Smart Cities Financing

SMART EUROCITIES:
FUNDING AND FINANCING
EU LIGHTHOUSE SMART CITIES PROJECTS
HTTP://WWW.SLIDESHARE.NET/ASHABOOK/URBAN-EUROPE
SMART POLIS MUNICIPAL PLATFORM IS TO COLLECT DATA FROM SMART DEVICES AND SENSORS EMBEDDED IN ITS STREETS AND ROADWAYS, POWER AND WATER GRIDS, BUILDINGS AND
OTHER CITY ASSETS, SHARING DATA VIA SMART COMMUNICATIONS NETWORKS, WIRED, WIRELESS AND MOBILE, USING SMART SOFTWARE FOR DELIVERING INTELLIGENT INFORMATION
AND SERVICES: ONLINE TAXES AND PERMITS, UTILITY BILLS, PAYMENTS, GIS DATA ON ASSETS AND UTILITIES (UNDERGROUND CABLES, PIPES, WATER MAINS), TRAFFIC MAPS, CRIME
REPORTS, EMERGENCY WARNINGS, CULTURAL EVENTS, ETC.
HTTP://WWW.SLIDESHARE.NET/ASHABOOK/SUSTAINABLE-CITY
EU, CYPRUS
15 JUNE 2014
SMART CITIES GLOBAL INITIATIVE IN
EUROPE
EUROPEAN INNOVATION PARTNERSHIP ON SMART CITIES AND COMMUNITIES has completed its invitation for commitments for
Building Smart Green Cities and Intelligent Communities, the places of growth, intelligence and innovation, high-quality jobs and sustainable development.
The “Smart Cities Global Initiative” in Europe aims to transform committed Eurocities into intelligent green urban areas:
environmentally sustainable, inter-connected, instrumented, innovative, and integrated, regionally and globally attractive for businesses, citizens, visitors
and investors.
SMART Eurocities are to be managed by the urban “brains:, intelligent city cloud platforms, managing communal resources, assets, processes and
systems: Urban Land and Environment, Roads and Transportation, Energy networks and Utilities, ICT networks and fiber telecom infrastructure, Public and
residential buildings, Natural Resources, Water and Waste management, Social infrastructure, Health and safety, Education and culture, Public
administration and services, Communities and Businesses.
Being in line with the EU Strategy 2020, the SMART Eurocities Projects are to utilize the EU Multiannual Financial Framework 2014-2020, 7-Years
Planning, Strategies, Policies and Regulations, Funds, Programs and Projects, all innovative funding opportunities, schemes, and initiatives, as well as
local government incentives for smart urban growth and sustainable redevelopment. Financing could follow the Public-Private-Citizen Partnership business
models, and be shared by the private firms, investors and municipal government. http://eu-smartcities.eu/content/show-world-you-are-smart-city

EUROPEAN COMMISSION’S SMART CITIES AND COMMUNITIES INITIATIVE:
NEW SMART CITY AGENDA FOR EUROCITIES
 Too much of the smart city agenda so far has been led by producers; competing corporations
 offering their own technology to cities as an ostensibly comprehensive solution to every urban problem.
 Solutions must work within the complex urban environment of integrated planning, policy-making and
delivery, taking advantage of the opportunities for connectedness and systems integration.
 An integrated approach addressing social, economic and environmental issues together will
 remain important in this respect.
 It is vital for future take-up of technologies that we can demonstrate the benefits to citizens,
 such as the potential to improve quality of life, foster social innovation and connect and empower citizens.
 City governments must have a central role in the initiative’s strategy and projects.
 City authorities are not simply facilitators for or customers of industry; rather they should be
 acknowledged as leaders and innovators in their own right.
 “EUROCITIES Statement on Smart Cities and Communities Communication”.
 Smart Cities Global Initiative in Europe is meeting the above concerns, thus enriching the EC’s
Smart Cities Initiative:
 http://eu-smartcities.eu/content/show-world-you-are-smart-city
SMART EUROCITIES
Azamat Abdoullaev 2014

SMART ECO CITIES AND REGIONS:
STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE GROWTH
FUTURE CITY GROWTH STRATEGY
EU FUNDING 2014-2020: THEMATIC OBJECTIVES: KEY POLICY
OBJECTIVES, FUNDING PRIORITIES AND EX ANTE
CONDITIONALITIES
I. Smart Growth: developing a communal,
urban and regional economy based on
knowledge and innovation (INNOVATION;
EDUCATION; DIGITAL SOCIETY).
II. Sustainable Growth: promoting a more
resource efficient, greener and more
competitive district and city (CLIMATE,
ENERGY AND MOBILITY;
COMPETITIVENESS).
III. Inclusive Growth: fostering a high-
employment communal, urban and regional
economy delivering social and territorial
cohesion (EMPLOYMENT AND SKILLS;
FIGHTING POVERTY).
IV. http://www.slideshare.net/ashabook/urban-europe
 1. RESEARCH, TECHNOLOGICAL DEVELOPMENT AND
INNOVATION (Digital City, RIS3 Strategies)
 2. INFORMATION AND COMMUNICATION TECHNOLOGIES
(Digital City, RIS3 Strategies)
 3. COMPETITIVENESS OF SMES, THE AGRICULTURAL SECTOR
(FOR THE EAFRD) AND THE FISHERIES AND AQUACULTURE
SECTOR (FOR THE EMFF, Social City)
 4. A LOW-CARBON ECONOMY IN ALL SECTORS (Eco City)
 5. CLIMATE CHANGE ADAPTATION AND RISK PREVENTION AND
MANAGEMENT (Eco City
 6. PROTECTING THE ENVIRONMENT AND PROMOTING
RESOURCE EFFICIENCY (Eco City)
 7. SUSTAINABLE TRANSPORT AND KEY NETWORK
INFRASTRUCTURES (Eco City)
 8. EMPLOYMENT AND LABOUR MOBILITY (Social City)
 9. SOCIAL INCLUSION AND COMBATING POVERTY (Social City)
 10. IEDUCATION, SKILLS AND LIFELONG LEARNING (Social City)
 11. INSTITUTIONAL CAPACITY AND ENSURING AN EFFICIENT
PUBLIC ADMINISTRATION (Social City)
 To Reach the Overall Goals of the EU 2020 Strategy for Smart,
Sustainable and Inclusive Growth
SMART EUROCITIES

