FOR OFFICIAL USE ONLY Report No: RES53595 INTERNATIONAL DEVELOPMENT ASSOCIATION RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF PUNJAB GREEN DEVELOPMENT PROGRAM APPROVED ON MAY 25, 2018 TO THE ISLAMIC REPUBLIC OF PAKISTAN Environment, Natural Resources & The Blue Economy Global Practice South Asia Region Regional Vice President: Martin Raiser Country Director: Najy Benhassine Regional Director: John A. Roome Practice Manager: Christophe Crepin Task Team Leader(s): Christopher James Warner, Ahmad Imran Aslam The World Bank Punjab Green Development Program (P165388) ABBREVIATIONS AND ACRONYMS DLI Disbursement-Linked Indicator DLR Disbursement Linked Result EEF Environmental Endowment Fund EPA Environment Protection Agency EPD Environment Protection Department ESSA Environmental and Social Systems Assessment FSA Fiduciary System Assessment GoPunjab Government of Punjab IDA International Development Association PAP Program Action Plan PDO Program Development Objective PEECA Punjab Energy Efficiency and Conservation Agency PforR Program for Results PGDP Punjab Green Development Program PMU Project Management Unit PPP Public-Private Partnership PSIC Punjab Small Industries Corporation RECP Resource Efficient and Cleaner Production SoE State of Environment (Report) SPIU Strategic Planning and Implementation Unit VICS Vehicle Inspection and Certification Scheme The World Bank Punjab Green Development Program (P165388) DATA SHEET (Punjab Green Development Program - P165388) BASIC DATA Project ID Financing Instrument IPF Component P165388 Program-for-Results Financing No Approval Date Current Closing Date 25-May-2018 30-May-2025 Organizations Borrower Responsible Agency Islamic Republic of Pakistan Program Development Objective(s) The Program's development objective is to strengthen environmental governance and promote green investments in Punjab. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date 25-May- 30-May- IDA-62470 29-May-2018 29-May-2018 200.00 97.11 90.51 2018 2025 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No Page 1 of 36 The World Bank Punjab Green Development Program (P165388) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING Program Status 1. The Punjab Green Development Program (PDGP) remains highly relevant for Pakistan and the Punjab Province. In 2017, the Government of Punjab (GoPunjab) requested the World Bank’s support to foster green growth and address the serious environmental issues affecting the province, including increasingly severe annual smog episodes. The PGDP was prepared in FY18 to respond to this request, with the program development objective (PDO) to strengthen environmental governance and promote green investments in Punjab. This Program-for-Results (PforR) operation, supported by a US$200 million equivalent credit from the International Development Association (IDA), was approved by the World Bank’s Board of Executive Directors on May 25, 2018, and became effective on May 29, 2018. A level 2 restructuring was approved on June 13, 2020, in response to a Government restructuring request. Successive Governments have continued to give high priority to the Program, including the preparation of the Punjab Clean Air Action Plan. 2. Actual disbursement against results stands at $52 million out of $200 million (26 percent). An advance of $40 million has also been made. PDO and Implementation Progress is rated as rated Moderately Satisfactory. The Task Team is supervising the Program on a weekly basis with monthly in person meetings with counterparts. Program progress is also reviewed each month by the Project Management Unit (PMU) and the Government of Punjab as part of the overall review of the Bank supported portfolio in Punjab Province. 3. The Program has demonstrated the following results and with continued progress the ratings are expected to be upgraded: (a) DLI 1, 2, 3, 4, Environment Protection Department (EPD): The EPD has made important progress in the achievement of some DLRs. This includes the adoption of a Smog Control Policy, the adoption of a health advisory for air pollution, a policy on citizen engagement, inspections of factories to ensure compliance with permits and a plan to restructure and strengthen the Environment Protection Department. Progress is being made towards the achievement of several other DLRs including to reduce plastic pollution, monitor air and water quality and produce a state of environment (SoE) report. EPD is now in the process of preparing a Clean Air Policy and Action Plan and an investment plan. (b) DLI 5, Energy Department: As fossil fuel-based energy contributes to air pollution, roof-top solar energy, and energy efficiency are being promoted on behalf of the Energy Department by the Punjab Energy Efficiency and Conservation Agency (PEECA). One DLR has been achieved, with significant further scalable progress being made. Based on the success of these activities, the province is planning to expand investment which will also reduce green-house gas emissions and demand on the power grid. (c) DLI 6, Transport Department: Transport Department has an important role to play in reducing air pollution. Legislation has been passed to allow for the testing of private motor vehicles emissions and the first related DLR is about to be achieved. Progress is being made toward the planning of a pilot electric bus scheme. (d) DLI 7, Industries Department: The Industries Department has an important role to play in supporting resource efficiency and cleaner production, especially to reduce pollution. The Bank of Punjab and the Punjab Small Industries Corporation (PSIC) have established green financing guidelines and are in the process of screening and providing finance to several hundred businesses with the first DLR under verification. Industries being targeted include tanneries, steel rolling, furnaces, rice husk and stone crushing. (e) DLI 8, Finance Department: Establishing sustainable financing mechanisms and a framework for greening the economy is key. Punjab Province has capitalized the Punjab Environment Endowment Fund (EEF) with $50 million equivalent and is in the process of preparing a green financing strategy which will guide investment. The World Bank Punjab Green Development Program (P165388) Rationale for Restructuring 4. Previously, a level 2 restructuring was approved on June 13, 2020, in response to a Government request to extend the Program by 23 months due to delayed implementation, to support COVID impacted businesses, to introduce a pilot electric bus scheme in Punjab and support roof-top solar power generation in addition to promoting energy efficiency in public buildings. The Industries Department was added as an implementing agency to achieve the industry related activities. Minor adjustments were accordingly made to the results framework and verification protocols to accommodate these changes. 