Khyber Pakhtunkhwa Governance (KPG) Project Annual Report: Year 1

The project is designed to reinforce stability, counter extremism, promote democratic advances, and strengthen the provincial government's responsiveness to citizen needs. KPG activities are tied to the KP Government's seven objectives outlined in the Strategic Development Partnership Framework (SDPF). The project's main instruments include Grants Under Contract (GUC), Programmatic Short-Term Technical Assistance (STTA), Direct Distribution of Goods and Services (DDGS), and Training. The GUC program consists of in-kind grants to procure goods and services, semi-annual program statements to solicit applications for grants, and fixed obligation or simplified cash grants. The STTA component provides targeted assistance and capacity-building advice and expertise to the Government of Khyber Pakhtunkhwa (GOKP) or civil society counterparts. During the first six months of the program, the main focus was achieving smooth operational and programmatic start-up, including finalizing project registration and clearance, establishing activity delivery mechanisms, and completing consultations with and analysis of government and civil society stakeholders. The KPG team operationalized Peshawar and Islamabad offices, pursued a No Objection Certificate (NOC) from the Interior Ministry, signed a Memorandum of Understanding (MOU) with the Government of Khyber Pakhtunkhwa, and recruited project staff. By the end of the first year, KPG had fully established its legal presence and systems, engaged and assessed all major stakeholders, designed activity packages, and conducted numerous activities. The project team implemented newly identified activities, which fell into eight categories: strengthening local governments, assessing GOKP requirements to automate management processes, strengthening provincial financial management, and others. KPG had nearly $500,000 worth of Grants approved across four different awards, with two proposals worth nearly $400,000 nearing final approval. Additionally, nine STTAs have been initiated. The project's progress in the first year was marked by the establishment of a strong foundation for future activities. The KPG team has made significant strides in engaging stakeholders, designing activity packages, and implementing select "quick-win" activities. The project's focus on strengthening local governments, improving financial management, and promoting transparency and accountability is expected to have a positive impact on the province's governance and development. The KPG project's geographic focus is on the Khyber Pakhtunkhwa Province in Pakistan, with a specific emphasis on conflict-afflicted areas. The project's timeframes are outlined in the four-year contract, with the first year covering the period from March 2015 to February 2016. The project's recommendations for future activities are based on stakeholder engagement findings and the attainment of the MOU with the Government of Khyber Pakhtunkhwa. The project's implementation details are outlined in the four main instruments: GUC, STTA, DDGS, and Training. The GUC program is designed to provide in-kind grants to procure goods and services, while the STTA component provides targeted assistance and capacity-building advice and expertise to the GOKP or civil society counterparts. The DDGS mechanism is limited under KPG, but will be utilized for direct procurement and/or activity implementation when a suitable grantee cannot be identified. The Training component will engage qualified local organizations to provide training services for KPG, and also maintain the capability to provide training themselves. The project's progress in the first year has been significant, with nearly $500,000 worth of Grants approved across four different awards, and nine STTAs initiated. The project's focus on strengthening local governments, improving financial management, and promoting transparency and accountability is expected to have a positive impact on the province's governance and development.