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Completion Report: Mega City Development Project Completion Report Project Number: 38405 Loan Number: 2229-PAK December 2010 Pakistan: Mega City Development Project CURRENCY EQUIVALENTS Currency Unit – Pakistan rupee/s (PRe/PRs) At Appraisal At Project Completion 12 January 2006 12 June 2010 PRe1.00 = $0.0167 $0.0117 $1.00 = PRs59.88 PRs85.45 ABBREVIATIONS ADB – Asian Development Bank CCB – citizen community board CDGK – City District Government of Karachi CSP – country strategy and program CSPU – country strategy and program update DCO – district coordination officer DOF – Department of Finance EDO – executive district officer HRM – human resource management IFI – international finance institution JBIC – Japan Bank for International Cooperation KWSB – Karachi Water and Sewerage Board LGD – local government department LSU – local support unit MFF – multitranche financing facility MIS – management information system MPGO – Master Plan Group of Offices NGO – Non-government organization P&D – Planning and Development Department PPID – private participation in infrastructure development PPP – public–private partnership PSC – project steering committee PSU – project support unit PWG – project working group RFP – request for proposals SDC – Swiss Development Corporation SDR – special drawing rights SFV – specialized financing vehicle SLGO – Sindh Local Governance Ordinance TA – technical assistance TMA – town municipal administration TOR – terms of reference UFW – unaccounted for water WHO – World Health Organization NOTES (i) The fiscal year (FY) of the government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2009 ends on 30 June 2010. (ii) In this report, “$” refers to US dollars. Vice-President X. Zhao, Operations 1 Director General J. Miranda, Central and West Asia Department (CWRD) Country Director R. Stroem, Pakistan Resident Mission, CWRD Sector Director R. Subramaniam, Central and West Asia Urban Services Division, CWRD Team leader D. Kucan, Senior Urban Development Specialist, CWRD Team member M.R. Romasanta, Project Officer, CWRD 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. CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 2 B. Project Outputs 2 C. Project Costs 3 D. Disbursements 6 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 6 H. Consultant Recruitment and Procurement 7 I. Performance of Consultants, Contractors, and Suppliers 7 J. Performance of the Borrower and the Executing Agency 7 K. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness in Achieving Outcome 9 C. Efficiency in Achieving Outcome and Outputs 9 D. Preliminary Assessment of Sustainability 9 E. Impact 10 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 10 A. Overall Assessment 10 B. Lessons 10 C. Recommendations 12 APPENDIXES 1. Project Framework 13 2. Detailed Cost Estimates 18 3. Status of Compliance with Loan Covenants 19 i BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Number 2229-PAK 3. Project Title Mega City Development Project 4. Borrower Islamic Republic of Pakistan 5. Executing Agency The Finance Department 6. Amount of Loan SDR7,010,000 7. Project Completion Report PCR:PAK 1230 Number B. Loan Data 1. Appraisal Not required – Date Started – Date Completed 2. Loan Negotiations 12 December 2005 – Date Started 13 December 2005 – Date Completed 02 February 2006 3. Date of Board Approval 14 June 2006 4. Date of Loan Agreement 5. Date of Loan Effectiveness 14 September 2006 – In Loan Agreement 14 September 2006 – Actual 0 – Number of Extensions 30 April 2009 6. Closing Date 13 August 2009 – In Loan Agreement 0 – Actual – Number of Extensions 0% 7. Terms of Loan 32 – Interest Rate 8 – Maturity (number of years) – Grace Period (number of years) 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 2 April 2007 13 August 2009 28.5 months Effective Date Original Closing Date Time Interval 14 September 2006 6 November 2008 25.7 months ii b. Amount (SDR) Category Original Last Amount Net Amount Undis- Number Category or Allocation Revised Canceled Amount Disbursed bursed Subloan Allocation Available Balance 01A Capacity Bldg – 1,945,000 40,000 17,385 22,615 0 Consultants 01B Capacity Bldg – 210,000 0 0 0 Training 01C Capacity Bldg – 1,080,000 0 0 0 MIS Phase 1 02A Proj Prep Fclty - 1,990,000 400,000 65,713 334,287 0 Consultants 02B Proj Prep Fclty – 175,000 0 0 0 Katchi Abadis Pilot Phase 1 03A Specialized Fncng 177,000 0 0 0 Vehicle – Admin Costs 03B Specialized Fncng 140,000 0 0 0 Vehicle – Training 04A TA Loan Mgmt 361,000 60,000 23,265 36,735 0 Support - Consultants 04B TA Loan Mgmt 35,000 35,000 6,345 28,655 0 Support – Vehicle & Eqpt 05 Interest Charge 110,000 12,079 0 110,000 97,921 06 Unallocated 787,000 0 787,000 787,000 0 a Total 7,010,000 1,432,000 997,628 434,372 0 a In addition to the final cancellation of SDR997,628, a partial cancellation of SDR5.678 million was approved by the director of the Urban Services Division, Central and West Asia Department on 6 November 2008. 