5. In a letter dated February 3, 2023, the Ministry of Economic Affairs sent a formal request to the Bank to restructure the Program. The intention is to fine tune the DLRs particularly to respond to changing demands including to remove the need to respond to the COVID -19 pandemic, to ease achievement of DLRs while maintaining similar level of ambition. The key Program design features to achieve the PDO remain same, including to strengthen environmental governance through a restructured EPD, an operational Environmental Monitoring Centre, a new $50 million Environment Endowment Fund, and the greening of industry and transport. An added ambitious policy is the adoption of a Clean Air Policy and Action Plan and the adoption of the first Provincial legislation in Pakistan requiring private motor vehicle emissions testing. 6. The requested restructuring is in line with the PGDP Mid-term Review conducted in July 2022 and reconfirmed during an implementation support mission from December 16-20, 2022, and January 16-20, 2023. II. DESCRIPTION OF PROPOSED CHANGES 7. The Program restructuring is a level-2 restructuring as it will not change the Program Development Objective, the Program design, the Program scope or the overall implementation arrangements. As such, the Program’s risk ratings also remain unchanged. 8. Key changes include: (a) adjustments to the Results (DLRs), and allocation of amounts between the DLRs and the Program’s expenditure framework; (b) adjustments to the Program Development Objective Indicators by Objectives/ Outcomes; and (c) update to the Program Action Plan (PAP) discussed below. 9. Adjustments to Results (DLRs): The following changes are made to the DLRs under the various Disbursement Linked Indicators (DLIs). No results are intended to be timebound. Delivery will be managed through the Bank supervision process. Table 1. Adjustments to DLRs and their allocations before and after Program restructuring DLI, relevant Prposed Rationale DLRs after the DLR Amount DLR Amount After the Department and Changes Restructuring Before the Restructuring and Formula $ allocation to DLRs Restructuring DLI 1- New To support GoPunjab on DLR 1-4. “Clean Air - US$3 million Improving EPD Proposed technical and regulatory Policy and Action Plan Capacity DLR 1-4 aspects to address air with targets notified” (EPD) pollution. DLI amount DLR will be financed from before savings achieved through restucturing $25 preparing two instead of million three annual state of environment reports. DLI amount after The World Bank Punjab Green Development Program (P165388) restructuring $28 million DLI 3- DLR 3-2 Dropped to reallocate DLR 3-2 “EPD has US$3 million - Disclosure of deleted funds to proposed DLR 1- published the first State Environmental 4 for the Clean Air Policy of Punjab’s Information and and Action Plan. Environment report Citizen covering FY 2020 and Engagement has carried out related (EPD) stakeholder consultations.” DLR 3-3 Change in description DLR 3-3 “EPD has US$3 million US$3 million updated since two annual state of published the First State DLI amount environment reports will of Punjab’s before be prepared instead of Environment report and restucturing $20 three. has carried out related million stakeholder consultations.” DLI amount after DLR 3-4 Change in description DLR 3-4 “EPD has US$4 million US$4 million restructuring $17 updated since two annual state of published the Second million environment reports will State of Punjab’s be prepared instead of Environment report and three. has carried out related stakeholder consultations.” DLI 6- DLR 6-1 The amount is reduced to DLR 6-1 “At least 5% of US$15 million US$10 million Vehicle revised $10 million to make the registered motor Compliance with allocated provision for two new vehicles (transport Emission amount DLRs, DLRs 6-4 and DLR 6- vehicles and motor cars) Standards 5. of Punjab have valid (Transport) emission certificates under the expanded VICS program.” DLI amount DLR 6-2 The revised DLR makes it DLR 6-2 “Provincial US$5 million US$5 million before updated clear that electric buses government signs restucturing $25 and not, for instance, contract for induction of million more fuel-efficient diesel electric-buses.” buses are required. DLI amount after DLR 6-3 The need for Public DLR 6-3 “Pilot electric- US$5 million US$5 million restructuring $25 updated Private Partnership bus performance report million contract is removed and for the 6 month trial 12 months trial/test period.” period is reduced to 6 months which will suffice. New Required to achieve the DLR 6-4 “Legislation has - US$2.5 million Proposed overall results. been notified which DLR 6-4 Amount reallocated from includes private motor DLR 6-1. cars in the expanded vehicle and inspection and certification scheme.” New Required to achieve the DLR 6-5 “Provincial - US$2.5 million Proposed overall results. private motor vehicle DLR 6-5 Amount reallocated from inspection and DLR 6-1. certification scheme The World Bank Punjab Green Development Program (P165388) contract signed with service provider(s).” DLI 7- DLR 7-1 Description revised and DLR 7-1 “The Program US$16 million US$16 million Green updated COVID requirement is has provided loan and Investments by removed. or grant support to (The proposed formula for Polluting SMEs in at least 2 allocation is (i) $10 million upon Industries Loans are preferred to industrial sectors to Punjab Small Industries (Industries) strengthen good pilot RECP Corporation (PSICs) signing of governance. The initial technologies.” finance agreements with at least target is revised from 3 to 10 SMEs in at least 2 industrial 2 industrial sectors, to sectors; (ii) $6 million upon PSICs signing of finance agreements DLI amount achieve the initial result with at least 6 SMEs in 3 other before while remaining scalable industrial sectors.) restucturing $30 to 3 other sectors. million DLR 7-2 Description revised and DLR 7-2 “SMEs US$9 million US$8 million updated COVID requirement is supported by the DLI amount after removed. Program have invested (The proposed disbursement restructuring $30 at least US$3 million formula is $4 million upon million achievement of target and $1 The amount is reduced equivalent in adoption from $9 million to $8 of RECP technologies million for each additional $0.5 million to provide either through own million equivalent investment in stronger support to investments or RECP technologies.) micro-enterprises under obtaining loan from DLR 7-3. Government.” DLR 7-3 Description revised and DLR 7-3 “At least 100 US$5 million US$6 million updated COVID requirement is micro-enterprises are removed. supported by the (The Proposed formula for Program through loan disbursement is: (i) $4 million for The amount is increased and or grant to adopt at least 100 micro-enterprises from $5 million to $6 greener practices.” supported by the Program; (ii) million. Amount is $1 million for another 50 micro- increased as the enterprises supported by the maximum loan size has Program; and (iii) $1 million for another 50 micro-enterprises been raised. supported by the Program.) DLI 8- DLR 8-3 This will replace DLR 8-3 “Punjab has US$5 million US$5 million Mobilization of updated development of the adopted a Green Sustainable principles for green Financing Strategy.” Green Financing sukuk/bonds because (Finance) Federal Government manages bonds. DLI amount before restucturing $50 million DLI amount after restructuring $50 million 10. The adjustments to the PDO Indicators reflect adjustments to DLRs and the realism of targets which can be achieved within the Program design. Some PDO and intermediate indicator targets were simply overly ambitious at design and are therefore The World Bank Punjab Green Development Program (P165388) brought into line with the original and 2020 restructured Program. The overall Program Development Objective Indicators by Objectives/ Outcomes are included in Annex 1: Results Framework of this document. The changes are as follows: a. Strengthening environmental governance: (Indicator 3). Disclosure of environmental information and citizen engagement (cumulative number of State of Punjab Environment reports). The number of State of Environment Reports (SoEs) is revised from 3 to 2 since only 2 are needed to demonstrate the requirements. Resources are used to support the more ambitious adoption of a Clean Air Quality Policy and Action Plan b. Promoting green investments: (Indicator 4). Volume of carbon emissions avoided from green investments supported (cumulative tons CO2e) (Metric ton). The end value is revised from 339,000 t CO2e to 34,000 t CO2e. Based on the DLR, the original end target was incorrect and over-estimated. c. Promoting Green investments: (Indicator 5). Volume of new public and private capital leveraged for green investments (US$, cumulative) (Amount (USD)). The end value is revised from $100 million to $50 million in line with DLRs values and due to projected slower mobilization of investment due to prevailing economic conditions in Pakistan. d. Strengthening environmental governance: (Indicator 2.3). Inspection teams at EPA (Number). The end value for the number of teams is revised from 35 to 20 due to limited absorption capacity and the need to focus on the quality and not just quantity of teams. e. Promoting green investment: (Indicator 4.1). Energy savings and solar energy generation in public institutions under the Program (cumulative GWh) (Gigawatt-hour (GWh)). The end value is revised from 72 GWh to 55 in line with the DLR. f. Promoting green investment: (Indicator 4.2). Proportion of registered motor vehicles with valid emission certificates under the expanded VICS program (Percentage). The end target is revised from 15% to 10% consistent with the DLR and the adoption of a new DLR to provide legislation for testing private motor vehicle emissions. g. Promoting green investment: (Indicator 4.3). Number of program-supported eco-friendly buses in circulation (Number). The end target is revised from 100 to 15 as the bus specification is changed from hybrid-diesel to electric. They are expected to cost at least twice the price, and will need to be introduced as a limited pilot scheme given the technology risks involved in introducing first of its kind technology in Punjab Province. h. Number of industrial firms that received financial support from the Program for green investments (Indicator 5.1) (300). Indicator is changed to number of green micro-enterprises supported by the Program (500) i. Promoting green investment: (Indicator 5.3). Capitalization of the EEF (Amount (USD). The end target is revised from $55 million to $50 million in line with the DLR. 11. Update to the Program Action Plan (PAP): Most PAP actions have been achieved. Minor updates to dates have been made to accommodate lagging actions while not increasing Program risks or the effectiveness of implementation. One action marked for deletion is “Develop an acceptable transaction structure and service level parameters for the Concession Contract for the provision of eco-friendly bus services”. The action is captured in a DLR and is therefore redundant. (Annex 2) 12. Adjustments to the expenditure framework: a. Addition of the Coordination Unit which supports Program coordination ($1.7 million). This was omitted from the original expenditure framework and is now added. The World Bank Punjab Green Development Program (P165388) b. Revision of the green financing strategy amount from $2.7 million to $1 million. As donor support is also being provided, $2.7 million is not required. The above changes to the expenditure framework are shown in the Annex 3 of this document. 13. Adjustments to Verification Protocols: Refer to Annex 4 in this document for adjustments made to the Verification Protocols. 14. Updated Fiduciary System Assessment (FSA): The fiduciary systems of the program remain satisfactory at the time of this restructuring. 15. Environmental and Social Systems Assessment (ESSA): The current ESSA remains valid after this restructuring. III. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Reallocation between and/or Change in DLI ✔ Change in Disbursement Estimates ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in Program's Development Objectives ✔ Change in Program Scope ✔ Change in Loan Closing Date(s) ✔ Change in Cancellations Proposed ✔ Change in Disbursements Arrangements ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Other Change(s) ✔ The World Bank Punjab Green Development Program (P165388) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Year Current Proposed 2018 0.00 0.00 2019 9,183,600.00 0.00 2020 14,190,000.00 0.00 2021 22,600,400.00 0.00 2022 41,321,600.00 20,000,000.00 2023 57,117,800.00 46,500,000.00 2024 55,586,600.00 55,500,000.00 2025 0.00 49,000,000.00 OPS_DETAILEDCHANGES_EA_TABLE . The World Bank Punjab Green Development Program (P165388) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) The Program's development objective is to strengthen environmental governance and promote green investments in Punjab. Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Strengthening Environmental Governance 1. Average time to obtain Initial Environmental Examination 160.00 90.00 approval of investments with low safeguards risks (Days) 2. Stack emission and effluent discharge inspections carried out 400.00 2,250.00 by EPA (Number) 3. Disclosure of environmental information and citizen engagement (cumulative number of State of Punjab Environment 0.00 2.00 reports) (Number) Action: This indicator has been Revised Promoting Green Investments Page 9 of 36 The World Bank Punjab Green Development Program (P165388) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target 4. Volume of carbon emissions avoided from green investments 0.00 34,000.00 supported (cumulative tons CO2e) (Metric ton) Action: This indicator has been Revised 5. Volume of new public and private capital leveraged for green 0.00 50,000,000.00 investments (US$, cumulative) (Amount(USD)) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Strengthening Environmental Governance 1.1. Socially responsive new or updated law, policies, and 1.00 6.00 regulations (Number) 1.2. Socially responsive new or updated environmental standards 0.00 67.00 (Number) 2.1. Monitoring stations operational for air quality monitoring 6.00 30.00 (Number) 2.2. Monitoring stations operational for water quality monitoring 0.00 15.00 (Number) 2.3. Inspection