1 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 1

INVESTING IN INVESTING URBAN RESILIENCE URBAN

Protecting and Promoting Development in a Changing World in a Changing Development and Promoting Protecting

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InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 2 2 3 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 3

3.1 Financing Needs for Making Cities More Resilient More Cities Making Financing Needs for 3.1 Resilience Financing Urban to Obstacles 3.2 Finance Private for Potential The 3.3 Group Bank the World How Opportunities: 4. Resilience Urban to Value Add Can Funding? Resilience Help Secure to in Place Are Strategies What 4.1 Advantages? Comparative have the WBG Does Where 4.2 2.1 The Increasing Urbanization of Poverty of Urbanization Increasing The 2.1 Poor the Urban by Faced the Risks Increase That 2.2 Factors Linkages Resilience-Poverty the Urban of Awareness 2.3 A Growing Impacts Poverty Urban 2.4 Obstacles 3 Financing Needs and Overcoming 1. Why Do We Care about Urban Resilience? about Urban Care Do We 1. Why Resilience Urban Defining 1.1 Resilience in Urban Invest to is it Urgent 1.2 Why Resilience on Urban Focus International 1.3 Increasing Poor the Urban to Matters Resilience Urban 2. Why Acknowledgments Acronyms Summary Executive Resilience? About Urban Care Do We Why Poor Urban the to Matters Resilience Why Resilience? in Urban Investing to and Obstacles the Needs for Are What Resilient? More Poor and the Urban Cities Help Make Group Bank the World Can How 8 10 12 12 14 15 16 18 19 22 28 32 33 34 37 39 42 44 45 56 60 61 64 Table of Contents of Table

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References Endnotes Resilience Urban for Partnerships and Internal External ANNEX 4: Resilience in Urban Investing for Instruments Bank ANNEX 3: World Services Financing and Level Individual and Household Portfolio Resilience Urban Bank ANNEX 2: World 4.6 In Conclusion 4.6 RESIlIENCE OF URBAN DEFINITIONS ANNEX 1: SAMPlE and Services Financing City-Level Instruments Leveraging 4.5 What the World Bank Will Do Differently to Make Cities More Resilient More Cities Make to Do Differently Will Bank the World What 4.5 Financing and Services Level Community Services Financing and Country-Level Resilience Supporting Urban for Services Bank 4.3 World

114 112 109 105 99 95 93 92 92 81 80 79 75 70 Table 1.1: Classification of Urban Hazards of Urban Classification 1.1: Table Resilience Urban for Instruments Bank World 4.1 Table codes theme resilience urban A1: Non-core Table Figure 1.1: Share of national population and GDP in selected developing cities developing national population and GDP in selected of Share 1.1: Figure size and city vulnerability of level by rates growth 1.2: City Figure 1990-2013 group, income GDP by to relative losses 1.3: Economic Figure day the USD 1.25/ living below dwellers urban umber of 2.1 Figure scenario and climate economic different line under poverty the USD living below dwellers urban of 2.2: Distribution Figure regions geographic line in different poverty 1.25/day Fy12–16 Region by lending Commitment Resilience Urban 4.1: Figure Fy12–16 Instrument by lending Commitment Resilience Urban 4.2: Figure investments resilience urban for options menu of Sample 4.3: Figure

19 74 81 64 65 76 40 23 24 27 39 List of Tables of List List of Figures of List

InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 6 6 7 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 7 Box 1.1 Facing a Broad Set of Shocks and Stresses in Beirut in Stresses and Shocks of Set a Broad Facing 1.1 Box guarantee partial credit with a bond for Financing utilities 3.1: Box in zambia resilience energy enhance to partnership Public-private 3.1: Box / SmartGrid ciency Ef Energy Driven on Utility Project Africa South 4.1: Box in Brazil Contracting Performance-based 4.2: Box Project and Resilience Development Urban Tho 4.3: Can Box Risk Mitigation and Seismic Istanbul 4.4: Box (ISMEP) Project Preparedness Emergency in Ethiopia Cities and Resilient Safe for Using Analysis 4.5: Box Horizonte Belo lending for Policy Development 4.6: Box Accra in Metropolitan Resilience Enhance to Partnering 4.7: Box 69 72 77 19 48 52 62 63 65 66 List of Boxes of List T), onn, C), arragan arragan dmond an S C40). ities Cities enior tephane tephane S emonly, emonly, enior Housing onsultant, onsultant, onference (B onference S ilva Da Silva C), Lisa Britt C), William P GCC conomist, enior Housing S myth Smyth eon and Lisa he first was held at the he first eah Flax (100 Resilient Flax (100 Resilient eah ociety’s 2016 annual 2016 ociety’s enior C S eptember 13, 2016). 13, eptember enior E S overnments for for Governments ocal ess Wentworth (Project (Project Wentworth ess mergency Emergency he International RKDR), CRKDR), Officer, trategy ose ( ose S steban L ), Esteban rinivasan ( C), Giridhar Srinivasan winner (Principal Operations Officer, Officer, Operations winner (Principal ustainability and the second took took and the second ustainability he report also benefited from inputs inputs from benefited also he report hierno Habib Hann ( hierno Habib Hann , S USA Diego, at L thank the team We including T and layout the design for Manager), and Nicholas Paul the report of and copyediting proofreading for Friedemann Roy ( Roy Friedemann B Ranjan peer external as U08) as well GS Omar Siddique ( reviewers: B Zambrano Patricio Alliance), (IADB L (UN-Habitat), ( and Neil Walmsley Cities), T international during two received T consultations. C 2016 Cities Resilient organized 2016) July 8, Germany, ICLEI – L by S at T place S Management and on “Innovation conference Emergency Planning for Urban ( Cities” in Large Resilience pecialist, IF Specialist, Finance IF Officer, Investment (Principal T IF Specialist, Finance G IF E CDPPR), Officer, Operations Mjekiqi ( URR), S URR), GS DRM Specialist, ( Hallegatte ead ead he eitmann asquez asquez arah arah V atherine ameh onsultants). onsultants). otomayor otomayor T) and Julie C enior Urban enior Urban S atterthwaite atterthwaite vangelina Filippi vangelina ), and Francis ), and Francis ielsen (L . Holm-Nielsen D) led (IIED) olenbrander tephane Hallegatte Hallegatte tephane de Jorge Ijjasz- de Jorge ). GGSCE conomist, antos ( antos assidy Johnson, S Johnson, assidy tephen Hammer (Manager, Hammer (Manager, tephen P GCC conomist, pecialist, Specialist, enior Urban arah C arah URR), C URR), GS conomist, kshatvishal and Akshatvishal achdeva S ), Niels B ngelica S T), Maria Angelica ledgments cknow URR), S URR), GS enior Director, hristopher J. J. Christopher IIED), enior Fellow, enior E ead E ead FDRR) with with GFDRR) DRM Specialist, ead rcher, Donald Diane Archer, olenbrander, alerie-Joy S alerie-Joy ssefa (Practice (Practice enait Nigiru Assefa his report was prepared under the prepared was his report his flagship report was written by was written report his flagship S wati ynch ( S S S L URR), URR), GS (Director, Naguib Wahba S UGL GS Manager, T GFDRR). (Manager, Ghesquiere acknowledge to like would authors the to contributions the valuable peer reviewers, internal from report including S P GCC (L UGL GS ( Rozenberg (E Rozenberg T E of guidance T V A L and Josef URR) GS Specialist, S David from inputs (L ( Risk Management Chung (Disaster and Puja uha, G GFDRR), Specialist, S ( Chaturvedi Rohitshyam from benefited 2 especially Chapter Gustavo Hardoy, Jorgelina of the work C Pandiella, rown, and Maria E Brown, S (IIED). C the Shock Waves of analysis the urban kindly 2 which was in Chapter data S by provided (

InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 8 8 9 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 9 ocial, ), ynch URR) URR) GS L atherine oares (DRM Portfolio (DRM Portfolio oares UGL GS Specialist, enior Urban S lobal Practice of S of Practice and Global GFDRR) Urban, Rural, and Resilience ( and Resilience Rural, Urban, funding and support. their generous for Rebecca Ann S Rebecca and Jared GFDRR) Analyst Research (DRM Analyst, Phillip Mercandante input and their invaluable for GFDRR) review. the portfolio support for like also would the authors Finally, Facility Global the acknowledge to and Recovery Reduction Disaster for ( We sincerely thank C sincerely We ( ), WM, ead ead upply P), AG C), W ladimir ransport ransport enior homas A01), ead ead enior S S W . Maurer . A. Maurer alabozo alabozo ), Russell T), Russell chrader- ead Urban Urban ead nwar ajid Anwar T), T nergy enior Energy ittoria ittoria S achdeva for for achdeva uiz T ead Water S Water ead orenzo ( orenzo tephane Hallegatte Hallegatte tephane ommunications ommunications otomayor (L otomayor S wati ommunications Officer, Officer, ommunications URR), L URR), GS PQ), S SPQ), enior C pecialist, Specialist, enior Regulatory C) , Daniel Pulido ( ianco Darido (L ianco pecialist, G Specialist, anitation Gorham (T C), Roger S limate Change enior Climate S P GCC conomist, S enior C , IF S T pecialist, G Specialist, anitation enior E nrique Pantoja (Operations (Operations C), Enrique Pantoja diti Maheshwari (Policy Officer, Officer, (Policy diti Maheshwari dvisor, OP dvisor, tenek ( tenek I04), Joel Kolker ( L I04), Joel Kolker GT conomist, conomist , conomist IDR), V IDR), GT Specialist, ransport S OP, MIGA MIGOP, Garrido (Underwriter, A CBDP E pecialist, GEE04), Olga C Specialist, ), Janina Franco ( IC), Janina Franco GTC Moullier ( & S Water (L Glenn Pearce-Oroz and S S Maria Angelica pecialist, IF Specialist, Industry (Principal E L Meiro- Montserrat P Spec., GCC Public Health A. Muir (IF IDR), IDR), GT Specialist, Infrastructure B Georges T S and S CBDRR), Specialist, providing for GFDRR) (DRM Analyst, during and comments inputs valuable them. of with each our interviews ( A King ( and S Franchini, IF URR) and their team including including and their team URR) GS V Kreisberg, Julia Devan Da Silva Lisa to due are Special thanks CNG Officer, Investment (Principal FDRR), Kristyn S Kristyn GFDRR), Officer, supporting and varied coordinating Habitat for products communication including this report. III conference haela thank S also We services. ( Rahman ank ond Program conomies omponent atastrophe Deferred Drawdown Option Drawdown Deferred atastrophe urrency B urrency ocal C ocal ction ountries oan oans with C oans oan oan ystem oss ommunity Resilience ommunity ecurities Markets Institutional Development Institutional Markets ecurities daptation Finance Facility Finance daptation usiness Report usiness daptable Program L Program daptable verage Annual L verage ommunity Driven Development Driven ommunity Resilience ode for the Parties of onference ountry Partnership Frameworks Partnership ountry mergency Response C Response Emergency ontingent lobal Practice, World B World Practice, Global and Resilience Rural ocial, Urban, fficient S fficient lobal Facility for Disaster Reduction and Recovery and Recovery Reduction Disaster for Facility Global S C Inclusive lobal Infrastructure Facility Infrastructure Global Facility Insurance Index Global A for Framework Hyogo C Poor Highly-Indebted A A S Management Asset C C C A Climate L Policy Development Risk Management Disaster L Recovery Emergency E and Developing Markets Emerging limate Investment Funds Investment Climate C Window Crisis Response Doing B L Policy Development E Product Domestic Gross L Markets Emerging Global C s s yms cron AAL APL AMS CDD CFR COP CAFF CAT-DDO CERC CIF CPF CRW DBR DPL DRM ERL EMDE Mid es GDP Gemloc GFDRR GSURR GIF GIIF HFA HIPC ICR A

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 10 10 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 11 11 gency ooperation A ooperation gency ank dvisory Facility dvisory ank ommission ogether orporation oan overeign Financial Obligation overeign ssistance Program Assistance echnical ending Portfolio Program ending Portfolio tates Resilience Initiative Resilience tates ountry Diagnostic ountry arbon Fund o-L ollaboration for Urban Resilience Urban for ollaboration afety Net afety ank Group merican Development B Development American ustainable Development Goals Development ustainable C and Exchange ecurities ub-national T ocial S wedish International Development C Development International wedish ystematic C ystematic ssistance Assistance echnical S T B World International Development Association Development International Inter- Development and Environment for Institute International C Finance International Managed C B Development Multilateral A Guarantee Investment Multilateral S S S International Finance Facility for Immunization for Facility Finance International Finance Project Investment Assistance Development Official Medellin C Guarantees Credit Partial A Infrastructure Public Private Partnership Public Private T Disasters to Responding S Enterprises medium-sized Small-and S Non-honoring Financial Obligation Non-honoring S Results for Program C Prototype L Specific Investment Small Island S s s WBG TA SSN SSN SNTA SME SISRI SIL SIDA SEC SDG SCD SCD R2D2 PPP PPIAF PCG PCG PCF R Pfor NHSFO NHSFO Nhfo MIGA MIGA MDB MCPP MCUR MCUR ODA ODA IPF IFFIm IFC IFC IIED IDB IDA his report his report of the world’s poor, developing resilient cities cities resilient developing poor, the world’s of T critical. all the more is becoming investment increasing for the rationale explores to and their citizens cities of in the resilience recognizing change, and climate disasters natural with a help them cope also will that doing so Failing and stresses. shocks of range broader progress threatens resilience in city invest to while gains already growth made in economic be erased. may poverty made in reducing the World like institutions Increasingly, effective more developed have Group Bank to governments partner with city to ways to and adapt mitigate poverty, eliminate as as well change and disasters climate job creation for as engines cities promote all meeting However, growth. and economic ank ank 2014a). Resilience is Resilience ank 2014a). trengthening urban resilience resilience urban trengthening S 1 Executive Summary Summary Executive Cities are the world’s engines for economic economic for engines the world’s are Cities of than 80 percent more generating growth, GDP. global globally is a key element of sustainable sustainable of element is a key globally B the World and in achieving development roup’s twin goals of ending extreme poverty poverty ending extreme of goals twin Group’s In this report, prosperity. shared and boosting system, of a as the ability is defined resilience a to adapt to or person community, entity, withstand and to changing conditions of variety essential its maintaining while still shocks B functions (World with the spectrum live to about learning also between at the interface that exist risks of and the environment the economy, people, change to continues As the climate 2012). (Zolli increase disasters of impacts and the adverse number housing a growing which are in cities

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 12 12 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 13 13

3 dditionally, dditionally, frica and Asia frica aharan A aharan ilham 2009). Much of Much of ilham 2009). S hepherd et al. 2013). et Shepherd chilles heel of a highly efficient a highly efficient heel of chilles y 2030, 325 million extremely poor people million extremely 325 y 2030, hese trends are expected to become more more become to expected are trends hese Why Do We Care About About Care Do We Why Resilience? Urban will be living in the 49 countries that are most most that are countries will be living in the 49 ( hazards to prone urbanizing. rapidly is also the world In parallel, million people per adding 1.4 are areas Urban the of 60 percent Over 2014). (UN DESA week has yet 2030 by be urban to land projected A (UNISDR 2015). be developed to will need to housing units 1 billion new nearly growing the world’s house to be constructed (B 2060 population by in the developing place will take this growth through growth urban of with 90 percent world, in sub- expected 2050 Decisions about investments 2014). (UN DESA buildings and land infrastructure, in urban for huge implications have will now taken use and can in the future, outcomes development being from cities in preventing critical prove pathways development unsustainable into locked intense increasingly them to that will expose and stresses. shocks urban and frequent increasingly are in cities and assets People As people and enterprises, hazards. to exposed concentrate increasingly with their assets, on highly dependent become they in cities, systems, communications networks, infrastructure their for connections and utility supply chains, and manmade disruptions Natural well-being. and interconnected highly dependent these to on a impact a catastrophic have can systems needs of basic the most meet to ability city’s failure, with cascading – and can, citizens its the A become In recent years, losses associated with associated losses years, In recent considerably. increased have events natural T and growth population as global pronounced world in the developing urbanization rapid gains. development hard-won reverse to threaten B he he purpose of this of he purpose his will be achieved by: his will be achieved T 2 roup has the tools, expertise and expertise has the tools, ank Group demonstrating why the international the international why demonstrating should care community development in the developing about making cities 1); (Chapter resilient more world and shocks why understanding affect disproportionately stresses 2); poor (Chapter the urban financing needs and obstacles identifying 3); and, (Chapter be overcome to the how out a vision for setting more facilitate can Group Bank World investment sector public and private 4). (Chapter resilience in urban he audience for this report includes includes this report for he audience the resilience financing needs of cities in the of cities needs financing the resilience resources more far will require world developing development all multilateral amongst than exist need combined. Significant institutions finance sector the private for exist and opportunities T globally. cities of in the resilience invest to T structure. and Purpose World B World sector private enable and leverage to experience investments. resilience urban towards capital for the need and potential highlight is to report and middle- in low resilience in urban investing countries. income stakeholders in vulnerable cities in the cities in vulnerable stakeholders in urban investors potential world, developing partners and future as existing as well resilience in cities resilience on advancing working • • • • T he endai . 2013). genda (October 2016). In 2016). genda (October roup has a mandate has a mandate ank Group his package would consist consist would his package oals Goals Development ustainable ction Plan, urban strategy and efforts and efforts strategy ction Plan, urban limate Change Climate the 21st 2015), eptember onference of the Parties (December 2015), 2015), (December the Parties of onference S C A Urban and the New B the World parallel, limate C its through resilience in urban invest to Change A risk management. disaster mainstream to D 1 trillion or more per year by 2050 2050 by per year more USD 1 trillion or of in adaptation without further investment S (Hallegatte and risk management local of the impact Finally, Implications: Global – crop repercussions global have can events to lead can the world of one corner in failure example, for in another, instability political can disrupt city while floods in a single globally. product a key supply chains of inevitable. is not scenario this pessimistic But annual investments 15 years, the next Over risk disaster USD 6 billion in appropriate of risk total generate could strategies management billion (UNISDR of USD 360 benefits reduction a “resilience implemented If all countries 2015a). be would the gain in well-being package”, of in national income an increase to equivalent T billions per year. of financial inclusion, development better of increased insurance, risk and livelihood disaster safety and scalable protection social of coverage and funds, reserve and finance contingent nets, systems. warning early to access universal cities for opportunity of is a window There the challenge meet to alike and investors investing Proactively resilience. urban of a of the occurrence – prior to in resilience a strategic – represents event catastrophic whereby trends development past shift from towards mobilized largely were investments T post-disaster. and reconstruction recovery begun to has recently community international resilience the urban of the importance recognize as the S such initiatives through challenge, (March Risk Reduction on Disaster Framework the UN S 2015), ( he impact of climate climate of he impact ) from disasters in disasters ) from AAL his concentration of of his concentration and interrelated network. Rapid and unplanned Rapid network. and interrelated risk: of driver is a particular urbanization such as hillside areas, in high-risk development often land, is or subsiding floodplains, slopes, vulnerable as the poor and the uncontrolled, more are they because areas in hazardous settle in most felt are impacts these Often, affordable. to manage and adapt able to least the countries and changing vulnerability disaster increasing change. with climate associated conditions and disasters of impacts adverse The in acutely most felt change are climate economic of the drivers are Cities cities. in developing progress and social development of many home to also but are countries T poor. the world’s wealth and vulnerability has its costs: has its and vulnerability wealth Global disasters: of cost economic Growing ( annual losses average at estimated now are the built environment USD 415 to increase billion and can USD 314 requirements investment due to 2030, billion by And (UNISDR 2015a). infrastructure in urban include not as it does estimate, this is a low cyclones, tropical beyond threats of the impact and floods such as tsunamis, earthquakes, and stresses. shocks and economic social poor: on the urban impact Disproportionate have can resilience in urban invest to Failure poor. on the urban impacts adverse significantly change, climate of and the effects Disasters reverse could prices, food such as increased of tens gains and force development many poverty. into back residents urban millions of T impact: of levels Varying ways in different change will be experienced located Cities localities. urban different by as in as well tidal zones along the world’s will be subsiding land is already where areas the risk example, For affected. particularly in the 136 and subsidence rise sea-level of in losses result could cities coastal largest

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 14 14 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 15 15 his he he frica. frica, frica, aharan A aharan S aharan A aharan S he global need for urban urban need for he global outh Asia and sub- significant proportion proportion A significant FLA 2015). CC Significant financing is needed to invest in invest to needed financing is Significant T resilience. urban USD to amounts investment infrastructure estimated which an of trillion per year, - 5.4 4.5 make to is required percent 9–27 of premium and climate low-emissions this infrastructure ( resilient in the developing cities is from this demand of in sub- example, For world. spending needs (including capital infrastructure from range and maintenance) and operations low- GDP in fragile of percent 37 a high of in middle-income 10 percent to countries income al, 2008). Garmendia et (Briceño- countries that deter exist major obstacles However, towards capital private of mobilization T resilience. in urban investment new world in the developing that cities argument markets” capital global to need access “just activities in resilience-increasing invest to cities these of that many recognize to fails that reduce factors other by constrained are or climate-adaptive for credit to their access investments: infrastructure urban other What Are the Needs for the Needs for Are What Investing to and Obstacles Resilience? in Urban Failure to invest in urban resilience can can resilience in urban invest to Failure sending gains by development reverse million 77 Up to poverty. into millions back poverty into back fall could residents urban high climate of scenario in a likely 2030 by T growth. economic and inequitable impacts on a USD 1.25 based estimate is a conservative line which is applied nationally and poverty T in cities. poverty urban understates often will poverty urban increased of primary drivers associated and the costs prices be higher food Most diseases. in waterborne with an increase climate due to poverty in urban the increase of and in the cities change will be concentrated S of towns frica live in slums. in slums. live frica sia and nearly outh Asia and nearly hirdly, poor cities poor cities hirdly, aharan A aharan S There is a growing awareness of the urban the urban of awareness a growing is There is Poverty linkages. resilience-poverty those especially poor, and the urban urbanizing faced increasingly are settlements, in informal and livelihoods. health their lives, to with risks were residents 880 million urban than More of an increase in slums in 2014, live to estimated than 30 more Regionally, 2000. since 11 percent in S residents city of percent Why Resilience Matters Matters Resilience Why Poor the Urban to 60 percent in sub- 60 percent basic in usually deficient are and communities substantially that can and services infrastructure and manmade natural to exposure reduce the urban of the resilience In this sense, hazards. governance of the quality tied to poor is heavily plan and properly to capacity and government reduce to required manage public infrastructure residents. their lower-income by faced the risks that requires risk management disaster Finally, and engage with households governments local the account into at risk, taking communities especially poor of the urban concerns specific Risks faced by the urban poor relate to their to poor relate the urban by faced Risks to access low location, base, economic limited as and services infrastructure risk-reducing and disaster governance as inadequate well poor often the urban Firstly, risk management. to housing and lack assets safe afford cannot many Next, and stresses. with shocks cope in or close located poor neighborhoods are adverse which impose zones hazardous to T on their residents. costs lums generally have lower lower have Slums generally 2016b). (UN-Habitat, more are and services and infrastructure of levels In addition, types. varying of hazards to exposed people and displaced internally of the majority and in cities, settling increasingly are refugees people. vulnerable of a special class represent evy evy roup, ank Group, he burden he burden roup can play a play can ank Group s in climate-related investments has investments s in climate-related increase their own-source revenue, improve improve revenue, their own-source increase creditworthiness, enhance management, fiscal planning, and investment capital improve T projects. investor-ready prepare magnitude of risk mitigation is on a scale of B the World of the capacity beyond For alone. carry to or cities, or governments for infrastructure, of in the case this reason, B the World example, financing third-party in leveraging role critical and upstream midstream at the downstream, chain. (L value the investment of segments include actions would Downstream 2016). change in the environment positive promoting as improving as well operate in which projects and promoting mechanisms, resolution dispute pre-development for capacity local developing reduction and risk-sharing financing, risk and sharing as standardizing as well measures or platforms data through information project improving entail actions could Midstream hubs. of investments, the financial performance and resilience, of costs funding the incremental financing innovative of the use encouraging financial diverse from which source techniques finance commercial guarantees, (e.g. resources wealth sovereign pension and and refinance, would entail work beneficial Upstream, funds). risks embed climate support to providing infrastructure in ‘traditional’ and adaptation sophisticated more through projects and disseminating planning or developing infrastructure such as fixed-income tools the regulatory while understanding indexes, of responsibilities and fiduciary constraints Initial their principals. and managers asset by dollar spent every promising: are results the MDB finance. private of dollars three leveraged upport his apacity apacity he issues he issues is driven by some governance constraints constraints governance some by is driven the complexity, regulations and (financial including corruption, environment policy financeable of absence uncertainty, political and data as lack of as well proposals) performance. benchmark asset to standards – Limited preparation in project Challenges with project experience government - and limited and preparation identification preparation project to commit to resources well-developed, that the pipeline of - means resilience and infrastructure urban financeable is limited. investors to offered projects – T Financing challenges on cities of dependence around: revolve to capacity low transfers, intergovernmental as limited as well investments for revenues raise and SMEs. entrepreneurs local funding for struggle also world in the developing Cities fund their investment to resources raise to fund ongoing to struggle and at times needs, unfunded due to public services, of provision generated locally of sources limited mandates, creditworthiness. lack of and revenue, these address help can Group Bank World The from investment stimulate and constraints donor investors, institutional capital, private funds and wealth sovereign aid and finance, S banks. development multilateral other technical includes obstacles overcoming for to subnational governments to assistance constraints include: the inability to plan to include: the inability constraints investments; resilience and implement to revenue sufficient generate to inability obligations and maintain existing meet impacting adversely on-going programs, national legal and their creditworthiness; private that deter systems regulatory general and uncertainty; political investment; development. infrastructure to challenges – T confidence sector private of Lack – C capacity government of Lack

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 16 16 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 17 17 ank he ank he Program he Program ction Plan. T roup can scale scale can ank Group his will be complemented by work work by his will be complemented y making urban resilience a formal a formal resilience y making urban ank has pursued over a dozen external and external a dozen over ank has pursued nnex 3). Annex (see sectors across working for not resilience in urban as investing Importantly, but capital of amounts significant only requires planning, the long-term forward-thinking, also development multilateral with other (along WBG is uniquely positioned institutions) finance the with leadership support visionary city to support which technical needed financial and decades. but also only years, not span can up scale to opportunities concrete are There sector Private resilience. in urban investments strategic a through can be leveraged financing lending, guarantees co-financing, of expansion and instruments, risk management and other financing. A scaled-up concessional through a billion benefit aims to Program Cities Resilient crowding decades, two the next people over finance to capital in USD 500 billion in private and enable 50 million in 500 cities resilience T poverty. from escape people to B than 400 World support more would better to that engage with cities teams task in urban investment demand for to respond T resilience. B the World by that is supported in cities Change A Climate Group’s B that will be fundamental partnerships internal (see ambitious objectives these achieving to 4). B Annex B the World line, business financing, leverage provide to ability up its sectors, the public and private from resources partnerships, strengthen policies, support better needed to the knowledge and share and develop resilient. poor more and the urban cities make he ore ore ank has he B ank supports improved policy policy ank supports improved ank’s current urban strategy is strategy urban current ank’s he B hese instruments are complemented complemented are instruments hese roup can further help leverage further help leverage can ank Group roup has demonstrated increased increased has demonstrated ank Group World B World of a suite through required capital the private provide risks, that identify instruments existing investment and facilitate mitigation solutions and national city, community, at the household, T levels. such support resilience, urban to with services frameworks and methods, tools as analytical and procedures dialogue and reform, policy for built around five thematic areas, one of which one thematic areas, five built around T priority. a city policies is making pro-poor capacity to work across sectors, working with working sectors, across work to capacity national and to investors private from partners the who understand subnational governments faced. the challenges of timeframe and scale the B In this role, has the powerful Group Bank World The to help services and financing products more poor become and the urban cities T resilient. worked in more than 7000 cities and towns and towns cities than 7000 in more worked USD over committing countries, 130 across projects than 900 more 50 billion through the past over activities with climate-related USD 5 billion over and investing years five C risk management. annually in disaster has averaged resilience in urban investment the last over USD 2 billion per year almost 41 in 79 projects of for a portfolio years five the World 2). Finally, Annex (see countries B and draws resources, leverages environments, to critical which are – all of knowledge on global and prepare identify, governments helping city resilience. in urban investments implement With its depth of experience, extensive extensive experience, of depth its With expertise technical financial and in-house Bank World the power, and unique convening up urban scale to has the capacity Group T globally. investment resilience How Can the World Bank Group Group Bank the World Can How and the Cities Help Make Resilient? More Poor Urban Why Do We Care about about Care Do We Why Resilience? Urban

