reform of gujranwala water and sanitation agency (wasa...

Reform of Gujranwala Water and Sanitation Agency (WASA-G)

Design of Institutional Framework and Corporate Structure

FINAL REPORT

31st March, 2009

Syed Mansoor Ali Shah

(Legal Counsel)

FINAL REPORT

Syed Mansoor Ali Shah 31ST MARCH, 2009

LAHORE.

Reform of Gujranwala Water and Sanitation Agency (WASA_g) Design of Institutional Framework and Corporate Structure

Reform of Gujranwala Water and Sanitation Agency (WASA-G) Design of Institutional Framework and Corporate Structure

Review of Legal Framework and Support Analysis of Options for WASA-G

FINAL REPORT

Tasks 1-4

31st MARCH, 2009

Syed Mansoor Ali Shah1 Advocate Supreme Court of Pakistan

AFRIDI, SHAH & MINALLAH Law and Policy Consultants and Advocates

15/2 FCC Syed Maratab Ali Road

Gulberg-4 Lahore

Email: manlive@gmail.com Website: www.asmlaw.com.pk

1 M/s. Nusrat Jahan Nabeela and Usman Dawood, Advocates High Court, closely worked with me on this assignment. I thank them for their research, inputs and support.

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INDEX __________________

1. Scope of work

2. OPTIONS for WASA-G’s corporatization (Task -1) 3. WASA-G Corporate Statute (Task-2) 4. Rules and Regulations for efficient running of WASA-G (Task-3) 5. Road Map for implementation (Task-4)

6. Key legislative and policy WSS guidelines

(to be followed by all the model, if possible)- Annex A

7. Review of the regulatory legal framework – Annex B

8. Interviews conducted on LC’s visit to WASA-G at Gujranwala. Annex C

9. Photos of LC’s visit.

Annex D

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Scope of work Under the TORs, the LC is to provide input to the identification and analysis of options for WASA-G corporatization. The LC started keeping in mind the guiding aspects given in the TORs namely: the legal structures into which WASA-G fits, the role of the District of Gujranwala and the Government of Punjab, shareholders, initial capital, geographical jurisdiction, governance body, oversight and accountability and status of employees. LC has considered the guiding principles and the Proposed Institutional Framework provided in Annex 1 and 2 of the TORs, respectively. The options for corporatization have been developed in a gradual step-up format. The models mature with time and experience, starting with the most practical Model-1, carrying least legislative amendments and slowly moving up the scale by providing an ideal model for WSS in Punjab i.e., Model-6.

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OPTIONS FOR WASA-G CORPORATIZATION

Existing legal framework

WASA-G is an agency2 established by the Authority under the Punjab Development of Cities Act, 1976 (“PDCA”)3 to “carry out functions of the Authority in relation to development, operation, and maintenance of water supply, sewerage and drainage system within the boundaries of GDA and to carry out all functions ancillary hereto.4”

Authority means the development authority i.e, Gujranwala Development Authority (“GDA”) created under PDCA5. One of the functions6 of the Authority is to establish an agency or agencies and entrust7 to it such powers and functions as it may deem fit with the approval of the Government8.

The functions of water supply, sewerage and drainage have been “entrusted” to WASA-G, an Agency of the Authority under the PDCA. There is no further detail in PDCA regarding the legal structure of the Agency 9. WASA-G is, therefore, no more than a wing or department of the Authority entrusted with a specific function of water supply, sewerage and drainage and matters ancillary thereto and does not enjoy an autonomous

2 Section 2(a) The Punjab Development of Cities Act, 1976 (Pb Act XIX of 1976)(“PCDA”) 3 vide notification (No.SO(p)6-1/97) dated 30-10-1997 w.e.f 1-11-1997 under section 7(2) of the PDCA. 4 The preamble to PDCA, inter alia, states that “..in order to improve the quality of life in the cities of the Punjab ..and to evolve policies ad programmes relating to improvement of …water supply, sewerage, drainage….” One of the functions4 of the Authority is to develop, operate and maintain water supply, sewerage and drainage system within the area.

5 Vide notification (No.SO (I&C)-HP&EP-2-12/89) dated 11-7-1989 under section 4(1) of PDCA. 6 Section 7(2)(xvi) of PCDA. 7 As opposed to delegation given under section 8. LDA Act, 1975 however has the power to delegate its powers, inter alia, to its Agency. 8 Section 2(h) – Government means Government of the Punjab. 9 Section 8 shows that the Authority cannot delegate its powers to the Agency, therefore the entrustment of the functions must be restricted to section 7 of PDCA.

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legal status. The Authority is therefore the service provider (through WASA-G) and the regulator.

The Authority is controlled and managed by a mix of City District Government and the Provincial Government. Through out the law, the powers and functions (or the autonomy) of the Authority is checked by the Provincial Government or /and the City District Government. The Authority has to operate either with the approval or the permission of the two governments.

The balance of power between the two governments is more than obvious in PDCA. The Authority is established by the Government for a City.10 The Authority consists of the Zila Nazim as the Chairman (meetings to be presided by the chairman11) and other representatives of the local governments and the Provincial Government. Membership of the Authority can be altered by the Zila Council with the approval of the Government. The Government may designate one or more members of the Authority as Vice Chairman.12

Interestingly no planning or development scheme can be prepared by the local government within the area of the Authority, except with the concurrence of the Authority.13 Further, the Authority can give direction to Government14 Agencies to execute the scheme, if falling within the jurisdiction of the government agency15. Perhaps this sharing of power between the two governments is to satisfy the requirement of section 36 of the PLGO.

Officers of the Authority are public servants16 and appointed by the Authority. WASA-G being a mere agency inherits the same officers. It is not clear if WASA-G can appoint its own officers. It is not clear who appoints the Managing Director (MD) of WASA-G. However, read with sections 7 and 8 of the PDCA, it can be said that the Authority appoints the

10 Section 4 of PDCA. 11 Section 6(2) of PDCA. 12 Section 4(8) of PDCA. 13 section 12(5) 14 section2 (i): Government Agency includes a local government as defined under the PLGO. 15 Section 14. 16 Section 40.

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MD17 and all the other officers, perhaps with the approval of the Government.18

PDCA is largely quiet on accountability of the Authority or its Agency(ies) by the Authority, except where the Authority is to act and be guided by such directions as Government may give from time to time19. There appear to be no parameters or guidelines for the monitoring of the Authority by the two Governments or by the Authority to monitor the agencies (e.g. WASA-G).

The Authority cannot borrow local or foreign funds without the approval of the Government. The Authority may in consultation with the Finance Department, Government of the Punjab, borrow money by issuing bonds or debenture.20

The Authority Fund is to vest in the Authority and shall be utilized by the Authority in connection with its functions.21 Authority Fund shall be credited by, inter alia, all moneys received from Government and by all the rates, fees and charges collected by the Authority (rates and charges collected by WASA-G are assumed to go to this Fund, as WASA-G does not have a separate autonomous entity or any legislative support for a separate account.

The Authority Fund shall have two heads, one being “Water Supply and Sanitation.” In case of deficit revenue of the Authority, the City District Government shall provide from its own revenue for the efficient performance of the functions of the Authority22.

The Authority with the previous consent of the City District Government and the Provincial Government raise funds through imposing rates, fees and other charges23. Therefore, the tariff is regulated by the consent of the two governments.

17 MD WASA-G informed the LC that MD is a grade 20 officer and can hire and fire grade 18 and lower officers. Recruitment is through Departmental Recruitment Authority comprising: the MD, Director Finance, Director Engineering, rep of HUD (Prov Gov) and 1 rep of Finance Dept (Prov Gov). Removal is in accordance with the Provincial Government Rules for Removal. 18 Section 7(2)(xvi). 19 Section 16. 20 section 21 of the PDCA. 21 Section 26 of PDCA. 22 Section 26(5) of PDCA. 23 Section 27

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The Authority shall prepare an annual budget statement for the next financial year showing the estimated receipts and expenditure of the Authority and its agencies and shall submit the same through the City District Government to the Zila Council for approval24. The accounts of the Authority and each of its agencies shall be audited annually25.

Analysis of the existing legal framework

Under the PDCA, it is the Authority which is empowered to perform all the functions under the law. One of its powers is to entrust some functions to an agency established by the Authority. WASA-G, is is such an agency, established by the Authority for the development, operation and maintenance of water supply, sewerage and drainage system26. So WASA-G is no more than a subordinate wing of the Authority having no autonomy under PDCA. The Authority under the law is empowered to do the planning and development, manage the Authority Fund, borrow money, appoint employees and impose rates, fees and charges with the permission of the two governments.

Further, the Authority is firmly tied under the two governments and does not enjoy financial or operational autonomy. WASA-G being a mere agency, falls under the inefficient structure of the Authority.

Lack of performance by WASA-G is but obvious. It is a suffocating small lowly sub-wing of the Authority, an Authority which is weak and dependant on two sets of governments and its bureaucracy, for money, human resource and operations.

It is important to point out that LDA Act, 1975 (“LDAA”) has made a slight departure and made some additional provisioning for the agency under the Authority. Under LDAA, the MD is appointed by the Government with a fixed tenure and the power of delegation include an agency. These addition do not go far in improving the state of affairs and are, with respect, merely cosmetic in the scheme of things.

24 section 30 25 section 31 26 Under a Notification dated 30-10-1997 under section7(2) of PDCA.

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On the other hand under PLGO “municipal services” include water supply and sanitation.27 PLGO override other laws for the time being in force.28 In a city district all the organizations and authorities providing municipal services are brought under the financial and administrative control of the City District Government (GDA here).29 Tehsil Municipal Administration and by Town Municipal Administration have been under the law entrusted with the function of providing water supply, sewage, sewage treatment and disposal. 30 Tehsil MA can also set up a corporate body to perform any of its functions, singly or jointly with other public or private bodies. Provided that the responsibility for discharge of functions shall continue to vest in the TMA. Under section 51 of the PLGO this function is also available to a Town Municipal Administration. Section 182(3) of the PLGO also makes this clear.

Water supply and sanitation being a municipal service entrusted to the TMAs under the PLGO stand uncomfortably when under the PDCA the same function has been entrusted by the Authority to an Agency called WASA-G. However, PDCA does not offend PLGO in fact it reconciles with section 36 of the PLGO. Sections 4, 12(5), 14, 15, 18, 26(5), 27 of PDCA show that the Authority and the Agency are under the financial and administrative control of the City District Government and at the same time the Authority has been through subsequent amendments (subsequent to PLGO, 2001) in the PDCA also brought some provisions of the PDCA to prevail over PLGO.

Key concerns

It was therefore not surprising when MD WASA31 and his management team pointed out reasons for poor and inefficient performance of WASA-G;

a. lack of operational autonomy. Constant political and bureaucratic interference.

b. Lack of financial autonomy (not smooth flow of funds) c. Inability to hire and fire employees.

27 Section 2(xxii) of the PLGO. 28 Section 3 ibid. 29 section 36 ibid. 30 sections 54 and 54-A ibid. 31 Mr. Tahir Mehmood, MD, WASA-G – see interviews in Schedule A.

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On the whole it appears that WASA-G suffers from the following:

1. Lack of Autonomy- financial, operational and planning. 2. WASA-G at the lowest rung of the structure- under GDA, Local

Government and the Provincial Government. Ideal victim of political interference.

3. No accountability.

Way ahead

Under the law and the TORs, it is clear that the delivery of water supply and sanitation service is in two boats. While the PLGO entrusts this civic duty to the TMAs, PDCA operating in parallel allows, its agency WASA-G to deliver the said services. PLGO extends all over the Province including the cities and districts, therefore the jurisdiction of PDCA is subsumed by the all embracing PLGO. PLGO having an overriding effect on the laws in force32 leaves little margin to argue that PDCA can still hold the field. The answer to this blatant conflict s given by the PLGO itself. It appears that for political or economic reasons, organizations and authorities delivering municipal services were brought under the financial and administrative control of the City District Government, impliedly allowing these authorities to continue their operations.

Failure to abolish the development authorities has injected confusion in the provincial landscape regarding delivery of services. However, with time PLGA and PDCA have come to co-exist and have demarcated their operational boundaries. Keeping aside the unease in the legal architecture of the two conflicting authorities (TMAs and WASA-G) this report proceeds with options for corporatization of WASA-G assuming that PLGO and PDCA have come to be happy bedfellows.

Options and new designs for WASA-G

1. political inteference to be minimized 2. smooth flow of funds 3. hire and fire

32 section 3 of the PLGO.

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Keeping in view the guiding principles as per Annex 1 to the TORs

a. operational autonomy b. financial autonomy c. accountability to GoPunjab, District and customers. d. Aggregation – WASA-G to cover the entire district. e. Province wide regulator f. Human resource policies- wasa to employ top level utility

management and staff g. Consumer service h. Procurement i. Market support- ability to bring private sector expertise and financial

resource in support of WASA-G management and operation.

And considering the following parameters (listed in the TORs)

1. legal structures into which WASA-G fits 2. initial capital (ownership) 3. geographical jurisdiction 4. governance structure 5. oversight and accountability 6. status of employees

The Options or Models discussed at length hereunder provide the over all legal and conceptual structure which enables WASA-G to become an efficient and smart service provider and as a result the delivery of water supply and sanitation services to the customers is improved and sustained.

The models provide for a Service Provider and a Regulator or an authority that oversees and monitors the performance of the Service Provider. The models present different permutations and combinations amongst the two governments and service provider. Some of the important functions of regulator and a service provider, not available in the existing law, are discussed in model no.1 for clarity and better understanding but have not been repeated in discussing other models to avoid repetition.

OPTIONS/ MODELS

In view of the provincial laws discussed above. The mdoels have been carved out with the following themes. The order of the models shows the

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incremental and gradual maturity and development of the models. It starts with the most rudimentary and practical model right under the PDCA and then slowly blooms into the final model of a Provincial Utility Commission controlling municipal companies be they public or private.

1. Remodelled WASA-G under the PDCA. (two models) 2. Corporatizing WSS under PLGO (three models) 3. New Legislation for a simple Water and a Sanitation Authority with a

regulator. 4. Developing a proper Water Supply, Sanitation and Water Resource

Authority or Public Utiltity Commission (two models).

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MODEL-1

Under the PDCA

(initial phase)

Keeping in view the compatibility and successful co-existence of PDCA and PLGO. It is easier, as an initial step, to remodel WASA-G within the PDCA framework, with minimum legislative amendments and without disturbing or offending PLGO.

Figure -1

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Design Summary

By amending PDCA, the existing Authority executes its mandate to carry out a “comprehensive system of planning and development in order to improve the quality of life in the cities of the Punjab and to evolve policies and programmes for the improvement of housing, industrial development, traffic, transportation, health, education, water supply, sewerage, drainage, solid waste disposal and matters connected thereto”33 through specialized and autonomous agencies run and managed by professional team of experts. It is mandatory for the Authority to establish Agencies for the execution of its work. The service providing functions of the Authority shall now be the functions of the Agency and the Authority shall limit itself to planning and regulation only.

The existing ineffective agencies are re-energized and re-modeled by becoming autonomous service providers run and managed by a tem of independent experts in the field.

The new structure looks as follows:

Provincial Government and City District Government

PDCA requires the approval and prior consent of both the government in several matters. It is, therefore, proposed to have a Committee set up in the housing department of the Provincial Government having representation from the City Government for focused, effective and speedy governance of the new WSS utility structure. PDCA will provide for the setting up of the said Committee for effective execution of PDCA. The Committee provides the requisite regulation over the Authority and the Agencies, in particular the WSS Agency.

Functions of the Committee

The Committee shall provide oversight and accountability, expedite and facilitate funding from the Provincial Government for the Agency, allow Tariff Adjustment, approve Strategic Development Plans, etc. All the functions and its procedures will be provided for in detail in the Rules

33 Preamble to PDCA.

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framed by the Provincial Government to avoid discretion and adhoc policies of changing governments.

Rules under PDCA:

a. Biannual Oversight and Monitoring Rules. Providing for accountability, and performance evaluation of the Authority and the Agencies on the basis of bench marks and key performance indicators biannually. These Rules oversee, quality of service (including: continuity, efficiency, safety) and indiscriminate accessibility of water for everyone.

b. Financial and Strategic Development Investment Plan Rules. These Rules help expedite funds from the finance department of the Provincial Government to the Authority and Agencies without following the existing cumbersome procedures in place after approving the Strategic Development Investment Plan.

c. Tariff Adjustment and Business Plan Rules. This will provide mechanism for approval of business strategy and tariff adjustments. The Rules may provision for life-line tariff, gradual step up tariff slabs and classification of consumers, etc.

d. Human Resource Rules. The appointment process, qualifications, tenure and the removal mechanism of the DG of the Authority and CEOs of the Agencies. Allowing Authority and Agencies to appoint their own staff on contract on market based salaries.

Authority

composition

The Authority shall be established by the Provincial Government and shall have appropriate representation of the Provincial and Local Government. The Authority can also have a representation of the local community (optional). The Authority as it is now, shall also include the CEOs of the Agencies.

Objective

The new Authority is primarily to act as an apex planning, development, coordination and regulatory authority for the City. It is no more a Service

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Provider, which role is now assumed by the Agencies established by the Authority.

Functions of the Authority:

1. The Authority shall execute its function in accordance with the following new Regulations34

a. Regular Performance Evaluation of the Agencies- KPIs etc.

b. Human Resource. Appointment of the CEO of the Agency and approval to the appointment of the top management selected by the CEO. Qualifications and experience of the CEO and the top management. Procedure of selection and approval. Procedure for removal of the CEO – unless proved guilty by the Ombudsman.

c. Parameters for the approval of the Strategic Development Plan

and Budget Statement of the Agency and its timely approval from the Provincial Government (assuming that WSS Agency will be financially dependent on Provincial Government for a couple of years) or the Local Government.

d. Tariff Adjustment guidelines for the Agencies.

e. Rules of Business of the Authority. Coordination of the

agencies. AGENCY

Authority can as provided under the law establish more than one agency for execution f its functions. The Authority has the flexibility to establish more than one WSS Agency for different specified areas within the City.

Salient features of the Agency are:

1. Agency to be a body corporate. 2. Agency to mean CEO and the Top Management (4 or 5 members).

34 Under section 43 by the Government.

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3. CEO to be appointed by the Provincial Government (details in Human Resource Rules)

4. Members of the top management to be selected by the CEO and approved by the Authority (as per Regulation).

5. All staff other than the top management to be selected and appointed by the Agency.

6. Preparation of the Strategic Development Plan and the Budget Statement to be presented to the Authority for release of annual funds. (as per guidelines framed under the Regulations)

7. Preparation of tariff adjustment proposal for the approval of the Provincial Government (as per tariff adjustment regulations).

8. Agency can frame its own Bye Laws to effectively manage its functions.

Other Features

9. PDCA to provide offences and penalties for violating the law. Disconnection upon non payment, etc

10. Ombudsman to be set up under the PDCA to be appointed by the Provincial Government with the approval of the Lahore High Court. Ombudsman Rules can provide the procedures for dispute and complaint settlement by the Ombudsman.

11. Water Courts. The law to empower local courts to enjoy jurisdiction over the offences under PDCA.

CONCLUSION Pros 1. Easy to operationalize as an initial model to improve WSS. 2. City Specific legislation. 3. Authority turned into a separate planning Authority. 4. Agencies made autonomous and independent corporate entities. 5. Agencies fire-walled against political interference by having secure

tenure for the CEO and top management. Cons

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1. Committee is not a long term answer. Need a more institutional arrangement at the Provincial Level like a Public Utility Commission

2. Does not allow private investment or private sector service providers to come in.

3. Requires substantial investment from the Government. Private sector not tapped.

4. In a technical legal sense, it is in conflict with TMAs and can be a problem some day.

5. Does not address the issue of integrality i.e., water resource management, solid waste and urban storm water drainage.

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MODEL-2

Under the PDCA

Figure-2

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Summary

There is a variation in Model-1 above. The Agencies are taken out and the Provincial Government can establish more than one Authority for the City or the specified area.

Authority under this Model is a Service Provider and the Regulation is provided by the Committee. A two tier model instead of a three tier model presented above. This lessens bureaucracy but burdens the Service Provider

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with the function of planning which was left to the Authority in the earlier model.

One such Authority can, therefore, be for Water Supply and Sanitation Services, called the WSS Authority.

The amendments are to design a new efficient and smart Authority with an overseeing Committee.

