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rural-urban dynamics_report.pdf - Khazar University

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GLOBAL MONITORING REPORT 2013 URBANIZATION AND THE MDGS 167<br />

infrastructure investment planning and<br />

programming and project management.<br />

As of December 2012, the CDIA had<br />

approved applications from four cities in<br />

thirteen countries with a number of others<br />

under consideration. These interventions<br />

are estimated to lead to about $6.5 billion in<br />

strategic <strong>urban</strong> infrastructure investments.<br />

In the current portfolio, <strong>urban</strong> transport is<br />

the largest CDIA sector, followed by flood<br />

and drainage management, <strong>urban</strong> renewal,<br />

and wastewater management. While the<br />

ADB and the KfW (German government–<br />

owned development bank) are the primary<br />

downstream financiers, increasing emphasis<br />

is being placed on assisting cities to bring in<br />

additional financing through PPPs. Although<br />

the CDIA focuses on environmental improvement,<br />

poverty reduction, and governance<br />

aspects, its work has invariably contributed<br />

to a wider set of cross-cutting impacts.<br />

Especially through capacity strengthening,<br />

the CDIA has contributed to improved governance<br />

with city partner agencies (see also<br />

Linfield and Steinberg 2012).<br />

European Bank for<br />

Reconstruction and<br />

Development<br />

The activities of the European Bank for<br />

Reconstruction and Development (EBRD)<br />

that address issues related to <strong>urban</strong>ization<br />

differ from those implemented by other multilateral<br />

development banks. The EBRD has a<br />

specific mandate that identifies the main goal<br />

as support for its member countries in their<br />

transition to market economies. Through<br />

a variety of products (both investment and<br />

technical co-operation) offered to private<br />

and public sector clients representing a range<br />

of different sectors, the EBRD therefore<br />

has a specific role that indirectly addresses<br />

the <strong>urban</strong>ization issue. This role involves<br />

improving the business environment and<br />

removing infrastructure bottlenecks, both of<br />

which are crucial in facilitating the <strong>urban</strong>ization<br />

process in EBRD’s 34 countries of<br />

operation. Examples include specifically targeting<br />

micro, small, and medium enterprises<br />

in <strong>rural</strong> underserved areas for finance loans<br />

and supporting the involvement of farmers by<br />

extending backward linkages in agribusiness.<br />

The EBRD also plays an active role in<br />

helping put adequate infrastructure in place<br />

to facilitate changing <strong>urban</strong>-<strong>rural</strong> <strong>dynamics</strong><br />

and to minimize the negative impact of<br />

<strong>urban</strong>ization on cities. The EBRD’s activities<br />

in the water and wastewater sector aim<br />

at achieving an enhanced and sustainable<br />

provision of services to <strong>urban</strong> populations.<br />

These operations are based on sustainable<br />

cost-recovery tariff structures; the development<br />

of robust regulatory approaches with a<br />

focus on the modernization of infrastructure;<br />

the promotion of appropriate environmental,<br />

social, health, and safety improvements that<br />

result in high-quality service delivery; and<br />

management efficiency. Since its inception,<br />

the EBRD has rapidly expanded its activities<br />

in the water and wastewater sectors throughout<br />

its countries of operation. To date, EBRD<br />

has financed over 130 water and wastewater<br />

projects, for a total of e2 billion.<br />

Improvement in <strong>urban</strong> transport, in<br />

which the EBRD has been actively involved,<br />

is another essential component of facilitating<br />

<strong>urban</strong>ization processes. Urban transport<br />

has a unique ability to provide high-quality<br />

alternatives to use of private cars and is thus a<br />

viable antidote to <strong>urban</strong> congestion and pollution,<br />

two negative consequences of <strong>urban</strong>ization.<br />

Urban transport provides value added<br />

to the <strong>urban</strong> environment and increases the<br />

general quality of life for the <strong>urban</strong> population<br />

by improving air quality, reducing delays<br />

caused by congestion, and contributing to<br />

carbon reductions. The EBRD has financed<br />

more than 60 <strong>urban</strong> projects in different<br />

countries of operation, for a total of e1.4<br />

billion. The EBRD addresses complex issues<br />

related to a variety of existing bottlenecks in<br />

the <strong>urban</strong> transport sector by implementing<br />

an integrated approach that consists of investments,<br />

technical assistance aimed at improving<br />

management capabilities, and policy dialogue<br />

with local and national authorities to

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