SHARING INNOVATIONS FROM CITY LEADERS · SHARING INNOVATIONS FROM CITY LEADERS Summary of the proceedings of the South-South City Leaders Forum 2014 2-3 December 2014, Manila, Philippines.

SHARING INNOVATIONS FROM CITY LEADERS

Summary of the proceedings of the

South-South City Leaders Forum 2014

2-3 December 2014, Manila, Philippines

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CONTENTS

1 Summary 4

2 Introduction 7

3 Setting the Scene 9

4 Challenges towards Clean Cities: An Indian Perspective 9

5 Good Urban Governance for City Innovation 11

6 Inclusive Cities – expanding possibilities for people 13

7 Green and Resilient Cities – urban regeneration 19

8 Urban Financing – developing new city investment strategies 25

9 Competitive Cities – exploring new models for growth 30

10 Peer-to-Peer session – Urban Challenges 35

10.1 Sharing from Peer-to-Peer Break-out Groups 36

11 Conclusion 42

References 43 Annex 1 44

Annex 2 47 Annex 3 50

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ABBREVIATIONS

NOTE

In this publication, “$” refers to US dollars.

This report was prepared by Jean Chia, Consultant, and Shinjini Mehta, Young Professional, ADB.

ADB Asian Development Bank

CDIA Cities Development Initiative for Asia

CTP Cape Town Partnership

GDP Gross Domestic Product

R&D Research and Development

PPP Public-Private Partnership

PRC People’s Republic of China

SSCLF South-South City Leaders Forum

VMC Vijayawada Municipal Corporation

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1 SUMMARY

This report summarizes the proceedings of the South-South City Leaders Forum (SSCLF)1 held on 2 and 3 December 2014 at the ADB headquarters in Manila, Philippines. The forum was organized by the Asian Development Bank (ADB) with the support of Cities Development Initiative for Asia (CDIA). SSCLF gathered about 50 city leaders and city managers, senior government officials, policy makers and sector experts from close to 30 cities in Asia and the Pacific as well as other regions, to spur new ideas and share best practices and successful innovations for livable, sustainable, competitive, and inclusive cities.

The forum drew on a diverse range of experiences and innovative approaches shared by city leaders and industry experts2 from various parts of Asia as well as further abroad, including Philippines (Angeles City, Public-Private Partnership Center); Bhutan (Thimphu); India (Vijayawada); South Africa (Cape Town); Indonesia (Tangerang); Republic of Korea (Seoul); Cambodia (Phnom Penh); Japan (Yokohama); Spain (Bilbao); and People’s Republic of China (Chengdu).

For inclusive cities, the forum agreed that genuine citizens’ participation is a crucial component for successfully providing and maintaining municipal services and infrastructure. A contract with the citizens helps to build this relationship of trust and participation. The emphasis on social development projects such as subsidized health care provision and education is also needed; however cities need to find a financially sustainable model for providing such services.

To deliver green and resilient cities, the main challenge identified at the forum was how to engage citizens in actively co-creating a green and resilient city as people are a vital component of the solutions. City leaders need to build a genuine relationship of trust with citizens and stakeholders over the long term, especially when projects are contentious and have long gestation periods. It was also found that demystifying complex concepts like climate change through art projects etc. can help citizens to actively play their part in contributing to the development of green and resilient cities. Furthermore, cities can also capitalize on national government visions and projects to boost their city’s green development (for e.g. by linking their projects to national level policies, programs and infrastructure development).

To become competitive cities, cities should focus and identify and harness their unique strengths/ comparative advantages as opposed to following an overly ambitious strategy of trying to do everything all at once. Based on the overarching vision, cities should choose strategic projects in order to leverage their unique competitive advantage. Although, competition is increasing amongst cities there is also an emerging concept of the creation of intelligent territories where a cluster of (usually middle sized) cities within a region can take advantage of their geographical positioning and boost their overall competiveness through enhanced linkages, investing in key strategic projects which enable greater productive efficiencies and stronger links to the markets3 (for e.g. the Bilbao- Vitoria- San Sebastian cluster in Spain with enhanced connectivity due to high speed trains). Strong national level economic policies directed at creating enabling environments and removing excessive regulatory controls (for e.g. the development of advanced knowledge parks in Chengdu) also play a key role in enabling cities and city regions to boost their competitive advantage thereby attracting focused investments. However,

1 Information on SSCLF is also available at http://www.adb.org/news/events/south-south-city-leaders-forum. 2 The profiles of speakers, moderators and facilitators are available at http://www.adb.org/news/events/south-south-city-

leaders-forum. 3 Good inter-linkages between the cities in the regional clusters coupled with key strategic infrastructure developments and

connection to markets can help create intelligent territories with enhanced productivity and market linkages.

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such initiatives need to be linked to a clear vision for the city as this creates the magnetism for companies to invest in a particular city as opposed to another.

The message from the urban financing session was that cities should develop a range of innovative financing and income opportunities (for e.g. PPPs, citizens bonds, getting a credit rating in order to borrow from the market etc.) rather than relying on one major funding source such as funding allocations from the central government. Forum participants also heard how having a clear vision for their city was of critical importance in order to attract financing and investments from the private sector and other stakeholders such as institutional lenders. The session concluded that it is not a lack of funds but rather a lack of good projects to invest in, that was a detriment for cities. In this regard the importance of having projects aligned with the city’s vision and the proper packaging of these projects was found to be important in order to generate interest among the private sector. Furthermore, the involvement of stakeholders form the project conceptualization stage (particularly that of the private sector) was thought to be particularly important from the point of view of building a shared ownership, attracting investments as well as ideas and this involvement needs to be institutionalized.

The dialogue extended to the Peer-to-Peer session where forum participants discussed specific urban challenges that their cities are facing in smaller break-out groups. Through these facilitated discussions, delegates exchanged experiences and innovative approaches to tackling urban challenges in sectors ranging from water supply, urban renewal, solid waste management and sanitation, and environmental issues.

Some common threads emerged from the forum. In terms of governance, cities like Angeles (Philippines), Tangerang (Indonesia), and Cape Town (South Africa) demonstrated the importance of leadership and the need to engage citizens, private sector and other stakeholders to develop a shared vision for the city. City leaders need to think creatively and broadly to rally support for initiatives or projects, for example by injecting a sense of fun, or reframing urban issues to make them relevant to stakeholders. City leaders were reminded of the importance of transparency and accountability in their management and operational processes. The idea of having a defined social contract with their citizens was also introduced. There was also consensus on the need for strategic prioritization of projects so that resources and funding can be allocated efficiently. To do so, city leaders need to

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ensure that their communities and stakeholders such as private sector are meaningfully engaged in the decision-making process. The importance of integrated planning over a medium and long-term horizon was also emphasized in order to identify the most critical issues for immediate action and also provide continuity in project or program implementation.

The site visits in Metro Manila organized as part of SSCLF continued the themes of the forum by showcasing successful projects – (i) Competitive Cities: Makati Central Business District/Ayala Center and Bonifacio Global City; and (ii) Inclusive Cities and Green & Resilient Cities: Estero de Paco Rehabilitation Project, an ADB-supported project. The forum also featured a small photo & multimedia exhibition showcasing ADB-supported projects in cities in Asia and Pacific.

Site visit to Makati Central Business District/Ayala Center and Bonifacio Global City

Site visit to Estero de Paco Rehabilitation Project

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2 INTRODUCTION

Cities are engines of economic growth, generating over 80% of gross domestic product (GDP) in many countries of the Asia and the Pacific. Asia’s cities will become home to another 1.1 billion people in the next two decades. Over 200 million people now live in urban slums, and this figure is predicted to soar to 692 million by 2015. South Asia for instance, accounts for almost half of the world’s urban poor population. Many cities are struggling with environmental degradation, traffic congestion, inadequate urban infrastructure, and a lack of basic services, such as water supply, sanitation and waste management. Maintaining economic competitiveness, while creating inclusive, green and livable cities is the biggest urban challenge facing Asia. Solutions for increasingly complex urban environments require bold action guided by knowledge. SSCLF was formulated on the premise that solutions to the multiple and interconnected problems cities face must come from cities themselves. The objective of the forum was simple – to spread good ideas and experiences amongst cities, and to help build a strong network amongst city leaders, especially in developing Asia and the Pacific. The forum emphasized knowledge sharing of innovative urban solutions and practices, with a clear orientation on results and outcomes, and encouraged regional cooperation by building a strong network among city leaders in Asia and the Pacific. ADB’s support for sustainable urban development is guided by its long-term strategic framework, Strategy 2020.4 ADB’s new Urban Operational Plan5, which covers clean water, sustainable transport, energy, solid waste management, urban planning and financing. The plan fosters Competitive, Inclusive, and Green Cities to improve the performance of cities on the Economic, Equity, and Environmental (3Es) spectrums. The South-South City Leaders Forum thus supports ADB's Strategy 2020 and its’ Urban Operational Plan. FORUM THEME

City Innovation is the overarching theme of the forum with 4 sub-themes.

Competitive Cities

Green and Resilient

Cities

Inclusive Cities

Urban Financing

Inclusive Cities - expanding possibilities for people What are the needs of different groups of citizens? How can city leaders identify priority needs to respond to and balance differing needs? How can social integration and a stronger community fabric be woven and promoted? What kinds of initiatives to foster stronger inclusiveness have succeeded and what outcomes have they achieved?

4 More information on ADB’s Strategy 2020 is available at http://www.adb.org/documents/strategy-2020-working-asia-

and-pacific-free-poverty. 5 More information on ADB’s Urban Operational Plan is available at http://www.adb.org/documents/urban-operational-

plan-2012-2020.

CITY INNOVATION

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Green and Resilient Cities – urban regeneration What are the most effective and efficient means to manage environmental sustainability and resilience of a city? What forward-thinking planning is required for building resilience and reducing a city’s footprint? What are the priority areas to tackle in your city? How have initiatives to improve sustainable environment succeeded and what outcomes have they achieved? Urban Financing - developing new city investment strategies What are the key ingredients of the sustainable municipal financing framework that city leaders need to put in place? How have initiatives to expand funding sources, prioritize public investments and improve efficiencies succeeded? Competitive Cities - exploring new models for growth What are the key features of an economic eco-system that city leaders need to focus on for increasing city competitiveness? How are local economic development plans integrated with that for the region? How can city leaders ensure that economic development benefits a broad group of citizens?

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3 SETTING THE SCENE

Dr Bindu N. Lohani, Vice President, Knowledge Management and Sustainable Development at ADB gave an opening speech to set the overall scene and broad context for the forum.

4 CHALLENGES TOWARDS CLEAN CITIES: AN INDIAN PERSPECTIVE

From the presentation of Neeraj Mandloi, Joint Secretary, Urban Development, Government of India.

In the most recent decade, India experienced its fastest urbanization rate – the urban population grew from 290 million in 2001 to 377 million in 2011, an urbanization rate of more than 30%. The urbanization rate is expected to reach more than 50% in the next 20 to 30 years. Today, there are 4,041 cities in India, with the southern and western parts of India being more urbanized. To put this into perspective, India’s urban population is now larger than the total population of United States and second only to the urban population of the PRC. 60% of India’s GDP today comes from its cities. Contrary to earlier perceptions, we now know that rural-urban migration if addressed properly, can spur economic growth.

With the exponential urban growth in India also come opportunities. With close to 600 million people living in cities by 2030, 70% of jobs will be located in these cities. GDP is expected to multiply by 5 times. 91 million households will be considered middle class. 68 cities will have populations exceeding 1 million. It will be important for cities in India to be able to market themselves well. Larger cities are boosting their participation in the global economy, while smaller cities are absorbing most of the rural-urban migration and strengthening their linkages to the rural economy.

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Indian cities have many strengths. The democratic setup as well as a huge and growing middle class leads to a strong sense of ownership and active participation among its citizenry. The high density of mobile phone usage provides opportunities for e-governance. There is also relatively untapped opportunity for partnerships with the private sector. This can be supported by friendly government policies for foreign direct investments, joint ventures, public-private partnerships, technology transfers etc. One challenge however is the weak revenue base of Indian cities. Much of the GDP generated is channeled to the central government, rather than back to the cities. This leads to gaps in infrastructure and service delivery.

The Government of India has launched 5 flagship programs for urban areas – (i) Swachha Bharat Mission (SBM); (ii) National Urban Development Mission; (iii) Heritage Cities Program; (iv) Smart Cities Program; and (v) Urban Mobility Program. In particular, SBM or Mission for Clean India (mission as opposed to a program) has more autonomy, a more definite concluding date and a clear set of objectives. SBM emphasizes the link between sanitation and hygiene. Out of 4,041 cities, 36% currently have piped sewer system and 37% use septic tanks, while 6% have access to community public toilets. Open defecation is still practiced by 12%. Poor sanitation is associated with significant economic losses, estimated to be equivalent to 6.4% of India’s GDP in 2006. Under the National urban Sanitation Policy (NUSP), the Ministry of Urban Development has formulated Service Level Benchmarks based on international best practices and has shifted focus from building infrastructure to service delivery. Among Indian cities, 423 Class-I cities have been given a sanitation rating under NUSP. Although no city has yet achieved the highest green category, Chandigarh, Mysore, New Delhi Municipal Council and Surat fall under the second highest blue category. A second sanitation survey is in progress.

