Pakistan: Sindh Cities Improvement Investment Program (Tranche 1)
At appraisal, Sindh’s second-tier cities were under increasing stress of population growth and urban poverty. Deteriorating urban services added to business costs, damaged the urban environment, diminished the quality of life, and discouraged potential investment. Previous attempts to improve the provision of services were hindered by overlap and fragmentation of responsibilities between the taluka municipal administrations (TMAs) and provincial-level agencies. Alternative approaches to service provision, including infrastructure planning and construction, were needed to address these constraints, particularly, the need to separate service delivery from system regulation and political interests to enhance commercial viability.
The multitranche financing facility (MFF) modality was considered appropriate in the report and recommendation of the President since it could help establish a long-term (10-year) partnership between the Asian Development Bank (ADB) and the Government of Sindh. This, in turn, could help provide the opportunity to revitalize Sindh’s second-tier cities, thus, facilitating the development of a broad platform for engaging the government on core reforms. The investment program was to be anchored within a holistic and integrated service delivery reform agenda comprising (i) an enabling policy framework for service delivery reform, (ii) effective institutions and professional management, and (iii) sustainable financing of urban service provision. These key reform milestones were to trigger the release of the first, second, and subsequent tranches of the investment loan.
This report validates the completion report's assessment of the program. IED overall assessment: Unsuccessful.