Methodological Guide Emerging and Sustainable Cities Initiative Second edition July 2014
Methodological Guide Emerging and Sustainable Cities Initiative Second edition
July 2014
Inter-American Development Bank
© Inter-American Development Bank, second edition, 2014. All rights reserved. This document was prepared by the Emerging and Sustainable Cities Initiative (ESCI) under the coordination of Carolina Barco (Senior Advisor), with the assistance of the Office of the Coordinator General. The document benefited from the contributions of: Ellis J. Juan, Horacio Terraza, Huáscar Eguino, Marcia Silva, Ramón Zamora, Luis Manuel Espinoza, Ricardo de Vecchi, María Isabel Beltrán, David Maleki, Rebecca Sabo, Sebastián Lew, Federico Scodelaro and Martin Soulier. Nancy Moreno was responsible for the general editing of the document. Coordinating Team of the Emerging and Sustainable Cities Initiative (ESCI) General Coordination: Ellis J. Juan Sectoral Coordinators: Horacio Cristian Terraza (INE) and Huáscar Eguino (IFD) Senior Advisor: Carolina Barco Country Team Leaders Omar Garzonio (Argentina) Arturo Alarcón (Bolivia) Marcia Silva (Brazil) Veronica Adler (Chile and Uruguay) Ramiro López-Ghio (Colombia) Beatriz López (Costa Rica) Javier Grau and Alejandro Gomez (Dominican Republic) Fernando Orduz (Ecuador) Juan Pablo Ortiz Meyer (El Salvador) José Larios (Guatemala y Peru) Juan Poveda (Honduras) María Eugenia de La Pena (Mexico) Roberto Camblor (Paraguay) Javier Grau and Alejandro Gómez (Santo Domingo) Gilberto Chona (Trinidad and Tobago, Barbados) Operations María Isabel Beltrán Ricardo De Vecchi Federico A. Scodelaro Rebecca T. Sabo Ivelisse Justiniano Sebastián Lew
Patricio Zambrano Diego Arcia Avelina Ruiz Brenda Stefan David Maleki (Climate change) Roland Krebs (Urban expert) Lea Rufenacht (Urban expert) Harvey Scorcia (Mobility) Martin Soulier (Argentina) Oswaldo Porras (Colombia) Marcelo Facchina (Brazil) Renata Seabra (Brazil) Isabel Carreras (Mexico) Dissemination and knowledge Luis Manuel Espinoza Andreina Seijas Z’leste Wanner Ramón Zamora María Camila Ariza Administration Luis López Torres María Zamorano Carla del Águila
Contents
Acronyms and Abbreviations........................................................................................ vii How to Use this Guide................................................................................................... ix
1.
Introduction.......................................................................................................... 1 A. Background and Context............................................................................................... 1 B. Approach ....................................................................................................................... 2
2.
General Vision: Process, Stages and Phases.......................................................... 13 A. First stage: Development of Action Plan..................................................................... 14 B. Second stage: Execution..............................................................................................23
3. Phase 0 – Preparation: Collection of Basic Information and Identification of Stakeholders ............................................................................................ 27 A. Organizing the implementation of the ESCI methodology.........................................29
4.
Phase 1 – Analysis and Diagnosis: Identification of Problems................................ 37 A. Preliminary diagnosis ................................................................................................. 37 B. Identification of the challenges of sustainability: Indicators and traffic lights.........38 C. Three baseline studies: Greenhouse gases, risk and urban footprint....................... 40 D. Additional baseline studies ....................................................................................... 48
5.
Phase 2 – Prioritization: Selection of the Topics the City Should Target................. 55 A. The filters.....................................................................................................................57 B. Prioritization process..................................................................................................76
6.
Phase 3 – Action Plan.......................................................................................... 81 A. What is an Action Plan?............................................................................................... 81 B. Why have an Action Plan for sustainability?...............................................................87 C. What is the content of an ESCI Action Plan for sustainability? ................................ 88 D. How is an ESCI Action Plan for sustainability structured?....................................... 88 E. Prioritized interventions: Where do we start?........................................................... 90
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Methodological Guide Emerging and Sustainable Cities Initiative
F.
Guidelines for preparing the financial plan................................................................93
G. Programming for implementation...............................................................................95 H. Citizen Monitoring System and the Action Plan........................................................ 98 I.
7.
How do we link up with the Bank?........................................................................... 100
Phase 4 – Pre-investment.................................................................................. 105 A. Pre-investment studies..............................................................................................105 B. Institutional and regulatory framework ...................................................................106 C. Financial structuring of the project..........................................................................108 D. Project execution timetable...................................................................................... 116
8.
Phase 5 – Citizen Monitoring System...................................................................121 A. ESCI Monitoring System............................................................................................ 121 B. Functioning and start-up of the system.................................................................... 123
9.
Cities Network....................................................................................................131 A. Cities Network .......................................................................................................... 131 B. Communication platform to support the dissemination and exchange of knowledge products.............................................................................................. 133 C. Urban dashboard....................................................................................................... 137
10. Conclusions....................................................................................................... 145 ANNEX 1: ESCI Indicators Annex 1: ESCI Indicators ANNEX 2: Climate Change and Disaster Risk Filter Annex 2: Climate Change and Disaster Risk Filter ANNEX 3: Economic Filter Annex 3: Economic Filter ANNEX 4: Terms of Reference of Baseline Studies Annex 4: Terms of Reference of Baseline Studies ANNEX 5: Terms of Reference of Additional Baseline Studies Annex 5: Terms of Reference of Additional Baseline Studies
iv
Contents
ANNEX 6: Terms of Reference of the Public Opinion Survey Annex 6: Terms of Reference of the Public Opinion Survey ANNEX 7: Incorporation of the Topic of Cities and Sustainability into Country Strategies Annex 7: Incorporation of the Topic of Cities and Sustainability into Country Strategies Electronic Links 1.
Methodological guide, digital version http://www.iadb.org/es/topics/cities-emergings-and-sustainable/implementation-of theenfoque-of-the-initiative-cities-emergings-and-sustainable,7641.html?#metodologia
2.
Urban dashboard http://www.urbandashboard.org
3.
ESCI communication platform http://www.iadb.org/cities
4.
Ciudades Cómo Vamos network http://redcomovamos.org
5.
Citizen monitoring system “Cómo vamos La Paz” www.comovamoslapaz.com
v
Acronyms and Abbreviations
ABS
additional baseline studies
Banobras
Banco Nacional de Obras y Servicios Públicos SNC
BOO
build–own–operate
BOOT
build–own–operate–transfer
BOT
build–operate–transfer
BRT
Bus Rapid Transit
C40
C40 Cities Climate Leadership Group
Caixa
Caixa Econômica Federal
CIOC
Integrated Control and Operations Center
DBOM
design–build–operate–maintain
ESCI
Emerging and Sustainable Cities Initiative
Findeter
Financiera de Desarrollo Territorial
FMM
Division of Fiscal and Municipal Management
GDP
gross domestic product
GHG
greenhouse gases
GPC
Global Protocol for Community-Scale Greenhouse Gas Emissions
HDI
Human Development Index
ICF
International Community Foundation
ICLEI
Local Governments for Sustainability
ICT
information and communication technologies
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Methodological Guide Emerging and Sustainable Cities Initiative
viii
IFD
Institutions for Development office
IGC
Initiative group coordinator
Implan
Municipal Planning Institute
INE
Infrastructure and Environment office
KRIHS
Korean Research Institute for Human Settlements
KSP
knowledge-sharing program
LAC
Latin America and the Caribbean
MDC
central district municipality
NDF
Nordic Development Fund
NGO
non-governmental organization
O&M
operation and maintenance
PPA
public–private association
SEMAPA
Servicio Municipal de Agua Potable y Alcantarillado
SIMOP
Public Works Simulation Model
UABCS
Autonomous University of Baja California Sur
UNDP
UN Development Program
UNEP
UN Environment Program
UN-Habitat
UN Human Settlements Program
VPC
Vice Presidency for Countries
VPS
Vice Presidency for Sectors
WRI
World Resources Institute
YPF
Yacimientos Petrolíferos Fiscales
How to Use this Guide
It is a fact that the cities of Latin America and the Caribbean (LAC) are witnessing a process of accelerated urbanization, which is creating important challenges for the sustainable urban development of the region. These challenges are unrelenting and require an integrated treatment to meet the needs of the present without compromising the welfare of future generations. For this reason, in 2010, the Emerging and Sustainable Cities Initiative (ESCI) appeared as an institutional proposal of the Inter-American Development Bank (IDB), with the aim of supporting, through a multi-sectoral vision, the emerging cities of LAC in their efforts to improve the quality of life of their citizens. The immediate objective of the proposal is to contribute to the environmental, urban and fiscal sustainability of the cities of the region and to their governability. With a view to achieving the objectives proposed, and with the support of McKinsey, a consulting firm, the ESCI in 2010 and 2011 developed a methodology of rapid application and diagnosis, which helps cities prepare their action plans by identifying strategic interventions that contribute to achieving sustainability targets in the short, medium and long term. One of the results of this stage was the launch of the first edition of the ESCI Methodological Guide in June of 2012. Simultaneously, with the objective of testing the methodological instrument designed, the Bank implemented an initial application in five pilot cities. Since then, the ESCI has been moving toward achieving the proposed target: Applying the methodology in 50 emerging cities of the region during the 2012–15 period. The lessons learned with the 40 cities that to date have joined the Initiative have enriched the experience of applying the methodological instrument, including by identifying opportunities for its improvement and deepening. It is with this experience gained that the Initiative now launches its second edition of the Methodological Guide, with the aims of giving more effective support to the cities applying the methodology and of expanding the concepts associated with the process.
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Methodological Guide Emerging and Sustainable Cities Initiative
With a view to converting the ESCI methodology into a regional public good, this second edition of the Methodological Guide has been designed for use by: officials of city governments, municipalities and public entities at different levels; officers of local state and national development institutions; local academic institutes; non-profit civil organizations; IDB specialists; and in general, any other type of institution linked to the sustainable development of LAC cities. The guide describes the step-by-step application of the ESCI methodology, implemented through a series of phases, from the formation of teams and basic data collection to the planning of implementation strategies and the start-up of the sustainability monitoring system. Each chapter includes activities, results and examples, along with definitions and useful advice. Achieving the expected results using the methodological instrument, and the effectiveness of its contribution to meeting the objectives proposed, depend on its disciplined and systematic application. In this respect, the cities of the region can count on the support of the group of specialists who are part of the Initiative at the IDB. The updated version of the guide is available at: http://www.iadb.org/es/temas/ciudades-emergentes-y-sostenibles/implementacion-del-enfoque-de-la-iniciativa-ciudades-emergentes-ysostenibles,7641.html?#metodologia
x
Introduction
1
A.
Background and context
1.1
Urbanization is taking place at a rapid rate in LAC. Proof of this is that LAC is now the second most urbanized region of the planet, growing from an urbanization rate of 41% in 1950 to one of 79% in 2010.1 If this trend continues, in 20 years, 90% of the population of Latin America will be living in cities.
1.2
However, the characteristics of urban development in LAC have varied in recent decades. In the past, growth was more marked in the large cities, which expanded at a faster rate than other areas of the various countries; now, however, a new phenomenon has emerged. Although the large Latin American metropolises still have an important specific weight in the region, these mega-cities (for example, Buenos Aires, Mexico City, São Paulo, among others) no longer have the highest growth rates. Instead, intermediate cities now head regional urban population growth. This new pattern of urbanization is creating enormous challenges for the emerging cities of LAC.
1.3
Although the rapid urban growth in intermediate cities has created opportunities for millions of people, it also generates massive challenges for regional governments, which need to expand their provision of basic services, guarantee a better quality of life, promote employment generation, protect the environment and deal with the challenges of climate change. Moreover, LAC’s intermediate cities are still characterized by high rates of poverty, and their governments must, in general, strengthen their institutional and operational capacity—a more urgent demand in view of the permanent shortage of resources for investment and the consequent need for efficient fiscal management.
1
United Nations (2012), World Urbanization Prospects, the 2011 Revision. New York: United Nations. Available at: http:// www.un.org/en/development/desa/publications/world-urbanization-prospects-the-2011-revision.html.
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Methodological Guide Emerging and Sustainable Cities Initiative
1.4
Moreover, in the last two decades, political decentralization at the municipal level has
Introduction
intensified considerably in LAC. A consequence of this has been that local governments have assumed ever more responsibilities with respect to the provision of public and social services. However, fiscal decentralization in these cities has not followed at the same rate: Most municipalities in the region are still not fiscally independent and report deficiencies in their fiscal management. Consequently, intermediate cities have very limited fiscal space, which affects their credit capacity and their ability to develop strategic projects, both public and those with the potential for private-sector participation.
1.5
To help emerging cities face these challenges, in 2010, the Bank launched the Emerging and Sustainable Cities Initiative (ESCI). With this Initiative, the IDB is promoting, through a multi-sectoral vision, sustainable growth in these cities, working to prevent their challenges from becoming limiting factors in their development. The Initiative includes helping cities manage their vulnerability to natural disasters and adapt to and mitigate climate change—priorities that do not usually appear in local agendas.
1.6
As an instrument for providing this support, between 2010 and 2011, the Initiative designed a methodology for rapid application and diagnosis, which guides cities in preparing and implementing action plans for their sustainability. Consequently, in June of 2012, the first edition of the ESCI Methodological Guide was launched. Since that time, this instrument has been tested in 40 cities and 15 action plans have been prepared. The lessons learned from its application have improved, deepened and enriched the methodological process. This second edition of the guide gathers together the experiences, adaptations, improvements and expansions achieved during the last few years.
B. Approach 1.7
The ESCI is a technical assistance program for the governments of intermediate cities in LAC that are experiencing tremendous and dynamic demographic and economic growth. This rapid evaluation program identifies, organizes and prioritizes short-,
2
Introduction
mental, social, fiscal and governance projects and proposals, to improve the quality of life in Latin American cities and achieve greater sustainability.
1.8
The ESCI represents a new approach to urban development in LAC, dealing with the most urgent challenges of the city. It uses an integrated and interdisciplinary perspective, which is necessary for identifying the path to long-term sustainability. Conceptually
Introduction
medium- and long-term infrastructure projects; it also defines urban-planning, environ-
it consists of three dimensions: (i) environment and climate change; (ii) urban issues; and (iii) fiscal and governance issues.
1.9
The process starts by identifying the most urgent challenges to the city’s sustainability, through a rapid evaluation based on: (i) a quantitative analysis, using approximately 120 indicators obtained mainly from secondary information; (ii) a technical and qualitative analysis, based on the deep knowledge of specialists and technicians experienced in the sectoral topics of the Initiative; and (iii) baseline studies, which include maps of vulnerability to natural disasters and the effects of climate change, studies of urban growth, and an inventory of the effect of greenhouse gases (GHG). As a supplement, based on the city’s situation, additional baseline studies are included, which can cover topics such as fiscal management, citizen security, transport (motorized and non-motorized), water and sanitation, and solid waste, among others.
1.10 In this first stage of the methodology, the analysis and evaluations provide a diagnosis of the sectors and areas that require more attention. The information obtained is sifted by instruments and prioritization criteria or filters. For this, the ESCI methodology uses comparisons of the baseline indicators with the Bank’s standards, plus four filters (public opinion, climate change and disaster risk, economics and multi-sectorality). Application of these instruments rapidly identifies strategies, areas of action and interventions, which are reflected in an Action Plan. Normally, this first stage of application of the methodology, which ends with preparation of the city’s Action Plan, is carried out in a period of 12 months, according to the particular characteristics of each case. The Action Plan includes the implementation timetables, the responsible actors, and the possible sources of financing for the strategic interventions defined in the plan.
3
Introduction
Methodological Guide Emerging and Sustainable Cities Initiative
1.11 After preparing the Action Plan, the second stage of development of the methodology begins, which lasts three to four years. In this stage, the Bank supports the city in identifying funds and preparing the priority interventions. 1.12 A fundamental part of the methodology during the process of analysis, diagnosis and preparation of the Action Plan consists of incorporating the concerns and proposals of citizens and interested organizations (for example, private sector companies, academic institutions, non-profit entities and the community). In this context, and with a view to greater sustainability, a fundamental part of the Initiative is to propose the creation of an independent monitoring scheme for citizens, which follows up on the topics prioritized by the city and its citizens. 1.13 This guide provides detailed information about and examples of the phases of the methodology that the technical teams use during the process of its application.
What is a sustainable city? 1.14 It is a city that offers a good quality of life to its citizens, minimizes its impact on the environment, preserves its environmental and physical assets for future generations, and thereby promotes its competitiveness. It also has a local government with the fiscal and administrative capacity to carry out its urban functions with the active participation of citizens.
What are emerging cities? 1.15 Emerging cities are urban areas classified as intermediate in relation to the total population of each country that also have steady population and economic growth, in an environment of social stability and governability. 1.16 An analysis of population growth in LAC countries shows that intermediate cities have been growing at a faster rate than larger cities and are more dynamic. An analysis of Mexico, in which data by municipality were obtained, shows that the economic
4
WHAT IS A SUSTAINABLE CITY? CO
CO
%
OFFERS A GOOD QUALITY OF LIFE TO ITS CITIZENS MINIMIZES ITS IMPACT ON THE NATURAL ENVIRONMENT PRESERVES ITS ENVIRONMENTAL AND PHYSICAL ASSETS PROMOTES ITS COMPETITIVENESS HAS A LOCAL GOVERNMENT WITH FISCAL AND ADMINISTRATIVE CAPACITY THE CITIZENS PARTICIPATE ACTIVELY
%
$
Methodological Guide Emerging and Sustainable Cities Initiative
component of the Human Development Index (HDI) of cities with the highest population
Introduction
was less dynamic than for intermediate cities. Also, it is estimated that the contribution of intermediate and emerging cities in LAC to regional gross domestic product (GDP) is 30%. This means that the greatest challenge to urban sustainability in LAC is precisely in the intermediate cities, which have the highest population and economic growth rates in relative terms.2 In particular, these urban centers face the challenge of achieving sustainable development without repeating the errors committed by the large Latin American metropolises.
1.17 There are very good reasons to focus an analysis of urban sustainability on the intermediate cities of the region. First, since many of these cities, as already mentioned, have very dynamic economic and population growth, the future of urban development in LAC depends to a large extent on what happens there. A second is that these cities are at a stage where it is still possible to exploit economies of scale, control the costs of agglomeration and thus raise global efficiency. These cities also are on a scale that facilitates the effectiveness of interventions aimed at sustainability. Finally, improvements in the sustainability of intermediate cities and their quality of life would reduce the economic and population pressures on the large metropolises and facilitate interventions aimed at overcoming the large imbalances that characterize the latter.
2
6
In absolute terms, the large cities continue to have the highest growth ratesin the region.
WHAT ARE EMERGING CITIES?
INTERMEDIATE URBAN AREAS
SUSTAINED POPULATION ROWTH
CONTINUING ECONOMIC DEVELOPMENT
IN LATIN AMERICA AND THE CARIBBEAN
THERE ARE 140 EMERGING CITIES
50 CITIES HAVE ALREADY JOINED ESCI
+ EMERGING CITIES CAN JOIN THE ESCI PROGRAM IN THE NEXT FEW YEARS
SOCIAL STABILITY AND GOVERNABILITY
Introduction
Methodological Guide Emerging and Sustainable Cities Initiative
Box 1.1 How do we select intermediate cities? The case of Brazil In Brazil, the Initiative has been working with la Caixa Econômica Federal (the largest public bank in LAC) to apply the ESCI methodology in a series of cities. Brazil is a country of continental dimensions: it is the world’s seventh largest economy, with an urbanization rate of 84% and 5,570 municipalities. In a country with these characteristics, the key question is: How do we select the cities that will be part of the program? The Bank’s specialists in Brazil designed a selection mechanism to optimize the use of resources. For this it was necessary to apply a well-defined and transparent methodology that identified the cities with the highest current and future demand for services and for improvements in the quality of life. The starting point was to determine the number of intermediate cities using the ESCI criteria for Brazil—that is, cities with 100,000 to 2,000,000 inhabitants. Brazil has 263 municipalities spread across the country, with 50% concentrated in the southeast. The second step was to define the emerging cities, which are characterized as those that have experienced positive population growth (above the national average) in recent years, have reported sustained growth in per capita GDP, and have rates of institutional quality and governability that permit the Bank to work jointly with la Caixa. According to these criteria, it was clear that most of the cities were located in the southeast of the country, where living conditions are a little better than in the north. This gave continuity to the historic concentration of investments in this region. To diversify the area of investment, the ESCI and la Caixa opted to expand the variables to be considered for selecting cities in Brazil. Thirty variables were included, divided into four categories, each with the same weight (25%): category 1, socioeconomic; category 2, urban; category 3, environmental; and category 4, fiscal and governability. This process concluded with a ranking of cities, from which the 50 emerging cities with the highest scores were preselected. These, in turn, were divided by region (according to five regions), and one city per region was selected for application of the ESCI methodology with the support of la Caixa. The following box shows the distribution of the cities. (continued on the next page)
8
Box 1.1 How do we select intermediate cities? The case of Brazil
(continued)
THE SELECTION OF INTERMEDIATE CITIES
THE CASE OF BRAZIL
Introduction
Introduction
JOÂO PESSOA GOIÂNIA
VITÓRIA
FLORIANÓPOLIS INTERMEDIATE CITIES
BRAZIL
EMERGING CITIES (+50)
SELECTED CITIES THE NUMBER OF CITIES AND THEIR LOCATION ON THE MAP ARE ESTIMATES AND MAY VARY ACCORDING TO THE NEEDS OF THE PROGRAM
9
Introduction
Methodological Guide Emerging and Sustainable Cities Initiative
10
Introduction
Introduction
11
2
General Vision: Process, Stages and Phases
2.1
In general, the ESCI methodology comprises six phases, which are grouped into two stages. The first stage, which includes the first four phases, consists of a rapid evaluation of the urban reality and ends with the preparation of an Action Plan for the city’s sustainability, containing specific proposals for intervening in the areas identified as critical; this stage takes approximately one year. The second stage of the methodology,
Figure 2.1 The phases for a city
Phases of a city
in the
EMERGING and SUSTAINABLE CITIES Initiative
Phases
ANALYSIS PREPARATION
& DIAGNOSIS
1
PRIORITIZATION
2
ACTION PLAN
3
!
Deliverables
Activities
Initiate data collection Form work teams Identify stakeholders
First mission
Applying filters:
City overview
Public opinion Economic cost Climate change Specialists
Complete indicators Traffic light exercise
Contracting of technical inputs
Baseline studies
List of stakeholders and initial view of strengths and problem areas
Set of indicators with traffic light analysis, comparisons with other cities and baseline studies
Critical areas for the city’s sustainability
List of prioritized areas and sectors
Formulating Action Plans for identified strategies Initial study Create detailed Action Plan Validate Action Plan High level Action Plan
PRE-INVESTMENT
MONITORING
4
5
Financing studies in prioritized sectors: Feasibility Economic Engineering Environmental Prepare vertical cooperation agreement Set of actions with basic descriptions
Design and implementation of a monitoring system Indicators for prioritized areas
INVESTMENT
Action Plan Execution Projects ready for bidding and financing
Citizen perception Topics of interest Monitoring System
CORE OF THE METHODOLOGY
PRE-INVESTMENT + MONITORING
Development of the Action Plan - 1 year
Action Plan Execution - 3 years
New public services and infrastructures
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Methodological Guide Emerging and Sustainable Cities Initiative
General Vision
which focuses on the initial execution of the Action Plan and the start-up of the citizen monitoring system, contains two phases and lasts three to four years, depending on the interventions contained in the Action Plan.