FUNDING FOR EU SUSTAINABLE CITIES:
ECO POLIS FINANCING
 Smart Cities and Communities European Innovation
Partnership
 (ESIF) European Structural and Investment Funds 2014-2020
 Horizon 2020
 LIFE+
 URBACT
 INTERREG EUROPE
 EU Cities Adapt
 (EIB) European Investment Bank (Investment Loans, financial instruments to eligible cities at favorable
terms, in the form of reduced interest rates and potentially reduced collateral requirements, extended loan maturities and grace periods
 (EIF) European Investment Fund (Investment Loans; financial instruments to eligible cities at favorable
terms, in the form of reduced interest rates and potentially reduced collateral requirements, extended loan maturities and grace periods)
SMART EUROCITIES

EIB-EIP SMART FUNDING SCHEME:
PROMOTERS AND BENEFICIARIES
 “Smart Cities & Sustainable Development” Program in Europe
 Promoter – Financial Intermediary
 European Commission & European Investment Bank
 Intermediary Banks of Smart Members States
 High-Level Group (EIP on Smart Cities and Communities)
 Performer
 EIP on Smart Cities and Communities (Action Clusters)
 Consultant: EIS Encyclopedic Intelligent Systems, “Smart City Global Initiative” Promoter
 Beneficiaries
 European Cities and Communities committed as Founding Members of EIP on Smart Cities and Communities
 Location: Europe
 Description
 The Program is aimed to secure the EU’s 2020 objectives by developing/redeveloping smart, sustainable and inclusive cities
and communities in Europe.
 It involves the financing through a Framework Loan of large municipal investments around the concept of pan-European "smart
cities & sustainable development", and specifically in the domains of sustainable urban regeneration, ICT, renewable energy,
energy efficiency, transportation and mobility, to be carried out by local authorities, utilities, smart SMEs, and other founding
members of the EIP on Smart Cities and Communities providing services to authorities over the period 2014-2017 for a total
investment amount in excess of EUR 10 bn.
 http://eu-smartcities.eu/blog/eib-eip-smart-cities-financing
SMART EUROCITIES

EIB-EIP SMART FUNDING SCHEME:
OBJECTIVES AND BENEFITS
 Objectives
 75% of Europeans spend their lives in towns and cities, with 85% of GDP created in urban areas, 80% of all energy consumption and 75%
GHG emissions, while facing increasing economic, social and environmental challenges.
 The Program supports an innovative integrated urban development approach by the committed European cities and communities of the
concept of "smart cities & sustainable development", underpinning large investments carried out mainly at city/regional level with the
common purpose of improving environmental sustainability, urban and natural environment, ICT, mobility, energy efficiency, urban
economy and social cohesion.
 Promoting “Smart City Global Initiative” in Europe, the Program prioritizes holistic policies and strategies, comprehensive planning and
management, and urban intelligent governance platform, integrating infrastructure assets and processes across Energy, ICT and
Transport, to keep a global leadership in the sustainable development of cities and communities.
 Sector(s)
 Urban development; Regional Development; Innovation; Environmental Sustainability; Energy; SMEs
 Proposed EIB finance (Approximate amount)
 EUR 5 billion
 Total cost (Approximate amount)
 EUR 10 billion
 Benefits
 Developed through collaboration between the European Investment Bank (EIB) and the EIP on Smart Cities and Communities, the "Smart
Cities & Sustainable Development" innovative investment program is aimed at assisting and providing financial support to urban and rural
communities committed to the EIP’s Strategic and Operational Implementation Planning, with its focus areas and priority actions in
framework policies and regulations, integrated urban planning and management, citizen focus, integrated intelligent infrastructures
across Energy, ICT and Transport, urban mobility, sustainable districts and built environment.
 Under this program, the public authorities, committed to integrated smart urban policies, are to benefit from preferential rate loans for the
implementation of the "Smart Cities" projects up to a total of EUR 10bn half of which from the EIB and the other half from the EC and local
intermediary banks, which major cities committed as founding partners to the Smart Cities EIP.
SMART EUROCITIES

