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Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
Smart Cities Financing
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Smart Cities Financing

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Global Cities Smart Initiative …

Global Cities Smart Initiative
Future Cities Funding
Smart Cities Financing
Smart Eurocities
European Strategic and Investment Funds
European Investment Bank
European Investment Fund
Firts Deadline by 15 July

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  • 1. SMART EUROCITIES: FUNDING AND FINANCING EU LIGHTHOUSE SMART CITIES PROJECTS HTTP://WWW.SLIDESHARE.NET/ASHABOOK/URBAN-EUROPE SMART POLIS MUNICIPAL PLATFORM IS TO COLLECT DATA FROM SMART DEVICES AND SENSORS EMBEDDED IN ITS STREETS AND ROADWAYS, POWER AND WATER GRIDS, BUILDINGS AND OTHER CITY ASSETS, SHARING DATA VIA SMART COMMUNICATIONS NETWORKS, WIRED, WIRELESS AND MOBILE, USING SMART SOFTWARE FOR DELIVERING INTELLIGENT INFORMATION AND SERVICES: ONLINE TAXES AND PERMITS, UTILITY BILLS, PAYMENTS, GIS DATA ON ASSETS AND UTILITIES (UNDERGROUND CABLES, PIPES, WATER MAINS), TRAFFIC MAPS, CRIME REPORTS, EMERGENCY WARNINGS, CULTURAL EVENTS, ETC. HTTP://WWW.SLIDESHARE.NET/ASHABOOK/SUSTAINABLE-CITY EU, CYPRUS 15 JUNE 2014 SMART CITIES GLOBAL INITIATIVE IN EUROPE EUROPEAN INNOVATION PARTNERSHIP ON SMART CITIES AND COMMUNITIES has completed its invitation for commitments for Building Smart Green Cities and Intelligent Communities, the places of growth, intelligence and innovation, high-quality jobs and sustainable development. The “Smart Cities Global Initiative” in Europe aims to transform committed Eurocities into intelligent green urban areas: environmentally sustainable, inter-connected, instrumented, innovative, and integrated, regionally and globally attractive for businesses, citizens, visitors and investors. SMART Eurocities are to be managed by the urban “brains:, intelligent city cloud platforms, managing communal resources, assets, processes and systems: Urban Land and Environment, Roads and Transportation, Energy networks and Utilities, ICT networks and fiber telecom infrastructure, Public and residential buildings, Natural Resources, Water and Waste management, Social infrastructure, Health and safety, Education and culture, Public administration and services, Communities and Businesses. Being in line with the EU Strategy 2020, the SMART Eurocities Projects are to utilize the EU Multiannual Financial Framework 2014-2020, 7-Years Planning, Strategies, Policies and Regulations, Funds, Programs and Projects, all innovative funding opportunities, schemes, and initiatives, as well as local government incentives for smart urban growth and sustainable redevelopment. Financing could follow the Public-Private-Citizen Partnership business models, and be shared by the private firms, investors and municipal government. http://eu-smartcities.eu/content/show-world-you-are-smart-city
  • 2. EUROPEAN COMMISSION’S SMART CITIES AND COMMUNITIES INITIATIVE: NEW SMART CITY AGENDA FOR EUROCITIES  Too much of the smart city agenda so far has been led by producers; competing corporations  offering their own technology to cities as an ostensibly comprehensive solution to every urban problem.  Solutions must work within the complex urban environment of integrated planning, policy-making and delivery, taking advantage of the opportunities for connectedness and systems integration.  An integrated approach addressing social, economic and environmental issues together will  remain important in this respect.  It is vital for future take-up of technologies that we can demonstrate the benefits to citizens,  such as the potential to improve quality of life, foster social innovation and connect and empower citizens.  City governments must have a central role in the initiative’s strategy and projects.  City authorities are not simply facilitators for or customers of industry; rather they should be  acknowledged as leaders and innovators in their own right.  “EUROCITIES Statement on Smart Cities and Communities Communication”.  Smart Cities Global Initiative in Europe is meeting the above concerns, thus enriching the EC’s Smart Cities Initiative:  http://eu-smartcities.eu/content/show-world-you-are-smart-city SMART EUROCITIES Azamat Abdoullaev 2014
  • 3. SMART ECO CITIES AND REGIONS: STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE GROWTH FUTURE CITY GROWTH STRATEGY EU FUNDING 2014-2020: THEMATIC OBJECTIVES: KEY POLICY OBJECTIVES, FUNDING PRIORITIES AND EX ANTE CONDITIONALITIES I. Smart Growth: developing a communal, urban and regional economy based on knowledge and innovation (INNOVATION; EDUCATION; DIGITAL SOCIETY). II. Sustainable Growth: promoting a more resource efficient, greener and more competitive district and city (CLIMATE, ENERGY AND MOBILITY; COMPETITIVENESS). III. Inclusive Growth: fostering a high- employment communal, urban and regional economy delivering social and territorial cohesion (EMPLOYMENT AND SKILLS; FIGHTING POVERTY). IV. http://www.slideshare.net/ashabook/urban-europe  1. RESEARCH, TECHNOLOGICAL DEVELOPMENT AND INNOVATION (Digital City, RIS3 Strategies)  2. INFORMATION AND COMMUNICATION TECHNOLOGIES (Digital City, RIS3 Strategies)  3. COMPETITIVENESS OF SMES, THE AGRICULTURAL SECTOR (FOR THE EAFRD) AND THE FISHERIES AND AQUACULTURE SECTOR (FOR THE EMFF, Social City)  4. A LOW-CARBON ECONOMY IN ALL SECTORS (Eco City)  5. CLIMATE CHANGE ADAPTATION AND RISK PREVENTION AND MANAGEMENT (Eco City  6. PROTECTING THE ENVIRONMENT AND PROMOTING RESOURCE EFFICIENCY (Eco City)  7. SUSTAINABLE TRANSPORT AND KEY NETWORK INFRASTRUCTURES (Eco City)  8. EMPLOYMENT AND LABOUR MOBILITY (Social City)  9. SOCIAL INCLUSION AND COMBATING POVERTY (Social City)  10. IEDUCATION, SKILLS AND LIFELONG LEARNING (Social City)  11. INSTITUTIONAL CAPACITY AND ENSURING AN EFFICIENT PUBLIC ADMINISTRATION (Social City)  To Reach the Overall Goals of the EU 2020 Strategy for Smart, Sustainable and Inclusive Growth SMART EUROCITIES Azamat Abdoullaev 2014