Committee

The Committee can be housed in the Housing Department of the Provincial Government with adequate representation from the City District Government to oversee the working of the Authorities on the basis of defined benchmarks and performance indicators sanctioned in the law and laid out in detail in the Rules.

The Committee shall appoint the CEO on the basis of the Human Resource Rules and approve the selection of the other members of the management team.

Authority

1. Provincial Government to establish a WSS Authority under PDCA. 2. Authority to be a body corporate 3. Run and managed by a CEO and his management team. 4. Provincial Government shall frame detailed Rules;

a. Biannual Oversight and Monitoring Rules. Providing for accountability, and performance evaluation of the Authority and the Agencies on the basis of bench marks and key performance indicators biannually. These Rules oversee, quality of service (including: continuity, efficiency, safety) and indiscriminate accessibility of water for everyone.

b. Financial and Strategic Development Investment Plan Rules. These Rules help expedite funds from the finance department of the Provincial Government to the Authority and Agencies without following the existing cumbersome procedures in place after approving the Strategic Development Investment Plan.

c. Tariff Adjustment and Business Plan Rules. This will provide mechanism for approval of business strategy and tariff

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adjustments. The Rules may provision for life-line tariff, gradual step up tariff slabs and classification of consumers, etc.

d. Human Resource Rules. The appointment process, qualifications, tenure and the removal mechanism of the DG of the Authority and CEOs of the Agencies. Allowing Authority and Agencies to appoint their own staff on contract on market based salaries.

Other features.

Ombudsman and Water Courts as discussed above.

CONCLUSION

1. Under the PDCA.

2. Two Tier Structure- less hassle.

1. Authority being a service provide lacks planning skills

2. No holistic city planning authority

3. Committee not a long term answer

4. No window for private sector initiate.

5. Committees capacity to regulate different Authorities is questionable. Model -1 provides an Authority that does this function.

6. Bi annual accountability and vigilance by the Committee.

7. Funding to various authorities might be difficult.

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MODEL-3

New legislation

repealing PLGO or PDCA to the extent of WSS

Figure-3

____________________________________________________________________________ proposed GUJRANWALA WATER SUPPLY AND SANITATION AUTHORITY ACT, 2008

VISION

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To establish a Gujranwala Water Supply and Sanitation Services Authority to provide safe drinking water, efficient and equitable water supply and sustainable sanitation services for the people of Gujranwala.

AUTHORITY

1. The Provincial Government shall under the Act constitute a Water Supply and Sanitation Services Authority (WSSSA).35

2. The Authority shall be a body corporate. 3. The Provincial Government shall specify the geographical jurisdiction of

the service area of the Authority along with the controlled area for future development.

4. Authority shall consist of:

a. CEO b. Management Team (four members)

5. CEO and the four directors shall be appointed by the Provincial Government in accordance with the qualifications and guidelines provided in the Rules under the Act.

6. CEO and the four directors shall be appointed for a secured tenure of 3 to 5 years and shall only be removed or suspended in accordance with this Act.

7. Removal or Suspension of CEO or the Director.

o The CEO or Director (Officers) shall not be removed from service except by the Provincial Government on the following grounds:

If there is proven misconduct against the said Officer.

35 Water is a Provincial subject falling in the residuary list.

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If the performance of the CEO or the Director is consistently below the Key Performance Indicators set out in the Rules;

o Removal under this Act shall not be without affording due

hearing to the CEO or the Director.

o During the pendency of the Removal proceedings the CEO and the Director shall continue to hold their office.

o The CEO or Director may be suspended in special cases,

where there is serious allegation of misconduct against the Officers by the Provincial Government against the officer.

b) POWERS AND FUNCTIONS OF THE AUTHORITY

o Human Resource

The Authority shall prepare a Human Resource Plan for the Authority.

Authority shall have the powers to appoint staff and employees of the Authority on contractual basis.

The staff and employees shall be on market based salaries duly approved by the Provincial Government.

The terms and conditions of the employees shall be governed by the contract of appointment and shall be regulated in accordance with the Rules framed by the Authority in this regard.

The Authority shall have the power to appoint and terminate the services of the employees and the staff.

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The staff and employees of the Authority shall not be civil servants.

o Strategic Development Plan

Shall prepare a Three Year Strategic Development Plan.

The Plan shall be submitted to the Provincial Government for approval and lumpsum annual disbursement of funds.

The Plan shall endeavour to incorporate the National Drinking Policy, National Water Policy, National Sanitation Policy and Punjab Urban Water and Sanitation Policy

In addition, the Authority shall from time to time set out in the Rules, goals and guidelines for formulating the Three Year Strategic Development Plan.

o Audit

The accounts of the Authority shall be audited annually.

There shall be a government audit and an external audit.

Both the Audits shall be done annually and shall be completed by August after the close of the financial year.

o Charges and Collection

The Authority shall have the power to collect charges/fees for water supply, sanitation services, acquifer use, any other fee or charges as per the rates (tariff) fixed by the Provincial Government.

The Authority shall have the power to recover arrears through water magistrates to be appointed under this Act.

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c) FUND

Authority shall maintain a Fund called the Water Supply and Sanitation Fund. All moneys in the Fund shall vest in the Authority.

The Fund shall comprise of all moneys received from the Provincial Government, grants and loans made by the Government (Federal and Provincial Government). All moneys received from international agency by way of grants, loans, advances or otherwise.

All moneys collected by the Authority as water supply, Sanitation Service charges and other charges.

The Authority shall utilize moneys from the Fund for effective and timely implementation of the Three Year Strategic Development Plan.

d) PROVINCIAL GOVERNMENT

The Provincial Government shall oversee and monitor the working of the Authority according to KPIs settled in the Rules;

The Provincial Government shall review and may grant approval of the Three Year Strategic Development Plan after detailed scrutiny of the Plan.

The Provincial Government shall ensure that funds for the annual budget be released to the Authority;

The Provincial Government shall fix tariff for water supply, sanitation services, acquifer and other charges. Tariff shall be fixed on the basis of usage and user classification.

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Provincial Government for the purpose of this Act shall mean the Housing Department or any other department that the Provincial Government may notify.

Provincial Government may constitute a special purpose committee within the Housing Department or any other department, to effectively oversee and monitor the Authority under the Act and Rules framed thereunder.

e) RULES

o The Authority shall make Rules for efficient working of the Authority and to carry forward the functions and powers of the Authority under the Act.

o The Rules shall, inter alia, provide for:

Human resource plan and terms of service of the contractual officers, staff and employees.

Financial and Budgetary Rules;

Goals and Guidelines for formulating the Three Year Strategic Development Plan.

Rules of Business. The SOP for the Authority

Performance Key Indicators.

f) MISCELLANEOUS

o The Authority shall endeavour to provide the following in the Three Year Strategic Development Plan:

Metering

Water treatment for safe drinking water

Waster water treatment

Data collection of classification of users and the allocation of water supply.

Control over the groundwater

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Awareness schemes

g) REPEAL o This Act shall repeal Development of Cities Act, 1976 to the

extent of WASA-G and the provisions provided under this law.

h) MANUAL

The Act and the Rules shall be kept as a compendium for ready use and consultation and shall be referred to as the WSS Manual.

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MODEL-4

Municipal Companies under the PLGO

Without legislation36

Figure-4

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Summary

36 There shall be subordinate legislation in the shape of Rules and Bye Laws under the PLGO.

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Under the PLGO37, TMAs have the power to set up a corporate body to perform any of its functions, singly or jointly with other public or private bodies.

TMA or a consortium of TMAs or City District Government on behalf of TMAs38 can set up a private company39 under the Companies Ordinance, 1984 with the specific object of water supply and sanitation services for the area. The sole owner being the TMA(s). The TMAs can also partner or enter into joint venture with private companies that can help raise capital and introduce better governance strategies. However, the character of the company or the municipal company remains public, with majority shares held by the public authority i.e., TMAs.

There can be more than one company incorporated by the TMAs in the district with their own specified areas. Various TMAs within the district can also float separate companies in their areas. More than one company or service provider generates healthy competition and incentivizes efficiency and performance.

Company

Company or companies can be incorporated as a private company wholly owned by the TMAs. The companies can start with a minimum share capital and initially rely on grants by the Provincial Government or the Local Government.

Company simpliciter operating under the TMAs and PLGO will be no better than the existing WASA-G. The political interference by the elected representatives of the local government, the bureaucracy and the dependence on the funding mechanism of the Provincial Government the and the human resource of the Local Government will not make any difference.

Rules framed by the Provincial Government

Under PLGO the Government can make Rules and the concerned Councils can make Bye Laws. Rules can be framed to lay down the following:

37 Section 54 and 54-A read with section 51 of the PLGO. 38 Not so clear under the PLGO. 39 Other corporate bodies could be a charitable company, a guarantee company, a cooperative society or a society under the societies registration act, 1860 (it is not certain if the society under the 1860 law is a body corporate). Company being the most efficient other options are not discussed.

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a. qualification of the board members of the Company.

b. qualification and selection procedure of the CEO for the Company.

c. qualifications and selection process and approval of the Management team selected by the CEO.

d. Tenure of the CEO being three years under the Company law can be fixed as three years under the Rules as well. The grounds of removal can be laid down, even though under the company law the CEO can be removed by a special resolution or if 75% of the board members vote against the CEO. The Rules can add to this process by providing for an inquiry and unless proved guilty requirement to be built in. The inquiry can be made by an independent person or panel jointly nominated by the two governments.

e. CEO and the Management to be contractual employees with market based salaries and financial incentives/rewards for better performance.

f. CEO to have the powers to make decisions and prepare the strategic development plan and budget with the help of his team. The same be presented to the Provincial Government for approval. The Rules to provide the appropriate bench marks for release of annual funding.

g. Tariff adjustment plan and approval by the Local Government can be provided in the Rules.

h. Performance evaluation procedure for monitoring and regulating the Company. The Rules can set up a committee within the TMAs to regulate the affairs of the company.

i. Moneys received to go to the Local Fund of TMAs.

Bye Laws framed by the Company (or TMAs for the Company)

The company can have Bye-laws in addition to the Articles of Association for better regulatory regime. Bye Laws framed by TMAs can provide for:

a. Human Resource Plan. The service rules for the officers. Their terms of appointment and removal. All employees to be appointed by the Company on contract on the basis of skill and expertise.

b. Strategic Development Plan or Investment Plan. Provide guidelines for the preparation of these plans.

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c. Budget Statement Rules

d. Tariff Adjustment Proposal Rules

e. Internal performance evaluation Rules

Variation

Another variation can be to have a GUARANTEE COMPANY instead of a share capital company. As TMAs will not be shareholders there interference will be minimum under this variation.

CONCLUSION

1. Under the PLGO – the actual authority to deliver WSS.

2. Down at Town and Tehsil level- better delivery- better understanding of the issues and concerns.

3. Closer to customers. Complaints can be lodged with the TMAs.

4. Joint Venture with Private companies can take place and revenue and better human resource can be employed.

1. The whole structure depends on Rules made by the Provincial Government (major financier)

2. No independent regulator.

3. No law that provides for an Ombudsman or courts for recovery.

4. Need legislation to create offences and penalties.

5. Not clear if all the Rules find a legislative support in the main law (i.e., PLGO).

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MODEL -5

Municipal Company plus

With legislation

Figure-5

______________________________________________________________________

Summary

Model -3 can have a legislative cover. A new Provincial Regulator to be established either under the PLGO framework or through separate legislation.

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Constitution of the Regulator is important as it has to withstand the pressures and possible interference from the two governments.

Provincial Regulator or Commission

Provincial Regulator or Commission can be designed to have a large representation of the non-governmental sector and minority representation by the two governments. This will maintain the arms length distance from the Service Provider, the owner and the financier.

Company under the Regulator

As in Model-4, a company is incorporated by the TMAs but this time it gets registered with a Provincial Regulator and operates under a License. Developing a Provincial Regulator does not offend PLGO as long as the service provider is the TMA through the Company.

The new legislation while establishing a Commission will also set out the functions of the Commission and the terms and conditions of a WSS License.

Functions of the Commission

1. To regulate the WSS Companies.

2. To review the Strategic Development Plans of the company for the next three to five years and seek timely approval for the same from the Provincial Government. In case the company is not dependent on Provincial Funding, the Commission shall review the Plan and make suggestions before approval.

3. Review the Tariff Adjustment Proposals and get approvals from the Governments.

4. To ensure that Human resource employed is technical and skilled.

5. To act as a complaint cell for the TMAs, as well as, the customers.

6. New legislation to create WSS offences and penalties.

7. The new legislation can also empower local courts to act as water courts for recovery of bills and for taking action against any violation of the license and the Rules.

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8. The above can be incorporated in the License issued by the Commission to the Company.

9. Amendments in the PLGO can allow private companies to deliver WSS only they are duly registered with the Commission and submit financial guarantees and rental for the lease assets of the TMAs, if any.

Rules Rules can still be framed under the PLGO by the Provincial Government to regulate the company as discussed under Model-3. Other features;

1. Only companies registered with the Commission can deliver WSS. 2. Companies to be public companies with majority shareholding with

the public authorities.

CONCLUSION Pros 1. Separate Independent Regulator/commission to oversee the

service delivery 2. Commission and the License have statutory force more effective

than the Rules. 3. Water Courts can be established. 4. Dispute and Complaint cell provided in the Commission. 5. More competition between the companies. 6. Can approve the interested joint venture private companies Con 1. Lacks integrality. The Public Utility Commission must have a

larger focus. It must attend to water resource management, must coordinate with Development Authorities, provide for waster supply, sanitation, solid waste disposal and storm water drainage.

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MODEL-6

New legislation

Amending and repealing PLGO and PDCA40 to the extent of WSS

Exhaustive version

Proposed PUNJAB WATER RESOURCE PROTECTION, WATER SUPPLY AND SANITATION SERVICES

Figure-6

40 And some other provincial laws like WAPDA Act, 1958, etc.

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______________________________________________________________________ OBJECTIVE OF THE LAW To provide for the protection and conservation of the freshwater resource, declare groundwater a common public resource governed by public trust doctrine. To provide for water rights and equitable distribution of water. To facilitate and ensure judicious, equitable and sustainable management, allocation, pricing and utilization of water resources, sanitation services and drainage system. To build a water supply and sanitation service infrastructure that is autonomous, efficient, safe and hygienic and environmentally sustainable. To fix tariff for various categories of users of water INSTITUTIONAL DESIGN

1. Water and Sanitation Authority (at the Provincial Level) 2. Water Supply and Sanitation Services Corporations (for every city or

notified area, more than one in one city) 3. Corporation spearheaded by a CEO or MD 4. Community based Advisory Board to assist the CEO/management

(optional) 5. Independent Selection Committee (at the Provincial Level) 6. Water Ombudsman and Water Magistrates /Courts.

WATER AND SANITATION AUTHORITY

1. Five Members

2. Qualification of members given in the law: a. (senior civil servant, water resource expert, economist,

environmentalist, entrepreneur, academia, law, etc.

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b. having adequate knowledge, experience, or proved capacity in resolving and dealing with issues relating to engineering, agriculture, water, industry, law , economics, commerce, finance, or management.

c. Members selected by the Selection Committee.

d. First three years – the Authority shall be a Technical

Committee housed within the Housing Department.

e. Constitution of the Technical Committee shall be decided by the Selection Committee

Powers and functions

1. Water Governance

2. Policy making- an integrated provincial plan and strategy for water conservation, water supply and improved sanitation services.

3. Data collection for the entire Province.

4. Principal approving authority for future planning and development, EIA, IEE of any project, industrial development, financial institution funding a development or industrial project.

5. Setting of water and sanitation tariff.

6. Monitoring performance of the Water Supply and Sanitation Corporations and their CEOs or MDs according to well laid out performance indicators in the law.

7. Approve, facilitate and ensure regular and smooth funding to the corporations from the Provincial Government.

8. Develop budgetary and performance benchmarks for release of funds

9. Ensure freshwater resource sustainability and protection b taking measures against environmental pollution, illegal extraction, unfair allocation or against any threat to the water resource.

10. Conservation – encourage and ensure rain water harvesting, recycling, sewage treatment, classification of water and integrate the same into development and planning.

11. Develop a culture of water planning.

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12. Setting up water supply and sanitation services corporations in notified areas.

13. Determination and allocation of water supply to various sectors i.e., household, industrial, commercial, educational, entertainment, gardening and horticulture on equitable and sustainable basis.

14. monitor and regulate/prohibit alternate water vendors (private tankers, bottled water)

15. Laying down drinking water and water supply and sanitation standards

16. Financial incentives for the Corporations and their Management based on performance

WATER SUPPLY AND SANITATION CORPORATION (WSSC)

a. A statutory body created under the Act by the Authority. b. An autonomous corporate entity. c. With specified area of jurisdiction – notified or service area

with jurisdiction and powers over an additional area around the notified area called the controlled or command area for future development.

d. Management spearheaded by a CEO to be appointed by the Selection Committee on contractual basis on market salary.

e. Management to be appointed by the Authority after consultation with the CEO – he must own the team.

f. Staff to be employed by the corporation- CEO solely to be the competent authority for the purposes of hiring and firing. Staff not to be civil servants. Have a right to move a grievance petition before the Advisory Board.

g. CEO shall have to meet the Key Performance targets as laid down in the law and shall be accountable to the Authority and to the Advisory Board.

h. CEO to have a secure tenure of three or five years and can be removed only on the grounds mentioned in the law. No margin for political interference.

i. CEO cannot work in any government organization for three years after his retirement or termination.

j. CEO cannot be terminated unless there is proven misconduct after investigation done by the Selection Committee.

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k. CEO shall be assisted by a Advisory Board comprising key stakeholders, water experts and consumers and not more than five members.

l. Members of the Advisory Board shall also be selected by the Selection Committee.

m. Advisory Board shall assist the CEO /management through recommendations through resolutions passed by simple majority.

n. Resolution of the Advisory Board passed by 2/3rd majority shall be binding on the CEO.

Powers and Functions

1. Classification of water- potable and recycled 2. Assessment of sectors and their need- household, commercial,

industrial, educational, gardening, etc 3. Equitable allocation of water supply 4. Data collection – assessment of the water resource available 5. Provide Drinking Water and Water for other purposes. 6. Sanitation services 7. Treatment of sewerage and recycling 8. Timely collection of bills 9. Registration of wells/ pumps, etc 10. Following the water and sanitation standards 11. Power to enter, search and investigate any illegal use of water

resource 12. Metering of water connections.

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Corporate Statutes and Rules

1. The six different corporatization models were shared with Urban Unit in August, 2008.

2. Urban Unit through their email dated 27-02-2009 confirmed that they wish to move ahead with corporatizing WASA-G by converting it into an Authority under Punjab Development of Cities Act, 1976 (“PDCA”).

3. A detailed meeting was held with UU, after discussion with the Bank, on 12-3-2009 to finalize the corporate design and details. Minutes of the said meeting show that UU required that no amendments be made to PDCA in creating a parallel Water and Sanitation Authority (it was assumed at by UU at the meeting that under PDCA more than one Authority could be created) and the new Water and Sanitation Authority be regulated through Rules, formulated under PDCA, to address the key areas of concern haunting WASA-G today. UU wanted a fast track solution and therefore desired that the corporate structure of WASA-G to come through a notification under the existing PDCA and the remaining regulation of the new WASA-G though Rules to be framed by the Provincial Government. (Minutes of the meeting are at Annex D)

4. That after further review, LC informed UU on 13-3-2009 that PDCA does not allow for the establishment of another Authority unless PDCA is appropriately amended. UU had earlier argued that PHA41 created for the city of Lahore under the PDCA is a persuasive precedent. It was pointed out to UU that the Development Authority under PDCA is city specific. PHA for Lahore under PDCA has been apparently established because there is no other Authority for Lahore under the PDCA, please note that LDA is established under the Lahore Development Authority Act, 1975. However, on another score, LC is of the view that PHA falls short of a development authority as envisaged under the PDCA and therefore, is unlawfully established under the PDCA.

41 Parks & Horticulture Authority (PHA).

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5. On the basis of the above legal input, the Bank and the UU suggested

to propose possible amendments to PDCA and proceed further with the Rules.