EIB’S SMART CITIES COMMITMENT
 The EIB, together with Belfius Bank, is launching the "Smart Cities and Sustainable
Development” Program in Belgium, EUR 400m scheme, thus smartly committing to one
Member State.
 Supporting the pan-European “Smart Cities & Sustainable Development” Program, the EIB is to
commit to the smart urban development investment policy in all Europe. The pan-European
smart city budget could start from EUR 10bn Europe, with additional finances coming from the
disproportionately largely funded and low-efficient ERC programs.
 Still, EUR 10bn EIB-EIP Scheme is relatively modest considering the smart city market
projections to exceed $ 1 trillion by 2016 and China’s future “smart cities” allocations of 2
trillion yuan ($322 billion) for more than 600 cities nationwide.
 Again, in Russia, the greenfield intelligent city of Skolkovo, occupying about 360 hectares, is to
cost about $ 16 bn, but risking to fail for lack of innovation city strategic planning and urban
intelligence platform.
 Considering Belgian smart cities budget of 0.4bn, the Big Europe smart cities (Germany, UK,
France, Italy, and Spain) could cover half of a smart budget, while the rest could go for the
smart cities of other Member States.
SMART EUROCITIES

SMART CITY FINANCING SOURCES
 Smart City Development Partnership can generate capital internally, through their own net operating cash
flows, or externally through equity capital markets, bond markets or the banking system, or via direct and
indirect financing.
 Private Finance Mechanism Hierarchy:
 Senior secured debt
 Senior (unsecured) debt
 Subordinated debt (mezzanine financing)
 Equity financing
 Public Finance Mechanism:
 Grants to support high upfront costs for innovative capital projects, to increase the FRR on
 investment and leverage additional resources through requirements on cofinancing/matching funds.
 Interest subsidies (i.e.) Soft loans entail: • Extended payback periods; • Low or zero interest rates; • Short-
term interest deferral periods; and/or • Inclusion of payback grace period.
 Revolving funds offer loans that can be repaid with the realized revenue
 and then it can be reinvested in new projects in the same area.
 Financial instruments, combinations of grants and loans
 SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING GROUP
 GUIDANCE DOCUMENT. FINANCING MODELS FOR SMART CITIES
SMART EUROCITIES

SMART CITY FINANCING MODELS
 Government-based financing tools
 1. General obligation bonds; 2. Revenue bonds
 3. Industrial revenue bonds; 4. Green bonds
 5. Qualified energy conservation bonds
 6. Social impact bonds; 7. Public benefit bonds
 8. Linked deposit programs; 9. Energy efficiency loans
 10. Property-Assessed Clean Energy Programs; 11.
Greenhouse emissions allowance auctions;12. User fees
 Development exactions
 1. Developer dedication requirements; 2. Tap fees
 3. Linkage fees; 4. Impact fees
 Public-private partnerships
 Private fund leveraging options
 1. Loan Loss Reserve Fund (LRF); 2. Debt service
reserves; 3. Loan guarantees; 4. On-bill financing; 5.
Pooled bond financing; 6. Pooled lease-purchasing
finance; 7. Value capture; 8. Tax increment financing
 Philanthropic non-profit foundations;
 International NGOs, World Bank, OECD, CIF;
 Combining financial tools and multiple funding sources
 SMART CITIES FINANCING GUIDE: Expert analysis of 28
municipal finance tools for city leaders investing in the
future. Smart Cities Council
 Financial System: Direct and Indirect Financing
 SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING
GROUP. GUIDANCE DOCUMENT. FINANCING MODELS FOR
SMART CITIES
SMART EUROCITIES

SMART CITY FINANCING CHALLENGES
 The smart cities financial challenges:
 f) High risk perception for innovative solutions and energy efficiency measures;
 g) Uncertain energy prices and policy uncertainty on fossil fuel prices;
 h) Large investment volumes required;
 i) Long term to maturity/profitability;
 j) Limited public funding capacity: high public deficits municipalities and incapacity to raise funding from
capital markets
 To attract the necessary capital for investments in cities solutions have to be found to:
 e) Reduce real and perceived risks of the investments;
 f) Attract long term finance from specialised institutions (i.e. pension funds);
 g) Develop project aggregation mechanisms to create bankable and sizeable investments with reduced
transaction costs;
 h) Develop off balance sheet investment systems with private mechanisms (development of single purpose
vehicles and PPPs)
 Smart Cities, as large scale innovative and costly changes, involve both financial engineering and socio-
economic values, measured as internal rates of return (IRR) and economic rates of return (ERR), respectively,
which might oppose each other.
 SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING GROUP. GUIDANCE DOCUMENT. FINANCING MODELS FOR
SMART CITIES
SMART EUROCITIES

SMART CITY CHALLENGES, RISKS, AND SOLUTIONS
 Technology risk
 Operational risk
 Construction risk
 Market demand risk
 Policy risk
 Finance risk
 The public sector can offer particular financial
instruments to leverage private financing:
 Grant co-financing: to reduce the volume of investment
form the private sector and thus their potential losses.
 Equity support: offering equity to private developers
 Guarantees to banks and private investors: sheltering
the private sector for first losses of projects
 Operational risks can be mitigated with the appropriate
investment in skills; Technical assistance is key to
reduce this risk; Construction risk can be mitigated
through subordinate loans and guarantees, etc.
 The ERR to the smart city is usually high (living
standards and health benefits), while the FRR could be
low, then public assistance instruments are required to
compensate the private financiers. The more innovative
the solution, the more difficult to raise finance.
 The smart cities financial challenges:
 f) High risk perception for innovative solutions and energy
efficiency measures;
 g) Uncertain energy prices and policy uncertainty on fossil
fuel prices;
 h) Large investment volumes required;
 i) Long term to maturity/profitability;
 j) Limited public funding capacity: high public deficits
municipalities and incapacity to raise funding from capital
markets
 To attract the necessary capital for investments in cities
solutions have to be found to:
 e) Reduce real and perceived risks of the investments;
 f) Attract long term finance from specialised institutions
(i.e. pension fun ds);
 g) Develop project aggregation mechanisms to create
bankable and sizeable investments with reduced
transaction costs;
 h) Develop off balance sheet investment systems with
private
 mechanisms (development of single purpose vehicles and
PPPs)
 SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING
GROUP. GUIDANCE DOCUMENT. FINANCING MODELS
SMART EUROCITIES

