Cities Development Initiative for AsiaInvesting in Asia's urban future

Sustainable Cities

Eva Ringhof and Brian Capati, CDIA Philippines De La Salle University, Nov 12, 2014

What is CDIA?

CDIA is an international partnership initiative, established in 2007 by the Asian Development Bank and the Government of Germany, with additional core funding support from the governments of Austria, Sweden, Switzerland, and the Shanghai Municipal Government.

CDIA supports the identification and development of urban investment projects and links them with potential financiers.

CDIA provides assistance to medium-sized Asian cities to bridge the gap between their development plans and the implementation of their infrastructure investments.

Mandate

Why CDIA?

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

Urbanization Indicators

Asian cities…

Show an enormous population growth -averaging 3% per year - compounding their global impact.

Provide 80% of the economic base.

Contribute to noise, air, and water pollution.

Are the hubs of over 200 million poor and vulnerable.

Urban population in Asia increased from 229 million in 1950 to

1,719 million in 2009, and it is expected to further increase to

3,382 million by 2050.

Source: United Nations. (2010). World Urbanization Prospects: The 2009 Revision Population Database.

Urban Poverty Challenges

About 700 million people in Asia and the Pacific live on less than US$1 a day, 400 million of them in urban areas.

Urban poverty is complex and multi-dimensional –extending beyond the deficiency of income or consumption:

• Deteriorating sanitation and environmental conditions

• Inadequate access to land and housing

• Physical infrastructure and services

• Livelihood sources

• Health and education facilities

• Social security networks and empowerment

• Exposure to climate change risks

Climate Change Challenges

Cities use about 85% of the energy and generate about 75% of GHGs.

Developing Asia’s projected global share of CO2 emissions for energy consumption will increase from 30% to 43% by 2030.

Vulnerability through natural disaster

Source: UNEP 2010Source: ADB 2013

Finding Solutions

Cities often have macro-

development strategies but

city infrastructure projects are not related to them.

Bridging the gap requires city-wide

investment planning &

pre-feasibility project

structuring

Cities’ capacity to clearly demonstrate the

viability of projects need to be strengthened

Managing cities in this context requires new forms of engagement with cities and new approaches to financing.

What does the city need?

How to shape the project technically and financially feasible?

What are suitable finance options?

Development Impact Areas

How can we shape a sustainable city in regard to …?

1. Good Governance

2. Environmental Improvement

3. Poverty Reduction

4. Climate Change Mitigation/ Adaptation

Group exercise:

• Split up in 4 groups

• Discuss and visualize by using cards and/or flip charts 20 min.

- What does the city have to consider in order to ensure …?

- What are the relevant stakeholders to deal with?

• Present your ideas to the class (2 presenters from each group) 3 min.

Adapt to the need of the city!

What? – Infrastructure sector

Where? – Boundaries

How? – Local conditions

Who? – Stakeholder involvement

When? – Time frame

CDIA Regional and National Partner Organizations

Regional Partner Organizations

CityNet (South Korea)

ICLEI – Local Governments for Sustainability

Singapore Ministry of Finance

United Cities and Local Governments Asia Pacific (UCLG-ASPAC)

UN Habitat

National Partner Organizations

INDIA – CEPT, TERI, NIUA, IDFC Foundation

INDONESIA – YIPD, URDI, SMI

MONGOLIA – UDRC

NEPAL – TDF

PAKISTAN – IPDF

PHILIPPINES – DILG, PPP Center

SRI LANKA – Sevanatha

VIETNAM – DSI, UDA

CDIA uses tools to assist cities meet their urban planning and infrastructure goals

Infrastructure Investment Prioritization The City Infrastructure Investment Programming and Prioritization Toolkit assists cities in undertaking a more structured approach to urban infrastructure planning, prioritization, and programming.

Pre-feasibility Studies The Pre-Feasibility Study Guidelines assist cities and consultant teams in formulating integrated, inclusive, and sustainable infrastructure projects.

