Planning, Governance and Financing in Urban Development

Working Group

Planning, Governance and Finance - a Cross Cutting Theme Why? - The implementation of 3E investments requires governance systems to have the necessary capacity for effective planning, coordination, design, financing and construction and for sustained operation Objective: systems to be efficient, transparent and accountable ADB to engage through policy dialogue, advisory activities and project structuring

Building Effective Planning, Governance and Financing Systems under ADBs UOP

Planning as a process for long term engagement in focus urban regions, integrated and based on assessments of the environmental, social and economic priorities. Governance, structures and systems assessments to trigger municipal/metropolital governance and PSM reform & capacity building in project design. Innovative Financing to develop new modalities for the provision of infrastructure engaging other development partners and the private sector. Through A range of instruments PPP, credit enhancement and strategic use of non-sovereign/sovereign lending/guarantees.

Building Effective Planning, Governance and Financing Systems under ADBs UOP

Ineffective urban and land use planning Overlapping policy and institutional mandates Absent or inefficient regulation Lack of capacity to deliver services. Insufficient internal capacity generation and inability to leverage external financing resources (lack of credit worthiness/rating) Limited accountability, deficient citizen information and participation. Weak systems budget formulation and execution, asset management and accounting systems. Internal audit systems absent or waek. Lack of standard procurement processes and staff.

Some Common Issues Faced by many DMCs across Asia and the Pacific

Competitive
Planning Lack of Integration among Economic Planning and Town Planning processes

Green
Lack of Integration among Environment and Town Planning Processes Infrastructure/ Service-based vs env-based institutions Ineffective environmental enforcement Leveraging green financing

Inclusive
Integrated Planning of Slum Infra & Services Resolving land ownership constraints Citizens voice and representation, incl. women and vulnerable

Governance

Lack of Integration among Infrastructure/ Service-based and Job-based institutions (industry, education) Catalyzing private sector financing

Finance

Corporate Social Responsibility

Some additional considerations for ADBs 3E framework

Brief Review takes stock of main issues in Asia-Pacific, draws lessons learned, new approaches identifies and proposes 3-5 focus topics for further study Development of Common Indicators Development and Testing of a 2-day training program

Proposed 2013 Work Program for the Working Group