Asian URBAN

Challenges

Economy Environment

Why creating livable cities is IMPERATIVE

Urban Poverty and Inequality

Urban Infrastructure Investment Needs

How is ADB responding to the urban challenge in Asia?

ADB’s Urban Sector Support

• Urban lending

– Total urban lending is around $20.0 billion

– Urban lending (2010-2013): $6.6 billion

• Limited grant resources for technical assistance and project preparation

• ADB needs partner to leverage its money

ADB‘s Urban Operational Plan

Integrated Urban Development for ...

Inclusive Cities Competitive CitiesGreen Cities

Disaster Risk ManagementDisaster Risk Management

Natural resource efficiency

Natural resource efficiency

Climate resilienceClimate

resilience

• Urban design, Planning, construction standards

• Technology improvements

• Coping mechanisms

• Urban watershed based planning

• Solid waste • WS, WW, Storm-

water, drainage

• Increased protection of communities

• Public space mgmt• Urban mobility,

urban renewal

River restoration community protection Melaka , Mal

Urban renewal, Atlanta USA Urban Watershed based planning

Environment

Financial InnovationFinancial

InnovationRevenue

GenerationRevenue

Generation

Urban Service

Efficiency

Urban Service

Efficiency

• Tariffs• Asset Management• Low-carbon

Technology• O&M

• Entrepreneurships• Skills / TVET• Jobs• SME Development• Land & Asset value

• Public Private Partnership

• Credit worthiness• Municipal bonds• SPVs• Infrastructure funds

Retrofitting public buildings, MelakaTonle Sap Water and Sanitation, Cambodia

Weaving industry, Myanmar

Economy

ResilienceResilienceAffordabilityAffordabilityAccessAccess

• Connectivity to services

• Provision of municipal services

• Cross-sector optimization of benefits

• Willingness to pay• Subsidies & Tariffs• Taxes• Community

ownership

• Community level preparedness

• Coping mechanisms

• Urban renewal• Livelihoods

Riverboat community, Mandalay, Myanmar

Monitoring water quality, Viet Nam Neighborhood Upgrading and Shelter Project (NUSP) indonesia

Equity

GrEEEn City Action Plans

–Vision–Plan –Investment Programme–Performance indicators–institutions–Financing–Citizen’s feedback

Urban Management Partnerships (UMP)

– ADB WOP Program

– Fostering productive partnerships

– Peer-to-Peer learning

– Institutional Strengthening

– Improving Competencies

URBAN & ENVIRONMENT PLANNING

NATURAL RESOURCES & ENERGY EFFICIENCY

PUBLIC SPACE MANAGEMENT

CLIMATE and DISASTER RESILIENT INFRASTRUCTURE

URBAN DESIGN

MOBILITY

CITY FOR ALL – IMPROVED QUALITY OF LIFE

Image Source: CTS Mexico

SNAPSHOT: GREEEN CITY ACTION PLAN

GCAP’s in Progress

• Melaka, Malaysia - completed

• Mandalay, Myanmar - completed

• Hue and Vinh Yen, Vietnam

• Batam, Kendari, Malang and Medan , Indonesia

• Hat Yai and Songkhla, Thailand

What specific urban initiatives does ADB have?

Urban Financing Partnership Facility

UFPF

TA GrantsTA Grants

GuaranteesGuarantees

Investment GrantsInvestment Grants Investment GrantsInvestment Grants

TA GrantsTA Grants

Urban Environmental

Infrastructure Fund

Urban Environmental

Infrastructure Fund

Urban Climate Change

Resilience Trust Fund

Urban Climate Change

Resilience Trust Fund

$21 m

$70 m

$150 m

Demand driven assistance for medium-sized cities

Cities Development Initiative for Asia

CDIA: Scope and approach

Asia’s Water and Sanitation Challenge

Health issue

Environmental issue

Water Availability vs. Water Quality(Below 1700 m3/year per capita is water stressed area)

Freshwater sources are getting increasingly

polluted

Economic issue

Country

Total Impact

(US$, per year)

Impact as % of

GDP

Bangladesh 4.2 B 6.3

India 53.8 B 6.4

Pakistan 5.7 B 3.9

Cambodia 448 M 7.2

Indonesia 6.34 B 2.3

Lao PDR 193 M 5.6

Philippines 1.4 B 1.3

Viet Nam 780 M 1.3

• $71 billion investments

needed to deliver

improved sanitation

Source: Water and Sanitation Program. Economics of Sanitation Initiative.

Social issue

Water and sanitation challenges of the slums

How is ADB responding to the water and sanitation challenge in Asia?