A.
First stage: Development of Action Plan
2.2
The first stage covers the phases of preparation; analysis and diagnosis; prioritization; and preparation of the Action Plan. Although this guide covers all phases in detail, a brief summary of each one is given here:
Phase 0 – Preparation 2.3
This phase consists of the following actions: (i) form the work teams of the institutions directly involved in the process of applying the methodology; (ii) collect, through secondary sources, information for the identification of indicators; (iii) identify the city’s key stakeholders that have the potential to participate in the future citizen monitoring scheme; and (iv) define the general vision of the city (an expansion of this definition is in the chapter on the Action Plan).
2.4
In addition, the main technical inputs for the prioritization exercise are contracted: climate change baseline studies3 and an impact study of urban growth.4 Also, possible consultants are selected to prepare economic impact studies and a public opinion survey, which will be needed later in the prioritization exercise.
2.5
Also in this phase, the Initiative’s relationship with the city is defined, after receiving approval from the national government. As a prerequisite for starting the work, the
3
This includes the basic technical studies and the measuring instruments needed to adopt measures related to mitigation of and adaptation to climate change.
4
This study provides the basic quantitative and qualitative information for determining past and current growth trends, which are used to generate long-term projections of urban and regional trends and the associated costs.
14
General Vision: Process, Stages and Phases
try counterparts at the local and national levels. This is done by a commitment letter in which the city expresses its interest in working with the ESCI, confirms the participation of its high-level officials, adopts a method for the easy and fluid exchange of information, and indicates national-level approval of the expression of interest. These requirements guarantee that a process is being initiated at the request of the interested parties, and that it has the interest and commitment needed for its satisfactory development.
General Vision
Initiative must have received the applications, commitment and approval for the coun-
Phase 1 – Analysis and diagnosis 2.6
This phase starts with the first meeting between the city and the Bank, through the Launch Mission and the Initiation Workshop. The following must be included in the framework of this first meeting: local officials, officials of the national or state agencies that influence the city’s development, and other local agents that are stakeholders in the process and represent various sectors (i.e., local authorities, chambers of commerce, NGOs, universities, etc.). The purpose of these meetings is to identify the city’s general problems.
2.7
Also in this phase, the data obtained from secondary sources are compared with information collected during field research and interviews, and with specific data received from the authorities.
2.8
The analysis and diagnosis to be carried out in this phase is based on the collection of the information required for estimating a set of approximately 120 indicators that cover the three ESCI dimensions: (i) climate change and environment; (ii) urban development; and (iii) fiscal and governability. Together, these three dimensions encompass 11 pillars, 23 topics and 59 subtopics, each with their defining indicators. The detailed organization of the topics, subtopics and indicators is given in “Annex 1 – ESCI Indicators.”
2.9
The indicators used in the ESCI constitute a tool for rapidly identifying the critical problem areas in the emerging cities of LAC based on objective technical criteria. They were
15
ANALYSIS AND DIAGNOSIS
COLLECTION OF INFORMATION REQUIRED TO ESTIMATE A SET OF APPROXIMATELY 120 INDICATORS COVERING THE 3 ESCI DIMENSIONS
General Vision
INDICATORS 3
23
59
120
DIMENSIONS
TOPICS
SUBTOPICS
INDICATORS
DEBT SPENDING MANAGEMENT TAXES AND FINANCIAL AUTONOMY
WATER
$
2 3 T OPIC S
% FISCAL AND GO VER N
C
TY ILI B A
3
INT
PARTICIPATORY PUBLIC MANAGEMENT
E
GR
AT
ED U
SOLID WASTE MANAGEMENT ENERGY
ND ENVIRONME NGE A NT CHA ATE LIM
TRANSPARENCY MODERN PUBLIC MANAGEMENT
SANITATION AND DRAINAGE
AIR QUALITY CLIMATE CHANGE MITIGATION
R B A N DE V EL O P M E N T
NOISE
HEALTH VULNERABILITY TO NATURAL DISASTERS
SECURITY
LAND USE AND MANAGEMENT
EDUCATION CONNECTIVITY EMPLOYMENT RESULT OF DIAGNOSIS OF THE CITY OF QUETZALTENANGO, GUATEMALA.
URBAN
MOBILITY INEQUALITY ECONOMIC AND COMPETITIVENESS TRANSPORT
General Vision: Process, Stages and Phases
eas/topics/subtopics of the Initiative, as part of the design process of the methodology. On this basis, these indicators have been evolving and adapting to the urban realities of the region; they are given in “Annex 1 – ESCI Indicators,” which was published in 2013 and constitutes the current source of reference about them.
2.10 Box 2.1 gives a general idea of the distribution of dimensions, pillars and topics included in “Annex 1 – ESCI Indicators” and also presents examples of the indicators.
General Vision
prepared and validated during the 2010–11 period by Bank specialists in each of the ar-
Box 2.1 ESCI dimensions, pillars, topics and indicators Number of Indicator example indicators (unit of measurement)
Dimension
Pillar
Topic
Environmental Sustainability and climate change
Management of the environment and consumption of natural resources
Water
6
Sanitation and drainage Management of solid waste Energy
3
Urban sustainability
7 8
Continuity of water service (hours/ day) Households with a home connection to the sewer system (percentage) Remaining life of the site where the landfill is located (years) Average length of electrical interruptions (hours/customer) Air quality index (number) Existence and monitoring of GHG Inventory (Yes/No) Existence, monitoring and enforcement of regulations on noise pollution (Yes/No) Critical infrastructure at risk due to inadequate construction or placement in areas of non-mitigable risk (percentage)
Mitigation of greenhouse gases (GHG) and other forms of pollution
Air quality Mitigation of Climate change Noise compliance
3 4
Reduction of vulnerability to natural disasters and adaptation to climate change Control of growth and improvement of human habitat
Vulnerability to natural disasters in the context of climate change
8
Land use, Planning, and zone Urban inequality
8
Quantitative housing deficit
3
Promotion of sustainable urban transport Promotion of competitive and sustainable local economic development
Mobility and transport
12
Percentage of housing located in informal settlements (percentage) Average age of the public transport fleet (years)
Competitiveness of the economy
3
1
Days to obtain a business license (number of days)
(continued on the next page)
17
General Vision
Methodological Guide Emerging and Sustainable Cities Initiative
Box 2.1 ESCI dimensions, pillars, topics and indicators (continued) Dimension
Fiscal sustainability and governability
Pillar
Topic Employment
2
Connectivity
3
Provision of high-level Education social services and promotion of social Security cohesion Health Adequate mechanisms Participatory of government public management Modern public management
Adequate management of revenue Adequate management of expenditure Adequate management of debt and fiscal obligations
Number of Indicator example indicators (unit of measurement)
9 7 6 3 4
Transparency
3
Taxes and financial autonomy
6
Expenditure Management
5
Debt
3
Average annual unemployment rate (percentage) Fixed broadband Internet subscriptions (number of subscriptions for every 100 inhabitants) Student/teacher ratio (students/ teachers) Victimization rate (percentage) Life expectancy at birth (years) Public reporting sessions per year (number) Existence of a multi-annual budget (Yes/No and years) Municipal government accounts audited (percentage) Utility cost recovery (percentage)
Gross Capital budget (capital expenditure as percentage of Total expenditures) Contingent liabilities as percentage of own revenue (percentage)
2.11 With the results obtained from the indicators, we can define the state of each topic by comparing the estimated values for each indicator against the values related to internationally agreed indexes or against benchmarks from similar cities in the region or country. These benchmarks are defined for each indicator in “Annex 1 – ESCI Indicators.” The indicators have three ranges: “green” if the service and management are adequate or good; “yellow” if there are some difficulties in service or management; and “red” if the service or management is deficient and needs attention. Each indicator receives a color strictly in line with the range where the indicator’s value falls.
2.12 It is important to state that the indicators in “Annex 1 – ESCI Indicators” are used by the Initiative as a minimum base in all the cities where it works. However, in some specific
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General Vision: Process, Stages and Phases
vance for a city. For example, in cities whose historic centers are especially important, indicators for heritage and historical centers and/or tourism have been added. In these cases, the benchmarks must be defined for each additional indicator so that we can perform the “traffic-light” exercise.
2.13 The ESCI methodology requires defining, based on this system of traffic lights, a “color” for each of the 23 topics in the Initiative. The value or “color” for each topic is assigned in a technical discussion between the specialists of the city and the Bank, who take into account the color of the indicators and the information on the topic for the city and then assign a color to the topic as a whole. In this way, all the top-
General Vision
cases, indicators have been added to analyze and diagnose topics of particular rele-
ics with difficulties before the start of the prioritization process go through a technical review.
2.14 In parallel to the collection of indicators and the traffic-lighting of topics, in this phase, the sectoral records containing all the qualitative information on each topic (or group of topics) are completed. The sectoral records are documents of two to three pages containing: a. A diagnosis of the problem areas of the sector, for which the indicators identified and others considered important are used as support. b. A definition of who has jurisdiction over the different aspects of the sector. c. A description of existing initiatives—whether they are in the process of execution or in preparation—that aim to address totally or partially the problem areas described. d. Preliminary proposals that illustrate possible solutions for dealing with the problems under analysis.
2.15 Also in this phase, the city should have the preliminary results of the baseline studies mentioned previously (vulnerabilities, GHG inventory and urban growth); it should also have contracted consultants to prepare the other studies required for prioritization, such as the public opinion survey and the economic impact study.
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Phase 2 – Prioritization 2.16 In this phase, the critical areas for the city’s sustainability are prioritized on basis of the information obtained in the previous phases. The prioritization exercise uses the baseline studies to apply four weighted filters.5 2.17 Based on the traffic-light exercise, a prioritization process is started for the critical topics, which are analyzed using four criteria or “filters”: (i) evaluation by citizens, (ii) the importance or economic impact of each topic, (iii) the relation of the topic to climate change (mitigation and adaptation), and (iv) the interrelation of the topic with other sectors (looking for the most integrated responses). 1. Public opinion filter: valuation of the topic according to its importance for citizens, based on the public opinion survey. 2. Economic impact filter: valuation of the topic according to the socioeconomic benefits that solving the problems would bring. Two methodologies are proposed for the economic impact study, which will be discussed in the chapter on prioritization. 3. Climate change filter: valuation based on the degree to which the topic is affected by phenomena related to climate change and greenhouse gas (GHG) emissions; this information is obtained from the climate change baseline studies. 4. Multi-sectorality filter: valuation by specialists with respect to the multi-sectoral effects of the intervention, favoring interventions that have a broader effect and contribute more to implementing the ESCI’s vision of the integrated nature of sustainable development. The aim of this filter is to understand the effects that the challenges identified in different sectors can have and to anticipate the impacts of the interventions defined as priorities. An example is the analysis of poor management of solid waste in a city; this situation can lead to the inadequate use of water bodies (if they
5
The filters relate to prioritization criteria, which determine whether a given topic has greater or lesser priority than another.
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General Vision: Process, Stages and Phases
impacts such as obstruction/congestion of the existing infrastructure, water and air pollution, and the proliferation of pests, with consequent risks to citizens’ health.
2.18 Each filter assigns to each topic a score of 1 to 5, according to the criteria for that filter. A list is then prepared, containing the total scores for all of the topics, which are weighted as agreed with each city. The topics considered priorities are those with the highest scores, and these form the base for defining the interventions. This prioritization exercise is discussed and validated at the second meeting between the city and the Bank’s technical team that is applying the ESCI methodology. Next, the projects aimed at solving the priority problems are evaluated in light of their impact, feasibility, relation to existing initiatives in the sector, and the city’s jurisdiction for acting on each topic.
General Vision
are used as deposits for solid waste and sewage), which in turn generates negative
2.19 The methodology uses existing data, which it supplements and deepens with the qualitative participation of a group of specialists and stakeholders in each topic area. These discussions enrich the decisions and keep citizens and the municipality informed about and committed to the exercise. 2.20 At the end of this phase, a preliminary view of the most critical topics for the city has been developed. To be evaluated correctly, some of these topics may require deeper analysis than the collection of sectoral indicators and records that took place in phase 1. As a result, voluntarily and at the discretion of the team leader, additional baseline studies (ABSs) can be contracted so that the city can deepen aspects of particular interest.6 In line with the progress made in the application of the methodology, these contracts can be brought forward into phases 1 (analysis and diagnosis) and/or 2 (prioritization). With regard to this, the Bank has prepared terms of reference for contracting eight possible studies: (i) fiscal resources management; (ii) characterization of motorized transport; (iii) characterization of urban space, walkability and bicycle paths; (iv) connectivity; (v) water and sanitation; (vi) solid waste; (vii) energy; and (viii) citizen security. The specific content of each ABS is detailed in Chapter 4, Phase 1, section 4.34, table 4.2.
6
The Bank has designed terms of reference for contracting the eight ABS; these are listed in “Annex 5 – Terms of Reference of Additional Baseline Studies.”
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Phase 3 – Action Plan 2.21 This phase comprises the identification, development and selection of strategies and/ or actions for the areas prioritized in phase 2; the step-by-step preparation process can be found in Chapter 4, Phase 3, sections 6.1 to 6.35. The Bank’s technical team works in close collaboration with the team of city counterparts, obtaining technical depth and a strong sense of commitment from each entity. In this phase, the prioritized areas (i.e., those with the highest scores) are analyzed in more detail to recognize the opportunities for improving the existing situation and the risks involved in doing so, and to identify the sources of financing and the responsible actors that will enable the implementation of the defined interventions. 2.22 The city/IDB teams create an Action Plan for executing each of the identified interventions. Each project must have its own financial structure, timetable, responsible officers, estimate of the costs of pre-investment studies and of investment, and possible sources of finance. The Plan must consider short- and medium-term stages, in which the city administration has the resources and leadership to start specific actions and carry them out within its administrative period, taking into consideration political variables, the generation of results and monitoring. However, these actions are aimed at achieving long-term targets that must be met by future city administrations. This Plan is set out in the city’s letter of navigation for its road toward sustainability. At the end of this phase, an additional meeting is held between the Bank and the city, closing the Action Plan and validating it with the corresponding levels. 2.23 By applying the ESCI methodology, the Bank replaces the traditional approach of collecting and writing extensive studies (which contain detailed information and require long analysis times) with a methodology that uses rapid diagnosis and specific proposals. These proposals are defined on the basis of the abovementioned data and a fluid dialog between the Bank’s technical team, the consultants and the team of local counterparts. This dialog gives rise to a variety of technical solutions, reflections and proposals from the various actors of the city and the IDB, based on their sectoral experience as well as their work in other ESCI cities and on other urban-intervention projects.
22
2.24 Upon the conclusion of this phase, the initial implementation stage of the Action Plan begins, in which the Bank assists the city government with mobilizing financial resources and preparing projects for some of the solutions prioritized in the Plan.
B.
Second stage: Execution
Phase 4 – Pre-investment
General Vision
General Vision: Process, Stages and Phases
2.25 The second stage of the ESCI methodological instrument begins with the initial execution of the Action Plan. By initial we mean preparation of the pre-investment studies necessary for implementing the interventions proposed in the Plan, as the prelude to the investment stage itself. The pre-investment studies can be prepared at the prefeasibility or feasibility level and will be part of soft infrastructure projects (intangible goods) or hard ones (tangible goods), depending on the type of interventions prioritized in the previous phases. The Initiative collaborates with the city in financing or obtaining financial resources for the preparation of the pre-investment studies, and it provides technical assistance with preparing the terms of reference for contracting. 2.26 In addition to laying the foundation for access to financing for the projects in the long term, in this phase, the aim is to define the feasibility of executing the interventions set out in the Action Plan. The chapter of this guide on the pre-investment phase (sections 7.1 to 7.14) provides the necessary tools for its implementation.
Phase 5 – Monitoring 2.27 It is also fundamental to end the project with a strengthened citizen monitoring system, whose bases must be laid from the start (phases 0 and 1), with the participation of diverse private-sector and citizen groups in the discussions on priority topics. A monitoring scheme founded upon similar principles to those of the Cómo Vamos Cities Network is suggested, which brings together a group of independent citizens (from academia, the press, chambers of commerce, and other sectors) to create a light institutional scheme
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Methodological Guide Emerging and Sustainable Cities Initiative
General Vision
with economic and technical capacities. These schemes aim to establish an impartial and technical annual follow-up to the priority topics and to topics that citizens consider important for the city’s sustainability. A detailed description of the model and its startup is given in Chapter 8, Monitoring (sections 8.1 to 8.11).
2.28 To start up this mechanism and thus monitor the city’s progress in terms of its sustainability in the topics that the citizens consider to be priorities, the ESCI provides funds to initiate a new monitoring system or strengthen an already existing one, administered by an independent organization from civil society.
Cities Network, urban dashboard and communication platform 2.29 As more LAC cities apply the ESCI methodology, they will come to form part of a Cities Sustainable Network. Cities that join the Network will be able to share experiences, benchmarks, best practices and lessons learned. Capturing and sharing data and information increases the knowledge of the cities; it also permits rapid evaluation of and effective follow-up on the progress achieved and facilitates the exchange of good practices.
2.30 With this same objective, the Initiative is moving ahead with constructing an urban dashboard, which will give access to the diagnoses and action plans developed by each city linked to the ESCI. The website is at http://www.urbandashboard.org. 2.31 The ESCI also has a communication platform whose purpose is to publicize the initiative, its activities and its knowledge products. The platform aims to respond to the problem of lack of access to information, which many intermediate cities of LAC face, and to share the cities’ conditions, problems and achievements in relation to environmental, urban and fiscal sustainability. The ESCI communication platform uses various online communication media. Its base is the website at http://www.iadb.org/ciudades, supplemented by a blog and a Twitter account, all designed to systematically disseminate its knowledge products, articles, press statements, pictures, photos, computer graphics and videos in a way that relates all these components to each other.
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General Vision: Process, Stages and Phases
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Phase 0 – Preparation: Collection of Basic Information and Identification of Stakeholders
3.1
3
The cities that form part of the ESCI must be considered emerging in the terms defined by the Initiative—that is, they must have higher than average growth in their countries in terms of the economy and population. Once this is confirmed, the city can initiate application of the methodology and formalize its participation in the process. To do this, prior to the first meeting between the city and the Bank, the Bank must have received the city’s expression of interest in joining the Initiative, as well as the agreement of the national government agency responsible for actions and programming in the country. Finally, it must be established that the Bank’s country strategy includes the topics of sustainability in cities and integrated urban development.
3.2
After these requirements have been completed and the city’s entry into the ESCI has been accepted, the Bank Representative in the country informs the local authorities. The city government then designates a focal point in the city, which is the person with whom the IDB team leader will coordinate the activities to be implemented. This coordination will be recorded in writing and included in the high-level meetings to be held during the first mission to the city. Later, the details of the starting date and the program timetable will have to be coordinated with the local authorities acting as counterparts in the Initiative, with the objective of establishing a convenient timetable for all the parties involved. Ideally, the ESCI city government will be at the start of its mandate so there is sufficient time for it to complete the diagnosis and then develop the Action Plan and begin the Plan’s execution.
3.3
After the preliminary dialog with the local authorities has been established, phase 0 begins, which has four objectives: (i) form the IDB technical team; (ii) dialog with the various city sectors to obtain an initial vision of the most critical challenges to sustainability (as background to the main diagnosis to be developed in phase 1); (iii) identify the main stakeholders involved; and (iv) start collecting the general studies of the city and other relevant available information.
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Phase 0 – Preparation
3.4
Phase 0 requires approximately three to four weeks and must take place before the IDB technical team starts work in the city. In this phase, the studies available on each topic are assembled, the existing data and information on the city are collected, and the main institutions and actors involved are jointly identified (i.e., local team and Bank); this will enable better use of time in the subsequent phases of the methodology.
3.5
In phase 0, it is important to define the ESCI’s area of study and work. This is particularly critical in the case of conurbations or metropolitan areas. The area of study will necessarily have to include the physical and functional space of the city, going beyond political–jurisdictional limits.
3.6
It is also fundamental to move ahead with the contracting of the baseline studies and, if they are considered useful, of the ABSs. With the baseline studies, we are able to: evaluate trends in urban growth by analyzing the evolution of the urban footprint; prepare a vulnerability map of the city based on projections of extreme events related to climate change; and develop a GHG inventory for the city. With the ABSs, we are able to deepen knowledge of other specific topics considered relevant because of their role in the current situation of the city. Because of their depth, it takes approximately six months to prepare these studies, which is why it is important to start their contracting at this stage.
3.7
The five basic steps that the team leader and/or focal point of the Bank in the country will have to follow are: 1. Arrange the city’s letter of expression of interest and commitment. 2. Decide a work timetable, start date and times for each phase. 3. Identify the main political actors in the country/city. Special care must be taken in centralized countries, where the national authorities may be more active than the local ones, in which case it is necessary to have appropriate and timely representation at both levels of government. 4. Establish the first links with key stakeholders in civil society to involve them in the work of the ESCI right from the start of the process, with a view to the future startup of the citizen monitoring scheme.
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inventory of recent studies and documents (i.e., covering the last five years) in relation to ESCI topics and sectors.
A.
Organizing the implementation of the ESCI methodology
3.8
Because of the speed and complexity of the analysis required, the specialists who lead the application of the ESCI methodology have to evaluate and make decisions rapidly. In the absence of perfect information, the teams need to involve experts with deep knowledge of urban problems, along with local and national professionals who have ex-
Phase 0 – Preparation
5. Collect all available information that provides basic data on the city, including an
perience in all the areas, and leaders who give priority to the topic area.
3.9
That said, successful implementation of the methodology requires the teams involved to have an appropriate combination of leadership and specialization, since this is essentially an interdisciplinary task.
3.10 As mentioned previously, one of the actions to be developed as part of this phase of preparation is formation of the work teams of the institutions directly involved in the process of applying the methodology. Their organization will depend on the particular institutional scheme for each case/city. In general terms, the work teams come from the Bank, the respective local authorities (municipal and national), and/or other organizations involved (e.g., local development agencies, NGOs, etc.). 3.11 From the organizational point of view of the Bank, a coordinating group has been formed to execute the ESCI. The Initiative Coordinating Group (ICG) is led by a general coordinator, who reports to the Vice Presidency for Sectors (VPS), and two managing coordinators: one representing the Infrastructure and Environment office (INE) and the other the Institutions for Development office (IFD). For individual projects in each city, the Bank forms a technical team consisting of: (i) a specialist who acts as team leader—ideally, this person is from the Bank’s representation in the country; (ii) a sectoral coordinator responsible for supervising programs in a group of countries; and (iii) experts with knowledge and experience in each topic of the ESCI dimensions. On average, the
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Phase 0 – Preparation
technical team should have between seven and nine specialists for all the areas included in the analysis.
