LOCAL GOVERNMENT & COMMUNITY DEVELOPMENT DEPARTMENT

QUALIFICATION CRITERIA & TORs

FOR
SHORTLISTING OF CONSULTANTING FIRMS
FOR
ANNUAL PERFORMANCE ASSESSMENT OF 16 MCs
UNDER
“PUNJAB CITIES PROGRAM (PCP)”

184 Scotch Corner, Upper Mall, Lahore

Tel #: 042-99204386-89
Fax #: 042-99204390
Website: www.pmdfc.org.pk
E-mail: [email protected]

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 QUALIFICATION CRITERIA

Shortlisting of Consultants will be based on the criteria given below regarding applicant’s
Mandatory Documents, General and Relevant Experience & Managerial Capabilities as
demonstrated by the Applicant’s responses. EOI Applications will be evaluated based on the
following criteria:
A. Mandatory Documents for Prequalification

Description Requirement
Certificate of Company/Firm
Registration/Incorporation under the laws of Pakistan Mandatory
Valid Income Tax Registration Mandatory
Valid General Sales Tax Registration (Status = Active with
PRA) Mandatory
Submission of undertaking on legal valid and attested stamp paper
that the firm is not black listed and not involved in litigation with
any of Provincial or Federal Government Department, Agency,
Organization or autonomous body anywhere in Pakistan. In case Mandatory
involved in any litigation process, proof of dispute resolution is
required.

B. Firm Experience
Experience shall be evaluated on the basis of following parameters:

Sr. Description
#
Atleast 15 years’ experience in the relevant field since establishment & registration
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with the relevant professional body

Experience of minimum 2 assignments with minimum total cost; Rs. 20 million

2 (PKR) in conducting Performance Assessments / Third Party Validations and other
related assignments in last 10 years.

3 Working experience of similar assignments with the donor agencies

Working Experience of similar assignments with Local Governments/District

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Governments

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 TERMS OF REFERENCE

HIRING OF ANNUAL PERFORMANCE CONSULTING FIRM FOR

PUNJAB CITIES PROGRAM
1. Brief Background

 A Program captioned as Punjab Cities Program (PCP), introduced as a Program for Results
(P4R), funded by World Bank with total cost of 200.00 million USD and gestation period
of 5 years, is being launched in 16 MCs of Punjab. The development objective of the
Program is to strengthen the performance of participating Municipal Committees (MCs),
focusing on urban management and improvement of municipal services infrastructure for
satisfactory service delivery. The operation is financed through a hybrid of Investment
Project Financing (IPF) and Program-for-Results (PforR) instruments.

The operation will focus on two following components.

 Window-1: Performance Based Grants (The Program): The PforR window will pilot a
system of performance-based grants (PBGs), disbursing funds to the ULGs subject to their
annually assessed performance against two Disbursement Linked Indicators (DLIs). The
DLIs will encompass targets for ULGs in areas such as planning and budgeting, resource
mobilization, infrastructure delivery, and environment and social management. The
disbursed funds will be used to finance eligible infrastructure investments.
 Window-2: Institutional Strengthening (The Project): The IPF window will support
institutional strengthening of, and provide technical assistance to, selected ULGs and
provincial government institutions. This support will be critical to achievement of the DLIs
and the development objective of the Operation. The IPF window will also support the
undertaking of timely, transparent, and impartial annual performance assessments.
a. Objectives of the Assignment

The primary objective of the consultancy is to assess the annual performance of participating
Municipal Committees / Corporations (MCs) against the requisite DLIs. This will be done to
incentivize the better performing MCs to have access to larger amounts of PBGs, and to encourage
the less performing MCs to improve their compliance of MACs and earn higher scores in the
Performance Measures to enable receiving larger amount of PBGs.

The APA consultants will be hired by LG&CDD for one year (FY 2019-20), with the possibility
of extension of the contract for subsequent year/s, subject to satisfactory performance.

b. Disbursement Linked Indicators (DLIs)

The program will use two Disbursement Linked Indicators (DLIs) which focus on: minimum
access conditions (MACs) under DLI-1, and a set of performance measures (PMs) for DLI-2.
However, for the first year the PBG allocation will be given based on MCs meeting a reduced
number of MACs.

c. Program Cities
The cities (Municipal Corporations/Committees) included in the Program are:

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 1. Bahawalnagar 9. Jhang
2. Burewala 10. Jhelum
3. Daska 11. Kamoki
4. Gojra 12. KotAddu
5. Hafizabad 13. Muridke
6. Kamalia 14. Okara
7. Khanewal 15. Vehari
8. Jaranwala 16. Wazirabad
2. Annual Performance Assessment (APA)
(Independent Annual Assessment)