6. Reports from IAs namely; Keith Stellard and Bill Kingdom and

FICHTNER were reviewed in order to develop the under-mentioned Rules;

i. Human Resource and Performance Evaluation Rules

Rules to lay down a detailed structured process for appointment of top management (CEOs and Directors), their qualifications, expertise and required experience, security of tenure, removal mechanism linked with performance evaluation based on KPIs. Appointment and monitoring of all the employees in the new Authority including facility to appoint on contract and market based salaries.

ii. Strategic Development Plan and Financial Rules

Providing parameters for preparing a Strategic Development Plan and then submitting the same to the Provincial Government for quick and speedy disbursement of funds. To avoid and replace the existing financial procedures entailing developing PC-1, etc.

iii. Tariff Adjustment and Business Plan Rules

Rules laying down the mechanism to prepare a proposal for tariff adjustment and the manner and procedure for tariff adjustment by the PG. The same rules can mandate the new Authority to prepare annual business plans for effective operation and running of the Authority.

iv. Performance monitoring and oversight Rules Rules to effectively monitor and oversee the performance of te Authority on the basis of KPIs and the subsequent follow up actions. Developing the KPIs.

v. Procurement Rules Rules laying down a transparent procurement system.

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vi. Improving penalty provisions for recovery of arrears (not necessarily through Rules)

7. Despite the fact that drafting of the said Rules was not within the TORs of the LC, it was agreed with UU that upon receiving materials on the above areas, the LC will make an effort to develop the Rules. LC was assured by UU that there is plenty of support material available in this regard. However, no additional material was supplied to the LC except one incomplete draft note supposedly done by Keith Stellard. LC lacks expertise to develop the above mentioned Rules as their content falls outside his legal expertise. The international consultants have admitted that this area was also outside their TORs. In any case, effort has been made to develop skeleton Rules which can prompt future work in the area. (Kindly see emails in this regard – Annex E).

8. FINAL MODEL A new Water and Sanitation Authority has been created and established through amendments brought about in PDCA. The new Authority is therefore a statutory body under the Act of the provincial legislature. In order to plug the infirmities and weaknesses identified in the present WASA-G, Rules have been developed in key areas which specifically addresses these weaknesses and ensure a robust and a dynamic water and sanitation authority.

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9. Statutes

For the development of the above model, following statutes have been developed by the LC;

a. Corporatization of WASA-G through amendment in PDCA to

provide for a new Water and Sanitation Authority, parallel to GDA.

b. Rules for the effective governance and monitoring of the new

Authority in the following area (as suggested by UU):

i. Human Resource and Performance Evaluation Rules ii. Strategic Development Plan and Financial Rules iii. Tariff Adjustment and Business Plan Rules iv. Performance monitoring and oversight Rules v. Procurement Rules

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c. Improving penalty provisions for recovery of dues/ arrears.

10. Amended PDCA

The Punjab Development of Cities (Amendment) Bill, 2009

A bill to further amend The Punjab Development of Cities Act, 1976 (Punjab Act, XIX of 1976) in order to provide for the establishment of more than one Authority for the development in the cities of Punjab and its functions thereof. Amendments have been reflected in RED in the main text of the law for better clarity and comprehension:

THE PUNJAB DEVELOPMENT OF CITIES ACT, 1976 (Pb Act XIX of 1976)

C O N T E N T S

SECTIONS CHAPTER I

PRELIMINARY 1. Short title, extent and commencement. 2. Definitions. 3. Declaration of any area to be a city and alteration of the limits

thereof. 4. Application of this Act and establishment of an Authority. 5. Disqualification of members. 6. Meetings.

CHAPTER II POWERS AND FUNCTIONS

OF THE AUTHORITY 7. Powers and functions of Authority. 8. Delegation. 9. Appointment of officers and employees. 10. Committees.

CHAPTER III DIRECTOR-GENERAL

11. Appointment and terms of office.

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CHAPTER IV PREPARATION AND

EXECUTION OF SCHEMES 12. Preparation of schemes. 13. Modification of schemes. 14. Power to give directions. 15. Power to execute any schemes.

CHAPTER V GENERAL

16. Directions by Government. 16-A. Transfer of functions, etc. 17. Controlled area. 18. Power to act as local council. 19. Power to remove sources of pollution. 20. Beautification. 21. Borrowing money. 22. Power to levy betterment fee. 23. Assessment of betterment fee.

CHAPTER VI ACQUISITION

24. Liability to acquisition. 25. Application of Act No. VIII of 1973.

CHAPTER VII FINANCE, ACCOUNTS AND AUDIT

26. Authority Fund. 27. Rates and fees. 28. Fees on tubewells. 29. Accounts. 30. Budget. 31. Audit.

CHAPTER VIII PENALTY AND PROCEDURE

32. Penalty and procedure. 33. Causing damage to property and disobedience of orders. 34. Cognizance of offence by courts.

CHAPTER IX MISCELLANEOUS

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35. Annual report. 36. Recovery of dues. 37. Conversion of property to a different use. 38. Summary ejectment of unauthorized occupants. 39. Removal of building etc. erected or used in contravention of this

Act. 40. Members, officers and employees to be public servants. 41. Immunity of the Authority and its employees. 42. Jurisdiction of courts barred. 43. Power to make rules. 44. Power to make regulations. 45. This Act to prevail over other laws. 46. Authority to replace the Improvement Trust.

CHAPTER X REPEAL

47. Repeal and savings. 48. Repeal of Pb. Ordinance No. XI of 1976.

THE PUNJAB DEVELOPMENT OF CITIES ACT, 1976 (Pb Act XIX of 1976)

(as amended under the Punjab Development of Cities (Amendment) Act, 2009)

[16 December 1976]

An Act to provide for the development of cities in the Punjab

Preamble.– WHEREAS it is expedient in the public interest to establish a comprehensive system of planning and development in order to improve the quality of life in the cities of the Punjab, establish an integrated development approach and a continuing process of planning and development, to ensure optimum utilization of resources, economical and effective utilization of land and to evolve policies and programmes, relating to the improvement of the environment of housing, industrial development, traffic, transportation, health, education, water supply, sewerage, drainage, solid waste disposal and matters connected therewith and incidental thereto: It is hereby enacted as follows:-

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CHAPTER I

PRELIMINARY

1. Short title, extent and commencement.– (1) This Act may be called the Punjab Development of Cities Act, 1976. (2) It shall extend to the whole of the Province of the Punjab. 42[2][(3) It applies to the cities of Multan and 43[3][Faisalabad] declared as such under sub-section (1) of section 3 of the Punjab Development of Cities Ordinance, 1976 (No. XI of 1976), with effect from the 22nd October, 1976 and shall apply to such other city or cities as the Government may, by notification, specify from time to time.] 2. Definitions.– In this Act, unless the context otherwise requires– (a) “agency” means an agency established by the Authority Authorities

to perform one or more of its functions under this Act; (b) “area” means the whole or any part of the city; (c) “Authority” means the Development Authority created under

section 4 of this Act; “(c) “Authorities” mean the Development Authority and the

Water and Sanitation Authority under this Act”

(d) “Chairman” means the Chairman of the Development Authority;

“(dd)“Chief Executive Officer” means the Chief Executive Officer of the Water and Sanitation Authority”

(e) “44[4][city]” means an area declared by the Government to be a city

for the purpose of this Act; 45[5][(ee) “City District” means the City District notified by the Government under

section 8 of the Punjab Local Government Ordinance, 2001 (XIII of 2001);]

(f) “46[6][controlled area]” means an area notified as such by the Authority Authorities;

Inserted ibid. Substituted ibid, for the words “Controlled Area”.

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“(ff) “Development Authority” means a Development Authority created under section 4 of this Act;” (g) “47[7][District Coordination Officer]” means the 48[8][District

Coordination Officer] of the district concerned and includes any other officer appointed by the Development Authority to exercise all or any of the powers and discharge any of the functions under this Act;

49[9][(gg) * * * * *] (h) “Government” means the Government of the Punjab; (i) “Government Agency” includes:- (i) a division, department, bureau, section, commission, board,

office, or unit of the Government; 50[10][(ii) a local government as defined in the Punjab Local Government

Ordinance, 2001 (XIII of 2001); and] (iii) a developmental or any other public authority, company or

corporation (whether autonomous or semi-autonomous) owned or controlled by Government or a 51[11][local government];

(j) “land” includes earth, water and air, above, below or on the surface and any improvements in the structure customarily regarded as land and benefits arising out of land and things attached to earth or permanently fastened to earth;

(k) “member” means a the member of the Development Authority and WS Authority;

52[12][(kk) * * * * *] (l) “person” includes an individual, company, firm, cooperative society

or association of individuals whether incorporated or not; 53[13][* * *]

47[7]Substituted for the words “Deputy Commissioner” by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002), which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the Islamic Republic of Pakistan.

48[8]Ibid. 49[9]Inserted by Punjab Ordinance XLII of 2002, and omitted by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006).

50[10]Substituted by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002), which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the Islamic Republic of Pakistan.

51[11]Substituted for the words “municipal body”, by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002), which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the Islamic Republic of Pakistan.

52[12]Inserted by Punjab Ordinance XLII of 2002, and omitted by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006).

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(m) “prescribed” means prescribed by rules or regulations 54[14][;55[15][* * *] “(mm) ‘service area’ means the whole or any part of the city as notified by the Water and Sanitation Authority.”

56[16][(n) “Town Municipal Officer” means Town Municipal Officer of the

Town Municipal Administration whose area or part of it falls within the jurisdiction of the Authority;]

57[17][(o) “Town Nazim” means Nazim of the Town Municipal Administration whose area or part of it falls within the jurisdiction of the Authority; and

“(oo)“Water and Sanitation Authority” means an authority created under section 4 of the Act for the exclusive purpose as enumerated under section;” and

(p) “Zila Nazim” means Nazim of the concerned City District Government.]

3. Declaration of any area to be a city and alteration of the limits thereof.– (1) For the purpose of this Act, the Government may, by notification, declare any area to be a city. (2) The Government may, at any time, extend, curtail or otherwise alter the limits of a city. 4. Application of this Act and Establishment of an a Development Authority.– (1) The Government may 58[18][* * *] establish an a Development Authority for the city to which this Act has been applied 59[19][:]

53[13]The word “and” omitted by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002), which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the Islamic Republic of Pakistan.

54[14]Substituted ibid., for the full-stop. 55[15]The word “and” omitted by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006). 56[16]Added by Punjab Ordinance XLII of 2002, and substituted by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006).

57[17]Inserted by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006). 58[18]The commas and words ‘by notification’ deleted by the Punjab Development of Cities (Amendment) Ordinance, 1981 (VII of 1981), effective from 16th December, 1976.

59[19]Substituted ibid, for a full-stop.

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60[20][Provided that in the case of the cities of Multan and 61[21][Faisalabad] declared as such under sub-section (1) of section 3 of the Punjab Development of Cities Ordinance, 1976 (XI of 1976), the Multan Development Authority and the 62[22][Faisalabad] Development Authority shall be deemed to have been validly established with effect from the 22nd of October, 1976.] (2)The Development Authority shall be known by the name as may be specified by the Government. (3) The Development Authority shall be a body corporate, having perpetual succession and a common seal with powers, subject to the provisions of this Act, to acquire, hold and transfer property both movable and immovable, and may, by its name sue or be sued. 63[23][(4) The Authority shall consist of–

(a) Zila Nazim; Member/Chairman (b) Town Nazims; Members (c) Director General of the Authority; Member/Secretary (d) District Co-ordination Officer; Member (e) Representative of the Planning and

Development Board, Punjab; Member

(f) Representative of the Finance Department;

Member

(g) Representative of the Housing, Urban Development and Public Health Engineering Department;

Member

(h) Representative of the Local Government and Rural Development Department;

Member

(i) Managing Director of the Water and Sanitation Agency;

Member

(j) five members of the Provincial Assembly of the Punjab to be nominated by the Chief Minister, three from treasury benches and two from Opposition, the latter in

Members

60[20]Added ibid.

Substituted for the word “Lyallpur” by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006).

Ibid. 63[23]Substituted first Punjab Ordinance, 2002 (XLII of 2002), and then by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006).

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consultation with the Leader of the Opposition; provided that preference shall be given to the members whose constituency falls within the local limits of Development Authority.

64[24][(5) Membership of the Development Authority may be altered, increased or decreased by the Zila Council with the approval of the Government.] (6) 65[25][* * * * * * * * * * *] (7) No act or proceedings of the Development Authority shall be invalid merely by reason of any vacancy in, or defect in, the constitution of the Development Authority. 66[26][(8) The Government may designate one or more members of the Development Authority as Vice Chairman. (9) A Vice Chairman shall perform such functions as may be assigned to him by the Development Authority.] 5. Disqualification of members.– No person shall be, or shall continue to be a member who– (a) is or, at any time, has been convicted of an offence involving moral

turpitude; or (b) is or, at any time, has been adjudicated insolvent; or (c) is found to be a lunatic or of unsound mind; or (d) is a minor; or (e) has a financial interest in any scheme or a conflicting interest, directly

or indirectly, between his interests as a member and his private interest, and has failed to disclose such interest in writing to the Government.

6. Meetings.– (1) The Development Authority shall meet at such place and at such time and shall observe such rules of procedure in regard to transaction of business at its meetings as may be prescribed. 67[27][(2) The meetings of the Development Authority shall be presided over by –

64[24]Substituted first Punjab Ordinance, 2002 (XLII of 2002), and then by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006).

65[25]Deleted by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002), which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the Islamic Republic of Pakistan.

66[26]Added by the Punjab Development of Cities (Amendment) Act 1998 (IV of 1998).

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(i) the Chairman; (ii) in the absence of the Chairman, the Vice Chairman; (iii) in case there are more than one Vice Chairmen, in accordance

with such priority as may be determined by the Development Authority; and

(iv) in the absence of the Chairman as well as the Vice Chairman, by a member of the Development Authority elected for the purpose by the members present, from amongst themselves.]

CHAPTER II

POWERS AND FUNCTIONS OF THE DEVELOPMENT AUTHORITY

7. Powers and functions of Development Authority.– (1) Subject to the provisions of this Act and any rules framed thereunder, the Development Authority may exercise such powers and take such measures as may be necessary for carrying out the purposes of this Act. (2) Without prejudice to the generality of the provisions of the foregoing sub-section, the Development Authority may– (i) initiate and maintain a continuous process of comprehensive

development planning for the area with the objective of preparing a development plan;

(ii) periodically update such a development plan and coordinate its implementation by the Development Authority or Government agencies within the area;

(iii) develop, operate and maintain water supply, sewerage and drainage system within the area;

(iv) prepare Annual Development Programme for the area, ensure compliance of the Annual Development Programme with priorities established in the development plan after its preparation and evaluate performance under the Annual Development Programme at the end of each year;

(v) establish, maintain and periodically revise as necessary, planning controls and building regulations for the area to:-

(a) provide appropriate urban design and protect public safety; and

(b) ensure compliance with the development plan after its preparation.

67[27]Substituted by the Punjab Development of Cities (Amendment) Act 1998 (IV of 1998).

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(vi) prepare, implement and enforce schemes for environmental improvements, housing, urban renewal including slums improvement and re-development, solid waste disposal, transportation and traffic, health and education facilities and preservation of objects or places of historical, archaeological, scientific, cultural and recreational importance;

(vii) take any steps or adopt any measures for the face lifting and beautification of the area;

(viii) acquire property, both movable and immovable; (ix) sell, lease, exchange or otherwise dispose of any property vested

in it; (x) undertake any works and incur any expenditure; (xi) procure machinery instruments or any other material required by

it; (xii) enter into contracts; (xiii) cause studies, surveys, experiments, technical researches or

contribute towards the cost of any such studies, surveys, experiments or technical researches made by any other Agency;

(xiv) issue interim development order for the area for which a scheme is under preparation and restrict or regulate by general or special order, any change in the use of land and alteration in building structure and installation;

(xv) seek and obtain advice and assistance for the preparation of any scheme, or for the execution of any scheme from any Government agency or person and such agency or person shall give the advice and assistance sought by the Development Authority to the best of its ability, knowledge and judgement and the additional expenditure, if any, involved in giving such advice or assistance shall be borne by the Development Authority; and

(xvi) establish and dissolve an agency/agencies and entrust to it such powers and functions as it may deem fit with the approval of the Government.

8. Delegation.– The Development Authority may, by general or special orders, delegate to the Director-General or a Committee constituted under section 10 or a member or an officer of the Development Authority, any of its powers, duties or functions under this Act, subject to such conditions as it may think fit to impose.

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9. Appointment of officers and employees.– The Development Authority may appoint such officers, advisors, experts, consultants and employees, as it considers necessary for the efficient performance of its functions on such terms and conditions as it may deem fit. 10. Committees.– The Development Authority may constitute such financial, technical and advisory committees as may be deemed necessary for carrying out the purposes of this Act and such committees shall exercise such powers and perform such functions as may be delegated or assigned to them by the Development Authority.

CHAPTER III

DIRECTOR-GENERAL 11. Appointment and terms of office.– (1) The Director-General shall be appointed by Government on such terms and conditions as may be determined by the Government. (2) The Director-General shall be the Chief Executive chief executive of the Development Authority and shall– (a) be a whole time 68[28][or part time] officer of the Development

Authority; and (b) perform such duties as may be assigned to him and exercise such

powers as may be delegated to him by the Development Authority.

CHAPTER IV PREPARATION AND EXECUTION OF SCHEMES

12. Preparation of schemes.– (1) The Development Authority shall, in such form and in such manner as may be prescribed, prepare schemes for the area or any part thereof and execute or have them executed in the prescribed manner. (2) All such schemes prepared by the Development Authority shall be submitted to the Government for its approval, except those schemes, the provisional estimated cost of which does not exceed such limit as may be prescribed by rules or for which no loan or grant is required from the Government. (3) The Development Authority shall publish the sanctioning of any scheme in the official Gazette. (4) The publication of a sanction under sub-section (3), shall be conclusive evidence that the scheme has been duly framed and sanctioned.

68[28]Inserted by the Punjab Development of Cities (Amendment) Ordinance, 1982 (I of 1982).

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(5) No planning or development scheme shall be prepared by any person or 69[29][local government as defined in the Punjab Local Government Ordinance, 2001 (XIII of 2001)] or Government agency within the area except with the concurrence of the Development Authority. 70[30][(6) In every scheme provision for a plot or plots for mosques shall be made.] 13. Modification of schemes.– Any scheme prepared under this Act, may at any time, be amended, modified or abandoned by the Development Authority, in such form and in such manner as may be prescribed. 14. Power to give directions.– (1) The Development Authority may require a Government agency within whose jurisdiction any particular locality or aspect of development covered by a scheme lies:- (a) to execute a scheme in consultation with the Development

Authority; (b) to take over and maintain any of the works and services in the area. (c) to provide any amenity in relation to the land which in the opinion

of the Development Authority ought to be provided; and (d) to enforce regulations, on behalf of the Development Authority. (2)The expenditure incurred on the execution of any scheme or on the taking over or maintenance of any work, or the enforcement of regulations, under this section, shall be borne as may be agreed to between the Development Authority and the Government agency and in the event of disagreement, as may be determined by the Government within a prescribed period. 15. Power to execute any schemes.– (1) Where the Development Authority is satisfied that any direction given by it under sub-section (1) of section 14, with regard to any scheme, has not been carried out by the Government agency, the Development Authority may, itself undertake any works for the execution of that scheme and the cost thereof shall be borne as may be agreed between the Development Authority and the Government agency and in the event of disagreement, as may be determined by the Government.

69[29]Substituted for the words “local council as defined in the Punjab Local Government Act, 1975” by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002), which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the Islamic Republic of Pakistan.

70[30]Added by the Punjab Development of Cities (Amendment) Ordinance, 1984 (XXVII of 1984).

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(2) Where any work is undertaken by the Development Authority under sub-section (1), it shall be deemed to have, for the purpose of execution of such work, all the powers which may be exercised under any law for the time being in force, by the Government agency concerned.

