Pakistan: TA Loan for Megacity Development

Sovereign Project | 38405-013

ADB is helping Pakistan upgrade infrastructure and services in Karachi to improve the quality of life in the city. The project will provide resources to improve city planning, management, and financing, as well as service delivery. It will help prepare priority projects for funding by external agencies. It will also establish an innovative financing vehicle for capital investment needs.

Project Details

  • Project Officer
    Keum, In-Ho
    Central and West Asia Department
    Request for information
  • Country/Economy
  • Modality
    • Loan
  • Sector
    • Finance
Project Name TA Loan for Megacity Development
Project Number 38405-013
Country / Economy Pakistan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2229-PAK: TA Loan for Megacity Development
Asian Development Fund US$ 10.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Finance / Finance sector development - Infrastructure finance and investment funds

Transport / Transport policies and institutional development

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sewerage - Urban slum development - Urban solid waste management - Urban water supply

Gender Equity and Mainstreaming Some gender elements
Description The goal of the TA Loan is to enhance contribution of the mega city, Karachi, to national development and improve the quality of life for the mega city residents, including the poor, in a sustainable manner. The expected outcomes are (i) improved mega city governance, management, and planning, (ii) improved and expanded urban infrastructure and services based on a strategic framework and (iii) sustainable and efficient financing of mega city infrastructure and services. To these end, the TA Loan includes (i) a capacity building facility providing a pool of resources for institutional reforms and building the capacities of the city district government of Karachi (CDGK) Town Municipal Administrations, and utilities in city strategy development and planning, management, and financing, as well as in applying commercial principles in the provision of infrastructure and services, (ii) a project preparation facility providing a flexible pool of funds for preparing high priority bankable projects that may subsequently be funded by external agencies, and (iii) establishment and operationalization of a specialized financing vehicle for mega city infrastructure and services which is envisaged to act as (a) an efficient conduit for channeling development funds to the city, (b) a catalyst for reforming the city agencies, and (c) an agent to mobilize funds from nongovernment sources for the large scale capital investment needs. It is expected that the TA Loan will also enhance the Government ownership of the institutional reforms,capacity building, and investment projects.
Project Rationale and Linkage to Country/Regional Strategy

The economy and population of Karachi has expanded significantly, but few investments have been made in the city's urban infrastructure facilities for over two decades. Infrastructure and services, that are inadequate and unreliable, are adding to business and household costs, hurting Karachi's urban and natural environments, and decreasing the city's global competitiveness compared with alternative Asian mega cities. The Government's recent Devolution policy provides major benefits to be realized, but has left many issues to be addressed in areas such as (i) fiscal imbalance and unclear and incomplete allocation of responsibilities between levels of government and (ii) inadequacy of the city's and towns' financial and technical capacities to fully meet their new responsibilities within the devolved framework. There is a need for substantial and long-term capacity building at the city and town levels if the devolution would yield the intended benefits for more effective urban service delivery. There is also increasing recognition that the growing gap between urban infrastructure demand and current supply cannot be met through traditional government sources, including local government revenues, subsidies, and transfers from the higher levels of Government. Alternative sources of financing and new ways of providing infrastructure and services are required.

In its midterm development framework, the Government of Pakistan made a commitment to enhancing the competitiveness and quality of life in its large cities. The Government constituted a high-level committee led by the Planning Commission for coordinated development of its mega cities, starting with Karachi as a central plank of its economic development strategy. In this context, the Government requested, and ADB has agreed to assist the Government in addressing the mega city challenges. The Project which combines interventions for enhanced city governance and finance and improved economic infrastructure and social services conforms with ADB's current country strategy and program update whose major trusts are good governance, sustainable economic growth, and inclusive development.

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
Involuntary Resettlement
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

International and/or domestic consulting forms will be recruited using ADB's quality- and cost-based selection and quality based selection (QBS) procedures as appropriate for each subproject. Certain subprojects will utilize QBS as they require expertise of limited availability. Individual consultants will be engaged in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants.

Specialists in urban planning, water supply, sewerage, solid waste management, urban transport and roads, low income community upgrading, private sector participation in urban infrastructure provision, economics, finance, social development, resettlement, and environment will help CDGK carry out comprehensive feasibility analyses and where necessary engineering designs, preparation of bid documents, and procurement of goods and services in a manner satisfactory to ADB. Specialists in urban governance, urban/municipal finance, institutional development, corporate governance, will also be recruited to help design and implement programs under the Capacity Building Facility.

Tentative estimates for the consulting services requirements for the whole TA Loan are about 145 and 430 person-months of international and domestic consultants, respectively.

Procurement All goods and services under the Project will be procured in accordance with ADB's Guidelines for Procurement.
Responsible ADB Officer Keum, In-Ho
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Finance Department,GOS
Mr. Malik Israr Hussain
Barrack No. 19, Sindh Secretariat 4-A, Finance Department, Government of Sindh, Karachi
Concept Clearance 08 Sep 2005
Fact Finding 29 Aug 2005 to 10 Sep 2005
MRM 10 Oct 2005
Approval 02 Feb 2006
Last Review Mission -
PDS Creation Date 17 Feb 2006
Last PDS Update 16 Apr 2010

Loan 2229-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Feb 2006 14 Jun 2006 14 Sep 2006 31 Jul 2010 30 Apr 2009 13 Aug 2009
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.33 Cumulative Contract Awards
ADB 10.00 17 Jun 2022 0.65 0.00 100%
Counterpart 3.33 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 0.65 0.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Mega City Development Project Project/Program Completion Reports Dec 2010
Mega City Development Project Project/Program Administration Manual Aug 2006
Technical Assistance Loan for Mega City Development Project between Islamic Republic of Pakistan and ADB dated 14 June 2006 Loan Agreement (Special Operations) Feb 2006
Mega City Development Project Reports and Recommendations of the President Jan 2006
Project Agreement for Technical Assistance Loan for Mega City Development Project between ADB and Province of Sindh Project/Program Agreements Jan 2006

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Pakistan: Mega City Development Project Validations of Project Completion Reports Dec 2013

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.