teams at EPA (Number) 12.00 20.00 Action: This indicator has been Revised Page 10 of 36 The World Bank Punjab Green Development Program (P165388) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target 3.1. Annual public consultation events on State of Punjab's 0.00 5.00 Environment report organized in different cities (Number) 3.2. Number of nongovernmental institutions participating in annual public consultations on State of Punjab's Environment 0.00 10.00 report (Number) 3.3. An interactive EPD platform for public inputs in No Yes environmental management (Yes/No) Promoting Green Investments 4.1. Energy savings and solar energy generation in public institutions under the Program (cumulative GWh) (Gigawatt-hour 0.00 55.00 (GWh)) Action: This indicator has been Revised 4.2. Proportion of registered motor vehicles with valid emission 0.00 10.00 certificates under the expanded VICS program (Percentage) Action: This indicator has been Revised 4.3 Number of program-supported eco-friendly buses in 0.00 15.00 circulation (Number) Action: This indicator has been Revised 5.1. Number of industrial firms that received financial support 0.00 300.00 from the Program for green investments (Number) Action: This indicator has been Revised Number of green micro-enterprises supported by the Program 0.00 500.00 (Number) Page 11 of 36 The World Bank Punjab Green Development Program (P165388) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Action: This indicator has been Revised 5.2. Investment in RECP technologies by SMEs supported by the 0.00 5,000,000.00 Program (Amount(USD)) 5.3. Capitalization of the EEF (Amount(USD)) 0.00 50,000,000.00 Action: This indicator has been Revised IO Table SPACE Disbursement Linked Indicators Matrix DLI IN01207434 ACTION DLI 1 Improving EPD Capacity Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Text 25,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Limited EPD enforcement capacity and low number Baseline of inspections performed annually (i) EPD has approved a smog control policy; (ii) Prior Result 10,000,000.00 US$5m for (i) and US$5m for (ii) Punjab has approved EPD’s Restructuring Plan FY19 0.00 FY20 0.00 Page 12 of 36 The World Bank Punjab Green Development Program (P165388) The EPA has carried out at least (i) 500 inspections US$2m upon achievement of 50% of FY21: for industrial effluents, and (ii) 100 inspections for 7,000,000.00 the targeted inspections fo stack emissions FY22 0.00 The EPA has carried out at least (i) 2,000 inspections US$3m upon achievement of 50% of FY23 for industrial effluents, and (ii) 250 inspections for 8,000,000.00 the targeted inspections fo stack emissions FY24 0.00 FY25 0.00 Action: This DLI has been Revised. See below. DLI IN01243541 ACTION DLI 1 Improving EPD Capacity Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Text 28,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Limited EPD enforcement capacity and low number Baseline of inspections performed annually DLI 1-1 (i) EPD has approved a smog control policy; Prior Result 10,000,000.00 US$5m for (i) and US$5m for (ii) (ii) Punjab has approved EPD’s Restructuring Plan FY19 0.00 FY20 0.00 FY21: 0.00 Page 13 of 36 The World Bank Punjab Green Development Program (P165388) DLR 1-2 The EPA has carried out at least (i) 500 $2m upon achievement of 50% of the inspections for industrial effluents, and (ii) 100 targeted inspections for both (i) (ii) and FY22 7,000,000.00 inspections for stack emissions (Verification report $1m for each additional 10% achieved required) for both (i) (ii) FY23 0.00 DLR 1-4 Clean Air Policy and Action Plan with targets FY24 3,000,000.00 $3m upon achievement notified DLR 1-3 The EPA has carried out at least (i) 2,000 $3m upon achievement of 50% of the inspections for industrial effluents, and (ii) 250 targeted inspections for both (i) and (ii), FY25 8,000,000.00 inspections for stack emissions (Verification report and $1m for each additional 10% required) achieved for (i) (ii) DLI IN01207435 ACTION DLI 2 Air and Water Quality Monitoring Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 20,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Only 6 air quality and 0 water quality monitoring Baseline stations available for Punjab Prior Result 0.00 FY19 0.00 FY20 0.00 EPA has collected hourly data from at least (i) 30 air FY21: quality monitoring stations and (ii) 15 water quality 10,000,000.00 US$5m for (i) and US$5m for (ii) monitoring stations Page 14 of 36 The World Bank Punjab Green Development Program (P165388) FY22 EPD’s EMC has become operational 10,000,000.00 FY23 0.00 FY24 0.00 FY25 0.00 Action: This DLI has been Revised. See below. DLI IN01245899 ACTION DLI 2 Air and Water Quality Monitoring Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 20,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Only 6 air quality and 0 water quality monitoring Baseline stations available for Punjab Prior Result 0.00 FY19 0.00 FY20 0.00 FY21: 0.00 FY22 0.00 FY23 0.00 DLR 2-1 (i) EPA has collected hourly data from at FY24 5,000,000.00 $5m for DLR 2-1 (i) least 30 air quality monitoring stations. Page 15 of 36 The World Bank Punjab Green Development Program (P165388) DLR 2-1 (ii) EPA has collected hourly data from at $5m for DLR 2-1 (ii) and $10m for DLR FY25 least 15 water quality monitoring stations. DLR 2-2 15,000,000.00 2-2 EPD’s EMC has become operational. DLI IN01207436 ACTION DLI 3 Disclosure of Environmental Information and Citizen Engagement Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 20,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Limited disclosure of environmental information Baseline and citizen engagement Prior Result 0.00 EPD has adopted: (i) regulation on information disclosure and citizen engagement; and (ii) a health FY19 10,000,000.00 US$5m for (i); US$5m for (ii) advisory system for critical air pollution events targeting vulnerable population groups FY20 0.00 EPD has published the first State of Punjab’s FY21: Environment report covering CY2020 and has 3,000,000.00 carried out related stakeholder consultations EPD has published the second State of Punjab’s FY22 Environment report covering CY2021 and has 3,000,000.00 carried out related stakeholder consultations EPD has published the third State of Punjab’s FY23 Environment report covering CY2022 and has 4,000,000.00 carried out related stakeholder consultations FY24 0.00 Page 16 of 36 The World Bank Punjab Green Development Program (P165388) FY25 0.00 Action: This DLI has been Revised. See below. DLI IN01245604 ACTION DLI 3 Disclosure of Environmental Information and Citizen Engagement Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 17,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Limited disclosure of environmental information and Baseline citizen engagement Prior Result 0.00 FY19 0.00 FY20 0.00 DLR 3-1 (i) EPD has adopted regulation on FY21: 5,000,000.00 $5 m information disclosure and citizen engagement. FY22 0.00 DLR 3-1 (ii) EPD has adopted a health advisory system for critical air pollution events targeting vulnerable population groups. DLR 3-3 EPD has S$5m for DLR 3-1 (ii), and $3m for DLR FY23 8,000,000.00 published the First State of Punjab’s Environment 3-3 report and has carried out related stakeholder consultations. DLR 3-4 EPD has published the Second State of FY24 Punjab’s Environment report and has carried out 4,000,000.00 $4 m related stakeholder consultations Page 17 of 36 The World Bank Punjab Green Development Program (P165388) FY25 0.00 DLI IN01207437 ACTION DLI 4 Sound Management of Plastics Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No policy in place to manage plastic waste Prior Result 0.00 EPD has adopted (i) a plastics management strategy, FY19 and (ii) a regulation on the production and 3,000,000.00 US$1m for (i) and US$2m for (ii) consumption of single-use plastics EPD has carried out provincewide public communication campaigns with nongovernmental FY20 2,000,000.00 US$1m per round for a maximum of 2 organizations to reduce production and consumption of single-use plastics FY21: 0.00 EPD has implemented at least 50% of the initiatives for reducing the production and consumption of FY22 5,000,000.00 single-use plastics set forth in the adopted plastics strategy and regulation FY23 0.00 FY24 0.00 FY25 0.00 Page 18 of 36 The World Bank Punjab Green Development Program (P165388) Action: This DLI has been Revised. See below. DLI IN01245895 ACTION DLI 4 Sound Management of Plastics Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No policy in place to manage plastic waste Prior Result 0.00 FY19 0.00 FY20 0.00 FY21: 0.00 FY22 0.00 DLR 4-1 EPD has adopted (i) a plastics management FY23 strategy, and (ii) a regulation on the production and 3,000,000.00 $1m for (i) and $2 for (ii) consumption of single-use plastics. DLR 4-2 EPD has carried out province wide public communication campaigns with non-governmental FY24 2,000,000.00 $1m per round for a maximum of 2 organizations to reduce production and consumption of single-use plastics. DLR 4-3 EPD has implemented at least 50% of the initiatives for reducing the production and FY25 5,000,000.00 $5 m consumption of single-use plastics set forth in the adopted plastics strategy and regulation. Page 19 of 36 The World Bank Punjab Green Development Program (P165388) DLI IN01207438 ACTION DLI 5 Energy Efficiency and Solar Energy Investments in Public Institutions Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 20,000,000.00 0.00 Period Value Allocated Amount (USD) Formula (a) Energy-inefficient appliances installed and (b) no Baseline solar panels installed in targeted public institutions Prior Result 0.00 Punjab has saved and generated a combined of at US$5m upon achievement of target least 5 GWh through the installation of (a) energy- FY19 12,500,000.00 and US$0.5m for each additional 1 efficient equipment and (b) solar equipment in GWh up to 20 GWh public institutions FY20 0.00 Punjab has saved and generated a combined of at US$5m upon achievement of target least 20GWh through the installation of energy- FY21: 7,500,000.00 and US$0.5m for each additional 1 efficient equipment and solar equipment in public GWh institutions FY22 0.00 FY23 0.00 FY24 0.00 FY25 0.00 Action: This DLI has been Revised. See below. Page 20 of 36 The World Bank Punjab Green Development Program (P165388) DLI IN01245900 ACTION DLI 5 Energy Efficiency and Solar Energy Investments in Public Institutions Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 20,000,000.00 0.00 Period Value Allocated Amount (USD) Formula (a) Energy-inefficient appliances installed and (b) no Baseline solar panels installed in targeted public institutions Prior Result 0.00 FY19 0.00 FY20 0.00 FY21: 0.00 FY22 0.00 FY23 0.00 DLR 5-1 Punjab has saved and generated a $5m upon achievement of target and combined of at least 5 GWh through the installation FY24 12,500,000.00 $0.5 m for each additional 1 GWh of (a) energy-efficient equipment and (b) solar saved up to maximum $12.5m equipment in public institutions. DLR 5-2 Punjab has saved and generated a $5m upon achievement of target and combined of at least 20GWh through the installation FY25 7,500,000.00 $0.5 m for each additional 1 GWh of energy-efficient equipment and solar equipment saved in public institutions. Page 21 of 36 The World Bank Punjab Green Development Program (P165388) DLI IN01207439 ACTION DLI 6 Vehicle Compliance with Emission Standards Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 25,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Private motor vehicles not covered by the Vehicle Baseline Inspection And Certificatation System Prior Result 0.00 FY19 0.00 FY20 0.00 At least 5% of the registered motor vehicles of US$5m upon achievement of target FY21: Punjab have valid emission certificates under the 15,000,000.00 and US$1m for each additional 1% expanded VICS program Achievement of financial close of the PPP contract FY22 5,000,000.00 US$5m upon contract signing for eco-friendly bus services Achievement of all the bus services standards as US$5m upon confirmation of Transport FY23 specified in the PPP contract over the first 12 5,000,000.00 Department months of operation FY24 0.00 FY25 0.00 Action: This DLI has been Revised. See below. Page 22 of 36 The World Bank Punjab Green Development Program (P165388) DLI IN01245681 ACTION DLI 6 Vehicle Compliance with Emission Standards Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 25,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Private motor vehicles not covered by the Vehicle Baseline Inspection And Certification System and no electric buses Prior Result 0.00 FY19 0.00 FY20 0.00 FY21: 0.00 FY22 0.00 DLR 6-4 Legislation has been notified which includes FY23 private motor cars in the expanded vehicle and 2,500,000.00 $2.5 m inspection and certification scheme. DLR 6-1 At least 5% of the registered motor vehicles (transport vehicles and motor cars) of Punjab have valid emission certificates under the expanded VICS DLR 6-1 $5m upon achievement of program. DLR 6-2 Provincial government signs target and $1m for each additional one FY24 17,500,000.00 contract for induction of electric-buses. DLR 6-5 percent, (1%) ratio. DLR 6-2 $5m. DLR Provincial private motor vehicle inspection and 6-5 $2.5m certification scheme contract signed with service provider(s). Page 23 of 36 The World Bank Punjab Green Development Program (P165388) DLR 6-3 Pilot electric-bus performance report for the FY25 5,000,000.00 $5 m 6 month trial period. DLI IN01207440 ACTION DLI 7 Green Investments by Polluting Industries Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 30,000,000.00 0.00 Period Value Allocated Amount (USD) Formula SMEs have limited technical and financial capacity Baseline for adoption of RECP technologies Prior Result 0.00 FY19 0.00 The Program has provided grant support to SMEs in US$10m upon achievement of target FY20 at least 3 industrial sectors to pilot new RECP 16,000,000.00 and US$3m for each additional sector technologies and respond to Covid-19 impacts FY21: 0.00 SMEs supported by the Program have invested at US$5m upon achievement of target FY22 least US$3 million equivalent in Covid-19 responses 9,000,000.00 and US$1m for each additional US$0.5 and