Pakistan: Preparing the Mega City Sustainable Development Project (formerly Mega-city Project I)

Sovereign Project | 38408-012

Summary

The expected impact of the TA is to improve the quality of life for mega city residents, including the poor, in a sustainable manner. The anticipated outcomes are (i) an agreed-upon design and action plan to establish and operationalize an SFV for the mega city, and (ii) an investment program/project loan for mega-city infrastructure and services development that is suitable for ADB financing. The TA will have two overlapping parts: (i) part A: Specialized Financing Vehicle; and (ii) part B: Mega City Investment Program/Project.

Part A will assess the feasibility and design of an SFV that will (i) in the short term, act as an efficient conduit to channel development funds to Karachi s infrastructure and services; (ii) be a catalyst in the transition toward commercial financing of mega city infrastructure and services; and (iii) in the medium to long term, mobilize funds from nongovernment sources to finance the mega city's large-scale infrastructure needs.

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Project Name Preparing the Mega City Sustainable Development Project (formerly Mega-city Project I)
Project Number 38408-012
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4753-PAK: Preparing the Mega City Sustainable Development Project (formerly Mega-city Project I)
Technical Assistance Special Fund US$ 1.00 million
TA 4753-PAK: Preparing the Mega City Sustainable Development Project (Supplementary)
Technical Assistance Special Fund US$ 495,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Water and other urban infrastructure and services - Urban policy, institutional and capacity development
Gender Equity and Mainstreaming No gender elements
Description

The expected impact of the TA is to improve the quality of life for mega city residents, including the poor, in a sustainable manner. The anticipated outcomes are (i) an agreed-upon design and action plan to establish and operationalize an SFV for the mega city, and (ii) an investment program/project loan for mega-city infrastructure and services development that is suitable for ADB financing. The TA will have two overlapping parts: (i) part A: Specialized Financing Vehicle; and (ii) part B: Mega City Investment Program/Project.

Part A will assess the feasibility and design of an SFV that will (i) in the short term, act as an efficient conduit to channel development funds to Karachi s infrastructure and services; (ii) be a catalyst in the transition toward commercial financing of mega city infrastructure and services; and (iii) in the medium to long term, mobilize funds from nongovernment sources to finance the mega city's large-scale infrastructure needs.

Part B will support the feasibility assessment of and proposal for an investment program/project placed into a broader mega city development context, including a medium term mega city infrastructure investment plan and an agenda for policy and institutional reforms. The investment program/project will address the urban infrastructure and service needs in a programmatic manner, and will leverage reforms for more effective, sustainable, and inclusive service delivery in the mega city. Given the need for an integrated, long-term approach to mega-city development and the need for significant policy and institutional reforms, the ensuing project is expected to adopt the modality of a sector development program or sector loan. The ensuing project will complement and benefit from the TA Loan Project which will support preparing subprojects and building capacity within city agencies. The project will also have synergies with the Private Participation in Infrastructure Development Project currently being processed by ADB.

Project Rationale and Linkage to Country/Regional Strategy In its Midterm Development Framework (MTDF), the Government of Pakistan (Government) underscored the importance of mega cities to national development. The MTDF acknowledged that, in the contemporary age of global competition among the world s cities, Pakistan s development increasingly depends on the potential of its mega cities to attract private investment by offering high-quality public services and good governance. The MTDF reaffirmed the Government's commitment to developing its large cities as competitive and sustainable centers. The Government formed a high-level committee, chaired by the Planning Commission, for coordinated development of mega cities, starting with Karachi as the central plank of its long-term development strategy. The Government requested and ADB has agreed to support the Government it in its efforts to develop the mega city Karachi. The TA conforms with Aisan Development Bank's current Country Strategy and Program for Pakistan which emphasizes good governance, sustainable economic growth, and inclusive development.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will be undertaken by a team of international and domestic consultants to be engaged as individuals or as a firm in accordance with the ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engaging domestic consultants. In case of firms' engagement, quality-based selection will be used. About 50 person-months of consulting services (25 international and 25 domestic) will be required. The team will comprise international experts (person-months are in parenthesis) in urban development/engineering/team leader (5), strategic infrastructure planning (3), urban governance (2), economics (2), financial analysis/municipal finance (2), urban infrastructure finance and SFV (5), project and corporate finance and private-public partnership (3), and corporate structure, planning, and management of SFVs (3). The domestic consultants will be experts in urban planning, infrastructure finance, project financing and SFV, financial and project economics, corporate structure and management, environment, water and sanitation, transport, social development and urban upgrading.
Responsible ADB Officer Eunkyung Kwon
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Finance Department,GOSSindh Provincial Government
Karachi, Pakistan
Timetable
Concept Clearance 10 Mar 2005
Fact Finding 07 Sep 2005 to 09 Sep 2005
MRM -
Approval 21 Dec 2005
Last Review Mission -
PDS Creation Date 24 Feb 2006
Last PDS Update 19 Oct 2007

TA 4753-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Dec 2005 13 Jun 2006 13 Jun 2006 30 Oct 2006 31 Mar 2008 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,495,000.00 0.00 250,000.00 0.00 0.00 0.00 1,745,000.00 21 Dec 2005 1,200,563.39
Title Document Type Document Date
Preparing the Mega City Sustainable Development Project Technical Assistance Reports Dec 2005

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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