Khyber Pakhtunkhwa Governance (KPG) Project Monthly Progress Report October 2015

The project was awarded to DAI in March 2015, with a budget of $22.6 million. The main purpose of the KPG Project is to support transitional activities in the KP Province that reinforce stability, counter extremism, promote democratic advances, and strengthen the provincial government's responsiveness to citizen needs. The project's activities are tied to the KP Government's seven objectives outlined in the Strategic Development Partnership Framework (SDPF). These objectives include economic growth and job creation, peace building and rule of law, tangible progress in pro-poor sectors, improved participation and citizen engagement, improved transparency and accountability, enhanced fiscal space for economic and social development, and gender equity. DAI will deliver KPG results by developing complementary packages of assistance that reinforce both the supply and demand side of governance, through four main instruments: grants under contract, programmatic short-term technical assistance, direct distribution of goods and services (DDGS), and training. In October 2015, the project began in earnest, with all crucial elements required for progression now in place. The major hurdle of permission to work legally and unhindered was reached with the attainment of the Memorandum of Understanding (MOU) at the end of the previous month. This deficit had been hampering project activities to date. The establishment of the Peshawar office and posting of all relevant staff to their respective workstations enabled project activities to progress without disruption. A major progression was also reached with the design and development of the Technical Assistance Management Information System (TAMIS). Highlights from the reporting period include the design and development of TAMIS, production of the 2nd Annual Workplan, Peshawar office startup, MOU progression and finalization, and preliminary project activities. The 2nd Annual Workplan was finalized and submitted to USAID at the end of the month. The new Peshawar office was made ready for the Peshawar-based team, and all personnel assigned to this station were moved to their new workplace. The NOC application to work in KP Province, which was submitted to the Economic Affairs Division (EAD) on April 22, 2015, is in its final stages. A letter from EAD requesting the NOC is presently with the Ministry of Interior (MOI). The KPG project team is in regular contact with EAD and other actors in the process to obtain the NOC as early as possible. The office rented for the project in Islamabad has been made ready for occupation, and all project staff are now comfortably accommodated. The office located in Peshawar has also been made ready for occupation, and by mid-October, all relevant personnel had been relocated there. The new offices have been fully equipped with furniture, IT equipment, and a generator. All project key positions have been filled, and administrative, procurement, and financial staff have been recruited. Staff of the remaining vacant positions who had been identified were finally brought on board with the signing of the MOU and have been oriented and trained for project activities. The security situation in Islamabad remains moderate, with widespread protests by diverse groups over religious and political issues expected to continue. The ongoing struggle with extremist groups elsewhere in the country could increase the possibility of retaliatory attacks on government or infrastructure targets in the capital. However, recent security installations around the capital are increasing the level of situational awareness held by local law enforcement. Islamabad continues to suffer from street-level crime, which is largely confined to the city outskirts and suburban areas beyond Islamabad proper. KP has retained its high-risk rating for the reporting period, with the military continuing its operations against militant targets.