World Bank downgrades performance of $200m KPHCIP

The World Bank has revised its assessment of the Khyber Pakhtunkhwa Human Capital Investment Project (KPHCIP), valued at $200 million, due to delays in its implementation.

Official records indicate that the current progress towards achieving the Project Development Objective (PDO) and the implementation status are both moderately unsatisfactory.

As of January 12, 2024, $31.76 million disbursed for the KPHCIP, which represents approximately 16 percent of the total project funds. Initial delays and recent downgrades in performance are attributed to prolonged approvals of the revised Planning Commission Proforma—Project Initiation Document (PC-1), along with a downgrade in the Environmental Safeguards rating.

Approved on June 23, 2020, and effective as of March 31, 2021, the KPHCIP is an IDA operation worth $200 million, including $125 million from the IDA Regional Sub-Window for Refugees and Host Communities, with a current closing date set for June 30, 2025.

The PDO of the project is to enhance the availability, utilization, and quality of primary healthcare and elementary education services in selected districts of Khyber Pakhtunkhwa (KP).

Three components directly support this objective: Component 1 focuses on improving the delivery of quality primary healthcare services, Component 2 aims at enhancing the availability and quality of education services; and Component 3 focuses on strengthening community engagement and accountability.

Moreover, the project operates in four refugee-hosting districts: Peshawar, Haripur, Nowshera, and Swabi. The authorities agreed upon the measures to expedite implementation, disbursements, and utilization, including revising the PC-1, completing necessary approvals, developing a fast-track implementation plan, appointing a Deputy Project Director, and advancing ongoing civil works.

In response to extensive flooding across Khyber Pakhtunkhwa, the government also requested the World Bank project’s geographic coverage to include flood-affected districts, leading to a restructuring of the KPHCIP to address reconstruction and rehabilitation needs following the flood emergency.