An independent annual assessment and the verification of results to trigger disbursement is key to
Program. APA firm will verify Program results in a timely manner to provide the basis for
disbursements of funds under the Program to the participating MCs. The assessment results will
provide the basis to make the final decision whether a DLI has been achieved or not. The aggregate
score of the MCs in the APAs will determine the size of PBG grants to be disbursed, and will be
an important metric to determine progress towards the Program Development Objective.

a. Minimum Access Conditions for Performance Based Grants (PBGs)

The Minimum Access Conditions (MACs) and Performance Measures (PMs) together will enable
all 16 MCs to access the full Performance Based Grants (PBGs) allocation. Compliance with
MACs will be a pre-condition to access the PBGs, and failure to satisfy any MAC will disqualify
an MC from accessing its PBG for that year.

MCs will be assessed against a set of MACs for access to DLI-1 grants (25% of total PBG
envelope) in the areas of;

a) Investment planning and budgeting,

b) Human resources,
c) Procurement,
d) Financial management and audit,
e) Environment and social management,
f) Transparency, and
g) Signed Program Operation Specific Participation Agreement

b. The Performance Measures (PMs) for DLI-2

The Performance Measures will build on the foundations laid by MACs, and will challenge the
MCs to raise their performance to achieve incremental targets. Qualified MCs will be able to
access PBGs (75% of total PBG envelope) every year, based on scores obtained in the Annual
Performance Assessment (APA). PBGs would be allocated to the MCs proportionate to their
performance scores (weighted with the APA score).

c. Adjustment of disbursements for DLI-2

DLI-2 is also scalable, whereby disbursements will be adjusted based on whether Program MCs
perform better or poorer than expected (as set out in the Performance measures). This means that
if Program MCs perform higher than expected they will receive higher disbursements. This system

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ensures direct peer comparison and competition as an incentive to improve performance.

d. MACs and PMs

 With the exception of the first assessment of Reduced MACs, the disbursement of all
subsequent PBGs will be determined based on the full APA undertaken by the APA firm.
 The APA consultant will assess compliance with MACs along with extent of achievement
of the Performance Measures (PMs) given above.
 MCs will need to comply with all the MACs given above to receive any PBG, and non-
compliance with even one of the MACs will make them ineligible for the PBGs.
 The extent of achievement of the PMs will be scored, and the amount of PBG for each MC
will be based on the score achieved combined with the PFC formula.

e. Performance Requirements
The consultant shall determine how best to convey each MCs’ APA, in the light of the given
MACs, PMs and their indicators.

3. Duties and Responsibilities of consultant

The specific tasks to be performed under the assignment are listed below:
1. Conduct fieldwork in all 16 MCs in order to collect data on the performance of each MC to
be measured in terms of:
a. Compliance with Minimum Access Conditions (DLI-1); and
b. Extent of achievement of Performance Measures
2. Analyze all field data in order to assess the performance of each MC (in terms of MAC
compliance and extent of achievement of PMs)
3. Establish, for each MC, PBG allocations per the following:

 Meeting all MACs will be a pre-requisite for eligibility to PBGs. Any MC not meeting
all the MACs will not be eligible for any PBG funding in that year.


PMs will be assessed for all MCs, but assessment results will impact only MCs that (by
virtue of having demonstrated compliance with MACs) are eligible to receive PBGs, the
size of which will depend on their performance across a range of measures.
The annual targeted score for Performance Measures is given in the table below
Table 1: Targeted Compliance Level in the Program

DLIs Y-1 Y-2 Y-3 Y-4 Y-5

DLI-1 100% 100% 100% 100% 100%
40 points 50 points 60 points 70 points
DLI-2 out of out of out of out of
100 100 100 100
 The performance system will ensure that every point counts (i.e. continuous
improvement instead of a static benchmark e.g. passing 70 % etc.) The best practice with
PBGs is to allocate across MCs based on their relevant weighted performance scores to
ensure strong incentives for all and for every performance improvement.
 The PBG for the individual MC will be worked out on the basis of present PFC award
proportion combined with the Performance Measures Score.
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  The PBG allocations will be calculated separately for DLI-1 and DLI-2 as under;
- For the MCs complying to DLI-1 the allocations will be calculated as mentioned for
the first year e.g. in the proportion of the prevailing PFC award.
- For DLI-2, the score obtained in the PMs will be considered as the basis. The total
actual disbursement to be made in a particular year will be worked out in proportion
of the total of score earned by all MCs qualifying all the MACs with respect to the
targeted score of all MCs in that particular year.
- The amount of disbursement so calculated will be divided amongst the qualifying
MCs in proportion to the score earned by individual MC.
- The formulae for working out the allocations to each MC may be adhered to for this
purpose.
- The allocations calculated for DLI-1 & DLI-2 will then be added to obtain the total
allocation for each MC for that year.
 The disbursement table for calculations of the PBG allocations for each MC has been
provided at the end of these TORs for guidance of the Consultants.
4. On the basis of fieldwork data and adequate documentary evidence submitted by MCs each
year, establish a final listing of all MCs that have or have not complied with MACs.