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CHAPTER IV-A

WATER AND SANITATION AUTHORITY

15-A Establishment of Water and Sanitation Authority.– (1) The Government may establish a Water and Sanitation Authority for the city to which this Act has been applied. (2) The Water and Sanitation Authority shall be known by the name as may be specified by the Government. (3) The Water and Sanitation Authority shall be a body corporate, having perpetual succession and a common seal with powers, subject to the provisions of this Act, to acquire, hold and transfer property both movable and immovable, and may, by its name sue or be sued. (4) The Authority shall consist of a Chief Executive Officer and four (4) Directors. (5) Membership of the Water and Sanitation Authority may be altered, increased or decreased with the approval of the Government.] (6) No act or proceedings of the Water and Sanitation Authority shall be invalid merely by reason of any vacancy in, or defect in, the constitution of the Water and Sanitation Authority. 15-B. Appointment of CEO and Directors (1). The Government shall appoint the CEO and the four directors in the manner and on the terms and conditions as prescribed. (2) The appointments shall be on market based salary and on contractual basis for term of five (5) years. (3) The CEO and the Directors shall not be removed from office except in the manner provided hereunder and in the Rules. Explanation: CEO and the Director(s) shall be severally referred to as a Member and jointly as Members. 15-C. Disqualification of CEO and Directors:– (1) No person shall be, or shall continue to be a CEO or the Director who–

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(a) is or, at any time, has been convicted of an offence involving moral turpitude; or

(b) is or, at any time, has been adjudicated insolvent; or (c) Is incapable of discharging his duties by way of physical,

psychological or metal unfitness and has been so declared by a registered medical practitioner or appointed by the Government; or

(d) Being a member, absents himself from 3 consecutive meetings of the Water and Sanitation Authority without the leave of Water and Sanitation Authority;

(e) Is a minor; or (f) Has a financial interest in any scheme or a conflicting interest, directly

or indirectly, between his interests as a member and his private interest, and has failed to disclose such interest in writing to the Government.

(g) Fails to meet the performance criteria prescribed in the rules made hereunder.

15-D: - Removal, resignation and vacancies: - (1) Subject to sub-section

2, appointment of any member may, at any time, be revoked and he may be removed from the office by the Government if it is found that such person stands disqualified under section 15-C.

(2) Unless a disqualification referred to in section 15-C from the judgment

or order of a Court or Tribunal of competent jurisdiction under any relevant provision of applicable law, a member shall not be removed or his appointment revoked without an inquiry by an impartial person or body of persons appointed by the Government.

(3) A member may at any time resign his office by a written notice address to the Government.

(4) The office of the member shall ipso facto be vacated if he died. 15-E. Meetings.– (1) The Water and Sanitation Authority shall meet at such place and at such time and shall observe such rules of procedure in regard to transaction of business at its meetings as may be prescribed.

POWERS AND FUNCTIONS OF THE WATER AND SANITATION AUTHORITY

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15-D. Powers and functions of Water and Sanitation Authority.– (1) Subject to the provisions of this Act and any rules framed thereunder, the Water and Sanitation Authority may exercise such powers and take such measures as may be necessary for carrying out the purposes of this Act. (2) Without prejudice to the generality of the provisions of the foregoing sub-section, the Development Authority may– (i) initiate and maintain a continuous process of comprehensive water

and sanitation planning in the service area; (ii) develop, operate and maintain water supply, sewerage and

drainage system within the area; (iii) prepare strategic development plan for 3 to 5 years and present

it to the Government for approval; (iv) prepare tariff adjustment and business plans; (v) Prepare human resource and performance evaluation, policies,

(vi) Prepare Annual Development Programme for the area, ensure compliance of the Annual Development Programme with priorities established in the development plan after its preparation and evaluate performance under the Annual Development Programme at the end of each year;

(v) to prepare human resource and performance manuals, strategic development plan, financial plan, tariff adjustment and business plans, performance monitoring and over sight plans, procurement plan and strive.

(vi) develop oversight , control and accountability system. (vii) develop corporate strategy and performance objectives (viii) Reviewing and retifing the systems of risk management internal

compliance and control. (ix) Appointment removal and suspension of employees of the WS

Authority. (x)Performance evaluation of the human resource employed by the WS Authority (xi)Approving and monitoring the major capital expenditure (xii)Capital management, acquisition and divestitures; (xiii) Establishment of committees under the Act;

(xiv) Shall be responsible for setting and executing the overall business strategy and business plan

(xv) Ensuring community participation in operation and service;

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(xvi) water safety plans and continuous monitoring of water quality system.

(xvii)Rehabilitation of consisting water supply and sewerage system

(xviii) Well design communication and educational program (xix) Development standard operating systems of key tasks.

(viii) acquire property, both movable and immovable; (ix) sell, lease, exchange or otherwise dispose of any property vested

in it; (x) undertake any works and incur any expenditure; (xi) procure machinery instruments or any other material required in

the manner prescribed; (xii) enter into contracts; (xiii) case studies, surveys, experiments, technical researches or

contribute towards the cost of any such studies, surveys, experiments or technical researches made by any other Agency;

(xiv) restrict or regulate by general or special order, any change in the use of land and alteration in building structure and installation;

(xv) seek and obtain advice and assistance for the preparation of any scheme, or for the execution of any scheme from any Government agency or person and such agency or person shall give the advice and assistance sought by the WSAuthority to the best of its ability, knowledge and judgement and the additional expenditure, if any, involved in giving such advice or assistance shall be borne by the Development Authority; and

(xvi) establish and dissolve an agency/agencies and entrust to it such powers and functions as it may deem fit with the approval of the Government.

(xvii) Maintain coordination between the Authorities. (xviii) The Water and Sanitation Authority shall have all such powers

as may be necessary to perform its duties and functions under this Act.

(xix) The Water and Sanitation Authority shall be responsible for the

performance of the following:

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a. Planning, development, operation and maintenance of water supply and sewerage and drainage within the service area.

b. The Water and Sanitation Authority shall constitute audit committee, nomination committee, remuneration committee and may constitute the financial, technical and advisory committees for carrying out the purposes of this Act.

c. The Water and Sanitation Authority shall appoint officers, staffs, employees, experts, consultants on contractual basis as it consider necessary for efficient performance of the functions and in the manner prescribed.

d. Any other function as may be prescribed. 15-E. Delegation.– The Water and Sanitation Authority may, by general or special orders, delegate to the CEO or Directors or a Committee or an officer of the Water and Sanitation Authority constituted under section ___ or a member or an officer of the Water and Sanitation Authority, any of its powers, duties or functions under this Act, subject to such conditions as it may think fit to impose. 15-F. Appointment of officers and employees:– The Water and Sanitation Authority may appoint such officers and employees as it considers necessary for the efficient performance of its functions on such terms and conditions as may be prescribed. The Water and Sanitation Authority shall appoint officer and employees on contractual basis and on market-based salaries for the efficient performance on the terms and conditions as may be prescribed. 15-G. Committees:– The Water and Sanitation Authority shall constitute audit committee, nomination committee, remuneration committee and may constitute the financial, technical and advisory committees and such committees shall exercise such powers and perform such functions as may be delegated or assigned to them by the Water and Sanitation Authority.

15-H. Appointment and terms of Chief Executive Officer: - .– (1) Government shall ensure that Chief Executive Officer shall be from private sector and is well known for his integrity, expertise and experience in the spheres of economics, corporate law, accountancy, development planning, water and sanitation services or other related fields of expertise. The CEO

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shall be appointed by Government on contractual basis and on market based salaries for the efficient performance on the terms and conditions as may be determined by the Government. (2) The Chief Executive of the Water and Sanitation Authority shall– (a) be a whole time officer of the Water and Sanitation Authority; and (b) perform such duties as may be assigned to him and exercise such

powers as may be delegated to him by the Water and Sanitation Authority.

(3) The performance of the CEO shall be examined by the Government in accordance of rules

(4) The tenure of the CEO shall be 3 years and cannot be removed from office subject to section ___.

15-I. Directors

i.The Directors shall be nominated by the CEO and shall be appointed after the approval of the Government.

ii.The CEO shall ensure that the Directors bring strength to the WS Authority through their expertise, knowledge and reputation in the areas of water and sanitation, finance, law, development and planning.

(6) The constitution of the Directors shall be as follows;

i. atleast one Director with financial expertise i.e. is a qualified accountant or other financial professional with experience of financial and accounting matters.

ii. Atleast one Director having legal expertise iii. Atleast one Director having expertise in water and sanitation

serivecs and management ------------- 15-J. Independence 1. The Government shall ensure that CEO and the Directors have no conflicting interest with the Water and Sanitation Authority. 15-K. Strategic Development Plans and funding.– (1) The Water and Sanitation Authority shall, in such form and in such manner as may be prescribed, prepare, modify and alter strategic development plans for the service area or any part thereof and execute or have them executed in the prescribed manner.

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(2) All such schemes prepared by the Water and Sanitation Authority shall be submitted to the Government for its approval and release of funds. 15-L. Power to give directions.– (1) The Water and Sanitation Authority may require a Government agency within whose jurisdiction any particular locality or aspect of development covered by a scheme lies:- (a) to execute a scheme in consultation with the Water and Sanitation

Authority; (b) to take over and maintain any of the works and services in the area. (c) to provide any amenity in relation to the land which in the opinion

of the Water and Sanitation Authority ought to be provided; and (d) to enforce regulations, on behalf of the Water and Sanitation

Authority. (2)The expenditure incurred on the execution of any scheme or on the taking over or maintenance of any work, or the enforcement of regulations, under this section, shall be borne as may be agreed to between the Development Authority and the Government agency and in the event of disagreement, as may be determined by the Government within a prescribed period. 15-M. Power to execute any schemes.– (1) Where the Water and Sanitation Authority is satisfied that any direction given by it under sub-section (1) of section 14, with regard to any scheme, has not been carried out by the Government agency, the Development Authority may, itself undertake any works for the execution of that scheme and the cost thereof shall be borne as may be agreed between the Development Authority and the Government agency and in the event of disagreement, as may be determined by the Government. (2) Where any work is undertaken by the Water and Sanitation Authority under sub-section (1), it shall be deemed to have, for the purpose of execution of such work, all the powers which may be exercised under any law for the time being in force, by the Government agency concerned.

16. Directions by Government.– The Authority ies shall, in discharging its functions, act and be guided, by such directions as Government may give to it from time to time.

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[16-A. Transfer of functions, etc.– Where the Authority ceases to perform a function and another organization controlled by the Government assumes that function, the Government may direct– (i) that the servants of the Authority connected with that function

shall become servants of the said organization on such terms and conditions as the said organization may determine, subject to the condition that the said terms and conditions are not less favourable than those admissible to them as servants of the Authority; and

(ii) that such part of the Fund of the Authority as the Government may determine shall stand transferred to the said organization.]

17. Controlled area.– The Authority may issue in respect of a controlled area such directions as it considers fit and appropriate and do all such things as may be necessary for the prevention of haphazard growth, encroachments and unauthorised constructions in such area. 18. Power to act as local 71[32][government].– The Government may, by a notification in the official Gazette, authorise the Authority to exercise and perform such powers and functions as a local 72[33][government] may exercise and perform in relation to its local area under the Punjab Local Government 73[34][Ordinance, 2001 (XIII of 2001)], in an area in which schemes are undertaken by the Authority or which is declared as controlled area. 19. Power to remove sources of pollution.– The Authority shall have full powers to undertake improvements of the environment of the area or any part thereof and to check, replace, eliminate, remove, demolish, conserve, re-settle or relocate the sources of environmental pollution such as milch cattle, horses or other animals, tongas, vehicular exhaust, industrial waste, solid waste, congestion, blight and slums etc: Provided that the Authority shall provide alternate accommodation or compensation to be determined in accordance with the provisions in Chapter VI, to any person evicted from the premises owned by him.

71[32]Substituted for the word “council” by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002), which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the Islamic Republic of Pakistan.

72[33]Ibid. 73[34]Substituted ibid., for the word, comma and figures “Act, 1975”.

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20. Beautification.– The Authority shall also undertake beautification of the area or part thereof, in any manner it deems fit, or prepare schemes and prescribe environmental standards to be adopted by the Government agencies or persons or direct any Government agency or person to undertake any improvements or activities for beautification of the area or part thereof. 21. Borrowing money.– (1) The Authority shall be deemed to be a “Local Authority” for the purpose of borrowing money and any scheme or project prepared or undertaken by the Authority, shall be deemed to be “work” as defined in section 2 of the Local Authorities Loans Act, 1914 (Act No. IX of 1914): Provided that no local or foreign loan shall be obtained by the Authority without the previous sanction of the Government. (2) The Authority may, in consultation with the Finance Department, Government of the Punjab, borrow money or raise funds by issuing bonds or debentures or otherwise for carrying out the purposes of this Act at such rate of interest as may be approved by the Government. 22. Power to levy betterment fee.– Where any new scheme has been executed by the Authority by providing services or amentities in any locality, the Authority may, with the previous consent of Government, levy upon the owner of the property or any person having an interest therein, a betterment fee on account of the execution of the scheme. 23. Assessment of betterment fee.– (1) When it appears to the Authority that any particular development scheme is sufficiently advanced to enable the amount of the betterment fee to be determined, the Authority may, by an order made in this behalf, declare that for the purpose of determining the betterment fee, the execution of the scheme shall be deemed to have been completed and shall, thereupon give notice in writing to the owner of the property or any person having an interest therein, that the Authority proposes to assess the amount of the betterment fee in respect of the property under section 22. (2) The betterment fee under section 22 or under sub-section (1) of this section, shall be assessed and be payable in the manner prescribed.

CHAPTER VI ACQUISITION

24. Liability to acquisition.– Notwithstanding anything to the contrary contained in the Land Acquisition Act, 1894, all land within the area shall be liable to acquisition at any time in accordance with the provisions of this Chapter.

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25. Application of Act No. VIII of 1973.– The Authority shall be deemed to be an “Official Development Agency” and all schemes prepared by the Authority shall be deemed to be “housing schemes” as defined in section 2 of the Punjab Acquisition of Land (Housing) Act, 1973 (Act No. VIII of 1973), for the purpose of Acquiring land under this Act and the provisions of section 4 to section 20 of the said Act, shall with all necessary adaptations, mutatis mutandis, apply as if they have been enacted and form part of this Act.

CHAPTER VII FINANCE, ACCOUNTS AND AUDIT

26. Development Authority Fund.– (1) There shall be formed a fund to be known as the “Development Authority Fund’ which shall vest in the Authority and shall be utilized by the Authority in connection with its functions under this Act including the payment of salaries and remunerations to the members, officers, servants, experts and consultants of the Authority. (2) To the credit of the Authority Fund, shall be credited– (a) all moneys received from Government; (b) all moneys received from Federal Government or any

international agency or any other body by way of grants, loans, advances or otherwise;

(c) all fees, rates and charges received by the Authority under this Act;

(d) all moneys received by the Authority from the disposal of lands, buildings and other properties movable and immovable;

(e) proceeds from the self financing schemes of urban development and environmental sanitation; and

(f) all other sums receivable by the Authority. (3) Authority Fund will have two separate heads namely “Urban Development” and “Water Supply and Sanitation”. (4) The Authority may keep in current account of any scheduled bank such sums as may be prescribed and any amount in excess of the said amount shall be invested in Government securities, Government sponsored saving schemes or in such manner as may be determined by the Government. Explanation– For the purpose of this sub-section Government, includes Federal Government. 74[35][(5) In case of deficit revenue of the Authority, the City District Government shall provide, from its own revenue or from any other source,

74[35]Inserted by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006).

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such sum as may be necessary for the efficient performance of the functions of the Authority.] 26-A. Water and Sanitation Authority Fund.– (1) There shall be formed a fund to be known as the “Water and Sanitation Authority Fund’ which shall vest in the Water and Sanitation Authority and shall be utilized by the Water and Sanitation Authority in connection with its functions under this Act including the payment of salaries and remunerations to the members, officers, servants, experts and consultants of the Authority. (2) To the credit of the Water and Sanitation Authority Fund, shall be credited– (a) all moneys received from Government; (b) all moneys received from Federal Government or any

international agency or any other body by way of grants, loans, advances or otherwise;

(c) all fees, rates and charges received by the Water and Sanitation Authority under this Act;

(d) all moneys received by the Water and Sanitation Authority from the disposal of lands, buildings and other properties movable and immovable;

(e) proceeds from the self financing schemes of urban development and environmental sanitation; and

(f) all other sums receivable by the Water and Sanitation Authority. (4) The Water and Sanitation Authority may keep in current account of any scheduled bank such sums as may be prescribed and any amount in excess of the said amount shall be invested in Government securities, Government sponsored saving schemes or in such manner as may be determined by the Government. Explanation– For the purpose of this sub-section Government, includes Federal Government. [(5) In case of deficit revenue of the Water and Sanitation Authority, the City District Government shall provide, from its own revenue or from any other source, such sum as may be necessary for the efficient performance of the functions of the Water and Sanitation Authority.] 27. Rates and fees.– (1) With the previous consent of the [City District Government] and the Provincial] Government, adequate funds may be raised by the Authority Authorities from time to time, to meet the cost of its schemes by imposing rates, fees and other charges. (2) The rates, fees and other charges for water supply, sewerage and drainage schemes shall be such as to provide sufficient revenues–

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(i) to cover the operating expenses including taxes, if any, and interest to provide adequate maintenance;

(ii) to cover repayment of loans; and (iii) to finance the normal year to year extension of any of such

schemes and to provide a reasonable portion of the cost of future major expansion of such schemes.

28. Fees on tubewells.– (1) The Authority Authorities shall have the exclusive right to use ground water resources within the area. (2) No person shall, without the permission of the Authority Authorities install a tubewell, for commercial purposes, at such places within the area, as may be notified in the official Gazette by the Authority Authorities. (3) The Authority Authorities may levy rates on the persons or bodies who have installed or may install tubewells for commercial purposes, within its jurisdiction. 29. Accounts.– The Authority Authorities and its agencies shall maintain proper accounts and other relevant records and prepare annual statement of accounts in such form as may be prescribed. 75[38][30. Budget.– (1) The Authority Authorities shall, at such time as may be prescribed, prepare an annual budget statement for the next financial year, showing the estimated receipts and expenditures of the Authority Authorities and its agencies and shall submit the same through the City District Government to the Zila Council for approval. (2) After approval of the budget statement, the same shall be reflected in the budget of the City District Government. (3) If the Zila Council does not approve or modify the budget statement within sixty days of its receipt, the budget statement, as prepared by the Authority, shall be deemed to be the approved budget statement.] 31. Audit.– The accounts of the Authority and each of its agencies shall be audited annually by such duly qualified Auditors or Government Audit Agencies or both as may be appointed by the Authority and each agency respectively, with the approval of Government. The Authority shall also make necessary arrangements for pre-audit or concurrent audit of account.

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CHAPTER VIII PENALTY AND PROCEDURE

32. Penalty and procedure.– Whoever contravenes any provision of this Act, or any rules or regulations made thereunder shall, if no other penalty is provided for such contravention, be punishable with simple imprisonment for a term which any extend to one month or with fine or with both. 33. Causing damage to property and disobedience of orders.– (1) Whoever wilfully causes damage, or allows damage to be caused to any property which vests in the Authority or unlawfully converts it to his own or any other person’s use, shall be punishable with imprisonment for a term which may extend to six months, or with fine or with both. (2)Whoever refuses or wilfully neglects to provide any officer or servant of the Authority with the means necessary for entering into any premises for the purpose of collecting any information or making an examination or enquiry in relation to any water works, shall be punishable with imprisonment extending to one year or fine or with both. (3) Whoever without lawful excuse, fails or refuses to comply with any direction or order issued by the Authority under this Act, shall be guilty of an offence punishable under section 32. (4) Whoever attempts to commit or abets the commission of an offence punishable under this Act, shall be deemed to have committed that offence. (5) Any magistrate empowered for the time being to try in a summary way the offence specified in sub-section (1) of section 260 of the Code of Criminal Procedure, 1898, may if such magistrate thinks fit, on application being made in this behalf by the prosecution, try an offence punishable under this Act, in accordance with the provisions contained in sections 262 to 265 of the said Code. 34. Cognizance of offence by courts.– No court shall take cognizance of any offence punishable under this Act, except on a complaint in writing made by an officer authorized for the purpose, by the Authority.

