63627 42 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION 2010 ANNUAL REPORT An Alliance in Transition WITHOUT SLUMS 1818 H Street, N.W. | Washington, D.C. 20433 | USA Tel: 202.473.9233 | Fax: 202.522.3224 info@citiesalliance.org | www.citiesalliance.org ii 41 Contents FOREWORD 01 PHOTO CREDITS: Cover: Sean Sprague/Peter Arnold Page 1: Ciete Silvero/São Paulo CITIES ALLIANCE IN ACTION 02 Page 3: ACHARYA-UNEP/Peter Arnold Page 4: Achim Pol/Peter Arnold An Alliance in Transition 03 Page 6: Ron Gilling/Peter Arnold De�ning Cities Alliance’ Operational Approach to Change 08 Page 7: Anja Kessler/Peter Arnold Page 8: Alex Ricardo Jimenez/Cities Alliance The Four Pillars of the Cities Alliance’ Work Programme 11 Page 10: Alex Ricardo Jimenez/Cities Alliance I. The Catalytic Fund 11 Page 11: Chii Akporji/Cities Alliance Page 14: Courtesy: MoLHUD, Uganda II. Country Programmes 12 Page 15: George Mulala/Peter Arnold III. Knowledge and Learning 15 Page 16: Tran Thi Hoa/World Bank Page 17: Simone D. McCourtie/World Bank IV. Communications and Advocacy 20 Page 18: Daniel Ducci/Municipality of São Paulo Page 19: Eric Miller/Peter Arnold CITIES ALLIANCE ORGANISATION 25 Page 20: Alex Ricardo Jimenez/Cities Alliance Page 26: Ron Giling/Peter Arnold Page 28: Andrea Zeman/Cities Alliance CITIES ALLIANCE FINANCIAL REPORT 30 Page 31: Ron Giling/Peter Arnold ABBREVIATIONS & ACRONYMS 40 PRODUCTION CREDITS: Managing Editor: Chii Akporji Design: The Word Express Printing: York Graphic Services. 1 Foreword William Cobbett I t is my pleasure to present the Cities Alliance These changes are due to be reflected in the adop- 2010 Annual Report. This has been an impor- tion of a revised Charter at our Consultative Group tant and transitional year for the Cities Alliance, meeting in Mexico City towards the end of the year. with a number of signi�cant developments. After I am extremely con�dent that, in taking these bold a period of intensive and constructive discussion decisions, our members will have provided an excel- amongst our members, the contours of our future lent and stable platform for the Cities Alliance over direction are becoming ever more clear. Let me the next few years. single out the following highlights from 2010: For my part, I am very grateful for the lively partici- :: The launch of our �rst country programme pation, and passion, shown by our members, as well in Uganda, in partnership with national and as the support and guidance that the Secretariat has local government. A range of members, from received from the Cities Alliance Executive Commit- the World Bank to Slum Dwellers International tee (EXCO). I would also like to acknowledge the (SDI), and local partners—from NGOs to the wonderful support and advice that I have received University of Makerere—are now engaged in a from Elisabeth Gateau, secretary general of United multi-year programme that, if successful, could Cities and Local Government (UCLG) and the chair have a profound impact on urban development of the Cities Alliance’ Executive Committee, and the in Uganda; encouragement and guidance that I have received :: The adoption of a new business model that saw from Zoubida Allaoua, Director, Finance, Econom- the closure of the old grant facility, the approval ics and Urban (FEU) at the World Bank. of a country programme approach, the design of the new Catalytic Fund, as well as the reor- Most importantly, I would like to thank all members ganisation of the Secretariat; of the Secretariat, for their excellent and consistent :: Strengthening of the Cities Alliance as a part- dedication, their constant support and—not least— nership, with our members taking the lead and for their good humour. We have needed it. the secretariat playing a more facilitative role; :: Improved integration and alignment with the William Cobbett World Bank, our co-founder and host. Manager SECTION 1 Cities Alliance in Action 3 New high-rise blocks alongside slum dwellings by the river in Mumbai, India. An Alliance in Transition D uring the period under review (the �scal :: Increasing ownership and promoting leader- year ending 30 June 2010), Cities Alliance ship of cities; for example, through greater underwent some of the most fundamental devolution of powers to cities from national operational and organisational changes of its 10-year governments; history. The process of transition was catalysed at the :: Raising the pro�le of cities, and of slums, in Barcelona meetings of the Consultative Group (the the minds of the stakeholders and audiences of board of directors of Cities Alliance) in January 2009, Cities Alliance; when the Alliance’s medium-term strategy (2008–10), :: Increasing the depth and breadth of involve- designed to consolidate and build upon the mandate ment of the members of Cities Alliance; and, and success of Cities Alliance after its �rst eight years :: Continually improving the management of the of operation, was formally approved. The implemen- Cities Alliance work programme. tation of that strategy, as well as related issues and consequences which were thrown into high relief as a However, making the most of the greater atten- result, motivated a process of revaluation and a shift tion being paid to cities and slums will require towards change. The change process was given an better leveraging of the Alliance’s unique member- added impetus by the celebrations of the Alliance’s ship—from the World Bank to slum dwellers—and tenth anniversary (held in Mumbai in January 2010), improvements in the ef�ciency and management of which provided excellent opportunities to assess the Cities Alliance. Alliance’s achievements, plans, and potential. The change process at work since 2009 has also The overarching goal of the medium-term strategy been fuelled by dynamics in the global debate over is to increase the contribution of Cities Alliance to urban development, in which healthy, thriving cit- systemic change in urban environments by: ies have gained the status of a global public good. 4 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION shifts in urban development were occurring in Sub-Saharan Africa, hitherto the locus of many ill- advised and counterproductive policies at both the local and national levels. In both the more-urbanised countries of West Africa (such as Senegal, Benin, and Ghana), as well as those noted for low levels of ur- banisation (such as Uganda, Malawi, and Tanzania), new policies and initiatives to respond to the grow- ing urban reality have begun to emerge. Elsewhere in the world, India has embarked on a bolder approach, introducing comprehensive programmes to reform cities and upgrade slums on an unprecedented scale. Other contextual motivations for the Alliance’s movement towards change include (i) shifts in the architecture of development assistance, with greater emphasis on results and accountability, and the emergence of new models of cooperation which reject top-down, high-cost, patronising models of development assistance; (ii) the global �nancial and economic crisis, which touched all urban com- munities and investment �nancing systems around the world, creating a need for improved systems of Slum on the outskirts of Lima, Peru �nancing; and (iii) the emerging risks posed by the effects of climate change. Recent reports from private organisations (McK- The tide towards change was bolstered by modi�ca- insey, Arup), United Nations agencies (UNFPA, tions to the World Bank trust funds which govern UN-Habitat), and the World Bank (World Develop- Cities Alliance procedures. Changes in grant- ment Report 2009) have highlighted the nature and making procedures—as well as in the Development challenges of urbanisation, in each case making a Grant Facility, the source of the World Bank’s compelling case for the importance of cities and contributions to the Alliance’s core funds—meant systems of cities in the global economy. that Cities Alliance had to align itself more closely with Bank operations and ensure the strategic The consensus which has emerged from the recent relevance of all Cities Alliance members (the World debates is that while cities have problems associ- Bank included)—all in the interest of improving the ated with a broad range of de�cits—including poor coherence of Alliance operations. planning in the face of rapid urban growth and a nonexistent or hostile policy environment—the Taken together, these factors prompted an intro- cities themselves are not the problem. Rather the spective deliberative process within the Alliance, key message from the emerging advocacy on cities one with the potential to produce far-reaching is that cities must simultaneously respond to their consequences for the future of the Alliance and its current challenges and, more critically, plan better operations. It was and still is a process, not an abrupt for future growth. shift. With it the Alliance began to move towards a more programmatic and results-oriented approach The coalescing of that consensus was helped along to the implementation of its medium-term strategy. by evidence that some of the most perceptible policy Cities Alliance activities were, however, still be- AN ALLIANCE IN TRANSITION 5 ing processed under its original open-access grant Two activities funded from the old grant facility il- facility, which made up approximately 80 percent of lustrate the Alliance’s emerging new business model: grant funding support. That facility formally closed (i) the Dar es Salaam Investment Resource Mobili- on 31 March 2010 to make way for a new grant facil- sation for Metropolitan Development project, and ity better aligned with the new goals of catalysing (ii) support for the publication of the City Statute of change towards inclusive cities. Brazil, a collaboration with Brazil’s Ministry of Cit- ies. A brief review of these two activities will clarify As of June 2010 the Alliance had processed 235 the reasoning behind the evolving business model. projects under the old facility, with grant approvals of more than US$70 million for country-speci�c projects and more than