Cities Development Initiative for Asia
Linking Subnationals – Investing in Asia’s Urban Future
Eva Ringhof Urban Development Specialist, CDIA
Metropolitan Solutions Municipal Finance Conference, Berlin, 31 May 2016
CDIA provides assistance to medium-sized Asian cities to bridge the gap between their development plans and the implementation of their infrastructure investments.
Mandate
CDIA supports the identification and development of urban investment projects and links them with potential financiers.
Environmental improvement
Poverty reduction
Good governance
Climate change mitigation/adaptation
Development Impact Areas
CDIA Focus Areas INFRASTRUCTURE INVESTMENT PROJECT CYCLE
City Development Plan/Strategy
Infrastructure Investment
Prioritization
Pre-Feasibility Studies
Feasibility Study
Project Implementation
Operation & Maintenance
Financing Arrangements
Up-stream Down-stream
Linking projects to financing
Suitable finance options? • IFIs, e.g. ADB, KfW, WB • LFIs, e.g. China
Development Bank, city • PSP, e.g. PPP • Commercial borrowing
How to shape the project technically and financially feasible?
What does the city need?
Pre-feasibility Study Sectors
PFS linked to finance per financing stream
As of April 2016
95 Cities supported in 17 Asian countries
49 Prioritization exercises & PFS reports covering 95 projects completed
51 projects linked to finance
5.8 Billion US$ expected infrastructure investment value
CDIA’s contribution to the implementation of SDG 11 - Make cities and human settlements inclusive, safe, resilient and sustainable -
Local authorities will have
to be involved in the
implementation of the
SDGs in order to achieve
65% of the targets.
Source:
CDIA’s contribution to implementing and financing of SDGs by supporting cities and LGs in:
• Supporting the identification of infrastructure investment projects related to SDG 11
• Closing the infrastructure financing gap by mobilizing domestic and international financial resources and public-private partnerships for sustainable urban infrastructure projects
• Closing the capacity gap by supporting organizational learning in and between local governments
CDIA partner cities/PFS Interventions http://www.amcharts.com
Upcoming Ongoing/Completed
Cities with
Country
Approved PFS Interventions
Ongoing PFS
Interventions
Completed PFS Interventions
Project Component
Financed
Amount linked in USD mio.
Bangladesh 2 - 1 1 31.3 Cambodia - 4 1 1 14.0 China - 2 11 5 3883.6 Fiji - - 1 1 15.0 Georgia 2 - - - - India 1 1 7 4 185.1 Indonesia - - 11 7 164.2 Kyrgyzstan - - 1 1 - Lao PDR - - 1 1 34.2 Mongolia 1 - 2 1 98.5 Myanmar - - 1 - - Nepal - - 1 1 32.5 Pakistan - 2 3 3 1,003.7 Philippines 1 - 9 5 190.7 Sri Lanka - - 1 1 128.0 Thailand - - 1 1 - Vietnam - 3 4 2 38.9
17 7 12 56 36 5,807.4
As of April 27 2016
CDIA CASE STUDIES
Climate Change and Storm water Management PFS 2013
• Industrial city in Jiangxi Province of 1.15 mio population
• Cultural heritage, and famous scenery of water bodies
• In 2010, major flooding event of inner city due to increasing CC impacts and poor urban drainage system
• In 2012, the city reached out to CDIA for support in project preparation
Xinyu, China
Xinyu, China
Sources of Financing:
US$ 150mil
Local Gov. Financing
US$ 156mil
+
Total Investment Value: US$ 306 mil
Sound Project Preparation to attract External Finance
• Storm water prevention system to support ecological recovery and environmental improvement:
• 20 meter-wide canal to connect 9 natural reservoirs
• Anti-flood levees and water sluice gates
• Mating drainage system, sewage pipe and treatment system
• CDIA support in linking to finance
• CDIA support in Sharing and Learning
Naga, Philippines
www.English.sina.com
Sources of Financing: Flood Mgt. & Mitigation: US$ 9.2 mil (Funding from Nat’l Gov – DPWH)
Naga River Transport: US$ 0.43 mil (Grant from Nat’l Gov - DILG)
River Walk: US$ 4.85 mil (Funding from Nat’l Gov – DPWH)
• Challenges: deteriorated water quality, lack of adequate drainage system and blocking of existing drains due to careless disposal of garbage, flooding, bad odor from the river
• Pre-Feasibility Study on Urban Renewal, Transport; Water Supply; Flood & Drainage Management Est. Investment Value: US$63.12 million
• Innovation: Enhanced decision making and prioritization process through different tools (i.e. CIIPP, administrative tools from Nat’l Govt.)
Integrated Naga River Revitalization 2012
4. Pedestrian and Rail O/Bridges, Roads and Traffic Management
• 14 Ped. over bridges • 1 Road overbridge • 1 Rail overbridge • Traffic/Bus Signals • 2 Roads
Urban Transport, 2010 - linked to KfW
1. Ferry services and facilities
• 5 Ferry Service routes • 12 New generation vessels • 15 Terminal upgrades
2. Enhanced Bus Services
• 35 Km priority bus lanes • 7 P&R facilities • 26 Bus stop upgrades • Markings, and crossings • Foot over bridges
3. Pedestrian Precincts with supporting Pay & Park facilities
• 5 Ped. Precincts • 16 Off street parking facilities • 8 one way streets • Road signs and marking
US$ 35.5m US$ 17.7m US$ 22.4m US$ 27.7m
1) Reduced air pollutants and improved energy efficiency of public transport
2) Improved access to services and employment for the urban poor
Cochin, India
Funding Options and their Pros & Cons
Solid Waste Management, 2015 – PPP
Funding Source Effective Rate Tenor
Government Mostly grant NA
International (IFI)
ADB/WB/JICA/KfW
5 to 8% 12 to 30 years
Domestic (DFI)
HUDCO/IL&FS/Banks
10.5 to 13% 10 to 15 years
Bond Market 8 to 12% 7 to 12 years
PPP Expected rate
of return high
7 to 25 years
concession
period
Project components
1 MSW Collection System
2 Street Sweepers
3 MSW Transfer System
4 Adampur MSW Treatment & Disposal
5 Bhanpura Remediation & Closure
6 Adampur Closure
Support Programs
I. Community Engagement and Participation
II. Informal Recycling Support
III. Institutional Strengthening
Due Diligence
I. Environmental Due Diligence
II. Rehabilitation and Resettlement
III. Design and Construction Supervision
Bhopal, India
Solid Waste Management, 2015 – PPP
Project Analysis with focus on
Project Structuring – PPP Mode
Bhopal, India
• Estimation of Tipping Fee (Bid Variable)
• Financial Impact on BMC under different Scenarios
• Cost Recovery for BMC (existing O&M recovery is very low; tariff revision)
• EPC Cost – US$ 49 Million
Adapt to the need of the city and its financier!
What? – Infrastructure sector
Where? – Boundaries
How? – Local conditions
Who? – Stakeholder involvement
When? – Time frame
Cities Development Initiative for Asia Investing in Asia's urban future
Eva Ringhof Urban Development Specialist, CDIA
Metropolitan Solutions Municipal Finance Conference, Berlin, 31 May 2016
Thank You
[email protected] www.cdia.asia