MULTIANNUAL FINANCIAL FRAMEWORK (MFF) 2014-2020:
FINANCIAL ALLOCATION FROM ESIF
 Cohesion Policy
 Structural Funds:
 European Regional Development
Fund (ERDF),
 European Social Fund (ESF)
 Cohesion Fund (CF)
 Common Agricultural Policy
 European Agricultural Fund for
Rural Development (EAFRD)
 Common Fisheries Policy
 European Maritime and
Fisheries Fund (EMFF)
 A total amount of … is allocated to each Member
State for the 2014-2020 programming period from
the European Structural and Investment Funds
(ESIF), as follows:
 Structural Funds (ERDF & ESF), Cohesion Fund
and Youth Employment Initiative: €
 European Agricultural Fund for Rural Development:
€
 European Maritime and Fisheries Fund: €
 Total Budget: € for 2014-2020 (Operational
Program for Cohesion Policy)
 Percentage of Subsidy/Co-Financing: Up to 95% of
the total cost.
 Eligibility for Participation:
 Central Government
 Local Authorities
 NGOs
 Private Bodies
SMART EUROCITIES

PARTNERSHIP AGREEMENT AND OPERATIONAL PROGRAMS
 The EC-Member State Partnership Agreement
(PA) is to secure the synergy and coordination
between the ESIF Funds supporting:
 the Cohesion Policy (Structural Funds and
Cohesion Fund),
 the Common Agricultural Policy (European
Agricultural Fund for Rural Development)
 the Common Fisheries Policy (European
Maritime and Fisheries Fund)
 Strategic Objectives, or National Priorities
 • Supporting the restructuring and
strengthening the competitiveness of economy,
 • Upgrading human resources, promoting
employment and social cohesion,
 • Protecting the environment and promoting the
efficient use of resources
 Promotion of sustainable local development:
Territorial cohesion, Urban and Rural
Development
 The Partnership Agreements should be officially submitted to
the European Commission for approval on April 2014
 The Operational Programs (OP) specify in more detail the
PA through specific priorities and indicative interventions.
 The following programs will be prepared:
 (a) Two Operational Programs for Cohesion Policy Funds,
 (b) The Rural Development Program
 (c) The Operational Program for Fisheries and Aquaculture.
 There are be two Operational Programmes for Cohesion Policy:
 1. the OPs for Competitiveness and Sustainable Development,
which will be co-financed by the ERDF and the CF, with an EU
contribution of € …, interventions will be promoted for the
enhancement of competitiveness of the economy through the
promotion of investment in the sectors of Research and
Development and Information and Communication
Technologies, interventions in the sectors of Environment,
Energy and Transport, as well as interventions for the promotion
of integrated sustainable urban development in deprived areas.
 2. the OP for Employment, Human Resources and Social
Cohesion, which will be co-financed by the ESF and the Youth
Employment Initiative, with an EU contribution of € …,
interventions will be promoted for the promotion of employment,
lifelong learning and social cohesion
 The Cohesion Policy Programs should be officially submitted to
the EC by July 2014.
 The approval of the European Commission is expected by the
end of 2014.
SMART EUROCITIES

ESIF: WHO TO APPLY
 Local Authorities: Urban and Rural Development and other
projects contributing to the thematic objectives (environment,
energy, etc.)
 NGOs: Promotion of Social Economy and participation in the
implementation of projects – Cooperation with Local Authorities
and other bodies
 Universities – R&D&I, Partnerships with local authorities,
industries and enterprises and other organizations
 Enterprises: Grant schemes, loans and other financing
instruments for improving competiveness, innovation,
employment schemes, etc.
SMART EUROCITIES

SMART EUROCITIES Azamat Abdoullaev 2014
FUTURE CITY ARCHITECTURE
Inclusive
Social
Human
City/
Town/
Community
SMART
SUSTAINABLE
CITY
i-City Platform
Smart City
Command and
Control Center
EcoSustai
nable
City/
Town/
Community
Smart
Digital
City/
Town/
Community
Physical Capital
Natural Capital
Ecosystems
Natural Resources
Renewables/RES
Eco Technologies
Green Infrastructure
Eco-Urbanization
Green Society
ECO-SUSTAINABLE GROWTH Information/Digital Capital
Smart Mobility , Smart Services
ICT Infrastructure, OTN, Optical
Networks , NG Broadband
3DTV, HDTV, CC, Intelligent Clouds
Internet of Things, u-Computation
Digital/Cyber Society
TECHNOLOGICAL/SMART GROWTH
Social/Human/I-Capital
Innovation Ecosystems
Smart Living
Smart Economy
Knowledge Infrastructure
i-Industry
Smart Governance
Equity, Wellbeing, QoL
Knowledge Society
SOCIAL/INCLUSIVE GROWTH
SUSTAINABLE URBAN TRINITY
of
Wellbeing, Quality of Life and Sustainable Growth