US$42 million for regional Putting Cities in the Driver’s Seat of and global projects. For the year under review Urban Mitigation Efforts: the Dar es the Alliance approved US$16 million, the highest Salaam Investment Resource Mobilisation amount since 2006, including $10.7 million of allo- for Metropolitan Development cations from the Alliance’s core funds. A total of 38 projects were approved during 2010 (�gure 1), with This project is designed to support the city of Dar es increasing numbers of these approvals reflecting the Salaam in its efforts to address its massive infra- Alliance’s shift towards longer-term, programmatic structure de�cits. Dar es Salaam is Tanzania’s largest commitments that raise the pro�le of cities and and most important industrial and commercial slums and aim to effect systemic change. centre, with an estimated population of about 4 FIGURE 1 Summary of Cities Alliance Portfolio Growth from 2000 to 2010 257 219 300 193 168 247 Number of projects 154 209 250 114 183 200 89 160 73 144 56 150 44 108 17 85 69 100 53 42 38 15 50 27 25 37 25 26 17 12 17 16 17 27 23 36 23 26 38 15 11 16 16 16 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal year of project approval Number of projects funded Number of new projects Cumulative number of projects funded Cumulative number of projects approved Note: A. Figures reflect both country-speci�c projects and regional/global projects. B. Projects do not include: (1) Community-Led Infrastructure Finance Facility (CLIFF) Activities and (2) Slum Upgrading Facility (SUF) Activities C. Projects cancelled during project preparation and project implementation were included in the calculation of �gure 1. 6 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION million. The city generates approximately 40 percent Alliance. Estimated to cost approximately US$375 of Tanzania’s GDP and more than 80 percent of the million, the massive programme the city proposed national government’s domestic revenues. As a port is intended to engage the government of Tanzania city, it is critical not only to Tanzania but also to and other development partners to address the city’s the region of Eastern Africa as a whole, particularly urban challenges. Projected activities include the to the landlocked countries surrounding Tanzania, upgrading of the road network to link communities such as Uganda, Rwanda, Burundi, and Zambia. and improve intra-city mobility; the upgrading of storm and road drains and drainage systems to de- Dar es Salaam has a population growth rate of 4.3 crease wide spread flooding and reduce related public percent per year, but lacks the capacity to effec- health risks; the institution of a city-wide solid waste tively cope with its rapid urbanisation. Most of the management system, including collection, transport, city’s built up areas where more than 70 percent of and disposal systems; and the strengthening of urban the residents live remain unplanned. Land tenure management to improve revenue collection and is insecure, while massive infrastructure de�cits �nancial management. in housing, transport, and water and sanitation services prevent the citizenry from accessing basic To launch the programme and create the awareness infrastructure and social services. necessary for attracting the requisite funding support, the city partnered with Municipal Councils of Ilala, Guided by an enabling national regulatory framework Kinondoni, and Temeke to organise a forum on 3 which encouraged the greater devolution of power May 2010. The objective was to sensitise representa- and resources to local governments, the city proposed tives of the national government and the development a priority Dar es Salaam Infrastructure Development partner community to the needs and priorities of Dar Programme to the World Bank, which sought initial es Salaam, and more importantly to seek their views funding support for project appraisal from the Cities and support for the city’s development efforts. Aerial view of Dar es Salaam with the port in the background AN ALLIANCE IN TRANSITION 7 The forum was well-attended and generated tre- mendous interest in Dar es Salaam’s infrastructure development from the national government, interna- tional development agencies, and the private sector. For example, a South African waste management company was prompted to explore the potential public private partnerships in solid waste disposal systems. The city’s decision to catalyse dialogue among its partners about how to address its urbani- sation challenges has better positioned it to attract investment �nancing from donors and investors. Competing for land – slums and high-rises in Sao Paulo, Brazil Catalysing Change in Land Tenure through Urban Regulatory Reform in Brazil to the creation of the Ministry of Cities—the �rst In partnership with the Ministry of Cities, the Cities country-level ministry in the world dedicated solely Alliance supported the publication and dissemina- to urban issues—and the National Cities Council in tion of Brazil’s City Statute (Federal Law Number 2003, which together provide the sociopolitical basis 10.257), which was approved in 2001. Arguably one of for the legal reform outlined in the City Statute. the most far reaching urban policy reform measures introduced in recent years, the City Statute was the re- The principles of the City Statute have under- sult of over ten years of intensive negotiation among standably generated disputes among jurists, urban diverse social and political forces, including citizens’ development specialists, property developers, and or- movements, professional bodies, academic institu- ganised social movements about how best to interpret tions, trade unions, researchers, NGOs, parliamentary and implement them. For example, there was strong representatives, and progressive town mayors. resistance in the Brazilian Congress and elsewhere from the landed gentry to the right to urban property The City Statute regulated and expanded consti- ownership in accordance with the constitutional prin- tutional measures on urban policy and explicitly ciple governing the social functions of property and acknowledged the right of all citizens to the sustain- the city. Despite the limitations of the City Statute able city in Brazil. It also reinforced the fundamental and the tensions it has created, it remains one of the role of the municipalities as formulators of urban most signi�cant urban regulatory reforms in recent planning policies, as had been originally promul- times and has undoubtedly contributed to progress. gated in 1988 in the country’s constitution, and brought the municipalities into the mainstream of Cities Alliance’s support for the City Statute was pro- development and urban management processes. vided in the context of a partnership with Brazil that dates back to 2001 and has been gaining strength ever The Statute consolidates into a single text an unwieldy since. The partnership facilitates close engagement number of themes relevant to democratic gover- with city, state, and national policy makers on social nance, including the right to the city, to territorial housing and slum upgrading and on the design and organisation, to urban planning, and to democratic implementation of urban planning and knowledge management. In addition, it includes the obligation tools. It has become a fundamental component of na- of public authorities to undertake urban policies tional slum upgrading and pro-poor housing policies that guarantee property and the social functions of all over the country and has created opportunities for the city and bene�t the citizenry. The same negotia- international knowledge sharing. The Alliance contin- tion process that gave rise to the City Statute also led ues to maintain a regional of�ce based in São Paulo. 8 San Javier Park Library, Medellin, Colombia, reflecting upgrading in Comuna 13 of Medellin De�ning Cities Alliance’ Operational Approach to Change T he broad features of Cities Alliance’s nity for the urban poor. Taking stock of its 10 years evolving business model include the fol- of support of slum upgrading and city development, lowing: the Alliance de�nes an inclusive city as one that: :: Support for longer term programmatic engage- :: Has an empowered citizenry engaged in urban ments with communities and national and local development; governments; :: Provides security of tenure and access to shelter; :: Support for activities that are structured within :: Is adapted to the environment; and enhance a favourable national urban policy :: Has effective and responsive city management; environment; :: Provides access to affordable services; and, :: Support for activities that are prepared with :: Provides access to economic opportunities. wide-ranging stakeholder consultations; and, :: Support for activities which have the potential Drawing from the considerable experience of its for catalytic effects and far-reaching impact 10 year project portfolio, the Alliance avers that and scale. transformative processes require the commitment, ownership, and leadership of local stakeholders. With these elements in mind, the Secretariat began Successful transformative processes are driven by to clarify the business model for members and the city and involve national governments, local clients alike. Identifying the city as the entry point governments, civil society, and the private sector, for any intervention, the Alliance af�rmed a new as well as supporting partners such as development commitment to funding for and support for what it agencies and �nancing institutions. Collectively called, “transformative processes towards inclusive referred to as the drivers of urban transformation, cities.