3.12 In the absence of a team leader who is part of the Bank’s representation in the country where the work is to be done, the Bank assigns a specialist from its head office to perform this role; it also appoints a specialist who is in the country and has knowledge of institutional details and the local conditions in cities. The main function of the local specialist is to be the liaison between the team leader, the technical team and the team of local counterparts. It is also desirable to have a temporary support professional whose primary function is to collaborate in the processes of collecting information, following up on the indicators, and applying the methodology during the various stages. 3.13 The city, for its part, forms a team of local counterparts that has, as a minimum, a coordinator; this individual interacts with the local institutions and with the implementing teams, coordinates visits and agendas, and coordinates and agrees on actions and missions. It is recommended that the coordinator holds an executive-level position in the local administration, with access to the mayor or governor, as well as to key areas (treasury/finance, planning, infrastructure). Also, each department of the city government that participates in the process must appoint a technical officer with responsibility for the topic areas related to their department. 3.14 In addition, given the Bank’s limited capacity to replicate the model in more cities than those in the Initiative, the methodology has gradually been adapted to become a regional public good. Strategic partnerships have been formed with third-party institutions that have the potential to contribute added value to the methodological process through direct participation in its execution. These partnerships are alternative models of implementing the methodology. In these cases, the formation of the Bank’s working group varies in relation to the needs of the process in each city, and the third-party institution has to form an internal team with sufficient capacity to make a technical contribution. However, and in any scenario, the Bank will always maintain its role as advisor, instructor and supervisor of the correct application of the methodology, as well as retaining intellectual authorship.
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3.15 With respect to these work schemes, box 3.1 shows alternative models of implementation that are being used in cities in the LAC region.
Box 3.1 Alternative models for implementing the ESCI methodology The ESCI is being replicated by teams from other institutions interested in its use as a tool for prioritizing and structuring public investment projects at the subnational level.
Findeter Model (Colombia) La Financiera de Desarrollo Territorial (Findeter) is a Colombian development bank that grants loans to territorial entities, metropolitan areas and municipalities. In 2012, the IDB and Findeter signed a strategic partnership to collaborate on the implementation of the ESCI methodology in emerging Colombian cities. Also in 2012, the cities of Manizales, Pereira and Bucaramanga joined the Initiative through this partnership. In 2013, another two cities joined, and the program is expected to be replicated in a total of 10 cities by 2016.
Phase 0 – Preparation
Phase 0 – Preparation: Collection of Basic Information and Identification of Stakeholders
To apply the methodology, Findeter formed an internal unit with a group of specialists in the topic areas covered by the ESCI. This is the unit that leads implementation in situ.
La Caixa Model (Brazil) La Caixa Econômica Federal is one of the largest commercial banks in Brazil. La Caixa and the IDB signed a Memorandum of Understanding in June 2012 during the Río+20 meeting, with the common interest of cooperating on programs and projects to promote social development in Brazil. The support of La Caixa has been fundamental in the expansion of the ESCI in Brazil. This bank has become one of the main strategic partners in the Initiative, making replication of the methodology possible in the region’s largest country. The first city to join the La Caixa–ESCI program was João Pessoa (Paraíba state) in March 2013. In 2014, another three cities (Vitoria, Palmas and Florianópolis) joined, and the La Caixa–IDB program is expected to be implemented in 10 cities over the next few years. To apply the methodology, it was decided to subcontract to academic institutions and foundations that work on urban topics to implement the methodology. In the same way as in the Banobras model in Mexico, La Caixa, under the supervision and monitoring of the Bank’s ESCI team and sectoral specialists, subcontracts to academic institutions and non-profit entities to apply the ESCI (continued on the next page)
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Box 3.1 Alternative models for implementing the ESCI methodology
(continued)
methodology in the field. The Bank’s ESCI team, in addition to providing supervision, trains the staff of the subcontracted entities in the methodology.
Banobras Model (Mexico) The Banco Nacional de Obras y Servicios Públicos SNC (Banobras) is a Mexican government development bank whose purpose is to finance or refinance public or private investment projects in public infrastructure and services, as well as to contribute to the institutional strengthening of governments at the federal, state and municipal levels. The ESCI–Banobras collaboration scheme includes the identification of Mexican intermediate cities with the potential for implementing the sustainability recommendations included in the ESCI Action Plan. Banobras grants the financing for implementing the Initiative in these cities and subcontracts to a private Mexican company or institution to supervise the application of the methodology. Throughout the process, the ICG provides technical support, collaborates in the processes of creating and consolidating the ESCI, supervises the execution of the activities, and collaborates closely with Banobras in defining and developing the projects prioritized in the Action Plan. As in the model of La Caixa Econômica de Brasil, Banobras—under the supervision and monitoring of the Bank’s ESCI team and the sectoral specialists—subcontracts to academic institutions and non-profit entities to apply the ESCI methodology in the field. The Bank’s ESCI team, in addition to providing supervision, trains the subcontracted institutions’ personnel in the methodology.
YPF Model (Argentina) Yacimientos Petrolíferos Fiscales (YPF) is the main producer of hydrocarbons in Argentina. In November of 2013, the Bank and the YPF Foundation signed an Action Plan and Operating Framework for implementing the ESCI in Argentine oil cities, placing the cities of Añelo (Neuquén) and Las Heras (Santa Cruz) in a pilot plan. These small cities suffer not only from the set of problems commonly associated with rapid urban growth, but also from others specifically related to the cities’ dependence on the activity of a particular industry that is highly remunerative and in full expansion (which causes, amongst other problems, income inequality, a lack of economic diversification, and a sense of alienation in the population). (continued on the next page)
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Box 3.1 Alternative models for implementing the ESCI methodology
(continued)
IMPLEMENTATION OF THE ESCI METHODOLOGY
ALTERNATIVE MODELS
ESCI IS BEING REPLICATED BY TEAMS OF OTHER INSTITUTIONS INTERESTED IN USING IT AS A TOOL FOR PRIORITY PROJECTS AND FOR STRUCTURED PUBLIC INVESTMENT PROJECTS AT THE SUBNATIONAL LEVEL
Phase 0 – Preparation
Phase 0 – Preparation: Collection of Basic Information and Identification of Stakeholders
MEXICO BANOBRAS MODEL
10 CITIES
COLOMBIA FINDETER MODEL
10 CITIES
ARGENTINA
BRAZIL
YPF MODEL
CAIXA MODEL
5 CITIES
10 CITIES
THE NUMBER OF CITIES AND THEIR LOCATION ON THE MAP ARE ESTIMATES AND MAY VARY ACCORDING TO THE NEEDS OF THE PROGRAM
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Box 3.1 Alternative models for implementing the ESCI methodology
(continued)
To implement the methodology, the YPF Foundation formed a central unit with professionals from different specialties, who apply the methodology—especially adapted to this type of city—with the technical advice and close involvement of the IDB. To strengthen the local teams, the ESCI-YPF team included the following bodies in the execution of the activities: Universidad Nacional de la Patagonia (UNPA), Neuquén Planning and Action Council for Development (Copade), and YPF institutional staff located on the ground.
Phase 0 – Preparation
Phase 0 – Preparation: Collection of Basic Information and Identification of Stakeholders
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Phase 1 – Analysis and Diagnosis: Identification of Problems
4.1
4
The general objective of this phase is to identify the challenges of sustainability for the cities by means of a rapid evaluation, using a set of approximately 120 indicators that provide a broadly based image of the urban area. Its specific objectives are: (i) obtain an overview of the city through sectoral dialog; (ii) complete the ESCI indicators form; (iii) perform the traffic-light exercise; and (iv) go ahead with contracting the baseline studies, the studies required to apply the filters and, if necessary, additional baseline studies.
4.2
The set of ESCI indicators, which are used as a tool for developing this phase, covers the three dimensions of sustainability considered in the Initiative: environmental, urban and fiscal. To facilitate the analysis, the indicators are grouped into 23 topics and 59 subtopics (see “Annex 1 – ESCI Indicators”).
A.
Preliminary diagnosis
4.3
General knowledge of the city (collection of information on officers and actors involved). This process begins with the first meeting of the IDB with the city’s technical teams. During this visit, a plenary meeting is held at which the city presents its work teams as well as its general and sectoral plans. After obtaining general information on the situation and a clear view of the city, the Bank’s technical team holds sectoral meetings with the local teams responsible for each topic. During these meetings, participants present and discuss in greater detail the sectoral plans and the main problems and activities for executing the plans in each sector and area. Meetings are also held with a broad group of relevant stakeholders from the city (foundations, NGOs, trade associations, etc.) to present the Initiative, answer questions, and learn about their opinions and priorities.
4.4
In these sessions, the specialists of the IDB technical team acquire a clear view of the reality of each topic/sector, and the visit ends with a synthesis meeting of the Bank’s technical team. These sectoral meetings also go ahead with the collection of the ESCI
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indicators. With these inputs, added to the sectoral knowledge of the Bank’s specialists, preliminary hypotheses can be formed on the problems detected, strategic lines of work and potential actions.
4.5
It is important that this process be documented for use as support in explaining the values of the indicators for each topic, so sector records need to be prepared. These contain qualitative information on each topic (or group of topics, if possible). These records are documents of two to three pages that define: a. A diagnosis of the problem areas of the sector, using as support the indicators identified or others considered important. b. A definition of who has jurisdiction over the aspects of the sector. c. A description of existing initiatives, either in execution or in preparation, whose objective is to address totally or partially the problem areas described. d. Preliminary proposals giving possible solutions for dealing with the problem areas identified.
4.6
These records are prepared by the Bank’s sectoral specialists; in the case of outsourcing, they are prepared by the contracted institution or university, under the supervision of the ESCI team and IDB specialists.
B.
Identification of the challenges of sustainability: Indicators and traffic lights
4.7
Analysis and interpretation of the information. In this part of phase 1, the ESCI indicators identified are analyzed. Analysis of the topic indicators must be based on adequate information and, if possible, use a simplified methodology. The data on the completed indicator form must be obtained from secondary or tertiary sources (for example, interviews with sectoral experts of the municipality). It needs to include the source and year, the methodology for obtaining the values or for the calculation (if required), and
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Phase 1 – Analysis and Diagnosis: Identification of Problems
ample, if a variable proxy is used, or if national averages are used for local conditions).
4.8
The main sources for this information, in addition to municipal departments, are the latest population census, public service companies, reports of other international bodies, and academic research on the city from the country’s universities. It is suggested that specialists from the city government collect the values of the indicators. However, in some cases during this phase, it may be necessary to contract a consultant (i.e., an economist or urban expert) to initiate the search for statistical information that will complete the panel of indicators.7 Many cities do not possess this information, so considerable time may have to be invested in the search, which should therefore start as soon as possible.
4.9
After the indicator form has been completed, the values are assessed in relation to comparative values such as benchmarks. The benchmarks can be of two types: (i) a theoretical benchmark, with values defined in consultation with sectoral specialists; these values
Phase 1 – Analysis and Diagnosis
any additional observations on the limitations or weaknesses of the value found (for ex-
include the IDB’s vision for the region; (ii) in certain cases, such as fiscal indicators, comparisons can be made with cities in the country that are benchmarks of good practices and that use the same fiscal or governance model as the city under analysis (for example, centralized organization based on transfers from the provincial or national government).
4.10 These comparative benchmarks or values are grouped into three ranges, which are assigned a color according to the following formula: (i) green when the indicator is within the expected parameters; (ii) yellow when the indicator has deficits; and (iii) red when the indicator is in a critical state. This process, known as traffic-lighting, uses a trafficlight color (green, yellow or red) for each indicator, thereby giving a clearer idea of how near the found value is to the expected range for achieving sustainability in the region. 4.11 Each topic is composed of several indicators. With this in mind, the final evaluation of the color assigned to the topic comes from analyzing the final traffic lights for all the indicators included. The final decision on the color to adopt for the topic can be difficult
7
This search will be supplemented by and verified with the local specialists later.
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in certain cases (for example, if a topic contains some indicators in red, others in yellow and others in green). When this happens, sectoral experts in both the IDB and the municipality are consulted to throw light on the challenges and opportunities in this sector and, in this way, determine the traffic-light color for that topic. The key discussion points for defining the color of each topic must be reflected in the sector record.
4.12 The indicators for the Water topic, with their respective benchmarks, are shown in table 4.1. “Annex 1 – ESCI Indicators” contains a detailed list of indicators, their objectives, the benchmarks for LAC, potential sources of information and the justification of the “red–yellow–green” classification system. 4.13 The main result of this phase is the classification of all the topics with a definitive color (i.e., the traffic-light exercise), as shown in figure 4.1. 4.14 Lastly, for the prioritization process to be carried out in the next phase, scores are assigned to each topic: topics labeled green receive a score of 1 (low priority), topics labeled yellow receive a score of 3 (medium priority), and topics labeled red receive a score of 5 (high priority). 4.15 In addition to collecting average indicators, in several ESCI cities, certain indicators were studied at a disaggregated level within the city (see box 4.1).
C.
Three baseline studies: Greenhouse gases, risk and urban footprint
4.16 To obtain basic information to supplement and deepen the diagnostic and prioritization phases in the ESCI methodology, three baseline studies are prepared in each city: (i) analysis of GHG emissions, (ii) analysis of disaster risk and vulnerability to negative impacts of climate change, and (iii) analysis of the urban footprint. These baseline studies are holistic and integrated in character and of fundamental importance in all phases of the methodology. The information generated by these studies provides a global and integrated vision of the city, as well as of the problem areas in terms of climate change and risks from natural disasters, as a guide for decision making.
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Table 4.1 Example of indicators and benchmarks in the Water topic
#
Topic # Subtopics
# Indicator
Description
1
Water 1 Water coverage
1 Percentage of households with home connections to the city’s water network 2 Annual water consumption per capita
Percentage of households with home connections to the city’s water network
2 Efficiency in the use of water
3 Efficiency 3 Continuity of in the water water service supply service 4 Water quality
4 Availability of water resources
Theoretical benchmark Unit of measurement Green Yellow Red Percentage
Annual consumption of water L/person/ day per capita of people whose homes have a water connection to the city’s network Annual average of daily number h/day of hours of continuous water supply per household
Percentage of water samples in Percentage a year that comply with national potable water quality standards 5 Non-revenue Percentage of water that is lost Percentage water from treated water entering the distribution system and that is accounted for and billed by the water provider. This includes actual water losses (e.g., leaking pipes) and billing losses (e.g., broken water meters, absence of water meters, and illegal connections). 6 Remaining Number of years remaining Years number of with a positive water balance, years of a considering the supply of positive water available water (taking into balance account hydrological cycles) and the demand for water (projected uses, including population, industrial sector, ecological flows, etc.)
90– 75–90% < 75% 100%
120– 200
80–120 < 80 or > or 200– 250 250
> 20 h/ day
12–20 h/day
< 12 h/ day
97%
90– 97%
< 90%
0–30% 30–45% > 45%
> 10
5–10
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<5
4.17 In addition to providing an overall view of the different sectors from a long-term perspective, the baseline studies generate specific information relevant to the collection of data for the indicators. During the prioritization phase, the baseline studies are the most important input for the disaster risk and climate change filter.
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Methodological Guide Emerging and Sustainable Cities Initiative
Figure 4.1 Traffic-light exercise Diagnosis
Environment Water Energy Renewable energy Air quality Noise pollution GHG Solid waste Sewage Vulnerability to natural disasters Preparation for natural disasters Management plans for climate change risk and adaptation
Urban development
Fiscal area and governance
Urban growth management Poverty Public transport Clean, safe and multimodal transport Diversified and competitive economic base Employment Connectivity Education Citizen security Health
Participatory planning Transparency Audit Modern public management Fiscal and administrative autonomy Maximization of tax base Fundraising Management by results Quality of public spending Debt management Contingent liabilities
4.18 A fundamental task for the success of the three baseline studies is to define their area of study (geographical scope). Apart from political–jurisdictional divisions, the study area must include, as a minimum, the sum of the current urban footprint plus the area of potential urban growth. A “multilevel” delimitation is recommended that covers the set of municipalities that form the existing urban footprint, as well as a level of urban expansion that comprises the municipalities that the continuous growth trend will affect. 4.19 The first study analyzes the GHG emissions in the city. This study is composed of an inventory of GHG emissions and options for their mitigation. Although the LAC region has relatively low GHG emissions in comparison with other areas of the world, it is desirable to maintain or even reduce that level, which requires prospective planning, especially in the context of emerging cities. The inventory provides an overview of current emissions by sector (transport, industry, etc.), which are then compared with historical records to identify the development of emissions in the city. Preparation of these inventories
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Emissions (GPC), developed by the C40 Cities Climate Leadership Group (C40) and Local Governments for Sustainability (ICLEI), in cooperation with the World Bank, the United Nations Environment Program (UNEP), the United Nations Human Settlements Program (UN-Habitat) and the World Resources Institute (WRI).
4.20 Based on the inventory, a mitigation road map is developed. Extrapolating historical trends of variables, such as growth of population and of GDP, future emissions are projected (for example, for 2030 and 2050). Taking the absolute emissions (current and
Box 4.1 The importance of georeferenced indicators: The case of Mar de la Plata, Argentina The reality of the emerging cities of LAC very often teaches us how the inequality shown in indicators such the Gini coefficient leads to inequalities in the urban fabric. In this context, analysis of average indicators for a city conceals complex territorial realities, areas with low levels of access to infrastructure and services, and social and economic indicators very much below average.
Phase 1 – Analysis and Diagnosis
follows the methodology of the Global Protocol for Community-Scale Greenhouse Gas
To be able to identify these areas of a city, it is necessary to work with indicators that are disaggregated to the intra-city level and georeferenced. With this information it is possible to detect priorities and design integrated interventions that improve existing conditions. The Argentine city of Mar de la Plata joined the regular ESCI program in 2012. To work with georeferenced indicators, the first step was to delimit three concentric areas that were considered homogenous because of their socioeconomic level: the coastal area (Center), which is the foundational city center and is at a higher economic level; a large intermediate area that borders the former (Ring 1); and, in the west, a peripheral area with greater deficiencies in basic infrastructure and services (Ring 2). The municipality team, with the assistance of the Bank specialists, identified and digitized the indicators. The result was a map disaggregated at the level of census fractions, with information on indicators for population, poverty, education, housing, security, tourism, commerce, industry and services. With these data, four critical areas were identified inside Ring 2, where poverty levels were 50% higher than in that ring overall. Marked differences were also observed in these four areas with respect to housing, transport and enrolment, as shown. (continued on the next page)
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Box 4.1 The importance of georeferenced indicators: The case of Mar de la Plata, Argentina (continued)
Slum housing (in percentage): Central Area, Ring 1 and Ring 2, and four critical areas inside Ring 2.
Percentage of enrollment: Central Area, Ring 1 and Ring 2, and four critical areas in Ring 2.
(continued on the next page)
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Box 4.1 The importance of georeferenced indicators: The case of Mar de la Plata, Argentina (continued)
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Final delimitation of four critical areas inside Ring 2 for integrated action (Las Dalias, Belgrano, Herradura Noroeste and Del Barco).
The georeferenced indicators show the contrast between the four critical areas and the rest of the city, which affects the inhabitants’ quality of life. Based on this analysis, several of the topics that, according to the relevant indicators for the city, would merit prioritization in the medium term, become short-term priority topics for the implementation of integrated actions in those areas.
future) by sector and the potential for reduction, the study identifies the sectors in which mitigation of GHG emissions will have the greatest impact. On this basis, a list of specific measures is proposed for adoption by the different sectors in order for them to contribute to reducing the city’s emissions. Individual records describe in detail each measure, including the potential for emission reduction, as well as the costs, benefits, possibilities of monitoring and examples of other cases of implementation. Workshops and virtual training are organized to train local officials in making optimal use of the information provided by these products.
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4.21 The second study analyzes disaster risk and vulnerability to the negative impacts of climate change. Past damage from natural disasters in LAC has already been immense, but future damage can be greatly aggravated by climate change. According to recent estimates,8 the economic damage caused by extreme events in LAC could increase gradually to US$100 billion annually by 2050. This second study aims to provide information as a contribution toward preventing deaths and reducing the physical, economic and financial damage by means of efficient urban planning. In collaboration with local participants, the most important threats for the city are identified. A probabilistic analysis is developed for cases of flooding, seismic activity and strong winds. Loss of human life and damage caused are quantified for certain return periods of each event. For other threats, susceptibility and impacts are examined using other suitable methodologies. In cases where it is relevant (for example, hydro-meteorological threats and landslides), the analysis takes into account climate change scenarios.
4.22 Based on this evaluation, risk and susceptibility maps are developed that identify the danger areas in the city. With the information generated, the study can propose measures to reduce risk and susceptibility. Since the probabilistic analysis yields an estimate of risk, the costs of these measures can be compared with the costs of failing to act.
4.23 The third study makes an historical analysis of the growth of the city and models longterm growth scenarios, with the objective of making public policy recommendations to stimulate the development of a sustainable growth model. The study is based on the analysis of high-resolution images. 4.24 This study produces six specific products: 1. Sectoral diagnoses, which deal with the most relevant qualitative and quantitative aspects of historic urban growth and the existing footprint or urban perimeter.
8
Vergara, W., et al. (2013), The Climate and Development Challenge for Latin America and the Caribbean: Options for ClimateResilient, Low-Carbon Development. Available at http://publications.iadb.org/handle/11319/456?locale- attribute=in.
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strengths of urban growth. 3. An analysis of the historical and existing urban footprint. 4. Growth scenarios, containing the projection of urban growth, with three different scenarios proposed: (i) current trends in urban growth, that is, the tendency of the city if current conditions continue; (ii) smart growth, that is, the desirable or optimal urban growth of the city; and (iii) intermediate urban growth (compound growth), that is, realizable urban growth, improving the current trend based on sustainable growth strategies. 5. A comparison of the scenarios from the point of view of land, resources and environmental impact, including a comparative analysis of the cost of the basic infrastructure and the level of GHG emissions in all the scenarios.
Phase 1 – Analysis and Diagnosis
2. An integrated diagnosis, which identifies and evaluates the main weaknesses and
6. Public policy recommendations for planning the city’s urban growth.
4.25 The methodology of the three studies requires the active participation of the key urban actors involved in this process. Local knowledge and experience are vital for ensuring the validity, objectivity and technical quality of the studies. For this reason, at least two workshops are held for each study. The first validates and expands the provisional results of the diagnoses from a qualitative point of view. The second is useful for defining lines of action, as well as for prioritizing a set of proposed actions for the study area, based on the diagnosis. 4.26 The three studies are interrelated, due to the links between the topics covered. For example, the projections of the GHG mitigation study have to consider the different growth scenarios that the urban footprint study generates. In turn, the urban footprint study uses information on the risk areas, identified in the second study, to define the barriers to growth in the smart-growth scenario. This linkage of the three studies adds value and integrality to the analysis.
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D.
