Lessons from previous projects. Lessons from two older ADB urban sector loan projects to Karachi in 1986 and 1991, respectively, which were rated unsuccessful and partly successful, include the need for (i) greater attention to sustainability, (ii) enhanced project design based on sound assessments, (iii) careful consideration for institutional shortcomings of executing and implementing agencies, and (iv) greater efforts to address the financial insolvency problems of the Karachi local government bodies. A specific lesson derived from the previous Karachi Urban Development Project is that urban upgrading is complex and must be able to deal with the broad range of problems faced by katchi abadis dwellers, including regularization and security of tenure. All these lessons suggest that urban development assistance demands a holistic approach. To be of lasting value, major capital investments need to be supported by capacity building, policy, regulatory and institutional reforms, as well as new and innovative financing vehicles that facilitate provision of high-quality infrastructure services on a sustainable basis. However, although the technical assistance (TA) loan for Megacity Development Project incorporated these lessons in its design, it failed for various structural reasons, with the lack of consensus between various levels of authorities being the most serious challenge.
Mega City Development Project