4th uclg aspac congress – jakarta, indonesia 2012 pp

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By: FAUZI BOWO Governor of Jakarta JAKARTA CAPITAL CITY GOVERNMENT TUESDAY, 2 OCTOBER 2012 Pages: 5 OPENING REMARKS AT THE THE 4th UCLG ASPAC CONGRESS 2012 “Resilient Cities: Rethink, Rebuild, Revitalize”

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By:

FAUZI BOWO

Governor of Jakarta

JAKARTA CAPITAL CITY GOVERNMENT TUESDAY, 2 OCTOBER 2012

Pages: 5

OPENING REMARKS

AT THE

THE 4th UCLG ASPAC CONGRESS 2012

“Resilient Cities: Rethink, Rebuild, Revitalize”

1

Good morning,

Yang Terhormat Menteri Dalam Negeri, Bapak

Gamawan Fauzi,

Dear participants of UCLG-ASPAC Congress;

Dear Ladies and Gentlemen,

Mayors and Governors of the Asia Pacific region, ladies and gentlemen. Welcome to Jakarta for this 4th United Cities and Local Governments Asia Pacific congress. The theme of the 4th UCLG Congress is “Resilient Cities: Rethink, Rebuild, Revitalize” summarizes the challenges cities have in the Asia Pacific region in order that prosperity is achieved, a central ingredient for peace in this region.

In order that our cities become resilient, we must be able to survive future challenges and in some cases these challenges will be extreme. Therefore, our cities must continually rethink about how to survive, and how to rebuild decaying parts of our cities which can easily become dead areas within the city weighing down on development. Finally a crucial part in ensuring

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our cities are resilient is to have the capacity and tenacity within our cities to be able to revitalize in a sustainable manner and innovation plays an important role in this.

There is no other region in the world like this region. As we are all aware, the UCLG in the Asia Pacific region is the biggest of the eight sections in the UCLG, with linkages to more than 7000 local government and representing 3.7 billion people. That is half of the world’s population.

This region is home to great diversity, whether it be economic, religious or cultural. One indicator is reflected by the fact the variation in per capita disposable income in the region. In 2011 this ranged from US$34.739 in Japan, to US$ 8500 in China and US$ 3700 in India. Another point of diversity is the fact that some parts of the region are highly industrialized while others remain very much rural.

One factor which has been a pressure point in the region is the pace of urbanization, which is unparalleled by any other area in the world. Eleven of the worlds Mega city with a population of more than 10 million are located in this region. In the

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last two decades the Asia-Pacific urban proportion has risen by 29%, this rate of urbanization is more than any other region in the world. This urbanization has resulted in growth, but as the UN Economic and Social Commission noted, this has also driven up poverty within cities. The Asian Development Bank notes that two third of the world’s poor live in this region.

One other crucial factor about this region according to the United Nations is the fact that this region is home to 45% of the world’s youth which amounts to approximately 700 million young people. If managed properly these youths can be an important engine in future economic growth in the region.

The challenge this region faces includes managing climate change, the increasing urbanization, and reducing poverty just to mention a few. For these reasons and many others, the Asia Pacific region has no choice except to become home to resilient cities. Certainly urban planning and building design plays an important role in facilitating the development of a greater capacity for future resilience but there is more than this.

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Two of the crucial and basic ingredients in building resilient cities are already present in this region that is economic growth and a large young population. These two factors are interrelated and special attention must be given to youths with a focus on education and employment creation. The challenge is how to harness these advantages in order that cities are able to sustain economic growth and distribute this growth so that prosperity is experienced by all.

However, there are two crucial pillars to building strong cities. Preparing and developing infrastructure to be able to cope with the speed of growth our cities are experiencing. Equally important is also preparing the people that live in these cities to be resilient and able to embrace the changes needed to complement the urban planning. As the classical Greek Philosopher Plato said “This city is what it is because our citizens are what they are”. City administrations and governments make policies and manage cities but in the end its the people who really make and shape the cities they live in.

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Strong cities can only be established and be sustained if there is good governance in the way they are managed. The foundation of a strong city is a robust and participative community, with a good flow of communications between its mayor and its people in its day to day running and future development of the city. Strong cities are democratic cities this includes democratic elections.

On this note allow me before finishing this speech to bid farewell to all you as beginning on the 7th October Jakarta will have a new governor as determined by a democratic election which took place on the 20th September. It has been indeed a great honor and also a great pleasure for me to be the 4th President of the United Cities and Local Governments Asia Pacific. I take with me valuable experiences which I could not gave gained anywhere else. I thank you all for the exchanges and also the friendships.

Ladies and Gentlemen, it is my conviction that this region is the region of the future. I wish you all luck in the journey of creating strong resilient cities in order that prosperity is achieved.

Thank you

By:

Fauzi Bowo

Governor of Jakarta

JAKARTA CAPITAL CITY GOVERNMENT

THURSDAY, 4 OCTOBER 2012

YHM : 4 Hlm

CLOSING REMARKS

AT

UCLG ASPAC CONGRESS

2012

1

Good evening,

- Cr. Chen Haosu, Founding President Co-

President for International Relations and

Networking

- Mr. Peter Woods, Co President of UCLG

ASPAC;

- Mr. Rudolf Hauter, Secretary General of

UCLG ASPAC:

- Distinguished Participants of UCLG ASPAC

Congress.

It is my great pleasure to be here among all of you who has just completed meeting and discussion much intensively during three days. The actual issues relating to the theme “rethink,

rebuild and revitalize” has been fully encouraging us based on our responsibility toward a better and prosperous city. The ideas and thoughts of the participants have been emerged and shared, I firmly believe it could enrich insights and develop capability of the participants on overcoming urban development problems based on its own characteristic.

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On behalf of the Jakarta Capital City Government and President of UCLG ASPAC, I truly extend my sincere thanks and appreciation to the distinguished participants have provided fruitful results and also commitments made among participants for a sustain and future of our organization.

I would also congratulate to the Executive Bureau Meeting took smoothly and democratically and I am sure that all inputs and critics from the floor accommodated by the Executive Bureau Meeting and very convincingly will follow up in the next meeting of the UCLG-ASPAC in making the efforts of providing innovative solution and alternatives for a better and esteemed city.

Concluded the results achieved from the Meeting, I would congratulate Dr. Jatin V. Modi as the elected President of UCLG ASPAC 2012-2013 and Mr. Syed Muhammad Asghar Shah Gillani as the elected President of UCLG ASPAC 2013-2014. Additionally, I would congratulate Gwangju City, Korea to host the

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next Executive Bureau Meeting in May 2013 and Taipei City as host of the 5th UCLG ASPAC Congress in 2014.

Distinguished participants,

Tonight is our time to share a happiness and joyful among us and I hope through our farewell dinner will strengthen the ties of our friendship and expand our international networking.

Again I personally would like to thanks the distinguished participants for consuming energy and sharing thoughts and your active participation is really appreciated. And I do believe that the results of congress as our further reference and feedback to a betterment.

Before closing my remarks, I’d like to recommend you to spare your time for sightseeing around Jakarta. I hope during your stay in Jakarta will bring impressive and memorable things that you might one day come to Jakarta again for holiday.

