Project Management

Group : CHARLIE CHARLIE

New Balakot City Development (NBCDP)

District/Tehsil : Mansehra

Cost: PKR 12000 Million/ US $ 200 Million

Prepared By: Urban development Program (ERRA)

Submitted by:
Saad Waqas Phool (01-120102-064)
Waheed Zafarr (01-120102-084)
M.Waqas Ashraf Bajwa (01-120102-051)
Tahir Ali Shah (01-120102-078)
Raja Shahbaz Hassan Kayani (01-120102-059)
Syed Hammad Ghaznavi (01-120102-074)

Submitted to:
Sir. Zahid Majeed
1
TABLE OF CONTENTS
LIST OF ACRONYMS USED ............................................................................................................................. 3
GOVERNMENT OF PAKISTAN ........................................................................................................................ 4
2. Location of the project .............................................................................................................................. 4
3. Authorities Responsible for: ..................................................................................................................... 4
4. Plan Provision ............................................................................................................................................ 4
Relation of the Project with the Sector Objectives....................................................................................... 6
6. Project Description Justification, Technical Parameters and Technology Transfer Aspects .................... 6
Master plan and its Execution ...................................................................................................................... 8
Implementing the town plan ...................................................................................................................... 10
Recovery of the city .................................................................................................................................... 11
Justifications................................................................................................................................................ 11
Scope of the project .................................................................................................................................... 12
Planning Parameters. ................................................................................................................................. 13
Cost Estimate of Individual Projects ........................................................................................................... 16
Project cost Breakup (Rs. In Millions) ......................................................................................................... 17
8. Annual Operating and Maintenance Cost........................................................................................... 17
9. Demand and Supply Analysis .............................................................................................................. 17
10. Financial Plan and Mode of Engineering......................................................................................... 18
Summary cost of the Project....................................................................................................................... 18
Financial phasing ......................................................................................................................................... 19
Physical phasing .......................................................................................................................................... 19
10. Mode of financing ........................................................................................................................... 19
11. Project Benefits and Analysis .......................................................................................................... 20
Environmental Aspects ............................................................................................................................... 20
12. Implementation Schedule ............................................................................................................... 21
13. Management Structure and Man Power Requirements ................................................................ 22
Project management structure ................................................................................................................... 23
13.2 Man power required for the execution and operation of Project ...................................................... 24
Annexures ................................................................................................................................................... 24

2
 LIST OF ACRONYMS USED

NWFP North Western Frontier province

BDA Balakot Development Authority

DRU District Reconstruction Unit

EQA Earthquake Affected Area

ERRA Earthquake Reconstruction and Rehabilitation Authority

GOP Government of Pakistan

NGO Non-Government Organization

NBCDP New Balakot City Development Project

NESPAK National Engineering Services Pakistan Pvt. Ltd

PEA Preliminary Environmental Assessment

PERRA Provincial Earthquake Reconstruction and Rehabilitation

Agency (NWFP)

ECNEC Executive Committee of the National Economic Council

AWP Annual Work Plan

PMU Project Management Unit

PSC Project Steering Committee

P.D Project Director

COS Chief of Staff, ERRA

US$ United States Dollar

Rs. Pakistani Rupees

3
 GOVERNMENT OF PAKISTAN
Planning Commission

(PC-1 Form-infrastructure Sectors)

1. Name of scheme/Project
New Balakot City Development Project, District/Tehsil Mansehra.

2. Location of the project

The project area lies between two arterial roads namely Karakorum Highway about 4 km on
west and Mansehra Narran Road at a similar distance on the east near Attarshisha about 15 km
from Mansehra city. The location plan is attached at (Annexure-A)

3. Authorities Responsible for:

Sponsoring ERRA

Execution Project Management Unit, ERRA

Post-Completion O&M Government of NWFP/BDA

Consultant NESPAK

Concerned Federal Ministry Prime Minister’s Secretariat (Public), Islamabad

4. Plan Provision
The project is a part of ERRA’s Reconstruction and Rehabilitation Program prepared for the
urban area i.e. urban development program. The project will partly be funded from foreign
sources, partly from the GOP funding. The Libyan Government has made a pledge to take up
and complete the projects worth US$ 25 million through Gaddafi foundation for development
on “Turkey Basis”. The detail of funding is as under:

Libyan Government Non-Budgetry Assistance US$ PKR

DFIF Budgetry Support 35 2100

Saudi Fund Foundation 70 4200

Balance Required from GOP 70 4200

4
 TOTAL: 200.00 12000

 If the project is included in the medium term/five year plan, specify actual allocation.
 If not included in the current plan, what warrants its inclusion and how is it now
proposed to be accommodated.
 If the project is proposed to be financed out of Block Provision, indicate:

Total Block Provision Amount already Amount proposed for Balance available
committed this project
Rs. 35 Billion Rs. 12 Billion Rs. 4.2 Billion Rs. 18.8 Billion

Provision in the current year PSDP/ADP

In federal PSDP 2007-08, a block allocation of Rs. 35 Billion is made for ERRA’s Programs and
the project is part of it.