Chapter

01 The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 1818 1818 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 1919 1919 . 1.1) ox his project will develop a master plan plan a master will develop his project ynergies and trade- and ynergies ank. T eirut provides an example of of an example eirut provides ity Resilience Project for for Project Resilience ouncil has launched the City B 2 by ensuring current ensuring current by term sustainability sustainability term Investing in resilience in resilience Investing future generations. future development gains development are safeguarded for for safeguarded are contributes to long- to contributes ity C eirut City ank 2014a). transforming systems which inhibit current or inhibit current which systems transforming S capacity. adaptive future identify to in order be considered also must offs the possibility that reduce situations “win-win” (World benefits potential and increase loss of B Urban resilience is a critical element of of element is a critical resilience Urban in resilience Investing development. sustainable by sustainability long-term to contributes gains are development ensuring current Resilience generations. future for safeguarded for, prepare to on learning especially focuses (see B (see resilience urban to this approach eirut is growing rapidly while fostering a strong and vibrant private private and vibrant a strong while fostering rapidly eirut is growing eirut with support from the World B the World eirut with support from B flooding, severe earthquake and subsequent tsunami), refugees and mass mass and refugees tsunami), and subsequent earthquake severe flooding, economic, social, Recurrent others. amongst and poor air quality, migration, the city. of development further challenge the sustainable shocks and political the B In response, needed to make the city more resilient to current and future challenges and challenges and future current to resilient more the city make needed to of multi- series a to implement commitment in its step as the first will serve resilience. the city’s of enhancement and support an effective initiatives sectoral his report his report ebanon’s population, B ebanon’s here is no standard no standard is here otably, resilience refers refers resilience Notably, ank 2014a). — Defining sector. In parallel, the city faces a growing spectrum of risks stemming from climate change, natural hazards (i.e. (i.e. hazards natural change, climate from stemming risks spectrum of a growing faces the city In parallel, sector. disruptive event (either natural or human- natural (either event disruptive It be predictable. not which may induced), and to shocks avoid to the ability incorporates constantly while being able to manage risks, change when needed and quickly to adapt Facing a Broad Set of Shocks and Stresses in Beirut and Stresses Shocks of Set a Broad Facing 1.1: Box L than half of more Home to Bank 2016i) (World Source: aunched in December 2015, the project will (1) conduct comprehensive city diagnostics to identify the range of shocks and shocks of the range identify to diagnostics city comprehensive will (1) conduct the project 2015, Launched in December (2) develop a disaster; of event them in the to and respond mitigate to capacity its and analyze city the by faced stresses strategies; multi-sectoral and long-term short- interlinked of a set which will identify strategy implementation an integrated strategy. an awareness-raising and preparing stakeholders city engaging key by program a capacity-building and, (3) initiate lience esi R Urban Urban resilience has many definitions most of most definitions has many resilience Urban manage to the ability account into which take which and stresses shocks of the wide range T in a city. occur may 1.1 existing of sample and a however, definition, 1. T in Annex provided is definitions system, of a ability as the resilience defines a variety to adapt to or person community, entity, shocks withstand and to changing conditions of functions essential its maintaining while still B (World or quickly maintain to a system of the ability to a following functionality desired to return elect experiences, elect experiences, Socioeconomic his is especially the case the case his is especially Business discontinuity Business Corruption shifts Demographic crisis Economic High unemployment Labor strike/unrest Massacre conflict Political conflict Social (e.g. crises Supply housing, water, food, etc.) energy, Terrorism War . S below) able 1.1 (see T (see Resilience has often been associated with with been associated often has Resilience withstand to communities of the capacity and disasters, change climate of the impacts the major development which represent and change As climate our time. of challenges and measurable documented have disasters change climate on cities, impacts negative have risk management and disaster adaptation urban the overall of the core represent to come T agenda. resilience the increase to is expected change as climate In hazards. existing of and frequency intensity resilience of the definition years, recent more involving aspects include key to has broadened technological, but also hazards, only natural not and shocks and cultural political economic, social, stresses lessons and solutions from climate change climate from solutions and lessons risk management and disaster adaptation the and applied to be adapted may activities versa). vice (and below detailed hazards other Technological ank Building collapse Building spills Chemical threats Cyber Explosion Fire Gas leak accident Industrial Oil spill event Pollution Poisoning Radiation accident Transport ICT, (e.g. breakdown System energy, and sanitation, water etc.) education, health, t the same time, investing investing time, t the same ank, issues of sustainability and sustainability of ank, issues Natural is expected to to is expected the increase and intensity frequency of of frequency Climate change Climate existing hazards. existing Drought Earthquake Epidemic/pandemic temperature Extreme Flooding infestation Insect storm Severe Tsunami eruption Volcanic Wildfire Source: Adapted from UN-Habitat’s City Resilience Profiling Tool and based based Tool and Profiling Resilience City UN-Habitat’s from Adapted Source: and PreventionWeb by EM-DAT of hazards on classification Classification of Urban Hazards of Urban Classification 1.1: Table resilience in this report are primarily focused focused primarily are in this report resilience countries. and middle-income low- of on cities approaches to sustainability. For example, it does it does example, For sustainability. to approaches sustainability social into the insights provide not science the social gained through that are and knowledge, conflict, agency, of concepts mandate the Given al. 2015). et (Olsson power B the World of in resilience is not a substitute for broader broader for a substitute not is in resilience adapt to, and respond to the spectrum of risks risks the spectrum of to and respond to, adapt the people, between interface at the that exist B (World the environment and economy, A 2012). Zolli 2014a,

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 20 20 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 21 21 t the regional and national t the regional his draws attention to regional, regional, to attention his draws Poor people are people are Poor affected by shocks shocks by affected and stresses. disproportionately disproportionately of municipal governments to take measures to to measures take to governments municipal of and enterprises communities enable households, and to a shock, avoid or a stress manage to an adverse following services critical maintain up and running services getting (e.g. event to damages repairing a disruption, following A infrastructure). reforms, policy actions — whether key level, strategies or financial protection investments, in resilience urban enhance to be pursued — can of cities. set or area vulnerable a specific city, as cities consider also must Resilience urban to approach Any systems. complex the account into take must resilience generation), revenue municipal functional (e.g. and leadership), governance (e.g. organizational (e.g. and spatial infrastructure), (e.g. physical interrelated. which are dimensions, design) urban of or breakdown a disruption follow shocks Urban system, the urban of individual or multiple parts upheaval, social recession, economic whether deal to governance of or a failure epidemics, Resilience system. of the with inefficiencies consider need to and investments strategies multiple across underlying relationships these NEP and UNISDR 2015). (UN-Habitat,U sectors extends often resilience urban of scope The a of boundaries the administrative beyond national regional, due to single municipality resilience on overall A focus factors. and global than on only risk management rather capacity a recognition from stems and adaptation depends on goods functionality that a city’s services) (including ecosystem and services administrative own its beyond originating from T boundaries. t the individual and he importance of resilience for the urban the urban for resilience of he importance t the community level, in addition to in addition to level, t the community t the city level, resilience entails the capacity the capacity entails resilience level, t the city these, resilience includes the capacity to work work to the capacity includes resilience these, a shock. or avoid a stress manage to together A by risk reducing infrastructure); to take action action take to infrastructure); risk reducing by cope to a shock; of the occurrence before and to occur; when it does with the impact resilient a more to or progress back bounce A state. Resilience should be measured on different on different should be measured Resilience and household, the individual — from scales and national municipal the community, to differ will also actions Prescriptive levels. A scales. these to according hapter 2. in Chapter depth in greater poor is explored would resilience example, for levels, household manage action to take to include the capacity (e.g. shocks of the impact and avoid stresses protected or locations households living in safe The disproportionate impact of urban shocks shocks urban of impact disproportionate The population low-income on a city’s and stresses apparent. is clearly settlements and informal to attention is drawing literature A growing poor. the urban amongst resilience the lack of by affected disproportionately are people Poor are they only because — not and stresses shocks more subsequently (and exposed more frequently but also shocks, climate-related to vulnerable) and receive resources fewer have they because to with, and adapt cope prevent, support to less intensify to is expected change them. Climate and further hinder and stresses shocks these al. et (Hallegatte, poverty reduce to efforts T 2015).

ince Since al. 2013). et Shepherd, ) associated with earthquakes, with earthquakes, ) associated AAL rgent hy is it U 1.2 W rban in U Invest to lience Resi in is critical resilience in urban Investing as as well development sustainable achieving ending of goals twin Group’s Bank the World shared and promoting poverty extreme and urbanization Rapid 2030. by prosperity drive to threaten hazards to exposure increasing and dangerous to shocks and stresses the risk of impacts. global systemic with levels unpredictable average expected global In the built environment, ( annual loss and wind from surges, storm tsunamis, floods, at USD 314 estimated is now cyclones tropical projection A recent billion (UNISDR 2015a). poor people million extremely that 325 states to prone most countries will be living in the 49 ( 2030 by hazards people will be poor and vulnerable these of many eliminating poverty environments, living in urban be gains cannot development and safeguarding impacts disaster without addressing achieved settings. in urban events and climate

levels with systemic systemic with levels Rapid urbanization urbanization Rapid threaten to drive the the drive to threaten risk of stresses and and stresses risk of global impacts. global exposure to hazards hazards to exposure shocks to dangerous dangerous to shocks and increasing and increasing and unpredictable national and global supply chains and financial national and global socio-economic-political- well as the as flows a outside from which originate crises cultural government. its of and thus the jurisdiction city and energy food water, a city’s example, For a beyond supplied from generally are resources and this should boundaries, administrative city’s its when considering account into be taken floods against safeguarding Similarly, resilience. within a works only flood protection not entails management, watershed effective but also city jurisdiction. a city’s of upstream which is often consumption resource In addition, a city’s while consequences upstream have patterns downstream have waste of emissions its such inter-connections, of Examples impacts. the exposure demonstrate therefore as these borders. its beyond events to a city of

The World Bank | Investing in Urban Resilience

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InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 23 23

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4 his Small Medium Big Mega CITY SIZE 2.5 his, in turn, leads to to leads in turn, his, 2.0 ities in the developing world often account account often world in the developing Cities GDP than of of share a much greater for . 1.1) Figure the national population (see not does success economic a city’s But Many resilience. greater to lead necessarily neither the required have cities growing rapidly nor the risk-informed and services infrastructure in measures management planning and land use all their inhabitants, safeguard to required place an economically Similarly, and activities. assets a healthy, to equate not does city successful and low- In many city. or sustainable inclusive usually are cities countries, middle-income space, urban to unequal access by characterized T and security. services, infrastructure, in risk, particularly of patterns new generates or non- with deficient settlements, informal protection and social infrastructure existent degradation. environmental of and high levels Growing concentration of of concentration Growing in cities activity economic rapid countries, and middle-income In low- with associated is generally urbanization T growth. economic rapid and assets people, of a higher concentration environments. in urban activity economic 1.5 irkmann 2016). In irkmann 2016). 1.0 Annual average urban population growth rate (%) rate population growth urban Annual average Annual average urban population growth rate (%) rate growth population urban Annual average 0.5 better management management better between risks and risks between lies in effectively in effectively lies future scenarios. future while accounting for for while accounting of current challenges challenges current of urban development in development urban a manner that enables a manner that enables addressing the interplay the interplay addressing The greatest opportunity opportunity greatest The percent between 2015 and 2030 – equivalent to to – equivalent and 2030 2015 between percent (B residents million more 469 second- developing rapidly Asia and elsewhere, daily struggle a face already cities and third-tier both to and services infrastructure deliver to limited given settlements, and existing new finances. and constrained capacities institutional major have that still cities it is these Yet land and planning decisions ahead investment, in lies opportunity the greatest them. Here, of risks between the interplay addressing effectively in a manner that enables development and urban while challenges current of management better Dayal (Brown, scenarios future for accounting and Rio 2012). 0 Low City growth rates, according to relative vulnerability and proportion of urban population (2000–15) population urban and proportion of vulnerability relative to according rates, growth City High

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Urban vulnerability classes vulnerability Urban *Vulnerability is measured by the Urban Vulnerability Index in five classes (very low to very high). Source: Birkmann et al, 2016 et al, Birkmann Source: very high). to low (very classes in five Index Vulnerability the Urban by is measured *Vulnerability City growth rates, according to relative vulnerability and proportion of urban population (2000–15) population urban of and proportion vulnerability relative to according rates, growth City City growth rates by level of vulnerability and city size and city vulnerability of level by rates growth 1.2: City Figure

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 24 24 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 25 25 loch and he vulnerability of of he vulnerability he construction of infrastructure infrastructure of he construction livelihoods, lives, of the loss through Shocks impact all impact Shocks to equate not does or sustainable city. or sustainable city successful a healthy, inclusive inclusive a healthy, development of aspects directly felt and are and infrastructure. An economically more likely to live in hazard-prone areas and areas in hazard-prone live to likely more invest to proactively capacity financial less have insurance A lack of measures. in risk-reducing mechanisms protection and social coverage with the cope to their capacity further hinders and disasters. change climate of impacts systems Urban cities, to move with their assets, people, As more on infrastructure highly dependent become they and urban systems, communications networks, sea- With their well-being. for delivery service intense more patterns, rainfall changing rise, level and other temperatures increasing storms, a broad and stresses, shocks climate-related on people effects interdependent spectrum of T results. and infrastructure by as a whole is increased systems the urban the where in high-risk areas development urban hillside slopes, (e.g. live to afford poor can urban (Jha, B land) or subsiding flood plains, T Lamond 2013). further adds to areas high-risk these connect to as a whole. systems the urban of the vulnerability supply chains Global and economy the world of the globalization With a supply chains, on global reliance increased another impact can or region in one city disaster wiss Re 2014). 2014). Re wiss S recent risk analysis risk analysis A recent ank 2014a). FDRR 2016 , Donner and Rodriguez 2008). 2008). , Donner and Rodriguez GFDRR 2016 s elaborated in the next chapter, the urban the urban chapter, in the next As elaborated are as they be impacted to likely more poor are of 616 major metropolitan areas — home to 1.7 1.7 — home to areas major metropolitan 616 of the world’s of percent 25 or nearly billion people, approximately population, and generating total that flood risk GDP - found the global half of natural other people than any more threatens 379 over to a threat flooding poses River hazard. and with earthquakes residents, million urban million 283 affecting winds potentially strong ( million, respectively and 157 hocks impact all aspects of development development of all aspects impact Shocks lives, of the loss through directly felt and are and indirectly and infrastructure, livelihoods, development funds from of the diversion through (DFID and reconstruction relief emergency to B World 2004, Urban lives and livelihoods lives Urban The scale of population growth in most towns towns in most growth population of scale The of the capacity has overwhelmed and cities and more Larger governments. municipal many only that not mean cities populated densely hazards, to exposed are people and assets more the urban of that the characteristics but also changed, are or environment system ecological risk disaster of the level increasing potentially ( change climate to exposed are and assets People dimensions: key in a number of and disasters The growing exposure of cities to natural and natural to cities of exposure growing The challenge a real represents man-made hazards development sustainable the global to risks, and disaster climate agenda. Increasing undermine and inequality, with poverty together A significant development. urban sustainable considered cities country developing portion of class vulnerability urban high” be in a “very to at an growing cities and medium-sized small- are percent 2 approximately of rate annual average 1.2). Figure (see respectively and 2.6 percent, Increasing exposure of people people of exposure Increasing change climate to and assets impacts and disaster osses his figure is his figure his is equivalent to to his is equivalent uch an annual investment uch an annual investment Global average annual losses (AAL) from from (AAL) annual losses average Global now are in the built environment disasters increase billion and can at USD 314 estimated T 2030. by billion USD 415 to and underestimates impacts, disaster only for inadequate of consequences the economic and losses damages a) because: resilience included (e.g. not are hazards other from epidemics, congestion, pollution, conflict, and terrorism) building collapses, accidents, include not does the assessment and b) economy. on the informal impacts economic is not losses in expected this growth However, U SD 6 billion in of Annual investments inevitable. strategies risk management disaster appropriate of USD benefits risk reduction generate could T 15 years. billion over 360 more by losses expected of an annual reduction S than 80 percent. only 0.1 represents risk reduction in disaster that will the USD 6 trillion per year of percent the over in infrastructure be invested to have for However, (UNISDR 2015a). 15 years next that small additional investment countries, many in achieving a crucial difference make could ending of goals the national and international Increase in Expected L in Expected Increase Environments in Urban . An his 5 ohoku ohoku ank 2014a). interconnected and interconnected Risk itself becomes becomes Risk itself globalized as both the as both globalized causes and impacts and impacts causes are increasingly increasingly are sectors. other affect hailand and for automobiles after the T after automobiles hailand and for earthquake and tsunami in Japan. Understanding Understanding in Japan. and tsunami earthquake and potential flashpoints, linkages, these when considering essential are chokepoints B (World resilience enhancing urban example of this was the disruption of global global of the disruption this was of example floods in following drives hard supply chains for T city or region. Risk itself becomes globalized as globalized becomes Risk itself or region. city increasingly are and impacts the causes both T sectors. other and affect interconnected investments with foreign the case is especially comparative offering cities into flowing closer labor costs, lower (e.g. advantages higher also but markets), export to proximity due and stresses shocks to vulnerability of levels in risk-reducing investment of levels lower to decision-making is Investment infrastructure. in these level the hazard take able to rarely of volumes and large account, into locations cities, hazard-prone into flow to continue capital of value in the increases significant to leading DR 2015a) (UNIS assets economic exposed

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 26 26 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 27 27 high Income ank report, if all ank report, ank 2016c). ank 2016c). Upper middle Income his package would consist consist would his package billion per year. income of USD 100 USD of income implemented a implemented the gain in well-being the gain in well-being If all countries If all countries would be equivalent to to be equivalent would an increase in national an increase “resilience package,” package,” “resilience ccording to a recent World B World a recent to ccording Increasing resilience is good economics. is good economics. resilience Increasing A countries implemented a “resilience package,” package,” a “resilience implemented countries to be equivalent would the gain in well-being USD 100 of income in national an increase T billion per year. financial inclusion, development better of insurance, risk and health disaster of and protection social of coverage increased and finance contingent nets, safety scalable early to access and universal funds, reserve B (World systems warning Lower middle Income Lower thiopia, ank 2016a). . Investing . Investing 6 Low Income Low 0.16 0.12 0.10 0.14 0.18 0.06 0.02 0.04 0.08

hese losses also represent a serious erosion erosion a serious represent also losses hese % of GDP of % with the least in countries public investment of 1.3). In Madagascar, Figure (see invest to capacity annual historical the average example, for equivalent are 2001 since disasters from losses public annual average of per cent 75 around to period in the same investment Increasing disaster loss and impacts, and impacts, loss disaster Increasing will undermine change, by climate magnified and middle-income low many of the capacity investments the financial make to countries achieve to necessary expenditures and social (SDGs). Goals Development the Sustainable T poverty, improving health and education and education health improving poverty, and and ensuring sustainable outcomes, in E example, For growth. equitable Source: UNISDR with data from EM-DAT and the World Bank and the World EM-DAT from UNISDR with data Source: USD 10 million in improving of an investment in cities with building regulations compliance USD of losses of reduction in a net result could B (World 2050 600 million through Economic losses relative to GDP by income group, 1990-2013 group, income GDP by to relative losses 1.3: Economic Figure in climate change adaptation and disaster and disaster change adaptation in climate precondition is thus a critical risk reduction development. sustainable promoting for s limate Climate ank Group roup aims to aims to ank Group Cities” and Resilient ustainable Priority 3: Scale up Climate up Climate 3: Scale and Priority Priority 2: Leverage 2: Leverage Priority ction Plan’s transformation is imperative in order to to in order is imperative transformation goals; climate and global client meet has a comparative the WBG record track a successful advantage, and difference; a make and can market demand and appropriate client been observed already have conditions and regions. countries in many hrough its lending and technical assistance assistance lending and technical its hrough can support governments in designing and in designing support governments can actions that generate climate implementing project through co-benefits resilience as support and pooled vehicles, preparation mitigation, and risk enhancement as credit well 4. in Chapter which will be further discussed Plan Change Action Climate WBG key as a is identified resilience in urban Investing B World the to contribution Change A Resources . “S Action as it is an theme, as a priority is identified where: area • • • the this theme, promote to work its As part of urban into climate integrate better aims to WBG multi- promote and to projects development infrastructure integrating to approaches sectoral disaster planning, land use development, institutions/governance, risk management, and infrastructure components, social in urban investing Importantly, investment. of amounts significant provides resilience sectors. in multiple co-benefits climate Strategy Urban WBG T B the World areas, in urban end extreme communities, build sustainable by prosperity shared and boost poverty inclusive, that is green, supporting urbanization and competitive. resilient, well-governed, actors to leverage and crowd-in essential essential and crowd-in leverage to actors to support investment and finance private investment in strengthening efforts government MDB the SDGs. achieving toward climates ddressing ddressing A 7 identified their identified 8 s, roup agenda. ank Group better integrate integrate better development projects. development climateinto urban urban climateinto aims to WBG on Urban ocus protecting development gains so that gains so development protecting into back fall not do residents urban and stresses; shocks facing after poverty and communities making poor households in a better and thus, resilient, more and poverty; out of move to position economies urban strengthening with equity. grow that can ommittee meeting, participants which participants meeting, ommittee Importantly, investing in urban in urban investing Importantly, is fully aligned with the resilience B World broader Development: Financing for Post-2015 Finance Development Multilateral Development During the April 18, 2015, C included all the major MDB inkages to the broader the broader to Linkages agenda Group Bank World Despite their geographic spread, the urban the urban spread, their geographic Despite challenges. common poor face is critical resilience in urban Investing 2030 by poverty ending extreme to Poverty- prosperity. shared and promoting as investments, resilience urban focused by: goals these promote 3, in Chapter discussed • • • 1.3 Increasing l Internationa F lience Resi extreme poverty and promoting shared shared and promoting poverty extreme these to solutions will require prosperity inextricably are solutions — and these challenges resilience. urban of the issue bound to institutions as being uniquely positioned to to as being uniquely positioned institutions as well and co-investors, as innovators serve public and private between brokers as honest

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 28 28 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 29 29 he following he following he prioritization is he prioritization o this end, two main target main target o this end, two increasingly become a become increasingly Resilience has Resilience the World Bank Group. the World priority theme in country in country theme priority at strategies partnership Substantially increasing the number of the number of increasing Substantially that adopt and human settlements cities and plans policies integrated and implement disaster (including holistic resilience towards 2020; by at all levels) risk management reduce significantly actions to Taking number of the deaths, the number of economic and the direct people affected with a disasters, by caused losses the poor and other on protecting focus situations. people in vulnerable inkages to global mandates global to Linkages has mandates global recent of A series priority as top resilience urban propelled – from practitioners development amongst T the global. to the local amongst consensus of growing a reflection organizations, civil society national governments, and organizations international donors, up ramp on the need to sector the private resilience urban in strengthening efforts T world. the developing across global mandates reflect this increased this increased reflect mandates global resilience: on urban placed importance Development Nations Sustainable United 2016-2030). (SDGs, Goals “make to world on the 11 calls SDG No. and resilient safe, inclusive, cities T sustainable.” been identified: have action items • • Nations the United are these to Related UN SDG 1.5, particularly Goals, Development the poor of “build the resilience which aims to and reduce situations in vulnerable and those climate to and vulnerability their exposure economic, and other events extreme related ome of ome of o this ountry ountry A C PFs) prepared prepared CPFs) he general opportunities opportunities he general roup, and this is reflected in and this is reflected ank Group, low-income communities and housing; communities low-income and analytics; strategy urban and financing; governance management, city and and services; infrastructure sustainable risk management. and disaster resilience and expanding DRM tools Strengthening cities fast-growing for solutions financial urbanization, rapid of in the context change; and climate population growth to sector with the private Working in risk financing and gaps address risk to transfer to enabling countries of the intermediation through markets and transactions; risk management to community with the humanitarian Working needs. pressing the most of some address 17 round (Fiscal Year 2015 – 2017). T – 2017). 2015 Year (Fiscal A17 round end, an assessment of climate and disaster and disaster climate of end, an assessment ID included in all new has been risks ( Frameworks Partnership during this period, ensuring that resilience during this period, ensuring that resilience – including projects is embedded in sectoral S development. on urban focused those Resilience has increasingly become a priority a priority become has increasingly Resilience at strategies partnership theme in country B the World Key thematic areas of work include: work of thematic areas Key • • • • • on Report Progress Bank Group World Risk Management Disaster Mainstreaming Operations Bank Group in World recent in the most and investments policies ID from range areas project innovative the more social post-disaster to systems warning early risk financing as disaster as well nets safety T and insurance. disaster for further mainstreaming identified include: operations in project risk management • • • genda ustainable and ustainable roup and is fully ank Group genda to be adopted at the be adopted genda to OP21 that curbing climate change climate OP21 that curbing onference envisages cities that cities envisages onference ew Urban A Urban he New increasing is one of resilience urban of he issue dialogue on climate risk serving as the main as the main serving risk climate dialogue on more disasters; natural from losses of driver related are losses disaster of percent than 75 It was 2016). (Hoeppe weather extreme to C at concluded efforts funding adaptation and efficiently agenda. the resilience to be essential would 2016) III, October (Habitat Agenda Urban New T III C Habitat risk reduction disaster and implement ”adopt build vulnerability, reduce and management, and natural to and responsiveness resilience mitigation and and foster man-made hazards, (UN Habitat change” climate to adaptation the Quito of pillars the three One of 2016). A Urban the New Plan for Implementation S “Environmentally is entitled for, and calls Development” Urban Resilient development, spatial urban alia, resilient inter reduction and building design, infrastructure of use proactive hazards, to vulnerability of and climate approaches, risk-based in cities. adaptation T B the World for urgency the of objectives aligned with the development Investment community. development broader huge implications will have now decisions taken and in the future trajectories development for from cities in preventing critical will prove development unsustainable into being locked increasingly to or being exposed pathways, and stresses. shocks urban and frequent intense resilience will explore we chapter, In the next poor and the the urban for as a priority home. call they and dynamic cities growing onference onference roup ank Group endai, 14-18 March March endai, 14-18 S endai Framework calls calls endai Framework his is part of the wider his is part of he S ). T o this end, the Framework calls calls o this end, the Framework A onference of Parties, participants participants Parties, of onference ations World C Nations World United hird ction (HF huge implications huge implications into unsustainable unsustainable into taken now will have will have now taken in the trajectories Investment decisions decisions Investment for development development for will prove and future development pathways. development critical in preventing in preventing critical locked being from cities t the T for efforts to reduce exposure and vulnerability and vulnerability exposure reduce to efforts for unplanned and while identifying in general, of underlying drivers as key urbanization rapid risk. T disaster and risk considerations hazard integrating for cycle, development the urban of in all stages multilateral by made including the investments programs. assistance development and bilateral financial international the framework, Within B such as the World institutions in investments increasing to committed and resilience, risk management disaster incorporate to working while systematically operations. its risk into and climate disaster Change Conference Nations Climate United 2015) December (COP21, the Parties of During the C areas that urban role the key emphasized and in adapting in mitigating emissions play, T change. climate to social and environmental shocks and disasters” and disasters” shocks and environmental social resilient “build to which seeks and UN SDG 9, and sustainable inclusive promote infrastructure, innovation.” and foster industrialization Disaster for Framework Sendai – 2030) (2015 Risk Reduction A generated, was framework global a new 2015), Framework Hyogo the to successor the as serving A for on Disaster Risk Reduction ( Risk Reduction on Disaster

TheThe World World Bank Bank | | Investing Investing in in Urban Urban Resilience Resilience

Investing in Urban Resilience 30 30 30 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 31 31 Why Urban Resilience Resilience Urban Why Poor the Urban to Matters

Chapter

02 The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 3232 3232 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 33 33 he hus, the urbanized the urbanized hus, rises Crises Urban for lliance A Global internally displaced persons and persons displaced internally 10 oth groups are often excluded from from excluded often are groups oth Estimates suggest suggest Estimates there are at least at least are there refugees living in refugees more than 10 million more displaced persons and persons displaced 19 million internally 19 million internally urban areas globally. areas urban more than 10 million refugees living in urban living in urban 10 million refugees than more ( globally areas B 2016). reasons. a number of for services, to access refugees status, official without example, For and difficulties language barriers face frequently with live Many incomes. adequate in earning in poor themselves populations that are host T services. housing without adequate quality can receive may support refugees targeted In addition, hosts. with these tensions create by caused and outflows influxes extraordinary - disaster or natural war example – for crises the absorption and stretch cities reshape can urban and existing communities host of capacity T and infrastructure. services poor the urban part of people become displaced challenges. resilience the same of many or face

Displaced people and refugees are increasingly increasingly are and refugees people Displaced facing already cities Many in cities. settling basic of the delivery to challenges systemic have also now and welfare security, services, refugees populations of growing and often large contend to displaced the internally and/or at least are there suggest with. Estimates 19 million frica frica outh aharan A aharan S arruthers arruthers atterthwaite 2016). atterthwaite S ation inard et al, 2013). al, et Linard al. 2011; et eto S ase studies for particular cities or for or for cities particular for studies ase he expansion of informal settlements can create create can settlements informal of he expansion sia and nearly 60 percent in sub- 60 percent Asia and nearly 2016b). (UN-Habitat, in slums. live patterns of sprawl to which it is difficult and which it is difficult to sprawl of patterns infrastructure risk-reducing extend to expensive C al 2001, et (Hardoy and services are residents urban number of A growing that show statistics UN-Habitat living in slums. population the urban of the percentage globally in most steadily living in slums has decreased with the exception 2014, 1990 to from regions have the numbers Asia. However, Western of than 880 million urban more Globally, increased. in slums in 2014, live to estimated were residents Regionally, 2000. since 11 percent of an increase in S residents city of percent than 30 more Informal settlements around city peripheries peripheries city around settlements Informal expanding. are areas non-urbanized and other T new create also It may 2003). and Ulfarsson, – for a city for risks and health environmental in watersheds settlements informal instance, within these both flooding to exposure increase downstream. areas urban and for settlements changing to contribute also can Urbanization within the patterns and temperature precipitation ( region city nations’ urban populations provide evidence evidence populations provide urban nations’ of or aspects poverty urban of that the scale that the proportion or has increased, poverty For has grown. the population in poverty of that the suggests documentation example, population with water urban the of proportion 1990 from increase did not premises piped to went – and in fact ICEF 2015) N (WHO/U 2015 to nations ( in many backwards lobally, there there Globally, urban. is increasingly Poverty people of in the number an increase is both and an increase in cities who live poverty facing poor in urban the world’s of in the proportion C areas. Increasing The 2.1 z Urbani y of Povert hey may may hey his is exacerbated by the by his is exacerbated Most of the people in informal the people in informal of Most eyond the daily challenges associated with associated challenges the daily eyond ow or irregular incomes usually preclude usually preclude incomes irregular or ow imited economic base economic Limited B prevents base economic limited a poverty, ways: in several stability achieving from families One in housing. invest to ability Limited is a limit income a low having of consequence on housing. Incomes be spent on what can can that they some for low be so in fact may at all – as with no accommodation afford or construction living on pavements those of a lack Similarly, sleeping on site. workers either dwellers urban amongst security tenure land without title or on land not occupying hinder efforts be sub-divided can to permitted individuals disincentivize even and sometimes renovation. for financing securing from housing finance. for credit to access Lack of L housing in improved invest to credit to access T conditions. In housing market. the informal of monetization scope some was there cities, in many the past, land illegally occupy to groups low-income for city – but in most pay not did which they for within develop settlements informal contexts, them illegal of some land markets, monetized which land developers of and in many operate. and landlords and shocks against assets of No “buffer” stresses. to means or other lack assets settlements T or stresses. with shocks cope before assistance to access less have also either because a disaster, and support after or because ‘legal’ residents, not are they about or otherwise informed not are they also Most services. social navigate able to rent they because tenure, insecure face the of residents or because accommodation, – or both. eviction at risk from are settlement ome y hese risks risks hese ome of the major the ome of b aced That actors s F be so low for some some for low be so living on pavements or living on pavements that they can afford afford can that they Incomes may in fact in fact may Incomes no accommodation no accommodation construction workers workers construction sleeping on site. at all – as with those at all – as with those individuals’ and households’ limited limited and households’ individuals’ and including inadequate base economic assets; and lack of incomes irregular often livelihoods, with dangerous contexts local sites; and house housing, fuel use, in infrastructure or deficiencies lack of often in provision (deficits and services population growth); rapid by exacerbated that help governance local in inadequacies in infrastructure the deficiencies explain and that include provision and service and groups income low for voice lack of accountability; government local risk reduction, disaster to attention lack of at risk as among those including knowledge risk, cope reduce to how to with it and adapt Poor rban the U 2.2 F the Increase Risk

growing literature points to a range of factors factors of a range to points literature A growing low for risks these or exacerbate that create S dwellers. urban income range from eviction to natural disaster. S disaster. natural to eviction from range frequent are some everyday, or constant are but rarely present are and some seasonal) (e.g. major consequences. have may the urban of the vulnerability increasing factors to: relate that risk, include those poor to • • • • • The urban poor face risks to health, income income health, to risks poor face urban The in sudden increases and to and livelihoods T in income. or decreases costs

