Improving Public Investment Management and Accountability in Public Services

TERMS OF REFERENCE

COMMUNICATION FIRM

Improving public investment management and accountability in public services

Governance and Policy Project (GPP) for Khyber Pakhtunkhwa

Pakistan Khyber Pakhtunkhwa, Federally Administered Tribal Areas and Balochistan Multi-Donor Trust Fund (MDTF)

Background:

Following the 18th Amendment to the Constitution in 2010, like other provinces KP acquired increased competences. Under the 18th Amendment, provinces acquired exclusive competences in several areas including agriculture, education, and health. The 7th National Finance Commission (NFC) award of 2009 also increased provinces’ revenues in two ways: First, the 7th NFC award raised the provinces’ share of the divisible pool of revenues from 47.5 percent to 57.5 percent. Second, it expanded the provinces’ own source revenues, notably by assigning the Sales Tax on Services (STS) to the provincial level.

Within its expanded mandate, the KP Government has taken some bold steps towards citizen-centric governance. The province has strengthened citizens’ legal rights and established effective institutional mechanisms to enable them to assert these rights. KP was the first province in Pakistan to adopt a far-reachingRight to Information Act in 2013 and so far the only province to have passed a Right to Public Services Act in 2014. More importantly, the relevant institutions, the RTI and the RTPS Commissions, became operational quickly and delivered rapid results in monitoring and enforcing compliance with the new laws. The province also established an independent anti-corruption agency with a strong mandate, the Ehtesab Commission, in 2014. Several of these initiatives have received support from the Governance Support Project (GSP). The project, which has been the main instrument for the Bank’s support to governance in KP (2010-2016), has helped the province achieve some tangible results.

KP has also taken steps to decentralize service delivery functions and resources to local governments. The province adopted the Local Government Act (LGA) in 2013 and held local government elections in 2015. The LGA of KP differs from those of other provinces in four major respects. First, it mandates elections for all levels of local government, whereas in other provinces district-level governments consist of delegates from lower levels of government. Second, it assigns more service delivery functions to local governments. Compared to other provinces, KP districts have more extensive functions, which include education, health, agriculture, and rural roads. Town authorities are now responsible for waste management, and water supply and sanitation. Third, it guarantees local governments a minimum level of financing, equal to at least 30 percent of the province’s Annual Development Plan (ADP). Fourth, some competences have been decentralized to even a lower level than the Union Council to the village and neighborhood Councils, increasing the number to 3501, including 1,000 Union Councils. The provincial Government is now working to build the capacity of local governments to take on service delivery and manage public resources.

Public service delivery

Since the devolution, the province has sharply increased spending on public services, albeit with relatively modest results. The 7th NFC award of 2009 covering the period FY2010/11 – FY2015/16 increased federal transfers to KP by 79 percent compared to the previous five years. Thanks to these additional resources, the province increased spending on health and education by almost five times in nominal terms during this period.This additional spending has produced visible results in expanding access to basic services. Quality issues however have dampened the impact of the increased spending. For example, public schools often lack essential facilities including water, sanitation, or boundary walls, which deter many families from sending their children, especially girls, to school. Staffing has increased, but most new hires have been in auxiliary roles rather than professional positions, which has done little to improve quality. With support from the GSP, the KP Government has also started monitoring service delivery facilities, tracking delivery timeframes for administrative services, and conducting citizen satisfaction surveys.

KP has applied some good practices and innovations to improve the effectiveness of public investment. Between 2009/10 and 2014/15, the provincial Government increased the size of the Annual Development Plan (ADP) by 96 percent in nominal terms in an effort to remedy the provinces’ infrastructure deficit, including in the social sectors. The MTBF has supported multi-annual planning in the preparation of the ADP, which gives priority to ongoing projects. In recent years, ongoing projects have accounted for around 60 percent of the ADP. The P&DD has also introduced the Development Planning Monitoring System (DPMS), a software tool developed with Bank support that helps the Government track project preparation, approval, and execution. Thanks to its link with the Treasury system, the DPMS provides real time data on financial progress, but does not track physical progress.

