MANILA, PHILIPPINES - ADB will study how to improve the management of cities of all sizes in developing countries in the Asia and Pacific region through a US$980,000 technical assistance (TA) grant.

The population in the cities of Asia is growing at a rate about twice that of the total population. It is estimated that by 2030, people living in cities will grow from one third to one half of Asia's total population.

According to Bindu Lohani, Director General of ADB's Regional and Sustainable Development Department, in 2000, 11 out of total 19 megacities (population of 10 million or more), and 9 out of total 22 large cities (population between 5 and 10 million) in the world were in Asia. It is estimated that by 2015, there will be 23 megacities in the world out of which 14 will be in Asia.

"The rate, scale, and pace of growth of cities throughout the region and their impact on economic, social, and environmental conditions have emerged as a major issue in the region," says Diwesh Sharan, an ADB Principal Sector Specialist. "Effectively managing the cities of all sizes poses a major development challenge for developing countries."

Asian cities of all sizes face major infrastructure and service delivery challenges, which require sizable resources. An ongoing review of ADB's urban sector strategy suggests that the urban infrastructure in Asia will need investments of about US$250 billion per annum for the next 25 years. At the same time, the governance and financial health of municipal bodies remain weak.

Yet cities are of particular importance to countries in the region as they account for a sizable portion of the GDP. Thus, management of the cities and their development to meet the future demands are important issues for growth, sustainability, and achieving the Millennium Development Goals.

The study will undertake an integrated analysis of the issues related to management of cities, while focusing on some key operational areas, such as urban transport, energy, water supply and sanitation, and environment.

It will also cover financing issues and examine innovative but tested ways of augmenting municipal revenues and leveraging market funds. Special attention will be paid to arrangements needed to partner with the private sector.

The study is due for completion in June 2007.

Source: http://www.adb.org/Media/Articles/2006/9434-regional-management/default.asp