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 34 34 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 3535 3535 11 he connection between high risk and low high risk and low between he connection housing conditions. housing located in or close in or close located social severe imposing Many poor Many Low or irregular incomes incomes or irregular Low to risk-prone areas, areas, risk-prone to neighborhoods are neighborhoods are credit to invest in improved improved in invest to credit populations. on urban usually preclude access to to access preclude usually and economic costs costs and economic where the rents for accommodation are lower lower are accommodation for the rents where for flooding, at risk from most areas in those Allen and (Jabeen, in Dhaka Korail example hand, the better- other On the 2010). Johnson cost can be seen within informal settlements settlements within informal be seen can cost Hazards vary from location to location and are and are location to location from vary Hazards a city, around and Within to anticipate. difficult settlements informal for levels and risk types T vary. governments find it difficult to manage land use to manage land find it difficult governments sprawl either urban avoid on the periphery to zones; in hazardous development or informal relating land management integrated moreover, their jurisdiction. be outside may watersheds to aker aker hese sites are are sites hese hese include: hese hese impacts are inadequately inadequately are impacts hese ocation B 2012, Silva Hope 2009, 2001, atterthwaite One of the greatest challenges facing facing challenges the greatest One of hazards of range poor is the the urban they where the areas to endemic that are T settle. to forced are L in disasters for cities planning by A lack of T areas. these and disproportionately authorities by planned for shocks to Exposure poor. the urban by felt urban part to in large is linked and stresses urban and exclusionary land pressures City al. 2015). et (Hallegatte, planning systems Many Many areas. or disaster-prone Dangerous to in or close located poor neighborhoods are and social severe imposing areas, risk-prone One populations. on urban costs economic of cities widely diverse amid the feature common groups low-income is that world, the developing settlements in informal concentrated often are Mitlin and (Hardoy, sites on dangerous S because risks these accept Residents 2012). of because here, is cheaper accommodation or opportunities income-earning to access a settlement leave to want do not they because in. T invested have that they risks greater facing that are usually ones also al. 2014). et change (Revi, climate from hey hey alaam with a sea alaam with a sea he cost of protecting protecting of he cost wasa, et al. 2014). One al. 2014). et wasa, onversely, good local good local onversely, osts like this may be unaffordable be unaffordable this may like osts limate change often exacerbates exacerbates often change Climate 12 ome threats do not come in the form of of in the form come do not ome threats external shocks or a lack of resources: T resources: or a lack of shocks external cities, of the governments to internal are as just pose can they Yet and avoidable. resilience. achieving to a threat severe poor exacerbates government local Poor C delivery. service Well- risks. of the impact reduces governance risk reducing for that provide cities governed in their all those to and services infrastructure Inadequacies in local in local Inadequacies governance S Poor infrastructure now threatens a broader a broader threatens now infrastructure Poor cities, many For society. of cross-section service and in infrastructure deficiencies so are management and in land-use provision of sections large threaten that risks severe the of the functioning and even non-poor groups whole city. local risks and may also result in implications in implications result also and may risks local (and health – the economy, the whole city for security, food infrastructure, control), disease (L supplies and water combination a where flooding is urban example change climate risk: increased have factors of urbanization rainfall; intense in more results the soil; of capacity the retention reduces and runoff water increases channelizing rivers management waste and poor solid velocity; impede drainage. maintenance and lack of infrastructure. improving of cost The can risks these to solutions Infrastructure-based T expensive. be extremely the 100km coastline of Dar es S Dar es of the 100km coastline (J. example million, for be USD 270 would wall C Kithiia 2011). in and national economies the local both to develop to It is imperative countries. poorer governance and responsive accountable capacity risk through reduce that can systems than planning, rather building and land use projects. construction in large investing his T his atterthwaite 2016b). 2016b). atterthwaite S Basic infrastructure Basic infrastructure to hazards or reduce or reduce hazards to risk significantly. risk significantly. physical and social and social physical decrease exposure exposure decrease substantially substantially and services can can and services asic infrastructure and services can can and services asic infrastructure can in part be attributed to rapid urban growth, growth, urban rapid to in part be attributed can local of than the ability as change is faster infrastructure supply adequate to authorities the population. to services and basic infrastructure Inadequate and services poor communities by felt effects adverse The infrastructure sufficient to without access However, and well-documented. is obvious range a greater poses poor infrastructure obstacles – and puts cities to threats of resilience. achieving of in the way infrastructure. decline in adequate A global B or hazards to exposure decrease substantially T risk significantly. and social physical reduce that provision is evidence there Yet protection. has actually public services essential these of 1990 and between decades: declined in recent population with the urban of the proportion 2015, declined in 21 piped on premises water to access ( example for countries, located informal settlements are often at risk often are settlements informal located development. planned due to eviction from need to risk and vulnerability of Assessments contexts, physical of the diversity recognize and of capacities, and community resident of risk. for appetites individual or household and drainage sanitation piped water, includes grid electricity, roads, all-weather networks, waste solid services, emergency care, health and social law, of policing/rule schools, collection,

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 36 36 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 37 37 - 13 here is a is here yers 2011, Romero, Qin and Romero, 2011, yers A infrastructure and infrastructure Resilience for the urban the urban for Resilience Deficiencies in Deficiencies the provision of of the provision poor is tied to the quality the quality poor is tied to of government capacity capacity government of characteristics of of characteristics failure. or governance urban poverty as well as well poverty urban services are both both are services and accountability. as of local government government local as of of the wareness 2.3 A Growing A lience esi R Urban Linkages y Povert In the climate change community, the IPCC’s the IPCC’s change community, In the climate included a much more Fifth Assessment including issues, urban of coverage detailed nuanced a more It demonstrated poverty. urban in which ways the many of understanding exacerbate and discrimination poverty urban the reflected and impacts, climate to vulnerability vulnerability: of on the drivers literature growing and gender inequalities, cultural socioeconomic, education services, health to access as in limited ( and labor markets Disaster risk management is increasingly increasingly is risk management Disaster resilience the lack of address to geared population the low-income among much of T hazards. to and settlements disaster lack of the on how literature growing urban to contributes risk management on databases the global – and how poverty small- the this due to much of miss disasters the hazards. of nature localized and scale his hese hese learly, Clearly, 2015). yelén atterthwaite 2013). 2013). atterthwaite S obias and A atterthwaite 2016). In this sense, In this sense, 2016). atterthwaite angladesh, for example, political political example, for angladesh, atterthwaite 2013) and from small and small and from 2013) atterthwaite artlett and S artlett

systems are not accountable to – and thus do not – and thus do not to accountable not are systems informal of – the inhabitants the needs of serve Hulme and Jahan 2013). (Roy, settlements In Khulna in B jurisdiction have much lower levels of ill-health ill-health of levels lower much have jurisdiction (Mitlin risks everyday from death and premature and S T ations 2009). N (United disasters large cities thus have the institutional and governance and governance the institutional thus have cities disaster to their resources extend to capacity change adaptation and climate risk reduction agendas mesh these how assess – and to (B unaccountable is often government city Weak Resilience the poor. especially residents, to of the quality poor is tied to the urban for T and accountability. capacity government with, work to, listen to begins with a willingness who lack resilience those and serve support, and Weak and livelihoods. in their homes governments and municipal city unaccountable infrastructure basic the lack of to contribute and land markets of the dynamics and services, the poor (Pelling land by safe to access lack of T Merlinsky, 2003, which include at play also are factors other issues and ethnic cultural economy, political Globally, in the legal system. and distortions and lack the capacity governments urban most in infrastructure deficits address to resources these extend to unwilling are many and services; ( settlements informal to deficiencies in the provision of infrastructure of infrastructure in the provision deficiencies urban of characteristics both are and services or government local as of as well poverty public participation A lack of failure. governance as non-inclusive as well in planning processes further impede can frameworks regulatory and infrastructure urban of the provision communities. low-income to delivery service he below diagram diagram he below anner, et al. 2015) T al. 2015) et anner, The links between poverty and risk reduction reduction and risk poverty between links The on urban in the literature found also are theme in the literature One important poverty. low-income give can assets has been how with cope to capacity a greater households 2007). Moser 2006, (Moser or shocks stresses initially on economic focused study this While and it risks, disaster include to it came shocks, adaptation change climate into well integrated evidence body of a growing Similarly, concerns. infrastructure that risk reducing demonstrates poverty, only alleviate not can and services individual and household improve but also neighborhood and city and for resilience (T resilience. this much of from messages the key summarizes the “triple of with their description literature resilience: from poverty urban dividend” for he o-benefits can be classified as economic, social economic, as can be classified o-benefits his is of particular relevance since an increasing share of damages damages of share an increasing since relevance particular his is of risk and effective background that reduced is evidence here Dividend 1: saving lives and avoiding losses losses and avoiding lives Dividend 1: saving T and in low areas urban growing in rapidly sustained are and losses countries. middle income potential Dividend 2: unlocking economic T build up savings, to poor households allow risk management their livelihoods. and improve assets in productive invest co-benefits development Dividend 3: generating C either be deliberately and may and environmental, or incidental. DRM investments into designed infrastructure and infrastructure that risk reducing reducing that risk demonstrates evidence services can not only only not can services alleviate poverty, but poverty, alleviate individual improve also resilience and household neighborhood and for resilience. and city body of A growing ssessment also described how the framework the framework how described also Assessment wider to should be related resilience urban of including the increasing challenges, sustainability Chelleri, also (see in cities inequalities social how it discussed In particular, al. 2015). et reducing by settlements informal upgrading housing and improving deficits service basic exposure, hazard reduce could conditions vulnerable. the poor and of especially T 2015). Mérida and Gamboa 2012, Dickinson IENCE: The Triple Dividend Triple LIENCE: The Y and RESI POVERT URBAN development and environmental social economic, + Wider resilience ILIENCE = Disaster RES ILIENCE = Dividend 1 + Dividend 2 + Dividend 3 RES

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 3838 3838 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 39 39

Prosperity Poverty 80 70 Disasters 60 Health his rises to 32.2 32.2 to his rises 50 he primary climate- hock Waves model suggests model suggests he Shock Waves 40 Labour productivity keep down risk. down keep less the capacity of of capacity the less For cities, the larger the larger cities, For the increase in the increase the temperatures, even comprehensive comprehensive even adaptation to to adaptation 30 Ignoring urban resilience can reverse reverse can resilience Ignoring urban millions back sending gains by development T poverty. into climate and low prosperity widespread with that, residents urban 8.5 million additional impacts, 2030 line by the poverty below will move T change. climate of because . 2.1) Figure (see impacts million with high climate poverty, widespread of conditions under However, the will slip below residents million urban 20.3 impacts, climate with low line even poverty with poverty to a return million face while 77.3 T impacts. higher climate are poverty urban increased of drivers related that which mean prices, higher agricultural on food, spend more to have groups low-income diseases. diarrheal of incidence and increased due to poverty in urban the increase of Most Agriculture 20 10 he other he other 0 hock Waves: report, Shock Waves: flagship ank’s Low climate impact climate Low Low climate impact climate Low High climate impact High climate High climate impact High climate Number of urban dwellers living below the USD 1.25/ living below dwellers urban Number of FIGURE 2.1: scenarios and climate economic line under different poverty day limate Change on Climate of Managing the Impacts T al. 2015). et (Hallegatte, Poverty change: a climate of is the extent determinant lead C would 3-4° of increase temperature global weather extreme and severe frequent more to declining rise, level sea rapid more events, disease and a greater productivity agricultural C. In addition, for 1.5° of than an increase burden in temperatures, the increase the larger cities, comprehensive even of the capacity the less al. 2014). et risk (Revi, down keep to adaptation The main determinant of future levels of of levels future of main determinant The and middle-income in low- income-poverty of and rate will be the type countries to access Universal development. economic in inequality, and a reduction services basic and accountable inclusive underpinned by much deliver would structures, governance than will reduction poverty of rates greater patterns business-as-usual under be achieved conditions wider It is these development. of resilience residents’ urban that will determine of than the scale rather change, climate to in as shown in adaptation, investments discrete B the World Urban 2.4 mpacts y I Povert

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T into slip back to likely residents urban of change. climate of the impacts due to poverty valuable provide does the model Nonetheless, and distribution drivers the likely into insights and economic under different poverty urban of A conditions. climate consequences economic the current consider not (just poverty on urban impacts disaster of climate by brought the additional impact T change). B World the importance seen have we In this chapter It has poor. the urban for resilience city of of the effects mitigate to both the potential the gains protect and to stresses, and shocks poverty of made in the alleviation already the growing seen also have We globally. on the institutions by placed importance we chapter, agenda. In the next resilience and public finance of role the shall examine in driving this agenda. investment private Sub-Saharan Africa Sub-Saharan

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S East Asia & Pacific & Asia East below the poverty line the poverty below impacts, while 77.3 while 77.3 impacts, to poverty with higher with poverty to residents will slip residents million face a return a return million face even with low climate climate with low even climate impacts. climate 20.3 million urban urban million 20.3 Distribution of urban dwellers living below the living below dwellers urban of FIGURE 2.2: Distribution regions geographic line in different poverty USD 1.25/day climate change will be concentrated in S will be concentrated change climate Asia and sub- resilience inadequate of impact actual The be much higher. to is likely poverty on urban of the extent the model underestimates First, poverty using a now-outdated by poverty urban of the severity indicate to USD 1.25/day line of accepted the currently While impacts. climate may at USD 1.90/day) (now line poverty global poverty urban areas, rural for be appropriate inadequate terms: in real be understood needs to secure drinking water, safe reliable, to access housing etc. and permanent durable tenure, 5 0 15 -5 10 35 25 30 20 45 40

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 4040 4040 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 41 41 Financing Needs and Needs Financing Obstacles Overcoming

Chapter

03 The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 4242 4242 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 43 43 ank report on Prioritizing ank report investment is critical is critical investment Enhancing infrastructure infrastructure Enhancing as goals twin Bank’s to achieving the World the World achieving to cities. of the resilience financing are imperative. imperative. financing are well as to increasing increasing as to well will, institutional will, institutional capacity, and access to to and access capacity, An alignment of political political of An alignment roup and other institutions. Finally, we we Finally, institutions. and other ank Group his difference suggests the importance the importance suggests his difference these challenges have been met by the successful successful the by met been have challenges these the World by provided instruments various of use B where studies case city-specific some examine of or a blend investment private public finance, cities make to used been successfully have both investors. to a return while offering resilient more that invests a society to returns The well-established. are in infrastructure potential increase can investments Infrastructure capital promoting through growth economic A one productivity. and higher accumulation on infrastructure in spending increase percent points 1.5 percentage of an average to leads In countries years. four over in GDP growth and well planned is well infrastructure where — 2.6 greater even was the return executed, (IMF 2014). years four over points percentage T in ensuring that government of the role of possible the biggest delivers infrastructure explored dividend. As was and social economic B World in a 2014 the Impact, Development Enhance to Projects even are of infrastructure benefits potential impacts and cross-sectoral when network larger Investments for. accounted are and synergies may services urban resilient of in a platform than the greater returns economic produce as infrastructure individual investments, sum of increase change land usage, may investments change settlement levels, productivity values. property and enhance patterns, hus financing ut consensus exists exists ut consensus ank 2014a), there is also is also there ank 2014a), frica, infrastructure spending infrastructure frica, he sustainability of this growth is this growth of he sustainability ank’s twin goals as well as to as to as well goals twin ank’s aharan A aharan S In this chapter we explore some of the of some explore we In this chapter and public finance both for opportunities resilience. in funding urban investment private and constraints of look at the limitations also We where examples consider and these, of each upon needs (including capital and operations and and operations needs (including capital percent 37 a high of from range maintenance) 10 to countries low-income GDP in fragile of (Briceño- countries middle-income in percent B al, 2008). Garmendia et infrastructure increase the need to regarding increase that would and activities investment areas that urban Given cities. of the resilience such as economic shocks to vulnerable more are public health upheaval, social downturns, to infrastructure of or the failure epidemics, B demand (World meet viable identifying of urgency the about consensus investment. needs for these address to strategies Shocks and stresses threaten the prosperity the prosperity threaten and stresses Shocks and middle- low- In many cities. by generated economic of hubs are cities countries, income national their fueling innovation, and jobs growth, T economies. and shocks unplanned-for from at risk, however, economic, long-term that erode ongoing stresses sustainability. and social environmental and development of driver is a key Infrastructure health improving jobs, creating progress, social Enhancing trade. and facilitating outcomes, achieving to is critical investment infrastructure B the World by gap vary the infrastructure of Estimates example, For country. and by sector by city, in sub- increasing the resilience of cities. T cities. of the resilience increasing for and prepare to adapt to infrastructure urban as one has emerged and stresses shocks these development. in challenges urgent the most of will, institutional political of An alignment imperative financing are to and access capacity, to choices difficult sometimes make to in order financial, precious allocate and to align policies activities towards resources human and political resilience. long-term cities’ that promote s uch hese types of projects projects of types hese uch investments can attract attract can uch investments systems (that primarily benefit very low-income very low-income benefit primarily (that systems programs. or recidivism-prevention areas) market-rate below that generate Investments flows cash project such projects, For returns. or high predictable be sufficiently not might on the based capital, private attract enough to MDB In this space, risks. of perception market’s and political certain help lower can or donors investment, private catalyze to financial risks or risk insurance political through example for is blended approach nother A guarantees. credit to crowd seeks which finance, or concessional shifting the investment by capital in private reducing the risk with and profile risk-return S terms. favorable and capital flexible public transport. include might investments market-viable that generate Investments S return. of rates project if a investment additional, private and the regulatory has been well-prepared and is stable context and institutional T investor-friendly. or donor government by be catalyzed can or the use preparation, of project financing these of Examples guarantees. targeted of include investments resilience urban of types treatment a water construct to concessions citywide lighting street upgrade or to plant (LEDs). diodes light-emitting greener to financing of these, the first of In the case and governments by largely met needs are investments of In the case partners. development be may they returns, below-market generating financing, public and private a blend of by met represented opportunities while the investment for be attractive may modality the third by met. are conditions if certain investors private hese hese he global he global 2015). FLA 2015). CC he marginal he marginal higher productivity. investments can increase increase can investments Infrastructure Infrastructure potential economic economic potential growth through promoting promoting through growth capital accumulation and accumulation capital Needs Financing 3.1 Cities Making for ient l Resi More investments do not generate market-viable market-viable generate do not investments either by investment direct and require returns, however, Indirectly, donors. or governments support social help to can such investments on economic impact a positive and have stability Examples treasuries. and government growth control include flood public goods might of Investments in resilience deliver varying varying deliver in resilience Investments can investments Resilience return. of levels categories: three split into be broadly T goods. public pure that are Investments need for urban infrastructure investment investment infrastructure urban need for of trillion per year, - 5.4 USD 4.5 to amounts percent 9 – 27 of premium which an estimated low- this infrastructure make to is required ( resilient and climate emissions of this demand is from proportion A significant And this is only world. in the developing cities needed to the investment of a partial estimate as this number focuses ‘resilient’ cities make T infrastructure. only on urban through resilience enhancing urban of costs urban robust more in public health, investments and other measures, anti-terrorism systems, and environmental social of building blocks be estimated. to yet have resilience Significant additional financing is required required additional financing is Significant resilient, more infrastructure urban make to T world. in the developing especially

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 44 44 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 45 45 hese range range hese t the basic level, many cities in the cities many level, t the basic increasing activities. increasing than “access to global global to than “access in resilience- invest to Cities in the developing the developing in Cities world need much more need much more world capital markets” in order in order markets” capital and creditworthiness of city governments is as governments city of and creditworthiness local of lack thereof) (or as the ability critical to needed revenue generate to governments enabling more A programs. existing maintain identifying to conducive is also environment that will help investments and preparing financing. T sector private leverage environment national regulatory their from which may creditworthiness, city-specific to adaptation climate for credit to limit access generally. investment, or infrastructure with the planning and struggle cities Many investments. resilience of implementation are cities by faced Among the challenges inadequate capability, planning urban insufficient processes, and planning assessment project local and enforcement implementation and limited A capacity. term engage in long do not world developing and lack capital infrastructure planning for lack data may cities Further, plans. investment subject and/ are which they to about risks incorporate to how understand to or capacity planning and capital their urban into such data take to fail may Cities strategies. investment mitigation and adaptation climate account into investment and strategic land use in urban goals be unaware may decision-makers and local plans, as to so projects among prioritize to how of of and what types risk reduction maximize further their resilience- to undertake to projects growth. long-term and promote goals related lack an understanding may Or the government or specific policy evaluate to about how considering are decisions they investment in the future. consequences of a range against he he private he private ank can offer solutions to help cities and help cities to solutions offer ank can ack of government capacity; capacity; government Lack of confidence; sector private Lack of and preparation; in project Challenges Financing challenges he solution to each of these obstacles varies by by varies obstacles these of each to he solution sector can help make markets more efficient, efficient, more markets help make can sector the regulatory provide but governments in which capacity and institutional structure the solvency function. In addition, markets Despite increasing interest from private private from interest increasing Despite investment in infrastructure investors multiple obstacles are there opportunities, in participation. Cities sector private to than need much more world the developing to in order markets” capital global to “access as they activities, in resilience-increasing invest T factors. other by constrained are ack of government capacity capacity government Lack of sector and depends, of course, on whether the on whether course, of depends, and sector attract could (i.e., is market-viable investment requiring public good (i.e., a capital), private it or whether or donor finance) government T return. of rate a below-market generates • • • T the where of examples give below sections B World challenges. these of each meet investors private Obstacles to unlocking significant public and/ public significant unlocking to Obstacles resilience in urban investment or private categories: broad within four fall • to es l Obstac 3.2 Urban Financing lience Resi upport for the C for dvisory Facility Facility dvisory uild Resilience,” whose seed seed whose uild Resilience,” echnical assistance provided through through provided assistance echnical ong term borrowing from commercial commercial from borrowing ong term technical advisory support advisory technical help to governments to can provide in-depth in-depth provide can service delivery options. delivery service assess and compare and compare assess The World Bank Group Bank Group World The these types of investments. Further, the public the Further, investments. of types these multiple balance to struggles inevitably sector infrastructure, priorities; policy competing get often can benefits, longer-term which offers needs. constituent urgent more of in favor cut urban in large-scale interference political Also, misallocation cause can projects infrastructure in although governments Further, resources. of assumed traditionally have markets emerging infrastructure of the scale the burden, of most investment private attracting makes required L critical. the where is appropriate markets capital or bank will provide or water) roads (e.g., infrastructure year 30+ a over e.g., for a long period, benefits capital private access to Other ways horizon. partnerships. public-private include through also can developers to charged fees Impact upgrades for pay needed funds to provide infrastructure. existing of or expansion providing for tool One established Solutions: subnational to assistance technical grant-funded and regulatory address to governments be preventing that might obstacles institutional is the in infrastructure investment private A Infrastructure Public Private (PPIAF). T in preparing support governments PPIAF can investments. infrastructure and structuring trust created is a recently resource Another S to Facility Development fund, “Project B to Infrastructure the by provided USD 10 million was funding of the IF by use for Foundation Rockefeller for infrastructure financing catalyzing of purpose economic, support increased that would projects resilience. environmental and/or social, he roup can support can ank Group his type of technical support technical of his type he World B he World roup maintains a global knowledge knowledge a global maintains ank Group incentivize cities to to cities incentivize in capacity improve (including hazard and (including hazard risk assessments) as risk assessments) investments. resilience well as better structuring structuring as better well project assessment assessment project can support and can and implementing and implementing Bank Group World The Solutions: T Solutions: in capacity improve to cities and incentivize and risk (including hazard assessment project structuring as better as well assessments) T investments. resilience and implementing World B World expertise as technical financial and base, in support cities to resources grant as well their planning into resilience incorporating for builds capacity strategy, and investment and leverages projects, financeable preparing with and has worked assistance development help to world the around government many public into risk information them incorporate T investment. can help governments prioritize among capital among capital prioritize help governments can be would which and determine projects, public funds vis-à-vis funded by be to appropriate such as private sources, capital potential other or donors. banks development investors, in emerging infrastructure most Historically, with public funds, has been financed markets public goods and positive of the nature given such investments. by generated externalities property (e.g., sources revenue Existing and intergovernmental fees, user local taxes, to meet be sufficient to unlikely are transfers) the broader much less needs, the infrastructure Public municipalities. of needs, ‘resilience’ and, GDP ratios public debt-to- increased deficits, the public of capacity the low frequently, too spending has limited efficient deliver to sector to committed have governments the capital

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 46 46 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 47 47 uch his lack of certainty about future about future certainty his lack of roup can help to reduce both both reduce help to can ank Group help make markets more more markets help make institutional capacity in capacity institutional regulatory structure and structure regulatory need to provide the provide need to which markets function. which markets efficient, but governments but governments efficient, The private sector can can sector private The currency inconvertibility and inconvertibility currency restriction; transfer expropriation; and contract; of breach and civil disturbance. terrorism war, Policy uncertainty can limit investor interest. limit investor can uncertainty Policy countries and middle-income developing Many resilient for policies concrete developing still are T development. tariff – e.g., or subsidies policies regulatory deter — can delivery service to related structures and social In addition, political investors. private investors. private further dissuade can instability offered guarantees of types Different Solutions: B the World by investors. risk to of risk and perception the actual risk political provide can MIGA example, For investments sector private (PRI) for insurance with associated and manage the risk mitigate to adverse (e.g. environment political an uncertain S governments). actions – or inactions – by for climate stable a more help create tools access unlock better and hence, investments, include: covered Specific risks finance. to • • • • apital apital olombia, ank can help governments help governments ank can ome countries’ regulatory regulatory ome countries’ his tool provides data to local local to data provides his tool hrough engaging in an assessment engaging in an assessment hrough hese reports have been done as well been done as well have reports hese igeria in the past few few and Nigeria in the past Mexico gypt, to highlight challenges in specific sectors or sectors in specific challenges highlight to enforcement such as contract areas, policy tape. red of cost the or measuring years, the World B the World years, of on the ease and national governments to reforms and recommends doing business, indicator the of in each performance improve T areas. inflow controls, tax policies, labor policies, and labor policies, tax policies, controls, inflow build complexity can policies tariff inconsistent the attractiveness reduce and a transaction into S investment. of T Solutions: E in their business the differences understand within a single and enforcement regulations and group and within a comparator country obstacles address to opportunities identify sector private be impeding desired that may T investment. frameworks require international firms to partnerto firms international require frameworks example, for as co-financiers, investors with local uncertainty introduce add complexity, which can In other doing business. of cost and increase explicitly not may national regulations countries, engage in public to subnational entities allow be that can structures (PPP) partnership private and expertise. capital private leverage to used doing business,” of cost the “subnational of in C deployed methodology a proven National legal and regulatory systems can can systems National legal and regulatory C investors. sector private potential deter econd econd he S roup can provide in- provide can ank Group o he World B he World outh DPO), for example, supports the example, for SLSDPO), tate Development Policy Operation Operation Policy Development tate he team focuses on helping strengthen public on helping strengthen focuses he team but the local government has the authority over over has the authority government but the local government Or the national land use. and zoning over authority and budget hold policy may municipal housing, while social of provision ongoing for responsible are governments housing. public to infrastructure local of provision T Solutions: depth technical advisory support to governments governments support to advisory technical depth A number options. and compare help assess to in specialized including those teams, WBG of improve to with governments work governance, delivery. and service accountability transparency, T including the systems, management sector T public finances. of management agos S Lagos ( Program of in the implementation government state further increase to meant program a reform spending, in budgetary value-for-money fiscal maintain climate, the business improve and monitor, and properly sustainability, As such, it represents manage financial risks. programmatic of series a new of the start lending in Nigeria. policy development uccessful outcomes included: outcomes uccessful ridge over oll Bridge over edié T through investment investment through finance infrastructure. finance project financing, directly directly financing, project The World Bank can, Bank can, World The example, for d’Ivoire, Cote war In post-civil covering in insurance USD 145 is providing MIGA private the project’s and all of investor the equity the development as FMO, as well lenders sector Specific Netherlands. of the institution finance include covered investments infrastructure B the Henri Konan initially Lagoon, which was Ebrié Abidjan’s civil war. of the outbreak following shelved in in investing face cities Obstacles overlap largely infrastructure ‘resilient’ with respect face cities with the obstacles cases, In many generally. infrastructure to uncommon A not structural. are such barriers division is a misaligned example, for challenge, and powers functions management urban of government. of and levels institutions across level a national or provincial example, For and the power have may entity government investments, transit urban make to resources An enhanced AA bond (Fitch), a three-notch upgrade from from upgrade a three-notch AA bond (Fitch), An enhanced A. of rating standalone Johannesburg’s endorsements market demonstrating 2.3 times, oversubscribed was bond issue The enhancement. with the credit and the structure the issuer both of time and the over the spread tightening for demand allowed investor Strong profile. service debt the City’s has improved the bond issue of long tenor frica for municipal debt that requires a long tenor, with the possibility of application in other cities in other application of the possibility with a long tenor, that requires debt municipal for frica apital finance was required for capex expenditures planned by the city and its utilities - including water water - including utilities and its by the city planned expenditures capex for required was finance apital he city of Johannesburg had large capital expenditure plans to address service backlogs, deferred maintenance maintenance deferred backlogs, service address plans to expenditure capital had large Johannesburg of he city as a benchmark in S fundraising of class a new has developed fundraising capital of his type (Dirie, 2005) (Dirie, guarantee partial credit with a bond for – Financing utilities 3.1: Box T bank a traditional for large too needs were borrowing Johannesburg’s and population growth. payments, the life to match of debt the maturity extend and sources financing diversify to needed and the city loan, scenario. financing up with an alternative come had to they circumstances, these Given assets. of C T debt. high cost existing some retiring - and for distribution and electricity streets, urban programs, by backed bond that was treasury a central developed Johannesburg of the City required, the capital raise S on major assets. pledge clause with a negative revenues, aggregate • • • T A

