Promoting and financing sustainable urban development

Transcription

1 Promoting and financing sustainable urban development 4th July 2013 Grégory Villeneuve, AFD Representative for Sri Lanka & The Maldives

2 Breakdown of the session 1 Context 2 AFD Strategy: Supporting Urban entities Urban Planning Projects 3 How Do We Finance Integrated Urban Development 4 Our approach of the integrated Urban development - Experiences Développement local en Amérique latine / séminaire ALC 12 janvier

3 1 - What s at stake? Rapidly increasing urbanisation a worldwide trend Global Urban Population Latin America 75-90% in 2020 Sub-Saharan Africa 2050: 1.2 Billion Asia 2008: 1.6 Billion 2050: 3.5 Billion 1970: 1 Billion 2020: 4.5 Billion Urban Population X 2 in 15 years Increasing urbanisation + its effect on climate change put sustainable cities at the heart of this century s priorities + - DJIBOUTI

4 1 - What s at stake? Urbanisation characteristics in Sri Lanka 20 Millions of inhabitants live in Sri Lanka; Only 35% of them living in urban areas. The rate of urbanisation is to be 3% per annum An urban development that is caracterized by low-density, urban sprawl and ribbon development A lack of basic infrastructure, and efficient transport systems Local urban authorities with limited capacities and ressources (human and planning skills, lack of funds ) One ambitious aim: to develop 7 metro cities in SL (>1 M.inhabitants)

5 2. AFD s approach in Urban Development We take into consideration all aspects of city development: 1. Better public transportation to reduce traffic jam, pollution and ease commutting in the city- at the best benefit/investment/operating cost. 2. Improved and extended water supply schemes at cheapest operating cost. 3. Sustainable sewerage networks and wastewater solutions. 4. Promoting long term and efficient solution for municipal waste management. 5. Long term mechanisms to support social housing programs ; to provide low cost/energy efficiency accomodations + to help compacting oversprawled cities 6. District rehabilitation +revitalization programs + tourism development. Capacity building: We aim to empower local and central urban authorities with better financial and planning skills. Environmental Awareness: protecting nature, reducing GHG and improving people s health

6 3. AFD aims to favour an integrated approach Traditional planning approaches have often focused on specific sectors and have blurred the organic interaction between various social, economic and environmental factors Ex:Improving sanitation in an informal settlement is essential BUT How will the local community benefit without complementary actions? They need access to the city (affordable urban transport), to jobs, better living areas (broad service delivery, safety), public equipments & spaces Only an integrated approach makes it possible to solve all these issues (not at the same time) taking each intervention as part of a broader urban strategy

7 4. Sustainable cities need an integrated urban planning Integrated urban planning = Delivering accomodations, jobs and basic public services accessible to all citizens while protecting environment For example : the French Experience Sustainable development masterplans in France must take into account the following objectives: Reach a balanced urban development mixed use area development Enhance social diversity social housing / urban renewal Promote sustainable activity zones jobs and economic development Preserve the environment and improve quality of life Develop urban facilities basic services accessible for all Improve mobility and develop public transportation infrastructures (accessible, affordable, low emissions)

8 5 AFD s tools: AFD support combines : Financing investment programmes through loans Technical cooperation adapted to the partner s needs: city to city cooperation, French technical expertise, exchange with French urban operators, etc. Beyond the financing of urban investments, the aim is to strengthen the impacts of integrated urban development programmes Strengthening authorities capacities to improve urban management: support to integrated urban planning, climate change strategies Targeting urban authorities financial sustainability: financial resources, fiscal management

9 5 - AFD financing of urban development projects : 163 projects for a total of 2,845 billion 2012: 1 billion of new commitments (including French Overseas Territories) Financing(K ) and projects K Fore Outre-Mer Pays étrangers

10 loans loans AFD loans Municipal Fund loans Central government loans loans Local governments loans Local banks Specialized financial institutions loans AFD loans

11 A wide range of instruments to finance sustainable urban development ( ) Grant to a National State or to LA s Loan to a National State not reassigned Loan to a National reassigned to a LA Direct loan to a LA with sovereign guarantee Direct loan to a LA without sovereign guarantee Direct loan to a urban facility Bank credit lines Direct loan to french overseas LA s CIS CLD CA 30/11/

12 EX 1 - Our approach in sustainable urban development Sustainable Urban Planning in Cape Town Financial instrument: 200 M direct loan to City of CT in local currency (ZAR) - Detailed risk analysis: excellent financial situation, transparency - Autonomy with efficient control of government - Budget financing to support the city s own priorities, as formalized in a sustainable development strategy support : priorities on informal settlements, water, transport - No state guarantee Project Implementation - Follow-up through capital budget expenditures and specific city indicators Technical cooperation on public transport (especially rail) - Mobility planning and transport management - partnership with a French local transport authority)

13 Ex 2 - Our approach in sustainable urban development Urban Morphology with the Eco-city of Zenatta Challenges: controlling urban growth, sustainable development, governance of the new towns, improving public services management Project : Developing an Eco-City integrated in the Greater Casablanca based on 3, pillars: economic, social and environment bioclimatic city, integrated water ressource management, public transports, ecomobility, green areas and corridors (470 ha 30% of the area), mix of housing and economic activities, good density Job creation as a priority ( jobs in 5 sectors) Borrower : Operator (société d aménagement) dedicated to the implementation of the new town of Zenata (land acquisition, urbanization and land sale to developers), owned by a public financial institution (CDG) strong technical & financial capacity is key to the project risk assessment and feasibility Financial instrument : 300 M EUR loan (AFD + EIB) with 30 M EUR European grant (investment grant and technical cooperation) Technical cooperation envisioned with ANRU (French operator on urban renovation)