Additional baseline studies
4.27 Part of the lessons learned from the first 14 cities in the ESCI program, currently in execution stage, indicate that sustainability challenges at the sector level are very similar across our region. The solutions to these challenges obviously require adaptations to the geography and local situation that differentiate each city. However, they have similar origins and causes. Many of our cities are facing important challenges in topics such as mobility, integrated solid waste management, urban infrastructure, fiscal limitations and citizens’ perception of insecurity in the areas of governance and institutional capacity. 4.28 Taking the above into account, in the new cities that have joined the Initiative, additional baseline studies (ABSs) are being prepared in specific sectors common to the cities, which strengthen the diagnoses as well as the recommendations of possible solutions (i.e., prioritized interventions). Preparation of these ABSs (in eight sectors) is voluntary and depends on the evaluation of the team leader and the sector coordinator. It is not necessary to prepare them for all the sectors defined as common to our cities. At the discretion of the team leader and the sector coordinator, ABSs are required for sectors in which the problem areas are most serious, together with, if necessary, an in-depth diagnosis in the city. Illustrative terms of reference are proposed for areas that have emerged as priorities in many ESCI cities. These terms of reference are given in “Annex 5 –Terms of Reference of Additional Baseline Studies.” 4.29 For example, during the diagnosis phase in one ESCI city, it was observed that the transport sector had the potential for prioritization in the Action Plan. The city had a high rate of motorization, exacerbated traffic levels and a public transport system that had not been rationalized, causing severe service deficiencies. Added to this, the local topography hindered the development of an optimal road network. 4.30 For cities with problem areas similar to those in the previous example, the use of ABSs is suggested to deepen the analysis; this part of the methodology enables diagnoses that produce data and other relevant information for developing the Action Plan and the solutions that it proposes.
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4.31 The ABSs focus on specific topics and are designed to provide additional information in some of the following areas: (i) management of fiscal resources; (ii) motorized transport; (iii) urban space, walkability and cycle paths; (iv) connectivity; (v) water and sanitation; (vi) solid waste; (vii) energy; and (viii) citizen security. 4.32 The team leader and sector coordinator must determine the usefulness of preparing ABSs. To do this, they take into account that ABSs should only be used when information is insufficient, the level of the problem in the sector is high, the sector is strategic for the future of the urban area (for example, short-term depletion of water sources), and/or local authorities have expressly requested them. 4.33 ABSs are rapid diagnoses that must be completed in no more than three months so that they do not affect the normal development of the first stage of the ESCI methodology. For cities that join the Initiative through the regular program (i.e., their resources are all from IDB), ABSs can be financed by the Bank. In the case of cities that join through the additional cities program, the Bank, in coordination with local authorities, collaborates in searching for financing from external sources (e.g., national or state governments, private foundations and institutions, and/or civil society organizations, among others).
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Phase 1 – Analysis and Diagnosis: Identification of Problems
4.34 Table 4.2 shows each of the ABSs that the city could prepare, in so far as they relate to its priorities. (A detailed description of these studies can be found in “Annex 5 – Terms of Reference of Additional Baseline Studies”.)
Table 4.2 Content of the additional baseline studies Study
Objectives
Management of fiscal resources
• Analyze the fiscal capacity of the a. Analysis of the following topics: local government to implement • Municipal taxes its programs and address • Charges for services demands associated with the • Transfers functioning of the city. • Other sources of own revenue • Make specific recommendations • Current spending and public investments for improving the fiscal • Municipal borrowing and fiscal sustainability sustainability and management • Financial situation of the providers of public services of the municipality.
Components
(continued on the next page)
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Table 4.2 Content of the additional baseline studies (continued) Study
Objectives
Components
Characterization • Study patterns of mobility in two a. Identification of the information available or a strategy for of motorized important corridors of the city its compilation. The information required includes: transport to define future interventions in • Mobility plans the areas where mobility can be • Transport models improved and that also affect • Origin–destination matrixes the rest of the locality. • Road inventories • Public transport operating scheme • Modal distribution • Road accident statistics b. Construction or updating of origin–destination submatrixes of public and private transport c. Definition of possible lines of action to permit interventions in transport in the city Characterization • Help the cities to recover streets a. Collection and analysis of data such as: of urban space, and other public spaces for • Pedestrian flows • Characteristics of pedestrians walkability and people. • Activities (daily or recreational) bike paths • Provide detailed information on the conditions of the urban • Quality of open spaces • Paths environment in one or more • Facades or furniture selected areas in the city. • Train and empower a local • Urban amenities b. Preparation of long-, medium- and short-term strategies technical team. to recover the streets as public spaces and improve the quality, security and attractiveness of these areas, in the subject area of study. c. Design and implement a pilot project (temporary and low-cost). d. Evaluate the pilot project and make adjustments. Connectivity • Diagnose the connectivity in the a. Analysis of the quality, coverage and efficiency of the (ICT broadband city. broadband infrastructure and of the available ICTs. infrastructure) • Identify the technological b. Definition of the sectors in which the use of ICT and solutions that can be adopted improvements in connectivity can help optimize to overcome the municipality’s management in the city, increase connectivity and boost main challenges. the local government’s interaction with citizens. c. Preparation of an Action Plan that includes a description of the proposed measures and a financial plan for their implementation. Water and • Prepare a detailed diagnosis of a. Characterization of the sector, to include: sanitation the water and sanitation sector. • Institutional aspects • Identify the most important • Drinking water supply (sources, pumping stations, sectoral challenges the city coverage, etc.) faces. • Coverage of sewage services • Prepare a prioritized Action • Sanitation (treatment plants or existing projects, Plan. treatment levels, etc.) b. Setting of priorities c. Identification of investment actions and what is needed to resolve the priority problems (continued on the next page)
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Table 4.2 Content of the additional baseline studies
(continued)
Study
Objectives
Solid waste
• Prepare a strategy and an Action a. Review of the following aspects: Plan to deal with the problems • Current situation in terms of solid waste collection, of solid waste management in formal and informal recycling, treatment and final the city. disposal • Institutional structure for solid waste management • Legal framework b. Identification of actions and programs related to creating synergies c. Definition of strategies and solutions for the solid waste sector. These solutions must contain, as a minimum: • Lines of action, agreements on reform, support programs ,and projects for the sector • Phases and a timetable for adopting the agreed actions • Financing plan • Monitoring plan a. Collection and analysis of the following information: • Support the municipalities • Large consumers in the industrial/commercial sectors in improving the efficiency of (estimate of electricity consumption and demand) energy management. • Estimate of consumption, demand and energy spending • Determine an energy in the residential sector consumption baseline and a profile of sectoral demand in • Estimate of the annual growth rate in energy consumption for all sectors the city. • Estimate of GHG emissions from electricity • Examine the pre-feasibility of energy efficiency projects. consumption • Development of profiles of electricity consumption and demand and of energy spending by sectors Consumption and demand under the responsibility of the municipalities, by subgroup b. Identification of energy efficiency projects adapted to the characteristics of the city, and recommendations for their implementation c. Analysis of the technical and financial pre-feasibility of the proposed projects d. Identification of state and/or national programs with the potential for implementation in the city, and recommendations for their application • Identify the main problems a. Review of the legal and regulatory framework in the area for citizen security and their of citizen security and justice dimensions. b. Preparation of an inventory of the operators responsible for these areas and their spheres of competence, plus analysis of their budgetary allocations c. Examination of the institutional context of the city, emphasizing the processes of planning, monitoring and evaluation in relation to citizen security d. Identification of actions to prevent crime and violence, the implementation and monitoring of these actions, and the evaluation of this monitoring e. Proposed recommendations
Energy
Citizen security
Components
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Box 4.2 Improvements in urban connectivity: The case of integrated centers In 2012, with the support of the Government of the Republic of Korea and through the Knowledge Sharing Program (KSP), KRIHS (the Korean Research Institute for Human Settlements) developed a technical study and Action Plan for constructing an Integrated Operation and Control Center (CIOC) for Goiânia as part of its transformation into a smart city. The Center will improve city management in the areas of mobility (traffic and transport), security and disaster prevention, through the combined use of closed-circuit cameras and a computer and software center. Design of the CIOC was developed by KRIHS in collaboration with the Goiânia municipality, based on a diagnosis of the municipality, its needs and the opportunities for integration, and taking into consideration successful experiences in Korea. In addition to the Goiânia project, other studies are currently in development, with the Bank’s support, to implement similar Intelligent Monitoring Centers in cities that are part of the ESCI (such as Barranquilla, Montego Bay, Montevideo, João Pessoa and Vitoria).
Integrated control and operations Center (CIOC)
Improve competitiveness and strengthen institutions
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Phase 2 – Prioritization: Selection of the Topics the City Should Target
5.1
5
Phase 2, by applying filters to the ESCI topics analyzed in the preceding phase, aims to identify the priority topics that pose the greatest challenges to sustainability, and to help the city concentrate its efforts on the search for solutions. The Bank is also working for recognition of important topics for the emerging cities of LAC that are not currently considered part of local agendas. Twentythree topics are currently considered for prioritization according to their respective traffic-light ratings (determined in phase 1).
5.2
Given the diversity of topics that require attention, a city is unlikely to achieve results in many of these sectors in the medium term. To address this, the ESCI methodology proposes prioritization by the application of filters. Each topic analyzed in the diagnosis phase is prioritized in phase 2 by the application of four filters: (i) public opinion; (ii) economic impact (i.e., the economic cost for society, including the “cost of inaction”); (iii) climate change and disaster risk; and (iv) multi-sectorality (i.e., the level of sectoral interrelation). Individual scores from 1 to 5 are assigned for each critical topic, according to the criteria indicated; then these values are totaled, the value of each filter is weighted in light of the city’s priority areas, and those with the highest score are selected. Finally, the list is validated with the local team and the main actors involved.
5.3
The total score of each critical topic, after evaluation using the four filters, identifies three to five topics with the highest score (the “most critical” topics). As a result, the city can concentrate its limited resources in those areas that are most relevant to achieving its sustainability and that have the greatest probability of yielding concrete results in the medium term.
5.4
Although the teams will initially concentrate on the topics prioritized with the highest scores, the additional areas identified as red or yellow call for attention from the local authorities and main parties involved, so that they are not
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56
Figure 5.1 Phase 2: Prioritization process
PRIORITIZATION PROCESS 23 TOPICS
4
1
APPLICATION OF THE FILTERS
2
SCORE FROM 1 TO 5
3
WEIGHTING
4
TOTAL WEIGHTED SCORE
5
ORDERING OF ALL THE TOPICS
6
SELECTION OF FROM 1 TO 3 PRIORITY TOPICS
TO THE 23 TOPICS
1
2
3
1-5
1-5
1-5
1-5
1-5
IN THE TRAFFIC LIGHT EXERCISE AND THE 4 FILTERS TRAFFIC-LIGHT EXERCISE
FOR THE TRAFFIC-LIGHT EXERCISE AND THE 4 FILTERS
FOR THE TRAFFIC LIGHT EXERCISE AND THE 4 FILTERS
%
%
%
%
%
%
%
%
3.7 4.3 2.2
3.9
4.1
2.1
3.4
4.5
1
FROM HIGHEST TO LOWEST SCORE
ACCORDING TO THE AVAILABILITY OF RESOURCES
4 FILTERS
4.5
2
3
4.3 4.1 1
4
5
6
7
3.9
3.7
3.4
2.2
2
3
Phase 2 – Prioritization: Selection of the Topics the City Should Target
itoring system described later in this guide facilitates this work (see sections 8.1 to 8.11).
A.
The filters
5.5
Based on the traffic-light exercise implemented in phase 1, wherein the topic areas critical for sustainability were identified, this phase determines whether a problem has high priority for the city by applying four filters: a. Public opinion: Citizens’ perception of the importance of the problems identified; this is fundamental in obtaining support for the process and in ensuring its sustain-
Phase 2 – Prioritization
neglected but rather are addressed by those responsible for the sector or topic. The mon-
ability over time. b. Climate change and disaster risk: Evaluation of (i) GHG emissions that contribute to climate change, (ii) disaster risk and (iii) the local effects of climate change. c. Economic: The economic impact for society; this filter quantifies the socioeconomic benefits that would be obtained by solving the problems of each topic and assesses the economic impact of the current inaction. d. Multi-sectorality: Evaluation of the integrality of the projects by assessing the impact of each topic on other sectors.
5.6
The next section provides a detailed explication of each filter.
Filter 1: Public opinion 5.7
Public opinion provides information on how the population perceives the level of priority of the topics under analysis in the methodology. Given the objective of achieving broad citizen support, people’s opinions are important for the future of the city and should be known and included in the process.
5.8
Application of this filter is based on the public opinion survey contracted in previous phases. This survey has a high political–institutional added value for the city. In the
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4 FILTERS HELP TO DETERMINE THE CITY’S MOST IMPORTANT PROBLEMS PUBLIC OPINION CITIZEN’S PERCEPTION OF THE IMPORTANCE OF THE PROBLEMS IDENTIFIED
CLIMATE CHANGE AND DISASTER RISK GHG EMISSIONS DISASTER RISK AND EFFECTS OF CLIMATE CHANGE
MULTISECTORALITY
SOCIOECONOMIC BENEFITS TO BE OBTAINED BY SOLVING THE PROBLEMS OF EACH TOPIC
INTEGRALITY OF THE PROJECTS THROUGH THE IMPACT OF EACH TOPIC ON OTHER SECTORS
CLIMATE CHAN GE
PACT C IM MI
PRIORITIZATION OF STRATEGIC TOPICS
ORAL ECT
TOPIC INTERRELATION MATRIX
ISASTER RISK DD AN
% % % %% % % % % % %E %CO % % % % %N % O % % % % % % %% %% % % % % % % %% % %% % %% % %% % % % ULTI % % %% % % M -S %% % % %%%%%%% % % %% % %% % % % %%% % %% %% % %%
ON
PUBL IC O PIN I
PUBLIC OPINION SURVEY BY AREA 23 TOPICS
%
ECONOMIC IMPACT
GHG MITIGATION RISK OF NATURAL DISASTERS
% COSTS OF CURRENT INACTION MULTIPLE CRITERIA: GDP, EMPLOYMENT AND COMPETITIVENESS
Phase 2 – Prioritization: Selection of the Topics the City Should Target
strengthened through territorial disaggregation, by analyzing different areas of the city and identifying with greater precision those that required more attention.
5.9
Each city carries out a public opinion survey that is statistically representative and designed specifically for the needs of the local and Bank teams. Certain terms of reference are suggested, which have been used in other cities as the basis for their surveys (see “Annex 6 – Terms of Reference of the Public Opinion Survey”). The survey has a margin of error of no more than five percent at the city level and must be conducted by a company specialized in survey preparation or a university with a presence in the city. The questionnaire must cover the 23 topics of the ESCI methodology. For each topic, four to five questions are included to give a clear view of citizens’ opinions. The survey must
Phase 2 – Prioritization
case of the pilot city Montevideo, and other cities since then, this method was used and
also include a final question that permits the interviewer to prioritize the topics and that the specialists use to calculate the score of the filter.
5.10 In this filter, a rating of 1 to 5 is given for each of the 23 ESCI topics, taking into account the priorities identified in the responses to the question: “Given that the government has limited resources and has to prioritize its areas of action, which three areas (in order of importance) do you consider should be priorities for the government?” 5.11 The respondents select three areas of action in order of importance, in accordance with their priorities. The topic identified as the most important by the highest percentage of respondents is selected as priority number one, and the others are given two levels of priority. Different weightings are applied to these percentages, depending on the level of priority. A weighting of 3 is assigned to the percentage of respondents who say that a particular area of action is their first priority, 2 to the second and 1 to the third. These weighted values are then totaled for each area of action. 5.12 To convert these values to a scale of 1 to 5, the following formula can be used (to reflect the real data range):9
9
This is one of the methods used to determine the score in the public opinion filter. Another method includes two prioritization questions, which are combined to create an index of relative importance.
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⎛ Maxo −Mino ⎞⎟ ⎟ + Minn Vn = (Vo −Mino ) / ⎜⎜ ⎜⎝ �Max −Min ⎟⎟⎠ n n where: Vn is the value in the new scale Vo is the original value Maxo is the maximum value in the original scale Mino is the minimum value in the original scale Maxn is the maximum value desired in the new scale Minn is the minimum value desired in the new scale
5.13 It is also important in many cases to understand how the perceptions and priorities of the inhabitants of different areas of the city vary. For this purpose, the public opinion survey can be disaggregated into areas by socioeconomic level. An example of this is given in Box 5.2.
Filter 2: Climate change and disaster risk 5.14 This filter is composed of two subfilters. The GHG Mitigation subfilter determines to what extent intervention in a specific topic leads to a reduction in GHG emissions. The Natural Threats and Climate Change Risk subfilter analyzes to what extent natural threats tend to have an impact on the topics under study—especially in the context of the negative effects of climate change—so the threats can be prioritized and adaptation interventions can be generated. Each subfilter is applied at the subtopic level to obtain an analysis that is both viable and accurate. Application at the level of the indicators would be too costly for this rapid evaluation, while applying the subfilters directly to the 23 topics would require inadequate simplification. The transport topic, for example, covers the subtopics of public and clean transport, and road safety. The first subtopic directly affects GHG emissions, whereas the second does not contribute to mitigating the effects of climate change.
5.15 In a first analysis, the ESCI, in cooperation with specialists from IDOM, an international company, has determined whether there are direct links between the subtopics and subfilters. To simplify the application of a filter, it is assumed that these potential
60
Box 5.1 The public opinion filter applied in Managua, Nicaragua An example of the application of this filter is the exercise carried out in Managua. In this case, of the 23 topics of the Initiative, 32.8% of respondents identified the drinking water service as their first priority, 11.8% as their second priority and 7.1% as their third priority. Weightings were assigned by level of priority (32.8% x 3; 11.8% x 2; and 7.1% x 1). To obtain the total weighted rating, the results were then added (98.4 + 23.6 + 7.1), giving a total score of 129.1, which was the highest of all the areas of action. This was repeated for each of the other ESCI topics, with the result that payment of taxes received the lowest score (1.9).
Box 5.2 Zoning of the survey: The case of Mar de la Plata, Argentina
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Phase 2 – Prioritization: Selection of the Topics the City Should Target
As occurs with diagnosis by indicators (see box 4.1 on georeferenced indicators), the public opinion survey results can also be disaggregated according to intra-city levels. This helps to understand how the perceptions and priorities of the inhabitants vary with the socioeconomic characteristics and access to infrastructure of the area where they live. The survey in the city of Mar de la Plata included territorial analysis of indicators, with disaggregation of the survey in seven areas of the city. These were: the four areas identified as critical in the west periphery (Las Dalias/Alto Camet, Herradura Noroeste, Belgrano and Del Barco), along with the three conglomerates with a higher degree of heterogeneity (the coastal area [Center], the intermediate area that borders on it [Ring 1], and the rest of the west periphery [Ring 2]). The survey consisted of 171 interviews per level, with probabilistic selection of the sampling points, blocks, households and interviewees. For analysis of the results of the total sample, a weighting was used that adjusted the weight of each level to its real weight in the total population. Some of the results of the survey by area, and the greatest contrasts that emerged, are described below: • Energy: The majority of homes in the Center never or almost never have power cuts (60%). By contrast, a good part of the inhabitants in the critical areas (Las Dalias/Alto Camet, Herradura Noroeste and Belgrano) suffer cuts every two or three months (25%, 35% and 28%, respectively). • Housing: While only two percent of the total surveyed in the city said they lived in their own home on third-party land, this result rose to 14% in Herradura Noroeste. (continued on the next page)
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Box 5.2 Zoning of the survey: The case of Mar de la Plata, Argentina
(continued)
• Urban inequality: In the Center, 22% of respondents said their total family income did not completely cover their needs. This figure increased to 35% in Herradura Noroeste, 39% in Del Barco, 47% in Belgrano and 47% in Las Dalias/Alto Camet. • Transport: While for the inhabitants of the Center the normal mode of transport was car (53%), for the critical areas, it was public transport (bus); the percentages totaled 56% in Las Dalias/ Alto Camet, 60% in Herradura Noroeste, 55% in Belgrano and 50% in Del Barco. • Employment: 21% of the working population in the Center was concerned about the possibility becoming unemployed in the next 12 months. This percentage rose to 39% in Belgrano. • Connectivity: 82% of respondents in the Center had fixed telephony in their homes, compared to 66% in Herradura Noroeste and 59% in Belgrano. In parallel, 30% of the inhabitants of the Center said they had no Internet connection at home, while in Herradura Noroeste and Belgrano these figures reached 61% and 66%, respectively. • Citizen security: In the Center, 55% believed their barrio to be more insecure than a year ago. The same perception, but in greater measure, was held by the inhabitants of the critical areas: Las Dalias/Alto Camet (63%), Herradura Noroeste (70%), Belgrano (83%) and Del Barco (86%). Analysis of the results of the survey by area, supplemented by the georeferenced indicators, suggests the integrated territorial interventions that the city requires to bring its inhabitants up to similar levels in terms of quality of life and access to services.
links are the same in each city. However, to do justice to the specific situation of each city, links can be taken away or added to the exercise. The analysis for each subfilter uses relevant emission and threat sectors as criteria for evaluating each subtopic. In the case of the mitigation subfilter, for each subtopic the analysis determines whether there is a link with each emitting sector (emissions from the use of products, emissions from waste, emissions from mobility, etc.). For example, there is a link between the subtopic “Urban Density” and the “Mobility” emissions sector because it is assumed, among other factors, that in a dense city, distances are going to be shorter and so transport between them is going to produce fewer emissions. Obviously, and by
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For the Natural Threats and Climate Change Risk subfilter, links have been identified between each subtopic and the threats that can affect a city (drought, flooding, earthquakes, etc.). For example, there is a link between the “Drainage Efficiency” subtopic and the “Flooding” threat because in many cities, an adequate drainage system is a key factor in flood prevention.
5.16 After identifying all relevant links, values of 1 to 5 are assigned to each one. While the potential links are the same for all the cities, this evaluation is going to reflect the importance of each link in the case of each urban center. A score of 1 means the subtopic is not important for reducing emissions in the sector or for reducing the risk of natural threats and climate change, while a score of 5 indicates that measures need to be taken in the subtopic from this perspective.
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definition, there are also links between the “Clean Transport” subtopic and this sector.
5.17 To facilitate the rating, qualitative and quantitative reference values have been set for each sector and threat. For example, when there is a link between the transport sector and a subtopic, this link receives a high value if: a. This sector contributes more than 20% of the city’s emissions. b. These emissions are expected to increase by over 50% between the base year and 2050. c. The percentages related to the use of public transport in the municipality are under 30%.
5.18 As a result of this exercise, a value of 1 to 5 is obtained for each subtopic–sector and subtopic–threat link. To finalize the application of the filter, the following aggregation steps have to be taken: 1. In each subfilter, add the values of the criteria (sectors/threats) for each subtopic. When the values are over 5, 5 is taken as the maximum value. 2. In each subfilter, for each topic, add the values of its subtopics and calculate the average value.
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3. Use as the final value of the filter for each topic the highest value that the topic has achieved through the application of the subfilters.
5.19 Depending on the city’s context, it can make sense to use maximum values in the second step and/or averages in the third. In any event, it is necessary to check and, if inconsistencies occur, to adjust the results in dialog with the local counterparts and the IDB specialists. Figure 5.2 shows the process of applying the filter; a detailed description is provided in “Annex 2 – Climate Change and Disaster Risk Filter.” 5.20 To rate the links, ideally we will have the baseline studies (i.e., analysis of GHG emissions, analysis of risk and climate change, analysis of the urban footprint), which we suggest be contracted in phase 0. For the mitigation subfilter, the relevant study is the analysis of the city’s GHG emissions, in which the main emitting sectors and their mitigation potentials are identified and quantified. The rating for the Natural Threats and Climate Change Risk subfilter should include an analysis of the city’s risk for climate change, in which the threats are identified and specified according to territory.