Project objectives and its relationship with sector objectives

Project Objectives

The project objectives inter-alia includes to

 Develop/construct public infrastructure destroyed by October 8, 2005 earthquake in an

improved, integrated and futuristic manner at a comparatively safe location for
residents of old Balakot city.
 Shift the earthquake affected population of old Balakot town to seismically safe
location.
 Reviving their livelihood, to create additional employment opportunities.
 Providing them modern infrastructural services and cost effective utilities.
 Provide them better standards of living, under ERRA’s overarching principle of “Build
Back Better”.
 Integrate the population of new Balakot city and provide them facilities at par with any
modern city.

5
Relation of the Project with the Sector Objectives

The urban development program is sub-sector of ERRA’s housing sector. The project objectives
are very closely related to program’s objectives set forth for the housing sector in line with
national housing targets. ERRA is implementing the program in accordance with Urban
Development strategy, which has already been approved by ERRA council. The strategy
envisages reconstruction of urban areas in a holistic manner with sound infrastructure based on
contemporary principles of town planning the NRM standards. The Prime objectives of the
program are as under:

 Rebuilding to an enhanced level of functionality than existed before the earthquake.

 Ensure provision of improved social service delivery and cost effective Utilities.
 Rebuild not just the physical infrastructure, but also the infrastructure of the city.
 Improve the quality of life of the residents, by complete master planning of earthquake
affected urban area.
 Comprehensive and integrated development of urban areas, to convert these into
engines of Economic Growth.
 Sustainable development through creation of livelihood opportunities, Social Inclusion
and environment conservation.
 Moreover, rebuilding of infrastructure resistant to future disasters.
 Ensure provision of improved social service delivery and cost effective utilities.

6. Project Description Justification, Technical Parameters and

Technology Transfer Aspects

A devastating earthquake with a magnitude of 7.6 struck the northern part of Pakistan on
October 8, 2005 and caused heavy damages to both rural and urban areas alike destroying
infrastructure, settlements, schools, health centers, shops and public buildings. In urban areas
the hardest hit of entire area was the fateful Old Balakot town, being closest to the epicenter.
The Government of Pakistan had no institutional setup available to effectively respond to a
disaster of this magnitude. Taking notice of the situation and given the urgency earthquake
reconstruction and rehabilitation authority (ERRA) was established by the present government
under a notification dated 24th October, 2005 of Prime Ministers Secretariat as an autonomous
organization to provide for post disaster damage assessment, reconstruction and rehabilitation
of the areas affected by the earthquake of 8th October, 2005.

6
Following the establishment of ERRA, separate Sectoral strategies were prepared for each
sector, including urban Development Strategy that deals with reconstruction and rehabilitation
of urban areas. Development of new Balakot city is one of the main projects of Urban
Development Program prepared in line with the urban development strategy. The strategy
covers the overarching principles, visions, plans, approach and methodology for the
reconstruction and development of all major earthquake affected urban centers. The dominant
theme of the urban development program is to “Build Back Better planned cities”.

The Balakot city was a regional hub of socio-economic activities and also a key staging post for
the tourists proceeding to the Kaghan Valley. Balakot had a population of 34721 people (1998-
census) and had an estimated population of 44850 in 2005. The city lost 5000 precious lives due
to earthquake, and degree of destruction to infrastructure was estimated up to 95%. According
to the census survey carried out by NESPAK in the old Balakot Town in August- September
2006, around 75% (3154 families) of the affected families are present in and around Old Balakot
Town. 22% (910 families) of the affected families shifted to other places in the country. Out of
the rest 2.6% (111 families) are present in Mansehra and the rest at locations like Bagh,
Islamabad and Lahore etc. it shows that the majority of the population is present in and around
Balakot waiting for a permanent solution to revitalize there badly affected lives and livehoods.