  • 4. FUNDING FOR EU SUSTAINABLE CITIES: ECO POLIS FINANCING  Smart Cities and Communities European Innovation Partnership  (ESIF) European Structural and Investment Funds 2014-2020  Horizon 2020  LIFE+  URBACT  INTERREG EUROPE  EU Cities Adapt  (EIB) European Investment Bank (Investment Loans, financial instruments to eligible cities at favorable terms, in the form of reduced interest rates and potentially reduced collateral requirements, extended loan maturities and grace periods  (EIF) European Investment Fund (Investment Loans; financial instruments to eligible cities at favorable terms, in the form of reduced interest rates and potentially reduced collateral requirements, extended loan maturities and grace periods) SMART EUROCITIES Azamat Abdoullaev 2014
  • 5. EIB-EIP SMART FUNDING SCHEME: PROMOTERS AND BENEFICIARIES  “Smart Cities & Sustainable Development” Program in Europe  Promoter – Financial Intermediary  European Commission & European Investment Bank  Intermediary Banks of Smart Members States  High-Level Group (EIP on Smart Cities and Communities)  Performer  EIP on Smart Cities and Communities (Action Clusters)  Consultant: EIS Encyclopedic Intelligent Systems, “Smart City Global Initiative” Promoter  Beneficiaries  European Cities and Communities committed as Founding Members of EIP on Smart Cities and Communities  Location: Europe  Description  The Program is aimed to secure the EU’s 2020 objectives by developing/redeveloping smart, sustainable and inclusive cities and communities in Europe.  It involves the financing through a Framework Loan of large municipal investments around the concept of pan-European "smart cities & sustainable development", and specifically in the domains of sustainable urban regeneration, ICT, renewable energy, energy efficiency, transportation and mobility, to be carried out by local authorities, utilities, smart SMEs, and other founding members of the EIP on Smart Cities and Communities providing services to authorities over the period 2014-2017 for a total investment amount in excess of EUR 10 bn.  http://eu-smartcities.eu/blog/eib-eip-smart-cities-financing SMART EUROCITIES Azamat Abdoullaev 2014
  • 6. EIB-EIP SMART FUNDING SCHEME: OBJECTIVES AND BENEFITS  Objectives  75% of Europeans spend their lives in towns and cities, with 85% of GDP created in urban areas, 80% of all energy consumption and 75% GHG emissions, while facing increasing economic, social and environmental challenges.  The Program supports an innovative integrated urban development approach by the committed European cities and communities of the concept of "smart cities & sustainable development", underpinning large investments carried out mainly at city/regional level with the common purpose of improving environmental sustainability, urban and natural environment, ICT, mobility, energy efficiency, urban economy and social cohesion.  Promoting “Smart City Global Initiative” in Europe, the Program prioritizes holistic policies and strategies, comprehensive planning and management, and urban intelligent governance platform, integrating infrastructure assets and processes across Energy, ICT and Transport, to keep a global leadership in the sustainable development of cities and communities.  Sector(s)  Urban development; Regional Development; Innovation; Environmental Sustainability; Energy; SMEs  Proposed EIB finance (Approximate amount)  EUR 5 billion  Total cost (Approximate amount)  EUR 10 billion  Benefits  Developed through collaboration between the European Investment Bank (EIB) and the EIP on Smart Cities and Communities, the "Smart Cities & Sustainable Development" innovative investment program is aimed at assisting and providing financial support to urban and rural communities committed to the EIP’s Strategic and Operational Implementation Planning, with its focus areas and priority actions in framework policies and regulations, integrated urban planning and management, citizen focus, integrated intelligent infrastructures across Energy, ICT and Transport, urban mobility, sustainable districts and built environment.  Under this program, the public authorities, committed to integrated smart urban policies, are to benefit from preferential rate loans for the implementation of the "Smart Cities" projects up to a total of EUR 10bn half of which from the EIB and the other half from the EC and local intermediary banks, which major cities committed as founding partners to the Smart Cities EIP.  http://eu-smartcities.eu/blog/eib-eip-smart-cities-financing SMART EUROCITIES Azamat Abdoullaev 2014
