The Government of Balochistan province (GoB) in Pakistan has recently introduced a “Performance Grant” system which allows for the transfer of earmarked and non-earmarked funding to sub-provincial governments (Districts, TMAs and Unions) to support investment in infrastructure and enhance local service delivery performance.   During recent discussions with the World Bank, the GoB has indicated that it wishes to expand and strengthen this system and is particularly interested in seeking support from the World Bank in this regard. This contract is to assist the World Bank with conducting a preliminary assessment to investigate the feasibility of providing such support.