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Presentation to UN-HABITAT CPRPresentation to UN-HABITAT CPRThe Work of Sub-programme 4The Work of Sub-programme 4

Graham AlabasterOIC Human Settlements Financing DivisionUN-HABITAT

Nairobi, 18 March 2009

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HS Financing DivisionHS Financing Division Human Settlements Financing Division is newHuman Settlements Financing Division is new

• under development as a new division – under development as a new division – coordination and consolidationcoordination and consolidation

Two main branches:Two main branches:• Water, Sanitation and Infrastructure BranchWater, Sanitation and Infrastructure Branch - -

lead for MTSIP Focus Area 4 on Infrastructurelead for MTSIP Focus Area 4 on Infrastructure

• Urban Finance BranchUrban Finance Branch – Policy, SUF, and ERSO - – Policy, SUF, and ERSO - lead for MTSIP Focus Area 5 on Finance lead for MTSIP Focus Area 5 on Finance SystemsSystems

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Historical PerspectiveHistorical Perspective In 1990 water sanitation and infrastructure activities In 1990 water sanitation and infrastructure activities

comprise 4-5 staff members as a “Building Infrastructure comprise 4-5 staff members as a “Building Infrastructure Technology Section” Today a Branch of over 50 staff Technology Section” Today a Branch of over 50 staff operational in over 30 countriesoperational in over 30 countries

Water and Sanitation Trust Fund (WSTF) founded in 2002Water and Sanitation Trust Fund (WSTF) founded in 2002

Current turnover US$ 20 million / annum but leveraging Current turnover US$ 20 million / annum but leveraging much moremuch more

Current strategy 2008 – 2012 aligned with MTSIP Current strategy 2008 – 2012 aligned with MTSIP

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Focus on Core Competence: What is our added value?

Promoting smart partnerships Pre-investment capacity-building we have a unique relationship with Dev. Banks & other partners

Model setting InitiativesFocusing on urban centres of all sizes

Promoting regional and inter-regional cooperationTruly regional programmes taking the opportunity of regional funding windows

Monitoring the sectorGoing to a greater level of detail for targeted delivery

Integrating WATSAN and Human Settlements Planning and ManagementLeading to specific tools not generic approaches

Advocacy and CommunicationWork at all levels in the sector, crossing traditional sectoral boundaries

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Balancing the normative and Balancing the normative and operational activities of the operational activities of the

programmeprogramme

• Regional operational programmes identify Regional operational programmes identify “normative” work “normative” work

• Normative activities build credibility and Normative activities build credibility and lead to new operational programmes lead to new operational programmes

• More recently: strategic model setting More recently: strategic model setting initiatives offer a combination principally initiatives offer a combination principally investment focused with some supportive investment focused with some supportive capacity-buildingcapacity-building

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Current Delivery MechanismsCurrent Delivery Mechanisms

Operational ActivitiesOperational Activities

Regional ProgrammesRegional Programmes Water for African Cities programmeWater for African Cities programme Water for Asian Cities programmeWater for Asian Cities programme Water for Latin American and Caribbean Water for Latin American and Caribbean

CitiesCities

Strategic Initiatives at Regional LevelStrategic Initiatives at Regional Level Lake Victoria Water & Sanitation InitiativeLake Victoria Water & Sanitation Initiative Greater Mekong Water and Sanitation Greater Mekong Water and Sanitation

InitiativeInitiative

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What is the difference between What is the difference between our regional programmes & our regional programmes &

strategic initiatives?strategic initiatives?

