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ADBs Urban Operations (Implementing the Urban Operational Plan)

Priyanka Sood
Urban Development Specialist Regional & Sustainable Development Department

Asias Urban Challenge


Nation-sized - in population and economic output (1.1 billion more people by 2030,
soon 50% of population; Approximately 75% of GDP)

Infrastructure - already inadequate; unable to keep pace with population growth Environment - large economic base but as much of environmental impact (cities using
85% of energy and causing at least 75% of GHG emissions; becoming especially vulnerable to climate change)

Urban poverty - 70% of dire poverty world over in Asian cities; if nothing changes
urban poor to reach 625 million by 2015

Institutional capacity (sustainability) - for planning, management systems,


governance, coordination across sectors and administrative boundaries falling behind

Resources (sustainability) - funding requirements enormous; unlikely to be met


without mobilizing large amounts of private funds

Need for coherent urban investments and interventions that focus on planning; financial, institutional & environmental sustainability of services; and provide tangible benefits to poor

Lessons from ADB Urban Operations in DMCs


Multiple urban projects in multiple sectors in numerous cities had no transformative impact on urban systems
Policy, planning - almost no long term view of sectorally integrated urban and infrastructure investment planning; unsustainable service delivery models; ad-hoc programs and projects; lack of focus on inclusiveness of urban poor

Governance, financial management - poor intergovernmental co-ordination on responsibilities; asset management, financial management systems lacking/poor; incentives for efficiency lacking
Financing dependence on grants from higher levels of govt. postponing borrowing programs; lack of comprehensive business plans resulting in private sectors perceived high risks of financing urban infrastructure Capacity - Inadequate institutional capacity to handle these issues

Need to address planning, financial sustainability, institutional capacity, governance, private sector participation/development

ADB Urban Response under Strategy 2020

Investments for Green Cities Development

Investments for Inclusive Urban Development

Investments for Competitive Cities Development

Focus of New Urban Portfolio


climate change adaptation and mitigation basic water and wastewater services solid waste management services urban public transportation services pro-poor inclusive development innovative financing

Strongly integrated with interventions to strengthen integrated planning (physical and investment); sub-national/municipal finance; financial and operational management; PPPs; institutional capacity and governance

Urban Operational Plan Linkage to Sector Operations


Inclusive Social Services (education, health)

Social Sector

Urban Transit

Energy

Urban

Transport

Building/Utility Energy Efficiency

Finance

Municipal Finance

Directions of Urban Operational Plan In Sum


Think integration in planning and invest selectively
incentives for such investments

Promote partnership with private sector


project development, investment, capacity building

Focus investment
Secondary Cities / select issues of metros

Innovative Financing / Leverage


Co-financing / guarantees

Sustainability
financial, institutional

Provide govts. the integrated planning context for transport, water, energy infrastructure & services to be more coherently planned, energy efficient, market-oriented, climate resilient and client-focused; broaden the range of financing and delivery systems, especially sub-national modalities

Example - Low Carbon Transport for Green Cities

Example -Strategic Private Sector Partnerships for Urban Poverty Reduction (STEP-UP)
Implemented by the Philippine Business for Social Progress, an NGO supported by the private sector CSR contributions

3 components Strategic partnership building among business, local


government and homeowners associations

Physical development
housing improvement; microenterprise support; upgrading of community infrastructure (roads, drainage, water supply, multipurpose centers, and access to health/ sanitation)

Risk reduction and management issues relating to


natural and artificial disasters.

Sample Activities / Opportunities in Urban Projects


Planning, PFS, project development Developing innovative financing mechanisms
(using incentive finance, credit enhancement to crowd-in private sector finance; efficiently leverage limited govt. financial resources; help develop domestic credit markets for infrastructure)

Building capacity
On the demand side - strengthening sub-sovereign public and private project proponents (planning, investment planning, project development, capacity.) On the supply side strengthening involvement of national governments, domestic and international private sector (policy advisory to create enabling regulatory and legal conditions for private participation; domestic debt market development)

Building and disseminating knowledge; networking Therefore, sample expertise in demand: Urban planners Municipal finance specialists; Public Finance specialists Water, sanitation, solid waste management engineers Institutional specialists (utility operations managers) PPP and project finance specialists Economic and financial analysts Economists

Example - Cities Development Initiative for Asia (CDIA)


Focus areas of intervention in the project development process

Procurement for Various Urban Opportunities

ADB TA

ADB procedures firms for loan projects (PPTAs); individuals for focused tasks (CDTAs, RDTAs, etc.)

