This project is based on four components.


Performance-based Grants to Local Councils and Capacity Building

It is finance formula-based block grant to Karachi Metropolitan Corporation (KMC) and the all-District Municipal Corporation DMCs and District Council upon achievement of results by providing incentive to local councils to improve their institutional performance and capacity in areas of investment planning and execution, financial management, procurement, social and environmental, business environment, and citizen engagement/ accountability. The grants would be used to fund local level infrastructure and municipal services within respective mandates of KMC and the DMCs to improve Karachi’s livability and competitiveness. Indicative eligible investments may include small secondary/tertiary drainage works, municipal roads, street lighting, parks and other public spaces, public buildings and markets.

The Capacity building grant;
  1. Needed resources
  2. Consultancy and non-consultancy services
  3. Trainings

Local Councils will be able to access this grant upon fulfilling simple Access Conditions every year.

The Performance Based Infrastructure Grant;
  1. Infrastructure subprojects
  2. Aims to incentivize Local Councils to achieve more advanced institutional improvement.

It will be accessible upon achieving specified Performance Measures (PMs) annually which build on foundations laid by the MCs.

The Minimum Conditions Infrastructure grants;
  1. Capital infrastructure subprojects of Local Councils
  2. An incentive to build basic level of institutions

Local Councils will be able to access this grant upon achieving specified Minimum Conditions (MCs) annually

Assistance and performance grants implementation and management
will strengthen the institutional capacity of LGD to coordinate, manage and implement the PBG system and to provide centralized capacity building support to all participating Local Councils.


Modernizing Urban Property Tax Administration and System:

It is aims to support the implementation of reforms for urban immovable property tax (UIPT) in Karachi, including possible phased devolution of UIPT collection to LCs in the medium to long term. Government of Sindh has developed a roadmap for improvements in UIPT and phased devolution to LCs to improve efficiency, transparency and incentives for this tax.


Improvement of City Competitiveness and Business Environment

It is oriented towards improving the business environment of Karachi, as opposed to other activities, owing to complementarities between the activities in this and other components of the project It has the following subcomponents: (1) Streamlining and Integrating Business Regulations for City Competitiveness; (2) Establishment of PPP node at local government department (LGD)


Technical Assistance (TA) for Solid Waste Management:

It is aims to provide TA to, and building capacity of, LGD and Sindh Solid Waste Management Board (SSWMB) to improve solid waste management (SWM) and include development of drainage and SWM master plans, financing models, public awareness campaigns, feasibility studies for private financing models, etc. tentative technical assistance activities and selective investments in integrated drainage and SWM are included.

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