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Please enjoy the refreshment on dinner and entertainment.

Thank you and see u.

By:

FAUZI BOWO

Governor of Jakarta

JAKARTA CAPITAL CITY GOVERNMENT

TUESDAY, 2 OCTOBER 2012 Pages: 4

WELCOME DINNER

AT THE

THE 4th UCLG ASPAC CONGRESS 2012

“Resilient Cities: Rethink, Rebuild, Revitalize”

1

Mayors, Governors, Ladies and Gentlemen, welcome tonight to Fatahillah Museum.

Today two very important sessions have been conducted. One, concerning the readiness of cities to change in order to anticipate the future, focused on the willingness of people themselves to change. The other was on infrastructure, innovations, and the building of roads for the future.

Tonight, however, I will not be speaking about Resilient Cities of the future. Instead, for just a few brief moments, allow me to talk about a Resilient City of the Past, that is, Batavia, which is now called Jakarta. We are tonight having dinner in the Old Town of Jakarta, the location where the city of Jakarta was first established. This building in which we are having dinner is where the former City Hall was situated.

Before becoming the City Hall, this building was originally called the Stadhuis, and was the administrative headquarters of the Dutch East India Company and the Dutch trading company, and later the office of the Dutch Government. The building was constructed in 1710 by Governor General van Riebeeck. It is located in front of a

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public square, which in the past was known as Stadhuisplein or the City Hall Square. Many of you would have walked across this square in order to get to the building where we are having dinner tonight.

This building has been a witness to some of the most important parts of Indonesian history. As they say, if only these walls could talk and tell what they have seen, we would probably be hearing a fascinating part of Indonesia’s story. For example, the building, which is underneath the building where we are having dinner, was a famous prison. Any Indonesians, and for that matter Dutch people, who rebelled against Dutch colonial rule, were imprisoned here. One very famous historical figure was the Indonesian freedom fighter Prince Diponegoro, who was arrested in Central Java and imprisoned here in 1830, before being banished to Manado in North Sulawesi.

Despite this role, the place was also an important source of life not only because the port of Sunda Kelapa, which was the center of trade for Batavia and the surrounding areas, was just a stone’s throw away but because in the center of the

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square, just in front of this building, there was a fountain, which served as the water supply for the colonial capital, Batavia. This place was the center of life for Old Jakarta for hundreds of years.

Today this building is a museum. It has been temporarily closed since July 2011 for conservation work to be carried out on the badly damaged complex but it is expected to reopen in 2014.

Jakarta or Batavia, as the city was first referred to in historical records in the 4th century, was originally a Hindu settlement and a port. Ever since, the city has been variously claimed by the Indianized kingdom of Tarumanegara, the Hindu Kingdom of Sunda, the Muslim Sultanate of Banten, the Dutch East Indies government, the Empire of Japan, and finally Indonesia.

Today Jakarta is 485 years old. The fact that this place is still functioning as a city is proof that Jakarta is a resilient city and that somehow, during its journey of hundreds of years, it has managed to “Rethink, rebuild and revitalize”.

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I often ask myself what has enabled this city to survive for so long, while in the process managing to adapt to major cultural and political changes and to flourish? In my humble opinion it’s the people who have lived here. Not just the people of Batavia but the different people from different parts of Indonesia who have come here and made this place what it is today, creating here one of the richest centers of culture in the country. In fact, I could almost say that Jakarta has been “Little Indonesia” for hundreds of years.

Thank you. Please enjoy your dinner tonight.

By :

Fauzi Bowo

Governor of Jakarta

JAKARTA CAPITAL CITY GOVERNMENT

TUESDAY, 2 OCTOBER 2012

ANITA BOJE/YHM/SHB/HRY/ : Pages: 6

WELCOME ADDRESS

AT DINNER FUNCTION

IN HONOUR OF THE PARTICIPANTS OF

UNITED CITIES AND LOCAL GOVERNMENT

(UCLG) WORLD CONGRESS

1

Good evening,

Distinguished Delegates from the Asia Pacific Region,

Ladies and Gentlemen,

I would like to welcome you very warmly to the City Hall of the Jakarta Capital City of Jakarta. The room we gathered here tonight is called “Balai Agung”. In the Indonesian tradition, the name indicates a place where within a community very important things taking place – celebrations, inaugurations and significant announcements. So, this is the heart of the Jakarta Capital City Government. And I am very happy to be your host and celebrate here with you tonight in “Balai Agung” the 4th UCLG ASPAC Congress.

Ladies and Gentlemen,

The first day of our congress is nearly over. Today we have shared our experiences and ideas how to improve the resilience of our cities and municipalities – in terms of good and adaptive local governance and in terms of a modern and

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innovative infrastructure, which takes the unpredictable into consideration.

We, as city leaders or as persons in charge for urban development and welfare – we already know how demanding our job already is when things are normal and everything is working relatively smoothly in our cities. But when things getting rough, when turbulences shaking up our usual routines, when natural or man-made disasters threaten the lives and the wellbeing of the people, then we have to ask ourselves if our city is really ready to cope with it.

Ladies and Gentlemen,

As the overall theme of this Congress indicates, it is all about “Re-Think, Re-Build and “Re-Vitalize” to get ready for tomorrow, especially considering the challenge of global warming.

As you may know, Jakarta, as many other member cities of UCLG-ASPAC, face basic bread and butter problems: housing, transportation, flooding, waste disposal, the provision of energy and adequate drinking water.

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These problems derive mostly from an increasing migration into our cities, where people are looking for jobs and prospects for a better life for themselves and their children. In case of Jakarta, the excessive land-use in the past is now a severe obstacle and constraint for making the city fit for the future.

Given Jakarta’s geographical condition as a low-lying region, our city is very vulnerable to climate change. Based on Economy and Environment Program for Southeast Asia (EEPSEA) study, Jakarta is indicated as the most prone area towards climate change impact in South East Asia.

In February 2007, Jakarta was hit by one of the worst flood ever experienced, covering 70% of metropolitan area. This disaster claimed human lives and caused enormous financial damages. The increasing of global temperature has caused climate change and variability, such as the changes of rainfall intensity as well as extreme whether. And the Sea level rise makes Jakarta prone to the activity of extreme weather such as floods and has a substantial impact on the city.

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We are undertaking a series of adaption methods to prevent and control flooding and seawater infusion leading to subsidence. One of the major developments of flood control system in Jakarta is the development of East Flood Canal that has already flown to the sea at the end of 2009. The east flood canal has reduced the flood risk in Jakarta as much as 30%.

The development of East Flood Canal is not only aimed to control the flood in Jakarta, but also to act as an economic prime mover at the northern and eastern part of Jakarta.

It is supposed to be an integrated infrastructure development between Green Infrastructure and Water Front Development and will function as flood control, water conservation and not least as a green open space corridor.

