Policy Outcome 1: Further Devolve Social Services to DGs and TMAs

1.1   Devolve administrative powers in the social sector to local governments as per SLGO

SPG achieves devolution of administrative and financial powers in the social sectors

—including for approval of budgets, development programs and staff

transfers—from PLDs to DGs and TMAs

Reports indicating transfer of powers to

DGs and TMAs

Following the broad provisions of the SLGO as regards the transfer of powers to the LGs, the SPG has taken several steps including issuance of several orders, notifications that detail the administrative and financial powers that have been transferred to the LGs. These include:

1.    From the current Fiscal year, all DGs/TMAs have been empowered to prepare their own budgets and their share from the divisible pool as determined by the PFC Award has been transferred through one-line transfers. The LGs are also responsible for preparing their own Annual Development Plans (ADPs) to be approved through the process provided in the SLGO. Subject to the devolved powers of sanctioning of schemes, there is no role in approvals of LG ADPs by the Provincial Government.

2.    The Local Government Department has prepared a Summary after consultation with LGs regarding the vesting of powers of technical sanction to TMAs for Water and Sanitation schemes. At the moment, the practice in implementing these powers is fairly diverse and this Summary seeks to arrive at a policy decision on this issue. The Summary is currently under final review with the FD, before it is presented to higher forums for approval. Expected that the FD would be able to finalize its views within a week or so. The PSU Team at FD is assisting in this review

3.    The Sindh Local Government Contract Rules-2001 have been enforced, which empower DGs and TMAs to enter into and award contracts for various purposes, including hiring of consultants.

4.    The Sindh TMA/UA APT Rules-2001, which lay down the powers and processes for appointments, postings and transfers have been enforced

5.    In its meeting on 8^th January, the Sindh PFC has decided to distribute the share of TMAs/UAs in OZT (2.5% GST) directly to the TMAs/UAs to their respective accounts. LGD has finalized the share formula for this distribution

6.    Effective January 2004, the PFC has also decided to completely devolve Property Tax to the TMAs, requiring the DGs to collect the tax on behalf of the TMAs, retaining 10% as collection charges and passing on 90% share to respective TMAs.

The Local Government Department has prepared a Summary after consultation with LGs to streamline the procedures regarding the vesting of powers of technical sanction to TMAs for Water and Sanitation schemes. Summary seeks to arrive at a policy decision on this issue.

SLGB/CAO/2001/7482 dated; 5^th December 2001

(Annex - A)

SLGB/CAO/2001/7476 dated; 5^th December 2001

(Annex - B)

§          Finance Department in consultation with LGD has started releasing the 2.5% share of D.Gs and TMAs on existing formula, directly in their accounts w.e.f.  February 2004 (Annex - C).

§          LGD has submitted revised formula for the distribution of Local Finances for the review of PFC in its next meeting.

§          Property Tax and Entertainment Tax stands completely devolved vide Finance Department Notification NO. FD.SO (RES-V) 6 (28)/2003 dated March 8, 2004 (Annex - D).

1.2 Delegate          management responsibilities and authorities within the devolved         education and health sectors, as per SLGO

SPG, in consultation with DGs prepares an action plan specifying

responsibilities and

authority of EDOs, district officers and deputy district officers

Delegation plan

The broad responsibilities and authority of the EDOs DOs and DDOs have been provided for in the SLGO. However, specific actions have also been taken by PLDs in the form of delegation plans to empower EDOs and other District functionaries:

1.       Notification of Conduct of Business Rules for Districts, Rules of Business for TMAs and UAs.

2.       Notification by Finance Department to amend the West Pakistan Delegation of Powers under the Financial Rules and Powers of Re-appropriation Rules 1962 to both reflect the new responsibilities at the LG level and to empower officers at EDO, DO, DDO and ADO levels, by vesting in them powers of Officers of Category II, III, IV and V respectively under the relevant rules

3.       Notification by Local Government Department to amend Schedule 2 of the Sindh Civil Servants (Efficiency and Discipline) Rules, 1973 read with the Government of Sindh, Housing Town Planning, Local Government and Rural Development Department’s Notification in this respect, assigning administrative powers of Authorized Officers under Sindh E&D Rules, to various officers of the LGs

4.       Notification regarding devolution of ex-officio functions performed by the erstwhile office of Divisional Commissioners and Deputy Commissioners

Delegation Plan at Annex - E.

SLGB/CAO/2001/7480 dated: 5^th December 2001.

Notification No.  FD/B&E-1/2(18)75-94(Pt-VI) dated 30^th November, 2001 (Annex - F).

Notification No. SLGO/CAO/2001/7477 Dated: 5th December 2001.

1.3 Adjust the role of the 3 PLDs for education, health and LG to the new devolved set-up

PLDs articulate their new role and responsibilities in

the social sectors in relation to policy, sector monitoring,

and provision of technical support to DGs and TMAs

PLD Concept papers

The PLDs have prepared documents that present their policy perspective on the new roles and responsibilities:

§      Sindh Health Department has prepared a detailed plan which outlines the responsibilities at the Provincial level, District level as well as the structure at different tiers of Government and identified broad areas where capacity building is required. However, this plan needs review and refinement in the light of actual practice as well as providing an institutional framework for Health Boards and Patient Welfare Associations. The DSSP would address this area as part of its policy reform agenda in coming months. There is also a need to achieve closure on issues such as procurement, where conflicting signals often emerge.

