TTHEHE C CITIESITIES DDEVELOPMENTEVELOPMENT

IINITIATIVENITIATIVE F FOROR A ASIASIA

ENHANCING THE QUALITY ENHANCING THE QUALITY OF URBAN OF URBAN

INFRASTRUCTURE INFRASTRUCTURE INVESTMENTSINVESTMENTS

Source: World Urbanization Prospects, the 2009 Revision

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

Asia’s Urban Challenge

• 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

Over the next 20 years cities in Asia must be ready to provide infrastructure and services to an expected 1 billion additional people if economic growth and competitiveness are to progress.

More Competitive Cities

Ability of a city to increase household incomes and productivity is a combination of:o Capacity for wealth

creationo Business friendly

environmento Strength of research

and development

Competitive cities need:o Good quality infrastructure,

logistics, communications and public services

o Innovation and entrepreneurship

o Natural resourceso Location relative to marketso Social capitalo Good quality of life

They are business friendly and able to raise finance to make it all happen

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

The urban poor must be integrated in inclusive urban development

More inclusive citiesS

ource: Ravallion 2007

Source: World Urbanization Prospects, the 2009 Revision

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

Bridging the urban infrastructure investment planning and programming gap

CDIA Rationale

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

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.

CDIA helping find solutions

CDIA Scope and Approach

CDIA Focus Areas

City Development Plan/Strategy

Infrastructure Investment

Programming

Pre-FeasibilityStudies/Project

structuring

Feasibility Study

Project Implementation

Operation & Maintenance

CDIA Focus Areas Financing Arrangements

Infrastructure Investment Project Cycle

UP-STREAM DOWN-STREAM

DIRECT SUPPORT

CAPACITY DEVELOPMENT

Current CDIA support to cities:

Implementation Status (February

2012)

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

CDIA Interventions by Sector (PFS)

Efficient transport systems

Flood management

Solid waste management

Selected City Interventions

River-based urban infrastructure development, CBD rehabilitation and bus terminal

Banda Aceh, INDONESIA

Guiyang, CHINACDIA: US$ 521,800

Rehabilitation of Water BodiesInvestment Value: US$ 101 million

Urban Public Transport (LRT)Investment Value: US$ 2.3 billion

“promoting effective public transport”

Selected City Interventions

“innovate public-private partnership for CDB revitalization”

Banda Aceh, INDONESIACDIA: US$ 327,500

River-based urban infrastructure development and CBD revitalization Investment Value: US$ 22.6 million

Selected City Interventions

“promote public-private partnerships”

Metro Cebu, PHILIPPINESCDIA: US$ 459,000

South Road Project Utilities, Urban public transportInvestment Value: US$ 500 million

Selected City Interventions

“promote cultural heritage in urban development”

Naga, PHILIPPINESCDIA: US$ 321,000

Naga River RevitalizationInvestment Value: US$ 50 million

Selected City Interventions

“integrated transport “

Cochin, INDIA CDIA: US$ 370,000

Integrated Urban Transport Investment Value: US$ 122 million

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

Capacity Development

Three-layered Capacity Development Strategy

Strengthening capacity at city level as part of direct interventionsIndirect interventions through National Partner Organizations (NPO)Sustain CDIA efforts with Manila core team and nodal offices (to be) established in Shanghai, China; Delhi, India and Singapore

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.

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

Capacity Development

CDIA process tools and guidelines

Pre-Feasibility Study guidelines

City infrastructure investment planning

and programming toolkit

PPP in urban infrastructure development

guidelines

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

Cities Development Initiative for AsiaSuites 202-203, Hanston Building

Emerald Avenue, Ortigas Center, Pasig City 1600 Metro Manila, Philippines

www.cdia.asia