• Regional programmes follow the models of Regional programmes follow the models of other lending institutions and donors other lending institutions and donors providing pre-investment capacity-building providing pre-investment capacity-building (mainly software but some hardware through (mainly software but some hardware through piloting)piloting)

• Strategic model setting initiatives develop Strategic model setting initiatives develop new delivery approaches, covering both new delivery approaches, covering both hardware and software, which are designed to hardware and software, which are designed to be supported by other institutions and donorsbe supported by other institutions and donors

• BOTH have the same target groupBOTH have the same target group

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Current Delivery MechanismsCurrent Delivery MechanismsNormative ActivitiesNormative Activities

Global Policy Assessments: State of Water & Sanitation Global Policy Assessments: State of Water & Sanitation

Pro-poor Governance ToolkitPro-poor Governance Toolkit

Rights-based Approach to water and SanitationRights-based Approach to water and Sanitation

Integrated Urban Water Resource Management & Integrated Urban Water Resource Management & environmental Assessmentsenvironmental Assessments

Monitoring Progress with Achievement of MDGMonitoring Progress with Achievement of MDG

Global Water Operator PartnershipsGlobal Water Operator Partnerships

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WSTF Forward Looking Strategy 2008-2012WSTF Forward Looking Strategy 2008-2012

Delivering sustainable Delivering sustainable services for the poorservices for the poor

Ensuring synergy between Ensuring synergy between the built and natural the built and natural environmentenvironment

Monitoring the MDGs and Monitoring the MDGs and beyondbeyond

Integrating Infrastructure Integrating Infrastructure and Housingand Housing

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Lessons learned & support to other MTSIP focus areas (1)

Different models needed for the continuum of urban areas particularly with financing models : grant/loan balance, critical to sustainability

Support for normative work can be achieved on the back of operational projects: Lake Victoria (local level governance, monitoring)

Leveraging must go beyond cosmetic collaboration: Afdb/AsDB reduced project preparation, inclusion of sustainable urbanization concepts in sector projects. The project may be sectoral but the “Board” is cross disclipline. Credibility takes time to build!

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Lessons learned & support to other MTSIP focus areas (2)

Need for a robust communication strategy (including a publications policy) to project the results of our work more effectively, especially to other partners/supporters on the world stage.Our normative work focuses on “the bigger picture”: IYS, Water Operators Partnerships, JMP

Build on our core competence of linking to sustainable urbanization, housing & infrastructure (40%)

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Lessons learned & support to other MTSIP focus areas (3)

Going to scale: brokering investment partners, economic scale-up, business plans and models

Basic infrastructure provision can be used as an entry point for all cross-cutting themes to secure more support:

WSIB/MSB: google support for monitoringWSIB/SUF: slum upgrading Energy/transport in utilities/climate change/water scarcity

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How do we think we need to do better?

Use the expertise on the WSTF to support other focus areas of MTSIP: Understanding urban systems of different sizes

Include more sustainable urbanization components in our basic services projects: climate change is the current “opportunity” land/water governance, local level catchments

Sustainability: need for improved approaches especially environmental/ecology (governance)

Water waste, energy & transport, and its role in the urban economy needs much closer attention e.g.Linking livelihood to basic services: resuse/recycling

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Slum Upgrading Facility (SUF)Slum Upgrading Facility (SUF)

Programme Management at Nairobi HQ and - Programme Management at Nairobi HQ and - 3 Year SUF Pilot Programme promoting - 3 Year SUF Pilot Programme promoting - Pioneer Local Finance Facilities:Pioneer Local Finance Facilities:

• Localizing upgrading/housing finance delivery Localizing upgrading/housing finance delivery mechanisms through SUF mechanisms through SUF Local Finance FacilitiesLocal Finance Facilities – –

these are multi-stakeholder Boards comprising senior these are multi-stakeholder Boards comprising senior level banking representatives, the slum dwellers’ level banking representatives, the slum dwellers’ organisations, professionals, and local government as organisations, professionals, and local government as problem-solving pioneers of local upgrading projectsproblem-solving pioneers of local upgrading projects

• Multiple Pilot Sub-Projects demonstrating processes Multiple Pilot Sub-Projects demonstrating processes and long term nature of finance mechanismsand long term nature of finance mechanisms

Developing the potential for full long term FacilityDeveloping the potential for full long term Facility

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Local Finance Facilities - LFFs

Technical Assistance& Capacity Building Provided by SUF-PTE

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Proposed projects currently in Proposed projects currently in pipelinepipeline

The projects in the 4 pilot countries are at various stages with at least The projects in the 4 pilot countries are at various stages with at least 3 ready for implementation and 1 started ( field testing).3 ready for implementation and 1 started ( field testing).