� These processes need to be comprehensive these stakeholders cooperate on a broad range of and holistic, providing space, voice, and opportu- actions (�gure 2). They mobilise �nancing, enhance DEFINING CITIES ALLIANCE’ OPERATIONAL APPROACH TO CHANGE 9 FIGURE 2 Drivers of urban development and the outcomes of their interaction. Local authorities Supporting National Implement partners governments strategies Mobilise Adjust financing organisations Engage in dialogues + cooperation Enhance Increase knowledge awareness Elaborate Private strategies Civil sector society knowledge, elaborate and implement strategies, and ing them. In doing so, they catalyse and consolidate so on. broad and inclusive partnerships. Keeping in mind the lessons learned, local and national governments Successful urban transformation processes give the can team up with communities and development drivers a better appreciation of the situation of the partners like Cities Alliance to implement policies, urban poor and their contribution to urban devel- strategies, and plans and mobilise �nancing and opment. Local governments and their partners also other resources needed to create more inclusive gain deeper knowledge about what inclusive urban cities. Cities Alliance support acts to catalyse these development means and initiate meaningful dia- transformative processes leading to inclusive cities logues and exchange ideas with all stakeholders on (�gure 3). the urban issues, challenges, and opportunities fac- 10 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION FIGURE 3 Stylized urban transformation processes catalysed by Cities Alliance support Longer Term Outcome Long term outcomes: More effective and responsive city Inclusive What improvements are management, better access to affordable cities there on the ground? services and to economic opportunities, more adapted to the environment, more security of tenure and access to shelter, better empowered citizenry. Short Term Outcomes, use of Outputs Urban Medium term outcomes: Partners increase their awareness, transformation How is CA support used, enhance their knowledge, engage in by whom and to what meaningful dialogues and cooperation, effect? Is the quality of elaborate policies, strategies and plans, the transformation adjust their organisations, mobilise financing, implement inclusive urban process being improved? policies, strategies and plans. Outputs Among other: advocacy strategies; analytic work and data; learning opportunities; proposal for organisational and legal reform; convening of dialogues; methodologies for planning; continuous CA CA inputs: process support. support Is CA support being well delivered? CA Inputs and Activities Slum scene in Old Fadame, Accra, Ghana. 11 Upgrading housing in a slum in São Paulo, Brazil The Four Pillars of the Cities Alliance Work Programme T o more strategically frame this process I. The Catalytic Fund of change the Alliance is adapting the erstwhile slum upgrading and city develop- Unlike the old open access grant facility, CatFund ment strategy instruments of the partnership into grants will be awarded within the context of a four work programme pillars: the Catalytic Fund, competitive call for project concept notes to be sent Country programmes, Knowledge and Learning, out twice a year. The concept notes will be evalu- and Communications and Advocacy. The old grant ated, and then selected proponents will be invited to facility is being transformed into a new Catalytic develop them into proposals. These will be subject Fund (CatFund) while the lessons from its �rst 10 to further competitive evaluation, and proposals years of operations are being encapsulated into a that meet the programmatic focus of the Cities Alli- more strategic and programmatic approach called ance portfolio and enhance its catalytic impact will country programmes. This is aimed at improving be selected. An external evaluation panel will assist support for urban development issues in lower- the Secretariat in the selection process and ensure income economies. The Alliance is also adopting objectivity and transparency. a knowledge programme driven by joint activities with members, in addition to a more focused com- Projected to be formally launched in the �rst munications and advocacy programme motivated quarter of 2011, the Cat Fund will provide support by these same partnerships. The proposals for the to cities attempting transformative change. Selec- four work programme pillars were were endorsed tion criteria for proposals will include the nine core at the Mumbai Consultative Group meetings and criteria for eligibility for funding from the Cities Al- were still being �nalised as of the end of �scal year liance charter (see box 1). In addition, proposals will 2010. be ranked and selected on the basis of an assessment 12 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION BOX 1 Nine criteria for evaluating Cities Alliance proposals 1. Targeting the objective: The activity must aim to 5. Co-�nancing: All proposals should include co- promote pro-poor policies, reduce urban poverty �nancing, combining seed funding from the Cities (including promoting the role of women in city Alliance with at least 20 percent �nancing of the development) and/or support scaling up of slum total project budget from the cities themselves upgrading and/or city development strategies. and other sources. Co-�nancing can be in the form 2. Government Commitment and Approval: The of in-kind contributions. activity must have government/local authority 6. Coherence of Effort: Activities should be de- commitment and approval. signed to maximise collaboration between Cities 3. Linkage to Investment Follow-up: Where ap- Alliance partners. propriate, development banks and private and 7. Scaling-up: The proposal should focus on design- public sector investment partners should be clearly ing activities with city-wide or nationwide scale identi�ed and involved from the beginning in rather than on pilot projects. the design of the activity to increase the odds of 8. Institutionalisation and replication: Activities investment follow-up for implementation. should contribute to the creation of mechanisms 4. Partnerships: Proposals must be based upon that help cities and their national associations insti- participatory and democratic processes involv- tutionalise support for city development strategies ing local stakeholders, including both the private and citywide and nationwide upgrading programs sector and community organisations. They must so as to facilitate replication in other cities. include appropriate strategies and actions to 9. Positive Impact on Environment: Activities ensure participation of and ownership by resident supported by the Cities Alliance are expected to communities. Proposals should demonstrate the achieve signi�cant environmental outcomes. nature and extent of participation by all relevant stakeholders. of the catalytic effect of the proposed activity. Pro- studies by the applicant to a peer audience at fo- posals most likely to qualify will be those that aim to rums such as the World Urban Forums, the UCLG catalyse change towards more inclusive cities. congresses, and Africities. Successful proposals will endorse systems of partnerships that harness the synergy of multiple II. Country Programmes drivers of transformation towards a common goal as the required foundation for the transforma- A country programme supports the process of tive process in a city. Projects to be funded by the transformation towards inclusive cities through Catalytic Fund will also advance the collective the institutionalisation of dialogue and operational know-how of all city drivers by sharing knowledge partnerships between the drivers of urban develop- and learning experiences with a broader audience. ment in selected countries. Country programmes Priority will be given to project proposals with are longer term, demand-oriented interventions a high potential for generating case studies and uniquely tailored to each country’s urbanisation practical experiences with well-de�ned problems context and needs. Country programmes aim to that address local needs as well as the knowledge maximise the coherence of partnerships and to interests of the Alliance. Primary instruments for engender and consolidate national urban agendas knowledge generation and sharing include city- focused on inclusive, pro-poor cities. Leveraging to-city exchanges; advisory services provided by the power of the Cities Alliance as an alliance that Alliance members; and the presentation of case brings together the key drivers of change, country THE FOUR PILLARS OF THE CITIES ALLIANCE WORK PROGRAMME 13 programmes facilitate engagements with stakehold- enable a better policy environment for ef�cient and ers at all levels of the urban development spectrum, effective urban management. The LSC programme —national, local, community, and private—to: mobilises signi�cant funds beyond those available through Cities Alliance core funds to support a :: Improve national urban policies to reflect the carefully selected group of countries to manage the input of local authorities and of communities; urbanisation process and plan for inclusive cities. :: Develop urban strategies and policies that Preliminary focus of the LSC is on lower-income reflect and respond to the needs of the urban countries, particularly those in Sub-Saharan Africa. poor; Country selection is guided by three key criteria: :: Develop credible urban development plans (i) demonstrated demand from the national govern- aligned with investment �nancing. A series of ment; (ii) political commitment to addressing the facilitated exchange between all stakeholders is needs of the urban poor; and (iii) the nature and critical to ensure that programme design meets extent of the Cities Alliance member engagement in these objectives. the country. During the year under review, the Land, Services, The LSC is currently being rolled out in three and Citizenship for the Urban Poor (LSC) pro- countries of focus—Uganda, Ghana, and Vietnam. gramme came to best exemplify the workings of Implementation is far more advanced in Uganda a country programme. Funded by the Bill and than in Ghana or Vietnam. In Uganda, the LSC is Melinda Gates Foundation, the LSC programme is called “Transforming Settlements of the Urban Poor a longer term intervention mechanism that aims to in