Wastewater Project Reimagined: How Mediation Saved Livelihoods in Punjab, Pakistan

In the fertile fields of Sahiwal, Punjab, a wastewater treatment project, part of the broader Punjab Intermediate Cities Improvement Investment Project (PICIIP), was poised to enhance urban infrastructure in two of Pakistan’s intermediate cities, Sahiwal and Sialkot. With a budget of $250 million, including $200 million from the Asian Development Bank (ADB) and $50 million from the Government of Pakistan, the initiative aimed to modernize water supply, sanitation, and urban public spaces. But while the blueprint promised sustainability and modernity, its implementation ran into opposition from those it was meant to serve. Local farmers, whose land had been earmarked for acquisition, feared losing not just property, but their only source of livelihood. The project sparked intense resistance, eventually leading to a formal complaint with ADB’s Office of the Special Project Facilitator (OSPF), a key arm of the bank’s Accountability Mechanism. Research and valuation support came from institutions, including the Punjab Urban Unit and an independent valuation firm, both of which played instrumental roles in resolving the dispute through data and policy adherence.

Land, Livelihood, and a Legal Stand-Off

The dispute began formally in October 2022 when 18 households submitted a complaint to OSPF, citing insufficient compensation for their land and a lack of meaningful consultation. These families collectively owned 40 acres out of a total of 196.35 acres that the government intended to acquire. They alleged that the compensation offered was well below the replacement cost of similar land in the same vicinity. Adding to the friction was the perception that the land acquisition process lacked transparency and failed to properly engage all stakeholders. In May 2023, two more households filed similar complaints, prompting OSPF to consolidate the cases into a single resolution process. Despite the Project Management Unit’s (PMU) prior attempts to address concerns, including commissioning an independent valuation study, offering escrow deposits, and identifying alternate land parcels, the complainants remained unsatisfied. Parallel to the mediation, the issue also reached the Lahore High Court, complicating the path to resolution.

A Breakthrough Through Redesign

OSPF then assumed the role of a neutral mediator, engaging all stakeholders in a series of site visits, private consultations, and finally, an intense 12-hour joint mediation session. Recognizing that the compensation debate had hit a wall, the OSPF and ADB project teams proposed a bold alternative: reduce the amount of land being acquired by reconfiguring the treatment plant’s design. The PMU, under the leadership of an open-minded and solution-driven director, responded positively. After technical reassessment, it was concluded that the plant’s footprint could be reduced by approximately 20 acres on the northern side. This redesign meant that the land could be returned to the complainants, giving them the chance to preserve a portion of their farms while accepting compensation for the remaining land. The idea struck a balance between project implementation and community welfare, and it formed the basis of a breakthrough agreement.

Women’s Voices Change the Conversation

A lesser-known but powerful chapter in this mediation was the push for gender inclusion. In this rural and conservative community, women are traditionally excluded from public negotiations. However, OSPF was committed to ensuring that female landowners, many of whom were co-owners of the affected property, had a voice in the process. A female OSPF staff member visited several households in Sahiwal to privately speak with women about their awareness of the project, court proceedings, and mediation efforts. This move was met with initial hesitation from male relatives, but eventually, several women came forward with concerns about being marginalized within their own family groups. These interactions revealed internal tensions between the four families involved in the complaint and gave OSPF essential insights into the social dynamics at play. The inclusion of women in subsequent meetings not only added legitimacy to the agreement but also underscored ADB’s commitment to gender equity in decision-making.

From Conflict to Consensus: A Model for Accountability

Just as the resolution seemed imminent, legal complexities emerged. According to the Punjab Board of Revenue, the proposed 20.22 acres to be returned couldn’t be selectively denotified in favor of specific households. Instead, the entire group of original landowners had to be allowed to buy back the land. To align with this rule, the area to be denoted was reduced to 15.275 acres, which posed fresh complications: some complainants might receive less land than previously agreed, while others could receive more. Tensions resurfaced, but OSPF once again facilitated intra-group negotiations, helping the households agree on a fair redistribution plan. On 20 January 2024, the parties signed a memorandum of understanding in Lahore, solidifying the resolution. The complainants accepted the new compensation terms and agreed to withdraw their court case after formal notification. By May 2024, 17 out of 18 households had received compensation payments, with the final case awaiting a land transfer to legal heirs.

What began as a deeply entrenched land dispute concluded with a solution that respected both development goals and local livelihoods. It stands as a compelling example of how ADB’s Accountability Mechanism, through OSPF’s quiet diplomacy, technical creativity, and inclusive approach, can transform conflict into collaboration. As one complainant later wrote in a letter of thanks, “Your willingness to lend a listening ear and offer valuable guidance truly made a world of difference to us.” This case will likely serve as a blueprint for future projects across the region, showcasing how even the most complex disputes can be resolved not by authority, but by empathy, dialogue, and the willingness to take less land.