Prior to start designing and planning exercise, detail seismic studies were conducted by the
consultant NESPAK namely; ‘Seismic Hazard Microzonation of Major Towns Affected by
Earthquake of October 08, 2005. According to the report; Balakot area is bounded by two active
regional thrust features on either side trending in almost northwest direction. These features
include Main Boundary Thrust (MBT) in the west and Himalayan Frontal Trust (HFT) in the east.
These thrust are about 0.28 km and 0.71 km from Balakot Bridge on Kunhar River respectively
and area considered capable enough to generate moderate to major earthquakes. On the basis
of the synthesis of various hazard and ground conditions the entire Balakot center lies in Highly
Hazardous area. The remaing area on the west lies in relatively High Seismic Zone, map
attached at Annexure-B. the study recommended that the area identified in a highly hazardous
zone are not recommended for any reconstruction activity. The remaining area categorized as
relative “ high Seismic Hazard zone” may not require shifting and reconstruction activity may be
undertaken. Based on these recommendations, the Govt. of Pakistan took the decision of
shifting the town of old Balakot to Bakryal, District Manansehra, located at about 20 km
south=west of old Balakot Town.

Pursuant to the seismic analysis and decision of the Govt. to relocate the entire city to a new
seismically safe place, a detailed study was carried out by NESPAk for the alternative sites of the
New Balakot City. Nearly 12 sites were proposed, for details see Annexure-C. However the sites
was selected after consultation with the stakeholders near Bakryal village to relocate the

7
affected population of Old Balakot Town. In order to develop a modern worth living town that
reduces the miseries and suffering of affected people. The proposed city was master planned
on the proposed piece of land. A detail town plan along with all requisite sub-plans are
prepared for the development of state of the art Town.

After finalization of site the master planning of the city was entrusted to NESPAK primarily to
accommodate the displaced population of old Balakot city with secondary objective of
integration of new Balakot city population, already residing at the project sites. ERRA has
developed a holistic urban development framework for development of the city by adopting a
“people centered approach” for the implementation of the vision and development plan of the
city. NESPAK was then appointed as consultant detail supervision of the project. A piece of
measuring 10000 kanals has been earmarked and notified by the provincial Govt. for the
development of a new Balakot city. A sum of Rs. 1.5 billion has already been disbursed to the
provincial Govt. as per cost of land estimated by the NN.W.F.P Govt. for the completion of land
acquisition process. Nevertheless land acquisition process will be completed with in the
allocated amount; exact area of the master plan will be adjusted after the completion of land
acquisition process.

Master plan and its Execution

The shared vision

The catastrophe that stuck Pakistan on October 8 provided a unique opportunity to improve
design, functionality and quality of life within affected cities. Before embarking on this journey
a shared vision for each city is evolved. A shared vision depicts “what a city will look like after its
reconstruction” defining the city’s shared vision is probably the single most important activity in
its rebuilding, because the shared vision is the aim of the rebuilding endeavor. The vision of the
city is not a static picture but rather a policy statement to show how the city will recover from
the disaster and what functions and roles the city will perform in the future. The process by
which the shared vision is evolved is as critical as the shared vision itself, without a shared
vision there can be no Town Plan nor can Town planning start in earnest. The overarching
theme and overarching principles guide the shared vision of each city.

The shared vision of each town intend to achieve all goals of urban planning adumbrated in
vision-2030 and medium term development framework-2005 of the Govt. of Pakistan. The
shared vision addresses the employment, tourism and strategic aspects, appropriately. The
master planning revolves around a concept of rebuilding self-sustainable city, which would
provide environmentally sustainable and seismically safe settlements.

The nature of the town plan

8
The city is developed on contemporary principles of town planning with a view to serve as a
model regional economic centre and tourism hub. A town plan has been prepared with
futuristic approach covering 25 years vision, requirements and addresses certain factor such as:

1) The orderly arrangement of all part of the city (residential. Business and industrial) so
that each part will perform with minimum cost and conflicts.
2) An efficient system of circulation (modes of transportation) within and outside the city.
3) The development of each part of the city to optimum standards, in terms of lot size,
sunlight, environment quality, green space in residential areas, and parking and building
spaces in business areas.
4) The provision of safe, sanitary and adequate housing in a variety of dwelling types to
meet the needs of all families.
5) The provision of recreation, school and other community and civic services of adequate
size, location and quality.
6) The provision of adequate and economical water supply, sewerage, utilities and public
services.

ERRA master plan is basically ‘rehabilitation and development plan for the city. It will be
undertaken in a planned way to achieve the potential benefits from each area like tourism city,
commercial hub, education city, handicrafts center etc. to create facilities for the future
population under the overarching theme of “ build back better”. Overall financial outlay and
management resources required to develop the city are worked out with focus on integration
of corporate and social responsiblities, as well as the reinforcement of local characteristics like
tourism potential and environmental resources.