  • 7. EIB’S SMART CITIES COMMITMENT  The EIB, together with Belfius Bank, is launching the "Smart Cities and Sustainable Development” Program in Belgium, EUR 400m scheme, thus smartly committing to one Member State.  Supporting the pan-European “Smart Cities & Sustainable Development” Program, the EIB is to commit to the smart urban development investment policy in all Europe. The pan-European smart city budget could start from EUR 10bn Europe, with additional finances coming from the disproportionately largely funded and low-efficient ERC programs.  Still, EUR 10bn EIB-EIP Scheme is relatively modest considering the smart city market projections to exceed $ 1 trillion by 2016 and China’s future “smart cities” allocations of 2 trillion yuan ($322 billion) for more than 600 cities nationwide.  Again, in Russia, the greenfield intelligent city of Skolkovo, occupying about 360 hectares, is to cost about $ 16 bn, but risking to fail for lack of innovation city strategic planning and urban intelligence platform.  Considering Belgian smart cities budget of 0.4bn, the Big Europe smart cities (Germany, UK, France, Italy, and Spain) could cover half of a smart budget, while the rest could go for the smart cities of other Member States. SMART EUROCITIES Azamat Abdoullaev 2014
  • 8. SMART CITY FINANCING SOURCES  Smart City Development Partnership can generate capital internally, through their own net operating cash flows, or externally through equity capital markets, bond markets or the banking system, or via direct and indirect financing.  Private Finance Mechanism Hierarchy:  Senior secured debt  Senior (unsecured) debt  Subordinated debt (mezzanine financing)  Equity financing  Public Finance Mechanism:  Grants to support high upfront costs for innovative capital projects, to increase the FRR on  investment and leverage additional resources through requirements on cofinancing/matching funds.  Interest subsidies (i.e.) Soft loans entail: • Extended payback periods; • Low or zero interest rates; • Short- term interest deferral periods; and/or • Inclusion of payback grace period.  Revolving funds offer loans that can be repaid with the realized revenue  and then it can be reinvested in new projects in the same area.  Financial instruments, combinations of grants and loans  SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING GROUP  GUIDANCE DOCUMENT. FINANCING MODELS FOR SMART CITIES SMART EUROCITIES Azamat Abdoullaev 2014
  • 9. SMART CITY FINANCING MODELS  Government-based financing tools  1. General obligation bonds; 2. Revenue bonds  3. Industrial revenue bonds; 4. Green bonds  5. Qualified energy conservation bonds  6. Social impact bonds; 7. Public benefit bonds  8. Linked deposit programs; 9. Energy efficiency loans  10. Property-Assessed Clean Energy Programs; 11. Greenhouse emissions allowance auctions;12. User fees  Development exactions  1. Developer dedication requirements; 2. Tap fees  3. Linkage fees; 4. Impact fees  Public-private partnerships  Private fund leveraging options  1. Loan Loss Reserve Fund (LRF); 2. Debt service reserves; 3. Loan guarantees; 4. On-bill financing; 5. Pooled bond financing; 6. Pooled lease-purchasing finance; 7. Value capture; 8. Tax increment financing  Philanthropic non-profit foundations;  International NGOs, World Bank, OECD, CIF;  Combining financial tools and multiple funding sources  SMART CITIES FINANCING GUIDE: Expert analysis of 28 municipal finance tools for city leaders investing in the future. Smart Cities Council  Financial System: Direct and Indirect Financing  SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING GROUP. GUIDANCE DOCUMENT. FINANCING MODELS FOR SMART CITIES SMART EUROCITIES Azamat Abdoullaev 2014
  • 10. SMART CITY FINANCING CHALLENGES  The smart cities financial challenges:  f) High risk perception for innovative solutions and energy efficiency measures;  g) Uncertain energy prices and policy uncertainty on fossil fuel prices;  h) Large investment volumes required;  i) Long term to maturity/profitability;  j) Limited public funding capacity: high public deficits municipalities and incapacity to raise funding from capital markets  To attract the necessary capital for investments in cities solutions have to be found to:  e) Reduce real and perceived risks of the investments;  f) Attract long term finance from specialised institutions (i.e. pension funds);  g) Develop project aggregation mechanisms to create bankable and sizeable investments with reduced transaction costs;  h) Develop off balance sheet investment systems with private mechanisms (development of single purpose vehicles and PPPs)  Smart Cities, as large scale innovative and costly changes, involve both financial engineering and socio- economic values, measured as internal rates of return (IRR) and economic rates of return (ERR), respectively, which might oppose each other.  SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING GROUP. GUIDANCE DOCUMENT. FINANCING MODELS FOR SMART CITIES SMART EUROCITIES Azamat Abdoullaev 2014
  • 11. SMART CITY CHALLENGES, RISKS, AND SOLUTIONS  Technology risk  Operational risk  Construction risk  Market demand risk  Policy risk  Finance risk  The public sector can offer particular financial instruments to leverage private financing:  Grant co-financing: to reduce the volume of investment form the private sector and thus their potential losses.  Equity support: offering equity to private developers  Guarantees to banks and private investors: sheltering the private sector for first losses of projects  Operational risks can be mitigated with the appropriate investment in skills; Technical assistance is key to reduce this risk; Construction risk can be mitigated through subordinate loans and guarantees, etc.  The ERR to the smart city is usually high (living standards and health benefits), while the FRR could be low, then public assistance instruments are required to compensate the private financiers. The more innovative the solution, the more difficult to raise finance.  