5. On the basis of the compliance/noncompliance to the PMs, calculate the amount of PBGs
for the MCs who have complied with all the MACs.

6. Submit the results of the assessment for:

 Compliance or noncompliance of the MACs.
 Score of the PMs earned by each MC complying with MACs.
 Total actual disbursement to be made by the Bank in a particular year under DLI-I&
DLI-II separately
 Amount of PBGs allocations to each MC under “Allocation of PBGs to the individual
Municipal Committees” in both cases.
7. The above-mentioned results will be submitted to Program Steering Committee (PSC) and
World Bank by the end of February each year.
8. The PSC may get the results verified and authenticated through its Executive Committee for
Program Steering Committee, and if some shortcomings or anomalies are witnessed, PSC
may return the results to APA Consultant for re-verification, rectification, and removal of
the shortcomings or omissions. APA will do the needful and submit the results back to PSC.
9. Similarly, the World Bank will conduct the verification and Quality Assurance of the results
in March every year. If some small discrepancies are noted, the Bank may get the results
checked or verified through its own team members. But if the nature of discrepancies and
shortcomings is such that the Bank is not satisfied with these results then the Bank may
appoint some other party or firm for verification. The Bank may return the results to the
APA Consultant for rectification or re-verification.
The APA Consultant will be bound to get these results re-verified as per directions of PSC or WB.

4. Management of the Assignment

The consultants shall report to the LG&CDD and will be expected to work closely with PCP Team
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in ensuring timely and accurate delivery of the objectives and outputs of the assignment.

a. Annual Performance Assessment Cycle

The APA cycle is designed to synchronize with the government budgeting cycle, which will
facilitate due allocations to be reflected in provincial and LG budgets in June every year, and
informed investment planning and budgeting, by MCs for the subsequent financial year. The APA
firm engaged by the LG & CD Department will conduct field assessment in the first two months
of each year, and communicate the APA Results simultaneously to the Program Steering
Committee and the Bank by last month of the assignment. The Annual Performance Cycle will
be spanned out for four (04) Months.

From Year – II onward the APA cycle will be spanned out from November to February each
year.

The Steering Committee will undertake its due diligence and communicate verified APA Reports
to the Bank immediate after completion of the assignment. The Bank will in turn independently
verify these results and communicate the final disbursement amounts of each Program MC for the
subsequent year to counterpart entities (Steering Committee, Finance Department, LG&CDD, and
concerned MCs).

The Bank will retain a right to make the final decision whether a DLI has been achieved or not.
Moreover, the Bank may undertake regular independent quality assurance checks of the APAs to
ensure continued robustness of the system.

5. Core Team of the Consultant

Sector Specific Staffing
The firm of consultants will have the following staffing profile:

Table 3: Human Resource Requirement - Annual Performance Assessment (APA)

Sr. # Designation Numbers

1 Team Leader 01
2 Team members 04
3 Assistant Team Members 05

A. Team Leader (01 NO)

Qualification: Bachelors (04 Years) / Masters or higher degree (MSc in
Engineering/MS/M.Phil or PhD) in engineering, public/business administration, public
finance, economics, or a related field from HEC recognized Institutes

Experience: Minimum 15 years’ of post qualification experience in working on public sector

service delivery, with demonstrated experience in working with local governments. Proven
familiarity with PLGA-2019 would be a major asset. The person will have a demonstrated
track record of providing consultant deliverables on a timely basis.

B. Team members (04 NOs.)

I. Team member – 1 (Infrastructure Specialist)

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 Qualification: Bachelors (04 Years) / Masters or higher degree (MSc/MS/M.Phil or PhD)
in Civil Engineering from HEC recognized Institutes

Experience: Minimum 10 years’ of post qualification experience with demonstrated major

experience in working with local governments. Work experience related to planning,
designing & supervising infrastructure development projects or maintenance of municipal
services infrastructure. Proven familiarity with PLGA, working experience with public
sector entities & donor agencies and work rules will be an added advantage.

Demonstrated track record of providing consultant deliverables on a timely basis.

Team member – 2 (Environment& Social Management Specialist)

Qualification: Bachelors (04 Years) / Masters or higher degree (MSc in

Engineering/MS/M.Phil or PhD) in Environmental Engineering / Sciences from HEC
recognized Institutes

Experience: Minimum 10 years’ of post qualification experience of professional and

technical experience with increasing level of responsibility in environmental analysis
&social safeguards assessments. Must have demonstrated experience in developing IEEs,
EIAs and EMMPs required under public sector environmental regulations. The candidate
should also have demonstrative experience to tackle the social issues arises time to time
and their management. Proven familiarity with PLGA, Punjab Environmental Act 2012
and The World Bank Environmental and Social Safeguards would be a major asset.
Working experience with public sector entities & donor agencies and Local Government
Systems will be an added advantage.