Figure 5.2 Steps in the application of the climate change and disaster risk filter 0. Selection of subtopics for application in each subfilter MITIGATION SUBFILTER
Basic mitigation study ESCI indicators
Does the topic have a high potential for reducing GHG emissions? 1. Calculation of the potential for mitigation in each sector 2. Prioritization of subtopics 3. Prioritization of topics from the point of view of mitigation
NATURAL DISASTER RISK SUBFILTER Does the topic have a high potential for reducing the vulnerability of the city? 1. Calculation of the city’s vulnerability to each threat 2. Prioritization of subtopics from the point of view of disaster risk 3. Prioritization of topics from the point of view of disaster risk
4. Prioritization of topics from the integrated point of view
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Basic study of natural risks
5.21 The rating process is performed by the consulting firm that developed the climate change baseline studies, which has the best input because of its knowledge of and interaction with the municipality. Alternatively, a group of experts, including Bank and city specialists, will be able to value the topics identified by their technical officers.
Filter 3: Economic impact 5.22 The objective of this filter is to identify, in the topics considered critical, the economic impact of each problem area for the city, including the opportunity cost of the current inaction. In other words, it attempts to quantify the socioeconomic benefits that would be obtained by solving the problems in each topic. Data come from the city, the IDB, municipal, regional and national statistical institutes, studies of local and international costs, and interviews with local and Bank experts and/or government and academic leaders. Taking into account that the spirit of the ESCI is to make a rapid evaluation of the city’s situation, the methodology has developed two possibilities for estimating this filter: (i) a multi-criteria evaluation methodology, or the Qualitative Decision of Economic Impact method, and (ii) the Estimation of Socioeconomic Benefits method. “Annex 3 – Economic Filter” contains detailed information on this filter.
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Qualitative decision of economic impact method: Multi-criteria matrix 5.23 This method corresponds to a multi-criteria evaluation,10 which was used in the cases of Santa Ana, Goiânia, João Pessoa, Managua, Montego Bay and Quetzaltenango. The objective of this method is to analyze the relative degree of relation between each area of potential action and its probable impact on the city’s economy. Specifically, three aspects of the impact of each critical area are evaluated: (i) growth of GDP, (ii) generation of employment, and (iii) improvement of the municipality’s competitiveness. The aggregate analysis of these three variables verifies the importance of each topic area in the
10
Barredo, J. I and J. Bosque-Sendra (1998), Comparison of Multi-criteria Evaluation Methods Integrated in Geographical Information Systems to Allocate Urban Areas. Alcalá de Henares: Universidad de Alcalá de Henares, Department of Geography.
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growth of the city’s economy. The set of the three analyses gives the final score for the economic impact filter under this methodology.
5.24 To implement this method, the ESCI team of each city must identify a group of specialists with broad knowledge of the topic areas to be dealt with, and who are familiar with municipal conditions and the barriers to economic development. They must complete Excel sheets to identify the importance of each topic in relation to its influence in the development of the city. “Annex 3 – Economic Filter” offers a detailed description of this methodology, instructions for using the forms, and the forms themselves, with macros and formulas to automate the calculations after the necessary base information has been added (i.e., the data on the participation of each sector in municipal output and employment) and the specialists’ input has been received. 5.25 The multi-criteria analysis evaluates the relation between the topics identified as critical in the diagnosis and three economic indicators: GDP, employment and competitiveness. For each of these three indicators, a decision matrix is adapted with multiple criteria. The method is adapted for a rapid diagnosis of the challenges faced by a city in becoming more sustainable. In this respect, the method is simplified in accordance with the following central idea: the axis of the alternatives (Y) is completed with the sectors that comprise the various ESCI topics; for GDP and employment, the axis of the criteria (X) is disaggregated in line with the division of the sectors that comprise it, based on availability of the data in the country. (See table 5.2.) 5.26 With respect to the competitiveness indicator, the analysis of the impact of the interventions was divided into “areas of intervention” that correspond to factors that can improve or impede the economic activities of a city. There are many factors that shape and influence a municipality’s competitiveness: technical innovation, organizational and institutional factors, local social attitudes, fluctuations in demand, distance from consumer markets, adjustments in the market’s production factors, natural factors, quality of public administration, and social and economic infrastructure. Table 5.1 presents the factors of greatest influence on municipal competitiveness, grouped into the following categories: human, physical, knowledge, capital resources, and infrastructure.
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Table 5.1 Competitiveness: Areas of intervention Human capital and ICT
Business support
Business climate and public transparency
Infrastructure and investments
Human capital Investment in innovation Knowledge-intensive services, creative and cultural companies Incubators Attraction of foreign investment Public support/financing for research and innovation Local productive arrangements Cooperatives Increased international participation (diversified products and partners) Support for small and medium enterprises Entrepreneurial culture Support for services (commerce) Support for marketing and sales E-commerce Simplification of municipal taxes Ease of opening and closing firms Credit facilities Environmental legislation Bureaucracy Informality Communications infrastructure Logistics infrastructure (including transport)
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5.27 This method is implemented by the following steps: 1. A matrix of relationships between the topics identified as critical (rows) and the sectors of the economy (columns) is constructed to analyze the relation between the topic areas identified by the ESCI, GDP and employment. In the case of competitiveness, the relation is established between the topic areas identified by the ESCI and aspects of competitiveness in the city. In total, three relationship matrixes are constructed (GDP, employment and competitiveness). To assign the values to each cell in each matrix, the sector specialists, in a joint analysis, give them a value of 1, if there is a relation, or 0, if there no relation at all between the critical topics and the economic sectors or aspects of competitiveness.
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Table 5.2 Relationship matrix Links (0 = no; 1 = yes)
Topic priority/Sectors GDP
Services Industry Agriculture
Public Administration and Taxes
Disaster management and adaptation to climate change
0.0
1.0
1.0
1.0
Air quality (monitoring and improvement plans)
1.0
1.0
0.0
0.0
Greenhouse gases (monitoring and reduction plans)
0.0
1.0
1.0
1.0
Solid waste management
1.0
1.0
1.0
1.0
Urban growth management (minimize the impact of urban growth on the environment)
1.0
0.0
0.0
1.0
Favor clean public and multimodal transport
1.0
0.0
0.0
1.0
Manage population density
1.0
0.0
0.0
1.0
Promote rational use of urban space, which creates a cohesive city (barrio, neighborhood)
1.0
1.0
0.0
1.0
Public security
1.0
1.0
0.0
1.0
Connectivity (broadband Internet)
1.0
1.0
0.0
1.0
Diversified and competitive economy
1.0
1.0
1.0
1.0
Quality of public spending (financial autonomy, own revenue and investments)
1.0
1.0
0.0
1.0
Management by results
1.0
1.0
0.0
1.0
Participatory planning
1.0
0.0
0.0
1.0
Modern public management (bottom-up, multiyear budget with programs and activities
0.0
0.0
0.0
1.0
TOTAL
4.0
3.3
1.3
4.7
2. Tables are constructed from the city’s official statistical data on the contribution of each economic sector to GDP and to employment generation. Nominal values are used; the participation of each sector is calculated and the data normalized to give results between 1 and 5. To weigh competitiveness, the values defined in the Competitiveness Index estimated for the city are used. 3. Next, each impact value for the critical topic areas of the Initiative (0 or 1) is weighted according to the contribution of each economic sector to GDP, employment generation and competitiveness, and then once again standardized to give results between 1 and 5. The weighted values are totaled and normalized by critical topic area
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Table 5.3 Statistical data GDP annual Percentage Level (1 to 5)
Services
Industry
Agriculture
Public Administration and Taxes
Total
13,530
2,811
20
3,097
19,457
70%
14%
0%
16%
100%
3.5
0.7
0.0
0.8
5
and, from the results, we identify the priority of each critical topic in relation to GDP, employment and competitiveness, 1 being the lowest priority and 5 the highest. 4. Finally, a matrix is constructed that summarizes the results of the prioritization for
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each variable (GDP, employment and competitiveness). To determine the total prioritization of the economic impact filter, the prioritizations for each critical topic are added horizontally and divided by the highest score possible (15); lastly, these data are normalized between 1 and 5, and the total result of the prioritization of this filter is established, following the same scale used in the prioritization by variable (1 being the lowest priority and 5 the highest).
Economic impact estimate method: Estimate of socioeconomic benefit 5.28 The objective of this method is to quantify—using the usual methods for the socioeconomic evaluation of projects—the economic impact of taking action to resolve the areas or topics identified as critical in the city’s sustainability diagnosis phase. This consists of a rapid estimate, which includes the social and environmental externalities but does not include the required amount of investment. This criterion is based on information present in the city, or on adaptations of general studies, or on studies from other cities. For implementation, it is advisable to contract a specialized consultant who has experience in the economic evaluation of projects; this person needs to deliver reports that include the methodological description used for each topic as well as details of the calculations, and to do so in at most one month. 5.29 This is an estimate of the total cost to society of each problem area for each topic covered by the ESCI in phase 1 and defined as having a “yellow” or “green” status. For
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Table 5.4 Prioritization matrix for the GDP variable Result weighted
Weighted value
Services
Industry
Agriculture
Public admin. and taxes
Disaster management and adaptation to climate change
—
0.7
0.0
0.8
1.5
Air quality (monitoring and plans for improvement)
3.5
0.7
—
—
4.2
Greenhouse gases (monitoring and plans for reduction)
—
0.7
0.0
0.8
1.5
Solid waste management
3.5
0.7
0.0
0.8
5.0
Urban growth management (minimize the impact of urban growth on the environment)
3.5
—
—
0.8
4.3
Favor clean and multimodal public transport
3.5
—
—
0.8
4.3
Manage population density
3.5
—
—
0.8
4.3
Promote rational use of urban space, which creates a cohesive city (barrio, neighborhood)
3.5
—
—
0.8
4.3
Public security
3.5
0.7
—
0.8
5.0
Connectivity (broadband Internet)
3.5
0.7
—
0.8
5.0
Diversified and competitive economy
3.5
0.7
—
0.8
5.0
Quality of public spending (financial autonomy, own income and investment)
3.5
0.7
0.0
0.8
5.0
Management by results
3.5
0.7
—
0.8
5.0
Participatory planning
3.5
—
—
0.8
4.3
Modern public management (bottomup, multiyear budget with programs and activities)
—
—
—
0.8
0.8
TOTAL
3.5
0.6
0.0
0.9
Priority topic/Sectors GDP
Priority weighted 1 – Low 5 – High
Table 5.5 Links between critical topics and GDP, employment and competitiveness Priority topic/Sectors GDP
GDP
Employment Competitiveness
Total
Level 1 to 5
Disaster management and adaptation to climate change
2
3
2
7
2
Air quality (monitoring and improvement plans)
4
4
1
9
3
Greenhouse gases (monitoring and reduction plans)
2
0
1
3
1
Solid waste management
5
5
3
13
4
Urban growth management (minimize the impact of urban growth on the environment)
4
4
2
10
3
Favor clean and multimodal public transport
4
5
2
11
4
Manage population density
4
5
1
10
3
Promote rational use of urban space, which creates a cohesive city (barrio, neighborhood)
5
4
1
10
3
Public security
5
4
2
11
4
Connectivity (broadband Internet)
5
4
3
12
4
Diversified and competitive economy
5
5
5
15
5
Quality of public spending (financial autonomy, own revenue and investment)
5
5
3
13
4
Management by results
5
5
3
13
4
Participatory planning
4
5
2
11
4
Modern public management (bottom-up, multiyear budget with programs and activities)
1
0
2
3
1
TOTAL
4
4
2
10
3
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implementation, the methodology recommends making assumptions about the main cost factors, based on available information and studies of comparable quality.
5.30 In preparing the estimates, the impacts are quantified on the basis of economic factors (e.g., real estate values) and economic flow (e.g., annual savings in terms of the costs of vehicle operation and maintenance). Consequently, to ensure that the impacts are
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comparable, the flow variables have to be projected into the future and updated at a rate of 12%.11 A score is then given based on the percentage of the estimated cost in relation to the local GDP. The score to be assigned (1 to 5) corresponds to half the percentage obtained (for example, if the percentage of the estimated cost represents 4% of the local GDP, the score will be 2). If the percentage is higher than 10%, the score will always be 5.
5.31 In general, to apply the cost criterion (benefit and/or saving) in each topic or area of action, two questions must be answered: What do we measure, and how do we measure it? 5.32 What do we measure? The starting point for the estimate is based on the following: (i) the list of ESCI indicators identified and validated by the specialists, with traffic lights applied, taking into consideration the theoretical benchmark; (ii) the list of the topics or areas of action, classified as red, yellow or green; and (iii) the technical records and interviews with the specialists, which aim to elucidate each topic area in depth. The analyzed aspects do not attempt to cover each problem area comprehensively but to concentrate on the most important drivers, which in general are represented by the indicators. The problem areas to be measured are defined by the difference between the current situation of the main indicators (drivers) and the ideal situation (the benchmark). For example, if the city has an indicator of 72% for drinking water coverage, the impact of not improving the provision of drinking water must be quantified at 18% until it reaches the 90% indicated as the theoretical green benchmark. Thus, the “total cost” criterion attempts to estimate the socioeconomic impact of not achieving the benchmark that is assumed as desirable for the cities of the region. 5.33 How do we measure it? The technical principles used to quantify the benefits are: a. Hedonic prices: Determine the social benefits based on an analysis of the increase in value acquired by the properties affected by implementation of the solution. b. Contingent valuation: Take household surveys to determine willingness to pay for an improved service, which reflects the benefit that society attributes to the project.
11
72
This is the rate normally used for the socioeconomic evaluation of Bank projects.
Phase 2 – Prioritization: Selection of the Topics the City Should Target
(marginal benefits) and supply curves (marginal costs), with and without the project, on which the benefits are estimated. The main software used is the Public Works Simulation Model (SIMOP). d. Costs avoided: Measures the savings in terms of costs (time, operation, etc.) by implementing the solution. e. Damage avoided: Based on estimating damage to people, goods, services and infrastructure that would be avoided in the future by implementing the solution today.
5.34 With respect to the scope of the results obtained, it is important to clarify that these are rapid and generic estimates, which—given the intrinsic imperfection of the cost– benefit analysis technique—add a margin of error proper to the transfer of values ob-
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c. Benefits and marginal costs: This method requires construction of demand curves
tained from other studies in terms of the problems reported by the city under analysis. Accepting these limitations, the objective of these estimates is to supplement the results produced by the other filters in the ESCI methodology from an economic point of view.
Filter 4: Multi-sectorality 5.35 In light of the integrated vision of the ESCI, the objective of this filter is to prioritize strategic topics—that is, those where an intervention would have a greater impact on the city’s sustainability. In this context, this parameter gives an integrated view of the topics covered by the Initiative, as well as identifying those topic areas that have greater interaction with other sectors. Consequently, the topics favored will be those that are closely related to other topics and whose intervention will have positive effects on the greatest number of possible topics. 5.36 An Interrelation Matrix has been designed for this purpose. The matrix is used to assign a rating as determined by the specialists. The score is assigned on the basis of the degree of interdependence between topics (relation of topic under analysis with the other topics). This matrix must include (in rows and columns) all the topics
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Table 5.6 Ranking for the assignment of scores Level (scores)
Rating
60–69 51–59 42–50 33–41 23–32
5 4 3 2 1
analyzed by the ESCI methodology in the city. Reading the matrix horizontally, the specialists have to rate from 1 to 3 (low, medium and high) the incidence or impact of the topic located in the row on the topics located in the columns—3 being the rating for the greatest impact/interrelation and 1 the lowest impact/interrelation. The horizontal sum of the scores gives a total rating of the impact of the topic on the development of the other topics studied, and leaves open the possibility of designing a general ranking. This ranking is divided into five levels, with the topics of greatest interaction and impact in the upper level, which receive the highest rating (a score of 5), while the topics with lower interrelation are in the lowest level and receive a lower rating (a score of 1).
5.37 Table 5.7 shows the matrix of interrelations between topics and scores assigned for a city in Brazil. In this case, the rating was adjusted to give values between 0 and 1 (1 being the highest) for the degree of interrelation between topics. 5.38 An example of the importance of this filter is the transport sector, which has an impact on various areas (among others, climate change). Transport has a direct effect on the generation of GHG because of measures such as change of fleet, discouragement of use of private vehicles and improvement of public transport services. All of these influence air quality, noise pollution and the citizen health, among other factors. 5.39 These are the four filters used by the ESCI methodology to prioritize areas of intervention. It is fundamental, from the start, to ensure that all those involved understand what each filter means and the objective of the ratings. If not, prioritization will make no sense, since the classification will not have the same meaning for all the people participating in the process.
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Water
Environmental sustainability and climate change
Urban sustainability 0.5 0.5 0.5 0.5 0.5
0.5 1.0 0.5 0.5
0.5 0.5 0.5 0.5 0.0 0.5
0.5 0.5 0.5 0.5 1.0 0.5 0.5
1.0 1.0 0.5
1.0 0.0 0.5
1.0
Sanitation and drainage
1.0
Solid waste management
0.5 0.0
0.5
0.5
0.5 0.0
0.5
0.5 0.5 0.5 0.5 0.0 0.5
1.0 1.0 0.5
1.0
0.5 0.0
Energy
0.0 0.0
0.5
0.5
0.5 0.0
0.5
0.5 0.5 0.5 0.5 0.5 0.5
1.0 1.0 0.5
1.0
1.0 0.0
Air quality 0.5
0.5
0.5 0.0
0.5
0.5 0.5 0.5 0.5 0.5 0.5
1.0 1.0 0.5
1.0
0.5 0.0
1.0 0.0 0.0
Climate change mitigation
0.0 0.0 0.0
0.5
0.5
0.5 0.0
0.5
0.5 0.5 0.5 0.5 0.5 0.5
1.0 1.0 1.0
1.0
0.5 0.0
1.0 1.0 0.0
Noise
0.0 0.0 0.0
0.5
0.5
0.5 0.5
0.5
0.5 0.5 0.5 0.5 0.5 0.5
0.5 0.5 0.5
0.5
0.0 0.5
0.0 0.5 0.5
Vulnerability to natural disasters
0.5 0.5 0.0
0.5
0.5
0.5 0.5
0.5
0.5 0.5 0.5 0.5 0.5 0.5
1.0 1.0 0.5
1.0
0.5 0.0
1.0 1.0 1.0
Land use or management
0.0 0.5 0.0
0.0
0.0
0.5 0.0
0.0
0.5 0.0 0.5 0.5 0.5 0.0
0.0 0.0 0.0
0.0
0.5 0.0
0.0 0.0 0.0
Urban inequality 0.5
0.5
0.5 0.5
0.5
0.0 0.0 0.5 0.5 0.0 0.5
0.0 0.0 0.0
1.0
0.5 0.0
0.0 0.0 0.0
0.5
0.5
0.5 0.5
0.5
0.5 0.5 0.5 0.5 0.5 0.5
1.0 0.0 0.0
1.0
0.5 0.0
0.0 0.0 0.0
1.0 0.0 0.0
Mobility and transport
0.0 0.0 0.0
0.5
0.5
0.5 1.0
0.5
0.5 0.5 0.5 0.5 0.5 0.5
1.0 1.0 0.0
1.0
0.5 0.5
0.5 0.5 0.0
0.5 0.5 0.5
Economic competitiveness
0.0 0.0 0.0
0.5
0.5
0.5 1.0
0.5
0.0 0.0 0.0 0.5 0.5 0.5
1.0 0.5 0.5
0.5
0.5 0.5
0.5 0.5 0.5
0.5 0.5 0.5
Employment
1.0 1.0 1.0
0.5
0.5
0.5 0.5
0.5
1.0 0.5 0.0 0.0 0.5 0.0
0.5 0.5 0.5
0.5
0.5 0.5
0.5 0.5 0.5
0.5 0.5 0.5
0.5
0.5
0.5 0.5
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Security
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Health
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Modern public management Participatory public management
1.0 0.5 0.0
Transparency
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Fiscal sustainability and governance
Public spending management Taxes and financial autonomy
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Urban sustainability
Debt
Water Sanitation and drainage Solid waste management Energy Air quality Climate change mitigation Noise Vulnerability to natural disasters Land use or management Urban inequality Mobility and transport Economic competitiveness Employment Connectivity Education Security Health Participatory public management Modern public management Transparency Taxes and financial autonomy Public spending management Debt
Dimensions/Topics
Environmental sustainability and climate change
Table 5.7 Example: matrix of interrelation between topics
Phase 2 – Prioritization: Selection of the Topics the City Should Target
Fiscal sustainability and governance
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5.40 The areas of action for the ESCI methodology respond to the priority areas defined by the cities in line with the evaluation of their indicators, benchmarks and filters. The work team can also propose additional topics which, because they are new to the urban sustainability of the region, deserve to be considered (e.g., smart cities). The IDB, in compliance with its objective of promoting the economic and social development of the region, is constantly evaluating and developing new instruments and mechanisms to support better management and development of the urban centers of LAC.
B.
Prioritization process
5.41 After obtaining the individual scores for each of the filters, the Bank’s technical team uses this information to create a scale of priorities. 5.42 The results or ratings of each filter are weighted and prioritized on a spreadsheet, as shown in table 5.8. The aim of the weighting is to provide a relative weight in the prioritization process for the traffic-light exercise and each filter. The team leader then adapts the values of this weighting to the conditions of each city. The weighting suggested by the ESCI team is as follows: a. Traffic-light exercise: 30% b. Public opinion filter: 25% c. Climate change and disaster risk filter: 20% d. Economic impact filter: 15% e. Multi-sectorality filter: 10% 5.43 The team leader, in consultation with the sector coordinator, can use other weightings if required by a given city’s particular situation. 5.44 After weighting the ratings of each filter, the weighted scores of each topic are added horizontally until there is a total rating for the topic (which is the total rating of all the
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All the topics can be arranged according to their score or level of priority, with the topic that has the highest score being the area of priority intervention for the city.
5.45 The Bank’s technical team can select a small number of topics with high scores (the ideal is three to five topics) for a detailed analysis and a definition of approach strategies. Limiting the number of topics helps the city and the teams to stay focused during phases 3 and 4 (Action Plan and Pre-investment), which is important because of limitations on the financial and human resources of local governments.
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filters). This total rating is what defines the prioritization of the areas of intervention.
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Fiscal sustainability and governance
Urban sustainability
23
22
20 21
19
12 13 14 15 16 17 18
9 10 11
7 8
4 5 6
Environmental 1 sustainability 2 and climate change 3
Dimension
Water Sanitation and drainage Solid waste management Energy Air quality Climate change mitigation Noise Vulnerability to natural disasters Land use Urban inequality Mobility and transport Competitiveness Employment Connectivity Education Security Health Participatory public management Modern public management Transparency Taxes and financial autonomy Quality of spending management Debt
Topics
Traffic light (30%)
Public opinion filter (25%)
Climate change and Economic disaster risk impact filter filter (20%) (15%)
Table 5.8 Prioritization of the areas of intervention
Multisectorality filter (10%) Total
Total weighted Position
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6.1
6
The objective of this chapter is to show the step-by-step process of preparing an Action Plan for sustainability within the ESCI methodology. The chapter explains what an Action Plan is as well as its importance, content and structure. It also presents general guides to the programming required to implement the Plan, how ESCI relates to the Bank and the establishment of the monitoring system. At the end of this chapter, the reader will have the necessary tools to prepare an Action Plan capable of guiding the city along the road to sustainability.
A.
