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Sustainable Energy and Economic Development (SEED) Programme

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Description

The Sustainable Energy and Economic Development Programme (SEED) will provide £37.5 million over seven years (2018/19 – 2024/2025) to support provincial economic development and sustainable energy in Pakistan. It will support the province of Khyber Pakhtunkhwa (KPK), to plan and finance the infrastructure and investment it needs for growth, jobs and prosperity. The programme will also address Pakistan’s energy crisis by providing innovative financial solutions to industry for the adoption of sustainable energy practices. The Supplier will act as the lead technical assistance provider to implement Component 1 ‐ Improved Economic and Urban Planning in KPK Pakistan of SEED programme. The total budget for services to be provided under this contract will be £15 million. Pakistan is growing but is performing worse in terms of economic development than its South Asian and lower middle‐income country peers. Investment is just 16% of GDP compared to 25% in these other groups. Pakistan is urbanising fast – but urbanisation is not delivering higher levels of investment or increasing productivity. Provincial governments’ capacity to plan and manage investments effectively and an unreliable, expensive and unsustainable energy supply are two fundamental constraints to inclusive economic growth. Following a constitutional amendment in 2010, there is an increasing role for subnational governments in delivering economic and urban development. KPK is fragile economically and socially but also presents opportunities. The demands on its resources are also growing, with the recently announced merger with the Federally Administered Tribal Areas (FATA). KPK needs early support to integrate itself with Pakistan’s growth centres – Punjab and Sindh – and to benefit from China Pakistan Economic Corridor investments. KPK’s yearly development budget in core economic development sectors alone is larger than FCDO’s programme in Pakistan. We can support the KPK Government to meet these challenges by strengthening the systems and institutions responsible for promoting the province’s economic development. Driven by stronger institutions, and a growing economy, KPK will be better able to converge, economically and socially, with Punjab.

Objectives

The impact of the programme will be higher growth, jobs, and incomes in Pakistan. The outcome of the programme will be public and private investments generate greater economic, social, and environmental returns. At an output level, the programme will: - deliver provincial economic development plans and sector strategies - Build institutional capacity for economic and urban planning in KP by establishing systems and protocols for coordination, project design, selection, appraisal, and implementation. - Leverage funds from non‐government sources for core infrastructure projects in KP.

Target Groups

The primary recipient of the technical assistance will be the Government of Khyber Pakhtunkhwa province of Pakistan.

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Location

The country, countries or regions that benefit from this Programme.

Pakistan

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