ERRA has worked in a holistic and integrated manner to add value to the proposed master plans
for strategic macro-planning based on the collective needs of people and socio-economic
potentials of areas. The environmental measures like development of the town in accordance
with topography of the area, conservation of natural resources are being adopted to take
maxium benefits from natural resources and mountains terrain of the area. The master plan
duty caters for gender sensitivity, social integration and environmental protection. All new
construction works will be earthquake resistant based on the newly developed seismic sensitive
building codes-2007 and environmentally protected.

The master plan is based on strong analytical basis and justifies the proposed land uses and
plan would be finalized through the land adjustment planning and continuous consultative
process with local community. A proper institutional framework will also be put in place to
properly implement and complete the proposed development. Efforts are made to keep the
proposed plans flexible as much as possible. In order to accommodate necessary changes and
the potential opportunities available through public-private partnerships.

9
The in-depth studies and surveys have already been finalized and being incorporated in to the
master planning proposals, and micro-planning will be done with maximum use of limited
availability. Future physical development will be strictly governed by the revised seismic
sensitive building codes-2007 and regulations under preparation which will be more stringent.

Implementing the town plan

Setting priorities and dealing with phasing

to develop a city within shortest time span two things need special consideration priorities and
phasing. Priorities deal with important – priorities are basically management value judgment –
driven by the programe mission, goals and objectives therefore project has been appropriately
priorities.

Phasing deals with the order or scheduling of tasks to optimize performance. There is also an
element of priorities in phasing is setting the stage for events to unfolds as planned e.g, making
sure that concrete arrives at the time the masons are ready to work is a matter of planning. In
setting priorities ERRA looked at three spheres of involment, because these spheres of activities
are being developed in unison:

a) Private housing stock: this is a single most important need for every individual (
with its linked support activities, water, sewer, gas and eleciticityetc). this becomes
complex and urgent without housing there can be no resident, without resident there
can be no city. The affected residents cannot return without engage in livehoods start
putting their lives back in order, or be productive members of the urban community
unless cities are properly developed.
b) Governance buildings: this provides the organization and basis services necessary for
functioning of urban area and therefore this area must be rebuilt in parallel with the
development of the urban areas to maintain the provision of services and support the
rebuilding activities. This has also been prioritized accordingly.
c) Commercial/Livelihood creation: this provides the economic engines for the urban
areas and its surroundings. It is key sector for livehoods, trade and commerce.

10
Recovery of the city
For the recovery of the cities, ERRA urban development strategy adumbrates the following
principles.

Self-help, Mutual-help and governance assistance

Self-help ,Mutual-help and governance assistance are the basis concepts that will be applied for
the recovery of the cities. It is especially important to involve the effected population in the
recovery process.

Redevelop an urban fabric that is resistant to natural disasters

Redevelopment should be conscious of the need that what happened to the urban program
cities should not be repeated in the future. The ultimate aim is to develop an urban fabric that
is resistant to natural disasters.

Phased recovery and reconstruction process

The recovery process is planned to include two phases: rehabilitation and reconstruction
period, and full scale reconstruction required under the cover arching theme of build back
better and for future requirement of the city.

The implementation of the town plan is basically the process of pririoriting, phasing,
coordinating, budgeting, scheduling, monitoring, effective and efficient implementation as per
approves master plan. The master plan prepared by the consultant NESPAK was presented at all
the stakeholders and subsequently to the Chief Minister NWFP who accorded its approval is
now being implemented in two phases.

ERRA has also prepared the disaster risk management plan for each earthquake affected district
as well as the contingency plans for effective risk reduction and preparedness to combat any
future earthquake hazard.

The Govt. of NWFP and ERRA is also working on the development of tourism master plan to
augment the regional connectivity and affordable tourist attraction with strategic facilitation
centers at easy accessible locations in order to tap the potential revenue from regional tourism
and to create livelihood opportunities in the area.

Justifications
The Balakot city sustains 95% damage to infrastructure and consumed 5000 precious lives
during the Oct 2005 earthquake. The later seismic microzonation studiesrecealed that the site
is seismically unsafe as two fault lines are crossing through heart of the city. ERRA in

11
consultation with all stakeholders took a decision to develop a new scale at a comparatively
seismically safe place close to the one to protect the social milieu. In order to accomplish this
objective a new city is required to be developed on the basis of sound urban development
principles needs of the city. This necessitated construction of infrastructure on new standards
of seismic safety, service delivery and provision of modern facilities like roads, bridges, market,
parks etc.

