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Presentation to UN-HABITAT Staff The Work of Sub- programme 4

Presentation to UN-HABITAT Staff The Work of Sub- programme 4. Graham Alabaster OIC Human Settlements Financing Division UN-HABITAT Nairobi, November 2010. HS Financing Division. Human Settlements Financing Division is new under development as a new division – coordination and consolidation

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Presentation to UN-HABITAT Staff The Work of Sub- programme 4

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  1. Presentation to UN-HABITAT Staff The Work of Sub-programme 4 Graham AlabasterOIC Human Settlements Financing DivisionUN-HABITATNairobi, November 2010

  2. HS Financing Division • Human Settlements Financing Division is new • under development as a new division – coordination and consolidation • Two main branches: • Water, Sanitation and Infrastructure Branch - lead for MTSIP Focus Area 4 on Infrastructure • Urban Finance Branch – Policy, SUF, and ERSO - lead for MTSIP Focus Area 5 on Finance Systems

  3. Historical Perspective • In 1990 water sanitation and infrastructure activities comprise 4-5 staff members as a “Building Infrastructure Technology Section” Today a Branch of over 50 staff operational in over 30 countries • Water and Sanitation Trust Fund (WSTF) founded in 2002 • Current turnover US$ 20 million / annum but leveraging much more • Current strategy 2008 – 2012 aligned with MTSIP

  4. Focus on Core Competence: What is our added value? Promoting smart partnerships Pre-investment capacity-building we have a unique relationship with Dev. Banks & other partners Model setting Initiatives Focusing on urban centres of all sizes Promoting regional and inter-regional cooperation Truly regional programmes taking the opportunity of regional funding windows Monitoring the sector Going to a greater level of detail for targeted delivery Integrating WATSAN and Human Settlements Planning and Management Leading to specific tools not generic approaches Advocacy and Communication Work at all levels in the sector, crossing traditional sectoral boundaries

  5. Balancing the normative and operational activities of the programme • Regional operational programmes identify “normative” work • Normative activities build credibility and lead to new operational programmes • More recently: strategic model setting initiatives offer a combination principally investment focused with some supportive capacity-building

  6. Current Delivery Mechanisms Operational Activities • Regional Programmes • Water for African Cities programme • Water for Asian Cities programme • Water for Latin American and Caribbean Cities • Strategic Initiatives at Regional Level • Lake Victoria Water & Sanitation Initiative • Greater Mekong Water and Sanitation Initiative

  7. What is the difference between our regional programmes & strategic initiatives? • Regional programmes follow the models of other lending institutions and donors providing pre-investment capacity-building (mainly software but some hardware through piloting) • Strategic model setting initiatives develop new delivery approaches, covering both hardware and software, which are designed to be supported by other institutions and donors • BOTH have the same target group

  8. Current Delivery Mechanisms Normative Activities • Global Policy Assessments: State of Water & Sanitation • Pro-poor Governance Toolkit • Rights-based Approach to water and Sanitation • Integrated Urban Water Resource Management & environmental Assessments • Monitoring Progress with Achievement of MDG • Global Water Operator Partnerships

  9. WSTF Forward Looking Strategy 2008-2012 • Delivering sustainable services for the poor • Ensuring synergy between the built and natural environment • Monitoring the MDGs and beyond • Integrating Infrastructure and Housing

  10. Lessons learned & support to other MTSIP focus areas (1) • Different models needed for the continuum of urban areas particularly with financing models : grant/loan balance, critical to sustainability • Support for normative work can be achieved on the back of operational projects: Lake Victoria (local level governance, monitoring) • Leveraging must go beyond cosmetic collaboration: Afdb/AsDB reduced project preparation, inclusion of sustainable urbanization concepts in sector projects. The project may be sectoral but the “Board” is cross disclipline. Credibility takes time to build!