Demonstrated track record of providing consultant deliverables on a timely basis.

II. Team member – 3 (Finance & Accounts Specialist)

Qualification: Bachelors (04 Years) / Masters or higher degree (MS/M.Phil or PhD) in

Finance/ Commerce/Banking or Business Studies from HEC recognized Institutes

Experience: Minimum 10 years’ of post qualification experience in Municipal financial

management, accounting budgeting & planning. Proven familiarity with PLGA and
working with Local Governments and on donor funded projects would be a major asset.
Demonstrated track record of providing consultant deliverables on a timely basis.
III. Team member – 4 (Institutional Strengthening Specialist)
Qualification: Bachelors (04 Years) / Masters or higher degree (MS/M.Phil or PhD) in
Economics/ Business Economics/ Business/ Public Administration from a HEC
recognized Institute.

Experience: Minimum 10 years’ of post qualification experience in public/ private sector

institutions. Technical experience in design and delivery of capacity building initiatives to
public/ private sector institutions. Work experience of development & planning processes
and have analytical skills to evaluate and assess the organizational performance

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 management. Proven familiarity with PLGA, working experience with public sector
entities & donor agencies will be an added advantage.

Demonstrated track record of providing consultant deliverables on a timely basis.

C. Assistant Team Member – (05 NOs.)

Qualification: Bachelors (04 Years) / Masters or higher degree (MSc in
Engineering/MS/M.Phil or PhD) (as detailed below)

Experience: Minimum 5 years’ of post qualification experience in relevant discipline

Table 4: Detail of Assistant Team Members

Sr.# Designation Nos. Qualification Required Experience

1 Assistant Team 02 Bachelors (04 Years) / Masters or Minimum 5 years’ of

Member higher degree (MSc/MS/M.phil or post qualification
(Infrastructure) PhD) in Civil Engineering from HEC experience in relevant
recognized Institutes discipline.
2 Assistant Team 01 Bachelors (04 Years) / Masters or
Member higher degree (MSc in
(Environment& Engineering/MS/M.Phil or PhD) in
Social Environmental Engineering / Sciences
Management) from HEC recognized Institutes
3 Assistant Team 01 Bachelors (04 Years) / Masters or
Member higher degree (MS/M.Phil or PhD)
(Finance & in Finance/ Commerce / Banking or
Accounts) Business Studies from HEC
recognized Institutes
4 Assistant Team 01 Bachelors (04 Years) / Masters or
Member higher degree (MS/M.Phil or PhD)
(Institutional in Economics/ Business Economics/
Strengthening) Business/ Public Administration from
a HEC recognized Institute
6. Hiring Process

The hiring shall be done in line with World Bank guidelines through competitive bidding based
on Consultant’s Qualification-based Selection (CQS).

This APA contract will initially be for one year but may be renewed for subsequent years subject
to performance in the first year’s APA.

7. Gestation Period

(i) Assignment is likely to be completed within Four (04) months including field assessment and
reporting.

(ii) The consultant shall furnish Final Assessment Report (APA) Report for each MC within
stipulated time period as mentioned in the agreement.

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8. Deliverables/Reports with timelines

Sr # Deliverable Timeline Hard Soft Copy

Copy
1 Inception Report/Work Plan, outlining the By 1st Week Yes Yes
consultants’ understanding of the assignment
and proposed approach to meeting MACs and
PMs requirements
2 First draft Preliminary - APA reports and By 8th Week Yes Yes
draft Preliminary Synthesis Report to
LG&CDD as well as to the World Bank.
3 Second draft Preliminary - APA reports and By 10th Week Yes Yes
draft Preliminary Synthesis Report and share
with LG&CDD and World Bank.
4 Review by LG&CDD and Bank with APA By 12th Week Yes Yes
team.
Third draft report - reconcile comments
received into the report.
5 Final assessment draft APA report for each By 16th Week Yes Yes
MC and the Final Draft Synthesis Report on
changes made by APA team, submitted to
Program Steering Committee and the World
Bank and make presentation.
A final assessment report will include but not
limited to:
 Detailing compliance (or non-
compliance) based on fieldwork data and
documentary evidence submitted by MCs;
 Indicating “Actual Disbursement by WB
to GoPunjab” under each of the DLI.
 Indicating PBGs allocations for DLI-1 and
DLI-2, based on MC compliance along
with all back-up calculations for working
out the PBGs for both DLIs.

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