SUSTAINABLE DEVELOPMENT AND REDEVELOPMENT PROJECTS
 Digital or Cyber City Urban Projects, new and retrofitting, Cloud-Based
Intelligent City Management Platform, advanced ICT Networks, Optical
Internet Backbone, Municipal Wireless (WiFi) Communication Networks with
open service model (tourist areas to start), smart ICT services for citizens (i-
government, i-learning, i-health, i-commerce, etc)
 Clean/Green Eco City Projects, Green Infrastructure, Transport, Buildings,
Intelligent Energy Networks (green homes, neighborhood, districts; solar
gardens and farms)
 Intelligent/Inclusive/Human-Centered City Projects/ to nurture social
inclusion, creativity, innovation, and talents, investing in education, arts and
culture, organizing high quality cultural and creative events and
performances, attracting talented professionals and international
knowledge, cultural, and multi-media industries
SMART EUROCITIES

TOMORROW’S EUROCITIES:
REDEVELOPMENT PROJECTS UNDER THE EU FUNDING SCHEMES
 Smart City Governance Platform (Urban Intelligent Management System)
 ■ Transport, including public transport, intelligent transport systems and parking, GIS;
 ■ Environment/Energy, Environment Management, Energy networks, such as smart
grids, smart meters, smart energy-efficient buildings;
 Telecom networks, all-IP core networks, ultra-high broadband access convergence
networks, advanced services and applications, such as FTTx, GPON, LTE, multi-play
services, urban traffic management, building automation, lighting and energy
management, access and security networks, location-based services, trust and
security platforms, multimodal user Interfaces, Anytime/any place Ubiquitous
connectivity, the Internet of Things between machines (multiple devices and sensors
and actuators) and humans, M2M and M2M2H (real time data and control)
 ■ Municipal projects, city administration and public utilities, waste management,
modernisation of water systems, smart lighting systems, public safety and city
resilience programms;
 ■ Public Services, Education and Health, Safety and Security, and Social Networking,
Economic Stimulus projects

GLOBAL CITIES INITIATIVE IN EU:
SMART EUROCITIES DEVELOPMENT PROGRAM
 CREATING OVERALL SMART ECO CITY STRATEGY: Intelligent Community Design, Setting a Comprehensive Intelligent
Community and Smart City Agenda/ Strategy/ Vision/Roadmap/MasterPlanning/Technological Platform
 Scope: Smart City Branding & Full Sustainability Report & Total Package of the Next-Generation Urban Development
 SMART GREEN EUROCITY PROJECTS MANAGEMENT PLANNING (Work Breakdown Structure and Project Organization
Structure)
 Scope: Smart Eco City Program;
 DEVELOPING SMART CLOUD CITY MANAGEMENT PLATFORM (MUNICIPAL CONTROL AND COMMAND CENTER)
 Scope: Urban Management System; Smart Cloud Computing Urban Platform
 Delivery Date: December 2014
 ORGANIZING SMART EUROCITY SEMINARS FOR COUNCIL MEMBERS, MUNICIPAL STAFF, TECHNOLOGY UNIVERSITY,
INVESTORS AND OTHER STAKEHOLDERS
 ORGANIZING SMART EUROCITY STAKEHOLDER PLATFORM
 ORGANIZING SMART EUROCITY INVESTORS SUMMITS (Local, European, International; Programs and Prospects)
 LIGHTHOUSE SMART CITY PROJECTS under EU Multiannual Financing Framework 2014-2020
 EU Horizon 2020 (Lighthouse Projects)
 EU ESIF Funds 2014-2020 (Integrated Urban Development Platform)
 Delivery Date: 3-7 years according to the projects terms and conditions
 Funding for Sustainable Cities and Green Initiatives: “Using EU funding mechanism for smart cities”
 http://ec.europa.eu/environment/europeangreencapital/about-the-award/policy-guidance

“SMART CITY” TEAM AND BUSINESS STAKEHOLDERS:
CORE MEMBERS AND PROSPECTIVE PARTNERS
 Smart City “X” Consortium
 Smart City Management Team:
 Municipal Mayor
 City Council Members
 Staff (urban planners, architects,
engineers)
 International Team:
 EU Smart Cities Platform
Stakeholders (Action Clusters)
 Dr Azamat Abdoullaev,
Coordinator (Urban Europe 2020;
Smart Cities Global Initiative)
 http://eu-smartcities.eu/content/become-smart-nation-build-your-
brand-name
 EUROPEAN PARTNERS
 European Innovation Partnership on Smart Cities
and Communities
 PROSPECTIVE BUSINESS PARTNERS
 EIS (I-World Concept and Smart Sustainable City Strategy)
 IBM (Smarter Planet Initiative)
 Cisco Systems (Smart + Connected Communities)
 European Innovation Partnership (Smart Cities and
Communities)
 Siemens (Smart Mobility Initiative)
 Huawei (Smart City Initiative)
 Orange (France Telecom) (Smart City Initiative)
 Alcatel-Lucent (Smart City Initiative)
 Microsoft (Intelligent City Platform)
 Oracle (Intelligent Government Platform)
 Toshiba (Intelligent Energy and Smart City)
 Schneider Electric (Smart City Initiative)
 Hitachi (Smart City Initiative)
 Smart City Planning, Inc. (SAP, LG CNS, NEC, HP, etc.)
SMART EUROCITIES

