Local Governance Performance Incentives for

Municipal Service Delivery Punjab, Pakistan

Punjab Municipal Services Improvement Project

Pakistan Urban Forum, Karachi10 January, 2014

Shahnaz Arshad

Pre-Project Context Stagnating urban service delivery at TMA level

Local Government a provincial subject - 1973 Constitution

In 2001 - a drift away from history• Rural-Urban divide abolished; principle of subsidiarity

introduced • TMAs created as body corporate - new sub-district level of LGs

Tasked with providing a range of municipal services; but largely under-resourced and sub-optimally managed

Reliant mainly on provincial grants for financial resources

Most with little capacity or systems to utilize larger funds, even if available

No mechanisms for effective provincial regulation or oversight

… Pre-Project Context

Management posted from central services - controlled by them

Annual Confidential Report a tool of performance appraisal – not linked to their performance on delivering LG mandates

Provision of awarding bonuses (PLGO 2001) not operationalized

Absence of even baseline data on coverage or quality of services- unable to set achievable targets

Lack of O&M culture - focus on new investments

Result - most TMAs unable to:• Provide efficient & effective municipal services• Invest in much-needed infrastructure expansion or service

improvements

Objective

• Improve viability & effectiveness of urban services provided by Tehsil Municipal Administrations (TMAs)

• Make improvements sustainable & replicable through TMA & provincial performance-based management framework

Compone

nt1

• Capacity Grants (to TMAs) for improving performance through urban & investment planning, financial management, improved O&M, M&E, complaint tracking etc.

Component 2

• Development Grants (to TMAs) for financing priority infrastructure investments

Compone

nt3

• Capacity building of provincial LG Department – for monitoring LG performance

Project Snapshot

Demand Driven Participation

PMDFC a Corporate

Implementing Agency

TMA Capacity Building Package

Investment Grants as an

Incentive

Follow up & SIP Grants

Reward Progress

Infrastructure & Service Baselines

Performance Management System with

Targets & Indicators

Decentralized

Implementation by TMAs

Key Features

Innovations in DesignIntegrated Systems Approach for Institutional Development

Hands-on Capacity Building Support with Continuous Follow-up

Contemporary Contract

Management

Data-based Performance Management

Computerized Financial

Management

Strategic & Demand-

based Planning

Efficient & Transparent Complaint Tracking & Resolution

Enhanced Use of Information Technology in

Routine Operations

Key Project Results

Institutional Development Province-wide data available - integrated, real-time - centrally tracked by

provincial LG Department

Performance Management System measuring, managing, and reporting on TMA performance

Computerized Accounting & Financial Management

GIS-based municipal service maps; Structure Plans; and prioritized investments

Citizen’s Complaints efficiently tracked and resolved

TMA Websites facilitating Public Disclosure and Access to Information

TMA staff (3,137) trained in areas such as IT (basic and intermediate), Planning (including the use of GIS for land-use planning), and operation & maintenance of infrastructure assets

Infrastructure Development• Improved & systematic Project Planning & Design

• TMAs capacitated in administration of FIDIC-based contract documents

• Streamlined Project Management – CPM-based project scheduling by contractors & supervision consultants

• Implementation of Operations & Maintenance (O&M) manuals

• 53% of households connected to water supply systems on average in 11 TMAs with PMSIP-funded subprojects - up from 40% in mid-2006;

• 74% of solid waste generated disposed at landfill sites on average in 6 TMAs – up from 0 in 2006

Infrastructure Development Portfolio

Central Oversight for Municipal Service Delivery

Now Transitioned to Local Government Department

Initially Housed in PMDFC

Robust Performance M&E System Province-wide At TMA level Centrally Tracked Used for Oversight

PMSIP TMAs in Punjab

Web based IntegratedPerformance Management

System

Performance Management System – Water Supply

Performance Management System – Solid Waste

Web Based Performance Dashboards for Complaint

Tracking System

Complaint Tracking System – TMA Monthly Dashboards (1)

Financial Management SystemWater Supply Billing Module

Water Consumer Search List

Water Bill Generation Form

CFMS Generated Water Bill

Analyzing Financial Data for Performance

Financial Analysis – Solid Waste

Financial Analysis – Street Lights

Financial Analysis – Water Supply

GIS Maps

Outcomes Achieved

Robust LG Capacity Building Vehicle

established in the Punjab

A culture of Performance

Oversight setting in at provincial

level

Culture of Performance Management

setting in at municipal

level

Emerging Context

New Punjab LG Act: Rural-urban divide re-introduced

Urban Local Bodies will now govern towns and cities

Performance of officials & service delivery organizations defined and monitored by Mayors

Performance Review of officials to be in light of given targets

LG&CDD currently developing rules of business of urban LGs; reflecting business processes developed under PMSIP

Lessons Learnt

Starting small, learning, & scaling-up paid dividends in quality

Sustainability requires enabling environment & oversight from higher levels

Decentralized implementation, while slowing progress, ensures sustainable capacity building & ownership

LGs take strong ownership if interventions assist in responding to their mandates

Incentives & rewards are vital in maintaining LG interest & sustainability of results

Adequacy of staffing & requisite skill sets is essential to maintain systems introduced

Viable improvements in service delivery require robust O&M systems