CDIA
ADB and GIZ procedures Framework contracts, firms and individuals

2012 Urban Lending Pipeline


No. Country CWUW 1 ARM 2 3 4 AZE GEO Project Name Financing Plan (US$Mn) ADF ADB OCR (A) Loan Grant (A+B+C) (B) (C) 40.00 105.00 30.00 175.00 50.00 70.00 50.00 80.00 300.00 20.00 80.00 41.00 300.00 100.00 300.00 100.00 905.00 936.00 175.90 100.00 100.00 150.00 350.00 175.90 9.92 9.92 1.98 1.98 40.00 105.00 30.00 175.00 50.00 70.00 50.00 80.00 300.00 20.00 80.00 41.00 400.00 300.00 100.00 1,841.00 175.90 100.00 100.00 150.00 525.90 11.90 11.90

5 6 7 8 9
10 11 11

KAZ KGZ PAK UZB

Armenia Water Supply and Sanitation Project - Phase 2 Proposed MFF Solid Waste Management Solid Waste Management Improvement Investment Program - Tranche 1 MFF-WSS Investment Program Tranche 3 MFF- Sustainable Urban Transport Investment Program Tranche 2 MFF- Sustainable Urban Transport Investment Program Tranche 3 Sustainable Urban Transport Investment Program - Tranche 2 Urban Services Improvement Investment Program - Tranche 3 Astana Sustainable Urban Transport Project Issyk-Kul Sustainable Development Project Punjab Cities Improvement Project (Sialkot) MFF-Water Supply and Sanitation Services Investment Program Tranche 4 MFF - Solid Waste Management Investment Program (Facility Concept) Water Supply and Sanitation Phase 2 (Facility) Water Supply and Sanitation Phase 2 - Tranche 1 Subtotal CWUW Urban Transport Development (formerly Sustainable Urban Development) Hubei Huangshi Urban Pollution Control and Environment Management Project Gansu Urban Infrastructure Development and Wetland Protection Project Integrated Development of Key Townships in Central Liaoning Subtotal EASS Koroi-Arai Sanitation Project Subtotal PAUS

EASS 1 MON 2 PRC 3 4 4 PAUS 1 PAL 1

2012 Urban Lending Pipeline (continued)


No. 1 Country Project Name Greater Dhaka Sustainable Urban Transport Project (formerly Integrated City Transport Project) Urban Infrastructure Development (Additional Financing) MFF - North Eastern Region Capital Cities Development Investment Program (Project 3) MFF - North Karnataka Urban Sector Investment Program (Tranche 3) MFF - Jammu and Kashmir Urban Sector Development Investment Program (Tranche 2) MFF - National Capital Region Urban Infrastructure Financing Facility Tranche 2 MFF - Bihar Urban Infrastructure Development Sector Program (Facility Concept) MFF - Bihar Urban Infrastructure Development Sector Program -Tranche 1 MFF - Kolkata Environmental Improvement Project II (Facility Concept) MFF - Kolkata Environment Improvement II (Project 1) Integrated Urban Development Project Water Supply Service Improvement Project Subtotal SAUW Water Supply and Sanitation Sector Program Pakse Urban Environmental Improvement Project PHI REG Water District Development Sector Project Urban Water Supply and Sanitation Project LAO: GMS Corridor Town Development II CAM: GMS Corridor Town Development II LAO: GMS Corridor Town Development II 6 6 32 VIE Supporting Viet Nam Water Sector Project PFR2 Subtotal SEUW TOTAL 210.00 330.00 60.17 60.45 2,531.92 1,280.85 36.17 24.00 50.00 70.00 15.45

Financing Plan (US$Mn) ADF ADB OCR (A) Loan (B) Grant (C) (A+B+C)
45.00 100.00 145.00

SAUW BAN

2 3
4 5 6 7

BHU IND

5.00
35.00 60.00 60.00

5.00 35.00
60.00 60.00 72.00

72.00
200.00 200.00 80.00 250.00 50.00 80.00 250.00 50.00 12.00 56.80 42.00 12.00 1,055.80 21.00 24.00 21.00 24.00 50.00 70.00 15.45 36.17 24.00 210.00 450.62