Uganda� (TSUPU) (see box 2). The programme build citizenship and good governance at the local targets secondary towns and focuses on communi- level, improve access to land and urban services, and ties and national and municipal governments. Local BOX 2 Transforming Settlements of the Urban Poor in Uganda (TSUPU) In Uganda, the LSC programme is called “Transforming :: The agreement by the World Bank’s Energy Sector Settlements of the Urban Poor in Uganda� (TSUPU). Management Assistance Program (ESMAP) to work TSUPU has the overarching objective to create inclusive with TSUPU to extend energy access to secondary cities without slums in Uganda and is focused on cities using its resources for Sub-Saharan Africa. secondary cities based on the consensus that these :: The formal partnership between the International represent the best opportunities for managing rapid City Managers’ Association (ICMA) and the Urban urbanisation and ensuring a better urban future for Authorities Association of Uganda to assist the their citizens. The Ministry of Lands, Housing and Urban government of Uganda to successfully implement Development (MOLHUD) and other stakeholders the TSUPU. selected �ve secondary cities for the roll out of TSUPU: Jinja, Mbarara, Mbale, Kabale, and Arua. Arguably the most visible outcome of TSUPU so far has been the launch by the government of the Uganda So far TSUPU has had the following outcomes: National Urban Forum (UNUF) on 6 May 2010. UNUF aims to promote sustainable development in Uganda :: The incorporation of urban development into the by enhancing cooperation and networking, advocacy Uganda Country Assistance Strategy and the recog- and lobby, research and training, and access to support nition that urban development is a vehicle for the priority programmes. structural transformation of the Ugandan economy. 14 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION Celebrating the launch of UNUF in Kampala. leadership and ownership of the programme, in this In Vietnam, programme design focuses on sup- case by the Ministry of Land, Housing and Urban porting efforts to scale up community-based slum Development is fundamental to the programme upgrading. Cities Alliance’s approach is to bridge design. the gaps between the ongoing work of the national government, the Association of Cities of Vietnam The Uganda LSC initiative is designed to facili- Network, the Asian Coalition for Housing Rights, tate national and municipal-level forums that will and Cities Alliance members. The government of provide for the establishment of shared understand- Vietnam is seeking to operationalise its National ing and partnerships based on reciprocal rights and Urban Upgrading Strategy, which aims to promote responsibilities, which are essential to citizenship participatory planning methods for upgrading and good governance. A number of municipal-level that are more responsive to citizens’ needs. More- forums—including those in Mbarara and Mbala— over, an existing community upgrading process have since taken off. involving the Association of Cities of Vietnam and a system of Community Development Funds, In Ghana, the actions taken by the Accra Metropoli- developed with support from the Asian Coalition tan Assembly to evict slum dwellers during early of Housing Rights, is underway, with potential for meetings on programme design sparked a national replication. debate around forced evictions. Cities Alliance’s approach was to encourage the debate to unfold and The Cities Alliance has already committed its own to strategically point to the types of interventions resources to support a Vietnam Urbanisation that match the circumstances, while also giving time Review, a new tool developed by the World Bank for a meaningful commitment to the urban poor to as part of its urban and local government strat- take shape. Preliminary programme design has been egy. The review will help policy makers to better endorsed by the Ministry of Local Government and understand and manage the urbanisation process Rural Development. and prioritise investments for the urban poor. The THE FOUR PILLARS OF THE CITIES ALLIANCE WORK PROGRAMME 15 programme also anticipates support from multi- Additionally, knowledge and learning activities will lateral development banks, including the World showcase other multidimensional action areas es- Bank’s International Development Association sential to the building of more inclusive cities, such (IDA) and the Asian Development Bank’s (ADB) as gender and youth. City Development Initiative for Asia (CDIA). Based on the consultation processes with the various The primary instruments for leveraging the Alli- stakeholders thus far, the Cities Alliance expects its ance’s knowledge are the joint work programmes members to coalesce around the objectives of the (JWPs) between Cities Alliance members and LSC programme and to improve the lives of the partners. JWPs leverage members’ comparative urban poor. advantages to generate coordinated approaches and to deepen knowledge on cross-sectoral topics such as climate change, the environment, and integrated III. Knowledge and Learning urban environmental planning. The JWPs also nurture stronger and more effective partnerships Cities Alliance has always supported activities that between Alliance members and city stakeholders in generate knowledge and learning. This third pillar addressing environmental challenges that affect the of the Cities Alliance work programme is now to economic and social lives of citizens, particularly the focus knowledge and learning speci�cally on experi- most vulnerable. ences and case studies of transformative processes towards inclusive cities. These would be analysed, During the year under review, the Alliance ap- packaged, and disseminated to urban development proved a number of signi�cant JWPs, most of which practitioners to facilitate better informed policy dia- focused on the environment and the impacts of cli- logues at the local, national, and international levels. mate change. These followed on the heels of ongoing General view of the mud-�lled in Toi Market within the sprawling Kibera slums in Nairobi November 23, 2006. 16 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION JWPs on the environment that had begun to yield some early results. For example, the JWP on Cities and Climate Change—established between UNEP, UN-Habitat, and the World Bank—aims to leverage the resources and knowledge of the three organi- sations to more ef�ciently address the effects of climate change on cities. The programme has already made signi�cant progress on one of its major deliv- erables, the greenhouse gas standard (GHG)for cities which was launched at the Fifth World Urban Forum in Rio de Janeiro in March 2010. The standard provides cities with baseline information reviewed by several organisations that have worked in GHG Protocols—such as the World Resources Institute (WRI), ICLEI, and the World Business Council on Sustainable Development (WBCSD)—so that they can monitor their emissions. The GHG is already being implemented by cities such as Bangkok. A second JWP between Cities Alliance and UNEP focuses on assisting city of�cials and practitioners to integrate environmental concerns into their city management and planning practices. In doing so, the partners aim to make more coherent use of The beginning of the rice harvest, Mai Chau, Hoa Binh environment tools through a common framework province, northern Vietnam and methodology that will enhance coordination on the ground, both for conceiving and implement- ing projects. This will ultimately bene�t cities and their citizens. launched in June 2009 at the World Bank Urban Research Symposium in Marseilles, France. It is an in- During the year under review, several JWPs were ap- tegral component of the World Bank’s new urban and proved. One JWP with the World Bank is exploring local government strategy positioned as a new urban the linkages between climate change, disaster risk, sector business line “promoting a safe and sustainable and their effects on the urban poor through case urban environment.� It also advocates a focus on im- studies from Mexico City, Jakarta, São Paulo, and proved urban form and design to achieve ef�ciency Dar es Salaam. The �nal report will be presented at gains, reduce a city’s greenhouse gas emissions, and the C401 meeting in 2011. take advantage of the co-bene�ts of climate change mitigation and adaptation. The Eco2 approach The main focus of the “Eco2� JWP with the World provides cities with an analytical and operational Bank is to deliver training activities on the Eco2 framework that they can apply to their particular approach (Ecological Cities as Economic Cities) challenges. Adopting a bottom-up approach which to Indonesia, Vietnam, and the Philippines and to builds on local initiatives and incorporates key stake- promote exchange of learning in Asia about related holders’ priorities and concerns, it also helps cities topics and approaches, including Japan’s experiences to access the �nancial resources needed for strategic with sustainability in cities. The Eco2 Initiative was urban infrastructure investments. 