adoption of RECP technologies million invested At least 100 green micro-enterprises are supported US$3m upon achievement of target FY23 by the Program as part of Covid-19 responses of the 5,000,000.00 and US$1m for each additional 50 Government of Punjab green micro-enterprises FY24 0.00 FY25 0.00 Action: This DLI has been Revised. See below. Page 24 of 36 The World Bank Punjab Green Development Program (P165388) DLI IN01245911 ACTION DLI 7 Green Investments by Polluting Industries Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 30,000,000.00 0.00 Period Value Allocated Amount (USD) Formula SMEs have limited technical and financial capacity Baseline for adoption of RECP technologies Prior Result 0.00 FY19 0.00 FY20 0.00 FY21: 0.00 FY22 0.00 (i) $4 m for at least 100; (ii) $1 m for DLR 7-3 At least 100 micro-enterprises are another 50; and (iii) $1 m for another FY23 supported by the Program though loan and or grant 6,000,000.00 50 micro-enterprises supported by the to adopt greener practices. Program PSICs signing of FA i) $10m with at least DLR 7-1 The Program has provided loan and or grant 10 SMEs in at least 2 industrial sectors FY24 support to SMEs in at least 2 industrial sectors to 16,000,000.00 ii) $6m with at least 6 SMEs in 3 other pilot RECP technologies. sectors DLR 7-2 SMEs supported by the Program have $4 m upon achievement of target and invested at least US$3 million equivalent in adoption $1 m for each additional $0.5 m FY25 8,000,000.00 of RECP technologies either through own equivalent investment in RECP investments or obtaining loan from Government. technologies Page 25 of 36 The World Bank Punjab Green Development Program (P165388) DLI IN01207441 ACTION DLI 8 Mobilization of Sustainable Green Financing Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 50,000,000.00 0.00 Period Value Allocated Amount (USD) Formula No dedicated and sustainable source of financing Baseline available for green projects Prior Result 0.00 Punjab has adopted the legal and institutional FY19 5,000,000.00 structure of the EEF US$20m upon achievement of target Punjab has capitalized the EEF with at least US$30 FY20 30,000,000.00 and US$5m for each additional $10m million equivalent deposit to the EEF FY21: 0.00 Punjab has developed the principles for green FY22 5,000,000.00 sukuk/bonds The EEF has generated at least US$5 million in US$5m upon achievement of target FY23 revenue and has committed at least 30% of this 10,000,000.00 and US$1.5m for each additional 10% revenue to eligible projects in commitment FY24 0.00 FY25 0.00 Action: This DLI has been Revised. See below. Page 26 of 36 The World Bank Punjab Green Development Program (P165388) DLI IN01245902 ACTION DLI 8 Mobilization of Sustainable Green Financing Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 50,000,000.00 0.00 Period Value Allocated Amount (USD) Formula No dedicated and sustainable source of financing Baseline available for green projects Prior Result 0.00 FY19 0.00 FY20 0.00 FY21: 0.00 FY22 0.00 DLR 8-1 Punjab has adopted the legal and DLR 8-1 $5m, DLR 8-2 $20m upon institutional structure of the EEF. DLR 8-2 Punjab has achievement of target, & $5m for each FY23 35,000,000.00 capitalized the EEF with at least US$50 million additional $10m endowment deposit up equivalent. to maximum amount of $10m DLR 8-3 Punjab has adopted a Green Financing DLR 8-3 $5m, DLR 8-4 $5m upon Strategy. DLR 8-4 The EEF has generated at least achievement of both targets (i) (ii) and FY24 15,000,000.00 US$5 million in revenue and has committed at least $1.5m for each additional 10% increase 30% of this revenue to eligible projects. in revenue commitments FY25 0.00 Page 27 of 36 The World Bank Punjab Green Development Program (P165388) ANNEX 2: PROGRAM ACTION PLAN . . PAP_CHANGE_TBL Action Completion Description Source DLI# Responsibility Timing Measurement Action Formal Technical Planning & Due Date 01-Oct-2018 The Program No Change establishment of Development Steering the Program Department Committee was Steering established in Committee October 2018. Formal Technical Planning and Due Date 01-Oct-2019 The unit was No Change establishment Development created after the and adequate Department PSC staffing of the establishment. Program New date agreed Coordination Unit during the June 2019 mission. Formal Technical Dpt of Energy, Due Date 26-Feb-2020 Three PDUs of the No Change nomination and Transport, and Transport, Energy adequate staffing Finance and Finance of the PDUs in Departments are key implementing functional as of departments February 2020. Establishment of Technical Environment Due Date 01-Oct-2019 Social and Gender No Change a social cell within Protection Specialist have the SPIU Department joined SPIU Development of Technical Environment Due Date 30-Jun-2021 Target date Revised standard Protection updated due to operating Department the delayed procedures (SPIU) initiation of the (including for concerned chance finds) for program land acquisition activities. for green building and low-cost wastewater treatment pilots Proposed Development of Technical Environment Due Date 30-Jun-2023 Target date standard Protection updated due to operating Department the delayed procedures (SPIU) initiation of the (including for concerned chance finds) for program land acquisition activities. for green building and low-cost Page 28 of 36 The World Bank Punjab Green Development Program (P165388) wastewater treatment pilots Development of Technical All Due Date 30-Oct-2020 Completed at the No Change annual implementing department level. implementation agencies plans based on MTDF/ADP allocation consistent with Program RF and DLI requirements Develop Technical Tanners, EPD Due Date 31-Dec-2021 Targeted date Revised environmental updated due to management delayed plans for closed implementation STZ tanner sites of STZ related activities. Proposed Develop Technical Tanners, EPD Due Date 31-Jan-2024 Targeted date environmental updated due to management delayed plans for closed implementation STZ tanner sites of STZ related activities. Development, Technical Environment Due Date 18-May-2022 System in place No Change adoption, and Protection implementation Department of a Program (SPIU) M&E framework Strengthening of Technical Environment Due Date 31-Mar-2021 Delayed due to Revised Financial Protection delayed Management Department establishment of system (SPIU) SPIU. Proposed Strengthening of Technical Environment Due Date 31-Mar-2021 System in place. Financial Protection Management Department system (SPIU) Implement an Technical All Due Date 31-Mar-2021 Delayed due to Revised online implementing delayed slow Procurement agencies recruitment of Management SPIU. Information System (PMIS) Proposed Page 29 of 36 The World Bank Punjab Green Development Program (P165388) Implement an Technical All implementing Due Date 31-Mar-2021 Implementing online agencies agencies are now Procurement using the Punjab Management PPRA online Information portal that works System (PMIS) as an online PMIS for the program procurements. This is adequate for disseminating the procurement information. Establish Open