Background

Strategy 2020

Seven-point Water Agenda

Water Operational Plan

Water Operational Plan, 2011-2020

Improve water use efficiencies

Expand wastewater management and reuse, including sanitation

Embed integrated water resources management (IWRM)

Expand knowledge and training

Enhance partnerships with the private sector

Water Financing

Performance Areas Target

ADB’s water (and sanitation)

investments

$2.0 - $2.5 billion annually 2011-2020

Share of sanitation in total

water lending

To increase from 14% to 25% by 2020

Water Financing Partnership Facility

co-financing from development partners to support the WFP

20% allocated to sanitation

Water Financing Partnership Facility

co-financing from development partners to support the WFP

20% allocated to sanitation

Water Financing Program

Sanitation

Trust Fund

Water supply: Non-revenue water reduction

ADB support:

Project design in lending programs

Capacity development and knowledge management

Country assessment of NRW situation

Water Operators Partnerships Program (WOPS)

Networking of utilities

Promoting Innovations in Wastewater Management in Asia and Pacific

Knowledge Drive

Technology Drive

Financing and Incentives Drive

Awareness and Advocacy Drive

Sanitation website and knowledge products

www.wastewaterinfo.asia

From Toilets to Rivers: Experiences, New Opportunities, and Innovative Solutions

Wastewater Management Expert System (WaMEX)

Project Briefs and Case studies

Policy Notes

Technology datasheets

Videos

Water Operators Partnerships

Facilitates twinning partnerships between weak and strong

utilities

Objectives for recipient: Adopt best practices of the mentor.

Status:

Phase 1 (2007 - 2011): 25

completed

Phase 2 (2011 - 2015): 18 on-going

Sustainable Transport

Initiative

ADB’s transport transformation

2000 - 2009 2010 - 2013 2014 - 2016 2020

Urban

Air

Water

Railway

Road

2%12%

30%17%

25%

57%

Urban

Railway

Road

Percentage of transport sector investment

Historical

16%

10%21%

Pipeline Target

2013 in numbers

24 transport sector

projects approved

Projects represented a

total of $3.27 billion in

ADB investment

Urban transport (2013-2016)Georgia “Sustainable Urban Transport

Investment Program II” $73 million

PRC “Hubei-Yichang Sustainable Urban

Transport Project” $150 million

India “Jaipur Metro Rail Line” $176 million

Lao PDR “Vientiane Sustainable Urban

Transport Project” $100 million

Azerbaijan “Baku Urban Transport

Investment Program” $300 million

PRC “Jiangxi Ji’an Sustainable Urban

Transport Project” $120 million

Viet Nam “Ha Noi Metro Rail System Project

(Line 3 station)” $120 million

Viet Nam “Ho Chi Minh City Metro Line 5”

$270 million

New PrioritiesKey areas for catalytic

demonstrations at ADB:

Road safety

Disability access

Climate resiliency

Green freight

Clean fuels

Smart Growth

Zoning regulations

Internet & Communication

Technologies (ICT)

Transit-Oriented Development

Public transport

Non-motorized transport

Transportation Demand

Management (TDM)

Shift to rail freight

Alternative fuels

Fuel efficiency standards

Vehicle maintenance

Vehicle testing

Avoid unnecessary vehicle

kilometers

Shift to the lowest-emitting

modes

Improve vehicle/fuel

technology towards cleaner

and more efficient options

Strategy for low-carbon mobility

ADB Pipeline2014-16

Country TOTAL Projects

URBAN

TOTAL Projects

WATER

TOTAL TAs

URBAN

TOTAL TAs

WATER

EAST ASIA

People’s Republic of

China

5 26 2 9

Mongolia 2 3 2

CENTRAL AND WEST

ASIA

Afghanistan 1 3

Armenia 1

Azerbaijan 1 1

Georgia 2 2

Kazakhstan

Kyrgyz Republic 1 2 1

Pakistan 1 8 3

Tajikistan 1 1

Uzbekistan 1 3 2

Country TOTAL Projects

URBAN

TOTAL Projects

WATER

TOTAL TAs

URBAN

TOTAL TAs

WATER

SOUTH ASIA

Bangladesh 2 6 3 4

Bhutan 1 2 2 6

India 12 12 1 15

Nepal 3 7 2 5

Sri Lanka 3 4 3 6

SOUTHEAST ASIA

Cambodia 3 7 1 6

Indonesia 2 10 1 4

Lao PDR 1 4 1 1

Myanmar 1 6 1 3

ADB Pipeline2014-16

Country TOTAL

Projects

URBAN

TOTAL

Projects

WATER

TOTAL TAs

URBAN

TOTAL TAs

WATER

Philippines 2 3 3 4

Thailand

Viet Nam 3 9 3

PACIFIC ISLANDS

Fiji 1

Federated States of

Micronesia

2

Kiribati 1

Republic of Marshall

Islands

2

Palau

Papua New Guinea

Solomon Islands 1

Timor-Leste 1 3 1 1

Vanuatu 2 1 1

ADB Pipeline 2014-16