A number of projects have been identified by the consultant on the basis of master plan and
carrying out assessment for the next 25 years. In order to develop a modern, seismically safe
improves urban settlement for residents of Old Balakot city development of this New Balakot is
apply justified.

Scope of the project

This city development project covers constructive/development of physical. Social, economic,
recreational and communication infrastructure in Balakot City required for a modern city. The
identifies projects are broadly divided in to ten components and cover a broad spectrum of
facilities including road and bridges, water supply and sanitation, sewerages and draining
system, neighborhood development . town center , parks and mosques, electricity, gas and
telephone etc. the project list indicated below is indicative in nature exact number, type and
cost shall be in accordance with ground realities and requirements. For each individual projects
our detailed design will be prepared with corresponding detail cost estimate on prevailing
market rates plus premium. Each PC 1 prepared will be placed before competent forum for
approval before actual execution of the project. Each project is also required to be cleared from
the project steering committee as detailed in the project management structure section of this
PC-1.

The scope of the project under broad categories is as under:-

Sr.# Item Description Quantity

1 Sub neighborhood
Centers
2 Neighborhood Centers
3 Town Centers
Comprising mohallah mosque, 7 No
mohallah primary school, and
commercial areas within walking
distance of 5 mints
comprising jamia mosque, park, 2 No
secondary school,basic health unit,
vocational training institute and
commercial centre area within
working distance of 10 mins.
Includes Boys & Girls degree 1 No
colleges, Markazi Mosque, tehsil

12

4 Road networks and
ancillary
works/structures
5 Water supply schemes
with reservoirs
6 Sewerage system
7 Storm drainage
8 Electrification/sui Gas
9 Community services
10 Tourism/landscaping
Headquater complex, commercial
area, civic centre and play land/
park.
Comprising roads, collectors and 80 kilometers
streets, R.O.W ranging from 40 to 80
feet
Underground and surface supply 180 kilometers long
from siren rivers, mostly gravity pipeline
based(130 meter level difference) &
minimum pumping requirement
Comprises sewage treatment plant 170 km long
and R.C.C sewer lines with brick
masonry manholes and
Separate RCC open-drains and 66 km long
culverts (single and double)
Comprises network for For entire city
electrification, sui gas and Grid
station
Includes fire stations, grave yard, Adequate in number
officers club and bus stops etc
For creation of livelihood For entire region’s
opportunities promotion of Eco- requirement and city
tourism and Landscaping of the city

Planning Parameters
The new site lies between two national arteries; location of the new city holds the opportunity
to exploit the potential of both the arteries in terms of economic benefits, through tourism and
trade activities. New Balakot city will naturally take the character from Old Balakot as the
Gateway to the beautiful valleys of Naran and Kaghan due to its location. Moreover, as it is
located only 20 kilometer form the Old site therefore will not be any major culture shift in the
milieu.

The New Balakot city is being developed as a self sustained urban settlement equipped with all
necessities of modern life, essential civic amenities and as an attractive tourism and industrial
center on multiple growth pole planning concepts. The planning exercise is derived from ERRA
‘s guiding principle of “build Back Better Planned Cities”.

The development of New Balakot town has been proposed as inducing a growth pole in the
surroundings of Mansehra City, which will be dependent on its parent city. In the early years of
its development it aims at proving functionally safe neighborhoods, making amenities and

13
facilities assessable to all residents. It will be developed as a contemporary model town, based
on community requirements and life style of the target population, providing functionally safe
neighborhoods , making amenities accessible to all. The town is being developed a s per
Topography, to make it economically viable, crating an environmentally sustainable and
seismically safe community,

The sub neighborhood level facilities comprise of Mohallla mosque, Mohalla parks, primary
schools and tertiary level commercial arteries. A sub neighborhood serves around 4000 to 5000
population. It is located within 5 minutes walk from all the houses in the sub neighborhood. The
neighborhood center is located within ten minutes walking distance from all the houses in the
neighborhood, its serve a population of about 12000 to 15000. It comprises of higher order
facilities like Jamia mosque , secondary schools (separately for boys and girls), neighborhood
level commercial facilities basic health units and neighborhood parks. The town center is
located within a distance of walking distance. It offers facilities of the highest order including
boys degree college, girls degree collage, town hospital, tehsil municipal complex and Jamia
mosque, central level commercial and recreational facilities.

In order to address the problems of circulation of pass roads and ring roads are being provided
to avoid the vehicular traffic congestion of town. For smooth traffic flow, the increased
widths/right-of-way for primary, secondary and tertiary road is being kept. Also, the traffic
linkages among all towns and other cities including Islamabad are being planned in a regional
context.

