Pakistan: Khyber Pakhtunkhwa Cities Improvement Project


Category A


USD200 million


September 18, 2020
September 15, 2021
December 16, 2021


The objectives of the project are to improve access to reliable and resilient urban services and strengthen institutional capacities of urban service providers and local governments in selected cities of the Khyber Pakhtunkhwa (KP) province.


The project will support the Government of Khyber Pakhtunkhwa to construct, rehabilitate and revitalize core urban infrastructure, including water supply, sewerage, Solid Waste Management (SWM) and green urban spaces in five provincial cities namely Peshawar, Abbottabad, Kohat, Mardan and Mingora. This will be achieved through three interlinked outputs: (i) climate resilient and gender friendly urban infrastructure and services improved; (ii) institutional capacities of urban service providers strengthened; and (iii) women’s role in urban development increased. Project components include:

  • Component A (Water Supply and Sanitation) will improve the coverage and access to water and sanitation infrastructure by augmenting potable water supply and storage facilities, promoting water safety, improving water conservation, upgrading sewerage networks and constructing new sewage treatment facilities.
  • Component B (Solid Waste Management) will address the gaps in infrastructure and service delivery of SWM by providing collection equipment, vehicle fleets, mechanical/biological treatment facilities and properly designed sanitary landfills.
  • Component C (Green Urban Infrastructure) will finance the development of green infrastructure and public spaces to promote healthy and sustainable living environments which will include green spaces, de-congestion of city centers, parks, and other nature-based solutions. Gender-equitable activities to promote small enterprises and skills will also be supported.
  • Component D (Institutional Strengthening and Capacity Building) will strengthen technical and institutional capacities of the Water and Sanitation Services Companies, city governments and provincial governments.
  • Component E (Women’s Participation in Urban Development) will increase women’s participation in urban governance and services and improve their access to economic opportunities



The proposed loan is co-financed with ADB, and the project's Environmental and Social (ES) risks and impacts have been assessed in accordance with ADB’s Safeguard Policy Statement 2009 (SPS). To ensure a harmonized approach in addressing ES risks and impacts of the project, and as permitted by AIIB’s Environmental and Social Policy (ESP), ADB’s SPS will apply to the project in lieu of AIIB’s ESP. AIIB has reviewed ADB’s SPS and is satisfied that: (a) it is consistent with the Bank’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP including AIIB's Environmental and Social Exclusion List and relevant Environmental and Social Standards; and (b) the monitoring procedures that are in place are appropriate for the project.

The GoKP has prepared a total of four draft Environmental Impact Assessments (EIAs) for the solid waste management sub-projects, eight Initial Environmental Examinations (IEEs) for water supply, sanitation and sewage treatment plants (STPs) and nine stand-alone Environmental Management Plans (EMPs) for green urban space sub-projects, which are all categorized as Category C sub-projects. A consolidated Social Due Diligence Report (SDDR) was prepared to screen all the activities for land acquisition and Involuntary Resettlement (IR) impacts. Fourteen of the 24 activities do not cause any Land Acquisition and Resettlement (LAR) impacts or social risks.

The Project is expected to have positive environmental benefits as the subprojects will reduce urban pollution and prevent soil and water contamination. Urban green space interventions will enhance the urban quality with a range of environmental benefits. The adverse environmental impacts due to large-scale construction at multiple geographic locations will be avoided or minimized through appropriate design. Measures to mitigate the remaining impacts are included in the EMPs. The Project adopts viable climate adaptation measures into the designs.

Seven activities out of 24 subprojects require acquisition of approximately 91 acres of private land comprising of about 21 acres of agriculture and about 70 acres waste/barren land. A total of 117 acres of land has already been acquired by the government for another three activities; 115 acres of which is barren land. However, Corrective Action Plans (CAPs) are being prepared to address legacy issues and ensure that these activities are compliant with requirements of the ADB’s SPS. A Gender Action Plan (GAP) has been prepared. The Project directly addresses gender equity through women’s participation in urban governance.

Consultation meetings were held with a wide range of stakeholders and the community views were incorporated into the ES documentation as well as subproject designs. All of the ES documents have been disclosed on the websites of ADB. and GoKP since February 2021. GoKP will have the Executive Summaries of the ES documentation in Urdu language at the same website. The links are provided on AIIB website.

A three-tier Grievance Redress Mechanism (GRM) will be established. The information on the GRM has been disseminated through the ES documentation.


Asian Infrastructure Investment Bank

Ghufran Shafi

Senior Investment Operations Specialist


Asian Development Bank

Kiyoshi Nakamitsu

Principal Urban Specialist


M. Aslam Chaudhary

Joint Secretary, Economic Affairs Division




Vasif Shinwari

Project Director

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