Ladies and Gentlemen,

Sometimes it is necessary to make bold steps to shape a cities future, e.g. by big infrastructure projects like the East Flood Canal and the Green Infrastructure around it. This is an urgently needed adaptation measure to prevent disastrous

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flooding in the East and North of Jakarta. We aim to make virtue out of necessity and seize the opportunity to create a green belt around this canal for the benefit of both economy and ecology in Jakarta.

However to achieve real sustainability and resilience, we have to promote more than ever local control and to utilize local resources. By this, it is also possible to change people’s mindsets. People should realize that initiatives for resilience don’t just aim at a better life in an unknown future but are going to improve the quality of life of the people now. To work on the city of tomorrow pays off today.

Ladies and Gentlemen,

I am very glad that UCLG ASPAC has competent partner organisations that have enormous expertise in the field of urban sustainable development and resilience. Various organisations also supported us a great deal to organize this Congress.

I would like to thank the UN International Strategy for Disaster Reduction UNISDR, the Cities Development Initiative for Asia CDIA, the

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WORLDBANK Jakarta, ICLEI, and the Cultural Development Network, Australia, for their outstanding support and commitment to this Congress. Tomorrow, these partners will facilitate Breakout Sessions and discuss in depth ideas and strategies with you, Ladies and Gentlemen, how we can make our cities ready. I wish all of us fruitful and interesting discussions.

Ladies and Gentlemen,

But this is the schedule for tomorrow. Now is time for celebrating, enjoying good food and pleasant company and having a good time here in ‘Balai Agung”.

Enjoy this first evening of the 4th UCLG ASPAC Congress in Jakarta and enjoy your whole stay. It is a great pleasure to have you as our guest.

Thank you!

Abstract for the Keynote Speech (by Dong-Shin Moon, Mayor of Gunsan, Republic of Korea)

The main theme of "Resilient Cities: Rethink, Rebuilt, Revitalize" for the 4th

Congress in Jakarta, Indonesia is

very significant. Local governments of today are no longer able to exist independently from the international

community, as we have entered into an era of an ever-growing need for inter-municipal cooperation with the

advent of global climate problems and trade issues affecting local governments. The environment in which we

live today has changed significantly, and it is continuously evolving at a tremendous speed, affected by

multiple complex variables which no local government has experienced before. Problems arising from

urbanization, multi-culturalism, sprawl, and other forms of natural environment pollution will become the

subjects which will be resolved through the lens of "Resilience."

Counter-Punch: Solution to Change is to Change

It is important to absorb shocks with flexibility, but at the same time we should go one step further and utilize

situations as opportunities for greater advancements. This is analogous to the effects of a "counter-punch" in

boxing. Rather than limiting oneself to the defensive posture, we should introduce new policies or make

necessary amendments to the existing system and framework in response to the changes to guarantee

unprecedented rippling effects. Therefore, in order to maximize these effects, you must be aggressive but also

bold, requiring you to think outside the box. External changes and stresses can be successfully managed by

employing a necessary corresponding force. A proactive response, in other words, requires determination and

endeavors to renovate the existing structure against the surrounding developments which can then become

the stimulus to acquire the needed resilience against the evolving global community.

Unity, Key for Development; Diversity, Key for Resilience

Since resilience is a fundamental element required for future urban development, and unity cannot be

completely discredited by municipal governments, it is critical that we find a workable balance between these

seemingly contradicting principles. In order to successfully address and overcome the inherent problems

embedded in diversity, I propose the introduction and operation of regular and effective communication

channel. The establishment of a responsible organizational body will be able to provide long-term, workable

solutions to current existing problems. Rather than simply registering civil complaints and providing temporary

solutions, the introduction of a comprehensive system reflecting different opinions in extracting a socially

agreed upon consensus is required to overcome the inherent characteristics of diversity in the absence of

unity.

Urban Design: Case Study - Gunsan Modern Historical Landscape Project

Gunsan, as the center of the Saemangeum Project, the largest land reclamation project in Korea is renowned

as a future city. However, at the same time, Gunsan is a city of history of 1,000 years and modern culture. The

Modern Historical Landscape Project, in short, is to add new life to the modern architectural buildings by

adding the color of the 21st

century. The fundamental design principles governing this project are

"Completeness of Community" and "Spirit of Revitalization” (utilizing local resources). The project aims at

installing various facilities to minimize the distance human movement and maximizing the utility of existing

resources in our efforts to create new added values, engaging in aggressive and active transformation of the

urban infrastructure, thus expecting to revitalize the slow inner urban communities.

In conclusion, I would like to introduce "Self-Innovation" as the key word in securing the necessary resilience

needed to successfully adapt to the changing global community. The definition of the word "resilience" itself

has a resilient character which can be applied to many different situations. Therefore, we must also respect

the definitional characteristics of the word and exercise a spirit of activeness and flexibility in our endeavors.

ELECTED COUNCIL AND EXECUTIVE BUREAU FOR 2012 - 2014

EAST & NORTHEAST ASIA

1 Governor Association of Korea (GAOK) (Executive Bureau)

2 City of Hamamatsu (Executive Bureau)

3 Beijing City (Executive Bureau)

4 Taipei City (Executive Bureau)

5 Gunsan City (Executive Bureau)

6 Guangzhou City

7 Haikou City

8 Shanghai City

9 Dalian City

10 Harbin City

11 New Taipei City

12 Taichung City

13 Jeju Special Self Governing Province

14 Seoul Metropolitan Government

15 Gumi City

16 Changwon City

17 Gangwon Province

18 Gyeonggi Province

19 Korean City Federation

20 Shenzhen City

21 Xi'an City

22 Chengdu City

23 Fuzhuo City

24 Kunming City

Co-President: Song, Young-Gil (Incheon Metropolitan City)

Co-President: Chen Haosu, Founding President (CPAFFC)

Designated representative to the Council and Executive Bureau: Council of Local Authorities for

International Relations (CLAIR)

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PACIFIC � �

1 Local Government New Zealand (Executive Bureau) � �

2 Ministry of Internal & Social Affairs of Kiribati (Executive Bureau) � �

3 Ministry of Provincial Government & Institutional Strengthening � �

� �

Co-President: Cr. Felicity-ann Lewis (Australian Local Government Association) � �

� �

SOUTHEAST ASIA � �

1 Association of Indonesian Municipalities (APEKSI) (Executive Bureau) � �

2 Association of Cities of Vietnam (Executive Bureau) � �

3 Municipal League of Thailand (Executive Bureau) � �

4 Wakatobi Regency (Executive Bureau) � �

5 Association of Indonesian Municipal Councils (ADEKSI) � �

6 League of Cities of the Philippines (LCP) � �

7 National League of Commune/Sangkat of Cambodia � �

8 City fo Makati � �

9 City of Probolinggo � �

10 City of Cimahi � �

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Immediate Past President : Dr. Fauzi Bowo � �

Co President (Host): Gov. Joko Widodo (Jakarta Capital City Government) � �

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SOUTH & SOUTHWEST ASIA � �

1 Municipal Association of Nepal (MuAN) (Executive Bureau) � �

2 Federation of Sri Lanka LG Association (Executive Bureau) � �

3 Local Council Association of the Punjab Pakistan (Executive Bureau) � �

4 Municipal Association of Bangladesh (MAB) (Executive Bureau) � �

5 National Association of Village Dev. Committees in Nepal (NAVIN) � �

6 Local Council Association of Khyber Paktunkhwa � �

7 Bangladesh Union of Parishad Forum � �

8 City of Kathmandu � �

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Presidents: Dr. Jatin V. Modi; Syed Muhammad Asghar Shah Gillani � �

Co-President: Krishna Prasad Jaishi (ADDCN) � �

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Achieve a Safe & Happy Life by building a Resilient City

Mr. Chen Mingquan

Vice Secrectary General of Wuhan Political Consultative Committee, Hubei Province,

P.R.China

2012.10.02, Jakarta

Dear friends, ladies & gentlemen,

Good Afternoon.

