Cdia congres paper in jakarta 2012 by jorris van eten

Financing Schemes for Strategic Urban Infrastructure Investments: Why some cities succeed? succeed?

Cities Development Initiative for Asia in collaboration with:

Urban Asia

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

Source: World Urbanization Prospects, the 2009 Revision

Asia’s Urban Challenge

Asia’s economic growth is predominantly urban based

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

Bridging the urban infrastructure investment planning and programming gap 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

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Particular issue for the 1,400+ mediummedium-sized cities in Asia’s developing countries with populations of 250,000 to 5,000,000 Difficult to use standard feasibility study instruments for these purposes, need for additional instruments Cities Development Initiative for Asia

Bridging the urban infrastructure investment planning and programming gap

Infrastructure Investment Project Cycle UpUp-stream

City Development Plan/Strategy

DownDown-stream

Infrastructure Investment Prioritization

PrePre-Feasibility Studies

Linking projects to financing

CDIA Focus Areas

Feasibility Study Financing Arrangements Project Implementation Operation & Maintenance

Capacity limitations to bridge the Planning – Financing Gap Local Government Capacity • Institutional: Poor regulatory environments, incomplete decentralization • Organizational: out-dated organizational structures, interdepartmental coordination challenges, low pay • Human resources: Substantial mismatches of skills Result: Result Many local governments are unable to plan and implement strategic urban infrastructure investments

But…why do some cities succeed in financing their urban infrastructure investments?

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Linking Cities to Finance, examples from Indonesia – Reslian Pardede YIPD

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Opportunities for Public Private Partnerships for Urban Infrastructure Investments – Darwin Djajawinata PT SMi

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Seeking financing from the private sector for urban infrastructure provision – William Young

Programme

Introductory Presentations

Working Groups key questions

Panel discussion

Discussion Points •

Why do certain cities succeed in attracting investments for urban infrastructure investments and why others don’t?

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Given the importance of Asian cities to the global and national economies, why aren’t governments allocating sufficient resources to their urban areas?

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How can we ensure better projects (both in terms of quality as well as “investability”) to improve our cities?