India has three tiers of government – federal, state and city government. Under SBM, the role of the federal government is primarily focused on developing an overall framework, setting standards and providing financial and policy support. State governments monitor and evaluate progress and provide an enabling environment for private sector participation. Urban Local Bodies (ULB) focus on citizen engagement, implementation and maintenance, as well as enforcement.

The components of SBM comprise of both ‘soft’ and ‘hard’ aspects. The soft components include people’s participation, campaigns for behavioral change, enabling private sector participation and capacity building. The hard or physical components comprise of building new individual household toilets, conversion of insanitary latrines into pour flush toilets, construction of community/public toilets, and integrated solid waste management. However SBM does not cover sewerage, as the time frame needed for development and construction is too long.

The soft and hard components go hand-in-hand. For household toilets, the Government has used milestones-based incentives approach – simply providing free toilets would not have worked. Of the total cost (INR 20,000) of building a toilet, the Government would provide funding of only INR 4,000-5,000 while the remainder would be contributed by the beneficiary household. , the Government is looking at PPP models for providing public toilets for the floating and mobile population, with operation & maintenance costs covered by user charges. For the urban poor and slum dwellers, community toilets are to be built near slums, and owned by the local community. In addition to providing land, the Government may provide up to 40% Viability Gap Funding to support such community toilets. For solid waste management, implementation as well as operation & maintenance will also be on PPP models, with the Government providing up to 20% viability gap funding. Segregation at source will be made mandatory or encouraged through incentives, in order to move towards 100% in recycling and reuse.

The Government has also set targets to develop 100 Smart Cities. This includes infrastructure components in sectors such as transport, energy, water and waste with linkages to energy efficiency in

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order to reduce energy consumption and carbon emissions. While the concept paper for 100 Smart Cities is currently being developed, the basic energy management framework for a smart city will comprise of managing energy demand, cleaner energy generation and the use of ICT technologies (eg. smart metering, smart grids) to create good livable, competitive and clean cities. In the water sector, according to Census 2011, over 8% of India’s urban households need to travel more than 100 m from their premises to access drinking water, which is a cause for concern. The current per capita availability of water is between 90 and 120 liters per capita per day (lpcd), below the Ministry of Urban Development benchmark of 135 lpcd, while the daily supply average is 4.8 hours. Most cities have a low level of metering of consumer connections and the national average is 25.7%. According to a World Bank report, non-revenue water in Indian cities is estimated to be about 40-70%. Online performance monitoring being implemented in some cities such as those in Gujarat will help to reduce non-revenue water loss.

In terms of waste management for smart cities, polices are needed to ensure that waste is converted into a revenue stream. These policies could include composting (e.g. compulsory reuse of compost, dedicated buying from cities, strengthening compost market and attracting investment from private sector), waste-to-energy schemes (e.g. incentive of INR 5-6 per kwh generated, subsidies over 2-3 year period to allow waste-to-energy plants to become financially viable), reuse and recycling (e.g. new legislation to make reuse of construction waste mandatory). Innovative financing schemes for water and sanitation are also needed. To attract private sector participation, the revenue stream needs to be strengthened for PPP operators. Through these efforts, the Government hopes to integrate waste, energy and water management for 100 Smart Cities in India.

5 GOOD URBAN GOVERNANCE FOR CITY INNOVATION

From the presentation of Erna Witoelar, Indonesian Former Minister of Human Settlements and Regional Development.

Since the late 1990s, there have been many concepts of governance for cities – green cities, smart cities, inclusive cities, resilient cities, healthy cities, compassionate cities etc. The concept of good urban governance is still alive. We can mix and match the concepts – like competitive cites and green cities – when the city is green, you can also attract good investments. There have also been many approaches adopted in different ways, such as social justice, popular participation, economic productivity, ecological sustainability, cultural vibrancy etc.

Good urban governance principles continue to be relevant. At the top of the list of good urban governance principles is participation – this refers to community participation, active engagement of all citizens, leaders, stakeholders, and the private sector. Participation is of utmost importance as it leverages on community involvement for better outcomes. A transparent, accountable and responsive governance system can enhance competitiveness and attract more investments. Sustainability allows a holistic approach, integrating social, economic and environmental considerations in urban planning. Local city leaders need a certain degree of local autonomy to promote better horizontal and vertical linkages, and enable cities to “do more for less”. While local

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autonomy is very important in allowing cities to work with their neighboring cities, the problem lies between national and local governments regarding the control of investments in cities.

In Indonesia, the decentralization process started in 2000. It involved decentralizing authority from the national level to 491 autonomous municipal levels (398 districts and 93 cities), with 34 provinces serving a coordinating function. The decentralization process recognized Indonesia’s diversity and widespread geography which made it unwieldy to run centrally. Indonesia also made a distinction between cities (which were fully urbanized) and districts (where the urban-rural ratio varied).

The decentralization of political, administrative and fiscal powers was supposed to enable municipal leaders to work with a more “manageable size” for service deliveries at the city level. But the decentralization of fiscal and political powers has not been an unmitigated success. The decentralization in Indonesia was a huge process, implemented suddenly and drastically after decades under a centralized government. Given the regional inequalities and capacities, many municipalities struggled to cope and corruption also became an issue.

Another breakthrough came in 2004 with the introduction of direct local elections. While it gave more power to local leaders and could have raised the risk of corruption, it has also brought good leaders to the cities. Many of the new generation of local leaders learnt from the mistakes of previous ones. Since 2004, direct municipal leaders elections have been held in over 500 regions, paving the way for better accountability. The process has produced a stronger competition, where city leaders prove themselves by making innovations in the way they govern.

Municipal leaders are now far more exposed to best practices and innovations of other cities in the country and around the world. City innovation does not mean we need to “reinvent the wheel”. It can be about employing existing practices but with a different approach – improving, enlarging, or adding a twist of something to your city – and it is innovative because of extra value you add. City leaders need to think of the nexus between sectors and not be limited to thinking only in sectors of water, energy etc. While the national level may still operate by sector, city leaders have the opportunity to adopt a more holistic approach at the local level. Cities also have more flexibility to explore innovative policies and practices as integrated solutions.

Recently, the East Asia Regional Organization for Planning and Housing (EAROPH) had their Congress in Jakarta, and recognized several cities & regencies for their best practices. These include:

● Bandung - “City for Young & Creative People”. The new mayor, Ridwan Kamil is an independent candidate who turned to social media to get elected in a city where 60% of the population is young. Some innovative practices that the mayor has put in place include “Bandung Fundays” with free bus rides for civil servants on certain days; no-smoking days in the city; speak English days at the office; and days for biking to work. The mayor has also

What changes and priorities would you

like to see in your city in the next 5

years?

Birganj, Nepal: Birganj is close to the

capital city of Kathmandu, and has a

population of about 136,000. The

municipality currently suffers from

flooding and water logging, traffic

congestion and waste water pollution.

We hope that Birganj will be free from

floods, road accidents will be reduced

and water pollution situation will be

improved over the next 5 years.

Hence the municipality has prioritized

sewerage and drainage development,

sewage treatment plant and road

projects under an urban

environmental improvement project

implemented in March 2014 with

assistance from ADB and the

Government of Nepal.

Bishnu Prasad Koirala,

Mayor/Executive Officer, Birganj,

Nepal

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initiated urban farming, and this has spread to the slums where vegetables are being planted in used pots. The mayor aims to introduce 150 apps for municipal services by 2015.

● Banyuwangi - “Tourism Development”. From being merely a land connection to the beach resorts of Bali, Mayor Abdullah Azwar Anas has managed to make the regency a more attractive place for tourists through eco-tourism, festivals, cycling tours etc.

● North Jakarta - “Resilient City”. Many previous governors had failed to clean up the water catchment (Pluit Reservoir) area in North Jakarta, but Mayor Heru B Hartono is restoring the reservoirs and working with illegal settlements under the bridge toll road. The cleaned up area has been returned to the public as public space. He has also initiated mangrove planting for coastal resilience.

In 2015, the UN will replace the Millennium Development Goals with Sustainable Development Goals (SDGs) including the goal to “make cities and human settlements inclusive, safe, resilient and sustainable”. The SDGs targets to be reached by 2030, include access to housing and basic services; access to sustainable transport systems, inclusive and sustainable urbanization, air quality, municipal waste management, resilience to disasters, access to green open spaces, and others. This presents a challenge, but also an opportunity for cities around the world to enhance their national, regional and global linkages and partnerships, and to build horizontal and vertical alliances. For city leaders, they need to create more value with fewer resources and less impact; continuously seek environmental improvements that generate social as well as economic benefits; and promote innovation, growth and competitiveness in cities while protecting the environment.

6 INCLUSIVE CITIES – EXPANDING POSSIBILITIES FOR PEOPLE

This session featured 3 speakers – Edgardo Pamintuan, Mayor of Angeles City, Philippines; Kinlay Dorjee, Thrompon (Mayor) of Thimphu, Bhutan; Hari Kiran, Municipal Commissioner, Vijayawada Municipal Corporation, India.

Speakers at the Inclusive Cities session with session moderator Arnaud Heckmann

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Some 520 million people in Asia and the Pacific region currently live in urban squalor and that number is expected to rise to 700 million by 2015. People are moving to cities everyday looking for better jobs, education, housing, and health services. But urban citizens may not get a fair share in the benefits of economic growth and progress of the cities where they live. Many cities in Asia and the Pacific region struggle continuously with slums, informal settlements, and dilapidated inner-city tenements while their economies try to modernize and develop.

The resulting urban sprawl seen in mega-cities like Bangkok, Delhi, Manila, and Mumbai, highlight the lack of affordable shelter options and access to land, especially for the urban poor. Informal settlements occupying areas vulnerable to impacts of climate change and natural disasters make the situation worse. There is a clear and urgent need for city governments to prepare for and address the needs of the urban poor in cities. While slums are being addressed in countries in Asia and the Pacific, much more remains to be done to create livable cities for all.

What makes for an inclusive city? How can cities be competitive when 50% of its population is not integrated into the city’s economy? Inequality can also create an unsafe environment that impacts the business climate. There are huge barriers to access that prevent people from being able to contribute, to be able to develop businesses and be integrated into society. The perception of being excluded needs to be changed and the urban poor and vulnerable need to be integrated in urban development issues.

Angeles City – Building from the Ashes | Edgardo Pamintuan, Mayor of Angeles City, Philippines

Angeles used to be a city of fun near the Clark Airbase operated by the US Air Force. But the fun ended when Mt. Pinatubo erupted in 1991 in the western mountain ranges of Zambales 25 km away. The city was devastated, but that was not end of story. In 1992, Mayor Paminutan personally rallied the owners of restaurants and entertainment establishments that were half-buried in ash to clean up and restart their businesses. Mayor Pamintuan organized a gig on the streets, and the first “Tigtigan, Terakan keng Dalan,” or Music and Dancing in the Streets was born. It revived the city’s will to rebound, and rise up from the ashes. Angeles City has since held the Tigtigan every year, the latest was held 24-25 October.

The city has since adopted the mobilization and involvement of the people as a key development strategy. Towards this, the city executed a social contract in 2010 – the Contract with the Angeleños, which outlined the key programs and projects to be implemented during the Mayor’s term. Mayor Pamintuan signed the contract in public, and the representatives of various people’s organizations and sectors counter-signed the document.

A key component of the Contract is education. There are 3,000 job vacancies Clark Freeport Zone alone. Yet there is a problem filling up these vacancies because of the mismatch between the qualifications of the available manpower and the skills needed for the jobs. So the City College of Angeles was set up to offer market-driven courses. Tuition fees are about PHP7,000 ($156) per semester, a third of those in private colleges and universities. Only 30% of people can afford to send their kids to private colleges, so through this initiative, poor families are given equal opportunities to quality education, which in turn can be their ticket out of poverty. The city also made arrangements with the Clark Development Corporation to give priority to the graduates for jobs within the Freeport. This school year, enrollment targets have been exceeded, despite the fact that Angeles City has many private colleges and universities.

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In health care, many thought the city should avoid operating a government hospital directly. But Mayor Pamintuan persisted and in 1993, the city started maintaining and operating the city hospital. A Renal Care Unit was also built and equipped with dialysis machines, funded by donations. The hospital charges only PHP900 (approx. $20) per treatment, much lower compared to that in private institutions. The extremely indigent can get free treatments. A new wing has recently been added to the hospital to house a cardio-vascular treatment center and a trauma center.

Angeles had to come up with innovative ways to finance the city’s infrastructure and services. The initial start-up funds for the college and hospital expansion came from an existing loan obtained by a previous mayor for the building of a sports complex which was no longer a priority by that time. Mayor Pamintuan was able to renegotiate for the loan to be diverted to building the college and hospital expansion. Students on government-subsidized programs can also start working after 2 years of college and continue to do part-time studies for up to 4 years and fund their own studies.

Angeles is a small city, with most of its 6,600 hectares already teeming with growing communities and increasing establishments. Yet, as part of the city’s Contract with the Angeleños, the city is implementing a project called One Million Trees, which aims to plant as many trees as possible in all available spaces. The city has received an outpouring of support, particularly from young people. Every possible space in the city has been converted into patches of green parks, largely through the efforts of volunteers from various groups and organizations, donations from private groups and individuals, and materials salvaged from scrap and recycled concrete and lumber. The city now has a garden park, at no cost to the city government. The city is also developing a Heritage Center in the old city center where surviving relics and edifices are being restored and revived, again with the help of many private organizations and institutions.