SMART EUROCITIES:
CONCEPTUAL REFERENCE FRAMEWORK
SMART EUROCITIES

INVESTMENT AREAS
 Smart Government and Intelligent Public Administration
 Smart ICT, Optical Transportation, and Mobile Networks
 Smart and Green Building and Sustainable Construction
 Smart and Green Energy
 Smart and Sustainable Water
 Smart and Sustainable Waste
 Smart Mobility and Green Transportation
 Smart People and Knowledge Workers
 Smart Economy, Business and Commerce
 Smart Safety and Health
 Smart Culture, Tourism, Education, Research and Innovation
 Funding for Sustainable Cities and Green Initiatives: “Using EU funding mechanism for smart cities”
 http://ec.europa.eu/environment/europeangreencapital/about-the-award/policy-guidance/
SMART EUROCITIES

SMART CAPITAL PROJECTS:
INNOVATION ECO CORRIDORS
 Eco-Smart Natural and Built Environment
 Integrated Sustainable Infrastructure: intelligent ICT, low energy districts and sustainable mobility
 Smart and Green Squares, Eco Parks and Open Spaces, Climate Streets and Eco Districts
 Smart Mobility and Eco Transportation; Smart Energy and Distributed Energy Networks (RES&RGS)
 Industrial Innovation Parks, Business Clusters, Knowledge Parks, Science & Technology Parks, Health Parks,
Biomedical Parks with Immortality Centers, Agriculture Technology Parks, Energy Parks, Server Farms, Eco
Farms, or ICT Parks
 Seaport Development Parks (Coastal Eco Parks (large fishing ports, recreation zones and seaside touristic
facilities)
 Environmental Protection Projects (Coastal Regeneration, marine parks, sea farms and large fishing ports
and recreational zones; Green Forestation, forest protection, large forest recreation areas; Water
Management and Flood Prevention, ground water replenishment, natural land and NATURA sites
conservation; Sustainable Sewer Construction)
 Sustainable Urban and Rural Redevelopment
 Local Eco Communities Cluster, Smart Property Developments
 Cultural Sustainable Settlements (China Eco Towns, Russian Smart Villages, British Green Communities, etc.)
 Territorial Eco Corridors
 Green Transportation Network (connected eco mobility, bike lanes, public transit, pathways, nature trails,
European Path E4)
SMART EUROCITIES

EU INVESTMENT PROGRAMS
 EU Multiannual Financial Framework 2014-2020
 European Commission: Lighthouse Smart Community Projects (Horizon 2020)
 Smart and Green Polis will be presented as an active member of the EU Lighthouse Projects, inviting institutions, public
bodies, industries, city networks, and academia to proactively contribute to the cause.
 To deploy smart city solutions across urban mobility; districts and built environment; and integrated infrastructures, the
concept of Smart City ”Lighthouse Initiatives” is to be implemented, requesting collaboration between the European
Commission, Member States and Industry, as well as cities and research institutions.
 Over the next 7 years, a portfolio of at least 20 - 25 lighthouse projects is to be created: each with 6-10 cities (and partners),
with the potential for Europe-wide roll out – dependent on levels of commitment, and access to / creation of funds.
 Source: European Innovation Partnership on Smart Cities and Communities - Strategic Implementation Plan 14.10.2013
 http://eu-smartcities.eu/content/presenting-european-innovation-partnership-smart-cities-and-communities
 Sustainable Urban Development Platform (ESIF):
 In the new EU budget 2014-2020, at least 5% of the European Regional Development Fund will have to be used for sustainable
urban development. Based on a list of cities prepared by Member States in their Partnership Contract, the Commission will
establish an Urban Development Platform comprising 300 cities throughout Europe, which will stimulate a more policy-oriented
dialogue on urban development between the cities at European level and the Commission
 Smart Eco Polis as a town implementing integrated and innovative actions for sustainable urban development to be included in
the Partnership Contract and the Operational Programmes to have the EU CSF Funding 2014-2020 benefits.
 EUROPEAN INVESTMENT BANK: Multi-component loans
 EIB’s multi-component, multi annual investment programmes using a single “framework loan”. This funds a
range of projects, usually by a national or local public sector body, most frequently regarding infrastructure,
energy efficiency/renewables, transport and urban renovation
SMART EUROCITIES

INTELLIGENT GOVERNANCE SYSTEMS:
SMART CLOUD PLATFORM + INTERNET OF EVERYTHING
 The Smart Eurocity Cloud Platform
 The Urban Internet of Everything is the cloud-networked
connection of people, processes, data, and things.
 PEOPLE(PERSON, ORGANIZATIONS)
 PROCESS (ACTIVITIES, SERVICES)
 DATA (INFORMATION, KNOWLEDGE)
 THINGS (BUILDINGS, MACHINES, DEVICES)
 The i-City Operation Center is connected with thousands
of sensors and cameras spread throughout the cities, as
the city brain of the Urban IoE, in which M2M
technologies are vital to present intelligent data
analytics for city processes.
 “Smart City“ Intelligent Platform is to integrate a
technology-centric (smart) level, an intelligent (people-
centric) level, and eco-sustainable level improving the
Urban Economy, Community Integration, Quality of Life,
and overall Sustainability.
 $14.4 trillion of potential value at stake for the private
sector, IoE is a $19 trillion opportunity for businesses
and governments globally 2013-2022.
http://internetofeverything.cisco.com/
 The Smart Cloud Platform (IBM or Cisco Powered)
www.ibm.com/smartcloud
SMART EUROCITIES