Indonesia – Kratonan ( started field testing with construction of 11 Indonesia – Kratonan ( started field testing with construction of 11 houses), Solo Ketelan, Setabelan, Tipes (mixed use) and houses), Solo Ketelan, Setabelan, Tipes (mixed use) and TegalpanggungTegalpanggung

Sri Lanka – Wallauwatta, Kilurapura, Kuruniyawatta, Majid Place Sri Lanka – Wallauwatta, Kilurapura, Kuruniyawatta, Majid Place and Siddarthapuraand Siddarthapura

Ghana – Amui Djor, Kojorom, New TakoradiGhana – Amui Djor, Kojorom, New Takoradi Tanzania – Mwisho, Kurasini, BuguruniTanzania – Mwisho, Kurasini, Buguruni

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Direct SUF PMU interventionDirect SUF PMU intervention

Ghana Ghana

1. Grant for Capitalisation of the Ghana Urban Fund for Urban Poor 1. Grant for Capitalisation of the Ghana Urban Fund for Urban Poor to leverage domestic capital and savings to enable Fund advance to leverage domestic capital and savings to enable Fund advance loans to members for slum upgrading activitiesloans to members for slum upgrading activities

2. Matching Grant to Old Fadama for slum upgrading2. Matching Grant to Old Fadama for slum upgrading Sri Lanka Sri Lanka

1. Seed capital grant for construction1. Seed capital grant for construction

2. Grant for the Capitalisation of Moratuwa Urban Poor 2. Grant for the Capitalisation of Moratuwa Urban Poor Development Fund to leverage domestic capital and savings to Development Fund to leverage domestic capital and savings to enable Fund advance loans to members for slum upgrading and enable Fund advance loans to members for slum upgrading and infrastructure developmentinfrastructure development

TanzaniaTanzania

Seed capital grant for constructionSeed capital grant for construction

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Measuring Progress and lessons learned

1. SUF Monitoring and Evaluation Logical Framework + Project Data Sheets to be populated by community with Local Finance

Facilities applications

2. SUF Milestones Report+ proposal on rescheduling in progress

3. Norwegian/Swedish SUF Observation Team+ Concluding visit to be to Tanzania programme, January/February 2009

+ Final Report due end April 2009 to feed into Mid Term Review and Expert Group Meeting October 2009

4. SUF Mid Term Review+ to be undertaken in second quarter 2009 to feed into SUF Lessons Learned EGM October 2009, Nairobi

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ERSO ProgressERSO ProgressExperimental Reimbursable Seeding Operations and other Innovative Financial MechanismsExperimental Reimbursable Seeding Operations and other Innovative Financial Mechanisms to catalyze Investments in Pro-poor Housing, related Infrastructure and Upgrading (ERSO) to catalyze Investments in Pro-poor Housing, related Infrastructure and Upgrading (ERSO)

Key Activities implemented April to October 2008 Follow-up on Expert Workshop held in Stockholm: Identification of

project opportunities based on ideas presented by potential partners Refinement of ERSO Operations Manual Continued Research and Documentation on Innovative Mechanisms

for Low-income Shelter Finance Development of ERSO project briefs and Business Plans Establishment of the ERSO Steering and Monitoring Committee

(SMC) and first formal Meeting held in September 2008

The Way Forward: Activities in Q4 2008 Project selection, development of business plans and preparation of

contractual agreements based on the recommendations of the SMC together with project partners within the current funding context

Continuation of research and knowledge dissemination efforts Further partnership building and fund-raising efforts to develop

further experimental operations