This presentation was held during the 5th GIB Summit, May 27-28 2015. The presentation and more information on the Global Infrastructure Basel Foundation are available on www.gib-foundation.org

1. This presentation was
held during the 5th GIB
Summit, May 27-28 2015.
The presentation and
more information on the
Global Infrastructure Basel
Foundation are available
on www.gib-foundation.org
The next GIB Summit will take place in Basel,
May 24-25, 2016.
The information and views set out in this presenation are those of the author(s) and do not necessarily reflect the opinion of the Global
Infrastructure Basel Foundation. Neither the Global Infrastructure Basel Foundation nor any person acting on its behalf may be held responsible
for the use of the information contained therein.

2. Financing
Urban
Resilient
Infrastructure
Oren
Ahoobim
oren.ahoobim@dalberg.com
28
May,
2015

3. 3
Four
Points
1. The
goal
should
not
be
to
build
resilient
infrastructure.
The
goal
should
be
to
build
infrastructure
that
enhances
urban
resilience.
2. Infrastructure
that
enhances
urban
resilience
can
generate
mul?ple
co-­‐
benefits
to
the
city
overall.
– This
broader
public
value
is
an
externality
not
fully
captured
by
the
investor.
– To
the
extent
that
this
value
is
a
public
good,
the
public
sector
should
subsidize
any
incremental
cost
associated
with
designing
and
building
resilience
enhancing
infrastructure.
3. It
is
difficult
to
fully
measure
the
broader
value
or
co-­‐benefits
because
it
is
difficult
to
quan?fy
(resilience)
linkages
across
different
urban
systems.
– We
need
beNer
tools
to
measure
posi?ve
and
nega?ve
resilience
linkages.
4. If
we
can
beNer
measure
these
valuable
externali?es/co-­‐benefits,
we
can
unlock
new
sources
of
funding
to
pay
for
more
and
beNer
infrastructure.

4. 4
Let’s
clarify
Resilient
Infrastructure
Urban
Resilience
Urban
Resilient
Infrastructure

5. 5
Let’s
clarify
Urban
Resilience
The
capacity
of
a
city
(individuals,
communi8es,
businesses,
ins8tu8ons,
urban
systems)
to
survive
and
thrive
in
the
face
of
acute
shocks
and
chronic
stresses
Urban
Resilient
Infrastructure
Adapted
from
the
Rockefeller
Founda?on,
the
World
Bank,
and
Dalberg
research

6. 6
We
take
a
broad
perspec<ve
on
shocks
and
stresses
Adapted
from
the
Rockefeller
Founda?on
100
Resilient
Ci?es,
World
Bank
CityStrength,
and
Dalberg
research
Shocks
–
typically
acute
events
• Fires
• Heat
waves
• Disease
outbreak
.
.
.
Stresses
–
typically
more
chronic
condi<ons
• Social
exclusion
• Limited
access
to
water/sanita?on
• Lack
of
affordable
housing
.
.
.
• Floods
• Earthquakes
• Terrorism
/
Riots
• Poverty
/
Inequality
• Economic
exclusion
• High
crime
Not
only
climate
resilience

7. 7
Let’s
clarify
Resilient
Infrastructure
Infrastructure
that
is
able
to
maintain
its
func?on
(survive
and
thrive)
under
a
range
of
shocks
and
stresses
Urban
Resilient
Infrastructure

8. 8
These
concepts
are
connected
Urban
Resilience
Resilient
Infrastructure
• Economic
systems
• Social
capital
• Community
systems
• Governance
and
leadership
• Not
good
enough
• May
actually
be
bad

9. 9
In
prac<ce,
these
concepts
are
likely
very
connected
Urban
Resilience
Resilient
Infrastructure

10. 10
In
prac<ce,
these
concepts
are
likely
very
connected
Urban
Resilience
Resilient
Infrastructure

11. 11
Resilience
Enhancing
Infrastructure
(REI)
Urban
Resilience
Resilient
Infrastructure
Infrastructure
that
enhances
the
resilience
of
the
city
overall
1. Reduces
vulnerability
to
shocks/stresses
2. Enables
response
&
management
during
crises
3. Accelerates
rebound
following
crises

12. 12
Source:
Wentworth
Technology
For
example,
consider
a
Bus
Rapid
Transit
system…

13. 13
Ques<on:
How
can
we
make
a
resilient
BRT
system?
• Invest
to
ensure
the
BRT
system
con<nues
to
perform
under
a
range
of
shocks
and
stresses
Ø Design
and
build
the
system
in
favorable
loca?ons
to
reduce
vulnerability
Ø Invest
in
more
durable
physical
assets
(e.g.
weather
resistant)
Ø May
involve
financial
engineering
to
ensure
cash
flows
are
robust
under
different
economic
condi?ons/shocks
Fundamentally
this
is
about
enhancing
the
physical
and
economic
resilience
of
the
asset

14. 14
Different
ques<on:
How
can
we
design
the
BRT
system
so
that
it
contributes
maximally
to
strengthening
the
city’s
overall
resilience?
• Will
likely
want
to
invest
similarly
in
physical
and
economic
resilience
• May
also
consider
other
system
design
modifica?ons:
• Design
passenger
routes
to
expand
access
and
serve
excluded/
marginalized
communi?es
‘Super
BRT
system’
that
enhances
urban
resilience
Enhances
Social
Resilience
by:
• Reducing
poverty
• Increasing
social
cohesion