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 4848 4848 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 49 49 his often means that means his often benefit from sharing more more sharing from benefit information and in more and in more information Governments, investors, investors, Governments, structured ways. ways. structured and operators alike would would alike and operators licensing regimes, establish competition law law competition establish regimes, licensing competition of enforcement of and mechanisms risk-informed implementing as as well regimes urban For and building regulations. land use needs government in particular, infrastructure, regulator, as a competent serve be able to to and investor-readiness, for a project prepare to project portion of fund some to cases in many process. and preparation conceptualization with issues grapple still countries Developing perceived framework, such as poor governance uncertainties political and corruption, rampant perception investors’ increases which – all of While returns. commensurate risk and of on one-off be addressed can obstacles these enhancements, credit such as through bases, addressed, are issues the core and until unless flow. freely will not investments sector private – much less countries developing many Also, have yet — do not subnational governments soliciting for processes investor-friendly robust, projects. large and/ or procuring interest investor track to benchmarks data seek investors Large a challenge beyond assets, of performance institutional For address. to cities of the scope in long- investing funds, wealth and sovereign is a strategic assets illiquid infrastructure term, investors decision. Ideally, asset-allocation on benchmarks the decision based make would the of view a robust take them to that allow investments. these of performance expected it is prices, market of the feedback Without expectations reasonable formulate to difficult of records as track however, risk and return, of T limited. are such projects proxies are used as benchmarks. In general, In general, as benchmarks. used are proxies in the habit aren’t businesses and governments , the inherent diversity diversity , the inherent 15 ogically, government government ogically, hese include the complexities in the investment in the investment complexities include the hese Several factors contribute to a low percentage percentage a low to contribute factors Several investors. institutional by investment of T decision making process Apart from the issues of government government of the issues Apart from regulatory and a threatening capacity which factors several are there environment, from sector the private discourage can Among projects. in infrastructure investing and data benchmarking of is the lack these ‘resilience’. measuring for standards global private Lack of confidence sector One way forward is to generate generate is to forward One way Solutions: substantially to required the conditions in resilient investment private increase L infrastructure. urban and intricacies of large assets, country-specific country-specific assets, large of and intricacies well-developed of lack regulations, financial equation, lack return risk projects, financeable and the lack of benchmarking data, robust of factor Another fund managers. of experience funds to for long time it takes is the relatively versus years 3.5 in infrastructure: capital deploy example for assets, estate real for 2 years is that problem Another 2016). (Invesco, unobservable often are resilience from benefits is no additional there capture: to and difficult each time a for firms or households flow cash damages. in disastrous result not does storm which public goods, on pure should focus in the absence unaddressed remain would investment. or philanthropic government of government, from resources financial However, and assistance development international on be concentrated should also MDB sources and capacity institutional the local generating facilitate to necessary conditions regulatory in resilience-increasing investment private market-viable that do generate investments a government requires often Doing so returns. and operating start-up effective maintain uxembourg uxembourg his standard is his standard launched uxFLAG greement on climate on climate greement tandard, jointly developed developed jointly tandard, eptember 2016, for example, example, for 2016, eptember uRe® S uRe® apital, Finance in Motion, L in Motion, Finance apital, ast C ast There are compelling reasons that many that many reasons compelling are There the out of get do not projects resilience the high governments, For gate. starting be can preparation project of costs upfront such projects. to barrier an insurmountable municipal amongst capacity a lack of Similarly, Challenges in project in project Challenges preparation Microfinance and Development Fund and and Development Microfinance they announced since – have Finance Nevastar using their products labelling of will be seeking T standard. certification this new transparent more a create to effort a practice investors and provide financial environment finance in climate trust with the necessary commitments to and respond investments, A the Paris made through that has been put system Another change. is the S forth investment and the French GIB Foundation by defining of the purpose for Natixis, bank the for principles resilience and sustainability infrastructure. of and insurance rating credit partners over the past several years to agree agree to years several the past over partners finance, on climate principles on common of categories resilience-related and other or systems concepts A number of investment. global for as contenders been put forth have In S standards. L the fund labelling agency identify to label, intended Finance a Climate change mitigation and/ funds financing climate – fund managers Four measures. or adaption E here here asically, asically, D he OEC uch data can can uch data ank, 2012). eMX) reflects reflects GeMX) ank Gemloc roup has been ank Group ond Index ( ond Index merging Markets Markets Emerging he Global he World B he World he index tracks 360 bonds from 24 24 bonds from 360 tracks he index urrency B urrency ocal C ocal of sharing best practices or benchmarks with or benchmarks practices sharing best of assets, infrastructure to with respect other each wrong. what went of the details much less alike and operators investors, Governments, information sharing more from benefit would governments Many ways. structured and in more be a valuable can investors that recognize about which example, — for ideas of source returns economic the best have would projects T investment. private attract to or how notes that a prerequisite task for increasing increasing for task that a prerequisite notes in instruments market-based of participation industry- establish be to would infrastructure, definition consensus standards, wide reporting and benchmarking ‘resilience,’ for and metrics B 2014). D, EC (O projects comparable of private investors have knowledge gaps which gaps knowledge have investors private the investment of impede their understanding ‘frontier’ unfamiliar, in often opportunities performance demand for Investors’ markets. is a challenge that governments monitoring address. been able to yet not have T Solutions: L local market emerging of the performance countries from debt denominated currency B the World for qualifying program. T program. and objective accurate providing countries, of the performance assess to benchmarks S and investments. bond markets for financing in private help crowd to be used B (World investments resilience global accepted, no universally Currently, what makes of metrics for exist standards T or “resilient.” “sustainable” a project that among investors consensus is general could standards common of such promulgation capital. of amounts unlock significant potentially T Solutions: and multiple formal engaged, through of types with various groups, working informal and donor bank, development sector, private

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 50 50 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 51 51 ank, 2016d). supported C supported roup can provide provide can ank Group artagena, the IF artagena, lobal Infrastructure Facility Facility Infrastructure Global ank’s he World B he World chools which provides financing to financing chools which provides he B roup can provide direct financing to financing direct provide can ank Group afer S afer IF) seeks to enable mobilization of private private of enable mobilization to GIF) seeks require cities to have access to resources to fund to resources to access have to cities require and monitoring. implementation design, program pay to afford cannot governments city Many lack the and may studies, feasibility costly for identify to capacity and institutional experience projects. investment-ready for case” a “business T Solutions: feasibility for support financing grant and technical example, for investments: resilience across studies C of the Port for unlock USD to studies in preparatory USD 200K overall for financing sector 10 million in private including in 2011, the port starting of rehabilitation drainage such as improved adaptations climate T systems. ( for capital investor and institutional sector the good” investments, “public For infrastructure. B World Program such as the Global support programs, S for of a risk profile and structural the hazard assess on investment and advises schools of portfolio more schools make to strategies and intervention B (World hazards natural to resilient he uch “public good” investments uch “public good” investments Most initiatives that promote social social promote that initiatives Most and national governments to conduct long-term long-term conduct to and national governments plans) investment capital prepare planning (e.g. and risk considerations hazard incorporate or to further and preparation design in project only not of sustainability challenge the long-term T the investment. of but also itself, the project from cities limit many constraints Budgetary in the preliminary even in resilience, investing stages. programs, literacy – community-driven resilience or crime-reduction nutrition campaigns generate – do not example for initiatives, offer if they even returns, economic immediate over the benefits and fiscal social measurable S long-term. ability to maintain services and rebound following following and rebound services maintain to ability the prolonged withstand or to event a disaster often are and stresses shocks of impacts of the initial planning and design by determined long-term accurate Similarly, such infrastructure. and maintenance operations planning for budget by determined is largely such infrastructure of hazard of the full range of the incorporation in the project and risk considerations stage. preparation he ambia systemic solution to this issue would would issue this to solution systemic A roup, together with a number of of with a number together ank Group, Solutions: a formula-based, to shift to governments be for T system. transfer stable more presumably B World that assistance technical provides donors other such a system. implement to help cities can subnational governments even However, taxes through revenue raise to empowered to support funding lack sufficient and fees Over needs. delivery ongoing public service countries of a number years, twenty the last and responsibilities the powers increased have at revenues however, government; local of with pace kept not have level the municipal of requirements expenditure the increased (UN Habitat, responsibilities of devolution in the developing countries In most 2009). are revenues own-source municipal world, and user taxes on property based generally such taxes lucrative on more — and not fees tax Property and fuel taxes. sales, as income, own-source of source the largest is typically of amount and the low cities, for revenues combination be due to may collected revenue real local of value including: low factors, of rates tax property low very market; estate the actual over control little have often (cities annually updated a complete, lack of rates); enforcement weak and/or registry; property with cities In addition, even collections. of he results he results he design of of he design his can make it difficult to it difficult make his can hese include constraints upon include constraints hese olar, a program designed to make it easier for governments governments for it easier make to designed a program olar, he winning bids, for 6.02 cents per kilowatt hour and 7.84 hour and 7.84 per kilowatt cents 6.02 for he winning bids, hey in turn struggle to provide meaningful meaningful provide to struggle in turn hey Subnational and city governments in the governments and city Subnational finance raise to struggle world developing a number for projects infrastructural for T reasons. of capacity. and institutional their regulatory T and investments, sector private for incentives which businesses support the smaller local to projects. in their resilience participate could on rely markets in emerging cities Most the majority for transfers intergovernmental N (U budgets. and capital their operating of T 2009) Habitat, are transfers when such fiscal manage a budget T or insufficient. either unreliable at which and the level schemes such transfer vary governments depend on national cities subject can schemes but some country, by with flows, highly unpredictable to their cities where (e.g., transfers ad hoc or discretionary on negotiated are transfers of the amounts this is that of An effect an annual basis). and are accurately budget to struggle cities when deciding on and risk-averse reactive long-term for resources of the deployment preparation, planning or project resilience will that national funding clear it’s unless ongoing support. for be made available Financing challenges Financing ank’s PPP advisory team recently supported an effort to add to an effort supported recently team PPP advisory ank’s caling S caling frica, and among the lowest recorded anywhere in the world. anywhere recorded and among the lowest frica, he World B he World of the first auction, which took place in May 2016, surpassed the most the most 2016, surpassed in May took place auction, which the first of energy renewable leading the world’s of with seven expectations, optimistic large-scale first build Zambia’s to the opportunity for competing developers T plants. solar to power solar for prices the lowest represented hour, per kilowatt cents in A date Public-private partnership to enhance energy resilience in Z resilience energy enhance to partnership Public-private 3.1: Box T has access of the population only one fifth where in Zambia, capacity power hydropower crippled existing have drought of years and two electricity to signed Zambia In this context, crisis. a national electricity causing facilities, try S up to tendering competitive through cost and at low quickly power solar procure to T and risk products. products, financing, insurance and pre-set

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 52 52 52 52 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 53 53 53 53 tate Owned tate . 3.1) ox he inability to cluster cluster to he inability s) and S SMEs) s) are often unable to benefit benefit unable to often are OEs) S interested in creating in creating interested development. infrastructure to unlock financing for unlock financing to enabling regulatory enabling regulatory and environments can support governments support governments can in order constraints addressing capacity capacity addressing The World Bank Group Bank Group World The reform state-owned infrastructure and/or partner and/or infrastructure state-owned reform to access improve to sector with the private electricity, such as education, public services B (see and sanitation healthcare, in funding and support stands Limited SMEs and entrepreneurs local of the way increase to serve concepts business whose engagement sector Private resilience. urban has resilient more assets on making private than the rather opportunistic been generally to lead actions aimed to strategic of result T change. transformational Small and and impact. learning limits projects ( Medium Enterprises ( Enterprises for financing increase to initiatives global from a variety for adaptation and climate resilience financing of including the scale reasons, of on financing and lack information arrangements, ank olombia ank’s Public ank’s he World B he World frica), one solution one solution frica), frica and C frica he World B he World outh A outh A his enables governments to invest in resilience- invest to governments his enables build their capacity in expanding sources of of sources in expanding build their capacity by including infrastructure for urban financing is solution financing. Another increment tax and compare identify help governments to revenue- delivering models for business various Governments, public services. generating realize need to markets, in emerging particularly cash-generating from possible, when value, portfolios estate real such as owned assets, T and infrastructure. has deep (PPP) team Partnerships Private in making supporting governments experience to and how whether good decisions regarding increasing initiatives directly or to invest in invest or to directly initiatives increasing private attract to environment enabling local T specific projects. to investors In countries where fiscal fiscal where In countries Solutions: (e.g., occurred already has decentralization S Philippines, Brazil, in enhancing governments support local is to revenue. own-source generate to their capacity T functional property registries underutilize underutilize registries functional property revenue. raising mechanisms for alternative roup can support governments interested interested support governments can Group environments enabling regulatory in creating to in order constraints capacity and addressing development. for infrastructure unlock financing large helped several recently example, for PPIAF, in S municipalities he he he value he value he Fund raised raised he Fund he recent launch he recent ut to address the need the address ut to orporation) as anchor orporation) hese constraints add to add to constraints hese . B 3.1) ox echnical assistance programs programs assistance echnical in a broad range of infrastructure infrastructure of range C in a broad roup and other development development and other ank Group merica. T and North America. urope building resilience. hazards is essential to to is essential hazards innovative business business innovative models that help to that help to models practices and business and business practices address ongoing stresses stresses ongoing address natural as as well The development of of development The ingapore Singapore as known C and GIC (previously already invests approximately USD 1 billion approximately invests C already ast, E ast, proposition of this Fund is to offer institutional institutional offer is to this Fund of proposition lobal Infrastructure Fund will Fund Infrastructure Global ’s the WBG of for available equity of the amount increase mandate Fund’s the infrastructure: urban resilient investments and equity-related equity make is to alongside IF T countries. in developing sectors 2013, financing in late of a USD 1.2 billion round USD 1 billion, receiving of target its exceeding with 11 investors, from commitments capital IF C Investment Government sovereign and including nine other investors, Asia, the Middle from and pension fund investors E IF T annually in infrastructure. T investment. sector private attract to amongst insolvency of challenge common to an inability to due governments municipal existing to meet revenue sufficient generate programs obligations and maintain-ongoing with the risk associated further increase lending. T municipal to contribute preparation, project of the cost risk, and excessive of perception investors’ returns. below-market or exacerbate generate T Solutions: can Initiative Creditworthiness such as the City can as creditworthiness, help support cities’ B (see guarantees projects, infrastructure for equity’ ‘sponsor for B the World T gap. fill the equity help to also can banks onference, 2015). 2015). onference, World hailand (UN World ank is currently ank is currently he Fund objective would would objective he Fund he World B he World allesteros and Domingo, 2015). Yet SMEs Yet 2015). Domingo, and allesteros national economies of of national economies disaster-prone regions regions disaster-prone contributors to the to contributors across the world. across SMEs are vital vital are SMEs onference on Disaster Risk C on Disaster onference he development of innovative business practices practices business innovative of development he s, in particular, often have have often in particular, SMEs, opportunities. and are strategies, coping to access limited with industry non-compliant be to likely more a to lead which can regulations, norms and risk management adopt to capacity lowered (B tools the national economies to contributors vital are For the world. across regions disaster-prone of all SMEs amongst of the proportion example, in percent be as high as 90 can enterprises and T Japan like countries T Solutions: a “Global creating of the feasibility evaluating a market- Fund,” Infrastructure Resilience with a core Fund private-public hybrid based between multipliers strong on generating focus and investment the public sector by investment T investors. private by in resilience capital private crowd-in be to and SME projects/funds. infrastructure or creditworthiness lack the funds cities Many C T address models that help to and business is hazards as natural as well ongoing stresses in example, For building resilience. to essential describes founder whose LiveOlive, Indonesia builds startup,” management it as a “money income and low among middle resilience financial shocks with financial helping them cope women, guided personal through cycles and business this like enterprises Small-scale investments. mentoring capital, kinds of one need different their growth of stages and support at different what funds and institutional – although below provide. to be interested would investors

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 54 54 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 55 55 C. roup can can ank Group he currency mismatch has mismatch he currency o increase resources available available resources o increase he World B he World ut few cities in emerging markets are able to able to are markets in emerging cities ut few been, for some projects, a source of instability instability of a source projects, some been, for of in the renegotiation resulted and has even markets, “frontier” many For contracts. long-term available. commercially not are swaps currency T Solutions: in the example, For such swaps. provide the Asian financial crisis below, study case a number of for in major issues resulted IF by provided projects power private finance access to struggle Cities T resilience. for borrow could cities in resilience, investment for markets. or capital banks commercial from B borrow, to lacking the legal authority do so, or guarantee a sovereign of independent Poor the national government. from approval where, constraint is another creditworthiness sub-national of is a history there cases, in some in emerging Cities defaults. government try often borrow legally able to that are markets sector banking the local through capital raise to for unsuitable typically are terms loan whose markets capital While infrastructure. funding new credit that can address such risks as well. such risks address can that credit in in infrastructure investment Foreign to exposure involve can markets emerging can financing risk. 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Spain. of SA antander o address these perceptions perceptions these o address ustainable T ustainable anco S anco hese risks might include regulatory include regulatory might risks hese T antander’s loan to the S to loan antander’s his guarantee provided specific coverage of coverage specific provided his guarantee guarantees can help to help to can guarantees MIGA Solutions: MIGA in 2014, example, For risks. these address USD for a non-honoring guarantee issued B million to 361 S The type and scope of public sector public sector of and scope type The an and deliver design to required engagement opens categories project infrastructure urban by mitigation is sought which for risks of investors. and lack of instability, political uncertainty, are that services Urban capability. institutional such as monopolies, under natural provided are treatment, and wastewater or water roads and oversight government greater subject to intervention political to susceptible therefore of control the outside is clearly which risk of T investors. private in have need to would risk, a government of established framework, regulatory a clear place procedures, procurement and transparent engage and to capacity and the technical sector. with the private effectively transact T investors a cost-efficient platform to make to make platform a cost-efficient investors in markets investments infrastructure direct costs and transaction entry to barriers where deterrent. be a significant can investors for ão Paulo S the São Paulo different issue can themselves governments of lines or revolving guarantees of types that enabled the state to invest in transport in transport invest to that enabled the state A activities. and related infrastructure ank ank ank to ank to ank funds. ank funds. D 2014). EC /O AC A (D he project, as designed, as designed, he project, hina’s Minsheng MinshengB China’s to loan 100 million projects, efficiency energy for lending develop China achieve of the Government help to energy to with respect goals ambitious its B Minsheng this initiative, As part of use. D 500 million equivalent of its its of D 500 million equivalent US committed efficiency energy finance to resources own more Another projects. energy and renewable is a partial risk sharing facility example recent World B by the created efficiency, energy for a pilot India in 2015, of and the Government various address is to objective whose operation efficient impede energy that barriers market coverage by providing and financing, practices commercial by perceived the risks reduce to in financing demand-side energy institutions T projects. efficiency sector unlock private to has the potential World B of ratio to 1 financing at 3 l Potentia The 3.3 Private for Finance when combined even alone, Public investment the of the scale Given is inadequate. with ODA, infrastructure urban funding gap for estimated increasing investments, resilience and other all of investment will require resilience urban MDB lending and kinds: public and private, and foreign domestic assistance, development will investing Resilience investment. direct each of use possible the best make need to including the USD 164 dollar, public sector annual OD billion in net he olombia, Jordan, olombia, Jordan, ank approved a USD ank approved anzania, C anzania, reditworthiness Creditworthiness he City urkey, among other countries, countries, among other urkey, roup has sponsored a number has sponsored ank Group Increasing urban resilience resilience urban Increasing will require investment investment will require private, MDB lending and private, development assistance, assistance, development and foreign domestic investment. direct of all kinds: public and of strengthening financial performance; strengthening an enabling legal and regulatory, developing for framework and policy institutional sub-national borrowing; responsible the demand side of improving sound, by developing financing and projects; climate-smart by financing of side the ‘supply’ improving investors. sector engaging with private Rwanda, T Rwanda, on the cities 300 assisting of a goal towards and management fiscal improved to path solution of category Another creditworthiness. capital local strengthen this challenge is to to in facilities up local set to and/or markets with the purpose banks with local partnership for financing to access cities’ increasing of T investment. infrastructure “resilient” Since the program’s launch several years years launch several the program’s Since has worked initiative the Creditworthiness ago, convened authorities local than 260 with more in T at academies B World unlock to initiatives comparable successful of model, most financing with this sector private 2010, In efficiency. energy to related notably B the World example, for offer an alternative source of cheaper and cheaper of source an alternative offer of the 20 percent than less finance, longer-term have countries in developing cities 500 largest percent 4 only and markets capital local to access markets. capital international to access have T Solutions: assistance technical provides Initiative to seeking cities to and training by: creditworthiness their enhance • • • •

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 56 56 TheInvestThe World World Banking Bank i n| U |Investing r Investingban Resin Urbanin Urbanili Resilienceence Resilience 57 57 57 here is large funding large is here limate Policy Initiative 2015). 2015). Initiative Policy Climate quity for infrastructure has come primarily has come infrastructure for quity ong-term-investors such as pension funds such as pension ong-term-investors potential among traditional as well as non- as well among traditional potential infrastructure. urban for investors traditional L expressed have companies and insurance to allocation their increase to willingness nd USD 106 A 2014). D, EC (O class this asset in the form capital, institutional trillion of is funds, and sovereign-wealth pension of (McKinsey, investment potential for available percent 6.4 only On the public side, 2016). 2014 in public financial flows registered of to this amounted adaptation; climate to went while countries billion in developing USD 22.5 in adaptation investment needs for estimated 2015 billion between USD 140-300 from range ( and 2030 into flowing capital private most date, To debt into has gone projects infrastructure in the which has made sense instruments, (e.g., flows cash of predictability of context 2015b). (McKinsey roads) toll tariffs, negotiated E which – unlike funds,” “infrastructure from funds - specialize wealth pension or sovereign capital debt While investments. of types in these equity sponsor plentiful, has been comparably on report McKinsey A 2015 scarce. is more that Brazil example, for notes, infrastructure in but a shortfall debt a surplus of will have used during operational phases (when projects projects (when phases operational during used lower). are and risks flows cash generate can be abundant to seems capital Investment urban resilient towards is flowing little yet in projects particularly to infrastructure, T countries. the poorest ecause project project ecause ome projects may may ome projects he quality of the security the security of he quality hey try to protect their investment their investment protect try to hey he importance of each channel varies varies channel each of he importance hese characteristics imply that, arguably, the arguably, imply that, characteristics hese quity (sponsor, vendor, private investor) investor) private vendor, (sponsor, quity and bank loans are more common during the common more are loans and bank risks (when a project of phase construction commonly more while bonds are higher), are package is closely linked to the effectiveness the effectiveness to linked is closely package mitigation. B risk the project’s of sponsor of the form need additional support—in risk bring credit guarantees—to or government financing. private attract that can a level to E through collateral and contracts, known as known and contracts, collateral through that their help ensure to package, the security T will be repaid. loans The largest share of project finance typically typically finance project of share largest The by which is usually provided debt, of consists managing over control with no direct creditors T the project. and cash flows on the project’s relies financing that support and arrangements the contractual the to identify essential it is flows, those ensure structure and to in a project available security the risks alleviate to package the security S participants. by perceived Private financing can flow directly into into directly can flow financing Private in infrastructure urban resilience-increasing by or indirectly equity; project of the form a service-providing to or projects lending to T company. of depending on the degree countries, across market, capital domestic the of development and investor sector, framework, regulatory characteristics several However, sophistication. other from assets infrastructure distinguish upfront significant capital: fixed of types politics, (e.g. risks high initial costs; construction cost construction unexpected changes, policy and timeframe demand uncertainty); overruns, from decoupled be to tend (which revenues of is required). investment period when capital T infrastructure urban for pay to viable way most of approach finance a project is through bond financing, such as long-term long-term institutional and financing from issuances funds). wealth sovereign (e.g., investors hose projects – 16 in projects hose ank to help cities fund help cities ank to roup and its partners partners and its ank Group defined as having annual per capita income income capita annual per as having defined infrastructure only 9 had private under USD 1,215, T in 2015. closed projects and transport on energy, focused were – total of investments representing & sanitation, water USD In contrast, billion in value. only USD 4.6 investment infrastructure 111.6 billion in private markets all emerging across committed was Participation the Private to according in 2015, in 2015. released database in Infrastructure of at some looked have we In this chapter, public both finance, securing to the obstacles projects. resilience urban for and private, in ways the specific of some explored have We B which the World In obstacles. these overcome to sought have the strategies will detail we chapter, the next the B by developed and the services, agendas, their resilience it provides. and instruments programs overeign overeign S ccording to to ccording countries, A countries, hese include illiquid hese he past several years years several he past his deepens the pool of his deepens the pool of ank blog about public private ank blog about public private rise a steady seen have in infrastructure as in infrastructure own right. own its in class an asset The past several years years several past The equity financing for infrastructure in coming in for infrastructure financing equity a devaluing indebtedness, public due to years balance corporate and highly leveraged currency, viable urban potentially In this context, sheets. secure be unable to will projects infrastructure to attract equity enough isn’t financing if there transaction. the complete to required the debt low- global the current given Nevertheless, investors institutional forecasts, growth strong indicated funds have and sovereign of universe a broader in considering interest T opportunities. investment emerging in ‘frontier’ assets infrastructure poor enhancing otherwise of as a means markets T 2016). (Invesco returns as an in infrastructure rise a steady seen have funds As sovereign right. own in its class asset are funding, they new receive to continued have their investments of view a long-term taking for time horizons their average increasing by their positions, diversifying and by investing their allocation increasing including through T infrastructure. to ( infrastructure for available capital A 2016). Institute, Fund Wealth funds, sovereign of annual survey 2016 Invesco’s investor sovereign the average example, for from grew infrastructure to exposure portfolio – a in 2015 2.8 percent to in 2012 percent 1.4 percent. 25 of rate annual growth compound the by effort An ongoing, concerted is sector and private community development bankable a pipeline of create to needed in order particularly markets, in emerging projects in a July As noted countries. in the poorest B World 2016 among the 66 ID partnerships,

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 58 58 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 59 59 Opportunities: How the the How Opportunities: Add Can Group Bank World Resilience Urban to Value

Chapter

04 The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 6060 6060 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 61 61 roup can can ank Group ? he World B he World his requires addressing institutional institutional addressing his requires — What helping prepare resilience resilience helping prepare investments, and investments, Multilateral development development Multilateral the gap in needed finance finance the gap in needed resilient up scale to finance institutions such institutions finance private capital to bridge bridge to capital private interventions. project can play a critical role in in role a critical play can as the World Bank Group Bank Group World as the leveraging anchoring and Are trategies 4.1 S Help to in Place lience Resi Secure Funding and by city vary financing needs While First, threads. common some are there sector, conducive a more create needed to are reforms in urban investment pro-poor for climate T resilience. for capacity reform, regulatory bottlenecks, resilience and better engagement, public-private financing and dedicated planning. Increased help to overcome some of the obstacles to to the obstacles of some overcome help to previous in the identified finance resilience advisory financial instruments, through chapter that helps assistance and technical services, and effective sound risk and facilitates lowers confidence investor strengthen to design project investments. resilience urban in potential has achieved a number of successes in the successes a number of has achieved the level seen, have as we world, developing with such investments risk associated of In financiers. private high for too is often lack and national entities addition, municipal projects and structure prepare to the capacity them appealing make as to so scale on a large T capital. private to ank ank 2014a). roup ank Group his is in line with the World B his is in line with the World roup provides financing as well financing as provides ank Group roup can help to mobilize private capital, capital, private mobilize help to can ank Group his is particularly relevant in the context of of in the context relevant his is particularly decentralized countries where subnational where countries decentralized often are spending levels current governments’ for urban the demand to address sufficient not costs alone the ‘additional’ let public services, and in adaptation with investing associated finance development Multilateral resilience. B such as the World institutions as technical and advisory services to city and city to services and advisory as technical in urban in investing interested clients country the chapter, in the previous As seen resilience. financing is massive. resilience urban need for T in helping prepare role a critical play can and and anchoring investments, resilience bridge the gap to capital private leveraging project resilient up scale to in needed finance T interventions. Scaling-up urban resilience investments — investments resilience urban Scaling-up — is particularly infrastructureinvestments Group’s Bank the World achieving to critical and poverty extreme ending of goals twin the Given prosperity. shared promoting gains at risk and the increasing development the systems, urban of and complexity growth B World funds, wealth sovereign investors, institutional that the billions in ensure and donor aid to in the can crowd finance development available to meet required trillions in additional finance any for consideration A critical needs. these risk and between balance financier is the private opportunity. investment on a potential return infrastructure privately-financed purely While roup commitment to stay at the forefront of of at the forefront stay to commitment Group financial and to deliver field and this growing supports that proactively assistance technical in addition to as a whole, resilience city B (World specific threats addressing a great represents commitment This interested investors private for opportunity Here, projects. resilience in financing urban in which the World the ways will highlight we B ank A and 2013). In C 2013). . example) for 4.2 ox roup, this can this can ank Group, ecause of the accident’s magnitude magnitude the accident’s of ecause roup’s extensive experience in experience extensive ank Group’s own area. B area. own s’ climate related investments leverage leverage investments related climate s’ leverage three dollars dollars three leverage finance. in private ank was ank was the MDBs’ climate climate the MDBs’ related investments investments related Studies show that show Studies every dollar spent by by dollar spent every ape T MDB (IF finance in private dollars three B the World of the case dollar it as every times be multiplied several in five results sales bond through mobilizes IBRD/ID to lending. In relation of dollars has dollar in guarantees every guarantees, MIGA commercial of dollars than four in more resulted In addition, investments. toward mobilized capital B the World (PPPs) partnerships public private facilitating private increasing of way as an effective serves risk-sharing innovative through investment output integrating by example, For offering. B the World contracting, performance-based available that financing is ensure has helped to in addition to and maintenance operations for B (see expenditures capital uch programs are are uch programs he World B he World ased on this program, the the on this program, ased ank ank he World B he World he third initiative was to establish a standard a standard establish to was initiative he third . above) 4.1 ox he first included a rapid design of a rationing of a rapid design included a he first roup can provide provide can ank Group echnical assistance programs programs assistance echnical own to reduce the peak energy energy peak the reduce to own ape T tudies show that every dollar spent by the by dollar spent that every show tudies supported a demand management program program a demand management supported in C B grid (see on the utility load the and of MDBs, of unique capabilities The provide can in particular, Group Bank World support and technical resources the catalytic private and crowd-in leverage to required sovereign investors, institutional capital, funds and donor aid. T wealth offered by the World B the World by offered at help enable such investments support to and household community, country, the city, B the World in 2006, example, For levels. capacities, in-house of combination Group’s a can play resources and financial knowledge and gap, the ‘matching’ in reducing role critical for flowing capital the private start thereby infrastructure. urban and resilient sustainable S for operations and maintenance is needed to to is needed and maintenance operations for and sustain infrastructure existing rehabilitate focus is a need to there Also, investments. new access increase to on demand-side investments for especially and services, infrastructure to T poor. the urban ank program was a simplified demand management program that enabled that enabled program a simplified demand management was ank program KOM) supported a program to reduce energy demand and avoided a catastrophic black out. black a catastrophic and avoided demand energy reduce to a program supported KOM) (ES company he power ank supported three fronts of work. T work. of fronts three ank supported he B his model has also been adapted to improve energy efficiency in a number of other countries. other of in a number efficiency energy improve to been adapted his model has also

he second aspect of the B aspect of he second KOM faced a second blackout, this time at a national scale. T this time at a national scale. blackout, a second faced KOM ES later, years wo KOM can use to manage their power manage their power to use can KOM that ES capacity peak MW of manage 700 able to has been concept T system. offer model where the utility could “buy” energy efficiency and load reduction resources at an agreed at an agreed resources reduction and load efficiency “buy” energy could the utility model where offer B space. efficiency in the energy a tariff to As such this is equivalent price. large customers to reduce/displace off-peak consumption. T consumption. off-peak reduce/displace to customers large T and limited generator reserves or transmission capacity to meet this shortfall, the area would have suffered from several months of of months several from suffered have would the area this shortfall, meet to capacity or transmission reserves generator and limited T black outs. chronic T capacity peak and energy both was that the system crisis given the power help mitigate to requested T constrained. helped the country this program In Brazil in 2001. in Brazil instituted a program mirrors that program S outs. black or brown without any nine months over energy of percent 20 save side. on the demand rationing manage power to interventions utility effective the most one of considered In late 2006, an accident resulted in the shutdown of the Koeberg nuclear plant in the C plant nuclear the Koeberg of in the shutdown resulted an accident 2006, In late South Africa Project on Utility Driven Energy Efficiency / SmartGrid Efficiency Energy Driven on Utility Project Africa South 4.1: Box