Linking to FinanceThe Public-Private-Partnership Guide for Municipalities offers cities a basic understanding on where to begin a PPP process for the implementation of their strategic infrastructure investments.

CDIA City Interventions

92 Cities

70 PFS completed

11 PFS ongoing

46 Prioritization exercises

44 PFS linked to finance

7 Billion US$ expected

infrastructure investment value

Pre-Feasibility Study for the Valenzuela Integrated Flood Risk Management

1. City Infrastructure Investment Programming and Prioritization- Flood Control

2. Preparation of the Terms of Reference- Integration of Flood Risk Management and Drainage

3. The Pre-Feasibility Study- Structural Measures- Non Structural Measures

5. Ongoing Initiatives- DPWH- Maynilad

4. Linking the Project to financing- National Government (Flood Management Fund Managed by DPWH)- Urban Climate Change Resilience Trust Fund (ADB-Rockefeller)

Pre-Feasibility Study for the Valenzuela Integrated Flood Risk Management

• Collaboration of CDIA and the Technical Working Group

• Collaboration of CDIA and the Steering Committee

• Collaboration of CDIA and the National Government (DPWH)

• Collaboration of CDIA and Maynilad

• Capacity Building Activities

Pre-Feasibility Study for the Valenzuela Integrated Flood Risk Management

Pre-Feasibility Study for the Davao Sustainable Urban Transport

1. The Mayor’s Political Vision- Planned Davao LRT/MRT

2. The Pre-Feasibility Study- Provision of an Option Analysis- Emphasis on the “Best” Option

3. Ongoing Initiatives- Feasibility Study for the Davao LRT/MRT

Pre-Feasibility Study for the Davao Sustainable Urban Transport

• Openness of the City Mayor

• Kickoff Meeting- Project Phasing

Pre-Feasibility Study for the Davao Sustainable Urban Transport

Pre-Feasibility Study for the General Santos Integrated Economic Development

for Regional Trade

Pre-Feasibility Study for the General Santos Integrated Economic Development

for Regional Trade

1. CIIPP Toolkit

2. Packaging of the Project

3. Next Steps

Pre-Feasibility Study for the General Santos Integrated Economic Development

for Regional Trade

• Collaboration of CDIA and the PPP Center

Pre-Feasibility StudyColombo Wastewater Management, Sri Lanka

• Stakeholder Involvement: • Colombo Municipal Council (CMC): PM-Unit, Drainage Division, and related departments• National Water Supply & Drainage Board (NWSDB)• Urban Development Authority• Ministry of Environment• Sri Lankan Land Reclamation & Dev. Cop.• Citizens• NGOs…

• Restructuring of the Drainage Division

• Prioritization of proposed interventions

Pre-Feasibility StudyColombo Wastewater Management, Sri Lanka

Waste Water

CMC Drainage Division

StormWater

Stakeholder consultations

Work Plan and Methodology

Infrastructure Alternatives

Infrastructure

Options

Infrastructure Alternatives Concept Development

Infrastructure Costs

Sewer Rehabilitation/Upgrading

Sewerage to Unserved Areas

Sewage Treatment

Biosolids Management

Stormwater Cross-Connections

Solid Waste Ingress

Social Impact Pro-poor focus

Social Acceptability and Need

Social Safeguards – Resettlement

and affected communities

Environmental Impact Environmental Standards

Environmental Benefits and Adverse

Impacts

Environmental Safeguards

Financial Viability Total Development Costs

CMC Financial Assessment

Ability and Willingness to Pay

Tariff Structure

PPP potential of development

Institutional Strengthening CMC Drainage Division Structure

Capacity Building for Drainage

Division

Pre-Feasibility Study

Priorities for Infrastructure

Development

Funded

through

Tranches 3

and 4 of

GCWWMIIP

Alternative

funding

- PPP

- Other

Donors

Social and

Environmental

Safeguards

Cities Development Initiative for AsiaInvesting in Asia's urban future

Thank You

Eva Ringhof and Brian Capati, CDIA Philippines De La Salle University, Nov 12, 2014