15. 15
Different
ques<on:
How
can
we
design
the
BRT
infrastructure
so
that
it
contributes
maximally
to
strengthening
the
city’s
overall
resilience?
• Will
likely
want
to
invest
similarly
in
physical
and
economic
resilience
• May
also
consider
other
system
design
modifica?ons:
• Design
passenger
routes
to
expand
access
and
serve
excluded/
marginalized
communi?es
• Design
key
BRT
transit
hubs
outside
of
the
city
center
to
catalyze
greater
regional
economic
ac?vity
and
diversifica?on
Improve
Economic
Resilience
by
diversifying
economic
ac?vity
‘Super
BRT
system’
that
enhances
urban
resilience

16. 16
Different
ques<on:
How
can
we
design
the
BRT
infrastructure
so
that
it
contributes
maximally
to
strengthening
the
city’s
overall
resilience?
• Will
likely
want
to
invest
similarly
in
physical
and
economic
resilience
• May
also
consider
other
system
design
modifica?ons:
• Design
passenger
routes
to
expand
access
and
serve
excluded/
marginalized
communi?es
• Design
key
BRT
transit
hubs
outside
of
the
city
center
to
catalyze
greater
regional
economic
ac?vity
and
diversifica?on
• Design
with
electric
buses;
Use
bus
baNeries
to
serve
as
back-­‐up
power
source
for
the
city
in
?mes
of
severe
load
stress
Improve
Social
&
Economic
Resilience
by:
• Increasing
reliability/stability
of
the
electrical
grid
• Improve
health
outcomes
by
reducing
local
air
pollu?on
‘Super
BRT
system’
that
enhances
urban
resilience

17. 17
Different
ques<on:
How
can
we
design
the
BRT
infrastructure
so
that
it
contributes
maximally
to
strengthening
the
city’s
overall
resilience?
• Will
likely
want
to
invest
similarly
in
physical
and
economic
resilience
• May
also
consider
other
system
design
modifica?ons:
• Design
passenger
routes
to
expand
access
and
serve
excluded/
marginalized
communi?es
• Design
passenger
routes
to
catalyze
greater
regional
economic
ac?vity
and
diversifica?on
(outside
the
city
center)
• Select
electric
buses;
Use
bus
baNeries
to
serve
as
back-­‐up
power
source
for
the
city
in
?mes
of
severe
load
stress
• Design
bus
sta?ons
to
serve
as
shelters
during
heavy
storms
• Design
bus
lanes
to
serve
as
evacua?on
routes
• Locate
bus
depots
strategically
in
neighborhoods
to
serve
as
staging
ground
for
emergency
relief
services
during
crises
Improve
Social
&
Economic
Resilience
by:
• Reducing
vulnerability
of
people
during
storms
• Accelera?ng
recovery
efforts
following
a
disaster
‘Super
BRT
system’
that
enhances
urban
resilience

18. 18
Super
BRT
System
Reduces
Poverty
Increases
Social
Cohesion
Stabilizes
Electricity
Grid
Reduces
Health
Costs
Provides
Protec<ve
Shelter
Enable
Emergency
Response
Provides
significant
economic
value
to
the
city,
above
and
beyond
the
private
value
to
the
BRT
investor
Mul<ple
Resilience
Benefits
Urban
Resilience
Resilient
Infrastructure

19. 19
Unlocking
Resilience
Value
How
can
we
unlock
this
value
as
a
way
to
bridge
the
financing
gap
in
ci<es?
1. We
need
to
beNer
understand
and
quan?fy
the
posi?ve
and
nega?ve
resilience
linkages/impacts
of
infrastructure
on
other
urban
systems.
2.
We
need
more
coordinated
planning
and
design
to
op?mize
system
benefits
of
(individual)
infrastructure
investments.
• We
need
beNer
structures
for
working
collabora?vely
across
city
departments,
across
public
and
private
organiza?ons,
and
across
regional
and
na?onal
jurisdic?ons.
(This
is
hard)
Good
news:
Small
design
changes
can
yield
big
resilience
dividends.
Small
design
changes
may
not
be
(too)
costly.

20. 20
Recap
• It’s
not
just
about
making
infrastructure
more
resilient,
but
more
importantly
it’s
about
designing
and
implemen8ng
infrastructure
that
maximally
contributes
to
enhancing
urban
resilience
overall.
• It’s
not
only
about
building
resilience
to
climate
change
and
severe
weather
events.
Addressing
the
range
of
economic
and
social
shocks
and
stresses
ci?es
face
is
also
cri?cal.
• Inves?ng
in
resilience
can
generate
mul?ple
co-­‐benefits
and
posi?ve
externali?es.
Where
resilience
value
is
a
public
good,
the
public
sector
should
subsidize
its
cost.
• We
need
beNer
tools
and
approaches
for
measuring
resilience
impacts/linkages
across
urban
systems.
If
we
can
beNer
measure
these
linkages,
we
may
be
able
to
unlock
new
ways
to
pay
for
addi?onal
infrastructure,
assuming
we
can
coordinate
effec?vely.

21. 21
Thank
You!

22. 22
Who
should
pay
for
resilience
investments?
Globally
Relevant
Locally
Relevant
Distribu<on
of
Investment
Returns/Value
Scale
Poten<al/
Relevance
of
Investment
Highly
Diffuse
Concentrated/
Easily
Captured
by
Investor
Individuals/Households/
Private
Investors
Na<onal/Local
Government
Private
Investors
(Regional
&
Interna<onal)
Development
Ins<tu<ons
&
Global
Chari<es