What is an Action Plan?
6.2
The Action Plan12 tells us where we have come from, where we are going and where we want to go. It reflects the city’s vision of its future development, as defined in the technical analysis of the urban situation and the consensus reached by its citizens.
6.3
The Action Plan is a document that contains the interventions considered priorities for reaching pre-established targets and objectives. In the framework of the ESCI, the Action Plan is the main product of the methodology’s application and is created to be used as a road map for the city’s sustainability. As such, the plan collects the results obtained in the previous phases and is the basis for executing the later phases.
6.4
This said, it should be emphasized that the Action Plan contains the interventions to be implemented in the short and medium term that will lead the city to achieve its targets for long-term sustainability. Its preparation is based on an integrated and multi-sectoral vision in the analysis of urban problems, which includes the environmental, urban and fiscal dimensions considered by the ESCI. The effectiveness of the Plan will depend to
12
The plan is a technical document that includes the city’s vision, an evaluation of its multi-sectoral sustainability, and proposed projects for improving its performance.
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WHAT IS AN ACTION PLAN? CITY VISION + ASSESSMENT OF SUSTAINABILITY + PROPOSED PROJECTS
ROAD MAP TO CITY’S SUSTAINABILITY
$
WHAT DOES AN ACTION PLAN CONTAIN? HISTORY AND PROFILE OF THE CITY
ACTION PLAN
DESCRIPTION OF THE METHODOLOGY ESCI
PRIORITIZED INTERVENTIONS
ANALYSIS OF INDICATORS
PRE-INVESTMENT AND LONG-TERM FINANCING
BASIC STUDIES OF RISKS, VULNERABILITY AND URBAN GROWTH
CITIZEN MONITORING
DEFINITION OF PRIORITIES
MAIN FINDINGS
Figure 6.1 Phases of an ESCI city
0 Preparation
1 Analysis and diagnosis
2 Prioritization
3 Action Plan
4 Preinvestment
5 Monitoring
6 Investment
a large extent on the commitment of the stakeholders (community, local, state and national governments, private-sector companies, NGOs), the building of consensus among the actors and the monitoring of the Plan’s execution.
6.5
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Phase 3 – Action Plan
Preparation of an ESCI Action Plan is based on a view of urban conditions that incorporates the following elements: a. Identity and long-term vision of its citizens. The Action Plan must consider the historical and cultural elements relevant to the city’s identity, as well as those elements that can strengthen its possibilities for development in the long term. This ensures a greater understanding of the territory and its special features, highlights the value of citizens’ participation in the urban development process and strengthens local identity. b. Integrated vision. As mentioned previously, action plans are structured from a combination of the environmental, urban and fiscal dimensions established by the ESCI. This approach facilitates an integrated analysis of the city’s sustainability conditions and proposes the prioritization of multi-sectoral interventions that will have a high impact on citizens’ quality of life. The importance of the integrated vision under which the Action Plan is prepared lies in the capacity to understand the effects of the identified problems and to anticipate the impacts of the interventions proposed for their solution. Boxes 6.1 and 6.2 show examples of the importance of analyzing the problems and proposing integrated interventions. c. Territorial vision. The processes of city planning and development need to take a territorial approach that corresponds with the multi-sectoral vision mentioned previously, and that contributes to effective achievement of the sustainability targets. In cases
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where the identified problem areas are shared and/or where the required solutions go beyond the municipality’s jurisdiction, the approach must include an extended territorial unit of analysis, which covers the administrative definition of the city, its metropolitan area and/or the municipalities of its area of influence or conurbations. Examples of this are the topics of mobility and transport, water sources management, or the cases of cities that are “bedroom communities” to other centers; in such cases, not only does planning relate to other municipalities but also, to a large extent, its effectiveness depends on the joint effort of the cities working together. Along the same lines, an important topic is the configuration of urban corridors, or city-regions, which highlights the importance of interconnectivity and the interdependence of cities as engines of regional economic growth, by concentrating production and increasing productivity. These urban corridors are appearing in many
Box 6.1 Río Seco, in Quetzaltenango, Guatemala For a better understanding of the importance of applying an integrated vision to the analysis of urban problems, we can take as an example the pollution of the Río Seco, which acts as a natural drainage route as it passes through the city of Quetzaltenango in Guatemala. The poorly integrated management of solid waste and the sewage system has exacerbated the effects of solid waste and sewage being deposited by people who live along the river’s banks. This has led to many negative consequences: loss of the river’s regulating function during the rainy period; the clogging of pontoons and linkage pipes; and heavy water pollution, which results in bad smells, the proliferation of pests (insects and rodents) and consequent risks to the local inhabitants’ health. Downriver, these problems have been a determining factor in the increased number and intensity of floods in densely populated barrios, which on occasions has risen to four meters above the level of the land. If the problem of the river is not analyzed and dealt with from an integrated and multi-sectoral perspective, identification of its effects will be limited to the environmental sector of water management and will not consider its consequences in topics such as vulnerability to natural disasters, solid waste management, health, education and citizen culture. Similarly, when actions or interventions are undertaken, this approach identifies actions that could have a greater positive impact, not only at the level of the problem in this topic, but also at the level of other sectors in which the city needs to improve, such as institutional and financial, sport and citizen culture, or health. (continued on the next page)
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Box 6.1 Río Seco, in Quetzaltenango, Guatemala
(continued)
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Box 6.2 Integrated multi-sectoral intervention: The urban environmental axis of Río Choluteca, in Tegucigalpa, Honduras Tegucigalpa comprises the “twin” cities of Tegucigalpa and Comayagüela, which constitute the Central District Municipality (MDC). The MDC is located in the upper basin of the Choluteca river in a mountainous area. Due to its topography, the city is spread out over valleys, slopes, foothills and even gullies. This pattern of urbanization exposes the population to risks such as landslides and flooding. Such vulnerability is magnified by the lack of an appropriate drainage system in parts of the city, as well as by the presence of settlements on hillsides and in degraded areas that lack environmental buffers. According to World Bank studies, the economic cost of the deficiencies in managing rainwater, sanitation, water services and solid waste in Tegucigalpa exceeds US$160 million a year, a figure that is close to 2.5% of the country’s GDP. Tegucigalpa is the most populated urban area of the country and produces about 20% of Honduras’s GDP. Although the city has areas of high density, the current growth pattern is marked by rapid expansion of the urban area, often toward areas unsuitable for settlements. Expansion of the urban footprint has led to fragmentation and “carbonization” of the transport and mobility systems, and has also been accompanied by the deterioration and neglect of the city’s historical heritage, especially in the historic center of Tegucigalpa and the center of Comayagüela. Although this context presents great challenges, Tegucigalpa offers opportunities for resilient and inclusive development. The city government and the IDB have promoted important initiatives in different sectors, such as the construction of a new Bus Rapid Transit system (BRT), barrio improvement and citizen security programs, along with institutional support for water resources management and risk management. However, through an inter-sectoral dialog almost without precedent in the context of Honduras, the ESCI has succeeded in linking these initiatives with new proposals for action at the territorial level in the expanded center of the city. Examples of this are: the development of a corridor park, along with green infrastructure works to clean Río Choluteca and control flooding in its urban basin; public–private development of the urban riverside fabric; revitalization of the historic heritage center; improved mobility options for the city center; and improved citizen security in the area in general. This proposal will transform the city, because it will address current problems, thereby creating new opportunities for the development of urban infrastructure in the Choluteca Urban Environmental Axis and promoting continuous and consistent investment over time. Through truly multi-sectoral coordination, the ESCI has created a model of integrated intervention that is capable of organizing solutions at the territorial level and developing a vision for the city based on a long-term investment commitment.
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velopment of new economic systems. Cases such as Puebla–Méjico–Toluca and Rio de Janeiro–São Paulo–Campiñas are examples. According to the Brazilian authorities, by 2025, the latter corridor will have a population of 44 million along 511 kilometers and will contribute 57% of Brazil’s total gross production. d. Cities for people. One of the main purposes of sustainable urban development is to build cities for people, where public spaces become meeting points for citizens, facilitating their interaction and reducing their exclusion from social processes. A sustainable city must consider human beings as the center and subject of their planning, aiming to create more secure, healthy, vibrant and attractive cities for living. With
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parts of LAC, and their territorial and functional delimitation is defined by the de-
that objective in mind, actions have to be taken to improve public transport services and restrict vehicle circulation, in favor of spaces for pedestrians and cyclists. e. Civil development. To lead a city toward sustainability, the city must ensure that its inhabitants are recognized and feel part of their communities as citizens effectively involved in the planning of the urban area where they live. In this respect, the development of civil society becomes a key factor when thinking about the sustainability of the interventions to be undertaken, since citizen participation, empowerment and monitoring guarantee achievement of the results in the long term.
B.
Why have an Action Plan for sustainability?
6.6
The primary reason for an ESCI Action Plan is its role as a road map to a city’s sustainability. That said, we must mention other important factors that add to the usefulness of an Action Plan: a. It guides actions for achieving the city’s sustainability targets. b. It clarifies the targets, actions and resources available for the interventions. c. It provides an order of priority for implementing the actions, which helps achieve effective results. d. It is a baseline for monitoring the execution and sustainability of the interventions.
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e. It facilitates the search for financing in the long term, functioning as a type of business plan for potential public or private investors.
C.
What is the content of an ESCI Action Plan for sustainability?
6.7
A brief description of the content of an Action Plan for ESCI sustainability is given below, in table 6.1.
D.
How is an ESCI Action Plan for sustainability structured?
History and profile of the city: Where have we come from, where are we now and where are we headed? 6.8
One section of the Action Plan covers the city’s history and profile. These constitute justification for its participation in the Initiative and lead to greater understanding of the urban area, its dynamics and its evolution over time. The components of this chapter of the Action Plan will illustrate the city’s past, present and future.
6.9
The past: Where have we come from? This question will be answered by means of an historical outline of the city that clearly identifies its origins and its evolution up to the present. This part narrates the most representative events in the municipality’s history that have contributed to defining its present urban reality. The outline must include events from the social, demographic, cultural, economic, geographical, environmental, natural, political and institutional spheres. The section contains illustrations (for example, maps, boxes, timelines showing major milestones) to facilitate an understanding of the chronology of the urban center’s development.
6.10 The present: Where are we now? After describing the transformation of the city over time, this part delineates the current configuration of the urban area that has resulted from historical processes. In this respect, a profile of the city should be included and should, as a minimum, contain the data detailed in table 6.2.
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Table 6.1 Content of the ESCI Action Plan Chapter
Description of content
Presentation
Presents the Action Plan to its citizens on behalf of the local authority(ies) and leader(s) of the process (e.g., mayor, governor) Establishes the framework in which the Action Plan was prepared and the participating and/or collaborating institutions Lists the persons who worked on preparing the Action Plan: local actors (municipal, departmental, state and/or national), Bank participants, authors of the document and editors The executive summary of the Action Plan (complete document) Explains the reason for the Initiative, as well as its objectives, guiding principles and dimensions Describes the climate change situation in LAC and provides information on the evolution of the key variables related to the topic, as well as the main challenges that the cities of the region must deal with now and in the future Reports on the phases and stages of the ESCI methodology, including activities to be carried out in each phase and their deliverables or products States why the city in question was included in the ESCI, according to the preselection indicators for cities; describes the city, its origins and evolution, as well as its expected future based on existing conditions Comprises the multi-sectoral diagnosis based on the battery of ESCI indicators; contains the results of the analysis of the indicators by dimension, pillar and topic Shows the results obtained from the technical inputs contracted in phase 1 of the ESCI methodology
About the plan Work team
Summary ESCI Challenge of climate change in LAC and its cities ESCI methodology Justification for inclusion of the city in ESCI: history and profile of the city Analysis of indicators Baseline studies of risks, vulnerability and urban growth Definition of priorities for action Action Plan
Description of prioritized interventions (projects) Pre-investment and longterm financing Citizen monitoring Conclusions Bibliography Annexes
Phase 3 – Action Plan
Phase 3 – Action Plan
Shows the prioritization exercise and results produced after application of the four filters: public opinion, economic impact on society, capacity of adaptation to climate change and mitigation of GHG emissions, and multi-sectorality. Based on the prioritization results, this section identifies the set of strategic guidelines and actions in the short and medium term that will help deal with the challenges of sustainability in the long term. It also presents the estimated amounts of investment, potential sources of financing, and those responsible for each prioritized action or project Specifies the prioritized projects, their components, actions and financing, and the programming of their execution Details the estimated costs of pre-investment and total investment in each project, and identifies possible sources of financing for each case Illustrates the design and start-up processes of the citizen monitoring system for sustainability, including its principles, components, operation and expected results Contains the main findings expected from applying the methodology to achieve sustainability for the city Cites the references used in the document Contains details of the results for each indicator, including comparative analyses (benchmarking) and traffic-lighting exercises
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Table 6.2 Aspects of the profile of the city Aspects
Data
Demographics
Shows current population data, by gender, age and race, and migratory movements. The latter is particularly important for analysis of the city in its regional context. Presents information on the territory, its geography and natural resources. Comprises data such as total urban area, geography (topography, climate, hydrography, among others), available natural resources, risks and vulnerabilities, along with its relative geographical position within the national geography and its relative importance in that context. Shows the trend of the urban footprint, its growth and expansion. Contains the city’s economic vocation, main economic activities, contribution to national GDP, poverty, informality, as well as data on employment, health, education, security and connectivity. Describes the local political and institutional framework (for example, structure of government, political configuration, etc.) and its relation to the other levels of government (regional, state, national). Briefly describes the city’s fiscal situation, with variables such as investment, spending, revenue and debt, and its main sources. The state of the city’s infrastructure in transport, connectivity at regional and national levels, and telecommunication infrastructure. Emphasizes information on the state of ICT, with a view to developing strategies to create smart cities (Smart City Readiness).
Geophysical information
Urban footprint Socioeconomic Political and institutional Fiscal Infrastructure
6.11 Again, it is necessary to use graphics, maps and other figures to give visual support to the presentation of the data included in the profile. 6.12 The future: Where are we headed? Now that we know where we are and how we got there, the work team has to analyze the trends and challenges so as to predict what will be the state of the city in the near future if the necessary measures are not taken, and thereby set the city on the road to sustainability. This analysis must be made within the framework of the city’s previously identified vision and reality, which will guarantee that the projection of the desired future corresponds to the vision of the city’s inhabitants and to real urban conditions. Conditions that put the sustainability of urban development at risk will be indicated in general terms, along with some of the possible effects of maintaining the existing situation, which will also explain why the Initiative is supporting that city.
E.
Prioritized interventions: Where do we start?
6.13 The Action Plan is one of the main products of applying the ESCI methodology. The Plan contains those interventions or projects identified and prioritized because they are
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ity and improved quality of life for its citizens. These prioritized interventions are also the basis for executing the next phases of the methodology (pre-investment, monitoring and investment). Hence, this topic merits special attention.
6.14 An intervention is a set of interrelated activities that, overall, pursue the achievement of one or more specific objectives. In general terms, a project originates from the need to solve a problem or correct a particular situation. As such, all interventions are designed to generate changes in a specific area, and these changes are the impacts of the project. A properly planned and executed intervention must generate the positive impacts necessary to solve the problem(s) that led to its origin. To the extent that an intervention is high-impact, it is considered strategic. The following example (see box 6.3), which is part of the Cochabamba Action Plan launched in November 2013 and supported by the IDB and the Nordic Development Fund (NDF), illustrates the impacts an intervention can generate.
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considered strategic and indispensable for achieving the city’s objectives of sustainabil-
Box 6.3 The Multiple Misicuni project in Cochabamba, Bolivia This project consists of damming and transferring the waters of the Misicuni river at 3,700 meters above sea level toward the Cochabamba valley. The water will travel by tunnel through the cordillera, in the opposite direction to the river’s flow. The tunnel will connect a pressure pipeline to carry the water to the machine house, where it will generate electricity and, finally, to a compensation reservoir, from which the waters will be diverted to the central valley. When the reservoir reaches the right height, it will be able to store 185 million cubic meters of water in an area of 460 hectares in the Misicuni dam. Part of the volume the project will produce will be diverted to a purification plant to supply the Servicio Municipal de Agua Potable y Alcantarillado (SEMAPA) and other municipalities. The main impacts of this intervention are increases in the drinking water and irrigation water supplies in the Cochabamba valley, as well as the generation of electricity for the National Interconnected System (SIN), which will increase the portion of renewable energy in the national electricity power mix.
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6.15 In the framework of the ESCI methodology, and as mentioned previously, after the areas that require intervention are identified, the order of priority of the topics identified as critical for the city’s sustainability is established. This exercise aims to prioritize the interventions that have the greatest impact on quality of life, an outcome guaranteed by using the following elements in the prioritization exercise: a. Public opinion filter: reflects the importance that citizens give to the topic. b. Economic impact filter: incorporates the socioeconomic impacts of solving the problems or the implied cost to society of not intervening.13 c. Climate change and disaster risk filter: comprises the potential for reducing disaster risk and climate change (via adaptation) and mitigating GHG emissions. d. Multi-sectorality filter: considers the impact of the intervention on the rest of the topics, areas or sectors analyzed (via integrality).
6.16 The use of these filters is based on the technical inputs obtained in the earlier phases and the technical knowledge of the specialists: Obtained through the baseline climate change studies and the public opinion survey. 6.17 In line with the ESCI’s fundamental principle of integrality, the multi-sectorality of the interventions to be prioritized plays a crucial role in the methodological process. As a result, one of the criterion of prioritization is the impact that the intervention can have on other topics. The greater the effects of the intervention on other topics or sectors, the greater will be the scope of its impact and the benefits for society as a whole. 6.18 When the order of priority of the interventions has been established, the implementation strategy is defined/planned for each of them and must take into account the following elements: 13
The significance of the implicit social costs of non-intervention can be clearly seen in an example relating to the topic of solid waste. Inadequate treatment of solid waste (such as the lack of a sanitary landfill) leads people to convert available spaces into garbage dumps, where, for example, the burning of garbage produces gases that pollute the air; these, in turn, negatively affect people’s health. Thus, the implicit cost for society of not intervening with respect to the solid waste topic is represented by the costs generated from illnesses caused by the pollution.
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Figure 6.2 Elements of the prioritization exercise CRITERIA
FILTERS
INPUTS
Importance of the topic for citizens
Public opinion
Public opinion survey
Socioeconomic impacts of solving the problems
Economic impact
Potential for adaptation to and mitigation of climate change
Climate change and disaster risk
Impact of the intervention on other topics
Multi-sectorality
Baseline studies
Technical knowledge from specialists
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Phase 3 – Action Plan
a. Pre-investment studies: determine the feasibility of execution of an intervention, as well as its possible risks and bottlenecks. b. Institutional and regulatory framework: review of the institutional schemes and regulatory systems affecting each intervention. c. Financial structuring: consists of adequately defining/combining the type of project and the risk-mitigation tools associated with the intervention. d. Execution timetables: preparation of the timetables of activities for each project proposed in the Action Plan.
6.19 Although these elements are described in detail in the next chapter of this guide (Preinvestment, 7.1 to 7.14), their planning and documentation must be included in the Action Plan.
F.
Guidelines for preparing the financial plan
6.20 At this point in the process of preparing the Action Plan, we now are clear about the origin and evolution of the city, its urban dynamics, the challenges it faces with a view to its sustainability, and the prioritized interventions that are planned to achieve its
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objectives for sustainable development. With this clear, the present section covers the financial planning required to implement the Action Plan.
6.21 Preparing a sound financial plan requires linking it to a diagnosis of the city’s fiscal sustainability. In other words, the fiscal situation of the municipality will guide us in determining the appropriate financial strategy for funding the projects prioritized in the Action Plan. For this reason, the first part of the financial plan briefly describes the municipality’s current fiscal situation and its evolution over the last seven years, specifying the behavior of variables relative to its borrowing capacity, such as credit rating, present and future fiscal space, capacity to generate revenue, quality of spending, debt service, etc. 6.22 The financial plan continues with a matrix of the actions prioritized by topic, with the corresponding estimate of the resources/investments required to execute them. The estimated amounts of investment can be calculated from lists of market reference prices, comparison with similar projects, and the knowledge of technical staff and specialists.
6.23 The matrix contains, as a minimum, disaggregation of the resources by study and works, and indicates the sources of financing for each intervention. For more clarity, an extract of the matrix of the financial plan for Mar de la Plata, Argentina, is included below (table 6.3). 6.24 The feasibility of executing an intervention depends to a large extent on the availability of financing. In this respect, the city’s work team has to explore the options available in the market and decide which is the most favorable for each project. Table 6.4 shows the possible sources of financing. 6.25 Lastly, it is important for the financial plan to go beyond the political—administrative sphere, given the investment needs in the medium and long term. The plan must be sustainable over time; otherwise, achievement of the city’s sustainability targets will be at risk.
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Table 6.3 Example of financial plan Actions identified and estimated amounts of investment (US$) Sector Actions Works Water
Energy
Drainage
Citizen security Competitiveness and employment
Spending management
Urban planning
Total
G.
Study of the integrated management plan for water resources and study of the management of demand. West waterworks system. 56,000,000 Tucumán supply center. 16,000,000 Economic financial evaluation, business model of wind park. Environmental impact. Wind park first stage (10 MW). 25,000,000 Secondary branches of rain collectors in the 20,000,000 Northwest. 14,000,000 Rain Marcos Sastre second and third stages. 100,000,000 Rain Arroyo del Barco. Rain collectors A. Alió. 80,000,000 12,000,000 Adaptation works La Tapera stream. Rain works old terminal. 1,000,000 New traffic monitoring center and citizen 3,916,000 security. Expansion of capacity of industrial park. 11,000,000 Study of business model technological park. Relaunch of development agency (green bonds). Studies of fiscal sustainability. Application of the PRODEV methodology. Institutional strengthening in budgeting for results. Institute of Urban Planning – models. Study plan for urban development plan and updating of the land management code. 822,871,800
Studies
Financing
150,000
50,000,000
30,000
ENOHSA (T) ENOHSA (T) OSSE
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Phase 3 – Action Plan
IDB
100,000
400,000 40,000
PRODEV IDB
1,964,000
Programming for implementation
6.26 The Action Plan must be programmed for adequate implementation and follow-up, projecting its execution from a macro point of view. The objective is to facilitate the management and monitoring of the Plan’s execution.
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Table 6.4 Sources of financing Source
Purpose of financing
Brief description PUBLIC
Own resources
The city’s own revenue. This can come from collection of taxes, or charges, transfers from other levels of government (national, state, departmental), rents, royalties, etc. It is recommended that the actions defined in the plan receive some capital from the local government to guarantee its commitment to implementation. Entities of other levels Contributions from other entities of government, at the national, of government state or departmental level, are also possible sources of financing. When applicable, the entities can also present their initiatives for financing by public investment funds, created with resources of specific destination (for example, a fund for the promotion of competitiveness, a fund for water protection). Access to these resources depends on the type of project (for example, water, transport), their field of action (for example, regional) and the strategic importance of these entities for the sector that is the subject of intervention. Normally, access to these types of resources is instrumentalized through inter-institutional agreements. As in the previous point, it is important to have all levels of government commit to executing the Action Plan. Inter-municipal collaboration has been used extensively in countries Entities of the same such as Brazil, in areas such as joint provision of services and shared level of government technical assistance. The use of this scheme is particularly favorable for ensuring regional planning processes, in particular for topics that are outside municipal jurisdiction (for example, transport, solid waste). Local development Also known as promotion institutions, these are entities that grant institutions financing and technical assistance in promoting development issues. They can be public or mixed entities. Some finance specific sectors (such as Banobras). Others work with a broad range of topics related to development (for example, la Caixa, Findeter).