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CHAPTER IX MISCELLANEOUS

35. Annual report.– (1) The Authority shall prepare for every year a report of its activities during that year and submit the report to the 76[39][77[40][City District Government] and the Provincial] Government in such form and on or before such date, as may be prescribed. (2)The report referred to in sub-section (1) shall be laid before the Provincial Assembly of the Punjab within six months of its receipt by the Government. 36. Recovery of dues:– (1). The Authorities shall initiate civil and criminal recovery proceedings against the customer for recovery of arrears. (2) Unpaid arrears for over three months shall constitute an offence under this Act. 37. Conversion of property to a different use.– Any conversion of property to a different use or purpose than the one provided under a scheme, by a person or agency without the previous approval of the Authority in writing, shall be punishable with a fine which may extend to rupees one hundred per day from the date of its conversion till default continues or with imprisonment for a term which may extend to six months or with both. 38. Summary ejectment of unauthorized occupants.– The Authority or any person authorised by it in this behalf may summarily eject any person in unauthorized occupation of any land or property vested in the Authority and may for such ejectment use such force as may be necessary. 78[41][Provided that no action under this Section shall be taken without providing an opportunity of being heard to the person to be affected thereby.] 39. Removal of building etc. erected or used in contravention of this Act.– (1) If any building, structure, work or land is erected, constructed or used in contravention of the provisions of this Act or any rules, regulations or

78[41]Added by the Punjab Development of Cities (Amendment) Ordinance, 1984 (XXVII of 1984).

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orders made thereunder, the Authority or any person authorised by it in this behalf, may, by order in writing, require the owner, occupier, user or person in control of such building, structure, work or land to remove, demolish or alter the building, structure or work or to use it in such manner so as to bring such erection, construction or use in accordance with the said provisions of this Act. (2) If an order under sub-section (1), in respect of any building, structure, work or land is not complied with within such time, as may be specified therein, the Authority or any person authorised by it in this behalf may, after giving the person affected by the order an opportunity of being heard, remove, demolish or alter the building, structure or work, or stop the use of the land and in so doing, may use such force as may be necessary and may also recover the cost thereof from the person responsible for the erection, construction or use of the building, structure, work or land in contravention of the provisions as aforesaid. 40. Members, officers and employees to be public servants.– The Chairman, 79[42][Vice Chairmen] members, Director-General, officers, servants, experts and consultants of the Authority when acting or purporting to act in pursuance of any of the provisions of this Act, be deemed to be public servants within the meaning of section 21 of the Pakistan Penal Code. 41. Immunity of the Authority and its employees.– No suit, prosecution or any other legal proceedings shall lie against the Authority, the Chairman, 80[43][Vice Chairmen] Director-General, any member, officer, servant, expert or consultant of the Authority in respect of anything done or intended to be done in good faith under this Act. 42. Jurisdiction of courts barred.– Save as otherwise provided by this Act, no court or other Authority, shall have jurisdiction to question the legality of anything done or any action taken under this Act by or at the instance of the Authority. 43. Power to make rules.– Subject to the provisions of this Act, Government may make rules for carrying into effect the purposes of this Act.

79[42]Inserted by the Punjab Development of Cities (Amendment) Act 1998 (IV of 1998). 80[43]Ibid.

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44. Power to make regulations.– Subject to the provisions of this Act and the rules framed thereunder, the Authority may make regulations as may be necessary to carry out the purposes of this Act. 45. This Act to prevail over other laws.– Subject to the Constitution, in the event of any conflict or inconsistency between the provisions of this Act and the provisions of any other law for the time being in force, the provisions of this Act shall, to the extent of such conflict or in consistency, prevail. 46. Authority to replace the Improvement Trust.– On the establishment of the Authority under this Act– (i) all functions and powers with respect to the formulation, sanction

and execution of schemes, and all functions heretofore performed by the Improvement Trust, shall be exercised and performed by the Authority;

(ii) all properties, assets and liabilities pertaining to the Improvement Trust shall vest in and be the assets and liabilities, as the case may be, of the Authority.

CHAPTER X REPEAL

47. Repeal and savings.– (1) On the establishment of the Authority under this Act, the town Improvement Act, 1922, shall cease to apply to the area and all schemes, projects, or works started under the said Act but not completed shall be taken over by the Authority and executed under the provisions of this Act. (2) Notwithstanding the fact of the Town Improvement Act, 1922, ceasing to apply to the areas:- (i) all rules, regulations and orders made, notifications issued, land

acquired, schemes prepared or executed, rates and fees imposed, penalties, or other charges levied, contracts entered into, suits instituted by or against the Improvement Trust or any other right accrued, or liability incurred or action taken, or proceedings initiated, shall so far as they are consistent with the provisions of this Act, continue in force and be deemed to have been made, imposed, levied, entered into, instituted, prepared, executed, accrued or incurred, taken and initiated under this Act;

(ii) the provisions of sections 45,56,57,58,59,60,61,62,63,64 and 65 of the Town Improvement Act, 1922, shall continue to apply in so

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far as the acquisitions made under the Land Acquisition Act, 1894, are concerned.

48. Repeal of Pb. Ordinance No. XI of 1976.– The Punjab Development of Cities Ordinance, 1976 (Punjab Ordinance No. XI of 1976), is hereby repealed.

__________________________________________________

Notification (1) Notification no.___________ dated__________. 1. A separate Water and Sanitation Authority has been created under the law. 2. Therefore, in exercise of the powers under section 7(2)(xvi) of the Punjab Development of Cities Act, 1976, the Development Authority hereby dissolves Water and Sanitation Agency (WASA), Gujranwala with immediate effect. 3. All assests, property, record stand transferred to Water and Sanitation Authority.

__________________________________________________

Notification

Notification no._________ dated ____________ In exercise of the powers under section 15 of the PDCA, the Government is pleased to create and establish a Water and Sanitation Authority for Gujranwala.

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Human Resource and Performance Evaluation Rules, 2009

In exercise of the powers conferred by section 43 of the Punjab Development of Cities Act, 1976 (_____ of 1976), the Government of Punjab is pleased to make the following Rules, namely,

Part I

Preliminary

1. Short Title and Commencement. (1) These Rules may be called Human Resource and Performance Evaluation Rules 2009

(2) They shall come into force at once

2. Definitions. (1) In these Rules, unless there is anything repugnant in the context or subject.

(a) ‘Act’ means the Punjab Development of Cities Act, 1976 (-------, 1976)

(b) ‘Authority’ means Water and Sanitation Authority established for an area under section 15-A of the Act

(c) CEO means Chief Executive of the Authority under the Act (d) ‘Director’ means Director appointed under the Act (e) ‘Employee’ means all the executives, employees, staff of the

Authority except, CEO and the Directors. (f) Government’ means Government of Punjab

(2) All other words and expressions used in these Rules but not defined shall have the same meaning as are assigned to them in the Act.

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Part II

The Authority

3. The Chief Executive Officer: - (1) The CEO shall be appointed by the Government for a period of 3 years and shall be eligible for re-appointment on the basis of his performance. (2) The CEO is entitled to market based salary to be determined by the Government.

(3) CEO shall nominate four Directors of the Authority who shall be appointed by the approval of the Government.

(4) The CEO shall not be removed from service during his tenure, except by the Provincial Government and only on the following grounds:

(a). If there is proven misconduct against the CEO

(b). If the performance of the CEO is consistently below the Key Performance Indicators set out in the Rules

(c). If the CEO has been convicted of an offence involving moral turpitude

(d). If the CEO has been adjudged insolvent

(e). If the CEO is incapable of discharging his duties by reason of physical, physiological or mental unfitness and has been so declared by a registered medical practitioner appointed by the Government

(f) If the CEO absents him from three consecutive board meetings without leave of the board

2. Removal under these Rules shall not be without affording due hearing to the CEO.

3. During the pendency of the removal proceedings the CEO shall continue to hold his office

4. The CEO may be suspended by the Government in special cases, where there is serious allegation of misconduct. In any such case the allegations will be inquired into and decided within a fortnight. In case the final decision is not passed within the aforesaid time the suspension

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order shall be stand vacated and the Chief Executive Officer shall be restored.

Qualifications

4. Competency of CEO. 1. The criteria for the appointment of the CEO is as follows:

___________________

5. CEO shall commit to spend sufficient time for Authority matters to enable them to properly carry out his duties.

6. The CEO during his term in office shall not hold any other post, service, business, vocation or employment apart from the CEO of the Authority

Disqualification, Removal, Resignation and Vacancies

7. Removal/ disqualification, suspension of the CEO or the Directors. 1. The CEO shall not be removed from service, before expiry of their term, except by the Provincial Government and only on the following grounds:

(a). If there is proven misconduct against the CEO

(b). If the performance of the CEO Director is consistently below the Key Performance Indicators set out in the Rules

(c ). If the CEO has been convicted of an offence involving moral turpitude

(d). If the CEO has been adjudged insolvent

(e). If the CEO is incapable of discharging his duties by reason of physical, physiological or mental unfitness and has been so declared by a registered medical practitioner appointed by the Government.

(f) If the CEO absents him from three consecutive board meetings without leave of the board

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2. Removal under these Rules shall not be without affording due hearing to the CEO

3. During the pendency of the removal proceedings the CEO shall continue to hold their office

4. The CEO may be suspended in special cases, where there is serious allegation of misconduct against them by the Government.

8. Resignation and vacancies. 1. The CEO may at anytime resign his office by a written notice addressed to the Government.

2. The office of the CEO ipso facto be vacated if he dies

9. In case of vacancy occurring due to death, resignation, retirement or removal of CEO, the Government shall appoint another qualified person within a period not exceeding 3 months from the date the vacancy occurred

10. Remuneration (1) the CEO shall be paid such remuneration for his respective term as

may be determined by the Government in advance of their appointment which shall not be varied to their disadvantage during their term in office

DIRECTORS

11. Appointment of Directors : - (1) The Directors shall be appointed by the Government for a period of 3 years and shall be eligible for re-appointment on the basis of their performance. (2) The Directors are entitled to market based salary to be determined by the Government.

(3) Directors shall be nominated by CEO who shall be appointed by the approval of the government.

(4) The CEO shall not be removed from service, before expiry of their term, except by the Provincial Government and only on the following grounds:

(a). If there is proven misconduct against the Director.

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(b). If the performance of the Director is consistently below the Key Performance Indicators set out in the Rules

(c)If the Director has been convicted of an offence involving moral turpitude

(d). If the Director has been adjudged insolvent

(e). If the Director is incapable of discharging his duties by reason of physical, physiological or mental unfitness and has been so declared by a registered medical practitioner appointed by the Government

(f) If the Director absents him from three consecutive board meetings without leave of the board

2. Removal under these Rules shall not be without affording due hearing to the Director.

3. During the pendency of the removal proceedings the Director shall continue to hold his office

4. The Director may be suspended in special cases, where there is serious allegation of misconduct against them by the Government

Qualifications

12. Competency of Directors. 1. The criteria for the appointment of the four Directors are as follows:

(a) At least one director with financial expertise, i.e. qualified accountant or financial professional with experience of financial and accounting matters

(b) Atleast one legal expert (c) Atleast one water management expert (d) ______________

13. Private Sector Directors shall commit to spend sufficient time for

Authority matters to enable them to properly carry out their duties.

14. Unless otherwise especially approved by the Government, the Directors shall not be Directors of more than three companies or any company having objects similar to Water and Sanitation Authority.

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15. Removal/ disqualification, suspension of the CEO or the Directors. 1. The directors shall not be removed from service, before expiry of their term, except by the Provincial Government and only on the following grounds:

(a). If there is proven misconduct against the Director

(b). If the performance of the Director is consistently below the Key Performance Indicators set out in the Rules

(c). If the Director has been convicted of an offence involving moral turpitude

(d). If the Director has been adjudged insolvent

(e). If the Director is incapable of discharging his duties by reason of physical, physiological or mental unfitness and has been so declared by a registered medical practitioner appointed by the Government.

(f) If the Director absents him from three consecutive board meetings without leave of the board

2. Removal under these Rules shall not be without affording due hearing to the Director.

3. During the pendency of the removal proceedings the Director shall continue to hold their office

4. The Director may be suspended in special cases, where there is serious allegation of misconduct against them by the Government.

16. Resignation and vacancies. 1. The Director may at anytime resign his office by a written notice addressed to the Government.

2. The office of the Director ipso facto be vacated if he dies

17. In case of vacancy occurring due to death, resignation, retirement or removal of any of the Directors, the provincial Government shall appoint another qualified person within a period not exceeding 3 months from the date the vacancy occurred

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Remuneration market-based

18. The Directors shall be paid such remuneration for their respective term as may be determined by the Government in advance of their appointment which shall not be varied to their disadvantage during their term in office

Part III

The Executive Management

19. The Executive Management. 1. The Executive Management shall consist of Manager Services and Deputy Managing Director; Manager planning and new works; Manager Administration; and Manager Finance.

2. Manager, Services and Deputy Managing Director shall be responsible for delivery of all services to consumers including, water supply, sanitation, and customer services through cost effective operation and maintenance of the water supply and sanitation assets (treatment and distribution) and regional customer service centers.

3. Manager, planning and new works shall be responsible for managing the planning process for infrastructure and services culminating in the elaboration of annual asset management plans, the design and delivery of new infrastructure, and the rehabilitation/replacement of existing infrastructure. The manager, planning works closely with the Manager Services to ensure that planning of new infrastructure

4. Manager Administration shall be responsible for all the administrative and public relations activities of the organization including developing and maintaining a high level of organizational capability. The Manager, Administration is also responsible for effective communication, both internal and external, and the development and maintenance of a positive image of the organization.

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5. Manager Finance shall be Responsible for all financial aspects of WSS business including provision of advice to the Managing Director and other managers and the preparation of budgets and financial reports

Appointments and Term

15. 1. The executive management shall be appointed by the CEO with consultation of the Directors for a period of 3 years and shall be eligible for re-appointment on the basis of his key performance indicators.

2. A director shall not serve for maximum of two terms

Qualifications

Manager Services

20. Qualification criteria for Manager, Services and Deputy Managing Director.

Manager Services shall have following Knowledge, Skills, and Abilities.

Knowledge of management theory and practice as it applies to a large organization

Knowledge of water and sanitation technology Skills to design and drive cultural and organizational change from a

“neglected government department culture” to an “outcome-focused, commercial culture”.

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Ability to provide innovative and inspirational leadership to a team of technical experts and administrative staff

Establish priorities, work independently, and proceed with objectives without supervision.

Ability to communicate (written and spoken) with confidence, authority and clarity

Ability to take strategic objectives and set priorities, develop strategies and elaborate work plans

Ability to prepare and manage a departmental budget Ability to work autonomously and make good decisions during an

operational emergency

Credentials and Experience (established by supervisor)

First Degree in a engineering and post-graduate degree in engineering or management

At least 15 years professional experience, including at least 3 years in a management rile in the private sector.

Special Requirements. Willing to work outside normal working hours when required by operational emergencies.

Manager Planning

16. Qualification Criteria for Manager Planning & New Works.

Knowledge, Skills, and Abilities

Knowledge of planning and asset management including engineering design and procurement

Knowledge of financial procedures as related to design and procurement of infrastructure

Knowledge of government procedures, codes, etc. Knowledge of codes relating to the design and construction of

infrastructure Knowledge of regulations related` to water supply, sanitation and the

environment. Ability to negotiate with consultants and construction contractors

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Credentials and Experience

Degree in a engineering (civil engineering preferred) At least 15 years professional experience, including at least 3 years in

a management role in an engineering environment.

Special Requirements. Willing to work outside normal working hours when required by operational emergencies.

Manager Administration

17. Qualification Criteria for Manager Administration.

Knowledge of human resources management theory and practice and performance-based employment contracts

Knowledge of public relations theory and practice Organizational strengthening including development and delivery of

training Knowledge of the Industrial Relations Ordinance and rules and

regulations Ability to represent the organization in court of law in issues relating

to Industrial Relations Ordinance, and health and safety. Knowledge of administrative procedures and computer programs

Degree in a relevant subject (preferably business management or human resource management)

At least 15 years professional experience, including at least 3 years managing the administrative functions of a medium-sized or large organization.

Special Requirements. Willing to appear in court of law in issues relating to Industrial Relations Ordinance, and health and safety.

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Manger Finance

18. Qualification criteria for manager finance.

Thorough knowledge of financial and accounting systems Skilled user of computer software, particularly accounting / financial

packages, spreadsheets and word processing programs. Ability to present complex financial concepts to a Board of Directors

and government officials

Degree and post-graduate in accounting, business management or similar

At least 15 years professional experience, including at least 3 years managing the financial and accounting functions of a medium-sized or large organization.

19. Removal of the Executive Management. Any member of the Executive Management can only be removed by the Water and Sanitation Authority, and in case of conflict, majority of the Directors need to agree for the removal. Any member can be removed on the following grounds only:

20. Resignation and vacancies. 1. Any member of the Executive Management may at anytime resign his office by a written notice addressed to the Water and Sanitation Authority.

21. The office of the member ipso facto be vacated if he dies 22. In case of vacancy occurring due to death, resignation,

retirement or removal of any of the Members the MD with

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consultation of the BOD shall appoint another qualified person within a period not exceeding 3 months from the date the vacancy occurred

Remuneration

23. market-based 24. the members shall be paid such remuneration for their

respective term as may be determined by the Government in advance of their appointment which shall not be varied to their disadvantage during their term in office

Part IV

Other Employees of the Authority

19. Appointment of other employees of the Authority. 1. The CEO may, from time to time, employ officers, members of its staff, experts, consultants and advisors to be known as employees of the Authority on such terms and conditions as prescribed. 2. The Authority shall prescribe by regulations, the procedure for appointment, termination and other terms and conditions of employment of these employees.

3. The employees shall be on market based salaries duly approved by the Government

4. The employees of the Authority shall not be civil servants

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PROCUREMENT RULES

In exercise of the powers conferred by section 43 of the Punjab Development of Cities Act, 1976 (_____ of 1976), the Government of Punjab is pleased to make the following Rules, namely,

21. Short Title and Commencement. (1) These Rules may be called Procurement Rules for Water & Sanitation Authority under PDCA, 2009

(2) They shall come into force at once.

(3) They Rules shall extend to the entire province of Punjab except _______

Part I

General Provisions

22. Definitions. In these rules, unless there is anything repugnant in the subject or context,-

(a) ‘Act’ means the Punjab Development of Cities Act, 1967 (-------, 1967)

(b) ‘bid’ means a tender, or an offer, in response to an invitation, by a person, consultant, firm, company or an organization expressing his or its willingness to undertake a specified task at a price;

(c) ‘bidder’ means a person who submits a bid;

(d) ‘competitive bidding’ means a procedure leading to the award of a contract whereby all the interested persons, firms, companies or organizations may bid for the contract and includes both national competitive bidding and international competitive bidding;

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(e) ‘contractor’ means a person, consultant, firm, company or an organization who undertakes to supply goods, services or works;

(f) ‘contract’ means an agreement enforceable by law;

(g) ‘corrupt and fraudulent practices’ includes the offering, giving, receiving, or soliciting of any thing of value to influence the action of any officer of Water & Sanitation Authority or the supplier or contractor in the procurement process or in contract execution to the detriment of the Procuring Agency; or misrepresentation of facts in order to influence a procurement process or the execution of a contract, collusive practices among bidders (prior to or after bid submission) designed to establish bid prices at artificial, non-competitive levels and to deprive the Procuring Agency of the benefits of free and open competition and any request for, or solicitation of anything of value by any officer of the WSS Provider in the course of the exercise of his duty;

(h) ‘emergency’ means natural calamities, disasters, accidents, war and operational emergency which may give rise to abnormal situation requiring prompt and immediate action to limit or avoid damage to person, property or the environment;

(i) lowest evaluated bid” means,- (i) A bid most closely conforming to evaluation criteria and other conditions specified in the bidding document; and

(ii) Having lowest evaluated cost;

(j) ‘Officer of Water & Sanitation Authority’

(k) ‘Procuring Agency’ means the Water & Sanitation Authority established under the Act

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(l) ‘Repeat orders’ means procurement of the same commodity from the same source without competition and includes enhancement of contracts;

(m) “Supplier” means a person, consultant, firm, company or an organization who undertakes to supply goods, services or works; and (supplier and the contractor are the same)

(n) “value for money” means best returns for each rupee spent in terms of quality, timeliness, reliability, after sales service, up-grade ability, price, source, and the combination of whole-life cost and quality to meet the procuring agency’s requirements.

(2) The expressions used but not defined in these rules shall have the same meanings as are assigned to them in the Act.

23. Scope and Applicability. Save as otherwise provided, these Rules shall apply to all procurements made by the Procuring Agency for the purpose of ___________.

24. Principles of Procurement. Procuring Agency, while engaging in procurements, shall ensure that the procurements are conducted in a fair and transparent manner. The object of procurement bringing value for money to the Procuring Agency and the procurement process is efficient and economical.

25. International and inter-governmental commitments of the Federal Government

26. Language.- All communication ands documents related to procurements of the Procuring Agency shall either be in Urdu or English.