The city’s strategy of involving and engaging its people is clearly seen in the decision making process of the city government. There are regular consultations with various sectors and organizations, and a very active gender and development program. The city has an Angeles City Multi-sectoral Consultative Council that serves as a sounding board and feedback mechanism for the city’s policies and programs. Policies on traffic, market management, peace and order, culture and the arts and even tourism promotion evolve through consultative governance and engagement of various stakeholders. All private citizens who want to participate can be involved in boards like the Traffic board etc.

Angeles is now among the few highly-urbanized cities that is no longer dependent on the Internal Revenue Allotment (IRA).6 The ratio of the city’s internally-generated revenues to its IRA is close to 60:40. The city’s revenues have grown from PHP300 million (approx. $6.7 million) in 2010 to PHP600 million (approx. $13.4 million) this year. Next year the city expects to achieve a revenue of PHP1 billion (approx. $22.3 million). At a national level, the idea of inclusive growth is still an aspiration. But at the local level, by adopting the strategy of engagement, involvement and mobilization of the people, Angeles has shown that a city can make such aspirations real.

Gross National Happiness Index of Bhutan | Kinlay Dorjee, Thrompon (Mayor) of Thimphu, Bhutan

One of the main pillars of Bhutanese society is the preservation of Bhutanese culture, traditions, family values and way of life. Bhutan has conducted 2 rounds of surveys which show that 70% of its citizens are happy. All of Thimphu’s governance initiatives and policies are thus geared towards sustainable equitable development, and preserving the environment.

6 Internal Revenue Allotment (IRA) is a local government unit’s share of revenues from the Philippines national government.

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As Mayor of Thimphu, the aim is for citizens of the city to benefit from the city’s services, and to eradicate urban poverty. There are various support systems such as providing street vendors and hawkers with proper spaces for their businesses, and working towards legalizing their operations. The city has also started a project for low income housing for 300 of the city government’s workers who currently live in informal settlements and tenements in poor conditions – that is considered significant for a small city like Thimphu with a population of about 130,000.

The city is also developing recreational places where both rich and poor can come together and socialize, although there is a shortage of available land for public use as 80-90% of the land is privately owned. To overcome this, the city is now trying to pedestrianize Norzin Lam Street to create public space to be enjoyed by everyone. Socialization at this stage of modernization is seen as very important for the city as the sense of neighborliness is being eroded. There are plans to make the city more pedestrian friendly, so that the city is accessible to the poor. The city is also looking at building a good public transportation system, possibly using electric buses. But the city is currently struggling to garner enough support for its plans, for example, in solid waste management and public transport. As a pilot project, the mayor is trying to get local leaders in one locality to make plans and take ownership for maintaining infrastructure and services.

The economic drivers of the city are government services, corporate services and headquarters, services sector and a growing tourism industry. The city is relaxing some regulations on industry in the city and bringing in some non-polluting cottage industries to boost youth employment. Empty plots in residential areas in the city can be converted to other land uses to provide job opportunities, while ensuring that the environment is protected.

Housing the urban poor in Vijayawada City | Hari Kiran, Municipal Commissioner, Vijayawad Municipal Corporation, India

Vijayawada is located in the state of Andhra Pradesh in the southeast of India, about 50km from the coast. In June 2014, Telangana was separated from Andhra Pradesh as a new state of India with Hyderabad as its new capital. Hyderabad will continue to serve as a joint capital for Andhra Pradesh and Telangana for not more than 10 years. A new capital for Andhra Pradesh is being planned close to Vijayawada in the Guntur-Vijayawada region.

Vijayawada currently has a population of 1.04 million in an area of 61.88 km2, with a population density of 16,930 per km2. The city has 3 canals and 1 rivulet originating from the Krishna River. About 20% of the population lives in 111 slums in the city, most of which are located along the canals. Vijayawada has a relatively high proportion of slum households (40.6%) to urban households as compared to other Indian cities of this size. There are opportunities to convert these slum areas along the canals and rivulet into recreational areas. The city’s objective is to shift people from these areas which are also flood prone. One key challenge is the lack of available government land for housing development. Given that land in the Vijayawada region is fertile, private land is expensive, but at the same time, the houses for resettlement needed to be close to the city so that residents can maintain their socioeconomic links to the city.

The Vijayawada Municipal Corporation (VMC) adopted a PPP model for housing – the first time it has been used in India for this purpose. Under a farmer-government partnership model, land was acquired from farmers to build houses for slum dwellers. Given the high cost and lack of available land within the city limits, Jakkampudi was selected as it is only 1 km from the city. Land of 226.54 acres (91.67 ha) was acquired from 169 farmers in Jakkampudi village– the farmers agreed to give up 40% of their land for the building of houses, in return for 60% of the land developed with infrastructure. The

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transaction did not involve any cash component. The Jakkampudi housing project came under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM) which was launched by the Government of India in 2005 with the aim of encouraging reforms and fast-tracking planned development of identified cities.

The cost of Jakkampudi housing project was INR 2.5324 billion (approx. $ 40 million). To date, 7,872 flats have been completed and another 736 flats will built by March 2015. Each housing block has 32 flats in 4 stories. The average carpet area of the flats is 28 m2 with a living room, bedroom, toilet and utility area, and is considered sufficient for a household of three. Public infrastructure has been provided, including water supply facilities, sewerage system, power lines, roads and bus bay, street lighting, school (with solar panels) and health center, community hall, commercial complex, market place, playground etc. To date, about 4,000 families have already moved into the housing project.

However it took prolonged negotiations with the slum households before they agreed to relocate to the housing project. The INR 200,000 ($ 3,154) cost of a flat in the housing project is 70% subsided by Government of India. Hence the slum households pay only INR 66,000 ($ 1,040) as the cost of the flat. Under the registration act, the flat is registered in the name of the beneficiary after payment and is only transferable by inheritance which prevents sub-sales by the beneficiaries. This arrangement is adopted across India for urban poor housing projects. There was initial resistance from slum households as their children were attending schools near the slums, but VMC ensured that the new housing project would also have a school. There were also concerns about higher commuting costs as the housing project site is at the periphery of the city. VMC again demonstrated to the slum households that transport costs would be offset by lower expenses on health care and sewerage services etc. in the new housing project. Jakkampudi is outside of the city limits, and the maintenance of the housing project eventually has to be taken over by the local panchayat, although the handover has not taken place yet.

What are the most significant changes in

your city in the last 5 years?

Hue, Vietnam: Under the strategy of

becoming an economic “powerhouse”

for the region, the urbanization process

has accelerated with a focus on

beautifying the city’s urban landscapes

and monuments, establishing new

urban zones, enhancing citizens’

awareness about sustainable lifestyles

etc. Roads have been built to improve

inner-city traffic as well as link Hue to

other cities in the region. Thanks to the

city’s many cultural and historical

monuments, the local authority is also

prioritizing heritage conservation, and

the city’s network of traditional garden

houses have been restored.

Duong Thi Thu Truyen, Deputy Director

of Thua Thien Hue Department of

Planning and Investment, Hue, Vietnam

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The land pooling mechanism is a key aspect of the project and is now being adopted by Andhra Pradesh state government to provide housing in other areas. While there is no specific land pooling policy at the federal government level, some states such as Punjab and Haryana have legislations which cover the modalities for land pooling. Andhra Pradesh does not have such specific land pooling modalities but the state has a land acquisition act that allows the government to acquire land for public use. In Jakkampudi, the farmers were initially reluctant to part with their lands. When VMC gave notification to acquire 200 acres (80.93 ha) of land, the farmers went to the High Court to file their objection, and the court gave a stay order. When the next 200 acres were notified, the farmers again went to the High Court. This process was repeated with subsequent notifications of land acquisition. But in parallel, VMC was in negotiations with the farmers. A breakthrough was finally reached when a total of 1,100-1,200 acres (445.15-485.62 ha) had been notified, and the farmers agreed to part with 200 acres. Nevertheless the process of acquiring land alone took 1.5-2 years. The farmers are now also pleased that the land price has risen due to the development and the announcement of location of the new state capital.

LEARNING POINTS

Community involvement, a public contract with people and private sector involvement are pillars of success for an inclusive city. Community engagement is a necessary process, but can take time. Without a proper community involvement process, the city government may lose the trust of the people. City leaders need to be able frame the city’s issues and projects in interesting and relevant ways to get people interested and involved. In Angeles, public participation in planting more trees has also been a way for the city to weather periodic storms. In Thimphu, the most challenging part to achieving its happiness goals within an urban development context has been changing mindsets towards public participation. In Vijayawada, it was critical to thoroughly convince the slum households of the benefits of moving to the new Jakkampudi housing project.

Good governance and leadership are crucial to defining a common vision and goals for an inclusive city. A key component is the presence of far-sighted and sincere leaders who are able to put the right framework in place. Good leaders are able to galvanize people into action. The case of Thimphu also demonstrates how city leaders can translate an overarching national goal of happiness

Development of Jakkampudi area

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into a vision and related urban development goals for the city. Good urban development models can be replicated if the conditions are right. In the case of Vijayawada, VMC had to ensure that the housing project was not located too far from the city.

Urban planning is important for inclusive service delivery that reaches out to the urban poor. In Angeles, most people need prompt medical assistance, so the city administration went ahead to expand the city’s medical facilities and provide subsidized treatments, despite significant challenges. People in the city now do not need to travel to Metro Manila for expensive treatments. This is one area where support from the national government, for example through co-funding of infrastructure and services, would make a strong positive impact.

7 GREEN AND RESILIENT CITIES – URBAN REGENERATION

This session featured 3 speakers – Arief Wismansyah, Mayor of Tangerang, Indonesia; Bulelwa Makalima-Ngewana, CEO, Cape Town Partnership, South Africa; Myounggu Kang, Professor of Urban and Regional Planning, University of Seoul, South Korea

Cities occupy only 2% of the world’s land but consume 75% of the planet’s resources and generate a similar percentage of waste, including air pollution, solid waste, and toxic effluents. Three of the top five carbon dioxide emitting economies and 11 of the 20 most polluted cities in the world are in Asia. In many Asian nations, losses from traffic-related congestion amount to 5% of Gross Domestic Product. The environmental impacts are magnified in poorer cities where pollution is worsening, infrastructure development lags demand, and basic public services such as water connections and solid waste disposal are not widely accessible. In many cases, a poor environment exacerbates the city’s vulnerability to disasters such as flooding and disease.

Speakers at the Green and Resilient Cities session with session moderator Jingmin Huang

Living in a region undergoing rapid urbanization, city governments and citizens are increasingly waking up to the reality that urbanization and economic growth needs to be environmentally sustainable and affordable – a dramatic shift from focusing on economic growth to focusing on quality of life. This can be accomplished with better planning, effective implementation and suitable technology. In this case,

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the focus of urban regeneration is on how urban planning and redevelopment initiatives can support environmental regeneration and resilience of cities. The Urban Climate Change Resilience Trust Fund, a multi-donor trust fund managed by ADB helps medium-sized cities in Asia to build up resilience to the effects of climate change. ADB has also piloted green city initiatives in Southeast Asia to help cities in Vietnam, Malaysia and Myanmar develop green city action plans and prioritize city investments.

Towards Tangerang Livable City | Arief Wismansyah, Mayor of Tangerang, Indonesia

Tangerang is a city of 1.9 million, located about 25 km west of Jakarta. Known as an industrial city, Tangerang saw a GDP growth of 6.5% in 2014. The population growth stands at 4.17% per year and the urban density is about 11,659 per km2. Tangerang also hosts the international airport which occupies 10% of the city area of 184.24 km2. The city boosts a good transportation system and connectivity, and new airport trains running from Jakarta are expected to be in place in 2015. The city is also putting its Light Rail Transit (LRT)/monorail system up for bidding next year, and there will also be 5 toll roads built in Tangerang.

At 37 years old, Mayor Wismansyah is one of the youngest mayors in Indonesia. In Tangerang, the city government believes that happy people make for a happy city, and has implemented Tangerang LIVE consisting of 4 programs for the city’s development – “Livable”, “Investable”, “Visitable” and “E-City”.

In particular, the “Livable” program is strongly pro-people. In 2007, Tangerang was one of the dirtiest cities in Indonesia as classified by the Ministry of Environment. The Tangerang city government joined forces with various stakeholders to promote awareness of a clean and healthy lifestyle to the community. Through the Go Green and Clean City Program, Tangerang is promoting cleanliness and greenery in residential areas. A waste bank program was started in 2012 and there are now 180 waste banks which enable residents to recycle and make earning from their waste. Public areas in Tangerang are beautified and turned into recreational areas for communities and have provided more public sports facilities. Children and students are encouraged to help decorate the city. The city has also introduced urban farming through the Tangerang Gardening Program. The city also plans to implement flood prevention initiatives to keep the city free from floods within the next 3 years.

In 2009, Tangerang City received an award for best effort towards making the environment cleaner, among other cities and districts in Indonesia. In 2010, 2011 and 2012 Tangerang City was awarded Adipura in cleanest metropolitan city category. In 2013, Tangerang City received Adipura Kencana

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Award which is the highest award for city hygiene and environmental management. Tangerang City Government has also won Regional Environment Facility awards for its waste management program.

