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1. T HE C ITIES D EVELOPMENT
I NITIATIVE F OR A SIA
ENHANCING THE QUALITY OF
URBAN INFRASTRUCTURE
INVESTMENTS

2. An Urban Asia by 2025
 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
 Asia’s urban areas are driving
economic growth
 But many of its cities are not
up to the task
 Massive investment is
needed to ensure more
liveable cities
Source: World Urbanization Prospects, the 2009 Revision

3. Asia’s Urban Challenge
Over the next 20 years cities in Asia must be ready to provide
infrastructure and services to an expected 1 billion additional
people if economic growth and competitiveness are to progress.
• Asia’s economic growth is:
− Predominantly urban based
− Severely constrained by infrastructure deficiencies
• 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

4. More Competitive Cities
 Ability of a city to  Competitive cities need:
o Good quality infrastructure,
increase household
incomes and productivity logistics, communications and
public services
is a combination of: o Innovation and entrepreneurship
o Capacity for wealth o Natural resources
creation o Location relative to markets
o Business friendly o Social capital
environment o Good quality of life
o Strength of research and
development  They are business friendly and
able to raise finance to make it
all happen

5. More inclusive cities
 City regions serve as
magnets for people, enter-
prise and culture, but with
urbanization, poverty
also urbanizes
 The Asia-Pacific region
remains host to over half of
the worlds slum population:
in 2010 this amounted to
an estimated 505.5
million people
Source: Ravallion 2007
 The urban poor must be
integrated in inclusive
urban development

6. Greener Cities
 Cities generate waste that
contributes to land, air and water
pollution
 Climate change poses a massive
threat to cities – adaptation and
mitigation strategies must both
be worked on at local level
 Major improvements are
possible in the areas of energy
utilisation, urban transport and
land use, and in solid waste
disposal
Source: World Urbanization Prospects, the 2009 Revision

7. CDIA Rationale
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+ medium-sized cities in Asia’s
developing countries with populations of 250,000 to 5,000,000
 Difficult to use IFIs standard feasibility study instruments
(PPTAs) for these purposes – need for an additional instrument

8. CDIA helping find solutions
 Mandate: The CDIA is assisting medium sized Asian cities to
bridge the gap between their development plans and financing of
their infrastructure investments, with emphasis on:
- Urban environmental improvement
- Urban poverty reduction
- Climate change mitigation or adaptation
- Improved governance
 The CDIA partnership established in 2007 jointly managed by
ADB and GIZ and financially supported by ADB, BMZ, Sida, Gov.
of Austria and the Shanghai Municipal Government.
 CDIA has a core budget of $ 37.9 million (2007-2012) and non-
core resources (including those held by KfW, ex-InWEnt,
Singapore and SMG) of $ 20.1 million.

9. CDIA Scope and Approach

10. CDIA Focus Areas
Infrastructure Investment Project Cycle
DIRECT SUPPORT
UP-STREAM DOWN-STREAM
City Development Infrastructure Pre-Feasibility Feasibility
Plan/Strategy Investment Studies/Project Study
Programming structuring
CDIA Focus Areas Financing
Arrangements
Project
CAPACITY DEVELOPMENT
Implementation
Operation &
Maintenance

11. Implementation Status (February 2012)
Current CDIA support to cities:
 Approved support applications for 40 cities in 13 countries
including 63 Pre-Feasibility Studies (PFS)
 33 PFS, 2 urban infrastructure investment programs and three
city-level capacity-building assignments completed in 21 cities
 On-going activities in another 19 cities
 Estimated infrastructure investment value of projects under
preparation about $ 5 billion - CDIA inputs represents approx.
0.25% of this
 Potential sources of investment financing identified in all
approved cases, firmed up for 12 PFS in 9 cities

12. CDIA Interventions by Sector
(PFS)
Solid waste management
Flood management
Efficient transport systems

13. Selected City Interventions
“promoting effective
public transport”
Guiyang, CHINA
CDIA: US$ 521,800
Rehabilitation of Water Bodies
Investment Value: US$ 101 million
River-based urban infrastructure development,
CBD Urban Public Transport (LRT)
rehabilitation and bus terminal
Investment Value: US$ 2.3 billion
Banda Aceh, INDONESIA

14. Selected City Interventions
“innovate public-private
partnership for CDB
revitalization”
Banda Aceh, INDONESIA
CDIA: US$ 327,500
River-based urban infrastructure
development and CBD revitalization
Investment Value: US$ 22.6 million

15. Selected City Interventions
“promote public-private
partnerships”
Metro Cebu, PHILIPPINES
CDIA: US$ 459,000
South Road Project Utilities,
Urban public transport
Investment Value: US$ 500 million

16. Selected City Interventions
“promote cultural heritage
in urban development”
Naga, PHILIPPINES
CDIA: US$ 321,000
Naga River Revitalization
Investment Value: US$ 50 million

17. Selected City Interventions
“integrated transport “
Cochin, INDIA
CDIA: US$ 370,000
Integrated Urban Transport
Investment Value: US$ 122 million

18. Selected City Interventions
“working with industry
towards a greener city”
Da Nang, VIETNAM
CDIA: US$ 330,000
Waste Water Management and
Sewerage
Investment Value: US$ 50 million

19. Capacity Development
Three-layered Capacity
Development Strategy
Strengthening capacity at city
level as part of direct
interventions
Indirect interventions through
National Partner
Organizations (NPO)
Sustain CDIA efforts with
Manila core team and nodal
offices (to be) established in
Shanghai, China; Delhi, India
and Singapore

20. Capacity Development
Modalities for Capacity Development
In framework of City Interventions:
 Learning by doing, hand-holding;
 Institutional analysis of CDIA areas of concern;
 Flagging capacity constraints considered
crucial for down-stream impact;
 Identification of possible approaches
to address these constraints.
Other modes of capacity development:
 Training on Project Programming, PFS;
 Peer-to-Peer Learning;
 YAP Program
 National and regional knowledge events;
 Partner dialogues, sensitization of CDIA approach.

21. National Partner Organizations
 Identification of 19 NPOs in 9 countries
 Ongoing discussions to agree on common work programs
– China
– India
– Indonesia
– Nepal
– Pakistan
– Philippines
– Sri Lanka
– Thailand
– Vietnam

22. Capacity Development
CDIA process tools and guidelines
City infrastructure PPP in urban
Pre-Feasibility investment planning infrastructure
Study guidelines and programming development
toolkit guidelines

23. Discussion Points
 How to bridge the annual US $ 60 million (60% of
requirements) infrastructure investment gap in Asia?
 Better project formulation needed
 Arrangements for private sector participation need to be
dramatically up-scaled
 Capacities for local urban infrastructure investment
planning and programming and project preparation need
to be sustainably strengthened
 Existing regional institutional arrangements not
equipped to deal with this – need for a catalyst institution
supported by all those with a vested interest

24. Cities Development Initiative for Asia
Suites 202-203, Hanston Building
Emerald Avenue, Ortigas Center, Pasig City 1600
Metro Manila, Philippines
www.cdia.asia