8 9 10 10 1 2 3 4 5 NEP SRI SEUW LAO

30.00 937.00

44.80 12.00 106.80

72.45 3,885.22

2012 ADB Urban TA Pipeline


No. Type Country Urban Transport (Preparing the MFF) Wholesale Markets/Logistics Project Almaty Light Rail Project Issyk-Kul Sustainable Infrastructure Project (Additional Financing) Khyber Pakhtunkhw a Water Supply and Sanitation Project Islamabad Bus Rapid Transport Water Supply and Sanitation Investment Support Project Subtotal, CWUW Strategic Social Sector Development for Inclusive Grow th Strengthening Technical and Vocational Education and Training for Development of Priority Sectors Analysis of Pollution and Rehabilitation Plan for Non-registered Solid Waste Management Sites Vocational and Higher Education Guangxi Nanning Vocational Education Development Jilin Urban Services Improvement Xinjiang Akesu Integrated Urban Development and Environment Hubei Huanggang Integrated Environment Rehabilitation Subtotal, EASS Product Nam e Am ount 800.00 800.00 800.00 800.00 800.00 225.00 800.00 5,025.00 500.00 500.00 500.00 1,000.00 750.00 700.00 625.00 750.00 5,325.00 CWUW 1 PPTA AZE 2 PPTA GEO 3 PPTA KAZ 4 PPTA KGZ 5 PPTA PAK 6 PPTA PAK 7 PPTA UZB 7 EASS 1 PATA MON 2 PATA PRC 3 PATA PRC 4 PPTA MON 5 PPTA PRC 6 PPTA PRC 7 PPTA PRC 8 PPTA PRC 8

2012 ADB Urban TA Pipeline


No. PAUS 1 2 3 4 5 6 7 8 9 10 11 12 13 13 SAUW 1 2 3 4 5 5 SEUW 1 2 3 4 5 5 38 CDTA PPTA PPTA PPTA PPTA CAM CAM INO PHI VIE Capacity Development f or Urban Development Rural Water Supply and Sanitation Project III IKK Water Supply Project Solid Waste Management Sector Project Coastal Cities Urban Environment and Climage Change Subtotal, SEUW GRAND TOTAL 700.00 800.00 1,000.00 1,000.00 1,500.00 5,000.00 30,225.00 CDTA CDTA PPTA PPTA PPTA BAN SRI BAN IND SRI Capacity Building f or Non-Revenue Water Reduction Preparing Coastal Tow ns Inf rastructure Improvement Preparing the Second National Capital Region Planning Board Project Ekala Ja Ella Urban and Industrial Sew erage Project Subtotal, SAUW 400.00 800.00 700.00 300.00 3,200.00 CDTA CDTA CDTA CDTA CDTA CDTA CDTA CDTA PATA PPTA PPTA PPTA PPTA PAL PNG REG REG REG REG REG RMI REG COO REG TIM VAN Water Supply and Sanitation Utility Strengthening Project Supporting Public Financial Management, Phase 2 Enhancing ADB's Engagement in Fragile and Conf lict Af f ected Situations Results-Based Project Management f or Pacif ic Developing Member Countries, Phase 2 Support on a Skills Strategy and Labour Market Analysis f or the Pacif ic ICT f or Better Social Services in Solomon Islands and Tonga Strengthening Economic Policy and Planning: Implementation of the National Development Plan 2012-2015 Quality Primary Education in the Pacif ic Rarotonga Water Supply Project Pacif ic Regional ICT Connectivity Project, Phase 3 (Palau and Federated States of Micronesia) Preparing the District Capital Water Supply Project Urban Development Project, Phase 2, Greater Port Vila and Luganville Subtotal, PAUS 600.00 1,000.00 800.00 1,000.00 1,000.00 1,500.00 225.00 1,350.00 350.00 800.00 550.00 1,300.00 11,675.00 Type Country Product Nam e Am ount

Implementing Demand Driven Skills Training in the Republic of the Marshall Islands and Federated States of 1,200.00 Micronesia

Transit-Oriented Development and Improved Traf f ic Management along the Greater Dhaka Sustainable Urban Transport Co 1,000.00

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