Under the “Livable” program, medical services are also provided to all citizens who hold a city identify card. With the card, they can approach any of the 33 city hospitals or 4 hospitals in Jakarta for free or subsidized treatment. In Tangerang, each village is also served by its own clinic. Villages are given incentives of up to $ 300 every year to encourage them to implement some of the programs. The remaining cost is covered by the beneficiary communities.

There are 13 districts and 1,000 kampongs (villages) within Tangerang. To get buy-in from the villages, the city government first makes them aware of the city’s programs and encourages the villages to join more programs in order to access a wider range of benefits. For example, if some citizens want road paving, they are also encouraged to join other programs such as Go Green and Clean City Program. The village community typically holds a meeting and the village head has to sign an agreement to show their commitment. While not everyone is initially keen to join the programs, they usually become more interested after consultations with the city government and after seeing the benefits of the programs. The city government is also making sure that the community maintains the infrastructure as a form of community empowerment. For example, for street lighting the city provides basic infrastructure like the pole and light bulb, while the community is responsible for installing the lighting. The energy bill for the street lighting is covered by the city government.

Cape Town – The Resilient City | Bulelwa Makalima-Ngewana, CEO, Cape Town Partnership, South Africa

Cape Town celebrated 2 decades of democracy in South Africa in 2014. South African cities have had an additional burden as they were developed for racial segregation under apartheid. Cape Town was physically designed for separation and exclusion, but the city has been using urban design to transform Cape Town into an integrated and more socially inclusive city.

Cape Town Partnership (CTP) is a not-profit institution which links private sector, government and civil society. In 1990s, the downtown area of Cape Town was being deserted by the private sector and that was when the CTP was formed to drive a program of urban regeneration of the city. In the last 20 years, CTP has helped to revitalize the economic viability of the city, putting people at the forefront of this change through collaborative efforts with its partners. CTP gets its’ funding by 3 main income sources – grant funding (from private sector partners), project funding and income generation opportunities (such as parking management, public spaces, e-vending).

CTP engages Cape Town citizens regularly by identifying critical issues and then demystifying those issues and drawing the links to the various stakeholders. In particular, with the Low Carbon Strategy, the challenge was how to help people see the importance of their own actions in their own backyard. The issue of climate change would be overwhelming for an average citizen, so CTP looked instead at what could be done by individuals to mitigate carbon impact. CTP used data produced by public and private sectors to project how different actions would impact future carbon emissions in the central city.

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To engage citizens in mitigating climate impact, this data was presented in easy-to-understand infographics and visual representations. The message was that no matter how small you think your contribution is; it can make an impact. CTP also activated engagement with citizens through various ways such as public events showcasing the day-to-day changes one could make.

The Green Clusters initiative supported the creation and preservation of green spaces and facilities in the Table Bay Planning Area and supported sustainable food production in the Western Cape. CTP developed partnership-driven mini-projects within the Green Clusters initiative, such as the Food Dialogues Report. CTP also identified other like-minded government agencies doing work in sustainability and the food value chain and partnered with them (eg. 110% Green).

There is an active population of citizens who want to help city leaders in developing their cities. The challenge is to design programs that allow citizens to feel that they are not passive participants, but are very much involved in the process and outcomes.

Seoul – Urban Resilience: Thinking Outside the Box | Myounggu Kang, Professor of Urban and Regional Planning, University of Seoul, South Korea

The Cheonggyecheon area in the middle of the city of Seoul has gone through many transformations over time. 60 years ago, the most important function of Cheonggyecheon stream was drainage and flood prevention. With the population growth in Seoul over the years, waste management and sewerage problems grew. With subsequent industrialization, Cheonggyecheon stream was covered over for road construction in 1958, and was used asan elevated highway between 1967 and 1976. Starting in the early 1990s with the 600th anniversary of the establishment of Seoul as the national capital, the city experienced a change in thinking about environmental protection. By 2000 as the downtown area of Seoul was being hollowed out, the Downtown Management Plan started the restoration of the Cheonggyecheon area.

The Cheonggyecheon Restoration Project was officially launched in 2003 and the highway was demolished and the stream restored. The restored Cheonggyecheon area was opened to public in 2005 as a green waterfront park. There are now plans for Cheonggyecheon eco-stream restoration plan. Today, the area helps to reduce ambient temperatures in the city and the area can be up to 5 degrees cooler than its neighboring areas. The Cheonggyecheon restoration project has also boosted development in the city. Before the project, land prices in the area were in decline, but land values and office rents have increased in tandem with the regeneration of the area. The project has also spurred new developments in the surrounding areas.

The Seoul metropolitan government faced a huge challenge in bringing the restoration project to reality. Besides budget and time pressures, historical preservation was also an

What are the priorities and changes

expected for your city in the next 5 years?

Mandalay, Myanmar: Over the next 5

years, Patheingyi township will be

included under the responsibility of the

Mandalay City Development Committee

(CDC), making Mandalay CDC responsible

for a total of 7 townships. Mandalay faces

serious problems in water supply and

waste water management. The city is

prioritizing new infrastructure

development and upgrading its water

supply system, drainage and flood

protection, waste water management,

and solid waste management. The city

administration is also raising its

institutional capacity and public

awareness. My personal aspiration for

Mandalay is for the city to achieve

significant improvements under the 100

Resilient Cities program sponsored by the

Rockefeller Foundation.

U Han Soe, Mayor, Mandalay, Myanmar

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issue as the area was in the middle of the old city. Three different interests were involved – historic preservation, practical constraints (such as budget and time), and future development of Seoul. If these 3 interests could not be balanced, the project would likely fail. Hence planning and leadership were critical to the success of the project. At one point, the interest group for historic preservation decided to quit the discussions, but was later persuaded to come back to the negotiating table. Private land was involved, and the city had to undertake land pooling and readjustment which at times put the city government at odds with the private sector.

One success factor was the decision by the city to focus on creating public space and to utilize public land. With Cheonggyecheon, the city focused on making visible positive changes within limited resources and time, balancing between long term goals and what was do-able in the short term. The project spanned 3 years from when the planning started to the completion of restoration. While the planning stage took less than a year, the actual restoration process stretched over 27 months. One challenge was persuading various stakeholders about the merits of the project. There were many concerns from residents and business owners which required detailed consultations to build consensus. The project also had to be able to accommodate a multitude of environmental considerations raised by various groups. The city government had to consider flooding risk – city planning in Seoul used to plan for a 50-year flood-line but because of climate change, the benchmark had been increased to 200-year flood-line, which means that drainage systems like Cheonggyecheon need to be expanded. While there have been other cities in Korea that have tried to make similar urban

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transformations, one major difference with Seoul is that Cheonggyecheon was not an under-utilized area. The biggest opposition came initially from road users as the project involved removing 16 lanes of roads in the middle of Seoul. As it turned out, traffic flow has actually improved after the removal of the lanes, largely because it had changed the citizens’ perspective and behavior, and more people were now willing to use public transport. The second phase of the Cheonggyecheon project will involve broader collaboration including more private sector parties. In preparation for this, the Seoul city government improved awareness about the project by demonstrating results through before-and-after surveys which included questions about the increase in economic value of the area. Citizens are now more supportive of the project.

The Cheonggyecheon case study illustrates the 3+1 goals of growth, green and justice that supports a sustainable city, with urban planning as an innovative synthesis. These 3 goals can contradict with each other. For example, we can improve economic growth, but this may adversely affect green and just city goals. The key to the success of the project has been innovative integration to optimize outcomes across the 3 dimensions. The experience of Cheonggyecheon demonstrates the need for the government, private sector and citizens to collaborate to find a win-win solution.

LEARNING POINTS

The involvement of citizens and stakeholders is a key component to building green and resilient cities. City leaders need to build genuine partnerships across sectors and stakeholders through dialogue and sharing the credit in successful projects. The experience of Cheonggyecheon highlights how constructive dialogue between various stakeholders can enable the implementation of a contentious project. In the case of Tangergang, the city leveraged on public participation to transform from one of the dirtiest cities in Indonesia to one of its’ cleanest.

Building trust is one of the biggest challenges in a public-private-people collaboration for making green and resilient cities. The involvement of citizens, stakeholders and partners helps to establish and reinforce trust for successful partnerships over the long term. As in the experience of Cape Town, it is also important for city leaders to be able to demystify complex environmental issues such as climate change and demonstrate how such issues affect people and the actions that they can take in their day-to-day lives. City leaders need to continuously engage partners and stakeholders in dialogue and consultations as well as share credit for the successes.

Long-term plans have to be combined with short-term actions. While some projects have to be developed over the long term, city leaders can demonstrate small scale results in the short term to build support for the projects. Cities can also leverage on national projects aligned with their development and environmental plans.

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Panels speakers at the Urban Financing session with session moderator Joris van Etten

8 URBAN FINANCING – DEVELOPING NEW CITY INVESTMENT

STRATEGIES

This session featured 3 panel speakers – Eleazar Ricote, Deputy Executive Director, Public-Private Partnership (PPP) Center, Philippines; Yumiko Noda, Partner, Head of PPP and Infrastructure (Asia Pacific), PwC Japan, Japan; Tep Makathy, Project Team Leader, Green Goal Lta (ADB-CDTA-8121: Capacity Development for Urban Management in Cambodia), Cambodia.

Cities often face a mismatch between fluctuating revenues, and swelling costs of infrastructure, basic urban services and social services. ADB Institute has estimated that Asia needs US$750 billion a year for 2010–2020 to fill prior gaps and keep pace with the unprecedented urban new infrastructure growth in Asia. Over half of this is needed for municipal infrastructure. Much of the infrastructure and services are often far from recovering costs for political or social considerations, contributing to poor financial management. Next to lack of investment, cities may make poor investment choices or invest inefficiently – whether led by public or private sectors – based on a misguided belief that supply creates demand. At the same time, cities and municipalities do not stand alone but are part of complex regional, national and global systems and flows. Responsibility for infrastructure service provision is shifting to subnational governments, but often without corresponding decentralization of finances. There is also room for more private sector participation and commercially priced finance to take on a larger share of urban infrastructure projects, but the public sector needs to maintain oversight, and offer a sound and stable regulatory environment to ensure the success of such Public-Private Partnership (PPP) projects. From the opening remarks of Eleazar Ricote, Deputy Executive Director, Public-Private Partnership (PPP) Center, Philippines

The PPP Center is a major institution helping local government units (LGUs) and the national government in the Philippines to realize infrastructure plans. The Philippines has a national policy and legislation on PPP which empowers LGUs to enter into PPPs not only for infrastructure, but also in health and education sectors. The typical approach among cities has been to look for funds right at the start of the project. The PPP center is now trying to change that mindset to say that if the city has a properly prepared project, they city can get funding during the preparation of the project. But there are still limited takers for PPPs in the country. One way to address this is to set up a unit within LGUs to

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focus on working with the private sector and to start seeing PPP as a viable urban financing option for cities.

From the opening remarks of Yumiko Noda, Partner, Head of PPP and Infrastructure (Asia Pacific), PwC Japan, Japan and former deputy mayor of Yokohama, Japan

The city of Yokohama has grown to be the second largest city in Japan after experiencing extremely rapid urbanization between the 1960s and 1980s. Its population grew from 1 million to 3 million within 35 years. In the 1970s, the city was plagued by huge housing shortages, traffic jams and severe pollution.

The city also faced a considerable shortage in funding at the time. One of the things the city did first was to prioritize financing for 6 strategic projects – such as rail and road infrastructure, housing and development of the central business district – that could generate cash flow and increase in value over time. The city also turned to multiple sources of funding, including tax revenues, bond financing (including a “citizen” bond), central government grants, private sector financing and PPPs. For example, the city allowed the private sector to enjoy development benefits particularly in the transport sector in return for their investments in developing transport networks. This was further supported by the city government’s transport oriented development plans to make Yokohama more than just as a suburb of Tokyo.

PPPs have also been used to deliver water purification and this was the largest PPP of its kind at the time. Yokohama was the first city in Japan to receive a credit rating from Standards & Poor’s. In another example of innovative financing, the city issued “citizen” bonds to engage the citizens and allow them to invest in the city’s wind power projects. A large wind power plant nicknamed Hama-Wing was set up in the city center in 2007 to demonstrate the importance of renewable energy to the citizens. Only Yokohama residents were allowed to purchase the bond and bond holders were even offered a tour of the wind power plant. Some 40% of the project funding has come through this citizen bond financing. Today, Yokohama is considered to be one of the most livable and smart cities in Japan, and has won several awards including World Bank’s World Eco2 City and Lee Kuan Yew World City Prize 2014 Special Mention.

From the opening remarks of Tep Makathy, Project Team Leader, Green Goal Lta (ADB-CDTA-8121: Capacity Development for Urban Management in Cambodia), Cambodia

Cambodia’s urban population is expected to double by 2030, and the urban share of the national economy is expected to rise to 70 per cent. Phnom Penn is a high density city of more than 2 million, and has experienced rapid economic growth in the last 10 years. In terms of local governance, local leaders at the commune level are elected by the people. Local leaders are expected to deliver municipal services and infrastructure projects, but funding support from the national government is limited.