Environmental impact assessment and detailed review of related environmental issues, as a s

well environmental plan of the city is being prepared. ERRA has initiated requisite action there
on, EIA report will be submitted along with umbrella PC-1 of the project. The “land” uses and
area “zoning” is worked out as per the criteria lay down in the geological and seismological
studies and detailed analysis of local nature. The detailed cost estimates will be worked out
after the detailed designing of the project and will be catered in their respective PC-1s.

14
 New Balakot City Development Project
List of Projects and Rough cost estimate for the period
Phase-1(2007-2010), Phase-II (2010-2012)
Sr.no Components Physical MPRK MUS $
phasing
1 Establishment of I 105 1.75
PMU
Infrastructure
2 Road Walkways I 1596.6 26.61
and Anciliary
Works
3 Bridges, Culverts I 508.8 8.48
and Protection
Walls
4 Drainage System I 342.6 5.71
5 Water Supply I 1257.6 20.96
System and Storage
Reservoirs
6 Sanitary Sewerage I 507.6 8.46
System
7 Sewage Treatment II 291 4.85
Plant
8 Electrification II 492 8.2
9 Grid Station II 161.4 2.69
10 Sui Gas II 178.2 2.97
Sub-total 5335.8 88.93
Buiding Works
11 Health Sector
i. Tehsil Headquater I 120.6 2.01
hospital (1 No)
ii. Basic Health Unit II 7.8 0.13
(1 No)
Sub-total 128.4 2.14
12 Education Sector
i. Primary School I, II 308.4 5.14
(10 No)
ii. Secondary School I 114 1.9
(2 NO)
iii. Girls Degree I 210 3.5
College (1 No)
iv. Boys Degree I 258.6 4.31

15
 College (1 NO)
v. Vocation Training I 198 3.3
Institue (1 No)
Sub-total 1089.0 18.15
13 Community
Services
i. Markazi Mosque I 99 1.65
(1 No)
ii. Mohalla Mosque II 84 1.4
(7 No)
iii. Jamia Mosque (2 I,II 68.4 1.14
No)
iv. Grave Yard I 20.04 0.34
v. Fire station I 86.4 1.44
vi. Bus stop (4 NO) I 10.2 0.17
vii. Playland/Park I,II 174 2.9
viii. Officers Club I 130.8 2.18
Sub-total 673.2 11.22
14 Commercial
i. Core Commercial I 1765.2 29.42
Area
ii. Slaughter House I 108.6 1.81
Sub-total 1873.8 31.23
15 Civic Center I 272.4 4.54
16 Development of II 300 5
Tourist Industry
17 Tehsil Headquarter I 348.6 5.81
Complex
18 landscaping II 363.6 6.06
Sub-total 10489.8 174.83
Contingencies on 1048.8 17.48
Base cost@ 10%
Total 11538.6 192.31
Consultancy fee 4% 461.4 7.69
Grand Total 12000 200

Cost Estimate of Individual Projects

ERRA would finalize unit –rates and project cost as per the standard engineering
procedures/methodologies adopted for projects being implemented by ERRA after fulfilling
codal requirement.

16
 Civil Vehicle Increment Consultancy Operational Miscellaneous Price and Total
Works Equipments Staff cost Physical Amount
contingencies

10384.6 14.86 70.47 461.4 17.61 475.5 1000 12000

 For each individual project to be financed under PC-1 the detailed design and BOQs shall
prepared with corresponding cost estimates, based on prevailing market risk plus
admissible premium.
 Construction rate shall be on competitive bidding bases among the prequalified
contractors of ERRA.
 For each project, a separate PC-1 shall be prepared and put up before the competent
forum for approval before its actual execution.

Project cost Breakup (Rs. In Millions)

8. Annual Operating and Maintenance Cost

All the projects completed under NBCDP shall become property of government NWFP which
shall also be responsible for regular operation and maintenance of these projects out of their
own annual budgetary allocation. The projects after completion shall be handed over to Balakot
Development Authority which will be put in place by that time.

9. Demand and Supply Analysis

Keeping in view the governments decisions to shift the population of Old Balakot town to a safer New
Balakot city a demand for new urban settlement exist. The development of city ( supply) is justified by
the demand created by the government decision. A complete demand and supply analysis is not
applicable at this stage, nevertheless will be carried out for each individual projects.

17
10. Financial Plan and Mode of Engineering.