INTEGRATING THE BEST PRACTICE
SMART CITY PROJECTS ACROSS THE WORLD
 SMART Eurocities Development Strategy implies all six dimensions to be merged and interrelated by the deployed Urban
Intelligent Management System: Smart People, Smart Economy, Smart Governance, Smart Mobility, Smart Environments, and
Smart Living
 1. Smart Economy (Innovation, Productivity, Innovative Spirit, Intellectual Property, Entrepreneurship, Knowledge
Market/Industry, Openness)
 Holyoke, Massachusetts; Kochi, India; Malta; Manado, Indonesia; Nanjing, China
 2. Smart Environment (Natural Capital and Resources, Sustainable Resource Management)
 Amsterdam, Netherlands; Burlington, Ontario; Dublin, Ireland; Dubuque, Iowa; Glasgow, Scotland, United Kingdom; Lyon,
France; Malaga, Spain; Peterborough, United Kingdom; San Diego, California; Shenyang, China; Santa Barbara, California;
Stockholm, Sweden; Sydney, Australia; Yokohama, Japan
 3. Smart Governance (e-Participation, public/social services, transparency, political strategies and perspectives)
 Chengdu, China; Edinburgh, United Kingdom; Matosinhos, Portugal; Syracuse, New York; Wilmington, North Carolina
 4. Smart Lifestyle (Smart Living, Quality of Life)
 Boise, Idaho; Houston, Texas; Johannesburg, South Africa
 5. Smart Transportation (Smart Mobility, innovative, safe and sustainable transport systems and facilities)
 Alameda County, California; Alcoa, Tennessee; Portland, Oregon; Southampton, United Kingdom
 6. Smart Community (Social Cohesion, Unity in Community, Human Infrastructure, Interfaces, Integration)
 Chattanooga, Tennessee; Dublin, Ohio; Eindhoven, the Netherlands; Issy-les-Moulineaux, France; Luxembourg; Queensland,
Australia; Stratford, Ontario, Canada; Windsor-Essex, Ontario, Canada; Skolkovo, Russia
 . The EU Smart Communities and Cities Prototype: 3.0 City, from Dumb to Intelligent Cities. http://www.slideshare.net/ashabook/30-
cityeu-prototype; http://www.slideshare.net/ashabook/urban-europe; http://www.slideshare.net/ashabook/sustainable-city

LIGHTHOUSE SMART POLIS PROJECT
 The light house projects should look for creating partnerships between industries, academics and cities, empower citizens and
ensure the replicability of the solutions, ensure the funding from various sources. Therefore each project should:
 Be realised in 2 – 3 cities or communities (light house cities or communities);
 include industry, city planning authorities which should also reflect the view of the consumer organisations, research
community, local Small and Medium Size Companies (SMEs);
 co-involve 2 - 3 follower cities i.e. cities willing to contribute to the process though the replication of solutions at the end of the
project and having access to the knowhow and results of the project and a privileged contact with the project's partners. The
involvement of the follower cities should be relevant (e.g. participating in definition of user requirements and methodology of
transferability of solutions, data collection etc.). The follower cities should aim at improving their energy performance or the
share of use of renewables (e.g. 60% reduction of primary energy for buildings, 20 - 30 % RES use for electricity as well as for
heating and cooling). EU geographical coverage conditions should be also applied.
 Ensure that all proposed activities are a part of ambitious urban plan. These activities should also lead to the development of
integrated urban plans. The urban plan shall integrate buildings planning, energy networks, ICT, transport/mobility planning;
additional issues may be addressed as well if relevant for the city. These plans shall be submitted with the proposal as a
supporting document(s).
 the funding for the other parts of the programme or initiative in which the lighthouse projects are embedded should be
secured from other sources, preferably private ones, but also other EU funding sources (European Structural and Investment
(ESI) funds for example), national or regional funding.
 Projects should demonstrate and validate attractive business plans that allow large scale replication of fast economic recovery
in cities of varying degrees of economic conditions (from very poor to very rich), varying sizes but significant urban areas and
varying climatic conditions to ensure high impact and replication potential .
 The industrial partners and municipality authorities should engage in replicating successful demonstration in their own and
other cities, notably 'follower cities'; the replication plans are compulsory and are part of the evaluation.
 Consortia must have a clearly defined structure with roles and responsibilities properly spelled out for all involved entities.
SMART EUROCITIES