  11. Lessons learned & support to other MTSIP focus areas (2) • Need for a robust communication strategy (including a publications policy) to project the results of our work more effectively, especially to other partners/supporters on the world stage.Our normative work focuses on “the bigger picture”: IYS, Water Operators Partnerships, JMP • Build on our core competence of linking to sustainable urbanization, housing & infrastructure (40%)

  12. Lessons learned & support to other MTSIP focus areas (3) • Going to scale: brokering investment partners, economic scale-up, business plans and models • Basic infrastructure provision can be used as an entry point for all cross-cutting themes to secure more support: • WSIB/MSB: google support for monitoring • WSIB/SUF: slum upgrading • Energy/transport in utilities/climate change/water scarcity

  13. How do we think we need to do better? Use the expertise on the WSTF to support other focus areas of MTSIP: Understanding urban systems of different sizes Include more sustainable urbanization components in our basic services projects: climate change is the current “opportunity” land/water governance, local level catchments Sustainability: need for improved approaches especially environmental/ecology (governance) Water waste, energy & transport, and its role in the urban economy needs much closer attention e.g.Linking livelihood to basic services: resuse/recycling

  14. Slum Upgrading Facility (SUF) • Programme Management at Nairobi HQ and - • 3 Year SUF Pilot Programme promoting - • Pioneer Local Finance Facilities: • Localizing upgrading/housing finance delivery mechanisms through SUF Local Finance Facilities – these are multi-stakeholder Boards comprising senior level banking representatives, the slum dwellers’ organisations, professionals, and local government as problem-solving pioneers of local upgrading projects • Multiple Pilot Sub-Projects demonstrating processes and long term nature of finance mechanisms • Developing the potential for full long term Facility

  15. Explaining the SUF Approach Local Finance Facilities - LFFs Technical Assistance & Capacity Building Provided by SUF-PT

  16. Proposed projects currently in pipeline The projects in the 4 pilot countries are at various stages with at least 3 ready for implementation and 1 started ( field testing). • Indonesia – Kratonan ( started field testing with construction of 11 houses), Solo Ketelan, Setabelan, Tipes (mixed use) and Tegalpanggung • Sri Lanka – Wallauwatta, Kilurapura, Kuruniyawatta, Majid Place and Siddarthapura • Ghana – Amui Djor, Kojorom, New Takoradi • Tanzania – Mwisho, Kurasini, Buguruni

  17. Direct SUF PMU intervention • Ghana 1. Grant for Capitalisation of the Ghana Urban Fund for Urban Poor to leverage domestic capital and savings to enable Fund advance loans to members for slum upgrading activities 2. Matching Grant to Old Fadama for slum upgrading • Sri Lanka 1. Seed capital grant for construction 2. Grant for the Capitalisation of Moratuwa Urban Poor Development Fund to leverage domestic capital and savings to enable Fund advance loans to members for slum upgrading and infrastructure development • Tanzania Seed capital grant for construction

  18. Measuring Progressand lessons learned 1. SUF Monitoring and Evaluation Logical Framework + Project Data Sheets to be populated by community with Local Finance Facilities applications 2. SUF Milestones Report + proposal on rescheduling in progress 3. Norwegian/Swedish SUF Observation Team + Concluding visit to be to Tanzania programme, January/February 2009 + Final Report due end April 2009 to feed into Mid Term Review and Expert Group Meeting October 2009 4. SUF Mid Term Review + to be undertaken in second quarter 2009 to feed into SUF Lessons Learned EGM October 2009, Nairobi

  19. ERSO ProgressExperimental Reimbursable Seeding Operations and other Innovative Financial Mechanisms to catalyze Investments in Pro-poor Housing, related Infrastructure and Upgrading (ERSO) Key Activities implemented April to October 2008 • Follow-up on Expert Workshop held in Stockholm: Identification of project opportunities based on ideas presented by potential partners • Refinement of ERSO Operations Manual • Continued Research and Documentation on Innovative Mechanisms for Low-income Shelter Finance • Development of ERSO project briefs and Business Plans • Establishment of the ERSO Steering and Monitoring Committee (SMC) and first formal Meeting held in September 2008 The Way Forward: Activities in Q4 2008 • Project selection, development of business plans and preparation of contractual agreements based on the recommendations of the SMC together with project partners within the current funding context • Continuation of research and knowledge dissemination efforts • Further partnership building and fund-raising efforts to develop further experimental operations

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