27. Integrity pact.-

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Procurements exceeding the prescribed limit shall be subject to an integrity pact, as specified by regulation with approval of the Federal Government, between the procuring agency and the suppliers or contractors.

PROCUREMENT PLANNING

8. Procurement planning.-

Within one year of commencement of these rules, the procuring agency shall devise a mechanism, for planning in detail for all proposed procurements with the object of realistically determining the requirements of the procuring agency, within its available resources, delivery time or completion date and benefits that are likely to accrue to the procuring agency in future.

9. Limitation on splitting or regrouping of proposed procurement.-

The procuring agency shall announce, with the prior approval of the PG, in an appropriate manner all proposed procurements for each financial year and shall proceed accordingly without any splitting or regrouping of the procurements so planned. The annual requirements thus determined would be advertised in advance on the Authority’s website.

10. Specifications.-

Specifications shall allow the widest possible competition and shall not favour any single contractor or supplier nor put others at a disadvantage. Specifications shall be generic and shall not include references to brand names, model numbers, catalogue numbers or similar classifications. However if the procuring agency is convinced that the use of or a reference to a brand name or a catalogue number is essential to complete an otherwise incomplete specification, such use or reference shall be qualified with the words “or equivalent”.

11. Approval mechanism.-

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The procuring agency shall provide clear authorization and delegation of powers for different categories of procurement and shall only initiate procurements once approval of the competent authorities concerned has been accorded.

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PROCUREMENT ADVERTISEMENTS

12. Methods of advertisement.-

(1) Procurements over one hundred thousand rupees and up to the limit of two million rupees shall be advertised on the Procuring Agency’s website in the manner and format specified by regulation by the Procuring Agency from time to time. These procurement opportunities may also be advertised in print media, if deemed necessary by the Procuring Agency:

Provided that the lower financial limit for advertisement on Procuring Agency’s website for open competitive bidding shall be the prescribed financial limit for request for quotations under clause (b) of rule 42; and

(2) All procurement opportunities over two million rupees should be advertised on the Procuring Agency’s website as well as in other print media or newspapers having wide circulation. The advertisement in the newspapers shall principally appear in at least two national dailies, one in English and the other in Urdu.

(3) The Procuring Agency shall ensure that the information posted on the website is complete for the purposes for which it has been posted, and such information shall remain available on that website until the closing date for the submission of bids.

13. Response time.-

(1) The procuring agency may decide the response time for receipt of bids or proposals (including proposals for pre-qualification) from the date of publication of an advertisement or notice, keeping in view the individual procurement’s complexity, availability and urgency. However, under no circumstances the response time shall be less than fifteen days for national competitive bidding and thirty days for international competitive bidding from the date of publication of advertisement or notice.

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All advertisements or notices shall expressly mention the response time allowed for that particular procurement along with the information for collection of bid documents which shall be issued till a given date, allowing sufficient time to complete and submit the bid by the closing date:

Provided that no time limit shall be applicable in case of emergency.

(2) The response time shall be calculated from the date of first publication of the advertisement in a newspaper or posting on the web site, as the case may be.

(3) In situations where publication of such advertisements or notices has occurred in both electronic and print media, the response time shall be calculated from the day of its first publication in the newspapers.

14. Exceptions.- It shall be mandatory for the Procuring Agency to advertise all procurement requirements exceeding prescribed financial limit which is applicable under sub-clause (i) of clause (b) of rule 42. However under following circumstances deviation from the requirement is permissible with the prior approval of the Government,-

(a) The proposed procurement is related to national security and its publication could jeopardize national security objectives; and

(b) The proposed procurement advertisement or notice or publication of it, in any manner, relates to disclosure of information, which is proprietary in nature or falls within the definition of intellectual property which is available from a single source.

PRE-QUALIFICATION, QUALIFICATION AND DIS-QUALIFICATION OF SUPPLIERS AND CONTRACTORS

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15. Pre-qualification of suppliers and contractors.-

(1) The procuring agency, prior to the floating of tenders, invitation to proposals or offers in procurement proceedings, may engage in pre-qualification of bidders in case of services, civil works, turnkey projects and in case of procurement of expensive and technically complex equipment to ensure that only technically and financially capable firms having adequate managerial capability are invited to submit bids. Such pre-qualification shall solely be based upon the ability of the interested parties to perform that particular work satisfactorily.

(2) The procuring agency while engaging in pre-qualification may take into consideration the following factors, namely:-

(a) Relevant experience and past performance;

(b) Capabilities with respect to personnel, equipment, and plant;

(c) Financial position;

(d) Appropriate managerial capability; and

(e) Any other factor that a procuring agency may deem relevant, not inconsistent with these rules.

16. Pre-qualification process.-

(1) The procuring agency engaging in pre-qualification shall announce, in the pre-qualification documents, all information required for pre-qualification including instructions for preparation and submission of the pre-qualification documents, evaluation criteria, list of documentary evidence required by suppliers or contractors to demonstrate their respective qualifications and any other information that the procuring agency deems necessary for pre-qualification.

(2) The procuring agency shall provide a set of pre-qualification documents to any supplier or contractor, on request and subject to payment of price, if any.

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Explanation.- For the purposes of this sub-rule price means the cost of printing and providing the documents only.

(3) The procuring agency shall promptly notify each supplier or contractor submitting an application to pre-qualify whether or not it has been pre-qualified and shall make available to any person directly involved in the pre-qualification process, upon request, the names of all suppliers or contractors who have been pre-qualified. Only suppliers or contractors who have been pre-qualified shall be entitled to participate further in the procurement proceedings.

(4) The procuring agency shall communicate to those suppliers or contractors who have not been pre-qualified the reasons for not pre-qualifying them.

17. Qualification of suppliers and contractors.-

The procuring agency, at any stage of the procurement proceedings, having credible reasons for or prima facie evidence of any defect in supplier’s or contractor’s capacities, may require the suppliers or contractors to provide information concerning their professional, technical, financial, legal or managerial competence whether already pre-qualified or not:

Provided that such qualification shall only be laid down after recording reasons therefore in writing. They shall form part of the records of that procurement proceeding.

18. Disqualification of suppliers and contractors.-

The procuring agency shall disqualify a supplier or contractor if it finds, at any time, that the information submitted by him concerning his qualification as supplier or contractor was false and materially inaccurate or incomplete.

19. Blacklisting of suppliers and contractors.-

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The procuring agency shall specify a mechanism and manner to permanently or temporarily bar, from participating in their respective procurement proceedings, suppliers and contractors who either consistently fail to provide satisfactory performances or are found to be indulging in corrupt or fraudulent practices. Such barring action shall be duly publicized on the web site of the Procuring Agency.

Provided that any suppler or contractor who is to be blacklisted shall be accorded adequate opportunity of being heard

METHODS OF PROCUREMENT

20. Principal method of procurement.-

Save as otherwise provided hereinafter, the procuring agency shall use open competitive bidding as the principal method of procurement for the procurement of goods, services and works.

21. Open competitive bidding.-

Subject to the provisions of rules 22 to 37 the procuring agency shall engage in open competitive bidding if the cost of the object to be procured is more than the prescribed financial limit which is applicable under sub-clause (i) of clause (b) of rule 42

22. Submission of bids.-

(1) The bids shall be submitted in a sealed package or packages in such manner that the contents are fully enclosed and cannot be known until duly opened.

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(2) The procuring agency shall specify the manner and method of submission and receipt of bids in an unambiguous and clear manner in the bidding documents.

23. Bidding documents.-

(1) The Procuring agency shall formulate precise and unambiguous bidding documents that shall be made available to the bidders immediately after the publication of the invitation to bid.

(2) For competitive bidding, whether open or limited, the bidding documents shall include the following, namely:-

(a) Invitation to bid;

(b) Instructions to bidders;

(c) Form of bid;

(d) Form of contract;

(e) General or special conditions of contract;

(f) Specifications and drawings or performance criteria (where applicable);

(g) List of goods or bill of quantities (where applicable);

(h) Delivery time or completion schedule;

(i) Qualification criteria (where applicable);

(j) Bid evaluation criteria;

(k) Format of all securities required (where applicable);

(l) Details of standards (if any) that are to be used in assessing the quality of goods, works or services specified; and

(m) Any other detail not inconsistent with these rules that the procuring agency may deem necessary.

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(3) Any information, that becomes necessary for bidding or for bid evaluation, after the invitation to bid or issue of the bidding documents to the prospective bidders, shall be provided in a timely manner and on equal opportunity basis. Where notification of such change, addition, modification or deletion becomes essential, such notification shall be made in a manner similar to the original advertisement.

(4) The procuring agency shall provide a set of bidding documents to any supplier or contractor, on request and subject to payment of price, if any.

Explanation.- For the purpose of this sub-rule price means the cost of printing and providing the documents only.

24. Reservations and preference.-

(1) The Procuring agency shall allow all prospective bidders to participate in procuring procedure without regard to nationality, except in cases in which any procuring agency decides to limit such participation to national bidders only or prohibit participation of bidders of some nationalities, in accordance with the policy of Federal Government.

(2) The Procuring agency shall allow for a preference to domestic or national suppliers or contractors in accordance with the policies of the Federal Government. The magnitude of price preference to be accorded shall be clearly mentioned in the bidding documents under the bid evaluation criteria.

25. Bid security.-

The procuring agency may require the bidders to furnish a bid security not exceeding five per cent of the bid price.

26. Bid validity.-

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(1) The procuring agency, keeping in view the nature of the procurement, shall subject the bid to a bid validity period.

(2) Bids shall be valid for the period of time specified in the bidding document.

(3) The procuring agency shall ordinarily be under an obligation to process and evaluate the bid within the stipulated bid validity period. However under exceptional circumstances and for reason to be recorded in writing, if an extension is considered necessary, all those who have submitted their bids shall be asked to extend their respective bid validity period. Such extension shall be for not more than the period equal to the period of the original bid validity.

(4) Bidders who,-

(a) Agree to extension of their bid validity period shall also extend the validity of the bid bond or security for the extended period of the bid validity;

(b) Agree to the procuring agency’s request for extension of bid validity period shall not be permitted to change the substance of their bids; and

(c) Do not agree to an extension of the bid validity period shall be allowed to withdraw their bids without forfeiture of their bid bonds or securities.

27. Extension of time for submission of bids.-

Where the procuring agency has already prescribed a deadline for the submission of bids and due to any reason the procuring agency finds it necessary to extend such deadline, it shall do so only after recording its reasons in writing and in an equal opportunity manner. Advertisement of such extension in time shall be done in a manner similar to the original advertisement.

OPENING, EVALUATION AND REJECTION OF BIDS

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28. Opening of bids.-

(1) The date for opening of bids and the last date for the submission of bids shall be the same. Bids shall be opened at the time specified in the bidding documents. The bids shall be opened at least thirty minutes after the deadline for submission of bids.

(2) All bids shall be opened publicly in the presence of the bidders or their representatives who may choose to be present, at the time and place announced prior to the bidding. The procuring agency shall read aloud the unit price as well as the bid amount and shall record the minutes of the bid opening. All bidders in attendance shall sign an attendance sheet. All bids submitted after the time prescribed shall be rejected and returned without being opened.

29. Evaluation criteria.-

The Procuring agency shall formulate an appropriate evaluation criterion listing all the relevant information against which a bid is to be evaluated. Such evaluation criteria shall form an integral part of the bidding documents. Failure to provide for an unambiguous evaluation criteria in the bidding documents shall amount to miss-procurement.

30. Evaluation of bids.-

(1) All bids shall be evaluated in accordance with the evaluation criteria and other terms and conditions set forth in the prescribed bidding documents. Save as provided for in sub-clause (iv) of clause (c) of rule 36 no evaluation criteria shall be used for evaluation of bids that had not been specified in the bidding documents.

(2) For the purposes of comparison of bids quoted in different currencies, the price shall be converted into a single currency specified in the bidding documents. The rate of exchange shall be the selling rate, prevailing on the

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date of opening of bids specified in the bidding documents, as notified by the State Bank of Pakistan on that day.

(3) A bid once opened in accordance with the prescribed procedure shall be subject to only those rules, regulations and policies that are in force at the time of issue of notice for invitation of bids.

31. Clarification of bids.-

(1) No bidder shall be allowed to alter or modify his bid after the bids have been opened. However the procuring agency may seek and accept clarifications to the bid that do not change the substance of the bid.

(2) Any request for clarification in the bid, made by the procuring agency shall invariably be in writing. The response to such request shall also be in writing.

32. Discriminatory and difficult conditions.-

Save as otherwise provided, the procuring agency shall not introduce any condition, which discriminates between bidders or that is considered to be met with difficulty. In ascertaining the discriminatory or difficult nature of any condition reference shall be made to the ordinary practices of that trade, manufacturing, construction business or service to which that particular procurement is related.

33. Rejection of bids.-

(1) The procuring agency may reject all bids or proposals at any time prior to the acceptance of a bid or proposal. The procuring agency shall upon request communicate to any supplier or contractor who submitted a bid or proposal, the grounds for its rejection of all bids or proposals, but is not required to justify those grounds.

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(2) The procuring agency shall incur no liability, solely by virtue of its invoking sub-rule (1) towards suppliers or contractors who have submitted bids or proposals.

(3) Notice of the rejection of all bids or proposals shall be given promptly to all suppliers or contractors that submitted bids or proposals.

34. Re-bidding.-

(1) If the procuring agency has rejected all bids under rule 33 it may call for a re-bidding.

(2) The procuring agency before invitation for re-bidding shall assess the reasons for rejection and may revise specifications, evaluation criteria or any other condition for bidders as it may deem necessary.

35. Announcement of evaluation reports.-

The Procuring agency shall announce the results of bid evaluation in the form of a report giving justification for acceptance or rejection of bids at least ten days prior to the award of procurement contract.

36. Procedures of open competitive bidding.-

Save as otherwise provided in these rules the following procedures shall be permissible for open competitive bidding, namely:-

(a) Single stage – one envelope procedure.-

Each bid shall comprise one single envelope containing, separately, financial proposal and technical proposal (if any). All bids received shall be opened and evaluated in the manner prescribed in the bidding document.

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(b) Single stage – two envelope procedure.-

(i) The bid shall comprise a single package containing two separate envelopes. Each envelope shall contain separately the financial proposal and the technical proposal;

(ii) The envelopes shall be marked as “FINANCIAL PROPOSAL” and “TECHNICAL PROPOSAL” in bold and legible letters to avoid confusion;

(iii) Initially, only the envelope marked “TECHNICAL PROPOSAL” shall be opened;

(iv) The envelope marked as “FINANCIAL PROPOSAL” shall be retained in the custody of the procuring agency without being opened;

(v) The procuring agency shall evaluate the technical proposal in a manner prescribed in advance, without reference to the price and reject any proposal which does not conform to the specified requirements;

(vi) During the technical evaluation no amendments in the technical proposal shall be permitted;

(vii) The financial proposals of bids shall be opened publicly at a time, date and venue announced and communicated to the bidders in advance;

(viii) After the evaluation and approval of the technical proposal the procuring agency, shall at a time within the bid validity period, publicly open the financial proposals of the technically accepted bids only. The financial proposal of bids found technically non-responsive shall be returned un-opened to the respective bidders; and

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(ix) The bid found to be the lowest evaluated bid shall be accepted.

(c) Two stage bidding procedure.-

First stage

(i) The bidders shall first submit, according to the required specifications, a technical proposal without price;

(ii) The technical proposal shall be evaluated in accordance with the specified evaluation criteria and may be discussed with the bidders regarding any deficiencies and unsatisfactory technical features;

(iii) After such discussions, all the bidders shall be permitted to revise their respective technical proposals to meet the requirements of the procuring agency;

(iv) The procuring agency may revise, delete, modify or add any aspect of the technical requirements or evaluation criteria, or it may add new requirements or criteria not inconsistent with these rules:

Provided that such revisions, deletions, modifications or additions are communicated to all the bidders equally at the time of invitation to submit final bids, and that sufficient time is allowed to the bidders to prepare their revised bids:

Provided further that such allowance of time shall not be less than fifteen days in the case of national competitive bidding and thirty days in the case of international competitive bidding;

(v) Those bidders not willing to conform their respective bids to the procuring agency’s technical requirements may be allowed to withdraw from the bidding without forfeiture of their bid security;

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Second stage

(vi) The bidders, whose technical proposals or bids have not been rejected and who are willing to conform their bids to the revised technical requirements of the procuring agency, shall be invited to submit a revised technical proposal along with the financial proposal;

(vii) The revised technical proposal and the financial proposal shall be opened at a time, date and venue announced and communicated to the bidders in advance; and

(viii) The revised technical proposal and the financial proposal shall be evaluated in the manner prescribed above. The bid found to be the lowest evaluated bid shall be accepted:

Provided that in setting the date for the submission of the revised technical proposal and financial proposal the procuring agency shall allow sufficient time to the bidders to incorporate the agreed upon changes in the technical proposal and prepare their financial proposals accordingly.

(d) Two stage - two envelope bidding procedure.-

First stage

(i) The bid shall comprise a single package containing two separate envelopes. Each envelope shall contain separately the financial proposal and the technical proposal;

(ii) The envelopes shall be marked as “FINANCIAL PROPOSAL” and “TECHNICAL PROPOSAL” in bold and legible letters to avoid confusion;

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(iii) Initially, only the envelope marked “TECHNICAL PROPOSAL” shall be opened;

(iv) The envelope marked as “FINANCIAL PROPOSAL” shall be retained in the custody of the procuring agency without being opened;

(v) The technical proposal shall be discussed with the bidders with reference to the procuring agency’s technical requirements;

(vi) Those bidders willing to meet the requirements of the procuring agency shall be allowed to revise their technical proposals following these discussions;

(vii) Bidders not willing to conform their technical proposal to the revised requirements of the procuring agency shall be allowed to withdraw their respective bids without forfeiture of their bid security;

Second stage

(viii) after agreement between the procuring agency and the bidders on the technical requirements, bidders who are willing to conform to the revised technical specifications and whose bids have not already been rejected shall submit a revised technical proposal and supplementary financial proposal, according to the technical requirement;

(ix) The revised technical proposal along with the original financial proposal and supplementary financial proposal shall be opened at a date, time and venue announced in advance by the procuring agency:

Provided that in setting the date for the submission of the revised technical proposal and supplementary price proposal the procuring agency shall allow sufficient time to the bidders to incorporate the agreed upon changes in the technical proposal and to prepare the required supplementary financial proposal; and

(x) The procuring agency shall evaluate the whole proposal in accordance with the evaluation criteria and the bid found to be the lowest evaluated bid shall be accepted.

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37. Conditions for use of single stage two envelope, two stage and two stage two envelope bidding procedures.-

Single stage one envelope bidding procedure shall ordinarily be the main open competitive bidding procedure used for most of the procurement. Other appropriate procedures of open competitive bidding shall be selected in the following circumstances, namely:-

(a) Single stage two envelope bidding procedure shall be used where the bids are to be evaluated on technical and financial grounds and price is taken into account after technical evaluation;

(b) Two stage bidding procedure shall be adopted in large and complex contracts where technically unequal proposals are likely to be encountered or where the procuring agency is aware of its options in the market but, for a given set of performance requirements, there are two or more equally acceptable technical solutions available to the procuring agency; and

(c) Two stage two envelope bidding method shall be used for procurement where alternative technical proposals are possible, such as certain type of machinery or equipment or manufacturing plant

ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS

38. Acceptance of bids.-

The bidder with the lowest evaluated bid, if not in conflict with any other law, rules, regulations or policy of the Federal Government or the Provincial Government, shall be awarded the procurement contract, within the original or extended period of bid validity.

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39. Performance guarantee.-

Where needed and clearly expressed in the bidding documents, the procuring agency shall require the successful bidder to furnish a performance guarantee which shall not exceed ten per cent of the contract amount.

40. Limitation on negotiations.-

Save as otherwise provided there shall be no negotiations with the bidder having submitted the lowest evaluated bid or with any other bidder:

41. Confidentiality.-

The procuring agency shall keep all information regarding the bid evaluation confidential until the time of the announcement of the evaluation report in accordance with the requirements of rule 35.