The smart cities financial challenges:  f) High risk perception for innovative solutions and energy efficiency measures;  g) Uncertain energy prices and policy uncertainty on fossil fuel prices;  h) Large investment volumes required;  i) Long term to maturity/profitability;  j) Limited public funding capacity: high public deficits municipalities and incapacity to raise funding from capital markets  To attract the necessary capital for investments in cities solutions have to be found to:  e) Reduce real and perceived risks of the investments;  f) Attract long term finance from specialised institutions (i.e. pension fun ds);  g) Develop project aggregation mechanisms to create bankable and sizeable investments with reduced transaction costs;  h) Develop off balance sheet investment systems with private  mechanisms (development of single purpose vehicles and PPPs)  SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING GROUP. GUIDANCE DOCUMENT. FINANCING MODELS SMART EUROCITIES Azamat Abdoullaev 2014
  • 12. MULTIANNUAL FINANCIAL FRAMEWORK (MFF) 2014-2020: FINANCIAL ALLOCATION FROM ESIF  Cohesion Policy  Structural Funds:  European Regional Development Fund (ERDF),  European Social Fund (ESF)  Cohesion Fund (CF)  Common Agricultural Policy  European Agricultural Fund for Rural Development (EAFRD)  Common Fisheries Policy  European Maritime and Fisheries Fund (EMFF)  A total amount of … is allocated to each Member State for the 2014-2020 programming period from the European Structural and Investment Funds (ESIF), as follows:  Structural Funds (ERDF & ESF), Cohesion Fund and Youth Employment Initiative: €  European Agricultural Fund for Rural Development: €  European Maritime and Fisheries Fund: €  Total Budget: € for 2014-2020 (Operational Program for Cohesion Policy)  Percentage of Subsidy/Co-Financing: Up to 95% of the total cost.  Eligibility for Participation:  Central Government  Local Authorities  NGOs  Private Bodies SMART EUROCITIES Azamat Abdoullaev 2014
  • 13. PARTNERSHIP AGREEMENT AND OPERATIONAL PROGRAMS  The EC-Member State Partnership Agreement (PA) is to secure the synergy and coordination between the ESIF Funds supporting:  the Cohesion Policy (Structural Funds and Cohesion Fund),  the Common Agricultural Policy (European Agricultural Fund for Rural Development)  the Common Fisheries Policy (European Maritime and Fisheries Fund)  Strategic Objectives, or National Priorities  • Supporting the restructuring and strengthening the competitiveness of economy,  • Upgrading human resources, promoting employment and social cohesion,  • Protecting the environment and promoting the efficient use of resources  Promotion of sustainable local development: Territorial cohesion, Urban and Rural Development  The Partnership Agreements should be officially submitted to the European Commission for approval on April 2014  The Operational Programs (OP) specify in more detail the PA through specific priorities and indicative interventions.  The following programs will be prepared:  (a) Two Operational Programs for Cohesion Policy Funds,  (b) The Rural Development Program  (c) The Operational Program for Fisheries and Aquaculture.  There are be two Operational Programmes for Cohesion Policy:  1. the OPs for Competitiveness and Sustainable Development, which will be co-financed by the ERDF and the CF, with an EU contribution of € …, interventions will be promoted for the enhancement of competitiveness of the economy through the promotion of investment in the sectors of Research and Development and Information and Communication Technologies, interventions in the sectors of Environment, Energy and Transport, as well as interventions for the promotion of integrated sustainable urban development in deprived areas.  2. the OP for Employment, Human Resources and Social Cohesion, which will be co-financed by the ESF and the Youth Employment Initiative, with an EU contribution of € …, interventions will be promoted for the promotion of employment, lifelong learning and social cohesion  The Cohesion Policy Programs should be officially submitted to the EC by July 2014.  The approval of the European Commission is expected by the end of 2014. SMART EUROCITIES Azamat Abdoullaev 2014
  • 14. ESIF: WHO TO APPLY  Local Authorities: Urban and Rural Development and other projects contributing to the thematic objectives (environment, energy, etc.)  NGOs: Promotion of Social Economy and participation in the implementation of projects – Cooperation with Local Authorities and other bodies  Universities – R&D&I, Partnerships with local authorities, industries and enterprises and other organizations  Enterprises: Grant schemes, loans and other financing instruments for improving competiveness, innovation, employment schemes, etc. SMART EUROCITIES Azamat Abdoullaev 2014
  • 15. SMART EUROCITIES Azamat Abdoullaev 2014 FUTURE CITY ARCHITECTURE Inclusive Social Human City/ Town/ Community SMART SUSTAINABLE CITY i-City Platform Smart City Command and Control Center EcoSustai nable City/ Town/ Community Smart Digital City/ Town/ Community Physical Capital Natural Capital Ecosystems Natural Resources Renewables/RES Eco Technologies Green Infrastructure Eco-Urbanization Green Society ECO-SUSTAINABLE GROWTH Information/Digital Capital Smart Mobility , Smart Services ICT Infrastructure, OTN, Optical Networks , NG Broadband 3DTV, HDTV, CC, Intelligent Clouds Internet of Things, u-Computation Digital/Cyber Society TECHNOLOGICAL/SMART GROWTH Social/Human/I-Capital Innovation Ecosystems Smart Living Smart Economy Knowledge Infrastructure i-Industry Smart Governance Equity, Wellbeing, QoL Knowledge Society SOCIAL/INCLUSIVE GROWTH SUSTAINABLE URBAN TRINITY of Wellbeing, Quality of Life and Sustainable Growth