§      Sindh Education Department has initiated a process of providing legal cover to the SMCs and prepared a draft Ordinance, which will be presented to the Cabinet shortly.

§      The Education department has empowered the SMCs to construct schools, undertake repairs, hire teachers on contract etc.

§      Health Department Paper regarding roles and responsibilities of HD and its Devolved offices has been placed on the Web site. http://www.financedept.gov.pk/dssp

§      HD   has requested for an early mobilization of expert to help the HD in preparation of a comprehensive plan for the community involvement in health care management.

§      An impact study of devolution on the DGs in heath sector is annexed (Annex - G)

·      Education Sector reforms were discussed among the participants during Education Round Table Conference held under the aegis of the ADB on16-17 March 2004 at Karachi. The Act is under review of the stakeholder       (Annex - H).

·      LGD has broadly prescribed its role and functions in post devolution set up through a notification dated June 29, 2002 (Annex - I).

Policy Outcome 2: Improve Social Sector Financing

2.1 In support of the Sindh Poverty Reduction Strategy, increase social sector spending above the normal increment

SPG agrees to maintain the

level of social sector allocations as a proportion of total revenues in FY03- 04 and allocate $33 million as an additionality

Report of FD

SPG stands committed to enhancement of social sector allocations on the benchmark of FY03-04 and to provide the ADF funds under DSSP as additionality.

The FD report contains details of the increased allocations in the social sector during the last 2 fiscal years.

Table attached (Annex - J)

2.2 Use needs-based,

transparent formula for

the distribution of the conditional grant funds for social sector

development

In consultation with DGs and TMAs, SPG proposes an interim formula for the distribution of extra funds under the loan to DGs and TMAs as conditional grants.

This formula will be considered and finalized by the PFC or PSC, in case PFC has not been set up

Provide copy of formula

The PFC has been reconstituted and is operational. However, it has extended the Interim Award announced by its predecessors and thus all the formulas for distribution of funds, including that for Poverty Alleviation Program (Khushal Pakistan) benchmarked for distribution of DSSP funds, have been endorsed and hold good.

Although there is no requirement for it after the endorsement mentioned above, as a step towards achieving further credence to the issue of DSSP funds being distributed on the basis of 70% population and 30% backwardness (measured on the basis of the SPDC Deprivation Index, used by the PFC for its Interim Award), the proposed formula is being placed before the PSC for confirmation

Formula for the distribution of DSSP funds has been notified (Annex - K).

2.3 Transfer of

      funds through    

      Account IV in a

      timely manner

SPG commits to implement the PFC Award to transfer funds to DGs and TMAs through Account IV in a timely manner; including for salaries within 2 yrs

FD Report

Policy Outcome 3: Improve Participation, Linkages, and Public Accountability

3.1 Ensure

implementation of the Sindh Gender Reform Action Plan

SPG finalizes draft of the Sindh Gender Reform Action Plan for presentation to the provincial Cabinet

Final Draft of GRAP

The Sindh GRAP has been finalized and approved on 17^th December 2003 by the Provincial Steering Committee for presentation to the Cabinet. It is expected that it will be placed before the Cabinet within the next fortnight

The Women Development Department has also prepared an Action Plan for the implementation of the GRAP

3.2 Strengthen

participatory planning and monitoring of DGs and TMAs, based on the bottom-up annual planning cycle

SPG commits to prepare an action plan to promote transparent and participatory planning and monitoring in DGs and TMAs in accordance with provisions of the SLGO

DPL

DPL containing a specific commitment to this effect has been issued by the SPG

3.3 Adopt the mechanism of management agreements between the SPG, DGs and TMAs that would make them eligible for conditional grants to stimulate social sector development

SPG develops the system for DGs and TMAs to access the conditional grants through individual MOU between DGs/TMAs and SPG

PSU provides system design

The PSU team at FD has developed a draft MOU after seeking inputs from PLDs and some sample LGs in a small workshop scheduled for 18^th February. It will be subsequently shared and discussed with a larger sample of LGs before placing it for approval of the PSC in its first meeting tentatively scheduled in  the last week of February

The Education Department has also developed a draft MOU between the SPG and the SMCs for receiving funds directly from the SPG. This draft MOU is part of the Summary sent to the Chief Secretary recommending legalization of SMCs.

§      Draft MoU was discussed with Stakeholders (PLDs, District Governments, TMAs) in separate meetings held on 18^th February, March 24 and 29 respectively.   MoU finalized in the light of amendments suggested by the stakeholders is placed at Annex - L.

Draft MoU prepared by ED was discussed during the Round Table Education Conference organized by the ADB on 16-17 March. MoU is under stake holder review at the moment (Annex - M).

