Karachi Neighborhood Improvement Project Likely to be Restructured


The Karachi Neighborhood Improvement Project (KNIP) costing $86 million is expected to be reformed for the third time by extending the deadline to June 2023, World Bank revealed. 

The proposed seven-month extension of the credit closing date (to June 30, 2023) will allow enough time to complete the remaining activities of Component 1, particularly Phase 2 and emergency works. The bank will accept a time-bound implementation plan developed by the project agencies to finish the remaining project operations. 

The report outlines the implementation status of the three project components. 

Component 1: Improvements to Public Space and Mobility in Selected Neighborhoods ($70 million). 

This component’s civil works were separated into two phases. The first phase of work, which included improving public spaces in the Saddar, Malir, and Korangi neighborhoods, was completed in December 2020. These renovated public areas benefit an estimated 362,000 residents (more than 36% of the total project objective). Phase 2 work ($24.6 million) is under underway and will take another four to six months to complete. 

Component 2: $10 million in support for improved administrative services and city capacity development. 

Moreover, the main focus of this component’s assistance was the automation of construction permits and business registration in Karachi. The project assisted other provincial agencies in the design and implementation of the Sindh Provincial Electronic One-Stop Shop (PEOSS) for business licenses and e-licensing. The number of days necessary to form a firm in Karachi has lowered from 18 in 2017 to 16.5 in 2020 as a result of this action. The Sindh Building Control Authority (SBCA) completed the automation of construction permit processes in June 2022. This component also funded SBCA complaint management and resolution, as well as capacity building. 

Component 3: Implementation Support and Technical Assistance ($5 million). 

The GoS Planning & Development Department has formed a project implementation unit (PIU) (P&D). Training activities have been carried out to improve the capacity of the PIU and other implementing organizations in essential project management skills such as stakeholder consultation and participatory development, environmental and social protection, procurement, and financial management.