Pre-investment Investment
Pre-investment Investment
Pre-investment Investment
Pre-investment Investment
PRIVATE Financial sector
Non-governmental organizations
Other private-sector investments
The local and/or national government can use commercial financing from private banks to undertake initiatives that generate revenue. For example, the waterworks in an ESCI city considered a loan from Citibank for infrastructure improvements, subject to the introduction of water meters. Can be national or international. The assistance provided by this type of organization (for example, foundations) is usually nonreimbursable technical or financial cooperation. However, some work as lenders or cofinanciers, offering advantages such as loans at lower rates or on more convenient terms, responding to the specific needs of the sectors. The private sector often has funds available to invest or donate for initiatives in its areas of operation. They are interested in improving their public perception, protecting their assets and optimizing the income of residents in neighboring communities (corporate social responsibility).
Investment
Pre-investment Investment
Pre-investment Investment
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Table 6.4 Sources of financing
(continued)
Purpose of financing
Source
Brief description
Multilateral entities
Also known as international development organizations, distinguished by being government entities, in which various countries participate with common economic, political and/or regional interests. Their main objective is to support the economic development and growth of a group of countries (for example, less-developed countries, countries in development, economies in transition), according to the strategic lines defined for each of them. The competitive advantage of this source of financing comes from the technical assistance provided by each entity during the preparation, execution and evaluation stages of the projects financed, as well as from the favorable financial conditions in which these institutions mobilize resources for their member countries and their associates. The IDB, as a multilateral entity, collaborates in identifying lending and cooperation programs that can support the actions proposed in the Action Plan. The Bank also works with other organizations that have a presence in the country to maximize the Bank’s leverage. For example, an ESCI city identified a demonstration urban renovation project that has important synergies with a project of the UN Development Program to improve informal settlements. Sources of bilateral support are executed through framework agreements signed between governments, through which programs and/or projects are developed. Normally, this type of entity manages specific lines of support (for example, sanitation, climate change). Generally, government support comes from the ministries of economy and/or finance, embassies and/or cooperation agencies (such as NDF).
INTERNATIONAL
Bilateral cooperation agencies
Pre-investment Investment
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Pre-investment
MIXED Public–private associations (PPA)
Several of the interventions needed in the cities of the Initiative require important rehabilitations, expansions or new works in infrastructure: economic (water and health, energy, transport) and social (education, health and justice). This requires considerable investments, in which case the local government will not necessarily have the resources. In this scenario, one of the best ways of mobilizing resources, public and private, is to structure a PPA, adapted to the conditions and specific requirements of each country and project. In addition to being an effective source of financing for projects that require high amounts of investment, PPAs take advantage of the experience and efficiency of the private sector in the provision of public services or public infrastructure.
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Table 6.4 Sources of financing Source
(continued)
Brief description
Purpose of financing
This type of financing is only possible in spaces where the institutional and regulatory frameworks favor private participation in the provision of public services. The types of project normally applicable are management contracts, concessions and joint ventures (see table 7.2). These schemes also require the use of tools to improve the risk profile of a project (insurance, guarantees, supply contracts). PPAs can and must be explored whenever possible. This type of association offers the private sector an important opportunity to accompany and join in the city’s sustainability process.
6.27 A Gantt diagram can be used to program the Plan’s execution, linking the actions, indicators and sustainability targets, and noting the implementation times. Using a doubleentry matrix, the following information is obtained: a. The rows list the interventions, prioritized by pillar and/or strategic line, associating the indicator that the project aims to improve and the long-term target. b. The columns record the time to develop each intervention, indicating start and termination dates, generally in annual periods. Since the Action Plan is developed by different entities, it is also recommended that the persons responsible be incorporated into the project.
6.28 Table 6.5 presents as an example a partial view of the programming for the execution of the Action Plan for La Paz, Baja California Sur, Mexico. 6.29 This programming exercise for the Action Plan also helps to understand how short- and medium-term interventions contribute to achieving the long-term targets set by the city.
H.
Citizen Monitoring System and the Action Plan
6.30 As already stated, the design and implementation of a citizen monitoring system for sustainability is part of the ESCI methodology and, therefore, part of the city Action
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Table 6.5 Example of programming for implementation DIMENSION OF ENVIRONMENTAL SUSTAINABILITY AND CLIMATE CHANGE STRATEGIC VISION
The city’s sustainability is mainly based on conservation of and care for its environmental aspects, as well as the capacity to respond to situations of vulnerability to climate change. Objectives and targets
Legalize the land where the sanitary landfill is located, ensuring the correct final disposal of the solid waste.
Sustainable solid waste management
Level responsible: Department of Public Services
Improve the collection, transport and disposal of solid waste. Responsible level: Department of Public Services
Trinchera La Paz.
ESCI indicator
1
2
3
4
5 10 15
Final disposal: open sky dumps, controlled dumps, water bodies and burnt material. Remediation of 30 hectares of the old sanitary landfill.
Transfer station.
Cost* (Pesos MXN)
$27,805,000 • A sanitary landfill that complies with the regulations.
Remaining life of land where sanitary landfill or controlled dump is located.
Recycling campaign. Separation of solid waste (existing sanitary landfill).
Long-term target
Final disposal: Sanitary landfill.
Treatment of recycled material.
$42,940,000
Municipal administrative cost
Follow-up
• Create a recycling culture, generating savings for the city.
Treatment: used as energy resource. Construction
Actions
Year
Design & Presentationn
Strategic line
Priority projects and studies
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Operation
* Figures estimated by the team of the La Paz City Government, B.C.S. These figures are used by the local government in its annual planning exercise. They are currently being reviewed by IDB sector specialists and analysts from GeoAdaptive. The figures will probably be adjusted (down) after comparison with the Bank’s experience in similar studies in other localities.
$36,543,000
$5,128,000
Actions: Investment Studies
Plan. One of the chapters of the Plan indicates how this system will be started, along with its principles, components and expected results. Although this topic will be treated in more detail in chapter 8 (paragraphs 8.1 to 8.11), this section deals briefly with the monitoring model proposed by the Initiative and provides the basic information to be considered when including this topic in the Action Plan.
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6.31 The sustainability monitoring system in the cities follows up on the progress with respect to the commitments and targets defined in the ESCI action plans, changes in sustainability and quality of life, and citizens’ perception of these topics. The objective is to generate a minimum of standardized measurements for making comparisons between cities of the region. 6.32 The purpose of implementing this system is to strengthen a culture of accountability and citizen participation so as to promote transparency and efficiency in public administration and create incentives for directing public resources into priority sectors for the city’s sustainable development. 6.33 The ESCI citizen monitoring scheme is based on the role that social networks can play in transforming cities. For this reason, it is important to legitimate these monitoring schemes through citizen participation and citizen oversight of the evaluation of the results obtained from implementing the Action Plan. Also, a legitimate citizen monitoring system facilitates the managing of political sensibilities that generally appear as a result of exercises such as this one.
I.
How do we link up with the Bank?
6.34 As mentioned previously, the efforts that cities make to meet their sustainability challenges extend over time (in the medium and long terms). The impact of prioritized and implemented interventions becomes visible only in these periods. The same is true of the sustainability targets. For this reason, it is very important to link the efforts proposed by the ESCI with the Bank, especially with the Vice Presidency of Countries (VPC), through the regional offices and representations. The objective is to guarantee execution of the Action Plan so that it does not become just one more document on the shelves of the local government.
6.35 The instruments to establish this link are the country strategy and its programming. To this end, the ESCI has designed a standard text for inclusion in these instruments. The version to be included as part of the annexes of the strategy is in “Annex 7 – Incorporation of the Topic of Cities and Sustainability into Country Strategies.”
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Box 6.4 Inclusion of the topic of cities and sustainability for country strategies (short version, based on the main document) The [Country] Strategy includes as an intersecting topic activity in strategic sectors of the Bank to support the long-term sustainability of cities. This activity is part of the recently approved “Special Program and Multi-donor Fund for the Emerging and Sustainable Cities Initiative” (GN-2652). The Bank’s activity on this intersecting topic focuses on the three axes of the Initiative: (a) environmental sustainability and climate change, (b) sustainable urban development and (c) fiscal sustainability and governance.
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7.1
7
After the Action Plan has been prepared, the execution stage of the ESCI methodology begins. The first phase of this second stage corresponds to preparation of the pre-investment studies of the interventions that were defined as priorities in the Action Plan and designed in the previous phase. This chapter is a guide to the elements that must be considered in the planning and implementation of the projects contained in the Plan.
A.
Pre-investment studies
7.2
In addition to being an indispensable requirement for accessing long-term financing and being the first step in the execution of a project, the pre-investment studies help define the feasibility executing an intervention, based on evaluation of its technical, financial, legal, institutional, environmental and social characteristics. They also help to reduce the project’s risks and to foresee obstacles that can occur during implementation. In the specific case of the provision of public services, these studies also determine the mechanism(s) of cost recovery (charges and subsidies).
7.3
Pre-investment studies can be prepared with varying levels of depth. Studies at the pre-feasibility level are mainly based on secondary information and determine the preliminary feasibility of the intervention, considering the aspects previously mentioned. They include initial estimates of costs and investments, general technical characteristics, identification of benefits, among other elements. The studies are prepared with primary information sources and determine the final feasibility of the project, based on detailed technical, financial, environmental, legal, institutional and social evaluations.
7.4
In general terms, the action plans for ESCI sustainability can result in the prioritization of two types of interventions: hard and soft infrastructure projects. Box 7.1 shows the pre-investment studies required in each case.
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Table 7.1 Types of pre-investment studies Characteristics
Hard infrastructure
Soft infrastructure
Definition
Projects for the production of tangible goods (physical infrastructure) Technical, environmental, financial, legal, institutional and social studies Public, private or mixed resources
Projects that generate intangible goods (actions to take) Institutional and operational analysis.
Urban renewal, transport, water and sanitation, energy, solid waste
Integrated improvement of management, modernization of collection, implementation of investment units
Pre-investment studies required Potential sources of financing Examples
Public resources, mainly
B.
Institutional and regulatory framework
7.5
Each intervention requires special institutional schemes and regulatory systems. The regulatory framework must clearly indicate the regulations that correspond to the subject of the intervention, with a view to balancing the protection of the interests of the different sectors involved in the project, along with regulating the participation of all the actors. The organizational scheme must also be identified so as to guarantee the achievement of the expected benefits, and it must involve institutions that have the capacity (technical and institutional) and resources required to develop each phase of the project. It is extremely important that the assignment of responsibilities among the parties involved be clear and specific.
7.6
A key aspect to consider in evaluating the regulatory framework of a project for providing public services is the scheme for cost recovery. The regulations should make explicit the plan for recovering these costs—be that by charging for the service, or by subsidies, or a combination of these options. The feasibility of an intervention depends to a large extent on its regulatory framework as that relates to these aspects and consumers’ capacity to pay for the services; this means it is possible to estimate how much customers can pay through tariffs and how much must be covered by the government via subsidies, and on this basis determine the intervention’s feasibility. Box 7.1 illustrates the situation of charges and subsidies in the region.14
14
Extract taken from Juan, E. (2014), “¿Cómo financiamos la infraestructura urbana?” [Blog, May 9]. Available at http://blogs.iadb.org/ciudadessustenibles/2014/05/09/financiar-infraestructura-urbana/
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Box 7.1 Financing of urban infrastructure: Charges and subsidies International development agencies estimate that about five percent of the region’s GDP is required to respond to the annual needs of investment in infrastructure and ensure an annual economic growth of four percent. During the period 2010–12, an average of only 24% of the region’s GDP was invested, including public and private investment. Of this total investment in infrastructure, the needs of the subnational governments of LAC represent approximately 60% (US$150.000 billion, base GDP, 2012). Municipal governments have different sources of revenue to finance urban infrastructure, , including charging for the provision of public services. Based on the work of the ESCI in the cities, we have inferred some important lessons about the challenges faced by our municipalities in financing infrastructure. Collection of charges, except for sectors such as energy (where cost recovery through charges is relatively high) and telecommunications (where investment is largely private and requires attractive returns), barely covers on average 40% of the costs of providing the services. This is particularly notable in the water, sanitation, solid waste and urban transport sectors.
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It is true that not even in developed economies can sectors such as urban transport levy charges that recover all costs. However, in these countries, the subsidy system is explicit and has multiyear budgetary sources. With only a few exceptions, this is not the case in the municipal service provider companies in our cities. Most of the region’s cities have less-than-transparent subsidy systems and no source of multiyear funding. This creates a kind of vicious circle: We do not recover the costs, spending cuts are made with respect to the maintenance and expansion of the service, and the quality of the service deteriorates, which reduces citizens’ inclination to pay, resulting in lower cost recovery. This makes it very difficult to attract private investors to provide urban infrastructure services; meanwhile, the city’s public finances deteriorate. As a result, it is extremely important to improve the fiscal capacity of our cities and to work on different fronts to optimize the credit quality of a municipality. Among other tasks, tariff policies that promote better cost recovery must be designed, while at the same time ensuring coverage of the less-favored segments through explicit and transparent subsidies.
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C.
Financial structuring of the project15
7.7
One of the main factors in the success (or failure) of a project is its financial structure. This is the result of combining a particular type of project with the tools needed to mitigate the risks for each intervention presented by specific local conditions. The tables presented below, although they do not attempt to be exhaustive, show the project types and risk mitigation tools that are normally applied to hard infrastructure projects, specifically for the provision of public services.
7.8
With the objective of identifying the most important types and illustrating them, table 7.2 shows the range of possibilities, from totally public to wholly private schemes. These types correspond to those normally implemented in projects for the provision of public services and are described in relation to the levels of public–private participation.
7.9
Similarly, table 7.3 defines the instruments normally available to mitigate the risks associated with the project. It is worth stating that not all these tools are available in all LAC countries and, as already mentioned, the need for and convenience of their use depend on local conditions.
7.10 The financial structure of the project has to adopt the modality best suited to the financial characteristics of the proposed intervention (for example: capital, debt, capacity to repay, project lifecycle, internal rate of exchange) and use the applicable tools to mitigate the possible risks created by aspects such as the legal framework, political risk, fiscal space, macroeconomic variables, institutional capacity, etc. In the end, the proposed financial structure must be adapted to the project’s needs and to the local conditions of the site where it is to operate.
15
This section is based on the following IDB document: Vives, A., París, A., and Benavides, J. (2007), Financial structuring of infrastructure projects in public-private associations: an application to water and sanitation projects, Washington, D.C.: IDB. Available at http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=1066071
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Table 7.2 Project types Category
Type
Description
Totally public
Public supply Public service companies are owners of public and government infrastructure services and also operate and operation maintain them. Public service companies can function as a business fund, economically independent, in which operations and capital expenditure are financed with the revenue generated by charges to the user-customer, and one-time capacity payments made only when connecting to the system, or in some cases, with some type of assistance from the government budget. Wholly publicCorporatization is an administrative means of introducing the discipline of market corporatized company forces into public service companies that are publicly owned and operated. This method establishes a new relationship between government and the administratoroperators of the public service company. After corporatization, the relationship is regulated by legislation that specifies the powers and responsibilities of the parties. This relationship emulates that of the private sector in the sense that the public service company operates under a management board and the government acts as a shareholder. Four principles are introduced, which change the relationship between the government and the company: clarity of objectives, administrative autonomy and authority, strict accountability, and fair competition with private-sector operators. Public supply Cooperatives are a hybrid between a by local regulated public service company and a cooperatives self-regulated users “club”. Legally, the cooperatives maintain an independent status and take their own investment decisions, without the government obliging them to provide a universal service. They do not have the exclusive right to provide a service to the areas where they operate, but there are no restrictions on expanding the area of coverage. However, they are recognized and backed by the law, and their charges and standards of service are regulated.
Distribution of responsibilities
Typical length
Public responsibility: Indefinite operation and maintenance (O&M), commercial risk, capital investment and ownership of assets
Public responsibility: Indefinite O&M, commercial risk, capital investment and ownership of assets
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Public responsibility: Indefinite O&M, commercial risk, capital investment and ownership of assets
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Table 7.2 Project types Category
Type
Management Generic contracts management
Outsourcing
(continued)
Description Cooperatives are not seeking profits and, if they obtain them, these are generally reinvested. Given that their members cannot withdraw and reallocate their investments, the only way they can capture the value of the activities of the cooperatives is by using the service. The cooperatives can increase their investment capital by selling shares to their customers, something that private commercial operators cannot do. As a result, in their double function as owners and users, the members of the cooperative benefit if the public service company provides a good service at low cost. A difference between cooperatives and public service companies lies in property rights. Management contracts transfer to the private sector the responsibility for the operation and maintenance of companies owned by the government. The latter is responsible for the commercial management and expansion of the network and owns the assets. The simplest management contracts include payment to the private company of a fixed quota for administrative tasks. The most sophisticated can introduce greater incentives for achieving efficiency; performance targets and remuneration are based, at least partially, on compliance. To function, these more complex contracts have to produce sufficient increases in efficiency to compensate for the regulatory costs that result from setting targets and monitoring performance. Outsourcing refers to contracts between service providers and firms, with the following characteristics: a specific period for the contract, which is usually renewed each year; a budget for the contract, which specifies a charge not directly related to the performance of the service, so the private service provider shares none of the risks related to the commercial activity of the supply company; and a contract that does not grant the private provider any say in the internal resources of the public services company. Outsourcing can generate price rises, because private firms can add profit margins to the costs of providing the service.
Distribution of responsibilities
Typical length
Public responsibility: 3 to 5 years ownership of assets Mixed responsibility: O&M, commercial risk and capital investment
Public responsibility: < 1 year ownership of the assets, commercial risk and capital investment Mixed liability: O&M
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Table 7.2 Project types Category
Concession
(continued)
Type
Description
Franchise
In this type, a main operator (franchisor), who acts as the administrator of the franchise, provides other smaller operators (franchisees) with technical knowledge about the operations. The franchise contract budget specifies a charge linked to performance of the service; thus, the private provider of the service shares the risk related to the commercial activity of the public service company. The tariff usually includes an initial advance payment (a global sum on signing the franchise contract) and a continuous royalty (a percentage of gross sales, calculated regularly and paid throughout the duration of the contract). The private provider also plays an advisory role in relation to the internal resources of the public service company. Concession contracts grant to a private operator the contractual right to use existing assets to provide the service to customers. Ownership of the assets stays with the government, and all the rights over them, including those created by the private partner, return to the former after the end of the contract. This contract also includes the obligation to finance expansions of and improvements to the existing infrastructure. For this reason, they tend to be long-term contracts, to permit the operator to recover its capital and financing costs. The concession is regulated by a contract that establishes conditions such as key performance targets (coverage, quality), performance standards, schemes for capital investment, tariff adjustment mechanisms, and dispute arbitration.
Typical
Distribution of responsibilities
Typical length
Public responsibility: ownership of assets, commercial risk and capital investment Private responsibility: O&M
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Public responsibility: 25 to 30 years ownership of assets Private responsibility: commercial risk and O&M Mixed responsibility: capital investment
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Table 7.2 Project types Category
Type
(continued)
Description
Operating lease Under an operating lease, a private firm leases assets from a public service company of the government and assumes the responsibility for operation and maintenance during a defined period. The lessee buys the rights to the revenue flows resulting from operation of the public service company (less payment of the lease) and assumes a large part of the commercial risk of the operation. The lease is regulated by a contract that establishes conditions such as performance targets (coverage, quality), performance standards, coordination mechanisms for capital investments, tariff adjustment mechanisms and, in some cases, agreements on arbitration of disputes. Build–operate– The BOT model, or design–build–operate– transfer (BOT) maintain (DBOM), is an integrated company that combines the responsibilities of design and construction with those of operations and maintenance. These integrated contracts transfer the design, building and operation of a single facility or group of assets of a partner in the private sector. These commercial models are generally structured as a single design–build–operate contract for the entire project. Financing is guaranteed by a public body by means of a supply contract, under which the contractor offers the long-term services of operation and/or maintenance, while the public-sector sponsor retains the risk of the operating profit and any surplus operating profit. The contract between the BOT concession operator and the public service company is generally take and pay, which obliges the public service company to pay for a specific quantity of the service (for example, water) irrespective of whether it is consumed. The nature of these contracts means they are especially suitable for new projects such as reservoirs and water treatment plants.
Distribution of responsibilities
Typical length
Public responsibility: 8 to 15 risk responsibilities years commercial and ownership of the assets Private responsibility O&M Mixed responsibility: capital investment
Private responsibility 20 to 30 years private: O&M, risk commercial and capital investment Mixed responsibility: ownership of assets
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Table 7.2 Project types Category
Type
Build–own– operate (BOO)
Joint venture Joint ventures
(continued)
Description In general, BOT contracts work well when the target is expansion of the system; but if the main problem is operational, they will aggravate the difficulties faced by public services company because the BOT increases the size of the operation. There is also the inverse BOT, which is a contract under which the government buys or builds the facilities and contracts a private company to operate them. If desired, over time, the company can buy the facilities and pay in installments that cover the payment of debt service and management costs. By assuming a large part of the initial risk, governments can promote greater participation of the private sector andreduce the costs of that participation. Under a BOO contract, a private company is responsible for financing and for making the investments required to satisfy the obligations specified in its license or by the regulatory body. The main difference with respect to a BOO contract is that the assets remain indefinitely in private hands. In build–own–operate–transfer (BOOT) contracts, private companies are responsible for building the infrastructure, as well as for its ownership and operation, during a fixed period, after which it is returned to the government, which can then contract out the operation for a specific period, if so desired. Joint ventures between public and private sectors permit the incorporation of private capital in a company. The ventures are governed by a set of contracts between the government and a private operator, which can be similar to those that normally operate in the BOT and BOO schemes. The main difference is that joint ventures are self-regulated, while contracts without joint ownership require strong regulation by third parties. Normally, the foreign party owns the majority of the share capital.
Distribution of responsibilities
Typical length
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Private responsibility: 20 to 30 O&M, commercial years risk, capital investment and ownership of assets
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Table 7.2 Project types (continued) Category
Totally private
Type
License
Sale
Private supply
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Description In a contract of this type, it is necessary to carefully describe all the agreements and definitions of rights. Both the government and the operator have a fiduciary responsibility and duty to act in good faith in matters related to the common interest or with the firm. Under a license contract, the government sells the assets and issues a license to the company in a region. From the operating perspective, the license confers on the private provider the responsibility for operation, maintenance and investment. Unlike a concession, these contracts transfer the assets to private licensees or permit the licensees to make investments for the provision of new services. This modality leaves the government the task of regulation and, in the future, liberalization of competition. It is important to state that this type of contract grants the buyer the right to provide the service without competition, during a specific period. These contracts transfer the assets to the private sector or permit investments for the provision of new services. In this context, the transfer leaves the government just the task of regulation since, in theory, the private company is concerned with maintaining its asset base. The supply company has usually been created and developed by a private owner. The provider operates as a self-financed company. The operations and capital spending are financed from the revenue generated by the tariffs of the customer-users, by tariffs for capacity paid on connecting to the system, and/or, in some cases, by some government support.