Technical Environment Due Date 31-Mar-2021 Delayed due to Revised Data Portal and Protection delayed Regime Department recruitment of (SPIU) SPIU. Proposed Establish Open Technical Environment Due Date 31-Jan-2023 Water, air Data Portal and Protection pollution data Regime Department available online (SPIU) to the public. Prepare Annual Fiduciary Systems All Recurrent Yearly Plans completed Revised Consolidated implementing by July 15 of each Procurement Plan agencies year. At least 75% with Activity of planned Completion Dates contracts awarded before December 31 of each year. Proposed Prepare Annual Fiduciary Systems All implementing Recurren Yearly System in place. Consolidated agencies t Procurement Plan with Activity Completion Dates Develop an Technical DLI 6 Transport Due Date 30-Jun-2022 Agreed Terms of Marked for acceptable Department Reference for the Deletion transaction Concessionaire structure and (the Concession service level Contract) parameters for the Concession Contract for the provision of eco- friendly bus services Formal Technical DLI 7 Industries Due Date 30-Oct-2020 Formal No Change nomination and Department notification from Page 30 of 36 The World Bank Punjab Green Development Program (P165388) adequate staffing the Industries of the PDU in the Department. Industries Department . Page 31 of 36 ANNEX 3: Expenditure Framework Changes After the Restructuring Program Scope Budget Item GS No Brief description Resp. Dept. Est. eligible costs Remark (US$ million) Results Area 1: Strengthening Environmental Governance New organizational setup; Original activities without operating costs under the changes EPD Restructuring 9293 Program; capacity building for 22.6 EPD and other relevant departments Establishment of Environmental Creation of new center; Technology Center (ETC) 9291 consultancy services; staff hiring; 3.5 operating costs under the Program EPD Establishment of Environmental Water monitoring stations, mobile EPD Restructuring Monitoring Center (EMC) monitoring equipment, and a TBD 35.2 reference laboratory; certified green building Establishment of Environmental Creation of new center; staff Policy Center (EPC) TBD hiring; operating costs under the 2.3 Program Air and Water Quality Monitoring 9288 Air monitoring stations, monitoring 10.3 Capacity Building vehicles, monitoring equipment Revision, Development of 9282 Consulting services 0.3 Environmental Quality & Industry Specific Standards EPD Regulatory Policy and regulatory reform TBD Consulting services 5.0 Reform Expansion of Vehicle Inspection and TBD Transaction advisory services for 0.5 Certification System public private partnership (PPP) Transport Study on Safety and Emission TBD Consulting services 0.3 Compliance of New Vehicles Citizen Public disclosure, awareness raising TBD Consulting and non-consulting EPD 3.2 Engagement and citizen engagement services Strengthening of Strategic Planning & 9287 Staff hiring; operating costs under 7.6 Implementation Unit (SPIU) the Program EPD Establishment of Coordination Unit in TBD Staff hiring; operating costs under 1.68 $1.7m. Added in line with Implementation P&DB the Program P&DB the Program Appraisal Support Document Technical support for program TBD Consulting services 4.6 EPD implementation Original activities without Independent Verification TBD Consulting services P&DB 1.2 changes Subtotal 96.6 Increased by $1.7m Results Area 2: Promoting Green Investments Green Financing Strategy TBD Consulting services Finance 1.7 Reduced from $2.7 m to Green Financing $1.7 m Environment Endowment Fund (EEF) TBD Fund capitalization EPD 55.0 Energy Efficiency & Conservation 8254 Non-consulting services 22.9 Program Energy Solar Equipment at Public Institutions New Non-consulting services 10.0 Public Sector Eco-friendly bus service in Lahore New PPP Contract 10.0 Investments Pilot of e-vehicles New Matching grants Transport 5.0 Original activities without Pilot of low-cost wastewater New Works EPD 9.0 changes treatment Pilot/demonstration of RECP 9284 / 9292 Works/goods 47.8 Technologies / 9289 Private Sector Support to Sialkot Tanneries TBD Works/goods Industries 9.0 Investments Support to Green Micro-enterprises New Matching grants 5.0 Sub-total 176.4 Reduced by $1.7 m 32 273.0 No change 33 ANNEX 4: Verification Protocol Table: Disbursement Linked Indicators DLI 1 - DLR 1-4. (i). Description Non-scalable/Not time-bound. Improving Clean Air Policy and  The Clean air Policy and Action Plan with targets notified will identify (a) adequate policy measures, actions and EPD Capacity Action Plan with targets to address air pollution including relevant department implementation responsibilities. targets notified*  Evidence of consultations with Government Departments and a relevant consultative forum such as Punjab Environment Protection Council.  Document should be approved by the Cabinet and notification in Government Gazette. Verification  Data source: EPD.  Verification entity: Firm competitively recruited.  Procedure: EPD to provide evidence of approved and published reports, meeting minutes of consultations and Punjab Cabinet approval. Firm to verify the records. DLI 3 – DLR 3-3 and 3-4. Description Non-scalable/Not time-bound. Disclosure of EPD has (i) published  The State of Punjab’s Environment reports shall cover (a) assessment of air, surface water and groundwater, Environmental the first/second State and soil quality, as extracted from the available monitoring data; (b) assessment of Information of Punjab’s pollution sources that contributed to air, water, and soil pollution, including a summary inventory of pollutants, and Citizen Environment reports detailing time and intensity thereof; (c) assessment of environmental performance of wastewater treatment facilities Engagement and (ii) carried out and solid waste management facilities; (d) measures taken to control pollution and improve environmental quality; (e) relate stakeholder summary of environmental complaints received, classified by type of environmental issue, as well as actions taken in consultations. respect thereof; (f) public feedback on the report and EPD’s responses thereto; and (g) GoPunjab’s environmental action plan for the following calendar years.  It is expressly noted that the first such report might not contain such a detailed level of information and analysis as subsequent ones. Secondary data sources may be used if primary sources are unavailable.  “Stakeholder consultations” will be deemed satisfactorily “carried out” on completion of at least two rounds of public commenting, one on the proposed content of the report and another on the draft report,through formal hearings and at least two weeks online public comment period on the EPD’s website. For public hearings, all concerned GoPunjab departments, chambers of commerce, industrial associations, civil society organizations, the media, and donors shall be invited. Verification  Data source: EPD.  Verification entity: Firm competitively recruited.  