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Cities Development Initiative for Asia Investing in Asia's urban future
Climate Financing for Green Cities
BALAKRISHNAN ELANGOVAN, SENIOR PROGRAMME MANAGER, CDIA- INDIA,
BAQ – 2014, COLOMBO, 20-11-2014
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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.
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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
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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 …
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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.
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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.
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Impact Areas CDIA supports the identification and development of urban investment projects that emphasize one or more of the following impact areas: Urban environmental improvement Urban poverty reduction Climate change mitigation or adaptation Improved governance
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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. Many are especially vulnerable to climate change:
Rise in pollution and sea
levels puts trillions in economic output and
millions of people at risk
Urgent need for efficiency-gains,
reduction in pollution & GHGs,
and integrated planning for adaptation
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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
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Improved living conditions of
poor and vulnerable people lead to
activate local economy,
improve city image for investments,
create competitive cities,
and increase local revenues.
CDIA’s integrated
approaches assist to
target the urban poor,
ensure affordability and accessibility,
promote economic development,
and foster the involvement of
civil society.
Pro-Poor Urban Development
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Financing Asia’s Urban Challenge
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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.
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Alternative financing sources for urban infrastructure projects
Linking to Finance
Capital Markets
Private Institutional
Investors
Multilateral, Bilateral &
Export Credit Agencies
Domestic Financial
Institutions
Asset Leverage
(land)
Private-sector Participation & Joint Ventures
Source: KPMG Analysis, Linking Cities to Finance: Overcoming Bottlenecks to Financing Strategic Urban Infrastructure Investments, 27-28 September 2010 , Shanghai, China
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CDIA Climate Change Focus
Objective: Based on ongoing CDIA
activities and efforts of other
regional partners enable cities –
by offering an integrated support
package – to better formulate and
structure needed investments and
access finance within the
framework of emerging
international and national climate
change architecture
Key topic areas
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CDIA Climate Change Focus
Regional Learning and Knowledge
Generation
Regional Expert Group Meetings
Partnerships with CC Organizations (e.g. Rockefeller Foundation/ACCCRN, UNHABITAT, ICLEI)
Private Sector engagement
Policy Dialogue
Building policy platforms on how cities could better access climate related financing in two or three priority countries (e.g. Bangladesh, India, Indonesia, Philippines, Vietnam)
City-level Support
Further define integrated climate related support offered to cities
Focused climate change related support to cities (e.g. in Bangladesh, China, India, Indonesia)
Capacity-building and training
efforts
“Menu” for cities to better mainstream climate related urban infrastructure investments
Regional cities and climate change training, in close partnership with GIZ and Singapore (MFA, SEI)
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What can CDIA do for your city?
Institutional capacity strengthening for infrastructure investment planning and programming & financing.
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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 Finance The 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.
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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 University The Energy and Resources Institute (TERI) National Institute for Urban Affairs (NIUA) IDFC Foundation INDONESIA Yayasan Inovasi Pemerintahan Daerah (YIPD) Urban and Regional Development Institute (URDI) PT Sarana Multi Infrastruktur (SMI)
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MONGOLIA Urban Development Resource Center (UDRC) NEPAL Town Development Fund (TDF) PAKISTAN Infrastructure Project Development Facility (IPDF) PHILIPPINES Department of Interior and Local Government (DILG) Public-Private Partnership Center (PPP)
SRI LANKA Sevanatha VIETNAM Development Strategy Institute (DSI) Urban Development (UDA)
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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
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44 PFS linked to finance
ADB, 15, 37%
KfW, 2, 5%
LFI, 13, 32%
PPP, 6, 15%
WB, 3, 7%
Commercial borrowing,
1, 2%
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Selected City Interventions
Cochin, India
Integrated Urban Transport Project with focus
on Water Transport
CDIA Support: US$ 370,000
Package Interventions
1. Ferry Services connecting Island
2. Priority Bus Lanes
3. NMT
4. Total package for more than USD 150 Million
Linking to Finance
KFW funding for 80 Millioin Euros in 2014
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India City Interventions
Rajkot, India
CDIA Support: US$ 360,600
Sector Interventions
1. Urban Transport
− Improvements on selected main road corridors
− Central area improvement
− Bottleneck elimination
Investment Value: US$ 15.7 million
Environmental and Climate Change challenge included in the project
Linking to Finance
Internal Funds through State Government and Rajkot Municipal Corporation from 2011-2012
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India City Interventions
Vijayawada, India
Integrated Urban Transport and Slum Upgrading
CDIA Support: US$ 450,000
Sector Interventions
1. Selected Corridor Development within the city Investment Value: US$ 40 Million
2. Non Motorised Corridor Development Investment Value: US$ 10 Million 3. Slum Improvement: US$ 16 Million Environmental and Climate Change challenge included in the project Linking to Finance
Potential Public-Private Partnership and external funding
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India City Interventions
Chennai, India
CDIA Support: US$ 423,000
Sector Interventions
1.Review of City Development Plan – US$ 600 Million
2.Waterways Rehabilitation/riverbank protection - Investment Value: US$ 128.8 million
3.Solid Waste Management
Extension and improvement of SWM System
Investment Value: US$ 131 million
Additional focus on Climate Change intervention as part of the project
Linking to Finance
Potential KfW Funding
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India City Interventions
Pimpri Chinchwad
Water and Sanitation
CDIA Support: US$ 450,000
Sector Interventions
1. Business Plan for water and Saniation Investment Value: US$ 100 million
2. Pre feasibility for 24/7 Water Supply Investment Value: US$ 50 million
3. Support to Instituional reforsm. Awareness and 24/7 pilot Investment Value: US$ 31.0 million Green water initiative through reduction in Non Revenue Water and water Loss in the distribution
Linking to Finance
Internal Funds, JNNURM and KfW
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India City Interventions
Vishakhapatnam, India
Water Supply
CDIA Support: US$ 250,000
Sector Interventions
1. 24/7 water supply Investment Value: US$ 25 Million
2. Revision of the City Development Plan – US$ 400 million Green water initiative through reduction in Non Revenue Water and Improvement in Distribution System Linking to Finance
JNNURM or External funding
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Pakse, Laos
CDIA Support: US$ 439,000
Sector Interventions
1. Drainage, Flood Protection and Sanitation Investment Value: US$ 25.6 million
2. Solid Waste Management Investment Value: US$ 1.8 million
3. Green Infrastructure Investment Value: US$ 6.2 million
Linking to Finance
ADB Pakse Urban Environmental Improvement Project
Selected City Interventions
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Selected City Interventions
Naga, Philippines
Integrated Naga River Revitalization Project
CDIA Support: US$ 321,000
Sector Interventions
1. Urban Renewal (River walk) Investment Value: US$ 5.85 million
2. Wastewater Management, Drainage Investment Value: US$ 41 million
3. Flood Protection/Climate Change Adaptation Investment Value: US$ 12 million
Linking to Finance
Private sector development mixed with preferential borrowing
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Selected City Interventions
Ulaanbaatar, Mongolia
CDIA Support: US$ 196,000
Sector Interventions
Energy efficient retrofitting of pre-cast panel apartment buildings Investment Value: 1st Phase: US$ 40 million Entire Program: US$ 450 million
Linking to Finance
Potential ADB funding
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Cities Development Initiative for Asia Investing in Asia's urban future
Thank You