IFC Sustainable Cities, Phase II

Rapid urbanization and climate change have amplified existing urban challenges. Cities house over half of the global population. They also generate 80 percent of the global GDP, consume two-thirds of the energy produced, and are the sources of 70 percent of global carbon emissions. Urban infrastructure and services therefore have a profound impact on the global green transition and quality of life. Therefore, it is essential for municipalities to strategically think about their developmental needs and ramp-up investments in sustainable, particularly low-carbon and climate-resilient, infrastructure.

The program’s overall goal is improved access to reliable and affordable urban infrastructure services that enables cities to realize their full socio-economic potential and improve quality of life for their citizens through mobilizing commercial finance and private sector delivery models.

Capacity building: Partner entities improve operational, technical, financial and E&S management capacity

Strategic planning: Partner entities undertake strategic planning, and high-impact projects are identified and prioritized

Project preparation support: Partner entities develop a pipeline of projects which are more likely to be bankable

Project delivery support: Project issues (e.g. E&S Performance Standards) affecting the feasibility and bankability are addressed

Policy dialogue: National governments enhance policy framework to improve the enabling environment, e.g. by adopting new laws or regulations and approving new financing options

Knowledge sharing: Stakeholders increase their knowledge of innovative projects & funding models to address infrastructure needs

Resultados previstos:  

Capacity building: IFC provides capacity building in areas including E&S performance, financial management, sustainable finance, climate/resilience, and technical expertise

Strategy planning: IFC supports sector strategies/plans for partner entities (e.g., Smart City Strategy, NRW Reduction Strategy) and delivers project prioritization support to select most viable projects with high development impact

Project preparation support: IFC helps partner entities with designing and preparing bankable projects through advisory services such as pre-/feasibility assessments, technology guidance, PPP transaction advisory services

Project delivery support: IFC delivers advisory guidance (e.g., E&S assessment, procurement process and documentation) to address issues affecting the feasibility and bankability of projects

Policy dialogue: IFC conducts legal assessment and regulatory review, and provides regulatory advice

Knowledge sharing activities including roundtables, workshops, and publications

Resultados de las fases anteriores:  

The first phase of the Program (2018-2023) largely achieved its objectives of facilitating non-sovereign finance for subnational governments. A total of USD 393 million in commercial financing were facilitated, of which USD 289 million from IFC and USD 104 million from the private sector. For example, in Ukraine the program has facilitated USD 70 million investment across three cities with a strong focus on public transport.

Through the Program, an estimated 1.7 million people received access to improved infrastructure services. For example, the Bogota Transmicable and Caracas Sur projects improved the city's integration and inclusiveness by connecting people in underserved neighborhoods

14 cities adopted and implemented strategies and shared methodologies supported by the Program. For instance, South Arica’s Ekurhuleni Metropolitan Municipality is developing a power purchase agreement based on IFC’s diagnostics and recommendations on the city’s power sector.