Distribution of responsibilities
Typical length
Private responsibility: Indefinite O&M, commercial risk, capital investment and ownership of assets
Private responsibility: Indefinite O&M, commercial risk, capital investment and ownership of assets
Private responsibility: Indefinite O&M, commercial risk, capital investment, ownership of assets
Table 7.3 Mitigation risk tools Tool Political risk insurance Partial credit guarantees
Description and scope
Coverage against risks related to expropriations, political violence, currency transfer and convertibility. Represent a promise to pay in full and in a timely manner the debt, up to a predetermined sum (generally not the total value). Useful for covering macroeconomic risks or when there is a lack of appropriate fiscal space. Partial risk Mitigate the risks associated with specific uncertainties in the government’s counterparts. guarantees They are issued by multilateral development banks, which have a counter-guarantee from the government of the host country. Subsidies Consist of a transfer from one government or community to a provider or consumer to help the public services sector meet public needs. The four main categories include: international subsidies or assistance based on results, funds for special purposes, government subsidies and crossed subsidies. The subsidies help to mitigate the lack of financial capacity or willingness to pay for risks. Subsidies have two main objectives. First is to make sustainable a project that would otherwise not have been, by offering the financing required to supply areas with access difficulties and by normalizing the relation between public service companies and consumers. The second is to make the cost of the services affordable for some groups of consumers in the public service company’s area of coverage. A project can have subsidies for supply or demand, including subsidies to the operator according to the number of new connections made, or to consumers according to the level of household consumption or income, implicit or explicit, among other factors. Explicit subsidies are the expenses or subventions of the government that are not recovered from the beneficiaries. Implicit subsidies are those that do not generate public spending. Crossed subsidies operate when one sector benefits from another and no public spending is involved. In the case of explicit subsidies, the project’s design team has to identify them within the regulatory framework and verify their incorporation into the budget of the public entity, to determine the project’s cost-recovery scheme and feasibility. Credit Strengthen the general balance sheet of a borrower, which can be achieved by insurance, improvements guarantees, and other means to facilitate the financing or placement of financial resources. Credit improvements increase the capacity of a provider to obtain financing for the debt (by reducing the risk associated with the fiscal space) or access to other sources. They can also be used to increase credit capacity and improve the conditions of loans, such as longer terms that cover the life of the capital asset. Financing in Local currency is used to finance projects to minimize the effects of devaluation on the local currency sustainability of a project, because the currency in which the loan is made is the same as that in which the revenue is received. This provides a more stable source of financing for projects that usually have revenue only in local currency (macroeconomic factors). Arbitration rules These are clauses used when disputes arise between the provider and the regulator or the government. These rules can include the creation of a panel of experts to analyze disputes. Offtake contracts These are contracts between the provider and the government under which the latter guarantees a minimum purchase level. The agreement is a commitment to acquire or pay a specified tariff for a specific amount of service. This type of agreement is often used for the construction of water treatment plants. It can be used to increase the sustainability of the tariffs, since it guarantees a minimum revenue to the providers.
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D.
Project execution timetable
7.11 The timetable of project activities is one of the most useful tools for implementing an intervention. A realistic execution timetable facilitates management of the project, adequate assignment of responsibilities, and early detection of time delays that can affect the results and, in general, the monitoring exercise. 7.12 There are various graphical support techniques for preparing the execution timetable. One of the most useful is to use advance diagrams or Gantt charts, which are easy to understand and implement. These types of diagrams employ a double-entry matrix: a. The rows contain a list of the activities comprising the project, in order of execution, facilitating identification of preceding and subsequent activities. b. The columns show the length of time for each activity, with start and end dates. They also include other resource requirements (human, material, financial) by activity. c. The crossing of the information contained in the matrix is charted by horizontal bars that represent each activity in units of time (for example, weeks, months, halfyears). This graphical representation identifies the project’s milestones and critical path, among other elements.
7.13 Figure 7.1 shows the use of a Gantt chart in the execution timetable of an energy efficiency project consisting of replacing lights in a city. 7.14 Lastly, it should be emphasized that this pre-investment phase corresponds to the initial execution of the projects contained in the Action Plan, which were planned/designed in phase 3, taking into consideration the elements described in this chapter.
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Figure 7.1 Example of the execution timetable of a project Name 1 Obtaining resources for financing the project 2 Approval of project by the municipal council 3 Incorporation of resources into the municipal budget 4 Preparation of bidding documents 5 Public bidding process for acquisition of LED lights 6 Award of contract 7 Replacement of conventional bulbs by LED 8 Evaluation and dissemination of results
2015 2016 2017 20 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
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8
A.
ESCI Monitoring System
8.1
The ESCI Citizen Monitoring System promotes the participation of civil society in following up on the implementation of the recommendations included in the Action Plan to ensure their continuity in the long term. The objective is to generate minimum standardized measurements to enable comparison of the region’s cities.
8.2
The conceptual framework of the ESCI monitoring system is based on the principles of the following programs: “¿Cómo Vamos?” of the Corona Foundation; the Chamber of Commerce of Bogota; El Tiempo Casa Editorial; and the Pontifical Xavierian University (http://redcomovamos.org/). These programs are characterized by their interest in the public sphere as well as their objectivity, impartiality and autonomy, which have been demonstrated during the 10+ years of their existence in Colombia. A large number of LAC cities are implementing similar monitoring systems, led by civil society. An example is the “Nossa” movement in Brazil, which has developed a network that acts as a citizen observatory in areas such as environment and quality of life in many of Brazil’s cities.
8.3
This type of monitoring system came into being with the objective of following up on the results of the municipal development plans and evaluating the evolution of the city in the sectors identified by citizens as fundamental to their quality of life. These systems also create a structure of clear and accurate indicators maintained over time, and their results are shared with the public. The information can be accessed and used by various sectors of civil society. This mechanism has also achieved greater public credibility and improved management transparency in these cities, keeping citizens involved in and informed about topics of interest.
8.4
Implementation of the ESCI Monitoring System offers a range of benefits to the city: (i) Defining the topics of interest provides information on the progress made in the
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CITIZEN MONITORING
FOLLOW-UP ON PROBLEMS AND NEEDS THAT AFFECT THE CITY’S SUSTAINABILITY
%
$
MONITORING IS LED BY THE CITY’S MAIN STAKEHOLDERS
CIVIL SOCIETY
UNIVERSITIES
RESEARCH CENTERS
CHAMBERS OF COMMERCE
COMMUNICATIONS SECTOR
PRIVATE SECTOR
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itates citizen participation in the development of municipal projects and programs, and permits civil society to propose new topics to deal with local problems; (iii) it increases the probability that these projects and programs will continue even after changes in the local government; (iv) it promotes the emergence of more committed citizens who are informed about local topics; and (v) it facilitates the actions of the local government on topics of most interest to its citizens. a. Principles. As mentioned before, the conceptual framework of this system is based on the principles defined in the monitoring model known as “¿Bogotá Cómo Vamos?”, particularly with respect to interest in the public sphere, objectivity, im-
Phase 5 – Monitoring
topics considered fundamental to quality of life and the city’s sustainability; (ii) it facil-
partiality and autonomy. In this respect, the system aims to generate autonomous alerts on the progress of action plans and their impact on the main problems and needs that affect the city’s sustainability, guaranteeing objectivity and impartiality in the monitoring exercise. b. Components. The system of each city is responsible for measuring, analyzing and following up on these components: (i) urban sustainability; (ii) citizen perception of the topics that affect sustainability and quality of life; and (iii) execution of the ESCI Action Plan. c. Expected results. The monitoring exercise has to produce regular progress reports on the system components. These results have to be disseminated by communication strategies in line with processes of citizen participation.
B.
Functioning and start-up of the system
8.5
Definition of the actors who will be part of the monitoring system. The ESCI monitoring system must be applied by an independent entity, led by the city’s main stakeholders, with representatives from civil society, academia, the private sector, chambers of commerce and the communications sector, among others. It is important to emphasize that universities and research centers can play an outstanding role in this effort, because of their technical capacity for collecting and analyzing information. When
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following up on progress in terms of the main problems and needs that affect the city’s sustainability, it is crucial to guarantee objectivity and impartiality, and to coordinate with the municipal government in a spirit of mutual respect. As a result, it is highly recommended that the local authorities and the group responsible for the monitoring share data before making it public, to ensure the best available information is used.
8.6
Definition of the topics and indicators to be followed by the monitoring system. In line with the components of the ESCI Monitoring System, the topics to be followed up are directly related to the changes/progress in urban sustainability, citizens’ perceptions regarding sustainability topics and quality of life, and follow-up on the execution of the Action Plan. In the first case, the topics and indicators to be monitored correspond to those in the ESCI methodological instrument. With respect to citizens’ perceptions, local civil society has to identify citizens’ areas of interest and define the indicators of perception for each topic.16 With respect to follow-up on the Action Plan, the monitoring system reinforces the exercise developed to achieve the Plan and the continuity of its application over time, giving it a validity beyond the duration of the current administration. In this respect, progress indicators have to be defined for use in evaluating progress in the Plan’s execution and, in this way, also measure its effectiveness in building the city’s sustainability.
8.7
It is important to mention that, when creating new indicators, it is necessary to define the strategy for their construction and establish their relevance, reliability, comparability and availability, along with the information sources, measuring scheme, baseline, frequency and follow-up within the framework of the monitoring system.
8.8
Measurement and analysis of the indicators. After identifying the topics and the indicators to be monitored, the next step is to measure and analyze the ESCI indicators and the indicators of perception and progress. For this it is necessary to collect the required information. The information sources vary in relation to the component to be measured and analyzed. The components corresponding to the ESCI indicators of sustainability
16
Citizens can also include new topics, provided these relate to measurements of improvements in the quality of life and the city’s sustainability.
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cal authorities. Citizen perception is measured by administering a survey,17 which includes clear questions related to the indicators of perception previously prepared. It is recommended that this survey be conducted at least annually in order to have timely follow-up on the progress achieved in each period. It is important to use mechanisms that guarantee the survey’s neutrality and credibility. The results must be widely publicized and disseminated so that citizens see the survey and the monitoring system as the main instruments of information for their participation in and contribution to the debates and processes of constructing their city.
8.9
The following steps for starting a monitoring system need to be considered:
Phase 5 – Monitoring
and of progress in the Action Plan use data from the regular reports provided by the lo-
a. Carry out institutional and citizen mapping exercises to identify potential partners and define the administrative system of the entity responsible for the monitoring (by agents from civil society and/or academia), along with the resources for its operation and for the preparation of the annual perception surveys. b. Agree with the municipal government and the city’s agents on the scope of the monitoring system: the elements of which it is composed, sources of information for the indicators, and schemes for information sharing. c. Organize and formalize the partnership between contributors to guarantee the sustainability of the post-ESCI effort. d. Contract the coordinating unit of the system or civil organization responsible. e. Prepare the baseline of the indicators for sustainability,18 perception and progress of the Action Plan.
17
This survey is different from the one carried out at the start of applying the ESCI methodology and used to gather input for execution of the public opinion filter.
18
Although the indicators in the ESCI methodology are result indicators, it is expected that in the long term, impact indicators for those topics critical to sustainability will be incorporated into the exercise.
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f. Design, apply and analyze the citizen perception surveys, and receive reports from the local authorities. g. Analyze the information collected and prepare the first report on monitoring sustainability in the city. h. Publicize and disseminate the results of the monitoring exercise through an online platform and face-to-face workshops.
8.10 Finally, the following are considered key factors for the success of an independent monitoring system: a. Establish a scheme to guarantee the system’s economic sustainability after the IDB has left, by means of contributions from the participants (with a significant role for the private sector). b. Identify the main actors in the city—including universities and the media—who will guarantee broad credibility and autonomy, and who can play an active and impartial role in the monitoring process. Involvement of an academic entity in the set of leader–partners provides a partner capable of preparing the indicators and the citizen perception surveys. c. Evaluate the indicators in terms of the results obtained over time, for comparison with other cities that use the same model. d. Maintain a transparent information identification system, including dissemination and publication. e. Create a permanent professional relationship between the public sector and the actors involved, to guarantee access to the necessary information and to maintain technical discussions. f. Ensure the active participation of local and national professionals and technicians specialized in the analysis and dissemination of information.
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8.11 By way of example, the following are recent citizen monitoring initiatives in the ESCI framework: a. “Cómo Vamos La Paz” in Baja California Sur, Mexico, is a citizen initiative that emerged after implementation of the ESCI methodology. Institutions from various sectors participate, collaborating to monitor priority topics for citizens and follow up on the Action Plan (see Box 8.1). b. ESCI also supported the citizen initiative “Trujillo ¡Ahora!”, an institution formed by business leaders, professionals and organized civil society to monitor public management and confer with the authorities on specific actions to improve topics in the
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city. This initiative promotes proposals to improve the quality of life based on citizen perception surveys in the areas of transport, security, cleaning and public management. c. The Initiative has also supported the inhabitants of Goiânia, Brazil, in their efforts to set up a monitoring system. It is hoped that this system will be integrated into the “Nossa” network and stimulate citizen participation in planning a sustainable city.
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Box 8.1 Citizen Monitoring System in La Paz, Mexico: “Cómo Vamos La Paz” One of the additional cities in the ESCI started its Citizen Monitoring System under the name “Cómo Vamos La Paz” (www.comovamoslapaz.com). The structuring, start-up and operation of the system is seen as a process in which civil society (citizens, academia, the private sector) play a highly relevant role. This is considered necessary for two basic reasons: (i) it links the local population to the topics of sustainability in their city, which in turn makes the execution processes of the Action Plan more visible; and (ii) the link with society develops the local government’s accountability, resulting in better levels of governability and increasing the possibilities for achieving the targets proposed in the Plan. The following institutions participate in the system: the International Community Foundation (FIC), the Universidad Autonoma of Baja California Sur (UABCS) and the Municipal Planning Institute (Implan). The monitoring system measures performance in three areas of study: (i) sustainability; (ii) citizen perception; and (iii) compliance with the Action Plan. It is headed by a Managing Committee, formed, in its first year, by a representative from each of the following levels: • La Paz City Government • Banamex • Inter-American Development Bank • Femsa Foundation • International Community Foundation The Managing Committee is advised by experts from the IDB, UABCS, the Biological Research Center of the Northwest and the Mario Molina Center.
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9
Cities Network
A.
Cities Network
9.1
As more LAC cities apply the ESCI methodology, they will become part of a Sustainable Cities Network. As participants in the Network, they will share experiences, benchmarks, best practices and lessons learned. Capturing and sharing such data and information increases the knowledge of the cities and permits rapid evaluation, effective follow-up on the progress achieved and exchange of good practices (see figure 9.1).
9.2
As part of this effort, the Urban Dashboard (http://www.urbandashboard.org) provides access to the diagnoses and action plans for each city that has joined the ESCI program. Box 9.1 presents some of the events held in the framework of the ESCI Cities Network.
Figure 9.1 ESCI Cities Network
Rapid evaluation
⋅ Evaluate the city on the basis of indicators of the three dimensions • Identify key areas for developing and prioritizing solutions
Comparative evaluation
• Establish relations with similar cities in LAC • Compare with benchmark cities • Cities meta-objective
Share best practices
• Share knowledge and best practices in all the dimensions of sustainability • Share effective actions and financial approaches
Source: Analysis by the team.
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CITIES NETWORK INTERMEDIATE CITIES SHARE BEST PRACTICES TO SOLVE COMMON PROBLEMS RAPID EVALUATION BASED ON INDICATORS + IDENTIFY PRIORITY AREAS COMPARE WITH BENCHMARK CITIES + ESTABLISH RELATIONS WITH THEIR PEERS
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Box 9.1 Some activities implemented in the framework of the ESCI Cities Network ESCI Methodology Training Workshop: • 2012: Workshop held for the cities in the 2012 regular program and the first officers of the Strategic partnership with Findeter (Washington, D.C.). • 2013: Four ESCI methodology training workshops for the cities in the programs in Colombia, Brazil and Mexico, with the participation of officers from Findeter, la Caixa and Banobras.
Cities Network
Cities Network
Committee of Experts: Set up to conduct an annual review of the progress of the Initiative and its future challenges; the committee members were recognized specialists with vast experience in the study and management of urban development and the environment, including the IDB President Luis Alberto Moreno and the senior management of the Bank (Washington, D.C., September 2013). Annual Donors’ Meeting: Meets annually for review, accountability and promotion of new donors to the ESCI funds, with participation from over 25 companies and six official country representatives, including current and potential donors (Madrid, September 2013). (continued on the next page)
B.
Communication platform to support the dissemination and exchange of knowledge products
9.3
The ESCI has a communication platform to publicize the Initiative, its activities and its knowledge products. This platform responds to the problem of lack of access to information faced by many intermediate cities of LAC and allows them to share their situations, problems and achievements in relation to environmental, urban and fiscal sustainability.
9.4
The objectives of the communication platform include: a. Present the ESCI Cities Network to the public community and strengthen its communication capacity. b. Build a virtual community of learning on urban topics, maintaining contact with the cities and their inhabitants. c. Facilitate feedback between cities, recognizing their diversity.
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Box 9.1 Some activities implemented in the framework of the ESCI Cities Network (continued)
Other events: • Over 20 mayors and officials have travelled around the region and the world to support participation in events of investment, networking, good practices and development of our experiences, such as: Global Energy Basel (Switzerland), China–LAC (Costa Rica) and Asia–LAC (Japan). • The seminar “Public–private associations in the recovery of riverbank spaces. The experiences of Rosario and Medellín” was held in Rosario, Argentina. Its main objective was to generate more knowledge about the region’s cities, their potential for recovering rivers and coastlines as part of the reorganization of urban development, and the mechanisms of public–private cooperation that have facilitated the recovery and maintenance of these spaces (May 2014). Events planned for 2014: • Meeting of mayors of American and ESCI cities (Dallas, TX, June 19 and 20). • Summer course organized jointly with the University of Santander (Spain) (July 28 to August 1). • Meeting of the Committee of Experts (Washington, D.C., September 5). • China–LAC (China, September 12). • Meeting of mayors of Spanish and ESCI cities (Madrid, Spain). • Annual Donors Meeting.
9.5
The communication platform of the ESCI Cities Network directs its efforts to a broad public, including: ESCI and IDB staff; similar development organizations; local, departmental and national governments of the region; beneficiaries and future beneficiaries of sustainability projects; academia; related companies; financiers; media; and the general public.
9.6
The platform uses various online media (web pages, a blog and a Twitter account) to systematically disseminate its knowledge products, articles, press releases, images, photos, infographs and videos so that all these components are interrelated.
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This platform (www.iadb.org/cities) is also used as a bank of resources on the Initiative (see figure 9.2).
9.8
The platform also contains detailed information on the ESCI, its methodology, the cities participating in the program, strategic partnerships, information and knowledge resources, news, interviews, etc., along with links to other media used in the ESCI communication platform, such as its blog, Twitter account and the Urban Dashboard.
9.9
Cities Network
9.7
The blog offers an opportunity to share ESCI knowledge through analysis of sustainability topics, in the context of the actions and progress of the Initiative in the cities. Led by ESCI specialists, the platform is a space for sharing experiences, techniques and good practices among cities, as well as other topics of interest to the Initiative, strengthening the capacity of the relevant actors to confront the challenges of environmental, urban and fiscal sustainability. The ESCI has strengthened its communication efforts in the blog by increasing the publication frequency (to twice a week), with guest writers who share local points of view or forward-looking ideas on sustainability.
9.10 The communication platform reinforces its presence in the social networks through its Twitter account, @IDB_Cities, which now has 6,000 followers. 9.11 Our presence in this network increases the exposure of ESCI and its activities by sharing news and events of the ESCI Cities Network as well as relevant knowledge (studies, reports, articles, etc.). The Twitter account is also a platform for active exchange with our public, wherein the members of this virtual community can start conversations with others to share experiences and knowledge. 9.12 Since their inception, these platforms have experienced rapid growth in traffic and interaction. This growing digital community provides feedback to the platform in order to continue optimizing the communications of the Cities Network and achieve its objectives. The communication platform is planning to expand its presence in the digital media by broadening its reach to other social networks.
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Figure 9.2 View of the ESCI communication platform
Figure 9.3 View of the Cities Network blog
C.
Cities Network
Cities Network
Urban Dashboard
9.13 The Urban Dashboard, available at www.urbandashboard.org, is a web tool created to promote the exchange of information and knowledge on urban topics between the cities of LAC. This database on urban sustainability centralizes and collects all the information generated by the ESCI in each city where the methodology has been applied.
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Figure 9.4 ESCI Twitter account
Figure 9.5 The Urban Dashboard, in images
Cities Network
Cities Network
9.14 The main functionality of the dashboard is the database of the indicators for all the ESCI cities. This database covers 120 key quantitative indicators, across three dimensions of sustainability included in the ESCI, and provides local governments with technical support for monitoring and decision making. The system displays, as a “control panel,” the performance of the cities in all the topics analyzed.
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Figure 9.6 Control panel, displaying indicators of a city’s performance
9.15 The Urban Dashboard promotes transparency and citizen participation by displaying the indicators to all citizens. Dashboard users can compare the performance of each city with other emerging cities of the region in certain key indicators. 9.16 With the data display tool, users can also monitor the trends over time of the key indicators for each city. The baseline information collected by ESCI can be compared with the updated information produced by each city’s monitoring system.
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Figure 9.7 Comparison of the indicator “Green areas per 100,000 inhabitants” for
four cities in the Latin American region
100 80 60
Cities Network
Cities Network
40 20 0
2014 Mar del Plata
Barranquilla
Bucaramanga
Asunción metropolitana
9.17 The communication platform also contains a series of interactive maps that facilitate access to the geospatial information produced by each city’s baseline studies. The maps that display the growth of the urban footprint, which are generated from multi-temporal analysis of satellite images, are particularly relevant. 9.18 Lastly, the Urban Dashboard also gives access to all relevant additional information produced in each city, including: a. Baseline studies. b. Additional baseline studies. c. Studies prepared during the prioritization stage (economic impact study, results of public opinion surveys). d. Action Plan. e. Pre-investment studies. f. Other documents prepared for implementation of the methodology.
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Figure 9.8 Comparison of the 1988 urban footprint (in red) and the 2011 urban footprint
urban (in yellow) for the city of Cochabamba, Bolivia
9.19 The Urban Dashboard is an effort, within the framework of the Cities Network, to systematize the urban information of the emerging cities participating in the ESCI, thereby increasing the transparency of the process and permitting free access to the valuable information generated.
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Conclusions
10
The ESCI methodology is alive and dynamic—as is this Methodological Guide. It reflects the lesson learned since the program began, both the ones that worked and the ones that did not. It should be recalled that this is a process of evaluation and rapid action that has the potential to show progress in the short term. Its great added value is its integrated and interdisciplinary nature, which generates ongoing complexity; the process therefore must stay focused on actions that help cities in their efforts to achieve sustainable development. This document is simply a guide, and we recommend that users propose adjustments they consider to be necessary and report these to the Group Coordinator for official incorporation, along with the lessons learned from their application of the methodology. With this information, the methodology will continue to evolve as more teams implement it. The ESCI has already benefited many cities, helping them to deal with the most critical challenges of sustainability.
Good luck with implementing the methodology! Please send your questions and concerns to
[email protected]
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