At the same time, several shortcomings erode the effectiveness of development spending. Perhaps the most important of these is the higher number of projects resulting in thin spreading of the ADP which in the last two years has continued to comprise of about 1500 projects, each year. This dispersion of resources undermines the quality of project preparation and appraisal, given the limited capacity of the public administration. It also leads to inefficiencies in procurement, and hinders effective monitoring of implementation. A review of the ADP suggests that there is much scope for consolidating similar small projects. Another issue is the under-provisioning for operational and maintenance (O&M) costs, which risks deterioration of the infrastructure. The KP Public Expenditure Review (PER) published by the Bank in 2013 also notes that projects are often underfinanced in the outer years, which hinders timely completion and functionality. Other issues in ADP planning include the addition of new projects during the fiscal year and patterns of ADP over-execution and under-execution in particular sectors.

Revenue mobilization

The province’s ambition to rapidly bridge the gaps in service delivery and infrastructure has driven efforts to increase own source revenues. Without increasing own source revenues, it will be difficult for the KP Government to realize its ambitious plans for investments in schools and healthcare facilities as well as in energy, irrigation, and transport infrastructure. Based on the revenue assignments under the 7th NFC award, KP has introduced some tax reforms with encouraging results. At the start of FY13/14 the province established the KP Revenue Authority (KPRA), which took over STS collection from the Federal Board of Revenue (FBR). These reforms increased STS revenues from PKR 4.7 billion in 2012/13 to PKR 6.2 billion in FY2014/15 and an estimated PKR 7.3 billion in FY2015/16. The number of active STS taxpayers also rose by 81 percent and the rate of tax filing rose from 30 to 45 percent. Furthermore, for 2016/17 five additional services have been added expanding the total number to 62 services, with a revenue target of PKR 14 billion.

KP has much scope to further increase its own source revenues and reduce its dependency on federal transfers. In FY2013/14, total federal transfers accounted for 88.5 percent of the KP’s total revenues, and the province’s own source revenues accounted for 6.4 percent; the remainder came from capital gains and foreign aid. Own source tax revenues contributed only 3.4 percent of the budget. In FY2013/14, the tax revenue collected by KP was estimated at around 0.5 percent of provincial GDP, compared to around 0.8 percent for Sindh and 1.3 percent for Punjab. The STS is the main source of own tax revenue in 2013/14 (54 percent), followed by land taxes, and the motor vehicle tax. Preliminary assessments point to a large tax gap, especially for the STS. KP also has substantial scope to increase non-tax revenues, notably from the hydropower (hydel) generation, subject to better governance in the Public Sector Entities (PSEs) active in this sector.

Governance and Policy Project for Khyber Pakhtunkhwa

The Governance and Policy Project for Khyber Pakhtunkhwa aims to contribute to the overarching objective of the KP Government to build public trust in state institutions and foster peace and stability in the province. The Government’s development strategy (IDS) clearly states that better governance and public services are essential to strengthening citizens’ rights and their confidence in public institutions. Likewise, the strategy stresses that better education and economic opportunities are essential to discouraging young people from engaging in militant and criminal activities. The project will contribute to these objectives by supporting grievance redress mechanisms and community engagement in monitoring public services. The project’s support for public investment management and monitoring performance in service delivery would also contribute to better public facilities and services, thereby helping to strengthen public trust. Finally, the project’s support for tax collection will assist the Government’s goal of instilling a sense of citizenship based on a social contract, whereby citizens have rights to public services and the obligation to pay taxes and observe the law.

The proposed project responds to the request of the KP Government for continued Bank support with the governance reform agenda. The Government has requested support to achieve the following outcomes: (i) increase the tax collection through better administration of the STS; (ii) strengthen the analytical and policy capacity of the Finance Department; (iii) strengthen public investment management and capacity for preparing and managing PPPs; and (iv) improve accountability, accessibility, and quality of selected public services through citizen engagement and performance management reforms. The proposed project will also support the Government in coordinating governance reforms and monitoring their progress.

The project is part of the Governance and Policy Program (GPP), which is financed by the Multi-Donor Trust Fund for KP, FATA, and Balochistan. This MDTF was set up in 2010 – initially for a period of five years -- to support the implementation of the recommendations of the Post-Conflict Needs Assessment (PCNA) for KP and the Federally Administered Tribal Areas (FATA). The scope of the MDTF was subsequently expanded to also support the crisis-affected province of Balochistan. The GSP was one of the projects financed by this MDTF for the period 2010-2015. In September 2015, the MDTF Steering Committee extended the MDTF for another five years (2015-2010). On the basis of the good results achieved under the GSP, the Steering Committee also decided to continue supporting institutional and governance reforms. The second phase (Round II) of the MDTF will be based on a results-driven, programmatic approach, whereby the targeted outcomes are organized under three pillars: (i) growth and job creation; (ii) policy reforms and governance; and (iii) service delivery.