  • 16. SUSTAINABLE DEVELOPMENT AND REDEVELOPMENT PROJECTS  Digital or Cyber City Urban Projects, new and retrofitting, Cloud-Based Intelligent City Management Platform, advanced ICT Networks, Optical Internet Backbone, Municipal Wireless (WiFi) Communication Networks with open service model (tourist areas to start), smart ICT services for citizens (i- government, i-learning, i-health, i-commerce, etc)  Clean/Green Eco City Projects, Green Infrastructure, Transport, Buildings, Intelligent Energy Networks (green homes, neighborhood, districts; solar gardens and farms)  Intelligent/Inclusive/Human-Centered City Projects/ to nurture social inclusion, creativity, innovation, and talents, investing in education, arts and culture, organizing high quality cultural and creative events and performances, attracting talented professionals and international knowledge, cultural, and multi-media industries SMART EUROCITIES Azamat Abdoullaev 2014
  • 17. TOMORROW’S EUROCITIES: REDEVELOPMENT PROJECTS UNDER THE EU FUNDING SCHEMES  Smart City Governance Platform (Urban Intelligent Management System)  ■ Transport, including public transport, intelligent transport systems and parking, GIS;  ■ Environment/Energy, Environment Management, Energy networks, such as smart grids, smart meters, smart energy-efficient buildings;  Telecom networks, all-IP core networks, ultra-high broadband access convergence networks, advanced services and applications, such as FTTx, GPON, LTE, multi-play services, urban traffic management, building automation, lighting and energy management, access and security networks, location-based services, trust and security platforms, multimodal user Interfaces, Anytime/any place Ubiquitous connectivity, the Internet of Things between machines (multiple devices and sensors and actuators) and humans, M2M and M2M2H (real time data and control)  ■ Municipal projects, city administration and public utilities, waste management, modernisation of water systems, smart lighting systems, public safety and city resilience programms;  ■ Public Services, Education and Health, Safety and Security, and Social Networking, Economic Stimulus projects SMART EUROCITIES Azamat Abdoullaev 2014
  • 18. GLOBAL CITIES INITIATIVE IN EU: SMART EUROCITIES DEVELOPMENT PROGRAM  CREATING OVERALL SMART ECO CITY STRATEGY: Intelligent Community Design, Setting a Comprehensive Intelligent Community and Smart City Agenda/ Strategy/ Vision/Roadmap/MasterPlanning/Technological Platform  Scope: Smart City Branding & Full Sustainability Report & Total Package of the Next-Generation Urban Development  SMART GREEN EUROCITY PROJECTS MANAGEMENT PLANNING (Work Breakdown Structure and Project Organization Structure)  Scope: Smart Eco City Program;  DEVELOPING SMART CLOUD CITY MANAGEMENT PLATFORM (MUNICIPAL CONTROL AND COMMAND CENTER)  Scope: Urban Management System; Smart Cloud Computing Urban Platform  Delivery Date: December 2014  ORGANIZING SMART EUROCITY SEMINARS FOR COUNCIL MEMBERS, MUNICIPAL STAFF, TECHNOLOGY UNIVERSITY, INVESTORS AND OTHER STAKEHOLDERS  ORGANIZING SMART EUROCITY STAKEHOLDER PLATFORM  ORGANIZING SMART EUROCITY INVESTORS SUMMITS (Local, European, International; Programs and Prospects)  LIGHTHOUSE SMART CITY PROJECTS under EU Multiannual Financing Framework 2014-2020  EU Horizon 2020 (Lighthouse Projects)  EU ESIF Funds 2014-2020 (Integrated Urban Development Platform)  Delivery Date: 3-7 years according to the projects terms and conditions  Funding for Sustainable Cities and Green Initiatives: “Using EU funding mechanism for smart cities”  http://eu-smartcities.eu/content/show-world-you-are-smart-city  http://ec.europa.eu/environment/europeangreencapital/about-the-award/policy-guidance SMART EUROCITIES Azamat Abdoullaev 2014
  • 19. “SMART CITY” TEAM AND BUSINESS STAKEHOLDERS: CORE MEMBERS AND PROSPECTIVE PARTNERS  Smart City “X” Consortium  Smart City Management Team:  Municipal Mayor  City Council Members  Staff (urban planners, architects, engineers)  International Team:  EU Smart Cities Platform Stakeholders (Action Clusters)  Dr Azamat Abdoullaev, Coordinator (Urban Europe 2020; Smart Cities Global Initiative)  http://eu-smartcities.eu/content/become-smart-nation-build-your- brand-name  http://eu-smartcities.eu/content/show-world-you-are-smart-city  EUROPEAN PARTNERS  European Innovation Partnership on Smart Cities and Communities  PROSPECTIVE BUSINESS PARTNERS  EIS (I-World Concept and Smart Sustainable City Strategy)  IBM (Smarter Planet Initiative)  Cisco Systems (Smart + Connected Communities)  European Innovation Partnership (Smart Cities and Communities)  Siemens (Smart Mobility Initiative)  Huawei (Smart City Initiative)  Orange (France Telecom) (Smart City Initiative)  Alcatel-Lucent (Smart City Initiative)  Microsoft (Intelligent City Platform)  Oracle (Intelligent Government Platform)  Toshiba (Intelligent Energy and Smart City)  Schneider Electric (Smart City Initiative)  Hitachi (Smart City Initiative)  Smart City Planning, Inc. (SAP, LG CNS, NEC, HP, etc.) SMART EUROCITIES Azamat Abdoullaev 2014
  • 20. SMART EUROCITIES: CONCEPTUAL REFERENCE FRAMEWORK SMART EUROCITIES Azamat Abdoullaev 2014
