2 mega projects to get $1,100 mn from ADB

Faisalabad: The Asian Development Bank will provide $1100 million for two Karachi projects--'Karachi Mega City Sustainable Development Investment Program (Subproject-1)', and 'MFF-Karachi Mega City Sustainable Development Investment Program (Facility Concept)'.

For strengthened planning, administration and fiscal management, and to increase quality, coverage and reliability of water supply wastewater management, mass transit, and housing.

In an updated project report, Eunkyung Kwon, Principal Urban Development Specialist of ADB, said that the impact of the Investment Program would be an enhanced and sustained contribution of Karachi to national development, and improved quality of life for city residents, particularly the poor.

Project report said that the Investment Program comprises four parts. Part-A of project is designed to provide investment program management and support, addressing (i) program management (establishment and staffing of the Program Reform Monitoring Unit (PRMU) and Program Implementation Unit (PIU), (ii) program support (studies, training and capacity development for Karachi's local governments and service providers, and public awareness and outreach), and (iii) independent monitoring and evaluation. Parts B, C, and D are designed to address the critical sub-sector priorities for improved infrastructure, service provision and low-income housing.

Asian Development Bank will also provide financial assistance for 'MFF-Sindh Cities Improvement Program (Facility Concept)'. In her project report Ms Kathie M Julian, Urban Development of Central and West Asia Department (ADB Division Social Sectors Division, CWRD) said that the proposed program would support infrastructure investments and institutional strengthening in three priority sectors over a 10-year period in select clusters of secondary cities of Sindh province.

The program will support establishment of effective systems for urban service provision. A multi-tranche financing facility (MFF) modality is proposed. The program will support urban planning institutional reforms, public-private partnerships, and capacity development. Physical investment will include water supply, sewerage, drainage and wastewater treatment (wastewater), and solid waste management.

The combination of physical and non-physical investments under the program aim to improve quality, continuity and coverage of urban infrastructure services in water supply, wastewater, and SWM while incentivising and supporting effective management and sustainable financing of urban service providers. This, in turn, will help improve quality of life for residents in Sindh cities, including the poor, and address growing regional development imbalances within Sindh, she added.

The project financing is fully consistent with the increased emphasis on lending for economic infrastructure, including specifically for urban renewal and development, under ADB's recent country strategy and program updates.

First Phase: Urban areas in northern Sindh (Sukkur, New Sukkur, Rohri, Larkana, Khairpur and Shikarpur); Subsequent phase location to be determined as per agreed criteria safeguard planning documents (resettlement frameworks, resettlement plans) in accordance with ADB's 'Environment, Involuntary Resettlement and Indigenous People's Policies' are under preparation. Net environmental benefits, expected to be positive, potential negative impact of the short construction program are expected to be not significant, the report concluded.