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
? 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? •
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?