1 The C40 is a group of cities that work closely with the Clinton Climate Initiative to tackle challenges posed by climate change. THE FOUR PILLARS OF THE CITIES ALLIANCE WORK PROGRAMME 17 In addition to the knowledge and learning activities partnerships with more developed and urbanised on the initiative to be undertaken in Asia, other key economies like India, Brazil and South Africa, deliverables of the Eco2 JWP include an interna- which have longer-term experience dealing with tional conference in Yokohama, Japan in October urban challenges and opportunities. In India, for 2010 with representatives from the government of example, the Alliance signed an agreement with the Japan, Asian partners, cities, international agencies, Ministry of Urban Development to improve the and other urban stakeholders; and a report contain- Peer Exchange and Reflective Learning (PEARL) ing the evaluation and feedback of the training and knowledge-sharing network, created under the capacity building activities undertaken for target Jawaharlal Nehru National Urban Renewal Pro- audiences, including national government agencies, gramme (JNNURM). city associations, and pilot cities. Cities Alliance’s support centres on developing Another JWP with the World Bank helps cities effective networking mechanisms for assessing to better respond to and plan for emerging and the knowledge needs of cities, developing new urgent disasters caused by climate variability with a knowledge products and sharing them with the focus on West Africa. It has delivered post disaster cities, and helping to build the capacities of the assessments for Burkina Faso and Senegal follow- cities to share and access knowledge for better city ing major floods and these are expected to inform governance and more ef�cient urban infrastruc- policy and decision making. ture investments. PEARL would be the horizontal learning platform for knowledge sharing and cross- Leveraging urban knowledge learning activities. Initially, Cities Alliance support would cover the JNNURM cities, the long-term The Alliance’s strengthened Knowledge and Learn- goal being to expand the network to other towns ing programme will continue to leverage existing and cities covered under the Urban Infrastruc- Housing in New Delhi, India. 18 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION Planned housing in São Paulo. ture Development Scheme for Small and Medium represent over 71 percent of the housing de�cit. The Towns (UIDSSMT). de�cit comprises three types of backlog: those living in precarious housing (19.7 percent), shared hous- Cities Alliance also entered into a knowledge part- ing (56.8 percent), and households paying excessive nership with the government of Brazil to provide rent (23.5 percent). Households earning less than 3 guidance and technical support on its implementa- minimum salaries per month account for over 90 tion of the National Housing Plan (Plano Nacional percent of the housing de�cit. de Habitação—PlanHab). PlanHab was created as part of a concerted effort to address Brazil’s growing The government of Brazil began to address the housing de�cit, recognising that improved access to housing de�cit in 2004 through the Ministry of housing and reliable urban services is essential for Cities. A National Housing Policy was intended poverty reduction and growth. to catalyse planning in the housing sector and to improve institutional capacity to provide access to In 2005, Brazil’s national housing de�cit was esti- housing. Consolidation of the National Housing mated to be 7.9 million, or about 15 percent of the Policy began in August 2007 with the preparation of total housing stock. The housing de�cit is concen- the National Housing Plan, which aimed to develop trated in urban areas (6.4 million). Of the total a well-targeted programme to bene�t the poor while de�cit, approximately 2.3 million, or 29 percent, making the most effective use of public resources. are in the metropolitan centres of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Rio de Janeiro, One major challenge in the preparation of the São Paulo, Curitiba, and Porto Alegre. In terms of National Housing Plan was the formulation of a regional distribution, the Southeast and Northeast strategy to operationalise the principal goal of the THE FOUR PILLARS OF THE CITIES ALLIANCE WORK PROGRAMME 19 National Housing Policy—universal access to dig- informal settlements. By 2005 roughly 2.3 million ni�ed housing for every citizen in a country with households in South Africa lived in shacks, either in profound levels of social and economic inequities. informal settlements or in the backyards of formal Cities Alliance support was designed to facilitate housing, and that �gure was increasing by 8 percent the provision of technical assistance and guid- per year. Within the framework of the compre- ance during the �rst 12 months of implementing hensive national plan, the government �nalised a the PlanHab. In particular, the Alliance’s support second, thorough, wide-ranging policy initiative on targeted policy improvements in the national slum the upgrading of informal settlements. That policy upgrading programme, the implementation of a has been formally incorporated into the National reformed national housing subsidy programme Housing Code—the legally binding repository of for the poor, and the dissemination of learning in all national housing policy since the Housing Act of these areas. 1997—as a national housing programme. In South Africa, Cities Alliance is helping to Cities Alliance’s grant was to support the renamed strengthen the South African National Upgrading Department of Human Settlement’s development Support Programme (NUSP), a comprehensive of a national upgrading programme based on the plan for the development of sustainable human Breaking New Ground policy. Cities Alliance sup- settlements introduced in 2004 by the Minister port is currently enabling the revision of informal for Housing. Known as “Breaking New Ground: settlements policy on the basis of international The Comprehensive Plan for the Development of experience and what has been learned in the pilots; Sustainable Human Settlements,� the goal of the the preparation of a national strategy for the rollout programme was to help mitigate the proliferation of of the informal settlements programme at scale; the A resident of Langa township motel, Cape Town, South Africa. 20 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION Thriving commercial street scene in Accra, Ghana. re�nement of policy and implementation frame- need to address rapid urbanisation—particularly works for informal settlement upgrading at the growth of slums—and the central role of cit- provincial levels; and the development of systems ies and local governments in responding to issues for the monitoring and evaluation of the pro- related to urbanisation; and (ii) to support efforts gramme’s implementation. to catalyse change processes around issues of rapid urbanisation and the role of cities in developing countries, and particularly Cities Alliance in- IV. Communications and Advocacy country programmes. The Cities Alliance medium term strategy (2008– It is envisaged that the �rst objective will be 10) identi�ed “the need for increased advocacy, achieved through a joint work programme with Al- together with partners, to promote understanding liance members to campaign for communications of the role of cities and local authorities in devel- and advocacy activities in Europe. Implementation opment.� Prompted by the �ndings of a Working of the second objective of the advocacy strategy Group comprising some of its donor members and is still in its early stages. It is currently focused on the endorsement of those �ndings by its Executive the identi�cation of advocacy needs and oppor- Committee, the Secretariat took the �rst critical tunities in Country programmes. For example, an steps towards developing a “systematic and compre- assessment of advocacy needs in Ghana by Cities hensive advocacy strategy for the Cities Alliance in Alliance members revealed a strong undercurrent conjunction with its members.� of hostility in the media and in public opinion towards slum dwellers and little recognition of Programme design was predicated on two strate- the potential of municipal and metropolitan gic objectives derived from the consultations with governments to improve economic development members: (i) to demonstrate to policy makers in and poverty reduction. At the same time, there donor governments/agencies and their multilateral was evidence that governmental and civil society organisations, particularly in Europe, the urgent partners were ready to make improvements in THE FOUR PILLARS OF THE CITIES ALLIANCE WORK PROGRAMME 21 policies and programmes. Finally, since the Land Alliance. The Advocacy Panel currently has one Services and Citizenship programme institution- member—Hon. Clare Short, MP, former Secretary alises consultation with the urban poor at all levels, for International Development. awareness-raising and other communication ac- tivities were incorporated into the LSC in-country Other communications and outreach design for Ghana. activities To champion Cities Alliance advocacy efforts, the Outside of developing an advocacy strategy, com- Secretariat established an Advocacy Panel, which munication activities for the period under review when fully developed will comprise eminent urban focused on balancing the Alliance’s normative com- experts and policy makers. The Panel will provide munications and knowledge sharing functions with strategic advice to the Cities Alliance; formally the increasing focus on advocacy activities. Signi�- represent the Cities Alliance; and use their own local cant outcomes of these activities are described in the and global networks to seek opportunities to pro- following sections. mote the goals, activities, and products of the Cities :: World Bank’s New Urban and Local Government Strategy Systems of Cities The World Bank :: Cities need to be equipped to handle new launched a new Urban Harnessing urbanization for growth and poverty alleviation residents. This will require them to be more and Local Government proactive in updating their urban plan- Strategy during the ning regulations to allow density to increase period under review. sustainably and to prevent demand pressures Titled Systems of Cities: for scarce housing and land to bid up prices Harnessing Urbanization excessively. for Growth and Poverty THE WORLD BANK URBAN AND LOCAL GOVERNMENT STRATEGY :: The costs of not planning ahead for future Alleviation, the new 10- urban growth will be excessive and dif�cult to year strategy called for a reverse. broader-based, scaled-up approach to reducing ur- :: Fostering the bene�ts of agglomeration and ban poverty and sought to help governments at all managing congestion will have big payoffs for levels make cities more equitable, ef�cient, sustain- economic growth and poverty reduction. able, and environmentally friendly. Predicated on the idea that density, agglomeration, and proximity To reach the increasing number of secondary are key factors in human advancement, economic cities, which are experiencing signi�cant urban productivity, and social equity, the new strategy growth, the World Bank will expand on its whole- promotes the following messages: saling approaches by working through �nancial intermediaries and by developing national and :: Urbanisation is too important to allow cities state programmes that retail �nancial services and to handle it alone. Successful urbanisation technical support to local governments. requires national attention to critical policy areas—such as land and housing markets— that fall beyond the purview of a single city administration. 