EUROPEAN INVESTMENT BANK:
SMART SUSTAINABLE CITY INVESTMENT PROGRAMS
 EIB supports projects that make a significant contribution to growth, employment, regional cohesion and environmental
sustainability in Europe and beyond. Priorities are defined in Operational Plan:
 Small and medium sized enterprises & mid-caps: the creators of 80% of new jobs
 Regional development: to address economic and social imbalances
 Innovation: promoting skills and innovation at every level
 Trans-European Networks: linking Europe’s infrastructure, principally in transport
 Energy: building competitive and secure supply
 Environmental sustainability: including both climate action and investment in the urban and natural environment
 Urban Environment
 Urban renewal – improving the quality of life and aiding social cohesion
 Heritage – preserving the social, architectural and historical fabric of towns and cities
 Buildings – renovation and renewal
 Infrastructure – promoting sustainable transport, energy, ICT etc.
 Mobility – helping people move around while cutting noise and air pollution
 Sustainable transport
 Sustainable energy project advice, ELENA
 Water: Water supply, Wastewater treatment and disposal, Coastal erosion, Flood control, Hydropower generation
 Biodiversity; Forestry
 Financing
 EIB lends directly to major projects, > Euro 25m, or pass through intermediaries for smaller investments, < Euro 25m. Funding is also
channelled through: JESSICA: a programme to magnify the effect of EU Structural Funds for urban projects. JASPERS: assists new EU
Member States achieve grant financing under the Structural and Cohesion Funds
SMART EUROCITIES

EUROPEAN INNOVATION PARTNERSHIP:
SMART CITIES AND COMMUNITIES
 http://eu-smartcities.eu/blog/smart-superpowers-projects-states-powers-great-powers-and-hyperpowers
 http://eu-smartcities.eu/blog/europe-sustainable-states-commitments-and-smart-nations-franchises
 http://eu-smartcities.eu/blog/europe-sustainable-states-commitments
 http://eu-smartcities.eu/blog/smart-cities-global-initiative
 http://eu-smartcities.eu/blog/how-build-sustainable-cities-roadmap-mayors-city-managers-and-city-councils
 http://eu-smartcities.eu/blog/what-not-smart-city
 http://eu-smartcities.eu/blog/how-build-sustainable-cities-roadmap-mayors-city-managers-and-city-councils
 http://eu-smartcities.eu/blog/what-not-smart-city
 http://eu-smartcities.eu/blog/eu-urban-agenda-sustainable-cities-pilot-case-smart-limassol
 http://eu-smartcities.eu/blog/smart-city-commitments-permanent-strategic-consultancy-group
 http://eu-smartcities.eu/content/become-smart-nation-build-your-brand-name
 http://ec.europa.eu/dgs/secretariat_general/eu2020/docs/intelligent_europe_center_en.pdf
 http://www.cs.ucy.ac.cy/CIT2011/files/SMARTWORLD.pdf
 http://www.eu-smartcities.eu/

I-COMMUNITY CONSULTANTS AND DEVELOPERS
 Dr Azamat Abdoullaev, Director
 EIS Encyclopedic Intelligent Systems Ltd (Cyprus, EU)
 Member of the European Innovation Partnership on Smart Cities and Communities
 EIS Encyclopedic Intelligent Systems Ltd (Moscow, Russia)
 http://www.slideshare.net/ashabook/eis-ltd
Telefax: + 357 25 561 883
 E-mail: EIP on Smart Cities and Communities’ Platform’s Website
 smartcity@cytanet.com.cy; ontopaedia@gmail.com
 Internet Sites: http://iiisyla.livejournal.com
 ООО "Энциклопедические Интеллектуальные Системы“(Moscow/Russia)
 Skolkovo Innovation Center Participant: http://community.sk.ru/net/1120292/
 http://en.wikipedia.org/wiki/Azamat_Abdoullaev
 HTTP://WWW.SLIDESHARE.NET/ASHABOOK/AZAMAT-ABDOULLAEV
 I-COMMUNITY (WORLD, REGION, STATE, CITY) GOVERNANCE PLATFORM
 http://www.slideshare.net/ashabook/encyclopedic-intelligence
 http://www.slideshare.net/ashabook/encyclopedic-intelligence-24260973
 http://www.slideshare.net/ashabook/encyclopedic-intelligence-global-marketing
 http://www.slideshare.net/ashabook/encyclopedic-intelligence-big-science-and-technology
 http://www.slideshare.net/ashabook/global-intelligence-26413485
 http://www.slideshare.net/ashabook/iworld-25498222

“SHOW TO THE WORLD THAT YOU ARE A SMART CITY”:
THE FIRST DEADLINE IS APPROACHING BY 15 JULY
 Are you on the right track to become a Smart City? It is said that the future of the world will be decided by the
quality of its cities, and it is expected that by 2020 over 40 urban areas will turn into Smart Cities.
 However, the Smart Cities Global Initiative is concerned about the large variety of narrow technical visions,
models and approaches in which on many occasions “the push towards smart cities is being led by the
wrong people –technology companies with naïve visions and short term commercial goals–, while the
architects, planners and scientists often struggle to share their specific knowledge”.
 That is why this initiative is looking for megacities, municipalities, communities or brand new cities that are
following a smart community development strategy aiming to unify all the city systems, services, operations,
activities, departments and agencies as a sustainable smart urban ecosystem.
 The applications have to provide evidence that the city has potential capacity to take profit of the intelligent
resources offered through the Smart Cities Global Initiative. They also have to prove that their transformation
into a Smart City has a strong leadership and that it has strong intentions to invest intelligent and financial
capital into smart and sustainable urban development.
 The selected urban entities will be provided with intelligent property investment as well as sustainable city
exclusive education and training.
 You can submit your applications via e-mail …at smartcity@cytanet.com.cy until the 15th of July.
 For further information on the Smart Cities Global Initiative, consult the online brief guide.
 http://eu-smartcities.eu/blog/smart-cities-global-initiative
SMART EUROCITIES

Smart Cities Financing

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