I come from Wuhan, China. Later I will give a few words of my city.

First of all, I’d like to express our sincere appreciation to Jakarta municipality for

hosting the grand event of UCLG ASPEC 4TH

Congress. It is a great honor and a great

pleasure for me as well to have the opportunity today to give a speech here in

Jakarta on the topic of resilient cities.

We’ve got to know the definition of resilience highlights the capacity or the ability of

a city to absorb shocks and stresses, survive and retain vitality in front of disturbance.

It is the fact that cities grow more and more civilized, but seems weaker than before

in recovery from both natural disaster and man-made shocks and stress. Facing all

kinds of risks increasingly in this time, how to enhance the resilience of a city and

how to build such a city has been a common challenge of top concern around the

world.

With a population over 10 million people, Wuhan is a megalopolis in central China. It

is the capital city of Hubei Province, abundant in water resources with hundreds of

lakes and a big river. Yangtze River, the world’s third longest river and its largest

tributary Han River meet in Wuhan. Wuhan is situated at the confluence of the

Yangtze River and the Han River and the two big rivers cut the city into three parts of

Hankou, Hanyang and Wuchang, namely Three Towns of Wuhan which are standing

like the three feet of a tripod by the two rivers. It has been renowned as a cultural

city with a long-standing history dating back to 3500 years ago.

Next, I’d like to give a brief introduction of the methods adopted by our city on

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resilience-building and our thinking for the future.

Since the beginning of this century, Wuhan Municipality put resilient construction of

the city with public safety as a key on top agenda. We paid efforts and got good

results.

Basic methods of building a resilient city

A Organizations in charge of public safety administration grow increasingly

strong

The city government set up an emergency committee exclusively in charge of

unexpected public events, and over 10 such committees of special sectors of

construction, transportation, public safety, water affairs, higene, agriculture,

earthquake, environmental protection, safe production monitoring, grain, food

safety and medicine safety etc. Emergency committees are also established in

district level, in charge of ordinary incidents. In general, an organization system of

emergency management takes shape with 3 levels of municipality, special sector

authorities, and district government, and It works under the principal of unified

leadership, comprehensive coordination, hierarchical responsibility, and priority of

localized management.

B Exposure rating and early warning system under construction step by step

The city government pays great attention to the construction of basic emergency

data base, and communication information system of emergency commanding. In

the year of 2008, the municipality launched Trial Regulation of Methods on

Precaution of Emergency Events and Information Release & Dissemination,

established unified platform of information release for early natural disaster, and has

released meteorological disaster information in time to citizens.

Especially, five fundamental data base of rules and regulations, precaution plan,

experts, teams and materials supply for early warning have been established.

And since the beginning of 2009, exposure rating system of social stability was

established for heavy accidents.

C Formulation of emergency preplan more standardized, and exercise regularized

Emergency preplan system was established with integrated structure, all functions,

rapid reaction and high efficiency, which is most important for early warning. Fifteen

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specialized preplan has been worked out involving production accidents, road traffic

accidents, public health accidents, food safety and medicine safety etc., with over

500 sub-preplan. Therefore overall preplan system has taken shape.

On the other hand, regularized exercise raised the capability of people and different

departments, and made those preplans increasingly perfect.

D Collection and release of information of public safety administration sound and

effective

Networks and teams of public safety information are enhanced, as well as

information collection, disposal and analysis, early warning, report and

dissemination, cooperation with news media. By real-time press briefing, rumors

clarified and stopped, panic eliminated.

E Construction of refuge for public safety has achieved a good result

Refuge construction is the most important method to guarantee life safety of

citizens at crisis. It is the top concern of the municipality. By far, there are 386

refuges for emergency use in the whole city, 37 of which are municipal level, 349 are

district level. 7 municipal level over ground cover an area of 600,000 sq. meters,

which can accommodate 436.000 people at the same time, more than 30

underground mainly for air attack.

Meditation on resilient construction of the city of Wuhan for the next step

In the process of rapid urbanization, enlargement of the size of city, problems and

shortages also emerge in terms of resilience. For the future improvement, we would

like to pay more efforts as below:

A Enhance the education and training in terms of public safety

Awareness of public safety crisis is of great help in reducing occurrence of possible

crisis, as well as reducing the loss and disorder generated by crisis or emergency.

Later in the future, education of such subject will be taken into schools. Promotion,

skill training and exercise will be strengthened among citizens to improve their

ability for anti-crisis.

B Enhance the planning and assessment of urban public safety

Construction of early warning and monitoring system is priority in prevention and

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elimination of risk and crisis. Analysis and study of risk is necessary for a city, by

which we should make reasonable special planning and timing of human activities.

The support of science of high technology should be largely used in the research and

study in this sector, such as remote sensing, topography, geographical exploration,

meteorological study, etc.

Then the forecast of all information of possible crisis and emergency can offer

conductive reference for both the citizens and the government.

C Reinforce the construction of emergency administration system

Prevention is more important than treatment. Preplan plays a role of planning and

guiding in anti-crisis, turning people from unprepared to fully prepared. So the

preplan system should be more feasible and easily operated, and promoted to

community level, to rural area, to all kinds of organizations and units of a city. With

regards to improving the precaution, we can try to establish anti-crisis fund,

insurance of responsibility and super-serious disaster, and promote charity

development, to form strong financial support backup. In terms of material

preparation, reserve of all kinds of material, communication equipments, life utensils

should be adequate. Meanwhile, special teams should be trained effectively and

constantly to raise the ability of cooperation.

D Intensify the information sharing system, improving sound communication

among government, news media and citizens

We have embraced a time of information. The government should guide the medias

to interfere in emergency events under the principal of “just, fair and open”. Social

power should be motivated in crisis treatment. Meanwhile, monitoring of news

release should be paid high attention. Especially we should be prudent in the release

of information regarding public safety. In addition, the government should enhance

exchange and cooperation with citizens, especially NGOs, give them a full play in

anti-crisis.

In general, on the occasion of crisis, the government should make people more

confident, and the people should give more faith to the government, news media

should play a good bridge between the two. If so, a sound communication will be

generated among the three parties to achieve a good treatment of crisis and a rapid

recovery from crisis.

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Last but not least, I’d like to take this opportunity to invite you to visit our city and

exchange with us in this sector and others as well, to know each other, to

understand each other, to learn from each other, and to find chances of cooperation.