  • 21. INVESTMENT AREAS  Smart Government and Intelligent Public Administration  Smart ICT, Optical Transportation, and Mobile Networks  Smart and Green Building and Sustainable Construction  Smart and Green Energy  Smart and Sustainable Water  Smart and Sustainable Waste  Smart Mobility and Green Transportation  Smart People and Knowledge Workers  Smart Economy, Business and Commerce  Smart Safety and Health  Smart Culture, Tourism, Education, Research and Innovation  Funding for Sustainable Cities and Green Initiatives: “Using EU funding mechanism for smart cities”  http://ec.europa.eu/environment/europeangreencapital/about-the-award/policy-guidance/ SMART EUROCITIES Azamat Abdoullaev 2014
  • 22. SMART CAPITAL PROJECTS: INNOVATION ECO CORRIDORS  Eco-Smart Natural and Built Environment  Integrated Sustainable Infrastructure: intelligent ICT, low energy districts and sustainable mobility  Smart and Green Squares, Eco Parks and Open Spaces, Climate Streets and Eco Districts  Smart Mobility and Eco Transportation; Smart Energy and Distributed Energy Networks (RES&RGS)  Industrial Innovation Parks, Business Clusters, Knowledge Parks, Science & Technology Parks, Health Parks, Biomedical Parks with Immortality Centers, Agriculture Technology Parks, Energy Parks, Server Farms, Eco Farms, or ICT Parks  Seaport Development Parks (Coastal Eco Parks (large fishing ports, recreation zones and seaside touristic facilities)  Environmental Protection Projects (Coastal Regeneration, marine parks, sea farms and large fishing ports and recreational zones; Green Forestation, forest protection, large forest recreation areas; Water Management and Flood Prevention, ground water replenishment, natural land and NATURA sites conservation; Sustainable Sewer Construction)  Sustainable Urban and Rural Redevelopment  Local Eco Communities Cluster, Smart Property Developments  Cultural Sustainable Settlements (China Eco Towns, Russian Smart Villages, British Green Communities, etc.)  Territorial Eco Corridors  Green Transportation Network (connected eco mobility, bike lanes, public transit, pathways, nature trails, European Path E4) SMART EUROCITIES Azamat Abdoullaev 2014
  • 23. EU INVESTMENT PROGRAMS  EU Multiannual Financial Framework 2014-2020  European Commission: Lighthouse Smart Community Projects (Horizon 2020)  Smart and Green Polis will be presented as an active member of the EU Lighthouse Projects, inviting institutions, public bodies, industries, city networks, and academia to proactively contribute to the cause.  To deploy smart city solutions across urban mobility; districts and built environment; and integrated infrastructures, the concept of Smart City ”Lighthouse Initiatives” is to be implemented, requesting collaboration between the European Commission, Member States and Industry, as well as cities and research institutions.  Over the next 7 years, a portfolio of at least 20 - 25 lighthouse projects is to be created: each with 6-10 cities (and partners), with the potential for Europe-wide roll out – dependent on levels of commitment, and access to / creation of funds.  Source: European Innovation Partnership on Smart Cities and Communities - Strategic Implementation Plan 14.10.2013  http://eu-smartcities.eu/content/presenting-european-innovation-partnership-smart-cities-and-communities  Sustainable Urban Development Platform (ESIF):  In the new EU budget 2014-2020, at least 5% of the European Regional Development Fund will have to be used for sustainable urban development. Based on a list of cities prepared by Member States in their Partnership Contract, the Commission will establish an Urban Development Platform comprising 300 cities throughout Europe, which will stimulate a more policy-oriented dialogue on urban development between the cities at European level and the Commission  Smart Eco Polis as a town implementing integrated and innovative actions for sustainable urban development to be included in the Partnership Contract and the Operational Programmes to have the EU CSF Funding 2014-2020 benefits.  EUROPEAN INVESTMENT BANK: Multi-component loans  EIB’s multi-component, multi annual investment programmes using a single “framework loan”. This funds a range of projects, usually by a national or local public sector body, most frequently regarding infrastructure, energy efficiency/renewables, transport and urban renovation SMART EUROCITIES Azamat Abdoullaev 2014
  • 24. INTELLIGENT GOVERNANCE SYSTEMS: SMART CLOUD PLATFORM + INTERNET OF EVERYTHING  The Smart Eurocity Cloud Platform  The Urban Internet of Everything is the cloud-networked connection of people, processes, data, and things.  PEOPLE(PERSON, ORGANIZATIONS)  PROCESS (ACTIVITIES, SERVICES)  DATA (INFORMATION, KNOWLEDGE)  THINGS (BUILDINGS, MACHINES, DEVICES)  The i-City Operation Center is connected with thousands of sensors and cameras spread throughout the cities, as the city brain of the Urban IoE, in which M2M technologies are vital to present intelligent data analytics for city processes.  “Smart City“ Intelligent Platform is to integrate a technology-centric (smart) level, an intelligent (people- centric) level, and eco-sustainable level improving the Urban Economy, Community Integration, Quality of Life, and overall Sustainability.  $14.4 trillion of potential value at stake for the private sector, IoE is a $19 trillion opportunity for businesses and governments globally 2013-2022. http://internetofeverything.cisco.com/  The Smart Cloud Platform (IBM or Cisco Powered) www.ibm.com/smartcloud SMART EUROCITIES Azamat Abdoullaev 2014
