Emerging and Sustainable Cities Initiative: a platform for Urban - PowerPoint PPT Presentation

Emerging and Sustainable Cities Initiative: a platform for Urban Sustainability in LAC. Gilberto Chona Lead Specialist, Fiscal Policy and Urban Economics April 22, 2014 gilbertoc@iadb.org

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Baseline Studies • Mitigation of greenhouse gas emissions • Disaster risk and climate change vulnerability reduction • Sustainable urban Growth

Additional Baseline Studies • Urban Mobility Diagnostic • Solid Waste Management System • Energy Efficiency/Consumption • Public Safety • Public Finances • Water and Wastewater • Connectivity • Walkability/Bikeability • •

Example for Port of Spain: Our diagnostic exercise revealed significant challenges across all three dimensions Sustainability dimensions Environment Urban Fiscal/ governance ▪ ▪ ▪ Infrastructure and pricing failures Very high murder rate (118 per City lacks financial and wasting valuable water 100k), exacerbated by weak administrative autonomy (97% of PoS’ budget from central resources. 50% lost in the enforcement (14-19% detection, distribution system <5% conviction) government), and MOLG lacks mandate to ‘single out’ any one ▪ ▪ Abundant energy resources, but Congestion a major challenge; corporation fuel subsidies mean artificially low avg. 1-2 hrs commutes, minimal ▪ electricity pricing, leading to parking enforcement, excessive Institutional overlap and inefficiency reliance on single-occupancy confusion over responsibility and accountability of POSC vs. vehicles. Situation exacerbated ▪ ~100% access to solid waste central govt’ and within central by importation laws and fuel collection, but local landfill subsidies government nearing capacity and low ▪ ▪ recycling despite 83% recyclable Strain on infrastructure from Insufficient tax base maximization — .08% property tax- content non-resident population - 5x as many commuters (>250K) as GDP ratio vs. 1% in developed ▪ Inadequate infrastructure residents (50K) countries, and underutilized maintenance exacerbating sources of fee revenue ▪ flooding problems Moderate growth (3% p.a.) but ▪ limited land use planning Lack of end-to-end performance ▪ Disaster planning inadequate for implementation or zoning management to evaluate spending low-frequency, high-severity enforcement quality or personnel performance events (i.e., tsunamis, hurricanes, ▪ ▪ earthquakes) Significant disparity in terms of Public utilities operating at a economic opportunity (e.g. much loss (e.g. WASA operating at a TT ▪ Most vulnerable areas are least higher poverty and unemployment, $391 Mn deficit) prepared (East PoS) worse service provision and higher crime in East PoS ) McKinsey & Company | 15

ENVIRONMENT Environmental sustainability challenges Manages its environment and Mitigates pollution and Reduces its vulnerability to consumption of natural promotes renewable energy natural disasters and adapts to resources sources climate change ▪ Fortunate to have large natural ▪ Air quality is generally good ▪ Hazard maps focuses on high water supplies; however, due to prevailing trade winds frequency, low severity events current systemic waste is not – – Burning trash, traffic Flood, landslide mapped sustainable congestion raise PM10 – Earthquake, hurricane, and – Virtually free water supply – No air quality regulations or tsunami not fully assessed dis-incentivizes efficiency monitoring ▪ “Severe to catastrophic” (40 - – 50% water system leakage ▪ Although GHG emissions 60%) damage expected to from poor maintenance are high (28 tons per capita), infrastructure ▪ Ample energy supplies but this is driven by and ▪ Early warning systems are not poor grid planning causes consistent with other major adequately tested frequent brown/black outs oil//gas exporters ▪ Egress plan is in place but ▪ Adequate wastewater (WW) ▪ Energy subsidies dis- execution is questionable treatment capacity, though incentivize efficiency (e.g. (e.g., April ERP drill) 50% WW system infiltration doors open with a/c on) ▪ Compound risks exists (i.e. ▪ ~100% access to solid waste ▪ 0% energy generated from most vulnerable are least collection, but no recycling renewable energy sources prepared) in the East despite 83% recyclable ▪ DRM and CCA are in content development SOURCE: WASA, Stakeholder interviews, T&TEC, Waste Characterization study, WHO, ODPM, UWI research, PoS City McKinsey & Company | 16 representatives

URBAN SUSTAINABILITY Urban sustainability challenges Promotes competi-tive, Provides high stand- Controls city growth Promotes sustainable sustainable local ard of social services, and improves human urban transportation economic deve- promotes social habitat lopment cohesiveness ▪ Growth rate medium ▪ Commute into and ▪ National economy ▪ Murder rate for PoS at 3% - but growth out of city ~1-2 concentrated in oil Police District 118 largely unplanned , hours each way and gas (40% GDP, per 100K compared – particularly in E. PoS vs 45% for Saudi to: 108 minute avg. – – Arabia) ▪ Narrow city streets Hillside building 29 in Newark ▪ Public sector – led to ecological not designed to 19 in Bogota degradation, employment ▪ Murder rate varies by receive large influx exacerbates city important for PoS of cars police station, e.g., flooding (over 83K total, ▪ Illegal parking 293 at Besson St, – concentrated in city) Multiple master common; minimal 202 at Central, 30 at ▪ Some areas. e.g., E. plans exist across Belmont enforcement of city; minimal PoS remain excluded ▪ Total serious crime tickets implementation from development ▪ Law allows over 2K per 100K ▪ ~64K people live in ▪ Although official ▪ Weak judiciary / importation of used informal settlements unemployment low cars, led to spike in penitentiary around PoS – more (6-7%; up to 13% in single-occupancy – 0% murders Sealots), than in city itself vehicles convicted ▪ Population density is underemployment is ▪ Fuel heavily ▪ Education and health significant low - 5x as many subsidized, further services meet basic – commuters (250K) >20% in E. PoS increasing traffic standards as residents (50K) McKinsey & Company | 17

FISCAL / GOVERNANCE Fiscal and governance challenges Adequately manages Has adequate gover- Adequately manages Adequately manages its debt and fiscal nance mechanisms its revenues its expenditures obligations ▪ Transparency ▪ City lacks financial ▪ Lack of end-to-end ▪ No tracking of future challenges with and administrative performance pension liabilities regard to govern- autonomy (97% of management to ▪ Public utilities PoS’ budget from ment activities evaluate spending operating at a loss central government), quality or personnel – T&T ranked 73 of (e.g. WASA and MOLG does not performance 178 by Trans- operating at a TT have the mandate ▪ POSC receives only parency 391 mn deficit) single out any one International ~50% of approved single city budget due to – 3 rd party auditing, corporation administrative but not typically ▪ Insufficient tax base process by a indepen- maximization — .08% – dent, non-local Lack of training in property tax-GDP firm PoS and central ratio vs. 1% in ▪ Widely varying government developed countries – capabilities, both Low financial ▪ Underutilized between and within threshold to send sources of fee ministries and projects to central revenue (e.g. POSC corporations government for could be charging up responsible for key approval to 10x current rent in city services some areas) McKinsey & Company | 18 SOURCE: Interviews and published research

Some Preliminary Lessons • Prioritization is not a straightforward exercise • Informing about solutions is not the same as communicating with stakeholders • Institutional capacity for urban management is proportional to country size • Need to build human capital with multi- sectorial vision for urban planning

Inter-American Development Bank Emerging and Sustainable Cities Initiative (ESCI) Methodological Guide and Indicators available at: www.iadb.org/cities

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