22 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION :: Events Cities Alliance at Africities 5 :: “Nine Years of the Brazil City Statute,� a net- 16–20 December 2009 working event with Brazil’s Ministry of Cities to discuss the development and implementation of Brazil’s groundbreaking City Statute; :: “City Development – The Role of National Government,� a side event with the German Federal Ministry for Economic Cooperation and Development (BMZ); and :: “Successful Approaches to National Slum Upgrading and Prevention Policies and Pro- grammes—15 Country Case Studies,� a side event in collaboration with the World Bank Institute, UN-Habitat, IADB, and GTZ. The Cities Alliance was one of the most visible participants at the �fth Africities Summit held in The Alliance also saw WUF V as an opportunity Marrakesh, Morocco. The meeting was attended by to launch three major co-publications: The City close to 4,000 delegates representing a wide range of Statute of Brazil: A Commentary, a collection of es- local government of�cials from 47 African countries. says analysing the City Statute in partnership with At the summit, the Alliance hosted a number of net- the Brazilian Ministry of Cities; Distance Learn- working sessions, including a CDS workshop with ing Course on Integrated Slum Upgrading Actions: specially invited mayors from Francophone Africa; Abridged Version, the English translation of a com- and a well-attended session on “De�ning Planning prehensive overview of an award-winning distance Programming Processes,� hosted in collaboration learning course on slum upgrading offered by the with ISTED, during which discussants weighed in University of São Paulo and supported by the Alli- on the need for pro-poor, participatory planning ance; and Building Cities: Neighbourhood Upgrading and programming and corresponding tools and and the Urban Quality of Life in partnership with the methods. In recognition, the Summit’s organisers Inter-American Development Bank (IADB), which awarded the Alliance the prestigious prize for “Con- documents the evolution of settlement upgrading sistency of Tools and Methods of Support to Local programmes in the region and describes the most Governments� for its support of local governments critical challenges in improving quality of life. around the world, particularly in Africa. Cities Alliance at the Fifth World Urban Forum, 22–26 March 2010 Cities Alliance followed Africities 5 with an even more spectacular showing at the Fifth World Urban Forum (WUF V) in Rio de Janeiro, Brazil. The Alli- ance hosted a well-designed and strategically located booth and co-hosted a number of networking and side events with its partners. Highlights included: THE FOUR PILLARS OF THE CITIES ALLIANCE WORK PROGRAMME 23 :: Publications Summary Cities Alliance 2009 to give community stake- Annual Report holders—including public Cities Alliance, Washington leaders, residents, and D.C., January 2010 investors—more control over the economic and so- The 2009 Annual Report cial development of their celebrates, takes stock of, cities and towns. To date, and assesses the urban city development strate- environment within which gies have been initiated in the Alliance has operated four of Yemen’s largest ur- for the past ten years. It ban areas—Sana’a, Aden, also explores new urban and development aid exi- Hodeidah, and Mukalla. With support from the gencies that have developed since. The key message Cities Alliance and the World Bank, the CDS process of the Annual Report is that national policy frame- in each of these cities brought together public and works that accept the inevitability of urbanisation private sector leadership to assess the strengths and are the most likely to create the conditions necessary weaknesses of the city, identify opportunities for for economic growth and reduce both urban and equitable economic growth, develop a long-term rural poverty. International development partner- vision, and draft a prioritised action plan. In all ships like the Cities Alliance can enable this process four cases, the CDS process has been accompanied by strengthening local governments and local ac- by revisions to the cities’ master plans to ensure a countability; by providing multiyear, programmatic strong link between economic development plans support driven by local partners; by promoting and infrastructure. learning between cities, countries, and communities; by promoting the idea that women have an essential role in development; and by building on what is MTSU: Transforming Mumbai into a World already working locally instead of imposing solu- Class City tions from afar. Mumbai, India, Mumbai Transformation Support Unit, All India Institute of Local Self Government, Cities Alliance, June 2009 Sana’a: A City Development Strategy Cities Alliance, the Government of Yemen, Municipality The MTSU of Sana’a, The World Bank, Washington, D.C., July 2009 was estab- lished in 2005 This publication summarises the main outcomes by the World of the studies, discussions, and strategic planning Bank, the accomplished during Sana’a’s city development Cities Alli- strategy process. Since the issuance of the Local ance, USAID, Authorities Law No. 4 in 2000, the government and the of Yemen has pursued an ambitious decentralisa- government of Maharashtra. It coordinates sup- tion agenda that aims to delegate greater �scal and port for more than 40 projects designed to enhance administrative authority to local governments and economic growth in Mumbai, reduce poverty, and 24 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION :: Publications Summary (continued) improve quality of life for 12 million residents, Síntese do Curso á Distância: Ações especially slum dwellers. The MTSU published this Integradas de Urbanização de report to capture its activities during Phase I (June Assentamentos Precários 2005–March 2008) of the ground breaking Mumbai São Paulo, Ministry of Cities, Brazil and Cities Alliance, Transformation Programme, a massive private sec- March 2010 tor initiative which sought to make the city a better place to live, work, and invest in. It was subsequently This publication is based endorsed by the government of Maharashtra (of on an award-winning which Mumbai is the capital), the Indian national distance learning course government, the World Bank, and Cities Alliance. on integrated slum The initiative is currently in its second phase of upgrading initiated by implementation. the Brazilian Ministry of Cities and organised in conjunction with the Building Cities: University of São Pau- Neighbourhood lo. First offered in August Upgrading and Urban 2008, the three-month Quality of Life course was conducted by a multidisciplinary team of Washington D.C., Inter- academics with substantial practical experience. It American Development covered different aspects of slum upgrading, includ- Bank, Cities Alliance, David ing the national policy framework, environmental Rockefeller Center for Latin legislation, social participation, cost calculation, American Studies, Harvard project design, and monitoring and evaluation. University, March 2010 Translated into English as the Distance Learn- This publication documents the evolution of both ing Course on Integrated Slum Upgrading Actions: the theory and practice of settlement upgrad- Abridged Version, the publication provides an ing programmes and describes the most critical operational overview of the actions involved in challenges in improving the quality of life of integrating slums in Brazil’s urban fabric. These the settlements’ inhabitants. Each of the seven were based on three federal government guidelines chapters addresses an urban upgrading theme. as elucidated in the national Growth Accelera- The publication aims to synthesise the knowledge tion Programme (PAC): (i) to undertake physical accumulated by the community of urban devel- interventions, including public works involving opment practitioners within the Inter-American urbanisation, environmental recovery and, wherever Development Bank (IADB), which has more than necessary, the construction of new housing units 20 years experience in assisting national, state, and the provision of social equipments and ameni- and local governments with settlement upgrad- ties; (ii) to boost tenure regularisation; and (iii) to ing programmes. It also aims to contribute to focus on social work to ensure that slum dwellers the policy dialogue and to the debate about the participate in the programmes. design and implementation of settlement upgrad- ing programmes taking place in all countries of the Latin American and Caribbean region. SECTION 2 Cities Alliance Organisation 26 Poor neighbourhood built on a hill in Mexico City, Mexico E ach of the three legs of Cities Alliance—the tive Group meeting, held in Mumbai in January Consultative Group, the Executive Com- 2010, became the platform for discussion of fun- mittee, and the Secretariat—retained their damental changes to the Cities Alliance, beginning fundamental responsibilities during the period un- with discussions on a revision of the Cities Alliance der the review. At the same time, they each adopted Charter (the constitutional document governing new roles that reflected the changes associated