  • 25. INTEGRATING THE BEST PRACTICE SMART CITY PROJECTS ACROSS THE WORLD  SMART Eurocities Development Strategy implies all six dimensions to be merged and interrelated by the deployed Urban Intelligent Management System: Smart People, Smart Economy, Smart Governance, Smart Mobility, Smart Environments, and Smart Living  1. Smart Economy (Innovation, Productivity, Innovative Spirit, Intellectual Property, Entrepreneurship, Knowledge Market/Industry, Openness)  Holyoke, Massachusetts; Kochi, India; Malta; Manado, Indonesia; Nanjing, China  2. Smart Environment (Natural Capital and Resources, Sustainable Resource Management)  Amsterdam, Netherlands; Burlington, Ontario; Dublin, Ireland; Dubuque, Iowa; Glasgow, Scotland, United Kingdom; Lyon, France; Malaga, Spain; Peterborough, United Kingdom; San Diego, California; Shenyang, China; Santa Barbara, California; Stockholm, Sweden; Sydney, Australia; Yokohama, Japan  3. Smart Governance (e-Participation, public/social services, transparency, political strategies and perspectives)  Chengdu, China; Edinburgh, United Kingdom; Matosinhos, Portugal; Syracuse, New York; Wilmington, North Carolina  4. Smart Lifestyle (Smart Living, Quality of Life)  Boise, Idaho; Houston, Texas; Johannesburg, South Africa  5. Smart Transportation (Smart Mobility, innovative, safe and sustainable transport systems and facilities)  Alameda County, California; Alcoa, Tennessee; Portland, Oregon; Southampton, United Kingdom  6. Smart Community (Social Cohesion, Unity in Community, Human Infrastructure, Interfaces, Integration)  Chattanooga, Tennessee; Dublin, Ohio; Eindhoven, the Netherlands; Issy-les-Moulineaux, France; Luxembourg; Queensland, Australia; Stratford, Ontario, Canada; Windsor-Essex, Ontario, Canada; Skolkovo, Russia  . The EU Smart Communities and Cities Prototype: 3.0 City, from Dumb to Intelligent Cities. http://www.slideshare.net/ashabook/30- cityeu-prototype; http://www.slideshare.net/ashabook/urban-europe; http://www.slideshare.net/ashabook/sustainable-city  http://eu-smartcities.eu/content/show-world-you-are-smart-city SMART EUROCITIES Azamat Abdoullaev 2014
  • 26. LIGHTHOUSE SMART POLIS PROJECT  The light house projects should look for creating partnerships between industries, academics and cities, empower citizens and ensure the replicability of the solutions, ensure the funding from various sources. Therefore each project should:  Be realised in 2 – 3 cities or communities (light house cities or communities);  include industry, city planning authorities which should also reflect the view of the consumer organisations, research community, local Small and Medium Size Companies (SMEs);  co-involve 2 - 3 follower cities i.e. cities willing to contribute to the process though the replication of solutions at the end of the project and having access to the knowhow and results of the project and a privileged contact with the project's partners. The involvement of the follower cities should be relevant (e.g. participating in definition of user requirements and methodology of transferability of solutions, data collection etc.). The follower cities should aim at improving their energy performance or the share of use of renewables (e.g. 60% reduction of primary energy for buildings, 20 - 30 % RES use for electricity as well as for heating and cooling). EU geographical coverage conditions should be also applied.  Ensure that all proposed activities are a part of ambitious urban plan. These activities should also lead to the development of integrated urban plans. The urban plan shall integrate buildings planning, energy networks, ICT, transport/mobility planning; additional issues may be addressed as well if relevant for the city. These plans shall be submitted with the proposal as a supporting document(s).  the funding for the other parts of the programme or initiative in which the lighthouse projects are embedded should be secured from other sources, preferably private ones, but also other EU funding sources (European Structural and Investment (ESI) funds for example), national or regional funding.  Projects should demonstrate and validate attractive business plans that allow large scale replication of fast economic recovery in cities of varying degrees of economic conditions (from very poor to very rich), varying sizes but significant urban areas and varying climatic conditions to ensure high impact and replication potential .  The industrial partners and municipality authorities should engage in replicating successful demonstration in their own and other cities, notably 'follower cities'; the replication plans are compulsory and are part of the evaluation.  Consortia must have a clearly defined structure with roles and responsibilities properly spelled out for all involved entities. SMART EUROCITIES Azamat Abdoullaev 2014
