Rehabilitate Municipal Infrastructure. Component 1 will be split into sub-components 1.1 and 1.2, both prioritizing COVID recovery activities. Sub-component 1.1 will continue to support longer-term priority projects that are ready for implementation. Due to cancellation of financial allocation for CIP, the budget for sub-component 1.1 is US$10 million. Sub-component 1.2 will be introduced to fast-track labor-intensive public works that create jobs and improve municipal infrastructure (Labor Intensive Economic Recovery). Sub-component 1.2 will support activities like gravel roads, pavement of tertiary streets, canal/drain cleaning, parks rehabilitation, street cleaning, disinfection campaigns or any other labor-intensive activities as identified by the municipalities. The component would also support provision of Personal Protective Equipment (PPE) for undertaking the key municipal services and labor-intensive works. These activities will facilitate temporary job-creation for mostly unskilled and semi-skilled laborers. These activities would have the option to be implemented at the decentralized level by the municipalities with requisite financial management and procurement support from the CIP-PIU as identified by the respective assessments of the municipalities. CIP-PIU would approve the individual projects identified by municipalities and will have the overall responsibility for the verification of deliverables. This will also help achieve long-term development objectives of building municipalities’ capacity for investment planning, project design, procurement, supervision and financial management. The implementation of these sub-projects will adhere to the COVID-19 guidelines of the World Bank and the Ministry of Public Health. Implementation details will be elaborated in the updated Project Operations Manual. The anticipated budget for the sub-component 1.2 is US$15 million.