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 62 62 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 63 63 he he project he project his also applies for non- for applies his also ahia road network. network. ahia road he project’s second second he project’s ank provided through through ank provided his component includes investments investments includes his component increasing private private increasing in urban investment — in infrastructure resilience — particularly resilience simultaneous requires action on multiple fronts. The challenge of of challenge The sectors can provide infrastructure, only the infrastructure, provide can sectors T it. plan and regulate can public sector in investment private increasing challenge of — in infrastructure — particularly resilience urban action on multiple fronts, simultaneous requires planning and regulatory including: strengthening to capacity as institutional as well capacities investor- a pipeline with well-prepared, create infrastructure and encouraging projects; ready investment private channel (to class as an asset T infrastructure). into resilience, in urban investments infrastructure and reduce public health protect to measures e.g. poor to the urban of the vulnerability shocks. socio-economic ank y including road rehabilitation and maintenance in the and maintenance rehabilitation y including road C n.d.) limate lended Climate C B ven if the incremental the incremental if ven uch investments also support the long term resilience of the B of resilience support the long term also uch investments contracts under CREMA contracts works and maintenance ahia, along with rehabilitation dditional investments under the project included feeder road improvements, improved drainage drainage improved improvements, road included feeder under the project dditional investments Further, concessional finance offered and offered finance concessional Further, fund the can Group Bank the World enabled by with ‘resilience associated costs incremental investments infrastructure proofing’ and project assistance technical and for E work. preparation the IF example, For 2016b) products of a range is developing team Finance wider facilitate which will help to and structures financing. (IF concessional to access increasing of the goal achieving Ultimately, the addressing will require resilience urban and infrastructure the basic of causes root the public and private both While gaps. other costs associated with making infrastructure with making infrastructure associated costs change and disaster climate to resilient more cost- and are later in savings result impacts costs upfront financing higher overall, efficient case is a strong and there be challenging, may in be made concessional this funding to for vulnerable and more poorest, the smallest, facilitate will be to element A key countries. climate external a menu of to access country and partners work with and instruments finance and rationalize simplify, harmonize, to donors B (World finance. concessional to access systems, etc. S etc. systems, in performance-based contracts for the maintenance and rehabilitation of 1685 km of identified identified km of 1685 of and rehabilitation the maintenance for contracts in performance-based in B roadways resilience the long-term supported better investment the project contract, performance-based be would roads that the rehabilitated ensure made to was As such the provision the roadways. of and floods. rainfall such as excess events climate intensity high of the impact withstand able to A of an additional 685 km of highways. B highways. km of an additional 685 of In an effort to explore new options for road financing, the World B the financing, road for options new explore to In an effort Performance-based Contracting in Brazil Contracting Performance-based 4.2: Box performance-based contracts for rehabilitation and road maintenance (cReMa). T (cReMa). maintenance and road rehabilitation for contracts performance-based and management, financing road for strengthening support institutional to components of consists T and safety. accessibility road support sustainable to investments and other and rehabilitation highway state performance-based a supported investment component T and safety. sustainability improved for ‘program’ maintenance ank is he B ank has worked with cities on a with cities ank has worked international experience experience international risk management and risk management with development policies, policies, with development projects and programs in and programs projects climate change adaptation. climate on several decades of of decades on several urban development, disaster disaster development, urban The Bank is able to draw draw Bank is able to The his has involved billions of dollars of lending of dollars billions of his has involved and breadth Depth experience of a global maintains Group Bank World The and experience demonstrated base, knowledge high delivering of record track a successful T solutions. resilience urban quality international of decades on several draw able to projects policies, with development experience disaster development, in urban and programs change adaptation. and climate risk management T cities of dialogue in thousands as policy as well sectors. of a range across working and towns the B Specifically, build to and programs policies, projects, of range through resilience, and physical fiscal, social, adaptation and climate risk management disaster building, capacity finance municipal approaches, and risk sensitive infrastructure, urban resilient as hedging and as well planning, land-use Africa and Pacific Asia East Asia and Central Europe and Caribbean Latin America and North America Middle East Asia South an . he primary ending Commitment by Region FY12–16 Region by Commitment ending ox 4.3 ox frica (27.2 (27.2 frica ? 26% ast Asia and ast 37% he majority of urban urban of he majority 12% his is a conservative estimate of of estimate his is a conservative 18% 4% 3% ietnam is summarized in B is summarized ietnam omparative ho, V ho, Where Does 4.2 have the WBG C Advantages of portfolio An emerging resilience in urban projects Group Bank the World – 2016, 2012 From projects resilience urban core 79 financed USD 9.72 to amounting countries, in 41 period, investment this five-year billion. Over USD 1.8 billion per over a little averaged . T 4.1) Figure (see year was in E financing resilience the Pacific (38.3 percent) and A percent) (38.3 the Pacific . T 4.2 in Figure as depicted percent), lending instrument has been investment has been investment lending instrument which includes percent), (87 finance project recovery, emergency specific investments, and programs, adaptable assistance, technical for lending. Program financial intermediary while 7 percent, represented (PforR) Results 6 lending represented policy development A full portfolio. resilience the urban of percent be found lending can resilience urban core of list T 2. in Annex urban non-core financing, as an additional 151 with financing supported were projects resilience An period. billion during the same USD 17.5 of in C project resilience an urban of example T L Resilience Urban 4.1: FIGURE

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 64 64 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 6565 6565 he urban he urban 84% ecretariat ecretariat ank 2010). T ank 2010). S tate 6% wiss S wiss 11% trength diagnostic. trength Investment Project Finance (IPF) Finance Project Investment (PforR) Results for Program (DPL) Loan Policy Development increased demand from from demand increased grown in response to to in response grown client countries. client urban development has development urban The Bank’s portfolio in portfolio Bank’s The 12–16 FY Instrument by Commitment ending than 7000 cities and towns across more than more across and towns cities than 7000 B (World countries 130 in shelter, has included investments portfolio municipal slum upgrades, infrastructure, development, economic local development, environmental management, disaster natural ietnam and the S ietnam he project consists of components for: for: components of consists he project 84% reasury. reasury. ank T 6% ank’s portfolio in portfolio ank’s 11% he B ank has financed ank has financed , and World B C, and World Investment Project Finance (IPF) Finance Project Investment (PforR) Results for Program (DPL) Loan Policy Development S a City of the results by informed and was ffairs, L Resilience Urban 4.2: FIGURE s the fourth largest city city largest As the fourth percent. five of rate and an annual growth million 1.25 approximately ho has a population of flood risk management and environmental sanitation; sanitation; and environmental flood risk management compact, and encourage connectivity intra-city increase to development corridor urban and development; urban and public transport-oriented pedestrian mixed-use, management, and information planning, data spatial to improve instruments social protection financial and events. flood to nets safety of and the responsiveness execution, budget post-disaster conomic A conomic ietnam and the largest in the Mekong Delta, it is an engine of economic growth for the region and has a strategic role role and has a strategic the region for growth economic it is an engine of Delta, in the Mekong and the largest ietnam eyond their development effects, these these effects, their development eyond an T overnment of V of Government by the is co-financed he investment for E for Source: (World Bank 2016f) (World Source: • • • T D 322 million investment has been prepared to address the economic, social, environmental environmental social, the economic, address to has been prepared million investment A USD 322 manage to of the City capacity the strengthening by resilience of and financial dimensions T on multiple fronts. other risks flood and in V sustainable to multiple threats it faces dynamically, is growing Although the City in the Delta. security food in promoting rapid urbanization. and land subsidence, rise, sea-level flooding, seasonal primarily by caused that are development C Can Tho Urban Development and Resilience Project and Resilience Development Urban Tho 4.3: Can BOX T Development: Urban initiatives have made a substantial contribution contribution made a substantial have initiatives on financing innovative knowledge the body of to generally. initiatives and multi-sectoral B in response has grown development urban countries. client demand from increased to was lending operation urban first its Since the B in 1972, approved in more assistance and technical investments de-risking public and private investments in cities in cities investments de-risking public and private , IF MIGA through ommittee ommittee , which presents , which presents ank 2016b). ank, which ox 4.4 ox commitments) are are A commitments) ustaining long-term poverty poverty long-term ustaining become a specialist in climate in climate a specialist become change as it is the main mission. core its challenge to The World Bank Group has Bank Group World The roup committed an average of USD of an average committed ank Group income countries (ID countries income screened for disaster and climate risks using risks and climate disaster for screened C tools (Development sector-specific in urban investment of An example 2016). in B be found DRM can risk mitigation and a seismic of the results in Istanbul. project preparedness emergency Bank World The Change Adaptation: Climate in climate a specialist become has Group its change as this is the main challenge to S mission. core global of the achievement requires reduction to assistance including objectives, climate the World FY11-15, From adapt. help countries B all of 21 percent or around billion a year, 10.3 countries help developing to commitments, the challenges to and adapt the effects mitigate USD In that period, over change. climate of than more through committed 50 billion was activities with climate-related 900 projects percent mitigation and 23 for percent with 73 B (World adaptation for urkey’s financial, cultural and industrial and industrial cultural financial, urkey’s ank and Islamic Development B ank and Islamic Development he investment has resulted in: has resulted he investment he urban he urban ast Asia/ ast t the core of the of t the core aribbean regions. regions. aribbean urope Development B Development urope frica, E frica, C ouncil of E ouncil of ank, C hese investments cover both specific both cover investments hese infrastructure compared compared infrastructure financing has gone to financing has gone with expenditure on post- with expenditure disaster recovery. disaster support ex-ante measures measures support ex-ante warning such as early and resilient systems Three times as much times Three improvements and social services. T services. and social improvements projects active 397 of consists now portfolio percent billion with 70 at USD 26.8 valued in the A located projects of and Latin America/ Pacific A Risk Management: Disaster risk disaster and growing is a robust portfolio for Annual financing program. management (DRM) has increased risk management disaster billion USD 5.7 billion in FY12 to USD 3.7 from T in FY15. and the activities risk management disaster such as sectors DRM in other of mainstreaming During and transport. energy, water, agriculture, as much financing has times this period, three such as early measures supportex-ante gone to infrastructure and resilient systems warning on post-disaster with expenditure compared for low- In addition, all financing recovery. DP is at risk from Istanbul’s exposure to multiple hazards, primarily earthquakes. earthquakes. primarily multiple hazards, to exposure Istanbul’s from GDP is at risk urkey’s urkey’s 500 largest industrial companies located in Istanbul, and as the center of production, import production, of and as the center Istanbul, in located companies industrial 500 largest urkey’s uropean Investment B Investment uropean Istanbul Seismic Risk Mitigation and Emergency Preparedness Project (ISMEP) Project Preparedness and Emergency Mitigation Risk Seismic Istanbul

1258 high-risk buildings, including schools and hospitals, being strengthened, directly benefitting about 1.5 million people; benefitting directly being strengthened, and hospitals, including schools high-risk buildings, 1258 million; and ofUSD 227 value to the buildings in retrofitting those to life and service added value million. USD 728 of the amount in damages direct avoided of the project and ‘without’ ‘with’ value the undamaged asset between a difference

InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience Source: ( World Bank 2016g) ( World Source: P implementing arrangements. EP implementing under ISM 2020 until facilities public for critical reduction financing risk will continue BOX 4.4: BOX T but also province, populous only the most is not Istanbul 15 million inhabitants, With DP, generating 38 percent of the national industrial output and 44 percent of of output and 44 percent industrial the national of percent 38 generating national GDP, of percent 28 for heartland, accounting T 188 of With income. tax its T billion of USD 82.5 and export, institutional enhancing its by earthquake a potential for preparedness Istanbul’s improve ISMEP has helped decade, the past Over earthquake for public facilities critical strengthening response, and emergency management disaster for capacity and technical T building codes. of enforcement better for and supporting measures resistance, • • • another additional financing, ISMEP has leveraged and IBRD loan million) million (USD 550 with a € 415.26 Initially supported the E € 1.36 billion from 66 66

InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 67 67 roup ank Group he World B he World has become a specialist in a specialist has become is well-placed to to is well-placed main challenge to its core core its to main challenge mission.” climate change as it is the as it is change climate enable a cross-sectoral enable a cross-sectoral cities resilient. cities identify opportunities opportunities identify approach to making to approach for reform. for Group assists client client assists Group The World Bank Group Bank Group World The countries with policy with policy countries analysis and helps and helps analysis The World Bank World The “The World Bank Group Bank Group World “The his is backed up with development policy policy up with development his is backed assists client countries with policy analysis analysis with policy countries client assists reform. for opportunities identify and helps T for financing receive countries lending where progress of supportbudget in recognition reforms. that is being made in policy resilience also requires proper policies; good policies; proper requires also resilience frameworks regulatory and effective policies e.g. cities, resilient promote needed to also are mechanisms for implementation appropriate T building regulations. he World he World ank’s new global practices practices global new ank’s roup is well-placed to enable a cross- to is well-placed ank Group An improved policy environment is also is also environment policy An improved in As noted change. facilitate needed to finance mobilizing development 3, Chapter An the puzzle. but is only part of is critical in urban investing for enabling environment is focused on sustainable communities and communities on sustainable is focused development urban that cover teams includes social risk management, as disaster as well institutional the While use. land and development in this is based resilience urban for leadership with work and joint is coordination there practice, energy, such as water, practices relevant other and cross-cutting and markets, finance transport, change and poverty. such as climate areas Making cities resilient will require a multi- will require resilient Making cities cities seen, have As we approach. sectoral and highly-dependent complex made up of are can and stresses Shocks systems. of networks while building sectors, different of a range impact different across coordination involves resilience T functions and stakeholders. services, One resilient. cities making to approach sectoral the B of the largest of Capacity to meet the urban the urban meet to Capacity challenge resilience B

. ank’s ank’s ox 4.4 ox he B ction Plan has laid out hey represent a networked a networked represent hey everal hundred professional staff spread across across spread staff professional hundred everal six regions are currently working on issues of of on issues working currently are six regions T resilience. urban about and knowledge experience of repository resilient. cities what makes of aspects various which are partnerships, and external Internal for pathway another are below, elaborated Drawing on a global knowledge base facilitates facilitates base knowledge on a global Drawing experience. and sharing of good practice S how this increase can be achieved on a sector- be achieved can this increase how rebalancing while simultaneously basis by-sector on adaptation focus put a greater to portfolio its of leveraging example A specific and resilience. in B is presented in Istanbul resources limate Change A ensuing Climate D 29 billion per year. T billion per year. USD 29 potentially hese hese OP21, the t C ank 2016b). A ank 2016b). D 4.7 billion USD 4.7 C has mobilized ank made a commitment to increase increase to ank made a commitment commitments then leverage additional then leverage commitments sector, the private donors, other from resources example, For and civil society. foundations, the IF 2009, since A capacity to leverage resources is critical. is critical. resources leverage to A capacity urbanizes, and the world changes As climate going commitments WBG of the percentage risk management disaster change, climate to T is increasing. development and urban and catalyzed sources sector private core from for billion in co-finance an additional USD 30 of USD co-financing private climate-related total B billion (World 34.7 World B World from portfolio its of share the climate-related with total 2020 by percent 28 to 21 percent of co-financing) financing (including leveraged

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 68 68 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 69 69 baba ddis Ababa ) program to nine nine to ) program ity City Dawa ogia, and Dire L emera- hey are all facing a number all facing are hey bring diverse partners partners bring diverse to share knowledge, as knowledge, share to for urban resilience resilience urban for national and sub- together national levels with supply of finance finance with supply of well as to link demand link as to well convening power to to power convening and know-how. at the international, at the international, The Bank can use its its use Bank can The the preparation of bankable investments, and investments, bankable of the preparation that reforms policy advising on complementary be effective. to investments needed for are trength Diagnostic approach, while improving the rigor of the approach by adding hazard adding hazard by the approach rigor of the while improving approach, Diagnostic trength trength Diagnostic approach that was developed and successfully piloted in A piloted successfully and developed that was approach Diagnostic trength thiopia’s decision to scale up the urban resilience technical assistance (TA assistance technical resilience up the urban scale to decision thiopia’s ambella, Harar, Hawassa, Jigjiga, Mekelle, and S Jigjiga, Mekelle, Hawassa, Gambella, Harar, ahir Dar, etter management of floods and water scarcity; scarcity; water floods and of management etter ffective management of rapid urban growth in a risk-sensitive manner focusing on the most vulnerable; vulnerable; most the on focusing manner risk-sensitive a in growth urban rapid of management ffective Improvement of disaster preparedness including fire safety and response; and safety including fire preparedness disaster of Improvement and risk; seismic mitigate to framework in building a regulatory Improvement priorities. sectoral key and support towards the built environment, of safety overall of enhancement B E S he City • • • h) Bank 2016 (World Source: • • B dama, Assossa, ank is well-positioned ank is well-positioned roup has ank Group S builds on the City his program hese relate both to the long term cost savings in urban services and resilient infrastructure development, and the safeguarding of of and the safeguarding development, infrastructure and resilient services in urban savings cost the long term to both relate hese

hese regional capitals are at a crossroads where decisions made today about the type and location of infrastructure, infrastructure, of and location about the type decisions made today where at a crossroads are capitals regional hese

ank can use its convening power to bring to power convening its use ank can dministration. T dministration. onsultative analysis found that substantial savings could be made in lives and future economic losses if investments are made to improve urban urban improve to made are investments if losses economic future and lives in made be could savings substantial that found analysis onsultative majority of them are them are of A majority fire. floods and to exposure increased facing are regions that all those found he initial assessment thiopia has one of the fastest growing urban populations in the world. It is projected to triple from 15 million in 2012 to 42 million in 42 to in 2012 15 million triple from to It is projected in the world. populations urban growing the fastest one of thiopia has hard earned development gains. For example, improved flood management practices (involving compliance with regulatory requirements for requirements regulatory with compliance (involving practices flood management improved example, For gains. development earned hard SD about U of reduction savings annual a net for level the current million from about USD 93 to annual loss the average reduce would land use) capitals: regional in these resilience to enhance identified were investments and areas main priorities five As a result, year. million each 230 T T event. an earthquake for prepare actions to any taking not risk but are earthquake to exposed C T resilience. overnment of E of the Government informed 2015 in early A areas. in urban capacity management response emergency of quick assessment and a building framework of mapping, a review and accidents, traffic number of an increasing housing shortage, a shortages, water including acute stresses, urban of built up their current than tripling more 2037, in population by triple to projected are cities these Moreover, unemployment. T area. impacts. and climate in exposure and increase cities the of safety overall the and buildings will affect services other regional capitals - A capitals regional other demonstrated capacity to pull it all together. pull it all together. to capacity demonstrated and knowledge global experience, its With the B capacity, financing the financing gaps of many address to It has the capacity 3. in Chapter identified by financing in additional private crowd to opportunities, risk/return attractive identifying appropriate of the range understanding with clients assisting financial instruments, Importantly, the World B the World Importantly, identifying and sharing good practice. Finally, Finally, and sharing good practice. identifying the B national international, at the partners diverse share to together and sub-national levels urban for link demand as to as well knowledge, and know-how. finance with supply of resilience 2034, growing at 5.4 percent a year. T a year. percent at 5.4 growing 2034, E Using Analysis for Safe and Resilient Cities in Ethiopia Cities Resilient and Safe for Analysis Using 4.5: BOX

roup ank Group ank Group. he World B he World his includes their capacity to provide risk- provide to their capacity his includes o support city-level interventions, countries countries interventions, o support city-level Cities. T such and services, infrastructure reducing all- systems, sanitation and as drainage supply and water drinking roads, weather It also services. and emergency care health or quickly repair to the potential includes disaster. of aftermath in the these restore planning land use effective of Implementation further contribute regimes and building code the built environment. of the resilience to Countries. T the needed financing and provide secure can as as well investments resilience urban for environment and institutional the policy create in investment sector private promote to required national As a sovereign, resilience. urban able better sometime are governments resilience for urban financing secure to multilateral – be it through investments bonds and guarantees. finance, development identify to is applied below framework This and financing assistance technical relevant to offer can Group Bank the World options T resilience. urban bolster financing specialized of a wide range offers to which contribute and services products individual / household, on the resilience urban and national levels. municipal, community, services and products financial these Importantly, capital private leverage to opportunities provide needs and client gap between fill the to in order development multilateral financing from available B the World like institutions cities interested offers also Bank The resilience urban of a suite and countries instruments, several financing through (ASAs), analytics and services advisory as (RASs) services advisory reimbursable these Importantly, assistance. as technical well o this end, resilience o this end, resilience orld his includes taking action to reduce reduce action to taking his includes individual / household, individual / household, which contribute to to which contribute products and services and services products offers a wide range of of range a wide offers municipal, community, urban resilience on the resilience urban specialized financing specialized and national levels. The World Bank Group Bank Group World The ervices ank S his includes their opportunities to minimize minimize to their opportunities his includes work to capacity a community’s his includes Strengthening the resilience of cities – cities of the resilience Strengthening poor – requires the urban of especially ranging levels at different interventions the to the individual and household from national. T occurs; the shock before or exposure impacts capacities supporting coping includes it also the ability and improving afterwards immediately resilient a more to or forward back, bounce to T the aftermath. in state, scales: at different be understood needs to Individuals and households. T locations living in safe risk by to exposure their enhance and to houses, and in safe health, improved through capacity adaptive nets. safety to and access knowledge Communities. T to instance – for on risk reduction together use to risks, local about information share natural (including and services infrastructure jeopardize that do not in ways ecosystems) this provide or to functions, their risk-reducing do so. to fail governments where infrastructure 4.3 — W 4.3 — B Supporting for lience esi R Urban

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 70 70 TheInvestThe World World Banking Bank i n| U |Investing r Investingban Resin Urbanin Urbanili Resilienceence Resilience 71 71 71 ank . upport he B ox 4.5 ox ead on Resilience so that it can that it can so on Resilience ead his includes: pre-development pre-development his includes: has been integrating has been integrating into “tools” that can be that can “tools” into city partners. city utilized to better serve serve better to utilized successful approaches approaches successful The World Bank Group Bank Group World The etter technical capacity in the public sector in the public sector capacity technical etter thiopian cities is presented in B is presented thiopian cities Financing Approaches and Modalities third-party of amount unlock a greater To of various kinds need financing, governments is well-positioned Bank support that the World T provide. to capacity for assistance technical financing; and and plan, prepare conceptualize, building to projects. resilience investor-ready negotiate B the and, therefore, uncertainty reduce would S investors. private for capital of cost lliance (http://resiliencetools.org/ Alliance Cities the by and of knowledge . 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T mobility). on sustainable a C of in the creation has resulted leverage private capital in order to meet the meet to in order capital private leverage development multilateral of gap in availability the A summary of needs. to city finance as financing, insurance, assistance, technical for available as bonds and guarantees well A below. is provided purposes resilience urban financing these of description detailed more 3. in Annex is given and services products energy use, land value capture, tax increment increment tax capture, land value use, energy been have finance financing and municipal B the World of in the context tested engagements. hrough hrough ank orrowers orrowers his type of of his type ome of these reforms, e.g. e.g. reforms, these ome of ank provided ank provided ank to finance projects that aim to that aim projects finance ank to he World B he World ank financing against eligible expenditures. eligible ank financing against Investment Project Financing (IPF): Project Investment the financing (IPF) allows project Investment B World and sustainable reduction poverty promote B member countries. of development on their based the IPF instrument choose may and achieve, to expect they results the objectives, with IPF supports projects face. they the risks and activities, objectives, development defined expenditure of set a specific and finances results, of the proceeds and disburses transactions B (DPL): Lending Policy Development support policy lending can policy Development T dialogue. from that emerge reforms the B operations, policy development and policy of program supports a country’s and growth actions that promote institutional T reduction. poverty sustainable support budget in provides typically financing reforms and institutional policy of recognition climate, the investment example, for improve, to employment, create the economy, diversify service strengthen public finances, improve international applicable and meet delivery, S commitments. in urban climate the investment improving ank oans oans he World B he World ending for Belo Horizonte Belo for ending ) to the city in 2013 in support of inclusive urban development development urban inclusive support in of in 2013 city the ) to have been working been working have in crisis situations. to enhance the enhance to flows, by reducing by flows, efficiency of financial efficiency time and/ or delivery needs and emergency costs, especially for for especially costs, and its partners partners and its The World Bank Group Bank Group World The he loan built upon ongoing reforms in housing development, resettlement, social social resettlement, in housing development, upon ongoing reforms built he loan is required to help governments understand understand help governments to is required and retain attract to required the conditions the costs understand and to capital, private or actions (or policies government certain of T be). may inaction, as the case roup and its partners have been working to to been working have partners and its Group by flows, of financial the efficiency enhance especially costs, time and/or delivery reducing needs and in crisis situations. emergency for and modalities approaches various are There projects resilience urban structuring of However, resources. Group Bank with World of one through offered is the financing itself Project Investment specific instruments: three L Policy (IPF), Development Finance (PforR). Results for Program and (DPLs) ank, 2015c)

razil’s sixth largest city, has a high poverty rate which is unevenly distributed throughout the city the city throughout distributed which is unevenly rate has a high poverty city, sixth largest Brazil’s elo Horizonte, ource: (World B (World ource: he city also embraced state-of-the-art resettlement policies and practices. It spearheaded an innovative approach approach innovative an It spearheaded and practices. policies resettlement state-of-the-art embraced also he city S During the loan implementation period, the Municipality adopted ambitious participatory decision-making ambitious participatory adopted period, the Municipality implementation During the loan and planning. decisions, policy allocation, budget of inclusion and ownership citizen direct foster mechanisms to T reached not families for those action plan development a specific designing families, vulnerable the most reach to and implemented developed the city Finally, their specific needs. to tailoring by programs social existing by system. and reporting warning early disaster its strengthened change action plan and climate a municipal programs, climate change adaptation and mitigation, disaster risk management, and results-based management. management. and results-based risk management, disaster and mitigation, change adaptation climate programs, L (DP loan policy million development a USD 200 and fiscally socially and enhance practices, and sustainable green promote the poor, of vulnerability reduce to T governance. urban sustainable and is highly correlated with housing conditions, inequality, access to jobs, and gender. T and gender. jobs, to access inequality, with housing conditions, correlated and is highly B Development Policy L Policy Development 4.6: BOX

InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 72 72

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World Bank Instruments for Urban Resilience Urban for Instruments Bank World 4.1: TABLE

The World Bank | Investing in Urban Resilience

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Sample menu of options for urban resilience investments resilience urban for options menu of Sample 4.3: Figure VULNERABILITY AWARENESS-BUILDING TOOLS AWARENESS-BUILDING VULNERABILITY

InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 76 76

InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 77 77 his ank developed ank developed ank 2016e) ccra, the World B World the ccra, ustainable ustainable -Habitat are are UN-Habitat and Alliance Cities gency, hana face resilience challenges ranging ranging challenges resilience ) in Ghana face fter the disastrous floods in June 2015, which affected more more which affected 2015, in June floods disastrous the fter limate limate the C with risk insurance; is assisting orporation A ooperation overnment in help the Government to program assistance a technical T MA region. in the GA resilience urban greater achieving and internal of with a range provided is being assistance Reduction Disaster for Facility the Global partners: external Finance financing; the International is providing and Recovery C is supporting a dialogue Partnership Readiness Investment and risk reduction disaster adaptation, change on climate Foundation Rockefeller and the framework; an investment International the Japan Initiative, Cities - 100 Resilient C reater A people in Greater than 50,000 B (World support. technical coordinating also A MA GA for Metropolitan Accra, Ghana and a Accra, Metropolitan for for Urban Resilience, and Columbia and Columbia Resilience, Urban for conversations Informal School. Business begun have partnerships on potential JP Blackrock, University, with Stanford SwissRe, Veolia, Agricole, Credit Morgan, of example An and Arup International. in Box in action is provided partnership 4.7 and external internal existing of description 4. in Annex is provided partnerships will support cities directly and by and by directly will supporthe WBG cities Climate Change Action Plan Change Action Climate Change Climate Bank’s World The Plan supports the integration Action planning. urban into climate of T products and knowledge tools developing S for Platform the Global through by cities 30 out in at least these and roll Cities, and will develop In addition, the WBG 2020. in 15 cities approach resilience a city-based pilot development, infrastructure integrate to 2020 by DRM, institutions/governance, planning, land use It will and investment. components, social support to capacity multi-sectoral its use also (water management water urban integrated planning, sanitation management, resource investments). and related drainage, urban between consistency ensure to Finally, hese are exacerbated by fragmentation across 16 jurisdictions. 16 jurisdictions. across fragmentation by exacerbated are hese rea ( Area Metropolitan ccra eadership Alliance, Alliance, eadership Partnering to Enhance Resilience in Metropolitan Accra in Metropolitan Resilience Enhance to Partnering he key activities will be to: activities he key

for the Program. tools and refine Develop indicators include developing These and and welfare poverty measure to and a city-level level, at city risks asset instrument. survey poverty-DRM means This capital. private Leveraging industry engaging with investment resilient define to and cities groups and investments, infrastructure on cities of overview a global constructing regulatory their financial and of the basis markets. capital access to readiness engagements. city a pipeline of Building in the developing cities Several been identified; already have world be added. will soon more partnerships existing from value Creating The partnerships. new and establish expected are partnerships formal following in 2017 supporting the program start to Cities, 100 Resilient Rockefeller and 2018: City Philanthropies, Bloomberg C40, L Finance Climate International Code Council, Transparency Transparency Council, Code International ICLEI, Medellin Collaboration International, reater A living in the Greater million people he 4.4 The first year of the Program will focus on focus will of the Program year first The T areas. four • strategy. In the first 10 years, the program the program years, 10 In the first strategy. USD 4 billion in MDB financing, will leverage and capital USD 4 billion in private crowd-in access to on the path cities 20 put at least investments. resilience for capital private • • • from floods to inadequate solid waste management. T management. waste solid to inadequate floods from BOX 4.7: T