Procedure: EPD to provide evidence of invitations and records of public hearings, online posting and commenting, and published reports. Firm to verify the records. DLI 6 - Vehicle DLR 6-1. At least 5% Description Scalable/Not time-bound. Compliance of theregistered  The registered motor vehicles refer to vehicles registered with, and paying token tax to, the Punjab Excise and Taxation with Emission motor vehicles of Department. Standards Punjab have valid  The percentage of registered motor vehicles with valid emission certificates under the expanded VICS program will be emission certificates measured against the number of registered motor vehicles (rolling fleet) in the year of underthe expanded Verification, against the legal requirements for such compliance. 34 VICS program. Verification  Data source: Transport Department and VICS concessionaires.  Verification entity: Firm competitively recruited.  Procedure: Transport Department, the relevant Authorities, VICS concessionaires to provide current records on motor vehicles paying token taxes, issued with certificates issued by the expanded VICS program. Review compliance requirements again the relevant legislation. Sample survey may be used to verify records and a sample of facilities may be visited and other appropriate survey techniques deployed. Firm to verify. DLR 6-2. Provincial Description Non-scalable/ Not time-bound government signs  Contract signed for induction of electric buses between Government of Punjab and provider of electric buses. contract for induction Verification  Data source: Transport Department. of electric-buses  Verification entity: Firm competitively recruited.  Procedure: Evidence and provision of signed contract DLR 6-3. Pilot Description Non-scalable/ Not time-bound electric-bus  Independently written report which details the key performance findings of the PGDP electric- bus scheme. performance report  The report will include a technical description of the implemented scheme, bus specifications, performance against for the 6 month trial those specifications, operational costs, maintenance requirements and sustainability of the scheme. period  Firm to verify Verification  Data source: Transport Department.  Verification entity: Firm competitively recruited.  Procedure: Review of report, site visit to Punjab electric bus depot. Review of record of operations to confirm general report findings on the bus operations. DLR 6-4. Legislation Description Non-scalable/ Not time-bound has been notified  Punjab Government Gazette notification of amendment to relevant legislation making provision for inclusion of private which includes motor vehicle emissions testing. private motor cars in the expanded Verification  GoPunjab will provide copies of official notifications for the inclusion of private motor vehicle emissions testing under vehicle and amendment of relevant legislation. inspection and certification scheme DLR 6-5. Provincial Description Non-scalable/ Not time-bound private motor  Punjab Government signed contract with service provider for provincial private motor vehicle inspection and vehicle inspection certification scheme and certification Verification  Data source: Transport Department. scheme contract  Verification entity: Firm competitively recruited. signed with service  Procedure: Evidence and provision of signed contract provider(s) DLI 7 - Green DLR 7-1. The Description Scalable/ Not time-bound Investments Program has  (i) $10 m upon PSICs signing of finance agreements with at least 10 SMEs in at least 2 industrial sectors; (ii) $6 m upon by Polluting provided loan and or PSICs signing of finance agreements with at least 6 SMEs in 3 other industrial sectors. Industries grant support to  Will be achieved upon Bank of Punjab or Punjab Small Industries Corporation (PSIC) signing of loan or grant SMEs in at least 2 agreements including for stone crushing, steel smelting, steel rolling, rice husk and tanneries) or other activities as industrial sectors to may be accepted by PGDP. 35 pilot RECP  The financial agreements may also specify environmental and social requirements for the agreed investment technologies. activities. Verification  Data source: Relevant financial institutions supporting PGDP including Bank of Punjab and Punjab Small Industries Corporation (PSIC)  Verification entity: Firm competitively recruited.  Procedure: PGDP selected financial institutions (Bank of Punjab and PSIC) to provide evidence of signed financing arrangements; firm to verify. DLR 7-2. SMEs Description Scalable/Not time-bound. supported by the  “RECP technologies” means any investments that improve resource efficiency and cleaner production, and achieve Program have environmental compliance of industrial production. invested at least  The amounts mobilized shall consider the capital invested and direct financial costs (for example, cost of labor) incurred US$3 million by SMEs (i.e., private co-financing), netted from any amounts contributed by the Program. equivalent in Verification  Data source: Relevant financial institutions supporting PGDP including Bank of Punjab and Punjab Small Industries adoption of RECP Corporation (PSIC) technologies either through own  Verification entity: Firm competitively recruited. investments or  Procedure: Relevant financial institutions supporting the PGDP to maintain and provide records of RECP obtaining loan. investments; firm to verify records and visit sample of beneficiaries to verify investments. DLR 7-3. At least Description Scalable/Not time-bound. 100 micro-  $4 m for at least 100 micro enterprises supported by the Program; (ii) $1 m for another 50 micro-enterprises supported enterprises are by the Program; and (iii) $1 m for another 50 micro-enterprises supported by the Program. supported by the  Greener practices are as defined by the relevant financial institutions supporting PGDP. Financing support to tractors is Program though specially excluded. loan and or grant  Micro-enterprises generally mean small family run businesses or businesses with a small turnover as may be serviced by to adopt greener PSIC. practices. Verification  Data source: Bank of Punjab and or PSIC  Verification entity: Firm competitively recruited.  Procedure: Relevant financial institutions supporting the PGDP to maintain and provide records of loan and or grant support. Firm to verify records and visit sample of beneficiaries. DLI 8 - DLR 8-3. Punjab Description Non-scalable/Not time-bound. Mobilization of has adopted a  Green Financing Strategy report adopted by the Punjab Cabinet Sustainable Green Financing  The strategy will spell out the feasible options and approach which Government could take to operationalize various Green Financing Strategy. green financing approaches including potentially the implementation of green banking guidelines, support to green SMEs, public private partnerships in environmental infrastructure, green bonds/ establishment, and replenishment of the EEF, and innovative green or climate change related fees, levies or taxes. Verification  Data source: Finance Department.  Verification entity: Firm competitively recruited.  Procedure: Finance Department to provide copy of report, evidence of adoption by Punjab Cabinet. Firm to verify. 36