That’s all for my speech today. Thank you for your patience.

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A Presentation at the Fourth Congress of the

United Cities and Local Governments – Asia Pacific

Jakarta 2 October 2012

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Partnership for Governance Reform

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1. Introduction

2. Why local governments and communities?

3. Current challenges faced by cities in the Asia-Pacific region – and the need to rethink about the way we plan and to rethink about the way we plan and manage cities

4. The need for cities to be resilient

5. The need for most/many local governments to be reformed

6. A few case studies

7. Conclusions and recommendations

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� A ������������� is one that has developed capacity to help absorb future shocks and stresses to its social, economic and technical systems and infrastructures so as to still be able to maintain essentially the same economic and technical systems and infrastructures so as to still be able to maintain essentially the same functions, structures, systems and identity [www.resilientcity.org as quoted in the conference TOR]

� ������ refers to changes or improvement for better conditions or corrections of “wrong” practices.

� ��� ������ ��������� is fundamental changes at the local level that can be internally initiated or/and externally induced/supported

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� Local governments and communities are the ones who will first deal directly any possible disaster

� Local governments and communities are the ones who most likely posses ��� ����"���� and ��� �

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� But local governments and communities cannot work alone

� They need support from the national government and actors as well as from the relevant international

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from the relevant international communities

� However many initiatives are not sustainable and too project-oriented... To create more sustainable resilience initiatives, we need the right approach(es) as well as multi-stakeholder supports

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� Hyogo Framework for Action 2005 – 2015 and its national/local adaptation

� National regulations and institutionalization (In the case of Indonesia: Law 24/2007 and establishment of BNPB) and local implementationimplementation

� Supports (expertise, funds, networks, etc) from donors such as UNDP, UNISDR, bilateral donors, relevant international NGOs – most of them are in collaboration with national/local governments and organizations

� University networks

� Some local-based intiativeswww.������ �.or.id *

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� But the “homeworks” are still huge

� Many other local areas and communities are not yet covered or adopting the preparedness measures

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� The ones that already have strategies or action plans on paper have not put them into practice

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� Asia-Pacific “region” is one of the most ������� “region” in the world: in terms of culture, geography, socio-economic development and many other aspects of life

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many are densely populated)

� Cities have been the drivers of the ����������"�

� Many countries are ������� ��3�� their governance, transfering more government functions and responsibilities to local governments

� Some countries are experiencing ������ ��3 ����, where civil society has more says in the public processes

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� With all of the above transformations going on in the regions, local governments and communities are facing some other challenges

� The region is also part of the “Ring of Fire” and $����to various � ��� � 3 ���: earthquakes, tsunamis, volcanic explosions, typhoons and others.

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volcanic explosions, typhoons and others.

� But is also $���� to semi-natural and �� �2����� ��� or human-made hazards: floods, desease-outbreak, urban fire, forest fire, violent civil conflicts, etc.

� The human-made hazards can be expanded to cover “things” that are gradual (not-sudden), in front of us on dailiy basis, but potentially creating disasters � lifestyles, deforestations, reckless use of ground water, etc.

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unaware or fatalistic toward potential disasters. ���� �� $�� � has generally been diminishing in bigger cities

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� At the �������������: developing supportive policies, strategies and regulations, matched by adequate budgets

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National government provide technical and financial assistance to LGs with limited capacities

“Graduated”LGs

One way of national government engages LGs for sustainable urban resiliency

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Period-1 Period-2 Period-3 Period-4 Period-5

National government provides incentives & disincentives for capable LGs

“Graduated”LGs

“Graduated”LGs

“Graduated”LGs

Similar principle of increasing local participation should also be applied to any other externally-induced initiatives

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� Local governments and local communities play crucial role in making cities resilient

� Yet, there are a number of challenges in engaging LGs to adopt and implement

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engaging LGs to adopt and implement the necessary measures

� The challenges are of various levels

� There are particular ways in approaching LGs, which potentially help ensure more sustained implementation of the principles

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e-mail: [email protected]: [email protected]

blog: http://wicaksarosa.blogspot.com

Future Challenges

• Increase of population and migration to urban

areas

• Depletion of stock of non-renewable natural

resourcesresources

• Degradation of upper catchment areas

resulting in flood and freshwater shortage

Policy to meet the challenges

• Efficiency of the use of non renewable resources

• Intensification of the use of renewable resourcesresources

• Optimization of the use of land in accordance with its carrying capacity

• Sustainable growth with equity to the people

� Sustainable development with green growth as a tool

Strategy to meet the challenges

• Green growth (GG) is not a goal but merely a tool to sustainable development

• Sustainable development is the ultimate objective of implementing GG

• Implementation of GG should be directed • Implementation of GG should be directed towards the achievement of sustainable economic growth with equity – Green Economy

• Strategic Environment Assessment (SEA) as a main tool for spatial planning (Act. No. 32 Year 2009, Article 15)

ELEMENT OF GREEN ECONOMY

• Low Carbon

• Resource efficiency

Socially Inclusive• Socially Inclusive

(UNEP, 2011)

GREEN ECONOMY IN PRACTICES - PRIVATE

• SUSTAINABLE MINING

PT Medco E&P Indonesia (Oil and gas)

The Intensive Planting Program, PT MedcoE&P Indonesia Kampar Block replants twiceas many trees as the cleared land. Up to2011, the company has planted 137 treesthat absorb carbon dioxide. PT Medco E&P

Initiated by private sector

that absorb carbon dioxide. PT Medco E&PIndonesia Kampar Block also recycles organicwaste and turns them into compost. Localpeople are involved in this program, whichcan recycle an average of 200 kilograms ofwaste per month, half of which is turned intocompost.

RE – LC - SI

Source:Overview Indonesia’s

Sustainable Development

• SUSTAINABLE INDUSTRY

PT. HOLCIM Indonesia (Cement)

For ex-mining site conservation, PT Holcim

Indonesia-Cilacap Factory conducted

reclamation activity in Nusakambangan site

area by planting 8,670 native trees in the

GREEN ECONOMY IN PRACTICES - PRIVATE

Initiated by private sector

area by planting 8,670 native trees in the

22.8 hectare area (or 20.2% of the total

operational site) in 2010. The company also

planted hard-wood trees in 29.1 hectare of

site in Jeruklegi, or approximately 28.1% of

the total operational site. The reclamation

activities reached almost 100%.

LC

Source:Overview Indonesia’s

Sustainable Development

• SUSTAINABLE CITIES

Green Building and Low Carbon Development

Implementation of Green Buildingpractices is a component to support lowcarbon development through policies andprograms on increasing energy and water

GREEN ECONOMY IN PRACTICES - GOVERNMENT

Initiated by Government

programs on increasing energy and waterefficiency using environment-friendlyconstruction materials, and using low-carbon technology. The government alsoencourages all stakeholders to participatein tackling climate change issue in thebuilding construction sector through theMinistry of Environment Regulation No.8/2010 on Criteria and Certification ofEnvironment-Friendly Buildings.