Mainstreaming the analysis of urban urban of the analysis Mainstreaming national CPFs, in SCDs, resilience and climate strategies, urbanization example, using, for by strategies diagnostic. the CityStrength instruments of Using the full range up WBG scale 3 to outlined in Annex and making cities for assistance resilient. poor more the urban a project create to Mobilizing resources clients assist to facility preparation preparing of with the additional costs resilience. in urban investments Practice of Community an internal Creating the sharing facilitate to resilience on urban and good practices expertise knowledge, of prioritizing, identifying, analyzing, for supervising, and evaluating preparing, making for activities and other investments resilient. poor more and the urban cities knowledge and other guidance Developing and external with internal products investments preparing for partners across resources and leveraging resilience. city for sectors different with other partnerships new Developing excellence technical of sources and financiers relationships. existing while strengthening he 79 core urban resilience projects that have that have projects resilience urban core he 79 costs of investing in resilience. Improved Improved in resilience. investing of costs with better combined management, urban and services that help ensure can governance, the poor and vulnerable. reach infrastructure a up of the scaling will enable Mainstreaming portfolio. resilience urban significant more T 2) Annex (see years five the last over emerged A strategically. and not organically grown have to approach and comprehensive strategic more by: be achieved can cities in resilient investing • • • • • • ank will reduce its its ank will reduce etter fiscal and financial fiscal etter ank, 2016b). RD projects to to IBRD projects A to conomic growth and shared and shared growth conomic . Resources have already already have C. Resources ank will recognize investment investment ank will recognize ollaboration on Urban Resilience. Resilience. on Urban ollaboration his recognition can then ensure that then ensure can his recognition (World B (World C and MIGA Differently Doing Business make to resources will commit Bank World The line. product a business resilience urban support full institutional mobilize to In order in resilience of the challenge addressing for B the World cities, business as a standard resilience in urban T product. aspects various for available are resources and diagnostics country systematic work: of and advisory analytic frameworks, policy country financial instruments, lending and other services, also It would management. and knowledge and climate disaster of the expansion involve ID from risk screening as risk-informed are that all investments ensure screen the resilience of use continued as well the IF by employed support the scaling GFDRR to by been committed and the Program Cities the Resilient up of through partnerships external of consolidation the Medellin C development urban broader Support for is needed and will continue. does resilience on urban focus An enhanced B that the World mean not areas. in other development urban support for efficient productive, more making cities In fact, enhancing to critical are governed and better E resilience. overall the of incomes will help increase prosperity to their vulnerability poor and reduce urban B and stresses. shocks cities of the ability increase can management the additional meet to and their partners infrastructure development and urbanization, and urbanization, development infrastructure approaches and pilot will develop the WBG in at development transit-oriented for with support from 2020 by cities five least IF

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 78 78 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 79 79 uilding it into our planning processes our planning processes uilding it into roup has the capacity and mission to serve serve to mission and capacity the has Group ity Resilience Resilience the City through these ccess ank B the challenge. help meet to broker as an honest by provided the resources Use Group. Bank the World A at http://www.worldbank.org/en/topic/ Program urbandevelopment/brief/resilient-cities-program. now. Start an urgent seen have is as we resilience City B priority. gains already the development will preserve and poverty lift millions out of achieved, development. urban help sustain t usion oncl roup and other organizations. and other ank Group uilding resilient cities is a multi-decade is a multi-decade cities uilding resilient Whether you are in a city that seeks to become become to that seeks in a city are you Whether looking for an investor or are resilient more the World resilience, build urban to opportunities Partner with the World Bank. with the World Partner It is a useful reference to the issues which the issues to reference It is a useful and the urban cities of the resilience affect capacity- the information, and a guide to poor, the by provided tools building and investment B World task, demanding considerable commitmen considerable demanding task, this report. Use B exceptional but offering and resources, alike. and investors cities to opportunities steps: first critical some are Here 4.6 In C 4.6 22 27 24 20 19 23 25 21 28 18 26 daptation focuses development resources on mitigating specific risk on mitigating specific resources development focuses daptation he capacity of a social or ecological system and its component parts to to parts component and its system or ecological a social of he capacity A T manner efficient in a timely and and stresses shocks with hazardous cope maintain, restore, that in ways and transforming adapting, responding, by while identity and structures, functions, essential its improve and even and change. growth for the capacity retaining Resilience refers to the ability of any urban system to withstand and to and to withstand to system urban any of the ability to refers Resilience continuity and maintain and stresses shocks multiple quickly from recover service. of Urban Resilience is the capacity of individuals, communities, institutions, institutions, communities, individuals, of is the capacity Resilience Urban no matter and grow adapt, survive, to within a city and systems businesses, experience. they shocks and acute stresses chronic what kinds of

resilient country is “one that has the capability to 1) adapt to changing to 1) adapt to has the capability that is “one country A resilient a desired to 3) recover and sudden shocks 2) withstand contexts, the while preserving one, one or a new equilibrium, either the previous operations.” its of continuity 2016: report, risks Global from term *New and more avenues find new to necessity – an urgent imperative’ ‘Resilience risks global against and build resilience to adapt mitigate, to opportunities stakeholders. among different collaboration through and threats Disaster Resilience is the ability of countries, communities and households and households communities countries, of is the ability Resilience Disaster in living standards or transforming maintaining by manage change, to or violent drought - such as earthquakes, or stresses shocks of the face prospects. long-term their compromising - without conflict Resilience is the capacity of a social-ecological system to absorb or absorb to system a social-ecological of capacity is the Resilience remains such that the system stressors other and perturbations withstand and functions. structure its maintaining essentially regime, within the same self-organization, of is capable which the system to the degree It describes Walker & Holling 2002, Gunderson (Holling 1973, and adaptation learning al. 2004). et Resilience is “the ability of people, households, communities, countries countries communities, households, people, of is “the ability Resilience and stresses shocks from and recover to adapt mitigate, to and systems inclusive and facilitates vulnerability chronic in a manner that reduces growth. ity is one that has developed capacities to help absorb future future help absorb to capacities is one that has developed City A Resilient and systems and technical economic, social, its to stresses and shocks the same essentially maintain be able to still as to so infrastructures and identity. systems, structures, functions, Resilience is the capacity of individuals, communities and systems to to and systems communities individuals, of is the capacity Resilience and even and shocks, stress of in the face and grow adapt, survive, it. require when conditions transform resilient city is one that is: first, protected by effective defenses and defenses effective by protected is one that is: first, city A resilient back bounce able to and second, impacts; climate most mitigate to adapted time. time to from breached are defenses quickly when those more “ of performance the overall to connection without a clear often factors, on the focuses Resilience unit or system. as a functioning urban the area of performance.” and efficiency reliability . lience Resi rban of U e Definitions ampl C, A ORK ORG DFID ICLEI Y MORE RISKS USAID CITIES NY WORLD WORLD ALLIANCE ECONOMIC ECONOMIC STRONGER STRONGER RESILIENCE ­­­­RESILIENCE UN-HABITAT FOUNDATION ROCKEFELLER 100 RESILIENT 100 RESILIENT Y RESILIENTCIT RESILIENT NEW NEW RESILIENT FINANCING THE RESILIENT CITY RESILIENT FORUM, GLOBAL GLOBAL FORUM, JEB BRUGMANN, BRUGMANN, JEB

1 — S Annex

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 80 80 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 8181 8181 uilding ervice Delivery ervice ank theme ank 2014a). ank 2014a). conomic Development conomic S ommunicable Diseases and Injuries Diseases ommunicable AID / uberculosis HIV Non-C Malaria T Finance Municipal B and Institution Governance Municipal and S Infrastructure City-Wide E Urban Crisis Response Food Global Health and Environmental Management Pollution and Natural Other Environment Management Resources

he ones that are primarily that are he ones

FDRR 2016b) GFDRR 2016b) ource: 68 88 89 92 93 72 73 102 103 91 84 S 1) from the World B the World able A1) from A and IBRD terms. he master list (primary + secondary list) list) (primary + secondary list he master T in based that are for projects filtered was T areas. ‘urban’ as ‘core’ referred are areas in urban based that and the ones projects resilience urban or area in urban either partially based are referred are projects, national regional/ are projects. resilience urban as ‘non-core’ and investment project financing project and investment on ID projects resilience urban of A primary list disaster on focus that mainly developed was change and climate risk management ( adaptation was projects urban of list A secondary themes selected 23 of a search from derived T (see connection their possible for system coding B (World resilience urban to

5. 3. 4. rban ank U upport onflict Reconstruction onflict B orld ecurity ervices and Housing for the and Housing for ervices ommunicable Diseases ommunicable ocial Protection and Risk Management ocial Protection urban resilience projects. projects. resilience urban 30 ocial Protection and Risk Management) ocial Protection ssessment and Monitoring and Monitoring Assessment ulnerability C Post- and Prevention onflict ocial Inclusion urban resilience projects and projects resilience urban S S Other C S Nutrition and Food V ( S Urban Development) (Urban Poor (Environment and Institutions Policies Environmental Management) Resources and Natural (Environment Management Resource Water Management) Resources and Natural and Procurement Financial Management Public Expenditure, S Small and Medium Enterprise Micro, Labor Markets Improving Other S C 29 he time period was for lending operations lending operations for he time period was ending operations included both included both ending operations development policy financing policy development T (i.e., 2012-2016 years in fiscal approved 2016). and June 30, July 1, 2011 between L

non-core core

he Urban Resilience portfolio analysis analysis portfolio Resilience he Urban 85 27 100 64 55 71 82 41 51 56 58 • Non-core urban resilience theme codes resilience urban A1: Non-core Table 1. Methodology: 2. T parts: two into is divided FY12-16 for • 2 — W Annex lio Portfo lience Resi D 26.77 billion USD 26.77 provided BG the W In total, or is either directly that in 86 countries improving towards contributing indirectly 79 years. five the last over resilience urban financed were projects resilience urban core billion USD 9.7 for accounting countries, in 41 urban non-core In addition, 151 FY12-16. between with financing supported were projects resilience period. billion during the same USD 17.5 of 20.82 120 60 139.64 210 213 11.85 99.6 292 55.6 600 ietnam ietnam enegal ajikistan razil Brazil razil Brazil Mozambique Haiti Indonesia V Sri Lanka T Nigeria S V eira; Nacala eira; ernardo ho ai an T olombo ose ao B Rio de Janeiro S B Maputo; Port-au-Prince Jakarta Lao C C V Lagos C Dakar dditional Financing) A ystem ( ystem dditional Financing) A dditional Financing) daptation Project daptation A ector Reform Project ( Project Reform ector ernardo Integrated Water Management Water Integrated ernardo ao B Project Name Project oan S oan olombo Urban Development olombo Urban

daptable Program L Program daptable limate Change & Climate Cities oastal ational Urban Water S Water National Urban econd econd Urban Upgrading (VUUP2) Upgrading Urban econd limate Change A and Climate Management tormwater Jakarta Urgent Flood Mitigation Project Flood Mitigation Urgent Jakarta Project Development Medium Cities S S S S Rail Urban the Rio de Janeiro and Greening Upgrading Metro C Metro ( Project Development Infrastructure Municipal A C Disaster Risk Management and Reconstruction Risk Management Disaster 2012 FY Approval 1 7 3 2 5 9 6 11 4 8 10

S.no

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 82 82 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 83 83

Total 120 60 139.64 210 213 11.85 99.6 292 55.6 600 20.82 Commitment ($m) Commitment Country ietnam ietnam enegal ajikistan Mozambique Haiti Indonesia V Sri Lanka T Nigeria V S Brazil razil Brazil Country eira; Nacala eira; ernardo ho ai an T olombo ose ao B Rio de Janeiro Dakar C Lagos C V Lao C Jakarta Port-au-Prince Maputo; B Maputo; S dditional Financing) A ystem ( ystem dditional Financing) A dditional Financing) daptation Project daptation A ector Reform Project ( Project Reform ector ernardo Integrated Water Management Water Integrated ernardo ao B oan S oan olombo Urban Development olombo Urban daptable Program L Program daptable limate Change & Climate Cities oastal ational Urban Water S Water National Urban econd econd Urban Upgrading (VUUP2) Upgrading Urban econd limate Change A and Climate Management tormwater Jakarta Urgent Flood Mitigation Project Flood Mitigation Urgent Jakarta Project Development Medium Cities S S Rail Urban the Rio de Janeiro and Greening Upgrading Metro C Metro S S A ( Project Development Infrastructure Municipal C Disaster Risk Management and Reconstruction Risk Management Disaster 1 7 3 2 5 6 9 11 4 8 10 150 14 150 24 73.5 200 250 60 85 80 47.1 150 100 100 266 2.754 15 300 202.5 150 ietnam ietnam olivia enin urkina Faso olombia ogo China B China China B V B T China China China V Indonesia C Brazil Honduras Brazil razil Brazil China Azerbaijan uizhong. (Liaoning) uizhong. ulawesi; Kulimantan; Maluku Utara; Papua Papua Utara; Maluku Kulimantan; ulawesi; ongcheng, Panjin and S ongcheng, Panjin ali; S arat arat eiba; El Progreso eiba; ast Java; B Java; ast ongcheng, Panjin and S ongcheng, Panjin enggara B enggara anta Cruz anta ula; La C Anhui) huận; Tỉnh Quảng Bình Anhui) enggara; E enggara; Guangxi) T Nusa Maluku; arat; elo Horizonte aku otonou; Kandi otonou; an Pedro de S an Pedro ao Paulo usa T Nusa ast ome Kuandian, Lingyuan, L Kuandian, Ma'anshan ( Ma'anshan Tỉnh Ninh T E B Nationwide Rio de Janeiro S S El Alto; La Paz; S Xuancheng ( Xuancheng B Nanchang C Danang Ouagadougou L Laibin ( B Jiangxi (Jiangxi) Jingdezhen Lingyuan, L Donggang, Kuandian, own Development Project Development own ransport ransport ssistance Project Assistance echnical oan DP) SC oan conomic Zone Small T Zone conomic dditional Financing) Project Name Project ector Management T Management ector A cological E cological dd Financing asin Improvement Project asin Improvement asin and E nvironmental Management Project Management and Environmental Infrastructure Urban Zone conomic ities Development Policy L Policy Development Cities ustainable trengthening Public S trengthening olid Waste Management Project Project Management olid Waste oastal E oastal reas For 2012-2015 For Areas In Urban Program Empowerment ommunity ity Development Project ( Project Development City ustainable ransport Infrastructure Proj Infrastructure ransport upport Program

elo Horizonte Urban Development Policy L Policy Development Urban elo Horizonte afer Municipalities afer hange, Disaster Risk Management and T Risk Management Disaster Change, Climate ao Paolo econd Urban Infrastructure Project ( Project Infrastructure Urban econd ihu River B Cihu River Ma'anshan Jiangxi Wuxikou Flood Management Project Flood Management Jiangxi Wuxikou mergency Infrast Rehab A Rehab Infrast Emergency Environment Guangxi Laibin Water Danang S Donsin T Productive and S Productive S Integrated S Integrated National C S Rio de Janeiro S ake B Lake Jiangxi Poyang B Project Rail China: Nanchang Urban S Cities nhui Xuancheng Infrastructure for Industry A1:F81 Industry for Infrastructure Anhui Xuancheng S Liaoning C atural Hazards Project Hazards Managing Natural 2013 FY Approval 31 17 13 21 12 15 19 16 14 18 27 23 22 24 26 25 29 28 20 30

S.no

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 84 84 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 85 85

Total 150 266 2.754 15 24 300 85 80 47.1 150 100 100 150 73.5 200 250 60 14 150 202.5 Commitment ($m) Commitment ietnam ietnam olivia urkina Faso enin olombia ogo Country China V Indonesia C Brazil Honduras B Brazil B China Azerbaijan China China China China Brazil China B V T uizhong. (Liaoning) uizhong. ulawesi; Kulimantan; Maluku Utara; Papua Papua Utara; Maluku Kulimantan; ulawesi; ongcheng, Panjin and S ongcheng, Panjin ali; S arat arat eiba; El Progreso eiba; ast Java; B Java; ast ongcheng, Panjin and S ongcheng, Panjin enggara B enggara City anta Cruz anta ula; La C Anhui) huận; Tỉnh Quảng Bình Anhui) enggara; E enggara; Guangxi) T Nusa Maluku; arat; aku elo Horizonte otonou; Kandi otonou; ao Paulo an Pedro de S an Pedro usa T Nusa ast ome Kuandian, Lingyuan, L Kuandian, B S El Alto; La Paz; S S Rio de Janeiro Nationwide E Tỉnh Ninh T Ma'anshan ( Ma'anshan Jingdezhen (Jiangxi) Jingdezhen Lingyuan, L Donggang, Kuandian, Jiangxi B L Laibin ( Ouagadougou Danang C Nanchang Xuancheng ( Xuancheng B own Development Project Development own ransport ransport ssistance Project Assistance echnical oan DP) SC oan conomic Zone Small T Zone conomic dditional Financing) ector Management T Management ector A cological E cological dd Financing asin Improvement Project asin Improvement asin and E nvironmental Management Project Management and Environmental Infrastructure Urban Zone conomic ities Development Policy L Policy Development Cities ustainable trengthening Public S trengthening olid Waste Management Project Project Management olid Waste oastal E oastal reas For 2012-2015 For Areas In Urban Program Empowerment ommunity ity Development Project ( Project Development City ustainable ransport Infrastructure Proj Infrastructure ransport upport Program elo Horizonte Urban Development Policy L Policy Development Urban elo Horizonte afer Municipalities afer hange, Disaster Risk Management and T Risk Management Disaster Change, Climate ao Paolo econd Urban Infrastructure Project ( Project Infrastructure Urban econd ihu River B Cihu River Ma'anshan Jiangxi Wuxikou Flood Management Project Flood Management Jiangxi Wuxikou Donsin T Danang S A Rehab Infrast Emergency Environment Guangxi Laibin Water Productive and S Productive S Integrated S Integrated Rio de Janeiro S Rio de Janeiro National C S nhui Xuancheng Infrastructure for Industry A1:F81 Industry for Infrastructure Anhui Xuancheng B S Cities B Lake Jiangxi Poyang anchang Urban Rail Project Rail China: Nanchang Urban S Liaoning C atural Hazards Project Hazards Managing Natural 31 17 13 12 21 15 16 19 14 18 27 23 22 24 26 25 29 28 20 30 250 6.4 35 178 4.5 200 31 100 200 33 175 5.6 147 24 ietnam enin osnia and Herzegovina osnia V B Peru Mozambique Haiti Nigeria Kosovo Niger Nigeria Mexico Uganda Djibouti Sri Lanka B inh; inh Hoa B inh Hoa ai ang; T inh Yen B inh Yen ao B inh C uyen Quang; T uyen ac Kan; T ac Kan; inh T inh B ien; T guyen; T hai Nguyen; usco ijeljina; Goražde otonou inh T T Kampala Djibouti Madawala Katugastota; Kandy; Digana; Galle; Jaffna; C C B Maputo Dondon; Milot Hinche; Mirebalais; Ibadan Prizren Pristina; Pejë; Gjilan; Mitrovicë; Gjakovë; Ferizaj; Diffa Niamey; Lagos Oaxaca Dien B Huyen dditional Financing) A dditional Financing) A Project Name Project anitation Modernization anitation xpansion Project upply Expansion tate Development Policy Credit Policy Development tate nergy Project Energy Renewable and fficiency econd S econd upply and S ommunity Driven Development Project ( Project Development Driven ommunity ities Development Project Development Cities trategic

usco Regional Development Regional usco nvironment Project ( Project Environment Urban enin Emergency econd Kampala Institutional and Infrastructure Development Project Development and Infrastructure Institutional Kampala econd econd Urban Poverty Reduction Project (PREPUD II) Project Reduction Poverty Urban econd agos S Nigeria Lagos ational Urban Development Program - Northern Mountains Program Development National Urban Results-based B C anka S Sri Lanka reater Maputo Water S Water Maputo Greater S Drina Flood Protection Project Drina Flood Protection S nergy E Energy Kosovo Project Development Urban and Risk Management Niger Disaster Ibadan Urban Flood Management Project Management Flood Urban Ibadan Oaxaca Water S Water Oaxaca Haiti - Urban C Haiti - Urban 2014 FY Approval 41 37 32 33 35 39 36 42 38 43 34 45 44 40

S.no

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 86 86 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 87 87

Total 250 5.6 147 178 4.5 200 31 100 200 33 175 6.4 35 24 Commitment ($m) Commitment Country ietnam enin and Herzegovina osnia V Djibouti Sri Lanka Mozambique Haiti Nigeria Kosovo Niger Nigeria Mexico Uganda B Peru B inh; inh Hoa B inh Hoa ai ang; T inh Yen B inh Yen ao B inh C uyen Quang; T uyen ac Kan; T ac Kan; inh T inh B City ien; T guyen; T hai Nguyen; usco ijeljina; Goražde otonou inh T T alle; Jaffna; Kandy; Katugastota; Madawala Katugastota; Kandy; Digana; Galle; Jaffna; Djibouti Kampala Huyen Dien B Huyen Oaxaca Lagos iamey; Diffa Niamey; jilan; Mitrovicë; Pejë; Pristina; Prizren Pristina; Pejë; Gjilan; Mitrovicë; Gjakovë; Ferizaj; Ibadan Hinche; Mirebalais; Dondon; Milot Hinche; Mirebalais; Maputo C B C dditional Financing) A dditional Financing) A anitation Modernization anitation xpansion Project upply Expansion tate Development Policy Credit Policy Development tate nergy Project Energy Renewable and fficiency econd S econd upply and S ommunity Driven Development Project ( Project Development Driven ommunity ities Development Project Development Cities trategic usco Regional Development Regional usco nvironment Project ( Project Environment Urban enin Emergency econd Kampala Institutional and Infrastructure Development Project Development and Infrastructure Institutional Kampala econd econd Urban Poverty Reduction Project (PREPUD II) Project Reduction Poverty Urban econd agos S Nigeria Lagos B - Northern Mountains Program Development National Urban Results-based C anka S Sri Lanka reater Maputo Water S Water Maputo Greater S Drina Flood Protection Project Drina Flood Protection S Ibadan Urban Flood Management Project Management Flood Urban Ibadan iger Disaster Risk Management and Urban Development Project Development Urban and Risk Management Niger Disaster nergy E Energy Kosovo Haiti - Urban C Haiti - Urban Oaxaca Water S Water Oaxaca 41 37 32 33 35 39 36 42 38 43 34 45 44 40 150 35 400 59.8 150 173 40 102.9 100 15.75 300 200 52 8.7 50 70 ongo angladesh enin anuatu enegal enegal anzania ajikistan China S India V China B B Uzbekistan China Mozambique T Nepal DR C T Madagascar S oliara afea Province afea ila; T V amarkand ylhet alaam ukhara; S ukhara; eira otonou uganville; Port- uganville; Shaanxi province Dakar Chennai L Xining S Dhaka; C B Chongqing B S Dar es Madhyamanchal Goma Dushanbe Dauphin;T Fort Antsiranana; Antananarivo; Dakar dditional Financing) dditional Financing) A econd A econd S dditional Financing) A dditional Financing) A orridor Project orridor Project Project Name Project dditional Financing) A anitation Project anitation ewerage Project ( Project ewerage upply Project ( upply Project nvironment Management Project Project Management Environment Water owns owns Infrastructure owns afety Improvement Project Project Improvement afety amarkand S amarkand ustainable Urban Development Program Program Development Urban ustainable viation Investment Project viation Investment alaam Metropolitan Development Project Project Development alaam Metropolitan

nvironment Project ( Project Environment Urban enin Emergency ukhara and S ukhara angladesh Urban Resilience Project Project Resilience Urban angladesh anuatu A anuatu rowth Poles And C Poles Growth Integrated econd econd Dushanbe Water S Dushanbe Water econd enegal Urban Water and S Water enegal Urban hange Project ( Change Project and Climate Management tormwater arthquake Housing Reconstruction Project Housing Reconstruction arthquake amil Nadu S Goma Airport S S V S S Chongqing Small T B T S Shaanxi Small T Dar Es S B Change PPCR ( And Climate Cities B E nvironment Management Project Project Management Environment Qinghai Xining Water 2015 FY Approval 51 61 57 53 47 52 59 55 49 56 58 54 46 50 48 60

S.no

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 88 88 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 89 89

Total 50 70 150 35 400 59.8 150 173 102.9 100 15.75 300 200 52 8.7 40 Commitment ($m) Commitment ongo angladesh enin anuatu enegal enegal anzania ajikistan Country Madagascar S China S India V China B Uzbekistan China Mozambique T Nepal DR C T B oliara afea Province afea ila; T V City amarkand ylhet alaam eira ukhara; S ukhara; otonou uganville; Port- uganville; Xining L Chennai Dakar Shaanxi province Dakar ntsiranana; Fort Dauphin; Dauphin;T Fort Antsiranana; Antananarivo; Dushanbe Goma Madhyamanchal Dar es S Dar es B B Chongqing C S Dhaka; dditional Financing) dditional Financing) A econd A econd S dditional Financing) A dditional Financing) A orridor Project orridor Project dditional Financing) A anitation Project anitation ewerage Project ( Project ewerage upply Project ( upply Project nvironment Management Project Project Management Environment Water owns owns Infrastructure owns afety Improvement Project Project Improvement afety amarkand S amarkand ustainable Urban Development Program Program Development Urban ustainable viation Investment Project viation Investment alaam Metropolitan Development Project Project Development alaam Metropolitan nvironment Project ( Project Environment Urban enin Emergency ukhara and S ukhara angladesh Urban Resilience Project Project Resilience Urban angladesh anuatu A anuatu rowth Poles And C Poles Growth Integrated econd econd Dushanbe Water S Dushanbe Water econd enegal Urban Water and S Water enegal Urban hange Project ( Change Project and Climate Management tormwater arthquake Housing Reconstruction Project Housing Reconstruction arthquake amil Nadu S Goma Airport S S V S S Chongqing Small T B T Shaanxi Small T S B Change PPCR ( And Climate Cities Dar Es S B E nvironment Management Project Project Management Environment Qinghai Xining Water 51 61 57 53 47 52 59 55 49 56 58 54 46 50 48 60 119 80 95 44.89 70 46.75 195 250 350 99.75 35 200 200 46.75 87.78 12 50 200 ietnam ietnam urkina Faso ongo thiopia anzania C Rwanda Guatemala Niger V T E China Gabon B Morocco Morocco Sri Lanka Brazil Republic Kyrgyz Mali V Argentina angier; Fes asablanca; Marrakech; Marrakech; asablanca; oktogul uluktu; T uluktu; obo-Dioulasso; other cities other obo-Dioulasso; gadir; Marrakech; Rabat; T Rabat; gadir; Marrakech; ho ddis Ababa alykchy; Kerben; S Kerben; alykchy; amako Aires uenos an T A asablanca; econdary cities (nationwide) cities econdary eresina eresina étouan; Fès; Meknès; Rabat; C Fès; Meknès; Rabat; anger; Tétouan; razzaville; Pointe Noire Pointe Brazzaville; cities Kigali; secondary B City Guatemala cities other Niamey; S Zanzibar A B C B Hebei cities other Gentil; Port Libreville; Ouagadougou; B T cities secondary C northern other cities Jaffna; T uenos Aires uenos dditional Financing) A dditional Financing) A upport Project Project Name Project dditional Financing) dditional Financing) A A ontrol Program ontrol ransport S ransport dditional Financing) A dditional Financing) A iolence Prevention iolence ity of B of the City for upport Project ocal Development Project II Project Development ocal anitation Project ( Project anitation ervices Project ( Project ervices ransport Project ransport upply Project ( upply Project upply and Wastewater Project ( Project upply and Wastewater ho Urban Development and Resilience Development ho Urban

and Use and T Land Use Urban ddis Ababa amako Water S Water amako an T ities Development Project ( Project Development Cities trategic overnance Project ( Project Governance Enhancing Municipal eresina C Urban Infrastructure and V Infrastructure Urban Urban Water S Water Urban Zanzibar Urban S Urban Zanzibar Urban Water and S Water Urban Integrated Disaster Risk Management and Resilience Program and Resilience Risk Management Disaster Integrated Urban Development Project Development Urban Morocco Urban T Urban Morocco Infrastructure and L Infrastructure Infrastructure, Urban Development and Mobility Project and Mobility Development Urban Infrastructure, S ir Pollution Prevention and C Prevention Hebei Air Pollution T Urban Development Project Development Urban eighborhood Upgrading Project Neighborhood Upgrading and Poor Development Urban A B S Flood Risk Management 2016 FY Approval 71 74 72 76 73 77 75 78 67 79 70 62 63 69 65 66 64 68

S.no

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 90 90 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 91 91

