ENHANCING THE QUALITY OF URBAN INFRASTRUCTURE INVESTMENTS

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  • 1. T HE C ITIES D EVELOPMENT I NITIATIVE F OR A SIA ENHANCING THE QUALITY OF URBAN INFRASTRUCTURE INVESTMENTS
  • 2. An Urban Asia by 2025  Urban population of Asia will double between 2010 and 2050  Rural population will stop growing by 2025  By 2050, 65% of Asia’s population will be urban  Asia’s urban areas are driving economic growth  But many of its cities are not up to the task  Massive investment is needed to ensure more liveable cities Source: World Urbanization Prospects, the 2009 Revision
  • 3. Asia’s Urban ChallengeOver the next 20 years cities in Asia must be ready to provideinfrastructure and services to an expected 1 billion additionalpeople if economic growth and competitiveness are to progress.• Asia’s economic growth is:− Predominantly urban based− Severely constrained by infrastructure deficiencies• Improve/expedite urban infrastructure and service delivery is a pre-condition for cities’ ability to realize economic growth and compete• The estimated urban environmental infrastructure investment need in the Asia-Pacific region is about $100 billion per year• Current urban environmental infrastructure investment is about $ 40 billion per year
  • 4. More Competitive Cities Ability of a city to  Competitive cities need: o Good quality infrastructure, increase household incomes and productivity logistics, communications and public services is a combination of: o Innovation and entrepreneurship o Capacity for wealth o Natural resources creation o Location relative to markets o Business friendly o Social capital environment o Good quality of life o Strength of research and development  They are business friendly and able to raise finance to make it all happen
  • 5. More inclusive cities City regions serve as magnets for people, enter- prise and culture, but with urbanization, poverty also urbanizes The Asia-Pacific region remains host to over half of the worlds slum population: in 2010 this amounted to an estimated 505.5 million people Source: Ravallion 2007 The urban poor must be integrated in inclusive urban development
  • 6. Greener Cities Cities generate waste that contributes to land, air and water pollution Climate change poses a massive threat to cities – adaptation and mitigation strategies must both be worked on at local level Major improvements are possible in the areas of energy utilisation, urban transport and land use, and in solid waste disposal Source: World Urbanization Prospects, the 2009 Revision
  • 7. CDIA Rationale Bridging the urban infrastructure investment planning and programming gap Cities often have macro-development strategies and spatial plans, but city infrastructure projects to implement them are often not adequately defined and prepared for financing Particular issue for the 1,400+ medium-sized cities in Asia’s developing countries with populations of 250,000 to 5,000,000 Difficult to use IFIs standard feasibility study instruments (PPTAs) for these purposes – need for an additional instrument
  • 8. CDIA helping find solutions Mandate: The CDIA is assisting medium sized Asian cities to bridge the gap between their development plans and financing of their infrastructure investments, with emphasis on: - Urban environmental improvement - Urban poverty reduction - Climate change mitigation or adaptation - Improved governance The CDIA partnership established in 2007 jointly managed by ADB and GIZ and financially supported by ADB, BMZ, Sida, Gov. of Austria and the Shanghai Municipal Government. CDIA has a core budget of $ 37.9 million (2007-2012) and non- core resources (including those held by KfW, ex-InWEnt, Singapore and SMG) of $ 20.1 million.
  • 9. CDIA Scope and Approach
  • 10. CDIA Focus Areas Infrastructure Investment Project Cycle DIRECT SUPPORT UP-STREAM DOWN-STREAMCity Development Infrastructure Pre-Feasibility Feasibility Plan/Strategy Investment Studies/Project Study Programming structuring CDIA Focus Areas Financing Arrangements Project CAPACITY DEVELOPMENT Implementation Operation & Maintenance
  • 11. Implementation Status (February 2012) Current CDIA support to cities: Approved support applications for 40 cities in 13 countries including 63 Pre-Feasibility Studies (PFS) 33 PFS, 2 urban infrastructure investment programs and three city-level capacity-building assignments completed in 21 cities On-going activities in another 19 cities Estimated infrastructure investment value of projects under preparation about $ 5 billion - CDIA inputs represents approx. 0.25% of this Potential sources of investment financing identified in all approved cases, firmed up for 12 PFS in 9 cities
  • 12. CDIA Interventions by Sector (PFS) Solid waste management Flood management Efficient transport systems
  • 13. Selected City Interventions “promoting effective public transport” Guiyang, CHINA CDIA: US$ 521,800 Rehabilitation of Water Bodies Investment Value: US$ 101 million River-based urban infrastructure development, CBD Urban Public Transport (LRT) rehabilitation and bus terminal Investment Value: US$ 2.3 billion Banda Aceh, INDONESIA
  • 14. Selected City Interventions“innovate public-private partnership for CDBrevitalization” Banda Aceh, INDONESIA CDIA: US$ 327,500 River-based urban infrastructure development and CBD revitalization Investment Value: US$ 22.6 million
  • 15. Selected City Interventions“promote public-private partnerships”Metro Cebu, PHILIPPINESCDIA: US$ 459,000South Road Project Utilities,Urban public transportInvestment Value: US$ 500 million
  • 16. Selected City Interventions “promote cultural heritage in urban development” Naga, PHILIPPINES CDIA: US$ 321,000 Naga River Revitalization Investment Value: US$ 50 million
  • 17. Selected City Interventions “integrated transport “Cochin, INDIACDIA: US$ 370,000Integrated Urban TransportInvestment Value: US$ 122 million
  • 18. Selected City Interventions “working with industry towards a greener city” Da Nang, VIETNAM CDIA: US$ 330,000 Waste Water Management and Sewerage Investment Value: US$ 50 million
  • 19. Capacity DevelopmentThree-layered CapacityDevelopment StrategyStrengthening capacity at citylevel as part of directinterventionsIndirect interventions throughNational PartnerOrganizations (NPO)Sustain CDIA efforts withManila core team and nodaloffices (to be) established inShanghai, China; Delhi, Indiaand Singapore
  • 20. Capacity Development Modalities for Capacity DevelopmentIn framework of City Interventions: Learning by doing, hand-holding; Institutional analysis of CDIA areas of concern; Flagging capacity constraints considered crucial for down-stream impact; Identification of possible approaches to address these constraints.Other modes of capacity development: Training on Project Programming, PFS; Peer-to-Peer Learning; YAP Program National and regional knowledge events; Partner dialogues, sensitization of CDIA approach.
  • 21. National Partner Organizations Identification of 19 NPOs in 9 countries Ongoing discussions to agree on common work programs– China– India– Indonesia– Nepal– Pakistan– Philippines– Sri Lanka– Thailand– Vietnam
  • 22. Capacity Development CDIA process tools and guidelines City infrastructure PPP in urban Pre-Feasibility investment planning infrastructureStudy guidelines and programming development toolkit guidelines
  • 23. Discussion Points How to bridge the annual US $ 60 million (60% of requirements) infrastructure investment gap in Asia? Better project formulation needed Arrangements for private sector participation need to be dramatically up-scaled Capacities for local urban infrastructure investment planning and programming and project preparation need to be sustainably strengthened Existing regional institutional arrangements not equipped to deal with this – need for a catalyst institution supported by all those with a vested interest
  • 24. Cities Development Initiative for Asia Suites 202-203, Hanston BuildingEmerald Avenue, Ortigas Center, Pasig City 1600 Metro Manila, Philippines www.cdia.asia