In 2003, the previous mayor of Phnom Penh felt that instead of waiting for funding from the national government, he started local road construction and drainage projects using a community funding model where the project budget was shared 50-50 between local residents and the city government. Each household would share a certain amount of the project budget calculated based on total costs for construction of roads and drainages in their locality. The project has to be initiated by Commune Council of that particular locality and the Commune Council works directly with local residents to establish the share each household needs to pay based on the length of road in front of their house.

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So far, the practice has been accepted by residents because through this initiative many red soil roads in the periphery of city had been converted to concrete roads which last much longer. More and more people have started to accept and adopt this funding model. As a positive spillover effect, people now have a better understanding of the technicalities and are willing to invest more for other infrastructure such as drainage systems. With rising incomes and a growing middle class, people are more willing to pay for better roads.

The Cambodia Ministry of Land Management, Urban Planning and Construction (MLMUPC) and ADB are working on an outreach and capacity building program for educating local authorities. ADB has initiated a 2-year capacity development program in municipal operations and long term planning for 9 out of the 27 municipalities in Cambodia. This program is applicable to cities of 1-3 million population.

Municipal financing models in other cities

The forum participants were evenly split in their response on whether the urban financing issue was one of a lack of available funds, or a lack of good projects. Nevertheless the use of PPP was relatively wide spread among the cities represented at the forum – almost two-thirds had employed some form of PPP for urban infrastructure provision, although public funding remained the main source of financing for more than 80% of the cities. Only about half the forum participants had tried to improve the internal financing capabilities of their city and/or improve access to non-public, external sources of financing for their cities’ urban investments.

In Angeles city, the mayor provided land for building a renal hospital near the existing general hospital, while the private sector provided the infrastructure. The mayor also formed a task force to negotiate with the biggest landlord in the city to release a blighted area for new development. Another task force got builders to start work on the blighted area. The city government was clear that it would not fund the building of new roads if stakeholders did not collaborate in these projects.

For cities in Nepal such as Dharan, a lot of public infrastructure is funded through a model similar to that in Phnom Penh. In Nepal, local residents usually contribute about 40% of the project budget. There is now a noticeable trend of local communities requesting the municipality to implement infrastructure projects, and are sometimes willing to increase their share of the budget to 60%. Even so, the municipality may not have enough funds to initiate these projects.

Is the problem a lack of good projects or a lack of money?

Yumiko Noda: The real problem has been a lack of good projects. In Japan, funding is available from the Japanese government and Japan International Cooperation Agency (JICA). In particular, JICA has a new private sector investment fund that is specifically targeted at PPPs. But we need projects to be

What are the major changes in your city in

the last 5 years?

Chuadanga, Bangladesh: There have been

significant improvements in transport, eg.

a regional highway linking the municipality

to other parts of the district has been

constructed, street lighting has been

installed over a 5-km stretch along the

main road, parking points and a truck

terminal have been established etc. More

than 15 km of drainage systems have

been built to reduce water logging in

many parts of the municipality. A new

and safer area has been set aside as public

and meeting space for the municipality.

The municipality administration has also

started collecting tax and levies through

the banking system.

Reajul Islam Joarder, Mayor, Chuadanga

Municipality, Bangladesh

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designed for PPPs. PPPs should really be looked at in 2 ways – (i) getting private financing for free standing projects and; (ii) getting private sector skills and efficiencies for purpose of reducing taxpayers money as well as bringing “discipline” in infrastructure projects. In reality, not many infrastructure projects are free standing – cities should invest in strategic projects in advance to create value for cities with a clear vision and strategy. But the private sector is still cautious, especially when the long term demand risk for say, the next 30 years is extremely hard to assess. The poor transfer of demand risk between public and private sectors has been behind most PPP failures.

Eleazar Ricote: In the Philippines, the PPP Center actively promotes PPP projects. Investors are coming to the PPP Center to seek investment opportunities, but the problem is a lack of good bankable projects available. LGUs need to be able to package projects to make their projects attractive for private sector investment, as in the case of Angeles city where the mayor was able to make land available for development.

Tep Makathy: In terms of project packaging, proper environmental impact assessments (EIA) need to be done for the project, but LGUs do not want to invest in expensive EIAs to develop the project proposal. Cambodia has a PPP law that should be attractive to the private sector. But where should the good projects come from? LGUs may not have sufficient capacity to propose viable projects. The disconnect between public and private sectors tend to lie in project readiness and project packaging.

Are cities putting in place initiatives to improve their internal financing ability?

Cities in Bangladesh are improving their financial management system and improving their collection rates. For example, taxes were previously collected in cash. Taxes and fees are now collected through the banking system. There has been a 20-25% improvement in collection rates, as people now find it easier to pay.

In Colombo, when the municipal council needed to collect a wastewater fee, it did awareness campaigns. But council approval is needed for new taxes or user charges, so it can become a political issue.

What are some new initiatives for getting external (non-public) financing?

Hue is in a mountainous area, which makes it difficult to build road links. The private sector found it commercially attractive to build the road links between Danang and Hue, so the roads were funded through a Build-Operate-Transfer (BOT) model. Similarly the BOT model is used in Mandalay to attract private sector financing. In the city of Nepalgunj in Nepal city which has a population of 75,000, the city has a town development fund, but has also been able to tap into external funding support for the construction of the town hall, bus station and health center.

Tangerang has been working with World Bank and other international development agencies to map out future plans for the city. But to be realistic, the city still has to wait for adequate financing to be lined up. While the city has submitted project proposals to the central government and feasibility studies are being done, there are still some issues to be ironed out with the central government. Cities need to push their central governments, so that the cities can develop faster.

Yumiko Noda: There is no one single solution – cities have to tap into every possible funding opportunity, from multinational financing (e.g. ADB), bond financing, private financing, tax revenues etc. Implementing user charges can be politically difficult, especially if the city has been providing the

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service for free. Even raising user charges would not be easy. So cities need to win the understanding and support of citizens by explaining the situation to its citizens; it comes back to community engagement. Cities also need to do more to enhance project feasibility and creditworthiness through instruments like tariffs and enhancing relevant legislations. If a city leader can demonstrate that this is a city with potential, the private sector would be willing to invest.

Tep Makathy: In some cases, the central government can seize the opportunity to borrow on behalf of its cities. For example, the Phnom Penh Water Supply Authority (PPWSA) borrowed from international donors and managed to get financing from the World Bank. PPWSA is now listed on the stock exchange and has been privatized.

Eleazar Ricote: Depending on the powers of the local government, some incentives can be structured to entice private sector to participate, for example by establishing economic zones or by improving management of the relevant operations. LGUs which are financially well-managed and have transparency in their operations and governance systems would help to build up trust from the private sector. So the capacity of the local government is very important. Projects also need to have very clear revenue streams. In this respect, cities in the Philippines are still behind Yokohama. While a healthy city balance sheet or bankability of the LGU is an important criteria for PPP projects, the cash flow and revenue stream of the project is also critical as it demonstrates the project’s financial viability. In some cases, national governments can also provide funds. In the Philippines, a Contingent Liability Fund has been set up as a guarantee to the private sector to boost their confidence in the project. Funds can be drawn if the government breaches its obligations for PPP contracts. There is also a revolving fund – Project Development and Monitoring Facility – that supports LGUs in pre-investment activities to improve project viability and bankability. The funding is reimbursed by the private sector after a successful bidding.

LEARNING POINTS

The financing issue has often more to do with a lack of good projects, rather than a lack of funds. Private sector financing should be seen as complementary resource alongside a city’s internal funding. There are many examples of innovative financing options such as citizen bonds in Yokohama, PPPs in the Philippines and public-people partnerships in Phnom Penh.

Projects need to be properly prepared for PPP. In order to develop properly prepared projects, cities need to carefully consider the projects risks and expected cash flows. There are resources and support available to cities whether from agencies like the PPP Center in the Philippines, or multilateral organizations such as CDIA and ADB, or even professional advisory firms. Cities should also engage their private sector partners at all stages of the project for a genuine partnership to develop.

Local governments need a champion to improve their cities’ financial management. There are many opportunities to improve a city’s internal financial management, such as changing the collection system to collect through banks, better engagement of citizens, use of bonds etc.

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Speakers at the Competitive Cities session with session moderator Alexandra Vogl

9 COMPETITIVE CITIES – EXPLORING NEW MODELS FOR GROWTH

This session featured 3 panel speakers – Edward Leman, President of Chreod Ltd; Alfonso Vegara, President of Fundacion Metropoli; Yeon Sik Yoo, Director-General, International Relations, Seoul Metropolitan Government, Republic of Korea.

City governments around the world are increasingly competing with one another to develop competitive industries, attract investment and create jobs that help reduce poverty and unemployment. Half of the world’s 600 cities that account for 60% of global GDP are in Asia. In many places, cities contribute more than 80% of national GDP.

Competiveness is a measure of the productivity with which a city uses its’ resources. It is influenced by economics, physical capital, human capital, institutional capacity and quality of life. There is a need for cities to identify their comparative advantages and prioritize infrastructure investments to build employment and the city economy. ADB is supporting city cluster economic development and looking at key sectors/industries by thinking in terms of the urban environment and collaboration with other metropolitan regions.

At the same time, there is a growing realization that cities can no longer afford to grow at all costs, at the neglect of the urban environment, social systems, and employment. Cities – especially in those in rapidly urbanizing Asian – have to grapple with the challenge of balancing the quest for equity, environmental sustainability, and improved competitiveness.

Economic transformation of Chengdu Metropolitan Region | Edward Leman, President of Chreod Ltd

There are 3 main drivers of city competiveness – (i) cities must have production capacities (e.g. availability, quality, costs of factor inputs, organizational designs, management and technological processes, access to financing etc.); (ii) access to markets (e.g. market entry and operation, reorganization, exit of firms, access to market information, access to input and output markets); (iii) strong innovation capacity (e.g. needs and opportunity identification, basic and applied R&D etc.). If a city is missing any of these drivers, that city will not be competitive.

In the PRC, Chengdu and other cities in western PRC are growing. These cities are competing aggressively for investments. The population within Chengdu municipality is 6.2 million, while the

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larger metropolitan area (within a 50 km radius of the city center) has a population of 11.1 million. The built-up area has doubled in the decade between 2000 and 2010.

In 1990s, Chengdu – the provincial capital of Sichuan province in the southwest region of PRC – was going through a difficult time, and has gone through an economic transformation over past 15 years. The city is now in a phase of rapid growth and has emerged as an important center of innovation in selected sectors, especially in IT, biotechnology, new materials, space aviation, and nuclear products for civil use.

Between 1964 and 1975, the central government pursued an industrial policy called the “Second Front”. Heavy industries from the “First Front” of coastal towns were relocated with subsidies to the “Second Front” in the interior. Due to its rail and road links to the rest of the country, Chengdu was considered one of the more important cities in the southwest. The city’s economy was then structured around industries such as armaments, chemicals, aviation etc. When the subsidies began to dry up in the 1990s and markets started opening up, this was followed by massive layoffs and economic restructuring in Chengdu. The municipal government recognized the need for rapid restructuring and developing strong human capital and research institutes for the city.

The “Third Front” involved the movement of knowledge workers to Chengdu, bringing a population of skilled and educated workers into the city. The government put several incentives in place and developed 7 very advanced industrial parks as special economic zones. These industrial parks which offer fiscal incentives have helped to enhance its competitiveness. Industrial parks also aggressively marketed themselves to potential investors.

Intel, an American semiconductor chip maker was among the first to set up its’ office in Chengdu in 2001. It quickly became a central base in China for integrated circuit (IC) design, chip production, packaging, and testing. In software, Chengdu has become one of the top bases in the country with over 700 enterprises and 220,000 employees in software outsourcing, applications, digital media, and information security. Since 2001, several major Chinese and foreign firms including Microsoft, SAP, Motorola, NEC, Huawei, China Mobile etc. have established R&D centers in Chengdu to tap into its strong human capital and institutional base. Chengdu has also become a major center for shared services such as logistics and distribution, customer services, financial services, call centers etc.

Chengdu did several things right to bring about this economic transformation – it build infrastructure to world class standards, and capitalized on its human capital by mobilizing research institutes, and invested in improving the livability of the city. Chengdu is also trying to be one of the greenest and most livable cities in Asia in order to attract and retain talent.

What are the priorities and changes for

your city in the next 5 years?

Champasack, Lao PDR: The vision of

Champasack Province Socio-Economic

Development Plan is to develop Pakse

into the center for the southern

provinces and sub-region. The plan

includes the establishment of 3

economic axes with links to Cambodia,

Thailand and Vietnam; the

development of 3 industrial zones, 4

agriculture zones and 4 tourism zones.

The province aims to achieve 11-12%

economic growth and an average per

capita income of $3,000-3,500. The

Plan also aims to establish Pakse as a

‘Green City’ and for ‘Greater Pakse’ to

gain official city status in the future.

Bouasone Vongsongkhone, Vice

Governor, Champasack Province, Lao

PDR

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Landscape Intelligence – Bilbao, Singapore and Visayas | Alfonso Vegara, President of Fundacion Metropoli

Today the competition is between cities and the quality of local leadership is key factor for this. There is a new scale of cities that transcends traditional political, economic and administrative boundaries, and through city-to-city cooperation, they can collectively enhance each other’s competitiveness.