LC Source:Overview Indonesia’s

Sustainable Development

• SUSTAINABLE AGRICULTURE

Sustainable Food Reserve Garden

Ministry of Agriculture has also

developed programs to empower rural

family to build its own capacity in food

security. One of them is development

of Food Reserve Garden (FRG). FRG is

GREEN ECONOMY IN PRACTICE - GOVERNMENT

Initiated by Government

of Food Reserve Garden (FRG). FRG is

implemented by involving communities

and relevant parties at central and

regional levels The pilot of FRG was

established in February 2011 at Jelok,

Kayen Village, Pacitan, East Java

RE - SI

Source:Overview Indonesia’s

Sustainable Development

• SUSTAINABLE CITIES

Green City Development

Green City Development, Green city program started with raising Green City

initiatives and commitments from 60 cities and districts through the

formulation of Green City Action Plan (RAKH) in 2011. The 60 cities and

districts will have to implement the action plan in 2012

GREEN ECONOMY IN PRACTICE - GOVERNMENT

Infrastructure

Program will focus on three out of eight green city attributes:

1. City planning and design which accommodate the green agenda

2. Creation and development of green open space and urban green open

space network

3. Raising community’s sensitivity, awareness and active roles in developing

green city’s attributes (green planning and design, green open space,

green community, green building, green energy, green water, green

transportation, and green waste)

Source:Overview Indonesia’s

Sustainable Development

• RENEWABLE ENERGY AND ENERGY EFFICIENCY

Self Reliant Energy Village (DME)

The Ministry of Energy and Mineral Resources (ESDM) has launched a program

that handles self-reliant energy village program (DME). The DME program is a

program of energy supply by utilizing the potential energy found in that village

from both biofuel and non-biofuel with technology that can be operated by the

local people, such as Biofuel technologies, Micro-hydro, Wind Energy Technology,

GREEN ECONOMY IN PRACTICE - GOVERNMENT

local people, such as Biofuel technologies, Micro-hydro, Wind Energy Technology,

Solar Technology, Biogas Technology, Biomass technology, and others. The DME

program is intended as an entry point for the first rural economic activities

launched by the President of Indonesia in Grobogan Village, Central Java in

2007and is followed by other villages throughout Indonesia. At the end of 2009 it

is expected to achieve 850 DME and at the end of 2014 it is expected to form

3000 DME

Source:Overview Indonesia’s

Sustainable Development

• RENEWABLE ENERGY AND ENERGY

EFFICIENCY

Cinta Mekar Hydro Power

One of the most recognized micro hydro power project in indonesia is that is developed by yayasan ibeka in cinta mekarvillage (Cinta Mekar Micro Hydro Power Plant/MHPP). It catapults ibeka's

GREEN ECONOMY IN PRACTICE - LOCAL

Plant/MHPP). It catapults ibeka'sreputation in developing public private and community based micro hydro power plant. The cinta mekar project is a 120- kW micro hydro power plant (MHPP) designed to generate supply of grid connected electricity. The project is located in CintaMekar village, Subang, West Java, about 150 km from the capital city of Jakarta. Cinta Mekar, which consists of four sub-villages, is home to 646 families. Prior to the start of the project, 102 households were without electricity Source:Overview Indonesia’s

Sustainable Development

� Individual initiatives by local communities, private companies, and government efforts indicates practices that may eventually lead to sustainable development.

� However, aggregation of individual efforts at national � However, aggregation of individual efforts at national level may not fully lead Indonesia to green economy, unless some policy actions are taken

� Analysis from various studies indicates Indonesia is still in very low ranking in terms of carbon in the world, still not efficient in using its resources, while the inequality of distribution of income remains

� Jakarta has introduced the bus rapid transit, the emission inspection and the introduction of gas as fuel for public transport.

� Even if all vehicles in Jakarta switch to cleaner fuel, the problem of heavy traffic, inefficiency of energy use will not be solvednot be solved

� A good mass rapid transport (MRT system) needs to be put in place in order to promote a more intensive use of public transport and better efficiency and cleaner use of energy resources

� The Government needs to develop more new energy and renewable energy resources that are cleaner than conventional fossil energy

� Economic instruments need to be put in place in order to apply the polluters pay principle

� A fiscal reform needs to be introduced where higher tax be imposed to activities with more intensive use of resources and more carbon emission and tax of resources and more carbon emission and tax incentive be imposed to activities with more efficient use of resources and less carbon release

� Moratorium of conversion of forest and protected areas that has been taken by the Government should be maintain until further evaluation

• The concept of sustainable development, let alone green

growth, might not be well understood in our country. However,

Local wisdom becomes the basis for further developing best

partices of sustainable development principles, in more focus

way, in a more systemic way, that may eventually lead the

country to culture herself as a sustainability society. The

Government will play a role of facilitating and encouraging good

GREEN GROWTH IMPLEMENTATION

Government will play a role of facilitating and encouraging good

sustainable development practices at all level that will result in

the increase of resilience of our economy in coping with

potential crises in the next decade, be in food, in energy, in

water, and in climate change. Greening the economy will be

developed into the development of sectors at middle and low

level that will increase the resilience of our economy, by

gradually replacing the domination of extractive economy and

industry.

THANK YOUTHANK YOU

������������ �����

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The National League of The National League of The National League of The National League of

Communes/Communes/SangkatsSangkats

Geographical Areas

� Areas: 181,035 km2

� Population:14.7 million (Census 2008)� Capital: Phnom Penh (1.2 millions)� Provinces: 23

Sub-National Structure� Provinces/Capital (24)

� Disticts/Muinicipalities/Khans (194)

� Communes/Sangkats (1,633) (directly elected by citizens)

Energy AccessEnergy Access

Access to modern cooking fuels Access to modern cooking fuels 7.97.9urbanurban % HH, 2008 % HH, 2008 37.3 37.3 ruralrural % HH, 2008 % HH, 2008 1.5 1.5

Electricity Access, nationalElectricity Access, national % HH, 2010 % HH, 2010 29.7 29.7 Electricity Access, nationalElectricity Access, national % HH, 2010 % HH, 2010 29.7 29.7 urbanurban % HH, 2008% HH, 2008 8787

ruralrural %% HH, 2008HH, 2008 13 13

No. of people w/o access to electricity (2009) (mil.) No. of people w/o access to electricity (2009) (mil.) 11.311.3Population served by offPopulation served by off--grid sources (grid sources (minigridsminigrids, HH systems), HH systems) 4%4%

Electricity access target Electricity access target 70% of70% of HH in 2030 (100% of villages) HH in 2030 (100% of villages)

Renewable EnergyRenewable Energy

-- BiomassBiomass

-- BiogasBiogas

-- BiofuelBiofuel

-- SolarSolar

-- WinWin-- WinWin

-- HydroHydro

-- Mini/Micro/Mini/Micro/picopico hydro powerhydro power

-- Other Renewable Energy sourcesOther Renewable Energy sources

Transportation InfrastructureTransportation Infrastructure

-- SkippersSkippers

-- National HighwaysNational Highways

-- RailwaysRailways

-- HighwaysHighways

-- Rural roadsRural roads-- Rural roadsRural roads

-- Seaports and harborsSeaports and harbors

-- AirportsAirports

Role of Public TransportationRole of Public Transportation-- Buses companies increase considerably but without any short Buses companies increase considerably but without any short

distance busdistance bus

-- Railway’s just renovated (Aug 2012)Railway’s just renovated (Aug 2012)