42. Alternative methods of procurements.-

The procuring agency may utilize the following alternative methods of procurement of goods, services and works, namely:-

(a) Petty purchases.-

The Procuring agency may provide for petty purchases where the object of the procurement is below the financial limit of twenty five thousand rupees. Such procurement shall be exempt from the requirements of bidding or quotation of prices:

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Provided that the procuring agencies shall ensure that procurement of petty purchases is in conformity with the principles of procurement prescribed in rule 4:

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Provided further that the procuring agency convinced of the inadequacy of the financial limit prescribed for petty purchases in undertaking their respective operations may approach the Provincial Government for enhancement of the same with full and proper justifications.

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(b) Request for quotations.-The procuring agency shall engage in this method of procurement only if the following conditions exist, namely:- (i) the cost of object of procurement is below the prescribed limit of one hundred thousand rupees:

Provided that the respective Boards of Autonomous bodies are authorized to fix an appropriate limit for request for quotations method of procurement subject to a maximum of rupees five hundred thousand which will become financial limit under this sub-rule:

(ii) The object of the procurement has standard specifications;

(iii) Minimum of three quotations have been obtained; and

(iv) The object of the procurement is purchased from the supplier offering the lowest price:

Provided that the procuring agency convinced of the inadequacy of the financial limit prescribed for request for quotations in undertaking their respective operations may approach the Federal Government for enhancement of the same with full and proper justifications;

(c) direct contracting.- A procuring agency shall only engage in direct contracting if the following conditions exist, namely:-

(i) the procurement concerns the acquisition of spare parts or supplementary services from original manufacturer or supplier:

Provided that the same are not available from alternative sources;

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(ii) only one manufacturer or supplier exists for the required procurement:

Provided that the procuring agencies shall specify the appropriate fora, which may authorize procurement of proprietary object after due diligence; and

(iii) Where a change of supplier would oblige the procuring agency to acquire material having different technical specifications or characteristics and would result in incompatibility or disproportionate technical difficulties in operation and maintenance:

Provided that the contract or contracts do not exceed three years in duration;

(iv) Repeat orders not exceeding fifteen per cent of the original procurement;

(V) In case of an emergency: Provided that the procuring agency shall specify appropriate fora vested with necessary authority to declare an emergency;

(VI) When the price of goods, services or works is fixed by the Government or any other authority, agency or body duly authorized by the Government, on its behalf, and

(VII) For purchase of motor cars from local original manufacturers or their authorized agents at manufacturer’s price.

(d) Negotiated tendering.-

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The procuring agency may engage in negotiated tendering with one or more suppliers or contractors with or without prior publication of a procurement notification. This procedure shall only be used when,-

(i) the supplies involved are manufactured purely for the purpose of supporting a specific piece of research or an experiment, a study or a particular development;

(ii) For technical or artistic reasons, or for reasons connected with protection of exclusive rights or intellectual property, the supplies may be manufactured or delivered only by a particular supplier;

(iii) For reasons of extreme urgency brought about by events unforeseeable by the procuring agency, the time limits laid down for open and limited bidding methods cannot be met. The circumstances invoked to justify extreme urgency must not be attributable to the procuring agency:

Provided that the procuring agency desirous of using negotiated tendering as a method of procurement shall record its reasons and justifications in writing for resorting to negotiated tendering and shall place the same on record.

43. On account payments.-

The procuring agency shall make prompt payments to suppliers and contractors against their invoices or running bills within the time given in the conditions of the contract, which shall not exceed thirty days.

44. Entry into force of the procurement contract.-

A procurement contract shall come into force,-

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(a) Where no formal signing of a contract is required, from the date the notice of the acceptance of the bid or purchase order has been given to the bidder whose bid has been accepted. Such notice of acceptance or purchase order shall be issued within a reasonable time; or

(b) Where the procuring agency requires signing of a written contract, from the date on which the signatures of both the procuring agency and the successful bidder are affixed to the written contract. Such affixing of signatures shall take place within a reasonable time:

Provided that where the coming into force of a contract is contingent upon fulfillment of a certain condition or conditions, the contract shall take effect from the date whereon such fulfillment takes place.

45. Closing of contract.-

(1) Except for defect liability or maintenance by the supplier or contractor, as specified in the conditions of contract, performance of the contract shall be deemed close on the issue of over all delivery certificate or taking over certificate which shall be issued within thirty days of final taking over of goods or receiving the deliverables or completion of works enabling the supplier or contractor to submit final bill and the auditors to do substantial audit.

(2) In case of defect liability or maintenance period, defect liability certificate shall be issued within thirty days of the expiry of the said period enabling the supplier or contractor to submit the final bill. Except for unsettled claims, which shall be resolved through arbitration, the bill shall be paid within the time given in the conditions of contract, which shall not exceed sixty days to close the contract for final audit.

MAINTENANCE OF RECORD AND FREEDOM OF INFORMATION

46. Record of procurement proceedings.-

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(1) The Procuring Agency shall maintain a record of its respective procurement proceedings along with all associated documentation for a minimum period of five years.

(2) Such maintenance of record shall be subject to the regulations framed in this regard from time to time.

47. Public access and transparency.-

As soon as a contract has been awarded the procuring agency shall make all documents related to the evaluation of the bid and award of contract public:

Provided that where the disclosure of any information related to the award of a contract is of proprietary nature or where the procuring agency is convinced that such disclosure shall be against the public interest, it can withhold only such information from public disclosure.

REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES

48. Redressal of grievances by the procuring agency.-

(1) The procuring agency shall constitute a committee comprising of odd number of persons, with proper powers and authorizations, to address the complaints of bidders that may occur prior to the entry into force of the procurement contract.

(2) Any bidder feeling aggrieved by any act of the procuring agency after the submission of his bid may lodge a written complaint concerning his

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grievances not later than fifteen days after the announcement of the bid evaluation report under rule 35.

(3) The committee shall investigate and decide upon the complaint within fifteen days of the receipt of the complaint.

(4) Mere fact of lodging of a complaint shall not warrant suspension of the procurement process.

(5) Any bidder not satisfied with the decision of the committee of the procuring agency may lodge an appeal in the relevant court of jurisdiction.

49. Arbitration.-

(1) After coming into force of the procurement contracts, disputes between the parties to the contract shall be settled by arbitration.

(2) The procuring agency shall provide for a method of arbitration in the procurement contract, not inconsistent with the laws of Pakistan.

50. Mis-procurement.-

Any unauthorized breach of these rules shall amount to mis-procurement.

51. Overriding effect.-

The provisions of these rules shall have effect notwithstanding anything to the contrary contained in any other rules concerning public procurements: Provided that the prevailing rules and procedures will remain applicable only for the procurement of goods, services and works for which notice for invitation of bids had been issued prior to the commencement of these rules unless the procuring agency deems it appropriate to re-issue the notice for the said procurement after commencement of these rules

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______________________________________________________________

Strategic Development Plan and Financial Rules, 2009 In exercise of the power under section 43 of the Punjab Development of Cities Act, 1976 the Provincial Government is pleased to make the following Rules. 1. Short Title and Commencement:

(1). These Rules shall be called the Water and Sanitation Authority Strategic Development Plan and Financial Rules, 2009.

2. Definitions: (1). These Rules, unless there is anything repugnant in the subject or context:-

a. Authority shall mean Water and Sanitation Authority (WSA)

b. Strategic Development Plan (SDP) c. “Water Supply” d. “Sanitation” e. “Sewerage Services” f. Funding Proposal

3. Development of SDP.

(1). WSA shall develop an SDP for the next three to five years. (2). In preparing the SDP, WSA shall provide for the following: i. holistic planning ii. ensuring better quality of service iii. to develop a financial plan to support the SDP. iv. ………. v. ………. (3). In preparing SDP, WSA shall ensure public participation and if required technical support from experts or consultants. (4) WSA shall coordinate and seek advice from the Development Authority in preparing SDP.

4. Approval of SDP and Release of funds:- (1). SDP shall be placed before the Government for approval.

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(2). Upon approval of the SDP by the Government the funds required under the SDP shall also be approved.

5. Funding

(1). Funds required for the SDP shall be approved in bulk for the term of the SDP. (2) Notwithstanding anything in the Punjab Financial Rules, the funding of the SDP has to be in accordance with these Rules only.

6. Directions of the Government: (1). The Government may issue any directions to WSA in order to execute the purposes of these Rules.

__________________________________________________________________

Performance Monitoring and Oversight Rules, 2009 In exercise of the power under section 43 of the Punjab Development of Cities Act, 1976 the Provincial Government is pleased to approve the following Rules.

1. Short title and Commencement: These Rules shall be called the

Performance Monitoring and Oversight Rules , 2009 and shall come into effect immediately.

2. Definition: a. “Key Performance Indicators” mean key performance

indicators to assess and measure the performance of WSA in meeting he Level of Service and shall include process indicators.

b. “Monitoring Committee” means a committee constituted within the Housing Department of the Government to monitor the performance of the Authority.

c. “Levels of Service’ means the level of service which WSA should achieve for the services.

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d. “Services” mean water supply, sanitation and water drainage services.

e. 3. Performance Indicators & Levels of Service

2) Government has set out the Levels of Service for WSA in

Schedule -I 3) Government has set out performance indicators in Schedule-

II. 4) In setting the performance indicators the Government shall be

guided by the following principles: a. to measure the outcomes of greatest relevance to the

customer; b. number of operational connections; c. availability and reliability of water supply; d. pressure and quality of water supplied; e. cleanliness of streets; f. amount of detritus in open drains; g. timelines and precisions of billing; h. time taken and effectiveness of responses to request for

connections/ disconnection and complaints.

5) The Government will from time to time amend Schedule-I and II in order to progressively refine the Levels of Service and the corresponding indicators.

4. Monitoring & Incentive payment

1) Monitoring Committee will monitor the performance of WSA

in achieving the Levels of Service on the basis of key performance indicators.

6) Monitoring Committee will assess the data biannually and make a performance report to the Government.

7) Monitoring Committee will collect information from various sources to assess the Level of Service. Some of the sources of information are:

a. Customers b. Community committees c. Union Council an TMA monitoring committees d. Other statutory authorities (e.g. EPA)

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e. Independent verifiers. 8) Government on the basis of the performance report may take

the following steps; a. Incentive payments in case of increase in Level of

Service or on achieving target performance indicators as set out by the Government from year to year or;

b. Initiation of inquiry by the special committee in case of decline in Levels of Service.

5. _____________________________

Schedule-I

Levels of Service

1. Service Coverage for all communities within the city. 2. Connection rate (minimum) within the area of service coverage. 3. Continuity of Supply- Continuous 24 hours per day 4. Water Quality within the WHO guideline limits 5. Available Pressure at the customer’s service connection. 6. Flow Rate – min flow rate of 5 l/min at the customer’s ground

level tank 7. Reliability of supply 8. Metering of sources and supply. 9. Waste Water Services

a. Service Coverage b. Connection rate c. Flooding (Hydraulic) d. Flooding (Equipment failure) e. Industrial connections

Schedule-II Perfomance Indicators

1. Master Plan for water ad waste-water service prepared. 2. Business plan in accordance with requirements of the Regulator and

annually updated targets set and performance measured. 3. Human resources – plan for internal organization 4. Operations and maintenance plan

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5. Customer relations plan 6. Asset management plan 7. Key Senior Managers recruited through open and transparent process

and on market based salary 8. Basic inventory if equipment and facilities completed. 9. Networked systems mapped and recorded on a GIS data base. 10. Key secondary level manager recruited 11. Key secondary level managers trained 12. Survey of existing connections completed and cleaned. 13. Data on registered water connections available 14. Standard Operating Procedures (SOPs) for key tasks available 15. Standard Operating Procedures (SOPs) for all tasks available 16. Billing Systems in all towns computerized 17. Bills issued to all registered consumers on regularly basis 18. Water safety plans & continuous monitoring of water quality system 19. 100% Bulk Metering and 30% consumer metering. 20. Volumetric tariff notified and billed 21. 10% non-revenue water reduction from baseline 22. Master planning exercise started. 23. Customer care centre established 24. Rehabilitation of existing water supply and sewerage system (in three

years) 25. Well designed communication & education programme 26. Existing OHR commissioned. 27. Effective accounting and financial reporting systems 28. Effective customer database and billing systems 29. Completed asset register and geographical information system 30. Effective system for logging progress of requests for new

connections/ disconnections and complaints. 31. Increased water production 32. Reduced leakage 33. Increased availability of water 34. More efficient energy use 35. Increased amount of waste collected 36. Reduction in waste left around collection points 37. More efficient use of vehicles 38. Improved primary collection efficiency 39. Proper waste disposal system 40. Improved drainage cover 41. Effective performance based obligations and payment system

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42. Participation in bench marking system ____________________________________________

Tariff Adjustment and Business Plan Rules

Have gone through Fichtner’s report still unable to frame rules.

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ANNEX-A

Review of legal framework

Task-One is to provide options for the corporatization of WASA-G. However, a brief overview of the existing legal framework is essential.

The format of TASK-one is as follows:

1. A brief overview of the existing legal framework governing Water and Sanitation Services in Pakistan with special focus on Punjab.

2. Issues faced by WASA-G 3. Various possible models/options for WASA-G

Existing Legal Framework of WSS in Pakistan

1. Constitution of Pakistan 197381:

Water and sanitation is a provincial subject according to the Constitution

hence only the Provinces have the competence to legislate on it82. Federal Government has, however, legislated and made policies in respect of water under the permissible domain of environment and ecology83.

81 Constitution of the Islamic Republic of Pakistan, 1973 82 Article 24(3)(e)(ii), 63(2), 155, 157 discuss water under the Constitution.

83 “Environment and ecology” appear in the concurrent list of the Constitution therefore authorizing both the Federal and the Provincial Legislature to make laws.

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FEDERAL LAWS

2. West Pakistan Water and Power Development Authority Act, 1958 (“WAPDA”)

An Act for the development and use of water and power resources of Pakistan. It establishes an Authority and one of the functions of the Authority is to frame schemes for the Province for irrigation, water supply and drainage84. In practice, however, WAPDA is concerned with the generation of hydel power.

3. Pakistan Environmental Protection Act, 1997 4. Indus River System Authority Act, 1992 (“IRSA”) 5. Water Accord, 199185 6. National Environment Quality Standards (NEQS)

Policies

The Federal Government has drafted the following policies;

1. Draft National Drinking Water Policy 2. National Sanitation Policy 3. Draft National Water Policy 4. Drinking water standards for Pakistan, 2007 5. National surface water classification criteria, 2007

84 Section 8 of WAPDA Act 85 deals with apportionment of Indus River Waters between the provinces relevant for water rights may be but not for water supply and sanitation.

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Federal Institutions/ Authorities:

1. Ministry of Environment, Local Government & Rural Development It has the mandate to make National policy, plans and programs regarding:

a. environment planning, pollution and ecology

b. housing, physical planning and human settlements including urban water supply, sewerage and drainage.

2. Pakistan Environment Protection Agency is established by the Ministry of Environment. It is an attached department of the Ministry of environment and is responsible to implement the Pakistan Environment Protection Act, 1997.

3. National Coordinating Committee on Water and Sanitation (NCCWS) is part of the Environment Protection Agency. NCCWS is primarily responsible for the enforcement of water supply and sanitation standards. It works closely with UNICEF. It is a committee with representation from the MoE, Ministry of Health, other involved ministries and Provincial Government.

4. Ministry of Water and Power Water is a provincial subject however the government of Pakistan has also to perform number of functions and responsibilities, mostly relating to inter-provincial matters. Ministry of water and power looks into matters relating to water and power resources. It carries out these functions through Water and Power Development Authority, Indus River Systems Authority (IRSA)

5. Pakistan Council for Research in Water Resources

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it has launched a National Program for monitoring the quality of water in Pakistan. The main objective is to establish a permanent water quality monitoring network in the country to observe changes in the surface and ground water quality as well as ground water levels

6. Pakistan Standard Quality Control Authority it is responsible for setting standards for water for different uses. There are no formally established drinking water standards in Pakistan. WHO Guidelines are used by All PHED and Environment Departments.

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PROVINCIAL LAWS

In the Province of Punjab, Laws that are directly concerned with WSS are as follows;

1. Punjab Local Government Ordinance, 2001 2. Punjab Local Government Water Supply and Sanitation Schemes

(Development and Operation) Rules, 2008 3. Punjab Development of Cities Act, 1976 4. Lahore Development Authority Act, 1975 5. Building regulations

Other ancillary laws that deal with water are:

6. Canal and Drainage Act, 1873 7. Punjab Minor Canal Act, 1905 8. Soil Reclamation Act, 1952 9. Punjab Water Users’ Associations Ordinance, 1981 10. Punjab Irrigation and Drainage Authority Act, 1997

Policy:

Punjab Urban Water and Sanitation Policy, 2007

Punjab Development of Cities Act, 1976 (PDCA)

PDCA provides for a comprehensive system of planning and development in order to improve the quality of life in the cities of Punjab….. to ensure optimum utilization or resources…… and to evolve policies and programs, relating to the improvement of the environment of housing, ….water

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supply, sewerage, drainage , solid waste disposal and matter connected therewith and incidental thereto. The Authority is to “develop, operate and maintain water supply, sewerage and drainage system within the area86” The law provides that “Authority Fund will have two separate heads namely “Urban Development” and “Water Supply and Sanitation”87. The Authority collects rates, fees and other charges for water supply, sewerage and drainage schemes.

The Authority shall have the exclusive right to use ground water resources within the area”; no person, without the permission of the Authority shall install a tube well for commercial purposes, ……; the Authority may levy rates on the persons …..who have installed….. tube wells for commercial purposes, within its jurisdiction.88 The Authority can establish an agency/ agencies and entrust to it such powers and functions as it may deem fit with the approval of the government89

Authorities created under PDCA, 1976:

Gujranwala Development Authority:

Gujranwala Development Authority was created in 1989, under section 4 of the Punjab Development of Cities Act, 1976 (Notification).

The Authority has two wings i.e. Urban Development & WASA. WASA is headed by a Managing Director and supply of potable water and provisions of adequate sanitation are provided by WASA in the city of Gurjranwala. Powers of WASA- G include development, maintenance and operation of water supply, sewerage and drainage system (section 7 of the Punjab Development of Cities Ordinance, 1976

86 section 7 (2) (iii) 87 section 26 (3) 88 section 28 89 section 7(2) (xvi)

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Faisalabad Development Authority:

Faisalabad Development Authority (FDA) was created on 20-10-1976 under the Punjab Development of Cities Act, 1976. WASA-F was created in 1978 as an agency of FDA for planning, designing, development and maintenance of water supply sewerage and draining system in Faisalabad through various directorates established for the purpose to accomplish the assignment.

Rawalpindi Development Authority

Water and Sanitation Agency is the division of Rawalpindi Development Authority and it is administered by the district government

WASA is responsible for the continuous monitoring, management, operation and maintenance of both the water supply and waste water management.

Multan Development Authority (MDA:

MDA was established on October 22, 1976 under the Punjab Development of Cities Act, 1976 it is a successor body of Multan Improvement Trust (MIT), which was established in 1944 under Punjab Town Improvement Act, 1922.

In April 1992, Water & Sanitation Agency (WASA) was created to provide better services to Multan vicinity in water supply and sanitation sector. Prior to enactment of Local Government Ordinance of 2001, MDA was under direct administration of Government of Punjab, Minister of HP&EP being head of Governing Body. After LGO 2001, the City District Nazim is head of Governing Body and all policy matters are being decided locally.

Local Government Ordinance, 2001 (PLGO)

Water and Sanitation services under PLGO:

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Main responsibility to provide, manage, operate, maintain and improve the municipal infrastructure and services which include water supply and control and development of water sources, other than systems maintained by the Union and Village Councils and; sewage and sewage treatment and disposal; storm water drainage; sanitation and solid waste collection and sanitary disposal of solid, liquid, industrial and hospital waste lie with the Tehsil and Town Municipal Administration.90

Institutions/ Authorities

Department of HUD & PHED of the Government of the Punjab.

PHED is responsible for the following:

i. The Lahore Development Authority, 1975 and Development of Cities Act, 1976

ii. Water supply, drainage and sanitary schemes

Planning and Development Department:

P & D Department and Punjab Provincial Finance Commission are also important institutions for WSS with respect to funding investments. The P & D Department has a significant impact on the WSS through the control over the budget allocations to investment plans coming from local government.

Recently, the P& D Department has created a new section called the Municipal Services Policy and Monitoring Unit to deal with all issues of the WSS and solid waste management from a policy and program point of view.

90 section 54 (h) and 54-A (p)

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LAHORE.