The city of Bilbao in the Basque region of Spain has undergone a spectacular urban transformation through 25 strategic projects (including establishment of the Guggenheim Museum and revitalization of its waterfront) carried out over 25 years to restore its’ historic areas. In 1983, Bilbao suffered from devastating floods. But this sparked the start of a transformation of the city, anchored around a key project and good leadership. Bilbao Ria 2000 served as an effective framework to align government, business and the community towards a shared vision for the city. Bilbao restructured itself from an industrial economy to a knowledge economy, with the city as the engine of growth attracting talent to the region. The city was able to connect investment in infrastructure with social integration. For example, the Nervión River running through the city was once a physical and social barrier, but is now a hub for social and cultural integration, as well as a center for innovation and creativity. In 2010, Bilbao was awarded the inaugural Lee Kuan Yew World City Prize.

The transformation of Bilbao has also impacted the surrounding Basque region. Bilbao is connected through high speed rail to San Sebastian and Vitoria, and functions collectively with these areas to form a more competitive region and establish an eco-system of innovation. In fact, in order to boost its competitiveness Bilbao is strategically inserting itself into major regional corridors in the wider region (most notably as a major node in the Paris-Madrid corridor). Leveraging on high speed rail connections, Europe is creating new territories by connecting mid-sized cities and enhancing their collective competitiveness.

In Southeast Asia, the city-state of Singapore was an under-developed territory 5 decades ago. Today, through good leadership, GDP has risen 80 times in less than 50 years. The city-state has continued to reinvent its key competitive advantages, transforming from a labor-intensive skills-intensive economy in the 1960s and 1970s, to a capital-intensive economy in the 1980s and then to a technology-intensive economy by the 1990s.

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In particular, Singapore made the transition towards a knowledge and innovation-intensive economy in the 2000s. The city-state serves as a “Living Lab” for research and development. For example, the one-north project is host to 3 purpose-built hubs for key public and private institutes and organizations – Biopolis, a biomedical R&D facility; Fusionopolis, a R&D hub for infocommunications, media, science and engineering industries; Mediapolis, a self-contained digital media cluster. Within one-north, private-sector research labs are located together with public-sector research institutes, tertiary hospitals and universities, while shared facilities reduce start-up time and promote collaboration between private and public sector researchers. As a living lab, the idea is to promote exchanges of knowledge between Singapore and the rest of the world, and to try to replicate abroad the projects in Singapore. With plans for a high speed rail link between Singapore and Malaysia, Singapore can continue to stay competitive by being part of the Malacca Straits Diagonal and being connected to key cities in Malaysia and a much larger population of over 16 million in the Malacca Straits Diagonal.

Southeast and Northeast Asia represent only 3% of the earth’s surface but are home to 30% of the world´s population. This region is also the most socially diverse and economically vibrant globally. The Visayas Diamond – including cities such as Iloilo, Bacolod, Kabankalan, Cebu, Tagbilaran, Damuguete, Tacloban, Ormoc in the Philippines – is in the geographical center of this region, and has been identified as a potential growth spot.

We need to start seeing cities as interconnected polycentric structures, and work at this scale. The key for cities is not to do everything, but to identify strategic and globally competitive projects and policies. In the case of Singapore, the city-state saw its’ potential as a transport hub between the Middle East and East Asia. Every city needs to discover its’ own cluster of strengths and think on a larger scale to realize its competitiveness.

Economic transformation of Seoul | Yeon Sik Yoo, Director-General, International Relations, Seoul Metropolitan Government, Republic of Korea

Seoul has experienced a remarkable transformation and rapid industrialization in just over half a century, rising from the Korean War. During a period of rapid urbanization in the 1970s and 1980s, the population of Seoul increased rapidly from 2.4 million in 1960 to over 10 million by 1990. Housing demand grew from 460,000 units in 1960 to 1.9 million units by 2000. Vehicle growth exploded from just 11,000 in 1960 to almost 3 million in 2010. The geographical scale of the city grew in tandem. Areas such as Gangnam and Yeouido have gone through major development in the 1970s and 1980s. The per capital gross national income has risen from $ 156 in 1960 to $ 9,910 in 2000 to $ 20,000 in 2010. Seoul accounts for a fifth of businesses in the country and a quarter of the national GDP. The IT industry has become a key industry for Seoul and the city encourages young researchers to start IT companies.

While accommodating this explosive growth, Seoul had to tackle several challenges in housing, energy, water, sanitation etc., and accumulated much know-how in urban administration. Seoul suffered from severe traffic congestion, and reformed its’ public bus system in 2004. A bus rapid transit (BRT) system was introduced with exclusive median bus lanes marked out and bus routes were redesigned into trunk and feeder lines. The BRT system increased bus speeds and encouraged the use of public transportation. Today it is the most widely used means of transport in Korea and ridership has reached 4 billion rides per year.

Open dumping was practiced in Seoul up till the 1990s. In 2010, the dump site was transformed from mountains of garbage into Nanji Hangang Park, a sanitary land-fill and eco-friendly theme park. Seoul also operates 4 resource recovery plants with incinerators for energy generation and recycling facilities

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to reduce carbon emissions. Waste generation per capita has reduced by 57% from 2.44 kg to 1.06 kg per day, while the recycling rate has risen by 19 times. The amount of garbage sent to landfills has also fallen from 29,272 tons to 1,445 tons per day, a reduction of 95%.

One of the reasons that Seoul was able to develop so rapidly in a relatively short time despite the Korean War was the strong leadership of the central and local governments at that time. The central government quickly switched from an initial import-substitution policy to an export-oriented policy in shipbuilding, chemicals industries etc., when it realized that the import-substitution policy was pushing the country into debt. The export-oriented policy also opened up connections with the rest of the world. From heavy industries, Korea later switched to higher value added manufacturing sectors such as IT, automobiles etc. Seoul also invested in its’ transport infrastructure, beginning with expressways, and the metro system before expanding these to the adjoining provinces.

The Seoul Metropolitan Government (SMG) is actively sharing its urban administrative know-how with cities internationally. To date, SMG is involved in 29 projects with 23 cities in 22 countries. These projects include diverse interventions in areas such as transportation (e.g. transportation card system, policy advice, fare settlement systems etc.); water works (e.g. water loss management, water treatment facilities, administration and inspection etc.); Seoul Metropolitan Rapid Transit (e.g. improvement in signaling, equipment, track design, management and inspection etc.); and e-government (e.g. policy advice, e-office, waste disposal system etc.).

LEARNING POINTS

Good leadership and a clear vision for the future are the keys to building competitive cities. Talent, companies and investors can be attracted to share in a strong vision of the city. But the city leadership has to come up with the vision first before assessing the competitive strengths of the city. The city can then identify the gaps in knowledge and capital needed to realize this vision. Another key factor is collaboration with citizens and stakeholders including national government, citizens, foreign and domestic investors.

To be competitive, cities need to be strategic in identifying, leveraging and investing in their unique strengths. Many factors contribute to making cities competitive, e.g. quality of urban infrastructure, communication systems and public services, business rivalry and cooperation, access to

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natural resources, human capital, location in relation to markets, quality of life etc. Not all cities are well endowed with these factors, and cities need to know how to make the best use of the resources available to them. While almost every component of production (ideas, money, raw material, energy, people, companies etc.) is mobile nowadays, a city’s livability and culture remains rooted, and can become the city’s key competitive strength. Cities need to discover their competitive advantages and invest selectively, in the context of limited time and money. The central government has an important role to play in boosting city competiveness, but the challenge lies in being able to invest intelligently by prioritizing strategic projects for cities.

Cities need to encourage innovation at multiple levels, within local government and administration and at the level of business and citizens. In a globalized world, cities need to be able to innovate regionally and globally to thrive. One quick-win for city governments is to focus on boosting regulatory support and/or removing regulatory barriers to business entry and operation. Central governments can help by removing excessive regulatory controls over cities. In the case of PRC, its’ WTO accession in 2001 was pivotal as it helped to pave the way for a less centralized administration and a more flexible and responsive local government.

Cities can leverage on urban regeneration to revitalize the economy and enhance competitiveness. Bilbao is a good example of how urban transformation can lead to economic transformation. In the case of Seoul, the city’s slum areas went through a process of urban renewal. Urban regeneration can help to enhance the livability of a city and attract and retain talent and human capital, and build a skilled work force for the city.

10 PEER-TO-PEER SESSION – URBAN CHALLENGES

As a key component of the forum, the Peer-to-Peer session featured facilitated break-out group discussions where delegates discussed specific challenges that their cities face. The objective of the Peer-to-Peer Session was to create opportunities for 'cross-fertilization’ of ideas and urban solutions among different cities and spark new approaches to urban problems. The desired outcome was to have one or more new ideas or approaches that delegates could develop into a potential solution for their cities.

Through the Peer-to-Peer break-out group discussions and Interview Panel with Peers, delegates exchanged experiences and ideas on urban challenges in sectors ranging from water supply, urban renewal, solid waste management and sanitation, and environmental issues. The Peer-to-Peer session was guided by lead facilitator, Anand Chiplunkar, Director of Urban Development and Water Division, Central and West Asia Department (CWUW), and Chair of Urban Community of Practice (CoP), ADB, as well as respective break-out group facilitators listed in Table 1.

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Break-out group discussions during Peer-to-Peer session

Table 1: Peer-to-Peer break-out groups and facilitators

Urban Challenge Sector Cities/Municipalities Break-out Group Facilitator

Water Gaffargaon, Savar, Dharan, Colombo, Ferghana, Tashkent, Seoul

Myounggu Kang

Governance & institutions Angeles, Benapole, Chuadanga, Samdrup Jongkar, India (Ministry of Urban Development), India (Ministry of Finance)

Edgardo Pamintuan

Environmental sustainability / resilience

Champasack, Guangzhou, Phnom Penh Tep Makathy

Environmental sustainability / resilience

Malé, Butwal, Cape Town, Indonesia Bulelwa Makalima-Ngewana

Urban transport Dohar, Thimphu, Vijayawada, Mandalay, Tangerang

Edward Leman

Solid waste management Thimphu, Birganj, Nepalgunj, Kurunegala Yumiko Noda

Urban renewal Samdrup Jongkhar, Siem Reap, Seoul, Hue Alfonso Vegara

Lead Facilitator Anand Chiplunkar, Director, Urban Development and Water Division, Central and West Asia Department (CWUW), and Chair of Urban Community of Practice (CoP), ADB,

11 SHARING FROM PEER-TO-PEER BREAK-OUT GROUPS

1. Urban challenge – Urban renewal Cities represented in the group were Samdrup Jongkhar, Siem Reap, Seoul and Hue. The group identified several issues and obstacles under this urban challenge, including:

Rapid urbanization Traffic management

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Providing services such as solid waste management Consensus-building among various stakeholders in order move ahead and make

improvements to the city Balancing equity and just allocation of land Empowering the local government to make executive decisions for the city without too

much political interference Integrating different departments to focus on a common project and goal Engaging citizens in the decision-making process Securing funding from national government

Forum participants were also polled on their prioritization of the key issues and obstacles for this urban challenge in their cities. Almost 30% felt that the lack of planning regulations and control was the biggest hurdle to urban renewal. Uncontrolled development (23%) and land occupied by informal settlements/resettlement (22%) were the next major issues in their cities. Fewer participants were concerned about the lack of public participation (15%) in the urban renewal process. Heritage conservation (10%) was also a less significant issue for most participants.

The break-out group agreed that having a collective vision for the future and a strategic project for the city were keys to successful urban renewal, as this would allow citizens, private sector, city government and public sector to work together towards a common aim. The example of urban regeneration in Cheonggyecheon in Seoul showed how the city administration could move ahead despite myriad challenges and the high cost of the project. In this case, the narrative and identity of the project (i.e. rehabilitation of an urban river) provided the city with a common vision. Similarly in Bhutan and Hue, the local governments are trying to convince their citizens of the benefits of redevelopment whilst building trust of their citizens. The participants also reiterated the importance of having a common vision and sectora; priroties permeating from the national level all the way to the local level. This is apparent in the case of Bhutan where the overacrching national goal of happiness is translated into regional and urban development initiatives at all levels of governance.

2. Urban challenge – Water supply

Cities represented in the group were Angeles, Benapole, Chuadanga, Samdrup Jongkar, India (Ministry of Urban Development), India (Ministry of Finance). The group identified several interlinked issues and obstacles under this urban challenge, including:

Solid waste management, indiscriminate dumping, lack of landfill sites Poor drainage and flooding Unplanned urbanization Poor urban infrastructure Inadequate municipal budget and revenues Political interference in development

Forum participants felt that unplanned development that in turn constrained service delivery (26%) was the most critical issue for water supply in their cities. Almost equal numbers found that poor and aging water supply infrastructure (19%), lack of revenue model (19%) and political interference (19%) were the next most important considerations. Slightly fewer (16%) viewed the encroachment of public places, resulting in underserved and vulnerable populations as a key issue.

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The break-out group identified a few solutions, such as restructuring existing physical infrastructure to

match the growth of settlements. The group also felt that more could be done to raise awareness of the

issues/obstacles in providing water supply. Citizens could also be educated on ways to reduce, reuse

and recycle water as well as reduce water consumption. City governments should also focus on

preparing viable projects that can attract financing from funding agencies.