14 Ex 3 - Our approach in sustainable urban development Networks and services improvement in Medellin Project : A 400 M USD «Integral Urban Project» in the Eastern part of the City (2 sub districts = people) Urban renovation focused on key sub-districts (on housing, public spaces) Public transport to facilitate access to this remote neighborhoods (tramway and 2 cable cars) Very strong impact on security (crime rate), job creation Borrower : Medellin Municipality= strong leadership + a real urban development strategy (social urbanism) + excellent financial credentials and borrowing capacity Financial instrument : 240 M USD direct loan to the Medellin Municipality + technical cooperation (APUR)

15 EX 4: Our approach in sustainable urban development Transport & Ecological Corridors in Curitiba Background : support to an environment-friendly programme (mainly urban transportation) with a focus on climate change / preservation of urban biodiversity Financial instrument: budget support loan direct to the Municipality of Curitiba (Union guarantees repayment) Borrower : Municipality of Curitiba (1,8 million inhabitants) with satisfactory financial situation, strong technical skills Project : Partial financing of public transport (linha verde Norte) and ecological corridor (Rio Barrigui banks) Forecasted impacts : environment protection / estimated decrease of CO2 t/year) City to city cooperation with le Grand Lyon on themes of interest to soft mobility, urban revitalization programs ZR 1 ZR 2 ZR 3 ZR 4 SETOR ESTRUTURAL ZR 4 ZR 3 ZR 2 ZR 1

16 Ex 5: Our approach in sustainable urban development Heritage Protection & Local Eco Development at in Senegal Context: How to reconcile urban service delivery, sustainable economic development, tourism promotion and heritage protection in a World Heritage Site confronted to growing urban pressures? Project : to preserve Saint Louis island s exceptional heritage while keeping it residential (avoid gentrification and residents departure) Improve service delivery : interventions on public spaces (parks, tourism walks), waste collection & management Rehabilitate public and private valuable buildings Strengthen local tourism (WH office, operators, natural parks in the vicinity) And support local economic growth through interventions in support of fishing sector (primary eco activity) Financial instrument : sovereign loan (22,5M EUR) Technical cooperation and institutional reinforcement in favour or Saint Louis Municipality

17 17 Thank you for your attention

18 Annexe 1 - Five key entry point URBAN PLANNING Master plans taking sustainable development into account (Cape Town, South Africa) URBAN MORPHOLOGY Urban Shape : size of streets, place of housing Eco-friendly neighbourhoods NETWORK AND SERVICES Urban transport Solide Waste Management Water and wastewater Local Economic Development & Job Creation BUILDINGS & ENERGY EFFICIENCY Building design and structure Equipments: heating, air conditionning USERS HABITS Soft mobility

19 Case study: City of Cape Town South Africa s second city (3.7 million hab) GDP - 11% (national GDP) Cape Town has very high net in-migration resulting in pressure on services and infrastructure (approx per annum) Limited room for expansion (geographic factors), size of City 2,454 square kilometers 1,10 million of households 222 Informal Settlements = people Unemployed - 23% Social housing: public land let to private developers or «not for profit» companies for mixed development areas with detailed development prescriptions

20 Cape Town : sustainable urban development strategy Integrated development Plan connected by law to 3 years capital budget Spatial Development Framework: Urban renewal / urban edge City centre revitalization, urban mobility plan, informal settlement upgrading, etc. Urban services managed by the city: water, wastewater, waste, electricity, public transport, etc. City Densities Dictating Growth and Infrastructure High level technical departments even if may be understaffed

21 Integrated Urban Planning in Morocco: New town of Zenata Operator (société d aménagement) dedicated to the implementation of the new town of Zenata (land acquisition, urbanization and land sale to developpers) 100% owned by Caisse de Dépôt et Gestion (100% government owned) Public mandate of CDG to implement a project with high expectations (lack of successful experiences, strategic importance of Casablanca) Highly qualified and motivated staff backed by the experience of CDG Dévelopment and financial and technical support of the CDG Group June

22 Financing Program components EUR /ML equivalent Amount in Program Currency Tenor (years) AFD euros 14 EIB euros 20 NIF euros Total program euros Long term financing for the implementation of the project (land acquisition, urbanization, etc.) Strong financial support of the sponsor CDG group (230 M + land acquisition and progressive transfer) EU funds : 26 M EUR investment grant + 4 M EUR technical cooperation A partnership for a sustainable city project at international standards LAIF - FIG September

23 IMPACT Strong impact on social cohesion, better quality of life in cities Economic momentum : jobs in 5 sectors for a total population of inhabitants + jobs in construction sector Support to an important government policy tackling urban challenges (planed and controlled urban growth, sustainable urban development, governance of the new towns and better public services management) Urban planing and effect on climate change September

24 And a strong involvement of the urban authorities Urban authorities are key stakeholders to manage present urbanisation issues and prepare sustainable urban futures urban actors: Local Governments (municipalities, regions, states) or urban agencies, public investment funds, etc Legitimacy: Understanding of local needs, coordinator with all the operators/agencies, strategic and technical vision of the urban development Land use management: building permits & zoning = priority to organise sustainable urban development Local scale is relevant to improve delivery of efficient public services Facing three major local environmental issues: solid waste, air pollution, and water quality and availability But lack of capacity/financial resources in urban management Transfers (human and financial) are usually insufficient. Capacity building is essential AFD always seeks to establish a close dialogue with urban authorities, focusing on their development policies & financial strategies