with operations), which were still ongoing at time of this the organisation’s transitional process. report. The Mumbai Consultative Group meeting also saw the con�rmation of the exit of three The Consultative Group—the Cities Alliance’s members—Japan, Canada, and the Asian Devel- board of directors—retained responsibility for set- opment Bank—and the admission of Habitat for ting the Alliance’s long-term strategy, approving its Humanity International (HFHI) as the newest annual work programme and budget, and reviewing member of Cities Alliance. its achievements. In addition, the annual Consulta- CITIES ALLIANCE ORGANISATION 27 Consultative Group Members as of June 2010 comprised: LOCAL AUTHORITIES: MULTILATERAL ORGANISATIONS: United Cities and Local The European Union Governments Metropolis UNEP INTERNATIONAL NGOS: UN-Habitat Shack/Slum Dwellers International The World Bank Habitat For Humanity International GOVERNMENTS: Australia Norway Brazil Philippines Chile South Africa Ethiopia Spain France Sweden Germany United Kingdom Italy United States Nigeria 28 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION The Executive Committee sponsored by the government of Italy, and Jean- Christophe Adrian, who left to assume a new Discussions at the Mumbai meetings also focused position as Coordinator of UN-Habitat’s response on strengthening the Executive Committee (EXCO) to the devastating earthquake in Haiti. A major to better position it to provide the Secretariat with change to the overall structure of the Secretariat necessary guidance on its work programme. Rec- also reflected Cities Alliance’s move towards a new ommendations were made to make the Executive business model. The Secretariat was divided into Committee fully accountable to the Consultative four main team units, all under the direction of the Group, while the Secretariat would be primarily Programme Manager: accountable to the Consultative Group through EXCO. The Executive Committee would also give :: Partnership Operations; the Secretariat the opportunity to consult with :: Programme Administration; members and subcommittees of EXCO on fund :: Global Programme Operations; and, raising, operations, country selection, and strategic :: Country Programme Operations. issues. To delegate responsibility and enhance ef�ciency, staff were assigned to one or more of the four The Cities Alliance Secretariat teams units, each of which is led by a Team Leader responsible for establishing and following a well- Staff movements in the Secretariat included the de�ned work programme and budget (see table on coming on board of Federico Silva, who joined the following page). the Secretariat as a Junior Professional Of�cer Cities Alliance team meeting with the Ghana Country programme team in Accra CITIES ALLIANCE ORGANISATION 29 WORK UNIT RESPONSIBILITIES STAFF Partnership :: Secretariat management :: William Cobbett – Programme Manager, Team Operations :: Member relations and resource Leader mobilisation :: Kevin Milroy – Deputy Programme Manager :: Governance support, :: Susanna Henderson – Senior Programme Assistant Consultative Group and :: Neelam Tuteja – Programme Assistant Executive Committee :: Outreach and representation :: Human resources administration :: Of�ce administration Programme :: Financial administration :: Phyllis Kibui – Programme Coordinator – Team Administration (�nancial reporting, budgeting, Leader etc.) :: Madhavan Balachandran – Financial Management :: Resource management Specialist :: Grant administration :: Oksana Mushtatenko – Resource Management (FM, procurement, grant Analyst agreements, etc.) :: Viorica Revutchi – Programme Assistant :: Information management :: Regianne Henriette Bertolassi – Programme Assistant :: Erika Puspa – Information Management Analyst :: Rodolfo Gaspar –Information Management Assistant Global :: Catalytic Fund :: Gunter Meinert – Senior Urban Specialist – Team Programme :: Knowledge and learning Leader Operations :: Communications and advocacy :: Chii Akporji – Communications Of�cer :: Special projects (for example, :: Federico Silva – Junior Professional Of�cer Financing of African Cities) :: Alex Ricardo Jimenez – Research Analyst :: Monitoring and results :: Juliet Bunch – Web Editor reporting :: Iraj Hettiarachchi – Short-Term Temporary – :: Evaluation Communications :: Thierry Paulais – Senior Urban Finance Specialist – Special Project on Financing for African Cities Country :: Country Programmes for low- :: Julian Baskin – Senior Urban Specialist – Team Programmes income countries Leader Operations :: Land, Services, and Citizenship :: Andrea Merrick – Urban Specialist programme :: Andrea Zeman – Urban Specialist :: MIC programmes (Brazil, :: Celine D’Cruz – Urban Specialist Philippines, India, South Africa, :: Hilde Refstie – Research Analyst Chile) :: Dhiraj Ajay Suri – Regional Advisor – South Asia :: Tewodros Tigabu – Regional Advisor – East and Central Africa :: Mamadou Diagne – Regional Advisor – West Africa :: Adele Hosken – Regional Advisor – Southern Africa :: Anaclaudia Rossbach – Regional Advisor – Brazil :: Mariana Kara Jose – Research Analyst SECTION 3 Cities Alliance Financial Report 31 Slum under a bridge near La Boca in Buenos Aires, Argentina T he �scal year ending 30 June 2010 was a year ages between client execution and client ownership of transition for Cities Alliance. More than of Alliance grant funding, and the effect of grant $10 million in new Core funding allocations processing time on project effectiveness. were approved during FY10, the most since FY06, as the Alliance closed its old grant facility on 31 March The World Bank also announced changes to its 2010. More than $9.3 million of proposals to be Development Grant Facility (DGF). Through the funded from Core funds were submitted by the clos- DGF’s long-term funding window, the Bank is the ing date, of which $4 million were still in process at largest source of Core funding to the partnership. year end and will be carried forward into FY11. However, the Bank is closing that window, and the Alliance will therefore be making a phased exit Funding allocations during the �scal year reflected from DGF funding over the next three �scal years. the Alliance’s medium-term strategy to priori- Overall, contributions from donors remained strong tise client execution. Two-thirds of all approved during FY10. Core contributions of $7.1 million allocations in FY 2010 will be directly executed rose slightly from FY09 levels of $7.0 million, and by recipient governments or local development Core disbursements rose 14 percent to $8.5 million. partners, up from 50 percent client execution in Total disbursements were $14.7 million, just short FY09 and 38 percent in FY08 (�gure 4). At the same of the record of $14.9 million set in FY08. time, the World Bank made signi�cant changes to its procedures and systems for administering recipi- The Alliance also introduced new reporting and ent grants, leading to increased processing time and budgeting formats in alignment with its new busi- tasks for setup of client grants. (The World Bank ness model and results framework. These changes administers Cities Alliance funding.) A study was are reflected in the allocation reporting on the fol- commissioned during the year to evaluate the link- lowing pages. 32 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION FIGURE 4 Grant Recipients for Country-Speci�c Projects for Fiscal Years 2008, 2009 and 2010 70% (13) 62% 60% (8) 50% 50% (11) 41% 40% 30% (3) (5) (3) (2) 19% (2) 19% (3) (3) 20% (2) (2) 14% 13% 13% (1) 11% (2) 11% (1) (2) 10% 10% 10% (1) 7% 7% 5% 6% 4% 0% 2008 2009 2010 Fiscal year of approval Development Co-operation/International/Regional Organisations National Government Municipal/Sub-National Network/Association/Foundation Academia/Research Institutes NGO/Civil Society Other Notes: a. Projects do not include: (1) Community-Led Infrastructure Finance Facility (CLIFF) Activities and (2) Slum Upgrading Facility (SUF) Activities. b. Projects cancelled during preparation were not included in the calculation, as no grant agreements had been issued and no disburse- ments made. c. For Fiscal Year 2010, projects for which Grant Agreements are under preparation are included. CITIES ALLIANCE FINANCIAL REPORT 33 TABLE 1 UNAUDITED Cities Alliance: Sources and Uses of Funds (as of 30 June 2010) CORE FUNDS NON-CORE FUNDS Cumulative FY10 FY10 Cumulative 68,060,054 7,101,356 Contributions Received 3,954,928 73,382,075 0 0 In-Kind Contributions 604,000 8,610,079 5,577,924 290,255 Investment Income 189,569 738,146 73,637,978 7,391,611 Total Sources of Funds 4,748,496 82,730,301 (56,588,122) (8,503,075) Project Disbursements (6,220,076) (51,290,867) 0 0 In-Kind Disbursements (604,000) (8,610,079) (997,941) (68,671) Trust Fund Administration Fees (59,015) (1,495,089) 32,001 0 Foreign Exchange Gain (Loss) (85,700) 194,633 (57,554,062) (8,571,745) Total Uses of Funds (6,968,791) (61,201,403) 16,083,916 Fund Balance 21,528,898 (11,458,750) Less: Undisbursed Allocations (8,022,983) 4,625,166 Funds Available for Allocation 13,505,915 34 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION TAB LE 2 Financial Contributions (US$ as of 30 June 2010) Paid In (a) DONOR PLEDGES DURATION FY10 CUMULATIVE Core funding ADB 1,250,000 2002–2003, 2005–2007 (26,683) 1,223,317 Australia 750,000 2008–2010 0 750,000 Brazil 450,000 2004–2010 75,000 450,000 Canada 1,500,000 2000–2001, 2003–2006 0 1,585,293 Chile 100,000 2009 50,000 100,000 Ethiopia 250,000 2006–2010 49,978 199,953 European Commission 1,000,000 2009–2011 533,213 533,213 France 2,575,000 2000, 2002–2011 100,000 2,103,387 Germany 2,950,000 2000–2009 358,425 3,120,452 Habitat for Humanity 50,000 2010 50,000 50,000 Italy 4,720,000 2000–2010 581,840 4,848,065 Japan 1,750,000 2000–2005 0 1,750,000 Netherlands 3,500,000 2000–2004, 2006–2008 0 3,499,940 Nigeria 50,000 2005 0 50,000 Norway 6,855,000 2000–2009 962,181 6,976,356 Philippines 50,000 2008 0 50,000 Shack Dwellers Int’l 150,000 2008–2009 50,000 150,000 South Africa 250,000 2006–2010 50,000 