3. Urban challenge – Governance and Institutions Cities/organizations represented in the group were Gaffargaon, Savar, Dharan, Colombo, Ferghana, Tashkent and Seoul. The group identified several interlinked issues and obstacles under this urban challenge, including:

Identifying and selecting good city leaders Resource allocations to local governments Sufficient and relevant resources to back up city leaders Proper utilization of resources when these are available to the city Competent and decentralized urban local bodies

For the forum participants, the lack of leadership in their cities (28%) came out strongly as the biggest challenge, next to the lack of resources such as municipal funding/income (23%) for their cities. A smaller percentage felt that there was a lack of forward planning (18%) by local leaders in their cities. Roughly equal numbers found that their cities suffered from a lack of professional expertise (16%) in their institutions as well as lack of public participation (14%).

The break-out group highlighted institutional mechanisms as being instrumental in drawing in good leaders. It would also be important for cities to establish mechanisms to ensure access to resources such as financing. Cities should also build up links with multilateral intuitions that can help them with reforms and ensure that available resources are used correctly. For example, the Angeles city administration has entrenched transparency in their processes by making more information publicly available on the city website. Such information could include city administration meetings minutes and decisions, annual city expenditure and revenues, complaints received, project schedules and delays etc. One way to ensure proper utilization of resources and reduce opportunities for corruption is to minimize the human interface in public services (e.g. online submissions and payments for services) and introduce standardized processes. These are quick-wins that a city can implement even if it enjoys only limited power delegated by the central government.

The participants also highlighted the importance of decentralization of ULB’s in addition to good resource allocations to the local governments, so that LGU’s would have a greater room for maneuver. 4. Urban challenge – Environmental resilience and sustainability Cities/organizations represented in the 2 break-out groups under this urban challenge were Champasack, Guangzhou, Phnom Penh, Malé, Butwal, Cape Town and Indonesia. The group identified a wide range of issues and obstacles under this urban challenge, including:

flood risk and poor drainage (Champasack) Pollution Solid waste management

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Scattered settlements, slums, urban poverty lack of land and sea level rise (Malé)

Almost equal numbers among forum participants identified environmental pollution in air, water and solid waste (25%) and uncontrolled in-migration and settlement in vulnerable zones (24%) respectively as the highest priority issues for environmental resilience and sustainability in their cities. Another 18% viewed the lack of greenery and green spaces as a major issue in their cities, while 17% were most concerned about flood risk in their cities. 16% of the forum participants felt that poor waste recovery and recycling efforts were a key concern. The 2 break-out groups felt that mid-term and long-term planning studies were needed to help systematically identify urgent environmental issues and serve as the basis for prioritizing and allocating budget towards the most critical issues. For example, as Guangzhou is flood-prone, budget is reserved upfront for flood prevention/mitigation measures such as embankments. In particular for cities that face flood risk, they can establish early warning systems so that vulnerable residents can be evacuated in time. There are also several mitigation and preventive measures that cities can put in place, e.g. man-made reservoirs and dykes for flood prevention. More generally, the break-out groups agreed that good leadership is needed to drive such initiatives. Long-term land use planning for the city is also crucial and the central government, neighboring cities and citizens should be involved in the planning process. More drastic measures as in the case of land-constrained Maldives has been to move vulnerable settlements to other islands. 5. Urban challenge – Urban transport

Cities/organizations represented in this break-out group were Dohar, Thimphu, Mandalay and Vijaywada. The group identified a wide range of issues and obstacles under this urban challenge, including:

Capital investment/financing - who should finance transport systems; how should revenue be shared between central, state, and municipal governments?

Planning – unclear who has ownership of transport plans; should the state government or municipality drive transport planning?

Lack of integrated regional transport plan (connecting 3-4 cities), and lack of integrated transport and land use planning.

Misallocation of functional responsibilities among 3 levels of government (municipal, provincial and national).

For forum participants, traffic congestion due to high/uncontrolled vehicle growth (24%) emerged as a key issue in their cities. This was followed closely by inadequate integrated planning (21%). For 17% of the forum participants, a key issue was the encroachment of sidewalks, parking issues and pedestrianization of streets, while 16% felt that there was a gap in public transport infrastructure and/or services such as bus rapid transit system, rail transit system. Less than 10% highlighted the lack of road infrastructure and connectivity as a priority in urban transport. The break-out group discussed several ideas such as the need for metropolitan-level planning for public transport to bridge the gap between the city and provincial level planning as transportation has to be considered in the context of the surrounding areas of the city. There should also be proper allocation of funds to municipalities to deal with encroachment issues. Transport planning should be integrated with land use planning and increase in land values should be captured by the city and

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Sharing during Peer-to-Peer session

leveraged for public benefit. In some cases, banning of motorized transport on some streets or pedestrianization of roads could be considered (e.g. Norzin Lam road in Thimphu). Pedestrianization can also help to free up areas for use as public spaces. In the case of Vijayawada, its’ bus rapid transit system (BRTS) was conceptualized 5 years ago as a 15 km loop that would connect the national highway, railway and central commercial area. To date, 5 km of the BRTS has been completed on land made available when a railway track had been relocated. Land acquisition issues have delayed the project. For the next 5 km, land for a bypass to the city had to be acquired by the Vijayawada Municipal Corporation and this was only completed after protracted negotiations. Land for the rest of the corridor would then be made available by the National Highways Authority of India. However Vijayawada Municipal Corporation expects it to be more difficult to acquire land for the BRTS in the central commercial area as this would involve high value land. At this point however, the frequency of BRTS is relatively low (1 bus every 40 minutes) and ridership is low (the bus is usually less than half-filled).

6. Urban challenge – Solid waste management

Cities/organizations represented in this break-out group were Thimphu, Birganj, Nepalgunj and Kurunegala. The group identified issues and obstacles under this urban challenge, including:

Difficulties in effective implementation of rules and regulations Lack of adequate awareness programs Lack of civic sense among the population Inability to manage effective segregation and recycling High transportation cost to dump sites/landfills outside city

Among the forum participants, a third cited the lack of solid waste management and/or sanitation facilities as the highest priority issue under this urban challenge in their cities. Another 21% pointed to the lack of waste management service providers as a significant problem, while 19% found littering in public spaces in their cities to be a major concern. Difficulties in managing e-waste was also an area of

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concern for 15% of the forum participants. Only 10% felt that inadequate waste management regulations were a key issue for their cities. The break-out group felt that cities should do better job at enforcing existing solid waste management rules and regulations on the ground. In Nepal for example, the penalty for contravening such regulations is relatively light. To stem littering, Colombo is working with schools to generate awareness of these issues. Another solution would be to convert waste into commercially viable resources. In Thimphu, the private sector is involved as private companies take on the role of segregating waste and reselling it and the business is growing. The city is now focusing on organic waste which makes up 50% of municipal solid waste. Thimphu is looking at setting up a composting plant as the existing one is too far away from the city. Given the increasing volume of plastic waste, Thimphu is also studying plastic thermal technology (to be procured from India) to recycle plastic, but the volume of plastic waste may be too low for the use of such technology to be commercially viable. Conclusion to Peer-to-Peer session In conclusion, the forum participants appeared to be most concerned about environmental sustainability and resilience of their cities. The governance and institutional set up of their cities, urban transport and solid waste management challenges were also major urban challenges for the forum participants. On the other hand, the challenges of water supply and urban renewal were considered less critical for their cities at this point. Figure 1 shows the forum participants’ ranking of urban challenges, while Table 2 summarizes the most pressing issue as identified by forum participants under each urban challenge. Figure 1: Overall ranking of Urban Challenges

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Table 2: Summary of Urban Challenges and Priority Issues

Urban Renewal Lack of planning regulations control

Water Supply Unplanned development constraining delivery of services

Urban Governance Lack of leadership; lack of funds/income

Environmental Resilience and Sustainability

Environmental pollution; uncontrolled in-migration and settlement in vulnerable areas

Public Transport Traffic congestion due to high/uncontrolled vehicle growth; lack of integrated planning

Solid Waste Management

Lack of solid waste management or sanitation facilities; lack of service providers

12 CONCLUSION

From the concluding remarks of Anand Chiplunkar, Director, Urban Development and Water Division, Central and West Asia Department (CWUW), and Chair of Urban Community of Practice (CoP), ADB.

Through the discussions and insights that have emerged at the forum, many of the cities represented by the forum participants have shared their key concerns and issues in their cities, as well as potential solutions sparked by their exchanges with peers and other city leaders. Under the Inclusive Cities theme, the forum showcased the importance of a social contract with the city’s citizens and having the right leadership to deliver concrete steps towards building an inclusive city. Community participation alongside with private sector partnerships and collaborations with other cities were identified as key strategies for building Green and Resilient Cities. To develop Competitive Cities, cities should focus on harnessing their unique competitive strengths, rather than try to do everything. The forum has also delivered the message that there is no lack of urban financing available to implement sustainable urban development, but cities need to realize that they need to develop and prepare good bankable projects that can attract financing. These themes and urban development strategies are very much interlinked and with the correct balance, they can be mutually reinforcing and help city leaders build a better urban future for their cities. The ingredients that cities need are good, honest city leadership to champion a vision for the city; proper allocation and utilization of available resources; and the confidence to deliver integrated planning and development. Forum Feedback from Participants There was a short polling survey conducted to evaluate the participants’’ response to the forum content and its’ usefulness. The forum garnered highly positive feedback – more than 90% of participants found the SSCLF quite or mostly useful as a platform for sharing urban innovations from both forum speakers and their peers. The Peer-to-Peer session on Day 2 was the most well-received session of the forum -

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35% of the participants indicated that they had enjoyed this session most followed by the Competitive Cities session. Such face-to-face platforms for peer-to-peer interactions were viewed by 62% of participants as a key platform for ADB to support cities in knowledge sharing on urban issues. Fifteen percent requested more online platforms for peer-to-peer interactions. Two-thirds of the participants indicated interest to take part in another similar forum for city leaders in the future.

References

Asian Development Bank (ADB). 2013. Urban Operational Plan 2012-2020. http://www.adb.org/sites/default/files/institutional-document/33812/files/urban-operational-plan-2012-2020.pdf

Dobbs, Richard; Smit, Sven; Remes, Jaana; Manyika, James; Roxburgh, Charles; Restrepo, Alejandra. 2011. Urban World: Mapping the economic power of cities. McKinsey Global Institute. http://www.mckinsey.com/insights/urbanization/urban_world

Mahfuz, Ahmed; Suphachol, Suphachalasai. 2014. Assessing the Costs of Climate Change and Adaptation in South Asia (June 2014). Mandaluyong City, Philippines: Asian Development Bank. http://www.adb.org/publications/assessing-costs-climate-change-and-adaptation-south-asia

United Nations, Department of Economic and Social Affairs, Population Division (UN DESA). 2014. World Urbanization Prospects: The 2014 Revision, Highlights (ST/ESA/SER.A/352). http://esa.un.org/unpd/wup/Highlights/WUP2014-Highlights.pdf

44

Annex 1

SOUTH-SOUTH CITY LEADERS FORUM – PROGRAM

Time Session Speaker/Resource Person Designation Country

DAY 1 - 2 December 2014 (Tuesday) 0830 - 0900

Registration All delegates

0900 - 0915

Welcome Speech - Setting the Scene

Dr. Bindu N. Lohani Vice President, Knowledge Management and Sustainable Development

ADB

0915 - 0930

Keynote Speech Neeraj Mandloi Joint Secretary, Urban Development, Government of India

India

0930 - 0940

Setting the house rules Forum Facilitator: Mary R. Clarke

Senior Human Resource Specialist, HR Policy and Programs Division

ADB

0940 - 1000

Ice-breaker activity All delegates (guided by Forum Facilitator)

1000 - 1010

Group photo-taking (Podium, Third Atrium)

All delegates

1010 - 1020

Focus Session 1: Inclusive Cities - expanding possibilities for people (80 min)

Introduction by Session Moderator: Arnaud Heckmann

Urban Development Specialist, Urban and Social Sectors Division, East Asia Department

ADB

1020 - 1035

Edgardo Pamintuan Mayor of Angeles City Philippines

1035 - 1050

Kinlay Dorjee Thrompon (Mayor) of Thimphu Bhutan

1050 - 1105

C. Hari Kiran Municipal Commissioner, Vijayawad Municipal Corporation

India

1105 - 1130

Q&A / Small group discussions

1130 - 1145

Tea Break

1145 - 1155

Focus Session 2: Green & Resilient Cities - urban regeneration (80 min)

Introduction by Session Moderator: Jingmin Huang

Senior Urban Development Specialist, Sustainable Infrastructure Division, Regional and Sustainable Development Department (RSID)

ADB

1155 - 1210

Arief Wismansyah Mayor of Tangerang Indonesia

1210 - 1225

Bulelwa Makalima-Ngewana CEO, Cape Town Partnership South Africa

1225 - 1240

Dr. Myounggu Kang Professor of Urban and Regional Planning, University of Seoul

Republic of Korea

1240 - 1305

Q&A / Small group discussions

1305 - 1415

Networking Lunch (Multi-Function Room 1, Third Atrium, ADB Headquarters)

All delegates

45

Time Session Speaker/Resource Person Designation Country

1415 - 1435

Peer-to-Peer session kick-off

Introduction by Lead Facilitator: Anand Chiplunkar

Director, Urban Development and Water Division, Central and West Asia Department (CWUW), and Chair of Urban Community of Practice (CoP)

ADB

1435 - 1445

Focus Session 3: Urban financing - developing new city investment strategies (panel discussion; 70 min)