  • 27. EUROPEAN INVESTMENT BANK: SMART SUSTAINABLE CITY INVESTMENT PROGRAMS  EIB supports projects that make a significant contribution to growth, employment, regional cohesion and environmental sustainability in Europe and beyond. Priorities are defined in Operational Plan:  Small and medium sized enterprises & mid-caps: the creators of 80% of new jobs  Regional development: to address economic and social imbalances  Innovation: promoting skills and innovation at every level  Trans-European Networks: linking Europe’s infrastructure, principally in transport  Energy: building competitive and secure supply  Environmental sustainability: including both climate action and investment in the urban and natural environment  Urban Environment  Urban renewal – improving the quality of life and aiding social cohesion  Heritage – preserving the social, architectural and historical fabric of towns and cities  Buildings – renovation and renewal  Infrastructure – promoting sustainable transport, energy, ICT etc.  Mobility – helping people move around while cutting noise and air pollution  Sustainable transport  Sustainable energy project advice, ELENA  Water: Water supply, Wastewater treatment and disposal, Coastal erosion, Flood control, Hydropower generation  Biodiversity; Forestry  Financing  EIB lends directly to major projects, > Euro 25m, or pass through intermediaries for smaller investments, < Euro 25m. Funding is also channelled through: JESSICA: a programme to magnify the effect of EU Structural Funds for urban projects. JASPERS: assists new EU Member States achieve grant financing under the Structural and Cohesion Funds SMART EUROCITIES Azamat Abdoullaev 2014
  • 28. EUROPEAN INNOVATION PARTNERSHIP: SMART CITIES AND COMMUNITIES  http://eu-smartcities.eu/blog/eib-eip-smart-cities-financing  http://eu-smartcities.eu/blog/smart-superpowers-projects-states-powers-great-powers-and-hyperpowers  http://eu-smartcities.eu/blog/europe-sustainable-states-commitments-and-smart-nations-franchises  http://eu-smartcities.eu/blog/europe-sustainable-states-commitments  http://eu-smartcities.eu/blog/smart-cities-global-initiative  http://eu-smartcities.eu/blog/how-build-sustainable-cities-roadmap-mayors-city-managers-and-city-councils  http://eu-smartcities.eu/blog/what-not-smart-city  http://eu-smartcities.eu/blog/how-build-sustainable-cities-roadmap-mayors-city-managers-and-city-councils  http://eu-smartcities.eu/blog/what-not-smart-city  http://eu-smartcities.eu/blog/eu-urban-agenda-sustainable-cities-pilot-case-smart-limassol  http://eu-smartcities.eu/blog/smart-city-commitments-permanent-strategic-consultancy-group  http://eu-smartcities.eu/content/become-smart-nation-build-your-brand-name  http://eu-smartcities.eu/content/show-world-you-are-smart-city  http://ec.europa.eu/dgs/secretariat_general/eu2020/docs/intelligent_europe_center_en.pdf  http://www.cs.ucy.ac.cy/CIT2011/files/SMARTWORLD.pdf  http://www.eu-smartcities.eu/ SMART EUROCITIES Azamat Abdoullaev 2014
  • 29. I-COMMUNITY CONSULTANTS AND DEVELOPERS  Dr Azamat Abdoullaev, Director  EIS Encyclopedic Intelligent Systems Ltd (Cyprus, EU)  Member of the European Innovation Partnership on Smart Cities and Communities  EIS Encyclopedic Intelligent Systems Ltd (Moscow, Russia)  http://www.slideshare.net/ashabook/eis-ltd Telefax: + 357 25 561 883  E-mail: EIP on Smart Cities and Communities’ Platform’s Website  smartcity@cytanet.com.cy; ontopaedia@gmail.com  Internet Sites: http://iiisyla.livejournal.com  ООО "Энциклопедические Интеллектуальные Системы“(Moscow/Russia)  Skolkovo Innovation Center Participant: http://community.sk.ru/net/1120292/  http://en.wikipedia.org/wiki/Azamat_Abdoullaev  HTTP://WWW.SLIDESHARE.NET/ASHABOOK/AZAMAT-ABDOULLAEV  I-COMMUNITY (WORLD, REGION, STATE, CITY) GOVERNANCE PLATFORM  http://www.slideshare.net/ashabook/encyclopedic-intelligence  http://www.slideshare.net/ashabook/encyclopedic-intelligence-24260973  http://www.slideshare.net/ashabook/encyclopedic-intelligence-global-marketing  http://www.slideshare.net/ashabook/encyclopedic-intelligence-big-science-and-technology  http://www.slideshare.net/ashabook/global-intelligence-26413485  http://www.slideshare.net/ashabook/iworld-25498222 SMART EUROCITIES Azamat Abdoullaev 2014
  • 30. “SHOW TO THE WORLD THAT YOU ARE A SMART CITY”: THE FIRST DEADLINE IS APPROACHING BY 15 JULY  Are you on the right track to become a Smart City? It is said that the future of the world will be decided by the quality of its cities, and it is expected that by 2020 over 40 urban areas will turn into Smart Cities.  However, the Smart Cities Global Initiative is concerned about the large variety of narrow technical visions, models and approaches in which on many occasions “the push towards smart cities is being led by the wrong people –technology companies with naïve visions and short term commercial goals–, while the architects, planners and scientists often struggle to share their specific knowledge”.  That is why this initiative is looking for megacities, municipalities, communities or brand new cities that are following a smart community development strategy aiming to unify all the city systems, services, operations, activities, departments and agencies as a sustainable smart urban ecosystem.  The applications have to provide evidence that the city has potential capacity to take profit of the intelligent resources offered through the Smart Cities Global Initiative. They also have to prove that their transformation into a Smart City has a strong leadership and that it has strong intentions to invest intelligent and financial capital into smart and sustainable urban development.  The selected urban entities will be provided with intelligent property investment as well as sustainable city exclusive education and training.  You can submit your applications via e-mail …at smartcity@cytanet.com.cy until the 15th of July.  For further information on the Smart Cities Global Initiative, consult the online brief guide.  http://eu-smartcities.eu/blog/smart-cities-global-initiative  http://eu-smartcities.eu/content/show-world-you-are-smart-city SMART EUROCITIES Azamat Abdoullaev 2014

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