The proposed project will therefore contribute to the governance outcomes targeted by the results framework of the MDTF. These outcomes are the following: (i) improved transparency and accountability of government services through citizen engagement in the delivery of selected services; and (ii) capacity building of public administration through improved management, training, and strengthening of systems used by government institutions. The project will also support the following outcome of the ‘growth and jobs’ pillar: improved environment for PPPs and private sector growth, including policy formulation and regulatory mechanisms.

The Governance and Policy Pillar comprises three projects, one for each beneficiary region of Khyber Pakhtunkhwa, Federally Administered Tribal Areas and Balochistan. The outcomes targeted by the results framework of the MDTF are common for all three beneficiary regions. Effective operational support, however, needs to take into account the specific priorities of each region as well as their respective capacities for implementation. This need for differentiation was the rationale of the three governments’ request for dividing of the Governance and Policy Program into three projects, one for each region.

Objectives:

To develop and harmonize Planning & Development’s Communication and PR channels including correspondence, website, e-news, emailing, quarterly newsletters, leaflets, brochures, press releases, interviews, etc. and coordination in relevant stakeholder’s consultations.

Scope of Work:

• Support events (workshops, conferences, ceremonies, etc.) with a view to issue actionable recommendations to improve event management, outreach and advocacy around key development dimensions;
• Advise on and support Planning & Developmenton publicity/outreach, knowledge sharing events and promotional opportunities.Contribute to identifying new and creative ways to enhance visibility and outreach of project deliverables and results;
• Developing communication strategies that are appealing to the general public in terms of substance, form, extension and sensitivity and produce contents for the communication products;
• Develop and finalize IEC and other materials for different media/ target audience including Infotainment scripts and key messages, TV/ radio/FM spots, illustrative leaflets, posters, and other materials;
• Advise on the structure of the report; propose creative titles and subtitles, graphics and other lay out options to strengthen the report readability and appeal to the readership. Developing central messages of reports/newsletters/ leaflets/ brochures etc .Advise on accessible language and treatment of information during the drafting phase and assist on the preparation of an executive summary.Review of final texts for the synopsis and the reports.
• Build and update a sector-defined database of reputable and internationally focused Pakistani and foreign companies;
• Design and conduct monthly online potential stakeholders’ survey; communicate results to the executives. Build and update a sector-defined database of reputable and internationally focused Pakistani and foreign companies;
• Design a media plan and supervise the content for each outlet
• Development of texts for:
• Press kit
• Media releases
• Other materials
• Organise videos for the launching of reports
• Ensure proper documentation of all activities undertaken, as well as compile articles/write-ups after each activity
• Advise on the preparation of report presentations to different audiences of civil society.
• Analyse and provide a report on coverage of the HDR and assist the analysis on its impact among key audience.
• Coordinate the Communications Group
• Any other activity requested by P&DD.

Deliverables- expected outputs by the Firm

1. Day to day advisory services on “IDC”- within 2 days of demand
2. Case by case specific deliverable (s) - within 7 days of demand

QUALIFICATION AND EXPERIENCE

The consultant agency must have the following qualifications and experience:

• Be registered as provincial /national organization or entity, and providing similar services for at past five (5) years
• A proven track record of professionalism and ethical conduct, relevant technical knowledge, skills and extensive work experience in: designing communication strategy, messages, tools and materials, plans including media plans, as well as in capacity building, implementation including media buying and marketingand track record of completion of tasks according to time lines. Experience of at least two (2) comparable projects will be required
• Experience with donor-funded projects.
• Firms with documented availability of in-house or through back to back printing and production facilities shall be accorded due weightage

PERIOD OF CONTRACT

The period of contract will be 12 months from the date of signing the contract with a provision for performance reviews.

Selection Process

Selection will be Based on Consultants Qualification (CQS) method on Indefinite Delivery Contract basis in accordance with World Bank’s Guidelines: Selection and Employment of Consultants [under IBRD Loans and IDA Credits & Grants] by World Bank Borrowers (January 2011) revised July 2014