Punjab Environment Protection Department:

Responsible to maintain water quality and regulate water pollution issues from various sources.

LG & RD Department:

The LG & RD is the administrative department for all affairs of the local government. This makes the supervision of WSS an indirect responsibility of LG & RD. since, however, the LG & RD has little or no technical capabilities, the PHED is still involved, without a clear mandate though.

Finance Department:

Finance Department and Provincial Finance Commission are also involved in the process of financing sector investments

Local Institutions

Water and Sanitation Agency:

WASAs operate in their own service areas in five cities of Punjab. Outside their service area the responsibility shifts over to TMAs. Authorities under the PDCA and therefore the Agencies are under the Administrative and Financial Control of the Local Government91

91 Section 36

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LAHORE.

Other provinces:

Current Water and Sanitation Laws in Sindh

• Karachi Water & Sewerage Board Act, 1996 (Act X of 1996)92

• Sindh Local Government Ordinance, 2001 (Ordinance XXVII of 2001) {Sec-54, h (i) & (ii)}

Status under KW&SB, 1996)

• Autonomous body with its own Board members

• Chairman & Vice-Chairman are appointed by the Government

• Managing Director who is also a board member. He is appointed by the Government and he is the Chief Executive of the Board

• Since 1996, KW&SB created under the KW&SB Act, 1996 deals with distribution of water & collection of sewerage in Karachi

• Since this Act has not been repealed after the devolution under SLGO, 2001both the entities continue to co-exist

92 Karachi Water & Sanitation Board created under the Sindh Local Government Ordinance 1979 chapter XVI, which was repealed by the section 20 of KW&SB Act,1996. Some repealed water and sanitation Laws

in Sindh

i. Karachi Joint Water Board Ordinance, 1949 (repealed by Karachi development Authority Order, 1957)

ii. Karachi Development Authority Order,1957 (chapter VII of the KDA order, 1957 dealing with the management of water by the KDA was repealed by section 147 of the SLG Ordinance, 1979)

iii. Karachi Water Management Board ordinance, 1981 (repealed) iv. Sindh Local Government Ordinance, 1979 (it created the first KW&SB when sections 121 to148

were added by the Sindh Local Government (Amendment) Ordinance, 1983. It was repealed by sec 196 of the SLGO, 2001

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• The City Nazim functions as Chairman of the Board

• The Executive District Officer (Sanitation & Water) perform the role of Managing Director

• The process of devolution at the local level to TMAs is under process

In Peshawar water and sanitation services were given by the Peshawar Development Authority created under the NWFP Urban Planning Ordinance 1978, however after the promulgation of NWFP Local Government Ordinance, 2001, under section 54(3) the CD & MD was established to perform the functions of Peshawar Development Authority and macro municipal functions through a notification dated 14-5-2002. That CD & MD is a local Authority performing its functions with in the limits of urban area of Peshawar city. Its main functions are to maintain public parks, construction and maintenance of roads, water supply, and sanitation etc with in the specified area.

Balochistan WSS:

Public Health Engineering

Up to 1970 priorities were accorded to provision of drinking water to major towns like Quetta, Sibi, Loralai and Zhob. Rural population remained deprived of safe drinking water and was compelled to take drinking water from dug-wells, spring, stagnant pools, and rain/flood water collected in ponds. In addition to major towns, drinking water facilities were only extended either to the Defense Personnel or government colonies with a nominal water supply provision to civilian population annexed to the towns.

After creation of the province of Balochistan, small water supply schemes were planned and maintained by the MES/ B&R/Communication and Works department. Later on the same were transferred to the Irrigation & Power (I&P) Department. A total number of 265 of such schemes were completed till 1987.

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As the work load increased, situation demanded that a new department may be formed; hence, in 1987, Public Health and Engineering Department (PHED), Government of Balochistan was created out of I&P department.

Soon after the establishment of PHE department, it constructed four hundred and twenty four (424) mechanized water supply schemes. By 1992, such schemes totaled 701. As the number of completed schemes rose, the provincial government faced the scarcity of funds that limited its contribution to funds for operation and maintenance (O&M) water supply schemes. In 1992, Social Action Program (SAP) started with the initiative of Government of Pakistan and Multi Donor consortium through the World Bank. SAP introduced the concept of community participation so as to lessen burden of O&M on the government. Previously, O&M was responsibility of PHE department. The idea of ccommunity participation revolved around some sharing from the beneficiary communities, right from conceptualisation stage to its operation and maintenance. In 1995, PHE Department, Government of Balochistan formulated a “Uniform Policy”, which clearly stated that thence forward PHE Department will spare no funds for O&M of newly constructed water supply schemes and that O&M will be the responsibility of the beneficiaries. Under SAP, during 1992-97, seven hundred and ten (710) water supply schemes were constructed. Out of total 1740 schemes, 715 schemes have been handed over to the communities based on Uniform Policy.

Mission Statement

To facilitate the deprived rural population to have access to safe drinking water in order to eliminate sufferings of women fetching drinking water from far flung areas and to eradicate water borne diseases

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LAHORE.

ANNEX B IMPORTANT THEMES WATER RIGHTS For conservation of water and its equitable and sustainable use and distribution.

New Use o Wells or pumping of private water from the public common

groundwater resource shall not be allowed. Will be an offence and in violation of the public trust doctrine.

o Wells can be installed after issuance of permits by the corporation.

o Permits to be granted on the following statutory criteria only:

For personal need if water supply is not supplied as yet by the corporation

Water quality in the area

Level of the water table in the area

Only metered wells or pumps

Subject to an acquifer charge

With a time frame subject to inspection and renewal of license or permit.

No person has the right to abstract water from under his land. The age old common law principle of owning everything under the land is now obsolete and needs to be changed.

No short term pumping allowed for purposed of construction, etc

Existing users o Register with the corporation o Power to shut down wells if the supply is made available by the

corporation o Metered- on self financing basis o Pay additional acquifer charges- Example: mineral water

factories will have to seek permission or pay charges for drawing water from the common reservoir that belongs to all.

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o Corporation can set up water pumping and OHR in the industrial area to avoid individual water wells and water pumps even if they are metered.

o Metering alone will not help and might breed corruption – the supply must be from the corporation.

CONSERVATION OF FRESHWATER RESOURCE

o Recycling o Sewerage treatment o Drinking water distinguished from other water supply o Encouraging private treatment plants o Water planning in building regulations- recycled water to be

used for flushing and gardening in every property. o Metering essential – to avoid non-revenue water. o Rain Water Harvesting – a mandatory requirement in urban

planning /building regulations o Awareness campaigns o Capture the rain runoff water by having water planning (e.g.,

Changi Airport in Singapore) o High tariff for excessive use o Water supply to be need based.

WATER SUPPLY BASED ON WATER QUALITY STANDARDS

o Setting up of water standards for:

Drinking water

Recycled water

Treatment plant

Hygiene and safety of employees

Bottled water

Standards for release of wastewater for irrigation or thrown into the water bodies.

SANITATION

o Sewerage to be treated o Water recycled for toilets use and gardening and industrial use o Better technologies o Storm water drains

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o Energy audits to reduce energy consumption at the pumping stations

HUMAN RESOURCE - STAFF AND EMPLOYEES

o Human Resource Plan o Contractual o Market based salaries o Performance to be monitored o Monetary Incentives based on performance o Skill o Training and education o Safety conditions (sewer staff) o Developing a water service cadre

FINANCE

Sources of revenue

o Tariff (basic lifeline tariff covering and then increasing tariff) o Water charges on wells and pumps o Funding / subsidy by the Provincial Government o UIP tax share o Development of five year budgets o Business plans o Authority to ensure smooth and regular funding to

corporations on the basis of performance and development benchmarks.

o Standard funding procedures to be shelved. ENVIRONMENTAL SAFEGUARDS

o Integrated plan to safeguard and help recharge the fresh water resource

o Disposal in water bodies after sewerage treatment o Industrial effluents to be treated by the industry before release o Agriculture- pesticides o Sewerage treatment

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LAHORE.

o Water supply audit –leakages in pipes o Landfills- solid waste o Water quality

ASSETS AND OWNERSHIP

o All assets of WASA or Local Government deemed to be transferred to the Corporation under the law.

PUBLIC COMPLAINT CELL – ADVISORY BOARD RECOVERY AND COLLECTION

o Water Magistrates/courts

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LAHORE.

ANNEX C FIELD VISIT REPORT TO WASA-G DATED________

VISIT REPORT of WASA-G

1. Complaint Cell

A complaint cell was there for receiving complaints from the consumers.

14 to 16 complaints received daily.

Most complaints are regarding stoppage of water & leakage of pipes.

After receiving the complaint the concerned person forwarded the same to relevant zone.

2. Service Area

30% area is covered by WASA G (actual is 27%)

65% piped Sewerage

Remaining 70% of area is extracting water on their own.

3. Source of Water

100 % groundwater

4. Contamination in water

Most of the drinking water is clear but in some areas the water is contaminated.

WASA bored upto 450 or 500 ft.

After boring the pipe which takes the water to source i.e. tube well or storage tanks is called blind pipe.

Aquifer fixed at the starting point

At times the water get checked from PCSIR or from any other recommended laboratory.

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LAHORE.

5. Affected Area

Southern side of the city.

Lake side is good.

6. Private Pumping

No law restrains private pumping.

7. Distribution of Water

The pipes which distribute water to consumer ranges from 3 inch dia upto 27 inch dia.

8. Total number of pumps

9. Sanitation

In some areas there is no sanitation

Open drains and than the same mix in big drain.

10. Collection of Disposal Waste

for this purpose the city is divided into 14 Sewerage Districts.

It means that from every house the waste is collected and than put the same at one place which is called “Disposal Station”.

The disposal station are in the form of large tanks where the whole waste (including solid waste) is retained for 3 to 10 mins and than the sewage water is pumped from tank and thrown into drain.

As there is no water body in Gujranwala the whole water is disposed of in River Ravi via Sheikhupura.

But it is not mandatory that the whole sewerage water went to River Ravi. In midway it may be broken and used for agricultural land.

When this water is mixed with lake water it works as “Urea”.

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LAHORE.

11. Per Person Consumption of Water

Rough estimate 50 G/capita/ day. (Not verified from any study. Its departmental assumption)

12. Proposal of treatment Plant.

No. no such proposal was ever made or not even in consideration.

Only surface water can be treated but grounded water cannot be treated.

13. No rules of Business

But physical meeting is necessary

14. Responsibilities of WASAG

Only Seem Nala.

Development and Planning is done by GDA

15. How many pumps / wells are under WASA G

Originally there were 65 pumps.

WASA G rehabilitated 24 pumps. (Rehabilitation in process)

16. Solid Waste

No specific measures

People have created their own sewerage lines.

If any sewage slab is broken instead of getting it repaired people start throwing waste in the same.

17. Rates / amount charged for Sewage

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Details in the report.

18. Cost incurred upon providing water to remaining 70% of people

Rs 2000 to Rs. 3000 per capita.

For one house Rs. 12000/- assuming that average 6 persons lives in one house.

19. Work of MD WASA G

New Projects

Old Projects & O & M

Revenue collection.

20. Problems / solution which you need

Single handed approvals of bills etc.

Problem in tender invitations. We have to get the tender approved by a Committee

Vacancies are not filled. (2 reasons {1} Mostly staff went to LG {2} working conditions in WASA G are v bad)

21. Scope of O & M

Water supply in Tube wells. Electrical and Mechanical work

Sewerage system.

Check leakages.

Tube well failures.

Out dated machinery

Collection system

Stuck up

22. Main Problem

Sewerage blockade

23. How service of WASA G can be improved

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LAHORE.

If recovery of revenue improved service automatically get improved

24. Problems in O & M

Resource problem

No institutional support

We have to hire private contractors who take more service charges than the actual costs.

How can this problem be resolved?

Institutional arrangement

Capacity building. (cars. Learned personals etc)

25. Electricity bills is another big problem. Unit rate is Rs. 3/- but from WASA G department charge Rs. 7/-.

FIELD VISIT WITH MD WASA-G

1st SITE

Qila Mian Singh Minor Raj Kot (comes in Aroop Town)

The place is technically called Qila Mian Singh Minor Channel.

It caters 1/3rd of total disposal sewage.

40% of wastage from the city comes to this channel for remaining 60% of waste water there are total 15 channels/ disposal centers. (the pressure on this site can be well imagined)

Screening Chamber: - non clogging pumps (dia of pipes range from 48 to 60inches but normally 48inch pipe used, recommended 60 inches)

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LAHORE.

Collecting Tank: - water takes 3 to 4 hours to come to the tank from consumer. (24 inch pipes used)

Question asked from Worker’s at site and their problems.

26. Time and nature of duty

8 hours

Duty includes cleaning of tanks and taking the raw material or solid waste out from the tanks.

At times the sewerage man has to go 18ft down in the main hole and do the work. The condition under the hole is worst. (bad smells, gas etc)

27. Any safety instruments provided by WASA or not

No safety boots, no mask.

The things once provided in ten years. But how long they last.

28. How many persons worked at site in one shift of 8 hours.

Total 3 shifts

1 driver to operate machinery

1 technical person &

1 sewerage man

29. Qualification of technical person and what kind of situation he deals with

He only deals with minor problem and in case of any serious default in machinery he reports to the WASA G main office.

2nd SITE

Overhead Liaqat Bagh Tank Zone 1.

Reserves the water and than __________ to consumer. Very helpful to maintain pressure incase of no electricity.

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LAHORE.

The water after filtration is collected in the tank from tube well and than supplied to consumer.

Tank is fully covered.

Gastro Scheme: - All pipes be changed from source to tap.

Chlorine is mixed in water and the same remain effective till the delivery of water in tap.

Water quality is checked. (there is a document called MOP (memorandum of partnership) conditions are mentioned in the same.

Discussion with Union’s President. (Malik Naseer-ud-Din Hamaiyun)

30. What problems u feel in the department

Structure problem. Whether agency (WASA G) is needed or not

No source of income.

The technical staff which was working in the corporation was not hired when WASA G was established. All the staff is taken from GDA.

Nothing changed since the incorporation of WASA G

No planning for present day. What actually we need?

Swear man don’t have facilities with which they have to work in field.

Demands of workers never fulfilled.

In case of any accident no proper relief was ever given.

No health facilities. Person who suffers from health problem retired on medical grounds.

No rules and regulations are made for staff. Provincial Government and labour laws are not applicable.

FINAL REPORT

LAHORE.

When we go to get relief under accountability act. They say that WASA G is autonomous body go get the relief from them.

The only forum where we can access in the past are TRIBUNALS now they are closed.

31. What solutions you recommend to overcome these problems.

CSP officer be appointed

Money should be invested in commercial sites owned by WASA G to get money. E.g CNG station, pumps & plazas be made so it becomes source of money for WASA G.

Recoveries cannot be made because of the higher officials. Leakage always happens when officer demands.

Consumer is willing to pay but there is no proper recovery procedure of WASA G

All tube wells be shifted outside the city.

Nazims are also creating problems.

Labour always resists incorporation of a Company.

Employment laws

In the end union’s president says that we are providing DIRTY WATER to consumer.

MD WASA G resists and told that it is not true but at some places where the water is dirty it’s only because of faulty lines.

FINAL REPORT

LAHORE.

Annex D

Photos

visit dated ________

with MD WASA

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LAHORE.

complaint cell (window)at WASA-G

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LAHORE.

sewerage collection pond

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main pumping station- Gujrawala

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LAHORE.

pumps at the pumping station.

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collection ponds

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Overhead reservoir (OHR)

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LAHORE.

sewerage pumped out into open drains (without treatment). The drain falls into a river.

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LAHORE.

Annex D

_______________________________

Emailed on 13-3-2009

Meeting held at the Urban Unit, Lahore at 11am on 12-3-2009 Present: Dr. Javed Nasir (PD-UU) Mr. Abid Hussainy (UU) Mr. Hassan Ghazali (UU) Mr. Tariq Mehmood (M.D.WASA) Syed Mansoor Ali Shah (LC)[1] Meeting was held at the UU to finalize the work plan to complete the corporatization of WASA-Gujranwala (“WASA-G”) in accordance with the directions of UU. The following was agreed between UU and Legal Counsel (LC); Objective Key concerns for lack of performance of the WASA- G are as follows:

1) Lack of operational autonomy. Constant political and bureaucratic interference.

2) Lack of financial autonomy (delayed or slow flow of funds) 3) Lack of planning autonomy 4) Poor human resource 5) Inability to hire and fire employees. 6) No mechanism of accountability. To address the above problems, LC in his Draft Report dated 9-8-2008 had suggested six different models. UU through their email dated 27-2-2009 opted for model under Punjab Development of Cities Act, 1976 (“PDCA”). Meeting held on 12-3-2009 was to fine tune and freeze the final model and its details as desired by UU. The following model and its salient details transpired in the meeting: Model desired and confirmed by UU It was decided in the meeting that the model for corporatization of WASA shall be as follows:

a. Without carrying out any legislative amendment in PDCA another Authority for Water Supply and Sanitation (WSS) be established under section 4 of PDCA for Gujranwala.

b. Through various notifications, WSS (another Authority in parallel

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LAHORE.

with Gujranwala Development Authority already existing under section 4 of the PDCA for the city of Gujranwala) to be established, exiting WASA-G to be de-notified and the membership of the existing Authority be decreased under section 4(5) of the PDCA.

c. Once the new WSS is established. The key problems, mentioned above , by drafting Rules under section 43 of PDCA for the following areas:

i. Human Resource and Performance

Evaluation Rules Rules to lay down a detailed structured process for appointment of top management (CEOs ad DG, etc), their qualifications, expertise and required experience, security of tenure, removal mechanism linked with performance evaluation based on KPIs. Facility to appoint on contract and market based salaries.

ii. Strategic Development Plan and Financial

Rules Providing parameters for preparing 3 or 5 year Strategic Development Plan and then submitting the same to the Provincial Government for quick and speedy disbursement of funds. To avoid and replace the existing financial procedures entailing developing PC-1, etc.

iii. Tariff Adjustment and Business Plan

Rules Rules laying down the mechanism to prepare a proposal for tariff adjustment and the manner and procedure for tariff adjustment by the PG. The same rules can mandate WSS to prepare annual business plans for effective operation and running of WSS.

iv. Performance monitoring and oversight Rules Rules to effectively monitor and oversee the performance of WSS on the basis of KPIs and

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LAHORE.

the subsequent follow up actions. Developing the KPIs.

v. Procurement Rules Rules laying down a transparent procurement system.

vi. Improving penalty provisions for recovery of arrears. WORK PLAN:

1. It is pointed at the outset that after the meeting, the possibility of establishing another authority under PDCA for Gujranwala was reviewed by LC. After deliberations it is pointed out that PDCA only provides for ONE AUTHORITY per CITY and therefore establishing a WSS under the PDCA in parallel with the Authority (GDA) will not be legally permissible. During the meeting reference was made to the setting up of PHA (Parks and Horticulture Authority) under PDCA. PHA has been set up for Lahore only (as its website suggests). The argument in support of this is that PHA is the only Authority for Lahore under PDCA. Please note that the development authority for Lahore i.e., LDA is under LDA Act, 1975 and not under PDCA.

2. Having two authorities under the PDCA for the same City is not legally permissible unless PDCA is amended.

3. While this can be discussed again, Rules can still be developed. 4. Rules as mentioned above require material inputs from UU, Keith

Stellard and Will Kingdom. The main content of all the Rules is non-legal and more to do with performance evaluation, business development and financial disbursements. I will appreciate of the structure of the Rules is sent or discussed with me so that I can give them legal shape. Any Rules developed already in some other jurisdiction can be a great support and a starting point.

5. Due to the Long March of the lawyers which started on 12-2-2009, I will not be at work and will be able to resume work on this assignment not before 23rd March, 2009. Affairs are rather unsettling and disturbing right now as massive arrests of lawyers is taking place in the country.

6. My final deliverables are:

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LAHORE.

a. Three Notifications b. Five set of Rules plus improving the penalty provision. c. Proposed Legislative amendment (as discussed above)

7. I have 9 days starting 23rd March, 2009. I will be able to

develop the Notification and Rules in this time frame provided I get the requisite support for the Rules before the close of this week in a format that is helpful for me to translate into Rules rather than general reading material. Please appreciate that the main content of these Rules is non legal in nature.

Let me have your response and inputs. Mansoor Ali Shah (LC)

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