency SWISS Development Corporation (SDC) Duration of the Assignment 7 Months Implementation Agency Water and Sanitation Services Company-GoKP

The project will be carried out on two phases: Phase I: “Performance Assessment of WSSP” Phase II: “Development of Business Plan for WSSP”

Complete Report: File:Inception Report.docx