Total Commitment ($m) Commitment TOTAL: 9,720.934 95 12 44.89 70 119 46.75 350 99.75 200 200 46.75 87.78 80 195 50 250 200 35 Country ietnam ietnam urkina Faso ongo thiopia anzania Rwanda Republic Kyrgyz Guatemala Niger V T China Gabon Morocco Morocco Sri Lanka Brazil C E Mali V Argentina B angier; Fes asablanca; Marrakech; Marrakech; asablanca; oktogul City uluktu; T uluktu; obo-Dioulasso; other cities other obo-Dioulasso; gadir; Marrakech; Rabat; T Rabat; gadir; Marrakech; ho ddis Ababa alykchy; Kerben; S Kerben; alykchy; uenos Aires uenos amako asablanca; A asablanca; an T econdary cities (nationwide) cities econdary eresina eresina étouan; Fès; Meknès; Rabat; C Fès; Meknès; Rabat; anger; Tétouan; Zanzibar S iamey; other cities other Niamey; uatemala City Guatemala B Kigali; secondary cities Kigali; secondary T Noire Pointe Brazzaville; Jaffna; other northern other cities Jaffna; C T cities secondary Ouagadougou; B entil; other cities other Gentil; Port Libreville; Hebei B B C A uenos Aires uenos dditional Financing) A dditional Financing) A upport Project dditional Financing) dditional Financing) A A ontrol Program ontrol ransport S ransport dditional Financing) A dditional Financing) A iolence Prevention iolence ity of B of the City for upport Project ocal Development Project II Project Development ocal anitation Project ( Project anitation ervices Project ( Project ervices ransport Project ransport upply Project ( upply Project upply and Wastewater Project ( Project upply and Wastewater ho Urban Development and Resilience Development ho Urban and Use and T Land Use Urban ddis Ababa amako Water S Water amako an T ities Development Project ( Project Development Cities trategic overnance Project ( Project Governance Enhancing Municipal eresina C Urban Infrastructure and V Infrastructure Urban Urban Water S Water Urban Zanzibar Urban S Urban Zanzibar Urban Water and S Water Urban Integrated Disaster Risk Management and Resilience Program and Resilience Risk Management Disaster Integrated Urban Development Project Development Urban Infrastructure and L Infrastructure T Urban Morocco Infrastructure, Urban Development and Mobility Project and Mobility Development Urban Infrastructure, ir Pollution Prevention and C Prevention Hebei Air Pollution S T Urban Development Project Development Urban eighborhood Upgrading Project Neighborhood Upgrading and Poor Development Urban B A S Flood Risk Management 71 74 72 76 73 77 75 78 67 79 70 62 63 69 65 66 64 68 CIF) aint aint daptation daptation he most he most ank and financed by the ank and financed hey have been designed been designed have hey ) programs are engaged are ) programs SSN FF) managed by the S FF) managed by CA limate Investment Investment Climate (e.g. ank Group his modality has been piloted in has been piloted his modality limate A the Climate ucia, through building housing finance markets; markets; finance building housing finance; funding housing poor;for the housing finance and housing; supplying affordable response. crisis housing finance roup, or a concessional fund managed by fund managed by or a concessional ank Group, aint L aint ocial safety net ( net ocial safety ach of these areas is critical in the building is critical areas these ach of ucia Development B ucia Development L (PPCR) Resilience Climate for Program Pilot ( Funds Investment the Climate managed by • • • • • E housing finance and efficient a sustainable of people that will benefit — a system system and will help levels income many from housing. T affordable them obtain though, is the work, aspect of important the needs of that address systems creating while levels, income at different households scaled be sustained, that can building a system sector. the private to and oriented up, (IBRD/IDA/CIF): Finance Adaptation Climate households individuals, incentivize to In an effort in climate invest proactively to and businesses financing institution an intermediary adaptation, the World from loan a concessional leverage can B B the World Funds) and provide more affordable financing for financing affordable more and provide Funds) investing in interested businesses and households of Examples their resilience. enhance to roofs, include hurricane-proof could investments and structural harvesting rainwater drainage, T retrofits. S ( Facility Finance Disaster Responsive Safety Nets: Safety Responsive Disaster S poor to protection enhanced in providing by been affected that have households T disasters. natural Insurance roup is ank Group hese include: hese he team’s focus is on focus he team’s aribbean region. region. aribbean to provide a comprehensive a comprehensive provide C to roup housing finance team team housing finance ank Group ank and IF development of a typology of informal informal of a typology of development profiling; risk housing and associated a home retrofitting of and design preparation risk while disaster mitigate to product enabling title deed formalization; simplify to environment enabling regulatory processes; formalization property viable financial instruments identifying housing. of informal retrofit resilient for urrently, a resilient retrofit of informal of informal retrofit resilient a urrently, he World B he World Financing (IBRD/IDA): Housing Finance T the of parts with other in coordination works B World the entire across that reaches approach chain. T housing value governments to provide areas strategic five the tackle to the tools countries in client T above. listed challenges assistance Technical of Informal Retrofit Resilient / GFDRR): (GSURR Housing TA programs and national governments As local the lack address fully been unable to often have with building or construction compliance of individuals of exposure risk reduce to codes informal for opted that have and households B the World housing solutions, assistance technical various provide able to which include: services offering activities, • • • • C activity assistance housing technical the throughout is being implemented and C Latin America 3 — Annex and l Individua ld Househo inancing l F Leve and Services

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 92 92 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 93 93 ities Program” Program” Cities ompetitive ommunity Resilience program program Resilience ommunity y ommunit building an enabling institutional, policy, and policy, building an enabling institutional, risk reduction; for environment regulatory ustainable and C ustainable ank’s engagement with civil society, promote promote civil society, with engagement ank’s he Inclusive C he Inclusive make is to this program of he objective C l Financing Leve and Services assistance Technical (GFDRR): Resilience Community Inclusive T the World enhance to in 2014 established was B risk and climate disaster community-led inclusion social integrate and to management, It emphasizes DRM investments. and gender into of drivers the underlying socio-economic marginalization, such as poverty, vulnerability, and supports governments’ and accountability, a at resilience level local strengthen to efforts assistance technical of Examples national scale. inclusive for building include capacity activities developing globally; risk management disaster in frameworks resilience inclusion and social hazard community-based Pakistan; Karachi, as as well and risk mapping in the Philippines; empower to practice best Japanese leveraging for and people with disability women elders, and Nepal. in the Philippines resilience (GFDRR): Schools Safer T they and the communities facilities, school Key hazards. natural to resilient more serve, activities assistance technical of components include: out under this program carried • financing urban infrastructure investments. investments. infrastructure urban financing the towards was channeled financing Findeter “S sub- 20-30 between finance to and is expected transportation, urban from ranging projects as well and sanitation housing, water social infrastructure. and education as health ocial, ogether ogether ommunity ommunity anuatu. anuatu. olombia (Findeter), olombia (Findeter), his was the first time the first his was echnical assistance is assistance echnical made more affordable with a affordable made more onga, and V 31 ocial Protection and Labor; S ocial Protection lobal Global separate three across ank staff ankengruppe. T ankengruppe. urrently, the Responding to Disasters T Disasters to the Responding urrently, ommunity of Practice (R2D2) brings together (R2D2) brings together Practice of ommunity he more competitively priced financing was financing priced competitively he more passed on to end borrowers which included borrowers end on to passed banks intermediary and other municipalities provided guarantees to a state-owned a state-owned to guarantees provided MIGA guarantee. without a sovereign enterprise, T D 95 million in guarantees million in guarantees USD 95 issued MIGA non- the risk of against coverage provide to of for a period financial obligations honoring of from loan a non-shareholder for 10 years up to B KfW guarantee. In the case of the Financiera the Financiera of In the case guarantee. MIGA in C initiative de Desarollo In an effort to enable individuals, households households enable individuals, to In an effort financing affordable access to and businesses a financial investments, resilience for bank such as a development intermediary or private (either from financing leverage can public investors) Resilience Financing (backed Financing (backed Resilience Guarantee): a MIGA by Bonds and guarantees Bonds Urban, Rural and Resilience; as well as Finance as Finance as well and Resilience; Rural Urban, C while the Inclusive and Markets, at GFDRR thematic program (ICR) Resilience assistance technical for financing grant provides in countries client which assist initiatives social and enhancing in-country establishing T systems. protection responsive disaster establish to being provided in Fiji, Jamaica, systems protection social T the Philippines, Practices: S Practices: World B World C to buffer individuals from shocks and equip shocks from individuals buffer to and create livelihoods their improve them to themselves for life build a better to opportunities programs SSN of Examples and their families. which help transfers, cash include emergency level increased and poverty of the cycle break experienced vulnerability socio-economic of post-disaster. households poor many by C he hese hese ettlement ettlement roup ank Group ervices Project Project ervices omprehensive omprehensive DD) programs programs CDD) ocial S ank recognizes that ank recognizes ommunity-based S ommunity-based ), which financed the completion completion the ), which financed he World B he World SS disaster risk management challenges; risk management disaster or developing tools existing adapting locally address to tools new and problems; identified risk disaster amongst communities creating technology and local experts management open of the use promote to communities open open data, technologies, source and open platforms. standards DD across a range of low to to low of a range CDD across ank has supported ommunity Driven Development ( Development Driven ommunity Financing financing: development Community-driven C transparency, of on the principles operate demand- empowerment, local participation, accountability, downward greater responsiveness, has Experience capacity. local and enhanced and transparent clear that when given shown capacity, appropriate information, to access rules, effectively can poor people and financial support, and priorities community identify to organize partnership in working by problems local address supportive and other governments with local T institutions. important and actions are CDD approaches poverty for strategy effective an of elements T development. and sustainable reduction B countries conflict-affected, and middle income, T needs. urgent of support a variety to post-conflict supply and sanitation, include water nutrition construction, center and health school access rural and infants, mothers for programs One micro-enterprises. and support for roads, World B by the financed such project the C is Rekompak, Rehabilitation and Reconstruction Project which Project and Reconstruction Rehabilitation a following of homes rebuilding the financed of the town to close in 2010 eruption volcanic is the Another Indonesia. in Java Yogyakarta — C Kahirapan sa Laban Kapitbisig S of Delivery and Integrated (KALAHI-CID million, USD 265 worth projects 6,000 to close of • • ave ave he afer afer onga and he S O, and UNISDR; O, fR), an initiative an initiative fR), C hange, S uild Change, amoa, T amoa, ode for Resilience Resilience ode for ucia, S chools program, GFDRR chools program, urkey. Programs in small in small Programs urkey. aint L aint afer S afer S ode for Resilience ( Resilience ode for ducation, to integrate risk considerations risk considerations integrate to ducation, alvador, Indonesia, Jamaica, Mozambique, Mozambique, Jamaica, Indonesia, alvador, improving school construction practices; and practices; construction school improving safety. on school progress global monitoring identifying a list of technical challenges challenges technical of a list identifying and risk assessment disaster to related reduction risk disaster identification, preparedness; and disaster tailored providing by building capacity tools open source of on the use training specific disaster address to and open data statements; problem risk management refine to in expertise investing local to solutions technology-based anuatu) are currently in the pipeline. in the pipeline. currently are anuatu) chools Program is currently implementing implementing is currently chools Program hrough the S hrough o strengthen community resilience to natural natural to resilience community o strengthen works with national and sub-national agencies, agencies, with national and sub-national works Works, Public Finance, of including Ministries and E T sectors. education and existing new into • • T of with a wide range collaborates also Facility Nations including United partners, international UNESC such as UNICEF, agencies international NGOs such as B international and private and Plan International; the Children, T such as Arup. companies sector S countries in eight activities assistance technical regions which include: Armenia, five across El S and T Peru Nepal, ( island states V Resilience: for Code T Lab Innovation innovation, through disasters supports C with disaster technologists local that partners digital create to experts risk management DRM and other for solutions and hardware C civic-minded activities. to willing partners country identifies first to resources technical financial and commit which and tools capacity in developing co-invest to meant innovations technological leverage natural to resilience community strengthen include: activities of Examples disasters. • • •

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 94 94 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 95 95 hus, the need to the need to hus, strengthening financial performance; financial performance; strengthening regulatory, an enabling legal and developing for framework and policy institutional sub-national borrowing; responsible urrently, only 20 percent of the largest 500 the largest of percent 20 only urrently, upporting cities towards creditworthiness is creditworthiness towards upporting cities reditworthiness Initiative helps helps Initiative Creditworthiness he City Technical assistance Technical Initiative: Creditworthiness City unable to are world in the developing Cities demand infrastructure fund their growing financing of sources on traditional relying by international and governments central from T alone. aid organizations long- of sources private and access innovate and markets capital local financing through term a priority. is becoming partnerships commercial such financing, access to in order However, creditworthy, themselves prove first must cities planning development managing finances, by that using methods and engaging citizens and transparency. sustainability emphasize C creditworthy are world in the developing cities to their capacity constricting – severely in public infrastructure. investments finance S longer- unlocking larger, in step a crucial first that provide investments sustainable term populations resident to services critical development. urban climate-smart through T by creditworthiness higher achieve cities • • l Leve City- and Financing Services Within a few years the community has been the community years a few Within land. Community its of tenure secure able to with a committee sit on representatives is improving Infrastructure officials. local while funds being renovated, are and houses this and of residents for available kept are take to in the city poor communities other loans. out further home improvement ub-projects financed financed ub-projects The development plan brought in water supply, supply, in water plan brought development The the for and provided and electricity drainage, the onsite that realigned homes of construction USD 40K, of a budget provided ACCA The lanes. USD 10K as committed which the community of with the upgrading, infrastructure for a grant home improvement into revolved remainder more revolve enable the funds to To loans. the number of increase and to quickly, the the money, access who could households should be kept decided that the loans community and repaid USD 500, a maximum of small, to was rate interest period. The within a six-month in remaining percent with four percent, eight percent and four group savings the community development community the district to moving lending capital. overall its increase fund to The Asian Coalition for Community Action Action Community for Asian Coalition The community funding for seed provides Nong Duang In the finance. development PDR, Lao in Vientiane, community Thung a project, pilot first its conducted the ACCA was money The housing program. community group savings a district through provided that mechanism a district-wide for allowing in land and assisted development facilitated the first was This squatters. for negotiations a long-term being granted squatters of case the threat land. Given on publicly owned lease an developed the community eviction, of community of with the help project upgrading survey helped to architects These architects. the savings expand and map the settlement, households, include all the squatter to group plan. development a new and develop Case study: Community development development Community study: Case 2012) (Archer supportfinance through this project include small-scale water water small-scale include this project through and centers care day buildings, school systems, and bridges. as roads as well stations, health benefitting over 1.6 million households in the households 1.6 million over benefitting in the and provinces municipalities poorest S 2002. since Philippines ank URB ction ompact ompact URB: ) is a decision- ’s capabilities to to capabilities ’s URB URB C is proxy data: if a data: URB is proxy ires, Johannesburg, Johannesburg, Aires, uenos ustainability ( ustainability ’s ultimate target is financial transactions is financial transactions target ultimate ’s explores an array of climate-smart climate-smart of an array explores transport efficient more — from options buildings; retrofitted to systems realistic; are what goals defines changes and policy technology simulates action; and of course the best assess to cost- to determine financials project analyzes on investment. and returns savings hennai – amongst others. others. Chennai – amongst and angalore, SNTA help utilities to loans bonds or bank involving finance market-based access or municipalities the tackle to guarantees without sovereign face. countries developing problem urbanization Sustainability: Urban for Action Climate CURB: B the World launched by planning tool A new and the C Cities with C40 in partnership A Climate partners, and other Mayors of S Urban for support tool meant to provide tailored analysis analysis tailored provide to meant support tool and plan cost-effective prioritize, help identify, to carbon emissions. reduce to ways and efficient cost, estimate to data on city-specific Relying climate of a range of and impact feasibility C scenarios, actions under different • • • • in turn decisions can smart investment These livelihoods, improve jobs, create help cities — risks climate to and build up resilience One of the poor and vulnerable. for especially C of features the notable specific information, or other data is missing city peer cities from data to use officials it allows As a approaches. plan targeted to or countries C use can all cities result, or income size of regardless their full potential, sort of this tools free the first It is one of level. a across be applied comprehensively that can developing in both cities for sectors of range than 100 cities More countries. and developed the C deploy plans to have the work across including B tool B hese hese his work his work cademies cademies onds. T onds. he initiative he initiative ore funding ore ub-National : ) Program under ) Program 32 earning (MILE), and the earning SNTA , PPIAF supports SNTA hrough improving the demand side of side of the demand improving sound, by developing financing and projects; climate-smart by financing side of the ‘supply’ improving investors. sector private engaging with rowth Growth Green (PPIAF), Korean Facility dvisory o help achieve these aims, the Initiative has the Initiative aims, these o help achieve ssistance ( Assistance echnical has a goal of assisting 300 cities in 60 low- and 60 low- in cities 300 assisting of has a goal source own enhance to countries middle-income capital climate-smart implement revenues, ratings, their credit improve plans, investments tax and utilize projects, PPPs their structure partners Implementing financing. increment Findeter, UN-Habitat, include: C40 Network, L of Institute Municipal and Implementation Programs. T Programs. and Implementation C Institute. Development Korean Infrastructure include the Public Private partners A Foundation. and the Rockefeller Partnership, should see in the Initiative participating Cities strengthened services; municipal improved creditworthiness; improved fundamentals; financing. local to access and increased Assistance Technical Sub-national (PPIAF) (SNTA) Program • • T A Creditworthiness City established F is uniquely qualified to help municipal to help municipal PPIAF is uniquely qualified key of the some to respond and cities officials and with urbanization associated challenges T decentralization. financing private to access sub-national entities’ B Municipal through example, — for can include reforms to institutions, policies, policies, institutions, to include reforms can necessary frameworks and legal/regulatory S PPIAF’s PPPs. sustainable for T by used tool allocation capital a powerful are build and to countries developed in many cities far so but have infrastructure, urban maintain countries. developing in many been untapped F helps build the capacity of government government of build the capacity PPIAF helps PPP into and enter to prepare officials T partners. with private arrangements

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 96 96 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 97 97 ) his uenos uenos CREMA ahia Road ahia Road uenos uenos orporation orporation he development he development ustainable Investment Investment ustainable ank provided financing and technical technical financing and ank provided he International Finance C Finance he International ) provided technical advisory support in advisory technical C) provided enhance the provision of water and water of provision the enhance of low- the benefit for services sewerage those for in particular people, income areas; vulnerable people living in highly segments road high priority improve network; road the Borrower’s of flooding; and urban mitigate the of support the reactivation and strengthen economy Borrower’s competitiveness. regional its he use of performance-based contracts can help can contracts performance-based of he use is responsible for guaranteeing the loan will the loan guaranteeing for is responsible is the B such of An example be repaid. 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(IF the and in defining the contract structuring contract. of the CREMA specifications detailed roup ank Group generally tend to lend to lend to to tend A generally ank, the sovereign government government ank, the sovereign is a decision-support tool is a decision-support tool ACE It starts with benchmark data collection, collection, data benchmark with starts It an energy benchmarking module an energy performance key which compares among peer cities; (KPIs) indicators identifies which module prioritization sector a potential the greatest that offer sectors and savings; energy-cost to with respect module which selection an intervention tried-and- of a “playbook” functions like locally select and helps EE measures tested EE interventions. appropriate ssistance Program Program Assistance Management ector also lends directly to sub-national government sub-national government to lends directly also and some republics in federal such as states in such cases, However, governments. local signed are agreements while financing or loan sub-national governments between directly B and the World While IBRD and ID While B the World national governments, Sub-sovereign lending (with lending (with Sub-sovereign Guarantee): Sovereign Financing TRACE is designed with the intention to to with the intention is designed TRACE in the deployment decision makers city involve process. assessment an on-location through goes and and decision makers, experts involving authorities to city report ends with a final EE interventions of with recommendations context. individual the city’s to tailored nergy Energy the by utilized A decision-support tool S MAP), TR (ES under- quickly identify help cities to designed and improvement evaluate sectors, performing and sectors and prioritize potential, cost-saving (EE) intervention. efficiency energy actions for passenger sectors: six municipal It covers and water buildings, municipal transport, and waste, solid public lighting, water, waste modules: three of It consists and heat. power • • • Tool for Rapid Assessment of City City of Assessment Rapid for Tool – ESMAP: (TRACE) Energy he ond” ). of of SA antander ’s USD 2.8 C’s ogística). T ogística). ransport Project, Project, ransport ank (IDB he project bond he project ão Paulo São Paulo of tate anco S anco he pilot will be open he pilot roup offers two types types two offers ank Group ustainable T ustainable he bond is expected to be piloted be piloted to he bond is expected his guarantee provided specific coverage coverage specific provided his guarantee ank developed a new “Project B “Project a new ank developed supporting the consider to ank is ready merican Development B Development American antander’s loan to the S to loan antander’s overnment, the Government, the Brazilian of t the request urrently, the World B the World urrently, Bonds and guarantees Bonds bond: Project A B World financing market capital help attract to concept such as roads, projects infrastructure to T airports and ports. railways, seeks at a time when Brazil has been developed private successful of years twenty leverage to infrastructure in operating involvement sector of the role increase to and concessions assets in financing infrastructure. market the capital risk sharing greater It is aimed at encouraging domestic for opportunities new and creating and operators investors, and international T builders. for financing raise to months in the coming the under concessions of number a selected program investment logistics Government’s em L de Investimento (Programa B World of commitments financial with new issue pilot USD 500 million. T up to such as the IFIs, other of the participation to Inter- Project-based Guarantees (MIGA): Guarantees Project-based C guarantees, (1) loan guarantees: project-based of default service debt to related the loan whereby specific meet to failure Government’s by caused obligations in and/ or performance payments guarantees payment (2) and, project; a to relation payment related on non-loan defaults cover in example, For the Government. obligations by million in guarantees USD 361 issued MIGA 2014, B line to under this product pain. T Spain. S of ão Paulo S the São Paulo for and other capital expenditures. IF expenditures. capital and other to access improve to is intended million in loans sector. the education lending for medium term C ypically, ypically, roup as an ank Group he assets typically remain on remain typically he assets y engaging at the sub-national y engaging at the sub-national is interested in increasing its its in increasing C is interested to help increase its capacity to to capacity its help increase C to . In general, the guarantee is available is available the guarantee C. In general, enhance understanding of a city’s resource resource a city’s of understanding enhance a disaster; to respond effectively needs to management and planning ex-ante strengthen and disasters; emergencies to in response execution and the management strengthen post-disaster resources budgetary of and recovery, response, emergency for and public infrastructure; of reconstruction emergency of coordination enhance national the from and management response government. of levels municipal to uilding on the success of on-going national-level national-level on-going of success uilding on the haring Facility which the IF chool Risk Sharing Facility hese financing mechanisms allow a client a client financing mechanisms allow hese City Risk Transfer (GFDRR/GSURR/Treasury): Risk Transfer City B risk pooling and on catastrophe engagements will assistance technical the proposed transfer, in transferring interested engage municipalities reinsurance the private risk to catastrophic B the World with market, B intermediary. the technical globally, cities six in up to level cities with credit-worthy work will assistance national- strong with world in the developing this agenda. 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The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 98 98 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 99 99 ank anzania anzania wedish wedish MID ES o date, ooperation ooperation he time taken to to he time taken and the World B C and the World frica, by streamlining approval approval streamlining by frica, ast A ast ida), the IF the Sida), gency ( gency MID is working with central banks, banks, with central MID is working ES frica. uch improvements can help to better better help to can uch improvements o meet the needs of a rapidly changing world, changing world, a rapidly the needs of o meet are jointly working on a project to support to on a project working jointly are in markets securities of functioning the better A and exchanges stock regulators, securities regulations simplify to: stakeholders other in, and investing issuing, for and procedures strengthen and bonds; establish trading market of build capacity infrastructure; market of the regionalization facilitate participants; and support demonstration markets; securities T transactions. and replicable bond million in new USD 950 has facilitated in E issues T processes. and regulatory and T in Kenya bond issues approve respectively. 60 days and 45 to has reduced S investments. resilience urban incentivize Lab (GFDRR): Innovation T science, of Lab supports the use Innovation new in promoting and open data technology, to original tools of and the development ideas countries in vulnerable decision-makers empower innovations Recent their resilience. strengthen to to access enabled better in the field have and a risk information and climate disaster this and use manage, create, to capacity greater Lab within the Innovation Initiatives information. decision-making and positively inform which can of urban and planning the design influence for include the Open Data investments resilience the DRI), which applies (Open Initiative Resilience to movement open data the global of concepts natural to vulnerability reducing of the challenges change. climate of and the impacts hazards Efficient Securities Markets Institutional Institutional Markets Securities Efficient Program: (esMid) Development S the MID program, Under the ES C Development International A antander. anco S anco ão Paulo São Paulo of tate hese are key entry points points entry key are hese l Leve y- ountr creating enabling environments for private private for enabling environments creating projects; infrastructure in participation sector to capacity the lack of addressing that can projects ‘bankable’ transact and investments; private attract through and awareness capacity growing country sharing with developing knowledge and opportunities issues on key governments infrastructure sector with private development. D 300 million 300 USD a includes financing project otal • • work in its lies relevance PPIAF’s Importantly, for enabling environment on the upstream stage early projects, partnership public-private and pre-feasibility conceptualization, project T development. project F provides technical support to support to technical PPIAF provides primary avenues: in three governments • and Financing Services Infrastructure Public Private (PPIAF): Facility Advisory if change sensitivities climate integrating for in infrastructure- invest is to sector the private change mitigation and climate related Specifically, countries. in developing adaptation to plan and need help officials government legal design projects, climate-friendly prioritize that facilitate environments and regulatory incorporate such projects, of the development project into responses change specific climate pay to funding subsidy find and justify designs, private that make risks or mitigate costs for project and regulate non-viable, participation closure. contract after implementation assistance Technical C funds as well as financing from B from as financing funds as well which consists of investments in the state’s state’s in the investments of which consists activities. and related infrastructure transport T S million in USD 129 IBRD loan, ylhet. ylhet. angladesh angladesh ountry ountry ). C uch generous uch generous A often charges charges A often has made equity C has made equity -financed urban urban -financed A ank for Reconstruction and Reconstruction ank for has provided financing to financing A has provided roup provides long-term, long-term, provides ank Group angladesh to respond to emergency events events emergency to respond to angladesh he project development objective is to is to objective development he project he World B he World clients have tapped into both these funding these both into tapped have clients resilience urban when implementing sources In addition, IF projects. to capital venture and offered investments projects. resilience firms implementing private Development International The (IDA) Association countries, to low-income financing offers more with substantially on terms extended and with typically rates interest generous from available periods than are longer grace S market. finance the private to clients enabled country often have terms ID resilience. in urban invest periods can and repayment interest or no little including years, 38 to 25 over be stretched the last period. 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GeoNode, a free and open source catalogue catalogue source and open a free GeoNode, and visualizations; risk data of and OpenStreetMap; mapping Community disaster realistic providing a tool inaSAFE, impacts; and their potential scenarios which uses Assessment Impact Spatial sets data spatial imagery and local satellite of extent the entire evaluate efficiently to the and facilitate a disaster damage from for estimate a financial of development supports work This recovery. a country’s efforts Recovery Resilient GFDRR’s before information providing by process and is undertaken a damage assessment validation. independent providing by the for online tool a new ThinkHazard!, in developed community, development French (the with BRGM collaboration and Camptocamp, survey), geological development which enables Deltares, hazard natural identify to specialists and incorporate area a given for information design. project it into reduce to measures ctivities include: ctivities his new initiative is working to promote a promote to is working initiative his new

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The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 100 100 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 101 101 iete iete O he ao Paulo. ao Paulo. tate of S of tate he national finance; USD A finance; he project brought brought he project ão Paulo in São Paulo of tate omponents include: omponents D 300 Million in IBRD USD 300 combines he project guarantee. T guarantee. a MIGA with finance private state’s the improve is to the project of objective safety and efficiency and logistics transport in environmental capacity its while enhancing It consists risk management. and disaster the S by investments of and infrastructure transportation sustainable rehabilitation the specifically activities, related selected roads of about 800 kilometers of inland to and connectivity their proximity for two of reconstruction and railways, waterway the T of navigability the enhance to bridges and other complex, corridor inland waterway T safety. road improve to works the intermediary, was Brazil of government the S on-lending to for allowing T financing Million in Client financing, USD 129 with backed financing in private and USD 361 sovereign non-honoring of MIGA a 12-year guarantee. financial obligations (NHSFO) and Development Urban Tho Can The is aimed at reducing Project Resilience improve area, core flood risk in the urban center city the between connectivity growth risk urban low and the new city of the capacity and enhance areas, risk in manage disaster to authorities C City. Tho Can and Flood risk management sanitation; environmental and development; corridor Urban spatial improve to systems Management and transport. planning, flood risk management IDA, financing from combines project The leveraging while also IBRD and the Client, T SECO. from donor finance million in ID USD 125 together million USD 62 million in IBRD finance, 125 SD 10 million in SEC and U finance in Client million. of USD 322 total for a finance, ank and the ank, the ransport Project, Project, ransport and/or IBRD A and/or uropean Investment Investment uropean ustainable T ustainable urope Development B Development urope D 361 Million in and USD 361 ao Paulo), he project is aimed at improving the is aimed at improving he project uro from other international financing international other from uro ao Paulo S ao Paulo tate of S of tate t times, country clients have blended have clients country t times, ank, the Islamic Development B ank, the Islamic Development ouncil of E ouncil of eismic Risk Mitigation Project (USD 400 eismic Risk Mitigation Project he S S T financing as well as with donor contributions contributions well as with donor financing as guaranteed MIGA a single project. finance to be blended can also financing commercial financing. of sources with other Million USD 300 together brought example, for the Client Million from USD 129 in IBRD finance, ( their own resources with ID resources their own A Blended Finance (IDA/IBRD/MIGA/ Finance Blended Capital): and Private IFC/Donor Germany. of Institute Credit Reconstruction C institutions including the E institutions million). T million). earthquake, a potential for preparedness city’s capacity technical and institutional the enhancing and emergency management disaster for public facilities critical strengthening response, and supporting resistance, earthquake for building of enforcement better for measures enabled modality this project Importantly, codes. 1.5 an additional leverage to the government billion E B RD-financed urban urban an IBRD-financed of An example the Istanbul includes investment resilience S offers financing to middle-income countries countries to middle-income financing offers low-income creditworthy and some rate. interest at a market-based governments able to are countries middle-income While are these terms, at non-concessional borrow longer grace and have expensive less still the Over loans. periods than commercial financing IBRD has provided years, five last resilience urban 31 towards countries 28 to billion. USD 4.76 of in the amount projects The International Bank for Reconstruction Reconstruction for Bank International The (IBRD) and Development ank he housing he program development development he program uch resources are critical in enabling in enabling critical are uch resources mergency Response Response Emergency arthquake specific example in which resources resources in which example . A specific ietnam. T ietnam. countries with resources based on country- based with resources A countries D 55.1 billion ank financing and supporting USD 55.1 results. PforR is available to all World B all World to is available PforR results. in 2012, creation its Since member countries. of the use in increase has been a steady there 46 approved are there 2016, June 7, s of A PforR. USD 11.6 billion of totaling operations, PforR B is the An example programs. government of National Urban Million Results-based USD 250 in the Northern Mountains Program Development in V of the capacity strengthen is to objective plan, to cities Northernparticipating Mountains infrastructure. urban and sustain implement (CRW): Window Crisis Response of as a source serves Window Crisis Response providing resort, of the last financing emergency ID of severity such as the specific circumstances of sources alternative of a crisis or the absence financing. S economic severe to respond to countries or public health disasters major natural crises, safety financing by and epidemics, emergencies populations or reconstructing affected for nets a natural by destroyed assets physical basic http:// to refer information, more For disaster. ida.worldbank.org/financing/crisis-response- window accessed were Window the Crisis Response from was disaster a natural of in the aftermaths E the Nepal credit line of An emergency Million). (USD 300 housing for provided Million was USD 200 of budget and USD 100 Million for reconstruction the following Nepal to extended support was T earthquake. April 2015 devastating low- to grants will provide credit reconstruction 55,000 roughly rebuild to homeowners income support while budget areas, in rural homes expand Nepal of will help the Government credit as support as well efforts and recovery relief the country’s strengthen to measures policy the was example Another sector. financial - his -DDOs oan oan olombia Disaster olombia Disaster olcano; and the olcano; overnment his led the Government -DDO proved to be a valuable be a valuable to -DDO proved D 150 Million). Here the Here (USD 150 Million). -DDO) atastrophe Risk Deferred Drawdown Drawdown Risk Deferred atastrophe CAT olombia to develop plans for reaching a reaching plans for develop olombia to -DDOs enable countries to plan efficient plan efficient to countries -DDOs enable approach helps build capacity within the country, within the country, build capacity helps approach and leads and efficiency effectiveness enhances program sustainable tangible, of achievement to development objective was to strengthen strengthen to was objective development risks reducing for program the Government’s Key events. natural adverse from resulting a of include expansion the loan of outcomes volcanic, seismic, (e.g. network monitoring hazard people living in high of resettlement hydromet); V the Galeras of zone hazard DRM plans for local of development successful T municipalities. 338 C of 2010-2014 in its municipalities 790 of total close its Plan. Following National Development the CAT in 2014, financial both reassuring financial instrument, the reducing and the population by markets the following on markets effects negative disaster. of national states of declaration (PforR): Results for Program include using a unique features PforR’s and and processes, institutions own country’s the to funds directly of linking disbursement T results. specific program of achievement with a C ( Option responses to natural disasters – by serving as a as serving – by disasters natural to responses a following liquidity immediate of source critical a state of as the declaration trigger such “soft” CAT disaster. a natural like emergency of with in countries be implemented only DDOs can in place, program risk management a disaster managed emergencies better ensure which helps C is the An example in cities. L Policy Development Risk Management Development Policy Loans with Catastrophe with Catastrophe Loans Policy Development (CAT-DDO): Option Drawdown Deferred CAT important to maintain financing bridge provide other while funds from programs, development such as donor aid or reconstruction sources CAT Importantly, being mobilized. are loans