-- Taxi meter, Taxi meter, TukTuk tuktuk, , motomoto dup, dup, cyclocyclo, , remoqueremoque motomoto

-- No subway No subway

Energy Consumption to be reducedEnergy Consumption to be reduced

-- Bio digestersBio digesters

-- Small hydroSmall hydro power and power and biofuelbiofuel

-- Hybrid diesel Hybrid diesel

-- Biomass wastes/Biomass wastes/biocharbiochar productionproduction

-- Biomass Biomass gasifiergasifier

-- Used fuel generatorUsed fuel generator-- Used fuel generatorUsed fuel generator

-- Geothermal/wind Geothermal/wind

Efficiency of EnergyEfficiency of Energy

-- Loans of DPs focused on the natural resources and energy Loans of DPs focused on the natural resources and energy

-- National National MiodigesterMiodigester ProgramProgram

-- Rural Energy Strategy Program (National Gov.) Rural Energy Strategy Program (National Gov.)

-- Rural electrification based on renewable energy (solar lanterns, Rural electrification based on renewable energy (solar lanterns,

JatrophaJatropha) )

Challenges Regarding Energy, Challenges Regarding Energy,

Renewable Energies and Renewable Energies and

Rural Energy inRural Energy in CambodiaCambodia

-- Institutional StructureInstitutional Structure-- Policy and Regulatory FrameworkPolicy and Regulatory Framework-- ProgrammeProgramme ConcernsConcerns-- Access IssuesAccess Issues-- Access IssuesAccess Issues-- Financing ConcernsFinancing Concerns-- Gender ConcernsGender Concerns

-- Monitoring and Monitoring and EvoluationEvoluation FrameworkFramework

Other resources to be increasedOther resources to be increased

-- Green technologyGreen technology

-- Forest Forest replantationreplantation

-- BiomassBiomass

-- BiogasBiogas

-- BiofuelBiofuel

-- SolarSolar

-- WinWin

-- HydroHydro

-- Other Renewable EnergyOther Renewable Energy

Efficient circular economy Efficient circular economy

helps protect environmenthelps protect environment

-- Since theSince the 1990th,1990th, Cambodia’s economic growth around 10%Cambodia’s economic growth around 10%

-- Plus,Plus, revenues from minerals and newly found oil and gas reservesrevenues from minerals and newly found oil and gas reserves

-- Although its economic growth, funding support for environmental Although its economic growth, funding support for environmental

protection and management is still poorprotection and management is still poorprotection and management is still poorprotection and management is still poor

-- Land grabbing, illegal logging, illegal fishingLand grabbing, illegal logging, illegal fishing and mineraland mineral extraction extraction

are major concernsare major concerns

-- However, local communities with funding support from dev. partners However, local communities with funding support from dev. partners

have established fishery and forestry communities.have established fishery and forestry communities.

THANK YOU FOR YOUR THANK YOU FOR YOUR ATTENTION!ATTENTION!ATTENTION!ATTENTION!

UCLG ASPAC Members: Towards Low Carbon

Cities

By

Kalanidhi Devkota, Executive Director

Municipal Association of Nepal (MuAN)

UCLG ASPAC Congress, Borobudur Hotel, Jakarta, 3 Oct. 2012

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8.2

8.1

7.1

6.2

Toronto

Shanghai

New York

London

Per Capita Emissions (In Tonnes)

2.76

2.31

2.25

1.97

1.83

19.7

Jamshedpur

Gurgaon

Visakhapatnam

Ranchi

Kolkata

Washington, DC

Carbon Emission in Kathmandu

Per capita emission in Kathmandu city is 0.42 Ton

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76%

76% of the total emission coming from Transportation

14%1%2% 7%

0%

Residential Commercial Industrial Transportation Waste Others

7% of the total emission coming from Waste

Points to be Noted

� The GHG emission in Washington DC can be responsible for thedroughts in Uganda, floods in the Philippines and Indonesia andmelting glacier in Nepal

� Climate-induced disasters such as floods, landslides and droughtshave killed more than 4,000 people in Nepal alone over the last 10years. The economic losses caused by disasters add up to about USDyears. The economic losses caused by disasters add up to about USD5.34 billion in Nepal

� World Bank's annual investments of US$ 140–175 billion are projectedfor the next 20 years and another US$ 30–100 billion per annum forclimate change adaptation.

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!"#"$ � "#"% �����& � '�� �� � ������ ������#

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��)�*��+��������� �,�-������������������������� ���

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� Regional LG Associations i.e., UCLG ASPAC, CITYNET, ICLEI etc need

to play strategic roles by involving ASEAN, SAARC etc.

� National LGAs i.e., MuAN, NLC/S, ADKASI etc have to support their

members to develop their capacity, help develop GHG inventory &

implementation

� National LGAs should advocate and lobby for low carbon policy and

engage private sector to invest in renewable energy, sustainable transport

such as electric vehicle and cycle friendly roads.

� National LGAs should ensure LG are incorporating responses to climate

change in their planning, investment decisions, and emergency-

preparedness plans.

� Nepal prepared its National Adaptation Program of Action (NAPA) for

adapting to extreme climate events through consultative process. The

document was shared with Parties to the UNFCCC in November 2010.

� National Framework for Local Adaptation Plan for Action (LAPA) has also

Initiatives in Nepal

been developed for implementing adaptation actions, and integrating

climate change into local development planning.

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� MuAN and ICLEA SA are coordinating

“Toward Zero Waste in SA” supported by EU for 3 years

Implementing cities are:

� Coimbatore & Simla (India)

� Matale (Srilanka)

� Phunstonling (Bhutan)

� Hetuada & Tansen (Nepal)

� North Dhaka City (Bangladesh)

AGRE (Austria) and VVSG (Belgium) Technical Supporter

���������

Namaste !

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Source: World Urbanization Prospects, the 2009 Revision

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Private Sector Financing Schemesfor Strategic Urban Infrastructure

InvestmentsInvestments

William Young

UCLG ASPAC Congress

October 2012

Table of Contents

• Introduction

• Seeking financing from the private sector

• Private sector trends relating to debt and equity

type financingtype financing

• Projects and return profiles

• Criteria and Risks

Introduction

New Risk to Europe's Growth: Banks Cut Lending to Cities Source: Wall Street Journal, 7 June 2012

Across Southeast Asia, public works are being expanded by governments needing to counter a slowdown in global demand and sustain an acceleration in growth that has made the region one of the few bright spots in a volatile world economy.Source: Reuters, 2 September 2012

The Asian Development Bank (ADB) estimates that Southeast Asia’s 10 countries need at least $60 billion a year to fund ambitious infrastructure work. Source: Reuters, 2 September 2012

Infrastructure projects are not without danger. Execution problems and cost overruns are common. Land acquisition can be thorny — laws sometimes don’t help — and financing can be complicated.Source: Bloomberg, 8 September 2012

Introduction

In affluent Singapore, the roads are good and public housing is the envy of most other countries, but a jump in the population in the recent years has caused problems.Source: Reutersl, 15 September 2012

"Providing effective infrastructure for trade will be critical to help ASEAN economies move be critical to help ASEAN economies move progressively into more complex and higher-value manufacturing and production, including meeting rising demand from a growing middle class in the region," the ADB’s Goswami said.

