  We present an on-shell formulation of 5d gauged supergravity coupled to
chiral matter multiplets localized at the orbifold fixed points. The brane
action is constructed via the Noether method. In such set-up we compute
one-loop corrections to the Kahler potential of the effective 4d supergravity
and compare the result with previous computations based on the off-shell
formalism. The results agree at lowest order in brane sources, however at
higher order there are differences. We explain this discrepancy by an ambiguity
in resolving singularities associated with the presence of infinitely thin
branes.