200,000 Spain 2,250,000 2008–2010 0 2,321,400 Sweden 6,125,000 2000–2012 379,588 5,464,985 UNEP 1,200,000 2003–2009 99,987 1,199,987 UN-HABITAT 400,000 2004–2007 0 400,000 United Kingdom 7,100,000 2000–2007 0 7,500,148 United States 3,498,880 2000–2010 787,827 3,248,880 World Bank 20,850,000 2002–2010 3,000,000 20,284,679 Total core 69,624,903 7,101,356 68,060,054 Note: Fiscal year covers the period July 1 through June 30. a. Amounts may vary from amounts pledged because of exchange rate fluctuations. b. Noncore funding is earmarked for a speci�c facility, region, or activity. The facilities include the Community-Led Infrastructure Finance Facility, the Cities Without Slums Facility for Sub-Saharan Africa, the Slum Upgrading Facility, and the Land, Services, and Citizenship project. c. Secretariat funding includes in-kind funding for staff secondments from UN-HABITAT, Germany, France, and Norway. CITIES ALLIANCE FINANCIAL REPORT 35 TABLE 2 (CONTINUED) Financial Contributions (US$ as of 30 June 2010) Paid In (a) DONOR PLEDGES DURATION FY10 CUMULATIVE Non-core funding Canada 75,000 2004 0 73,608 France 375,000 2008–2009 149,789 357,209 Gates Foundation 15,000,000 2009–2012 0 14,999,980 Italy 14,889,630 2001–2011 1,754,630 14,455,148 Japan 4,250,000 2000–2005 0 4,250,000 Netherlands 350,000 2003–2004 0 350,000 Norway 3,200,000 2002–2007 0 3,272,992 Sweden 9,134,054 2003–2012 50,612 9,863,663 UNEP 15,000 2007 0 15,000 United Kingdom 24,620,000 2001–2011 1,999,897 24,200,527 United States 843,947 2003–2008 0 843,947 World Bank 700,000 2001 0 700,000 Total non-core 73,452,631 3,954,928 73,382,075 36 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION TAB LE 3 Approved FY10 Funding Allocations – Summary (US$ as of 30 June 2010) NON-CORE CORE Country/regional project allocations: Projects supporting implementation of policies and strategies 0 758,200 Projects supporting elaboration of policies and strategies 0 1,857,950 Projects providing country-speci�c data and knowledge 0 1,214,500 Subtotal 0 3,830,650 Country programming allocations: Land, Services, and Citizenship Programme 2,685,500 229,500 Other country programming support 588,000 175,000 Country partnership programmes 500,000 1,870,851 Subtotal 3,773,500 2,275,351 Global knowledge and advocacy activities: City development strategies 0 75,000 Environment/ climate change/ disaster risk reduction 1,500,000 415,000 Communications and advocacy 0 665,000 Other learning and knowledge sharing 0 225,000 Subtotal 1,500,000 1,380,000 Partnership allocations Management, �nance, and administration 0 1,900,000 Technical, knowledge, communications and M&E* 0 1,260,000 Governance 0 100,000 Subtotal 0 3,260,000 Total approved funding allocations 5,273,500 10,746,001 * Includes in-kind contribution of staff secondments from Germany, France, UN-H, and Italy through the World Bank Junior Professional Of�cer programme. CITIES ALLIANCE FINANCIAL REPORT 37 TABLE 4 Approved FY10 Funding Allocations – Detailed (US$ as of 30 June 2010) ALLOCATION COUNTRY TITLE OF ACTIVITY AMOUNT (US$) COUNTRY/REGIONAL PROJECT ALLOCATIONS Projects supporting the implementation of policies and strategies Indonesia Making Urban Investment Planning Work: Building on the 488,200 Indonesian CDS Process Kiribati Kiribati Sustainable Towns Programme: Supporting the 200,000 Implementation of Town Development Strategies Swaziland Supporting the Implementation of the Comprehensive Urban 70,000 Upgrading Programme for Mbabane, Swaziland Projects supporting the elaboration of policies and strategies Indonesia Indonesia Slum Alleviation Policy and Action Plan (SAPOLA) 500,000 Jordan Programmatic Regional City Development Strategy for Secondary 500,000 Cities (Jordan) Mexico Green Growth in the Face of Climate Change: Support to 75,000 the Municipality of Othon P. Blanco, Mexico for a Sustainable Development Strategy Mongolia Support for Public Consultation and Dissemination of Economic 74,450 Sector Work: Enhancing Policies and Practices for Ger Area Development in Ulaanbaatar Mozambique Support for Upgrading the Chamanculo C Neighbourhood, 73,500 Maputo Municipality – Preparatory Grant Namibia Namibian City Development Strategies (CDS) Pilot 250,000 Syria Urban Upgrading Strategy for Rief Damascus (Syria) Territories 310,000 Tanzania Dar es Salaam: Investment Resource Mobilisation for Metropolitan 75,000 Development Projects providing country-speci�c data and knowledge Ethiopia Integrated Urban Database 248,500 Syria Syria State of Cities Report 450,000 Vietnam Urbanisation Review 250,000 Latin America and State of Latin American and Caribbean Cities Report 191,000 Caribbean, multi-country Europe and Central East Europe and Central Asia Urban Regeneration and Community 75,000 Asia, multi-city of Practice 38 2010 ANNUAL REPORT: AN ALLIANCE IN ACTION TA BLE 4 (CONTINUED) Approved FY10 Funding Allocations – Detailed (US$ as of 30 June 2010) ALLOCATION COUNTRY TITLE OF ACTIVITY AMOUNT (US$) GLOBAL KNOWLEDGE AND ADVOCACY ACTIVITIES Theme: City Brazil City Statute Publication (in English, for international 75,000 development strategy dissemination) Theme: Environment/ Supporting Cities and Disaster Management (with GFDRR) 75,000 climate change/ First Urban Climate Change Research Network (UCCRN) 75,000 disaster risk reduction Assessment Report on Climate Change in Cities (ARC3) Strengthening Climate Adaptation and Disaster Risk Management 65,000 in Latin American and Caribbean Cities Climate Change and the Urban Poor 200,000 The First Eco2 East Asia Programme: Proposal of Knowledge 1,500,000 Management and Capacity Building (Japan non-core funding) Theme: Places We Live Exhibit: World Habitat Day, National Building 150,000 Communications Museum and advocacy World Urban Campaign: Support for Set-up and Launch 250,000 Cities Alliance Branding, Graphic Standards, and Corporate Videos 115,000 Pan-African Electoral Assembly of United Cities and Local 150,000 Governments Other learning and Learning and Knowledge Dissemination 150,000 knowledge sharing World Urban Forum 75,000 COUNTRY PROGRAMMING ALLOCATIONS Land, Services, and Citizenship Programme Uganda A Strategy for Transforming Settlements of the Urban Poor 2,685,500 in Uganda: A Secondary Cities Support Programme (Gates Foundation project funding) Uganda UAAU/ICMA Partnership Proposal: Achieving the Urban 229,500 Management Components of the STSUPU Programme in Uganda Other country programming support Africa regional :: De�ning Africa’s Emerging Urban Agenda: Central Programme 498,000 Operations (State of Cities Report initiative) (from Africa Facility funding) :: Support and Oversight for Data Collection and Quality (UN 45,000 Habitat) :: Support and Oversight for Capacity Building and Knowledge 45,000 Sharing (World Bank Institute) CITIES ALLIANCE FINANCIAL REPORT 39 TABLE 4 (CONTINUED) Approved FY10 Funding Allocations – Detailed (US$ as of 30 June 2010) ALLOCATION COUNTRY TITLE OF ACTIVITY AMOUNT (US$) Africa regional Country Programme Development and Support, Francophone 75,000 Africa Global Expert Support for Country Programme Development and 100,000 Operations: Financial Sustainability; Programme Design Country partnership programmes Brazil Improving the Managerial Skills of Social Interest Housing 249,605 Programmes Brazil Consolidation of the Social Work Methodology for Slum 75,000 Upgrading India Citywide Slum Upgrading Plan (CSUP) for the Heritage City of Agra 499,987 (India) India Supporting and Operationalising the National Urban Sanitation 75,000 Policy (NUSP) in India India India International Workshop: Scaling up Upgrading and 75,000 Affordable Housing: From National Policies to State Programmes and City-wide Slum-Free Interventions India Knowledge Support for PEARL Programme under JNNURM 500,000 India Planning Support Unit: An Initiative to Support City Development 249,519 Planning in the State of Madhya Pradesh India Interim Phase: India Knowledge Support on Slum Upgrading, 71,740 Urban Poverty Reduction, and Affordable Housing India India Portfolio Supervision and Support 75,000 Philippines Philippines Traf�c and Transport Management for CDS Cities (from 500,000 Japan non-core funding) PARTNERSHIP OPERATIONS Management, �nance, and administrative operations Secretariat: Management, Finance, and Administrative Operations 1,900,000 Technical, knowledge, communications, and M&E operations Secretariat: Technical, Knowledge, Communications, and M&E 1,150,000 Operations Independent Technical Assessment 10,000 South Asia Regional Operations 100,000 Governance and administration Consultative Group and Executive Committee Meetings 100,000 40 Abbreviations & Acronyms ACHR Asian Coalition for Housing Rights ACVN Association of Cities of Vietnam ADB Asian Development Bank CDIA City Development Initiative for Asia CDS city development strategies CG Consultative Group CSUP City-wide Slum Upgrading Plan (India) ESMAP Energy Sector Management Assistance Program GFDRR Global Facility for Disaster Reduction and Recovery HFHI Habitat for Humanity International IADB Inter-American Development Bank ICMA International City Managers Association ISTED Institut des Sciences et des Techniques de l’Equipement et de l’Environnement pour le Développement JNNURM Jawaharlal Nehru National Urban Renewal Mission JWP joint work programme LSC Land, Services, and Citizenship programme (Cities Alliance) MoLGRD Ministry of Local Government and Rural Development (Ghana) MoLHUD Ministry of Lands, Housing, and Urban Development (Uganda) MoUD Ministry of Urban Development (India) MTSU Mumbai Transformation Support Unit (India) NUSP National Upgrading Support Programme (South Africa) PAC Programa de Aceleraçãodo Crescimento (Growth Acceleration Programme) – (Brazil) UAAU Urban Authorities Association of Uganda UIDSSMT Urban Infrastructure Development Scheme for Small and Medium Towns (India) UNEP United Nations Environment Programme UNFPA United Nations Fund for Population Activities USAID United States Agency for International Development WBCSD World Business Council for Sustainable Development WUF World Urban Forum