Funding sources

US$ PKR

Lobyan government non budgetary assistance 25 1500

DFID budgetary support 35 2100

Saudi fund contribution 70 4200

Balance required from GOP 70 4200

Total: 200.00 12000

Summary cost of the Project

New Balakot City Development Project
Summary Cost Estimates
Serial no Components MPRK MUS$
1 Establishment of PMU 105 1.75

2 Infrastructure 5335.8 88.93

3 Health Sector 128.4 2.14

4 Education Sector 1089.0 18.15

5 Community Services 673.2 11.22

6 Commercial 1873.8 31.23

7 Civic Center 272.4 4.54

8 Development of Tourist 300 5

Industry

18
 9 Tehsil Headquarter Complex 348.6 5.81
10 Land Scaping 363.6 6.06
Contingencies on Base 10489.8 174.83
cost@ 10%
Total 1048.8 17.48
Consultancy fee 4% 11538.6 192.31
Grand Total 461.4 7.69
12000 200

Financial phasing
Items Millions (Rs.)
Year 1 Year 2 Year 3 Year 4 Year 5
Infrastructure 600.60 1613.04 2098.69 1769.45 432.33
Works
Building 1549.46 1379.85 1118.96 899.92 537.14
Works
Escalation @ - 194.54 431.89 555.09 277.72
6.5% per
annum
Total 2150.06 3187.43 3649.54 3224.46 1247.19

Physical phasing

10. Mode of financing

US$ PKR

Libyan government 25 1500

DFID budgetary support 35 2100

SaudiFund 70 4200

BHalance Required for GOP 70 4200

Total: 200.00 12000

19
11. Project Benefits and Analysis
The development/construction of this city provides an opportunity create a self
sustainable city economically vibrant, with sound physical and social infrastructure like
education, health, communication, transport and civic amenities, both for the present and fore
seeable future growth of this town a view to build back these urban centers in to better
organized and plan modern and urban center. Keeping in view the vision” to build Back Better”
efforts to have been put to create a growth pole that would not only provide conductive
habitable environment for affectees of old Balakot town, but plays its role in dispersing
population load from the regional urban centers it aims to settle the earthquake effected
population if Old Balakot town to seismically safe locations reviving their lively hoods, providing
them with contemporary infrastructural services and public facilities, thus building back their
lives to better standard of living.

The New Balakot is proposed to be developed as a Self sustaining urban settlement equipped
with all necessities of daily life ranging from a house hold to the necessities of the large trade,
tourism and industrial center. A decentralized pattern has been devised for New Balakot, so
that all levels of facilities are easily accessible to the end users, through proper distribution of
various level amenities at appropriate distance based on town planning principles. Owing to
this visualized pattern these facilities would not over shadow the utility of each other.
Moreover, this sort of pattern would assess in proper development control. The development
activities in the area will also generate income opportunity and help in revitalizing the stagnant
life if the affected population. The operation of commercial areas, servicers like petrol pump,
will also generate the revenue to the government in the years to come.

Environmental Aspects
ERRA’s Environment Sector Strategy guides the entire reconstruction and rehabilitation effort
and lays down the basic principles and safeguards for protection of the government. A
preliminary Environment Assessment report has been prepared and is attached at Annexure-D
due, consideration has been paid to the environmental concerns in planning and engineering
designs.

 Natural draining pattern of the are has been kept un obstructed

 Undue exploitation of the area is restricted a s a result the residential area for the
proposed development is kept less than 33%, well below the permissible limits of the
Development Authorities and National Reference Manual.

20
  Areas with forest cover have been reserved as green spaces and parks. The total area is
located for this purpose in 20%, in addition to this all such areas are proposed to be
properly landscaped and thus enhancing the ambient environment.
 Adequate areas have been reserved for the sewage treatment before final disposal.
 Proper solid waste management system shall be implemented in the new development.

A detailed Environment Impact Assessment report I sunder preparation and will be submitted
soon to mitigate the Environmental concerns as per ERRA’s Environmental Strategies. The
project implementation activities would be environment friendly. For each sub projects to be
improved individually the sponsor will arrange its EIA and obtain NOC from the Provisional
Environmental Protection Agency.

12. Implementation Schedule

The New Balakot City is being developed as a self sustained urban settlement equipped with all
necessities of modern life, essential civic amenities and as an attractive tourism and industrial
center on multiple growth pole planning consents. The planning exercise is designed by ERRA’s
guiding principle of “ Build Back Better Planned Cities”.