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 102 102 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 103 103 A ustainable ustainable eychelles’ eychelles’ onservancy onservancy o this end, o this end, the ID o this end, ank with interest in ank with interest ature C he Nature waps with a policy-based with a policy-based waps s to buy back – at significant discount – the discount – at significant buy back s to A financing. S eychelles, whereby T whereby eychelles, hese serve as an innovative way to replace replace to way as an innovative serve hese Insurance Risk Pools: Catastrophe Multi-country to enable countries risk pools Multi-country natural of types select bundle their risk to the from insurance disaster and access hazards health a group Like market. reinsurance private in reduced risk results plan, pooling catastrophe reinsurance to access and greater premiums guarantee can be utilized as a means to promote promote to as a means be utilized can guarantee In addition, resilience. change for policy positive be used can a swap from resulting savings resilience financing a specific urban towards been have clients recently, More investment. B the World approaching A potential swap. a debt-for-resilience pursuing a emulate could swap debt-for-urban-resilience in the implemented swap similar debt-for-nature S in million debt-swap a USD 30 mobilized S of the Government for exchange marine conversation promote to commitment T change adaptation. and climate marine largest second the Indian Ocean’s (roughly be established to is expected reserve be classified to kilometers square 200,000 and will improve zones’) as ‘replenishment that fuel the the marine resources of protection sectors. tourism and fisheries island nation’s Debt Reduction Facility provides grants to eligible to grants provides Facility Reduction Debt HIPC creditors. commercial external, to owed debt http://www. to refer information, more For worldbank.org/en/topic/debt/brief/debt-relief Swaps Debt T IBRD interest with lower debt high interest or ID In general, such a mechanism helps countries countries a mechanism helps such In general, while levels, sustainable to debt bring their their S meet enabling them to better T targets. Goals Development ank s can be s can C eone. Project Project eone. s) experiencing very high very experiencing s) hese can take the form of debt debt of the form take can hese projects in 20 (+11) countries have have countries (+11) in 20 A projects D) outbreak and the and the outbreak D) (EV irus Disease he project development objective is objective development he project imilarly debt Similarly debt Facility. Reduction A Debt erving as a way to refinance higher interest higher interest refinance to erving as a way hese provide almost immediate access to bridge to access immediate almost provide hese buy-backs are available for highly-indebted highly-indebted for available are buy-backs (HIPC poor countries swaps or debt buy backs provided through through provided buy backs or debt swaps the ID loans, debt conversions can be an effective be an effective can conversions debt loans, resilience urban for up capital freeing of way T investments. in their left little leaving repayments, debt development critical finance to budgets own investments. resilience including urban programs, S Debt convergence: Debt included an emergency response component. component. response included an emergency integrated in any type of investment operation, operation, investment of type in any integrated climate or risk reduction disaster just and not 63 2011, Since projects. change adaptation IBRD and ID investment projects as a window to allow for for allow to as a window projects investment balances project remaining of quick reallocation or has occurred an eligible emergency after R CE Importantly, occur. is about to financing for recovery and reconstructions needs. needs. reconstructions and recovery for financing B World into integrated are As such, they T Contingent Emergency Response Response Emergency Contingent (CERC): Component components are geared to help operationalize help operationalize to geared are components and the Roadmap the WHO-led Ebola Response and complementing Plans National Response international with other in coordination working response. in the emergency involved agencies this under As such, the support provided a multi-partner emergency is part of Project countries the respective led by effort response with WHO and the UN. and coordinated to contribute in the short-term to the control of of the control to in the short-term contribute to the Ebola V services, health essential selected of availability D EV of impact socio-economic the and mitigate L Liberia, and Sierra in Guinea, D 390 (USD 390 Project Response Ebola Emergency T Million). his was his was urkey, which urkey, o date, the primary the o date, his was also the also his was hese risks risks hese overage (USD overage o increase the marketability of a bond, the of the marketability o increase and guarantees Bonds Guarantee): MIGA (with Bonds Sovereign raising for tool is an effective A bond issuance helps Doing so investments. project for capital well as enables financing as of sources diversify a However, base. investor a broader access the from stems clients many by challenge faced investors. private to the bonds of attractiveness T (e.g. guarantees MIGA utilize can entity issuing to enhance financial obligations) non-honoring of for In Hungary, the issue. of quality the credit C the Exim Funding example, aiming to guarantee a MIGA was million) 575 and lending capacity long-term ExIm’s increase small mostly of activity the export promote T and medium Hungarian companies. bond issue “public market” purely the first and the first coverage MIGA by supported a for coverage NHSFO its used time MIGA T transaction. markets capital rated were by MIGA backed time bonds first this SMEs, on AAA. And while this focused an for capital raise be applied to could modality payment obligation is unconditional, irrevocable irrevocable is unconditional, obligation payment T defenses. subject to and not commercial are coverage of this beneficiaries government to loans private that provide lenders the. are projects infrastructure for entities a brownfield is covering FO NHS example, For in T project expansion rail metro congestion, the traffic reduce to is intended the of the access air pollution, and enhance population. the urban for public transport Funds: Equity Private faced the risks against is provided Insurance in developing investors equity private by T economies. market frontier civil unrest, stability, include: government framework. regulatory and fragile ank 2012). GIIF) aribbean states states aribbean merican American entral atastrophe Risk atastrophe merica Latin America frica, RIF), a multi-country RIF), a multi-country CC RIF member countries RIF member countries hus CC aribbean C aribbean aharan A aharan S ub- sia Pacific. Index Index and Asia Pacific. aribbean FO coverage provides credit credit provides coverage NHSFO ’s lobal Index Insurance Facility ( Facility Insurance Index he Global program bringing together 17 C together bringing program 6 C and up to and territories RIF CC Republic. and the Dominican countries insurance parametric members its offers payouts immediate provides which coverage, thresholds pre-determined of upon exceedance such as a hurricane event hazard a natural of T or earthquake. for liquidity with fast-disbursing provided are in the aftermath efforts and recovery relief An events. natural by generated disasters of of such risk insurance the efficiency of example the January in Haiti following seen pools was external the first where earthquake, 2010 RIF payout. a CC Haiti was enter to money (GIIF): Facility Insurance Index Global T fund supporting the is a multi-donor trust markets local of and growth development and micro- pastoralists (including farmers, and disaster weather for entrepreneurs) countries, in developing insurance index-based primarily S and the C insurance to approach is an innovative insurance basis on the out benefits that pays provision level, rainfall (e.g. index a pre-determined of for rates) mortality livestock activity, seismic primarily working and investments, assets of loss and catastrophic weather from resulting capital, services the traditional without requiring events, B (World claims assessors insurance of Sovereign Non-honoring of – Financial Obligations (NHSFO) (MIGA): enhancement credit MIGA sovereign involving in transactions enhancement when the financial obligors, and sub-sovereign successful A successful countries. participating for markets risk catastrophe multi-country of example C pooling is the ( Facility Insurance

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 104 104 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 105 105 ank reasury reasury ’s portfolio portfolio C’s roup. ank Group. ank T C launched a ) utilizes its its ) utilizes o date, World B World o date, ank can raise capital to finance finance to capital raise ank can roup (WBG ank Group the largest is one of ank Group he B he World B he World B he World issuance Bond T a issue to capital and callable AAA rating funds inexpensively raise bonds to number of this low- offers and in financial markets, to its finance as development capital cost T clients. through projects investment resilience urban bonds and sukuk infrastructure bonds, green can In addition, countries bonds. (Islamic) projects resilience urban for capital raise or guarantees with MIGA bonds issuing by B the World support from advisory Bonds: Green T clients and provides bonds, green of issuers climate- finance to capital with this low-cost T projects. related USD 6.3 billion with 66 green over has raised supporting 50 projects bonds in 17 currencies, the IF Similarly, in 17 countries. help catalyze to in 2010 bond program green private for and unlock investment the market and energy supporting renewable projects sector the IF FY15, As of efficiency. energy USD has reached investments climate-smart of 13 billion supporting of USD 115 billion worth projects new USD 2 billion of with over projects, 2015. ending June year in the fiscal invested Leveraging Instruments roup together with private partners. Gemloc partners. with private together Group currency local of supports the development and countries, in developing bond markets the of attractiveness increase as such helps investors. and global local for markets overall launched in October 2007 by the World B the World by 2007 October launched in hese hese hey are designed to extend extend to designed are hey uarantees covers a specific covers Guarantees ased ocial Impact bonds help to convert intractable intractable convert bonds help to ocial Impact D 5 billion local currency bond for bond for currency Gemloc is a USD 5 billion local bond markets, 40 emerging in up to investment Global Emerging Markets Local Local Markets Emerging Global (Gemloc): Program Bond Currency s) catalyze catalyze s) (PCG Guarantees Credit Partial countries developing to financial flows private performance government mitigating critical by reluctant are financiers the private that risks debt private cover Guarantees assume. to entity’s) government (or a government’s against to a private specific obligations meet to failure for payments service debt meet or to project T a public project. B Policy- a to linked defaults debt commercial portion of implications. and program policy Government’s Partial Credit Guarantees (IBRD): Guarantees Credit Partial T terms. market and improve maturity (IBRD): Guarantees Policy-based social issues into investible opportunities. opportunities. investible into issues social than rather investors Under this model, impact NGOs and for capital provide governments help to programs scale to enterprises social Payment populations. poor and vulnerable a set of on achievement is based investors to with an measured outcomes predefined of not are If the outcomes evaluation. impact to required is not the government achieved, as such, the performance investors; repay sector. the private to risk is transferred a against coverage provide can guarantees government-related which are risks, number of including nature, commercial a purely of and not political. and currency regulatory, contractual, S Social Impact Bonds: Impact Social urban resilience investment through a public through investment resilience urban or sub- sovereign a it of – be bond issuance it is creditworthy. provided entity, sovereign pain, Spain, frica, he World he World AMC) is the hese services are are services hese outh A ystem ( ystem reasury Manager. reasury ringing together C). 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The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 106 106 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 107 107 ebanon. ebanon. ank) and ank) ow-Income ow-Income oncessional oncessional uropean Union. uropean anada, the he program provides provides he program yrian refugees yrian refugees uropean Investment Investment uropean oncessional Financing oncessional he C ank for Reconstruction and Reconstruction ank for ermany, C Germany, tates, xternally, the facility brings brings the facility Externally, reasury. F finance the Program for the Program F finance he SC P), and the Pilot Program for for Program Pilot SREP), and the yrian refugees while financing urgent while financing urgent yrian refugees uropean B uropean fter receiving USD 140 million in initial receiving fter ank, E ountries ( ountries L in Energy Renewable caling-up egal and T specific climate change challenge or sectoral sectoral challenge or change specific climate T response. S C T (PPCR). Resilience Climate (near- financing and highly concessional grants of element with a grant credits, interest zero to related supporting investments percent) 75 enabling infrastructure, development, urban policy, building, capacity (e.g. environment and management, zone coastal work), regulatory risk and disaster systems information climate sectors. critical other amongst management, Financing Facility: Concessional the C 2015, Launched in October of a source provides Financing Facility for S financing concessional and L in Jordan communities and host A and USD 1 billion pledged contributions, grant further grant IBRD that will generate to loans support to being offered are grants contribution, projects with two communities and host refugee these USD 340 million. One of over totaling over for job opportunities improve aims to S 200,000 in infrastructure municipal of rehabilitation brings facility the of design the Internally, Jordan. Finance, Development from colleagues together L multilateral from representatives together E (e.g. banks development B B Islamic Development Development, T Nations. the United financing from further brings together Facility Kingdom, the United Japan, donors: eight S the United orway and the E and the Norway Netherlands,

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The World Bank | Investing in Urban Resilience

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The World Bank | Investing in Urban Resilience

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O2 in greenhouse ustainable ustainable S ietnam. T ietnam. ities program works works program Cities ustainable he ssistance Program Program Assistance Management ector T frica and V frica limate Climate for Program he USD 1.2 billion Pilot ity Resilience Program and related work work and related Program Resilience he City In an effort to promote urban sustainability, while sustainability, urban promote to In an effort opportunity of the unique window recognizing the GEF- urbanization, with rapid that comes S supported Global Platform for Sustainable Cities: Sustainable for Platform Global to seeking countries in developing with mayors of hubs and resilient as inclusive cities transform growth. S Energy support to provides MAP), the initiative (ES T the of window is a funding (PPCR), Resilience Using a two-phase, Funds. 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CDP, ank, International Monetary Monetary ank, International ank Group ank for Reconstruction and Reconstruction ank for uropean Investment B Investment uropean uropean B uropean frican Development B Development frican his is illustrated by the experiences of Pralab, a Pralab, of the experiences by his is illustrated hese include: (i) limited access to income and income to access include: (i) limited hese he A hirteen of the most populated cities in the world are are in the world cities populated the most of hirteen ank ank, E T T s they assimilate into urban populations, however, however, populations, urban into assimilate As they T In a recent survey conducted by the C by conducted survey In a recent T Public investment was calculated as an average of the Project, nearly 70 per cent of company respondents respondents company of per cent 70 nearly Project, to risks continuity with business concerns identified their revenue to risks their supply chains and thus and the resulting change climate due to streams ( events weather extreme these impacted either already have risks half these within the next so do to expected or are companies years five annual percentage of public investment in relation to GDP from 2001 to 2011, based on data from the World B Development, E Development, B B Development American B and the World Fund it is likely that these numbers are conservative. And conservative. are numbers that these it is likely or support recognize to failing governments with many being to disincentives strong are there groups, these the by removal forced to discrimination – from counted authorities. employment; (ii) inadequate and insecure living and insecure (ii) inadequate employment; (iv) and services; (iii) poor infrastructure conditions; associated those particularly risks, to vulnerability that inhibit issues spatial with living in slums; (v) closely inequality and (vi) and transport; mobility as crime and as well exclusion socio-economic to linked violence. coastal trading hubs that are vital in global supply in global vital that are hubs trading coastal flooding to exposed them are of and many chains, of exposure the estimated example, For and storms. 2005 its from increase to is expected assets economic and USD 544 billion in Dhaka USD 8 billion to of level trillion in Guangzhou. USD 3.6 USD 84 billion to from UNISDR 2013) NEP and UNISDR 2015, (UN-Habitat,U suburb in Khon Kaen city in T city suburb in Khon Kaen to flood risks had increased area built-up the city’s of heavy a very experienced that when Pralab the extent was population than half the area’s 2011, more flood in shelter and ended up living in temporary evacuated et (Promphakping, months two for along the highway al. 2016). 8 9 11 12 5 6 7 his .pdf able 1.1. T able 1.1. ools, and ools, ities ank, Cities his guidance his guidance 02028013. ATE ank 2015) - https:// ank 2015) uilding-Resilient- ES OW%20R ext Practice, and the Practice, he Next DR, (UNISDR, eaders eres, T eres, ank,2013) http://documents. ank,2013) C FDRR, World B World GFDRR, ,2015) - http://unhabitat.org/books/ ,2015) ambridge, 2013) http://icleiusa.org/ 2013) ambridge, ttp://www.unisdr.org/files/26462_ ities More Resilient : A Handbook Resilient More Cities o Make overnment L Government ocal ities ( Cities afer endai Framework: “the ability of a system, system, a of “the ability endai Framework: A 2015). ities : From Risk assessment to to Risk assessment : From Cities uilding Resilient uilding Regulation for Resilience : Managing Risks : Managing Risks Resilience for uilding Regulation uilding Urban Resilience : Principles, T : Principles, Resilience uilding Urban B World UNEP, (UN Habitat, trategies uide to Resilience Resilience Guide to Pocket Governments’ ocal B ( redevelopment Practice (World B (World Practice C of University worldbank.org/curated/en/320741468036883799/ BD B0EPI0001300PU pdf/758450PU B S for www.gfdrr.org/sites/default/files/publication/ BRR%20report.pdf T How L For h 2012) handbookfinalonlineversion.pdf B wp-content/uploads/2015/06/ NAL.pdf Cities_FI pdf B L - http://www. 2015) Alliance and Cities (UN Habitat citiesalliance.org/sites/citiesalliance.org/files/ L Resilience%20handbook%20 ity Development Development City Change Into Climate Integrating S and HIS Alliance integrating-climate-change-into-city-development- strategies/ hepherd et al. study al. study et publishing the Shepherd t the time of hus, this report is not intended to be an in-depth be an in-depth to intended is not this report hus, F CCL

mall- and medium-sized cities are defined as between as between defined are cities Small- and medium-sized T A included UNISDR definition the 2009 similar to While 300,000 and 500,000 and 500,000 and 5 million and 500,000 and 500,000 300,000 respectively. in the S resist, to hazards to exposed or society community the effects from and recover to accommodate absorb, including manner, in a timely and efficient a hazard of its of and restoration the preservation through the definition and functions,” structures basic essential a wider address to broader is slightly resilience of included in T and stresses shocks of subset phenomena, natural by generated stresses includes risks. and socio-economic hazards, technological (2013), extremely poor was defined as living on less as living on less defined poor was extremely (2013), per day. than USD 1.25 and will account for an estimated 88 percent by 2025 2025 by 88 percent an estimated for and will account ( guide for making cities more resilient. T resilient. more making cities guide for excellent several of the form in exists already including: publications ities account for 82 percent of today’s global GDP global today’s of percent 82 for account Cities 4 3 3 1 2 6. 3. 4. 2. Endnotes 1. 5.

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 112 112 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 113 113 dvisory Facility Facility dvisory ore projects are based primarily in urban areas primarily in urban based are projects ore C http://www.100resilientcities.org/resilience#/-_/ http://www.resalliance.org/resilience Public Private Infrastructure A Infrastructure Public Private is able to provide guarantees on government on government guarantees provide is able to MIGA http://reliefweb.int/sites/reliefweb.int/files/resources/ on-core project are either partially based in urban in urban either partially based are project Non-core lending, provided that the covered loan is extended on is extended loan that the covered lending, provided terms. commercial GuidanceDocument.pdf IDResiliencePolicy USA areas or are national / regional scale resilience resilience scale national / regional are or areas projects. City-Final.pdf F) is a multi-donor project preparation facility facility preparation (PPIAF) is a multi-donor project and middle- developing of governments that helps in projects infrastructure develop countries income sector. with the private partnership 27 28 29 30 31 32 33 arious cademy, cademy, ction SIRR_singles_ ouldson, et al. et Gouldson, ) tool, and Preventive and Preventive ) tool, eijing ( URB C CRPP ssessment of of Assessment Rapid ool for uilding Regulation for Resilience Resilience for uilding Regulation trength methodology, Fiscal Risk Fiscal methodology, trength ondon, 4.8% for Jakarta, 7.8% for for 7.8% Jakarta, for ondon, 4.8% reditworthiness A Creditworthiness ), the ACE ustainability ( ustainability ccording to McKinsey, a knowledge deficit exists exists deficit a knowledge McKinsey, to ccording his is evident from analyses of impact and from the and from impact of analyses from his is evident heGlobalRisksReport2016.pdf o_res.pdf http://resilient-cities.iclei.org/resilient-cities-hub-site/ http://www3.weforum.org/docs/Media/ http://resilient-cities.iclei.org/fileadmin/sites/resilient- http://www.resilientcity.org/index. https://www.rockefellerfoundation.org/our-work/ http://s-media.nyc.gov/agencies/sirr/ xamples include the T Examples T http://cityresilience.org/ A If an income-based poverty line is to be used, it needs be used, line is to poverty If an income-based https://www.gov.uk/government/uploads/system/ For instance, the health costs and productivity losses losses and productivity costs health the instance, For xamples include B Examples 2015). nergy (TR Energy City as part capture and land value development, cadaster development. transit-oriented of uploads/attachment_data/file/186874/defining- disaster-resilience-approach-paper.pdf to be adjusted in each city or district to reflect the reflect to or district city in each be adjusted to (adjusted USD 1.25/day needs. non-food of costs local costs the cover not does parity) power purchasing for contexts. urban needs in many non-food of resilience-resource-point/glossary-of-key-terms/ L cities/files/Frontend_user/Report-Financing_Resilient_ risk analyses done with the DesInventar methodology methodology with the DesInventar done risk analyses that do disasters ‘small’ of the impacts that captures (ibid, (United databases included in disaster get not Nations United Nations 2011, (United Nations 2011). 2009). cfm?pagepath=Resilience&id=11449 associated with congestion are estimated at 1.5% of of at 1.5% estimated are with congestion associated L GDP for regional ão Paulo, and up to 15% for B for 15% and up to São Paulo, S the City program, A the Climate Risk Profiles, City Assessment, S Urban for Resettlement. T among fund managers regarding what “investing in what “investing regarding among fund managers investors and prevents means actually infrastructure” decisions investment such long-term examining from V level. asset-allocation strategic at the relevant of the primacy demonstrated have papers research asset- and management, in investment allocation asset of the variability of most decisions explain allocation outcomes. investment topics/resilience/ 25 26 23 24 21 22 19 20 17 18 16 15 13 14 ub- ond: P_a_00043. GLEP_a_00043. frica Infrastructure Infrastructure frica ondon. 43. ondon. 43. nvironmental age; Environmental rantham and Grantham conomy enice. enice. lliance Alliance eadership uilding Resilience for a Changing for uilding Resilience limate Climate to Responses ransformative lliance. Alliance. eadership oost resilience of small and mid-sized small and mid-sized of resilience oost tudies and Planning, Massachusetts and Planning, Massachusetts tudies etherlands) 7 (4). doi:10.1007/ 7 (4). doi:10.1007/ Springer Netherlands) ackground Paper 15, A 15, Paper ackground owards T owards ngineering: Official Publication of Publication Engineering: Official arthquake mergency Response B Response and Emergency afety he role of the engineer in disaster risk reduction,.” risk reduction,.” the engineer in disaster of he role urvey.” Urban S Urban urvey.” ngineers. L Civil Engineers. of he Institution CLEI. I oronto: E Climate New and Climate, conomy ulletin of E of ulletin arthquake S arthquake ivien Foster. 2008. “Financing Public Infrastructure in S “Financing Public Infrastructure 2008. ivien Foster. eries, T eries, arthquake Engineering ( arthquake an Francisco. an Francisco. ank. https://openknowledge.worldbank.org/handle/10986/6018 ank. https://openknowledge.worldbank.org/handle/10986/6018 tern. 2015. “Driving sustainable development through better better through development sustainable “Driving 2015. tern. ank, Washington, DC. ank, Washington, B “ 2016. and M. Garschagen. wasa, ecture S ecture ambridge, M. ambridge, . L CPI, V 2015. Finance Climate of Landscape he Global eptember. http://doee.dc.gov/src. http://doee.dc.gov/src. eptember. ommission on the E ommission olecki, S an Francisco.” S an Francisco.” O.” IGO.” Y 3.0 echnology, C echnology, ities.” B Cities.” of eismic Future nvironmental Politics 11 (1): 62-88. doi:10.1162/ 11 (1): 62-88. Politics Environmental Global angladesh.” lobal C Global mits, and andV Smits, ecilia, Karlis frica: Patterns, Issues, and Options.” AICD B and Options.” Issues, Patterns, frica: ondon: Routledge. ondon: Routledge. an Francisco. 2014. “2014 E “2014 2014. an Francisco. he S ities on a Finite Planet; T Planet; on a Finite Cities 2016. atterthwaite, ). ssociation for E for Association uropean limate Finance L Finance Climate Cities York: New 2015. Finance Climate City of tate L Finance Climate Cities 2015. Finance Climate City of tate . Welle, W. S W. . Welle, lobal S a Global of Planning: Results daptation afeguarding S afeguarding ector Diagnostic, World B World Diagnostic, ector aharan A aharan FLA CC L 9th Brunel International S nvironment and Urbanization 27 (1). 27 and Urbanization Environment resilience.” urban of aspects and temporal scales doi:10.1177/0956247814550780. ( S ). (4 503-522 30 Planning B: Planning and Design A T of Institute S ature 537. 537. Nature cities.” nvironment and Urbanization, October. October. and Urbanization, Environment change resilience.” climate s10518-009-9147-0. s10518-009-9147-0. the E nvironment. https://www.brookings.edu/wp- Change and the Environment. on Climate Institute Research uploads/2016/07/07-sustainable-development-infrastructure-v2.pdf. content/ rookings 91 paper , Brookings Working program.” a transformation of elements Key infrastructure: Institution, hange. L Change. making in B nvironment and Urbanization. Urbanization. and Environment Manchester: programme. : World B DC: World Washington World. B CC License: redits. S Credits. tormwater ounty of S of ounty S ., and D. limate Climate in Urban and Challenges “Progress 2012. Rhie. Christopher and armin, JoAnn, Nikhil Nadkarni, S public services.” of and the cost sprawl “Urban 2003. and G Ulfarsson. J, arruthers, irkmann, J., T irkmann, J., ilham, R. 2009. “T 2009. ilham, R. xploring the potential for deliberative adaptation policy- adaptation deliberative for Exploring the potential paradox: the adaptation “Resolving 2011. yers. B Cities Poor: Risk, and the Urban Disaster Change, Climate 2012. J. aker, artlett, S artlett, limate Policy Initiative. 2015. T 2015. Initiative. Policy Climate DC S 2014. T resilience. to “Shifting agendas: response 2012. Da Silva. Minucci. 2015. “Resilience trade-offs: addressing multiple addressing trade-offs: “Resilience 2015. and G Minucci. M Olzabal, Chelleri, L, J Waters, and C City S FLA. 2015. CC S FLA. 2015. CC C C ity. T City. Financing the Resilient 2011. Brugmann, Jeb. Garmendia, C Briceño- sia for building urban building urban Asia for from lessons Emerging theory: to practice “From 2012. and C. Rio, A., Dayal, Brown, B B ., J. Oppenheim and N. S Oppenheim A., J. Bhattacharya References A B and the ACCA funds savings, potential: unlocking community to as the key Finance 2012. Diane. Archer, B

The World Bank | Investing in Urban Resilience

Investing in Urban Resilience 114 114 InvestThe Worlding Bank in U| r Investingban Res in Urbanilience Resilience 115 115 chilb. chilb. he cademy of of cademy ervice Provision. Provision. ervice ank. reguer, and A. S reguer, ustainable ustainable chool of Development Development chool of ocial Forces. ocial Forces. onstraints on Firm onstraints ondon and Washington DC: ondon and Washington iodiversity Outlook Project, Project, Outlook iodiversity achdeva. 2016. 2016. achdeva. hallenges and Challenges ervices: arthscan. arthscan. lobal Opportunity- Opportunity- eizing the Global wati S wati ulnerability.” S ulnerability.” cosystem S cosystem ector Diagnostic, World B World Diagnostic, ector omposition, Migration and Inequality: T and Inequality: Migration omposition, lobalization and Health). and Health). Globalization onsequences for insurers and society” Weather and Weather and society” insurers for onsequences hhetri, Michael Dunlop, and Holger Michael Dunlop, Chhetri, Netra ubiello, frica.” International Journal of S Journal of International frica.” arloch, J. Rozenberg, D. T D. Rozenberg, Narloch, J. U. . Kane, L Paper, Working Climate. etter iodiversity and E iodiversity risis - Fallout for Private Power Projects.” Projects.” Power Private for Asian Financial Crisis - Fallout ast he E ector. ector. ending the Right Infrastructure Message: How governments can can governments How Message: Infrastructure ending the Right merica. America. of tates NDON: E lO Asia and Latin America. frica, cology. cology. odfrey, J. Millward-Hopkins, W. Fang, and X. Zhao. 2015. 2015. Zhao. and X. Fang, W. Millward-Hopkins, J. N. Godfrey, udmant, oussana, Francesco T Francesco oussana, onzanigo, M. Fay, T M. 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