Seeking financing from

Private Sector

• Reduction in bank financing

• Vast increase in public projects

• Reduction in public money (tax revenue)

• Increasing population and aging population

• Need to understand drivers for private investors

Private Sector Trends to

Debt and Equity

• Increase conservatism in the private sector (risk

appetite)

• Private investors are on a wait and see

approach due to the global economyapproach due to the global economy

• More stringent assessment criteria

• Wanting more control

• Higher weighting on risk premium

• Looking for preservation of equity

• Better alignment of interest

• Transparency

Project and Return Profiles

• 5 year term for development type projects (time

bound)

• Higher expected returns

• Guarantee equity/Project guarantee by • Guarantee equity/Project guarantee by

government (Europe)

• Investor involvement in decision making

• Working together with private sector investors in

developing projects, Australia is a good example

Criteria and Risks

• Executional risks and cost overruns

• Country risks & transparency

• Sound legal framework

• Green and sustainable projects• Green and sustainable projects

• Well defined exit strategies

• Government support/continuity

• Development support/reliable partners

• Reporting in English and to international

standards

UCLG ASPAC – Congress

Jakarta, October 3, 2012

Copyrights: University of Washington

Urban Infrastructure Financing

Accessing Infrastructure Financing

2

What kind of infrastructure financing is

available for cities in Indonesia?

What should cities do to access the

financing?

Source of Financing

C

I

T

I

E

S

Cities own funds

National Government

Other Local

Government

Financial Institutions

Retail/people

ONSHORE FUNDS

Corporations

Foreign

Governments

International Donor

Agency

Financial Institutions

OFFSHORE FUNDS

Corporations

Sub-

sidiary

Loan/

Grant

Agree-

ment

Nat-

Gov.

PPP

Local

Corp.

3

4

Source of Infrastructure Financing for Cities

National Government

Other Local Governt

Retail/ People

Bonds Grant Loan

Subsidiary Loan /Grant Agreement

Loan

Governmt Investm.

Fund

Private Sector

Loan

Bank Non Bank

PPP

Financial Institutns

Corpora-tions

(non FI)

Loan

Budget Mechanism (APBD) Budget Mechanism(APBD)

Grant

Ministries’ Budget &

Mechanism

Cities/Local Government

5

Council

Approval

Proposal

Cities

Summary

of Prop

DRPPLN (List

of Priority)

DRPLN-JM

(List of

Potential

Activities)

REJECTED

RPPLN (Plan

for Offshore

Financing)

Inform plan

for DRPLN

Feasible

?

List of

Activities

(Projects)

Planning Agency

Ministries or

SOE Evaluation on

administration,

technical and

financial

Increase

Readiness

Meet

Req?

YES

NO

Ministry of Finance

NO

REVISE/IMPROVE

YES

1

2

3

4

56

7

9

Ministries or

SOEDetail

Proposal

7

Ministries or

SOE

Meet

readiness

criteria

8

3 mth after

Medium-

term Dev

Plan, revised

annually

6 mth after

Medium-

term Dev

Plan

Source: PER.004/M.PPN/2011

Subsidiary Loan Agreement Procedure

When forwarding the loan, the

Government (Ministry of

Finance) enters a subsidiary

loan agreement with cities.

Characteristics:

1. Grant is mostly used for preparation or assistance funds.

2. Cities involvement is quite limited in proposing grant.

3. Ministries can forward funds to cities as either grant or loan

(PER.004/M.PPN/2011). Each Ministry has its own mechanism of

distributing funds to cities e.g. RPIJM (Public Works).

Finding out financing mechanism in Sectoral Ministries

Type of Financing – Grant

Source:

National Government/Ministries

Offshore funds

G

R

A

N

T

7

Type of Financing – Loan

Characteristics:

1. Each financing has a different mechanism but all is subject to PP

30/2011

2. Some lenders are more stringent than others

3. Loan requires strong fiscal capacity, good financial management as well

as some degree of transparency

Source:

National Government (PIP, PT SMI, PT IFF)

Offshore funds – through SLA

Financial Institutions

Other LGs

Retail (Bonds)

More suitable for income generating projects

L

O

A

N

8

Type of Financing – PPP

Characteristics:

1. The part offered to private sector should be interesting enough for them

to participate

2. PPP requires advance knowledge on project structure

3. Initiatives can come from Ministries/Cities or Private Sector

Source:

National Government (PIP, PT SMI, PT IFF)

Private Sector (Corporations, State-Owned Enterprise, Local

Government Owned Companies and Cooperatives): PP56/2011

allows foreign legal entities

A PPP project can be a combination of different financing types

P

P

P

9

Challenges in Accessing Financing

Packaging. Packaging is about how to design financial scheme of a project to

be not only attractive but also fits the risk profile of each source of funds. This is

all about creativity, skills and experience.

Execution. Successful infrastructure financing needs not only good planning

but more importantly execution starting with establishing a team, timeline, target.

Financial Gap. Most cities depend on budget transfer from Government

which currently still dominates the city financial income structure (around 70-80%

of the total income) and is just enough for routine expenditures.

Prioritization. Considering the limited amount of funds, cities need to

prioritize their infrastructure projects.

Breakout Sessions/ Parallel Sessions III – Revitalize

Workshop

Case-studies of cultural planning and impacts

Application of Culture in City Planning Process

1. Consider a recent cultural event or activity in

your local government area

2. Discuss and reflect on any cultural impacts, 2. Discuss and reflect on any cultural impacts,

changes or issues that were uncovered

3. Think though the next similar event and in

planning would you enhance the cultural

impact or seek to reduce the cultural impact

4. How would you do it differently?

1st Discussion

Worksheet

2nd Discussion

Worksheet

Report back

Thank youThank you

Critical Issues: Matrix Overview

• Step 1: Brainstorming exercise – What are the critical issues?

(And what are the objectives in relation to those critical issues?)

• Step 2: Brainstorming exercise – What are the criteria for assessing issues?

(e.g. cost, urgency, ability to affect)

• Step 3: Consider driving forces and pressures • Step 3: Consider driving forces and pressures

• Step 4: Analyse Issues

– A. Compare and rate criteria

– B. Compare and rate issues – against all criteria

– C. Assess impacts (positive and negative) between issues

• Step 5: Interpret results

– What is the overall assessment of positive vs negative impacts?

– What is the final shortlist of material issues?

Critical Issues Matrix

• Iterative

• Continual

• ‘Virtuous’ Cycle• ‘Virtuous’ Cycle

• Compatible with

macro-strategic

review processes

GrazieGrazie

Thank you

Merci

Obrigado

謝謝Danke

Paul James