Introduction by Panel Moderator: Joris van Etten

GIZ Deputy Program Coordinator, Cities Development Initiative for Asia (CDIA)

CDIA

1445 - 1450

Eleazar Ricote Deputy Executive Director of the Public-Private Partnership (PPP) Center

Philippines

1450 - 1455

Yumiko Noda Partner, Head of PPP and Infrastructure (Asia Pacific), PwC Japan

Japan

1455 - 1500

Tep Makathy Project Team Leader, Green Goal Ltd (ADB-CDTA-8121: Capacity Development for Urban Management in Cambodia)

Cambodia

1500 - 1545

Q&A / Small group discussions

1545 - 1600

Tea Break

1600 - 1610

Focus Session 4: Competitive Cities - exploring new models for growth (80 min)

Introduction by Session Moderator: Alexandra Vogl

Urban Development Specialist, RSID

ADB

1610 - 1625

Edward Leman President of Chreod Ltd Canada

1625 - 1640

Alfonso Vegara President of Fundacion Metropoli

Spain

1640 - 1655

Yeonsik Yoo Director General of International Relations Division, Seoul Metropolitan Government

Republic of Korea

1655 - 1720

Q&A / Small group discussions

1720 - 1730

Day 1 wrap-up & preparation for Day 2

Forum Facilitator: Mary R. Clarke

Senior Human Resource Specialist, HR Policy and Programs Division

ADB

1730 - 1830

Freshen up All delegates

1830 - 2030

Networking Cocktails & Dinner (Level 5, Oakwood Premier Joy-Nostalg Center)

Hosted by Hun Kim Director General, South Asia Department

ADB

DAY 2, 3 December 2014 (Wednesday) 0900 - 0915

Recap of Day 1 Forum Facilitator: Mary R. Clarke

Senior Human Resource Specialist, HR Policy and Programs Division

ADB

0915 - 0930

Keynote Speech Mrs. Erna Witoelar Indonesian Former Minister of Human Settlements and Regional Development

Indonesia

46

Time Session Speaker/Resource Person Designation Country

0930 - 1100

Peer-to-Peer session (break-out group discussions)

Introduction by Lead Facilitator: Anand Chiplunkar Break-out group facilitators

Director, CWUW and Chair of Urban CoP

ADB

1100 - 1200

Conclusion of Peer-to-Peer session - Interview Panel with Peers

Panel moderated by Lead Facilitator: Anand Chiplunkar

Director, CWUW and Chair of Urban CoP

ADB

1200 - 1215

Closing of Forum Closing by Lead Facilitator: Anand Chiplunkar

Director, CWUW and Chair of Urban CoP

ADB

1215 - 1315

Lunch (Level 5, Oakwood Premier Joy-Nostalg Center)

All delegates

1315 - 1330

Freshen up All delegates

1330 - 1800

Thematic site visits Return to hotel after site visits

Delegates to participate in 1 of 2 site visit: 1. Competitive Cities; Urban Financing: Makati CBD/Ayala Center & Bonifacio Global City 2. Inclusive Cities; Green & Resilient Cities: Paco de Estero Rehabilitation Project

Venues

Forum venue (Day 1 & Day 2): Multi-Function Room 1 & 2, Third Atrium, ADB Headquarters (6 ADB Avenue, Mandaluyong 1550, Philippines) Networking Dinner (Day 1) & Lunch (Day 2): Level 5, Oakwood Premier Joy-Nostalg Center Manila (17 ADB Avenue, Ortigas Center, Pasig City 1600, Philippines)

47

Annex 2

SOUTH-SOUTH CITY LEADERS FORUM – LIST OF PARTICIPANTS

No. Name City/

Organization Position City/Municipality/

Organization Contact Info 1 Bangladesh Kaiser Ahmmad Mayor & Vice President

of Municipality Association of Bangladesh

Gaffargaon Municipality

[email protected]

2 Bangladesh Reajul Islam Joarder

Mayor Chuadanga Municipality

[email protected]

3 Bangladesh Md. Asraful Alam Liton

Mayor Benapole Municipality, Jessore

[email protected]

4 Bangladesh Sharf Uddin Ahmed Choudhury

Chief Executive Officer Savar Municipality, Dhaka

[email protected]

5 Bangladesh Md. Mashiur Rahman

Executive Engineer Dohar Municipality, Dhaka

[email protected]

6 Bhutan Kinlay Dorjee Thrompon (Mayor) Thimphu Thromde [email protected]

7 Bhutan Thinley Norbu Deputy Chief Urban Planner

Thimphu Thromde [email protected]

8 Bhutan Karma Sherab Thobgyal

Thrompon (Mayor) Samdrup Jongkhar Thromde

9 Bhutan Thuji Tshering Executive Secretary Samdrup Jongkhar

Thromde [email protected]

10 Cambodia Platong So Acting Governor Siem Reap [email protected]

11 Cambodia Tep Makathy Project Team Leader, Green Goal Ltd (ADB-CDTA-8121: Capacity Development for Urban Management in Cambodia)

Phnom Penh [email protected]

12 Canada Edward Leman President Chreod Ltd [email protected]

13 India Neeraj Mandloi Joint Secretary Ministry of Urban Development

14 India Sheyphali

Bhargava Sharan Director (ADB), Department of Economic Affairs

Ministry of Finance [email protected]

15 India Koneru Sheedhar Mayor Vijayawada

16 India C. Hari Kiran Municipal Commissioner

Vijayawada [email protected]; [email protected]

17 Indonesia Erna Witoelar Former Indonesian Minister of Human Settlements and Regional Development

Indonesia

48

No. Name City/

Organization Position City/Municipality/

Organization Contact Info 18 Indonesia Arief Wismansyah Mayor Tangerang [email protected]

m

19 Japan Yumiko Noda Partner, Head of PPP & Infra (Asia Pacific)

PwC Japan [email protected]

20 Lao PDR Bouasone Vongsongkhone

Vice Governor Champasack Province

21 Lao PDR Bounnao

Fongkhamdeng Deputy Director, Dept of Public Works and Transport

Champasack Province

[email protected]

22 Maldives Mohamed Shihab Mayor Malé City Council [email protected]

23 Maldives Shamaau Shareef Councilor Malé City Council [email protected]

24 Myanmar U Han Soe Mayor Mandalay [email protected]

25 Nepal Bishnu Prasad Koirala

Executive Officer Birganj Sub-Metropolitan City

[email protected]

26 Nepal Lok Bahadur Sunar Mayor and Executive Officer

Nepalgunj Municipality

[email protected]

27 Nepal Deepak Shrestha Project Manager Nepalgunj Municipality

[email protected]

28 Nepal Dhruba Bahadur Khadka

Chief and Secretary of Municipality

Butwal Municipality [email protected], [email protected]

29 Nepal Suman Shrestha Engineer Butwal Municipality [email protected]

30 Nepal Raju Pokharel Project Manager Dharan Municipality [email protected]

31 People's Republic of China

Ling Zhou Deputy Secretary General

Guangzhou Municipal Government

[email protected]

32 People's Republic of China

Yimei Hua Chief of Visa Division, Foreign Affairs Office

Guangzhou Municipal Government

[email protected]

33 People's Republic of China

Hongrong Ren Protocol Officer, Foreign Affairs Office

Guangzhou Municipal Government

[email protected]

34 Philippines Dondi Ongpin Mapa

National Technology Officer

Microsoft Philippines [email protected]

35 Philippines Eleazar Ricote Deputy Executive Director

Public-Private Partnership Center

[email protected]

36 Philippines Edgardo Pamintuan

Mayor Angeles City

37 Republic of

Korea Myounggu Kang Professor of Urban and

Regional Planning, University of Seoul

University of Seoul [email protected]

38 Republic of Korea

Yeon Sik Yoo Director-General, International Relations

Seoul Metropolitan Government

[email protected]

49

No. Name City/

Organization Position City/Municipality/

Organization Contact Info 39 Republic of

Korea Eun Sung Eom Deputy Director,

International Relations Bureau

Seoul Metropolitan Government

[email protected]

40 Republic of Korea

Mi Jeong Park Manager, International Relations Bureau

Seoul Metropolitan Government

[email protected]

41 South Africa Bulelwa Makalima-Ngewana

Chief Executive Officer, Cape Town Partnership

Cape Town [email protected]

42 Spain Alfonso Vegara President Fundacion Metropoli [email protected]

43 Spain Calvin Chua Coordinator of Asia Pacific projects

Fundacion Metropoli [email protected]

44 Sri Lanka M.I.M. Salin Director Engineering (Drainage & Water Supply), Colombo Municipal Council

Colombo [email protected]

45 Sri Lanka Anuradha Gamini Peramunage

Mayor Kurunegala [email protected]

46 Sri Lanka Chandana Pushpalal Gallage

Medical Officer, Department of Health

Kurunegala [email protected]

47 Uzbekistan Gaybulla Djahanov First Deputy Mayor Ferghana [email protected]

48 Uzbekistan Nazimjon Sabirov Head, Main Finance Dept, Mayor's Office

Tashkent [email protected]

49 Viet Nam Duong Thi Thu Truyen

Deputy Director of Thua Thien Hue Department of Planning and Investment

Hue [email protected]

50 John Cann Asia Director for Microsoft’s Strategic Alliances Group

Microsoft [email protected]

50

Annex 3

PEER-TO-PEER SESSION – URBAN CHALLENGES

Urban Challenge: Water supply

Peer-to-Peer break-out group facilitator:

Myounggu Kang, Professor of Urban and Regional Planning, University of Seoul

City/Municipality Summary of Urban Challenge

Gaffargaon, Bangladesh Difficulties in building up drainage system; main obstacle is availability of land.

Savar, Bangladesh Damaged road network and drainage.

Dharan, Nepal Poor physical municipal infrastructure; lack of continuous 24-hours water supply; low quality of drinking water.

Colombo, Sri Lanka Urban underserved settlements where nearly half of the population was living without access to urban services (they also occupy commercially valuable lands, land reserved for expansion of urban services etc.); unauthorized structures build on sewer & storm water network

Ferghana, Uzbekistan Adequate water treatment to meet standards for potable water.

Tashkent, Uzbekistan Adequate water treatment to meet standards for potable water.

Urban Challenge: Governance and institutions

Peer-to-Peer break-out group facilitator:

Edgardo Pamintuan, Mayor of Angeles City

City/Municipality Summary of Urban Challenge

Benapole, Bangladesh NA

Chuadanga, Bangladesh Strengthening municipal funding.

Samdrup Jongkhar, Bhutan

Insufficient funds for development.

Ministry of Urban Development, India

NA

Ministry of Finance, India Congestion and infrastructure constraints

51

Urban Challenge: Environmental sustainability / resilience

Peer-to-Peer break-out group facilitators:

Tep Makathy, Project Team Leader, Green Goal Ltd (ADB-CDTA-8121: Capacity Development for Urban Management in Cambodia)

Bulelwa Makalima-Ngewana, Chief Executive Officer, Cape Town Partnership

City/Municipality Summary of Urban Challenge

Champasack, Lao PDR Located in low-lying area (construction works are difficult and costly; existing regulations, howeverimplementation was not planned and controlled properly); uncontrolled in-migration into city (difficult to predict and manage); continued environmental degradation affecting tourism potential

Guangzhou, PRC Balancing environmental protection with economic growth, worsening air and water pollution worsening.

Phnom Penh Flood control measures and drainage system for Phnom Penh capital.

Indonesia NA

Malé, Maldives NA

Butwal, Nepal Environment improvement and infrastructure development; scattered settlements, urban poverty, lack of technical experts.

Urban Challenge: Urban transport

Peer-to-Peer break-out group facilitator:

Edward Leman, President, Chreod Ltd

City/Organization Summary of Urban Challenge

Dohar, Bangladesh To provide road and drain connections for every residential, commercial or industrial plot.

Thimphu, Bhutan Financing development and operations of physical infrastructure such as pedestrianization of Norzin Lam; PPP model for construction of two multi-level car parking buildings.

Vijayawada, India Bus Rapid Transit System (BRTS) in Vijayawada City (lack of coordination and improper planning)

52

Urban Challenge: Solid waste management

Peer-to-Peer break-out group facilitator:

Yumiko Noda, Partner, Head of PPP & Infra (Asia Pacific), PwC Japan

City/Organization Summary of Urban Challenge

Thimphu, Bhutan Solid waste management, including littering; waste segregation through privatization and recycling intervention.

Birganj, Nepal Construction of sanitary landfill site to manage household solid waste.

Nepalgunj, Nepal Solid waste management in the city.

Kurunegala, Sri Lanka Poor compliance of the people and undesirable methods available fordisposal of e-waste in the city.

Urban Challenge: Urban renewal

Peer-to-Peer break-out group facilitator:

Alfonso Vegara, President, Fundacion Metropoli

City/Organization Summary of Urban Challenge

Samdrup Jongkhar, Bhutan

Developing appropriate Local Area Plans (city is faced with landowners who illegally occupy land and refuse to vacate land earmarked for development).

Siem Reap, Cambodia Rapid urbanization and development of hotels, guest houses and commercial complexes (impose burdens on existing local infrastructure); traffic congestion (shortage of car parking, bike parking).

Seoul, Republic of Korea Cheonggyecheon Stream Redevelopment.

Hue, Viet Nam Heritage conservation (to restore and preserve private-owned garden houses).