9. Local Costs (Financed) - Amount ($) 107,985 - Percent of Local Costs 3.05 - Percent of Total Cost 1.07 iii C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 6.460 0.545 Local Currency Cost 3.540 0.108 Total 10.000 0.653 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 3.330 0.007 ADB Financed 10.000 0.653 Other External Financing 0.000 0.000 Total 13.330 0.660 IDC Costs Borrower Financed 0.047 0.000 ADB Financed 0.110 0.019 Other External Financing 0.000 0.000 Total 0.157 0.019 ADB = Asian Development Bank, IDC = interest during construction. 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual Capacity Building Facility 6.144 0.035 Project Preparation Facility 4.208 0.500 Specialized Financing Vehicle 0.833 0.000 Support for Technical Assistance Loan Management 0.726 0.099 Taxes and Duties 0.140 0.007 Physical Contingency 0.524 0.000 Price Contingency 0.598 0.000 Interest during Implementation 0.157 0.019 Total 13.330 0.660 4. Project Schedule Appraisal Estimate Actual Date of Contract with Consultants Naveed Chana June 2006 October 2007 Jamie Simpson June 2006 January 2008 Babar Mumtaz June 2006 January 2008 Royston Brockman June 2006 January 2008 Ahsan Ullah June 2006 January 2008 Mohammed Yaqub Chughtai June 2006 January 2008 Techno-Consult International June 2006 March 2008 Tahir Traders-Landscape Consultants June 2006 March 2008 Fincon Consultants June 2006 March 2008 Equipment and Supplies Dates First Procurement June 2006 November 2007 Last Procurement February 2007 May 2008 iv 5. Project Performance Report Ratings Ratings Development Objectives Implementation Progress Implementation Period From 30 June 2006 to 30 August 2009 Satisfactory Satisfactory D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Country Contact/Consultation 2–5 May 2005 2 8 d 30 August– 1 22 d Fact-Finding 20 September 2005 Loan Inception 21–28 August 2006 2 16 e, f Loan Review 23–29 January 2007 1 7 e Country Contact/Consultation 18 December 2007 1 1 g Loan Review 23–25 April 2008 3 9 h, I, f Project Completion Reviewb 1–30 September 1 22 d 2010 a d = senior urban development specialist, e = principal project specialist, f = assistant project analyst, g = director, h = principal urban development specialist, i = young professional. b A desk project completion review mission was conducted by an urban development specialist in ADB headquarters. I. PROJECT DESCRIPTION 1. In its medium-term development framework prepared during 2005/2006, the Government of Pakistan made a commitment to enhance the competitiveness of 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 megacities, starting with Karachi as a central anchor and driver of growth in its long-term economic development strategy. In this context, the government requested Asian Development Bank (ADB) assistance to address the megacity challenges facing Pakistan.1 The immense size of Karachi, the magnitude of its investment requirements, and the scale of the needs for urban policy and institutional reforms suggested that a traditional approach of one-off projects will not work. A clear need was felt for a series of sequenced and integrated interventions whose cumulative effect will act as a catalyst to speed up the development process in Karachi. The expected impact of the technical assistance (TA) loan was larger and sustained contribution of Karachi to national development and competitiveness, and improved quality of life for its residents, including the poor. The anticipated outcomes were (i) improved city planning, management, and financing; (ii) improved and expanded urban infrastructure and services; and (iii) sustainable and efficient financing of megacity urban infrastructure and services. 2. Previous external assistance to Karachi city has been piecemeal and has not been based on an integrated approach to improve urban infrastructure and services on a sustainable basis. The purpose of the TA loan was to address the megacity development needs through a long-term and holistic approach by (i) building capacities within the city district government of Karachi (CDGK) and the various tehsil municipal authorities (TMAs) for effective city planning and management, (ii) adopting and implementing commercial principles in the provision of infrastructure and services, (iii) supporting the preparation of bankable projects for megacity development that might subsequently be funded by ADB through its loans to Karachi city, and (iv) promoting reforms for sustainable financing.
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