The implementation of town plan is a basic responsibility of city administration, in collaboration

with Provisional Government. However, just as assistance is required to develop a town plan,
assistance will also be needed to effectively implement it. Already established institutional
argument does not have the capacity to carry out such a massive reconstruction task, in case of
Balakot it is nonexistent. The implementation is therefore being carried out through PMU under
the administrative control of D.G. (H)/Cos. The provisional government of NWFP at later stage
will create a Balakot development authority and project management unit will merge in to it.
The concerned development authorities will then be responsible for remaining development,
operation and maintenance of the city. A Project steering committee has also been constituted
where each stakeholder has representation, all strategic decisions will be taken by the project
steering committee.

The total implementation period is five years from 2007 to 2012. The plan will be executed in 2
phases as under:-

Under phase 1, the priority projects of immediate nature required for reconstruction and
rehabilitation of earthquake affected population will be completed in initial 3 years from 2007
to 2010. Most of the projects relates to housing and essential infrastructure (physical and
social) in order to accommodate the affected population.

Later, under phase II full scale reconstruction, while conserving natural resources. The projects
required for future extension/requirement of the city will be taken up by the government of
21
NWFP at appropriate point of time and concerned development authority will then be
responsible for remaining development, operation and maintenance of the city.

To successfully implement the master plan, proper institution arrangement is being put in place and
existing institutional setups is being reorganized and strengthened. To initiate full scale rehabilitation
activities, the bulk land availability and immediate development of trunk infrastructure is necessary. In
the proposed plan, sufficient right-of-way in being kept for laying the trunk infrastructure and
promotion of local commercial ventures like petrol pump etc. nevertheless effort is being made to avoid
the linear pattern of commercial activity where ever possible to avoid the future encroachment
problem.

13. Management Structure and Man Power Requirements

13.1 Administrative arrangement for implementation.

The project will be implemented to establishment of dedicated to the Project Management

Unit (PMU) , as per standing instructions of the planning commissions reported to DG(housing)
ERRA. The provisional government of the NWFP at later stage will create a Balakot
development Authority and project management unit will merge into it. The concerned
development authority will than be responsible for remaining development, operations and
maintenance of the projects. The flow diagram of management structure is at annexure F.

A Project Steering Committee is also constituted for proper coordination, involvement,

feedback and speedy strategic decision making.

Project steering committee

Following project steering committee has been constituted for new Balakot City Development
project (NBCDP), the committee will steer the project and will take all strategic decisions.

I. Deputy chairman ERRA Chairman

II. DG(Housing) Member
III. Secretary Planing and Development NWFP Member
IV. Secretary Local Government NWFP Member
V. DG PERRA Member
VI. Chief Engineer Member
VII. DCO Mansehra Member
VIII. PM(UD) Secretary
IX. Three Private Member To be nominated by the
Provisional Government

22
 Project management structure

ERRA Council/Board

ERRA’S Executive Office

Deputy Chairman ERRA

Project Steering Committee

Chairman Deputy Chairman ERRA

Member DG (H), Secretary P & D NWFP, Secretary Local Government,

D.G PERRA, C.E(C&W),D.C.O Mansehra, PM DRU- Mansehra,
Private Members (3)

Secretary PM (UD)

DG (H)

PERRA
Board of Revenue
P.M DRU PMU
Local Government.
( Mansehra) PERRA
Development Authority Balakot
(Yet to be established) C&W, P&D,
P.H.E> Forest
Note Direct linkage

Cordination Linkage

23
13.2 Man power required for the execution and operation of Project
SR.NO Name of Post Nos.
A.
1 Project Director 1
B. Administration and Estate Management Cell
1 Director(Admin and Estate Management) 1
2 Deputy Director(Admin and Estate Management) 1
3 Office Manager/IT Expert (For Admin and Estate 2
Management )
4 Office Assistant(For Admin and Estate Management ) 2
5 Clerks 2
6 Patwari /Qanongo (For Admin and Estate 2
Management )
C. Infrasture and Building Works
1 Director(Infrasture and Building Works) 1
2 Project Engineer(infrastructure) 1
3 Project Engineer(Building Works) 1
4 Project Engineer(Roads) 1
5 Project Engineer(W&S) 1
6 Project Engineer(Electrical) 1
7 Associate Project Engineer 6
8 Draftsman 2
9 Tracer 1
10 Data Entry Operator 6
11 Driver 8
12 Naib Qasid 5
13 Guards 5
D. Finance Cell
1 Manager Finance 1
2 Assistant manager Finance 1
3 Assistant Manager Works Account 1
4 Accountants 2
5 Assistant Clerks 2
Total Man Power 55

Annexures

24