Policy Outcome 4: Rationalize Services and Set Minimum Standards

4.1 Improve quality 

      of annual

      sector plans of

      DGs and

      TMAs by   

      providing

      incentives of

      conditional

      grants

SPG, in consultation with

DGs and TMAs, finalizes the social sector activities

qualifying for support under the annual sector plans prepared by DGs and TMAs

GOS finalizes eligibility criteria

The PSU team at FD has developed draft eligibility criteria which were discussed with PLDs and some sample LGs in a small workshop scheduled for 18^th February. It will be subsequently shared with a larger sample of LGs before placing it for approval before the PSC in its first meeting

Given in MoU and agreed by the stakeholder in principle.

4.2 Rationalize the

distribution of services, staff and funds

SPG ensures that MOUs require DGs and TMAs to

rationalize services and staff.

SPG follows a policy of transparent, merit-based, contractual, facility specific recruitment preferably of locals and females with the aim of operationalizing schools and health centers.

SPG commits to a ban on new civil works and (re-)

opening closed schools, facilities and schemes,

unless a comprehensive plan to operationalize the services has been prepared and the civil

works and operationalization of services is carried out by SMCs

GOS status reports and notifications

§ The issue of rationalization has been addressed by including it as an integral part of the draft MOU

§ Education Department has notified the empowerment of SMCs with regard to hiring of facility specific teachers, focusing on female recruitment. The notification also empowers SMCs to make expenditures for repair and maintenance, construction of shelters in shelterless schools, toilets etc

§ Education Department invited EOIs through advertisement from private sector firms and has selected a firm to carry out tests for hiring 752 lecturers on contract. The Sindh Public Service Commission has also been involved in the selection process

§ The SPG has put in place a strategy for ensuring that new civil works and/or rehabilitation of existing schools takes place by following certain clearly laid out criteria (such as distance from population catchments) and by promoting public-private partnerships through the Sindh Education Foundation and its various programs such as Adopt A School, Community Managed Schools etc.

§ As part of its efforts to ensure that investment in existing and under construction health and education facilities is based on clear criteria, the Health and Education Department engaged a private firm to carry out a Third Party Validation of Primary Health and Education Facilities for prioritizing operationalization.  These Studies have been completed and provide detailed surveys of existing facilities as well as explicit recommendations for prioritization of investments based on the field work, in specific areas and facilities

§ Given in MoU and agreed by Stakeholders

§      Copy of Notification annexed (Annex - N).

§      Entry test for posts of Lecturer was conducted through College of Business Management (CBM) a leading Management Institute. Results have been widely publicized and also placed on the Education Department’s Web site.

§      Interview Committees headed by the Members of the Sindh Public Service Commission have been notified (Annexure – O).

§      Interview process has started from 15^th March 2004.

§      Stakeholders in their meetings have expressed an urgent need for adoption of the recommendations contained in the TPV Studies (Health & Education) carried out under the aegis of Sindh Reform Program. Minutes of the meeting with DGs placed at  Annexure – P.

4.3 Improve policy

framework for drinking water supply and solid waste management

SPG commits to prepare interim policies on solid

waste management and drinking water supply

DPL

DPL containing a specific commitment to this effect has been issued by the SPG

Policy Area 5: Encourage Public-Private Partnership to Improve Service Delivery

5.1 Strengthen the role of CBOs in social service delivery

SPG prepares overall plan to promote the role of CBOs

SPG announces expansion of support to CBOs, including SMCs for katchi class up to grade 12 and

shelterless school based on number of students enrolled

rather than number of classrooms

Chief Secretary approves plan

A Summary is being prepared by the PSU team at FD containing the plan outlining the manner in which the role of CBOs in the devolved social sectors can be promoted and strengthened. This will be sent to the Chief Secretary early next week

The Education Department has already moved a Summary for according legal status to SMCs. As required by DSSP, an allocation of Rs.450m has been made in FY03-04, to be distributed on the basis of enrollment, rather than classrooms and 50% of these funds have already been transferred and the rest are under process.

The Education Department has also recently published in Urdu and Sindhi, a Manual for SMCs which details the roles, responsibilities and procedures for SMC operations.

Similarly, to support VDAs, Rs.103 million have been allocated in FY03-04 for M&R of existing schemes

Based on accumulated experience of Finance Department; further refined through PHRD financed studies a CBO Plan has been prepared and would be placed before PSC for endorsement prior to its approval by Chief Secretary (Annexure - Q).     

Draft Act prepared by ED was discussed during the Round Table Education Conference organized by the ADB on 16-17 March. Draft Act is under stake holder review at the moment (Annex - R).

5.2 Increase in financing of

CBOs (SMCs, health boards, VDAs; and NGOs) in a timely manner

SPG commits that the MOUs require DGs and TMAs to promote increased

funding of CBOs by DGs and TMAs for improved service delivery.

FD report

This has been addressed by including it as part of the Terms and Conditions of the draft MOU

District Governments and TMAs have agreed to the incrementally enhanced expenditure of upto 25% of funds through CBOs in a timely manner. However, LGs have emphasized on developing a separate mechanism for working of CBOs. PSU is including this recommendation in the TORs of Finance / Governance Specialists who will further develop on the broad CBO Plan prepared as per Annexure-Q.