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  2. 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. 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. 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. 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. 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. 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. 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. 9. CDIA Scope and Approach
  10. 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. 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. 12. CDIA Interventions by Sector (PFS) Solid waste management Flood management Efficient transport systems
  13. 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. 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. 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. 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. 17. Selected City Interventions “integrated transport “Cochin, INDIACDIA: US$ 370,000Integrated Urban TransportInvestment Value: US$ 122 million
  18. 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. 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. 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. 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. 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. 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. 24. Cities Development Initiative for Asia Suites 202-203, Hanston BuildingEmerald Avenue, Ortigas Center, Pasig City 1600 Metro Manila, Philippines www.cdia.asia